What's happening
Writing a plain-English summary… Track this bill to get it by email.
Why it matters
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Headline styles
Sponsors
1 Co-sponsor
History
- Recommit, enacting clause stricken
- Referred to banks
- Reported and committed to finance
- Referred to banks
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 the provisions relating to the Gramm-Leach-Bliley act
In Assembly Committee · Ways And Means · Sponsor Herman D. Farrell
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S3750
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; and to amend the tax law and the administrative code of the city of New York, in relation to extending transitional provisions relating to the federal Gramm-Leach-Bliley act
Purpose
This bill would make permanent the bank tax statute and extend for two years the provisions in the State and City bank taxes relating to enactment and implementation of the federal Gramm-Leach-Bliley Act. The provisions of the current bank tax and Gramm-Leach-Bliley extender are presently expired for taxable years beginning on or after January 1, 2011.
Read the full memo (645 words)
Summary of provisions
This bill would amend Section 51 of Chapter 298 of the Laws of 1985 by deleting the sunset provisions which were contained in that law's effective date. The law currently provides that the amendments enacted by Chapter 298 shall not apply to taxable years beginning on or after January 1, 2011.
The bill would also amend Section 110 of Chapter 817 of the Laws of 1987 by deleting the sunset provisions relating to certain amendments regarding the bad debt deduction for commercial banks. The law currently provides that the amendments enacted by Chapter 817 shall not apply to taxable years beginning on or after January 1, 2011.
This bill would lastly amend section 1452 of the tax law and section 11-640 of the administrative code of the City of New York by deleting the sunset provisions which were contained in that law's effective date. The law currently provides that the provisions shall not apply to taxable years beginning on or after January 1, 2011.
Justification
The State tax on the banking industry was significantly restructured by Chapter 298 of the Laws of 1985. The intent of this law was to make the franchise tax on banking corporations more similar to the
franchise tax on general business corporations, and to treat commercial banks and thrift institutions in a similar manner.
Transitional provisions were added to the New York Tax Law and the New York City Administrative Code to comply with the federal Gramm-Leach-Bliley Act beginning in 2000. These provisions removed prohibitions against the affiliation of banks, securities firms and insurance companies. Removal of these prohibitions allowed banks and securities firms to more certain of their taxable status as they exercised the expanded powers granted to them at the federal level.
Each of the above provisions was only temporarily authorized, and due to their impermanent nature, tend to cause uncertainty in the industry regarding tax liability of banking corporations. This has complicated tax calculation, record keeping and efforts to plan for the future. These provisions should each be made permanent to collectively provide filing and accounting continuity for business taxpayers.
Legislative history
This is a new bill.
Fiscal implications
The revenues produced by the provisions of this bill are contained in the 2011-2012 Executive Budget.
Effective date
This act would take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.