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Peekskill Leaders Consider Override Of State Tax Cap

Peekskill officials are considering overriding the state tax cap for the 2013 city budget.
Peekskill officials are considering overriding the state tax cap for the 2013 city budget. Photo Credit: Art Cusano

PEEKSKILL, N.Y. — Peekskill leaders may choose to exceed the state tax cap with the 2013 budget.

To raise taxes above the tax cap, Peekskill would have to pass a local law, which would first require the city to hold a public hearing.

"With this presented budget, we're over the tax cap by about $120,000," Peekskill Comptroller Charles Emberger told Common Council members Monday night.

The proposed operating budget for the city for 2013 is $51,493,103, which would carry a property tax rate increase of 6 percent, or $12.16 per $1,000 in assessed value.

The current tax rate of $224.74 would be increased to $236.90. The average Peekskill taxpayer with an assessment of $10,000 would see an increase of $121.60 per year or $10.13 per month.

A 5.2 percent tax levy increase by the city would keep it under the state's 2 percent tax cap put in place last year by Gov. Andrew Cuomo. The city can exceed the 2 percent cap because of the number of tax levies and PILOT programs in the city.

The hearing could be scheduled but may not be necessary, Mayor Mary Foster said.

"The earliest we could have a public hearing is on Nov. 26, when we would also be discussing the council's adjustments to the budget," Foster said. "And based on the final budget that's being proposed, we may or may not need to have a public hearing about exceeding the cap."

The Common Council will vote to schedule the hearing at its Nov. 12 meeting.

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