Package of Home Rule Messages will allow City to enact legislative priorities<\/p>\n
City Hall \u2013 The City Council will vote on several Home Rule Messages today that will allow lawmakers in Albany to pass enabling legislation that will give the City the authority to implement the agreed upon revenue package. In addition, the Home Rule Messages would enact other legislative priorities, including effectively eliminating the unfair double-taxation on freelancers and small businesses, incentivizing job creation by eliminating the current tax policy that penalizes companies for adding to their City workforce, and diversifying the economy by encouraging growth in emerging technologies. <\/p>\n
\u201cAs we confront declining revenues, it\u2019s clear that we need to take steps to diversify our economy and to create jobs,\u201d said Speaker Christine C. Quinn. \u201cThe home rules we are passing today level the playing field for many freelancers and small businesses by effectively eliminating the unfair double taxation that has hampered their success. They also make the City more competitive by bring our tax policies in line with the rest of the state, in addition to encouraging investment in emerging technologies. And they bring in much needed revenue, so we can address major gaps in the FY10 budget.\u201d<\/p>\n
\u201cToday\u2019s legislation will allow us to take the necessary steps that will expand our revenue base and foster new investment and job opportunities,\u201d said Finance Committee Chair David Weprin. \u201cThe only way we can grow our economy and increase the number of jobs in our City is by removing the hurdles that have prevented both small businesses and large corporations from expanding their operations right here in our own backyard.\u201d<\/p>\n
Specifically, some of the home rules messages being voted on today include:
\n\u2022 Legislation to Enable a .5% Sales Tax Increase \u2013 Per request of the Mayor, the Council will vote on an increase in the City\u2019s portion of the sales tax. The tax will rise from 4.0% to 4.5% and generate $518 million for FY 2010. The bill also ends the exemption on distribution for energy purchased from energy service companies. Lastly, the bill maintains the exemption on clothing and footwear under $110, so that working families can continue to purchase necessities without incurring an additional tax burden. <\/p>\n
\u2022 Unincorporated Business Tax (UBT) \u2013 Beginning in 2009, the credit that is applied to reduce a UBT will apply if the annual tax totals less than $5,400. This change will increase the number of freelancers and small business that qualify for the tax credit, effectively ending the double taxation policy that has hampered roughly 11,000 freelancers and small businesses with incomes under $100,000. An additional 6,000 firms making between $100,000 and $150,000 will receive partial tax relief from this bill.<\/p>\n
\u2022 Business Conformity Package \u2013 a series of items that will close loopholes and enact a \u201cSingle Sales Factor,\u201d a tax policy that will encourage job creation in New York City. Currently, the City taxes corporations using a three-factor formula \u2013 property, payroll, and receipts\/sales \u2013 to determine how much of a company\u2019s income is taxable in New York City. This formula creates a tax disincentive for some businesses to locate or remain headquartered in New York City. The conformity package proposes moving to a \u201cSingle Sales Factor,\u201d where only company sales are used to determine a company’s taxable income in New York City, significantly reducing the tax burden on businesses headquartered locally. More than 27,000 New York City businesses will pay reduced taxes under the change, saving a combined $2.7 billion while the change is phased in over the next ten years. Closing the existing corporate loophole will generate $184 million in the FY10 budget. <\/p>\n
\u2022 Biotech Tax Credit \u2013 Authorizes cities of one million or more to provide a biotechnology credit to be taken against the general corporation tax, unincorporated business tax and banking corporation tax imposed by such city. First announced in her State of the City Address, the tax credit is designed to help emerging companies with upgrades to facilities, improved operations and enhanced employee training. The Biotech tax credit could create as many as 1000 jobs in New York City<\/p>\n
\u2022 Property Tax Cap Bill \u2013 Provides for no increase in class shares for classes 1 and 2 from FY09 to FY10, reducing the property taxes on a typical 1-family home by and average of $176 for the coming fiscal year.<\/p>\n
\u2022 Transitional Finance Authority Extender \u2013 Typically, the city issues bonds to pay for capital spending. Accessing cheaper bonds through the Transition Finance Authority (TFA), allows the city to lower its debt service payments because of very low interest rates granted thought the TFA. This bill does not allow the City to increase it total amount of debt, but rather allows it to access cheaper debt through the TFA instead of general obligation bonds. The law extends the City\u2019s access to the programs through FY10. <\/p>\n
\u2022 Bond Anticipation Notes \u2013 One problem that surfaced during the credit crisis was the City\u2019s inability to access long term debt at lower, short-term interest rates, making the City\u2019s bonds less competitive in a tight market. Bond Anticipation Notes will give the City the opportunity to access lower interest rates on short term borrowing. <\/p>\n
The State Municipal Home Rule Law requires the State to ask the City Council to pass a home rule message on certain legislative items. <\/p>\n","protected":false},"excerpt":{"rendered":"
Package of Home Rule Messages will allow City to enact legislative priorities<\/p>\n
City Hall \u2013 The City Council will vote on several Home Rule Messages today that will allow lawmakers in Albany to pass enabling legislation that will give the City the authority to implement the agreed upon revenue package. In addition, the Home Rule Messages would enact other legislative priorities, including effectively eliminating the unfair double-taxation on freelancers and small businesses, incentivizing job creation by eliminating the current tax policy that penalizes companies for adding to their City workforce, and diversifying the economy by encouraging growth in emerging technologies.<\/p>\n
…<\/p>\n