What's happening
This bill exempts water-works corporations from business income tax and requires tax savings to lower or offset water rates.
Why it matters
Water-works corporations would see their business income tax rate reduced to zero, potentially freeing up significant capital that these companies would otherwise pay in taxes.
The bill explicitly requires that all tax savings gained by water-works corporations must be passed on to consumers, either by lowering current water rates or by offsetting future rate increases, ensuring direct public benefit rather than increased corporate profit.
By aligning the definition of “water-works corporation” with the Public Service Law, the bill targets regulated utilities, potentially differentiating them from private or unregulated water providers and aiming to impact those serving broad public needs.
This change could set a precedent for how tax policy is used to influence utility pricing in New York, signaling a legislative willingness to intervene directly in utility rate structures for consumer benefit.
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Who cares
Headline styles
Eliminate Water Utility Income Tax
Plain English, a few words. Used as the page title.
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History
- Referred to ways and means
- 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.
Zero Tax for Water Companies
In Senate Committee · Budget And Revenue · Sponsor Todd Kaminsky
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6545
2019-2020 Regular Sessions
IN ASSEMBLY
March 11, 2019
Introduced by M. of A. LAVINE -- read once and referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to the business income base for water-works corporations
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The opening paragraph of paragraph (a) of subdivision 1 of section 210 of the tax law, as amended by section 10 of part T of chapter 59 of the laws of 2015, is amended to read as follows:
For taxable years beginning before January first, two thousand sixteen, the amount prescribed by this paragraph shall be computed at the rate of seven and one-tenth percent of the taxpayer's business income base. For taxable years beginning on or after January first, two thousand sixteen, the amount prescribed by this paragraph shall be six and one-half percent of the taxpayer's business income base. The taxpayer's business income base shall mean the portion of the taxpayer's business income apportioned within the state as hereinafter provided. However, in the case of a small business taxpayer, as defined in paragraph (f) of this subdivision, the amount prescribed by this paragraph shall be computed pursuant to subparagraph (iv) of this paragraph and in the case of a manufacturer, as defined in subparagraph (vi) of this paragraph, the amount prescribed by this paragraph shall be computed pursuant to subparagraph (vi) of this paragraph, and, in the case of a qualified emerging technology company, as defined in subparagraph (vii) of this paragraph, the amount prescribed by this paragraph shall be computed pursuant to subparagraph (vii) of this paragraph, and in the case of a water-works corporation, as defined in subparagraph (x) of this paragraph, the amount prescribed by this paragraph shall be computed pursuant to subparagraph (x) of this paragraph.
§ 2. Paragraph (a) of subdivision 1 of section 210 of the tax law is amended by adding a new subparagraph (x) to read as follows:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10360-02-9
A. 6545 2
(x) for taxable years beginning on or after January first, two thousand twenty, the amount prescribed by this paragraph for a taxpayer which is a water-works corporation, shall be computed at the rate of zero percent of the taxpayer's business income base. The term "waterworks corporation" shall have the same meaning as in subdivision twenty-seven of section two of the public service law. Any tax savings attributable to this subparagraph shall be used to reduce current water rates and offset future water rate increases.
§ 3. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.