New York State Executive Chamber | Governor Eliot Spitzer
Press Releases | Speeches | Executive Orders | Proclamations
ENACTED BUDGET INCLUDES EXPANDED PROPERTY TAX RELIEF
Governor Eliot Spitzer today confirmed that the enacted state budget includes an expanded property tax relief program that targets its benefits to middle income homeowners.
The new program, adding income consideration to the distribution of property tax relief provided through STAR, was a top budget priority for the Governor.
"Real property taxes in New York State have risen dramatically over the last decade and are among the highest in the nation," Spitzer said. "During budget talks, all sides agreed to reduce the crushing property tax burden and to target the greatest amount of relief to middle class homeowners.”
The enacted budget for fiscal year 2007-08 provides $1.3 billion in property tax relief by increasing the current STAR program with an additional benefit for middle-class taxpayers and increased benefits for seniors. STAR would increase by $1.8 billion in 2008-09 and $2.3 billion in 2009-10 for a three-year cumulative increase of $5.3 billion. The additional benefit will be delivered to taxpayers in the form of a rebate check.
The centerpiece of the plan is the creation of a new Middle Class STAR program that will provide benefits to taxpayers on a sliding scale based on income, with benefits declining as income exceeds $90,000 for upstate homeowners and $120,000 for homeowners in the higher cost New York City metropolitan region. The percentage benefit added on a sliding scale basis, for homeowners with income up to $250,000, will increase over the next three years and the income ranges to which the scale applies will be adjusted to reflect income growth during the period.
Upstate residents with incomes of $90,000 or less will receive a 60 percent additional benefit in 2007-08, a 10 percent additional benefit in 2008-09 and a 10 percent additional benefit in 2009-10. The middle class benefit to be provided through a rebate check is in addition to the Basic STAR benefit provided in the form of a reduction in the homeowner’s property tax bill.
More than 94 percent of all homeowners across New York State will receive additional tax relief under the Governor’s Middle Class STAR program, with 79 percent of homeowners qualifying for the maximum benefit.
The average Basic STAR savings upstate was $640 in 2006-07. As a result of the Governor’s Middle Class STAR program, for a family with income of $90,000 or less, the STAR benefit would grow by $384, as a result of the Middle Class STAR program to a total STAR benefit of $1,024 in 2007-08.
In the downstate counties outside of New York City, where property values and taxes are considerably higher, the average basic STAR savings was $1,082 in 2006-07. For a family with income of $120,000 or less, as a result of the Middle Class STAR program, this benefit would increase by $649 to a total STAR benefit of $1,731 in 2007-08.
In New York City, in addition to a middle class supplement for those receiving Basic STAR benefits, relief will be increased for all residents paying personal income tax with income of $250,000 or less. Married individuals filing joint returns will be eligible for a refundable credit of $290, up from $230 last year. All others will be eligible for a credit of $145, up from $115 last year.
The enacted budget will increase the Enhanced STAR benefit for seniors by 25 percent and make the cost of living adjustment for the Senior STAR program permanent.
The Executive Budget also proposes a broader strategy for tax relief by addressing some of the underlying causes of high property taxes, including continuation of the local Medicaid cap and takeover of the Family Health Plus program to save counties and New York City $1.96 billion in 2007-08, generous increases in school aid tied to accountability, additional support for distressed municipalities conditioned on implementation of improved financial practices and consolidation incentives.