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:

New York Eviction Moratorium Quietly Expires

The statewide eviction and foreclosure moratorium — which was extended twice over its nearly two-year lifespan during the COVID-19 pandemic — quietly expired last Saturday, without much fanfare. “In short, it was time for the moratorium to end,” State Assemblyman Fred W. Thiele Jr. said. “I supported letting it expire.” The stopgap measure dates back to March 2020, when New York was the first national epicenter of the pandemic, prompting then-Governor Andrew Cuomo to announce a 90-day moratorium on evictions for residential and commercial tenants — meaning no one could be evicted in New York State until at least June ... 18 Jan 2022 by Michelle Trauring

Renovated Whaler’s Home Sells For $11 Million In Amagansett

History meets luxury at 66 Old Montauk Highway in Amagansett — a seven-bedroom, six-bathroom, 19th ... 17 Jan 2022 by Staff Writer

Manaforts Move Out: Bridgehampton Estate Fetches Over $10 Million

The deed transfer for 174 Jobs Lane in Bridgehampton between two LLCs tells one story ... by Staff Writer

Oceanfront East Hampton Estate Sells For $55 Million In Less Than A Month

In less than 30 days, an oceanfront estate on Further Lane in East Hampton went ... 11 Jan 2022 by Staff Writer

Wainscott Estate, Made Famous By HBO’s ‘Succession,’ Snares $45 Million

Fans of HBO’s “Succession” will instantly recognize what is poised to be one of the ... by Staff Writer

Thiele, Gaughran Back Legislation To Improve Real Property Tax Relief Credit

State Assemblyman Fred W. Thiele Jr. and State Senator James Gaughran have announced legislation to improve and expand the Real Property Tax Relief Credit — a policy enacted last year to help homeowners during the COVID-19 pandemic. The proposed changes would increase the Real Property Tax Relief Credit’s maximum qualifying income eligibility from $250,000 to $350,000, as well as bump up the amount of credit — raising the maximum level from $350 to $1,500. Currently set to expire in 2025, the bill would also make the credit permanent. “Reports show that New Yorkers continue to flee to other more affordable ... 10 Jan 2022 by Staff Writer

Douglas Elliman Hits New York Stock Exchange As Independent Company

Douglas Elliman’s got a brand new bag — or, rather, a new ticker symbol. Last month, the company completed its spin-off from Vector Group Ltd. and, on December 30, began trading on the New York Stock Exchange under the symbol “DOUG” as an independent company. It has also been added to the S&P SmallCap 600. “Today marks an exciting new chapter for Douglas Elliman,” Howard M. Lorber, chairman and chief executive officer of Douglas Elliman, said in a statement. “As a standalone company, Douglas Elliman will leverage its differentiated approach, portfolio of innovative technology services and a best-in-class team of ... by Staff Writer

Sagaponack Estate, Featuring Rare Stones, Closes For $17 Million

What does it cost to buy a home built with some of the rarest stone ... 21 Dec 2021 by Staff Writer

Rodney Dangerfield’s Daughter Sells Bridgehampton Estate

An 8,000-square-foot, shingle-style estate in Bridgehampton, previously owned by Melanie Roy-Friedman — who is Rodney ... by Staff Writer

Community Preservation Fund Raises $177.37 Million In First 10 Months Of 2021

The Peconic Bay Community Preservation Fund raked in $177.37 million in the first 10 months ... 13 Dec 2021 by Staff Writer

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
Send this to a friend