New York Taxpayers Could Get Refunds of Up to $500 Under Hochul Plan

New York|New York Taxpayers Could Get Refunds of Up to $500 Under Hochul Plan

Looking ahead to next year’s state budget and, perhaps, her re-election race the following year, Gov. Kathy Hochul of New York on Monday proposed sending $3 billion in “inflation refund” checks to most taxpayers.

The plan, the first in a series of proposals that the governor typically rolls out in advance of her State of the State address in January, would benefit roughly 8.6 million people, including about 3.6 million in New York City.

Ms. Hochul said the suggested refund will be part of next year’s budget proposal, with the money coming from higher-than-expected sales tax revenue because of higher prices.

If the proposal is adopted as part of next year’s budget, residents who file their taxes jointly and make less than $300,000 would receive $500 checks, while individuals making up to $150,000 would receive $300. The governor said she expected residents to receive the refunds next fall.

“I am sure there are some elected officials or some special interest groups who will weigh in and say, ‘I know how that extra money should be spent,’” Ms. Hochul said during the announcement at Co-op City in the Bronx. “But here is my message: I’m on your side. I believe that this extra inflation-driven sales tax revenue should not be spent by the state. It is your money, and it should be back in your pockets.”

Legislative leaders appeared receptive to the proposal. Mike Whyland, a spokesman for Assembly Speaker Carl E. Heastie, said Assembly Democrats are eager to tackle questions surrounding affordability, whether it be housing costs or food prices.