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    Updated March 11, 2009

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Governor Paterson, Majority Leader Smith, Speaker Silver Reach Agreement To Eliminate $1.3 Billion In Proposed Tax Increases From 2009-10 Executive Budget

Proposed Amusement/Theatre Tax Withdrawn

Governor David A. Paterson, Senate Majority Leader Malcolm Smith and Assembly Speaker Sheldon Silver today announced an agreement to eliminate $1.3 billion in tax increases included in the proposed 2009-10 Executive Budget. The agreement eliminates new taxes on common items, including previously tax-free goods and services such as clothing under $110, sugared drinks, digital downloads, cable and satellite television, manufacturers' coupons, haircuts, manicures, concerts, movies, live theatre, health clubs, bowling, golf, skiing and others. Additionally, to help businesses and families in a struggling real estate market, a proposal to limit the sales tax exemption on capital construction improvements made to property is no longer advanced.

"The proposed tax increases we are eliminating today were only put forward as a last resort when the deficit ballooned to an unprecedented level," said Governor Paterson. "Now that enhanced federal funding is available, our highest priority must be to provide targeted relief to those who need it most during this economic crisis - average New Yorkers struggling to make ends meet."

"Actors' Equity Association applauds Governor David Paterson, Majority Leader Malcolm Smith and Speaker Sheldon Silver in their announcement today to eliminate $1.3 billion in tax increases in the 2009-2010 Executive Budget, including the proposed tax on tickets to live theater. Broadway, Off Broadway and Touring Productions are important economic engines, bringing thousands of theater-goers and tourists to our City and State each year."

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