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 50 percent of the amount by which property 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 phasedin
by Tax Year 2016, and 81 percent will be phased-in
by Tax Year 2017.