Tax News

CCH (cch.taxgroup.com) reports:

  The New York Assembly has passed A.B. 8615, A.B. 8866, and A.B. 8867, which contain a variety of New York City sales tax, corporation tax, and unincorporated business tax provisions that are part of a revenue package previously announced by the mayor and the city council speaker. (TAXDAY, 2009/06/03, S.23)

  If enacted, A.B. 8866 would do the 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; and

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

  Under A.B. 8615, a credit reducing the unincorporated business tax would apply if the annual tax amount is less than $5,400. The credit would completely offset unincorporated business tax amounts of $3,400 or less.

  Among other changes, A.B. 8867 would phase in a single sales factor and generally require related corporations with substantial intercorporate transactions to file a combined report, regardless of the transfer price for such intercorporate transactions.

  The text of the bills is available at
http://assembly.state.ny.us/leg/?bn=a8615 for A.B. 8615,
http://assembly.state.ny.us/leg/?bn=a8866 for A.B. 8866, and
http://assembly.state.ny.us/leg/?bn=a8867 for A.B. 8867.

A.B. 8615, A.B. 8866, and A.B. 8867, as passed by the New York Assembly on June 16, 2009; Press Release , New York City Mayor's Office, June 15, 2009