NYS Tax Update: Final Budget Overview
Staff Contact: Ken Pokalsky
Our overview of key tax issues addressed in the final New York State budget agreement for Fiscal 2018 is now available. This table includes tax changes proposed in Governor Cuomo’s Executive Budget, and their final disposition, as well as those provision included in the final budget that were first proposed by the Senate or Assembly. The text of S.2009-C/A.3009-C, the final revenue bill, is available here.
The most significant provision, dollar-wise, is the two year extender of the 8.82% top PIT rate (instead of the three year extender proposed); this is projected to preserve $683 million in revenue for FY 2018 and raise $3.4 billion in FY 2019. The revised proposal for sales tax collection for “marketplace providers,” projected at $68 million in FY 2018 and $136 million annually thereafter, was not adopted.
Most other Executive Budget tax proposals has significantly lower fiscal impacts. Of those of greatest concern to Business Council members, the elimination of the election for federal S-corps did not pass; the change in sales tax treatment of sales between related entities unfortunately did.
The Governor’s proposed restructuring of the Start-Up New York credit program was rejected by the legislature; the legislature did push and adopt expanded eligibility for the Excelsior Jobs program. And the legislature approved the Governor’s proposal for investment credit for new life science companies.
I welcome your questions and comments on the issues addressed in this summary.
And, we look forward to seeing you at our Annual Conference on State Taxation, May 10 and 11 in Albany, where we will be covering 2017 tax legislation, continuing implementation of Article 9A reforms, pending federal tax reforms, and other current topics.