Wednesday, December 11, 2013
 

 

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State Tax Relief Commission issues final report

ALBANY – The state Tax Relief Commission issued its report and recommendations on ways to lower taxes across a wide spectrum.

Governor Andrew Cuomo, who formed the commission, accepted its recommendations on Tuesday.  The reforms include property tax relief for homeowners and businesses, incentives to local governments to reduce the cost of operations, lowering the corporate tax rate, reducing the tax rate for upstate manufacturers and updating the estate tax to bring New York in line with other states.

Of the $49 billion in real property taxes levied in 2012, $15 billion, or 30.8 percent was paid by commercial/industrial parcels. Property taxes represent the largest tax businesses face in the State, more than three times what is paid under the corporate franchise tax.  To help manufacturers survive and to attract new manufacturers to the State, the  Commission is recommending a corporate and income tax credit equal to 20 percent of the amount  of real property taxes paid by this industry, but would like to see the credit increased for upstate manufacturers if possible.

The Commission recognizes more needs to be done to spur economic growth statewide. This requires lower rates and a simplified tax structure. We propose additional tax relief for businesses in New York, including the reform and simplification of the State’s primary corporate income taxes coupled with a reduction in the corporate income tax rate to 6.5 percent, the lowest corporate rate since 1968

The Commission recommends:

  • Reduce property tax on manufacturers
  • Lower corporate tax rates and simplify structure
  • Reduce corporate tax rate for upstate manufacturers
  • Accelerate phase out of utility surcharge
  • Increase estate tax exemption threshold and lower rate
  • Eliminate nuisance taxes