Proposed New York budget amends related party royalty addback, proposes other changes


Released on January 22, 2013, New York Governor Andrew Cuomo's executive budget for 2013-14 would effectively replace the state's existing related party royalty addback requirement by adopting provisions based on the Multistate Tax Commission's addback statute. The changes include the removal of the royalty income exclusion and replacing it with three new exceptions. The proposal would also make additional tax changes, including extending the MTA surcharge, and modifying and extending the film tax credit.

Taxpayers claiming the royalty income exclusion or taking the addback need to consider the affects of any proposed changes should they become law.

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