Tax Committee Update
May 30, 2014
Annual Tax Conference
As a reminder, The Business Council's Annual Conference on State Taxation is June 11 and 12, at the campus of Albany Law School. Agenda, registration and sponsorship information is available here. This year we will be offering both attorney CLE and CPA continuing education credits (up to 8.5 and 7.5 hours respectively, including 1 hour of legal ethics training). The agenda will feature: a sessions on key compliance and regulatory issues raised by this year's corporate franchise tax reform legislation; sessions on New York State tax audit, litigation and enforcement issues; PIT developments of interest to employers; and an overview of business tax legislation from other states. We urge members to participate and support our Tax Committee's efforts. Early registration discounts end June 4th. Please feel free to contact me with any questions or comments regarding this event, and I hope to see you in Albany.
Tax Reform Follow-up
A limited technical cleanup bill is being developed addressing the tax reform package included in the FY 2015 state budget. While it has yet to be introduced, our understanding is that this legislation will address mistakes and omissions related to estate tax rates, the financial services' ITC and several other topics. We have also raised concerns regarding the open-ended authority for the Commissioner to set Article 9-A MTA surcharges. However, it is unlikely that this legislation will revisit any substantive change adopted in S.6359-D/A. 8559-D. Please contact me at your earliest convenience if you have specific technical amendments that need to be addressed this session.
Other Tax Legislation
As the 2014 state legislation nears its scheduled conclusion on June 19th, there is relatively little additional tax legislation on the table. The following is an overview of tax legislation that has been the subject of recent legislative action.
- S.6870 (Savino)/A.8203-A (Ryan) - Enacts the "just and open business subsidies act (JOBS act) of 2014," this legislation requires a unified state economic development “budget,” including the annual cost of statutory tax credits, grants, and state and local tax abatements including those offered through public authorities such as IDAs; and requires that all state assistance and tax credit programs include “clawback” provisions for failure to meet investment, job or other performance targets. The Business Council strongly opposes this legislation, which was reported to the Senate Finance Committee.
- S.3812-B (Marcellino)/A.7713-A (Galef) – This bill, which passed the Senate in 2013 and is currently on the Senate calendar, provides a permanent extension of the enhanced sales/use tax rates imposed by 52 counties and 5 cities, which are currently subject to individual reauthorization bills every two years. The Business Council has not taken a position on this bill, and welcomes any input from Tax Committee members.
- S.6660-A (Ritchie)/A.9380 (Galef) – Adopts a 15 year extension of the authority for local taxing jurisdictions to negotiate real property tax agreements for nuclear powered generating facilities (initially adopted in 2011). This bill has passed the Assembly, and is on the Senate Calendar. Business Council supports this bill.
- S.7026 (Maziarz)/A.9446 (Paulin) – Extends by 10 years (through 2025) the local option to provide real property tax exemptions for solar, wind and farm waste energy systems
- A.1834 (Galef)/No same as. Requires every real property assessing unit in the state to conduct a reassessment at least every four years. This bill is on the Assembly calendar; there is no Senate counterpart. The Business Council supports this legislation.
- S.1671-C (Grisanti)/No same as – This bill adopts a 20% asbestos remediation tax credit in Article 9, 9A and 22. It passed the Senate in 2013, and is currently on the Senate Calendar. The Business Council supports this legislation.
- S.3612-B (Marcellino)/A.7420-B (Glick) – This bill, which passed the Senate in 2013 and is currently on the Senate calendar, prohibits the use of automated sales suppression devices, zappers or phantom-ware.