Archives of the Mayor's Press Office

MAYOR GIULIANI SIGNS BILL FURTHER REDUCING
CITY'S PERSONAL INCOME TAX SURCHARGE

The final bill before me today is Introductory Number 929, sponsored at my request by Council Members Berman and Dear. The bill will reduce the surcharge that the City places on its personal income tax.

This legislation marks the second time in the last six months that we have acted to reduce the burden of the personal income tax surcharge. The City first imposed the 14% surcharge in 1991, promising that it would be temporary. In December of last year, in conjunction with the City Council, my Administration took the first step toward fulfilling that promise when we cut the surcharge in half for people earning $90,000 or less per year.

This legislation will reduce the 7% charge currently levied on incomes of $90,000 and less to 5.25%. It will also reduce the 14% surcharge imposed on incomes greater than $90,000 to 12.25%. These reductions, combined with those enacted in December, will save New Yorkers $365 million in the coming year.
By reducing the personal income tax surcharge today, we not only return dollars to New Yorkers' pockets, but we also help to ensure the City's long-term economic viability.

For the reasons previously stated, I will now sign the bill.