Town might cut taxes for certain residents

Veterans, seniors, and disabled Islip town residents may see their town property assessments and town taxes cut if the town board approves three resolutions this month.

The resolutions would bring the town's tax exemption levels for the three groups in line with the New York State Real Property Tax Law, which determines the exemption rates and resident eligibility requirements. It would also mean an increase in the average resident's tax bill.

"These are people who really need this," Supervisor Phil Nolan said. "It's the right thing to do."

Frank Frumento, a Vietnam-era veteran and commander of the American Legion Four (S) Post 1635 based in East Islip, said veterans, who often live on fixed incomes, have been hit hard by the recession.

"Any way we can reduce taxes will be a benefit," Frumento said. "Every little bit helps and makes it much more easy for someone to live on Long Island and keep their house."

The move is Nolan's effort to bring the town in line with the state's guidelines, which were updated for veterans in 2005 and seniors in 2006, as well as with surrounding towns that have implemented the changes, he said. Islip last updated its tax exemption levels in 1999.

Nolan said a senior citizen advocate brought the discrepancy to his attention several months ago, and the town is acting to fix the issue.

The tax exemptions impact the percentage or dollar amount taken off the assessed value of residents' homes when determining their property taxes. For the majority of those affected, a decrease in assessed value, which is determined by the town, means a decrease in that percentage on their tax bill.

For seniors and disabled residents, the income cap would be raised to $37,400 from $27,900 for them to be eligible for tax relief.

For veterans, the exemptions are based on the method of service. Any veteran living in Islip would now receive up to 15 percent off their town taxes, not to exceed $54,000 off their home's assessed value. Veterans who served in combat zones would receive up to $36,000 off their home's assessed value -- up from $18,000. Those injured during service would receive up to 50 percent off their town taxes, not to exceed $180,000 off their assessed home value.

Frumento said he hopes officials appoint someone to make sure groups receive the most tax exemptions allowed.

If passed, the resolutions would mean that the average Islip homeowner would see a $3 to $5 increase in their tax bill, to make up the difference in revenue lost by the new exemption levels, Nolan said.

The new exemptions, if approved, would take effect on the Dec. 1, 2012, town tax bill.

Tuesday, the town board is expected to vote on whether to hold a public hearing about the resolutions on Oct. 25.