"The bill before me today is Introductory Number 220-A, sponsored at my request by Council Member Weprin. This bill allows New York City to decouple the City's business taxes from the Federal tax law. The enactment of this local law is necessary in order to limit the City's revenue loss that would directly result from the recently enacted Federal economic stimulus legislation.

"On March 19, 2002, the President signed the Job Creation and Worker Assistance Act in order to address the nationwide economic slowdown, which was further exacerbated by the events of September 11th. This Federal legislation provides an extension of unemployment benefits and a number of nationwide business tax relief provisions. In addition, the Federal legislation creates special tax benefits for businesses located in Lower Manhattan, the area most affected by the terrorist attacks of September 11th.

"Because the City's business taxes are tied to Federal taxes, to minimize City revenue losses, the State passed legislation allowing the City to decouple its business taxes from Federal tax definitions. To stimulate economic activity in Lower Manhattan, businesses located below Houston Street will obtain a City, State and Federal tax benefit. Businesses located throughout the rest of New York City will still obtain both Federal and State tax incentives, but will remain subject to the City's business taxes.

"This decoupling bill, along with several other bills that I will be signing this afternoon, is part of a package of legislation that the Council and I agreed upon in an effort to close the City's nearly $5 billion budget deficit. This legislation will save the city $108 million in tax revenues in Fiscal Year 2003 and over $300 million in tax revenues over the next three years, while also providing businesses in Lower Manhattan with $20 million in City tax benefits."