Before signing the first bill, Introductory Number 863 sponsored by Council member Berman, the mayor commented that this had been accomplished in conjunction with his administration. He added, "Currently, commercial tenants south of 96th Street in Manhattan are subject to the Commercial Rent Tax if they pay over $100,000 in annual rent. This legislation will remove a significant number of commercial tenants from the tax rolls by applying the Commercial Rent Tax only to tenants who pay $150,000 or more in annual rent. In addition, the bill will grant a partial tax credit to tenants with annual rents between $150,000 and $190,000."
He cited the complete elimination of the tax from north of 96th Street in Manhattan and the other boroughs of the city as progress made during his administration. "The Commercial Rent Tax," he added, "has long been viewed as a disincentive to doing business in the city." He also cited the reduction of the rate from 6% to 3.9% in areas where it is still imposed.
"By signing this bill, we take another step toward the complete elimination of the Commercial Rent Tax. The increased rent-exemption level provided by this legislation will drop an additional 3,000 businesses from the Commercial Rent Tax rolls, saving taxpayers approximately $84 million from Fiscal 2001 to Fiscal 2005."
Just before signing the bill he noted, "For decades, the high taxes imposed on businesses in New York City crippled our ability to compete with other areas and depressed our economic growth." He added that his administration has worked to undo what he termed "unfair and excessive taxes that stifled job creation" and drove away business.
On the subject of Introductory Number 873, sponsored "at my request by Council Members O'Donovan and Fiala," the mayor noted the legislation allows the city to make a request of the state for inclusion in its Empire Zone Program. If the state administered economic development initiative grants the request, this would bring the tally of Empire Zones in the city to 10 in all.
"The West Shore Empire Zone would include 700 contiguous acres in four distinct areas of Staten Island," Giuliani explained. "Much of the proposed zone's land is vacant and designated for manufacturing. The incentives provided by the Empire Zone Program would spur growth and economic development in these areas, bringing investments and jobs that would breath new life into many of Staten Island's manufacturing districts."
He concluded just before signing the bill by urging the state to grant the city's request. He called on them to do so "that Staten Islanders and all New Yorkers can real the economic benefits of the West Shore Empire Zone."
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