Property Tax Cap Gets Thumbs-Up from Business

ALBANY-Gov. Andrew Cuomo and legislative leaders said Tuesday that they’ve agreed on a 2% limit on commercial and residential property tax increases. The agreement, which must still be approved by the state legislature, drew praise from business organizations statewide.

In recent weeks, the Committee to Save New York, a statewide coalition of business groups spearheaded by the Real Estate Board of New York, ran a public-service TV ad earlier this month endorsing Cuomo’s proposal for a tax cap. A spokesman for CSNY tells GlobeSt.com that although the coalition’s board members haven’t discussed yesterday’s agreement as a group, individual organizations that comprise CSNY have spoken out in favor of the proposal, which aims at stemming economic decline in regions outside New York City. He adds that the agreement between the governor, Assembly Speaker Sheldon Silver and Senate Majority Leader Dean Skelos is “very close” to what CSNY endorsed.

Heather Briccetti, acting president and CEO of the Business Council of New York State, says in a statement that the property tax cap proposal “moves New York closer to an economic recovery.” She says the agreement shows that both legislative chambers agree with Cuomo on the state’s need for “a hard tax cap in order to protect taxpayers and businesses. A cap will help bring fiscal discipline to government and dramatically improve the business climate in the state. Businesses will not come, stay and grow in New York unless we get control of property taxes and this cap will do just that.”

Briccetti’s counterpart at the Long Island Association, president Kevin Law, says he’s “ encouraged that real progress is being made on a property tax cap and encourage the parties to continue to work together until it is approved.” Law notes that “our businesses on Long Island suffer from some of the highest property taxes in the state and in order to remain competitive they need property tax relief.”

Nassau County on Long Island tops the list statewide, according to the nonpartisan Tax Foundation, although its median annual residential property tax of $8,206 per household comes in just under top-ranked Hunterdon County, New Jersey at $8,216 per household. Between them, New Jersey and New York State contain all 10 of the country’s 10 most expensive counties in terms of residential property taxes, with Westchester and Rockland counties in New York State also making the cut.

Kathryn Wylde, president and CEO of the Partnership for New York City and a CSNY board member, sounds a similar theme of fiscal responsibility.“Skyrocketing property taxes are crushing the economies of suburban and upstate New York, leaving New York City with a disproportionate burden for producing tax revenues and economic activity to support the state,” she says in a statement. “In addition, more than 70 major companies that are members of the Partnership and major employers in New York maintain operations in other parts of the state, where property taxes are a huge factor in the cost burden on business.”

A statement from REBNY applauds Cuomo, Silver and Skelos on reaching an agreement “that will continue bringing fiscal common sense to the State of New York. The tax cap will lessen the burden on taxpayers across the state, stop additional economic decline, and promote job growth. The Legislature passing this tax cap will be a step in the right direction in working to make New York a more affordable place to live."