CHENANGO COUNTY – Some local policy makers are reluctant to say if New York Governor Andrew Cuomo’s latest proposal to provide more than $2 billion in tax relief for residents and businesses across the state will have a direct benefit in Chenango County.
On Monday, Governor Cuomo announced a plan of a more than $2 billion in tax relief in hopes of boosting economic opportunity, growth and to attract new businesses in the state. According to the Governor, state-wide tax cuts are made possible through years of financial planning that turned a $10 billion deficit into a $2 billion surplus.
Included in the Cuomo’s proposal is a two-year freeze on property taxes, subject to two conditions. During the first year, the state will provide tax rebates to homeowners who live in a jurisdiction only if that jurisdiction adheres to the state mandated 2 percent property tax cap. In the second year, the rebate will continue only if the taxing locality adheres to the tax cap and agrees to a shared services or consolidation plan with another jurisdiction.
“It’s obvious the Governor is trying to help individuals and help the business climate,” said Chenango County Board of Supervisors Chairman Lawrence Wilcox. “I just hope the Governor’s latest proposal isn’t filled with unfunded mandates to get to that end.”
When it comes to success of the Governor’s plan, Wilcox said the devil is in the detail.
“Without knowing exactly how the program will work, it’s difficult to make a good assessment,” he said. “I agree with shared services. And the things that help save some money are worth doing,” he added, though noting he is not a proponent of consolidation.
Wilcox also questioned whether or not a homeowner who lives in multiple taxing districts would be eligible for a rebate should one of those taxing entities not adhere to the tax cap.
Few like-minded concerns were shared by Norwich City Mayor Joseph Maiurano, one of the leading local advocates for consolidation within the county.
“This is a step forward but it will only work if all municipalities and school systems work together and make an effort to look at shared services and consolidation,” said Maiurano. “But a lot of consolidation efforts, the city does not have control over. We can’t control anyone who doesn’t want to work with us.”
The city, does, however, share some services with surrounding municipalities, including police and fire, youth bureau services, and IT department staff with the Norwich City School District. Those shared services may make city residents eligible for tax rebates under the Governor’s proposal.
While the two-year freeze is at the forefront of the Governor’s plan, it also includes several tax credits aimed at helping low to moderate income homeowners. The proposal calls for a property tax “circuit breaker” that would provide tax relief based on a taxpayer’s ability to pay. Households earning up to $200,000 per year would be eligible for a refundable tax credit against the personal income tax. The average benefit would be $500.
The plan also suggests a renter’s tax credit that would provide more than $400 million in tax relief for 2.6 million renters. Renters with incomes below $100,000 would be offered a refundable personal income tax credit that increases with family size.
Under the plan, a proposed estate tax reform would increase the New York estate tax threshold from the current $1 million to $5.25 million and lower the top rate to 10 percent over four years.
Additionally, Governor Cuomo’s plan moves New York State merge the bank tax into the corporate franchise tax to provide relief for businesses, lowering the franchise tax rate to 6.5 percent. The plan also offers a real property tax credit for manufacturing firms, and proposes elimination of the corporate income tax rate for Upstate manufacturers.
Further details of Governor Cuomo’s tax relief proposal are expected when he gives the State of the State address today in Albany.