COUNCIL FINANCE COMMITTEE UNANIMOUSLY ENDORSES TAX DELINQUENCY REFORM MEASURE

In Maria D. Quiñones-Sánchez by admin

Councilwoman Sanchez Introduces Legislation to Reform The “Use and Occupancy” Tax, Creating Strong Protections for Small Businesses

Today Councilwoman Sanchez introduced legislation to provide Use and Occupancy tax (U&O) relief to thousands of small businesses, providing badly needed assistance to the sectors facing the stiffest tax increases under AVI.

“As AVI moves forward it is important that we, as Council, do everything possible to protect residents and small businesses. As we are debating ‘Homestead’ relief for the City’s homeowners, we should be pursuing similar measures to protect our neighborhood commercial corridors,” said Councilwoman Sánchez. “I believe this bill provides that targeted relief, while simultaneously giving us the financial flexibility to protect residents and support our School District.”

The bill creates an exemption that will eliminate the first $2,000 of “Use and Occupancy” liability for each commercial and industrial property, completely eliminating the tax and reducing administrative burden for thousands of small businesses. It also adds a “City-side” portion to the existing Use and Occupancy tax, allowing for additional revenues that can be used to lower the overall property tax rate.

“Despite our best efforts, AVI has some unintended consequences,” said Councilwoman Sánchez. “At a time when we need to help those facing tax increases, and with our School District struggling for resources, we have to act strategically. I believe this bill will help get us to a fairer and more balanced approach.”

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