FOR IMMEDIATE RELEASE
December 29, 2008
MAYOR BLOOMBERG SIGNS LEGISLATION AUTHORIZING THE EARLY RECISION OF A TEMPORARY TAX CUT, FIXING ADDITIONAL REAL PROPERTY TAX RATES AND PROVIDING A MORE FLEXIBLE TAX PAYMENT SCHEDULE
As one of 18 Administration initiatives to help New Yorkers through these tough times, alleviates cash-flow concerns for approximately 65,000 New Yorkers by allowing property taxes to be paid quarterly rather then semiannually
Extends deadline for homeowners to pay third quarter property tax bills by two weeks
Remarks by Mayor Bloomberg at a Public Hearing on Local Laws
"The second bill before me today is Introductory Number 887, sponsored at the request of the Administration by Council Members Weprin, Comrie, and Jackson. This bill authorizes the early recision of a temporary tax cut and the raising of additional revenues by fixing additional real property tax rates.
"The City's financial picture has eroded significantly during the last six months, with deteriorating national and local economies in addition to historic losses on Wall Street. This has led to a significant reduction in anticipated tax revenues. The City prepared for an economic downturn with budget cuts and savings programs in recent years and by using budget surpluses to prepay future debt. Despite these efforts, the City faces a combined $4 billion budget shortfall for the remainder of this fiscal year and Fiscal Year 2010 due to the unprecedented financial crisis.
"New York City's real property tax is the only tax levy that the City can alter without State authorization. This action will generate a much needed additional $576 million in property tax revenue for the City. The additional revenue, combined with the new budget cuts and savings proposed in the November Financial Plan will reduce the budget gap the City faces from a combined $4 billion to a $1.3 billion gap in Fiscal Year 2010.
"This bill is also tempered with some good news for many homeowners as it extends by two weeks to January 30th the deadline by which they must pay their third quarter bill. And as part of our Administration's efforts to relieve cash-flow issues for New Yorkers, this legislation increases the assessed-value threshold used to determine the payment schedule to $250,000 enabling 65,000 owners to pay property taxes quarterly rather then semi-annually.
"I would like to thank Office of Management & Budget Director Mark Page and Department of Finance Commissioner Martha Stark and their staff for their work on this bill. I would also like to thank the City Council for approving this legislation."
Stu Loeser/Evelyn Erskine (212) 788-2958
Watch the video in low or high bandwidth