Contact: Sunny Mindel/Curt Ritter (212) 788-2958
Mayor Rudolph W. Giuliani was joined by City Council Speaker Peter F. Vallone for a press conference at City Hall today to formally announce their opposition to the State Legislature's proposal to eliminate New York City's commuter income tax. The legislation proposes to permanently eliminate the .45% commuter tax, which would cost the City an estimated $360 million annually. In addition, the legislation proposes to eliminate the tax retroactive to January 1, 1999. As a result of the retroactive provision, the City would have to refund an additional $180 million, for a tax lawfully collected pursuant to an act of legislature, bringing the total loss incurred by the City to $540 million.
"I strongly oppose this legislation, which would eliminate this tax for non-residents and unfairly punish those who live and work in New York City," said Mayor Giuliani. "This modest tax, .45 percent, provides the City with close to $360 million in tax revenue annually and helps support many of the City's services enjoyed by non-residents working in our City. To act on our taxes without our agreement is bad enough, but to now force the City to retroactively refund money is an invasion of the City's treasury.
"Historically, the New York State Assembly sought home rule messages from the City Council on all commuter tax renewals," the Mayor continued. "There is no distinction or interest that is different for a repeal than for a renewal, and, therefore, it is incumbent on the Assembly to request that the New York City Council issue a home rule message before it votes on this legislation. I want to thank Speaker Vallone for joining me today, and want all New York City residents to know that I will continue to support their rights in Albany and fight to see that this legislation does not become law," the Mayor concluded.
"Albany's attempt to repeal the commuter tax is reckless and bad economic policy," said City Council Speaker Peter F. Vallone. "The State would be forcing New York City to forego more strategic tax cuts needed to continue our economic resurgence. We need to focus on tax cuts that will benefit business, labor, education, public safety and infrastructure. Tax cuts we have already enacted have spurred our economy and helped the entire State. Our plans for further targeted tax reductions will help even more. The action being planned in Albany will not only hurt New York City, but all of New York State."
The Mayor also noted that this tax has not increased since 1971, 28 years ago, while the personal income tax paid by City residents, currently 3.83%, has increased by more than 10% over the same period of time.