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Sales, income tax hikes plus water bottle deposit part of state budget mix

By JAMES M. ODATO AND RICK KARLIN, Capitol bureau
First published in print: Saturday, March 28, 2009

ALBANY ­— With new taxes, a big financial lift for the Metropolitan Transportation Authority and a Rockefeller drug law reform package included, the state's 2009-2010 budget will be printed this weekend, clearing the way for passage next week, legislative leaders said Friday.

     
The goal is to have the financial package passed at about the arrival of the new fiscal year Wednesday, Assembly Speaker Sheldon Silver and Senate Majority Leader Malcolm Smith said.

The plan is expected to bring a sales tax increase of .5 percentage points and a provision for local governments to match the rate. The state would raise about $1 billion by increasing sales taxes to 4.5 percent from the current 4 percent.

Also included is an increase in personal income tax rates for relatively wealthy New Yorkers, who earn more than $300,000 per year.

Another revenue producer, estimated to bring in $100 million, is expansion of the state bottle recycling law to include water bottles, previously exempt from the nickel deposit.

The measure may also include raising to 3.5 cents from 2 cents, the "handling fee'' bottlers pay retailers who collect the recycled containers.