Property Tax Cap Now FAQs

Why is a cap necessary?

High property taxes are draining businesses and homeowners. As the economy slowly begins to stabilize, it’s crucial that lawmakers pass a property tax cap to bring immediate relief totaxpayers, encourage private sector job growth and prevent  further population loss in upstate New York.

How do New York’s property taxes rank in comparison to other states?

New York’s local taxes — as a percentage of personal income — are the highest in the nation, an alarming 79 percent above the national average. Between 1998 and 2008, local property tax levies in our state grew by 73 percent, more than twice the rate of inflation during that 10-year period.

Will a “circuit breaker” have the same effect as a hard tax cap?

Absolutely not — businesses will not receive any relief under a circuit breaker, which ties property taxes to income. Currently, although businesses account for only 25 percent of total real estate values, they pay 40 percent of property taxes.

A circuit breaker simply moves the tax burden from one group to another.

What’s being done at the state level to provide a tax cap?

The Senate passed Governor Cuomo‘s program bill, which would limit school districts’ tax levies (outside of New York City) to 2 percent or the rate of inflation, whichever is less. The legislation still awaits action in the Assembly (S.2706).

Is the cap the answer to skyrocketing property taxes?

The cap is the first step to control property taxes — we also need to pass mandate relief for localities.

Has a cap worked anywhere else?

Yes. Massachusetts implemented a cap in 1980, at a time when the state was dubbed “Taxachusetts” for its high property taxes. Now, it ranks toward the middle of the pack.

Won’t a cap hurt our schools?

No. New York spends more per pupil than any other state, yet ranks 40th in terms of graduation rates. In 2007, students in Massachusetts outscored every other state in the country on three of the four National Assessment of Educational Progress exams and tied for first on the fourth, despite the state’s drastic reduction in property taxes.

What can I do to help get the tax cap enacted into law?

The legislation awaits action in the Assembly. Contact your Assembly representative and tell them that we need property tax relief NOW.