Menu
Tax Notes logo

NYC Council Seeks Tax Deferral Programs in Upcoming Executive Budget

Posted on Apr. 9, 2020

While acknowledging the need for budget cuts in light of the COVID-19 pandemic's financial impact, the New York City Council is calling for tax deferral programs and maintained essential services in response to the mayor's preliminary city budget.

“As we make the tough decisions about where to find savings and efficiencies, it is imperative that the basic social safety net programs remain untouched, and in some cases expanded with additional investments,” the council said in an April 7 release.

The council sent its response letter to Democratic Mayor Bill de Blasio’s fiscal 2021 preliminary budget the same day.

The $95.3 billion preliminary budget, released by de Blasio January 16, was reported to be lower than in previous years in the face of a $6 billion state budget gap. The mayor and the council will have to finalize the budget by June 30.

According to the council, members were unable to complete half of the scheduled budget hearings and had to cut short the review of a preliminary financial plan because of social distancing measures.

The council recommended that the administration implement tax deferral programs for homeowners and small property owners struggling because of COVID-19. It also suggested a rent deferral and relief program to help renters for the duration of the pandemic.

Small and nonprofit property owners should also be provided with targeted property deferrals, according to the council’s letter. It recommended that the administration call on large and financially stable property owners to prepay their fiscal 2021 property tax bills by July 1 in order to fund the deferral program.

The council also suggested funding low-interest property tax deferral programs for small commercial, hotel, and apartment building owners that provide rental relief, or for owner-occupiers whose businesses have struggled during the pandemic. Once these are in place, the council recommended seeking federal funds for deferral forgiveness as part of targeted relief.

The mayor announced $1.3 billion in cuts for fiscal 2021 as part of his program to eliminate the city budget's gap that is expected to result from the state budget's shortfall and to address revenue losses caused by the COVID-19 pandemic, according to an April 7 release from spokeswoman Freddi Goldstein.

The program's savings include a $273 million cut in education and elimination of the Summer Youth Employment Program, thereby saving $124 million. De Blasio's executive budget is expected to be released by April 23.

According to an updated analysis released March 23 by City Comptroller Scott Stringer (D), $4.8 billion to $6 billion in tax revenue losses is estimated for fiscal 2020 and 2021.

The council did not respond to a request for comment by press time.

Copy RID