NYC-WTC_000195490

NYC 9/11 Public Portal Document

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MISCELLANEOUS ; I Other Refunds: These refunds are primarily paid out on the commercial rent tax and waiver and are projected to be $32 million in 2001 and $15.2 million in 2002. The large increase in 2001 reflects refunds expected to be made to certain rionresident City employees who paid the City income tax under Section 1127, but who were found, as a result of recent litigation, not to be subject to Section 1127. pilots: Payments in;lieu of taxes (PILOTs) are contractual agreements between public agencies and private property holders which result in real property tax relief in order ito: (1) induce businesses to remain in New York City; (2) attract new business; (3) provide subsidies for low income housing; and (4) promote economic growth. PILOT payments are either fixed sums based on r^af property taxes paid on the underlying property in the year preceding the agreement, formulas calculated on the income derived from business operations at the PILOT facility, or a combination of both. Payments are remitted quarterly, semi-annually or annually. ; - i / / There are four primary sponsor agencies which serve as intermediaries betweep the City and the PILOT facility owner: New York City Housing Authority, Port Authority of New York and New Jersey, Industrial Development Agency and Battery Park City Authority. These agencies administer projects that comprise approximately 95 percent of PILOT payments received. Two smaller sponsors are the Econpmic ■

Development Corporation and the Triborough Bridge and Tunnel Authority. PILOT revenue is expected to be $168.5 million in 2001 and S156,6 million in 2002.

Stock Trader Tax: The State repealed the City’s stock transfer tax in 1980 and provided for annual appropriations of not more than $120 million as compensation. Until 1988, the State appropriated to the City approxiniately $118 million annually. Following a slowdown in State revenue growth, the appropriation was reduced to $83 million in 1990 and to $56 million in 1991. In 1992, the appropriation was restored to $114 million. In 2001 and 2002, a level of $114 million is expected, Waiver (Personal Inco!me Tax On Nonresident City Employees): Under section 1127 of the New York City Charter, the City may collect payments from nonresident employees of the City or any of its agencies in / an amoiint which equalizes their personal income tax liability to what it would be if they were residents. B Revenue is projected to be $62.3 million in 2001 and 2002. ' I . ■ i ' :

Prior Year and purrent Year Penalty and Interest - Rieal Estate; Taxpayers who do not pay their real property tax on time are liable for interest charges on outstanding balances. Interest is charged at a rate of nine percept for taxpayer? whose annual liability is under $2,750 and 18 percent for all other taxpayers. Penalties and interest received against current year delinquencies are expected to be $11 million in 2001 and $10 million in 2002, while penalty and interest collections from prior year delinquencies is expected to be $40 million in 200 Land 2002.

Penalty and Interest J Others Penalty and interest charges collected on outstanding balances for all taxes except the real property tax are reflected in penalty and interest-other. Starting in 2001, the processing bank no J longer reports the penalty and interest collected separately. Revenue tracking under this heading is discontinued. The penalty and interest collected is appearing as a diminutive addition to the collections reported for the following taxes: commercial rent tax, liquor license surcharge, taxi medallion transfer tax and cigarette taXi

Penalty and InterestOther Refunds: The City currently pays out interest on refunds claimed on overpayments against the first installment paid on business income taxes, on audits of the general corporation and unincorporated business taxes already collected by the Department' of Finance but overturned by Federal

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NYC-WTC_000195577