Printer Friendly Format
View Press Conference
56k or 300k
FOR IMMEDIATE RELEASE
December 2, 2002
PR- 312-02
www.nyc.gov


MAYOR MICHAEL R. BLOOMBERG SIGNS LEGISLATION AUTHORIZING
COUNCIL TO RAISE REAL PROPERTY TAX

Remarks by Mayor Bloomberg at a Public Hearing on Local Laws

"The first bill before me today is Introductory Number 317-A, sponsored at my request by Council Member Weprin. This legislation will provide for the levy and collection of additional real property taxes for Fiscal Year 2003. New York City's FY 2003 budget, when adopted last June, closed a budget gap of almost $5 billion. Since that time, the City's financial picture has eroded significantly with a projected gap widening to over $1 billion for FY 2003. This change in estimates is primarily due to a reduction in anticipated tax revenues caused by the nationwide economic slowdown, in addition to a growth in the City's fixed budget costs.

"In conjunction with agency spending cuts, the November budget modification for FY 2003 passed by the City Council on November 25th includes an increase of 18.49% in real property tax rates, the first property tax increase in the City in over a decade. This change in the real property tax will generate an additional $837 million in revenue to the City in FY 2003.

"Specifically, this legislation authorizes the City Council to change the Real Property Tax rate in FY 2003. This legislation will take effect immediately and the increase will be reflected in the new tax bills that the Department of Finance will send out this week.

"Raising property taxes is a difficult decision. However, the City must take the steps necessary to address the budget gap on its own. By increasing the real property tax and significantly reducing expenditures, the City moves another step closer to its economic recovery. With help from both the State and Federal governments we are confident that New York, the greatest City in the world, will recover fully and will remain a vibrant metropolis in which to live, work, visit and raise our children."

 

www.nyc.gov

Contact: Edward Skyler / Jordan Barowitz
(212) 788-2958