New York - Tax reform heats up, changes likely

New York Governor Andrew Cuomo issued a press release on January 6, 2014 in which he endorsed many of the recommendations previously made by his Tax Reform and Fairness Commission and the Tax Relief Commission. This endorsement increases the likelihood for tax reform in New York. The Governor’s press release highlights several areas expected to be addressed by the legislature this year, including a merger of the corporate franchise tax and bank franchise tax, elimination of the corporate income tax on upstate manufacturers, a refundable credit against corporate and personal income tax based on a percentage of property tax paid, and other changes. The more detailed reform proposals previously issued by the Commissions also included requiring mandatory combined reporting, imposing economic nexus standards, single sales factor apportionment with customer sourcing rules, modernizing the sales tax, modifying the estate tax, updating local property tax administration, and simplifying tax administration. These proposals are also likely to be presented to the legislature. All New York taxpayers should consider the implications of tax reform and analyze the provisions in the upcoming FY 14-15 executive budget, which is expected by the end of January. [Press Release, Governor Andrew Cuomo, 1/6/14]. ​

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