The Cuomo administration doesn’t like suggestions that it has been dissing New York City lately.
A state tax commission Gov. Cuomo put together headed by former Gov. George Pataki and ex-Controller H. Carl McCall proposed a property tax plan that excluded most of the city. Aides to Cuomo quickly said he will push a tax credit for renters as part of any plan he puts forward.
New York City also came in dead last when it came to the awarding of regional economic development project funding last week.
This afternoon, Cuomo budget director Robert Megna released a memo in response to “public reports giving false impression that New York City taxpayers will not benefit from the Tax Relief Commission recommendations and other tax relief proposals.
According to Megna, city residents and businesses stand to gain about $1 billion in tax relief (including through a renters’ tax credit) under the tax relief commission’s plan over three years.
Here’s the memo explaining how:
From: Robert Megna, Budget Director
Date: December 15, 2013
Re: Memo in response to public reports giving false impression that New York City taxpayers will not benefit from Tax Relief Commission recommendations and other tax relief proposals
________________________________________________________________________
The Pataki-McCall Commission (Tax Relief Commission) presented, in our view, a balanced approach to tax relief between the various tax categories, reflecting the relative burden of existing taxes. An analysis by the Division of Budget shows that the Tax Relief Commission’s recommendations, along with the Governor’s stated objective of providing a renters’ tax credit, would deliver nearly $1 billion in tax relief for New York City taxpayers when fully phased-in, roughly half of the total relief.
The chart below shows the estimated value of the recommendations, fully phased-in by the third year, for the City of New York.
Recommendations
Fully Phased-In New York City
Fiscal Impact ($ Millions)
Real Property Tax Relief, including “circuit breaker” and renters’ credit
($450)
Estate Tax Reform
($267)
Corporate Tax Reform
($242)
Accelerate Article 18-A Temporary Assessment Phase-Out
($99)
Total Tax Reductions (Fully Phased-In)
($1,058)
