Tax Committee Update - March 29, 2012
Final FY 2013 Budget Agreement
Final FY 2013 Budget Agreement Our summary of tax and tax credit provisions included in the agreed-to New York State FY 2013 budget is available here. This also includes key provisions that were proposed during budget negotiations but did not make the final cut.
The FY 2013 final budget contains no significant tax law changes, although it modified a number of amendments to and/or extensions of various compliance provisions and tax credit programs.
The much discussed Article 9A/Article 32 integration and reform bill was set aside by the Administration in the aftermath of last Decembers PIT legislation. However, with this week's passage of an on-time budget, we anticipate the formation of the previously-announced Commission on Tax Reform and Fairness in the near future. The Commission will be looking at a wide range of business, income and sales tax issues.
Overall, the budget as adopted is very similar to the Executive Budget proposed in January. The final budget conforms to key Executive Budget parameters, including total state-financed spending growth under 2 percent, no additional new or increased taxes or fees, maintenance of last year's caps on growth of Medicaid and school aid spending, and others.
Under the final agreement, total state operating funds spending is $88.8 billion, an increase of $1.6 billion or 1.9% over FY 2012 spending levels. Total state funded spending – operating plus debt service – is $94.8 billion. All funds spending, including state and federal supported spending, is $132.6 billion, a decrease of $135 million or about 1% from FY 2012 levels.
Please feel free to contact me with any questions or comments you have on this summary, or on any other component of the budget agreement.