NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A3009B
SPONSOR: Budget TITLE OF BILL: An act intentionally omitted (Part A); to amend the
state finance law, the tax law and the administrative code of the city
of New York, in relation to the New York city personal income tax rates
(Part B); intentionally omitted (Part C); intentionally omitted (Part
D); to amend the real property tax law, in relation to establishing a
state-administered recoupment provision to the STAR exemption program
(Part E); to amend the state finance law, in relation to making techni-
cal corrections to the school tax relief fund; and to provide one-time
relief to STAR registrants who failed to file timely STAR exemption
applications (Part F); intentionally omitted (Part G); to amend the tax
law and the administrative code of the city of New York, in relation to
extending the limitation on charitable contribution deductions for
certain taxpayers (Part H); to amend the tax law, the administrative
code of the city of New York and the labor law, in relation to making
certain technical corrections (Part I); to amend the tax law, in
relation to a report regarding the empire state commercial production
tax credit; and to repeal section 9 of part V of chapter 62 of the laws
of 2006, amending the tax law relating to the empire state commercial
production tax credit, relating thereto (Part J); to amend the economic
development law, in relation to the eligibility of entertainment compa-
nies for the excelsior jobs program (Part K); intentionally omitted
(Part L); intentionally omitted (Part M); intentionally omitted (Part
N); to amend the economic development law and the tax law, in relation
to establishing a tax credit for employers who procure skills training
for employees necessary to cultivate a talented workforce (Part O); to
amend the tax law, in relation to the metropolitan transportation busi-
ness tax surcharge on utility services and excise tax on sale of tele-
communication services, and the excise tax on telecommunication services
imposed by article 9 of such law (Part P); intentionally omitted (Part
Q); intentionally omitted (Part R); to amend the business corporation
law, the limited liability company law, the partnership law and the tax
law, in relation to the biennial statements filed with the secretary of
state (Part S); to amend the tax law, in relation to making corrections
to the corporate tax reform provisions; and to repeal certain provisions
of such law relating thereto (Part T); to amend the tax law, in relation
to exempting certain items of tangible personal property furnished to
customers by certain cider producers, breweries, and distilleries at
tastings (Part U); to amend the tax law, in relation to the imposition
of the sales and compensating use tax on prepaid mobile calling services
(Part V); intentionally omitted (Part W); intentionally omitted (Part
X); intentionally omitted (Part Y); to amend the tax law, in relation to
exempting electricity provided by certain sources from the sales tax
imposed by article 28 of the tax law and omitting such exemption from
the taxes imposed pursuant to the authority of article 29 of the tax
law, unless a locality elects otherwise; and to repeal subdivisions (n)
and (p) of section 1210 of such law relating to tax exemptions imposed
by resolution in cities having a population of one million or more
persons (Part Z); to amend the tax law, in relation to allowing a
reimbursement of the petroleum business tax for highway diesel motor
fuel used in farm production (Part AA); to amend the tax law, in
relation to calculating the estate tax imposed under the tax rate table,
clarifying the phase out date for certain gift add backs and disallowing
deductions relating to intangible personal property for estates of non-
resident decedents (Part BB); intentionally omitted (Part CC); to amend
part Q of chapter 59 of the laws of 2013 amending the tax law relating
to serving an income execution with respect to individual tax debtors
without filing a warrant, in relation to extending the effectiveness
thereof (Part DD); intentionally omitted (Part EE); intentionally omit-
ted (Part FF); intentionally omitted (Part GG); intentionally omitted
(Part HH); intentionally omitted (Part II); intentionally omitted (Part
JJ); intentionally omitted (Part KK); intentionally omitted (Part LL);
to amend the tax law, in relation to capital awards to vendor tracks
(Part MM); to amend the racing, pari-mutuel wagering and breeding law,
in relation to licenses for simulcast facilities, sums relating to track
simulcast, simulcast of out-of-state thoroughbred races, simulcasting of
races run by out-of-state harness tracks and distributions of wagers; to
amend chapter 281 of the laws of 1994 amending the racing, pari-mutuel
wagering and breeding law and other laws relating to simulcasting and
chapter 346 of the laws of 1990 amending the racing, pari-mutuel wager-
ing and breeding law and other laws relating to simulcasting and the
imposition of certain taxes, in relation to extending certain provisions
thereof; and to amend the racing, pari-mutuel wagering and breeding law,
in relation to extending certain provisions thereof (Part NN); to amend
the tax law and the penal law, in relation to video lottery gaming (Part
OO); to amend the racing, pari-mutuel wagering and breeding law, in
relation to a franchised corporation (Part PP); intentionally omitted
(Part QQ); to amend the tax law, in relation to the credit for certain
alternative fuel vehicle refueling property and electric vehicle
recharging property (Part RR); to amend the tax law, in relation to
sales and compensating use taxes imposed with respect to vessels by
article 28 of the tax law and pursuant to the authority of article 29 of
such law (Part SS); to amend the tax law, in relation to sales and
compensating use taxes imposed with respect to certain aircraft by arti-
cle 28 and pursuant to the authority of article 29 of such law (Part
TT); to amend the tax law, in relation to exempting from sales and use
taxes certain tangible personal property or services (Part UU); to amend
the racing, pari-mutuel wagering and breeding law, in relation to the
New York Jockey Injury Compensation Fund, Inc. (Part VV); to amend the
tax law, in relation to vendor fees paid to vendor tracks (Part WW); to
amend the racing, pari-mutuel wagering and breeding law, in relation to
account wagering; and providing for the repeal of certain provisions
upon expiration thereof (Part XX); to amend the tax law, in relation to
the exemption of libraries from the imposition of the metropolitan
commuter transportation mobility tax (Part YY); and to amend part CC of
a chapter of the laws of 2015 amending the vehicle and traffic law
relating to directing the city of Buffalo to adjudicate traffic infrac-
tions, as proposed in legislative bill numbers S.2008-B and A.3008-B, in
relation to the effectiveness thereof (Part ZZ)
The Legislative Budget includes legislation with the following Tax Law
changes:
* Limits the NYC STAR Personal Income Tax (PIT) credit to taxpayers with
income under $500,000. Fiscal: Reduces spending by $41 million in State
Fiscal Year (SFY) 2015-16 and by $51 million thereafter.
* Recoups improperly granted STAR exemptions with a three-year look-back
period.
Fiscal: Increases revenue by $1 million in SFY 2015-16.
* Allows homeowners who registered for the STAR exemption with the
Department of Taxation and Finance but failed to file timely applica-
tions with local assessors to receive the exemption for tax year 2014.
Fiscal: Reduces revenue by $1 million in SFY 2015-16.
* Extends for two years the current limitation on charitable contrib-
utions deductions for incomes over $1 million.
Fiscal: increases revenue by $70 million in SFY 2016-17, $140 million in
SFY 2017-18, and $70 million in SFY 2018-19.
* Technical amendments to the PIT and MTA Payroll Tax; allows farming
businesses to benefit from the 20 percent real property tax credit for
manufactures in those cases where taxpayer leases real property from
related or unrelated parties.
Fiscal: No fiscal impact.
* Enhances reporting requirements for the Commercial Production credit.
Fiscal: No fiscal impact.
* Amends the Excelsior Jobs program to include entertainment companies,
video game development, and music productions.
Fiscal: No fiscal impact.
* Provides for an employee training credit and a credit for hiring
interns in advanced technology.
Fiscal: No fiscal impact.
* Codifies the Utility tax on mobile telecommunications companies.
Fiscal: Reduces revenue by $3.5 million in SFY 2015-16 and preserves
current revenue thereafter.
* Combines the Department of State biennial information statement and
tax return filings and repeals the $9 Department of State filing fee.
Fiscal: Loss of $2 million in SFY 2015-16 and thereafter.
* Corporate tax reform technical amendments and definition changes to
investment income and qualified financial instruments.
Fiscal: Increases revenue by $7 million in SFY 2016-17 and $30 million
thereafter.
* Extends the wine tasting sales tax exemption to other alcoholic bever-
ages.
Fiscal: No fiscal impact.
* Codifies local sales tax on prepaid wireless based on retail location.
Fiscal: No fiscal impact.
* Exempts solar power purchase agreements from State and local sales
tax.
Fiscal: No fiscal impact.
* Allows petroleum business tax refunds for farm use of highway diesel
motor fuel.
Fiscal: No fiscal impact.
* Estate tax reform technical amendments including extension of the
applicability of the tax rate tables and clarification of gift add-back
provisions.
Fiscal: No fiscal impact.
* Two year extension, through April 1, 2017, of warrantless wage
garnishment provisions.
Fiscal: Increases revenue by $15 million in each of SFYs 2015-16 and
2016-17.
* Extends the Video Lottery Gaming vendor's capital awards program for
one year. Fiscal: No fiscal impact.
* Extends certain tax rates and certain simulcasting provisions for one
year.
Fiscal: No fiscal impact.
* Expands electronic gaming offerings at Video Lottery Gaming facilities
to include games that combine elements of chance and skill.
Fiscal: Increases revenues by $20 million in SFY 2015-16 and $40 million
thereafter.
* Extends the term of the Reorganization Board of the New York Racing
Association for an additional year for a maximum term of four years.
Fiscal: No fiscal impact.
* Amends the electric vehicle recharging property credit to exclude
grants received from the calculation of the credit.
Fiscal: No fiscal impact.
* Caps the sales tax for vessels worth over $230,000 and requires regis-
tration if a vessel is operated in the State for 90 or more consecutive
days.
Fiscal: No fiscal impact.
*Exempts from the sales and compensating use tax general aviation
aircraft. Fiscal: Loss of $10 million in revenues in SFY 2015-16 and
thereafter.
*Exempts from sales tax certain related persons' tangible personal prop-
erty or services transactions related to requirements pursuant to the
Dodd-Frank Wall Street Reform. The exemption sunsets on June 30, 2019.
Fiscal: No fiscal impact.
* Increases the cap on deductions from an owner's share of purses to two
percent for the cost of workers' compensation insurance for the New York
Jockey injury Compensation Fund until April 1, 2017.
Fiscal: No fiscal impact.
* Extends by one year the current rates for the Monticello Raceway Video
Lottery Terminals.
Fiscal: Reduces revenues by $2 million in SFY 2015-16.
* Amends the Racing, Pari-Mutuel Wagering and Breeding Law to specify
payments in the context of a multi-jurisdictional account wagering
provider.
Fiscal: No fiscal impact.
* Exempts Libraries from the MTA Payroll Tax. Fiscal: Reduces revenues
by $1.3 million in SFY 2016-17 and thereafter.
