Fate of New York’s Millionaire Tax on Hold

Daily Tax Report: State provides authoritative coverage of state and local tax developments across the 50 U.S. states and the District of Columbia, tracking legislative and regulatory updates,...

By Gerald B. Silverman

The fate of New York state’s so-called millionaire’s tax and other budget and tax provisions was put on hold April 3, as the state Senate approved two bills ( S. 5491 and S. 5492) to essentially extend the terms of the state’s current budget for two months.

The emergency measures, which were expected to be approved by the state Assembly and signed by the governor, would prevent a government shutdown because the Legislature wasn’t able to reach agreement on a budget before the start of the state’s 2017-18 fiscal year April 1.

Gov. Andrew M. Cuomo (D), who called for the extenders, said uncertainty over the federal budget was one of the key reasons to give lawmakers more time to enact a state budget. He said two of the federal issues that will have a significant impact on the state budget include tax reform and the repeal and replacement of the Affordable Care Act.

“Under these circumstances, it is imperative that the state make especially prudent choices regarding expenditures and does not over promise financial resources,” Cuomo said in a statement. “Also, while the middle class continues to struggle, and we are facing federal cuts, allowing the millionaires tax to expire—a tax that generates $3.4 billion a year in needed revenue—is not responsible.”

The millionaire’s tax, which expires Dec. 31, establishes a rate of 8.82 percent for singles earning more than $1 million and married couples earning more than $2.1 million.

To contact the reporter on this story: Gerald B. Silverman in Albany, N.Y. at GSilverman@bna.com

To contact the editor responsible for this story: Ryan C. Tuck at rtuck@bna.com

For More Information

Text of S. 5491 is at http://src.bna.com/nAB.

Text of S. 5492 is at http://src.bna.com/nAC.

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