Tax Cap UPDATE

by E.J. McMahon |  | NY Torch

A 2016 expiration date was, indeed, added to the agreed-upon property tax cap provisions of the monster omnibus bill now being cooked up in the Legislature.  However, based on information provided in the past hour by the governor’s office and the Senate majority, the language still provides that the tax cap will remain in effect as long as there are state rent control laws for New York City.   Which is (or might be) good news.

Why add any date, you ask? Apparently, since rent control is now set to sunset in four years,  folks at the negotiating table thought taxpayers outside the city would find it more reassuring if the tax cap was given a later expiration date–even though, once again, the intent of the law is that the cap shall remain in full effect as long as the state has a rent control law.  Which will be for a very long time.  Which means the cap’s sunset date is essentially symbolic — a sort of painted scenery backdrop.

Perplexed?  You’re not alone. Final judgements on what the Legislature and governor have wrought will have to await release of the actual bill language.  Unfortunately, this being end of session, the Legislature may vote on the package before the ink has dried.

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- E.J. McMahon is the Research Director at the Empire Center for Public Policy.