Assemblywoman Nancy Calhoun (R,C-Blooming Grove) today announced that she is sponsoring a bill that aims to reduce property taxes on already overburdened homeowners and businesses in New York state. Assembly bill A.1445-A would provide property tax relief by relieving school districts of unfunded mandates; providing personal income tax credits to middle class homeowners whose property taxes are high; mandating that school district employees would maintain the full health insurance options they have now, but pay the same health insurance percentages (10% for individual, additional 25% for family) as all other state workers do now, and also relieve school districts of increasing pension costs with state contributions to offset high increases caused by economic decline.
“As chairwoman of the Assembly Republican Task Force on Real Property Tax Reform, I have been working many years on legislation that would provide property tax relief,” said Calhoun. “I am very proud of this bill because it implements many of the recommendations that were contained in a report issued earlier this year by the Commission on Property Tax Relief.”
Calhoun explained that reducing New York’s tremendously high tax burden is the number one issue facing families throughout the state. The sheer cost of living in New York has forced many residents and businesses to leave, thus slowing the economic engine of the Empire State. According to the Empire Center, over “1.2 million New York residents have moved to other states since 2000 – the biggest such loss experienced by any state.”
“It’s clear that high taxes are killing jobs and forcing people to leave the state,” Calhoun said. “Young people are finding it difficult to purchase homes, seniors are struggling to maintain their homes and businesses are facing immense challenges to create and retain jobs. We need to reverse this trend and reinvigorate New York’s economy by providing incentives for people and businesses to move and stay here.”
A key ingredient of the bill is a proposal to prevent school district tax levies from increasing by more than 4% each year or the rate of inflation, whichever is less. The property tax cap is supported by the Property Tax Relief Commission and also has statewide support. The Commission recently finalized a report that stated that the best way to reduce property taxes is with a property tax cap and then a circuit breaker. This support comes at a time when property taxes continue to increase.
In 2006, New York was ranked fourth in the nation when comparing the average property taxes paid. Additionally, there were three New York counties in the top ten that paid the highest average property taxes nationwide.
Calhoun’s bill also provides schools with relief from unfunded mandates. Under this bill, any state mandate by the Board of Elections, Legislature or governor that costs more than $10,000 a year (or has a statewide additional cost of $1 million) must be funded by the state.
Many school districts have experienced increased costs as a result of the Board of Regents requiring fourth and eighth grade testing of Math and English. This requirement places an unfunded mandate on school districts across the state. This bill would provide 100% reimbursement to school districts statewide for costs incurred as a result of fourth and eighth grade Math and English tests. This provision is a good-faith effort on behalf of the New York State Legislature to eliminate unfunded mandates placed on school districts as a result of changes to state law, policy or regulation.
“State mandated programs, unlike locally rendered decisions, place local taxpayers and officials in the difficult position of paying for services over which they have little control,” stated Calhoun. “By forcing these mandates to be funded, we can prevent school districts from being blindsided by the state.”
Finally, the measure would establish a limit on the maximum real property tax paid for New Yorkers who have a household adjusted gross income of $250,000 or less. Coupled with a property tax cap, a circuit breaker and various other mandate relief proposals, this legislation serves as a viable alternative response to the serious problem of high property taxes.
“A reprieve from taxes is exactly what is needed during this tough fiscal crisis in New York state. We must be smart with what we spend, and smart with how we tax. I believe this legislation is exactly what is needed for our hardworking homeowners and businesses,” concluded Calhoun.
