Wednesday, October 2, 2013

Cuomo Forms Panel on Cutting Property Taxes


Mr. Cuomo, a Democrat, has made several attempts to address taxes during his three years in office. In 2011, he persuaded lawmakers to approve a limit on annual increases in property taxes and to restructure the state’s income tax, creating a new rate on the highest earners while reducing the rate paid by middle-class residents. And in June, lawmakers approved a Cuomo plan to create tax-free zones, intended to attract new businesses and start-ups, on state university campuses.


Next year, Mr. Cuomo said, he wants to take further action on property taxes, and he asked the panel, led by former Gov. George E. Pataki, a Republican, and former State Comptroller H. Carl McCall, a Democrat, to make recommendations before the Legislature returns to Albany in January.


“From a tax point of view, the number one priority, in my opinion, is to do more on property taxes,” Mr. Cuomo said at Manhattanville College in Westchester County, where he said property taxes were higher than in any county in the nation. “Remember, we already passed the 2 percent property tax cap, which was a radical, progressive step. We now want to do even more.”


Mr. Cuomo’s promise to seek tax cuts — he sat before a sign that said “Committed to Cutting Taxes” — adds to the uncertainty about the signature proposal by Bill de Blasio, the Democratic nominee for mayor of New York City, to raise local income taxes on the city’s top earners to pay for expanded prekindergarten and after-school programs. Mr. de Blasio’s proposal would require approval from Albany.


Mr. de Blasio said he was optimistic that Mr. Cuomo’s desire to cut taxes statewide would not affect the Legislature’s willingness to allow New York City to raise taxes, and he argued that Albany should allow local governments to make local taxation decisions for themselves. He said he had no alternative plan for financing universal prekindergarten.


“This is very different from the question of what taxes the state assesses directly,” Mr. de Blasio told reporters in Red Hook, Brooklyn, where he was touring an after-school program. “It’s a modest addition to taxation for folks who make a half-million or more, but it would make a huge strategic difference for our schools.”


Mr. Cuomo did not address Mr. de Blasio’s proposal on Wednesday. But he said that improving state finances made tax cuts possible, and that he was concerned high taxes could drive people to move elsewhere.


“New York, I believe, is the greatest state in the country, but there are other states that have more favorable tax climates, and businesses and people can shop those tax climates and they can leave, and we have to keep that in mind,” he said.


Mr. Cuomo said that in addition to property taxes, the commission’s members would be asked to review “any taxes that they believe are unduly burdensome to business, and to middle-class and working families.” The commission’s recommendations are due Dec. 6, and he said they would be included in his State of the State address in January.


Some left-leaning groups are hoping that if, as Mr. Cuomo suggested, the state does have surplus revenue in coming years, lawmakers will direct more financing toward areas they feel have been neglected, like public schools.


A spokesman for the State Assembly speaker, Sheldon Silver, a Manhattan Democrat, did not respond with enthusiasm when asked about the formation of the tax commission. “The governor is free to pick whoever he wants to advise him,” the spokesman, Michael Whyland, said.


Mr. Pataki and Mr. McCall have been adversaries of Mr. Cuomo in the past. Mr. Pataki defeated the governor’s father, former Gov. Mario M. Cuomo, in 1994. Mr. McCall defeated Mr. Cuomo for the Democratic nomination for governor in 2002 (before losing to Mr. Pataki). In 2011, Mr. Cuomo named Mr. McCall to lead the board of trustees for the State University of New York.


“I have to confess, when I got the call from Governor Cuomo, I wasn’t sure he had dialed the right number,” Mr. Pataki said, drawing laughter. He said he supported Mr. Cuomo’s goal to reduce taxes and was convinced of his sincerity in wanting to address the problem.


Mr. Cuomo previously appointed a Tax Reform and Fairness Commission, which also features Mr. McCall as a chairman. The governor said that commission was focusing on how to simplify the state’s tax code, and would also offer recommendations to him in December.


Mr. Cuomo and lawmakers have seemingly been mindful of the election calendar in shaping tax policy. Last winter, in a surprise deal, Mr. Cuomo and legislative leaders agreed to extend the top tax bracket, which was set to expire at the end of 2014. The move allowed them to avoid debating the issue during an election year at the end. Also this year, Mr. Cuomo and lawmakers agreed to send out to families a series of $ 350 tax rebates starting in the weeks before the November 2014 election.


Julie Turkewitz contributed reporting.





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