NYC mayor uses fines and fees as stealth tax on businesses

NEW YORK - July 17, 2011 - It's tough enough to run a restaurant in the city without having to worry about rain runoff. But for Anthony Fasolino, a family member who helps run the kitchen at Yolanda's restaurant near Yankee Stadium in The Bronx, the weather is as costly as imported cheese.

Yolanda's, a popular 51-year-old, third-generation Italian eatery on 140th Street, said it was recently hit with a bill for some $600 from the Department of Environmental Protection. The reason? Rainwater in its parking lot was flowing away from the building into city sewers.

That's on top of other questionable city charges that eat up an estimated 15%-20% of Yolanda's revenue - including a $200 charge because of a missing ceiling light cover. "It's a joke," said Fasolino.

Yolanda's is not alone. New York City is unleashing its latest financial hell on cash-strapped business owners, desperately stepping up fines and announcing a flurry of new fees to raise funds.

In order not to hike taxes with its latest budget, the Bloomberg regime budget office is projected to raise almost $900 million in fees and fines, with most of that coming from Depression-weary city businesses struggling to bounce back from three years of pain.

Meanwhile, Fasolino noted how Yolanda's works hard to maintain its “A” designation, the top grade for cleanliness awarded under the New York City Health Department system launched last summer.

It's another pain in the side, he says. "The officials come back for an inspection every two months, and it is costing us hundreds and as much as $2,000 each visit," he said.

"They have to find something wrong with the place. If they don't, their supervisor will come out and then give you a ticket of some kind. You can see why so many businesses are opening and closing in the city," added Fasolino.

Fasolino says he isn't fooled by the rainwater fee. "This charge is just another way for the city to make money," he snapped. "This is absurd. It's the first time this has happened to us. Why now?"

As he waits for the DEP to explain itself, Fasolino vows that Yolanda's will refuse to pay. "I am sure we will receive a penalty that could run into the hundreds of dollars," he said.