GOSHEN – Orange County Executive Steven Neuhaus has vetoed a property tax exemption law approved by the County Legislature, citing a lack of oversight, missing eligibility safeguards, and the potential to allow wealthy individuals to avoid paying their fair share of taxes.
He called it a “bad local law” that creates massive loopholes at the expense of regular taxpayers.
The law grants a permanent 50% property tax exemption on a property’s assessed value when it is transferred to a low-income household.
However, Neuhaus said there are critical flaws that differentiate the law from standard, well-regulated tax relief programs:
- No affordable-home requirement: The tax break applies to property transfers even if the residence is not designated or priced as an affordable home.
- No annual reapplication: Unlike long-standing property tax exemptions for senior citizens or veterans, the law does not require families to reapply each year. This means a household could continue receiving a 50% tax break indefinitely, even if its income increases significantly and it no longer qualifies as low-income.
- Outsourced eligibility checks: Instead of using government tax assessors to verify income, the law allows government agencies, existing nonprofits or newly formed nonprofit organizations to determine who qualifies.
Due to what he called “weak guidelines,” Neuhaus warned that the law is highly vulnerable to exploitation. He said it could allow large-scale tax avoidance schemes in which well-connected or higher-income individuals manipulate property transfers through newly created nonprofits to avoid their tax obligations. He also said the law detracts from the work of organizations such as Habitat for Humanity of Greater Newburgh.
“When loopholes allow certain properties to avoid taxes without proper ongoing verification, the financial burden inevitably shifts to regular homeowners and local working families who must make up the difference,” Neuhaus said. “This is why I am vetoing this local law.”
Democrat legislator had pushed for the local law, while Republicans opposed it.
“County Executive Neuhaus has used his veto power for the first time in eleven years to kill a housing affordability measure,” said Democratic Caucus leader Genesis Ramos. “Working families in our county deserve better, yet he has offered no solutions to the housing crisis we face. As chair of the housing task force, I will continue working with my colleagues in the legislature to put forward policies that provide real relief.”
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