Lots of new taxes being considered to save MTA

From NBC:

A state panel is advising Governor Andrew Cuomo to consider a bundle of new taxes after revelations that the price for fixing the beleaguered Metropolitan Transportation Authority has doubled.

As it turns out, officials say a controversial plan for congestion pricing won’t raise enough money to cover the difference.

The task of finding solutions for raising the dough has been left to a city-state sustainability task force. Sources tell CBS2 that in addition to congestion pricing, the task force is exploring other options including:

- raising the payroll tax
- increasing the real estate transfer tax on sales of property over $5 million
- ending the sales tax exemption on clothing purchases under $110

Mitchell Moss, head of the Rudin Center for Transportation at New York University, has other suggestions including raising the gas tax.

“We should be using the gas tax and other broad-based revenues,” Moss said. “We might even want to consider getting revenue from cannabis to be earmarked for riders.”

A marijuana tax is a real possibility if pot is legalized in New York, sources say. Other revenue streams could come from new taxes on casinos and sports betting.

Business owner underreported income

From the Daily News:

The owner of an Edible Arrangements store in Queens has admitted to gorging himself on tax money, prosecutors said Thursday.

Maurice Letman, 42, of Springfield Gardens, pleaded guilty to lining his pockets with $185,000 forbidden fruit — money that should have gone to the city and state.

“Sales taxes are meant for the public treasury — not to line the pockets of businessmen,” said Queens District Attorney Richard Brown.

Letman has agreed to repay the full $185,000 plus interest and penalties.

He was charged last year with underreporting income from his Springfield Blvd. franchise of the popular fruit basket chain.

Auto Palace sales tax fraud

From the Queens Courier:

A year-long investigation brought the wheeling and dealing of a criminal couple’s auto shop scheme to a screeching halt.

Hooshmand “Danny” Kohanano, 54, and his wife, Fereshteh “Jenny” Kohanano, 41, were charged with $730,000 worth of sales tax fraud in connection with their operation of the Auto Palace, Inc., a used car dealership at 53-21 Northern Boulevard in Woodside.

A Queens County grand jury also returned an indictment charging the dealership’s former finance manager, Julio Estrada, 37 — aka Jay Torres — with defrauding 23 car buyers out of a total of more than $115,000 in cash through a sham refinancing scheme.

“The defendants are accused of serious tax fraud allegations and other charges that, if proven true, could result in considerable time behind bars,” said District Attorney Richard A. Brown. “Tax fraud is the type of crime that makes every New Yorker a victim by cheating the government and the public out of money that is especially needed during this continuing economic downturn.”

According to the criminal complaint, between September 1, 2006, and November 30, 2009, the Hooshmands and Auto Palace, Inc. allegedly swiped more than $728,844 in state and local sales taxes collected from buyers but not handed over to the State Department of Taxation and Finance as authorized.

Illegal cigarette tax cheats

From the NY Post:

A Queens mother and her son were arrested with 677 cartons of illegal Asian cigarettes and $132,000 in cash, authorities announced today.

Ying-Jian Lin, 48, and Xiao Lin, 23, face up to four years in prison for peddling the shady smokes, which are untaxed and don’t carry the required surgeon general warnings, according to a Queens District Attorney Richard Brown.

Investigators watched the son pick up the contraband cartons from a Flushing garage and carry them to a small grocery store where his mother was spotted selling the cigarettes, Brown said.

Authorities said they found the cash --- mostly in $50 and $100 bills --- in a safe-deposit box.

Brown said the pair would have cheated the city out of about $45,000 in taxes on the seized smokes alone.

Bloomberg policies hurt the elderly

From the Times Ledger:

I am 95 years old, have lived through two world wars and economic catastrophes, outlived most of my children and am a widow on a fixed income.

I ask why it is necessary for a billionaire like Mayor Michael Bloomberg to raise every cost in the city. Since Bloomberg took office, my house tax has doubled, my water bill has doubled, my sales tax has gone up and my transportation costs have gone up. I understand tickets have doubled and the police do not take reports anymore of vandalism or break-ins.

Bloomberg does not really know anything about real suffering — otherwise, he would not be so arrogant. I have less to survive on while he has more money than ever. The city does not really do anything better than before, and the response to the Christmas blizzard shows the city does less. There is no more bang for the buck — just a fizzle.

I believe we ought to know as much as possible about a public figure. A public figure makes decisions which affect us all.

I am not pleased with our mayor for the reasons listed. I think he is out of touch.

E. Simanovich
Richmond Hill

Sales tax exemption for cheap clothes

From Fox 5:

New York state is bringing back its sales tax exemption on clothes and shoes, but it will be for items costing only half as much as under previous exemption periods.

Clothes and shoes costing less than $55 per item will be exempt from the state's 4 percent sales tax from April 1 through March 31, 2012. The state's prior sales tax exemption was for clothes and footwear selling for less than $110 per item. That exemption will be restored on April 1, 2012.

Time to bend over again

NEW YORK (CBS 2) — Get ready for your clothing budget to take a hit. Starting this Friday, afforable clothes in New York will become more expensive.

The state’s sales tax exemption for clothing and footwear costing less than $110 will expire. That means a 4-percent price increase starting on October 1.

The tax was reinstated to help close the state’s budget deficit.

The exemption returns next April, but only for purchases less than $55.

We have a state budget!

Just stopping in briefly to update y'all on the situation in Albany.

One major item in the recently passed budget affecting us is this, via Crains:

Eliminating the sales tax exemption on clothing and shoes costing under $110. The exemption would end in October, then return April 1, but exempt clothing and shoes worth $55. The $110 exemption would return April 1, 2012. That is supposed to bring in $330 million.

Might I add that if I waited 4 months to finish a project, I wouldn't have a job. Hell, if it was 4 days I wouldn't have a job.

In other news, they also caught the guys who killed the gas station attendant in Flushing and the young man on the J train platform.

The rest can wait.

Discuss and I'll be back before you know it.

Here we go again....

From CBS 2:

The New York State legislature is considering a host of new tax increases to help deal with its budget crisis.

Now there's talk of restoring a tax break that many New York shoppers probably take for granted.

For the last three years, clothing and shoes costing less than $110 have been exempt from the state's four percent sales tax, costing New York $690 million in tax revenues each year.

With a state budget gap of $9.2 billion dollars and a budget that's three months late, there's talk of bring back the sales tax on clothes under $110.

Governor Paterson confirms that informal tax discussions with Albany lawmakers are underway.

"They have some proposals on the table," said Paterson. "We're reviewing them, and frankly, they don't sound bad."

Sales tax collection down

From Crains:

Last year's county sales tax collections in New York were the worst in more than 17 years, according to a report released Monday by New York State Comptroller Thomas DiNapoli.

While Westchester County saw the largest sales tax collection decline, of 10.3%, tax collection in New York City, which includes five counties, still fell a whopping 5.9% in 2009, compared with the year earlier. Overall, gross county sales tax collections were $6.2 billion statewide, a 6% decline from that collected in 2008.

“This is yet another sign that the Great Recession is having a continuing impact on our communities across New York,” said Mr. DiNapoli in a statement. “These numbers are sobering.”