State and Local Tax Alert - April 2014

April 2014

Just before midnight on March 31, 2014, New York Governor Andrew Cuomo signed into law S6359-D, which implements components of the state’s fiscal plan for the 2014-2015 fiscal year, including Article 9-A reforms. The Article 9-A reforms, most of which are effective for taxable years beginning on or after January 1, 2015, unless otherwise noted in the bill, include, among many others: (1) the addition of a bright-line nexus standard based on receipts, (2) modification of the income tax and capital tax bases as well as phase-out of the capital tax, (3) repeal of the tax on subsidiary capital and the alternative tax on minimum taxable income, (4) expansion of customer-focused receipts sourcing for purposes of apportionment, and (5) a change to mandatory unitary combined reporting