Tax relief is proposed for valley
Kelly's plan: Break for high property taxes

By Anthony Farmer Poughkeepsie Journal January 18, 2006

FISHKILL — High property tax bills could translate into lower income taxes under a plan crafted by U.S. Rep. Sue Kelly, R-Katonah.
The proposal is aimed at providing relief to Hudson Valley residents, and other states with high property taxes like New York. Kelly unveiled it during a press conference at her office in Fishkill Thursday.
Kelly's legislation, billed as the Homeowners Tax Relief Act, would provide an income tax deduction for residents whose property tax bills are above the national average. People would be able to deduct the amount they pay above the national average in property taxes, thereby lowering their federal tax bill.
An average Hudson Valley family of four earning $55,000 a year, and paying $3,880 a year in property taxes, would save just under $1,000 on their income taxes, under the plan, according to Kelly's office. Those numbers are based on figures from the U.S. Census Bureau and the state Comptroller's Office.
"This is an additional tax deduction that will allow people to get something back," Kelly said. "We've got to develop ways to allow taxpayers to keep more of their money in their pockets and not send it to Washington."
The deduction would apply to those who itemize their income tax deductions, as well as those who use the standard deduction. The cost of Kelly's plan was not immediately clear.
Kelly said she is seeking support from other congressional representatives and expects to find it on both sides of the aisle.
Hopewell Junction resident Clark H. Josephs said he had no problem with Kelly's proposal, but doubted the federal government would be eager to cover its cost.
A local resident for 30 years, he and his wife have two grown children and he is close to retirement. But he said repeated property tax increases make it feel as if he is being forced out of the area.
"We're getting hard-pressed now because raises are few and far apart; the cost of living has gone out of sight," Josephs said. "I should be seeing considerable relief by now."
Against panel's reforms
Kelly's proposal comes after a presidential panel late last year recommended eliminating the state and local income tax deduction and the mortgage interest deduction as part of tax reforms aimed at simplifying the federal tax code.
Kelly on Thursday reiterated an earlier call for Bush to oppose the panel's recommendation to eliminate those two deductions for homeowners.
"That would hit every local family," Kelly said of the panel's recommendations.
The congresswoman also brushed aside questions about her re-election campaign. While confirming she planned to seek another term in Congress, she said it was too early to discuss the one Republican and five Democrats who have also stepped forward to seek the 19th district seat, which includes most of the southern half of Dutchess County.
"It's more important for me to focus on my job," Kelly said. "I am not going to focus on campaigning until we get into the campaign season."

Anthony Farmer can be reached at apfarmer@poughkeepsiejournal.com

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