Governor Proposes Income-Based Property Tax Credit - 27 East

Real Estate News

Real Estate News / 1412263

Governor Proposes Income-Based Property Tax Credit

author on Jan 19, 2015

Homeowners and renters of relatively limited means could be in for some property tax relief, thanks to a $1.66 billion tax credit program announced by Governor Andrew Cuomo this week as part of his proposed budget package.

In Suffolk County, the program is expected to save 125,167 homeowners in Suffolk County an average of $1,148 in the final year of a four-year phase-in. Renters who qualify would save as much as $750.

Households with incomes below $250,000 would be eligible for a tax credit based on the amount by which their property taxes exceed 6 percent of their income. The lower their income and the greater the degree to which their taxes exceed the percentage threshold, the larger the credit would be—up to a cap of $2,000.

A family with a household income of slightly less than $75,000, for instance, who pay $6,000 in property taxes—$1,500 more than the $4,500 that would represent 6 percent of their income—could receive a credit of almost $750, 50 percent of the amount exceeding the percentage threshold. Those earning from $75,000 to $150,000 would be eligible for 40 to 50 percent of the amount above the 6-percent threshold, and those earning $150,000 to $250,000 would be eligible for 15 to 40 percent of that amount in tax credits.

State Assemblyman Fred W. Thiele Jr., who supports the governor’s proposal, said it was his understanding that the credit would come in the form of an income tax reduction, much like earned income credit.

Renters with incomes up to $150,000 would be credited when the amount they pay in rent that can be attributed to property taxes, which is expected to be 13.75 percent, exceeds 6 percent of their income. The credit would be capped at $750.

Because those living in school districts with higher property taxes and lower incomes would benefit most from the program, Mr. Thiele said western Suffolk taxpayers would most likely see higher benefits than those in eastern Suffolk—although taxpayers in districts like Hampton Bays, Eastport and Riverhead could see relatively high reductions.

Suffolk County would see the highest average level of individual relief statewide, however, according to a press release from the governor’s office.

“Over the last few decades, property taxes in New York have risen to historic levels,” the release says. “The question for families across the Empire State was no longer whether they could afford to buy a home—once the symbol of attaining the American dream—but whether they could afford to pay the property taxes on that home.”

There is one catch, and it echoes the governor’s push to squeeze school tax hikes through both the 2-percent tax levy cap and the property tax freeze enacted last year, which rewarded taxpayers in cap-compliant school districts with checks of, on average $656, according to the governor’s office. To be eligible for the proposed new tax credit program, homeowners and renters must live in school districts that do not pierce the school tax levy cap.

If approved, Mr. Thiele said he thought the tax credit program could go into effect for the next school year, 2015-16.

You May Also Like:

Calvin Klein Sells Southampton Estate For $84 Million

It appears that Calvin Klein quietly sold his Southampton Village oceanfront estate back in March ... 5 Jun 2020 by Brendan J. OReilly

Nearly $6 Million Sale Is Record For West Hampton Dunes Oceanside Home

A newly built oceanfront home on Dune Road in the Village of West Hampton Beach ... 2 Jun 2020 by Staff Writer

Beechwood Unveils The Latch Condominiums For Preconstruction Sales

Preconstruction sales began this week for The Latch Southampton Village, a 20-unit condominium community on ... by Brendan J. OReilly

Rental Scams Prey On People Seeking Housing

In recent months, a variety of rental scams have targeted people looking for housing on the East End. While many renters were able to avoid the schemes after they wised up to what was happening, others have fallen victim. Scammers, who could be from out of state or even in another country, often use online advertisements that make it difficult for authorities to track them down. While police reports are somewhat frequent, arrests related to such scams are rare. As the public and the police catch on to the latest scams, grifters change their tactics. The best defense for renters ... by Brendan J. OReilly

Thiele Votes Against ‘Too Broad’ Eviction Legislation

New York State Assemblyman Fred W. Thiele Jr. of Sag Harbor bucked his caucus last week when he voted against legislation to prevent evictions during the COVID-19 crisis. A member of the Independence Party who caucuses with the Democrats, Mr. Thiele said in a statement Monday that the legislation, which ultimately passed the Assembly, was too broad. “As was the case with the 2019 Housing Act, this legislation fails to make a distinction between primary residences and seasonal rentals,” Mr. Thiele said. “The vagueness in these laws could lead to the possibility that a court will interpret these provisions as ... 1 Jun 2020 by Brendan J. OReilly

South Fork Landlords Concerned Eviction Moratorium Is Being Abused

Governor Andrew Cuomo’s moratorium on evictions during the COVID-19 crisis is overlapping with the first summer rental season that landlords are prohibited from collecting rent for a tenant’s entire stay upfront — though whether landlords really cannot get paid in advance is still a matter of debate. Either way, the convergence of the two issues had raised concerns among landlords and brokers alike that laws and executive orders meant to protect renters who are down on their luck can be abused by squatters who have the ability to pay but choose not to. The worry brought about by the state’s ... 26 May 2020 by Brendan J. OReilly

Dune Road Estate In Quogue Sells For Nearly $10 Million

A 2-acre oceanfront estate in the Village of Quogue recently changed hands for $9.85 million, ... by Brendan J. OReilly

Wainscott Residence With Views Of Pond And Ocean Sells For $10.5 Million

A 1.2-acre Wainscott property with a 7,300-square-foot residence that overlooks Wainscott Pond and has ocean views has sold for $10.5 million, according to The Real Estate Report Inc. Built in 1992, the residence at 60 Beach Lane has eight bedrooms and 7.5 bathrooms. The two above-grade levels have a formal dining room, a library, an open kitchen, a dining room and a den. Both the living room and den have double-height ceilings. The finished basement offers a gym, wine cellar and laundry. Also among the amenities are a heated gunite pool and spa. Michael Schultz had the listing for Corcoran. ... 25 May 2020 by Staff Writer

Berkshire Hathaway HomeServices To Open Corporate Office On South Fork

Berkshire Hathaway HomeServices is opening a corporate office in Noyac on June 1, the first ... 23 May 2020 by Staff Writer

Three-Building Modern Estate In Southampton VIllage Sells For $18 Million

A modern estate in Southampton Village that was completed last year recently sold for $18 million, just $1 million shy of its asking price, according to The Real Estate Report Inc. Three separate structures — a main house, a pool house and a guest house — on 1.9 acres total 9,100 square feet. The main house has five bedrooms and 5.5 bathrooms. A double-height living room with a fireplace, a dining area, an eat-in chef’s kitchen and a den are all light-filled through the wall of glass that overlook the backyard. On the lower level, there’s a bar/lounge area, a ... by Staff Writer
logo

Welcome to our new website!

To see what’s new, click “Start the Tour” to take a tour.

We welcome your feedback. Please click the
“contact/advertise” link in the menu bar to email us.

Start the Tour
Landscape view not supported