You don”™t need a “Network”-crazed reporter to encourage New Yorkers to open their windows and scream they”™ve have had enough and aren”™t going to take it anymore.
Escalating property taxes will do the trick just fine.
These are taxes to make residents pull up stakes and head for states with sustainable wages and palatable levies.
State Sen. Tom Morahan addressed cumbersome school taxes and possible solutions to the growing unrest surrounding them over breakfast with Rockland Business Association members at the Rockland Country Club in Sparkill on May 15.
School tax bills are already being adjusted upward since the May 20 school district budget votes, with most in the mid-Hudson expecting a 5 percent to 7 percent increase over last year.
Northern Rockland, which is part of Morhahan”™s district, will benefit from an extra $2.5 million in additional state aid for the North Rockland School District obtained by Morahan and Assemblyman Ken Zebrowski, D-New City, with the stipulation the extra funding be passed on to taxpayers.
Morahan said it should help residential taxpayers see a drop of at least 3 percent in their tax bills; businesses would see at least a 9 percent decrease.
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Morahan has spent much of his career in Albany dealing with escalating school taxes and unhappy constituents and now acts as Senate liaison to Gov. Paterson in lieu of Sen. Joseph Bruno, who is technically the new lieutenant governor. He said Paterson was “a breath of fresh air since coming into office … the air in Albany was poisonous,” with the Legislature and former Governor Spitzer constantly at odds.
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This year, the Legislature is looking for Tom Suozzi and the Commission on Real Property Tax Relief, appointed by the former governor, to come up with real solutions to the crisis. Their report was due out on May 15, but was pushed back because of the school vote, presumably not to sway voters in either direction.
While Morahan believes the state”™s economy is not in the dire shape the media has portrayed it, he does see the benefit in keeping people and businesses in New York. How do to it? “Make it liveable,” said the six-term state senator. One way to do that, he said, is to stop the upward spiral of school taxes, which are eating up approximately 35 percent of the average mid-Hudson resident”™s household income each week.
Morahan said that of the three proposals being touted ”“ capping school taxes; a “circuit breaker”; and unfunded school mandate relief ”“ he believes the “circuit breaker” will be the most effective way to lower property taxes and keep people from leaving New York.
Under the so-called “circuit breaker” proposal, property taxes would be based on household income, not on the appraised value of the property. Residential homes bringing in $120,000 or less a year would be capped at 6 percent; those whose incomes fall between $120,001 and $175,000 would be capped at 7 percent; while those earning above that number would be capped at 8 percent. More than $250,000 a year in income and those families would reportedly pay their tax bill in full as calculated by the current formula of house valuation. How the property tax will affect commercial owners will be explained in the Suozzi report.
One proviso for homeowners: they must be in the same house for at least five years preceding introduction of “circuit breaker” legislation in order to qualify for the cap.
Will the “circuit breaker” option be the path taken? Morahan hopes so. “We need to give property owners and the business community relief, or we”™re going to lose them,” he said. He also advocated consolidation of school districts, saying the money saved by eliminating multiple positions would go a long way to easing the tax burden.
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In a Newsday article published May 18, Suozzi said the state has an “over-reliance on property taxes to fund schools ”“ a real-life issue that”™s causing real suffering for people.” Suozzi referred to school taxes as a statewide, systemic problem requiring a statewide solution.
Morahan said teachers”™ unions are not in favor of capping school district levies, noting, “It”™s a Gordian knot … but how are we going to pay for all of this? That”™s why I favor the ”˜circuit breaker”™ approach.” Morahan also favors eliminating taxes for seniors over 75 years of age who are receiving enhanced STAR benefits.
Suozzi”™s report, due out May 22, was not available at press time for review or official comment. The final recommendations from the tax commission are due by November.
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