LAWMAKER TO REINTRODUCE SALES TAX FREE ZONE
By [Dan Rivoli] Second Avenue business owners struggling during construction of the subway are demanding a remedy. After two failed attempts, a lawmaker is going to reintroduce a 2008 bill to create a sales-tax free zone in the area. â??It would drive foot traffic to a tax-free zone, especially during economically difficult times, said Assembly Member Jonathan Bing. In 2008, Bing pushed the sales-tax free zone and the creation of a state grant fund. The grant fund gained the most traction and the Legislature passed the bill only to be killed on the governor"s desk. The cost to the state and fear of setting a precedent were the main reasons for the veto, which may hurt this bill"s chances. Assembly Member Micah Kellner, Bing"s East Side colleague, sponsored a bill to give property tax abatements to landlords that give rent breaks to small businesses. â??Any reduction to the income, however small, would be difficult to do, in terms of getting legislation passed, Bing said. Owners of small businesses on the Second Avenue Subway construction route testified to a State Senate committee Nov. 30 that they need assistance, such as a sales-tax abatement, to stay afloat. Bing said he has spoken to incoming-Lieutenant Governor Robert Duffy about the situation businesses near Second Avenue Subway construction are facing. â??I"ve already put him on notice in terms of problems Second Avenue merchants are having, Bing said.