NYC-WTC_000195490

NYC 9/11 Public Portal Document

• Repeal of hotel tax $2 flat fee; The hotel room occupancy tax consists of botfi a flat fee ranging from $0.50 to $2 on rooms priced under $40 and $2 on rooms over $40, plus a 5.0 percent tax levied on the room charge. In addition, for the repeal of this fee, the taxation of Bed and Breakfast establishments; will be reformed. Effective December 1, 2002, the repeat of this flat fee will reduce taxes by $19 million in 2003, $39 million in 2004 and $40 million in 2005.

• Sales tax Exemption: Effective March 1, 2004, the 4.0 percent sales tax exemption on clothing and C: footwear under $110 will be extended to all clothing and footwear purchases. This will save consumers an additional $27 million in 2004 and $105 million in 2005.

• Business tax reform; Further reform and reduction of the general corporation and unincorporated business taxes will save City businesses $75 million in 2005.

• Lower Manhattan Revitalization Program ■ extension; This targeted tax relief program for pre- 1975 buildings that provided tax incentives through property tax abatements and exemptions expired on March 31, 2001, This proposal will extend the real estate tax abatement, commercial rent tax exemption and the energy cost savings program! through March! 31, 2004 in lower Manhattan. In order to focus tax relief on those buildings most in need of benefits, the program’s extension will exclude the World Trade Center. The total savings to taxpayers due to the extension of this program is estimated to be $8 million in 2002, $19 million in 2003, $31, million in 2004 and S30 million in 2005. 8’

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