December 15, 2013

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

MEMORANDUM

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

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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)

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