2007_01_bloomberggift.jpgIn a few hours, Mayor Bloomberg will give his annual State of the City address. But the cat is out of the bag, as everyone is abuzz about how he will be discussing a $1 billion tax cut. Property taxes will be reduced, the city's 4% tax on clothing and shoes over $110 would be eliminated (you would still pay the state (and MTA)'s 4.375% sales tax), and small businesses would get tax breaks, too.

Why the second term good will? The Mayor has decided that the city's financial health is good, given "higher than expected" revenues. The other week, the Independent Budget Office projected the city would have a surplus of a billion more than the Mayor's office thinks - for a total surplus of $2.9 billion.

The property tax cut is being proposed for one year only (in case it's a bad idea!); the City Council and State Legislature will eventually need to approve it. The Post reports City Councilman Vincent Gentile had recommended at $1.5 billion tax cut: "Now, when the city is enjoying a strong real-estate market and record revenue, it should give some money back to property owners."