Cap Property Tax Increases in New York
Issue Overview: New Yorkers pay the highest property taxes in the nation. Local property taxes increased 42 percent from 2000 to 2005 -- more than three times the rate of inflation. Property taxes are by far the largest and fastest growing component of most New Yorkers' tax bills. State school aid for the 2007-08 school year increased $1.76 billion or 9.8 percent, for a total of $19.65 billion over the 2006-07 level, the highest school aid increase ever. Yet, despite this increase, property taxes continue to increase and are 79 percent above the national average. Property taxes are the single largest tax on business in New York.
Some believe the most direct way to bring down New York's excessive property tax burden is to cap the annual rate of growth of property taxes. One proposal would cap school tax-levy increases at 4 percent a year or the rate of inflation, whichever is less. The cap would make allowances for new construction, and local voters could override this limit for specific purposes. The proposal also includes much-needed mandate relief to help school districts cut costs.
NFIB Position: We support a cap on the growth of property taxes. In our most recent NFIB State Member Ballot, 83 percent of members who responded backed imposing such a cap.
Issue Status: Gov. Paterson has accepted the report of the New York State Property Tax Commission, which recommended a cap on property tax increases, and has proposed legislation to impose a cap of 4 percent or 120 percent of the consumer price index, whichever is lower. We are pressing the Legislature to act on this proposal.
