Comments on NYC Corporate Income Tax Reform Provisions of the NYS 2015-16 Executive Budget

SUMMARY

The Committee on State and Local Taxation submitted comments on the proposal in the 2015-16 State Executive Budget to reform New York City’s corporate income tax system. The primary focus of this report is to evaluate the level of conformity between the Proposed City Reform Legislation with the New York State corporate tax law changes enacted on March 31, 2014 and the technical corrections contained in the Budget Bill. The Committee recognizes the City and State have different constituencies, budgetary concerns and other factors that drive their tax administration. Nevertheless, it believes that conformity should be the norm and that the City corporate statutes should decouple from the state corporate tax statutes only where there is a compelling reason for doing so. The report covers the following areas: effective date, nexus, tax base, tax rates, apportionment, combined filing, tax attributes, tax credits and other miscellaneous provisions.

BILL INFORMATION

A.3009 / S.2009, 2015-16 NYS Budget Article VII – NYC corporate income tax reform provisions

OUTCOME

Spring 2015 44th Street Notes: “Legislative Update: Passage of a State Budget”