Featured News - Current News - Archived News - News Categories

Metro Creative Graphics
Metro Creative Graphics

Hochul announces FY 2023 budget investments to deliver tax relief to New Yorkers


Mon, Apr 11th 2022 11:00 am

Delivers motor fuel state tax relief

√ Accelerates a $1.2 billion-dollar middle-class tax cut & provides a homeowner tax rebate credit for almost 2.5 million people

√ Provides up to $250 million in tax credits and relief for small businesses' COVID-19-related expenses and exempts 15% in eligible small business income from taxation through a tax relief program

Gov. Kathy Hochul recently announced multiple tax relief investments in the fiscal year 2023 budget. The enacted budget includes tax relief for the middle class, small businesses and homeowners to provide more cash for working families across the state.

Hochul’s team said, “Key budget victories include relief from the state taxes on motor fuels as New Yorkers face rising energy prices, accelerating the implementation of the middle-class tax cut, creating a tax credit for small businesses' COVID-19 related expenses, providing small business tax relief, and a homeowner tax rebate credit.”

The governor said, "This budget provides much-needed tax relief for thousands of small businesses and millions of New Yorkers, and reduces the tax burden for those who need it most. In a post-COVID-19 era, New Yorkers will recover from the pandemic and lead the nation in an economic resurgence, and I applaud the legislative leaders for their collaboration to help ensure this historic budget leaves no one behind."

To address the high cost of gasoline, which has surged in recent months as a result of the war in Ukraine, New York will suspend the state sales tax on motor fuels, the separate motor fuel tax, and the metropolitan commuter transportation district sales tax imposed on motor fuels from June through December, providing an estimated $585 million in relief for working families and businesses statewide.

Hochul’s team said, “In order to protect consumers, commuters and the state's infrastructure, the plan:

“√ Directs retailers to pass the entirety of this tax savings to consumers;

“√ Transfers money from the general fund to the dedicated funds to offset the estimated revenue lost from suspension of these taxes – ensuring no negative financial impact for the MTA; and

“√ Grants county governments the option to cap the price their applicable local sales tax rate is imposed on, at $4 per gallon.

“This state budget will accelerate tax relief to middle class New Yorkers by implementing reduced tax rates early, providing relief to 6.1 million New Yorkers. The reduces tax rates are part of an eight-year phase-in of personal income tax cuts for middle class taxpayers, which commenced in tax year 2018 and was scheduled to be completed with the 2025 tax year. This budget will allow for the full implementation of the tax relief to take effect this year.

“Small businesses were hit particularly hard by the pandemic downturn. In an effort to continue the state's support for our small businesses, the state budget includes a new refundable tax relief program targeting COVID-19-related expenses for small businesses. The program provides up to $250 million in additional relief to small businesses. Eligible COVID-19-related capital investments include, but are not limited to:

“√ Costs associated with expanding space to accommodate social distancing;

“√ HVAC equipment;

“√ Expenses related to outdoor space expansions; and

“√ Machinery and equipment to facilitate contactless sales.

“In addition, this state budget provides much-needed tax relief by increasing the small business subtraction modification from 5% to 15% of net business income or net farm income, and expands the benefit to include pass-through entities with less than $1.5 million in NY-source gross income. This proposal will aid an estimated 195,000 small businesses through one of the most challenging business climates in modern history.

“The state budget also creates a new property tax relief credit, the Homeowner Tax Rebate Credit for eligible low- and middle-income households, as well as eligible senior households. Under this program, basic School Tax Relief (STAR) exemption and credit beneficiaries with incomes below $250,000 and Enhanced STAR recipients are eligible for the property tax rebate, where the benefit is a percentage of the homeowners' existing STAR benefit.

“Outside of New York City, the average benefit will be nearly $970, providing relief to more than 2 million property tax-paying households. The New York City average benefit will be about $425, with benefits reaching another 479,000 property tax-paying households. For homeowners with income below $75,000, the statewide average credit is estimated at nearly $1,050, benefiting an estimated 837,800 recipients. The benefit will be in the form of an advanced credit, getting benefits in the hands of New York homeowners more quickly. Credits will be an advance on tax year 2022 income tax returns, to be directly sent to eligible homeowners beginning in fall 2022.

“Together, these tax relief programs will provide meaningful support for New Yorkers as we emerge from the COVID-19 pandemic and rebuild our economy.”

Hometown News

View All News