Assembly To Take Action On New Property Tax Relief Bill

Silver: 'Assembly To Break Logjam Caused By Governor Pataki's Gamesmanship'

Speaker Sheldon Silver announced that the Assembly is expected to consider legislation today that will ease the burden of property taxes in New York State. Unlike the property tax relief proposal vetoed by the governor earlier this year, the new bill (A.11804/S.8174) creates a personal income tax credit based on property taxes paid.

"New Yorkers throughout the state are crying out for property tax relief," said Silver. "And despite Governor Pataki's repeated attempts to deny millions of New Yorkers this much-needed assistance, the Assembly is absolutely committed to helping working families and senior citizens by allowing them to claim a personal income tax credit as an alternative to the property tax rebate that has been challenged by the governor."

In addition to seeking relief for property owners, Silver pointed to other tax relief for working families achieved in this year, including the child tax credit, capping the gasoline tax and the elimination of both the sales tax on clothing and the marriage penalty tax.

"Giving tax relief to the hardworking homeowners, renters and taxpayers of this state is one of the most important things we can do in the Legislature this year," said Assemblyman Herman D. Farrell Jr., sponsor of the bill. "The Assembly Majority is leading the way to relieving the crushing tax burden that has become an unfortunate distinction for New York State. From capping the gasoline sales tax, to passing this property tax relief bill, we're making progress reversing that trend."

Under the bill, homeowners outside of New York City would receive an average tax credit of $250, while seniors outside of New York City receive an average credit of $365. In addition to homeowner relief, residents of New York City, where there are far more renters than the rest of the state, would benefit from an increase in their personal income tax credit. A married couple's credit would grow from $125 to $230, while the credit for single New York City residents would increase from $62.50 to $115.

The original property tax relief measure, contained in the bipartisan legislative budget agreement and vetoed by the governor, would have provided property tax rebate checks to New York homeowners. "While this new plan also seeks to return money directly back to homeowners and working families where it is needed most, the construct is entirely different," noted Silver.

Under the new plan, starting in September and continuing through November 15, 2006 homeowners can apply to receive an advance credit. All homeowners in New York State will be able to apply through an established process to determine eligibility for an advanced credit. Homeowners can also wait to apply for the credit when they file their taxes next year.