Reimagined Tax Systems

Vision

Buffalo Niagara will establish a fair, transparent, and efficient tax system that fuels economic growth, supports equitable development, and funds transformative investments in infrastructure, sustainability, and community well-being. By reimagining taxation, we will create a business-friendly environment while ensuring all residents benefit from the region’s prosperity.

Strategic Objectives

  1. Promote Equity in Taxation: Shift tax burdens to prioritize fairness, ensuring low- and middle-income households are supported while high-value properties and businesses contribute equitably.
  2. Incentivize Sustainable Growth: Use tax policies to encourage environmentally responsible practices, local job creation, and revitalization of underserved areas.
  3. Simplify and Modernize Tax Systems: Streamline tax codes and collection processes to enhance transparency, reduce administrative costs, and improve compliance.
  4. Diversify Revenue Streams: Explore innovative funding mechanisms to reduce reliance on property taxes and support long-term investments in public goods.

Key Strategies

1. Promote Equity in Taxation

  • Progressive Property Tax Reform: Adjust property tax rates to reduce the burden on low- and middle-income households, implementing tiered rates based on property value to ensure wealthier property owners contribute proportionally.
  • Homestead Exemptions: Introduce exemptions or credits for primary residences to protect homeowners, particularly seniors and low-income families, from rising property taxes.
  • Equitable Commercial Taxation: Revise commercial property tax assessments to reflect current market values, ensuring large corporations and high-value properties fund critical services like schools and infrastructure.
  • Tax Relief for Vulnerable Communities: Offer targeted tax relief programs for residents in historically underserved neighborhoods to prevent displacement amid revitalization efforts.

2. Incentivize Sustainable Growth

  • Green Tax Incentives: Provide tax credits for businesses and homeowners adopting renewable energy, energy-efficient retrofits, or green building certifications like LEED.
  • Local Hiring Credits: Offer tax reductions for businesses that hire at least 50% of their workforce from within Buffalo Niagara, prioritizing jobs for underrepresented groups.
  • Revitalization Incentives: Grant temporary tax abatements for developers and businesses investing in blighted or underutilized areas, contingent on community benefit agreements that ensure local impact.
  • Innovation Tax Breaks: Provide tax incentives for startups and companies in high-growth sectors like technology, biotech, and clean energy to foster economic diversification.

3. Simplify and Modernize Tax Systems

  • Unified Tax Code: Consolidate municipal tax codes across Buffalo Niagara to create a standardized, easy-to-navigate system, reducing complexity for residents and businesses.
  • Digital Tax Platform: Implement an online portal for tax filing, payments, and appeals, improving accessibility and reducing administrative overhead.
  • Transparent Reporting: Publish annual tax reports detailing revenue allocation and impact, ensuring residents understand how their taxes fund regional priorities.
  • Compliance Support: Offer free tax education workshops and assistance programs for small businesses and low-income households to improve compliance and reduce penalties.

4. Diversify Revenue Streams

  • Tourism and Hospitality Taxes: Introduce modest taxes on hotel stays, short-term rentals, and tourist attractions to fund cultural and recreational projects, leveraging Buffalo Niagara’s growing tourism sector.
  • Public-Private Partnerships (P3s): Develop P3s to finance infrastructure projects, such as transit or waterfront development, reducing reliance on traditional tax revenue.
  • Impact Fees for Large Developments: Implement fees on large-scale commercial or residential projects to fund associated infrastructure needs, like roads or utilities.
  • Regional Revenue Sharing: Establish a regional revenue-sharing model to equitably distribute tax proceeds across municipalities, supporting smaller communities and reducing disparities.

Implementation Plan

  • Short-Term (1-2 Years):
    • Pass progressive property tax reforms, including homestead exemptions, to reduce burdens on low-income households.
    • Launch a digital tax portal to streamline filing and payments.
    • Introduce green tax credits for businesses and homeowners adopting sustainable practices.
    • Begin a public education campaign to explain tax reforms and their benefits.
  • Medium-Term (3-5 Years):
    • Implement a regional revenue-sharing framework to support equitable development across municipalities.
    • Secure at least five public-private partnerships to fund major infrastructure projects.
    • Achieve a 15% reduction in tax-related administrative costs through streamlined processes.
    • Introduce tourism taxes to generate $10 million annually for cultural and recreational initiatives.
  • Long-Term (5-10 Years):
    • Reduce property tax reliance by 20% through diversified revenue streams by 2035.
    • Ensure 90% of residents report satisfaction with tax system transparency and fairness.
    • Position Buffalo Niagara as a national model for equitable and innovative tax policy.
    • Fund 50% of new infrastructure projects through alternative revenue sources like P3s and impact fees.

Metrics for Success

  • Equity: Reduce the property tax burden on low- and middle-income households by 15% by 2030 while increasing revenue from high-value properties by 10%.
  • Economic Impact: Attract 50 new businesses through tax incentives for sustainable and local hiring practices by 2030.
  • Simplification: Achieve a 90% adoption rate for the digital tax platform by residents and businesses by 2030.
  • Revenue Diversification: Generate 25% of regional revenue from non-property tax sources, such as tourism taxes and P3s, by 2035.

Conclusion

By reimagining its tax system, Buffalo Niagara will create a fair, efficient, and forward-thinking framework that supports economic vitality, environmental sustainability, and equitable growth. This strategy will ensure that tax policies not only fund critical services but also drive the region’s transformation into a global leader in prosperity and opportunity.