Newsday from New York, New York • 58

mbt BUSINESS Bigger NY Tax Bite TAXES from Page 49 ASTORIA, QUEENS 40-17 BROADWAY EAST OF STEINWAY ST. CORNER 74a 70C 04 -f MOM THRU FRI PM 1P-F IQ CLOSED MT. SUN 114P.M. BAY RIDGE BROOKLYN 83-04 5th AVE. 718-748-0936 If MON THNU SAT SUN.

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Under the old law he would have paid those taxes at the same rate as a New Yorker who earns $25,000 a year. Under the new law, New York State takes into account the fact that the person earned a total of $75,000. Although the state can tax him only on the $25,000, it will now tax him at a higher rate, to take into account the other earnings. Under the old law, a rich person from New Jersey with only a small income in New York got tax benefits that were actually designed for a poor person, said New York State Tax Commissioner James Wetzler. New York is the 13th state to change its tax laws in this way, Baid Karl Felsen, a spokesman for the state Tax Department.

There have been previous court challenges including a 1987 case in the U.S. Court of Appeals but they have not succeeded. The new law also allows New York to consider the combined earnings of a married couple. For example, if a wife earns $30,000 in New York and a husband earns $20,000 in New Jersey and they receive a total of $5,000 in interest, they would have paid $1,203 under the old law. Under the new law, their hill $55,000 income will be taken into account, and they will end up paying $1,558 on the $30,000 salary.

Aides to Kean said they did not intend to retaliate against commuters who travel the other way. Judge: Share Network TELEPORT from Page 49 ti mates, is worth about $50 million and twice that if the commission later expands the order to a broader range of services. Interconnection has been the single issue of controversy from the day the telephone was invented, said Teleport vice president Robert C. Atkinson. Atkinson said many Teleport customers would use the new private lines to back up their existing New York Telephone links.

Teleports biggest customers are long-distance carriers, which move traffic in and out of the metropolitan area on its fiber-optic cables, and financial institutions, which move vast amounts of sensitive data between locations. While the PSC ordered New York Telephone to make the change, it agreed to give it more flexibility in pricing business-oriented services that could face competition from Teleport and other potential users. We cant comment in detail before we receive the PSC order, New York Telephone spokesman Bruce Reisman said. He said the company would file the required paperwork within 90 dqys and would meet with Teleports representatives shortly in order to come up with a workable arrangement. New York Telephone, which has fought the change since 1986, argued that competitors would gain unfair advantage by cutting prices and that the security of the network was too important to allow nontelephone equipment and employees into its central offices.

The PSC order said the interconnections need not be on New York Telephone property, as long as they offered comparably efficient service. The change could have a significant effect on telecommunications, according to Noam, the PSC commissioner. Cable television companies, for example, could use the new interconnection capability to put together an infrastructure that would support telecommunications services. Cable firms are fiercely resisting proposals that phone companies be allowed to compete on their turf. City Makes Cityspire Deal CITYSPIRE from Page 49 faulty and behind schedule.

But a Manhattan Supreme Court judge refused to grant a restraining order or injunction last month and the city allowed Eichner to open floors 51 through 63. Homstein, Baying only minor details remain to the renovation, ia asking the city to immediately grant occupancy certificates for all the remaining floors except 68 and 69, which, according to the compromise, must await completion of the rehearsal space. Cityspire is 85 percent to 90 percent complete, and 280 of the 340 apartments which sell for up to $1.7 million have been sold, Homstein said. About 75 percent ofthe 325, OOO sqil are1 feet bf Yrfficef spAce is leased, he added. Commodore NEW! 500 RGB COLOR PKG.

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