FOR IMMEDIATE RELEASE
July 3, 2007
MAYOR BLOOMBERG SIGNS LEGISLATION INCREASING UNINCORPORATED BUSINESS TAX CREDIT
Remarks by Mayor Bloomberg at a Public Hearing on Local Laws
"The first bill before me is Introductory Number 591, sponsored in conjunction with the Administration by Speaker Quinn and Council Members Weprin, Felder, Liu, McMahon, Recchia, Reyna, Dickens, Comrie, Yassky, Fidler, Dilan, de Blasio, Gallagher and Oddo.
"In January, I proposed a broad tax relief package in my State of the City speech that included $140 million to help small businesses by decreasing the unincorporated business tax through a combination of deductions, credits and targeted reductions. With Introductory Number 591, we are fulfilling one of those proposals by increasing the unincorporated business tax credit.
"Introductory Number 591 will increase the credit against the City personal income tax for owners of businesses subject to the Unincorporated Business Tax, which include proprietorships, partnerships and limited liability companies. This will reduce the double taxation of income for many people who pay both personal and corporate taxes on the same income.
"Owners of unincorporated businesses with incomes of up to $42,000 are currently eligible for a 65% credit against their City personal income tax for their unincorporated business tax payments. The credit decreases on a sliding scale to 15% for owners with taxable incomes greater than $142,000.
"This legislation updates the ten-year old credit, increasing it to a full 100% credit for owners with incomes of up to $42,000. The credit will continue to decrease on a sliding scale, but the minimum credit will rise from 15% to 23% for owners with incomes greater than $142,000. Small businesses are the job-creation engines of our economy, and this law will save City taxpayers $28 million this year.
"I would like to thank Finance Commissioner Martha Stark and Budget Director Mark Page and their staffs for their work on this bill. I would also like to thank the City Council for approving this legislation."
Stu Loeser/Matthew Kelly (212) 788-2958
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