On June 20, 2019, both the NYS Assembly and Senate passed bills that made significant changes to the state’s treatment of two hot tax issues: the taxation of global intangible low-taxed income (“GILTI”), and the state’s threshold for establishing economic nexus for sales tax purposes. According to the Senate and Assembly websites, the legislation was signed into law by Governor Cuomo on June 24th.
On June 4, 2019, Gov. Ned Lamont announced that Connecticut’s Democrat-controlled Assembly passed the $43.35 billion FY 2020 Budget (the “Budget Plan”). The Final Bill (H.B. 7424) cleared the Senate on June 4 and the House on June 3. It aims to resolve a $3.7 billion multi-billion dollar deficit largely through tax and revenue hikes, increasing spending by 1.7% in fiscal year 2020 and by 3.4% in 2021. As of June 13, it has not been signed by the Governor. This is just a formality as he stands behind this Budget Plan.
The New York State Division of Taxation and Finance (the “Department”) issued information entitled “FAQs related to registration requirement for businesses with no physical presence in NYS” (“FAQs”) on May 1, 2019 to address questions concerning sales tax collection by businesses without a physical presence in New York.