By Michael V. Cusenza
State Sen. Jose Peralta (D-East Elmhurst) recently introduced legislation that will provide a tax credit for tenants by increasing the eligibility levels of the current real property tax circuit breaker.
According to the Institute on Taxation and Economic Policy, a “circuit breaker” is a targeted property tax relief program that “protects taxpayers from a property tax ‘overload’ just like an electric circuit breaker: When a property tax bill exceeds a certain percentage of a taxpayer’s income, the circuit breaker reduces property taxes in excess of this ‘overload’ level. The actual tax circuit breaker was established about 30 years ago.
Under Peralta’s proposal, the maximum household income eligibility for tenants and homeowners will increase to a $75,000 ceiling from the current $18,000.
According to the bill, the eligibility level of the property value will increase to $200,000 from $85,000; and the tax credit will be set at a maximum of $800 for New Yorkers 65 and older, and $400 for people younger than 65.
“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,” Peralta said. “As the cost of living and the rate of inflation increase, we must ensure that the existing tax-relief measures keep up with the pace.”
