ASTORIA – New York State Assemblymember Aravella Simotas announced on March 9 new legislation to provide income tax and franchise tax relief to businesses that suffer significant losses stemming from state or local infrastructure projects. Assemblymember Simotas said, “I cannot sit still while small businesses become sacrifices on the altar of subway maintenance work and renovations. My bill will strike a balance so that the costs of achieving a common good stemming from infrastructure projects are shared and not borne solely by a struggling small business sector. Astoria’s merchants, small shops, and restaurants are absolutely essential to the life of our community, giving the neighborhood its vibrancy and its character. These businesses must survive.”
In Astoria, two stations on the N and W line have been completely closed since October 2017 as part of the MTA’s Enhanced Station Initiative (ESI), the 30th and 36th Avenue stations. The closures have caused a serious drop in foot traffic and decreased numbers of customers for the small shops, restaurants, and bars that are the economic backbone of the neighborhood. Construction equipment has also made it difficult to access or even see some of the businesses along 31st Street. As part of the ESI, the 39th Avenue and Broadway stations are scheduled to be shut down this summer once 30th and 36th Avenues open.
Video by TNH/Eleni Sakellis
The Simotas Legislation (A10003) would give small businesses an income tax and franchise tax credit covering one hundred percent of their lost income due to state and local infrastructure projects for taxable years commencing in 2018. A small business is defined as one that is independently owned and operated and has 100 or fewer full time employees. Small businesses would be eligible for tax credits when they suffer a financial loss of at least 25 percent of projected revenue as a result of an infrastructure project.
Simotas noted that her father was a small business owner for over 35 years, now retired, and when he heard about the subway station closures in Astoria, “his first question was ‘what about the businesses?’”
State Senator Michael Gianaris said in a statement, “ The MTA’s ill-advised Enhanced Station Initiative not only hurts commuters but is putting decades old businesses at risk. We must do what we can to help our local economy survive this assault.”
City Council Member Costa Constantinides said, “The MTA has continued to disregard our community and keep entire subway stations closed for merely cosmetic updates. Our small neighborhood businesses have been hurt by these unnecessary and misguided closures and other infrastructure projects. Our entire community loses if our small businesses continue to suffer these negative effects. Giving these businesses tax credits would show Astorians that our government cares about the livelihood of our small business owners and their families. It would also ensure that our neighborhood can continue to grow while providing world-class opportunities for shopping, food, and entertainment for all residents. Thank you to Assemblymember Simotas for her leadership on this important legislation.”
Frank Arcabascio, Acting Director 30th Avenue Business Association and owner Redken Saloon Salon, 36-17 30th Avenue, Jesse Tang- owner of Pink Nori, a Japanese restaurant at 36-06 30th Avenue, and Vasilios Gatzonis of Akropolis Meat Market at 31-04 30th Avenue also expressed their support for the tax relief bill noting that the shutdown of the 30th Avenue station is crippling their businesses. Gatzonis said that half his business for the year is during Easter time, and asked how will his customers pick up the lambs when the parking is taken up with construction materials.
Community Board 1 District Manager Florence Koulouris said, “We’ve been monitoring the situation in Astoria since the subway station renovations began and sadly some businesses have already been closed from losing so many customers. Others are struggling to survive. The Community Board applauds Assemblymember Simotas for her dedication to Astoria business owners and residents. I urge the legislature to pass her tax relief bill which would enable businesses to survive through a difficult time.”
When asked when the businesses would receive tax relief, Simotas told The National Herald that the bill has to pass in the Assembly and the Senate, and then must be signed into law by the Governor which could take months, but the tax relief would apply to January 2018 and on.
The post Simotas Announces New Bill Providing Tax Relief for Small Business Hurt by MTA Closures appeared first on The National Herald.