NYC’s budget to speed up tax relief for lower income homeowners
More than 6 million middle-income taxpayers in New York are set to receive a faster tax rate reduction as part of the state budget finalized this weekend.
At the same time, the budget includes a new property tax relief credit that had been backed earlier this year by Gov. Kathy Hochul, as well as relief for small businesses.
Lawmakers finalized the state budget over the weekend, giving final approval to a $220 billion spending plan.
“This budget provides much-needed tax relief for thousands of small businesses and millions of New Yorkers and reduces the tax burden for those who need it most,” Hochul said. “In a post-COVID-19 era, New Yorkers will recover from the pandemic and lead the nation in an economic resurgence, and I applaud the legislative leaders for their collaboration to help ensure this historic budget leaves no one behind.”
The budget accelerates an eight-year phase-in for cutting personal income taxes which began in 2018 and was scheduled to be completed by 2025. The budget implements the cut to take effect this year.
At the same time, lawmakers and Hochul agreed to a new property tax credit for low and middle-income households. Under the program, the basic STAR exemption and credit beneficiaries with incomes below $250,000 and Enhanced STAR recipients are eligible for the property tax rebate.
Outside New York City, the average benefit is expected to be nearly $970, affecting 2 million households. The average benefit in New York City will be $425.
For lower-income homeowners, those earning below $75,000, the statewide average will be nearly $1,050.
At the same time, small businesses are line for $250 million in relief for COVID-19 related investments such as expanding space to accommodate social distancing, HVAC equipment and expenses related to outdoor space and machinery for contactless sales.
