Legislature OKs Property Tax Relief Plan

A property tax relief plan has been approved by the state legislature that will be worth an average of $250 to every homeowner whose taxes go directly to support schools.

In New York City, where the income tax provides the money to support schools, the new tax relief benefit would come in the form of an income tax credit for homeowners and renters.

The income tax credit for married couples would rise to $230 from the present $125 and for individuals to $115 from $62.50. Seniors would receive a larger benefit, an average of $365.

Governor George Pataki, who blocked a similar plan when it was proposed as part of the budget, reportedly will sign the new plan into law. The governor had proposed his own plan, which would have given school property tax relief only to homeowners outside New York City and only in school districts that agreed to cap spending increases at 4 percent a year.

Under the legislature's original plan, rebate checks would have been sent to homeowners before the November elections. The new plan will come as an income tax credit, but homeowners can apply to receive a check in the fall as an advance on the tax credit.-John Toscano