PLATTSBURGH — Plattsburgh City School District is considering a utility tax.
The intent is to spread the burden for supporting public education over all residents and offer some relief to property owners.
There's still procedural items to get out of the way, including a public hearing, but if the School Board approves the measure, the district could begin collecting the money as early as December.
"This is a very appropriate direction to go," said board member Clayton Morris.
That depends on your viewpoint, as utility-tax discussions have caused extensive controversy around the country. Entities that employ them say it helps salvage services and prevent layoffs, while the residents who have to pay the bill say they are already overtaxed.
ALLOWED BY STATE
New York enacted a consumer utility tax in 1965.
The measure gives school districts residing in areas with less than 125,000 people the authority to impose taxes of up to 3 percent on all utility bills: electric, gas, phone and cell phone.
A total of 21 small-city school districts around New York received more than $52 million during the 2008-09 fiscal year from a utility tax.
Cities that impose a utility tax include Albany, Troy, Schenectady, Cohoes, Watervliet, Rennselaer, Hudson, Johnstown and Gloversville.
PUBLIC INPUT SOUGHT
"We have talked about the utility tax as a way to lessen the burden of the property tax," said Plattsburgh City School Superintendent James "Jake" Short.
"The board has looked at some data and other schools that do it, and up to this point the board hasn't taken action to go forward."
The board unanimously voted to pursue a public hearing on the matter and investigate the option before making a final decision.
"Basically, the public hearing would provide the opportunity for people to give input," Short said. "Part of the process is to help the board shape their mind."
SPREAD THE BURDEN
Morris and some other board members have voiced support for the plan.
"I'm all in favor of a utility tax, particularly given the uncertain nature of state aid," said longtime board member Fred Wachtmeister.
"I think we need to use that money that would be collected in order to reduce the property-tax burden.
"The adoption of a utility tax would also help spread the burden and ensure we could maintain the level of programs we have been noted for."
Morris said that if it saves the taxpayer a half dollar on every $1,000 per assessed property value, the utility tax is worth it.
"I am tired of discussions and would like to get it on the agenda and vote for it," he said.
RENTERS AFFECTED
School Board member Patricia Bentley noted the utility tax would impact renters and said the district should communicate with entities that are not on the tax rolls.
"They have some responsibility to support the School District."
But Assistant Superintendent for Business Jay Lebrun thought groups exempt from property taxes would avoid the utility tax.
"There is a certain amount of unknown with this."
But there is apparently one certainty.
"The School Board does not want this to be additional revenue coming into the school but something to offset property taxes and spare property owners," Short said.
STRUGGLING
But the idea of an additional tax is hard to swallow for some people.
"They lower the property tax some for the homeowner and impose a utility tax on everybody, so the homeowner is still paying a utility tax and not really getting a break," said Vanessa Davies of Plattsburgh.
She and her husband, Matt, and their son live in a home the couple rent, and she said they would struggle with a hike to their utility bill.
Her husband was laid off by Bombardier, so their income was cut significantly and they have to purchase medical insurance now at roughly $400 monthly.
"We are budgeting very tight," she said. "So, yeah, it would definitely be an issue for us."
E-mail Stephen Bartlett at: sbartlett@pressrepublican.com
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