ALBANY – New York state’s Senate Majority will introduce separate tax programs when the 2008 legislative session begins in Albany next week that could double and triple rebate checks for certain families and phase out school taxes altogether.
“Homeowners are being choked,” said Senator Thomas Libous (R-Binghamton) in a phone interview Thursday. “In Chenango County, I know it’s hard for people to make ends meet because of high school and local taxes. With this proposal, the Senate is starting the process of reducing that property tax burden.”
The first of the Republican-led Senate’s plan would double the STAR program (School Tax Relief) rebates in 2008 and triple them in 2009 over what property owners received in 2007. For property owners in Chenango County who make less than $90,000 annually, their checks would increase from $383 to $766 this year, and again to $1,148 next year, according to figures provided by Libous’ office.
The second proposal, called NY-STOP (Stop Taxing Our Properties) would phase out school taxes altogether for STAR eligible properties over the next five years. The $9.5 billion in lost school tax would be recovered through state aid, Libous said.
“There’s no doubt, there will be a lot of debate and discussion on this issue in the coming weeks and months,” said Libous, who admitted that funding sources for the program have not yet been finalized. “But the Senate understands that something has to be done, and this is our idea.”
Libous expects the legislation will be introduced and passed in the Senate shortly after Gov. Eliot Spitzer’s State of the State address Monday.
“We have to figure out what our priorities are, and we need to make this our priority,” Libous said, adding that that included the Assembly as well. “If they can come up with a better idea fine. But we have to begin the discussion.”
The plan would also freeze tax rates and property assessments for homeowners over 65.
Assembly leader Sheldon Silver (D-Manhattan) proposed sub-prime lending relief as the top priority of the Democrat-led Assembly.
“Unfortunately, for millions of Americans, including tens of thousands of New Yorkers, this year will be anything but happy, as they face the possibility of foreclosure and the loss of their homes thanks to the national sub-prime lending crisis,” he said in a press release Wednesday.
The Assembly’s plan: Offer $150 million in state assistance for homeowners who are in default, “to help them ‘catch up’ on back payments.”