As a result of New York’s booming economy — and of things like Tishman Speyer buying Stuy Town and the Dubai royals buying everything else — the city is enjoying a $2 billion surplus, and the word on Chambers Street is that we’re in for some kind of windfall. Mr. Bloomberg, spell it out for us:
• No more 4 percent city sales tax on apparel and shoes. If you just said “Wait, I thought we already got rid of that one,” you’re one thrifty customer: It was previously waived only for items under $110. In a nicely rhyming estimate, the new cut will save customers $110 million over the next fiscal year.
• There’s $140 million in permanent tax cuts for small businesses, including a credit for S-type corporations (which are currently subject to a kind of double taxation here).
• And most exciting for homeowners, property taxes will shrink by 5 percent across all classes, with an average savings of $201 (that’s on top of a $400-per-property rebate). This cut, however, is not permanent: Since 2009 projections are not quite as rosy, it is likely to remain a one-time-only treat. Unless, that is, the Dubai royals buy Tishman Speyer or something.
Bloomberg Outlines Series of Tax Breaks [Crain’s]