New York: Corporate Tax Reform Coming
Whether you were aware of it or not, New York Tax Reform appears to be coming soon. The New York Department of Taxation recently released an OUTLINE of the tax reform proposals being considered. The following is a list of some of the highlights included in the outline:
- The Economic nexus standard would (officially) be adopted (meaning, if you think about 'breathing' into New York, you probably have a taxable presence in New York).
- Certain exemptions from the tax base would be eliminated along with some changes to what is considered "investment income."
- The definition of "business income" would become broader (meaning, more of your income would be considered apportionable to New York).
- All corporations would be subject to one tax rate (yet to be determined).
- NOLs would not be allowed to be carried back.
- Business income would be apportioned based on a single sales factor using customer sourcing.
- Receipts from digital goods would be considered NY sales if the customer is in New York.
- Receipts from services would be considered NY sales if the customer is in New York.
- Combined reporting for unitary groups, with more than 50% ownership.
There are additional changes (not mentioned above) included in the OUTLINE. Check it out for all of the fun-filled details.
Brian Strahle is the owner of LEVERAGE SALT, LLC where he provides state and local tax technical services to accounting firms, law firms and tax research organizations across the United States. He also writes a weekly column in Tax Analysts State Tax Notes entitled, "The SALT Effect." For more info, visit his website: www.leveragestateandlocaltax.com
You can reach Brian at email@example.com.
Because state and local taxes are deceptively simple and endlessly complicated.