Reinstates a bank tax based on the highest of four bases: a tax on allocated entire net income, a tax on allocated alternative entire net income, a tax on allocated taxable assets, or a fixed dollar minimum tax; prohibits banks from segregating their income and capital into business and investment varieties.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A7636
SPONSOR: Kim TITLE OF BILL:
An act to amend the tax law, in relation to franchise tax on banking
corporations
PURPOSE OR GENERAL IDEA OF BILL::
Reinstates a bank tax based on the highest of four bases: a tax on allo-
cated entire net income, a tax on allocated alternative entire net
income, a tax on allocated taxable assets, or a fixed dollar minimum
tax. Banks are not allowed to segregate their income and capital into
business and investment varieties.
SUMMARY OF PROVISIONS::
Section 1: Amends the tax law to reinstate Article 32, the franchise tax
on bank corporations.
Section 2: Sets Effective Date
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE):
JUSTIFICATION::
No analysis or study has ever been shared that demonstrates the elimi-
nation of the bank tax in the 2014-2015 budget was in any way vital to
the wellbeing of New York's financial sector. Until that time, the bank
tax should be reinstated, particularly in light of the financial
sector's actions leading up to the recent recession, as well as the fact
that it has already received substantial assistance from taxpayers as
part of the federal government's Trouble Asset Relief Program or TARP.
PRIOR LEGISLATIVE HISTORY::
Senate
2015: N/A
2016: S7571, Referred to Investigations and Government Operations
2017: S6885, Referred to Ways and Means
2018: S6885, Referred to Ways and Means
2019: S3456, Referred to Budget and Revenue
2020: S3456, Referred to Budget and Revenue
2021: S1680, Referred to Budget and Revenue
2022; S1680, Referred to Budget and Revenue
2023: S3440, Referred to Budget and Revenue
2024: S3440, Referred to Budget and Revenue
Assembly
2015: A6261, Referred to Ways and Means
2016: A6261, Referred to Ways and Means
2017: A5316, Referred to Rules
2018: A5316, Referred to Investigations and Government Operations
2019: A8552, Referred to Ways and Means
2020: A8552, Referred to Ways and Means
2021: A3474, Referred to Ways and Means
2022: A3474, Referred to Ways and Means
2023: A2195, Referred to Ways and Means
2024: A2195, Referred to Ways and Means
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS::
Estimated revenue increase
EFFECTIVE DATE::
This act shall take effect immediately and shall apply to taxable years
starting January 1, 2026.
