LEGISLATURE PASSES MAJOR TAX BILL
Major Tax Provisions in S.1406B/A.2106B
Part G3 (p.569)
- extends Article 32 Bank Tax for an additional two years and the grand-fathered
right to continue to file under Articles 32 and 9-A for an additional
one year
Part H3 (p.577)
- adopts the Governor's Executive Budget proposed Article 33 Insurance
Tax restructuring as amended by the Governor in his 30-day amendments
Part I3 (p.591)
- reimposes the State's Sales Tax on clothing costing under $110; revokes
authorization for counties to exempt clothing costing under $110; adopts
two seven-day Sales Tax holidays for clothing costing under $110; authorizes
counties to adopt matching seven-day Sales Tax holidays for clothing costing
under $110
Part J3 (p.594)
- adopts Governor's Executive Budget proposed increase in filing fees
imposed on limited liability corporations and limited liability partnerships
Part K3 (p.595)
- adopts Governor's Executive Budget proposed decoupling of expensing
of Sport Utility Vehicles except for SUVs used in farming
Part L3 (p.595)
- adopts Governor's Executive Budget proposed enhancement of estimated
tax payments by out-of-State partners, members, and shareholders
Part N2 -
assesses Unemployment Compensation taxable employers (but not reimbursable
employers) for the interest incurred by the State of New York for Federal
advances of funds to pay UC claimants. The assessment amount is left to
the discretion, within specified parameters, of the Commissioner of Labor.
Part O3 (p.600)
- decouples New York tax law from the March 2002-enacted Federal Economic
Recovery accelerated first-year depreciation (except for investments in
the New York Liberty Zone).
Part R3 (p.605)
- places additional lines on Personal Income Tax forms requiring taxpayers
to declare Use Tax.
Part S3 -
directs the Commissioner of Taxation & Finance to participate in the
Streamlined Sales Tax Project (SSTP) -- a collective effort of states
and taxpayers to: 1) standardize sales tax laws across the Nation and
2) provide groundwork for increased collection requirements on out-of-state
vendors, including Internet sales.
Part T3 (p.609)
- adds to the Tax Law to impose taxes on non-native American persons who
make purchases on native American nation or tribal land.
Part U3 (p.610)
- amends Article 9-A Corporation Franchise Tax to delineate related member
expenses, income exclusions, and add-backs [broadly addresses the "Toys-R-Us"
corporate structure; language can be found on The Business Council website
under Committee on Taxation].
Part X3 (p.615)
- increases the State's Sales and Use Tax from 4% to 4.25%.
Part Y3 (p.618)
- adopts a two-tier, three-year (2003 - 2005) Personal Income Tax surcharge
which sets the higher surcharge at 7.7% on Taxable Income over $500,000
and the lower surcharge on Taxable Income between $150,000 and $500,000
at 7.5% (2003), 7.375% (2004), and 7.25% (2005).
Environment
Part C (pp.10-25)
- increases a number of civil and criminal penalties for violations of
the Environmental Conservation Law. These include:
-
Article 19 (air permits, other than hazardous waste incineration),
minimum penalties for initial violations increase from $250 to $375
per day, maximum penalties increase from $10,000 to $15,000 per day;
for subsequent violations, maximum penalty increases from $15,000
to $22,500 per day. Maximum fines for criminal convictions go up to
same levels as for civil violations.
-
Hazardous waste incinerator permits, maximum penalties for initial
violations increase from $25,000 to $37,500 per day of violation;
maximum penalties for subsequent violations increase from $50,000
to $75,000 per day. Fines for criminal convictions go up to a like
amount.
-
Article
27, Titles 3 and 7 (regulated waste transporter permits and solid
waste management facilities), maximum civil penalties increase from
$5,000 to $7,500 for an initial violation, and maximum penalty for
additional days of a continuing violation increase from $1,000 to
$1,500. Maximum penalties for violations resulting in the release
of solid wastes into the environment increase to as high as $22,500
per day for releases of more than 10 cubic yards. Criminal fines increase
to the same levels. Civil
penalties for violations relating to construction and demolition debris
disposal sites increase from $10,000 to $15,000 per day.
-
Article 27, Titles 9 and 13 (hazardous waste management and remediation),
maximum civil penalties for violating statutory/regulatory provisions
or enforcement orders relating to the management of hazardous waste
or the remediation of inactive hazardous waste sites increase from
$25,000 to $37,500 per day for initial violations, and from $50,000
to $75,000 for subsequent violations. Criminal fines go up to the
same levels.
-
Maximum criminal penalties for unlawful dealing with hazardous wastes
increase as follows: for violations classified as a C felony, from
$200,000 to $300,000; for D felonies, from $150,000 to $250,000; for
E felonies, from $100,000 to $150,000; for Class A misdemeanors. $25,000
to $37,5000; and class B misdemeanors, from $10,000 to $15,000.
-
Article
71 - Bulk Storage of Liquids. Maximum penalties for releases of from
liquid bulk storage facilities (greater than 1,100 gallons, see Section
17-1743) are increased from $2,500 to $3,750 for the initial incident,
and penalties for each continuing day of a violation increasing from
$500 to $750. Likewise, maximum penalties for failure to notify DEC
of such releases increase from $2,500 to $3,750.
Note that
these penalty increases were initially proposed as part of Governor Pataki's
Executive Budget.
Part T1 (p.135)
- A 25 percent increase in SPDES (wastewater) permit fees. New fee structure
ranges from $475 to $47,5000 for industrial facilities (compared to current
fees of $375 to $37,5000). Fee for powerplants increases from $40,000
to $50,000. Net annual increase in income is about $1 million.
Part V1 (pp.139-145)
- Adopts the "Waste Tire Management & Recycling Act." Imposes $2.50
fee per new tire sold and mandates retailers take back old tires from
customers (on one-to-one basis.) Requires abatement of unpermitted tire
dumps; establishes a hierarchy for waste tire recycling & reuse (including
energy recovery).
Part S1 (p.131+)
- Appropriates funding from the Environmental Protection Fund for a variety
of projects, including $1.3 million for the state's ongoing assessment
of Hudson River natural resource damages.
Part X1 (p.147)
- Reduces the duration of pesticide applicator certifications from 5 to
1 year; existing certification fees are also reduced proportionately.
Part O1 (p.129)
- Increases mined land reclamation program fees by between 25 and 100
percent. Maximum fee is $4000 for sites over 30 acres.
Part R1 (p.130)
- Increases fees for oil, gas and solution mining, with the fee range
of $190 to $3,800.
Economic Development
Part C1 (p.112-113)
- Authorizes transfer from the Power Authority to General Fund sufficient
funding to support the Power for Jobs program for FY 2003-04.
Part M1 (pp.121-123)
- Requires the Empire State Development Corporation to notify state legislators
of funding applications within their districts; submit to the legislature
quarterly reports on its commitment and distribution of funds by area
of the state, information on the number of jobs created and retained,
and other information.
Part L1 (p.120)
- Extends $50 million in UDC bonding authority for downtown Buffalo development
projects.
Miscellaneous
Part S (p.36)
- Effective 2005, requires bienniel rather than annual registrations for
lobbyists receiving, or expecting to receive, more than $2,000 in annual
compensation. Effective for 2004, the lobbyist registration fee increases
from $50 to $100; effective in 2005, the biennial registration fee is
$200.
(p.414) -
Creates an interest assessment surcharge fund to consist of money collected
from employers to pay advances from the federal unemployment account.
Transportation
Part B (pp.9-10)
- License Plate fees for Motor Vehicles will increase in 2003 to $15.00.
Part C (pp.11-23)
- Increases fines for violations of Vehicle & Traffic Law.
Part I (pp.45-46)
- Requires hazardous material license holders to undergo a criminal history
background check
Part Q (pp.79-81)
- Amends the Insurance Law by increasing the annual fee on motor vehicles
from $1 to $5 per insured vehicle registered.
Part A1 (pp.109-112)
- Allocates funding for, and amends certain laws of 1991 and 2000 relating
to, the dedicated highway and bridge trust fund and allocations under
the state's five-year transportation plan.
Part B1 (p.112)
- Changes the effective date for the state's lower blood alcohol level
threshold for the determination of intoxication to July 1, 2003.
Part U1 (pp.135-139)
- Increase a number of DMV fees for services, applications and permits
(e.g. titles, DMV searches).
Energy
Part N1 (pp.127-129)
- Allocates utility assessment funds to various state agencies.
Part P1 (pp.129-130)
- Transfers monies from NYSERDA and various NYSERDA accounts to the state
general fund.
Part Q1 (p.130)
- Provides additional provisions for the utility assessment funds collected
by NYSERDA to be deposited in the state treasury.
Telecommunications
Part Y (pp.105-108)
- Delineates "expedited deployment funding" for wireless 911 costs [estimated
to be incurred by] local public safety answering points and localities;
establishes funding allocations and other provisions.
Part H1 (pp.114-115)
- Establishes the NY telecommunications relay service center in Syracuse.
Small Business
Part J (p.64)
- Small claims filing fee increased from $10 to $15 for claims in the
amount of $1000 or less and increased from $15 to $20 for claims in the
amount of more than $1000.
Part J (p.65) - Filing fee for Commercial claims are increased from $20
to $25.
Part I1 (p.118) - Defines food warehouse to mean any food establishment
in which food is held for commercial distribution. Licensing fee shall
be one hundred dollars provided, however, that food warehouses shall pay
a licensing fee of two hundred dollars. Exempt are those establishments
registered, permitted or licensed by the department pursuant to other
provisions of the chapter, under permit and inspection by the state department
of health or by a local health agency which maintains a program certified
and approved by the state commissioner of health, or subject to inspection
by the United States department of agriculture pursuant to the federal
meat, poultry or egg inspection programs.
Health
Part B3 (p.514-517) - The legislative budget does not include Governor
Pataki's original proposal to mandate early intervention costs on health
insurance policies. It requires the Commissioner of Health to collect
data, by municipality, on the early intervention program, including the
number and ages of children enrolled in early intervention, the percentage
of children by service type and other information.
Part Z2 (p.432) - The legislature rejects the Governor's proposal to
create a pharmaceutical prior authorization. The language states that
a prior authorization program "shall not be expanded to cover any prescription
drug not already covered except pursuant to legislation enacted after
this section becomes law".
Part Z2 (p.457+) - Increases HCRA surcharges as recommended by the Governor
in his original budget. The Bad debt/charity care surcharge will rise
from 8.18% to 8.85% and the covered lives surcharge (used for graduate
medical education) will be set to raise $725 million (it currently raises
$690 million). There is no language in the bill that deals with the ability
of not-for-profit health insurers to convert to for-profit status.
Education
The Legislature added approximately $1.1 billion in school aid and related
programs on a school year basis, producing a 2003-04 fiscal year increase
of more than $750 million. The Legislature rejected recommendations to
restructure the State Education Department and the Board of Regents, cap
increases in school spending and provide mandate relief to school districts.
Changes in special education, BOCES funding and building aid were also
rejected by the Legislature. Funding was eliminated for Charter Schools,
character education, school safety and school evaluation services.
Higher Education
The Tuition Assistance Program changes were rejected and $122 million
was restored to the program. $19 million in Bundy Aid was also restored.
Tuition increases at SUNY and CUNY were limited to $950 for in-state residents,
but allows tuition for out-of-state students to be raised to $4,800 at
SUNY and $4,000 at CUNY. No new capital appropriations were included for
SUNY or CUNY senior colleges.
Created May 2, 2003
