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If you make over half a million dollars a year, you're in for a tax break.
A personal income tax reduction that will save rich New York taxpayers almost $1 billion, an expansion and reform of the state's lobbying laws, and a measure to bring New York State into compliance with the federal Help America Vote Act (HAVA), highlight the list of new state laws that will take effect on Jan. 1, 2006.
A tax reduction that will save already wealthy New York taxpayers nearly $1 billion will go into effect on January 1, 2006. The tax rate for taxpayers with incomes between $150,000 and $500,000 will be decreased from 7.25% to 6.85%. Similarly, the tax rate for taxpayers with incomes over $500,000 will be decreased from 7.7% to 6.85%. The reduction is the last portion of a three-year a result of the repeal of the temporary personal income tax surcharge that was imposed in 2003.
"This final phase-out keeps the Senate's commitment that this tax surcharge would be eliminated and we will not support any proposal to extend it," Senate Majority Leader Joseph L. Bruno said. "The initial surcharge was put in place to address a $12 billion deficit in the aftermath of September 11th and a national recession and on January 1st, the tax rates will revert to their original levels".
A major tax reform that will help New York businesses and help to prevent the outsourcing of jobs, will take effect on Jan. 1, 2006. The single sales factor is expected to save New York businesses $26 million in the coming year and $130 million when fully implemented.
Presently, a corporations taxable State income is based on sales and New York State payrolls and property. Under current law, taxpayers that increase payroll or capital investments in New York incur a higher State income tax liability. As a result, the State's tax policy encourages job outsourcing, especially in the crucial manufacturing, broadcasting and securities industries.
"This year the Senate fought for a single sales factor to allow New York State firms filing under the corporate franchise tax to allocate income based on sales alone to eliminate any tax advantages that would come from outsourcing jobs from New York," Bruno said. "This tax reduction will protect the jobs of many New Yorkers."
Under the current law, corporate taxpayers must apportion taxable income and capital to New York State based on a allocation percentage that gives a 50% weight to sales, and 25% each to the level of New York State payrolls and property. The singles sales allocation formula legislation will phased in over a three year period. The first phase requires firms to use an allocation formula applying a 60% weight to sales. This will increase to 80% in 2007 and 100% in 2008.
The fourth round of the New York State Certified Capital Company (CAPCO) program will begin to provide an additional $6 million a year for New York State Life Insurance firms that make investments in technology companies. Thirty-three percent of these funds must be placed in biotechnology and other cutting edge high technology businesses beginning with taxable years starting Jan. 1, 2006.
Also beginning Jan. 1, a new law (Chapter 1, S.5873) will go into effect that enacts comprehensive reforms to more effectively regulate the lobbying of government entities. This new law represents the most sweeping reform and overhaul of the State's lobbying law in generations.
"We're finally shining a light on the practice of government contract lobbying. This new law will provide a great deal of disclosure and transparency," said Sen. George Winner. "These are positive additions to the government reform scorecard."
The law curtails lobbying for government contracts, discloses more information about lobbying, provides new penalties for violations of the lobbying law, and establishes an Advisory Council on Municipal Lobbying to advise the state lobby commission on the implementation of the new procurement lobbying provisions.
Bruno's son, Ken recently left the lobbying field to open a private law practice.
Bruno's lobbying activity had come under attack in recent months due to his father's position in the Legislature. Both claimed there was no conflict of interest.
A new law will go into effect on New Year's Day to bring New York into compliance with the Help America Vote Act (HAVA). The law will require voters to provide their driver's license number, or the last four digits of their social security number when registering to vote. Also, first-time voters who registered by mail will have to produce evidence of their identity before voting.
"This new law represents the first major overhaul of New York State's election process in over 50 years," said Sen. John Flanagan, Chair of the Senate Elections Committee. "The enactment of this law is an important step for New York in meeting the federal mandates and ensuring appropriate reform in our election process."
A new law will take effect that will restrict the operation of personal watercraft (PWC) to persons over the age of fourteen who hold a boating safety certificate or are accompanied by a person over the age of eighteen who holds a boating safety certificate.
Today's PWCs can be as long as 12 feet in length, and can be capable of speeds of up to 60 mph. In many cases, youngsters lack the physical height and strength needed to properly handle a PWC. By increasing the minimum age of operation of a PWC, the bill is intended to give children the time to mature both physically and mentally before safely operating a PWC, as well as they are educated on the rules and regulations of the state's waterways. 12-30-05
© 2005 North
Country Gazette
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