New York STOP TAXING OUR PROPERTY Plan Would Empower School Districts to Completely Eliminate School Property Taxes; Allow Locals to Put a Tax Cap in Place • JOIN THE FIGHT: Click here to sign my online petition • BIPARTISAN SUPPORT: How the Senate voted on this bill in 2007 The New York State Senate today passed major property tax relief legislation (S8522) that would result in the complete elimination of school property taxes in school districts that vote to phase them out over five years, with revenue replaced by additional State funding. The plan, known as New York STOP TAXING OUR PROPERTY (NY-STOP), would reduce school property taxes by 20 percent a year until they are eliminated after five years. "The Senate Majority has fought for increased direct property tax rebates and historic increases in school aid, yet property taxes keep rising," Senator Joseph L. Bruno said. "New York Stop Taxing Our Property is a real plan that actually reduces property taxes by 20 percent per year while ensuring that students still have the resources they need to succeed. "Our property tax reform package will put more money back into the pockets of hardworking homeowners, help thousands of seniors remain in their homes, and encourage young New Yorkers to stay, work and raise a family right here in New York State," Senator Bruno said. "We encourage the Assembly to bring this bill to the floor so we can get a result on this issue before the session ends next week." The STOP TAXING OUR PROPERTY plan would: give school district voters the authority to eliminate residential property taxes over five years, with revenue replaced by additional State funding; and allow localities the option to put a local tax cap in place. Most importantly, STOP TAXING OUR PROPERTY would reduce taxes 20 percent a year. Meanwhile, as part of STOP TAXING OUR PROPERTY, local school districts would also have the option to authorize a local property tax cap if district residents voted to do so through a petition and voting process, allowing localities to have the flexibility they need to address unique district-by-district challenges.The plan would be paid for through existing revenue in the State Budget, just as the State satisfied the Campaign for Fiscal Equity (CFE) lawsuit and provided additional funding for New York and other high-needs school districts throughout the State. In addition, passage of NY-STOP would signal that the Legislature and Governor are committed to providing property tax relief to homeowners who are challenged by high property taxes, high gas prices, and the high costs of basic grocery staples like bread, milk and eggs.ELIMINATING RESIDENTIAL PROPERTY TAXESUnder the provisions of NY-STOP, 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 those 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.If all school districts opted to eliminate residential property taxes, the total annual cost would be approximately $2.34 billion or $11.7 billion over five years.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. "There's no question that the terrible burden of real property taxes is a tremendous concern of homeowners and small business owners throughout my Senate district. I'm pleased that the Senate has taken the lead in developing a workable solution to this problem," said Senator Hugh Farley (R,C-Schenectady)."My constituents are telling me they want tax cuts, not tax increases. Tax caps might slow their rate of drowning, but they are still drowning. Rather than guarantee a 4% tax increase perpetually, this plan actually cuts your tax bill until it is gone. That’s the kind of substantial relief taxpayers deserve and demand," said Senator Carl L. Marcellino (R-Syosset)."Property taxes are continuing to grow and are becoming unbearable for our property taxpayers," said Senator John A. DeFrancisco (R-I-C-WF, Syracuse). "We need a long-term solution to this problem, not a temporary fix. The NY-STOP plan would allow us to gradually eliminate residential property taxes, while ensuring that through State aid our schools are provided with the resources they need.""We’re setting the legislative future for New York government and offering a main course of property tax relief," said Senator George H.Winner, Jr. (R,C-Elmira). "It's a priority for local property taxpayers, for future job creation, for the quality of our communities and to keep alive the hope for sustained economic growth in upstate New York.""Without a doubt, high property taxes are the number one problem facing New York State today- creating a chokehold on the Upstate economy and driving residents out of the State. We must reverse the destructive cycle of continually soaring property taxes and enact comprehensive property tax reform that will provide relief to homeowners now," said Senator Michael Nozzolio (R,C-Fayette)."The issue of how to finance education in New York State is critical to the future well-being of every New Yorker. The property tax as currently constituted is a tax that will break the middle class, and if not changed now will force our residents and our businesses to flee for other jurisdictions. The Senate Majority’s plan is a bold response aimed at dealing immediately with this crisis," said Senator Vincent Leibell (R,C,I-Patterson)."As Chairman of the Senate Committee on Economic Development, I am keenly aware of the pressure that property taxes put on New York's businesses. It is vitally important to our state's economy that we do everything possible to control property taxes in order to help businesses stay and grow jobs in New York. Those jobs will be held by the homeowners who deserve more than anything property tax relief. Controlling property taxes in New York State will help everyone," said Senator James Alesi (R,C-Perinton).In addition to NY-STOP, the Senate was set to act on two bills that would provide additional relief to taxpayers, including mandate relief legislation to reduce costs to school districts, municipalities and local taxpayers, and a measure to provide enhanced financial incentives for school districts which merge or share a superintendent. The NY-STOP bill was sent to the Assembly.
New York STOP TAXING OUR PROPERTY Plan Would Empower School Districts to Completely Eliminate School Property Taxes; Allow Locals to Put a Tax Cap in Place
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