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Sponsors
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History
- Recommitted to finance
- Advanced to third reading
- 2nd report cal.
- 1st report cal.350
- Print number 7094a
- Amend and recommit to finance
- Committee discharged and committed to finance
- Referred to investigations and government operations
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
Signed by Governor · Sponsor Darryl Towns
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to amend chapter 298 of the laws of 1985, amending 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 business 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.
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.
Read the full memo (698 words)
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 more year to taxable years beginning before January 1, 2011.
Significant changes were made to the franchise tax on banking corporations 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 has 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 liabilities 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 banking 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 additional 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.