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Earlier this week, Governor Kathy Hochul announced plans to send qualifying New Yorkers "inflation refunds" of up to $500 "to help address the impacts of inflation on the cost of everyday goods in the years following the COVID pandemic," according to an official press release.
"Because of inflation, New York has generated unprecedented revenues through the sales tax—now, we're returning that cash back to middle-class families," Hochul said during a press conference yesterday. "My agenda for the coming year will be laser-focused on putting money back in your pockets, and that starts with proposing Inflation Refund checks of up to $500 to help millions of hard-working New Yorkers. It's simple: the cost of living is still too damn high, and New Yorkers deserve a break."
The proposal, if approved, would deliver about $3 billion in direct payments to over 8.5 million New York taxpayers in 2025. It would send $300 to single taxpayers earning up to $150,000 per year and a $500 refund to joint tax filers who make up to $300,000 annually.
Estimates suggest the one-time payment would benefit 3,634,000 NYC residents, 1,344,000 Long Islanders, and nearly a million residents in the Hudson Valley, among other parts of the state.
Perhaps most telling is that, according to the Governor's office, New York State has experienced sales tax revenue growth in recent years that "exceeds historical averages." This is largely the result of price inflation—a surplus that would help fund these proposed one-time refunds.
For the plan to become a reality, it would need to be approved by the State Legislature. Hochul and her team are optimistic that this will happen, with the payments expected to begin in the fall of 2025.