FOR IMMEDIATE RELEASE PR- 198-03 July 16, 2003 MAYOR MICHAEL R. BLOOMBERG SIGNS LEGISLATION CLOSING LOOPHOLE IN UNINCORPORATED BUSINESS TAX Remarks by Mayor Bloomberg at a Public Hearing on Local Law “The next bill before me today is Introductory Number 521, sponsored at my request by Council Members Weprin, Comrie, Gerson, Seabrook and Stewart. This bill corrects a drafting error in Chapter 63 of the Laws of 2003. This State legislation was intended to close a loophole in the business income taxes under which businesses in New York were able to reduce their taxable income in New York through payments of interest or royalties to affiliates located in taxing jurisdictions, such as Delaware, that do not tax such income. Because of the error, the legislation, as passed by the State Legislature, did not close the loophole in the City’s Unincorporated Business Tax. Introductory Number 521 corrects the drafting error in the original State legislation and closes this loophole. “This legislation is a small component of this year’s State budget business tax loophole closures that are estimated to produce an additional $40 million in revenue for New York City annually.” CONTACT: Edward Skyler / Jordan Barowitz   (212) 788-2958

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