Tuesday, December 16, 2008

NYS 2009 Budget Announced

Gov. Paterson released a $121 billion budget today that proposes $4 billion in new fees and taxes. Examples are:
  • An "iPod tax" that charges state and local sales tax for "digitally delivered entertainment services" - in other words, that new song you download.
  • State sales tax at movie theaters, sporting events, taxis, buses, limousines and cable and satellite TV and radio.
  • Costlier driving with the repeal of the 8-cents-per-gallon sales tax cap on motor and diesel motor fuel, plus and increase in the auto rental tax.
  • Tuition increases as SUNY and CUNY, $620 and $600 a year respectively.
  • A 50 cent tax on cigars. The current tax is equal to 37% of the wholesale price, or 34 cents a cigar.
  • No more sales tax break on clothes and shoes worth $110 or less, except during two weeks a year.
  • Higher taxes on wine, beer and flavored malt beverages. He would also impose an 18% tax on non-nutritional drinks like soda.
  • The rich would pay more for luxury items through an additional 5% tax imposed on cars costing more than $60,000, aircraft costing more than $500,000, yachts costing at least $200,000 and jewelry and furs costing in excess of $20,000.
  • In addition, a host of a fees, including those related to motor vehicle licensing and registration, parks and auto insurance, would go up, as would various state-imposed fines.

Read more about the budget in today's Observer-Dispatch.

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