With rents and the rate of inflation on the rise, one Queens lawmaker is calling for tenants to receive tax relief.
On Dec. 14, State Senator Jose Peralta introduced legislation that increases the eligibility levels of the current real property tax circuit breaker.
The property tax circuit breaker, which was established over 30 years ago, was put in place to cover the portion of a homeowner’s tax bill surpassing a reasonable share of their household income. Under Peralta’s proposal, the maximum household income eligibility for tenants and homeowners will increase from the current $18,000 to a $75,000 ceiling.
“This is a much-needed property tax credit for hundreds of thousands of New Yorkers who day after day juggle to make ends meet. Clearly, this direct tax relief means more money in the pockets of hard-working tenants,” said Peralta. “As the cost of living and the rate of inflation increase, we must ensure the existing tax relief measures keeps up with the pace.”
If the proposal passes, the eligibility level of the property value will increase from $85,000 to $200,000, and the tax credit will be set at a maximum of $800 for New Yorkers more than 65-years-old, and $400 for people 65 or younger.
“My legislation will bring the outdated tax relief structure, finally, into the 21st Century. Tenants pay property taxes through their rents, and since a big chunk of their salary, unfortunately, goes toward rent, we should help them by providing this rebate,” said Peralta.