Craig B. Fields and Irwin M. Slomka
State + Local Tax
On March 30, 2018, the New York State Legislature approved a compromise 2018–2019 Budget Bill. Among the more significant tax provisions adopted (in bill S. 7509-C/A. 9509-C) were the following:
Several of the Governor’s proposals were not passed by the Legislature, including: (i) the imposition of an “Internet Fairness Conformity Tax” that would have required Internet “marketplace providers” that “facilitate” sales of tangible personal property on behalf of sellers to collect New York sales tax on those transactions; (ii) a 14% “Healthcare Insurance Windfall Profit Fee” imposed on net underwriting gains from health insurance sales to New York customers; (iii) a proposal that would have treated carried interests earned by promoters as income from a trade or business (subjecting nonresident individuals to tax on those amounts), and would have imposed a 17% “carried interest fairness fee,” but only if substantially similar legislation was enacted by several nearby states; (iv) the deferral of certain business tax credits aggregating in excess of $2 million annually for the years 2018 through 2020; and (v) affording the New York State Tax Department the right to appeal adverse decisions of the Tax Appeals Tribunal to the New York courts.
The Governor is expected to sign the legislation shortly.
Please contact Irwin M. Slomka or Craig B. Fields with any questions regarding the final budget bill. For a copy of the bill, click here.
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