New York—Multiple Taxes: Passage of Budget Containing Numerous Tax Provisions Announced02 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