Wednesday, January 23, 2013
Tuesday, January 22, 2013
Dramatic Improvements to New York's Historic Tax Credit Proposed By Governor Cuomo
Governor Cuomo has submitted his proposed FY 2013-14 Executive Budget to the Legislature. Therein, the Governor has proposed dramatic enhancements to New York's Historic Rehabilitation Tax Credit. While these changes would make significant improvements to the program, there are features of the changes that need further discussion and examination.
The proposal makes three significant changes:
Developers of historic properties have two issues they may wish to address with the Legislature. First, the Governor's proposal tacitly rejects the increase in the cap on the credit (from $5 million to $12 million). While this will not impact very many projects, it will have a dramatic impact on a few projects across the state that are key to economic redevelopment of distressed urban areas.
Second, the Governor's proposal would delay refundability until 2015. This raises the following questions and comments:
If you have any questions or comments, you can reach me at tim@bhlawpllc.com or at (315) 701-6426.
The proposal makes three significant changes:
- Extender. The proposal would extend New York's current Historic Rehabilitation Tax Credit until 2020 (under current law, the credit would revert to its traditional $100,000 cap at the end of 2014).
- Census Tracts. The proposal would change the criteria for determining census tracts that are eligible for the New York credit (presumably in a fashion better targeted towards blight, unemployment and poverty).
- Refundability. The proposal would make, beginning in 2015, the New York credit fully refundable.
Developers of historic properties have two issues they may wish to address with the Legislature. First, the Governor's proposal tacitly rejects the increase in the cap on the credit (from $5 million to $12 million). While this will not impact very many projects, it will have a dramatic impact on a few projects across the state that are key to economic redevelopment of distressed urban areas.
Second, the Governor's proposal would delay refundability until 2015. This raises the following questions and comments:
- As the credit is currently an unlimited carry-forward item, will refundability be available in 2015 for tax credit claimed in prior tax years? This may include projects placed in service in prior years or in 2013 and 2014.
- With the delay in refundability, and with many projects currently in planning that have an expected placed in service date in 2013 or 2014, should the credit be made refundable beginning with tax years commencing on or after January 1, 2013?
If you have any questions or comments, you can reach me at tim@bhlawpllc.com or at (315) 701-6426.
Thursday, November 1, 2012
Sandy and Insurance Issues: Hurricane deductibles won't apply to Sandy insurance claims - Nov. 1, 2012
Don't be surprised if insurers try to avoid paying claims on Hurricane Sandy damage, especially with homeowners. Be prepared for a fight.
Hurricane deductibles won't apply to Sandy insurance claims - Nov. 1, 2012
Hurricane deductibles won't apply to Sandy insurance claims - Nov. 1, 2012
Wednesday, June 13, 2012
Fixing New York's Residency Rules
Efforts to correct New York's residency rules and reverse the controversial Barker decision continue:
Assembly Bill A6266C
Matter of Barker DTA NO. 822324 (New York State Tax Tribunal)
The bill has advanced in the Senate to third reading.
Assembly Bill A6266C
Matter of Barker DTA NO. 822324 (New York State Tax Tribunal)
The bill has advanced in the Senate to third reading.
Wednesday, May 16, 2012
Sunday, May 13, 2012
Friday, May 11, 2012
Thursday, May 10, 2012
Empire Zone Cases at the Court of Appeals
Paladino vs. Cuomo, the rematch: Election opponents fight in court over Empire Zone money | syracuse.com
"The state’s highest court has been asked to decide whether Gov. Andrew Cuomo’s administration should return about $200,000 a year in Empire Zone tax breaks to his old adversary, Carl Paladino.
***
At stake for Paladino is about $200,000 a year in lost tax breaks, dating back to 2008 and covering the next seven years.
At stake for Paladino is about $200,000 a year in lost tax breaks, dating back to 2008 and covering the next seven years.
But the issue could have bigger consequences.
The case could open the door for other businesses to reclaim tax breaks the state took away when it kicked them out of the program in 2009.
Paladino is one of only two cases, so far, to reach the state’s highest court. The other case includes James Square Associates, the real estate company that owns the James Square Health and Rehabilitation Center in Syracuse. The cases are expected to be heard together in November at the earliest, a court spokesman said.
Paladino was booted because the state decided his tax breaks exceeded his investment.
***
Dozens of other businesses are watching.
Dozens of other businesses are watching.
If Paladino wins, it could mean that the state must repay 2008 tax credits to other businesses that were kicked out yet preserved their rights to claim the credits, said Tim Lynn, an attorney with Bousquet Holstein in Syracuse.
The court could also go beyond the question of that one tax year to address the bigger picture. Was it proper for the state to change the rules for entry eight years after companies had been accepted?"
Sunday, May 6, 2012
Thursday, September 29, 2011
Thursday, September 15, 2011
Friday, August 19, 2011
Foreign Dividends Qualifying for Capital Gains Treatment
The IRS has updated the list of countries with which the U.S. has a tax treaty allowing for the treatment of dividends to be treated as qualifying dividends taxed at capital gains rates. The qualifying countries are: Australia, Austria, Bangladesh, Barbados, Belgium, Canada, China, Cyprus, Czech Republic, Denmark, Egypt, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, India, Indonesia, Ireland, Israel, Italy, Jamaica, Japan, Kazakhstan, Korea, Latvia, Lithuania, Luxembourg, Mexico, Morocco, Netherlands, New Zealand, Norway, Pakistan, Philippines, Poland, Portugal, Romania, Russian Federation, Slovak Republic, Slovenia, South Africa, Spain, Sri Lanka, Sweden, Switzerland, Thailand, Trinidad and Tobago, Tunisia, Turkey, Ukraine, United Kingdom and Venezuela. IRS Notice 2003-69
Thursday, July 28, 2011
Tuesday, June 21, 2011
Monday, June 20, 2011
Symphony Syracuse
Below is a link to the homepage for Symphony Syracuse, a new not-for-profit created to provide a vehicle for continued symphony presentations by the musicians formerly employed by the defunct Syracuse Symphony Orchestra. The success of this endeavor is key to the arts and economic development in Central New York and the support of all in Central New York is needed to ensure its success.
Thursday, June 16, 2011
Wednesday, June 15, 2011
Economic Transformation and Facility Redevelopment Program
As part of the FY2013 New York State budget, the Economic Transformation and Facility Redevelopment Program ("ETFR Program") has been created. The ETFR Program is intended to aid communities affected by the upcoming round of prison and juvenile justice facility closures. This program may provide a useful economic development tool for local communities negatively impacted by facility closures.
The benefits provided to businesses under the ETFR Program are refundable tax credits (including both capital investment, job creation and property tax-relief components) and a refund of certain sales taxes paid on improvements to facilities located at the site of a closed facility or surrounding areas. If used in conjunction with an adaptive reuse plan adopted for the closed facility, these tax credits could be an important incentive to replace jobs lost due to the closures.
The information in this article is divided into the following parts:
Part 1 - Designation of Economic Transformation Areas
Part 2 - Qualification and Certification of Businesses
Part 3 - Tax Credits
Part 4 - Sales Tax Refund
Part 5 - Property Tax Exemption
Monday, June 13, 2011
New York Adds To Requirements for Sales Tax Withholding and Reporting for Prior Violators
In the New York FY2013 budget, changes were made to the Tax Law that added potential new obligations on persons who have failed to (1) collect sales tax, (2) remit collected sales tax, or (3) file timely sales tax returns.
Pursuant to these new provisions, the Department of Taxation and Finance may require collected sales tax to be deposited in a segregated bank account on a weekly basis with the Department authorized to debit such account, and, in the case of quarterly filers, the Department may require monthly sales tax returns to be filed.
Pursuant to these new provisions, the Department of Taxation and Finance may require collected sales tax to be deposited in a segregated bank account on a weekly basis with the Department authorized to debit such account, and, in the case of quarterly filers, the Department may require monthly sales tax returns to be filed.
Friday, June 10, 2011
NYSERDA seeks retail developer for Malta tech park
A new effort at retail development at NYSERDA's STEP in Saratoga.
Wednesday, June 8, 2011
Court rules against Seneca Nation (2011-06-08)
A loss for the Seneca Nation on cigarette taxes.
Tuesday, June 7, 2011
The Barker Decision – A Threat to New York's Tourism Industry and Workforce - UPDATED
In the Matter of the Petition of John J. and Laura Barker (the "Barker Case"), New York Tax Tribunal was presented with a Connecticut resident (a family of five living in New Canaan), Mr. Barker working full-time in New York, Mrs. Barker a homemaker in Connecticut, who happened to own a seldom used, 1,100 sf vacation property on Long Island. The vacation property was used only a few days per year by the Barkers and was not used by Mr. Barker in connection with his employment in New York New York , which, combined with Mr. Barker's full-time employment in New York , is sufficient to establish the Barkers as New York
This decision marks a significant extension of the artifice of New York
By reason of this decision, the many Connecticut, New Jersey and Pennsylvania residents commuting to work in New York will find themselves taxed as New York residents solely by reason of owning or controlling vacation property in New York – even if such property cannot be used as a residence associated with the person's employment. For example, a New Jersey couple, one spouse employed in New York City , the other spouse employed in New Jersey , owning a vacation home in the Finger Lakes or Adirondacks, would be treated as New York
This decision will impact the well-being of New York Adirondacks . The additional tax burden (on top of already excessive real property taxation) will result in owners and buyers departing the market, further depressing an already challenged tourism industry.
A bill has been introduced in the New York Assembly and Senate (A6266 and S3998 - http://assembly.state.ny.us/leg/?default_fld=&bn=A06266&term=2011&Summary=Y&Memo=Y) that would exempt an abode that is more than 50 miles from the taxpayer's place of employment in New York and the taxpayers spends no more than 90 days at the abode during the taxable year. This change is sensible and should be supported by all tourism organizations across the state.
The bill appears to be moving quickly towards passage in the Senate -- it advanced to third reading today, June 7, 2011. It is not clear where it is heading in the Assembly.
The bill appears to be moving quickly towards passage in the Senate -- it advanced to third reading today, June 7, 2011. It is not clear where it is heading in the Assembly.
Wednesday, June 1, 2011
Wednesday, May 18, 2011
Some thoughts on New York's assessor and property assessment problems
Much has been made lately, thanks to the efforts of the Comptroller, of the number of property tax assessing units in New York State. While having attention to this issue is a positive development, the focus is on the wrong problem. The problem with property tax assessments in New York is not with the number of assessing units. There are two core problems with our system: (1) there is no requirement that property be assessed at full value; and (2) there are no consistent rules and standards used by all assessors statewide.
Until New York decides to adopt an assessing system that is fair and applied equally to all property owners, it does not matter whether there is one assessor or one thousand. With the elimination or limitation of many of the economic development incentives relating to real property taxes, New York's assessment system will continue to be a drag on economic development and job creation in the state.
Until New York decides to adopt an assessing system that is fair and applied equally to all property owners, it does not matter whether there is one assessor or one thousand. With the elimination or limitation of many of the economic development incentives relating to real property taxes, New York's assessment system will continue to be a drag on economic development and job creation in the state.
Tuesday, May 17, 2011
NYS Business Council Tax Conference
Real property tax reform panel from DTF.
Interesting that local property taxes generated more revenues than the personal income tax in FY2009.
NYS Business Council Tax Conference
Interesting keynote address from the new commissioner of DTF, Thomas Mattox. He touched on some broad stroke issues the Governor is pushing, the operational changes going on in the Department, and real property tax reform.
NYS Business Council Tax Conference
Nonie Manion from DTF presented on the Department's efforts to improve the audit system. Beginning with the information requests, the Department is trying to implement a system that will better focus information demands.
The Department will be using work plans that will track open issues and ensure consistency within an industry. The work plans will try to impose deadlines for resolving each open issue.
Expedited audits - by agreement between taxpayer and Department. Implements a plan with deadlines for production and response.
NYS Business Council Tax Conference
Robert Megna started the conference with a discussion of the budget. He noted there were no changes to the Tax Law in the budget.
On the budget, Mr Megna noted that 85% of the budget gap was closed through spending cuts.
Division of Budget estimates Wall Street bonuses will hit 2008 highs in 2012, almost back to those levels in 2011.
On a 5 year outlook, the 2012 budget reduced the gap from $60b to $10b.
Mr. Megna focussed much of his comments on structural curbs instituted for school aid and Medicaid.
On job creation, he discussed the impact of the lapse of the income tax surcharge. For the future, the property tax cap will be an important assistance for business. Incentives will come in future years through the regional councils. He utilized the words "targeted incentives"
On Art 9-A and 32 reform - Mr. Megna had no prediction on whether this would show up in next year's budget.
Monday, April 11, 2011
Tuesday, April 5, 2011
Friday, January 21, 2011
Municipal Bond Market - Shrinking Capital
With money flowing out of the municipal bond market rapidly and with (overstated) warnings of municipal and state defaults, will there be money available for municipalities and projects in the coming year?
http://www.bondbuyer.com/issues/120_11/-1022195-1.html?ET=bondbuyer:e2757:2057592a:&st=email&utm_source=editorial&utm_medium=email&utm_campaign=BB_Daily_Briefing_011411
http://www.bondbuyer.com/issues/120_11/-1022195-1.html?ET=bondbuyer:e2757:2057592a:&st=email&utm_source=editorial&utm_medium=email&utm_campaign=BB_Daily_Briefing_011411
Thursday, January 13, 2011
Waiting on a $15M promise
Too much attention paid to "who" and not enough to getting the project done. Let the local people that brought this from contaminated vacant land to success story finish the job. Luther Forest Technology Campus is more likely to be a success without threats and litigation.
Waiting on a $15M promise
Waiting on a $15M promise
April 18th in New York -
New York has followed the feds and announced that 2010 personal income tax returns/extensions are due April 18, 2011. Returns on extension will be due October 17, 2011.
Information Reporting for Rental Real Estate Activities – Individuals Engaged in Passive Activities
The Small Business Jobs Act of 2010 added new reporting requirements relating to rental property expenses. Pursuant to Section 6041(a) of the Internal Revenue Code, all persons engaged in a trade or business are required to report certain payments made of $600 or more, providing information regarding the recipient of such payment.
Pursuant to new Section 6041(h), a person receiving rental income from real estate is deemed to be engaged in a trade or business for purposes of Section 6041(a). The reporting burden is therefore imposed upon individuals engaged in passive real estate rental activities. This new provision will impose the reporting obligation upon significant numbers of individuals not currently subject to the requirements. Persons engaged in real estate rental activities should consult with their tax advisers to ensure compliance.
Wednesday, January 12, 2011
NY hopes incentive will help blow the whistle on tax cheats
NY hopes incentive will help blow the whistle on tax cheats
http://www.syracuse.com/news/index.ssf/2011/01/ny_hopes_new_law_wets_your_whi.html
http://www.syracuse.com/news/index.ssf/2011/01/ny_hopes_new_law_wets_your_whi.html
NY Department of Taxation and Finance Issues Guidance With Respect to Sales Tax Owed On Aircraft Use
Effective June 1, 2009, New York State limited an exemption from sales tax affecting non-resident taxpayers and use of aircraft in the situation where the non-resident taxpayer is related to a New York resident. Guidance issued determines that, with respect to an aircraft acquired prior to the effective date of the new law (June 1, 2009), the new law will not apply and the imposition of sales tax will be determined based upon prior law.
TSB-A-11(1)S
TSB-A-11(1)S
Legal Alert: 2009 Business Annual Reports
Empire Zone certified businesses should have received, or will be receiving in the near future, their 2009 Business Annual Report (“BAR”) and a supplemental form for certain Zone locations. For most Zones, the due date for filing the BAR is December 17, 2010. However, a Zone may choose an earlier date to accommodate their processing time, so be sure to review the letter from your local Zone to confirm when your BAR is due.
For assistance, please contact one of our Economic Development Practice Group representatives: Tim Lynn (tim@gslaw.com, 315.701.6426), Phil Bousquet (phil@gslaw.com, 315.701.6309), Katie Centolella (katie@gslaw.com, 315.701.6468), Marj Pepe (mpepe@gslaw.com, 315.701.6423).
For assistance, please contact one of our Economic Development Practice Group representatives: Tim Lynn (tim@gslaw.com, 315.701.6426), Phil Bousquet (phil@gslaw.com, 315.701.6309), Katie Centolella (katie@gslaw.com, 315.701.6468), Marj Pepe (mpepe@gslaw.com, 315.701.6423).
NYS Issues Guidance on Historic Rehabilitation Credit
On December 15, 2010, the New York State Department of Taxation and Finance issued a guidance memorandum regarding treatment of the enhanced historic rehabilitation credit available to taxpayers for tax years beginning between January 1, 2010, and December 31, 2014, including:
• treatment of the credit with respect to banks and insurance companies;
• treatment of the credit allocated through partnerships to individuals;
• credit limitations for banks, insurance companies and corporations taxed under Article 9-A;
• credit for tax years beginning on or after January 1, 2015.
For further information, please contact:
Tim Lynn (tim@gslaw.com, or call 315.701.6426)
or Katie Centolella (katie@gslaw.com, or call 315.701.6468).
• treatment of the credit with respect to banks and insurance companies;
• treatment of the credit allocated through partnerships to individuals;
• credit limitations for banks, insurance companies and corporations taxed under Article 9-A;
• credit for tax years beginning on or after January 1, 2015.
For further information, please contact:
Tim Lynn (tim@gslaw.com, or call 315.701.6426)
or Katie Centolella (katie@gslaw.com, or call 315.701.6468).
Monday, May 10, 2010
Governor’s Proposed 50% Deferral of Empire Zone Tax Credits
Earlier this week the Governor released a “fact sheet” for a proposal to generate
$620M in “additional savings actions” (gap fillers) designed to supplement the Governor’s
Executive Budget. One of the proposed “gap fillers” would defer 50% of businessrelated
tax credits for three tax years, 2010, 2011, and 2012. The proposal would affect
credits that “would otherwise be used or refunded” in those years, which would include
credits earned in prior years and carried forward into tax years 2010-2012, as well as
credits generated (earned) in those tax years. In all, thirty-three tax credits would be
subject to this provision. It is important to note that this is a proposed bill and has not
been acted upon by the legislature.
The tax credits available under the Empire Zones Program are included in the list of
deferred credits (Tax Reduction Credit, Real Property Tax Credit, Empire Zone Investment
Tax Credit, the Empire Zone Employment Incentive Credit and the Empire Zone
Wage Tax Credit). With respect to these credits, the deferred portion of the credits
would be allowed (i.e., could be claimed) in taxable years beginning in 2013 and ending
with taxable years beginning in 2015.
Taxpayers would be required to make quarterly estimated tax payments
(beginning June 15th for most taxpayers) as if the credit deferral had been in
effect for the taxpayer’s entire taxable year. Therefore, taxpayers claiming Empire
Zone tax credits should closely monitor this proposed bill to be prepared for making
such estimated payments.
In its current form, the proposal is not detailed in its treatment of the various credits,
how it will be applied to various types of taxpayers, or when the deferred credits could
be claimed (leaving much of the detail to regulatory action by the Commissioner of Taxation
& Finance). It would be advisable for Empire Zone Enterprises to track any progress
the bill makes in the legislature.
This alert was prepared by our Economic Development Incentives Practice Group.
Please contact Tim Lynn at (315) 701-6426 or tim@gslaw.com if you would like further
information or if you have any questions regarding this Alert.
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