WEINER OFFERS PLAN TO MAKE STATE PAY TAXES ON THE PROPERTY IT OWNS IN THE CITY

NOW: STATE PAYS FULL TAXES ON ONLY 12 OF 1,000 PROPERTIES (AND PUBLIC AUTHORITIES AREN’T MUCH BETTER)

WEINER PLAN: $1.5 BILLION IN NEW CITY REVENUE TO RAISE TEACHER PAY, CUT MIDDLE CLASS TAXES, EXPAND MIDDLE CLASS HOUSING 

New York City – Today, Rep. Anthony Weiner (D-Queens & Brooklyn) unveiled his plan to generate $1.5 billion in new revenue for New York City by making the State and public authorities finally start paying taxes on the property they own in the City. This week, Weiner has offered specific plans to reform the city budget and provide middle class tax relief.

New York State and public authorities like the Metropolitan Transit Authority (MTA) and the Empire State Development Corporation (ESDC) own almost 5,000 properties in New York City, but pay property taxes on almost none of them.  That costs the City an estimated $1.5 billion in revenue every year—funds that could be used to cut taxes on the middle class, raise teacher salaries, and expand middle class housing.

REFORMING THE BUDGET, CUTTING WASTE AND TAXES:

Fight to Make State Compensate City for Lost Property Tax Revenue – As Mayor, Weiner will take the fight to Albany, fighting to make the State and public authorities like the MTA and the ESDC pay taxes on the property they own in New York City.  Of almost 1,000 state owned properties in the City, the state pays full property taxes on only 12.  New city revenue: $1.5 billion.

More Transparency On Property Tax Exemptions – As Mayor, Weiner will compile an annual survey, in language that anyone can understand, listing all the property tax exemptions and PILOTs (Payments in Lieu of Taxes) given to businesses, individuals, and government entities in the City, so that average New Yorkers can assess the impact and decide whether they are sound policies. 

Identify Underused State Owned City Property – The State owns $12.9 billion worth of property in the City.  As Mayor, Weiner will charge the City Planning Commission with producing an annual report on whether the State is maximizing its City assets, or letting them lie underused or neglected.

Cut the Bottom 5% Worst Performing Programs in the City Budget Every Year – Adding City revenue is important, but so is cutting wasteful spending.  Weiner’s budget plan calls for both.  As Mayor, Weiner will cut or reprogram the bottom 5% worst performing programs in the City budget—every year.

Cut Taxes on the Middle Class by 10% – The centerpiece of Weiner’s tax cut and budget plan is a 10% tax cut on the middle class.  As Mayor, Weiner will cut income taxes for every New Yorker making $150,000 or less a year, by 10%. 

“I have a comprehensive plan to reform the budget and cut taxes on the middle class so that we can give teachers the pay raise they deserve, build more middle class housing and still ease the tax burden on hard working New Yorkers,” said Rep. Weiner. “That takes smart choices, fiscal discipline, and a willingness to fight for what we deserve.  I’ve done that in Congress, and I’ll do it as Mayor.” 

In 2004, there were 987,851 properties in the five boroughs, worth $174.7 billion in billable assessed value.

But 57% of the assessed value of property taxes in the city was lost to full or partial tax exemptions. 

Sometimes property tax exemptions make sense. They can be used to encourage the development of things like non-profits, religious organizations, charitable and educational entities, for example. 

But the State and other public authorities have taken advantage of property tax exemptions in the City.

The State pays full property taxes on only 12 of the almost 1,000 properties it owns in New York City, costing the City at least $212.7 million in annual revenue.  Public authorities fail to pay taxes on most of the 4,000 buildings they own in the City, costing an additional $1.2 billion a year.

Sources:  City Project’s State of Distress Report, 2/05; Independent Budget Office.