From Buffalo's Business First

Tuesday, February 12, 2008
10:16 AM EST
Report shines different light on 'STAR'Business First of Buffalo

http://buffalo.bizjournals.com/buffa...l?surround=lfn

New research from the Public Policy Institute indicates New York state's STAR program is not lessening the property-tax burden as hoped.

Albany-based PPI, part of the Business Council of New York State Inc., said that local property taxes climbed to $37 billion in 2005, pushing the per capita hit to $2,303 -- the highest figure in the nation and more than double the national average.

That is the year for which the most recent data from the state comptroller's office is available. Property taxes increased by an average of 3 percent from 1995 to 2000 and an average of 7.1 percent between 2000 and 2005, the report said.

The STAR -- School Tax Assessment Relief -- program was instituted by the state in 1998 to put a drag on property tax rates but the PPI report said doing so has only accelerated spending by local school districts. The state is expected to spend $5 billion this year on STAR.

In addition, STAR offers no benefits to businesses across New York, which kick in 30 percent of school property taxes.

The PPI report -- available at www.bcnys.org -- suggests putting a cap on STAR and local property taxes.

Gov. Eliot Spitzer has formed a task force charged with making recommendations to curb property taxes in New York state.

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Those of us who studied this issue have been saying this for years.