New York - Proposed bank and corporate franchise tax reform 

March 6:  Since originally proposed, changes have been made to the legislative provisions. Read TaxNewsFlash-United States (March 2014)

February 4:  Governor Andrew Cuomo—as announced in the 2014-15 New York State executive budget—proposes to reform New York’s corporate tax regime by repealing the Article 32 Franchise Tax on Banking Corporations and substantially revising the Article 9-A Franchise Tax on General Business Corporations.

Under the proposed regime, banks would be subject to the revised Article 9-A.

The corporate tax changes would be effective for tax years beginning on or after January 1, 2015.

The proposed legislation would not apply for New York City corporate and banking tax purposes unless and until New York City enacts its own conforming legislation.

Read a February 2014 report [PDF 51 KB] prepared by KPMG LLP.

The KPMG discussion of the proposed legislation addresses the proposed:

  • Expanded nexus standards
  • Tax rate changes
  • Classes of income and tax base changes
  • Apportionment provisions for general corporations
  • Receipts from financial transactions
  • Combined reporting
  • Metropolitan Transportation Business Tax Surcharge
  • Tax credits

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