Property tax reduction in limbo

As difficult economic times persist, New York City residents are still unsure if they will get the seven percent property tax reduction the city implemented last year.
Bloomberg has floated the possibility of not extending the seven percent reduction at different junctures this year, but most recently reaffirmed the possibility during his weekly radio address last week.
“We are just not going to subsidize and stand things that we can’t justify, that are not absolutely necessary,” Bloomberg said.
However, Bloomberg’s statements raised the ire of some local lawmakers.
“I don’t expect it to be on the table under any circumstances,” said City Councilmember David Weprin, who is the Chair of the Council’s Finance Committee. “I don’t think we are anywhere near a crisis mode for this year.”
Meanwhile, City Councilmember Eric Gioia, who was one of the first lawmakers to denounce the possibility of not extending the property tax reduction, referenced high gas and food prices as well as rising water bills as area families are already experiencing the pinch.
“Middle class families are under siege,” Gioia said. “Raising their taxes now, at a time when they can least afford it, would be a mistake,” he continued.
Meanwhile, City Comptroller William Thompson expressed hope that the seven percent reduction could be extended, but said that the city should proceed with caution when evaluating whether it is the prudent decision.
Thompson referenced the city’s new contract with the Patrolmen’s Benevolent Association (PBA) and the possibility that other uniformed service organizations might opt out of their contracts in the hopes of getting a better deal.
“We don’t want to wind up with the seven percent property taxes across the board and then all of a sudden you wind up creating greater problems for yourself,” Thompson said.
When Bloomberg unveiled his Executive Budget on May 1 of this year, he expressed hope that the city would be able to extend the seven percent property tax break as well as the $400 property tax rebate to homeowners in this year’s budget. However, he cautioned that budget projections for 2010 and beyond would make the seven percent reduction unlikely beyond this year.
Currently, the Council and the mayor are trying to finalize the 2009 budget by the end of the month, and this year’s budget is expected to be under a great deal of scrutiny after the recent slush fund scandals.