A commission impaneled by Gov. Cuomo on Tuesday recommended freezing property taxes across the state for two years, slashing corporate and utility taxes and dramatically cutting the so-called “death tax” on inheritances.
Cuomo, who is running for re-election next year, generally embraced the $2 billion tax-cutting plan.
The panel was co-chaired by former GOP Gov. George Pataki, giving the plan a bipartisan-veneer.
New York already has a property tax cap that limits rate increases to 2 percent a year.
Property owners would see rates frozen for two years if local government remains within the two percent cap over that period and take measures to reduce expenses in year two.
The proposal also calls for providing a credit to reduce the burden on homeowners who dedicate a higher share of their income to paying property taxes. The corporate tax rate would be cut to 6.5 percent from 7.1 percent. The tax rate for upstate manufacturers would drop to 2.5 percent.
A surcharge on utility rates would be eliminated in 2014 for business customers instead of 2018 and be phased out sooner for residential customers.
In addition, there would be a big cut in the estate tax, which critics derisively refer to as the death tax. The tax would only be imposed on inheritances that exceed $5.25 million, up from the current $1 million exemption. And the inheritance tax rate would be trimmed to 10 from 16 percent.
Cuomo called the report “impressive” during the presentation at the State University at Old Westbury, saying lowering property, corporate and estate taxes will help will help spur business as well as provide relief to strapped homeowners.
Pataki called the report a “positive step.” But the former governor also suggested he preferred that state income taxes be reduced before the recommended date of 2018.
“That’s the single most important thing we can do,” Pataki said.
Cuomo argued that reducing “crushing” property taxes was more important.
The governor also said he would study the idea of granting tax relief to renters.