Bloomberg not a fan of GOP’s proposed 30-year tax cap for landlords

June 06, 2011 02:54PM

The Bloomberg administration is ramping up its opposition to a GOP-sponsored Senate bill that would cap property taxes for apartment building owners whose tax abatements are about to expire, calling it “a large tax break dressed up as housing policy,” the Daily News reported.

The legislation, introduced by Senate Housing Committee Chair Catharine Young, would extend the now-expired 421-a tax abatement program for four years, while imposing a 30-year cap on property taxes for landlords whose abatements are expiring and who agree to keep 20 percent of their housing units affordable. In those cases, property taxes would be capped at 20 percent of the buildings’ rental income, and according to Bloomberg administration officials, the city would lose an estimated $2 billion in revenue as a result.

Bloomberg wants the 421-a program extended without the tax breaks, and his stance represents a rare departure from his support for Senate Republicans, to whom he’s donated hundreds of thousands of dollars.

Young said the bill is intended to preserve affordable housing and “provide a huge shot in the arm to the economy because it will create jobs and economic growth.” The Real Estate Board of New York also supports the Young-sponsored bill. [NYDN]