7/11/08 London-New York City Mayor Michael Bloomberg said this week that he would halt a $400 property tax rebate to help fill a budget shortfall. The rebate checks have been sent out annually since 2004.
The mayor detailed both budget cuts and tax increases that would help to offset the budget gap, which is estimated to reach as much as $4 billion in the next two years. Many members of the city council were dismayed at the announced tax increases and the fact that the city won’t send out the rebate checks this year.
Mr. Bloomberg estimated that cancelling the rebates would save $256 million and noted that “We simply cannot justify sending out the checks when the economy is reducing our revenues even further than we had predicted,” at a city hall news conference.
In addition to the rebate checks, Mr. Bloomberg is asking city council members to increase property tax rates by 7 percent before January, which is another blow to residents of the city.
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