On March 31, 2014, New York Governor Andrew Cuomo signed the state’s fiscal year 2014-2015 (FY 14-15) executive budget legislation.
On March 31, 2014, New York Governor Andrew Cuomo signed the state’s fiscal year 2014-2015 (FY 14-15) executive budget legislation. The legislation overhauls the state’s corporate tax regime and makes other changes to various tax provisions. Important changes include: eliminating the bank franchise tax and subjecting all corporations to a revised corporate franchise tax, reducing the corporate tax rate from 7.1% to 6.5%, implementing a new unitary combined reporting system, revising net operating loss provisions, establishing a single receipts factor apportionment formula with customer sourcing provisions, and providing for multiple tax credits.
Accounting Standards Codification (ASC) Topic 740, Income Taxes, requires filers to measure current and deferred income taxes based upon the tax laws that are enacted as of the balance sheet date of the relevant reporting period. Companies should review the tax law changes in detail to determine the financial statement impacts.