Everywhere I go, constituents talk about their property taxes. Pressured by Medicaid, the rising cost of fuel and health insurance, and the previous comptroller’s unilateral increase in pension contributions, local governments face continuing pressure on their local budgets. That’s why the state senate has announced a three part plan to broaden the senate-initiated property tax relief rebate program to provide $2.6 billion in property tax relief this year and $3.4 billion in 2008. The plan would triple the size of direct property tax rebate checks in the first year, give voters a greater say on local property tax rates, and establish a blue ribbon commission to suggest reforms that would help reduce property taxes. As I stated in press conferences across my district last week, my number one priority is to provide greater property tax relief to the hardworking, overburdened taxpayers of our area. Last year, we provided approximately $875 million in direct property tax relief. This year, I want to build on what we accomplished last year and continue to return the state’s sizable budget surplus to the taxpayers. Local taxes per household in New York ($6,377) are the highest in the country and more than two times the national median ($2,952). The three-part senate property tax relief plan includes: • Triple Property Tax Rebate Checks – Rebate Plus. The Rebate Plus plan would triple the current rebate and credit program across the state in 2007 and would approximately quadruple it in 2008. It offers $2.6 billion in tax relief in 2007-08 and $3.4 billion in 2008-09. In 2006, rebate checks averaged approximately $175 for non-seniors and $300 for seniors. Under the expanded Rebate Plus plan, in 2007, the rebates would average $525 for non-seniors and $900 for seniors. The Rebate Plus program will be funded by the state budget surplus. • Voter-Initiated Tax Rate Limits. Let’s give voters a greater say in local tax rates by allowing them to collect signatures to limit the growth of local school and municipal tax rates. If a sufficient number of signatures are collected, a proposition would be placed on the ballot at the next school budget vote. The petition would set the type of limits on the tax rate. If approved, the limits on increasing the tax rate would be in effect for three years. • Blue Ribbon Commission on Property Tax Reform. The senate’s property tax relief plan would establish a panel to examine and make recommendations on specific areas of reforms for local governments and school systems with the goal of reducing property tax burdens. The commission will report at the end of calendar year 2007 on a reform plan for schools and local governments to lower local tax burdens with a focus on enhanced accountability, alternative financing methods, governance options, property assessment plans, and tax containment policies. The commission would also be charged with examining alternatives to the real property tax for funding schools and changes to the property assessment system. Members of the 11-member commission would be appointed as follows: three each by the senate majority leader, the governor, the speaker of the assembly, and one by each of the minority leaders. The goal is to examine this issue statewide and offer a comprehensive plan that promises long-term, meaningful property tax relief. Every aspect of the property tax system needs to be scrutinized. Alternatives need to be proposed. The commission, which will be bipartisan, offers a new opportunity to develop a consensus by the end of 2007. The property tax plan benefits every region of the state, and as with state education aid, no region would be hurt disproportionately relative to the level of property taxes. I look forward to working with Governor Spitzer and the assembly to get this done as soon as possible.
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