WPCNR ALBANY ROUNDS. By John F. Bailey. August 22, 2008: The Circuit Breaker Bill passed by the Assembly  Tuesday of this week, lowered the tax relief proposed originally by Assemblyperson Sandra Galef's bill that had been the basis for the new bill the Assembly passed, and subject of an extensive analysis by WPCNR this week, showing the effects of eliminating the Middle Class STAR Rebate. The Middle Class STAR Rebate is preserved under the whirlwind rewriting of the bill. However, the tax relief has been cut substantially. WPCNR will provide an analysis of how it affects White Plains.

The new bill  was introduced for the first time in the Ways and Means Committee August 16, after WPCNR's interview with Assemblyperson Sandra Galef, the original sponsor of bill A01575.

The new legislation cleared the Assembly Tuesday after 5 days of being given life.

Taxpayers earning below $90,000, will be eligible for a refund of only 25% of their property tax bills exceeding 5% of their income, instead of the previous 70% in Assemblyperson Galef's original proposal. Taxpayers earning between $90,000 and $125,000, would receive a refund of 20% on property taxes exceeding 5% of their income, and taxpayers earning between $125,000 to $250,000 are cut down to 15%  of the property tax exceeding 7% ot their income--  down from the original 70%.

Renters now are included in  the tax relief, being allowed to a special tax reduction based on relationship of income and rent.

The gentry are profoundly affected by the Circuit Breaker Law the Assembly passed. Persons earning between $1 Million and $5 Million, will pay a new tax rate of 7.85% on all of their income; taxpayers with incomes above $5 Million would pay 8.6% on all income.

Signifcantly missing from the Assembly bill, Assemblyperson Galef introduced,  is the repeal of the Middle Class STAR Rebate, which Ms. Galef saw the Circuit Breaker replacing. Now the Circuit Breaker is in addition to the Middle Class STAR Rebate, though the "Assembly approved" Circuit Breaker puts significantly less of individual taxpayers' property taxes subject to the tax refunds granted by the "Breaker."