If you step back and think about it, why is Albany involved in these two issues: a real estate tax cap and rent control in New York City. Both affect local jurisdictions, not the State. How did the New York State Government get into the business of controlling local governments on local issues?
Not being an Albany insider, I did a little research.
It turns out that Rent Control dates back to WW2, when the Federal Government imposed price controls. In the 1950’s, the State government stepped into the Federal Government shoes. Since then, there have been certain changes for and against tenants and landlords, but, in general, there has been a bi-partisan consensus in Albany that the State should govern rents, especially in New York City. The Republicans favor extending the current rent laws; the Democrats want them strengthened for tenants.
At this moment on June 24, 2011, 5:17PM, the 1946 rent stabilization law has expired and tenants are unprotected for only second time in my lifetime. According to Harry’s comment below, they also lapsed in 1997 for a few days.
Maybe this is the moment to change direction and to give rent control back to local government, i.e., the New York City Government, and for the State to narrow its involvement in local affairs.
The tax cap is another example of State encroachment on local powers. The local governments don’t want a tax cap. They want to be liberated from unfunded mandates from the State Government and find their own way with union negotiations, pension schemes, healthcare benefits, reports and measures etc.
However, considering than 66 of the 150 members of the New York State Assembly represent New York City, 61 Democrats, 2 Republicans and 3 vacancies, and that they only need to find 9 allies to have an absolute majority in the Assembly (and elect their Assembly Speaker, the infamous New Yorker Sheldon Silver who has been the Speaker for 17 years and who can bring any New York City Mayor to his knees), perhaps the only realistic thing is to view New York State Government as an extension of City politics.
We know that Tom Abinanti has the conviction to vote against the tax cap.
I hope Tom Abinanti has the same conviction to vote New York State out of the rent control business and return that power to the local level. But given Sheldon Silver’s big stick — he controls the staff budgets of Assemblymen and their Committee appointments, only time will tell.
P.S. – New Yorkers don’t care about the tax cap, because New York City has the lowest real estate taxes per unit of market value in the State. A $1M co-op in NYC pays less than $3,000 per year while a $1M single family home in Westchester pays more than $30,000 per year. Never thought of New York City as a tax haven, did you. The income tax to real estate tax breakeven between New York City and Westchester County is at $1.5M per year. If you earn less than $1.5M per year, the taxes are lower in New York City.