On April 13, 2016, Governor Andrew Cuomo signed into law the final 2016–2017 New York State Budget (S.6409-C, A.9009-C). Although not as wide-ranging with regard to taxes as other budget legislation in recent years, there are several key tax provisions:

  • Hotel Room Remarketers. The new law provides an exemption from New York State sales tax and New York City hotel tax for hotel room remarketers for their purchases of hotel room occupancies that in turn are supplied to customers of the room remarketers. Previously, room remarketers were required to pay sales tax on hotel room purchases and then seek a credit or refund from New York State where sales tax and hotel tax was collected on the remarketed rooms. Part X.
  • Corporate Tax Reform Technical Corrections. Technical corrections were made to the New York State and New York City corporate tax reform laws, including re-defining the “qualified financial instrument” definition to exclude stock that generates “other exempt income” and that is not marked-to-market. Part P.
  • Filing Deadlines. Conform the New York State and City tax filing deadlines for corporations and partnerships to the new deadlines put in place for federal income tax purposes. Part Q.
  • Estate Tax. The new law eliminates charitable contributions and activities as a factor in determining domicile for estate tax purposes, similar to the law under the personal income tax. Part Y.
  • Middle Class PIT Reduction. Personal income tax rates were reduced for individuals with taxable income between $26,000 and $300,000 for tax after 2017. Part TT.