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Government Affairs Albany Update

February 23, 2001

Deputy Majority Leader Dean Skelos Expands The Business Council's Single-Sales Factor Bill;

Assembly Subcommittee on Manufacturing Chair Joe Morelle Introduces New Manufacturing Single-Sales Factor Bill;

City Comptroller Alan Hevesi Calls For Single-Sales Factor Apportionment For New York City Corporation Tax.

A flurry of activity -- all of which furthers the nationwide trend toward adoption of single-sales factor apportionment -- took place this week enhancing adoption of The Business Council's #1 tax priority issue for 2001: Single-Sales Factor Apportionment for Article 9-A taxpayers.Senator Dean Skelos has submitted an amendment to his previous introduction of TBC's Article 9-A SSFA bill (S.2064) which expands the bill's universal coverage to include the Metropolitan Commuter Transportation District (MCTD) surcharge on Article 9-A. Application of SSFA to the MCTD surcharge is already included in the Governor's Budget Bill (S.1149/A.2001) and in Assemblyman Joseph Morelle's bill (A.5317) introduced on Thursday.New York City Comptroller Alan Hevesi, as part of a tax package targeting manufacturing, software, film, and biotechnology, called for adoption of SSFA to the City's Corporate Income Tax.Senator Skelos' bill is 100% effective for tax years beginning on or after January 1, 2001; Assemblyman Morelle's bill is half effective for the 2001 tax year and fully effective for tax years beginning on or after January 1, 2002; the Governor's Budget Bill is one-fifth effective in 2001 and 2002, three-fifths effective in 2003, four-fifths effective in 2004, and fully effective for tax years beginning on or after January 1, 2005.S.2064 universally covers Article 9-A; S.1149/A.2001 covers most Article 9-A manufacturers; and A.5317 more (than S.1149/A.2001) comprehensively covers all, traditional and modern, Article 9-A manufacturers.

Great Lakes Water Withdrawal Restrictions

The Council of Great Lakes Governors (of which New York is a member) has proposed changes to its "Great Lakes Charter of 1985" that could significantly impact businesses within the Great Lakes watershed.Referred to as "Annex 2001," the proposal would require states to impose rigorous new restrictions on the withdrawal of water from the Great Lakes basin. This includes water used in manufacturing processes, cooling water, water used for agricultural purpose, as well as drinking water.Specific provisions of the proposal include the following:

  • no new or increased water withdrawals would be allowed in the basin unless the state has determined that the facility had implemented "all reasonable and appropriate water conservation measures" a term that is not defined in the proposal;

  • in order to have a new or increased withdrawal approved, the facility would have to demonstrate "improvements to the waters and water-dependent resources of the basis." Again, this key term is not defined in the CGLG proposal. Concerns have been raised that this provision could require the removal of contaminants found in intake water, and/or the treatment of non-contact cooling water.

The annex says that de minimis withdrawals will be exempt, and provides an interim definition of de minimis withdrawals that would only include those withdrawals by a public water supply that results in a net loss of less than 1 million gallons per day to the basis. Once this proposal is adopted, states within the Great Lakes are committed to implementing this program within the next three years.Importantly, the public comment period on this proposal ends next Wednesday, February 28. You can download the proposed annex, as well as the text of the current charter, from the Council of Great Lakes Governor's website at: http://www.cglg.org. You can also submit comments through this web site.

"Quality Communities" Report

The state's "Quality Communities Task Force," chaired by Lieutenant Governor Mary Donohue, has issued its final report entitled "Partnering for a Better New York." Business Council President Dan Walsh was a member of the Task Force.The report contains more than forty specific recommendations regarding the promotion of "quality communities," or "smart growth" principals.

  • develop regional economic profiles, and targeted strategies that build on regional economic strengths and preferences,

    provide grants and technical assistance to encourage comprehensive planning by municipalities,

    adopt an integrated application and approval process for state grant programs that support "quality communities",

    establish a statewide "geographic information system" to support research and planning,

  • adopt new tax credits and other incentive programs to encourage the redevelopment of urban centers, and the donation of land for "open space" protection.

Copies of the report are available on the web at: http://www.state.ny.us/ltgovdoc/cover_pdf.html

Just the Facts Reports Key Economic, Social Statistics For New York

Nearly 49 percent of households in New York State have computers, slightly fewer than the national average. Energy consumption per person in the Empire State is lower than that in any other state except Hawaii. New York ranks second among the states, behind Massachusetts, in the number of science and engineering graduate students compared to total population.
Those are among the statistics in the 2001 edition of Just The Facts: Key Economic and Social Indicators for New York State, released this week by The Public Policy Institute. Other examples include:

  • Private-sector job growth statewide was 10th-best nationally, while growth in Upstate New York would have ranked 22nd among all the states, from September 1999 to September 2000.

    Manufacturing employment both statewide and upstate declined at a rate greater than the national average during the same period.

    The Empire State is a national leader in creation of new companies, total value of product exports and patents issued. It also remains No. 1 as a commercial banking center, although No. 2 North Carolina has been gaining.

  • State and local taxes in New York remain the highest in the country, at an estimated $4,905 per person in 2000.

You can find Just The Facts through www.ppinys.org.