Cuomo's tax commission offers its ideas

The commission tasked by Gov. Andrew Cuomo with making the state's tax code simpler and fairer has released its final report.

The New York State Tax Reform and Fairness Commission focused its reform efforts on the tax code's inequitable treatment and its negative impact on state revenues, according to a note on the report from co-chairman Peter Solomon and H. Carl McCall. And while the co-chairs don't expect every recommendation to be adopted immediately, they're hoping this report prompts long-term changes.

Read the full report, HERE.

The report's recommendations touch on sales tax, estate and gift taxes, corporate tax and the 18-A surcharge, real property tax and tax code simplifications.

One of the credits the commission recommends scaling back is the film production tax credit, which is one of the state's largest annual incentives at a price tag of $420 million. Film companies are able to be reimbursed through this credit for 30 percent of their "below the line" costs. The report argues that the credit has been successful, but says it should be scaled back because it doesn't pay for itself and noted other states are scaling back what they offer.

 "Given the growing pressure on State resources, the State should consider scaling back the annual allocation of the credit by $50 million. In addition, the Commission suggests that the State monitor developments in other states and adjust its financial commitment as competitive conditions and budget constraints dictate," reads the report.

This is an interesting recommendation, as it comes less than 24 hours after Cuomo vetoed a bill that would have expanded a more lucrative version of the credit to the Capital Region.

In a release accompanying the report, Cuomo thanked the co-chairs and reiterated his commitment to turning around the state's negative tax reputation.  “ Today’s report represents another step in that direction as we seek to simplify New York’s antiquated and unnecessarily onerous tax code, and to ease the tax burden on families and businesses statewide," he said.

These efforts have the support of Unshackle Upstate, a broad coalition of New York businesses, which credited the report with offering a number of sensible options. Unshackle Executive Director Brian Sampson said in a statement, "We’re especially encouraged by the inclusion of important measures such as the accelerated phase out of New York’s energy surcharge.

He also noted that Unshackle introduced its own tax plan recommendations in September.

"It’s become clear that we can and must reduce New York’s crushing tax burden," Sampson said. "We appreciate the Governor’s efforts and strongly believe that real tax relief must happen in 2014.”
 

Follow @poozer87 on Twitter.