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THE CIRCUIT BREAKER NEW YORK STATE LEGISLATURE PROPERTY TAX RELIEF: WESTCHESTER ALLIANCE IONA COLLEGE BY JOHN BERTINO & THOMAS SEVERIN.

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Presentation on theme: "THE CIRCUIT BREAKER NEW YORK STATE LEGISLATURE PROPERTY TAX RELIEF: WESTCHESTER ALLIANCE IONA COLLEGE BY JOHN BERTINO & THOMAS SEVERIN."— Presentation transcript:

1 THE CIRCUIT BREAKER NEW YORK STATE LEGISLATURE PROPERTY TAX RELIEF: WESTCHESTER ALLIANCE IONA COLLEGE BY JOHN BERTINO & THOMAS SEVERIN

2 For the third consecutive year, Westchester County has had the highest property taxes in the nation. Westchester has the highest out-migration of the 65 and over population. The cost of living is too high in Westchester for a viable in- home workforce. Younger generations and the elderly cannot afford housing in the area. THE PROBLEM IN WESTCHESTER COUNTY

3 NATIONAL PROPERTY TAX BY COUNTY

4 Residents whose property taxes represent more than a certain portion of their income, qualify for a tax relief credit. Some variations of circuit breaker policies have been implemented in thirty-three states and in Washington, DC. How do states decide who qualifies for circuit breaker tax relief? PROPERTY TAX CIRCUIT BREAKERS

5 Circuit breakers normally focus on their relief towards the elderly because they are often on a fixed income. Most circuit breakers are for homeowners, not renters. Many states set a maximum income level for eligibility. Some state relief plans are indexed for inflation. CHARACTERISITICS OF CIRCUIT BREAKERS

6 ADVANTAGES Targeted on specific income groups. Less expensive than across the board cuts DISADVANTAGES Often only given to those who apply Need to make tax payers aware of existence CIRCUIT BREAKER TAX CREDIT

7 Introduced January 9, 2013 by A. Galef to the Assembly, and by E. Little to the Senate. Seeks to address issues of affordability for property owners in New York State. NEW YORK STATE PROPOSAL A.1941/S Household Adjusted Gross Income Tax Maximum Real Property Tax $120,000 or less Real Property taxes paid in excess of 6% of said income can receive a personal income tax credit of 70% of the overage. $120,001 - $175,000 Real Property taxes paid in excess of 7% of said income can receive a personal income tax credit of 70% of the overage. $175,001 - $250,000 Real Property taxes paid in excess of 8% of said income can receive a personal income tax credit of 70% of the overage. $250,001 +No credit Household Adjusted Gross Income Tax Maximum Real Property Tax $90,000 or less Real Property taxes paid in excess of 6% of said income can receive a personal income tax credit of 70% of the overage. $90,001 - $150,000 Real Property taxes paid in excess of 7% of said income can receive a personal income tax credit of 70% of the overage. $150,001 - $250,000 Real Property taxes paid in excess of 8% of said income can receive a personal income tax credit of 70% of the overage. $250,001 +No credit City of New York, and the Counties of Nassau, Suffolk, Rockland, Westchester, Putnam, Orange, and Dutchess All Other Counties

8 CUOMOS PLAN Creates a refundable tax credit against the personal income tax to provide targeted real property tax relief. Based on an individual homeowners ability to pay, also known as the circuit breaker. Progressively structured to provide a greater proportion of benefits to those with the highest property tax. When fully phased in, the program, valued at almost $1 billion, will benefit over 2 million homeowners yielding an average benefit of $500.

9 Hanley, Rob. "Property taxes: How does your county compare?." CNN Money,. (accessed March 2, 2014). Institute on Taxation and Economic Policy, "Property Tax Circuit Breakers." Accessed March 2, New York State, "The Plan: From the Bipartisan NY State Tax Relief Commission." Accessed March 2, WORKS CITED


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