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John F. Sheehan
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Released, Tuesday, March 2, 2004

ALBANY, NY - The Adirondack Council today joined with Adirondack local government officials, timber company representatives, sporting groups, landowners and several members of the Legislature to support a bill that would reimburse heavily impacted municipalities for taxes lost when the state provides timberland tax abatements.

"Too many Adirondack towns suffer from a lack of revenue because of tax breaks granted by the state," said Adirondack Council Executive Director Brian L. Houseal. "The abatements were created in the 1920s to conserve timberlands and prevent them from being converted to other uses. That helps the entire state by preserving open space and watersheds, while ensuring a steady supply of renewable timber and retaining jobs at the same time. It only makes sense that the state should pay for the program. Taxpayers in the tiny towns of the Adirondacks should not carry this burden alone."

 Houseal joined 19 local officials, timber company representatives, environmental leaders, scientists and landowners in sending a letter to Gov. George Pataki and state legislative leaders. The letter urged the Legislature to approve the Governor's $3.3 million budget appropriation for the reimbursement, and to pass a bill distributing the money to municipalities statewide.

Brian Houseal, Executive Director, speaks at a press conference to urge the state legislature to pass a bill to reimburse localities for revenue lost from timber tax abatement programs.

The bill would provide relief to any municipality that loses more than one percent of its total tax revenues for the year to timberland tax abatements. Municipal governments would be reimbursed for the lost revenue in excess of that one percent.

For example, if the reimbursements to local government are approved by the Legislature as part of the state budget, the Town of Newcomb could receive the most in Essex County, at $84,091. That represents the 28.2 percent of Newcomb's total tax revenue for the year. Newcomb currently loses 29.2 percent of its annual budget to tax abatements.

The Town of Colton, with the largest revenue gap in St. Lawrence County, could receive $65,336 from the state. That represents 21.8 percent of the town's total tax revenues.

The Town of Long Lake would lead Hamilton County, with a potential reimbursement of $51,657, which equals 30.7 percent of its annual tax revenues.

In Franklin County, the Town of Altamont could gain $37,517 per year, which represents 4.9 percent of its budget.

In Saratoga County, the Town of Day could receive $13,916, which represents 28 percent of its annual tax revenues.

Houseal explained that there were two kinds of tax abatements in use by the state in the Adirondacks. The older program, started in the 1920s, makes no attempt to compensate local taxpayers. Enrollment is closed and only those landowners still enrolled may participate. The newer program required the timber company to pay local governments a "stumpage fee" after it cuts and removes trees from its lands.

"Local governments suffer from the lack of revenue," he said. "Those towns that are eligible to receive money when trees are cut - stumpage fees - cannot predict when they will receive money or how much they will get. The timber company decides when the trees will be cut. The Governor's latest plan would guarantee a steady revenue stream and protect local communities from unexpected tax burden shifts."

The Adirondack Council's mission is to ensure the ecological integrity and wild character of the Adirondack Park. Founded in 1975, the Council is a privately funded, not-for-profit organization that accomplishes its goals through research, education, advocacy and legal action.