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Mar 27, 2009 Tom Suozzi

Time for a Property Tax Revolt

Business Week just noted that Nassau County is home to nine of the 25 wealthiest communities in America. With Albany in the middle of budget negotiations, this "recognition" is the last thing we need right now. For decades, Nassau has been misperceived around the state as an affluent suburb. But the reality is that some 95 percent of Nassau's residents are not wealthy - and are being crushed by property taxes.

Now's the time for New York State's elected officials to give us property tax relief. If we don't get it - and get it now - we might just have to revolt.

Somewhere in all the talk about balancing budgets and economic stimulus plans is the reality that both the federal and state governments will probably raise income taxes on those who earn above $250,000 or $500,000 a year.

If New York State actually enacts this "millionaire's tax," property tax relief had better be part of the equation. Why? Because the downstate suburbs - not just Nassau, but Suffolk and Westchester as well, with our highest-in-the-nation property taxes - have a disproportionate number of the high-wage earners whose income taxes are going to be hiked. But we also have residents who are not wealthy, who are paying the highest percentage of income in property taxes in America. They were struggling to pay their property taxes before the economy went bust.

If our wealthiest are going to be taxed more, why shouldn't our less fortunate neighbors see at least some marginal benefit? Why not, as part of the package, address the biggest problem we face on Long Island and across the state - property taxes?

While New York City has almost half of the state's population, it also has nearly half of the state's $250,000 and $500,000 or more earners (42 and 45 percent, respectively). That seems somewhat balanced. Nassau, Suffolk and Westchester counties, however, have only 18 percent of the state's population, yet we have a whopping 40 percent of the "wealthy." So the "wealthy" residents of these three largest downstate suburbs subsidize our state and national governments, while their non-wealthy neighbors get no benefit and are, in fact, suffering under the highest-in-the-nation property taxes. This problem needs fixing.

Some background. New York, like many blue states, is a donor state. This means we have historically given more to Washington than we get back. In fact, a 2004 study found that blue states - New York high among them - pay a disproportionately high share of the nation's federal income and employment taxes. At the same time, New York ranks 40th in the amount of federal aid we receive per tax dollar. While redistribution of wealth is part of what makes America great, the equation is way out of balance. And it gets even worse for Long Islanders.

Here at home, Long Islanders have long given more to Albany than we've gotten back, largely due to the erroneous belief that Nassau County - all of Nassau County - is affluent. Quick lists like the recent one in Business Week only fuel those flames of misperception

While it's true that we have among the highest number of high-income earners in the state, we also have deep pockets of poverty in our county. And Nassau County is home to solid middle-class communities that pay a disproportionate amount of their income in property taxes. In fact, the Census Bureau found that Nassau County is No. 4 in the nation for property taxes as a percentage of household income. It belies any notion of fairness.

But it's not only Long Island. Property taxes have been a crisis issue across New York State for years - certainly well before the national recession. Now, with the influx of billions in federal stimulus money and a potential hike in personal income tax, our state leaders must achieve meaningful property tax relief.

There are many possible avenues to do so already on the table, including a circuit breaker and a property tax cap, and the timing is finally right. New York's aversion to reform and its culture of overspending may have met their match in the national recession and global economic crisis, as many local governments here on Long Island are de facto proposing less spending in their upcoming budgets. Now let's institutionalize restraint on spending growth while the political will exists.

New Yorkers, especially Long Islanders, have been crying for property tax relief for years. The increase in income taxes reflects a belief that there's an increased taxing capacity on our "richest" residents. But no such taxing capacity exists for property taxes. In fact, we are already over capacity. Let's fix that problem as part of the overall solution.

Our state leaders have long had the motive to fix the property tax crisis. They now have the means and the opportunity. More than 200 years ago, colonists rallied around the slogan "No taxation without representation." Today, oppressed New York taxpayers should unite under the banner of "No income tax increase without a property tax decrease."

Comments | Permalink

23 Comments

Rosalie Hanson in Medfordon March 27, 2009 at 02.32 pm

Mr. Suozzi,

Thank you for having the courage to speak up on behalf of the taxpayers and endorse property tax reform that we are all so desperately in need of. 

Your efforts are greatly appreciated.!!

Jason Gooljar in Arlington, VA on March 30, 2009 at 03.18 pm

Tom,

This is the website you should have had in ‘06! Great integration of all the social networking tools and etc.

Jason

Ann Marie Smith in United Stateson March 30, 2009 at 07.19 pm

Tom you were the first to label Albany “dysfunctional”.  You were right then you are even more correct now.  Things are worse than ever.  Keep up the good work and get more hard working tax paying people involved by your initiative.  Good luck

Gordon in South Shoreon March 31, 2009 at 07.35 am

We need to seriously address the need to consolidate many of the local taxing government agencies. I’m talking about all the wasteful villages, sanitation, fire and school districts, precincts and towns. There are over 700 of them in Nassau and the duplication of expense and personnel weigh heavy on taxpayers throughout the county. If you want to address property taxes consolidation of these local taxing authorities is the place to start.

Vince Fisher in Ulster Park, NYon March 31, 2009 at 11.42 am

Capping school tax increases is not the way to go.  Reform the the way we pay for education in NY.  Paying property taxes to fund education is antiquated and unfair.  Poorer areas suffer and richer areas thrive.  Make the funding statewide and raise the funds through income tax.

Alexis Weinstein in Bay Shore, New Yorkon April 03, 2009 at 03.59 pm

I wholeheartedly agree that reforming and consolidating wasteful spending in all of the local taxing government agencies is the only way to get real tax relief.  The villages, sanitation, towns, precincts and especially school districts are way to costly to maintain in the status quo.  There is no reason for such extravagance in this time of financial crisis. What can the Suffolk County residents do to secure some relief?

James E Cheney in Phelps, NYon April 03, 2009 at 04.02 pm

Tom - I’d love to stand behind you and support you.  I agree that we may need to revolt.  However, as I told you in a previous e-mail directly to you, as a fellow CPA, I was extremely disappointed in your handling of the committee you recently chaired for the state.  It was offensive to me, as a fellow CPA and local politician (I am Mayor of my village) that you didn’t show this kind of courage and outspokenness then.  I hold out hope for people like you and me, bean counters that we are, in the sea of lawyers and career politicians in most political circles.  But, when you caved to the marching orders you were given, I lost faith.  You know very well that the results of that committee were useless when it had the possibility of so much promise to make a difference.  I hope you’re not just being opportunistic to fuel your own run for the governor’s office.  I know you want to fix this state, but I don’t know if I can follow someone who won’t lead when given the chance, as you were.

Elaine Whitehouse in Sayville NYon April 03, 2009 at 04.32 pm

I live in Suffolk County, but we, too, face confiscatory property taxes. There is a simple solution, but no one has the courage to face up to the teachers’ unions. It is this:  All school superintendents take a major pay cut. Lower all school taxes by at least 30%. Tell the schools they have to live within their budgets, like everyone else. No more teacher pay raises, and maybe they should pay for a portion of their health care, too, like everyone else. Also, consolidate school districts and get rid of their bloated administrations. These people serve their own interests, not those of the students. By the way, I teach in a private school of 1400 students. The teachers earn far less and do far more. We have a small streamlined administration, and put in long hours. Our students succeed, and the teachers do the job because they love teaching, not because they get big salaries.

Larry Donnelly in United Stateson April 03, 2009 at 07.34 pm

At ;ast a person with some political clout has taken up the torch for the elderly retirees who can no longer afford to live here because of the confiscatory property tax. New York is stealing my home of 46 years. My future lies in the hands of the NYS Legislature. We need you to represent us on this issue.

taxsavvy in Nassauuon April 03, 2009 at 09.32 pm

Today, private industry workers are taking pay cuts.

County employees are taking pay cuts.

City workers are taking pay cuts.

CEO’s are taking pay cuts.

Many are loosing their jobs.

Why is it that our teachers and administrators continue to get their multiple raises and full job security in this environment?  Why are they insulated from the pain we all suffer?

Teacher and administrator pay is the underlying cause to these miserable school taxes!  80% of a typical school district budget is salaries and benefits.

Tom Souzzi, like all other politicians, is afraid to directly finger the cause of these high taxes.

He is full of platitudes, short on specifics, and totally evasive of the underlying cause.

Come on Tom, call it like it is!

The damn teachers and administrators are bleeding us. Are you colorblind to the color red?

robert favata in oyster bayon April 04, 2009 at 08.30 am

We can no longer ask the public to keep paying for over generous pension and benefit packages that private business has long ago given up on as too cost draining.  Everyone is entitled do “decent benefits, however, when the gap between the paying public mostly employed by private business concerns and those on all municipal levles is this great, it creates a two tear have and have not society.  The fact is the 1980’s union styled defined benefit pension systme must go away in favor of a defined contribution plan with taxpayer contribution.  Also, in as much as I am in favor of local control over schools, it should be apparant now that the little fifedoms created all over Long Island are so cost draining it is beyond our scope of payment.  Imagine a business like McDonalds having to put a comlete executive and administrative office in every town it does buisness.  That is what we do with our school system.  The state mus force district consolidation and crate one Long Island School district with a board elected who will fight for us rather then represent just the teacher unions.  The simple fact is this, we are paying a fortune to educate our children and they are forced to leave Long Island when the gaduate college.  Therefore, I’m a little tired of subsidizing our brain power for the rest of the coutnry where taxes are much more affordable.

Lena Brosnan in Oswego County/Town of Richlandon April 04, 2009 at 02.02 pm

Once again our assessed values were raised astronomically! When I searched the online listings for comparables, I found the tax roll to be woefully full of mistakes.  I know these are computer values and are not being scrutinized by a human person.  the Town decided to roll back the values to 2008 values. the State is putting the pressure on the local assessors to continue raising values.  We have the highest unemployment rates 11.6% in our county.  Please help

Chris Andrus in Central Square, Oswego County, NY on April 07, 2009 at 03.34 am

Mr. Suozzi,

I support your desire to reform (or else!)100%.

However, I fear exactley what Mr. Cheney from Phelps stated, that when you had the chance to suggest true reform with the Commission on Property Tax Relief in 2008 you went the route of recommending a phoney-baloney circuit breaker.

I feel very strongly that the Property Tax is an outdated instrument in funding government services.  There is no way to obtain fairness in assessment, because it is only one person’s OPINION of what a property MIGHT sell for, and it is destroying our state.  Larry Donnelly and Vince Fisher are absolutely right.

NYS Attorney General Andrew Cuomo has also proposed consolidation as a tool to reigning in spending, you can see his ideas and give your own at http://www.oag.state.ny.us/media_center/2008/dec/dec11b_08.html

Rochester businessman Tom Golisano has also launched a website asking for our input at http://www.responsiblenewyork.com/index.php

Please join the discussion!

Please give your voice to fairness, to stopping the insanity of us all having to compare our property to each other’s.

Please give your voice to getting rid of a system where a sole individual, the assessors, having all the rights and authority, but none of the responsibility of paying for the nearly 10,000 taxing jurisdictions we have in New York.

I’m completely sick of it, and am embarrassed that those that came before us tolerated it for so long. We need to have the guts and the leadership to change things, not just rhetoric.

There has got to aggressive action to overhaul the system, or it will fail. There has got to be significant change; and that change has to be that we do not need local governments in 2009!

If this were 1802, and we had no phones, cars, internet, etc.. we would certainly need small governments all over the place. It just does not make sense anymore.

Consolidate all the villages and towns and fire districts and water districts and school districts and whatever else into the County governments, then ABOLISH the property tax!!!!

“The most sacred of the duties of a government [is] to do equal and impartial justice to all citizens.”
—Thomas Jefferson

Kevin Munro on April 12, 2009 at 08.25 pm

thank you Mr. Suozzi for having the courage, unlike most of you’re colleagues, to stand up for your constituents.  Perhaps a resolution stating any and all officials who call for tax increases should first surrender an equal percentage of their salary.  After all, isn’t it our taxes which pay your salaries?

Dolores Calceglia on April 22, 2009 at 03.25 pm

Mr.Suozzi,
Please do something about our taxes,my mom is a widow and has been layed off.but her taxes keep going up.My mom is 77 years old.How much longer does she have to work?The seniors who lost a spouse also loses one social security check.When you become a senior,your taxes should be on what your income is.In the USA a senior should not have to say"should I eat or get my medicine or save for when my taxes are do.“Every little money they have extra has to be saved for taxes.Not everyones pension goes up.they are on a FIXED INCOME.They are being forced out of where they live and NO ONE CARES…...

Jessicawema on May 10, 2009 at 10.51 am

great post hope to see some additional comments next Tuesday…kisses

Ariananilm on May 13, 2009 at 05.49 am

thans for the tip

Elfi Geigner-Mag in Massapequaon May 19, 2009 at 12.37 pm

How can we revolt? Our money is being squandered by the local government!
I make a little under 50,000 anually and pay at leat 45% of my salary in taxes alone (this includes property taxes)!
How can other states do it with much less?

Carol Hanratty in Levittownon May 21, 2009 at 08.57 am

Thank you for speaking up on behalf of the taxpayers and endorse property tax reform that we are all so desperately in need of. 

What is also needed is a reform in our school taxes.  As a single person with no children the school taxes are more than double my property tax.  As I am reaching retirement, if the school taxes keep rising I will no longer be able to live in Long Island.

You have take control of local government and unions.  We will all be forced off the island if this is not corrected soon.  There is so much waste!

I agree with Elfi Geigner-Mag how do other states do it?

All of our salaries are either being cut or frozen but our taxes, transportation etc. are being increased.  How do you expect us to survive!!!!!

Pamelatods on May 23, 2009 at 12.51 pm

thanks !! very helpful post!

Bob F in oyster bayon May 23, 2009 at 04.13 pm

The waste on Long Island and NY in general is so obvious I don’t know how any reasonably thinking person can disagree.  Imagine if you will a large company like McDonalds establishing a full executive office in every place it has a resturant, how long would they stay in business?  Yet this is what we do with our school districts. It si clear that since no one wants to give up their little fifedoms and jobs, it will take the state to come in and consolidate it all.  The simple fact is the cost of multiple administratons plus a pension ad medical benefit program that no private industry would ever dream of giving out needs to change.  I’m all for deent benefits and pay.  But we are now at a point where we have two classes.  Those who must support and those who pay.  The simple fact is, we can no longer afford such non-contributory defined benefit schemes.  It’s time to switch all new employees to defined contribution type plans.  IIts time to have a greater portion of their medical plans supported by the employee, not the taxpayer.  And above all its time to have a plan were property taxes do not exceed a certain percentage of household income.  Franklin Roosevelt said it best. “No tax should be levied upon the people that is not based on their ABILITY to pay”.  NY will so be like Calif if we do not prevent it.

Alex R. in Merrickon June 10, 2009 at 06.05 pm

Tom,

As you know,..NY has the highest migration rate,..50% Higher than the 2nd Highest in Mass.
This will increase as unemployment benifits end soon.


Please help bring these property taxes down.

Annie ( Property Demand ) Wagner in United State on October 07, 2009 at 09.34 am

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