New York State Responds to Federal Tax Reform (Part 2) - Decoupling from the Federal Tax Code

We released Part One covering New York State's Reponse to Federal Tax Reform at the end of May.  You can find that post here.  In this post we are digging deeper into New York State's thoughts on decoupling from the Federal Tax Code to protect New York State Taxpayers from Tax increases.    

NY’s income tax system conforms to the federal system in multiple ways. The numerous changes to the federal tax law will have significant flow-through effects on NY. The budget proposes multiple steps to disengage from the federal law. See the following for reforms related to this:

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The (proposed) STATES Act: Federal Cannabis Reform

Earlier today, Senators Elizabeth Warren (D-MA) and Cory Garnder (R-CO) announced their bipartisan bill* titled Strengthening the Tenth Amendment by Entrusting States Act (STATES Act). The following is a preliminary summary of the abstract from the senators' press release and our interpretations of what's to come in the cannabis industry in response to this bill. 

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New York State Responds to Federal Tax Reform - A Two Part Series

In this two part series covering New York States' Response to the Federal Tax Reform, we will address the state's major goals and changes.

New York is the first of many high-tax states to pass changes in laws to combat the impact the TCJA will have on NY taxpayers. Under the Trump administrations tax overhaul, itemized deductions for state and local income, property and sales taxes are limited to $10,000 a year. The proposed tax reform for NY determines that limitations from the TCJA will cost NY taxpayers an additional $14.3 billion a year. Governor Cuomo has pushed through a plan at an attempt to shield NY state residents from this hike through the Executive Budget. Provided below is an outline of proposed tax reform for New York State:

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Taxation of Illegal Businesses

All for-profit businesses are required to pay federal income taxes on their gross income. This is true even if a taxpayer is operating an illegal business. You might be asking yourself, "Why would an illegal business voluntarily pay taxes?" Well... what about the medical and adult recreational use marijuana businesses?

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Will Urban Revitalization Come to a Halt Under the Tax Cuts & Jobs Act?

Do you live in Elmira, NY? What about Rochester? Or Buffalo?  The Tax Cuts & Jobs Act's (TCJA) change to IRC Sec. 118 is likely to have a significant impact on the prevalence of urban revitalization efforts in your communities.

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