Gov. Andrew Cuomo this morning will receive a report from a Tax Relief Commission that will recommend tying property taxes to income and phasing out a controversial energy tax on businesses.
The so-called circuit breaker has been sought by unions and progressive groups for years, saying it would be a more equitable way for homeowners to pay for property taxes.
The report will be released at 10:30 a.m. on Long Island.
“With a circuit breaker, the devil is in the details,” said Ron Deutsch, executive director for New Yorkers for Fiscal Fairness. “Will it be meaningful where you are really overburdened, you will get relief?”
The commission, co-chaired by former Gov. George Pataki, is one of two Cuomo has set up to consider ways to lower the state’s high-tax burden.
Like the report issued by the first commission last month, this one is also expected to call for a more immediate phase out of an 18a-energy assessment on businesses, as well as an increase in the estate tax.
The energy tax hits businesses with a 2 percent assessment on electric, gas, water and steam usage. It is set to expire in 2018.
The estate tax would see an exemption threshold increase from $1 million to $3 million.
Updated: Other details coming out today from the commission:
The commission is expected to propose a two-year property tax rebate for homeowners—if your local governments and schools stay within the property-tax cap. And in year two, the rebate would be available if the governments show movement toward consolidation.
There would be a phase out in the 18a-tax assessment, focused toward energy companies. There is also expected to believe a reduction in the corporate franchise tax, down to 6.5 percent from 7.2 percent.
The estate tax would be increased to $5.2 million, from $1 million—consistent with the federal limit.
The circuit breaker may cost $900 million a year, but it’s unclear whether the report will have a dollar amount.