HUDSON VALLEY RESPONDS TO GOVERNOR’S PROPOSAL TO MITIGATE MTA TAX IMPACT AND IMPROVE REGIONAL EQUITY

The Hudson Valley Regional Coalition recognized the efforts of Governor David Paterson today, after he announced that he will put forward proposed improvements to the MTA mobility tax in his 21-day amendments to the budget.

“In these difficult economic times, New York must reduce burdens for business instead of creating them,” said Michael Oates, president of the Hudson Valley Economic Development Corporation. “We are pleased that our advocacy has led to these proposed changes.”

“The Governor is trying to meet us halfway, and we can only hope others see the value in this more equitable approach,” said Jonathan Drapkin, president of Pattern for Progress. “The Governor’s more proportional solution is not perfect, but in this economic climate, I believe it is an enormous win if it were to happen.”

The amendment “makes key improvements to the current tax structure, promoting regional equity and delivering relief to small businesses,” according to the Governor’s announcement. The proposal cuts the tax rate in half – from .34% to .17% – for counties outside of NYC while increasing the tax rate for NYC businesses. It also exempts self-employed individuals and partners with income below $100,000, giving relief to an additional 400,000 small businesses.

Paul Vitale, vice president for community and government relations for the Business Council of Westchester, said “We support this reduction as a step in the right direction, while we continue to press for the repeal of the MTA payroll tax.”

“The Hudson Valley Regional Coalition is committed to challenging our elected officials to come up with real and fair solutions to our budget crisis,” said Oates. “This is an important first step but certainly not the last step in the process.”

Oates and Drapkin will meet on February 23 with Tim Gilchrist, the Governor’s senior advisor for infrastructure and transportation, to “continue the fight on behalf of the businesses in the Hudson Valley,” they said.

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