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NYC Mayor to extend Property Tax Relief

While many New Yorkers are speculating whether or not Michael Bloomberg will run for President, he says he's not. He is focused on the city's business.

Mayor Michael R. Bloomberg delivered his seventh annual State of the City address yesterday in Queens, outlining his plans to expand an already sweeping second term agenda while making the tough spending decisions that an uncertain economy requires.

The Mayor Announced that the Administration will:
  • Include an extension of the 7 percent across-the-board property tax cut in next week's preliminary budget;
  • Continue tax relief with a $400 property tax rebate to all homeowners;
The 7 percent cut was passed when the city had an estimated $4 billion in surplus, from record profits on Wall Street and real estate tax revenues from the "hot" real estate market.
Bloomberg's 7 percent property tax cut was a one-year reduction that would only continue if the city could afford it. However, he also built the reduction into every year of the city's four-year financial plan.
One of my first blog posts from July 2006 was about the city's budget surplus from fiscal 2006. I remember the Mayor saying that he expected real estate tax revenues to decline since he thought property values would go down about 10% in 2006 from from 2005.
Mayor Bloomberg prepared for the tax revenue decline by saving a portion of the surplus for future budgets when the local economy will not be as strong. While property values did decline in 2006 they went back up in 2007.
While the budget and tax cuts are still preliminary most real estate professionals, elected officials, home owners and new buyers are hoping the Mayor will be able to balance the budget and keep the property tax cut still in place.
For the complete Press Release

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