Tax rate would go down despite levy increase in proposed Niagara County budget

The proposed budget calls for a tax rate of $5.62 per $1,000 of assessed value. That’s 9 percent less than the 2022 tax rate, which was $6.18 per $1,000 of assessed value, according to budget documents posted online by county officials.

That means the average Niagara County homeowner with a $100,000 home would pay $562 in county property taxes in 2023 – a decrease of $56 from this year’s figure. However, the budget documents note that the figure can vary depending on state equalization rates “established for each town and city.” 

The plan is “a responsible budget that once again stays under the property tax cap and keeps county-controlled spending well below the rate of inflation,” County Manager Richard E. Updegrove said in a letter to county legislators.

The proposed $407 million budget includes a spending increase of more than 8 percent, documents show. More than 60 percent of that increase comprises “pass through” funds from the state that are fully reimbursable, budget documents state. 

Those funds include shared sales tax, social services, mental health services, homeland security, public health services and bail reform for the District Attorney’s Office.

In addition, county officials say state mandates for Medicaid, retirement, special education, indigent defense, youth detention, and child welfare and preventive services will consume 84 percent of the total tax levy.

“All of these costs are determined and controlled by the State of New York and/or Federal Government, and are passed down to the County to be paid for with the tax levy,” Updegrove wrote. 

Despite the cut in the tax rate, county officials expect the total tax levy to increase. They expect to raise $2.1 million more in property taxes for the general fund, noting that the “property tax levy, including all funds, districts and chargebacks, has increased by 2.2%.”

To help balance the budget, county officials are counting on a 12% increase in sales tax revenue compared with this year. Budget holes will also be plugged using $1 million in reserves, according to budget documents.  

County officials will hold a public hearing on the proposed budget at 5:10 p.m. Tuesday at the Niagara County Courthouse, 175 Hawley Street, Lockport.