Relates to imposition and collection of taxes

1 Co-sponsor

• Pedro Espada Jr.

Title of bill

An act to amend the tax law, in relation to clarifying that income subject to an election under section 338(h)(10) of the internal revenue code was intended to be included as New York source income by nonresident shareholders of an S corporation to the extent that such sale includes property located in New York when they determine their New York source income (Part A); to amend the tax law, in relation to registration of tax return preparer (Part B); to amend the tax law, in relation to the taxicab ride tax imposed in the metropolitan commuter transportation district by article 29-A of such law (Part C); and to amend the environmental conservation law, in relation to changing the existing operating permit program fees (Part D)

Part A

Summary of provisions

This part would clarify that if a New York S corporation has chosen a 338(h) (10) election at the Federal level, the federal law governing such an election would also apply for New York tax purposes.

Fiscal impact

Prevents the loss of $30 million in revenue: in SFY 2009-10.

Effective date

Immediately, applying to tax years for which the statute of limitations is still open. Part B SUMMARY : This part would repeal the requirement that tax return preparers register with the Department of Taxation and Finance and emit the associated registration fee. FISCAL IMPACT : Loss of approximately $3.5 million in SFY 2009-10, which will be offset somewhat by administrative savings associated with initiating this new program. EFFECTIVE DATE : Effective immediately. Part C SUMMARY : This part would make technical corrections related to the surcharge on metered taxicabs within the Metropolitan Commuter Transportation District, such that ultimate liability for the surcharge would lie with the owner of the medallion instead of the owner of the taxicab. This is intended to improve the administration of the recently enacted surcharge, which goes into effect on November 1, 2009. FISCAL IMPACT : None to the State. EFFECTIVE DATE : November 1, 2009. Part D SUMMARY : Makes technical corrections to clarify the fee structure of Article V cleanup fees. FISCAL IMPACT : None to the State. EFFECTIVE DATE : This act shall take effect on the same date and in the same manner as Part BBB of Chapter 59 of the Laws of 2009, takes effect.