Tax Cuts Scheduled In State Budget Agreement

Martin J. Golden

March 29, 2006

The 2006-07 State budget agreed on by the Senate and Assembly includes substantial tax cuts for working families and businesses totaling over $4 billion.

Senator Golden’s efforts to eliminate the sales tax on clothing under $110, reduce property taxes and abolish the marriage penalty will provide relief for the working families of our community. The tax cuts also help the small businesses by encouraging the community to buy locally.

Relief in regard to sales tax, property tax, and income taxes is as follows:

· The budget agreement includes $600 million in tax relief by eliminating the sales tax on clothing under $110

· The budget includes the Senate’s plan for property tax relief in the form of direct rebate checks to property taxpayers. Rebate checks will range from $300 to $800, depending on where you live and if you’re a senior citizen.

· The agreement also includes the elimination of the marriage penalty which will save married couples who take the standard deduction and file jointly, $41 million.

Senator Marty Golden stated, “Opportunities that allow for New Yorkers to keep
more of their hard earned money, in the form of tax relief, are grand and are worth seizing. I am pleased to see that this year’s State Budget is on path to provide important tax relief to New York’s families. This is the direction New York State must be going in order to allow New York to flourish and grow in the future.”

The budget also extends and expands Senator Golden’s highly successful motion picture film tax credit. The film tax credit has brought back to New York over $1 billion in economic activity that would have otherwise went to locations such as Los Angeles and Canada