Skip to Content

First look at 2021 NY state budget: Major tax, spending increases expected

Remaining Ad Time Ad - 00:00

(WBNG) -- Even after receiving more than $12.5B in direct federal stimulus, budget proposals show the State of New York still plans to raise taxes by at least $7B next year.

The state assembly and the state senate both released their one-house versions of the state budget, and both include numerous new taxes.

Many of these taxes are aimed at the wealthiest New Yorkers, such as an increase in income tax for those making at least $1M and a new tax on second homes in New York City.

However, State Sen. Fred Akshar (R, District 52) told 12 News Monday he expects the burden to eventually fall on middle-class families across the state.

"I think the one that stands out the most and every single one of your viewers should understand that an eighteen percent surcharge on utility companies and insurance companies, will result in one thing: an increase in your electric bill, and an increase in your insurance bill," Akshar said.

The state senator said he had not yet read through all of the specifics of the bill as of Monday morning, but he was happy a proposition to legalize mobile sports betting was included in the senate's proposed budget.

The state assembly's budget would total more than $200B, with an increase in general fund spending of more than 20% compared to last year; this version of the bill includes a more than 10% increase in spending compared to the governor's proposed budget.

No word yet on if cannabis legalization will be included in the final budget; the state assembly and state senate now have to reconcile their differences in the budget, approve it in both chambers of the legislature, then have the governor sign it into law.

New York's budget deadline is April 1.

Josh Rosenblatt

Skip to content