The Latest Property Tax Developments in Dutchess County

We are tracking a few important stories in Dutchess County that could affect property taxes. Our goal is to keep commercial property owners informed of any big developments or changes that they should be aware of. Here’s a roundup:

2023 Budget Proposal

County Executive Marc Molinaro proposed a 2023 budget that includes a large cut to the property tax rate for Dutchess County property owners. It would cut the property tax rate by 12%, from $2.85 to $2.50 per $1,000 of assessed valuation. This would be the lowest property tax rate in Dutchess County since 2008. The proposal also affects the tax levy, which would be $99.45 million for 2023, as opposed to $99.8 million for the 2022 budget. A brief of the budget is available here. The proposed budget will be discussed at a series of town hall forums. You can access the schedule for the Budget Proposal Town Halls here.

Champlain Hudson Power Express Project

The Champlain Hudson Power Express line is expected to deliver 1,250 megawatts of renewable energy to NYC. Slated for completion in 2025, the transmission line will originate in Quebec, Canada. The U.S. section of the line will run beneath Lake Champlain and then continue through 15 counties, ending in Queens, NY. It will cover 339 miles and has the potential to power more than 1 million households. Investment company Blackstone Inc owns 89% of the line. 

With the recent closing of the Indian Point nuclear power plant in Westchester County, New York State has been working to shift its energy reliance from fossil fuels and nuclear power to renewable energy. The transmission line will help NYS reach the goals set forth in 2019 in the Climate Leadership and Community Protection Act, which include a goal of 70% of electricity being renewably sourced by 2030. The electricity for the transmission line will be generated by hydroelectric dams, among other renewable energy facilities.

The developer of the Champlain Hudson Power Express line has applied for property tax breaks and other tax incentives to municipalities all throughout the route. In Dutchess County, the request by developer TDI-USA Inc (a subsidiary of Blackstone) was for $105.5 million in property tax breaks over the course of 30 years. They also made requests for millions in sales tax and mortgage tax reductions.

Environmental concerns have been raised about aspects of the line and throughout different municipalities, which include concerns about contamination of water supplies, and harm to rivers. Others have praised the project for its potential to reduce greenhouse gases, improve air quality, deliver renewable power, and increase economic development in NY State.

Dutchess County officials are opposed to the tax breaks for the line. Officials state drinking water concerns and the loss of potential local tax revenue for a project that they feel has more benefit for NYC than it does locally. County Executive Marc Molinaro opposes sales tax breaks and Village of Rhinebeck Mayor Gary Bassett asked the Dutchess County Industrial Development Agency (IDA) to deny TDI’s request for property tax breaks and other tax incentives. Ulster County officials have also asked their IDA to reject TDI’s requests for tax breaks.

TDI withdrew its resolution before a planned Dutchess IDA meeting in July, stating that additional discussions were needed with stakeholders. 

TDI has been approved for property tax exemptions from other taxing municipalities along the line. This includes payments in lieu of taxes to municipalities in the following Counties: $85 million to Schenectady County, $126 million in Saratoga County, $164 million to Albany County, $273 million in Washington County, and $136 million in Greene County.

We will keep on top of these stories and update as they develop.

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