| Earlier I wrote that today, a number of groups and members of the New York State Legislature would be announcing an alternative property tax cap plan prior to the release of the New York State Commission on Property Tax Relief report this week.
Touted as the "REAL property tax cap," the Working Families Party and New Yorkers for Fiscal Fairness presented their own proposal today. You can see the fact sheet of the proposal here.
Here are two basic principles that this proposal recommends.
Cap property taxes the smart way: using a "circuit breaker" to actually cut property taxes for working families, in a way that's fair to all taxpayers.
Pay for it the right way: with a modest, partial repeal of income tax cuts for the wealthy. Doing so lets New York cap property taxes for the middle class and seniors without threatening critical public investments.
In a joint press release, the WFP and NYFF promoted their plan as one that would truly help working families and the middle class.
A bipartisan group of more than forty New York State legislators joined leaders of the Working Families Party and New Yorkers for Fiscal Fairness today to announce a plan that would cap the amount of local property taxes paid by middle class families and seniors across New York.
"Our plan caps property taxes the smart way - not by capping the amount property taxes can increase - but by actually giving a substantial property tax cut to working families who need it," said Dan Cantor, Executive Director of the Working Families Party.
Dubbed the "Real Property Tax Cap", the plan would reduce the property tax burden of middle class homeowners and seniors by capping the percentage of household income that the homeowner would pay in property taxes. For example, in one version of the plan, a family with a combined income of $80,000 per year would pay no more than 6% of their income in property taxes ($4800). Any property taxes paid above that amount would be either fully or partially rebated back to the homeowner. The net effect of the rebate would be a massive multi-billion dollar property tax cut for working families and seniors.
Known in budget parlance as a "circuit breaker", the plan aims to target property tax relief to middle class families and seniors. Renters would also get a rebate on a similar model. The plan would be financed by a partial repeal of income tax cuts enacted in the 1990's for the wealthiest 1% of New Yorkers.
At first glance, I really like what was proposed here. I'm eager to see what the Suozzi Commission proposes this week when they release their report. Property taxes are an issue here in New York, especially in upstate New York. Yes, downstate pays more in taxes, but upstate's taxes tend to be a higher percentage of property values than downstate's. As a whole, our state is taxed heavily and we need solutions, especially when it comes to property tax reform. |
