Income/Franchise:
New York: New Law Enacts New York City Economic Nexus Thresholds and Permits City PTET for TY2002

SB 9454, signed by gov. 8/31/22. Among several other tax-related provisions included in the bill, recently enacted state legislation amends the New York City Business Corporation Tax to include bright-line economic nexus standards that are similar to those enacted by New York State under the corporate tax reform legislation contained in the 2014-2015 and 2015-2016 enacted New York State Budgets (although some threshold amounts may differ due to New York State’s consumer price index adjustments effective January 1, 2022). The legislation also amends the newly created New York City pass-through entity tax (NYC PTET) [see previously issued Multistate Tax Alert for more details on original enactment of the NYC PTET earlier this year], providing that the NYC PTET is in effect beginning with tax year 2022, rather than with tax year 2023. As a reminder, those electing to opt in to the NYC PTET for tax year 2022 must first have opted in to the New York State PTET (NYS PTET) by the September 15, 2022 election deadline and made required payments to New York State by such date to be eligible [see recently issued Multistate Tax Alert for more details on NYS PTET tax considerations for the 2022 tax year].

See forthcoming Multistate Tax Alert for more details on this recently signed bill, and please contact us with any questions in the meantime.