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Comparison of Business Tax-Reduction Legislation for 1999-2000

Subject Executive
Budget
Senate
Majority
Senate
Minority
Assembly
Majority
Assembly
Minority
Alternative minimum tax Reduce AMT from currently scheduled 3% to 2.5% as of July 2000. Reduce AMT from currently scheduled 3% to 2.5% as of July 2000. No proposal. No proposal. Reduce AMT from currently scheduled 3% to 2.5% as of July 2000.
Gross

receipts tax

Phase down GRT on commodity portion of electric charges, from current 3.25% to 0 as of January 2003. Reduce GRT on energy and telecom companies from currently scheduled 2.5% to 2% as of January 1, 2002. Phase out GRT on electricity bills as proposed in Executive Budget; provide GRT abatement for high-speed telecom access. No proposal. Accelerate scheduled reduction (to 2.5%) from current January 2000 to September 1999.
Excess dividends tax on utilities Repeal as of January 1999. Exclude certain payments from subsidiary to holding company. Repeal as of January 1999. No proposal. Repeal as of January 1999.
Subsidiary capital tax on utilities Eliminate for energy utilities, by moving such taxpayers into Art. 9-a. Exclude stock and debt of energy holding companies' subsidiaries from "subsidiary capital." Eliminate for energy utilities, by moving such taxpayers into Art. 9-a. No proposal. Eliminate for energy utilities, by moving such taxpayers into Art. 9-a.
Natural gas import tax Repeal. Exempt electric corporations. Repeal. No proposal. Repeal.
Tax on energy sold for resale Repeal of .75% GRT. Exemption for companies selling in wholesale market. Repeal of .75% GRT. No proposal. Repeal of .75% GRT.
Bank tax rate Reduce from 9 to 7.5% over three years, starting after June 30, 2000. Reduce from 9 to 7.5% over three years, starting after June 30, 1999. No proposal. No proposal. Reduce from 9 to 7.5% over three years, starting after June 30, 2000.
Insurance tax rate Reduce from 9 to 7.5% over three years, starting after June 30, 2000. Reduce from 9 to 7.5% over three years, starting after June 30, 1999. No proposal. No proposal. Reduce from 9 to 7.5% over three years, starting after June 30, 2000.
Subject Executive
Budget
Senate
Majority
Senate
Minority
Assembly
Majority
Assembly
Minority
Insurance tax "cap" Reduce overall cap for property & casualty insurers from 2.6% to 2.0%. Reduce overall cap for property & casualty insurers from 2.6% to 2.0%. No proposal. No proposal. No proposal.
Highway use tax No proposal. Reduce ton-mileage tax another 25%. Replace ton-mileage tax with fee-based system. No proposal. Replace ton-mileage tax with fee-based system.
High-tech tax credits Expand credit for Qualified Emerging Technology Companies. Expand credit for Qualified Emerging Technology Companies. No proposal. Extend employment and capital investment credits to businesses filing under personal income tax; expand credits. No proposal.
Credits for emerging companies Exclude from tax part of gain from sale of assets used in newly created or acquired business. No proposal. No proposal. Enhance job credits for emerging technology companies; double credits for emerging technology start-ups. Exclude from tax part of gain from sale of assets used in newly created or acquired business.
University research credit No proposal. No proposal. No proposal. Provide credit of 20% of new contributions to

not-for-profit research organizations.

No proposal.
Telecom and broadcast equipment No proposal. Expand sales tax exemption for central-office equipment to outside equipment; and investment to meet federal HDTV standards. No proposal. Expand sales tax exemption for central-office equipment to outside equipment. No proposal.
Research & development credit No proposal. No proposal. No proposal. No proposal. Make credit refundable for companies less than 10 years old.
Subject Executive
Budget
Senate
Majority
Senate
Minority
Assembly
Majority
Assembly
Minority
Petroleum business tax No proposal. Repeal taxes on kerojet fuel and commercial heating oil. No proposal. No proposal. Repeal tax on commercial heating oil.
Health-care assessments Speed up repeal of provider tax on hospitals and nursing homes. No proposal. No proposal. No proposal. No proposal.
Sales & use "turnover" taxes No proposal. No proposal. Repeal sales tax on goods and services needed to run business. No proposal. No proposal.
Estimated full value to taxpayers $380 million $670 million $430 million $75 million $476 million

Compiled by The Business Council of New York State, Inc.