LAWMAKERS FIGHT TO ENSURE RECOVERY AID FOR LOWER MANHATTAN WON'T BE TAXED
Washington, DC - Congresswoman Carolyn B. Maloney (D-NY) and several other New York Lawmakers introduced legislation yesterday to protect lower Manhattan businesses and residents from having to pay any taxes on 9/11 recovery assistance.
While the IRS recently announced that they were planning to exempt Lower Manhattan residents from most, if not all taxes, on Federal Grants given to them to recover from 9/11 or grants given as incentive to move to or stay in the area, the IRS has not yet made a determination on possible taxes on aid received by businesses. Additionally, there is still no commitment that all residents will be exempt from all possible tax consequences as a result of receiving 9/11 aid.
In order to prevent any of the aid from being possibly subject to tax, Mrs. Maloney, along with New York Reps. Crowley, Serrano, Engel, Towns and Hinchey, introduced HR 5624 the "September 11th Assistance Tax Clarification Act."
"It is totally outrageous that anyone would consider taxing disaster relief aid - it doesn't make sense. We hope that Treasury Secretary O'Neill takes action on this issue, but we felt it was important to introduce this legislation pending his final decision in order to protect businesses and residents as they continue to recover from 9/11," said Congresswoman Maloney in a statement today.
Cosponsors of HR 5624 include: Rep. Joseph Crowley (D-NY), Rep. Josè Serrano (D-NY), Rep. Eliot Engel (D-NY), Rep. Edolphus Towns (D-NY), and Rep. Maurice Hinchey (D-NY).
To view the bill, go to https://thomas.loc.gov/ and enter Bill HR 5624.
In late September, responding to reports that the IRS may treat $772 million in federal disaster recovery grants to businesses and individuals in lower Manhattan as taxable income, several NY lawmakers sent a letter to Treasury Secretary Paul O'Neill and IRS Commissioner Charles O. Rossotti to ask that they immediately declare the aid tax exempt. No response has been received. The letter can be viewed by going to: https://maloney.house.gov/sites/maloney.house.gov/files/documents/olddocs/Sept11/93002IRS.pdf