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COMPARISON OF TAX-CUT PROPOSALS BEFORE THE LEGISLATURE
March 20, 2000

Governor
Senate Majority
Assembly Majority
Assembly Minority
Senate Minority
GROSS-RECEIPTS TAX on energy utility customers (currently totals 3.25 percent)

• To 2.4% 1/1/2000

• To 2% 1/1/2002

• To 1.5% 1/1/2003

 • To 0.7% 1/1/2004

• Complete elimination as of 1/1/2005

• Retroactive to 1/1/2000, establish a credit to refund the gross receipts tax and the gas import tax paid by manufacturing companies.

• To 3% 7/1/2000

• To 2.75% 1/1/2001

• To 2.25% 1/1/2002

• To 1.75% 1/1/2003

• Complete elimination as of 1/1/2004

• Retroactive to 1/1/2000, establish a credit to refund the gross receipts tax and the gas import tax paid by manufacturing companies.

• Establish a credit to refund the gross receipts tax and the gas import tax paid by manufacturing companies, retroactive to 1/1/2000.

• Reduce state portion of the sales tax on electricity used by commercial customers from 4% to 2%.

• Repeal completely, effective 1/1/2001.

• To 2.4% 1/1/2000 

• To 2% 1/1/2002

• To 1.5% 1/1/2003

• To 0.7% 1/1/2004

• Complete elimination as of 1/1/2005

• Retroactive to 1/1/2000, establish a credit to refund the gross receipts tax and the gas import tax paid by manufacturing companies.

SMALL BUSINESS TAX REFORM
• Reduce the tax rate on small businesses from 7.5% to 6.85%.

• Eliminate the S-Corp differential tax.

• Reduce the tax rate on small businesses from 7.5% to 6.85%.     • Repeal the entity tax on S corporations.
SECURITIES INDUSTRY TAX REFORM
  • Use the address of the customer, rather than of the firm, in determining the sales allocated to New York for the corporate franchise tax on a securities firm. • Use the address of the customer, rather than of the firm, in determining the sales allocated to New York for the corporate franchise tax on a securities firm. • Use the address of the customer, rather than of the firm, in determining the sales allocated to New York for the corporate franchise tax on a securities firm.  
TELECOMMUNICATIONS TAX REFORM
• Provide a sales tax exemption for web hosting facilities. • Provide sales tax exemption for certain high-tech telecommunications equipment, HDTV equipment; and web hosting facilities. • Enhance sales tax exemption for equipment purchased by telephone and cable companies.   • Reduce the telecommunications GRT for receipts used to develop or expand high-speed and wireless communications in New York.
TON-MILEAGE TAX
  • Eliminate ton-mileage tax on trucks.   • Eliminate ton-mileage tax on trucks. • Eliminate ton-mileage tax on trucks.
TAXES ON MOTOR FUELS
  • Repeal the state's 4% sales tax on gasoline and automotive diesel, effective 5/1/2000. • Suspend the state's sales tax on gasoline and automotive diesel, 7/1/2000 through 9/4/200 (Labor Day). • Suspend the state's sales tax on motor vehicle fuel and the excise tax on diesel fuel through 9/4/2000.  
OTHER BUSINESS TAX ISSUES

• Phase out the tax on importation of natural gas.

• Authorize a new credit of $2,000 per employee for large technology companies locating in qualified zones.

• New R&D credits and credits for interest on loans used for investment in qualified zones.

• Establish a brownfield clean-up tax credit.

• Create a rail access tax incentive and an accelerated small brewers' exemption.

• Provide sales tax exemptions for all property, machinery and equipment used in farming.

• Phase out the tax on importation of natural gas.

• Provide an investment tax credit for leased manufacturing equipment.

• Double the employment tax credit, to $2,000, for certain high-tech employers (refundable for certain large employers).

• Expand the tax credit for alternative fuel vehicles.

• Provide sales tax exemptions for all property, machinery and equipment used in farming.

• Eliminate sales tax on interior design services, heavy vehicle emissions testing equipment, pollution abatement equipment.

• Reduce beer excise tax by 1.5 cents a gallon.

• Expand ITC for securities trading equipment to include insurance companies.

• Provide other tax incentives in development zones.

• Tax incentives for remediation of brownfields.

• Tax incentives for businesses locating in special economic development zones, including sales tax exemptions, a state-funded 25 percent reduction in electric rates, and a credit for new construction, rehabilitation or technological improvements.

• Eliminate Petroleum Business Tax on heating oil for commercial customers.

•Accelerate farm equipment sales tax exemption.

• Abolish the "turnover tax," exempting from sales tax any otherwise taxable goods and services essential for producing sales-taxable goods and services. Create a state-funded property tax abatement for new businesses.

• Create a rail access tax incentive.

PERSONAL TAXES
• Have homeowners' property-tax reductions under the STAR program paid directly by the state, to reduce the tendency of school districts to absorb those savings through "stealth" tax increases.

• Restore the $1,000 personal exemption for taxpayer and spouse, phased in over four years. • Increase Earned Income Tax Credit from 25% to 30% of federal credit.

• Expand eligibility for the Child Care Tax Credit.

• Permit full deduction for college tuition expenses.

• Authorize tax-deferred savings accounts to help citizens save for their first purchase of a home.

• Authorize a 20 percent credit for the cost of long-term care insurance.

• Increase standard deduction for married couples filing jointly, to $15,000 from $13,000. Increase head-of-household deduction from $10,500 to $13,000.

• Increase Earned Income Tax Credit from 25% to 30% of federal credit.

• Refundable tax credit of up to $500 for full-time college students.

• Enhance Child and Dependent Care Credit.

• Double dependent exemption, from $1,000 to $2,000.

• Education tax credit of up to $3,000 per family.

• Increase standard deduction for married couples filing jointly, to $15,000 from $13,000. Increase head-of-household deduction from $10,500 to $13,000.

• Expand Earned Income Tax Credit.

• Completely repeal the sales tax on clothing.

• Repeal sales tax on health and safety items.

• Tuition tax relief.

• Phase out mortgage recording tax.