The Democratic-controlled state Assembly today released its plan to cap the growth of property taxes at 2 percent a year.
It has lot of loopholes and in now way it's going to control the rampant increase in property taxes. For example, Pension payments that grow more than 2 percent from the previous year would be exempt from the cap. How that helps? As we all know from this years budget all the money in tax levy is going towards pensions and benefits. These costs are rising year or year at 10% or more and will go exponential in near future.They are the main reason we are paying more in taxes each and losing teachers and services along the way.
State Senate signed off on Gov. Andrew Cuomo's (D-N.Y.) property tax cap proposal back in January, but it has become bogged down in the Assembly.
The new bill presented today by Assembly Speaker Sheldon Silver would add some exceptions for costs to be excluded from the cap, but its basic elements are similar to the legislation passed by the Senate.
The Assembly measure would exempt pension payments over 2 percent from the previous year and require 60 percent of voters to override the capped school tax levy. Also, the bill would allow for added costs if the tax base grows with more residents or businesses.
List of loopholes in NY tax cap proposal
- The bill would limit increases in property taxes to 2 percent a year or the rate of inflation, whichever is lower. Pension payments that grow more than 2 percent from the previous year would be exempt from the cap.
- A so-called carry-over provision would allow school districts and local governments to go above the cap only if they were below it the year before.
- School districts and governments would also be allowed to pierce the cap if there was growth in jobs and businesses in a community requiring more services.