Government Affairs Albany UpdateJune 11, 1999
- Senate Passes Tax Reduction As Part Of Budget
- Senate Passes Wide-sweeping Energy Tax Cut & Reform Proposal - Assembly Democrats Introduce Competition Plus/Energy 2000 Plan
- McCall Releases Budget Status Report
- Walsh to Speak at NYSERDA Conference On Energy Efficiency
The Senate this week passed Senate bill number 2-A as part of their one-house Budget plan. S.2-A contains numerous tax reductions beneficial to New York's economy which are part of The Business Council's 1999 Legislative Program.
- TBC's chief Sales & Use Tax proposals to correct the basis for Use Tax on self-manufactured, self-used property to that of the inherent raw materials and to remove the only remaining portion (local outside New York City) of Sales Tax on RIM (Repair/Installation/Maintenance) services done on tax-exempt manufacturing equipment.
- Reduce the Bank Tax and Insurance Tax rates to 7.5%.
- Reduce the property & casualty cap of the Insurance Tax to 2.0%.
- Reduce the Minimum Taxable Income rate to 2.5%.
- Reduce the Highway Use (a/k/a Truck Mileage) Tax.
- Reduce the Utility Gross Receipts Tax to 2%.
- Exclude from the excess dividends tax payments from a subsidiary to a parent in the recently-restructured electric industry and exclude subsidiary stock and indebtedness from the definition of subsidiary capital in the electric industry.
- Expand the telecommunications Sales & Use Tax exemption and exempt state-of-the-art investments in the broadcasting industry.
- Repeal the Petroleum Business Tax on kerojet fuel and commercial heating oil.
- Eliminate the last phase of the 1990-enacted Alcoholic Beverage Tax increase on beer and on liquor.
Senate Passes Wide-sweeping Energy Tax Cut & Reform Proposal - Assembly Democrats Introduce Competition Plus/Energy 2000 Plan
The Senate this week passed a major tax cut proposal that would reduce energy taxes by as much as $155 million by the year 2003. The plan endorses the Governor's proposal introduced in January to reduce and reconfigure the tax structure of the energy industry. Specific tax cut provisions in the Senate proposal include switching energy utilities from Article 9 to 9-A; a reduction in the gross receipts tax on energy and telecommunications; a repeal in the .75% gross franchise tax; a repeal of the natural gas importation privilege tax; and a phase-out of the assessments on utility assets over 10 years.
Speaker Sheldon Silver and Assembly Energy Committee, this week, introduced their own proposal to restructure the energy industry and the New York State Power Authority (NYPA). The Assembly plan would: cut the rate for the first 200 kilowatts used by residential ratepayers by 40%; cut the sales tax for non-industrial businesses by $112 million; require that members of the Public Service Commission, now appointed by the Governor, be elected statewide; and require the auction of all non-hydropower assets of NYPA.
Stating that late budgets have become a costly habit for the state, Comptroller Carl McCall has released a status report on the impact of this year's late budget. The Comptroller's report notes that $19.6 billion in emergency appropriations have been approved so far this fiscal year. McCall noted that the late budget have an adverse effect on local governments and school districts and contributes to the state's low credit rating. Click here for the Comptroller's report.
The Business Council's President & CEO will speak at a three day conference sponsored by the new York State Energy & Research Development Authority (NYSERDA) that focuses on energy-efficient technical advances to enhance profitability for the state's industrial and business sectors. The conference, which will be held at the Saratoga Springs Sheraton Hotel, June 15-18, will also feature tours of Ball Metal Container Corporation, Quad Graphics, Institute for Fuel Cell Science and Technology and Firestix facilities. Members of The Business Council receive a discount on the registration fee. For more information on how to attend, call Adele Ferranti at NYSERDA, at 518-862-1090.