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,...
New York’s so-called millionaire’s tax will be extended for two years under a bill ( A. 3009-C) expected to be signed shortly by Gov. Andrew M. Cuomo (D).
The bill, which gained final legislative approval by the state Senate on April 9, would also revive a property tax break for developers of affordable housing in New York City, create a 4 percent tax on ride-hailing services and continue scheduled tax cuts for middle-income New Yorkers.
The 343-page omnibus budget bill, as expected, doesn’t include a proposal by Cuomo to require online marketplaces like Amazon.com Inc. and eBay Inc. to collect sales tax when they facilitate sales to New Yorkers from sellers in and outside of the state. The measure is essentially dead for the current legislative session.
The revenue bill is the final part of the $153.1 billion state budget for fiscal year 2017-18, which began April 1.
The millionaire’s tax, which was set to expire Dec. 31, establishes a rate of 8.82 percent for single filers earning more than $1 million and married couples earning more than $2.1 million. The tax is expected to raise $3.4 billion in FY 2017-18.
Cuomo said 45,000 taxpayers, including half who are nonresidents, will continue to pay the higher rate.
The bill keeps in place a scheduled reduction in personal income tax (PIT) rates for taxpayers with incomes between $40,000 and $300,000.
In 2018, PIT rates for taxpayers with incomes between $40,000 and $150,000 will drop to 6.45 percent from 6.85 percent. The rate for those earning between $150,000 and $300,000 will drop to 6.65 percent from 6.85 percent.
Cuomo said the tax cuts, when fully effective, will save taxpayers $6.6 billion over four years and cover more than 4.4 million New Yorkers.
The bill also imposes a 4 percent tax on rides from companies like Uber Technologies Inc. and Lyft Inc.
Other highlights in the bill include:
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 email@example.com
Text of A. 3009-C is at http://src.bna.com/nMx.
Copyright © 2017 Tax Management Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)