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 https://nyassembly.gov/leg/?bn=S01509.

The announcement is available at https://www.governor.ny.gov/news/governor-cuomo-and-legislative-leaders-announce-agreement-fy-2020-budget.

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