In Capital Region: More Than 107,000 Homeowners Will Receive Average $882 in Annual Direct Tax Relief
Governor Andrew M. Cuomo today detailed projected savings for New York taxpayers as a result of the Property Tax Relief program, which provides 1.3 million homeowners significant financial relief. The $1.66 billion program, which also includes a renters' credit, is part of the Governor's 2015 Opportunity Agenda.
“We must ensure economic opportunity in New York – and that means putting money back in the pockets of hardworking homeowners who have been struggling under the crushing burden of property taxes for far too long,” said Governor Andrew Cuomo. "During the last four years, we capped property taxes, and then we froze them. Now we are going to cut them. This program addresses the one of the most important challenges we face as a state – making New York affordable – by providing real, meaningful, significant tax relief that will make a difference in people’s lives."
When fully phased in, 107,700 homeowners in the Capital Region will receive an average annual savings of $882.
The chart below is a breakdown of relief by county showing the number of homeowners expected to benefit, as well as the total value of the tax relief and the average credit.
Total Tax Relief
The property tax relief is available to homeowners with incomes below $250,000 whose property taxes exceed 6 percent of their income. The credit is valued at up to 50 percent of the amount by which property taxes exceed the 6 percent burden threshold, depending on household income. The specific amount of the credit within that 50 percent is determined on a progressive income scale, so that New Yorkers with the highest tax burdens and lowest income levels will receive the greatest amount of relief.
How Does Property Tax Relief Work for New Yorkers?
The 2011 statewide property tax cap has been extraordinarily effective at lowering the tax burden for homeowners across the state. Through the first three years of the cap, the average property tax payer will have saved more than $800 compared to if taxes had continued to grow at the previous average rate of growth. Those savings will increase to $2,100 in local property taxes by 2017 if this trend continues.
The property tax freeze, which was enacted last year, provides direct relief to New York homeowners. Over three years, the program will result in more than $1.5 billion in direct property tax relief, and the average New Yorker will receive approximately $656. The freeze also addresses one of the primary drivers of the State’s high property taxes by incentivizing local governments and school districts to seek efficiencies and share services.
The new Property Tax Credit strengthens the property tax cap because outside of New York City, only the taxes levied by a tax cap-compliant jurisdiction are included in the credit calculation. All facets of the program will be phased in over four years, and only school taxes will apply in the first year. More than half of the full benefit will be phased-in by Tax Year 2016, and 81 percent will be phased-in by Tax Year 2017.
The Governor is calling on New Yorkers to get involved and help make his Opportunity Agenda, which includes the Property Tax Relief proposal, a reality by visiting www.NYGetInvolved.com.
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