We Need Comprehensive Property Tax Reform

By Darrel J. Aubertine

If you ask me or just about anyone else across this state if we want a property tax cap, the answer will be the same: Yes. Property tax bills are too high, especially the school tax bill, and it is hurting the ability of many families to make ends meet.

That’s why I am looking forward to discussing the property tax cap later this month in a special session. I do support capping school district property tax levy increases. However, the cap is not enough. An increase is still an increase and it could still drive many seniors on fixed incomes out of their homes. We need to do more than just cap increases to the tax levy; we need to cap what we spend on our tax bills.

I am sponsoring a bill that would address this issue. This comprehensive property tax reform legislation contains the property tax cap, ways to rein in the unfunded state mandates that many school districts say are at the heart of their spending increases, and a circuit breaker to bring immediate relief through income tax credits.

The property tax cap in this legislation is a 4 percent cap on the levy or 120 percent of the increase to the consumer price index, whichever is less. By capping the levy we limit the total amount of property taxes a district can collect, excluding the local cost for capital expenditures, transportation and special education costs. This should limit any increases to our tax bills, though voters could approve a greater increase or even impose stricter limits.

f we limit the revenue a district can raise in taxes, we also have to keep state mandates in check. That’s another component of this legislation because mandate relief is a vital part of any property tax plan. We need to give schools the flexibility necessary to provide for their students. While our standards should be high throughout the state, there are many things that can be done most efficiently with the individual districts making the decisions. To help save money locally, this legislation also encourages shared services along the BOCES model.

The key to all of this is the circuit breaker. Under this proposal individuals and families can get income tax credits for any real property tax payments that exceed between 6 and 8 percent of their income. This concept is critical, because even though the tax cap will control future tax increases, the circuit breaker will bring relief today, especially to anyone on a fixed income and the many families who have endured stagnant wage growth while their property tax bills continued to rise.

We need to address the burden of property taxes and a property tax cap on each school district’s levy is a start. However, it will not necessarily lower taxes, so we need a comprehensive plan such as this one to address multiple ways to provide relief. We also have to make sure that whatever plan we implement does not short change our children. We have spent decades building up our school systems to be the envy of so many across this nation.

Though the issues are serious, I am pleased to see that the governor is calling us back to Albany to address property taxes, the looming difficulties of rising home heating costs and the state’s fiscal crisis. If we work together, we can bring about the change New York needs.

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