NYC-WTC_000195490

NYC 9/11 Public Portal Document

Tax Reduction Program R al The tax reductions enacted during the past 7 1/2 years have played an important role in the City’s revival :h and continuing economic prosperity. Business tax reform has once again made the City competitive and contributed to the creation of a record 99,000 private sector jobs in 2000, while sales tax reductions and IS property tax relief have; benefited consumers and property owners. This budget expands on these reductions in with further tax relief, including an additional cut in the 14 percent personal income tax surcharge, the th , complete elimination of the commercial rent tax and a complete elimination of the sales tax on clothing and is / footwear. Additionally, the current co-op/condo property tax abatement and the Lower Manhattan ts Commercial Revitalization Program are extended, and the hotel tax $2 flat fee per room is repealed. In 2002, le the tax reductions in this budget total $494 million, increasing to $1,264 million in 2005. Tax Reduction Program ' (SMilHonsj 2001 2002 2003 2004 2005 I Already Enacted / , • Expiration offlT 12.5% Surcharge ($821) ($807) / ($858) ($913) ($973) • Hotel Tax Cut (26) ; (27) / (28) (29) (30) if; • Commercial Rent Tax Reductions (413) f ' (428) (434) (439) (440) • Unincorporated Business \ Tax Reforms Credits (54) (56) (57) (58)' (58) • Commercial Revitalization Program (45) (41) (32) (22) ; (15) • SCRIE/SCHE Enhancements i (6) (6) (6) (6) \ (6) • Co-op/Condo Property Tax Relief ; (170) R4 > Business Tax Reform (130) (133) (137) (142) (146) • Sal^s Tax - Miscellaneous Exemptions (45) (47) (47) (47) (47) • Sales Tax - Exemptions ■s , on clothing & footwear under $ 110 • Resident UBT/PIT Credit (244) (43) (250) (49) (256) (55) (263) (55) (270) (55) I > Real Property Transfer Tax Exemption for 11;’■ Assumable Mortgages (2) (2) (2) (2) (2) • Elimination of the Vault Charge and the ' Tax on Coin Operated Amusement Devices , (8) (8) (8) (8) (8) W • Coirunuter Tax Repeal (436) (495) (519) (547)

5 I • CollegeTuition Deduction/Credit (PIT) ! " Marriage Pehalty Reduction (PIT) • Sales Tax Exemption on Utility / , (5) (7) (9) (21) (14) (28) (18) I (29)

1 Transmission & Distribution • Sales Tax Exemption on Web / (2) (5) (19) (54) (139)

I I Hosting di HDTV Equipment • Bank Mutual Fund Companies I ■ PIT 14% Surcharge Cut (effective January 2001) ;; • Borough Development Program i Ldi) ' (1) (94) (13) (I) (185) (10) (13) (1)' (196) (13) (1) (209) (13) (1) (227) (11) (14) (13) BE!; ' • STAR (Personal Income Tax) (415) (560) (607) (636) (661) ' • STAR (Property Tax) ( (89) (110) (132) (135) (135) Subtotal ($3,154) ($3,186) ($3,424) ($3,607) ($3,833) Proposed • PIT 14% Surcharge Cut (effective July 2001) ($180) ($191) ($207) ($226) • Elimination Of the Commercial Rent Tax (121) (270) > (432) (470) • Extension of Co-op/Gondo Property Tax Relief (185) (194) \ (204) (214) • PIT Credit for “S” Corporations / (26) (53) (56) • Earned Income Tax Credit (48) (48) • Repeal ofHotel Tax $2 Flat Fee (19) (39) (40) • Elimination of the Sales Tax on Clothing & Footwear (27) (105) • Business Tax Reform ' (75) ! * Lower Manhattan Revitalization Program - Extension (Excludirig World Trade Center) -___________(8) (19) (31) (30) Subtotal — ($494) ($719) ($1,041) ($1,264) Total Tax Reduction Program ($3,154) ($3,680) ($4,143) ($4,648) ($5,097)

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NYC-WTC_000195514