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Sponsors
2 Co-sponsors
History
- Signed chap.67
- Delivered to governor
- Returned to assembly
- Passed senateVote 62–0
- Ordered to third reading cal.386
- Reported and committed to rules
- Referred to finance
- Delivered to senate
- Passed assembly
- Amended on third reading 10238a
- Ordered to third reading rules cal.18
- Rules report cal.18
Show 3 earlier actions
- Reported
- Reported referred to rules
- Referred to ways and means
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Extends certain provisions relating to the extension of the bank tax
In Senate Committee · Finance · Sponsor Craig M. Johnson
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:A10238A
Title of bill
An act to amend chapter 298 of the laws of 1985, amend- ing the tax law relating to the franchise tax on banking corporations imposed by the tax law, authorized to be imposed by any city having a population of one million or more by chapter 772 of the laws of 1966 and imposed by the administrative code of the city of New York and relating to other provisions of the tax law, chapter 883 of the laws of 1975 and the administrative code of the city of New York which relates to such franchise tax, to amend chapter 817 of the laws of 1987, amending the tax law and the environmental conservation law, constituting the busi- ness tax reform and rate reduction act of 1987, and to amend chapter 525 of the laws of 1988, amending the tax law and the administrative code of the city of New York relating to the imposition of taxes in the city of New York, in relation to the effectiveness of certain provisions of such chapters
Purpose of bill
To extend for one year the transitional provisions of the relating to the bank tax
Read the full memo (697 words)
Summary of provisions
The bill would extend the transitional provisions in the State and City bank taxes relating to the bank tax for one-year to taxable years beginning before January 1, 2011.
Justification
The bill would extend the provisions concerning the New York State and New York City taxation of commercial banks, which were added to the bank tax in 1985, for one pore year to taxable years begin- ning before January 1, 2011.
Significant changes were made to the franchise tax on banking corpo- rations under the Tax Law and the New York City Administrative Code in 1985. Many of those amendments, however, were made subject to a sunset provision. That provision his been extended numerous times, so that the amendments in question currently expire for taxable years beginning on or after January 1, 2010.
Starting in 2000, transitional provisions relating to the GLBA, which removed the prohibition against the affiliation of banks, securities firms, and insurance companies, were added to both the Tax Law and the New York City Administrative Code. The current GLBA transitional provision, which is set forth in Tax Law section 1452(m), expires in 2010.
The GLBA provisions were first enacted to provide banks and securities firms with certainty about their taxable status under the State and City taxes when the firms exercised the expanded powers authorized by the Federal law while the possible consolidation of the bank tax and the general corporation tax was studied. The initial study did not result in any legislation, and the transitional provisions have been extended for ten years. But the present system of taxation, which treats banks and securities firms differently, is outdated. These businesses are now often affiliated as part of a single large financial organization. In
addition, banks and securities firms today are competing against each other more and more. Separate systems of taxation also encourage tax planning strategies that result in substantially different tax liabil- ities for businesses conducting the same or comparable activities.
Recognizing these inherent problems, the Department of Taxation and Finance has undertaken a project to eliminate the separate tax on bank- ing corporations, and reform the current taxation of general business corporations. The goal of the project is structure a tax that treats general business corporations and financial institutions in the same manner under a tax system that promotes the principles of equity, economic efficiency, simplicity, ease of compliance and administration, reliability and stability, and economic competitiveness. As part of this project, the Department of Taxation and Finance is consulting with, and receiving input from, the New York general business, securities broker- dealer, and banking communities. The project is expected to be completed during 2010. To facilitate the transition to this unified tax system and eliminate any uncertainty about tax status in the interim, this addi- tional extension of the bank tax provisions is warranted.
Legislative history
Transitional provisions have been extended for ten years.
Fiscal implications
This bill preserves current Financial Plan revenue.
Effective date
This bill would take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.