Mayor Bloomberg is urging state lawmakers to block a reduction in the city's sales tax that, if it takes effect as scheduled in July, would save consumers more than $1 billion a year.
Mayor Wants To Extend Sales Tax
Rules dating back to the city's fiscal crisis of the 1970s call for the sales tax charged in the city to drop 1 percentage point, to 7.375%, this summer. Mr. Bloomberg is working to make sure the scheduled tax cut never happens.
The Bloomberg administration is asking Albany legislators to authorize a tax increase that cancels out the reduction so that the tax remains at 8.375%.
During the fiscal crisis of the 1970s, the state raised the city's portion of the sales tax to four cents on each dollar of goods sold from three cents to create a revenue stream dedicated to bailing out the city from its financial troubles. When the law that imposed a financial control board on the city expires on July 1, 2008, the sales tax increase also is set to dissolve.
MIKE'S NEXT TAX HIKE