From time to time, companies without headquarters, operations or another nexus to New York State will conduct board meetings in New York City for convenience purposes.

In an effort to capture additional tax revenues, the State of New York has recently been taking the position that meeting fees earned for a meeting conducted in New York City (and a pro rata share of the directors' annual stipend) are earned in the State of New York and therefore subject to New York State income taxes.

This is a factor that you may wish to consider when deciding whether to schedule a board meeting in New York City on a discretionary basis.