New York Governor Paterson Issues Executive Order To Help Reduce Property Taxes In New York

Executive Order Takes First Step Towards Property Tax Relief by Establishing Measures to Evaluate Costs of Mandates on Local Government

April 27, 2009 -- New York Governor David A. Paterson today took a first step towards providing real property tax relief to New Yorkers by issuing Executive Order No. 17, which establishes measures to evaluate costs of mandates on local governments.

Article continues below...

The Executive Order, signed by Governor Paterson today, represents the first step in a broad mandate relief agenda that he will push during the current legislative session. It will ensure an increased flow of information in an effort to make better decisions about the impacts of proposed legislation and regulations on property taxes for New Yorkers. The Executive Order applies only to regulation and legislation from the Executive Chamber or State agencies.

“It’s time to put the brakes on the spiraling cost of property taxes by taking a close look at unfunded mandates that are handed down from the State to local governments, and in turn drive up the cost of property taxes for New Yorkers across the State,” said Governor Paterson. “This Executive Order will provide us with more detailed fiscal information about the effects of proposed legislation and regulations. By having more detailed information earlier in the process, we will be able to better evaluate possible costs associated with regulations and our own program and departmental bills to ensure that we are making responsible and cost effective decisions for the residents of our State.”

The Executive Order establishes guidelines for State agencies including submitting a full accounting of the fiscal impacts of proposed legislation earlier in the process of developing bills, requires a local fiscal impact statement to accompany legislation sent to the legislature, and requires agency review of existing regulations to determine potential ways to reduce the fiscal impact of existing mandates on local governments by December 1, 2009. Some of this information is already required under current rules.

In December 2008, the New York State Commission of Property Tax Relief, chaired by Nassau County Executive Thomas R. Suozzi, submitted a final report to the Governor. One of the Commission’s core recommendations was reducing the burden of excessive mandates. Governor Paterson’s Executive Order aims to fulfill one aspect of that recommendation by providing a complete accounting of the fiscal impact that mandates have on local governments.

Nassau County Executive Thomas R. Suozzi said: “This is a positive step by the Governor consistent with our Commission's recommendation. Now we look forward to the State Legislature and the State Education Department joining the Governor and enacting similar mandate transparency initiatives and mandate relief that would more broadly and positively impact all local governments, including school districts.”

Westchester County Executive Andy Spano said: “Governor Paterson’s Executive Order is a victory for property taxpayers across the State. For the first time, a Governor truly understands the affect that State mandates have on property taxpayers. With this Executive Order, he is asking his State agencies to reach out to counties, local governments and schools to find out just what financial impact these decisions will have before they are made. This will be a tremendous help to property taxpayers statewide.”

New Yorkers are burdened with the highest local taxes in the nation – 78 percent above the national average, with property tax levies rising at more than twice the rate of inflation and salary growth. Outside of New York City, property taxes account for 76 percent of the local tax burden, and eight of the top ten counties with the highest effective property tax rates in the nation are in Upstate New York – Niagara, Monroe, Chautauqua, Wayne, Oswego, Onondaga, Erie and Steuben Counties. At the same time, Westchester, Nassau and Rockland Counties are in the nation’s top ten in terms of household taxes.

Click here to downlaod a copy of Executive Order No. 17.

Source: New York Governor