By JAMES FINK
jfink@bizjournals.com | 716-541-1611

Gov. Andrew Cuomo said his administration's success in getting property tax cap legislation passed in Albany means a landmark decision that will aid New York home-owners and businesses alike.

He selected a local subdivision as the backdrop for his ceremonial signing of the bill. Cuomo has made other ceremonial signing stops around the state after it was finally signed June 24.

"New York will not have a bright future if it remains the tax capital of the nation," Cuomo said Tuesday at a home in Lancaster.

The bill limits the amount that municipalities can raise the property tax to 2 percent annually or the rate of inflation - whichever is less. For local communities to override the cap, it must be approved by 60 percent of voters.

This was one of the first legislative items Cuomo tackled after taking office in January. It has been discussed on and off by Albany lawmakers since the 1970s.

Standing on the front lawn of Ian and Jennifer Martin, the governor said the couple currently pays $6,000 annually in property taxes. Erie County's median property tax bill is $3,990, or 108 percent higher  than the national average of $1,917. The median property tax bill in New York state is $3,755 - nearly 96 percent higher than the national average.

While the tax cap has been praised by business groups and property owners as a good start, some municipal groups and school boards have stated that it may force them into making draconian cuts to services.

Cuomo said he doesn't buy that argument, however.

"For too long, everyone viewed the taxpayer's pocket as the ultimate ATM machine," he said. "We need governments to be more cost efficient."

The tax cap was necessary, he said, noting that property taxes in the state rose  73 percent between 1998 and 2008.

He noted that in recent years, property taxes have risen by as much as 8 percent annually.

"Where is the homeowner going to get that 8 percent?," he said. "Their paychecks haven't risen by 8 percent."

The residential development community, meanwhile, sees the cap as a much-needed boost.

"It will help us become more competitive," said Joseph McIvor Jr., executive vice president of the Buffalo Niagara Home Builders' Association.

Sen. Patrick Gallivan, former Erie County sheriff, said the cap is a "good start."

Gallivan said when he was campaigning last fall, he heard lots of  complaints from voters about high property tax rates. He describes the current property tax structure as "back-breaking."

"The 2 percent cut is a good start and very meaningful, but we still have a long way to go," Gallivan said.

Cuomo covered several other topics with reporters during his visit.

• He dispelled online rumblings that he might replace Vice President Joseph Biden on next's year Democratic ticket.

His name has been mentioned as a possible replacement for Biden, if President Obama decided to make  a change. The Biden rumor is nothing new in Washington or national political circles, nor is Cuomo's name as a possible replacement.

"That's just political chatter," Cuomo said during his appearance in Lancaster. "I'm staying focused on helping the people of the state of New York."

Since January when he was installed as governor, he has been able to get some key pieces of legislation he favors through lawmakers, no small task for any elected leader these days.

Cuomo dismissed the Biden rumors as just that: rumors.

He also downplayed any thought of running for president in the 2016 election.

"I'm just not going to engage in political chatter," Cuomo said.

• He said former Assemblyman Sam Hoyt, who resigned last week to take over a top spot in the Buffalo office of Empire State Development Corp., was an obvious choice for the position by many.

"He knows how Albany works and he knows what Buffalo needs," Cuomo said.

• He also reiterated his belief that school district tax dollars should be spent on educating students, not on salaries of $200,000 and up for superintendents and other top administrative officials.

Cuomo first made that point during a February visit to Daemen College in Amherst.

"Unfortunately, we've seen a tremendous growth rate in superintendents and administrative personnel and not teachers," he said.