EDITORIAL: Tax exemptions should be known and justified

November 02, 2008 04:00 am

— We were happy to see news come out of Malone earlier this week that the state is now requiring all taxing entities to publicly declare which properties in their jurisdictions are exempt from property taxes. All taxpayers need to know which properties don't pay taxes and why.
Years ago, such information didn't have much of a public profile. People paid their taxes, and little was made of the organizations that didn't.
These days, with the economy temporarily in shambles and the costs of government skyrocketing, people are insisting on knowing who is sharing the tax burden and who isn't.
Some organizations deserve to be tax exempt. Schools and churches, for example, are excused from taxes and should be. Charitable organizations also are rightfully exempt from taxes.
The Town of Malone knows that 37 percent of its property is tax-exempt. The village has 41 percent exempt. What that means, of course, is that the remaining 63 and 59 percent, respectively, are paying all of the taxes. They need to know that.
Possibly, some taxpayers might want to challenge the exemption of an entity. If that's the case, the entity should be required to defend its status. Nothing should be assumed.
Years ago, the City of Plattsburgh was well more than half tax-exempt. It didn't matter so much to people then, as the tax rate was very low. Now that the tax rate is rising dramatically each year, people are concerned with how broadly the burden is being applied. Mayor Donald Kasprzak has undertaken a campaign -- some people call it a crusade -- to make sure any organization that gets a tax exemption deserves it. That has upset the recipients of the exemptions, as expected, but he is clearly looking after all taxpayers' interests by challenging property owners to justify their reasons for not contributing to the city treasury.
If, after all examinations are completed, those exemptions are deemed to be justified, no one will have a legitimate complaint. But the examination is worthwhile.
Sen. Betty Little (R-Queensbury) has been pushing legislation requiring owners of tax-exempt property to prove that the property is used for purposes that would be compatible with a tax exemption. If a church, for example, owns some land that isn't actually used for the church's mission, it would not be allowed to be excused from paying taxes on that part of its holdings.
Tax exemptions for certain organizations are necessary and right. They should be granted.
But any organization that receives a tax exemption should be prepared to justify it to the taxpayers, who are obliged to pick up that organization's share of the burden. And it's good that the state is taking steps to make everyone aware of those exemptions in case anyone wants to issue a challenge.