Property Tax Cap

New York State Governor Andrew Cuomo proposed legislation to create a cap on property taxes throughout the State in an effort to reduce the burden on local businesses and residents, as one of his first acts in office.  The New York State Senate passed this legislation in late January; however it has not been acted upon by the Assembly as of yet.

The bill passed by the Senate would allow property taxes to rise at a rate of no more than 2% each year, or the inflation rate - whichever is lowest.  A 2008 state commission found that New York State property taxes were almost 80% above the national average.  The property tax cap proposed by the Governor would aim to prevent the state's rates from skyrocketing even further above the average.

Businesses spend over $19 million in property taxes each year.  By reducing an owner's tax burden, it allow for more funds to be re-invested into local businesses to grow the tax base.  Growing the tax base ultimately leads to more revenue collected by local governments and schools, improving their bottom line as well.

While the Property Tax Cap was not included in the 2011-2012 Budget, it is anticipated that the issue will be debated during the remainder of the legislative session.  Assembly Speaker Sheldon Silver has stated that rent control is his number one priority, however the property tax cap legislation could be used as a bargaining tool for the Senate and Governor to ensure both pieces of legislation are covered this year.