A new program to aid struggling homeowners with their property taxes and water and sewer bills is also expected to generate additional revenue for the city, according to the Wall Street Journal. The Lien Sale Reform and Authorization Act, approved by the City Council this week, allows the city to sell liens on two- and three-family homes with up to $2,000 in unpaid bills. The city has been making around $40 million per year off of lien sales since it began selling liens to investors in the 1990s, but until now, it has only been able to sell liens on debts of up to $1,000, and only on single-family homes. [more]

While some state officials say they’re concerned that Governor Andrew Cuomo’s proposed property tax cap could lead to a budget shortfall, the proposal has garnered support from New York City homeowners, according to the New York Times. The median property tax in New York state reached $3,755 in 2009, compared to the national median of $1,917, while five counties — Westchester, Nassau, Suffolk, Rockland and Putnam — have median property taxes upwards of $7,200. Michael McCall, a marketing professor at Ithaca College, said that the tax cap may become increasingly popular among homeowners who see the current system as unfair. [more]

The city may extend the deadline for developers of multi-family buildings aiming to qualify for the coveted 421-a property tax break in an attempt to jumpstart stalled construction projects across the five boroughs, according to the New York Times. The city upped its qualification requirements for the tax break several years ago on the heels of criticism that it had been giving away too much potential revenue through the incentive, but many developers had rushed to file their building permits before those more stringent requirements took effect in June 2008. Those who qualified for the 421-a under the old rules had to complete
their projects within three years. For many builders, that three-year
mark is now fast approaching. [more]

The State Senate voted 45 to 17 yesterday in favor of the property tax cap bill Gov. Andrew Cuomo proposed last week, and now the spotlight is shifting to the Assembly, where support for the measure is less than assured, according to the New York Times. Whereas Senate approval was expected — the chamber has passed limits on property taxes in recent years under both Democratic and Republican majorities — several Democratic Assembly members haven’t been as enthusiastic thus far, and were reportedly offended that Cuomo sprung the bill upon them with no advance warning last Friday to get it passed before today’s release of his executive budget. [more]

Once a popular initiative among homeowners and tax protest groups, Governor Andrew Cuomo’s property tax cap program is now drawing ire, according to the New York Times. The proposal, which Cuomo has not yet formally submitted, would limit the annual growth of property taxes at 2 percent or the rate of inflation, whichever is lower. But while many fiscal conservatives once supported the plan, opposition is growing, and some say that the resulting deficit from the cap would have to be covered through unexpected fees. [more]

New York City homeowners are slated to see their property taxes increase sharply next year, and owners of condominium and co-op apartments will likely be hit hardest, according to the Bloomberg Administration’s preliminary assessment roll, released Friday. The Wall Street Journal reported that taxes on condos are expected to increase by 9.6 percent, or an average of $490, while co-op taxes would rise by 7.5 percent, or $384. Single-family homeowners will see a 2.8 percent, or $107, tax hike. In Manhattan, that means average tax increases of $970 to $11,348 for condos and $594 to $9,351 for co-ops. [more]

With U.S. home prices down by almost a third from their spring 2006 peak, property owners are flooding city and state governments with tax appeals in a trend that’s sure to put even more downward pressure on already tight budgets, according to Businessweek. New Jerseyans filed a record 18,147 appeals during the last fiscal year, up 80 percent from fiscal 2007. Meanwhile, Atlantic City has used up its entire $26 million reserve for tax appeals, and the pending appeals on all casinos there have caused the city’s credit rating to drop to three levels above speculative grade, Moody’s Investors Service said last month. [more]

New York property taxes could be on their way up statewide, according to the Wall Street Journal. While Governor-elect Andrew Cuomo has pledged to rein in tax increases, capping property tax hikes to 2 percent a year, local officials across New York want to boost property taxes before he enters office. This is due in large part to budget shortfalls, which have been felt nationwide as well; according to the Empire Center for New York State Policy, a conservative policy group, property taxes would need to climb 3.5 percent to account for other costs. Cuomo, meanwhile, remains stalwart in his tax stance. [more]

The city’s Tax Commission is planning to start charging $175 per hearing from wealthy property owners with complaints about their property tax assessments, according to the Post. The fees will apply only to properties assessed for at least $2 million or for single condominium units for which their building’s total tax assessment is over $2 million. Owners will still be able to file free applications to maintain their rights or to waive hearings without paying the fee. Sources told the Post that the Office of Management and Budget expects an additional $700,000 per year in revenue from the new fee, which the agency said it will use to help cover costs and to “modernize the hearing process.” [Post, 6th item]

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More New York City single-family homeowners are balking at their property tax bills, according to the New York Post, after the Department of Finance stopped providing detailed explanations of how the taxes were calculated. The number of challenges to property tax bills spiked to 1,902 in 2009, up 37 percent from 2008, when just 1,389 such claims were granted. Council member James Oddo, whose district on Staten Island has an especially high number of claims, due to the borough’s larger segment of small home owners, has encouraged taxpayers to ask more questions before filing claims. “We explain to them about the process, and then people are dissuaded from challenging,” Oddo said. [more]