Will New Tax Free Zones Save Long Island?
Friday, July 19, 2013
Will New York’s new tax free zones help you keep more money in your pocket each year and reduce the number of months you work every year just to pay the man?
New York Governor Andrew Cuomo recently unveiled a proposal to slash the tax burden for many New Yorkers by setting up new tax free zones around SUNY campuses.
This would essentially eliminate both business and income taxes for those that set up shop or work in these trade zones. The hope is that would help the state shed its high tax and anti-business reputation, and back pedal on the moves which the Governor has admitted has caused many to be “literally taxed out of their homes and businesses”.
The proposal has obviously taken flak from both sides, but with more than a handful of SUNY campuses on Long Island many locals could certainly see some benefit from something like this. It definitely could have the potential to make NY a top global destination for the wealthy, businesses, startups and education.
The concept has worked extremely well to build new financial zones abroad in such as in the British Virgin Islands, Belize, and Dubai which at one point was pegged to far overtake NY as a world financial center.
However, there are two potential issues with the plan…
First Gov. Cuomo likens it to his ‘Property Tax Cap’, which doesn’t appear to being doing much capping on property taxes on Long Island.
Secondly, it doesn’t eliminate the high property taxes or fix the broken property tax system for those living in Nassau and Suffolk County, which means if enacted, it could just mean local homeowners are stuck with even higher, unfairly assessed tax bills to make up for the cuts elsewhere.
So look forward to it, if it can pass, look for ways to get all the business and personal income tax breaks you can, but also seek out help to get your property tax assessment and bill reduced to really get some net benefit out of it.