Albany, NY – September 04, 2008 – (RealEstateRama) — Governor David A. Paterson and Nassau County Executive Thomas R. Suozzi today announced a series of public hearings on property taxes that will be convened across New York State. The six hearings will be led by County Executive Suozzi, Chairman of the Commission on Property Tax Relief, and are designed to gather information on issues that the Commission identified as needing special consideration as it seeks to provide overdue relief to property owners and reduce local costs. In addition to expert testimony, each hearing will include a public forum to invite comments from other interested parties on the specific issues identified by the Commission.
The Commission’s Preliminary Report, release in June, identified several issues that require further study prior to the publication of its Final Report. These issues include: Special Education, School District Mandate Relief and the impact of property taxes on the Big Four Large City Dependent School Districts. The Final Report will be submitted by December 1, 2008.
“The Legislature met in August and passed separate measures to address one of the most critical issues facing our communities: property tax relief. The Assembly and Senate put separate proposals on the table, and now we have to close the gap between the two sides to get the relief that New Yorkers clearly need,” said Governor Paterson. “These hearings will further inform our discussions as we move forward to pass real relief for our overburdened taxpayers. New York’s inordinately high property tax burden is hurting our state.s the economy, forcing young families to leave, and leaving seniors in a position where they have few options but to sell their lifelong homes.”
In June, Governor Paterson introduced legislation to cap the growth of school property taxes. In August, the Senate passed the Governor.s cap legislation. The legislation would cap the growth at a level that allows for reasonable growth of school expenses, while encouraging new construction and protecting capital expenditures already approved by voters. The cap would put voters in control of their school spending. Voters could choose to spend more than the cap by .overriding. the cap at the ballot box; alternatively, if voters decide to spend less, they could enact an .underride. of the cap.
Nassau County Executive Thomas R. Suozzi, Chairman of the Commission, said: “Thanks to Governor Paterson’s leadership, we are on the path toward providing real property tax relief that New Yorkers so desperately need. The Governor recognizes the critical importance of a property tax cap as a blunt instrument necessary to force the hard choices that our taxpayers need and deserve. Without the cap, we will continue to see inordinate property tax increases and any other property tax relief measures will be only short-term band aids.”
New York’s local taxes are the highest in the nation – 79 percent above the national average. Outside of New York City, 62 percent of property taxes are school property taxes, and they have been increasing at twice the rate of inflation and salary growth. Nine of the top ten counties with the highest effective tax rates in the nation are in Upstate New York: Wayne, Niagara, Monroe, Erie, Chautauqua, Onondaga, Cayuga, Chemung and Schenectady Counties. Nassau, Westchester and Rockland Counties are in the nation.s top ten in terms of property tax amounts and property taxes as a percentage of income.
The date, locations and targeted issues of the Commission hearings (subject to change) are:
- September 9 – Long Island
Special Education & School District Mandate Relief - October 2 – Albany
Big Four Large City Dependent School Districts, Special Education & School District Mandate Relief - October 22 – Yonkers
Big Four Large City Dependent School Districts & School District Mandate Relief - October 30 – Buffalo
Big Four Large City Dependent School Districts & School District Mandate Relief - November 5 – Rochester
Big Four Large City Dependent School Districts & School District Mandate Relief - November 12 – Syracuse
Big Four Large City Dependent School Districts & School District Mandate Relief
Unless otherwise announced, Governor Paterson will not be in attendance at the hearings. Chairman Thomas R. Suozzi and the Commission members will preside over the hearings. Specific locations and additional information will be updated on the Commission website at www.cptr.state.ny.us.
Background on the Commission
The Commission on Property Tax Relief was established by Executive Order No. 22 in January, 2008 to investigate and make recommendations regarding:
- Root causes of the high property tax burden, including unfunded mandates and local expenditures;
- Impacts of increased state aid and existing property tax relief programs;
- Effectiveness of property tax caps in other states and, potentially, in New York; and
- The most effective means to impose a limit on school property tax growth without adversely impacting the ability of school districts to provide a quality education to all students.
The Commission released its Preliminary Report in June. The primary recommendation of the Commission was a cap on the growth of school property taxes. The Commission also recommended that, once the cap is enacted, a circuit breaker be put in place, as well as more than 20 recommendations to reduce mandates on school districts and address the root causes of high property taxes.
