Results tagged “salestax”

If you bought taxable items today, you may have noticed a slight change with the sales tax: The city sales tax is now 8.875%, up from 8.375%. It's a move proposed by Mayor Bloomberg back in January, due to the poor economy. It's hoped that the 0.5% will raise $900 million in city revenue. This translates to an extra 50 cents for every $100 spent, and the Daily News reports, "While it's pennies with each purchase, it adds up: A family earning $75,000 a year would pay an estimated $170 more in sales tax over the course of a year, the Independent Budget Office says." Flashback: In 2007, Bloomberg asked the state to keep sales tax at 8.375%.

The City Council endorsed today Mayor Bloomberg's plan to raise the city's sales tax to 8.875 percent. The measure, which passed 37 to 10, now goes to Albany for approval by the State Legislature. While those who voted against the increase argue the tax is regressive and unfair, City Council Speaker Christine Quinn says the measure will save 1,200 to 1,500 retail jobs. But, not all councilmembers who approved the tax say they did so willingly. Said Councilman Lewis Fidler to the Gotham Gazette: "If we don’t authorize the sales tax, as distasteful as it is, there will be layoffs...I prefer we find it somewhere else, but that is not the choice we have." The increase is expected to bring more than $500 million in new revenue to the city.

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."

Mayor Bloomberg is set to reveal details of his budget for the new fiscal year (which begins July 1), and like recent budgets, the economy's downturn means it'll be rough with the city's projected $4 billion deficit. WCBS 2 reports that, according to sources, "The mayor intends to raise $900 million to close the budget gap by raising the sales tax half a percent," and explains, "The sales tax in New York City will now be 8.875 percent; of which only 4.5 percent is a city tax. The rest goes to the state and the Metropolitan Transportation Authority."

Upon news that Governor Paterson and other state lawmakers might raise the sales tax to deal with the state's huge deficit, WCBS 2 asked New Yorkers what they thought if the tax went over 9%. Naturally, the responses were things like "Oh no, this is ridiculous," "Everything is going up except salaries so that's not a good thing, especially in a recession," and "Of course it would definitely affect how much I bought." As for the rumored tax hike for those who make over $500,000, Mayor Bloomberg said, "51, 52 percent of our taxes come from people making $500,000 or more... Five thousand people back in 2006, it's probably a little more diverse today, but in 2006, 5,000 people paid 30 percent of the taxes in New York City.... If only 1,500 of that 5,000 people move to Connecticut, that would cut 10 percent of our tax base, that's another $3.5 billion."

Mayor Bloomberg will be giving his budget address later today and it won't be fun: Because of the economic climate, he's proposing to increase sales tax to 8.75% (and putting tax back on clothing under $110; the sales tax is currently 8.375%) in order to raise $900 million. Bloomberg is also proposing to cut 23,000 city jobs, cuts to capital projects and requiring employees to pay for some health care, according to the Daily News. These measures would fill the $4 billion gap and come on top of previously announced cuts.

Last May, Amazon.com sued NY State over Governor Paterson's new law requiring out-of-state retailers to collect sales tax from consumers in New York State. NY requires residents to pay tax on out-of-state purchases for which sales tax wasn’t collected, but the argument is over who should collect it—and the new law would make Amazon responsible. Yesterday, State Supreme Court Judge Ellen Bransten dismissed Amazon's lawsuit, as well as one from Overstock.com, finding, "The neutral statute simply obligates out-of-state sellers to shoulder their fair share of the tax collection burden when using New Yorkers to earn profit from other New Yorkers." This could be headed to the Court of Appeals, should the online retailers wish to pursue it. And Paterson offered other tax ideas last month.

Last week Governor Paterson signed off on a new tax law requiring out-of-state retailers to collect sales tax from consumers in New York State. Like other states, New York requires residents to pay tax on out-of-state purchases for which sales tax wasn’t collected. The big argument is over who’s responsible for collecting; the new law puts that onus vendors like Amazon, which is now fighting the bill in State Supreme Court.

New Yorkers are supposed to be honest at tax time and indicate how much they've purchased from online retailers--like Amazon.com--that don't charge NY State sales tax. Now the NY State tax department wants online retailers to charge sales tax, or else be subject to audits going "back as far" as tax officials want.

In her State of the City address, City Council Speaker Quinn said that the Council would do its own belt-tightening given expectations the economy will slow. Still, she mentioned, per the Sun, "tax cuts, improved transportation, more pay for teachers, and affordable housing," saying, "Getting leaner does not have to mean getting meaner."

Mayor Bloomberg, our very own billionaire mayor, is asking state lawmakers to keep the sales tax at 8.375%. Apparently the sales tax, per "Rules dating back to the city's fiscal crisis of the 1970s" (thanks for the history lesson, NY Sun!), would have dropped 1 percentage point to 7.375% on July 1, 2008, but Bloomberg wants to keep it at its current level. That extra 1 percent tax means about $1 billion in revenue for...

Governor Eliot Spitzer had a busy week. Not only was he working himself up to admit his driver's license plan would not pass, Spitzer suggested instituting the state's 8.375% sales tax on Internet goods - just in time for holiday shopping! But only hours after the NY Sun reported on the plan, Spitzer changed his mind, deciding to wait until the new year to implement taxes on Internet purchases. Currently, online retailers who don't have...