New York Governor Andrew Cuomo wants to extend the state’s property tax cap. The law limits annual tax increases, and it’s set to expire next year. Cuomo released a report yesterday that said the cap has saved more than $800 for the typical New Yorker over the past three years. He calls that success.
But Dryden town supervisor Mary Ann Sumner wants Cuomo to look back a few more years. She says in 2008 when the recession hit, Dryden cut taxes to give people a break. The town leaned on money it had in reserve instead.
“Our tax rate is in fact artificially low because we’ve been using savings,” she says.
Sumner says now that the economy’s improving, taxes need to go back up, but the cap limits annual tax increases to two percent. If a locality exceeds that, its property owners don’t get a special tax credit from the state.
“When our tax levy would normally rise, we’re penalized for doing that,” Sumner says.
Cuomo’s report says curtailing tax rates makes New York more economically competitive. Before the legislature adjourns in two weeks, it could extend the tax cap or even make it permanent.