At the direction of Governor Cuomo, the New York State Department of Taxation and Finance today released a preliminary report to outline options for state tax reform in response to federal tax legislation. The report outlines a series of proposals for consideration and comment, including the potential to create additional opportunities for charitable contributions to New York State that would be deductible from federal adjusted gross income. The report also outlines potential proposals for maintaining deductibility by adopting an employer compensation expense tax, including the possibility of a voluntary employer opt-in system. Finally, the report discusses the option of add tax deductibility through a new statewide unincorporated business tax, among other options.
As New York launches this massive and complicated undertaking, the state will engage tax experts, both houses of the legislature, employers, and other stakeholders in a thorough and collaborative process to produce a proposal that promotes fairness for New York's taxpayers and safeguards the competitiveness of New York's economy.
View the report here.