Flood victims could have another reprieve for their wallet as two local state representatives seek to remove sales tax on items key to reaching normalcy again.
Assemblyman James Tedisco, R-Glenville, and Senator Hugh Farley, R-Niskayuna, introduced legislation on Tuesday, Sept. 20, to eliminate state sales tax on “essentials” for victims of Tropical Storms Irene and Lee. Sales tax credits are proposed for replacing sump pumps, furnaces, refrigerators, washers, dryers, dehumidifiers, boilers, furniture, construction material, clothing and moving expenses, including renting a truck and storage.
Tedisco said the influx of revenue coming from flood victim purchases was obviously not anticipated by state officials, so the state should not profit off families making needed purchases as they rebuild from the disasters.
“The state stands to earn a windfall in sales tax revenue from all the thousands of New Yorkers who must rebuild their lives. This is money that was not anticipated and would never have been part of the state coffers, therefore the state should not profit off the backs of the victims of these disasters,” said Tedisco in a statement.
Farley echoed Tedisco’s sentiment and said the state needs to help victims move on in any way possible.
“These storms have placed a severe burden on many families and businesses,” said Farley in a statement. “The state needs to assist these persons and their communities as they seek to recover and rebuild from this devastating natural disaster. This legislation will provide some needed relief to help these families and businesses move forward.”
Eligible recipients must reside in or own a business in any county declared a federal disaster area and must show proof of being a flood victim by being certified by an insurer or government official. U.S. Senators Charles Schumer and Kirsten Gillibrand announced on Sept. 7 the Federal Emergency Management Agency awarded Schenectady County public assistance to rebuild and repair infrastructure damaged by Irene.
It might take some time before residents are able put the sales tax credit money back into their pocket. Tedisco said he was unsure if the legislature would go back into session before normal business returns, so a date for passage is unclear. He said feedback from legislators on the bill has been positive.
“We just put it in today with senators and it is in place and ready to go,” said Tedisco. “I think most individuals, whether they were hit as hard as Schenectady and Schoharie counties, I think they realize the devastation of the storm.”
The tax credit would be applicable for the 2011 and 2012 income taxes of individuals or businesses. Tedisco urged flood victims to keep all their receipts for covered purchases to use since the credit is retroactive.
He said he’s witnessed the effects of the storm himself because a staff member at his district office was forced to leave her home after floodwaters receded.
Anna Clifford, office assistant Tedisco, said she decided to leave her Stockade apartment on Ingersoll Avenue in Schenectady. Her 6-year-old son, she said, suffers from diabetes and asthma, so the presence of mold led her to decide not to return.
“I know what I feel like and I can only imagine what other people feel like. Some people have whole homes that were completely washed away,” said Clifford. “Everybody says I seem to be holding up pretty good, but it has been a long three weeks. The whole experience has been kind of surreal.”
Like other Stockade residents, she said she didn’t expect the flooding to be as severe as it turned out.
“I was actually painting my living room as the storm was coming,” she said. “It is pretty surreal. I didn’t expect anything like that. I have seen the water come a little high generally in spring when … everything starts melting. That is when I have seen it flood.”
She said she’s had some expenses due to the storm from moving and placing items in storage. Since the flooding, she has been staying with family members.
“Even through this hard time it has been pretty trying and you just do the best you can to stay positive,” she said. “I saw first hand the devastation, which I have never seen in my life before.”
The storm did unite the community even further, she said.
“The neighborhood came together pretty well though, everybody was helping everybody.”
