Colonie Town Assessor Ron Monfils explained at a Thursday, Nov. 5 meeting, that without a one-tier system for the town, which would set a constant rate for both residential and commercial property owners at $2.80 per thousand of assessed value, property taxes would increase in 2010 by between 4 and 5 percent, according to reports of the meeting.
Monfils said state mandates will require discrepancies between homestead and non-homestead homes to be remedied, and do so by charging up to 5 percent in property taxes to make up the difference.
In order to avoid this, Monfils said, a one-tier system eliminates the need for the state to step in.
He said in general, residential property rises in value faster than commercial. That reality caused the homestead and non-homestead rates to move closer together over the years, and is likely to continue even as the town, and school district switch to a one-tier system.
Monfils said a potential solution is a town-wide revaluation, but the town is not planning one at this time, as they can be pricey.
"We'll do it when it's time," Monfils said.
He said when it will be cost-efficient to spend the money on a revaluation, the town will consider one.
"The idea is not to collect more taxes," he said. "It's to be more equitable."