Rebate Checks To Come, But City Property Taxes Will Rise

Homeowners across New York City will soon get their $400 property tax rebate check, but in the end will wind up paying higher property taxes anyway.

After a brief wrangle, the City Council and Mayor Michael Bloomberg came to terms last Thursday, Dec. 18 on a budget modification agreement for the current fiscal year in which the city would release the rebate checks to property owners as soon as possible.

Even so, the pact also wiped out a proposed seven percent reduction in property taxes. According to the City Council, single-family homeowners will face an average tax increase of $118, while co-operative apartment owners in buildings with 10 or more units will see an average increase of $162.

Combined with a temporary hotel tax increase of 0.875 percent, it was noted, the property tax increase is expected to generate over $650 million in additional revenue for city government.

The agreement also included the restoration of projects and other items which Mayor Bloomberg originally proposed to remove from the budget in a plan he announced last month amid the ongoing economic crisis gripping the city and country.

Among the items restored are the hiring of 250 police cadets from classes scheduled to graduate the NYPD Police Academy in January and July, staff positions at the Administration for Children's Services, adult education and literacy services programs, elder abuse prevention programs and funding for the City University of New York and local community colleges.

"The economic crisis has forced all of us in government to reassess our priorities so we can balance the budget in the face of record revenue shortfalls," said Council Speaker Christine Quinn. "These investwithin ments stand in stark contrast to decisions made in the wake of the fiscal crisis of 1975 when the city was forced to reduce the size of the police force by 20 percent."

"It's never popular to phase out a tax cut or reduce agency spending, but they are the right choices to avoid far greater and longer lasting pain," Bloomberg added. "We will not repeat the mistakes of the 1970s, which crippled (the) city's finances and nearly destroyed our quality of life. We are taking steps to weather this storm so we can continue to keep our streets safe and clean, continue improving our schools and continue protecting seniors and the most vulnerable New Yorkers."

In order to help middle class and working families deal with the increased property tax payments, the City Council noted, the agreement includes provisions to allow homeowners of properties with an assessed value of $250,000 or less to pay their tax bill on a quarterly basis. Currently, city property owners must make semi-annual tax payments.

A one-time grace period of 15 days for the January tax payment has also been provided for owners of these properties, according to the Council.

But one local legislator, outgoing City Council Member Anthony Como, voted against the agreement during last Thursday's session, stating that with many families currently facing financial turmoil of their own, a property tax increase would "deliver a knockout blow" to the city's economy.

"I believe we should find real economic relief for property owners instead of offering shortsighted tax assistance," Como said. "The only truly fair tax reduction is a permanent, across-the-board cut in tax rates. Moreover, property tax increases will have adverse affects beyond those who own homes in the city."