Orangetown Adds Tax Service Charge For Schools

The Orangetown Town Board approved a 0.125% service charge to its four school districts for tax collecting as part of the 2012 budget it adopted Tuesday.

The fee is expected to bring in approximately $200,000 in revenue for the town, helping get the budget under the 2% tax cap.

"I wanted to be fair," said Orangetown Councilman Tom Diviny, who proposed an amendment to the budget that included the service charge. "We were allowed to charge up to 1%, but I didn't want to do that. The school board and the town council represent the same people."

The charge will show up on school district tax bills, but it should not have an impact on budgets for Pearl River, South Orangetown, Nyack and Nanuet schools. Pearl River School District Director of Operations Quinton Van Wynen initially thought the districts would have to budget for the fee, but now says that is not the case. The fee will not count against the tax cap for the school districts.

"It will go on the tax bill, but I don't have to budget for it to pay them," Van Wynen said. "When each individual taxpayer is billed, it will include that charge.

"It's a real sidestep. It's getting pushed down, but really it is pushed sideways. The whole reason for this, what is pushing everybody's buttons, is the cap and this sidesteps the cap. But for revenue, it helps (the town)."

Though the budget has been adopted, people from the school districts that will have to pay the charge are likely to raise the issue at the next town board meeting Nov. 22. Though the districts may not lose any funds or room under the cap due to the charge, perception is also an issue.

"Everybody will forget the town did it and it will become another school cost," Van Wynen said.

Diviny said that the fee makes sense because the town's service does have value.

"(Councilman) Mike (Maturo) suggested the service fee, which is smart because we do provide a great service for the schools with the receiver of taxes," Diviny said. "We pay 100 percent of those costs. This is one of the times we can get some money back. The school crossing guards, we can't."

The school districts do have the option of collecting their own taxes, but Van Wynen has said that is not cost-effective.

"My people want me to look if we could collect the taxes ourselves," Van Wynen said. "We think we could by law, but is it worth gearing up for a three-month effort to collect taxes, reconcile, send upaid to New City? To do all that?"