Government Affairs Albany Update

October 18, 2002

Top Legislative Leaders, Fiscal-Policy Experts to Speak at GAC Issues Conf. Nov. 20

Top legislative leaders and fiscal-policy experts will speak at the annual Issues Conference of The Business Council's Government Affairs Council (GAC). The conference is set for 9 a.m.-4 p.m. Nov. 20 at the headquarters of the New York State Nurses' Association in Latham, Albany County.

The agenda for the meeting includes:

  • Remarks by state Assemblyman Herman "Denny" Farrell (D-Manhattan), chairman of the Assembly Ways and Means Committee and chairman of the state Democratic Party.

  • Remarks by state Senator Kemp Hannon (R-Long Island).

  • Remarks by E.J. McMahon Jr., senior fellow in tax and
    budgetary studies at the Manhattan Institute and an authority on fiscal issues in New York State and New York City. McMahon wrote the Manhattan Institute's recent report, Deja Vu All Over Again: The Right Away to Cure New York's Looming Budget Gap, which argued that New York should cut taxes and restrain state spending to meet the coming fiscal challenge. (For information on that report, see www.bcnys.org/whatsnew/2002/1008ej.htm).

  • A panel discussion on fiscal issues facing New York State. Participants are to be announced.

  • Remarks by Mark Cohen of the state Office of Public Security.

  • A discussion of the results of the election on Nov. 5.

The conference will focus on The Council's top priorities for 2003, including: health-care cost reductions; efforts to site more electricity-generating plants faster; sustaining the state's commitment to education standards; fiscal restraint in state government; and workers' compensation reform.

The GAC holds this meeting each year so that GAC members and Business Council staff can finalize legislative and policy objectives for the year ahead and discuss the current political environment in Albany.

The Issues Conference is open to all GAC members.
Registration and a continental breakfast will be available beginning at 8:15 a.m.

Agenda details and access to on-line registration are available at: www.bcnys.org/calendar.htm

PSC Chairman Helmer to Address Energy Committee

The Business Council's Energy Committee will meet on Tuesday, November 19th at 1:30 p.m. The meeting will be held in The Business Council's lower level conference room. The committee will be addressed by Honorable Maureen Helmer, Chairman of the New York State Public Service Commission. The remainder of the meeting will be dedicated to discussing the 2003 Legislative Program for the Energy Committee and a discussion of ongoing legislative issues pertaining to New York's energy interests. A copy of the Legislative Program was mailed to each committee member earlier this month. It is also accessible on The Business Council's Energy page at: www.bcnys.org/inside/energy/energy02leg.htm.

Transportation Committee Meeting Announced

The Business Council's Transportation Committee will meet on Tuesday, December 3rd at 1:00 p.m. The meeting will be held in the fourth floor conference room at The Business Council's Insurance Offices at 12 Corporate Woods. Mr. John Armstrong, Transportation Specialist for Corning Incorporated, will take over as the committee chairman at this meeting. Mr. Richard Dunne of Northrop Grumman, former chairman of the committee, announced his retirement at the summer meeting of the Transportation committee. The committee will discuss the 2003 Legislative Program, the Borders & Trade issue, and ongoing efforts to aid the state in the federal reauthorization of the Intermodal Surface Transportation Efficiency Act (ISTEA).

Tax Changes Occurring in next Year's Budget

(FY 2004 -- April 1, 2003 - March 31, 2004) are:

  • On January 1, 2004 the GRT on the commodities of gas and electricity drops from 0.85% to 0.4%.

  • On January 1, 2004 the GRT on transmission and distribution of gas and electricity drops from 2.25% to 2.125% for residential customers.

  • On January 1, 2004 the GRT on transmission and distribution of gas and electricity drops from 1.125% to 0.53125% for commercial, industrial, and not-for-profit customers.

  • On September 1, 2003 the Sales and Use Tax (SUT) rate on the Transportation, Transmission, and Distribution (TTD) of gas and electricity is reduced from one-quarter of the prevailing State and local SUT rate to 0%. (For example, in Albany County the combined State and local SUT rate on TTD of gas and electricity drops from 2% {1/4 of 8%} to 0%.)

  • On January 1, 2004 the maximum amount of college tuition expenses eligible for the 4% college tuition Personal Income Tax (PIT) credit/itemized deduction rises from $7,500 to $10,000.

  • On July 1, 2003 the Corporation Franchise Tax (CFT) rate for small businesses with entire net income (ENI) up to $200,000 drops from 7.5% to 6.85%.

  • On July 1, 2003 the S corporation differential tax rate is reduced for large S corporations from 0.65% to 0.3575% and for small S corporations with ENI up to $200,000 from 0.05% to 0.0275%.

  • On September 1, 2003 the Alcoholic Beverage Tax (ABT) rate on beer is reduced from 12.5 cents per gallon (cpg) to 11 cpg.

  • On July 1, 2003 a cost-of-living adjustment is created and will be applied to the maximum income allowed under the enhanced School Tax Relief (STAR) exemption for persons aged 65 and over. (The current maximum income of $60,000 will be indexed annually based on the rate of inflation used to index Social Security benefits.)

  • On April 1, 2003 the interest rate for unpaid tax liabilities INCREASES by two percent for all taxpayers