Plan to cap state's property tax payments is killed

ALBANY — An unpopular proposal to cap state property tax payments on state-owned land in forest preserves will not be included in this year's state budget.

Since the creation of Adirondack Park in 1886, New York state has paid full local property taxes on state-owned forest preserve land. Catskill Park was included later and today, the state pays property tax on some 3 million acres in more than 100 towns in 16 counties in the two parks.

Statewide in 2007-08, New York paid more than $170 million in local taxes on more than 4 million acres, according to the Adirondack Mountain Club.

The tax payments are meant to be compensation for a prohibition against commercial use of forest preserve lands, as well as to pay for local municipal services.

As a cost-cutting measure, Gov. David A. Paterson in December proposed to permanently cap state property tax payments at 2007 levels. But after a February meeting with the Common Ground Alliance, a coalition of community and environmental groups, and other parties, the governor promised to review the plan.

In some rural towns, the state owns three-quarters or more of the taxable land. Opponents of the plan feared massive property tax increases on other property owners to make up for the loss of state revenue.

"Reversing this ill-conceived policy was one of the Adirondack Mountain Club's top legislative priorities this year, so we are very pleased that it is not in the final budget," said Neil Woodworth, the club's executive director, in a press release. "This proposal would have had a catastrophic impact on some upstate communities and crippled the open-space program at a time when so many critical parcels are available."

Mr. Woodworth thanked Sen. Darrel J. Aubertine, D-Cape Vincent, and Assemblyman Kevin A. Cahill, D-Kingston, for leading "efforts in their respective houses to block the tax freeze."

"We have an obligation as a state to make good on our longstanding commitment to pay the full property tax bill on state forest lands," Mr. Aubertine said Friday. "By reversing the executive budget proposal to cap these payments, we've protected private property owners in almost every county of this state from shouldering the burden of local tax increases alone. I'm pleased that we were able to work with leadership and stand with bipartisan support in opposition to this proposal."

Other groups were also happy.

"This was the first big test for the Common Ground Alliance and our ability to work together on a serious problem," said Brian L. Houseal, executive director of the Adirondack Council, and a founder of the alliance. "I was impressed that we stood together in the face of adversity and succeeded where few thought we could. This is a $4 million victory for the people of the Adirondacks and for the Forest Preserve."

Reaction in the Catskills was equally positive.

"The Catskill Center applauds Gov. Paterson and the state legislature for protecting our Catskill communities by stripping the proposed tax freeze from the budget," said Lisa Rainwater, executive director of the Catskill Center for Conservation and Development. "Our victory highlights the power of community and the strong ties that bind us to each other, our main streets, and this beautiful landscape."