On Saturday, the New York State Assembly approved the final state budget for FY2023 which included several significant measures to provide financial relief to taxpayers amidst rising prices and an economy still recovering from the COVID-19 pandemic.
“This year’s state budget is a much-needed assistance for families and homeowners working to get by,” said Assemblymember Fred W. Thiele, Jr. “By accelerating middle-class tax relief and suspending the state’s gas tax, we are putting dollars back into the pockets of millions and further securing our economic recovery and future. The Assembly stands with New York families and is committed to providing relief at kitchen tables.”
- Gas Tax Holiday: In an effort to spare some pain at the pump as fuel costs have risen due to the war in Ukraine, New York State will suspend a 16 cent per gallon gas tax from June through December of 2022. It is expected that this measure will provide over $500 million in needed relief for families and businesses across the state. Localities will also have the option to cap local sales tax rate on gas to only be applicable to prices below $4 per gallon. Assemblymember Thiele cosponsored the original legislation to enact this change and supported its inclusion in the enacted budget.
- Homeowner Tax Rebate Credit: The budget creates a new property tax relief credit for low- and middle-income households to receive a percentage of the homeowners’ existing STAR credit. Statewide, the average credit amount for homeowners making less than $75,000 is estimated to be $1,050 and will be delivered in the Fall of 2022. Assemblymember Thiele is the current sponsor of legislation (A.8688) that would further enhance the real property tax relief credit by expanding the eligibility requirements and increasing the maximum credit amount to provide further relief to working families permanently.
- Accelerated Middle Class Tax Cut: The budget will speed up the phase-in of a tax cut for middle-class New Yorkers to be fully in place by 2023, two years ahead of the originally planned 2025 fulfillment date. This measure is expected to deliver $1.2 billion in tax relief for New York residents.
- Childcare Subsidies: To address the rising costs of childcare across the state, the budget expands the eligibility requirements to access childcare subsidies to 300% of the federal poverty level, up from 200% in years prior. This will allow families of four making up to $83,000 to access these crucial subsidies.
- Supplemental Earned Income Tax Credit: The budget will provide a credit equal to 25% of 2021 EITC benefits to taxpayers. This credit supplements the federal Earned Income Tax Credits which assists low- to moderate-income individuals and families in the workforce.
- Housing and Utility Arrears: To help renters and landlords recover from the COVID-19 pandemic, the budget includes nearly $1 billion in funding for the Emergency Rental Assistance Program (ERAP), and the Landlord Rental Assistance Program (LRAP), as well as $250 million for utility arrears for New Yorkers with outstanding pandemic-related debts.