CHENANGO COUNTY – A statewide initiative to provide tax relief to residents and business owners reached a new milestone Tuesday with a proposal state executives say will ease the tax burden on individuals, families and businesses across the state.
On Wednesday, the New York State Tax Relief Commission called a public meeting to present its suggestions to promote economic vitality in the state and also encourage local taxing jurisdictions to reduce the heavy costs of operation. According to the pannel, the initiative is made possible through years of responsible fiscal planning that has allowed state officials to build a revenue pool of $2 billion.
The Commission recommended creation of a two-year tax freeze for all taxing municipalities that adopt budgets that adhere to the property tax cap. During the first year, eligible homeowners’ taxes would be subsidized through a state credit equal to the growth in their property taxes. In the second year, the freeze would continue for homeowners living in jurisdictions that remain within the property tax cap and take measures to reduce operational costs by sharing with neighboring municipalities or consolidating.
Additional recommendations include lowering the corporate tax rate to its lowest level in 46 years, lowering the tax rate for Upstate NY manufacturers to 2.5 percent – its lowest level ever – and updating the NY Estate Tax to bring the state in line with other states.
Legislators say the plan could save tax payers billions of dollars and shake the reputation of New York State being among the most highly taxed states in the country. Recommendations from the commission are based findings that property tax remains the most burdensome tax for individuals, families and businesses in the state and damper economic growth.
Already, the initiative has gained support of some local officials who believe that while the finer details have yet to be made clear, it’s a positive move in providing relief for local taxpayers.
“This will be a giant step forward to bringing tax relief to businesses and homeowners,” said City of Norwich Mayor Joseph Maiurano in a statement sent to The Evening Sun. “I commend the Governor and the Tax Relief Commission for their efforts. There is still more work to be done and if all New York municipalities work together, New York State will again be known as the friendly state for families and businesses.”
Chenango County Treasurer William Craine said while any effort to provide tax relief is open to discussion, “the devil is in the details.”
“Many times, when consolidation efforts are presented to voters, it’s not heavily favored,” he added, pointing to the recently failed votes to consolidate the Chenango Valley and Chenango Forks school districts in Broome County, and the Hamilton and Morrisville school districts in Madison County.
According to a media release form the Governor’s Office, New York Governor Andrew Cuomo accepted the final report of the Tax Relief Commission Wednesday afternoon. Said Cuomo, “While we have made tremendous progress over the last three years in bringing down taxes for all New Yorkers, this commission has taken the two billion dollar surplus that resulted from our responsible budgeting and fiscal reforms to propose even further reductions for New York taxpayers.”
Cuomo added the proposal will “reverse the state’s reputation as a tax capital” and keep families and businesses in the state.
“Broad based tax relief measures, that will make New York more economically competitive and ease the tax burden on hardworking individuals and families, are at the top of my priority list for 2014,” said New York’s 51st District Senator James Seward. “My senate colleagues and I recently put forward a comprehensive tax reform plan that will make it easier for small businesses, growing families, and retirees to stay and thrive here at home. As I analyze the recommendations from the governor’s commission, I will be looking for areas of overlap with the senate plan and will work to swiftly advance these ideals when the legislature reconvenes next month.”