Week of 10/5/2009 thru 10/9/2009
Important Publications and Notices
This TSB-M corrects the definition of net earnings from self-employment that appears on page 5 of TSB-M-09(1)MCTMT, Metropolitan Commuter Transportation Mobility Tax. The definition of net earnings from self-employment in TSB-M-09(1)MCTMT incorrectly stated that in computing the amount of an individual’s net earnings from self-employment subject to the metropolitan commuter transportation mobility tax (MCTMT), individuals should use the amount computed on federal Schedule SE (Form 1040), Self-Employment Tax, before multiplying by 92.35%.
Amendments to section 157.2(a) of the Personal Income Tax Regulations were adopted
on September 9, 2009. The amendments change the length of the automatic extension of time to
file a New York State partnership return or fiduciary income tax return to conform to the period
allowed under federal law and regulations. The amendments apply to tax years ending on or after
December 31, 2009.
This memorandum summarizes the amendments to the Tax Law made by Chapters 57 and
59 of the Laws of 2009 (New York State budget legislation for 2009-2010) that apply to sales and
use tax (sales tax).
Columbia County has enacted legislation to extend the imposition of the Columbia County mortgage recording tax to apply to mortgages recorded on or after January 1, 2010. The rate of the Columbia County mortgage recording tax is $.50 for each $100 of principal debt secured by a mortgage. Therefore, the rate of mortgage recording taxes imposed on the recording of mortgages on real property located in Columbia County will continue to be $1.25 for each $100 secured by the mortgage.
Genesee County has enacted legislation to extend the imposition of the Genesee County mortgage recording tax to apply to mortgages recorded on or after November 1, 2009. The rate of the Genesee County mortgage recording tax is $.25 for each $100 of principal debt secured by a mortgage. Therefore, the rate of mortgage recording taxes imposed on the recording of mortgages on real property located in Genesee County will continue to be $1.25 for each $100 secured by the mortgage.
In Cattaraugus County, mortgages are currently subject to the basic, additional and special additional mortgage recording taxes at the combined rate of $1.00 for each $100.00 secured by the mortgage. Effective November 1, 2009, Cattaraugus County has elected to impose a county mortgage recording tax of $.25 for each $100.00 secured by the mortgage. The county mortgage recording tax will apply to mortgages recorded on or after November 1, 2009. Therefore, as of November 1, 2009, the rate of mortgage recording taxes imposed on the recording of mortgages on real property located in Cattaraugus County will be $1.25 for each $100.00 secured by the mortgage.
Petitioner, name and address redacted, requests an Advisory Opinion about the application of the alternate valuation provisions of Internal Revenue Code (IRC) § 2032 to assets held in a brokerage account with transfer on death instructions in place pursuant to Estates, Powers and Trusts Law (EPTL) Article 13. We conclude that, for purposes of the alternate valuation provisions of IRC § 2032, the alternate valuation date may be used because the assets subject to "transfer on death" instructions pursuant to EPTL Article 13, Part 4, are not considered to be distributed, sold, exchanged, or otherwise disposed of as of the Decedent’s date of death.
Petitioner Ryan Barbur asks what is the Department of Taxation and Finance’s policy with respect to the sale of cigarettes and tobacco products to the Department of Correctional Services for resale to inmates confined in correctional facilities. We conclude that under the Tax Law inmates receive no exemptions from the imposition of cigarette and tobacco products excise taxes.
Petitioner name redacted asks whether the receipts from its licenses for the use of its software are subject to New York State sales and use taxes.
Petitioner name and address redacted requested an advisory opinion regarding the application of the sales and use tax to materials used and consumed by an automobile body repair shop, and whether a repair shop may pass through to its customer as part of a bill for the taxable service of repairing a damaged automobile the costs (including sales tax) paid by the repair shop on items used by the shop in the repair process, and collect sales tax on the total bill including those costs.
The issue raised by name redacted (“Petitioner”) is whether it must pay sales tax on its purchases of dehumidifiers and air movers, which it provides to customers, or whether such purchases are exempt from tax as purchases for resale. Petitioner operates a cleaning and restoration business and provides the dehumidifiers and air movers to its clients as an optional value-added service, separate from the cleaning and restoration.
On June 28, 2004, the Department of Taxation and Finance received a Petition for Advisory Opinion from Jones Day, 2727 North Harwood Street, Dallas, Texas 75201-1515.
The petition asks whether payments made in respect of termination of name redacted employment contract with the name redacted constitute New York source income.
The petition asks whether name redacted, who is an S corporation shareholder and is unable to currently deduct the flow-through loss from her S corporation on her Federal income tax return, has any relief from New York Tax Law §612(b)(8), which requires her to add back to her Federal adjusted gross income the bonus depreciation allowed under Internal Revenue Code §168(k).
Petitioner, name and address redacted, requests an Advisory Opinion about whether its two-way paging services are subject to the New York State Public Safety Communications Surcharge. We conclude that they are not.
Up-to-date Forms Information
- Up-to-Date Information Affecting Your 2008 Tax Return
Visit our Income Tax and Corporation Tax Up-to-Date Information page for tax law changes or corrections that occurred after the forms and instructions were printed and which may affect your 2008 tax return.
Press Release
New York State Department of Taxation and Finance Acting Commissioner Jamie Woodward announced that Steven J. Seidman, 52, a Rochester attorney with offices located at 90 Office Way, Pittsford, pled guilty today to one misdemeanor count of failing to pay personal income taxes.
New York State Department of Taxation and Finance Acting Commissioner Jamie Woodward today announced new initiatives to ensure that the department is accessible and responsive to taxpayers.
New York State Department of Taxation and Finance Acting Commissioner Jamie Woodward today announced that Alexander T. Bacon, who owns The Lumberyard Grille located at 106 Bemis Street, Canandaigua, was sentenced by Judge William F. Kocher in Ontario County Court to one to three years in prison and ordered to pay $249,561.90 restitution for underreporting the restaurant’s gross sales by nearly $3.5 million over seven years.
New York State Department of Taxation and Finance Acting Commissioner Jamie Woodward today announced that New York taxpayers who invested in offshore bank accounts or other offshore activity are required to report to the state Tax Department any changes in their taxable income resulting from a federal audit or from the filing of an amended federal return.
New York State Department of Taxation and Finance Acting Commissioner Jamie Woodward and Richmond County District Attorney Daniel M. Donovan Jr. jointly announced that Clifford Smith, 38, of Green Valley Road on Staten Island, an entertainer known as "Method Man," was arrested on felony charges that he failed to file New York State Income Tax Returns for the years 2004 through 2007 and failed to pay $32,799 in personal income tax for that same period, not including additional accrued interest and penalties.
Policy and Statistical Reports
Chapter 59 of the Laws of 2009, Part NN mandated that the Department of Taxation and Finance, in consultation with the New York State Public Service Commission, conduct a study to examine the assessments, fees, tax rates, and associated policies of the state of New York as they relate to the telecommunications industry. The attached report is the result of that mandate.