Politics on the Hudson

As Nassau County Executive Thomas Suozzi plans to announce a state tour to push for a tax cap, Senate Democrats are scheduled today to unveil their own tax-relief plan.

Sens. Jeff Klein, D-Bronx, (right) and Craig Johnson, D-Nassau County, are set to unveil a three-point tax plan.

The proposal mirrors much of what Suozzi’s tax-relief commission announced last month: a tax cap, mandate relief and tying taxes to a percentage of household income.

But it also tries to strike a balance between Democrats and Republicans that have been elusive in the state Legislature.

The Senate Democrats’ plan includes a cap on school districts that excludes the “Big 5” school districts and excludes capital expenditures, transportation and special
education costs from the cap, which would limit growth of school taxes to 4 percent a year—just like Gov. Paterson’s plan.

School district voters could also choose to impose stricter tax levy limits with a 60% override vote.

The plan also includes mandate relief, such as stricter limits on state requirements
and detailed cost estimates from the state for new initiatives that cost more than $1 million statewide or $10,000 to any district.

Also, new state mandates would not be able to take effect in the middle of a school year, and the state would encourage regional collective bargaining on contracts and regional health insurance trusts for employees.

The final component is the circuit breaker, which would tie taxes to income. In contrast to the STAR rebate program, which mails a check based on average local school taxes and income categories, the circuit breaker credit would be
claimed on a homeowner’s personal income taxes based on the exact income of the household and the percentage of that income paid in real property taxes.

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