New York Gov. Andrew Cuomo on Wednesday announced the formation of the New York State Tax Relief Commission, which will identify ways to reduce the state’s property and business taxes.
Two well-known, former leaders of state government will lead the effort, with the goal of providing “relief” to New York’s homeowners and businesses, the governor’s office said in a news release.
Cuomo named former Gov. George Pataki and former State Comptroller H. Carl McCall as the commission’s co-chairmen, the governor’s office said.
The commission’s recommendations for tax relief build off three years of “responsible” budgeting — including holding state spending growth to 2 percent, ending automatic-budget inflators in Medicaid and education spending, pension reform that will save taxpayers tens of billions of dollars, and a downsized state-labor force — the governor’s office contends.
The commission’s recommendations are due by Dec. 6 for inclusion in Cuomo’s 2014 State of the State message.
The budgets and fiscal reforms put in place over the last three years have put the state in a position to “seriously” tackle the “tax-capital” mentality that for “too long” has driven businesses and families from New York, Cuomo said in the news release.
“The new Tax Relief Commission includes two of our state’s most respected leaders, former Gov. [George] Pataki and [former State] Comptroller Carl McCall, as well as other highly-qualified New Yorkers who will examine new ways that we can reduce the burdensome taxes facing our businesses and our families, and by doing so make our state more competitive and fuel economic growth. I look forward to receiving the commission’s recommendations this December so we can include measures in next year’s legislative agenda to help bring further relief to New York’s taxpayers,” Cuomo said.
The new Tax Relief Commission will collaborate with the Tax Reform and Fairness Commission to conduct a review of the state’s taxation policy, including corporate, sales, and personal-income taxation and make recommendations to “improve and simplify” the current tax system, according to the governor’s office.
The state launched the Tax Reform and Fairness Commission last December.
The announcement is drawing positive reaction from at least two business groups.
In his first State of the State address, Cuomo acknowledged that the “high tax burden” put New York’s future in “peril,” Michael Durant, New York state director of the National Federation of Independent Business (NFIB), said in a statement released on Wednesday.
This announcement makes those words “a lot more meaningful,” Durant said.
“New York’s property taxes continue to be one of the most onerous burdens facing small business owners. Reducing property taxes will free up investment capital for businesses and increase discretionary spending power for consumers. Broad business tax cuts will also help many small businesses and put New York on a sound economic and fiscal trajectory,” Durant said.
Cuomo has made some “important” reforms on the spending side, but tax reform remains the “missing ingredient,” Durant added.
At the same time, the group Unshackle Upstate “commends” Cuomo for establishing the commission to advance “broad-based” tax relief.
Brian Sampson, executive director of Unshackle Upstate, made the comment in a statement issued Wednesday.
Unshackle Upstate is a bi-partisan coalition of more than 80 business and trade organizations representing upwards of 70,000 companies and employing more than 1.5 million people, according to its website.
Contact Reinhardt at ereinhardt@cnybj.com