We finally have a tax cap on our real estate taxes in New York and the opposition is frantic to stop it. A story appeared in Newsday yesterday entitled, Tax-cap raises municipal bonding issues A top Cuomo aide said today, “That Newsday story on bonding is bogus. The opposition to the tax cap is desperate…”
To quote from Newsday’s story yesterday: ALBANY — Recently filed documents show that lawyers representing municipalities preparing to borrow money are raising questions about whether New York’s new property-tax cap will face legal challenges.
In Great Neck’s latest bond prospectus, lawyers for the village called it “likely” that the tax cap “will be subject to judicial review to resolve constitutional issues.” Bond filings in the last two weeks for Greene County, the city of Buffalo and other municipalities raised similar questions.
Gov. Andrew M. Cuomo’s administration said the tax-cap law had been thoroughly reviewed by counsel and that questions about it withstanding legal challenges were without merit.
At issue is a clause in New York’s constitution that says the State Legislature cannot restrict a local government’s power to levy property taxes to pay debt. At stake: billions of dollars of bonds previously issued to cover projects such as renovating government buildings, and the possibility that municipalities might have to pay higher interest rates.
No guarantee for revenue. Read here: Not so fast Newsday
Governor Cuomo said the cap is constitutional because the municipalities will have to pay their debts by cutting spending and costs.