Meaningful tax relief for all New Yorkers

New York City residents pay some of the highest taxes in the state and because of that they deserve more relief. The current property tax circuit breaker proposed by Governor Andrew Cuomo does not address meaningful tax relief for these New Yorkers. As NYC Comptroller Scott Stringer aptly pointed out, New York City which makes up 43 percent of the state’s population would receive just 29 percent of benefits under the Governor’s property tax plan.  There is more we can do to broaden tax relief for New York City homeowners and renters not included in the Governor’s plan, given that they are nearly half of the state’s population.

An enhanced circuit breaker plan starts with factoring in the city’s Personal Income Tax (PIT) for an individual or family. The Governor’s plan fails to recognize that New York City residents are among the highest taxed in the state as it is solely focused on property taxes instead of an individual or families’ entire local tax burden.  Unlike other areas throughout the state, the city has a more diverse tax mix and draws from a broader range of other taxes to pay for local services. By limiting the circuit breaker to property taxes alone, city taxpayers receive less tax relief than their fellow New Yorkers elsewhere across the state.

Second we need to make sure that renters, which constitute a majority of New York City households, receive their fair share under any relief proposal. We do that by increasing the maximum benefit to city renters from $750 to $2,000. This would create parity between renters and homeowners. In addition we need to increase the percent of annual rent that is attributed to property taxes so that a tenant paying more than 30 percent of his/her income in rent — the general affordability threshold — can qualify for the program.

So under my plan a renter earning approximately $82,000 and living in New York City with a monthly rent of $2,300 would see a benefit of about $600, whereas under the Governor’s plan he/she would receive nothing. Similarly, a homeowner making $80,000 and paying property taxes around $4,700 would receive a benefit of approximately $250, whereas under the Governor’s plan they would not qualify. If we put these three essential pieces in place, it is projected that more than 375,000 additional New York City residents will benefit that would otherwise not receive any tax relief
It cannot be that the residents living in such a high-tax environment are the ones getting the least relief. We need to provide relief for more New York City households in a way that reflects the reality of what they are paying for a roof over their heads. This plan puts more money back in the pockets of taxpayers with a sensible, realistic approach tailored to the needs of those who live in New York City and creates a more level playing field between renters and homeowners.

Jeff Klein is the state senator for the 34th district. Point of view is a column open to all.