Sayward Proposes Income-Based Property Tax Cap

In her continuing effort to ease the ever-increasing burden of property taxes in the North Country, Assemblywoman Teresa Sayward (R-Willsboro) is drafting legislation that bases real property taxes on each owner's gross income. The proposal comes at a time when many homeowners are wondering if they can afford to remain in their homes.

"I hear it time and time again - the heavy burden of property taxes is literally driving people from their homes," said Sayward. "It's heartbreaking to see a low- or fixed-income family have to sell their home because the government spends and taxes way too much."

Sayward's proposal puts a cap on the real property tax based on a household's gross income. The income scale is indexed to the Consumer Price Index to account for inflation and changes in the standard of living. The scale follows:

The legislation requires taxpayers to file their income taxes as usual, but with the understanding that any amount paid over the real property tax cap would be returned in the form of a personal income tax credit. The School Tax Relief (STAR) program would not be affected by the bill and it still would be used to reduce a homeowner's school tax burden.

Sayward noted the credit would only be available to New York state residents for their primary homes and would be claimed on their state income tax returns.

Keene Town Supervisor Tom Both, who is chairman of the Essex County Tax Relief Subcommittee, said, "This is a major step forward in providing property tax relief for working Adirondackers and, indeed, for all New Yorkers."

"This bill more truly reflects an individual's ability to pay his or her property tax bill," said Sayward. "Too many people living in homes they worked hard to pay off are finding their homes suddenly unaffordable. The same goes for every homeowner who bought a home expecting to pay a certain amount each month for a mortgage and taxes and who now face outrageous tax payments much higher than they ever expected.

"The problem is a bloated state government in Albany forcing localities to pay for all sorts of programs they have no control over. This cap on real property taxes would immediately help alleviate our state's property tax burden and bring government spending under control."