Some volunteers opt for income tax credit instead and save more money
By John Doherty
The Post-Standard (Syracuse, New York)
Copyright 2007 Post-Standard
All Rights Reserved
SYRACUSE, N.Y. — Some local volunteer firefighters are turning down a chance to reduce their property taxes next year and instead will cash in on a new plan that will reduce their state income tax.
Local governments, including Onondaga County, rallied to approve an exemption last year that gives volunteer firefighters and ambulance workers a 10 percent reduction, up to $3,000, on their home’s assessment.
The resulting tax break was designed to attract more volunteers and encourage existing members to continue their service.
About 1,000 volunteer firefighters and ambulance workers receive the property exemption in Onondaga County, according to the county’s Office of Real Property Tax Services.
However many volunteers, especially those owning property in school districts that did not approve the exemption, may be able to reap more money next year through a new state income tax program that would give a $200 credit, in the 2007 tax year, to volunteers.
Under the income tax credit rules, volunteers taking the property tax exemption cannot claim the income tax credit.
“You’ve got to sit down and figure out which one works best for you,” said Joe Rinefierd, fire bureau director for the Onondaga County Department of Emergency Management.
In January, members of the Belgium Cold Springs Fire Department sent letters to the Lysander assessor’s office seeking the cancellation of their property exemptions which would affect their 2008 county tax bill.
The town of Lysander and the Baldwinsville school district did not approve the property tax exemption because officials were hoping the $3,000 cap would be lifted. The county exemption is the only one in place for Lysander-area volunteer rescuers.
“The amount you’d be getting with the $3,000 cap in place isn’t a lot. It’s more of a pain to come down here and apply for it,” said Lysander Assessor Don Long.
If the town and school district had approved the exemption, with the cap, firefighters owning a $100,000 home would see their taxable assessment reduced to $97,000, resulting in a $90 reduction in taxes.
“We didn’t ask the school for it because we wanted to wait to see if the cap would be lifted. We’d like to see 10 percent across the board,” said Kit Thompson, secretary of the Belgium Cold Springs Fire District.
Besides being larger, the income tax credit is fairer, Thompson said.
“It applies to everyone, not just those who own property,” Thompson said.
Brewerton Fire Chief Marshall Shupe agreed.
“We have some members who rent and don’t own (their homes). This will help them,” he said.
About a third of the volunteer rescuers in Onondaga County do not own property and cannot take advantage of the property tax exemption, Rinefierd said.
“They’re either young guys and still living at home with mom and dad or they rent a place and don’t own property yet,” Rinefierd said.
Still, neither the property tax exemption nor the income tax credit adequately compensates volunteers for their service, Rinefierd said.
“It’s better than nothing and it’s a start, but it’s not what I’d like to see,” Rinefierd said. “A $1,000 a year would be nice. That would move more people into joining a fire department.”