City Is Facing Big Hike in Property Tax
January 11, 2008
New Yorkers could see their tax bills rise next year if Mayor Bloomberg decides to roll back a 7% property tax cut and end a $400 property tax rebate for homeowners to help close a projected $3.1 billion budget gap in the city.
Returning the property tax to its earlier level would give the city about $1 billion extra in revenues. Ending the rebate would save another $256 million.
Fiscal policy experts say the rebate could be on the table as the mayor sizes up the city’s budget in preparation for his annual State of the City address next Thursday and his subsequent presentation of budget plans for next year. The Bloomberg administration could be eyeing an end to the property tax relief as well.
The 7% property tax cut, which went into effect this year, was presented as a onetime bonus the city could afford, given its record $4.7 billion surplus. Mr. Bloomberg said at the time that he would keep a close eye on the city’s finances to determine whether his administration could afford to extend the cut.
“When the good times are rolling, that’s great, but we have to prepare for when they are not,” he said in June.
Mr. Bloomberg’s outlook on the economy has changed since then, with an economic downturn that prompted the city’s Independent Budget Office to project a $3.1 billion shortfall next year, a $4.6 billion shortfall in 2010, and a $6.3 billion shortfall in 2011.
Via the NY Sun Read the full story here
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