Clear taxes or lose driving license: New York tells defaulters

New York has warned 16,000 delinquent taxpayers to clear their dues or risk having their driving licences suspended.

Under a new programme announced by New York governor Andrew Cuomo yesterday, the state's top tax cheats could have their driver's licences suspended every time the amount of taxes owed by them exceeded $10,000. The measure comes as part of the state budget approved by lawmakers in March.

"Our message is simple: Tax scofflaws who don't abide by the same rules as everyone else are not entitled to the same privileges as everyone else," Cuomo said in a statement.

New York has targeted $26 million in overdue income taxes for recovery this fiscal year till 31 March and therefater around $6 million in subsequent years.

The 16,000 delinquents owed $1.1 billion, according to the New York State Department of Taxation and Finance, with the head of a New York City painting supplies company, Michael Zurawin, reeportedly topping the list with a backlog of $16.7 million in unpaid taxes.

Meanwhile, democratandchronicle.com reports, a new programme to extend tax-free benefits to certain businesses had led to the state downgrading its revenue projections by $323 million through March 2017, new estimates from Cuomo's budget office showed.

Under the programme, known as START-UP NY, businesses would be able to avoid paying taxes for up to 10 years if they created jobs and located near participating college campuses. At the time of the passing of the plan in June, it was claimed to be cost-free to the state budget by Cuomo and his cabinet members, though a memo accompanying the bill acknowledged a potential loss in revenue growth.

When the state's quarterly budget report was released Friday around 6:45 pm, Cuomo's budget came out with revised projection that had been lowered down.

Over the next three fiscal years, the report estimated, START-UP NY would see the state collect $323 million less revenue as against projected when the budget was passed in March, starting with $68 million less next year.

''(The) START-UP NY program, which creates certain tax-free zones on or near qualifying university and college campuses, is expected to result in reduced receipts growth, starting in (fiscal year) 2015,'' the report said.