Westchester County Business Journal
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Vol. 46, # 45 | November 5, 2007

Blog Section

Recruiting is a
full-time job

 

Feature Section

Faces & Places
Fly on the Wall
Profits & Passions : Chris Colombo
ViewPoints

OurView : Welcome to Westchester (if you can afford the taxes)

GuestView : By Michael Seilback
Bioheat: An environmental and cost-effective way to heat your home

Focus Section :

Living & Working Green - Real Estate & Construction

VideoChat :

Commercial Real Estate - Fairfield

On the Record :

Credits, Clients & Awards

Newsmakers

On the Agenda

Public Notices

Real Estate Update

 

Westchester County Jobs

Westchester County Local Jobs

News Briefs

MBIA reports 3Q loss

Starwood Hotels’ profits dip 17%

Author Jane Pollak to address WEDC

Jazz flutist Torres to perform for VNS

Reader’s Digest to outsource some functions to London company

 

Real Estate

 

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OurView
Welcome to Westchester (if you can afford the taxes)

Ah, Westchester, the bucolic, leafy, tony suburb.

The yin to Manhattan’s yang.

God’s country.

But it may be more akin to Cheever Country; something sinister lurks beneath the surface.

Something like 400 taxing entities!

- More than 300 special improvement districts.

- One of the nation’s three highest property tax burdens.

- A 67 percent increase in countywide property taxes in the same decade county population rose 5 percent.

- Countywide school taxes up nearly 10 percent from 2005 to 2006.

The message is clear: Westchester doesn’t offer a friendly environment for business.

There is no doubt Westchester has been able to hold its own in terms of business attraction and retention. The county has long enjoyed an edge because of its quality of life, good schools and other appealing aspects.

But those days may be numbered. Taxes have hit a level that is unsustainable.

“We are at the tipping point ­ the economics are going to outweigh the attractiveness,” Alfred DelBello, chairman of the Westchester County Association, remarked in a recent conversation about the weighty tax burdens.

We have reported on corporate relocations and other deals that went south ­ literally, in some cases. But that’s not the whole story. How many companies, when scouting for a headquarters or even back-office space, ultimately rule out Westchester because of the high costs? We cannot say, because we are not privy to most of the negotiations.

So we’re pricing businesses out of the county? That’s not new. It’s an issue that has been around for a long time. What is new, however, is a push for change.

The Westchester County Association’s Property Tax Reform Commission released its initial report containing statistics, as noted above, that are disconcerting.

An “outmoded, inequitable and highly inefficient governmental tax system” has created a property tax crisis in Westchester that “poses a real and economic threat that needs to be immediately addressed,” association President William C. Mooney Jr. said in a report in last week’s edition.

DelBello, who also is a member of the commission, said the public sector needs to look at the way businesses are managed to create efficiencies in operations and consolidate services.

Formed in January, the 60-member commission comprises a cross section of Westchester businesses and private nonprofit groups that focus on public education, county government, municipal and other taxing entities, and tax administration and valuation.

DelBello said the commission is considering creating an alliance of school district officials, county representatives and business leaders to review the issues outlined in the report and discuss ways to ameliorate the situation.

And the timing is right for reform, he said.

“We’ve met with the county executive (Andrew Spano) and his staff, and he’s on board … through our subcommittee, we met with school superintendents … everyone has the same concerns.

“We will make gains … changes are going to start at the state level. It can happen.”

While everyone may agree change is needed, will everyone be willing to stand up to the politics? After all, we are talking about consolidating overlapping areas of government; reforms in state pension and benefit policies; school taxes; special districts; privatization of infrastructure; and a transparent and equitable tax system. That’s sure to raise a few eyebrows.

“Just because it’s hard … doesn’t mean you should shy away from the issue,” DelBello said. “The Westchester County Association doesn’t shy away.”

We agree. Mooney has been known to take up some controversial initiatives in the interests of the business community.

Too often we see elected officials lacking the courage to even acknowledge these issues, let alone take any action toward reform. So we agree advocacy groups such as the county association have an obligation to act as a catalyst for change.

We hope others will be as adventurous. We cannot afford to ignore this any longer.

 

 

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