Personal Taxes

Evaluation: NYS personal earnings tax is greater than double the nationwide common | State

(The Center Square) – Government agencies across New York state levy more than double the national average in income taxes, according to a recent study.

Pew Charitable Trusts, a Philadelphia-based think tank, was recently released a national analysis that examined how local governments levy taxpayers’ money from state to state.

On average, government agencies across New York State derive 15% of tax revenue from income tax. According to Pew, the national average is 7%.

Governments across New York state also levy more general sales taxes. Pew researchers say 20.8% of the state’s tax revenue comes from this category, compared to the national average of 16%.

Property taxes are one area in which New York state follows the rest of the country. Pew’s analysis shows that 47.2% of the tax money raised comes from the source, while the national average is 61%.

New York state was on par with the rest of the country in the miscellaneous category, where 17% of taxes came from sources other than the big three. The national average is 16%. Alcohol and beverage licenses are some of the examples of other sources of income.

Jeff Chapman, director of public financial health at Pew Charitable Trusts, recently analyzed New York in a review of state policies regarding local tax restrictions at the county and county levels. Property tax revenue growth is capped based on various criteria, including the previous year’s inflation rate.

“The state also sets a constitutional limit on total property tax revenue in a single year, which is currently set at 1.5 to 2.5 percent of property value,” Chapman said in the analysis.

Local and county governments that exceed the threshold can have repercussions when it comes to receiving disbursements from another important source of income – government financial contributions.

“When a place crosses the border, the state withholds its aid payments to the place for the excess amount,” said Chapman. “Since the limit depends on property values, it fluctuates with the local housing market, which means that a drop in value can bring a community closer to its limits.”

The various tax structures across New York State were a topic of conversation earlier this year when Governor Andrew Cuomo and lawmakers drew up a budget for 2021-22.

Peter Baynes, executive director of the New York State Conference of Mayors and Community Officials, urged Albany lawmakers to work with city and village officials as federal stimulus funds and other sources are managed locally.

“The pandemic has placed exceptional service and tax pressures on our state and local governments,” Baynes said wrote in March. “Now is the time to work more closely than ever before so we can rebuild New York and every church that makes up the Empire State.”

Cuomo and lawmakers also praised the approved 2021-22 budget and the tiered tax structure that drew sharper boundaries between high earners and residents in other categories.

State leaders have largely focused on the cuts in middle and low income earners rather than the people at the top of the spectrum facing increases.

Speaking of the approved budget for 2021-22Senate Majority Leader Andrea Stewart-Cousins ​​said, “I am proud that this household is delivering on the promised income tax cuts for the middle class. The Senate majority has fought long and hard to bring this relief to homeowners, especially those who pay the highest amount of their income to their property tax. “

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