Politically Correct Tax Relief: Just In Time For Election Day

By a unanimous vote in the Senate and a 141-1 in the Assembly, Democrats in the State Legislature pretended to be fiscal conservatives for a day -- just in time for the campaign season.

The Associated Press reported that property taxpayers across New York could get almost $1 billion in rebates from the state this fall under an agreement reached by lawmakers, legislative leaders said Monday.

The rebate program was an alternative to previous rebate check program that had been rejected by Governor George Pataki as unconstitutional and vetoed during the State Budget process.

Democrats had wanted a more urban renter-friendly rebate program.  Republicans had aimed for direct property tax relief.

Under the new plan, the elderly would receive a "significantly" larger benefit than New Yorkers younger than retirement age. There would also be an accompanying increase in personal income tax credits for New York City residents, most of whom pay property taxes only indirectly through their rent.

Pay property taxes only indirect through their rent?

What about the apartment building owners who DIRECTLY pay the property taxes, whose profit is held down by rent control and whose economic hit due to taxes was probably not considered by New York City liberals?

The State Senate estimated that the tax relief would come out of the State's $5 billion surplus.

The AP reported that an April report by Comptroller Alan Hevesi's office found that local property taxes in New York rose 42 percent from 2000 to 2005, more than three times the rate of inflation.

Over the past five years, property taxes collected in New York rose to $38 billion from $26 billion. In 2002, the most recent year for which federal data is available, property taxes in the state were $1,406 per person. That was 49 percent above the national average of $945 and the fourth highest state level in the country, Hevesi said.

Democrats and Republicans had the obligatory, "We just cut your taxes.  Aren't we great? Please vote for us" press releases.

Even Pataki got into the act, issuing his own self-congratulatory state for Iowa votes.

The alternative tax relief was expected to prevent Assembly Speaker Sheldon Silver and State Senate Majority Leader Joe Bruno from clubbing Pataki relentlessly in court.

Democratic State chairman Denny Farrell issued his "taxes are a good thing" release to satisfy the fiscal spin by Eliot Spitzer.  Joe Bruno reminded everyone how wonderful is was to spend the State's surplus, just in time for Election Day.

The Associated Press also reported lawmakers warning that they could override any further veto by Pataki --  because it is a new tax credit, not an appropriation in the state budget.

So Pataki basically joined the rebate-happy gang while the going was good.

"No one has fought harder for property tax relief than Governor Pataki and we are pleased that the Legislature has advanced what appears to be a constitutionally sound proposal," Pataki spokesman Michael Marr said. "We look forward to working with the Legislature over the next ten days to see how this proposal would fit within the context of the state's overall financial plan."

According to the AP, the new plan calls for an income tax credit that can be applied to next year's tax bill but the legislation naturally allows New York taxpayers to get an advance on that credit this fall, just before the election in which all 212 seats of the Legislature go to voters.

Comments

[M. Geavers]

Wow, what a bargain it is in NY. I pay over $6,000/year in little ol' Columbus, Ohio. I don't live in a mansion, that's just an average $320k home. So between my wife and I we both have a $3,000/year tax burden for our home. I'd be bouncing off the walls if my taxes were only $1,400/year like they are in NY!!

[lxuzqe txbz]

dvyofb fhjgoqc uxmefng dmwvas hdep xpwoci sxyzq