A Tupper Lake Central School District special Board of Education meeting was held on Monday. Around the table, starting from nearest are L.P. Quinn Elementary School Principal Elizabeth Littlefield, TLCSD Business Manager Jessica Rivers, TLCSD Clerk Shauni Kavanaugh, TLCSD Superintendent Jaycee Welsh, TLCSD Board of Education President Jane Whitmore, TLCSD Board of Ecuation Vice President Jason Rolley and TLCSD Board of Education members Mary Ellen Chamberlain and Josh Tremblay. (Enterprise photo — Chris Gaige)

TUPPER LAKE — School tax policy may be getting an update soon.

The Tupper Lake Central School District’s Board of Education is scheduled to vote during its Monday, March 10 regular meeting on whether the district will raise the maximum income thresholds under which senior citizens residing in the district may receive a means-tested partial exemption on their school tax bills.

At a special meeting held on Feb. 24, Superintendent Jaycee Welsh opened a discussion on the partial exemption, which is stipulated in Policy 5421. The existing policy can be viewed at tinyurl.com/mffatdyr.

The discussion centered around whether or not the district should expand the income thresholds that qualify for the exemption — with the board appearing to be in favor of an expansion.

Local governments and school districts have the option to make partial tax exemptions for their residents if they meet certain age, income and residency requirements. Welsh said that the town of Tupper Lake does not offer a senior exemption.

“The only exemption that senior citizens get if they live in Tupper Lake would be through school taxes,” she said.

Welsh said that if the 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.

“When we give any sort of tax exemption, we don’t lose that revenue as a school district,” she said. “It’s just redistributed to others, so that doesn’t go away from the school district’s revenue but other people pick up that revenue.”

The Enterprise’s questions to the TLCSD regarding how the difference in cost would then be applied to district taxpayers not receiving the partial exemptions, as well as how many district taxpayers currently receive partial tax exemptions under Policy 5241 and what the anticipated shift in the tax burden would be under the proposed expanded partial exemptions were not answered by press time Thursday evening.

Policy 5421 as it currently stands

Under the current policy, real property owned by people 65 or older — or by a married couple where one of whom is 65 or older — with an annual income of $17,500 or less can receive a 50% exemption of their real property assessed valuation on their school taxes. From there, it is a sliding scale.

Those earning between $17,501 and $18,500 annually can receive a 45% exemption of their real property assessed valuation. Those earning between $18,501 and $19,500 annually can receive a 40% exemption of their real property assessed valuation. Those earning between $19,501 and $20,500 annually can receive a 35% exemption of their real property assessed valuation. Those earning between $20,501 and $21,400 annually can receive a 30% exemption of their real property assessed valuation. Those earning between $21,401 and $22,300 annually can receive a 25% exemption of their real property assessed valuation. Those earning between $22,301 and $23,200 annually can receive a 20% exemption of their real property assessed valuation.

The exemptions are capped at an annual income of $23,199.99 — those earning above it do not qualify for the partial exemption.

In order to be eligible for these partial exemptions, seniors must first meet a list of other requirements. 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 exemption cannot be granted to properties where a resident child attends the district’s elementary or secondary schools unless the district grants an exception to this, which Tupper Lake does not. No exemption is allowed from special ad valorem levies or special assessments.

If the 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 income is defined as 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. Qualifying seniors are automatically enrolled in enhanced STAR.

TLCSD Clerk Shauni Kavanuagh noted at the Feb. 24 meeting that any changes to Policy 5421 would not impact their STAR or enhanced STAR benefits.

“Senior citizens will get STAR either way,” she said. “This is an addition.”

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New policy proposal

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The proposed update was publicly released on Wednesday and can be viewed at tinyurl.com/w99ytesa.

Under the proposed changes to Policy 5421, 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 current $17,500.

Under the proposed changes to Policy 5421, 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 proposed changes to district Policy 5421, 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 marks an increase of $11,500, or 49.57%, from the current $23,199.99.

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Reasons for supporting the changes

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Welsh said she was contacted by a member of the Tupper Lake community who wanted the school district to review and consider raising the income cutoff limits for people to qualify for the exemptions. Welsh said the community member correctly pointed out that the policy had not been amended since June 2005 — when the cost of living was lower.

According to the U.S. Bureau of Labor Statistic’s Consumer Price Index Inflation Calculator, the buying power of $100 in June, 2005 is approximately equivalent to the buying power of $163.33 January 2025 — the most recent month for which data is available on the calculator.

Welsh clarified that while the policy was reviewed as recently as 2019, the income brackets have not been changed since 2005.

“This is 20 years old,” she said. “That being said, we are not that far off from other school districts that mirror our (combined) wealth ratio.”

The combined wealth ratio is a formula used by the state to measure a school district’s wealth relative to the state average. Values greater than 1 indicate the district is above the state average, while those below 1 indicate the district is below the state average. The combined wealth ratio takes into account both the district’s real property value and the incomes of district residents.

According to data from the state Education Department, the TLCSD has a combined wealth ratio of 0.669. Welsh noted that this was a lower ratio than some of its neighboring districts.

“The thing to remember there is when we’re talking about Saranac Lake and Long Lake, the combined wealth ratio is different in those school districts than Tupper Lake,” she said. “When we talk about this, I think it’s important to talk about our neighbors but at the same time, it’s also important to talk about school districts that mirror our wealth ratio.”

Welsh said that the TLCSD’s current policy — even though its been unchanged since 2005 — provides more generous income qualification limits than most of its peer districts with comparable combined wealth ratios do today. While it is currently lower than its immediate neighbors, Saranac Lake to its east and Long Lake to the south, those districts have higher wealth ratios. Saranac Lake has a combined wealth ratio of 1.518 and Long Lake’s is 6.321, according to data from the state Education Department.

Saranac Lake and Long Lake both currently allow higher annual incomes to qualify for the partial exemptions, both at the base level for the 50% deduction and at the highest allowable — with slightly varying sliding scales for the various income brackets that fall within the range. In Saranac Lake, those earning up to $29,000 annually can qualify for a 50% real property assessment reduction and those earning as much as $36,499.99 annually can qualify for a 10% real property assessment reduction. In Long Lake, those earning up to $50,000 annually can qualify for a 50% real property assessment reduction and those earning as much as $58,399 annually can qualify for a 5% real property assessment reduction.

Welsh said at the Feb. 24 meeting that the district did not necessarily have to take action to expand or otherwise change Policy 5421 based on the discussion.

“I think it’s a point to ponder,” she said. “I don’t think we need to take any action on it but again, I did promise the community member that we would discuss this.”

Board of Education members appeared to be in agreement at the Feb. 24 meeting that the district should raise its qualifying income brackets under Policy 5421 — with board Vice President Jason Rolley and Josh Tremblay speaking in favor of it. No board members appeared to voice or indicate any opposition. Rolley, speaking in rounded terms, said diffusing the lost revenue burden among a larger share of people not receiving the partial exemptions mitigates the strain.

“$500 for one person gets divided between 1,800 people,” Rolley said. “I’m all for it.”

Tremblay added that the exemptions are geared to help those on lower incomes who would benefit most from them.

“No one should lose their house because they can’t afford to keep it,” he said.

Welsh said at the Feb. 24 meeting that the proposed expansions’ have been fervently advocated for by some in the Tupper Lake community.

“I’ve talked to some town people as well who have pushed this on me from the moment I walked in the door (last summer),” she said. “Because they have heard it from the multiple individuals who, just like (Tremblay) said, nobody should lose their house over school taxes.”

If passed by the board on Monday, it is unclear when the new exemption rates would go into effect, with the 2025 taxable status deadline for property tax exemptions having passed on March 1, according to the Tupper Lake office of the assessor’s website.

TLCSD is scheduled to meet for its regular monthly board meeting on Monday at 6 p.m. in the Middle-High School Library, located at 25 Chaney Ave. The meeting’s full agenda can be viewed at tinyurl.com/42ae6h4u.