The final New York budget bill effectively replaces the state's existing related party royalty addback requirement by adopting provisions based on the Multistate Tax Commission's addback statute, provides tax reductions for qualified manufacturers, and extends the increased 8.82% tax rate on the highest tax bracket. The bill makes additional changes, including extending the MTA surcharge and modifying the film production tax credit.
The rate reduction and personal income tax rate extensions represent a compromise between legislators and the governor to achieve another on-time budget. The bill was signed by the governor on March 28, 2013. [N.Y. S.B. 2609-D]