Assembly Passes Property Tax Circuit Breaker

Legislation provides an immediate tax cap for those who need it most

November 5, 2008

Assemblymember Kevin Cahill (D – Ulster, Dutchess) announced that the Assembly has passed property tax reform legislation (A.11838) that would deliver immediate relief based on household income.

“Today, we acted on a plan that will cap and reduce property taxes for the households that need it most,” said Assemblymember Cahill. “Our bill, by providing immediate and targeted tax relief based on income, is aimed at bringing fairness to working New Yorkers, to retirees on fixed incomes and to young families who are just starting out.”

The proposal, known as a circuit breaker, provides a true tax cap by establishing a maximum percentage of income that a household can be required to pay in property taxes. If the household's property tax bill exceeds this amount, the State would rebate a significant portion of tax payments above the limit. The circuit breaker would target substantial assistance to lower income families with high housing costs and high property taxes, while simultaneously protecting middle income households which have property tax costs that are disproportionate to their earnings. Renters would also be covered under the program.

“Merely slowing the growth of property taxes is not the answer,” said Assemblymember Cahill. “The circuit breaker provides real relief right now to the people who need it most by tying property taxes to their ability to pay, easing the burden on the communities hardest hit by this crisis. I strongly urge the Senate to join us in passing this legislation; with their support we can make a difference immediately.”

Mr. Cahill continued to stress the need for a statewide funding mechanism for education. “Ultimately, we must focus on eliminating this destabilizing tax by requiring the State to assume the basic educational costs for all children in New York,” said Assemblymember Cahill. “That is the only way we can ensure equity in our schools while finally relieving New Yorkers from the use of regressive school property taxes.”

Assemblymember Cahill has been gathering support for his legislation, the Equity in Education Act (A.4746), which calls on the State to provide full funding of what constitutes a basic quality education for all children. The bill mandates the reversal and gradual elimination of school property taxes in favor of a progressive education income surcharge. “Replacing regressive property taxes with a restoration of the tax on millionaires, as the Assembly did today, is a significant step in the direction of a full takeover of school aid as we envision under A.4746, the Equity in Education Act,” Mr. Cahill remarked.

This is the latest movement toward the adoption of Assemblymember Cahill’s approach of dedicating more state funding to education in order to reduce the local burden. Over the past two years, the Legislature has provided an unprecedented $3.6 billion in increases in targeted state aid along with basic funding increases for all schools.

What's New