NOZZOLIO'S PLAN TO CUT PROPERTY TAXES FOR NEW YORK HOMEOWNERS

Hardworking, overburdened taxpayers like you need and deserve property tax relief.

That is why I am fighting to deliver positive results to our seniors and families who are suffering under the crushing burden of property taxes.

We have led the charge to double STAR property tax rebate checks to our homeowners this year. Over $1.3 billion in extra property tax relief went directly back to the people…where it belongs. It was a hard fought victory against the big spenders from New York City who wanted to raise your taxes.

Our success is a good start, but much, much more needs to be done.

Now is the time for bold and innovative action, and I have a plan to attack the property tax problem. The future of New York State is at stake and I am committed to fighting to lowering property taxes for New York’s homeowners.

That is why I am proposing a FOCUSED, TARGETED LEGISLATIVE PLAN TO SIGNIFICANTLY REDUCE PROPERTY TAXES by:

• Providing immediate tax relief by doubling STAR rebate checks to homeowners this year;

• Allowing voters in every school district to vote to phase-out school property taxes. Under my plan, local school district costs would be covered by the State if the local district agreed to keep spending increases in line with the inflation rate;

• Allowing New York State to directly take over more costs for local school districts. School districts would be required to pass along the savings to taxpayers thus significantly lowering property taxes on local homeowners.

• Freezing property tax assessments for seniors beyond the inflation rate;

My plan represents a dramatic step forward to reform our system of property taxes that continues to be an enormous burden to homeowners. Over the course of the next several months, I will be fighting to enact these important proposals and others to cut New York’s overly burdensome local property taxes.

ELIMINATING RESIDENTIAL PROPERTY TAXES

Under the provisions of the bill (S.6119), every school district would be authorized to take a public vote to determine if real property taxes on primary residences (STAR eligible properties only) would be phased out over five years and be replaced with additional State funding. This vote would be held on the third Tuesday in May (school district budget vote day).

The proposition would be placed on the ballot only after the submission of a petition which contained at least 25 percent of the persons who voted in the previous school budget vote (or in the previous general election in the Big Five cities). Districts which enter into this system would be required to reduce residential real property taxes on primary homes by 20 percent annually until such tax was eliminated after five years.

A new state aid formula would be created to fully reimburse districts for this reduction in local tax collections. After five years, the formula would provide districts with an annual school aid cost-of-living increase.

In 2006, primary residential homeowners paid approximately $9.5 billion in school property taxes. If every school district entered the optional system, the 20 percent reduction in residential tax levies would reduce school property taxes by $1.9 billion annually. Eventually, if every school district were under this new system, State funding would fully replace the $9.5 billion paid by homeowners in school taxes. This amount is equal to the $9.5 billion in proposed school aid increases and property tax relief proposed by Governor Spitzer in his Executive Budget this year.

Under the new system, property taxes on other properties (i.e. second homes, apartments and businesses) would continue under the current taxing system. Districts which do not enter into this financing system would continue under the existing property tax structure.


PROPERTY TAX FREEZE FOR SENIOR CITIZENS

Under the Senate bill, school districts would be authorized to freeze the school tax rate for seniors over the age of 65. The Senate’s proposal would provide immediate tax relief to hundreds of thousands of seniors across the State by freezing the real property assessed value of their homes at a fixed rate, while also providing state reimbursement to municipalities for lost real property tax revenue.

The legislation would establish a fixed real property assessed value for persons sixty five years of age or older who own a primary residence. Eligible seniors must have an income of less than $100,000. Individuals would apply annually with their assessor to participate in this program by completing a form developed by the Office of Real Property Services.

Under the terms of the bill, the local assessor would be charged with notifying all local real property owners about the program, and would have to provide a statement on tax bills stating, "Your tax savings this year resulting from the fixed real property assessed value is $__." Assessors would also be responsible for applying to the State for reimbursement for the loss in property tax revenue.

In addition, the Senate’s proposal will enable school districts to freeze property tax rates on senior citizens over 65 who currently qualify for the senior STAR enhancement.

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