NOVEMBER 1998Reduction in NYC taxes
Owners of business partnerships and Subchapter S corporations in New York City will enjoy major savings when the city's 12.5 percent surcharge on personal income taxes expires Dec. 31.
A typical taxpayer with income of $100,000 will pay $417 less in city taxes; those with earnings of $250,000 will save $1,293 a year. Elimination of the tax was championed by City Council Speaker Peter Vallone, and Mayor Giuliani agreed to the change this week.
Former Mayor David Dinkins and the City Council imposed the surcharge in 1990 to pay for more police and other anti-crime measures, which will now be funded through normal revenues.
Elimination of the added tax comes after Governor Pataki and the Legislature enacted sharp reductions in state-level personal income taxes from 1995 through 1997. The state changes save taxpayers with income of $100,000 some $868 a year; those earning $250,000 are paying some $2,400 less in taxes a year.
The New York City tax reduction drew favorable comment from The Wall Street Journal, which noted that it follows the Pataki personal income tax cuts and other major tax reductions.
November 24, 1998