Source: http://www.bcnys.org/inside/budget/2015/FY16ExecutiveBudgetSummary.html
Timestamp: 2018-04-23 17:18:15
Document Index: 250846466

Matched Legal Cases: ['§ 208', '§367', '§274', '§272', '§273', '§2801', '§367', '§364', '§368', '§280', '§367', '§6908', '§2802', '§2801']

FY 2016 Executive Budget Summary
Governor Cuomo’s Executive Budget maintains the two percent growth cap on state operating funds, with non-capital state funds spending proposed to increase by $1.5 billion or 1.7%. All funds spending would grow 2.8% driven by a proposed 17.3% increase in capital spending. School aid would grow by $1.1 billion, or 4.8%, contingent on agreements on teacher evaluations and tenure and other performance improvement proposals. Medicaid would stay at its 3.6% growth target.
If enacted as proposed, the Executive Budget would produce a balanced budget for FY 2016, and modest operating surpluses for the next three fiscal years.
This proposal includes an unprecedented $5.7 billion in one time, “windfall” settlement funds. The Executive Budget proposes to apply $1.5 billion to a five year upstate redevelopment program, $1.28 billion for Thruway Authority relief (including Tappan Zee bridge funding), $850 million for the state’s reserve fund, $500 million for a statewide broadband initiative, $400 million for hospital improvements, and the remainder for various projects and purposes, mostly relating to transportation.
The Executive Budget includes a major new residential real property tax “circuit breaker” credit, that when fully implemented would produce $1.8 billion in relief to homeowners and renters.
Major business tax initiatives include: legislation to bring New York City’s business taxes into conformance with the state’s 2014 reforms; a reduction in corporate franchise tax rates applicable to small businesses; and an extension of the at risk youth employment credit. More than fifty “nuisance” regulatory fees are being repealed. And while the Executive Budget includes a ten year extension of the brownfield program, it also proposes significant limitations on its property redevelopment tax credits and repeals the program’s post-redevelopment real property tax credit.
Other positive legislation included in the budget include an extension and expansion of “design build” authority (albeit with unnecessary project labor agreement requirements) and provisions bolstering school performance and accountability.
On the downside, the Executive Budget proposes to extend the pre-existing utility gross receipt tax to cell phone services (an estimated $50 million per year) and to impose a new assessment on health plans to pay the cost of running the state’s health exchange ($70 million per year.)
The most significant employer cost-driver in the Executive Budget is its proposal to increase the state’s minimum wage to $10.50 per hour, and $11.50 per hour in New York City, effective January 1, 2017. The state’s minimum wage increased to $8.75 per hour on December 31, and under current law will increase to $9 per hour at the end of 2015.
Other proposals of concern include:
increases in environmental air and water permit fees; new mandated rebates on pharmaceuticals under the state Medicaid program; and stringent limits on campaign contributions by corporations and LLCs.
Missing from the Executive Budget were several reforms endorsed by The Business Council, including expedited repeal of the remaining section 18-a energy assessment, permanent extension of the real property tax cap, scaffold law reform as part of the state’s expanded infrastructure program, and a reduction in HCRA taxes related to bad debt and charity care.
The following provides a detailed review of the Executive Budget, with a focus on provisions impacting New York State employers. We welcome members’ comments and questions.
Financial Settlement Funding
Makes permanent the use of the design-build construction method on public projects, and expands its use to all State agencies and public authorities; requires projects over $50 million to prepare a project labor agreement feasibility study (S.2008/A.3008, Part B).
Directs $3.5 billion to the DOT capital program in 2015-16(S.2004/A.3004, Capital Projects)
Permanently extends the transfer of approximately $235 million in revenue from the DMV to the Dedicated Highway and Bridge Trust Fund (DHBTF) and the Dedicated Mass Transportation Trust Fund (DMTTF); (S.2008/A.3008, Part A.)
Creates a new Dedicated Infrastructure Investment Fund where part of the proceeds of the windfall legal settlements will be used for infrastructure projects (S.2005/A.3005, Part O).
Transfers $1.285 billion to the Thruway Authority from the Special Infrastructure Account to keep tolls stable for 2015 (S.2004/A.3004, Capital Projects).
Authorize the Department of Transportation and the New York State Thruway authority to enter into agreements to provide mutual aid through the sharing of employees, services and resources (S.2008/A.3008, Part G).
Streamlines the registration process of vehicles weighing over 80,000 pounds by eliminating the need for duplicate visits to the DMV and DOT for registration and overweight permits (S.2008/S.3008, Part H).
Aligns New York State law with federal requirements regarding commercial learners’ permits, retaining $43 million in federal highway funding (S.2008/A.3008, Part I).
Doubles fines and penalties for toll evasion on all roads, bridges and tunnels operated by public authorities (S.2008/A.3008, Part K).
Permits the state, in the case of a construction emergency, to let emergency contracts of up to $1 million for public work or the purchase of supplies, materials or equipment without complying with formal competitive bidding requirements ( current threshold is $300,000) (S.2005/A.3005, Part M).
Extends through 2019 statutes that allow the MTA and the New York City Transit Authority to use procurement methods to procure systems and construction contracts and maintains the $15,000 threshold above which MTA and NYCT must solicit purchases via sealed bids (S.2008/A.3008, Part L).
Extends for one year the date by which a MWBE disparity study must be delivered to the governor and legislature (S.2008/A.3008, Part Q).
Capital Projects (S.2004/A.3004):
The Executive proposes a new $1.5 billion appropriation for the Upstate Revitalization Fund located in the Urban Development Corporation. See details under “Financial Settlements” section below.
Provides $150 million in additional funding for the Regional Development Councils.
Provides $110 million in additional funding for the NY Challenge Grant program. The funding will be evenly divided between NYSUNY 2020 and NYCUNY 2020 initiatives.
Provides $45 million for the New York Works Economic Development Fund.
Provides $35 million from the New York Power Authority for the Global NY Development Fund, to provide grants and loans to help New York State based small- and medium-sized businesses with financing to help them export their products to emerging markets outside the United States. This is an off Budget Item.
Includes a new $33.5 appropriation for services and expenses of the New York power electronics manufacturing consortium. This is the first phase of a multi-year program that will provide a total of $135 million in funding.
Provides $32.2 million for the Economic Development Fund.
Provides $25 million to complete the new school of pharmacy at Binghamton University.
Provides $19 million to Cornell University College of Veterinary Medicine to expand and upgrade infrastructure and teaching facilities at the Cornell University College of Veterinary Medicine
Provide $5 million in additional funding to the Clarkson-Trudeau partnership to help grow biotech industry in the North Country.
Extend for one year the authority of the Urban Development Corporation to administer the Empire State Development Fund. This has been extended every year since 2012. (S.2008/A.3008, Part M):
This part would extend for one year the general loan making authority of the Urban Development Corporation. This has been extended every year since 1997. (S.2008/A.3008, Part N).
Allows for local school districts, private schools and BOCES to submit waivers from special education requirements for a specific school year and provides for 60 days for the parents of students being affected to submit comments (S.2006/A.3006, Part A).
Directs the commissioner of education to establish regional tuition rates for special education itinerant services based on average actual costs, and provides for the phase in over a four-year period (S.2006/A.3005, Part A).
Provides that any new curriculum or program of study offered by a four-year college or community college that does not require board of regents approval of a master plan amendment and that is approved by the board of trustees shall be deemed registered with the department. The board of trustees must notify the department within 30 days of such approval (S.2006/A.3006, Part B).
Provides $3 million to support a third round of P-TECH school designations (S.2003/A.3003)
Enacts the New York State Get On Your Feet Loan Forgiveness Program; eligible applicants must: graduated from a high school located in New York State or attended or received a high school equivalency diploma in New York State; earn an undergraduate degree from a college or university with its headquarters located in New York State in or after 2015; participate in a federal income-driven repayment plan; have an income of less than $50,000; reside in New York; and, if employed, work in New York State. Awards will be equal to 100 percent of the participant’s monthly federal income-driven repayment plan payments for the first two years of repayment under the federal program (S.2006/A.3006, Part C).
Requires the SUNY and CUNY board of trustees to pass resolutions (by the end of 2015) providing that students be required to participate in an approved experiential or applied learning activity as a degree requirement (S.2006/A.3006, Part Q).
Institutes the Dream Act, extending eligibility for financial awards to applicants without lawful immigration status if the student attended a New York State high school for two or more years (and graduated) or received a high school equivalency diploma. (S.2006/A.3006, Part D).
Renames the Youth Works Tax Credit to the Urban Youth Jobs Program tax credit, allocates an additional $10 million in tax credits in 2015-2017 and targets localities with high unemployment and high youth poverty (S.2009/A.3009, Part M)
Creates the Employee Training Incentive Program (ETIP) tax credit. See Taxation section below for details. (S.2009/A.3009, Part O).
Amends the tenure process for teachers and principals hired after July 1, 2015, stipulating that new teachers will remain on probation until they receive five consecutive ratings of “effective” or “highly effective” on the APPR (S.2010/A.3010, Part A).
Authorizes the Commissioner of Education to a categorize a school district as failing (one that has scored in the lowest 2.5 percent of school districts statewide, when compared to other districts based on student achievement and performance on state assessments, graduation rates and drop-out rates) and appoint a receiver to create and enact a plan to improve student achievement (S.2010/A.3010, Part A).
Increases the cap on charter schools by 100 to 560 (S.2010/A.3010, Part A).
Requires institutions with graduate-level teacher education programs to adopt rigorous selection criteria including, including achievement of 3.0 or higher GPA in a candidate’s undergraduate program and a minimum GRE score (or comparable admission examination) as determined by the institution, and provides for the suspension of the institution’s operations if fewer than 50 percent of its students pass examinations required for certification. Also requires teachers to register withstate ed. every five years and imposes a $10/month late fee, and requires teachers to complete at least 100 hours of continuing teacher education during each registration period (S.2010/A.3010, Part A)
Creates the New York State Masters-in-Education Teacher Incentive for students in approved masters’ education programs who meet the following criteria: earned an undergraduate degree from a New York college and resided in New York while earning the degree; achieved academic excellence as defined by the corporation in regulation; and agree to teach on a full-time basis in New York for five years. Program (S.2010/A.3010, Part A)
Amends the components of the teacher evaluation system to remove the local test portion and changes the weightings of the score components to 50 percent state tests and other comparable measures and 50 percent classroom observations.
While not included in the Executive Budget language, the Governor will create regional planning councils to work with community colleges to assure their programs address workforce needs.
Requires campaign committee reports to identify “intermediaries” (i.e., bundlers) that deliver contributions to committees (S. 2005/A.3005. Part E, Section 3).
Establish a $25,000 annual limit for contributions to housekeeping accounts (S.2005/A.3005. Part E, Section 4).
Establishes contribution limits for participants in the voluntary public financing program of $12,000 for statewide candidates ($6,000 for both the primary and general election); $8,000 for Senate candidates; and $4,000 for Assembly candidates. Lowers contribution limits for non-participating candidates to $25,000 for statewide offices ($10,000 for the primary and $15,000 for the general), $10,000 for senate candidates ($5,000 for each election), and $6,000 for assembly candidates ($3,000 for each election). (S.2005/A.3005. Part E, Section 6.)
Establishes a $1,000 annual aggregate contribution limit for corporations and LLCs (S.2005/A.3005. Part E, Section 7).
Effective for 2018 elections, creates a public campaign funding program (S.2005/ A. 3005. Part E, Section 9):
Sets public funding limits for primary and general elections for governor ($8 and $10 million respectively), other statewide offices ($4 million for both), for senate ($375,000 for both) and for assembly ($175,000 for both).
Sets qualification thresholds for candidates, based on total contributions and number of contributors.
Funding to be provided through tax return check-off contributions, transfers from the states’ abandoned property fund, appropriations from the state general fund and direct contributions.
Provides a 6 to 1 match for qualifying contributions of up to $175.
Only contributions from “natural persons” are matchable; lobbyists are categorically prohibited from making matchable contributions.
Directs a payment of up to $913,000 from the New York State Energy Research and Development Authority (NYSERDA) to the General Fund. This transfer has been authorized for a number of years to cover the costs of West Valley. (S.2008/A.3008 Part O).
Authorizes $19.7 million in assessments on utilities to fund NYSERDA’s research, development and demonstration, and policy and planning programs, and DEC's climate change program. (S.2008/A.3008, Part P)
Transfers $36 million of RGGI proceeds to the State, including $13 million to Environmental Protection Fund (EPF) to cover revenue shortfalls and to increase the EPF. (S.2005/A.3005, Part P.)
Authorizes the Long Island Power Authority (LIPA) to issue special securitized restructuring bonds that would reduce the interest rates paid on LIPA’s debt. (S.2008/A.3008, Part W. )
Clarifies that solar power purchase agreements are exempt from State and local sales tax. (S.2009/A.3009, Part Z.)
Note that the State of the State message included numerous other proposals that are off budget, including a $20M Southern Tier clean energy prize. Funding will come from the New York Power Authority.
Extend the Brownfield program for ten years and limits the number of projects eligible for the tangible property credit. Program reforms include: adoption of the BCP-EZ, a fast-track approval option without tax credits; requiring sites in the BCP prior to 4/1/15 to obtain a certificate of completion by 12/31/17, or meet new tangible property credit eligibility criteria; exempt hazardous waste generated at certain remedial sites from fees and special assessments. Tax credit provisions are under Taxation below. (S.2009/A.3009, Part R).
Increases operating permit program fees for all sources subject to federal Clean Air Act permitting (Title V facilities): $2,500 for a source subject to state facility permit, $250 for a source subject to a minor facility registration, and $2,500 for a facility with any other operating approval (S.2008/A.3008, Part Y.)
State Pollutant Discharge Elimination System (SPDES) permit fees are increased between 15% to 25%, depending on the facility. (S.2008/A.3008, Part Y.)
Repeals the fee assessed by the Department of Environmental Conservation (DEC) on water well drillers. (S.2008/A.3008, Part Z).
The budget proposed to extend the Brownfield program for ten years and limit the number of projects eligible for the tangible property credit. (S.2009/A.3009, Part R).
Provides $100 million to finance the New York State Superfund program. S.2004/A.3005 P.85) Provides $155 million of new capital appropriations including $110 million for Parks infrastructure, $40 million for DEC capital needs, $2.5 million for ORDA infrastructure, and $2.5 million for improvements on the State fairgrounds.
Amends the State Oil Spill Fund to expand the purposes of the Fund, to transfer its operations to DEC, and to increase the fees for oil transported through New York to 13.75 cents per barrel and to increase the per-barrel license fee for major oil storage facilities (MOSFs), irrespective of whether the oil remains in New York or is transferred to another State. (S.2008/A.3008, Part X
Note that the State of the State also embraced the Child Safe Products Act, which would establish a State level regulation of chemicals in children’s products.
Allows public accounting firms to incorporate in New York State with minority ownership by individuals who are not Certified Public Accountants. (S.2006/A.3006, Part G)
Restructures New York City general corporate tax structure, which would apply to all corporations including financial corporations effective 1/1/15. See details under Taxation. (S.2009/A.3009, Part QQ.)
New York received $5.7 billion in financial settlements in the current state fiscal year which exceeded budgeted financial settlement projections by $5.4 billion. The Executive Budget proposal has dedicated this money to the following initiatives in the State Financial Plan:
Special Infrastructure Account ($3.05 Billion)
Thruway Stabilization Program ($1.28 billion), to fund the Thruway Stabilization Program for expenses related to both the new Tappan Zee Bridge and the statewide system.
Penn Station Access ($250 million), for MTA’s Penn Station Access project, which will open a new Metro-North link directly into Penn Station and construction of four new Metro-North stations in the Bronx.
Infrastructure Improvements ($115 million), for infrastructure improvements to support transportation, upstate transit, rail, airport, port, and other infrastructure improvements or economic development projects.
Broadband Initiative ($500 million), for the New NY Broadband Fund to expand the availability and capacity of broadband across the State.
Hospitals ($400 million), to support the restructuring of debt obligations and to fund capital improvements for, and to facilitate mergers and consolidations of, hospitals in rural communities.
Transit-Oriented Development ($150 million), funding to create new transit-oriented development, including but not limited to, the development of structured parking facilities at Nassau hub and Ronkonkoma hub.
Resiliency, Mitigation, Security, and Emergency Response ($150 million), to support preparedness and response efforts.
Municipal Restructuring ($150 million), for local governments and school districts to implement shared services, cooperation agreements, mergers, and other actions that permanently reduce operational costs and property tax burdens.
Southern Tier/Hudson Valley Farm Initiative ($50 million), for landowners in the Southern Tier and Hudson Valley maintain and develop farming, agricultural, and related businesses.
Broadband Initiative $59,350 $106,800 $130,500 $106,800 $96,550 $500,000
Municipal Restructuring $17,805 $32,040 $39,150 $32,040 $28,965 $150,000
Hospital Projects $47,480 $85,440 $104,400 $85,440 $77,240 $400,000
Disaster Prevention and Response $17,805 $32,040 $39,150 $32,040 $28,965 $150,000
Penn Station Access $29,675 $53,400 $65,250 $53,400 $48,275 $250,000
Thruway Stabilization $152,530 $274,476 $335,385 $274,476 $248,133 $1,285,000
Transit Oriented Development $17,805 $32,040 $39,150 $32,040 $28,965 $150,000
Infrastructure Improvements $13,330 $24,240 $29,900 $24,240 $23,290 $115,000
Southern Tier/Hudson Valley
Farm Initiative $5,935 $10,680 $13,050 $10,680 $9,655 $50,000
Total $361,715 $651,156 $795,935 $651,156 $590,038 $3,050,000
Upstate Revitalization Account ($1.5 Billion)
The Upstate Revitalization Account will support the Upstate New York Economic Revitalization Competition, whereby $500 million grants will be awarded to three upstate regions. Funding will focus on economically distressed upstate metropolitan areas and surrounding regions; and on projects with region wide impacts, that strengthen critical infrastructure, that promote workforce development, and improve quality of life. Seven regions are eligible to compete for one of three $500 million grants: Mid-Hudson, Capital Region, Mohawk Valley, Central New York, North Country, Southern Tier, and Finger Lakes. The Governor announced the competition and process for winning upstate revitalization funds will be guided by a five-member Strategic Plan Review Committee comprised of the following committee members: Bruce Katz, Brookings Institution; Marc Morial, President, National Urban League; Cesar Perales, New York Secretary of State; and Susan Christopherson, Professor and Chair of City and Regional Planning, Cornell University. There is no Article VII language associated with this program. The money is scheduled to be disbursed over a 5 year period as seen in the chart below.
Upstate Revitalization Fund 5 Year Cash Disbursement Chart
Upstate Revitalization Fund $178,050 $320,400 $391,500 $320,400 $289,650 $1,500,000
Miscellaneous ($855 million)
Financial Plan Reserves ($850 million): The Executive Budget sets aside $850 million in settlement funds for potential Financial Plan risks.
Office of Alcoholism and Substance Abuse Services ($5 million): The Budget assumes that $5 million of settlement funds will be used to expand services provided by OASAS to individuals with dependencies on alcohol or drugs, or who have gambling problems.
Adds a new Financial Services Law (FSL) § 208 creating a new assessment(tax) on all health insurers in the individual, small group and large group insurance markets on qualified health plans, to pay for the $69 million costs of the NY State of Health, the State health insurance exchange, operation, for each fiscal year commencing on or after 4/1/15. It also creates record retention requirements, audits and a noncompliance penalty regime. S.2007/A.3007, Part G, Section 1.
Amends Social Services Law (SSL) §367-a(7) to allow the State to negotiate supplemental rebates directly with pharmaceutical manufacturers both inside and outside of Managed Care on covered out-patient drugs with a pre-existing rebate agreement with the federal government. S.2007/A.3007, Part B, Section 1.
Adds Public Health Law (PHL) §274(15) requiring prior authorization for fee-for-service drugs meeting the Clinical Drug Review Program criteria prior to obtaining the Drug Utilization Review Board’s evaluation and recommendation. S.2007/A.3007, Part B, Section 4.
Adds PHL §272(a-1) authorizing the Commissioner to require supplemental rebates from manufacturers of brand name drugs utilized in the Medicaid fee-for-service, subjecting these pharmaceuticals to prior authorization if supplemental rebate is not provided. S.2007/A.3007, Part B, Section 5.
Amends PHL §273 eliminating prescriber prevails provisions for fee-for-service Medicaid drugs not on the preferred drug list. S.2007/A.3007, Part B, Section 6.
Grants authority to the commissioner to reduce or redistribute Medicaid payments in a manner determined in his or her discretion. S.2007/A.3007, Part E, Section 2.
Authorizes the commissioner to establish a reinsurance pool, and to make changes to value based payments or methodologies of reimbursement that are value based as necessary to conform to the terms and conditions of the DSRIP waiver. S.2007/A.3007, Part F, Section 1.
Adds a new section PHL §2801-a(17) authorizes limited services clinics to provide health care services within retail space or a space used by an employer for providing health care services to its employees. The Commissioner of Health shall promulgate regulations for the operation of limited services clinics. S.2007/A.3007, Part H, Section 1.
Amends SSL §367-a increasing the current average wholesale price (AWP) for brand name drugs from AWP minus 17% to AWP minus 24%; and increases DOH brand name drug dispensing fees from $3.50 to $8.00 per prescription. S.2007/A.3007, Part B, Sections 2 and 3.
Adds SSL §364-j(24-a) requiring federally participating section 340B drug providers bill managed care plans at the actual acquisition cost for 340B drugs. S.2007/A.3007, Part B, Section 7.
Adds SSL §368-g codifying the Medicaid State Funds Medical Assistance Cap, limiting the year-to-year growth of DOH’s State Funds Medicaid Assistance spending to no more than the ten year rolling average of the medical component of the Consumer Price Index. S.2007/A.3007, Part B, Section 8.
Repeals PHL§280 to eliminate the New York Prescription Saver Program. S.2007/A.3007, Part B, Section 9.
Amends Chapter 59 of the laws of 2011 to provide increased supplemental Medicaid payments to managed care organizations for professional services provided through State University of New York clinical practice management plans. S.2007/A.3007, Part B, Sections 29 and 30.
Amend SSL §367-a to prevent Medicaid from paying any portion of costs associated with Medicare Part B and Medicare Part C claims when the total payment to the provider would be greater than the Medicaid rate. S.2007/A.3007, Part B, Section 31 and 32.
Permanently extend authorization for bad debt and charity care allowances for certified home health agencies, extend authorization for nursing home reimbursable cash assessment program and extend authorization for "Project Eldercare.” S.2007/A.3007, Part E, Sections 1-5.
Adds a new section 4415 to the public health law authorizing the commissioner to promulgate regulations, directing levels of value based payments. The commissioner is authorized to place conditions on any level of value based payment; requiring or adjusting reserves, as applicable, for managed care organizations licensed under this article and entities participating in value based payment arrangements S.2007/A.3007, Part F, Section 1.
Amends Education Law §6908 to provide an exemption from the Nurse Practice Act for Advanced Home Health Aides (AHHAs), and would specifically identify advanced tasks that could be performed by such individuals in home care and hospice settings with appropriate training and supervision. S.2007/A.3007, Part J.
Amends Public Health Law §2802 to modify the Certificate of Need (CON) approval process for hospitals and D&TCs that provide primary care services by allowing them to construct a facility without a public needs assessment; or in the case of a hospital, the application does not involve a change related to: (i) capacity; (ii) the types of services provided; (iii) major medical equipment; (iv) facility replacement; (v) the geographic location of services. The section also removes the requirement that the Commissioner of Health needs to consider a CON applicant's financial resources and future revenue sources when reviewing both types of applications. S.2007/A.3007, Part K.
Adds Public Health Law §2801 to establish a private equity pilot program, allowing up to five non-publicly traded businesses, affiliated with at least one medical institution or a teaching hospital, to make private capital investments to assist in restructuring healthcare delivery systems; and allow debt financing provided through the Dormitory Authority of the State of New York (DASNY). S.2007/A.3007, Part Q.
Increases the state’s minimum wage to $10.50 per hour and authorizes a New York City minimum wage of $11.50 per hour, effective December 31, 2016 (S.2006/A. 3006, Part N).
Temporarily (through 12/1/16) provides a public or private healthcare professional who volunteers to fight the Ebola virus overseas with a right take to an unpaid leave of absence unless it would impose an undue hardship on the business operations of the healthcare professional’s employer. (S.2006/A.3006, Part O).
Repeals twenty one separate fees assessed by the Department of Labor for a variety of inspection and enforcement activities and permits, including two Professional Employer Organization (PEO) fees covering the initial $1,000 state registration fee and a $250 annual fee for out-of-state PEOs with less than 25 employees in New York State (S.2006/A.3006, Part P).
Creates a commission that would convene every four years to make pay recommendations for the governor, lieutenant governor, attorney general, comptroller and members of the legislature (S.2005/A.3005, Part I).
Brings New York City business taxes into conformance with state-level corporate franchise tax reforms adopted in 2014, effective 1/1/15. In addition, adopts small business tax rate reductions and adopts a $10 million cap on capital based tax liability. S.2009/A.3009, Part QQ
Expands the Section 184 utility gross receipts tax and MTA surcharge to wireless communications providers S.2009/A.3009, Part P.
Extends the brownfield cleanup program’s remediation and redevelopment investment tax credits through 12/31/25; repeals the programs’ environmental insurance and real property tax credits, applicable to projects entering the program on or after 4/1/15; limits the category of sites eligible for the tangible property credit (e.g., projected investigation and cleanup cost must the appraised value of property “absent contamination”); reduces the eligibility period for the tangible property credit from 10 to 5 years. S.2009/A.3009, Part R.
Reduces the corporate franchise tax rate on “small business taxpayers” (e.g., less than 100 employees, less than $1 million in capital) with a business income base under $290,000 to 3.25% in 2016, 2.9% in 2017, and 2.5% in 2018 and thereafter; business with an income base under $390,000 receive these rates for that portion of their income under $290,000. S.2009/A.3009, Part N.
Makes “technical” amendments to 2014 state business tax reforms related to: definition of investment capital; residential loan portfolios; criteria for economic nexus threshold; basis for manufacturers’ rate differential; PNOLCs and NOLs; apportionment rules for mark to market gains; financial service ITC; START-UP NY credits; and mandatory S corporation election. S.2009/A.3009, Part T.
Adopts a job training program tax credit equal to 50% of training costs, up to $10,000 in costs per eligible employee; employer must have 10 net new jobs or a $1 million capital investment; statewide cap of $5 million of such credits to be authorized annually; credits count against the annual Excelsior jobs credit cap. S.2009/A.3009, Part O.
Requires IDA to obtain ESDC approval before providing new or increased state tax abatements; establishes timetable and criteria for approval; authorizes the Department of Taxation and Finance to audit IDA projects; allows state credit claw-backs if project goals are not achieved; disallows IDS benefits to project operators with past due tax liabilities. S.2009/A.3009, Part W.
Modifies the youth works tax credit program; makes $10 million in credits available annually for 2015, 2016 and 2017; limits program to the state’s six highest unemployment areas. S.2009/A.3009, Part M.
Adopts provisions to limit sales tax avoidance; applies sales tax when property brought into NYS by an entity that had not been in business outside NYS for six months; treats a single member LLC and its member as one person for sales tax transactions; requires up-front payment of all sales tax due pursuant to a lease; prevents sales-tax-free transfers of any tangible property between affiliated entities in exchange for stock or partnership interest. S.2009/A.3009, Part Y.
Defines “marketplace providers” (i.e., collects purchase prices and performs other sales function) and requires them to collect sales tax on taxable sales they facilitate. S.2009/A.3009, Part X.
Requires Article 9 taxpayers who pass tax costs onto customers to refund tax payments to customers before seeking a tax refund or credit of such taxes paid to the state. S.2009/A.3009, Part Q.
Expands the Excelsior jobs credit program to include “entertainment companies,” defined as entities engaged in the production or post-production of movies, television shows and commercials, animated films and similar products. S.2009/A.3009, Part K.
While language is not included in the Executive Budget, the Governor will direct $70 million in Excelsior Job Creation credits to be distributed through the Regional Economic Development Council process.
Adopts a number of tax enforcement provisions: makes provisions for warrantless wage garnishments permanent (Part DD); reduces from $10,000 to $5,000 the threshold of past due tax liability that provides the basis for suspension of drivers’ license (Part EE); requires state tax compliance as a condition of excess malpractice coverage (Part FF), receiving state or local grants (Part GG), obtaining a professional or business license (Part JJ), or enter the state workforce (Part KK). All provisions are in S.2009/A.3009.
Authorizes the Tax Commissioner to enter into reciprocal agreements with other states for the collection of fixed and final state tax liabilities. S.2009/A.3009, Part HH.
Make technical amendments to the 2014 Estate Tax reforms. S.2009/A.3009, Part BB.
Makes permanent the limitations on charitable deductions under the PIT for taxpayers with AGI above $1 million. S.2009/A.3009, Part H.
Makes “technical” amendments to the personal income tax; clarifies payment of the MTA mobility tax by non-resident self-employed taxpayers; clarifies the basis for the manufacturer’s real property tax credit under Article 22; modifies the Start Up NY telecomm excise tax credit. S.2009/A.3009, Part I.
Adopts a new non-refundable education tax credit under both the corporate franchise tax and personal income tax; equal to 75% of qualifying contribution, up to $1 million per taxpayers; contributions are to public or non-public schools, school improvement associations, local education funds, and scholarship-granting entities; up to $100 million in credits are allowable each year. S.2010/A.3010, Part E.
Extends the wine tasting sales and use tax exemption to other alcoholic beverages. S.2009/A.3009, Part U.
Adopts a new residential real property tax circuit breaker for households with incomes below $250,000, and a renters’ credit for households with income below $150,000, with a cost of $1.7 billion annually once fully implemented (S.2009/A.3009, Part G); makes numerous changes to the STAR program (S.2009/A.3009, Parts A thru F)
Adopts a new $500 million appropriation for the New NY Broadband initiative to be disbursed out of the Special Infrastructure Account. The program seeks to develop broadband infrastructure to help bring high speed internet access to underserved regions of the State. There is no Article VII language associated with this program. Money is scheduled to be disbursed over a 5 year period; it was announced that broadband providers and communities seeking to access this funding must commit to: providing at least a $1 for $1 financial match; providing internet speeds of at least 100 Mbps; and seeking local input to guide their development by working with the regional development councils to submit a plan to the state. In addition, the program will also explore ways to streamline permitting and processes, embrace dig-once and make-ready policies, and institute uniform state agency procedures that encourage broadband deployment. (S.2004/A.3004).
New NY Broadband Initiative
Broadband Initiative $59,350 $106,800 $130,500 $160,800 $96,550 $500,000
Provides $45 million from various sources for world-wide tourism promotion campaign.
Provides $5 million for competitive local tourism marketing grants through the MarketNY program. (S.2003/A.3003).
Provides $1.1 million to support the “Taste of NY” program. (S.2003/A.3003)
Sections 10-12 amend section 134 of the Workers' Compensation Law removing the Workplace Safety and Loss Certification fees for certification to conduct workplace safety and loss prevention consultations, loss prevention management specialists and per diem DOL charges to clients who receive a workplace safety and loss prevention consultation from DOL staff. S.2006/A.3006, Part P.