Nearly 60 percent of respondents to this week’s RBJ Daily Report Snap Poll say New York’s property tax cap should be made permanent. Another 31 percent would support that move if it were tied to mandate reform.

In effect since 2012, the tax cap does not expire until 2016, but the enacted legislation was tied to rent-control regulations in the New York City area that are due to sunset this month. The state Senate recently approved a bill that removes that link and extends the tax cap permanently.

A group of employer organizations including the Business Council of New York State Inc. has launched a push for a permanent tax cap. The group points to data compiled by the Empire Center showing that New York property owners have saved $7.6 billion (with $490 million saved in the Finger Lakes region), compared with the amount they would have paid if school tax levies had grown at the 30-year average rate of 6 percent a year. Instead, the levies have increased an average of 2.2 percent annually.

Under the law, the increase in total local property taxes imposed by school districts in New York is capped at the lesser of 2 percent or the rate of inflation. A district can override the cap if at least 60 percent of budget voters approve. The law also allows certain exceptions—for example, adjustments to reflect changes in taxable property values due to new construction or property improvements.

Gov. Andrew Cuomo, who has termed New York’s property tax cap a “tremendous success,” wants it to be made permanent. But critics of the tax cap say it limits local control and should be coupled with mandate reform.

“The tax cap limits the ability of school districts to raise local revenue at the same time districts are asked to offer more programs and provide more resources for their students,” the New York State School Boards Association has argued.

Approximately 500 readers participated in this week’s poll, conducted June 1 and 2.

Should New York’s property tax cap be made permanent?
Yes  59%
Only if tied to mandate relief  31%
No  10%

Gov. Andrew Cuomo has termed New York’s property tax cap a “tremendous success.”
Do you agree?
Agree strongly  16%
Agree somewhat  55%
Disagree somewhat  15%
Disagree strongly 14%

© 2015 Rochester Business Journal

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