Thousands in reductions went to ineligible properties
By Gwendolyn Craig
The state Department of Environmental Conservation is failing to monitor private forest owners receiving special tax breaks, many of whom are in the Adirondack Park, according to a new audit by New York State Comptroller Thomas DiNapoli.
The DEC agreed with most of the report, citing a lack of staff as one of the reasons for thousands of dollars in improper tax breaks. The department pointed out that local tax assessors were also not keeping track of the program. The department suggested legislation is needed to enhance its oversight.
A comptroller investigation of 135 properties showed from January 2017 to December 2019, 45 owners received more than $525,000 in tax breaks for which they did not qualify. The investigation included only a portion of the 6,858 properties enrolled in what is called the Real Property Tax Law 480a and 480. Under that law, private landowners with DEC-approved forest management plans for producing timber crops receive an annual property exemption of up to 80%. The 480a is the latest iteration of Law 480.
All participating landowners received a local tax reduction of $62 million between 2017 and 2019, according to the comptroller’s report. An interactive map the comptroller’s office created shows the majority of program participants are in the Adirondacks and North Country. The location of the 135 properties examined is unclear.
“New York state offers a property tax break for landowners who commit to protect their private forest land, but some property owners are not living up to their end of the agreement,” DiNapoli said. “This audit raises questions about whether these incentives are achieving their goal to improve private forest management. The tax benefits received are worth hundreds of thousands of dollars and demand greater scrutiny.”
Two properties — one in Hamilton County, the other in Warren County — were cited in the interactive online report. In Hamilton County, a private forestland no longer in compliance with the program, was found to have a 6,000 square-foot house and a boat house that had been built in 1998. The 131-acre property receives a $1 million annual reduction in land value, good for $37,597 in tax breaks from 2017 to 2019, the comptroller’s office said. In Warren County, a 16-acre property, also not eligible but enrolled in the program, received a $94,393 tax break from 2017 to 2019.
The audit specifically found eight properties not committed to the tax exemption program, but still receiving exemptions. Another 25 properties were not eligible for the program, but still receiving exemptions. Some local assessors were also not able to provide the comptroller’s office with program documents.
“Department officials stated that several of the exceptions identified are an error on the assessor’s part and the Department has no authority to oversee their actions,” according to the audit. “Currently, the Department and assessor both possess information that could assist each other in overseeing the program but have limited communication with each other regarding the program.”
The DEC told the comptroller’s office it plans to contact the New York State Assessors Association to improve communication.
The DEC pointed to staffing shortages as a reason “the Department is generally not monitoring these aspects of the management plan.” The DEC has 29 foresters to oversee 1.5 million enrolled acres, according to the department’s response.
The DEC also does not keep track of the program in a centralized location. The comptroller’s office found each of DEC’s 23 sub regional offices track the information in different ways. The comptroller’s office recommended a centralized database.
“DEC has been actively developing solutions to mitigate these conditions and is pursuing regulatory changes to modernize the Program, which will reduce administrative burdens and improve forestry outcomes,” the department said.
NYS politicians are big on regulation, but never want to pay for the enforcement.
Tax dollars fund the audit of a program administered by DEC.
Tax dollar funded DEC excuse for allowing the obvious fraud is that DEC is under funded.
I live adjacent to Day, NY “Livingston Lake Club”, an 800 acre Fisher Act tax exempt property that has 7 vacation homes surrounding a magnificent state lake.
DEC seems especially sensitive to any action that would be contrary to influential landowners.
Crack down on this fraud against NYS taxpayers. DEC excuse is outrageous.
My property is 82 acres so I meet the 50 acre requirement. I looked at the 480a program and decided I did not want to make the commitment to hire a professional forester and scheduling periodic harvests, that will benefit the local economy. I feel I do not have enough valuable timber at this point in time to to make it worthwhile.
I guess having to follow the forest management plan is not a requirement to be in the program based on this article. I have heard the assessors do not like the program because the tax breaks people receive must be made up for by remaining property owners in the towns.
This program has been around for 40-plus years, And I’ve been a participant for that long. Initially, some assessors were not enthusiastic about it because they did not control it, and feared that it would eat into local tax revenues. That turned out not to be true, because the management requirements put off most landowners. A forest owner must take the long view to realize any benefit. That’s a hard sell. Compliance costs money today, and the benefits — which are real — may not be seen for several years.
Since 480-a is not widely used by landowners, many assessors are unfamiliar with the program with the result that adherence varies — as the Comptroller’s audit shows.
My own impression, based on many years of participation, is that the majority of abuses have come about because of lack of coordination between DEC and local assessors. Related to this is the lack of DEC forestry staff. Warren County once had 3-4 service foresters working with landowners; now there is one.