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State to De Blasio: Keep a Cap on NYC's Property Taxes

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State legislators want Mayor Bill de Blasio to set a cap on the city's property tax-rate in exchange for limiting the city's contribution to some other services like Medicaid, the Wall Street Journal reports. De Blasio was in Albany on Tuesday to argue against the cuts the state government had made in funding towards Medicaid and the City University of New York, but legislators instead grilled him on the increasing property taxes in the city.

While the rest of the state has a cap of two percent per year, New York is not required to adhere to that law. De Blasio argued that the city already contributed 60 percent of the state's revenue, and should not have to fork out any more funds, but legislators weren't impressed.

Some made a suggestion that if the city introduced a cap, the state would be amenable to provide more funding to Medicaid, according to the WSJ. The State Senate, which is controlled by the Republicans, even passed a resolution that would create a cap, but it is unlikely that it will pass muster in the State Assembly, which has a majority of Democrats.

Property tax revenue for the city is likely to increase by 5.8 percent for the next fiscal year going up to $23.8 billion, according to the New York Post

City Officials informed legislators that New York City already paid some of the lowest taxes in the state, and that setting a cap would greatly curtail the city's revenue stream.

State Lawmakers Urge Bill de Blasio to Cap Property-Tax Rate [WSJ]
· De Blasio fights Albany's bid to limit property tax increases [New York Post]
· All the Property Tax Coverage [Curbed]