New York - Corporate tax, banking tax reform bills enacted 

April 1: New York Governor Andrew Cuomo late last evening, March 31, 2014, signed
A. 8559-D and S. 6359-D into law. These bills:
  • Enact the governor’s comprehensive tax reform plan incorporated in the Executive Budget
  • Provide an estimated $2 billion of income, estate, and property tax relief to affected New York residents and businesses
  • Repeal Article 32 (Bank Franchise) effective for tax years beginning on or after January 1, 2015

Under the new law, banks and general corporations will be subject to a substantially revised Article 9-A franchise tax.

Substantive changes to the 9-A franchise tax include, but are not limited to, new economic nexus standards, reduced corporate franchise tax rates for general corporations and qualified manufacturers, revised apportionment provisions, and new rules for when unitary combined reporting is required.

KPMG observation

These newly enacted changes do not apply for New York City corporate and banking tax purposes unless and until New York City enacts conforming legislation.

KPMG State and Local Tax professionals will soon provide a report describing the new legislation in more detail.

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