TAX RELIEF FOR NEW YORK'S HARDWORKING FAMILIES

The 2006-07 New York State Budget includes more than $4.1 billion in tax cuts over the next two years that will provide relief to New York�s hardworking families and help make New York more economically competitive. The tax cuts include direct school property tax rebate checks to homeowners, new tax credits to parents of school age children and the elimination of onerous taxes like the state sales tax on clothing and shoes and the marriage income tax penalty. Outlined below are details of the cuts most important to New York�s taxpayers. To estimate your 2006 tax savings, CLICK HERE.

PROPERTY TAX REFUND CHECKS
The Senate passed legislation that would provide almost $1 billion in much-needed relief to overburdened taxpayers to help pay their school property taxes this fall.

The property tax relief plan would provide taxpayers an advance personal income tax refund check this fall for a portion of their school property taxes. Senior citizens would receive a significantly larger benefit than non-seniors. The total tax relief would be $960 million annually. There will also be an accompanying increase in the existing personal income tax credit for New York City residents. The new tax credit would be in addition to the existing Federal and State deductions for local property taxes, STAR payments and the State circuit breaker tax credit. New Yorkers currently receive a total $3.3 billion benefit from the STAR property tax relief program.

Under the new program, current STAR recipients will automatically be mailed tax credit claim forms. Under State law, refund checks must be mailed within 45 days of the receipt of the claim form by the Department of Taxation and Finance.

ELIMINATION OF STATE SALES TAX ON CLOTHING
In the past, the state has provided several "tax free" weeks throughout the year which temporarily eleminated the sales tax on clothing and footwear. Now every week is "tax free" week, as the 4% state sales tax has been eliminated on clothes and shoes priced under $110. Several counties and municipalities have also eliminated their share of these taxes, enabling shoppers to save even more of their hard-earned money.

The exemption applies to each item of clothing and footwear that sells for under $110. Certain other accessories are exempt as well, such as scarves and ties, along with items that are used to make or repair exempt clothing, such as fabric, zippers and buttons. For a complete list of exempt and taxable items, CLICK HERE.

EMPIRE STATE CHILD CREDIT
Parents of children from age 4 to 16 will now receive a $330 tax break per child. The Empire State Child Credit which is based on a federal tax credit model, will provide families with school aged children with some assistance with education and day-to-day living expenses. Statewide this Credit will return $600 million to qualifying New York families.

MARRIAGE PENALTY TAX ELIMINATED
New Yorkers shoulder one of the highest state tax burdens in the entire country. Hardworking families are doing everything they can just to make ends meet. That is why the Senate Majority fought hard to eliminate the personal income tax penalty for married couples. The new guidelines in this year�s state budget increase the standard deduction for married taxpayers to $15,000 for joint filers and to $7,500 for married taxpayers filing separately, bringing them in line with single taxpayers.

As a result, married taxpayers will save $41 million, putting more hard-earned money back in the pockets of deserving families throughout New York State.

GAS TAX CAP
To help provide New Yorkers with relief from high gas prices, the Senate Majority fought to cap and reduce the sales taxes on gasoline. The State was collecting an average of 12-cents in sales taxes on a gallon of gas. This new law caps the State sales taxes on gas at 8-cents per gallon, effectively freezing the tax at the $2 per gallon rate. The gas tax cap will save New Yorkers as much as $200 million annually at the pump.

The 8-cent cap will be reduced proportionately should gas prices fall below $2 per gallon. Local governments collect between 12-cents and 15-cents per gallon from local sales taxes. The law allows local governments to opt in and match the State savings at the local level.

The measure requires that service station owners pass along the savings to consumers. The State Commissioner of Taxation and Finance, in conjunction with the Chair of the State Consumer Protection Board, is charged with enforcing the cap. There is a fine of up to $5,000 per incident, per day, for stations that do not pass along the savings.

For more information, CLICK HERE.

This year�s on-time budget provides the hardworking taxpayers of this state an enormous victory, but the fight continues. In order for New York State to effectively compete for more businesses and jobs, we must continue our 'not a penny more' pledge with regard to new taxes and fees and we must continue the fight for additional tax relief so that New York's taxes are brought into line with the rest of the nation.

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