Property Tax Relief is Within Reach...
WHAT IS the property tax Circuit Breaker?
The circuit breaker is sometimes called the “individual's tax cap."
It is a tax break or rebate based on need. A circuit breaker would essentially cover the portion of a homeowner's tax bills that exceeds a reasonable share of their household income, usually in the 6 - 9% range.
Renters, who pay taxes indirectly through the landlord, may also qualify.
Circuit breaker relief is a well-established system used in some 35 states. We even have it in New York, but the household income limit ($18,000), established in the 30-year-old legislation, is clearly outdated.
There's a 4-year phase-in for relief in consideration of the state's economic challenges. In the first year, families with household incomes up to $100,000 ($250,000 when fully phased in) will receive relief.
Circuit breaker relief does not shift the property tax burden to other property owners. The cost is spread broadly among all state taxpayers, including those benefiting from the measure.
WHO BENEFITS from the Circuit Breaker?
The truly overburdened homeowner! It limits the individual homeowner's tax burden by indirectly off-loading part of the school and municipal funding costs to the state.
WHAT DOES the Circuit Breaker DO?
The Circuit Breaker (individual property tax limit) would link the individual's property taxes (school, county, local) to his/her income, then cut the tax burden on a 4-year phase-in schedule.
How Does the Circuit Breaker WORK?
Once the homeowner's property tax exceeds a certain percentage of gross income, the homeowner is entitled to tax relief -- the full property tax bill must always be paid upon receipt, but the homeowner will see relief either as a credit on his/her state income tax or as a refund check.
For details, see our Circuit Breaker Tax Calculator