ALBANY — With residents fleeing to cheaper tax havens, state lawmakers —

especially senators — have returned to a reliable election-year mantra: property tax

relief.

So how serious — and helpful to the wallet — can they be when the state faces a

$9.2 billion deficit?

"It's the primary objective," said Sen. John L. Sampson of Brooklyn, the Senate's

Democratic Conference leader.

But taxpayers shouldn't hold their breath waiting for direct property tax relief, such as

rebate checks, since senators are getting little support from others in state government.

The state is too deep in the red to afford direct assistance to property taxpayers, Gov.

David A. Paterson said last week.

The Assembly is focusing on restoring as much money as he can from the $1.4 billion in cuts

Paterson and Senate Democrats proposed for education.

"Let's be very clear. Education aid is property tax relief," Assembly Speaker Sheldon

Silver, D-Manhattan, said of money the state can steer to districts to help them lower the

reliance on property taxpayers.

The debate has several dimensions. And various obstacles prevent comprehensive, lasting

relief.

Senate Democrats, who last year approved a budget that killed the $1.5 billion STAR rebate

check program, have passed a property tax relief effort worth more than $1 billion for about a

million property owners.

They want to provide direct aid to taxpayers, not unlike the STAR rebates, this time based

on income levels — sometimes called a circuit break program. Who wins and loses under

this approach depends on income and the level of property taxes.

Under one Senate Democratic plan, a family with a $50,000 income would be responsible for

the first $3,500 of property taxes, Senate sources said. After $3,500, the state would pick up

10 percent of the costs. Those with tax bills of less than $3,500 would get no break, unless

they were senior citizens.

A family with a $100,000 income level would have to pay the first $7,000 of a property tax

bill. The state then would pay back 30 percent of anything over that.

But the price tag of more than $1 billion makes such a plan difficult this year.

Senate Democrats are working behind the scenes on the assumption that the budget for the

fiscal year that began April 1 will incorporate property tax help. Deputy Senate Majority

Leader Jeffrey D. Klein, D-Bronx, says he believes the budget can provide property tax relief

and restore money for education, a claim questioned in the Assembly.

"Tell us where the money is, and we'd certainly love to dedicate money to a circuit breaker

[tax plan]," Silver said.

Enter borrowing. The Senate already proposed borrowing $700 million, and the Assembly

suggested $2 billion to help lower the overall deficit. The loans could help fund everything

from property tax rebate checks to restoring some cuts in school aid, lawmakers say.

Fiscal watchdogs have howled at the prospect of borrowing for election-year gifts.

Paterson, who previously has pushed property tax cuts, says borrowing to pay for property tax

cuts is a shell game.

"It's the ultimate bait-and-switch because at the same time we're making cuts to the school

districts, which is what's driving the property tax up. So it's adding and subtracting at the

same time," he said of cutting school aid while borrowing to give tax rebates.

Instead of direct state money for property taxpayers, Paterson called for focusing on

limiting the growth of local property taxes imposed by all units of local government. Senate

Democrats have pushed a limit only for school districts.

Under one plan, schools would be prohibited — unless a certain percentage of voters

say otherwise — from raising taxes more than 4 percent annually, or 120 percent of the

inflation rate, whichever is lower. Another idea kicking around would limit localities' annual

spending growth levels.

Critics, led by teachers unions and many school districts, say voters are the ultimate

property tax cap. Except in Buffalo and the other Big 5 city districts, they can vote down a

budget. If a budget's defeat forces a school district to resort to a contingency budget,

spending cannot increase in the following year, the state Education Department says.

In this election-year environment, Republicans question the motivation of Senate Democrats.

Democrats, they note, are led by lawmakers from New York City, which has far lower property

taxes than other parts of the state, in part, because it has an income tax to help fund

schools. From 2006 to 2008, the median property tax bill in Queens was $2,650 — about

$250 less than the average in Erie County and about $5,700 less than in nearby Westchester

County, according to the Tax Foundation.

Property tax pain

Upstate and suburban New York City bear some of the heaviest property tax burdens, including the percentage of income that goes for property taxes

CountyProperty tax*Value of home*Income for taxes*

Erie$2,901$113,6004.65%

Niagara$2,799$94,9004.90%

Monroe$3,644$126,3005.46%

Onondaga$3,076$120,3004.58%

Westchester$8,404$581,9007.55%

Nassau$8,306$507,5008.00%

Rockland$7,798$496,9007.61%

Manhattan$3,895$824,8002.78%

Staten Island$2,674$471,3003.07%

Queens$2,647$492,2003.65%

Brooklyn$2,635$544,5003.59%

Bronx$2,255$387,6003.38%

*—median figures for 2006-08

Source: Tax Foundation

The Senate Democrats' talk of property tax relief is all about the November election, the

GOP insists, as Democratic leaders try to help vulnerable colleagues from upstate and Long

Island, including Sen. William T. Stachowski of Lake View, curry favor with voters.

"It's to protect their upstate Democrats," said Sen. George D. Maziarz, R-Newfane.

Senate Democrats from New York City say they understand how property taxes are contributing

to the state's population loss and helped increase home foreclosures during the recession.

"If you go through most of the state, what you hear from the people is they have four

issues: The first three are property taxes," said Sen. Liz Krueger, a Manhattan Democrat and

vice chairwoman of the Senate Finance Committee. The fourth issue, she said, varies by region.

Krueger said she could favor a spending cap for localities with an expiration date to

determine how such a program would work.

Few in the Capitol expect approval of a plan that would give residents more than a minor

down payment on major property tax relief. But nearly a month into the stalled budget talks,

Senate Democrats insist they are holding firm.

"I don't think Senate Democrats could have been clearer: Property relief is our priority in

this budget," Klein said.