City raps gov bid to grab tax $

ALBANY — The de Blasio administration warns that a plan by Gov. Cuomo to divert a portion of new city property taxes to the MTA to help fund mass transit improvements would cost the city $290 billion over 35 years.

Known as value capture, the plan from Cuomo (inset) would send the money to the MTA by retaining a hefty portion of the new tax revenue generated when the city raises an assessment on properties in designated areas directly because of subway and rail service improvements in those areas.

Under current law, the city keeps 100% of the new taxes generated because of improved mass transit services.

“This proposal is only good for Andrew Cuomo,” said de Blasio spokeswoman Jaclyn Rothenberg. “He continues to usurp his power and find ways to beg, borrow and steal from New York City residents and subway riders.”

Under the proposal being discussed by state leaders, the city would lose out on 50% of the increased taxes resulting from all phases of the Second Ave. subway, the rebuilding of Penn Station and four new Metro-North stations in the Bronx.

The city says the plan under discussion as part of the state budget talks due to conclude by April 1 could hurt the city’s ability to fund services like public safety, education and social services.

The city also takes exception to a provision that the money going to the MTA through value capture is not even guaranteed to be used for transit capital projects within the five boroughs.

MTA President Patrick Foye has said “the (city’s) math is wrong and the assumptions are fatally flawed.”

He said under the plan now being discussed, the city would keep half of any new property taxes generated by subway improvements while the MTA would get the other half to help fund capital projects.