New York proposals include tax on high-wage earners, optional pass-through entity tax

Governor Andrew Cuomo (D) on January 19 announced a revenue bill (legislation) as part of the state’s FY 22 budget that proposes to increase the personal income tax rate on taxpayers with income in excess of $5 million; pause the phased reduction of middle-class tax rates; introduce an optional pass-through entity tax; require all federal S corporations that are subject to tax in New York to be treated as S corporations for state tax purposes; amend the state’s real estate transfer tax, subject all vacation rentals to sales and use taxes; modify several credits, including extending the film tax credit for one year; make other tax changes.

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