March 1, 2001
Senate's 'single-sales factor' bill has eleven new sponsors
Eleven Senators have joined Sen. Dean Skelos (R-Nassau) in sponsoring a bill to adopt the "single-sales factor" to calculate state corporate income taxes.
The single-sales factor would base corporate income taxes solely on a taxpayer's sales to in-state destinations. Adopting the single-sales factor for all corporations is The Business Council's top tax priority for 2001.
State corporate income taxes are now based on in-state sales, property, and payroll. This effectively encourages employers to site jobs and plants out of state to lessen their New York taxes.
The Governor has proposed the single-sales factor for manufacturers, to be phased in over five years. Assemblyman Joseph Morelle (D-Monroe) has introduced a bill to phase in the single-sales factor over two years for manufacturers and the biotechnology industry.
The Senate bill would affect most corporations immediately.
New bill sponsors are: Sen. James Alesi (R-Monroe); Sen. John DeFrancisco (R-Onondaga); Sen. Hugh Farley (R-Schenectady); Sen. Kemp Hannon (R-Nassau); Sen. Nancy Lorraine-Hoffmann (R-Onondaga); Sen. Owen Johnson (R-Suffolk); Sen. Michael Nozzolio (R-Seneca); Sen Frank Padavan (R-Queens); Sen. Mary Lou Rath (R-Erie); Sen. James Seward (R-Otsego); and Sen. Ceasar Trunzo (R-Suffolk).
For information on a Public Policy Institute study showing the single-sales factor would add some 133,000 jobs over three years in New York, visit www.bcnys.org/whatsnew/2001/0110ssf.htm.