Senator Charles J. Fuschillo Jr. recently announced that almost a half a billion dollars in state tax reductions went into effect on Jan. 1. These tax changes include a reduction in the state Gross Receipts Tax on electricity and natural gas, an increase in the College Tuition Tax Credit/Reduction and a reduction in the personal income tax rate.

The tax changes which took place on Jan. 1 include the following:

* College Tuition Tax Credit - Senator Fuschillo sponsored the College Tuition Tax Credit/Deduction program in 2000 to help families afford the cost of higher education. On Jan. 1, the final phase-in of the program will enable taxpayers to deduct 100 percent (up from 75 percent) of college tuition expenses up to $10,000 or receive a four percent refundable tax credit on college tuition expenses up to $10,000. For tuition expenses of less than $5,000, such as tuition at SUNY and CUNY, the tax credit is a minimum of $200 or the amount of tuition, whichever is less. The final phase-in will save taxpayers $55 million.

* Gross Receipts Tax (GRT) - In 2000, Senator Fuschillo was part of the fight that led to a reduction in the state Gross Receipts Tax on electricity and natural gas. Various GRT rate reductions on Jan. 1 will result in savings of $90 million for residential, business and manufacturing customers in New York State.

* Personal Income Tax Reduction (PIT) - The first scheduled phase down of the increase in the state personal income tax became effective on Jan. 1, saving taxpayers as much as $300 million. The rate will go from 7.5 percent to 7.375 percent for: married taxpayers filing jointly with income of $150,000 to $500,000; single heads of households earning $125,000-$500,000; and single filers earning $100,000-$500,000. The PIT increase included in the 2003-04 state budget is scheduled to completely phase out in 2006.

"In 2000, the Senate cut more than $1.5 billion in taxes to help both businesses and individuals and the final phase of this tax reduction plan kicks in on New Year's Day 2004," Fuschillo stated. "And on January 1, we [took] the first step toward keeping our commitment to phase out the tax rate increase on certain incomes that was a part of the budget adopted in 2003. All these taxes were important in helping our state in the past but now we need to make sure that businesses and individuals who have paid their fair share are able to see some tax relief."