March 14, 2021
The Assembly printed their one house Revenue bill (A.3009-B) just before midnight Saturday (3/13/2021). The bill includes a number additional revenue measures beyond the Governor’s revenue bill, some of which are highlighted (below).
Chart below includes significant provisions, and an updated revenue chart. The bill can be found here: Assembly One House Revenue Proposal . We are still waiting for Senate Revenue bill to be released:
New significant Assembly proposals include:
- replaced Exec Budget PIT proposal w/ new permanent rates and brackets starting at 9.85% for income over $2.2 mil (was 8.82%), increasing to 11.85% for income over $25 million.
- imposes a 1% tax on capital gains for taxpayers with taxable income over $1 million
- deletes EB delay in “middle class” PIT rate reductions
- adopts most of TBC’s recommendations re pass thru entity tax
- imposes 18% surcharge for tax years 2021 thru 2025, inclusive, on Article 9 (corporation) Article 9-A (corporate franchise) and Article 33 (insurance corporate) taxes, with some exemptions (i.e., corporations with net income over $1 million). Precludes application of any tax credits against the surcharge amount
- makes permanent the Article 9A capital basis alternative tax at 0.15% (it was to be phased out for 2021 tax year.)
- adopts a permanent Article 9A 4% ENI based tax rate for small businesses (ENI less than $390,000)
- increases and makes permanent the top estate tax rate at 20% for estates w/ taxable value over $10.1 million.
- extends the mortgage recording tax to mezzanine debt and preferred equity investments (looks like S.3074 (Salazar)/A.3139 (Epstein))
- imposes a “pied-a-terre” tax on NYC properties. Looks like S.4199 (Hoylman)/A.5736 (Glick)
- adopts a “tax free NY” program “fix” (for PIT liability of individuals who were not able to perform work within the TFNY area)
- adopts a new tax credit program for accommodation, art, entertainment entities; and
- modifies several tax credit programs, including ITC for some small businesses and farms.
| Executive Revenue Proposal | Assembly One House | Senate One House | Projected Revenue/Savings | |
| Part A | Enact temporary PIT surcharge on high-income taxpayers | Replaced Exec Budget PIT proposal w/ new permanent rates and brackets starting at 9.85% for income over $2.2 mil (was 8.82%), increasing to 11.85% for income over $25 million. | $1.5B 2022, $1.4B 2023, $1.2B 2024, $367M 2025 | |
| Part B | Delay middle class tax cut for one year | $394M 2022, $403M 2023, $445M 2024, $464M 2025, $368M 2026 | ||
| Part C | Pass-Through Entity Tax (SALT Cap Mitigation) | NA | ||
| Part D | Excelsior Child Care Services Tax Credit (Expansion of Excelsior Investment Tax Credit) | NA | ||
| Part E | Reform Tax Filing Requirements for Canadian bus and limo corps, Provide that all federal subchapter S corps be treated as subchapter s corps for state tax purposes | $6M | ||
| Part F | Extend Film Tax Credit for one year | NA | ||
| Part G | Increase Wage and Withholding filing penalty | $2M annually | ||
| Part H | Cannabis Regulation and Taxation Act | $20m 2022, $118m 2022 | ||
| Part I | Sales tax on vacation rentals | $10M 2022, $18M annually thereafter | ||
| Part J | Reform State Racing Admissions Tax | NA | ||
| Part K | Increase the interest free period for DTF to review and issue refund claims of $100k or more | NA | ||
| Part L | Make permanent the authority for counties and certain cities to impose local sales tax at the rate of four percent or current rate if higher | NA | ||
| Part M | Extend Dodd-Frank for three years | NA | ||
| Part N | Technical corrections to sales tax remote vendor registration | NA | ||
| Part O | Amend the real estate transfer tax (RETT) to add responsible person billing language to Article 31, prohibit grantors (sellers) from passing the basic RETT through to grantees (buyers), and provide a technical fix to the LLC disclosure requirements enacted last year by exempting publicly traded companies, REITs, UPREITs, and mutual funds from the requirement to list all members/shareholders. | NA | ||
| Part P | Technical changes to cigarette licensing provisions | NA | ||
| Part Q | Reduce the tax return filing frequency for Alcoholic Beverage Tax (ABT) and Highway Use Tax (HUT) taxpayers | NA | ||
| Part R | Amend the Tax Law to make the Technology Service Provider (TSP) responsible for collecting and remitting the taxicab tax and congestion surcharge | NA | ||
| PART S | Amend the Tax Law in relation to tax return preparer penalties for failure to register and to require the display of certain documents by tax return preparers | $15M Annually | ||
| Part T | All DTF the right to appeal adverse Tax Appeals Tribunal decisions | NA | ||
| Part U | Modernization and consolidation of the process for reporting real property transfers and for paying the associated tax and fees | NA | ||
| Part V | Improve and enhance STAR Program administration | $35M 2022 | ||
| Part W | Technical and conforming changes to the Real Property Tax Law | NA | ||
| Part X | Promote the development of renewable energy projects | NA | ||
| Part Y | Authorize mobile sports wagering and establish a casino tax rate petition process | $49m 2022, $357m 2023, $465m 2024, $493M 2025 | ||
| Part Z | Authorize the Gaming Commission to issue a RFI for the purpose of soliciting interest regarding the three unawarded gaming facility licenses | NA | ||
| Part AA | Eliminate Quick Draw restrictions | $15M 2022, $30M annually thereafter | ||
| Part BB | Eliminate restrictions on lottery draw game offerings | $7M 2022, $9M annually thereafter | ||
| Part CC | Decouple the Gaming Commission and the Gaming Inspector General | NA | ||
| Part DD | Extend pari-mutual tax rate and simulcast provisions for one year | NA | ||
| Part EE | Extend alternative fuels exemptions for five years | NA | ||
| Part FF | Extend Farm Workforce Retention Credit for three years | NA | ||
| Part GG | Extend low-income housing credits for five years | NA | ||
| Part HH | Extend and enhance the Musical and Theatrical Production Credit for four years | NA | ||
| Part II | Extend the Hire-A-Vet Credit for two years | NA | ||
| Part JJ | Extend the Economic Transformation and Facility Redevelopment Tax Credit for five years | NA | ||
| Part KK | Extend implementation deadline for the Secure Choice Savings Program for enrollment | NA | ||
| Part LL | Temporarily suspend payments from Rivers Casino to Saratoga Casino and Raceway | NA | ||
| Other | Hunting and Crossbow Licensing | $2m 2022 and thereafter | ||
| Other | Allow Non-CPA Owners of Public Accounting Firms | $2m 2022 and thereafter | ||
| Other | Impose a DMV Convenience Fee | $4m 2022, 13m 2023 and thereafter | ||
| Other | Increase Penalties for Mental Hygiene Law Violations and Establish Application Fees for Office of Mental Health(OMH) Operating Certificates | $1 M | ||
| Part MM | Increase the Earned Income Tax Credit | |||
| PART NN | Imposes a 1% tax on capital gains for taxpayers with taxable income over $1 million | |||
| PART OO | Imposes 18% surcharge for tax years 2021 thru 2025, inclusive, on Article 9 (corporation) Article 9-A (corporate franchise) and Article 33 (insurance corporate) taxes, with some exemptions (i.e., corporations with net income over $1 million). Precludes application of any tax credits against the surcharge amount | |||
| PART PP | Adopts a permanent Article 9A 4% ENI based tax rate for small businesses (ENI less than $390,000) | |||
| PART QQ | Amends the Historic Rehabilitation Tax Credit | |||
| PART RR | Amends Economic Development Law in relation to defining community significant projects | |||
| PART SS | Authorizes Commissioner of T&F to waive requirements related to employee location relative to certain businesses | |||
| PART TT | . | makes permanent the Article 9A capital basis alternative tax at 0.15% (it was to be phased out for 2021 tax year | ||
| PART UU | Repeals tax law related to certain Medicaid Management | |||
| PART VV | extends the mortgage recording tax to mezzanine debt and preferred equity investments | |||
| PART WW | Imposes a “pied-a-terre” tax on NYC properties- non-primary homes | |||
| PART XX | Increase Estate Tax: Increases rates and makes permanent top at 20% for estates w/ taxable value over $10.1 million. | |||
| PART YY | NYC Tax Credit for Small Businesses Impacted by COVID-19 Emergency | |||
| PART ZZ | Exempts Breast Pump Parts from Sales and Use Tax | |||
| PART AAA | Exempts Class One Capital Improvements in Residential Bldgs | |||
| PART BBB | Establishes Nourish NY Program |