On Tuesday, March 5th, top business organizations in New York State called on the New York State Legislature to approve Governor Andrew Cuomo’s Executive Budget proposal that would make the 2% property tax cap permanent. The Long Island Association, Greater Rochester Chamber of Commerce, The Business Council of New York State and The Business Council of Westchester have launched a statewide coalition that will be chaired by its respective Presidents. The group will be expanded with additional business organizations and chambers of commerce throughout the state.
In 2011, New York enacted a cap which limited the growth of school and local property taxes to 2% or the rate of inflation, whichever is less. The cap was renewed in 2015 and expires in 2020, but is legally tied to New York City rent-control laws, which end in June. Thus, action must be taken this session.
“The tax cap is helping homeowners and businesses on Long Island and throughout the state and thus a permanent extension of the property tax cap is the number one item on our state agenda this year. If the cap is not continued and tax rates rise in similar levels before the cap was approved, Long Islanders could be looking at tax increases of more than $4,000 per year which is neither acceptable nor sustainable. We urge the State Legislature to support Governor Cuomo in his efforts to make the property tax cap permanent in this year’s budget.” said Kevin S. Law, President & CEO of the Long Island Association.
“Rochester Chamber fully supports a permanent property tax cap in New York State. Since his first year in office, Governor Cuomo has had success in saving property owners billions of dollars through the tax cap. Families in the Rochester and Finger Lakes region still need relief from some of the highest property taxes per capita in the nation. Those who complain about high taxes in New York State should not refuse to support the tax cap. Rochester Chamber hopes that the Legislature understands this and makes the tax cap permanent,” said Bob Duffy, President and CEO of the Greater Rochester Chamber of Commerce.
“The real property tax cap is one of Governor Cuomo’s signature achievements, and was adopted in 2011 with broad, bipartisan support. Since then, it has saved New York’s homeowners and business owners billions of dollars in reduced property tax burdens. The heavy impact of local real property taxes in New York is well documented. The Business Council, and many of our allied organizations, were early and ardent supporters. The cap, along with limited spending growth at the state level, has produced a new era of governmental fiscal prudence in New York State. We applaud the Governor’s call for a permanent extension, and the Senate’s recent passage of permanent extension legislation. We strongly urge that Albany decision-makers include a permanent extension in the upcoming budget agreement,” said Heather C. Briccetti, Esq., President & CEO of The Business Council of New York State.
“The property tax cap has been a proven winner in Westchester County and the rest of New York State. The savings from the tax cap have allowed employers to invest more dollars into their businesses which has resulted in creating new private sector jobs. In addition, by making the property tax cap permanent, the residents of Westchester County will be provided solid savings across the board, making it easier for employers to attract and retain future employees. Making the tax cap permanent must be included in this year’s State Budget. The Business Council of Westchester stands with Governor Cuomo in his efforts to make the tax cap permanent in New York State,” said Marsha Gordon, President & CEO of The Business Council of Westchester.
The importance of extending the cap permanently cannot be understated. Municipalities, including school districts which are the biggest driver of property taxes, have by and large responded to the cap with prudent budgeting, more efficiency and restrained spending. In essence, our counties, towns, villages and schools have learned to do more with less.