Oh Well, Whatever, Never Mind

If homeowners get a $400 tax rebate because property taxes were increased and renters get a $300 tax rebate because property taxes were increased, what exactly is the point of increasing property taxes in the first place? Oh well, whatever:

The City Council speaker, Christine Quinn, in her first State of the City speech today, will propose creating a $300 tax credit that about 1.1 million renters in New York City could collect as early as 2008.

The proposed credit would be available to tenants based on their income. A single person earning $43,000 a year or less, for example, would be eligible for the credit, as would a married couple with two children earning up to $75,000 a year. To receive the benefit, tenants would need to file personal income taxes with the city or state. Renters who do not owe taxes also would have to file their income taxes to get access to the credit.

“Over two-thirds of our residents rent their homes, and for too long they’ve been forgotten and ignored when it comes to tax relief,” Ms. Quinn will say today, according to an advance copy of a portion of her speech. “They’ve not benefited from the rebates or tax breaks owning a home can bring.”

. . .

A deputy research director of the Citizens Budget Commission, Elizabeth Lynam, said it is a good idea to give New York renters some financial respite, as they have been left out of tax relief packages for property owners. But she said restructuring the city’s property tax system so it does not place such a high burden on owners of commercial and rental properties would likely lead to a reduction in rent costs and provide wider cost savings for renters, regardless of their income level.

“That is less direct, but has the advantage of reaching a broader group,” she said. “If you just did it in the form of lower taxes, then landlords would pass along” the savings to their tenants.