Projected savings for New York taxpayers as
a result of the state’s Property Tax Relief program
were released March 2, which provides
1.3 million homeowners significant financial
relief, officials said.
The $1.66 billion program, which also
includes a renters’ credit, is part of the Governor’s
2015 Opportunity Agenda.
“We must ensure economic opportunity in
New York – and that means putting money
back in the pockets of hardworking homeowners
who have been struggling under the
crushing burden of property taxes for far too
long,” said Gov. Andrew Cuomo. “During the
last four years, we capped property taxes, and
then we froze them. Now we are going to cut
them. This program addresses the one of the
most important challenges we face as a state
– making New York affordable – by providing
real, meaningful, significant tax relief that will
make a difference in people’s lives.”
According to the plan, in Warren County
there would be 5,699 beneficiaries of the
benefit, getting an average credit of $858.
The total tax relief figure for that segment is
$6.2 million.
In Washington County there would be 7,203
beneficiaries of the benefit, getting an average
credit of $759. The total tax relief figure for
that segment is $4.3 million.
When fully phased in, 107,700 homeowners
in the Capital Region will receive an average
annual savings of $882, according to the
governor.
The property tax relief is available to
homeowners with incomes below $250,000
whose property taxes exceed 6 percent of
their income. The credit is valued at up to taxes exceed the 6 percent burden threshold,
depending on household income.
The specific amount of the credit within
that 50 percent is determined on a progressive
income scale, so that New Yorkers with the
highest tax burdens and lowest income levels
will receive the greatest amount of relief.
According to Cuomo, the 2011 statewide
property tax cap has been effective at lowering
the tax burden for homeowners across
the state. Through the first three years of the
cap, the average property tax payer will have
saved more than $800 compared to if taxes
had continued to grow at the previous average
rate of growth. Those savings will increase to
$2,100 in local property taxes by 2017 if this
trend continues.
The property tax freeze, which was enacted
last year, provides direct relief to New York
homeowners. Cuomo said over three years, the
program will result in more than $1.5 billion
in direct property tax relief, and the average
New Yorker will receive approximately
$656. The freeze also addresses one of the
primary drivers of the state’s high property
taxes by incentivizing local governments and
school districts to seek efficiencies and share
services.
According to Cuomo, the new Property
Tax Credit strengthens the property tax cap
because outside of New York City, only the
taxes levied by a tax cap-compliant jurisdiction
are included in the credit calculation. All
facets of the program will be phased in over
four years, and only school taxes will apply
in the first year.
More than half of the full benefit will be
phased-in by Tax Year 2016, and 81 percent
will be phased-in by Tax Year 2017.