Property tax relief on the way?

Cuomo unveils plan to give homeowners, renters money back

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Homeowners and renters across New York are used to hearing about rising taxes, especially on Long Island. That wasn’t the case last week, though, when Gov. Andrew Cuomo unveiled a plan to provide property tax relief for people who make up to $250,000.

On Jan. 14 at Hofstra University, Cuomo went through the first piece of his “2015 Opportunity Agenda” — to establish a $1.66 billion property tax credit program that gives relief to homeowners and renters.

To be eligible for the program, homeowners who make less than $250,000 and must pay more than six percent of their annual income in property taxes. Cuomo’s office released a scale for which tax relief is calculated — the lower a taxpayer’s income, the more relief they’re eligible for.

For each dollar a person pays in property taxes that is more than six percent of their income, they would get a percentage of it back. For those who make less than $75,000 annually, they would get a 50 percent tax credit for anything more than six percent ($2,000 maximum); between 40 and 50 percent for those make between $75,000 and $150,000 ($1,500 to $2,000 maximum); and 15 to 40 percent for people who make between $150,000 and $250,000 ($1,000 to $1,500 maximum).

Under the plan, if a person makes $60,000 a year, but pays $4,500 (7.5 percent) in property taxes, they would receive a credit of $450. A person who makes $100,000 and pays $10,000 (10 percent) in property taxes would collect between $1,600 and $2,000. And if a taxpayer earns $200,000 and pays $16,000 (8 percent) in property taxes, they would earn a credit of between $600 and $1,500.

According to Cuomo’s office, when fully phased-in, more than 1.3 million state taxpayers will receive an average credit of $950. In Nassau County, more than 200,000 residents would be eligible and save an average of $1,208, Cuomo said.

Cuomo’s proposal also includes a renters' credit, based on the estimate that 13.75 percent of annual gross rent is attributed to property taxes. The credit is available to taxpayers at incomes up to $150,000 who pay more than six percent of their income in property taxes.

However, if a taxpayer’s municipality exceeds its tax cap, the tax credit wouldn’t apply.

The new credits will be included in the Governor’s 2015-16 Executive Budget, which was introduced on Wednesday, after the Herald went to print.

Sen. Dean Skelos (R-Rockville Centre), the Senate Majority leader, said he looks forward to discussing the specifics of Cuomo’s proposal when the governor unveils his entire executive budget. “It is essential that any enacted property tax relief plan ensures all middle-income families in every region of the state receive property tax relief,” he said.