MAYOR GIULIANI SIGNS LEGISLATION REPEALING THE CITY'S VAULT
CHARGE AND THE TAX ON COIN OPERATED AMUSEMENT DEVICES
The Two Bills Are Elements of the Giuliani Administration's Tax Reduction and Reform Program for Small Businesses
"The first and second bills, Introductory 973 and Introductory 974, were sponsored at my request by Council Member Berman," Mayor Giuliani said. "Introductory 973 would amend the Administrative Code of the City of New York by repealing the City's vault charge. The charge is imposed for the privilege of occupying, maintaining or using a vault--a subsurface opening in the streets of New York City. The charge is paid by the owner of the premises immediately adjoining the vault. This bill will provide tax relief to more than 5,000 small businesses.
"Introductory 974 would amend the Administrative Code of the City of New York by eliminating the tax on coin operated amusement devices," the Mayor continued. "This tax, which has been imposed for the privilege of maintaining coin operated amusement devices within the City since 1959, was increased from $25 to $175 per device in 1989. The higher tax level has been criticized by affected small business owners as burdensome, especially in regard to the seasonal use of many devices, such as amusement devices used outdoors during summer months.
"Both of these proposals were included in the City's Executive Budget for Fiscal Year 1998 in its tax reduction program and I am happy to be signing them into law today," the Mayor concluded.
In partnership with the City Council, the State Legislature and Governor George Pataki, the Giuliani Administration has enacted more tax reductions in the last three years in New York City than in the prior 18 years combined. By the year 2001, these tax cuts will have saved New Yorkers more than $3.1 billion.
The elimination of the Vault Charge and the tax on coin operated amusement devices is part of an $835 million tax reduction program contained in the recently adopted budget agreement between Mayor Giuliani and the City Council, of which $516 million has already been enacted and $319 has been added, including:
Increased UBT Credit $ 75 million
Additional CRT Reductions $ 30 million
Real Property Transfer Tax
Exemption for Assumable
Mortgages $ 2 million
Eliminate Vault Charge & Tax
on Coin Operated Amusement
Devices $ 8 million
Proportionate Share of State
Tax Relief $ 47 million
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Total $ 319 million
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