Most municipalities down a third

Towns and villages in western Monroe County saw a sizable decrease in mortgage tax revenue received in 2000. The county collects an almost one percent tax on all mortgage filings – both actual sales and refinances – then shares, according to a set formula, the revenue with local municipalities and the state.

Home sales and mortgage refinances dropped in 2000 due to higher interest rates causing the tax loss. The two previous years were "boon" years for mortgage lending due to reasonably low interest rates. The difference on the revenue side of many towns and villages’ ledgers is substantial, but most municipal financial directors say mortgage tax revenue is budgeted conservatively to protect the municipality from being caught short.

With the exceptions of Ogden, Parma and Hamlin, most of the municipalities’ mortgage tax revenue was relatively steady between 1998 and 1999. The big gains those towns realized in 1999 made the fall in 2000 even larger.

The municipalities lost between 21 and 41 percent of their mortgage tax revenues between 1999 and 2000. Clarkson took the biggest hit percentage wise, Hamlin the least.

What does 2001 hold for municipal budget planners? If the Federal Reserve continues to take action to lower interest rates to stimulate the economy, mortgage lending may rise. On the other hand, if fears of a recession grow, consumers may be wary of taking on new mortgages.

Here’s a look at what western Monroe County towns and villages received in mortgage tax revenue during each of the last three years.