Why Your New York Inflation Refund Check Could Be Spent Before You Get It

A plan was revealed earlier this year for the state to issue $500 inflation refund checks to eligible New Yorkers. But some say other tax increases will offset them.

Read More: Plan Revealed: Inflation Refund Checks For New Yorkers

What Is The New York Inflation Refund?

Late last year, Governor Hochul announced the state had raised surplus sales tax revenue due to inflation. In response, a plan to put $3 billion back in the pockets of New Yorkers was revealed. The plan includes sending out fall 2025 refund checks of  $500 for New York families making less than $300,000, and single taxpayers making less than $150,000 would receive $300.

With the expense of everything going up, the checks would be welcome financial relief for many New Yorkers, but some feel additional taxes could offset those refunds.

Local Taxes Could Offset Inflation Refund Checks

According to a Spectrum News report, officials are concerned that local municipalities increasing taxes (also to keep up with the rising costs of providing services) could offset any inflation refunds the state sends out.

Spectrum News says several local governments, like Buffalo, Syracuse, and Watertown, have proposed tax hikes this year. Those hikes could potentially offset any refund checks from the state, and some officials feel those surplus funds would be best if reinvested in cities and towns to help them maintain the services they provide. Another option would be to keep the funds in the state's rainy day fund to offset any potential cuts by the federal government.

Are The New York State Refund Checks Approved Yet?

The planned $3 billion in inflation refunds would be a part of the 2025 state budget, which Spectrum says is still in the process of being approved.