2019-20 New York State Executive Budget Released By Governor Cuomo

On January 15, 2019, New York State Governor Andrew M. Cuomo released his 2019-20 Executive Budget.  It contains several potentially important tax proposals, including the following:

Personal Income Tax

• Extends top personal income tax rates for five years.  Extends the top tax bracket under the personal income tax, which is imposed at a rate of 8.82%, for an additional five years through 2024.  The top tax bracket was originally set to expire after 2019. 

Corporate Income Tax

• Provides a sourcing rule for GILTI apportionment. Provides for the inclusion in the receipts factor of the net amount of global intangible low-taxed income ("GILTI") (net of the deduction allowed federally under IRC § 250(a)(1)(B)(i)) included in business income for both Article 9-A and New York City business corporation tax purposes.  Net GILTI receipts are included in the denominator of the apportionment fraction, but not in the numerator of the apportionment fraction.