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Home > ADVOCACY > Where We Stand > Tax Exemption Repeal-Printers


April 6, 2010

Hon. Dennis Gabryszak (sent to all members of the WNY State Assembly delegation)
New York State Assembly
920 Legislative Office Bldg.
Albany, NY 12248

Dear Assemblymember Gabryszak:

On behalf of the 2,500 employer members of the Buffalo Niagara Partnership, I urge you to oppose A.9710-B Part (R) which repeals Subdivision (n) of Section 1115 of NYS Tax Law which currently provides an exemption from sales and use taxes on printed promotional materials produced in-state. The repeal of this sales tax exemption is nothing more than an 8% tax increase that has the potential to cripple the entire printing and marketing industry in New York.

The Assembly’s proposal repeals a crucial exemption that has been in place since 1989, protecting New York State-based printing firms against out-of-state competitors that enjoy much more favorable tax climates. Due to New York’s extremely cost-sensitive printing and marketing industry, this proposal will drive printing and marketing work to out-of-state companies, leaving in its wake up to 4,200 in job losses and $400- $600 million in lost sales, putting the entire printing and marketing industry at a significant competitive disadvantage with out-of-state and foreign firms.

Ironically, New York State revenue will not increase dramatically from the repeal due to the significant loss in tax revenue for the state from the loss of thousands of jobs in directly and indirectly related industries. Given that this type of work can be easily produced anywhere and customers cannot absorb an 8-10% price increase as they themselves struggle to remain competitive, the production of printed materials will quickly migrate out of New York State if this proposal remains part of the Assembly’s 2010-11 Budget proposal.

The solution is clear: New York State must cut the size and cost of government. It’s time to stop bleeding New York’s employers dry in an attempt to find money to finance Albany’s overspending. I urge your opposition to Part (R) of A.9710-B so that New York’s printing and marketing industries can remain a vital part of our state’s economy. 

Sincerely,

Andrew J. Rudnick

cc.    Governor David Paterson
         WNY State Senate delegation