By Kelsey Durham
With the passage of a state budget earlier this month, state Sen. Tony Avella (D-Bayside) has secured an income tax credit for some homeowners within New York City that he says will give them a small but much-needed break from continuously rising property taxes.
The senator was joined by homeowners and civic leaders in Glen Oaks last week as he announced a proposal he introduced in February to expand Gov. Andrew Cuomo’s renter’s tax credit was included in the budget.
Cuomo’s proposal, introduced a month prior to Avella’s, called for tax credits for 2.6 million residents across the state who rent a home and earn less than $100,000 a year, but Avella wanted more for the owners of small homes in the city who say their property taxes have gotten out of control.
“When the governor first came out with the renters’ tax credit, my first inclination was, ‘That’s a great idea because it’s about time renters had some relief,’ but what about condo and co-op owners?,” he said. “Condo and co-op owners in New York City have not had a break in property taxes since he took office.”
Under the approved extension, owners of one-, two- and three-family homes who spend more than 4 percent of their annual income on property taxes will get a refund that equates to anywhere between 1.5 percent and 4.5 percent of the amount that exceeded the 4 percent.
The percentage that owners would get back will be determined by annual salary, with those making less than $100,000 receiving the highest and those who earn between $150,000 and $200,000 getting back the least amount of money.
While Avella admitted that the refund amounts are small, he said it is still a step in the right direction.
“Small homeowners and co-op and condo owners will now be able, for the first time, to get an income tax break that they’ve never had before,” he said.
Michael Castellano, president of the Lost Community Civic Association in northeast Queens and western Long Island, said the tax credit is a breath of fresh air to homeowners who have seen their property taxes go up every year without getting anything back.
“When I first moved to this community in 1977, my property taxes were $900,” he said. “Now, they’re over $2,000 a quarter. Any help the senator can give us is certainly welcome.”
The tax credit from this program will be included in state income tax refunds each April, starting with the current tax year. The credit percentage may be small to start, but homeowners said after last week’s announcement that they hoped it would be the beginning of something larger.
“It’s nice to know that there is an elected representative who is cognizant of these issues and understands that there are people in New York who live in co-ops, condos and small, single-family homes,” said Bob Friedrich, president of the Glen Oaks Village co-op. “They’re often forgotten when we talk about real estate and the multimillion-dollar Manhattan high-rise buildings. This credit is not huge in the beginning, but we’ll build on it as a first step.”
Reach reporter Kelsey Durham at 718-260-4573 or by e-mail at kdurham@cnglocal.com.
