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Council Hikes Hotel, Property Taxes

NEW YORK CITY-A 33 to 18 City Council vote will rescind a 7% property tax reduction while temporarily raising the hotel tax by 0.875%

By Paul Bubny | Updated on December 19, 2008

NEW YORK CITY-Residential property taxes will go up by 7% and the per-room hotel tax will temporarily increase by 0.875% after the City Council’s 33 to 18 vote Thursday to approve both increases. The two tax hikes are expected to bring in $650 million in revenue for the city.

Technically, the property tax increase rescinds an earlier 7% reduction in the tax rate. The average property tax increase citywide for a single-family home will be $118, while for co-ops with 10 or more units in the building, the average citywide increase will be $162, according to figures from the City Council. The hotel tax hike will average $3 per night.

“The economic crisis has forced all of us in government to reassess our priorities, so that we can balance the budget in the face of record revenue shortfalls,” says Speaker Christine C. Quinn in a statement. “By taking the responsible approach today, we can generate nearly three quarters of a billon dollars, money that will go to funding NYPD’s cadet classes and to employment programs and foreclosure prevention programs. These investments stand in stark contrast to decisions made in the wake of the fiscal crisis of 1975, when the city was forced to reduce the size of the police force by 20%.”

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