Bills containing The Business Council's top tax-reform priorities have been introduced in both the Assembly and the Senate.
Legislation proposed by Sen. James Alesi (R-Rochester) and Assemblyman Robin Schimminger (D-Erie County) includes a series of proposals linked by the common purpose of encouraging and rewarding business investments in New York State. These include:
- Adopting
the single-sales factor for corporate taxes to reward
job creation in New York State.
Corporate income taxes in New York now reflect three factors: in-state sales, payroll, and property. By basing those taxes solely on in-state sales, New York can encourage companies to create jobs and plants in New York.
A study by The Public Policy Institute of New York State concluded that the single-sales factor in New York would create an estimated 133,000 jobs and produce a net increase in state revenues. - Phasing
out the alternative minimum tax by 2005 to allow New York's
investment tax credit to have the full benefits intended
by the Legislature.
New York offers one of the nation's most attractive investment tax credits, but its value is undermined by the state's alternative minimum tax, which effectively reduces the value of these incentives. Repealing the alternative minimum tax would give the incentives the full effectiveness lawmakers intended. - Making
permanent the investment tax credit for New York's financial
sector.
The current ITC for this sector is due to expire in July 2003. The Council believes it should be made permanent as soon as possible so that its benefits can influence investment decisions being considered now, especially in rebuilding lower Manhattan.
- Authorizing creation of new venture capital companies to fund investments in rebuilding Manhattan.These companies would make venture capital funding available for a variety of business investments in Manhattan.
- Reforming
taxes on the telecommunications industry. The bill would
permit telecommunications companies to impose taxes only
on taxable services, even if those services are bundled.
Under current state law, packages of products or services that include any taxable items are subject to taxes on the full value of the package, even if it includes both taxable and tax-free items.
"Because tomorrow's major business decisions are being made today, New York must declare, loudly and clearly, its commitment to policies that will accelerate economic recovery," said Business Council President Daniel B. Walsh. "This bill would do that, emphatically."