In light of the governors announcement that the state would not tax upcoming federal rebate payments, Assemblyman Michael Fitzpatrick (R,C,I-Smithtown) called on the governor to extend the exemptions to include property tax rebate checks.
With New Yorks high tax environment forcing millions of residents to flee to surrounding states, it is troublesome that the governor even considered subjecting the federal tax rebates to the state income tax, said Fitzpatrick. The governor should be re-evaluating his spending priorities and working to alleviate the tax burden, rather than focusing on a non-issue. I call on the governor to extend the income tax exemption to include the property tax rebate checks. Currently, the economy is on a downward turn, and it is critical that the state do everything in its power to allow homeowners to keep more of their hard-earned money. Until we implement a property tax cap, rebate checks are the only tax relief and overburdened homeowners deserve to keep the full amount of their rebate, not be forced to give a percentage back to the government when they file their income taxes.
Last session, Assemblyman Fitzpatrick and the Assembly Minority Conference introduced legislation to ensure that property taxpayers retain all the savings associated with the Middle Class STAR Rebate Program. Currently, when an individual files their New York state personal income taxes, they must claim the income they receive from their rebate check. The legislation would exempt the rebate check from this requirement. The bill also establishes a Blue Ribbon Commission assigned with the task of recommending reforms to the property tax system.