Councilman Brent Sheldon, chair of the finance committee, reads the resolution for the local tax cap override law at Monday’s work session. P-J photo by Sara Holthouse

Those who have been looking to buy a home know how high prices have been over the past few years.

One City Council member is asking how a proposed 7.79% tax rate increase could affect those homes whose tax assessments are higher than the properties’ previous tax assessments. And, eventually, can that affect neighbors?

Councilman Jeff Russell, R-At Large, asked about the tax levy increase, giving an example of his neighbor’s house down the street being sold for much more than its prior tax assessment.

“With supply and demand issues, houses are often going for way over what they are assessed at,” Russell said. “Some people are saying people are overpaying for homes. My question is, say for example my neighbor’s house was not assessed at I’m assuming anywhere near what it was sold for, what’s going to happen to these people, our constituents, who have purchased houses in the last two or three years that have paid way over what their assessments are?”

Councilman Andrew Faulkner, R-Ward 5, also recently bought a house, saying that for his house it was a year before it was reassessed and that their taxes then went crazy. Corporation Counsel Elliot Raimondo said every assessor does things differently and that they are able to do reassessments mid-year sometimes. Russell said with the way the current housing market is, property taxes have the ability to skyrocket.

“They could, but you’d also have a full-city reassessment, where everybody’s would balance it out and the tax rate would come down because your levy goes up,” Mayor Kim Ecklund said. “Ideally you’ll have a third (go up), a third (come down), a third (stay the same), if I recall from the last time.”

Brent Sheldon, R-Ward 1 and Finance Committee chairman, acknowledged that with the current market things could be different, which is why Russell said he was concerned.

“My personal concern is that we are going to chase more people out of the city of Jamestown if we continue to hammer more taxes,” Russell said.

A question was raised about assessments in regards to Faulkner’s property assessment, and Director of Development, Crystal Surdyk, said that sometimes if improvements are made to a property, and there is a permit record, that will trigger an increased tax assessment. Sometimes an area will be done and sometimes if a permit is pulled for an addition to the house a new assessment will be done.

Prior to the conversation, two City Council committees approved a tax cap override proposal that will be voted on by the entire council today.

The tax cap override law is necessary for any amount of tax increase over 2%, which is the tax cap rate established by Chapter 97 of the Laws of 2011 of the State of New York, and Article Eight, Section Ten of the New York State Constitution for real estate taxes as well.

At Monday’s meeting Sheldon said this is something that has been done in the past by the council in 2013, 2014 and 2016. Additionally he said it is something that needs to be done even if the council manages to cut some of the tax increase.

Council President Anthony Dolce, R-Ward 2, said the law is something that is procedural.

“If in fact we were able to cut it below 2% this wouldn’t take effect, but in order to do it if we have to go above the 2%, whether it’s three, four, five, six or the full seven, whatever, this is necessary,” Dolce said.

Dolce added that technically passing the law would be tabled until November unless the mayor signed a letter, which she will do, since passing it in November would infringe on also passing the budget in November.