WTC Records Folder 0122 label, 2001

NYC 9/11 Public Portal Document

Flynn, Barbara From: [email protected] Sent: Friday, December 28, 2001 10:50 AM To: [email protected] Subject: Hotel Tax Relief

Hi Barbara,

This e-mail is in response to the Deputy Mayor's conversation with Andrew last night. Bob requested the estimated cost of providing hotels with real estate tax relief for the January, 2002 payment. Hotels are scheduled to pay approximately $150 million for the second half of FY02'sreal estate tax on January 2, 2002. Deferring property tax payments- for all hotels for the six month period requested by the Hotel Association would cost approximately $1.5 million. Beyond forgone revenue, Izzy pointed out that deferring the January payment forhotels might raise cash flow) issues and would also set a precedent..? FYI-I previously advised Peter Piscitelli that absent state legislation or an extension of the Governor's Executive Order, the Department does not have the authority to waive statutory interest on any late real estate tax payments. Absent special state legislation for the hotel industry, the Governor could extended the Executive Order previously issued to cover the January payment. However, hotels would fall under the last of the Executive Order's criteria, which is very general and could apply to almost any business affected by the WTC attacks. Finally, we have received similar inquiries from downtown businesses (i.e., J&R Music) that were directly affected requesting deferral of the January tax payment and have advised that there is no tax relief in effect for January. Feel free to follow up with me or Izzy directly if you have any questions.

Thanks, Lisa

Visit the NYC Department of Finance online at www.nyc.gov/finance

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NYC-WTC 000136986