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New York: 2008 Update
Executive Summary
- The State has revised the computation of the fee payable by LLC/LLPs. The fee is now based on gross receipts instead of the number of members of partners. Multiple-tier LLC/LLPs will be taxed at each separate tier, with no credit for the fee paid by the lower tier entity.
- For taxable years beginning on or after January 1, 2008, the fixed dollar minimum tax for both C and S corporations has been revised and will be based on the New York States receipts of the corporation.
- New York State sales tax vendors must re-register, beginning November 1, 2008.
Multiple-tier LLC Taxation
- New York State has changed the way the fee for Limited Liability Companies and Limited Liability Partnerships are calculated. This can substantially increase the fee paid by some LLC/LLPs. Under the old method, the fee was based upon the number of members or partners. Instead of calculating the fee based on the number of members or partners, the fee is now based on the LLC/LLP's NY sourced gross receipts from the prior year. For the 2008 LLC/LLP fee, due on January 30, 2009, a calendar year taxpayer's fee would be based on 2007 gross receipts.
- The fee is imposed at every separate tier, and upper tier entities are required to include their share of lower tier entities NY gross receipts as their own for purposes of calculating the fee without any credit or offset for the fee paid by the lower tiers.
Fixed Dollar Minimum Tax
- For taxable years beginning on or after January 1, 2008, the fixed dollar minimum tax will be based on the New York States receipts of the corporation.
- The fixed dollar minimum tax for C and S corporations will be determined in accordance with:
| New York Source Gross Income |
C Corporation
Fixed $ min. |
S Corporation
Fixed $ min |
LLC Filing Fee* |
| Not more than $100,000 |
$25 |
$25 |
$25 |
| $100,001-$250,000 |
$75 |
$50 |
$50 |
| $250,001-$500,000 |
$175 |
$175 |
$175 |
| $500,001-$1,000,000 |
$500 |
$300 |
$500 |
| $1,000,001-$5,000,000 |
$1,500 |
$1,000 |
$1,500 |
| $5,000,001-$25,000,000 |
$3,500 |
$3,000 |
$3,000 |
| More than $25,000,000 |
$5,000 |
$4,500 |
$4,500 |
* Based on 2007 gross receipts. Refer to worksheet in Instructions for computation of gross receipts.
Sales Tax Re-Registration Program
- Effective November 1, 2008, all vendors registered for sales tax purposes must re-register and obtain new Certificate of Authority.
- Under this program, vendors that are required to file on a monthly or quarterly basis must pay a $50 re-registration fee. Vendors that are annual filers do not owe the fee when they re-register.
- The vendor re-registration program will be implemented in stages, beginning November 1, 2008, and ending March 31, 2012. The Department will contact vendors when it is their time to re-register.
For more information, contact Amper's
State and Local Tax Group:
John C. Genz CPA, MST
Partner-in-Charge, State and Local Tax
(732) 919-1400
E-mail
Stephen J. Bercovitch J.D.
Director
(212) 682-1600
Gary C. Bingel J.D., CPA, MBA
Director
(908) 218-5002
Paul Weintraub CPA, MST
Senior Manager
(908) 218-5002
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