New York’s fiscal year 2014-15 state budget signed April 1 contains, according to Gov. Andrew Cuomo (D), provisions for “cutting and simplifying business taxes,” and calls for “the most significant improvements to New York's business tax system in nearly three decades,” Bloomberg BNA Correspondent John Herzfeld writes in this week’s issue of the Bloomberg BNA Weekly State Tax Report.
In a statement welcoming the tax changes, Heather C. Briccetti, president of the state Business Council, said: “The broad-based tax reductions and reforms included in the budget—the most significant New York has seen in decades—will improve our tax climate relative to other states and promote investment and jobs in key economic sectors throughout the state.”
However, Karen Scharff, executive director of Citizen Action of New York criticized the bill, according to Herzfeld’s article. “While we were able to beat back some of the worst tax breaks for the super-rich, Cuomo's bailout for Wall Street banks—which will cost New Yorkers over $300 million a year—made it through, as did other tax breaks for the wealthy.”
A provision in the budget ends the state banking tax, placing banks under the general corporate income tax, Herzfeld writes.
The budget reduces the state's corporate franchise tax rate from 7.1 percent to 6.5 percent, the lowest rate since 1968, Cuomo said.
Over six years beginning in 2016, the state will phase out the corporate capital base calculation, a tax on corporate assets owned in New York that “discourages corporations from placing capital in the state,” Cuomo also said.
Other changes impact the state’s estate and property taxes.
For a complete look at the changes contained in the budget, check outHerzfeld’s article here.
Bloomberg BNA will provide an in-depth analysis of the budget in an April 18th webinar, “New York’s Corporate Tax Reform Package A Game Changer for Businesses,” featuring Jeffrey S. Reed, of Mayer Brown LLP, and Kendall Houghton, and Matthew Hedstrom, of Alston & Bird LLP.
In other developments…
Annual State-Local Tax Burden Rankings , by the Tax Foundation
Inside the New York Budget Bill – Corporate Tax Reform Enacted , by McDermott Will & Emery
Sutherland SALT Shaker : March 2014 Digest
Compiled by Priya D. Nair
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 email@example.com.
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 firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)