BDO Knows Financial Institutions & Specialty Finance Alert - April 2014
New York Governor Cuomo has signed into law the proposed 2014 - 2015 Executive Budget, which overhauls the New York State Tax Law and enacts major changes to the taxation of banks. The bill repeals the Article 32 tax upon banking institutions and, instead, requires them to be taxed under Article 9-A. The bill also sets forth a number of other changes, including requiring captive REITs (those owned 50 percent or more by a bank) to file a combined return. Article 9-A is materially changed in the legislation.