Results tagged “taxrevenue”

If you thought you were getting your untaxed cigarettes from the Poospatuck tribal reservation this weekend, think again! A federal judge stopped the tribe's sale of untaxed cigarettes to those outside the tribe because NYC complained that people would of course buy untaxed cigarettes instead of taxed ones in the city and that the untaxed cigarette trade leads to bootlegging. The tribe has 30 days to appeal, and they vow to fight it. However, Mayor Bloomberg said, "The city will go after every dollar that is owed to city taxpayers." According to the NY Times, "City officials estimated that the sales deprived the city of $420 million from 2004 to 2008."

Lawmakers will likely be making more cuts to the state budget now that State Comptroller Thomas DiNapoli has revealed "tax revenues declined even more than anticipated in April." According to his press release, the General Fund revenues were 44% less than last year and 5% less (about $239 million) than Governor Paterson's already more-modest projection for the month. DiNapoli warned, "We’ve already tapped nearly all of our unreserved funds so there is very little cushion if revenues continue to fall. We need to watch revenues and spending very closely, because the state may be forced to readjust priorities." Speaking of spending, it's up 12% from last year, mainly due to education, health and the environment. However, other revenue-generating ideas from the state budget—such as increased taxes for higher income brackets and and other fees—won't show up until this month and next. The Department of Taxation and Finance took a glass half full approach, telling the Times, "The state’s finances are in line with the fiscal plan, since decreases in projected revenues were largely offset by decreases in spending."

Mayor Bloomberg said the city may need a 7% property tax increase to deal with the city's projected deficit--which will probably grow due to the poor economy. The NY Times reports that the Bloomberg administration has been "considering" the hike (which would mean $600 million in revenue) and notes how an "estimated 10% of the city's tax revenues come from Wall Street." The Mayor said yesterday, "I think the solution is a combination of expense reduction, which nobody is going to be happy about, and revenue enhancements, which nobody is going to be happy about. This is not going to be a feel-good time.”

The Independent Budget Office has done a study on that controversial topic--taxing Internet retailers for goods bought in NY State. The IBO suggests the city could earn tens of millions with an Internet sales tax, estimating that $29 million was "lost" between July 2006 and June 2007 on goods brought online. Further, the $2.2 billion of goods bought online last year is taxable, and the city could have made $82 million and the state $91 million. The study say, "In recent years the sales tax has comprised a declining share of total city tax revenues. Rising levels of untaxed Internet sales is likely one of the reasons for this decline." You can read the report here (PDF). And while Governor Paterson is pro-Internet sales tax, Amazon is currently suing NY State.