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."

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