CM Wong questions CBC on five-year sunset clause and revenue stability
Council Member Wong asks the Citizens Budget Commission about the tax's five-year sunset clause creating fiscal instability. Champaney agrees it's a fiscal risk, notes many sunset taxes get extended, and says revenue yield remains unknown.
Councilmember Wong.
Thank you, Chairs.
I have a question about Citizens Budget Commission.
We have, this tax is a five-year sunset clause.
How does the CBC assess the risk on this five-year sunset clause ending?
after fiscal year 2031.
That creates, would that create instability from the city?
He's revenue planning and would CBC recommend any reauthorization or phase out framework right now?
I think it really depends.
Having a tax that sunsets and is temporary arguably is not the sort of recurring revenue that you would want to base your budget on long term.
So it is a fiscal risk that it is set to sunset, though we have seen that many taxes set to sunset in Albany get repeatedly extended.
So I think there is.
That possibility, I also do think there is a question about comprehensive property tax reform, and if that were to take place, how that would interact with this tax going forward.
But I do think you do raise a good question about long-term planning with regards to a tax that will sunset.
And we really do yet.
Have to wait to see how much revenue it will yield.
So that's an unknown as well.
Okay, thank you.