New York Tax Changes - October 2024
Week Of 10.07.2024
The New York Department of Taxation and Finance has updated its web page with information about the upcoming March 2025 changes to withholding and unemployment reporting.
The updates include information about online services web file and web upload, the federal/state employment taxes (FSET) program, changes to forms, publications, and notices, and information about amending returns.
Week Of 09.30.2024
- Representation: The list of individuals who can represent taxpayers before the Division of Tax Appeals has been expanded to include any person of the taxpayer's choosing (at least 18 years old) and a tax return preparer.
- Volunteer Exemption: Municipalities in New York can now extend the property tax exemption for volunteer firefighters and ambulance workers to those who provide services to neighboring municipalities.
- Mortgage Recording Tax:
- Otsego County is authorized to impose an additional mortgage recording tax of 25 cents for each $100 of debt until December 31, 2025.
- Chenango County is also authorized to impose the same additional mortgage recording tax.
- Property Tax Installments: The due dates for property tax installments must now be reflected in the statement of taxes for taxpayers who choose to pay in installments.
- Hotel/Motel Tax:
- Columbia County is authorized to impose a hotel/motel tax of up to 4% of the daily rental rate.
- Binghamton City is authorized to impose a hotel/motel tax of up to 5% of the daily rental rate.
- Clarkstown Town is authorized to impose a hotel/motel tax of up to 5% of the daily rental rate.
- Cortlandt Town is authorized to impose a hotel/motel tax of up to 3% of the daily rental rate.
These changes are effective as of September 27, 2024.
New York Franchise Tax:
- IBM and Disney have filed petitions with the U.S. Supreme Court challenging a New York Court of Appeals decision. The court ruled that foreign affiliate royalty payments must be added back to a taxpayer's entire net income under former N.Y. Tax Law § 208(9)(o). The companies argue that this violates the dormant commerce clause.
New York Property Tax:
- Industrial and Commercial Abatement Program (ICAP): The deadline for receiving a tax abatement under ICAP has been extended to April 1, 2029. This applies to taxpayers who have been granted a building permit or have commenced construction.
Mortgage Tax:
- Essex County's authorization to impose an additional mortgage recording tax has been extended for another three years, until December 1, 2027.
Week Of 10.07.2024
New York Franchise Tax—New York updates 2025 withholding reporting.
The Department of Taxation and Finance has updated its web page providing more information about the upcoming March 2025 changes to withholding and unemployment reporting. The updates include information about online services web file and web upload, and the federal/state employment taxes (FSET) program. The web page also identifies the changes to forms, publications, and notices, and provides information about amending returns. (Significant Changes Coming to Withholding Tax and Wage Reporting, N.Y. Department of Taxation and Finance, 10/08/2024.)
New York Personal Income Tax—New York updates 2025 withholding reporting.
The Department of Taxation and Finance has updated its web page providing more information about the upcoming March 2025 changes to withholding and unemployment reporting. The updates include information about online services web file and web upload, and the federal/state employment taxes (FSET) program. The web page also identifies the changes to forms, publications, and notices, and provides information about amending returns. (Significant Changes Coming to Withholding Tax and Wage Reporting, N.Y. Department of Taxation and Finance, 10/08/2024.)
Week Of 09.30.2024
New York General Administrative Provisions—New York expands individuals who can represent a taxpayer.
L. 2024, A10222 (c. 366), effective 09/27/2024, expands the list of individuals that can appear before the Division of Tax Appeals on behalf of a taxpayer to include any person of a taxpayer's choosing (who is at least 18 years old) and a tax return preparer.
New York Property Tax—New York authorizes municipalities to exempt certain volunteers from tax.
L. 2024, S2862 (c. 372), effective 09/27/2024, authorizes a city, village, town, county, or school district, to extend the property tax exemption (currently available to volunteer firefighter or ambulance workers residing in the municipality) to volunteer firefighter and ambulance workers that provide volunteer services to a neighboring city, village, town, county, or school district.
New York Property Tax—New York county of Otsego authorized to impose an additional mortgage recording tax.
L. 2024, S4289 (c. 374), effective 09/27/2024, authorizes Otsego County to impose an additional mortgage recording tax of 25¢ for each $100 of debt until December 31, 2025.
New York Property Tax—New York requires publication of installment payment due dates.
L. 2024, S3604 (c. 373), effective 09/27/2024, requires the due dates be reflected in the statement of taxes for those taxpayers electing to pay their property taxes in installments.
New York Recordation Tax—New York county of Chenango authorized to impose an additional mortgage recording tax.
L. 2024, S5780 (c. 376), effective 09/27/2024, authorizes Chenango County to impose an additional mortgage recording tax of 25¢ for each $100 of debt until December 31, 2025.
New York Sales & Use Taxes—New York county of Columbia authorized to impose hotel/motel tax.
L. 2024, A10056 (c. 363), effective 09/27/2024, authorizes the county of Columbia to impose a hotel/motel tax of up to 4% of the daily rental rate for each room.
New York Sales & Use Taxes—New York city of Binghamton authorized to impose hotel/motel tax.
L. 2024, A10271 (c. 367), effective 09/27/2024, authorizes the city of Binghamton to impose a hotel/motel tax of up to 5% of the daily rental rate for each room.
New York Sales & Use Taxes—New York town of Clarkstown authorized to impose hotel/motel tax.
L. 2024, A8391 (c. 350), effective 09/27/2024, authorizes the town of Clarkstown to impose a hotel/motel tax of up to 5% of the daily rental rate for each room.
New York Sales & Use Taxes—New York town of Cortlandt authorized to impose hotel/motel tax.
L. 2024, A8330 (c. 349), effective 09/27/2024, authorizes the town of Cortlandt to impose a hotel/motel tax of up to 3% of the daily rental rate for each room.
New York Sales & Use Taxes—New York town of Poughkeepsie authorized to impose hotel/motel tax.
L. 2024, A9705 (c. 360), effective 09/27/2024, authorizes the town of Clarkstown Poughkeepsie to impose a hotel/motel tax of up to 5% of the daily rental rate for each room.
New York Franchise Tax—New York taxpayers file petitions of certiorari with U.S. Supreme Court.
Two New York taxpayers have each filed a petition of certiorari with the U.S. Supreme Court seeking to overturn the New York Court of Appeals determination that the taxpayers' foreign affiliate royalty payments were required to be added back to the taxpayers' entire net income under former N.Y. Tax Law § 208(9)(o). In its decision, the New York Court of Appeals concluded that the plain language of the former law permitted a royalty income deduction "only if that money had already been included on a New York tax return through an add back to the subsidiary’s income." The court rejected the claim that the construction of the law violates the dormant commerce clause finding that there is no discrimination and no violation of the internal consistency test. (International Business Machines Corporation & Combined Affiliates v. N.Y. Tax Appeals Tribunal, et al., U.S. S.Ct., Dkt. No. 24-332, cert. filed 09/19/2024; The Walt Disney Company and Consolidated Subsidiaries v. N.Y Tax Appeals Tribunal, et al., U.S. S.Ct., Dkt. No. 24-333, cert. filed 09/20/2024.)
New York Property Tax—Tax abatement application deadlines extended for certain New York City properties.
L. 2024, S9822 (c. 332), effective 09/20/2024, extends the application deadline to April 1, 2029, for when a taxpayer must have been granted a building permit, or if a permit is not required, must have commenced construction to receive a tax abatement under the Industrial and Commercial Abatement Program (ICAP).
New York Property Tax—New York extends Essex County's additional mortgage tax authorization.
L. 2024, S8583 (c. 327), effective 09/20/2024, extends Essex County's authorization to impose an additional mortgage recording tax for another three years to December 1, 2027.
Week Of 10.07.2024
New York Franchise Tax—New York updates 2025 withholding reporting.
The Department of Taxation and Finance has updated its web page providing more information about the upcoming March 2025 changes to withholding and unemployment reporting. The updates include information about online services web file and web upload, and the federal/state employment taxes (FSET) program. The web page also identifies the changes to forms, publications, and notices, and provides information about amending returns. (Significant Changes Coming to Withholding Tax and Wage Reporting, N.Y. Department of Taxation and Finance, 10/08/2024.)
New York Personal Income Tax—New York updates 2025 withholding reporting.
The Department of Taxation and Finance has updated its web page providing more information about the upcoming March 2025 changes to withholding and unemployment reporting. The updates include information about online services web file and web upload, and the federal/state employment taxes (FSET) program. The web page also identifies the changes to forms, publications, and notices, and provides information about amending returns. (Significant Changes Coming to Withholding Tax and Wage Reporting, N.Y. Department of Taxation and Finance, 10/08/2024.)
Week Of 09.30.2024
New York General Administrative Provisions—New York expands individuals who can represent a taxpayer.
L. 2024, A10222 (c. 366), effective 09/27/2024, expands the list of individuals that can appear before the Division of Tax Appeals on behalf of a taxpayer to include any person of a taxpayer's choosing (who is at least 18 years old) and a tax return preparer.
New York Property Tax—New York authorizes municipalities to exempt certain volunteers from tax.
L. 2024, S2862 (c. 372), effective 09/27/2024, authorizes a city, village, town, county, or school district, to extend the property tax exemption (currently available to volunteer firefighter or ambulance workers residing in the municipality) to volunteer firefighter and ambulance workers that provide volunteer services to a neighboring city, village, town, county, or school district.
New York Property Tax—New York county of Otsego authorized to impose an additional mortgage recording tax.
L. 2024, S4289 (c. 374), effective 09/27/2024, authorizes Otsego County to impose an additional mortgage recording tax of 25¢ for each $100 of debt until December 31, 2025.
New York Property Tax—New York requires publication of installment payment due dates.
L. 2024, S3604 (c. 373), effective 09/27/2024, requires the due dates be reflected in the statement of taxes for those taxpayers electing to pay their property taxes in installments.
New York Recordation Tax—New York county of Chenango authorized to impose an additional mortgage recording tax.
L. 2024, S5780 (c. 376), effective 09/27/2024, authorizes Chenango County to impose an additional mortgage recording tax of 25¢ for each $100 of debt until December 31, 2025.
New York Sales & Use Taxes—New York county of Columbia authorized to impose hotel/motel tax.
L. 2024, A10056 (c. 363), effective 09/27/2024, authorizes the county of Columbia to impose a hotel/motel tax of up to 4% of the daily rental rate for each room.
New York Sales & Use Taxes—New York city of Binghamton authorized to impose hotel/motel tax.
L. 2024, A10271 (c. 367), effective 09/27/2024, authorizes the city of Binghamton to impose a hotel/motel tax of up to 5% of the daily rental rate for each room.
New York Sales & Use Taxes—New York town of Clarkstown authorized to impose hotel/motel tax.
L. 2024, A8391 (c. 350), effective 09/27/2024, authorizes the town of Clarkstown to impose a hotel/motel tax of up to 5% of the daily rental rate for each room.
New York Sales & Use Taxes—New York town of Cortlandt authorized to impose hotel/motel tax.
L. 2024, A8330 (c. 349), effective 09/27/2024, authorizes the town of Cortlandt to impose a hotel/motel tax of up to 3% of the daily rental rate for each room.
New York Sales & Use Taxes—New York town of Poughkeepsie authorized to impose hotel/motel tax.
L. 2024, A9705 (c. 360), effective 09/27/2024, authorizes the town of Clarkstown Poughkeepsie to impose a hotel/motel tax of up to 5% of the daily rental rate for each room.
New York Franchise Tax—New York taxpayers file petitions of certiorari with U.S. Supreme Court.
Two New York taxpayers have each filed a petition of certiorari with the U.S. Supreme Court seeking to overturn the New York Court of Appeals determination that the taxpayers' foreign affiliate royalty payments were required to be added back to the taxpayers' entire net income under former N.Y. Tax Law § 208(9)(o). In its decision, the New York Court of Appeals concluded that the plain language of the former law permitted a royalty income deduction "only if that money had already been included on a New York tax return through an add back to the subsidiary’s income." The court rejected the claim that the construction of the law violates the dormant commerce clause finding that there is no discrimination and no violation of the internal consistency test. (International Business Machines Corporation & Combined Affiliates v. N.Y. Tax Appeals Tribunal, et al., U.S. S.Ct., Dkt. No. 24-332, cert. filed 09/19/2024; The Walt Disney Company and Consolidated Subsidiaries v. N.Y Tax Appeals Tribunal, et al., U.S. S.Ct., Dkt. No. 24-333, cert. filed 09/20/2024.)
New York Property Tax—Tax abatement application deadlines extended for certain New York City properties.
L. 2024, S9822 (c. 332), effective 09/20/2024, extends the application deadline to April 1, 2029, for when a taxpayer must have been granted a building permit, or if a permit is not required, must have commenced construction to receive a tax abatement under the Industrial and Commercial Abatement Program (ICAP).
New York Property Tax—New York extends Essex County's additional mortgage tax authorization.
L. 2024, S8583 (c. 327), effective 09/20/2024, extends Essex County's authorization to impose an additional mortgage recording tax for another three years to December 1, 2027.