ALBANY—The Senate's actions on dealing with the state's soaring property tax burden are a critical step toward badly-needed reform, according to The Business Council of New York State.
The Senate plans to vote Friday on a bill (S.8736) to establish a school property tax cap for all school districts other than the "Big 5" city school districts. The tax cap would limit the annual growth of school property tax levies to 4 percent or 120 percent of the rate of inflation, whichever is less. This is the same proposal introduced by Governor Paterson in June.
The Business Council supports this property tax cap proposal. Local property taxes in New York State are now 79% above the national average making the total tax burden on New Yorkers the highest in the country. Since 2000, New York has lost 1.5 million people to other states with lower taxes, according to the Census Bureau.
“The Senate should be applauded for introducing bills to cap property taxes, provide mandate relief and cut state spending,” said Kenneth Adams, President & CEO of The Business Council. “This is what fiscal reform efforts are all about. New York desperately needs these reforms. We hope the Assembly will support them, too. Our state government must unite to address New York's growing economic problems.”
Adams also praised the Senate for focusing attention on the need for an annual state spending limit and for mandate relief.
“Mandate relief has always been a priority of The Business Council,” said Adams. “Our lawmakers should ensure that school districts aren't overly burdened by state-imposed rules that just drive up costs, leaving the bill to local residents and businesses.”
Adams also praised the Senate Majority and Governor for rejecting various proposals to increase the state's income tax. “When faced with a budget crisis of this magnitude, the solution is to reduce government spending to make ends meet. With an annual state budget that has exploded to $122 billion, New York does not have a revenue problem, it has a spending problem. Now is the time to get this runaway spending under control and provide tax relief to all New Yorkers.”
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