|
New York’s Tax & Property Tax Problem
New Yorkers pay some of the highest combined state
and local taxes in the nation. It’s more than a problem – it’s a
crushing financial burden that’s driven away thousands of citizens
and businesses, torn apart families and communities, while forcing
many senior citizens out of the very homes they built and lived in
their entire life.
According to a recent State Comptroller’s report, local property tax
levies in the state grew by 60 percent from 1995 to 2005, more than
twice the rate of inflation. The sheer cost of living in New York is
like an anchor on the Empire State’s economy.
In 1993, Money Magazine called New York State a "Tax Hell" for
having the nation's highest tax rates. Fast forward 15 years and New
York’s tax burden is still the heaviest in the nation, 56 percent
higher than the national average.
The Empire Center has stated likewise, noting that over “1.2 million
New York residents have moved to other states since 2000 – the
biggest such loss experienced by any state.” That statistic
dovetails with a 2007 Mayflower Transit report that nearly 61
percent of its moves in New York were for people leaving the state –
the fifth highest in Mayflower’s national market. United Van Lines
reported similar rates of outbound moves from New York as well.
That’s why the Assembly
Republican Conference has led the fight to provide real tax
relief to New York’s overtaxed homeowners and small businesses by
calling for the “New York State Property Taxpayers Protection Act,”
a comprehensive plan that introduces some new and truly innovative
ideas for real property tax reform.
The New York State Property Taxpayer Protection Act is a step in the
right direction and, when fully implemented, will save property
taxpayers and school districts approximately $16 billion
over five years. Here’s how:
Limiting Property Tax Hikes - Controls property tax increases by
preventing school district tax levies from increasing by more than 4
percent annually or the rate of inflation, whichever is lower.
However, voters have the ability to override this limitation by a
two-thirds majority vote.
Providing School District Mandate Relief - Provides 100 percent
reimbursement to schools for costs incurred from 4th and 8th grade
Math and English tests beginning in the 2008-09 school year, with an
estimated cost savings to school districts of $30 million. This
measure also consolidates school district paperwork to save
administrators time and money.
Stopping Unfunded State Mandates - Requires any state mandate that
is imposed on a locality and costs more than $10,000 annually (or $1
million statewide) to be funded by the state. Also requires the
fiscal impact of legislation to be stated before a bill is voted
upon by the Legislature.
Creating the Office of State Inspector General for
Education - Creates an Office of State
Inspector General for Education to investigate financial abuse,
corruption and misconduct in Schools. This new and independent state
agency will have broad authority to investigate financial abuses in
schools, allegations of corruption or other misconduct within the
district, and refer cases to the appropriate law enforcement
authorities when warranted. The office will also be charged with
issuing recommendations to assist school districts in avoiding such
problems in the future.
Reducing Medicaid Costs on Local Governments - Requires the state to
take over the costs of all optional Medicaid services within 5
years, saving taxpayers $10 billion. This measure will allow
overburdened county governments to return the cost savings in the
form of lower property taxes. According to the New York State
Association of Counties (NYSAC), Medicaid costs are the largest part
of county budgets, and in some cases, the cost of providing Medicaid
services is greater than the amount of property tax revenue
collected.
Enabling Local Governments to Combat Medicaid Fraud - Creates a
grant to reimburse
counties for Medicaid fraud investigation software and compensate
any county that has already purchased software to conduct these
investigations. Counties can immediately determine where there may
be a problem by drilling through reimbursement data, thus giving
them better control of their Medicaid dollars and increasing
accountability to taxpayers.
Encouraging Local Government Consolidation - Currently the state has
over 4,200 local
governments and approximately 9,200 taxing jurisdictions. The goal
is to reduce local
governments’ reliance on property taxes by encouraging consolidation
of services where possible. This bill provides $30 million in
Metro-STAR grants to research the efficacy of
mergers or consolidations of local governments to reduce the tax
burden on homeowners.
Offering Local Option Insurance Pooling - The consolidation of
health insurance plans reduces the cost of health care. The higher
the number of participants, the more stable the average cost per
user becomes since participants who incur high health care costs are
more easily absorbed. Governmental employees’ health care insurance
premiums are frequently contributed to by the employer as a benefit.
By reducing the total premium for health insurance for these
workers, the contribution from the government is decreased,
resulting in taxpayer savings.
Download talking points for the New York State
Property Taxpayers Act
See how much you’ll save under the New York State Taxpayers
Protection Act
Post your feedback and comments on the New York State Property
Taxpayers Act
Download a copy of the New York State Property Taxpayers Act
|
|
|
