Cuomo Plans to Push for a Cap on Property Taxes

 

 NEW YORK TIMES

 We need some kind of cap.....school taxes are through the roof and young families are moving out of state because they can no long afford to live here......andy

 

 

 

 

 

 

Michael Nagle for The New York Times

Andrew Cuomo speaks at a press conference about property taxes on Oct. 14 in Merrick, N.Y.

By WINNIE HU

Published: December 12, 2010

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Governor-elect Andrew M. Cuomo has a full plate awaiting him when he is inaugurated next month, including a gaping budget deficit. But Mr. Cuomo is already making clear to legislative leaders that one of his priorities is to cap local property taxes, which would have large consequences statewide for homeowners and school districts.

Three New York governors have tried, and failed, to limit local taxes, which are among the highest in the nation and a primary reason suburbanites and upstate residents say the state has become unaffordable.
But with the Senate all but certain to be controlled by the Republicans and voters in a tax-rebellion mood, Mr. Cuomo may be facing a more favorable political climate for a cap.
“When this issue first came up, most people saw it as an arrow in the quiver of conservative Republicans,” said Thomas R. Suozzi, a Democrat who is a former Nassau County executive and who headed the New York State Commission on Property Tax Relief in 2008. “Now it has a broader base of support among Republicans and Democrats, with the deteriorating economic situation and rising property taxes.”
Mr. Cuomo is proposing a limit on the total amount of property tax dollars that can be collected annually by a school district, municipality or special district by capping the increase in the local tax levy at 2 percent or the rate of inflation, whichever is less, according to his campaign literature. Schools traditionally receive the largest share of property taxes. Over all, the amount that New York’s schools have raised in property taxes — their tax levy — has climbed an average of 6.9 percent annually in the past decade, to a total of $29.1 billion in 2009, according to the state comptroller’s office.
The proposal is tougher than tax cap efforts in some other states, allowing only “narrow, limited exemptions” to the cap, like for large legal settlements and extraordinary capital expenditures. It could, however, be overridden by local communities with a 60 percent vote.
School districts say a cap would have a devastating effect on their budgets, prompting layoffs, school closings and program cuts. The Democratic-controlled State Assembly and the powerful state teachers’ union have opposed attempts to impose caps.
But in recent weeks, Mr. Cuomo and his staff have started promoting the cap in meetings and conversations with the Assembly speaker, Sheldon Silver; the Senate Democratic and Republican leaders, John L. SampsonDean G. Skelos; and New York State United Teachers. The talks have not focused on specifics, but all parties involved have told Mr. Cuomo or his aides that they are “committed to finding common ground,” according to legislative aides and union leaders. and
By broaching the subject even before he picks his full cabinet or explains how he expects to close the state’s budget gap, Mr. Cuomo is signaling the importance he places on a property tax cap.
“The property tax cap is a centerpiece of the governor-elect’s agenda,” said Josh Vlasto, a spokesman for Mr. Cuomo. “And he will move aggressively to see it implemented upon taking office so New Yorkers can finally receive relief from skyrocketing property taxes that are driving them from their homes and out of the state.” Mr. Vlasto declined to elaborate on how the cap would work.
A cap would not directly affect New York City, where property taxes are relatively low because of revenue from the city’s personal income tax, and where the schools are financed through the general city budget. But outside the city, New York is among the most heavily taxed states in the country. A 2010 report by the Tax Foundation, a nonprofit, nonpartisan research group in Washington, found that the median property tax in New York was $3,755, compared with $1,917 in the United States.
Broken down into counties nationwide, Westchester and Nassau topped the list with $9,044 and $8,940, respectively, while Rockland was fifth with $8,542.
But Mr. Silver, a Democrat from Manhattan, said last week that his members, many of whom represent New York City, recognized the tax burden faced by homeowners. “While this is a complex issue,” Mr. Silver said in a statement, “I believe that we’ll be able to come to a meaningful agreement with Governor-elect Cuomo.”
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