Laws now in effect will benefit New York taxpayers
MARY LOU RATH New York State Senator
On Jan. 1, new laws went into effect that will save New York's families and businesses almost $1 billion in taxes, preserve jobs and valuable industries such as manufacturing, and drastically cut down on Medicaid fraud.

As we move forward into a new legislative session, my Senate colleagues and I remain committed to building on our record by providing greater relief to New York State's taxpayers.

The Senate has already announced a three-part plan to significantly expand the Senate-initiated property tax relief rebate program to provide $2.6 billion in property tax relief this year and $3.4 billion in 2008.

This plan would triple the size of direct property tax rebate checks in the first year, give voters greater input on local property tax rates and establish a blue ribbon commission to make reforms to help reduce property taxes.

Laws that went into effect at the beginning of the year include:

+ Empire State Child Tax Credit - To help parents meet the rising costs of classroom supplies and educational materials, this measure gives taxpayers a personal income tax credit equal to one-third of the federal child tax credit for children between the ages of four and 17, saving New York parents $600 million in 2007.

+ Elimination of the Marriage Penalty - Recognizing the unfairness that requires taxpayers to pay more simply because they are married, legislation passed last year corrects this inequity by bringing the standard deduction for married taxpayers in line with the one granted to single taxpayers. Beginning this year, married taxpayers will see an increase in their standard deduction to $15,000 for joint filers to $7,500 for separate filers, saving married taxpayers $41 million.

+ Phasing in of the 'Single Sales Factor' - Under previously existing law, businesses that increased payroll or capital investments in the state incurred a higher state income tax liability, which encouraged job outsourcing, especially in the manufacturing, securities and broadcasting industries.

Now, with the implementation of the second phase of a three-phase plan, the tax has been reduced and will not only help businesses currently operating in New York but will also encourage outside companies to locate here as well, creating more jobs within our borders.

This initiative is expected to save New York businesses $43 million in 2007 and $130 million when fully implemented.

+ Medicaid Inspector General - The Legislature established an independent Office of the Medicaid Inspector General within the state Department of Health. The inspector will establish regulations to root out fraud in the system that could potentially save taxpayers billions of dollars.

These represent just a few of the new laws aimed at enhancing the quality of life for New York's citizens.

For a complete list, please visit my Web site at www.senatorrath.com or contact my office.