TUPPER LAKE — For the first time in two decades, eligibility for school tax breaks for Tupper Lake residents ages 65 or older has been widened.

The Tupper Lake Central School District’s Board of Education voted 4-0 during their regular monthly meeting on Monday in favor of expanding the income thresholds under which senior citizens residing in the district may receive a means-tested partial exemption on their school tax bills. Board member Josh Tremblay was absent from the meeting, although he voiced support for the measure at a Feb. 24 meeting.

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New policy

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Under the now-adopted changes to district Policy 5241, the income limit to be eligible for the maximum 50% exemption is increased to $29,000 annually — up $11,500 or a 65% increase from the old policy’s limit of $17,500.

Under the adopted changes to Policy 5241, those earning between $29,001 and $29,999.99 annually can receive a 45% exemption of their real property assessed valuation. Those earning between $30,000 and $30,999.99 annually can receive a 40% exemption of their real property assessed valuation. Those earning between $31,000 and $31,999.99 annually can receive a 35% exemption of their real property assessed valuation. Those earning between $32,000 and $32,899.99 annually can receive a 30% exemption of their real property assessed valuation. Those earning between $32,900 and $33,799.99 annually can receive a 25% exemption of their real property assessed valuation. Those earning between $33,800 and $34,699.99 annually can receive a 20% exemption of their real property assessed valuation.

Under the adopted changes to district Policy 5241, the exemptions are capped at an annual income of $34,699.99 annually — those earning above it do not qualify for the partial exemption. This represented an increase of $11,500, or 49.57%, from the old policy’s $23,199.99.

Aside from changing the qualifying income brackets, the policy update did not include any other changes, including the various necessary non-income requirements in order to qualify.

These include using the property exclusively for residential purposes and having owned it for at least 12 consecutive months prior to applying for the exemption. The partial exemption cannot be granted to properties where a resident child attends the Tupper Lake CSD’s elementary or secondary schools. No exemption is allowed from special ad valorem levies or special assessments.

If the partial exemption is granted to a married couple and only one of them is above the age of 65, and that older spouse dies, the exemption is not then rescinded solely for that reason as long as the surviving spouse is at least 62 years old.

If the property is owned by multiple people, income levels must be combined, including for married couples.

For more information, including what is defined as income and a more detailed list of eligibility requirements, visit tinyurl.com/5n88b7hk.

The policy is separate from both the school tax relief program (STAR) and enhanced STAR. Those who qualify for partial tax breaks under district Policy 5241 are automatically enrolled in enhanced STAR.

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Due diligence before vote

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Prior to the vote, the district reached out to the town of Tupper Lake to get a better understanding of the implications that the proposed policy change could have for taxpayers.

In a March 7 memo, town Assessor Jessica Eggsware estimated five to six times as many households in the school district can qualify under the expanded thresholds as compared to the policy prior to Monday’s vote. She wrote that for the 2024-25 tax year, 30 parcels received the exemption and that under the new policy, she surmised that between 150 and 175 parcels would be eligible.

The town assessor’s memo emphasized that the 150 to 175 figure was a “best guess,” and that there is no way to know for sure how many households will receive the reduced assessments ahead of time, as people have to opt-in and successfully apply first. It is also unclear how the updated policy will impact taxation for the 2025-26 school budget, given that the policy was updated after the application deadline for property tax exemptions in Tupper Lake. That was March 1, according to the Tupper Lake Office of the Assessor’s website.

“There is no way of knowing for sure how many people would be receiving the benefit if the limits were increased to $34,699.99,” the memo stated.

The memo added that in eight of the last nine tax years, the number of eligible parcels has fallen, potentially a sign of inflation pricing people out of the partial exemptions in the absence of any increase in qualifying income thresholds. In the 2015-16 school tax year, the memo states that 88 parcels were available, almost triple of the 2024-25 tax year.

“Currently all of the parcels that receive the exemption have social security as their sole source of income and almost all are single residence households,” the memo stated. “Raising it to $34,699.99 would incorporate many 2 person households as well as allow for people who receive other income besides social security.”

Tupper Lake CSD Superintendent Jaycee Welsh said that as partial exemption was expanded, the district would not lose any revenue. Rather, money that is lost through partial exemption increases would be made up by taxpayers not receiving the exemption.

The town assessor’s memo stated that for the 2024-25 year, the partial exemptions for the qualifying households under the previous Policy 5241 amounted to $16,840.23 in less revenue. The difference was made up by 3,174 parcels that did not qualify for partial exemptions, equivalent to about $5.31 per parcel if equally redistributed. The memo did not specify whether the difference’s redistribution occurred on an equal basis or one that was in some manner proportional to each property’s assessed value.

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Designing the update

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Welsh said at the Monday meeting that she consulted with Dr. Rick Timbs in crafting the updated policy to be voted on by the board. Timbs is the president and CEO of R.G. Timbs, Inc. and serves as the district’s financial advisor. He told them to look to the east.

“He suggested that we mirror Saranac Lake’s threshold, given that they’re our closest substantial neighbor,” she said.

Timbs also suggested one point of divergence from the Saranac Lake CSD’s policy for Tupper Lake, according to Welsh, which the district followed.

Saranac Lake has a longer tail on its sliding scale of upper income limits, allowing 15% and 10% taxable assessment reductions for qualifying seniors who earn between $34,700 and $35,599.99 annually eligible to receive the 15% taxable assessment reduction, and those who earn between $35,600 and $36,499.99 annually eligible to receive a 10% taxable assessment reduction — the highest income bracket and the minimum deduction allowed.

Tupper Lake CSD’s new policy does not include 15 and 10% steps.

Instead, Tupper Lake CSD mirrors each bracket for Saranac Lake starting at 50% assessment reductions for those earning up to $29,000 annually, and descending down in 5% assessment reduction “steps” but stops at the 20% reduction, with — as is the case in Saranac Lake — qualifying seniors who earn between $33,800 and $34,699.99 annually eligible to receive a 20% reduction in their taxable assessments — the highest income bracket and the minimum deduction allowed.

Prior to voting, the board also considered how the changes would affect the redistribution of tax revenue.

As is the case with trying to determine the number of eligible parcels, it is impossible at this point to know what future tax levies and assessment values would be, which are both crucial to knowing the policy’s specific implications.

In lieu of that, the town assessor’s memo provided a hypothetical calculation to give the Board of Education a general, but necessarily imperfect, estimate to consider. To do so, the memo used the 2024-25 school tax year’s tax and assessment rates and applied those to the estimated expanded set of parcels that would be receiving the partial exemptions under the new policy.

“Based on the current data of 30 parcels with a reduced assessment of $1,033,833 that averages to a reduction of assessed value per household of $34,461,” the memo stated. “If we were to reduce 150 parcels by $34,461 in assessed value that would reduce the total assessed value of $5,169,150. $5,169,150 in school tax dollars is roughly $84,200.93 which would be redistributed amongst 3,054 parcels.”

The calculation amounts to about $27.57 per parcel if equally redistributed. The memo did not specify whether the hypothetical redistribution would have occurred on an equal basis or one that was in some manner proportional to each property’s assessed value.

Speaking in rounded terms before the board’s vote — and again adding that her statements were informed by hypothetical estimates based on current data rather than actual predictions for future years — Welsh said she did not feel the redistribution from the expanded policy constituted a significant burden.

“$84,000 over 3,000 properties is not a substantial amount when it’s redistributed,” she said.

The board appeared to agree, and there was no further discussion from its members. Shortly thereafter, the board voted to waive a second reading of the policy update — a procedural necessity — and subsequently moved to take up a vote on adopting the proposed changes, a vote that was ultimately unanimous.

To view the updated policy, as well as the town assessor’s memo, visit tinyurl.com/w99ytesa.