January 2001

N.Y. Governor Backs County Tax Breaks

New York Governor George Pataki announced earlier this month his advocacy of a targeted $230 million property tax as a national tax conference predicts fewer state tax cuts this year.

Pataki’s proposal, known as “Co-STAR,” would save farmers an average of $200 and elder taxpayers, those 65 and over, an average of $300 in county taxes per year. Pataki introduced his plan during his state of the State address.

“With Co-STAR, we can build on the tremendous success of our STAR program by providing county property-tax relief to those who need it most — seniors and farmers,” Pataki said.

Pataki’s announcement seems to buck a trend towards fewer tax cuts predicted by the National Conference of State Legislatures. The organization released a report in early January that said state tax cuts may become less plentiful in the coming fiscal year compared with those of recent years due to rising Medicaid costs, lower revenues from sales taxes, and a slowing national economy.

Twenty states report that tax cuts are likely to be considered in 2001 legislative sessions, compared with 31 states that cut taxes in 2000, said the report. A half dozen states are also considering tax increases for specific programs.

Overall, tax cuts are expected to exceed any increases, so the net state tax change is likely to be a reduction, although not of the magnitude seen in recent years.