Mayor, City Council Agree On Revenue Boosting Tax Measures

With the city facing a huge deficit and much less Wall Street revenue, the Mayor's office and City Council have agreed on tax measures that will bring in $887 million in revenues. The NY Times reports there will not be a 5-cent plastic bag tax or sales tax on all clothing; Bloomberg and the Council "instead proposed increasing the city’s sales tax by half a percentage point, to 8.875 percent. In addition, the city would begin charging sales tax on clothing over $110. All clothing was previously exempt from such taxes." These, plus other measures, like "applying the full City Sales Tax to electric and natural gas customers that purchase energy from non-utility companies and a tax conformity package" must be approved in Albany. According to the Times, the Independent Budget Office estimates a household making $35,000/year will need to pay an additional $74 in sale taxes, while a household making $125,000/year "would pay an additional $237 a year, and one making $500,000 would pay $687 more."