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Published by Jon Campbell
SOS Book
SOS Book

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Published by: Jon Campbell on Jan 08, 2014
Copyright:Attribution Non-commercial


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New York and the nation are on the cusp of a
manufacturing revival. A recent survey by the Boston
Consulting Group found that more than half of
executives at manufacturing companies with sales of
more than $1 billion are considering returning some
production to the United States from China, an increase
from only 37 percent in 2012.7
In addition, the number of companies in the
process of moving back also rose, with 21 percent
actively engaged in bringing work back to the United


Businesses paid more
than $18 billion in
property taxes in 2012,
over a third of all
property taxes

States, up from 10 percent in 2012.8 The study cites
competitive labor rates, proximity to customers,
product quality, skilled labor, and transportation costs
as the leading reasons for this turnaround. Given New
York’s strength in these areas, the Governor will
propose cutting taxes even more to attract
manufacturers considering re-investing in the U.S.
Significant attention has been paid to the burden
of real property taxes on homeowners, but a substantial
share of real property taxes are also paid by businesses.
Businesses paid more than $18 billion in property taxes
in 2012, over a third of all
property taxes collected.
And because business
property taxes, unlike
corporate income, are
owed regardless of
profitability, they are an
especially onerous barrier to growth for start-ups and
other young businesses so critical to New York’s future.
To address this burden on businesses, Governor
Cuomo proposes a property tax credit to offset a portion
of a manufacturer’s income tax liability. This refundable
credit would equal 20 percent of a manufacturer’s


annual real property taxes. This credit would lessen a
major barrier to economic competitiveness and would
attract new manufacturing businesses, especially to
Upstate New York and the suburbs of New York City.
The credit would provide $136 million in tax relief to
over 21,000 existing manufacturing firms and would
reinforce our message that New York is cutting taxes
and is the place to do business.
Upstate manufacturers will receive even greater
tax relief, with the proposed reduction of the corporate
income tax rate to zero for manufacturers located
outside of the MTA region. This proposal is described in
Chapter 2.

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