STATEWIDE — NEARLY $3 BILLION in “questionable, arbitrary and downright absurd” state tax expenditures and exemptions could be better used to serve the public, according to a new report published on Friday, Jan. 24 from state Senator Andrew Gounardes, who chairs the state Senate Committee on Budget and Revenue, which oversees state tax policy.
The report highlights several long-standing tax exemptions, expenditures, loopholes and carve-outs that cost New York $2.836 billion in lost revenue while providing little obvious public benefit, ranging from gold bars to private jets to frat houses. The report, titled “A $3 Billion Hole in Our Pocket: A Select Review of Tax Expenditures in New York State Tax Law,” is intended to serve as the starting point for a debate on creating an effective and fair tax system that meets the needs of New York families and funds programs to address the cost-of-living crisis.
Among the points stated: New York forgoes $601 million in taxes by exempting the sale ($1,000 or more) of precious metal bullion like gold bars or coins from sales tax. New York also spends $23 million a year to exempt dues and initiation fees paid to fraternities from the sales tax, as well as taking a $6 million hit by exempting maintenance performed on private jets from sales tax – despite taxing other types of maintenance like car repair.
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