State Assemblyman Fred W. Thiele, Jr. (I, D, WF – Sag Harbor) announced he helped pass a 2014-15 state budget proposal that includes tax relief for hardworking families, lowers utility bills and lowers the cost of child care (E.914). Overall, the Assembly budget proposal cuts taxes by $2.3 billion when all programs are fully implemented.

“Lowering taxes in a responsible way gives families real relief,” Assemblyman Thiele said. “The Assembly’s budget plan targets tax cuts to New Yorkers who need it most.”

Lowering taxes for homeowners and renters

The Assembly budget proposal delivers $1.1 billion in property tax relief. The proposal would apply to homeowners making less than $200,000 per year and would base property taxes on the ability to pay, not property value. Unlike the governor’s budget proposal, there are no strings attached to our “circuit breaker” proposal. A locality’s efforts to consolidate services or stay under the property tax cap would have no bearing on receiving a property tax cut.

“Homeowners need tax relief, no ifs, ands or buts,” Thiele said. “Property tax rates are calculated in a completely unfair manner. Income should be the determining factor in how much a family pays in taxes, not arbitrary property values.”

Additionally, the Assembly budget rejects the governor’s proposal to eliminate the income threshold inflation adjustment for Enhanced STAR eligibility which is slated to hit seniors in the 2015-16 school year.

“Under the executive’s budget proposal, seniors whose incomes have risen slightly could no longer qualify for Enhanced STAR,” Thiele said. “The Assembly will fight this proposal to ensure seniors continue to receive the vital property tax relief they need to be able to stay in their homes.”

The Assembly budget also provides a personal income tax credit for renters. Renters with incomes up to $200,000 would receive 60 percent of the excess of a portion of their rent paid over a certain percentage of income. This measure would ultimately save renters $600 million.

Making New York more affordable for families

In last year’s budget, the Assembly championed the phasing out of the 18-a utility surcharge on energy bills, which was set to end in 2017. Our proposal fast-tracks this plan, eliminating it entirely for residential customers this year, saving families $200 million annually.

“Sadly, many working families and the elderly are forced to choose between paying heating bills and putting food on the table,” Assemblyman Thiele said. “Eliminating the utility surcharge will help ease the strain on already tight family budgets.”

Making child care more affordable

The Assembly budget proposal includes $95 million to improve the state’s child care system to help working parents find affordable, reliable care that allows them to continue working. The Assembly’s plan includes:

• $70 million for capping the copayment for families receiving subsidies at 20 percent or less of income over the federal poverty level;
• $11 million to provide support for 875 additional child care slots, with 3,500 phased in over a four-year period;
• $6.3 million for local social services districts to reimburse care providers for at least 12 absences per child in a six-month period;
• $5.3 million to extend the rate of reimbursement for an infant to include all children up to 2 years old to align payment rates with licensing requirements for care providers; and
• $2.5 million to disregard the earned income of teenagers under 18 in the household for the purpose of determining child care eligibility.

“New York is facing a child care crisis. Working parents are struggling to find affordable, quality care for their children,” Thiele said. “The Assembly proposal would improve our child care system, alleviating stress and giving parents peace of mind.”

Reforming the estate tax

New York is one of only 14 states that still has an estate tax. In an effort to reform and reduce this financial burden, the Assembly budget would increase the estate tax threshold from $1 million to $3 million over two years, raising the amount of income that can be excluded from this tax. In a separate piece of legislation, Assemblyman Thiele support raising the estate tax threshold to $5 million.

“New Yorkers deserve the peace of mind that everything they worked so hard for throughout their lives will be passed on to their families,” Thiele said. “The current level at which estates are taxed puts an unfair burden on too many families – many of whom own farms or small businesses. It’s time to reform the estate tax.”

Providing relief to local governments

The Assembly budget proposal also includes an $80 million increase in Aid and Incentives for Municipalities (AIM) funding for cities, towns and villages to help struggling local governments provide the essential services residents depend on.

“Between the tough economy and rising pension and health care costs, many municipalities have been struggling to balance their budgets, leaving taxpayers to make up the difference,” Assemblyman Thiele said. “AIM funding will help give localities the ability to continue providing the vital services residents rely on, without overburdening taxpayers.”

The Assembly budget also increases funding by $40 million over the executive budget for the Financial Restructuring Board, which assists local governments in improving their fiscal management, with the goal of saving taxpayer dollars.

Additional tax credits

The Assembly budget also provides tax relief by:

• extending the non-custodial Earned Income Tax Credit; and
• extending and increasing the Low-Income Housing Credit.