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New York governor calls for permanent 2% property tax cap

New York

NEW York governor Andrew Cuomo called on the state legislature to approve a permanent 2 per cent cap on local property taxes, a policy that's been in effect for six years and is up for renewal.

"When they say New York is a high-tax state they're talking about the property tax, not the income tax," he said during a news conference in Albany.

"We did it six years. The sky is not falling. You can exercise fiscal discipline and restraint and survive."

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His comments came as the legislature faces an April 1 deadline to approve a budget for the 2020 fiscal year.

His spending plan proposes reorganising the Metropolitan Transportation Authority, including congestion pricing and Internet sales taxes to raise transit revenue.

A tax on yet-to-be legalised cannabis may not be ready by the deadline, Mr Cuomo said.

The governor also said he would favor a pied-a-terre tax - a levy on non-resident owners of luxury apartments - to raise more revenue.

Homeowners in 52 of the state's 62 counties pay average property taxes above the US$10,000 limit they are allowed to deduct off their federal income taxes under the law enacted by US President Donald Trump and the Republican-controlled Congress in 2017.

That cap could pressure homeowners to leave New York for states with lower property taxes, said Mr Cuomo. BLOOMBERG