Good Idea or Bad Idea? A Cap on NYC Tax Increases
Senator Andrew Lanza
March 24, 2015 — Regardless of where you stand on the political spectrum, most (if not all) New Yorkers can agree on one thing: the cost of living here is too high. And late last week, the Republican-led Senate did something about it. According to Capital, it approved legislation to set a two percent cap on property tax increases in the five boroughs, similar to the statewide two percent cap that exempts New York City. The bill was sponsored by Republican Senator Andrew Lanza of Staten Island, who said, "We're driving families away [at] unprecedented rates [with] unbridled increases in the property tax rate, especially when you add that together with the New York City income tax and the taxes that are imposed on just about everything that moves, breathes or exists in the city of New York."
Capital reported that "Lanza, along with Senator Diane Savino, a Democrat who represents part of Staten Island, said some of their constituents have had their homes appraised at higher values, resulting in further property tax increases." A cap may sound like a good thing, especially when it spells relief for those who feel like they're bleeding money. Some suggest, however, that it may not be the optimal route to take: "Members of the mainline Democratic conference, many of whom represent districts in New York City, were cool to the idea, arguing the cap would siphon away money from schools and other public services." Mayor Bill de Blasio's office release a memorandum in opposition to the measure, arguing that "the city would lose billions of dollars in necessary tax revenue every year. Revenue that would be impossible to make up [and] would result in cuts to 'essential' city services that would endanger public safety."
Read more about the quest for a limit on property taxes here.