TROY — The Troy City School District is considering joining what has been a growing list of school districts that offer school property tax breaks to veterans.

The School Board has set a public hearing on the possible exemption for 6 p.m. on Jan. 16 at School 18.

Board members then plan to decide on the exemption during their next meeting at 6:30 p.m. on Feb. 6 at Troy Middle School.

The number of districts that grant the breaks has grown steadily since the option was expanded from municipal to school taxes in 2013.

From 2016 to 2018, for example, the number rose from 254 to 288, according to state records.

And more districts are looking at the potential exemptions.

“My understanding, based on anecdotal evidence is that it has been gaining momentum,” said Matt Tully, an Albany lawyer who was involved in a recent successful effort to pass an exemption in Niskayuna.

While popular with veterans, the exemptions aren’t offset by state money, which is the case with other tax breaks such as the STAR, or School Tax Relief program. That means that districts offering the exemptions have to find additional budget savings or spread the higher cost to other taxpayers.

Like other exemptions, Troy’s program would work by reducing the assessed value, or value of a home that is used to calculate its tax burden. The reductions could vary based on a number of factors. Those could include whether a veteran served in an actual combat zone or suffered a disability. The exemptions could range from $6,000 to $40,000.

District officials estimate that, if enacted, the exemption could reduce most veterans’ annual tax bill by up to approximately $845.84, based on a property with an assessed value of $100,000.

That would increase other residents’ annual tax bill by up to $23.44.

The need for other taxpayers to bear the burden of a veterans’ exemption has prompted lawmakers in the last few years to offer bills that would have the state pay for the tax breaks. But those proposals haven’t gained traction in the Legislature. And in some communities, efforts to get exemptions have been turned down since board members didn’t want to increase taxes for others.

Complicating factors in some locations is the new $10,000 limit on deductibility of local taxes including school property taxes, remarked Frank Pagani, a Vietnam veteran who served in the Air Force and is an American Legion member. He was involved in a push two years ago to get an exemption in Ardsley, Westchester County.

Many of the exemptions are downstate in places like the lower Hudson Valley and Long Island. Because of the high home prices and taxes in those locales, many residents pay more than $10,000 and the limit on deductibility has acted as a de facto tax hike for some.

Pagani added that some school boards have discussed putting the exemptions up for a referendum by voters.

In the Capital Region, school districts offering veterans' exemptions include: Albany, Bethlehem, Berne-Knox-Westerlo, Green Island, Guilderland, North and South Colonie, Ravena-Coeymans-Selkirk, Voorheesville, Averill Park, East Greenbush, Hoosick Falls, Schodack, Ballston Spa, Burnt Hills-Ballston Lake, Saratoga Springs, Shenendehowa, Stillwater, Scotia-Glenville, Mohonasen and Niskayuna.

Note: An earlier version of this story incorrectly quoted Frank Pagani as saying some school boards considered putting the tax breaks up for referendums. Pagani did state that his American Legion post in Ardsley had considered taking the idea of a referendum to his local school board, but ultimately decided not to.

rkarlin@timesunion.com • 518-454-5758 • @RickKarlinTU