Tax reductions of $10.4B through 2003

Supports Task Force to continue reduce taxes

• In 1998 the City’s tax burden has fallen to 7.8% as a share of personal income -- lower than in the years leading up to the fiscal crisis in the early 1990’s.
• The creation of the Tax Reform Task Force will look to further reduce the tax burden on New Yorkers. The Task Force’s goal is to make the tax structure in New York City and State more competitive with other large cities and to study ways of streamlining the number of taxes levied on businesses and individuals.
• To assist the Task Force, the City has reserved another $100 million for tax reductions.
• With tax cuts already enacted and those proposed ($338 million), taxpayer savings will double from $1 billion to $2 billion annually.

Eliminated sales tax on clothes; reduced real estate tax

• The Mayor fought for - and won - a complete elimination of sales tax on all clothing and footwear under $110 beginning December 1, 1999. During the City’s most recent tax-free week, sales were reported to have risen over 70%.
• Effective December 1, 1999 the tax rate will drop from 3.9% to 3.4%, and will drop to 3.0% effective June 1, 2001
• There will be a continuation of real property tax relief for Co-op and condo owners.