Currently there are 3 NYS Property Tax Relief
Plans proposed by LI politicans
The Fitzpatrick Plan
a)…Limits property taxes on homeowners and
businesses to the lower of inflation or 4%.
b)… Requires the state to foot the
bill for state mandates costing more than $10,000/year for a school district or
in aggregate, eliminating the
long touted excuse for high education costs.
c)… Requires school
district officials and employees to report fraud, criminal activity and
conflict of interest. Provides
legal protection to those disclosing such
actions, while imposing civil and criminal penalties for those required to
disclose such behavior but fail to do so.
d)… Requires the superintendent and
treasurer to certify that financial statements
fairly represent the financial
condition of the school district. Establishes
a compensation committee to review and report on proposed labor
one of three committee persons may be a school board member, and no district
serve on the committee. Requires all labor contracts be posted at
the library at least five weeks before voted on.
system fraud, and also enforces restriction on retired personnel receiving both
and public pay in excess amount permitted by current law.Provides
state funding to counties to purchase data
mining software that exposes
Conclusion: This is a comprehensive plan that gets to the core
of the property tax problem. School tax is about
two thirds of our
tax bill. Fitzpatrick offers the only plan that
positively limits school taxes. It
addresses the primary
reason/excuse for high education costs- state mandates,
by requiring the state to pick up the cost of new mandates.
This is the bill
that makes administrators criminally an personally liable for fraudulent
financial information similar to
what Sarbaynes-Oxley has done in public corporation
with much success. It makes the
compensation of school
district employees more transparent with public
disclosure prior to contracts and by placing non-employees on a
responsible for compensation. It address pension fraud within the system and
also seeks to address
Medicaid is on of the largest property tax cost components after school tax.
a)…Claims to cap all property tax at 5% of “household Gross income” up to
$200,000. Higher income households
The Theile Plan
not enjoy property tax cap.
b)…Includes income of all household members in this
scheme- working students, adult kids living home,elderly
parents and other
relatives living at home, etc. For the
first time you will be taxed on others’
c)…Punishes extended families and those working additional jobs to pay
property taxes. Benefits those with
off-the-books income who will afford pricey
home on unreported income.
d)…Theile’s “household gross income” also taxes items
not normally subject to income tax…all pensions, IRA
security payments, municipal bond interest- including NY issue; disability,
workmen’s comp and auto no-fault payments.
e)…Seniors may defer up to $2,500 of
property tax each year, financed at up to 7% interest. A lien will be placed
on the home. After many
years of deferring property taxes, the county, town and school district could
one of the heirs to the family home. Late payments by the estate are
penalized with a 25% per year penalty.
f)…Reassessments would be ever three
years instead of annually.
g)…Reassessments would be limited to the lesser of
inflation or 5%.
h)…Tax limits can be imposed on towns, villages, counties and
school districts, but the process will be nearly
impossible for the taxpayer to
pull off. A petition needs to be signed
by 25% of residents who voted in the prior election just to get on the ballot. It then must pass by
i) An income tax filing will need to be done reflecting household
income and claiming any cap credit.
Conclusion: Theile’s plan offers only an
elusion of limiting tax on school districts and other local tax levying
jurisdications. The arduous process for citizens to initiate a cap on spending virtually insures no cap will
This plan intertwines a
progressive income tax feature that includes incomes of others
in your household and
includes items that are not normally taxes by NYS income
tax. It requires an additional annual tax filing. Those with
off-the-books income will benefit the most by underpaying property
tax. Those with large or extended families will be
taxed more. Those working
additional job to pay their property taxes will be taxes more. And don’t forget
into the family estate too by permitting seniors to lien part of
their annual taxes with interest against the equity in their
home. This plan is
The Trunzo Plan
a)…Proposes to eliminate school property taxes in
five years. But Trunzo fails to say
where the billions of dollars will come from
to replace school property taxes.
b)…Offers an immediate freeze on
property taxes for seniors but they are getting rid of the property tax anyway?
c) …Create a commission to help lower costs.
Conclusion: This bill
offers the right phrases for political kudos, but provides absolutely no specifics. It completely
known overriding cause of high property
tax- high school district spending by hiding behind a
commission that will need
to rediscover the obvious. Forty-three
billion dollars was spent on education in NYS last
year. Most of this comes
form property taxes. Trunzo’s plan fails to
identify just how the billions dropped form the
property tax will be
replaced. Did somebody say property tax?