What If Your Property Tax Was Based On Income?

What if Nyack's homeowners' property taxes were based on their income, and not property value?

It's called progressive property tax, and one Nyack resident is proposing the village seriously look into it.

At last Thursday's Village Board meeting, Nyack's Daniel Rostan approached village trustees with the concept.

"[With progressive property tax,] as your assets increase, you're taxed at greater portion of your value," he said. "Property taxes would self-regulate."

Rostan noted the concept saves new homeowners and low-income families from paying exorbitant property taxes.

Rostan's inspiration is Brookline, Massachusstts, where he used to live. Brookline adopted a progressive policy years ago when property taxes were increasing faster than citizens' incomes.

Switching to a progressive property tax system is not a decision that can be made solely on the village level—it requires state legislative approval—but Rostan believes the transition can begin in Nyack.

"I really believe that many Americans like the 'think globally, act locally policy,' but it's hard to do in this day in age," he said. "But there are things villages can do that are more than symbolic—they can create a reasons for people in other villages to speak up."

Rostan also expressed his belief that the concept is bipartisan, and encompasses a philosophy that appeals to both sides of the political spectrum.

"[Progressive property tax has] ideas at its core that are salient for Republicans and Democrats," he said.

The village board expressed interest in the proposal, and plans to investigate further, possibly by creating a task force.

"I find the proposal of progressive very intriguing," said Mayor Richard Kavesh. "I strongly favor progressive income tax."

Still, the idea is in its nascent stages—and there are already questions and hitches trustees are inquiring about.

"When there's a switch over [to progressive property tax], what happens to current homeowners?" asked village trustee Jen Laird White. "Are they immediately hit hard?"

"Does [progressive property tax] tax commercial properties at a high rate?" Mayor Kavesh added. "Our commercial rate is already substantially higher than our commercial rate… I could see this having a dramatic impact on our businesses."

Rostan noted the village would need to look into these issues before proceeding further.

"We need to demand Albany look into this seriously," Rostan finished.