Tax News

CCH (cch.taxgroup.com) reports:

  New York City Mayor Michael R. Bloomberg and City Council Speaker Christine C. Quinn have announced an agreement on a revenue package containing a variety of sales tax, general corporation tax, and unincorporated business tax proposals. If approved by the state legislature and signed into law by the governor, the package would do following:

  -- increase the New York City portion of the sales tax rate from 4.0% to 4.5%;

  -- repeal the exemption for purchases of clothing items priced at $110 or more;

  -- apply the full New York City sales tax to electric and natural gas customers purchasing energy from non-utility companies;

  -- shift the general corporation tax from a three-factor apportionment formula to a single sales factor; and

  -- eliminate the unincorporated business tax for businesses with incomes under $100,000 and reduce the tax for businesses making up to $150,000.

  The press release concerning the agreement is available at
http://www.nyc.gov/html/om/html/2009a/pr247-09.html.

Press Release , New York City Mayor's Office, June 1, 2009