LI eyes NJ tax cut with envy
BY DAVE MARCUS
Newsday Staff Writer
William Hill, a retired real estate broker in West Babylon, read the news with a mixture of excitement and disbelief yesterday. It was a good development, he felt, but he noted a couple of problems. First, this was legislation in New Jersey, not New York. And the plan seemed suspiciously vague
"I think it's wonderful, but I don't know where communities are going to make up the money," said Hill, 69, president of the West Babylon Taxpayers Association.
Economists and policy analysts across Long Island and New York City shared Hill's very cautious enthusiasm. New Jersey and New York are the states with the highest property taxes and some of the highest school spending in the country, and taxpayers are demanding relief. So when New Jersey sneezes, New York checks its own temperature. And when New Jersey moves to lower property taxes, New York gets inspired.
"That a state in the metro region is moving to cut taxes is certainly encouraging," said Rich Guardino, dean of Hofstra University's Center for Suburban Studies. "Long Islanders are suffering from such an onerous tax burden that relief in any form would be welcome. "
The New Jersey plan offers many homeowners a 20 percent property tax cut. Wealthier homeowners get less, and families earning more than $250,000 don't get a break. The legislation, approved by both Democrats and Republicans, is being studied by Gov. Jon Corzine.
Gov. Eliot Spitzer is preparing to push his own three-year, $6-billion middle-class property tax relief. Building on the complex School Tax Relief program, called STAR, it offers the greatest breaks to the middle class. In Suffolk, for instance, families earning up to $80,000 would get an average break of just more than $760.
"The New York system needs a lot of improvement," said Frank Mauro, head of the left-leaning Fiscal Policy Institute.
He noted that the plans have several key differences. New Jersey covers renters; New York wouldn't. New Jersey is reducing all property taxes; New York wants to reduce school taxes. New Jersey has a 4 percent cap on raising tax levies; New York wouldn't.
Mauro said the cap will hurt poorer districts in the city and on Long Island. Conservatives, though, said the cap is necessary. But they are skeptical of tax relief plans in New Jersey and New York because they say the states are simply switching money from one pot to another. "When you reduce the tax price to the homeowner, it becomes easier for the school district to raise taxes faster to make up for it," said E. J. McMahon, director of the Manhattan Institute's Empire Center for New York State Policy.
In West Babylon, Hill said he is all for any kind of tax relief, especially because he just received an $8,200 property tax bill himself. But having served on the school board for four years, he said politicians are being disingenuous. "Nobody is stopping and saying, 'Look, you have the federal requirements of No Child Left Behind. That's what really puts the burden on the taxpayers. '"
Hill has seen his grown children and their friends scatter to other states, most with lower taxes - though he does have one son in New Jersey. And he says it's getting very late for any kind of property tax relief in New York City and Long Island.
"Any of the people that I've spoken to are interested in going south. They'd just as soon live in nice weather and pay a hell of a lot less in taxes."
PROPERTY TAX PROPOSAL
Highlights of the New Jersey tax cut plan:
Cut property taxes by 20 percent for households earning up to $100,000 and 10 percent for households earning $250,000.
Cap annual property tax increases at 4 percent.
Ask voters to consider merging towns.
Create a comptroller to investigate government spending.
Strip pensions from corrupt public officials.
Create county school superintendents with authority to veto school spending.
Bar newly elected or appointed officials from receiving taxpayer-paid pensions.
Newsday Staff Writer
William Hill, a retired real estate broker in West Babylon, read the news with a mixture of excitement and disbelief yesterday. It was a good development, he felt, but he noted a couple of problems. First, this was legislation in New Jersey, not New York. And the plan seemed suspiciously vague
"I think it's wonderful, but I don't know where communities are going to make up the money," said Hill, 69, president of the West Babylon Taxpayers Association.
Economists and policy analysts across Long Island and New York City shared Hill's very cautious enthusiasm. New Jersey and New York are the states with the highest property taxes and some of the highest school spending in the country, and taxpayers are demanding relief. So when New Jersey sneezes, New York checks its own temperature. And when New Jersey moves to lower property taxes, New York gets inspired.
"That a state in the metro region is moving to cut taxes is certainly encouraging," said Rich Guardino, dean of Hofstra University's Center for Suburban Studies. "Long Islanders are suffering from such an onerous tax burden that relief in any form would be welcome. "
The New Jersey plan offers many homeowners a 20 percent property tax cut. Wealthier homeowners get less, and families earning more than $250,000 don't get a break. The legislation, approved by both Democrats and Republicans, is being studied by Gov. Jon Corzine.
Gov. Eliot Spitzer is preparing to push his own three-year, $6-billion middle-class property tax relief. Building on the complex School Tax Relief program, called STAR, it offers the greatest breaks to the middle class. In Suffolk, for instance, families earning up to $80,000 would get an average break of just more than $760.
"The New York system needs a lot of improvement," said Frank Mauro, head of the left-leaning Fiscal Policy Institute.
He noted that the plans have several key differences. New Jersey covers renters; New York wouldn't. New Jersey is reducing all property taxes; New York wants to reduce school taxes. New Jersey has a 4 percent cap on raising tax levies; New York wouldn't.
Mauro said the cap will hurt poorer districts in the city and on Long Island. Conservatives, though, said the cap is necessary. But they are skeptical of tax relief plans in New Jersey and New York because they say the states are simply switching money from one pot to another. "When you reduce the tax price to the homeowner, it becomes easier for the school district to raise taxes faster to make up for it," said E. J. McMahon, director of the Manhattan Institute's Empire Center for New York State Policy.
In West Babylon, Hill said he is all for any kind of tax relief, especially because he just received an $8,200 property tax bill himself. But having served on the school board for four years, he said politicians are being disingenuous. "Nobody is stopping and saying, 'Look, you have the federal requirements of No Child Left Behind. That's what really puts the burden on the taxpayers. '"
Hill has seen his grown children and their friends scatter to other states, most with lower taxes - though he does have one son in New Jersey. And he says it's getting very late for any kind of property tax relief in New York City and Long Island.
"Any of the people that I've spoken to are interested in going south. They'd just as soon live in nice weather and pay a hell of a lot less in taxes."
PROPERTY TAX PROPOSAL
Highlights of the New Jersey tax cut plan:
Cut property taxes by 20 percent for households earning up to $100,000 and 10 percent for households earning $250,000.
Cap annual property tax increases at 4 percent.
Ask voters to consider merging towns.
Create a comptroller to investigate government spending.
Strip pensions from corrupt public officials.
Create county school superintendents with authority to veto school spending.
Bar newly elected or appointed officials from receiving taxpayer-paid pensions.
Labels: Property Taxes
posted by New Jersey Real Estate at 11:08 AM
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