Reimagined Tax Systems

Why It Matters

Western New Yorkers carry a heavy and complex tax load. In Erie County alone, residents pay a combined 8.75 percent sales tax, plus property taxes levied by a patchwork of county, city, town, village and school district governments. A tax system that is complicated, uneven and expensive drives families and businesses away, and makes the region’s comeback harder.

Change Buffalo PAC’s goal is a system that is simpler, fairer and lighter overall, funded by a growing tax base rather than ever-higher rates. This plan works alongside our county proposals for tax relief and budget discipline and our Reform Before Renewal campaign.

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.

Targeted relief in practice. On October 13, 2026, the Buffalo Common Council unanimously approved, and the Mayor signed, a local law fully exempting the primary residences of qualifying veterans with permanent and total service-connected disabilities from City property taxes (City of Buffalo). It is the kind of narrowly defined, clearly justified relief this plan supports.

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

A simpler, fairer and lighter tax system will help families stay, businesses grow and the region compete. This plan is part of the PAC’s Turnaround Agenda.