New York—Multiple Taxes: Passage of Budget Containing Numerous Tax Provisions Announced

02 April 2019

New York announced an agreement on the 2019-20 state budget. The budget legislation (S.B. 1509), which was passed by the legislature, contains a variety of personal income, corporate franchise, property, sales and use, and other tax changes, including the following:

  • expanding and extending various credits;
  • providing a sourcing rule for global intangible low-taxed income;
  • creating an employer-provided child care credit;
  • extending the top personal income tax bracket for five years;
  • extending the high-income charitable contribution deduction limitation;
  • creating a credit for employment of individuals in substance use recovery;
  • providing an exclusion for certain contributions to the capital of a corporation;
  • adding estate and trust modifications for miscellaneous itemized deductions and certain other amounts;
  • requiring marketplace providers to collect sales tax on taxable sales of tangible personal property that they facilitate;
  • imposing a new/additional progressive mansion tax on mansions with a combined top rate of 4.15% on the sale of properties valued at $25 million or above (the existing transfer tax rate of 0.4% still applies, bringing the total top rate to 4.55%);
  • making the 2% property tax cap permanent;
  • imposing an additional 20% tax on retail sales of vapor products; and
  • imposing an excise tax on sales of opioids.

The text of the bill is available at

The announcement is available at

S.B. 1509, as passed by the New York Legislature on March 31, 2019; Release, New York Governor’s Office, March 31, 2019