New York State Tax Sourcebook by pengxiuhui

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									OTPA                            New York State Department of Taxation and Finance
Office of Tax Policy Analysis




                                                                                    November 1999




                                New York State
                                Tax Sourcebook




George E. Pataki                                                                     Arthur J. Roth
Governor                         Missing pages are intentional blanks                  Commissioner
 Contents



Introduction                                             1


Issues in Comparing                                     3
                      Aggregate Tax Comparisons         3
State Taxes           Per Capita Taxes                  4
                      Tax to Income Ratio               4
                      Top Rates                         5
                      Other Factors                     5

Personal Income Tax                                     61
                      Adjusted Gross Income             61
                      Deductions                        61
                      Exemptions                        62
                      Tax Rates and Brackets            62
                      Credits                           63
                      Minimum Tax                       64
                      Business Taxpayers                64
                      Nonresident Taxpayers             65
                      Withholding                       65
                      Estimated Tax                     65

Business Taxes                                          79
                      Corporation Franchise Tax         79
                      Tax Bases and Rates               79
                      S Corporations                    81
                      Tax Incentives                    82
                      Unrelated Business Income Tax     83
                      Corporation and Utility Tax       84
                      Petroleum Business Tax            88
                      Bank Tax                          89
                      Insurance Tax                     90
                      Insurance - Direct Writings Tax   91
Sales and                                                                             141
                    Tax Rates                                                         141
Compensating Use    Tax Base and Exemptions                                           141
Tax                 Economic Development Exemptions and Credits                       142
                    Registration and Payment                                          142

Excise and User                                                                       149
                    Cigarette and Tobacco Products Taxes and Fees                     149
Taxes and Fees      Motor Fuel Taxes                                                  149
                    Petroleum Testing Fee                                             151
                    Alcoholic Beverage Tax                                            151
                    Highway/Fuel Use Taxes                                            151
                    Pari-Mutuel and Horse Racing Taxes                                152
                    Beverage Container Tax                                            153
                    Passenger Car Rental Tax                                          153
                    Boxing and Wrestling Exhibitions Tax                              153
                    Hazardous Waste Fees                                              154

Property Transfer                                                                     163
                    Estate Tax                                                        163
Taxes               Gift Tax                                                          164
                    Generation Skipping Transfer Tax                                  165
                    Real Estate Transfer Tax                                          165

Tables              Issues in Comparing State Taxes

                    Table 1: State Taxes ($000), Fiscal Year 1998                      7
                    Table 2: State Taxes ($000), Selected Fiscal Years                 8
                    Table 3: State Taxes by Type of Tax (Percent), Fiscal Year 1998    9
                    Table 4: State Taxes Per $1,000 Personal Income, Fiscal           10
                       Year 1998
                    Table 5: State Taxes Per $1,000 Personal Income, Selected         11
                       Fiscal Years
                    Table 6: State Taxes by Selected Tax Amounts Per $1,000            12
                       Personal Income, Fiscal Year 1998
                    Table 7: State Taxes Per Capita, Fiscal Year 1998                  14
                    Table 8: State Taxes Per Capita, Selected Fiscal Years             15
                    Table 9: State Taxes by Selected Tax Amounts Per Capita,           16
                       Fiscal Year 1998
                    Table 10: State & Local Taxes ($000), Fiscal Year 1996             18
Table 11: State & Local Taxes by Level of Government           19
   (Percent), Selected Fiscal Years
Table 12: State & Local Taxes Per $1,000 Personal Income,      20
   Fiscal Year 1996
Table 13: State & Local Taxes Per $1,000 Personal Income,      21
   Selected Fiscal Years
Table 14: State & Local Taxes Per Capita, Fiscal Year 1996     22
Table 15: State & Local Taxes Per Capita, Selected Fiscal      23
   Years
Table 16: Top State Personal Income Tax Rates as of            24
   January 1, 1999
Table 17: Income Tax-Free Levels of Income, Two Parent         25
   Family of Four, 1998 Tax Year
Table 18: Top State Income Tax Rates on Corporations as        26
   of January 1, 1999
Table 19: State Tax Treatment of Limited Liability Companies   28
   and Registered Limited Liability Partnerships as of
   September 25, 1998
Table 20: State Gross Receipts Tax Rates on Utility Service    30
   Providers as of January 1, 1999
Table 21: State Taxation of Utility Service Providers as of    32
   January 1, 1999
Table 22: State Taxation of Selected Telecommunications        40
   Providers as of January 1, 1999
Table 23: Tax Rates on Insurance Corporations as of            46
   January 1, 1999
Table 24: Top State Bank Tax Rates as of January 1, 1999       48
Table 25: Maximum State and Local Combined Sales Tax           49
   Rates as of January 1, 1999
Table 26: State Cigarette Tax Rates as of January 1, 1999      50
Table 27: State Alcoholic Beverage Excise Tax Rates as         51
   of January 1, 1999
Table 28: State Inheritance and Estate Tax Rates and           52
   Exemptions as of January 1, 1999
Table 29: State and Local Tax Rates on Gasoline as of          53
   January 1, 1999
Table 30: Major State Tax Increases or Decreases, 1992-1998    54
Table 31: Dates of Adoption of Major State Taxes               56
Table 32: State Personal Income Tax Linkages to Federal Law    59
Table 33: Miscellaneous Linkages of States to Certain Items    60
   of Federal Law as of January 1, 1999
Personal Income Tax

Table 34: New York Standard Deductions, 1999                      62
Table 35: Levels of Taxable Income at Which the Top Tax Rate      63
   Applies
Table 36: 1999 New York State Personal Income Tax Rates           67
Table 37: New York State Personal Income Tax Rates,               68
   1919-1999
Table 38: Federal Poverty Level and Point of Zero State Tax       69
   Liability, 1985-1999
Table 39: History of Top New York State Effective Tax Rate        70
   on Capital Gains
Table 40: New York and U.S. Average Effective State               71
   Personal Income Tax Rates, 1970-1998
Table 41: Significant Changes in New York State’s Personal        72
   Income Tax Structure, 1984-1999

Business Taxes

Table 42: History of Corporate Tax Rates in New York              92
   State, 1917-1999
Table 43: Corporation Franchise Tax (Art. 9-A): Number of         93
   Taxpayers, Tax Years 1944-45 to 1995-96
Table 44: Rate Structure of the Petroleum Business Tax as         94
   of April 1, 1999
Table 45: New York State Petroleum Business Tax (Article 13-A)    96
   Rates, 1983-1999
Table 46: Significant Changes to New York State’s Corporate       98
   Franchise Tax Structure, 1984-1999
Table 47: Significant Changes to New York State’s Corporate      110
   Franchise Tax on Insurance Companies - 1984-1999
Table 48: Significant Changes to New York State’s                116
   Franchise Tax on Banking Corporations - 1984-1999
Table 49: Significant Changes in New York State’s                122
   Taxation of Utility Corporations & Other Specified
   Companies, 1984-1999
Table 50: Significant Changes in the Structure of New York       130
   State’s Petroleum Business Gross Receipts Tax,
   1983-1990
             Table 51: Significant Changes in New York State’s Petroleum   132
                Business Tax, 1990-1999

             Sales and Compensating Use Tax

             Table 52: New York State and Local Sales and Use Tax          144
                Rates, Calendar Years Ending 1933-1999
             Table 53: New York State and Local Sales Tax Rates, by        145
                Community, as of January 1, 1999
             Table 54: Significant Changes in New York State’s Sales       146
                and Use Tax Structure, 1965-1999

             Excise and User Taxes and Fees

             Table 55: Motor Fuel Tax Rate Components Per Gallon           150
             Table 56: Alcoholic Beverage Tax Rates, 1999                  151
             Table 57: History of New York State and Local Taxes           156
                Imposed on Gasoline, 1929-1999
             Table 58: History of New York State Motor Fuel Excise         157
                Tax (Article 12-A) Rates, 1929-1999
             Table 59: History of New York State Alcoholic Beverage        158
                Tax Rates, 1933-1999
             Table 60: History of New York State Cigarette Tax             159
                Rates, 1939-1999
             Table 61: Significant Changes in New York State’s Excise      160
                Taxes and Fees, 1929-1999

             Property Transfer Taxes

             Table 62: Significant Changes to New York State’s Estate      168
                and Gift Taxes, 1983-1999
             Table 63: Significant Changes to New York State’s Property    170
                Transfer Taxes, 1906-1999

             Appendix A: Office of Tax Policy Analysis Publications        A-1
Appendixes   Appendix B: Duration of Major New York State Revenue          B-1
                Sources
 Introduction


                          This book provides a compilation of New York State tax facts and
                          figures. Most of the information is presented in a tabular format for
                          quick and easy reference. The publication will be updated and published
                          annually to reflect changes in New York’s tax structure as well as
                          changes in other states’ tax systems.

                          The organization of the Sourcebook is unchanged from previous year’s
                          reports. After a discussion and data showing how New York State taxes
                          compare with those of other states, the book describes the current
                          structure and history of major types of New York State taxes: the
                          personal income tax; business taxes; sales and compensating use tax;
                          excise and user taxes and fees; and property transfer taxes. Readers
                          desiring additional detailed information should also refer to Appendix A
                          which lists other Office of Tax Policy Analysis (OTPA) publications.
                          Many OTPA reports are also now available on the New York State
                          Department of Taxation and Finance website
                          (http://www.tax.state.ny.us). Appendix B shows the duration of major
                          New York State revenue sources.

                          The Sourcebook includes New York State tax collections data reported
                          by the U.S. Department of Commerce, Bureau of the Census, used to
                          compare tax burdens in the 50 states. The most recent state tax
                          collection data available are for state fiscal year (SFY) 1997-98.
                          Typically, state fiscal years run from July 1 through June 30, but in
                          New York State the period is April 1 through March 31. In contrast,
                          State and local tax collection data are available through fiscal year
                          1995-96. Local fiscal years differ greatly in New York State and across
                          the nation. As the latter data series concerns less recent fiscal years,
                          many of the significant New York State tax cuts of recent years are not
                          yet fully reflected in these data.

                          Readers desiring detailed and recent information on New York State tax
                          collections are referred to OTPA’s latest Statistical Report of New York
                          State Tax Collections.

1999 NYS Tax Sourcebook                                                                       Page 1
         While OTPA has compiled the information contained in this book, it has
         not independently verified the data and calculations for information
         provided by other sources. Questions regarding information printed in
         the Sourcebook can be directed to the Office of Tax Policy Analysis at
         (518) 457-3187.




Page 2                                                     1999 NYS Tax Sourcebook
 Issues in Comparing State Taxes



Aggregate Tax             Debates over state tax policy often lead to comparisons among the states.
                          Policy analysts use a variety of methods to make these comparisons. The
Comparisons               most commonly used measures include:

                          & Taxes per capita.
                          & Taxes per $1,000 personal income.
                          & Top tax rates.

                          Before discussing some flaws in the specific tax measures noted above,
                          there are some generic problems inherent in any overall measure of tax
                          competitiveness. The primary problem revolves around a state’s ability
                          to export taxes.

                          & First, states rich in economically sensitive natural resources, such as
                             petroleum, coal, natural gas and lumber, can impose severance taxes
                             upon removal of these resources which are primarily paid by the
                             ultimate consumers of these products. To the extent these consumers
                             are located in other states, the tax is exported. For this reason alone,
                             most aggregate comparisons fail to be completely informative.

                          & Second, states with significant tourist industries, like Hawaii, Florida,
                             California and New York, can export a portion of their sales tax base
                             (and certain selected excise taxes) to nonresident visitors. For
                             example, Hawaii has a very high sales tax rate which results in
                             significant revenue generated from nonresident tourists.

                          & Third, states with significant economic migration of workers may
                             have the opportunity to shift taxes to nonresidents who work in the
                             state. A prime example is the thousands of workers commuting to
                             New York daily from New Jersey and Connecticut. To the extent
                             these taxpayers pay New York tax, a portion of the burden of the tax
                             is exported.



1999 NYS Tax Sourcebook                                                                        Page 3
                      & Fourth, some state and local tax sources are deductible from federal
                         taxes. To the degree a state and local tax structure is weighted to
                         federally deductible tax sources, a part of the tax cost is exported to
                         the federal government. These factors are not recognized in
                         aggregate tax comparisons.

                      & Fifth, it is extremely difficult to incorporate tax burdens into overall
                         tax capacity measures. While business taxes are allocated to states
                         based on formula apportionment, the question of who actually pays
                         the tax and where they are located is difficult to determine. This is a
                         specific instance of the more generic problem in the overall tax
                         burden of determining the underlying incidence of a tax structure.

                      Per capita taxes are the dollar amount of total tax collections divided by
Per Capita Taxes      the population of a state. Measuring state tax burdens by using per capita
                      tax collections can seriously mislead the reader. This measure does not
                      reflect ability to pay tax or the demographic composition of taxpayers.
                      Also, as already mentioned, it does not indicate the amount of state tax
                      paid by nonresident workers and consumers, or exported to the federal
                      government through deductibility (i.e., tax incidence, or “who pays the
                      tax”).

                      Taxes per $1,000 of personal income are the dollar amount of total
Tax to Income Ratio   collections divided by the personal income of the state’s residents in
                      thousands of dollars. Dividing state tax collections by personal income
                      provides a better indicator because it provides some measure of
                      taxpayers’ ability to pay. However, like per capita measures, it does not
                      show who actually pays state taxes.

                      This measure of tax burden is necessarily imprecise as not all residents
                      pay tax (particularly corporate and certain selective sales taxes). Again,
                      it also includes taxes paid by nonresidents, but not the income they earn.
                      In New York State, nonresidents and part-year residents typically account
                      for between 10 and 15 percent of all personal income tax taxpayers and
                      tax liability. Moreover, New York’s population is under 7 percent of the
                      national total, but the State accounts for over 8 percent of total personal
                      income.

                      A further problem with this measure is that it does not provide control
                      for wealth differences across states. For example, if all states had
                      identical tax structures composed only of a progressive personal income

Page 4                                                                      1999 NYS Tax Sourcebook
                          tax, then states with higher per capita incomes would appear as higher-
                          tax states. Additionally, as already discussed, this measure does not
                          correct for the deductibility of certain taxes from federal taxes. Federal
                          deductibility allows state taxpayers to shift a portion of the cost of the
                          personal income tax to the federal government.

                          The U.S. Commerce Department’s definition of personal income does
                          not include capital gains or nonresident income, each of which may go
                          toward paying a particular state’s income taxes and corporate taxes. In
                          the case of New York State, nonresidents and part-year residents are
                          liable for tax on taxable income derived from sources within New York.
                          Additionally, New York State residents pay tax on capital gains
                          realizations. As a result, the tax-to-income ratio is biased in an upward
                          direction because it includes tax but excludes the associated income.
                          New York residents realize a substantial fraction of national capital
                          gains. This means the upward bias in the tax-to-income ratio is even
                          greater for New York. Tax-to-personal income is, however, a more
                          useful interstate comparison than taxes per capita, because it partially
                          adjusts for the relative wealth or poverty of different states.

                          Top tax rates are usually represented by the state’s top marginal tax rate
Top Rates                 for corporate and personal income taxes. Comparing state tax rates can
                          prove especially misleading because state tax bases differ widely,
                          particularly for personal income and sales taxes. For example, states
                          with high graduated income tax rates often have more deductions,
                          exclusions and credits than states with lower, less-graduated rate
                          structures. Also, states tax similar bases differently. For example,
                          New York’s cents-per-gallon tax on petroleum businesses yields a higher
                          tax rate than does the regular motor fuel excise tax for which New York
                          has one of the nation’s lowest rates.

                          More generally, tax collection patterns can vary from state to state, and
Other Factors             fluctuate from year to year. Such factors as law changes, audit activities,
                          withholding rules, and the relationship between tax and fiscal years can
                          skew apparent collections in any given period.

                          Moreover, caution is warranted when comparing U.S. Census Bureau
                          data to State tax collections data provided by individual states (including
                          New York). The Census Bureau includes various license revenues in tax
                          amounts even though particular states may not report these revenues in
                          their tax collections data.

1999 NYS Tax Sourcebook                                                                         Page 5
         Furthermore, the U.S. Census Bureau’s classification scheme does not
         always capture ways states may chose to impose taxes on similar entities.
         For example, the State of Washington does not have a corporation
         income tax, but it collects about one billion dollars from a tax on
         business receipts, in addition to a retail sales tax. These differences in
         classification can hide the fact that the states often elect different
         approaches to taxing similar entities or activities.

         Using the standard measure of tax burden — collections per capita or as
         a share of personal income — has less meaning for business tax burden
         than for other taxes. Whereas personal income and sales taxes are at
         least, in part, paid by individuals out of their personal income, business
         tax incidence is far less straightforward. Although individuals, as
         workers, consumers and shareholders, ultimately pay business taxes with
         their income, where they live may bear little relationship to where the
         business ultimately pays tax. Also, per-capita and share-of-income
         burden measures provide little insight on different businesses’ ability to
         pay tax.




Page 6                                                        1999 NYS Tax Sourcebook
Table 1: State Taxes       State                              Total State Taxes         State                           Total State Taxes
($000), Fiscal Year 1998   U.S. Total                              $475,370,959         Montana                                $1,331,895
                           Alabama                                    5,734,128         Nebraska                                2,633,216
                           Alaska                                     1,186,235         Nevada                                  3,228,206
                           Arizona                                    6,949,270         New Hampshire                           1,008,518
                           Arkansas                                   4,056,582         New Jersey                             15,604,971
                           California                                67,713,433         New Mexico                              3,574,537
                           Colorado                                   5,898,349          New York                           36,154,533
                           Connecticut                                9,393,604         North Carolina                         13,869,426
                           Delaware                                   1,981,473         North Dakota                            1,078,375
                           Florida                                   22,513,115         Ohio                                   17,642,836
                           Georgia                                   11,589,495         Oklahoma                                5,300,829
                           Hawaii                                     3,176,246         Oregon                                  4,999,091
                           Idaho                                      2,057,378         Pennsylvania                           20,629,483
                           Illinois                                  19,771,284         Rhode Island                            1,783,913
                           Indiana                                    9,747,426         South Carolina                          5,683,148
                           Iowa                                       4,802,531         South Dakota                              833,662
                           Kansas                                     4,647,921         Tennessee                               6,996,120
                           Kentucky                                   7,115,149         Texas                                  24,629,000
                           Louisiana                                  6,082,026         Utah                                    3,838,074
                           Maine                                      2,369,820         Vermont                                   957,656
                           Maryland                                   9,190,482         Virginia                               10,542,966
                           Massachusetts                             14,488,496         Washington                             11,806,170
                           Michigan                                  21,692,742         West Virginia                           3,011,990
                           Minnesota                                 11,503,928         Wisconsin                              11,149,754
                           Mississippi                                4,343,435         Wyoming                                   855,716
                           Missouri                                   8,222,326
                           Source: "State Tax Collections" (1998), U.S. Department of Commerce, Bureau of the Census.




1999 NYS Tax Sourcebook                                                                                                            Page 7
Table 2: State Taxes ($000), Selected Fiscal Years
State                                                  1997                   1996                     1995           1992                1987
U.S. Total                                    $443,493,281            $418,606,087             $399,156,355    $331,179,823       $246,933,216
Alabama                                           5,484,161              5,257,771                 5,077,827      4,217,916          3,222,201
Alaska                                            1,619,110              1,519,082                 1,922,463      1,602,937          1,062,391
Arizona                                           6,833,806              6,409,395                 6,223,489      4,826,755          3,469,477
Arkansas                                          3,776,577              3,708,744                 3,391,785      2,748,292          1,889,066
California                                       61,666,886             57,746,664                53,269,075     47,972,949         35,790,750
Colorado                                          5,289,824              4,820,163                 4,529,650      3,531,698          2,561,477
Connecticut                                       8,145,787              7,830,181                 7,474,119      6,059,339          4,359,175
Delaware                                          1,743,234              1,688,349                 1,588,707      1,341,005            941,932
Florida                                          21,080,121             19,699,256                18,583,230     14,504,207          9,846,189
Georgia                                          10,897,538             10,292,371                 9,486,639      7,266,981          5,323,689
Hawaii                                            3,087,946              3,069,300                 2,874,496      2,709,518          1,697,424
Idaho                                             1,960,505              1,857,006                 1,733,120      1,396,013            829,698
Illinois                                         18,544,570             17,277,319                16,589,789     13,463,435         10,429,524
Indiana                                           9,100,842              8,437,031                 8,045,753      6,963,139          4,774,190
Iowa                                              4,686,396              4,440,540                 4,403,428      3,616,444          2,662,110
Kansas                                            4,229,721              3,978,761                 3,765,488      2,801,692          2,085,490
Kentucky                                          6,818,992              6,489,256                 6,284,623      5,080,971          3,520,409
Louisiana                                         5,646,253              4,906,283                 4,676,969      4,250,245          3,448,641
Maine                                             2,019,491              1,896,564                 1,812,574      1,670,488          1,288,480
Maryland                                          8,604,406              8,166,692                 8,060,982      6,502,494          5,204,499
Massachusetts                                    13,305,431             12,453,370                11,601,135      9,903,246          8,463,874
Michigan                                         20,325,851             19,128,687                17,723,494     11,279,170          9,857,122
Minnesota                                        11,223,269             10,055,523                 9,327,886      7,449,787          5,546,422
Mississippi                                       4,016,548              3,862,541                 3,599,244      2,494,392          1,943,388
Missouri                                          7,815,966              7,300,119                 6,751,959      5,131,360          3,942,295
Montana                                          $1,259,226             $1,256,416                 1,214,152      1,034,876            591,001
Nebraska                                          2,548,174              2,369,462                 2,219,725      1,889,877          1,203,344
Nevada                                            3,034,156              2,889,254                 2,698,343      1,823,376          1,131,312
New Hampshire                                       914,847                837,092                   916,542        985,415            562,712
New Jersey                                       14,414,778             14,384,897                13,606,950     12,802,662          9,491,417
New Mexico                                        3,102,174              3,060,637                 2,844,484      2,237,656          1,574,692
 New York                                     34,864,623              34,150,039               34,294,492      30,113,133         24,676,346
North Carolina                                   12,633,319             11,882,318                11,425,714      9,009,742          6,235,163
North Dakota                                      1,064,010                985,327                   958,725        693,007            573,465
Ohio                                             16,420,636             15,649,492                15,186,174     12,114,788          9,717,146
Oklahoma                                          5,060,601              4,617,778                 4,416,463      3,765,272          2,669,188
Oregon                                            4,946,303              4,415,725                 4,286,038      3,322,287          2,235,073
Pennsylvania                                     19,377,456             18,725,016                18,262,139     16,269,988         11,378,764
Rhode Island                                      1,644,047              1,549,195                 1,490,340      1,307,111          1,050,144
South Carolina                                    5,381,412              5,113,034                 4,763,097      3,935,500          3,158,453
South Dakota                                        768,491                730,251                   694,037        565,032            416,386
Tennessee                                         6,616,357              6,184,562                 5,907,721      4,858,098          3,603,331
Texas                                            23,024,628             21,259,072                20,288,774     17,024,494         11,227,796
Utah                                              3,010,697              2,913,960                 2,675,502      1,987,793          1,438,325
Vermont                                             899,161                841,029                   801,376        765,972            537,905
Virginia                                          9,627,591              8,900,413                 8,783,939      7,025,345          5,526,557
Washington                                       11,202,296             10,586,463                10,195,584      8,476,932          5,639,369
West Virginia                                     2,905,947              2,770,888                 2,731,907      2,351,858          1,830,168
Wisconsin                                        10,186,770              9,616,833                 9,029,488      7,389,207          5,673,577
Wyoming                                             662,350                625,966                   666,725        645,929            631,669
Source: State Tax Collections (Selected Years), U.S. Department of Commerce, Bureau of the Census.




Page 8                                                                                                                 1999 NYS Tax Sourcebook
Table 3: State Taxes by Type of Tax (Percent), Fiscal Year 1998
                                     General                Personal              Corporate   Excise & Gross   License
State                               Sales Tax            Income Tax             Income Tax    Receipts Taxes     Taxes    Other
U.S. Total                               32.90                 33.92                   6.54            15.01       6.24    5.37
Alabama                                  27.39                 31.28                   4.25            24.82       7.58    4.69
Alaska                                     (X)                   (X)                  23.25             9.85       7.95   58.95
Arizona                                  43.89                 26.81                   7.60            13.79       3.36    4.56
Arkansas                                 37.31                 34.27                   6.23            14.50       5.85    1.83
California                               31.46                 41.03                   8.25             7.69       4.63    6.93
Colorado                                 25.95                 48.85                   4.60            13.35       4.71    2.53
Connecticut                              32.27                 36.26                   5.69            17.98       3.83    3.96
Delaware                                   (X)                 38.43                  10.36            12.87     32.76     5.59
Florida                                  57.40                   (X)                   5.65            17.78       6.41   12.75
Georgia                                  34.46                 45.88                   6.38             8.62       3.42    1.24
Hawaii                                   44.88                 34.11                   1.94            15.31       2.92    0.84
Idaho                                    31.73                 37.86                   5.72            14.58       9.53    0.58
Illinois                                 28.30                 35.34                   9.92            17.78       6.11    2.55
Indiana                                  32.49                 41.70                   9.52            12.74       2.22    1.32
Iowa                                     31.83                 38.28                   4.10            14.27       9.43    2.08
Kansas                                   34.84                 37.52                   6.58            11.99       4.60    4.47
Kentucky                                 27.85                 33.99                   4.69            17.94       6.28    9.26
Louisiana                                32.58                 23.85                   5.91            20.02       7.51   10.13
Maine                                    35.06                 38.25                   4.52            13.08       5.00    4.10
Maryland                                 23.52                 45.04                   4.12            18.30       3.82    5.21
Massachusetts                            20.45                 55.44                   9.35             9.72       3.11    1.94
Michigan                                 34.91                 31.32                  10.86             8.89       5.09    8.94
Minnesota                                28.20                 41.29                   6.55            14.69       7.61    1.68
Mississippi                              46.85                 19.50                   5.62            19.47       6.85    1.70
Missouri                                 31.96                 41.01                   4.35            14.25       6.99    1.44
Montana                                    (X)                 35.33                   6.79            20.34     11.46    26.08
Nebraska                                 34.93                 36.99                   5.40            15.11       6.42    1.16
Nevada                                   54.89                   (X)                    (X)            30.04     10.41     4.67
New Hampshire                              (X)                  6.13                  23.42            49.38     12.37     8.71
New Jersey                               30.54                 35.83                   7.55            18.48       4.83    2.77
New Mexico                               40.70                 22.35                   5.04            13.87       5.26   12.78
 New York                              21.06                  50.59                   8.65            13.30       2.67    3.73
North Carolina                           23.60                 44.16                   7.21            17.75       6.07    1.21
North Dakota                             28.67                 16.49                   7.65            27.90       7.40   11.89
Ohio                                     31.35                 39.49                   4.34            15.76       8.26    0.80
Oklahoma                                 25.06                 35.56                   4.20            12.85     14.09     8.24
Oregon                                     (X)                 68.78                   5.58            13.43     10.12     2.08
Pennsylvania                             30.60                 29.20                   7.58            16.36     10.57     5.69
Rhode Island                             29.47                 41.24                   3.91            18.90       4.91    1.58
South Carolina                           38.06                 36.73                   3.76            12.87       7.12    1.46
South Dakota                             53.08                   (X)                   4.59            26.25     12.58     3.49
Tennessee                                57.57                  2.30                   8.68            18.48       9.38    3.59
Texas                                    50.65                   (X)                    (X)            30.08     14.35     4.92
Utah                                     42.30                 35.81                   5.00            11.63       4.00    1.26
Vermont                                  20.31                 38.18                   4.79            23.97       6.85    5.91
Virginia                                 21.10                 51.27                   4.23            15.99       4.32    3.08
Washington                               58.52                   (X)                    (X)            15.02       4.48   21.98
West Virginia                            28.43                 28.76                   7.35            23.29       5.28    6.89
Wisconsin                                27.33                 45.27                   6.10            13.81       5.72    1.77
Wyoming                                  39.19                   (X)                    (X)             7.87       9.25   43.69
(X) Does not impose tax.
Source: "State Tax Collections" (1998), U.S. Department of Commerce, Bureau of the Census.




1999 NYS Tax Sourcebook                                                                                                   Page 9
Table 4: State Taxes Per   Rank      State                   Total State Taxes               Rank    State                  Total State Taxes
$1,000 Personal Income,              U.S. Average                       $70.40              26       Iowa                              $72.64
Fiscal Year 1998           1         New Mexico                         107.35              27       Nevada                             72.50
                           2         Hawaii                             104.21              28       Indiana                            71.70
                           3         Delaware                            95.23              29       Vermont                            70.64
                           4         Minnesota                           93.37              30       Rhode Island                       70.33
                           5         Utah                                92.06              31       Arizona                            69.37
                           6         Wisconsin                           89.13              32       Louisiana                          68.27
                           7         Michigan                            88.78              33       Nebraska                           67.18
                           8         West Virginia                       88.54              34       Pennsylvania                       66.84
                           9         Kentucky                            88.38              35        New York                         65.79
                           10        Mississippi                         87.95              36       Ohio                               65.16
                           11        Maine                               87.01              37       Georgia                            64.79
                           12        Idaho                               83.36              38       Oregon                             64.26
                           13        North Dakota                        83.25              39       Missouri                           64.16
                           14        Arkansas                            82.03              40       Alabama                            64.14
                           15        North Carolina                      80.60              41       Maryland                           62.92
                           16        California                          80.04              42       Florida                            61.96
                           17        Connecticut                         79.90              43       New Jersey                         60.12
                           18        Washington                          79.67              44       Virginia                           59.82
                           19        Oklahoma                            79.06              45       Illinois                            59.51
                           20        Wyoming                             78.88              46       Tennessee                          57.28
                           21        Alaska                              78.05              47       Colorado                           56.09
                           22        Montana                             76.92              48       Texas                              53.58
                           23        Massachusetts                       75.89              49       South Dakota                       53.33
                           24        Kansas                              74.59              50       New Hampshire                      30.93
                           25        South Carolina                      73.19
                            Source: Calculated as FY 1998 total taxes divided by 1997 personal income from "State Tax Collections" (1998), and
                            "Survey of Current Business" (October 1998), respectively, U.S. Department of Commerce, Bureaus of the Census
                            & Economic Analysis.




Page 10                                                                                                        1999 NYS Tax Sourcebook
Table 5: State Taxes Per $1,000 Personal Income, Selected Fiscal Years
                                                                                                               Rank       Rank        Rank        Rank        Rank
State                              1997            1996              1995            1992           1987       1997        1996       1995         1992       1987
U.S. Average                     $68.64          $68.40           $69.76           $68.09         $68.14
Alaska                           109.33          104.31           136.05           133.41         105.78           1          1           1           1          1
Hawaii                           102.69          103.72           101.56           112.69         105.39           2          2           2           2          2
New Mexico                        96.29            99.43          100.38            98.73          90.93           3          3           3           3          5
Minnesota                         93.89            90.57            89.02           87.88          84.71           4          4           6           6          7
Kentucky                          88.69            89.21            91.59           87.56          81.36           5          6           4           7         11
West Virginia                     87.65            86.59            88.68           91.32          86.89           6          7           7           5          6
Delaware                          86.75            90.01            90.38           94.66          91.98           7          5           5           4          4
Michigan                          84.93            83.33            82.64           64.54          70.26           8         10          12          35         24
Wisconsin                         84.66            83.90            84.02           77.75          83.28           9          9          10          14          8
Mississippi                       84.14            85.55            84.77           72.21          75.62          10          8           8          24         18
Idaho                             83.10            83.02            84.30           87.27          71.70          11         12           9           8         22
North Dakota                      80.86            83.04            82.51           76.19          67.53          12         11          13          18         29
Washington                        80.39            81.22            83.84           86.61          82.88          13         14          11           9          9
Arkansas                          79.37            82.35            80.48           79.21          70.94          14         13          16          12         23
Oklahoma                          78.44            75.28            75.81           78.52          63.40          15         21          23          13         36
North Carolina                    77.69            77.87            81.02           79.36          76.32          16         16          15          11         16
Maine                             77.30            75.97            76.47           77.24          82.73          17         19          21          16         10
Utah                              76.81            80.57            81.22           76.78          75.86          18         15          14          17         17
California                        76.32            75.54            74.41           72.83          76.42          19         20          24          23         15
Montana                           74.53            77.76            80.10           75.02          59.73          20         17          17          19         41
Iowa                              73.67            75.08            77.15           74.49          69.38          21         22          20          21         26
Connecticut                       73.44            74.02            75.93           70.75          68.04          22         23          22          28         28
Massachusetts                     73.31            72.40            72.90           71.80          79.05          23         26          25          25         13
South Carolina                    72.83            72.83            72.46           71.48          80.12          24         25          26          27         12
Nevada                            72.76            76.13            79.10           71.55          73.67          25         18          18          26         20
Arizona                           72.24            73.24            78.77           77.64          74.88          26         24          19          15         19
Kansas                            70.99            70.77            70.71           61.30          58.09          27         27          28          40         42
Indiana                           68.95            67.06            68.29           67.20          64.64          28         30          31          30         34
Vermont                           67.98            66.77            68.30           74.86          73.38          29         31          30          20         21
Rhode Island                      67.57            65.81            67.30           66.17          69.91          30         32          34          34         25
Nebraska                          67.30            67.59            66.53           66.97          54.86          31         28          35          31         45
Oregon                            66.91            64.18            68.10           64.52          60.87          32         35          32          36         38
Louisiana                         66.00            59.65            59.92           66.44          66.20          33         43          43          33         31
 New York                        65.70           67.52            71.95            74.21          77.95          34          29         27          22          14
Pennsylvania                      64.80            65.71            67.73           70.46          64.88          35         33          33          29         33
Georgia                           64.50            65.19            65.24           62.93          63.45          36         34          37          38         35
Wyoming                           63.87            62.38            70.12           82.99          94.48          37         38          29          10          3
Alabama                           63.75            64.07            65.93           66.47          68.66          38         36          36          32         27
Missouri                          63.36            62.53            61.97           55.49          54.44          39         37          40          46         46
Ohio                              62.66            62.34            64.18           62.32          62.47          40         39          38          39         37
Maryland                          61.43            61.05            63.65           60.30          66.26          41         40          39          41         30
Florida                           60.43            60.05            61.11           57.16          55.63          42         42          41          42         44
Illinois                          58.31            57.26            58.89           56.26          56.72          43         44          44          44         43
New Jersey                        57.59            60.17            60.62           64.28          65.72          44         41          42          37         32
Virginia                          57.20            55.58            58.44           55.65          59.93          45         45          45          45         40
Tennessee                         56.67            55.38            57.14           55.43          60.17          46         46          46          47         39
Texas                             54.02            53.06            54.75           56.97          48.44          47         47          47          43         49
Colorado                          53.84            52.53            54.57           54.05          50.75          48         48          48          48         47
South Dakota                      50.22            52.23            50.65           49.99          49.56          49         49          49          49         48
New Hampshire                     29.57            28.37            33.46           35.62          32.18          50         50          50          50         50
Source: Calculated as FY total taxes divided by prior year personal income from State Government Finances (Selected Years), and Survey of Current Business
(Selected Years), respectively, U.S. Department of Commerce, Bureaus of the Census & Economic Analysis.




1999 NYS Tax Sourcebook                                                                                                                                      Page 11
Table 6: State Taxes by Selected Tax Amounts Per $1,000 Personal Income, Fiscal Year 1998

                                                    General Sales                           Motor Fuel                 Personal Income
Rank      Total Tax                  Amount         Tax                        Amount       Tax (1)          Amount    Tax               Amount
          U.S. Average                $70.40        U.S. Average                $23.16      U.S. Average      $4.20    U.S. Average       $23.88
1         New Mexico                  107.35        Hawaii                        46.77     Montana           10.27    Oregon              44.20
2         Hawaii                      104.21        Washington                    46.63     Idaho               8.40   Massachusetts       42.07
3         Delaware                     95.23        New Mexico                    43.70     North Dakota        8.17   Wisconsin           40.35
4         Minnesota                    93.37        Mississippi                   41.20     Mississippi         7.87   Minnesota           38.55
5         Utah                         92.06        Nevada                        39.80     Utah                7.35   Delaware            36.59
6         Wisconsin                    89.13        Utah                          38.94     South Dakota        7.26   North Carolina      35.59
7         Michigan                     88.78        Florida                       35.57     New Mexico          7.24   Hawaii              35.55
8         West Virginia                88.54        Tennessee                     32.98     Arkansas            7.05    New York          33.28
9         Kentucky                     88.38        Michigan                      30.99     West Virginia       6.84   Maine               33.28
10        Mississippi                  87.95        Wyoming                       30.92     Nebraska            6.77   Utah                32.97
11        Maine                        87.01        Arkansas                      30.61     Wisconsin           6.76   California          32.84
12        Idaho                        83.36        Maine                         30.50     North Carolina      6.48   Idaho               31.56
13        North Dakota                 83.25        Arizona                       30.45     Tennessee           6.16   Virginia            30.67
14        Arkansas                     82.03        South Dakota                  28.31     Louisiana           5.96   Kentucky            30.04
15        North Carolina               80.60        South Carolina                27.85     Maine               5.78   Indiana             29.90
16        California                   80.04        Texas                         27.14     Nevada              5.56   Georgia             29.73
17        Connecticut                  79.90        Idaho                         26.45     Texas               5.45   Rhode Island        29.00
18        Washington                   79.67        Minnesota                     26.33     Alabama             5.44   Connecticut         28.97
19        Oklahoma                     79.06        Kansas                        25.99     Arizona             5.33   Maryland            28.34
20        Wyoming                      78.88        Connecticut                   25.79     Oklahoma            5.29   Oklahoma            28.12
21        Alaska                       78.05        California                    25.18     Missouri            5.21   Arkansas            28.11
22        Montana                      76.92        West Virginia                 25.17     Kentucky            5.14   Kansas              27.99
23        Massachusetts                75.89        Kentucky                      24.61     Kansas              5.12   Iowa                27.81
24        Kansas                       74.59        Wisconsin                     24.36     Rhode Island        4.94   Michigan            27.80
25        South Carolina               73.19        North Dakota                  23.86     Iowa                4.93   Colorado            27.40
26        Iowa                         72.64        Nebraska                      23.47     Oregon              4.91   Montana             27.18
27        Nevada                       72.50        Indiana                       23.29     Ohio                4.91   Vermont             26.97
28        Indiana                      71.70        Iowa                          23.13     Connecticut         4.85   South Carolina      26.88
29        Vermont                      70.64        Georgia                       22.33     Colorado            4.78   Missouri            26.31
30        Rhode Island                 70.33        Louisiana                     22.24     Washington          4.78   Ohio                25.74
31        Arizona                      69.37        Rhode Island                  20.72     Delaware            4.76   West Virginia       25.46
32        Louisiana                    68.27        Missouri                      20.51     Indiana             4.71   Nebraska            24.85
33        Nebraska                     67.18        Pennsylvania                  20.45     Maryland            4.63   New Mexico          24.00
34        Pennsylvania                 66.84        Ohio                          20.43     Minnesota           4.49   New Jersey          21.54
35         New York                   65.79         Oklahoma                      19.81     South Carolina      4.37   Illinois            21.03
36        Ohio                         65.16        North Carolina                19.02     Virginia            4.32   Alabama             20.06
37        Georgia                      64.79        New Jersey                    18.36     Michigan            4.26   Pennsylvania        19.52
38        Oregon                       64.26        Alabama                       17.57     Wyoming             4.19   Arizona             18.60
39        Missouri                     64.16        Illinois                      16.84     Vermont             4.14   Mississippi         17.15
40        Alabama                      64.14        Massachusetts                 15.52     Florida             4.12   Louisiana           16.28
41        Maryland                     62.92        Maryland                      14.80     Illinois            3.91   North Dakota        13.73
42        Florida                      61.96        Colorado                      14.56     New Hampshire       3.54   New Hampshire        1.90
43        New Jersey                   60.12        Vermont                       14.35     California          3.40   Tennessee            1.32
44        Virginia                     59.82         New York                   13.86       Massachusetts       3.25   Alaska                (X)
45        Illinois                     59.51        Virginia                      12.62     Georgia             3.12   Florida               (X)
46        Tennessee                    57.28        Alaska                          (X)     Pennsylvania        2.63   Nevada                (X)
47        Colorado                     56.09        Delaware                        (X)     Hawaii              2.41   South Dakota          (X)
48        Texas                        53.58        Montana                         (X)     Alaska              2.30   Texas                 (X)
49        South Dakota                 53.33        New Hampshire                   (X)     New Jersey          1.83   Washington            (X)
50        New Hampshire                30.93        Oregon                          (X)      New York          0.90    Wyoming               (X)
 (1) Does not include other taxes on motor fuel products, such as taxes on petroleum businesses.
 (X) Does not impose tax.




Page 12                                                                                                                   1999 NYS Tax Sourcebook
Table 6: State Taxes by Selected Tax Amounts Per $1,000 Personal Income, Fiscal Year 1998 (Con't)
                                                                                        Corp. License                          Income/License
          Death & Gift                             Corporate                            & Business                             & Business
 Rank     Taxes                      Amount        Income Tax               Amount      Occup. Taxes             Amount        Occup. Taxes      Amount
          U.S. Average                 $1.03       U.S. Average              $4.61      U.S. Average                $1.82      U.S. Average       $5.52
1         Connecticut                   2.37       Alaska                    18.14      Delaware                    29.00      Alaska             20.49
2         Pennsylvania                  2.30       Delaware                    9.87     Texas                        5.37      Delaware           17.73
3         Delaware                      2.14       Michigan                    9.64     Pennsylvania                 4.28      Michigan           10.56
4          New York                    1.86        New Hampshire               7.24     Louisiana                    3.56      North Dakota         8.63
5         South Dakota                  1.65       Massachusetts               7.10     South Dakota                 3.30      New Hampshire        8.38
6         Florida                       1.59       Indiana                     6.83     Tennessee                    3.17      Minnesota            8.07
7         Maine                         1.49       California                  6.60     Kentucky                     2.97      Montana              7.97
8         Kansas                        1.42       West Virginia               6.51     Ohio                         2.88      California           7.93
9         Vermont                       1.41       North Dakota                6.37     Nevada                       2.84      Massachusetts        7.46
10        Iowa                          1.38       Minnesota                   6.11     Montana                      2.80      West Virginia        7.28
11        New Hampshire                 1.32       Illinois                    5.90     Mississippi                  2.75      Indiana              7.20
12        Kentucky                      1.31       North Carolina              5.81     Alaska                       2.43      Wisconsin            7.11
13        New Jersey                    1.30        New York                  5.69      Alabama                      2.39      Illinois             6.63
14        Oklahoma                      1.21       Wisconsin                   5.44     North Dakota                 2.26      Arkansas             6.51
15        Colorado                      1.03       New Mexico                  5.41     Wisconsin                    2.14      North Carolina       6.45
16        Louisiana                     1.01       Arizona                     5.27     Missouri                     2.01      New Mexico           6.37
17        Nevada                        1.01       Montana                     5.22     Minnesota                    1.99      Idaho                6.37
18        Massachusetts                 1.00       Arkansas                    5.11     North Carolina               1.96      Mississippi          6.03
19        Montana                       0.97       Pennsylvania                5.06     Oklahoma                     1.93      Pennsylvania         6.01
20        North Carolina                0.96       Tennessee                   4.97     South Carolina               1.77       New York           5.87
21        California                    0.93       Mississippi                 4.95     Oregon                       1.72      Arizona              5.83
22        Tennessee                     0.93       Kansas                      4.91     Idaho                        1.64      Tennessee            5.60
23        Indiana                       0.92       Idaho                       4.77     Arkansas                     1.64      South Dakota         5.59
24        Maryland                      0.85       Utah                        4.61     Iowa                         1.60      Kansas               5.40
25        Rhode Island                  0.79       Connecticut                 4.55     Nebraska                     1.54      Connecticut          5.26
26        Missouri                      0.78       New Jersey                  4.54     California                   1.38      Kentucky             5.26
27        Illinois                      0.75       Kentucky                    4.14     Vermont                      1.32      Oregon               5.23
28        Texas                         0.71       Georgia                     4.14     Maine                        1.30      Utah                 5.19
29        Virginia                      0.69       Louisiana                   4.04     Rhode Island                 1.29      Maine                5.13
30        Arkansas                      0.66       Maine                       3.93     New Hampshire                1.26      Nebraska             5.01
31        Hawaii                        0.64       Nebraska                    3.63     Florida                      1.13      New Jersey           4.95
32        Arizona                       0.64       Oregon                      3.59     Washington                   1.13      Louisiana            4.74
33        Wisconsin                     0.64       Florida                     3.50     Illinois                     1.09      Vermont              4.61
34        Wyoming                       0.62       Vermont                     3.38     New Mexico                   1.03      Oklahoma             4.60
35        Utah                          0.61       Oklahoma                    3.32     Maryland                     1.02      Georgia              4.53
36        South Carolina                0.58       Iowa                        2.98     West Virginia                1.00      Florida              4.30
37        Washington                    0.55       Ohio                        2.83     Michigan                     0.95      Missouri             4.08
38        Oregon                        0.53       Missouri                    2.79     New Jersey                   0.92      Iowa                 4.01
39        Minnesota                     0.50       South Carolina              2.75     Wyoming                      0.88      South Carolina       3.98
40        Georgia                       0.47       Rhode Island                2.75     Kansas                       0.87      Ohio                 3.81
41        Nebraska                      0.47       Alabama                     2.73     Connecticut                  0.81      Alabama              3.78
42        Michigan                      0.45       Maryland                    2.59     Utah                         0.68      Rhode Island         3.63
43        Mississippi                   0.43       Colorado                    2.58     Hawaii                       0.68      Maryland             3.53
44        Ohio                          0.42       Virginia                    2.53     Virginia                     0.65      Virginia             3.07
45        Alabama                       0.40       South Dakota                2.45     Arizona                      0.62      Colorado             2.97
46        West Virginia                 0.39       Hawaii                      2.03     Georgia                      0.58      Hawaii               2.62
47        North Dakota                  0.36       Nevada                       (X)     Massachusetts                0.47      Nevada               2.46
48        New Mexico                    0.36       Texas                        (X)     Colorado                     0.43      Washington           1.05
49        Alaska                        0.36       Washington                   (X)     Indiana                      0.41      Texas                1.01
50        Idaho                         0.35       Wyoming                      (X)      New York                   0.28       Wyoming              0.33
 Source: Calculated as FY 1998 taxes divided by 1997 personal income from "State Government Finances" (1998), and "Survey of Current Business"
 (October 1998), respectively, U.S. Department of Commerce, Bureaus of the Census & Economic Analysis.




1999 NYS Tax Sourcebook                                                                                                                          Page 13
Table 7: State Taxes Per   Rank      State                   Total State Taxes             Rank    State                 Total State Taxes
Capita, Fiscal Year 1998             U.S. Average                    $1,762.10            26       Idaho                         $1,674.03
                           1         Connecticut                      2,869.15            27       West Virginia                  1,663.16
                           2         Delaware                         2,663.27            28       Indiana                        1,652.39
                           3         Hawaii                           2,662.40            29       Illinois                       1,641.45
                           4         Minnesota                        2,434.69            30       Vermont                        1,620.40
                           5         Massachusetts                    2,357.00            31       Arkansas                       1,598.34
                           6         Michigan                         2,209.71            32       Oklahoma                       1,583.76
                           7         Wisconsin                        2,134.33            33       Nebraska                       1,583.41
                           8         Washington                       2,075.26            34       Mississippi                    1,578.28
                           9         California                       2,072.84            35       Ohio                           1,573.99
                           10        New Mexico                       2,057.88            36       Virginia                       1,552.49
                           11         New York                      1,989.25              37       Oregon                         1,523.18
                           12        Alaska                           1,931.98            38       Georgia                        1,516.55
                           13        New Jersey                       1,922.98            39       Montana                        1,513.52
                           14        Maine                            1,905.00            40       Missouri                       1,511.73
                           15        Nevada                           1,847.86            41       Florida                        1,509.33
                           16        North Carolina                   1,837.98            42       Arizona                        1,488.39
                           17        Utah                             1,827.65            43       Colorado                       1,485.36
                           18        Kentucky                         1,807.71            44       South Carolina                 1,481.53
                           19        Rhode Island                     1,805.58            45       Louisiana                      1,392.09
                           20        Maryland                         1,789.77            46       Alabama                        1,317.58
                           21        Wyoming                          1,779.04            47       Tennessee                      1,288.18
                           22        Kansas                           1,767.94            48       Texas                          1,246.41
                           23        Pennsylvania                     1,718.98            49       South Dakota                   1,129.62
                           24        North Dakota                     1,690.24            50       New Hampshire                    851.07
                           25        Iowa                             1,678.03
                            Source: "State Tax Collections" (1998), U.S. Department of Commerce, Bureau of the Census.




Page 14                                                                                                      1999 NYS Tax Sourcebook
Table 8: State Taxes Per Capita, Selected Fiscal Years
                                                                                                         Rank   Rank   Rank   Rank    Rank
State                          1997            1996             1995           1992            1987      1997   1996   1995   1992    1987
U.S. Average              $1,660.36       $1,581.19        $1,522.34      $1,316.38       $1,017.11
Alaska                      2,658.64        2,502.61        3,182.89        2,812.17        2,023.60       1       2      1      1       1
Hawaii                      2,601.47        2,592.31        2,421.65        2,387.24        1,567.34       2       1      2      2       2
Connecticut                 2,491.07        2,391.63        2,282.17        1,841.18        1,357.58       3       3      3      4       6
Minnesota                   2,395.06        2,158.76        2,023.40        1,680.91        1,306.27       4       5      5      6       7
Delaware                    2,381.47        2,328.76        2,215.77        1,972.07        1,462.63       5       4      4      3       3
Massachusetts               2,174.80        2,044.22        1,909.97        1,651.64        1,445.58       6       6      6      8       4
Michigan                    2,079.58        1,993.82        1,856.06        1,204.01        1,071.43       7       7      9     28      16
Washington                  1,996.84        1,913.33        1,877.29        1,689.30        1,242.70       8       8      8      5      10
Wisconsin                   1,970.36        1,863.73        1,762.54        1,491.26        1,180.27       9      10     11     11      12
 New York                 1,922.29        1,877.92        1,890.96        1,667.58       1,384.37         10       9      7      7       5
California                  1,911.08        1,811.49        1,686.32        1,579.10        1,293.81      11      11     14     10       8
Nevada                      1,809.28        1,802.40        1,763.62        1,420.07        1,123.45      12      12     10     13      14
New Mexico                  1,793.16        1,786.71        1,688.12        1,445.51        1,049.79      13      14     13     12      18
New Jersey                  1,789.99        1,800.81        1,712.64        1,649.83        1,237.15      14      13     12      9      11
Kentucky                    1,744.88        1,670.77        1,628.14        1,368.43          944.57      15      15     15     15      24
North Carolina              1,701.46        1,622.60        1,588.01        1,337.35          972.27      16      16     17     21      21
Maryland                    1,689.13        1,610.15        1,598.77        1,337.96        1,147.63      17      17     16     20      13
Rhode Island                1,665.70        1,564.84        1,505.39        1,301.90        1,065.05      18      18     20     23      17
North Dakota                1,659.92        1,530.01        1,495.67        1,091.35          853.37      19      23     21     41      33
Iowa                        1,643.20        1,556.99        1,549.41        1,293.90          939.35      20      20     18     24      25
Kansas                      1,629.95        1,546.95        1,468.03        1,122.92          842.28      21      22     25     35      34
Maine                       1,626.00        1,525.80        1,460.58        1,352.62        1,085.49      22      24     26     17      15
Idaho                       1,620.25        1,561.82        1,490.21        1,343.61          831.36      23      19     23     19      35
Pennsylvania                1,612.10        1,553.17        1,512.77        1,360.25          953.31      24      21     19     16      23
West Virginia               1,600.19        1,517.46        1,494.48        1,305.86          953.71      25      25     22     22      22
Illinois                    1,558.89        1,458.37        1,402.35        1,166.37          900.49      26      27     27     31      29
Indiana                     1,551.99        1,444.45        1,386.48        1,241.20          863.17      27      30     30     27      30
Nebraska                    1,537.82        1,434.30        1,355.97        1,186.36          754.92      28      31     36     29      44
Vermont                     1,526.59        1,427.89        1,369.87        1,350.92          981.58      29      33     32     18      20
Oklahoma                    1,525.66        1,398.90        1,347.30        1,185.91          815.77      30      37     37     30      38
Oregon                      1,525.22        1,378.19        1,364.55        1,136.99          820.51      31      39     34     33      36
Arizona                     1,500.29        1,447.47        1,475.46        1,287.13        1,024.65      32      29     24     25      19
Arkansas                    1,496.86        1,477.59        1,365.45        1,158.64          791.07      33      26     33     32      39
Mississippi                 1,470.72        1,422.14        1,334.54          962.34          740.34      34      34     38     48      46
Ohio                        1,467.96        1,400.65        1,361.87        1,107.49          901.07      35      35     35     37      28
Utah                        1,462.21        1,456.98        1,371.35        1,123.05          856.15      36      28     31     34      31
Georgia                     1,455.72        1,399.75        1,317.41        1,097.23          855.62      37      36     40     39      32
Missouri                    1,446.87        1,362.22        1,268.21          994.84          772.54      38      41     43     45      43
Florida                     1,438.52        1,368.00        1,311.82        1,092.43          818.95      39      40     41     40      37
Montana                     1,432.57        1,429.37        1,395.58        1,280.79          730.53      40      32     28     26      47
South Carolina              1,431.23        1,382.27        1,296.79        1,105.48          922.18      41      38     42     38      27
Virginia                    1,429.70        1,333.40        1,327.28        1,117.62          936.07      42      42     39     36      26
Wyoming                     1,379.90        1,301.38        1,389.01        1,404.19        1,289.12      43      43     29     14       9
Colorado                    1,358.80        1,260.83        1,208.87        1,045.81          777.15      44      44     44     42      41
Louisiana                   1,297.39        1,127.62        1,077.15          999.59          773.06      45      47     48     44      42
Alabama                     1,269.78        1,230.46        1,193.94        1,031.53          789.17      46      45     45     43      40
Tennessee                   1,232.56        1,162.51        1,124.00          980.84          742.19      47      46     46     47      45
Texas                       1,184.46        1,111.41        1,083.57          981.30          668.76      48      48     47     46      48
South Dakota                1,041.32          997.61          952.04          803.74          587.29      49      49     49     50      49
New Hampshire                 779.92          720.39          798.38          891.78          532.37      50      50     50     49      50
Source: State Government Finances (Selected Years), U.S. Department of Commerce, Bureau of the Census.




1999 NYS Tax Sourcebook                                                                                                              Page 15
Table 9: State Taxes by Selected Tax Amounts Per Capita, Fiscal Year 1998

                                                    General Sales                           Motor Fuel                 Personal Income
Rank      Total Tax                   Amount        Tax                        Amount       Tax (1)          Amount    Tax                  Amount
          U.S. Average             $1,762.10        U.S. Average               $579.77      U.S. Average     $105.01   U.S. Average        $597.72
1         Connecticut                2,869.15       Washington                1,214.49      Montana           202.16   Massachusetts       1,306.64
2         Delaware                   2,663.27       Hawaii                    1,194.76      Connecticut       174.06   Oregon              1,047.71
3         Hawaii                     2,662.40       Nevada                    1,014.28      Idaho             168.67   Connecticut         1,040.29
4         Minnesota                  2,434.69       Connecticut                 925.99      North Dakota      165.93   Delaware            1,023.45
5         Massachusetts              2,357.00       Florida                     866.43      Wisconsin         161.85    New York         1,006.28
6         Michigan                   2,209.71       New Mexico                  837.60      Nebraska          159.68   Minnesota           1,005.25
7         Wisconsin                  2,134.33       Utah                        773.03      South Dakota      153.88   Wisconsin             966.22
8         Washington                 2,075.26       Michigan                    771.40      North Carolina    147.67   Hawaii                908.12
9         California                 2,072.84       Tennessee                   741.63      Utah              145.99   California            850.53
10        New Mexico                 2,057.88       Mississippi                 739.39      Nevada            141.83   North Carolina        811.65
11         New York                1,989.25         Wyoming                     697.26      Mississippi       141.22   Maryland              806.07
12        Alaska                     1,931.98       Minnesota                   686.48      New Mexico        138.71   Virginia              795.98
13        New Jersey                 1,922.98       Maine                       667.81      Tennessee         138.51   Rhode Island          744.57
14        Maine                      1,905.00       Arizona                     653.27      Arkansas          137.33   Maine                 728.60
15        Nevada                     1,847.86       California                  652.09      Delaware          133.05   Colorado              725.65
16        North Carolina             1,837.98       Texas                       631.28      Maryland          131.77   Georgia               695.81
17        Utah                       1,827.65       Kansas                      615.92      West Virginia     128.47   Michigan              691.98
18        Kentucky                   1,807.71       South Dakota                599.66      Rhode Island      126.90   Indiana               689.11
19        Rhode Island               1,805.58       Arkansas                    596.40      Texas             126.82   New Jersey            688.92
20        Maryland                   1,789.77       New Jersey                  587.33      Colorado          126.68   Kansas                663.36
21        Wyoming                    1,779.04       Wisconsin                   583.35      Maine             126.47   Utah                  654.54
22        Kansas                     1,767.94       South Carolina              563.83      Washington        124.48   Iowa                  642.38
23        Pennsylvania               1,718.98       Nebraska                    553.07      Missouri          122.83   Idaho                 633.77
24        North Dakota               1,690.24       Indiana                     536.82      Louisiana         121.53   Ohio                  621.63
25        Iowa                       1,678.03       Iowa                        534.18      Kansas            121.30   Missouri              619.91
26        Idaho                      1,674.03       Rhode Island                532.06      Ohio              118.50   Vermont               618.64
27        West Virginia              1,663.16       Idaho                       531.20      Minnesota         117.20   Kentucky              614.37
28        Indiana                    1,652.39       Pennsylvania                526.04      Oregon            116.45   Nebraska              585.63
29        Illinois                   1,641.45       Georgia                     522.57      Arizona           114.45   Illinois              580.07
30        Vermont                    1,620.40       Kentucky                    503.38      Iowa              113.81   Oklahoma              563.26
31        Arkansas                   1,598.34       Ohio                        493.46      Virginia          112.02   Arkansas              547.80
32        Oklahoma                   1,583.76       North Dakota                484.54      Alabama           111.69   South Carolina        544.18
33        Nebraska                   1,583.41       Missouri                    483.15      Indiana           108.46   Montana               534.79
34        Mississippi                1,578.28       Massachusetts               481.95      Illinois          107.98   Pennsylvania          502.03
35        Ohio                       1,573.99       West Virginia               472.82      Michigan          106.07   West Virginia         478.25
36        Virginia                   1,552.49       Illinois                    464.59      Oklahoma          106.02   New Mexico            459.99
37        Oregon                     1,523.18       Louisiana                   453.47      Kentucky          105.21   Alabama               412.12
38        Georgia                    1,516.55       North Carolina              433.71      Massachusetts     101.07   Arizona               399.06
39        Montana                    1,513.52       Maryland                    420.88      Florida           100.34   Louisiana             332.07
40        Missouri                   1,511.73        New York                  419.00       New Hampshire      97.42   Mississippi           307.80
41        Florida                    1,509.33       Oklahoma                    396.86      Vermont            95.07   North Dakota          278.80
42        Arizona                    1,488.39       Colorado                    385.50      Wyoming            94.43   New Hampshire          52.15
43        Colorado                   1,485.36       Alabama                     360.90      South Carolina     88.42   Tennessee              29.61
44        South Carolina             1,481.53       Vermont                     329.10      California         88.02   Alaska                   (X)
45        Louisiana                  1,392.09       Virginia                    327.64      Georgia            73.01   Florida                  (X)
46        Alabama                    1,317.58       Alaska                         (X)      Pennsylvania       67.59   Nevada                   (X)
47        Tennessee                  1,288.18       Delaware                       (X)      Hawaii             61.69   South Dakota             (X)
48        Texas                      1,246.41       Montana                        (X)      New Jersey         58.68   Texas                    (X)
49        South Dakota               1,129.62       New Hampshire                  (X)      Alaska             56.83   Washington               (X)
50        New Hampshire                851.07       Oregon                         (X)       New York         27.21    Wyoming                  (X)
 (1) Does not include other taxes on motor fuel products, such as taxes on petroleum businesses.
 (X) Does not impose tax.




Page 16                                                                                                                   1999 NYS Tax Sourcebook
Table 9: State Taxes by Selected Tax Amounts Per Capita, Fiscal Year 1998 (Con't)
                                                                                       Corp. License              Income/License
          Death & Gift                          Corporate                              & Business                 & Business
 Rank     Taxes                   Amount        Income Tax              Amount         Occup. Taxes     Amount    Occup. Taxes     Amount
          U.S. Average             $25.73       U.S. Average            $115.31        U.S. Average      $45.64   U.S. Average     $138.22
1         Connecticut               85.21       Alaska                   449.12        Delaware          811.09   Alaska            507.09
2         Delaware                  59.98       Delaware                 275.91        Texas             124.94   Delaware          495.83
3         Pennsylvania              59.24       Michigan                 239.87        Pennsylvania      110.16   Michigan          262.74
4          New York                56.24        Massachusetts            220.42        Louisiana          72.69   Massachusetts     231.60
5         New Jersey                41.61       New Hampshire            199.32        Nevada             72.45   New Hampshire     230.53
6         Florida                   38.72        New York              172.08          Tennessee          71.26   Minnesota         210.37
7         New Hampshire             36.35       California               171.05        South Dakota       69.85   California        205.45
8         South Dakota              34.95       Connecticut              163.39        Ohio               69.48   Connecticut       188.92
9         Kansas                    33.72       Illinois                 162.85        Kentucky           60.66   Illinois          182.81
10        Maine                     32.59       Minnesota                159.40        Alaska             60.24    New York        177.38
11        Vermont                   32.41       Indiana                  157.35        Montana            55.10   North Dakota      175.31
12        Iowa                      31.78       New Jersey               145.17        Minnesota          51.96   Wisconsin         170.22
13        Massachusetts             31.13       North Carolina           132.49        Wisconsin          51.33   Indiana           165.89
14        Colorado                  27.28       Wisconsin                130.29        Mississippi        49.34   New Jersey        158.37
15        Kentucky                  26.81       Pennsylvania             130.23        Alabama            49.03   Montana           156.88
16        Nevada                    25.64       North Dakota             129.38        Missouri           47.24   Pennsylvania      154.56
17        Oklahoma                  24.32       West Virginia            122.32        North Dakota       45.93   North Carolina    147.18
18        Maryland                  24.30       Kansas                   116.36        North Carolina     44.79   West Virginia     136.74
19        California                24.10       Arizona                  113.10        Oregon             40.71   Kansas            128.04
20        North Carolina            21.86       Tennessee                111.84        Oklahoma           38.69   Idaho             127.85
21        Indiana                   21.14       New Mexico               103.64        Iowa               37.06   Arkansas          126.83
22        Tennessee                 20.83       Montana                  102.79        Nebraska           36.22   Tennessee         125.93
23        Illinois                  20.79       Arkansas                  99.63        South Carolina     35.79   Arizona           125.00
24        Louisiana                 20.55       Georgia                   96.80        California         35.73   Oregon            123.97
25        Rhode Island              20.35       Idaho                     95.76        New Hampshire      34.63   New Mexico        122.08
26        Montana                   19.16       Utah                      91.46        Rhode Island       33.16   South Dakota      118.49
27        Missouri                  18.26       Mississippi               88.77        Idaho              32.99   Nebraska          118.06
28        Virginia                  18.01       Maine                     86.11        Arkansas           31.99   Maine             112.34
29        Texas                     16.54       Nebraska                  85.48        Vermont            30.19   Mississippi       108.13
30        Hawaii                    16.47       Florida                   85.23        Illinois           30.15   Kentucky          107.54
31        Wisconsin                 15.34       Oregon                    85.07        New Jersey         29.46   Georgia           105.98
32        Washington                14.45       Kentucky                  84.77        Washington         29.41   Vermont           105.79
33        Wyoming                   13.88       Louisiana                 82.29        Maryland           29.02   Florida           104.65
34        Arizona                   13.81       Vermont                   77.64        Connecticut        28.95   Utah              103.06
35        Minnesota                 13.04       Maryland                  73.75        Maine              28.51   Maryland          100.27
36        Arkansas                  12.88       Rhode Island              70.56        Florida            27.52   Louisiana          96.61
37        Oregon                    12.49       Iowa                      68.78        Michigan           23.61   Missouri           96.15
38        Utah                      12.10       Ohio                      68.33        Kansas             20.70   Rhode Island       93.26
39        South Carolina            11.75       Colorado                  68.28        Wyoming            19.89   Iowa               92.74
40        Michigan                  11.24       Oklahoma                  66.51        New Mexico         19.83   Oklahoma           92.13
41        Georgia                   11.10       Missouri                  65.80        West Virginia      18.78   Ohio               92.11
42        Nebraska                  10.96       Virginia                  65.62        Hawaii             17.28   South Carolina     80.57
43        Ohio                      10.24       Alabama                   56.02        Virginia           16.97   Virginia           79.57
44        Alaska                      8.90      South Carolina            55.69        Massachusetts      14.55   Colorado           78.52
45        Alabama                     8.18      South Dakota              51.86        Georgia            13.63   Alabama            77.70
46        Mississippi                 7.67      Hawaii                    51.76        Utah               13.55   Hawaii             66.96
47        North Dakota                7.38      Nevada                       (X)       Arizona            13.29   Nevada             62.69
48        West Virginia               7.29      Texas                        (X)       Colorado           11.40   Washington         27.23
49        Idaho                       7.02      Washington                   (X)       Indiana             9.37   Texas              23.49
50        New Mexico                  6.95      Wyoming                      (X)        New York          8.40    Wyoming             7.52
 Source: "State Government Finances" (1998), U.S. Department of Commerce, Bureau of the Census.




1999 NYS Tax Sourcebook                                                                                                            Page 17
Table 10: State & Local Taxes ($000), Fiscal Year 1996
State                                 State & Local Taxes                  State Taxes             Percent         Local Taxes       Percent
U.S. Total                                  $689,038,310                  $418,390,240                   61       $270,601,514            39
Alabama                                        $7,631,749                     5,257,771                  69          2,373,978            31
Alaska                                         $2,301,362                     1,519,082                  66            782,280            34
Arizona                                      $10,162,502                      6,409,395                  63          3,753,107            37
Arkansas                                       $4,850,646                     3,702,141                  76          1,148,258            24
California                                   $86,214,692                    57,746,664                   67         28,468,028            33
Colorado                                       $9,243,842                     4,820,760                  52          4,422,861            48
Connecticut                                  $12,542,970                      7,830,171                  62          4,712,798            38
Delaware                                       $2,046,282                     1,683,861                  82            362,421            18
Florida                                      $33,556,992                    19,728,262                   59         13,828,730            41
Georgia                                      $17,308,761                    10,292,371                   59          7,016,390            41
Hawaii                                         $3,841,518                     3,079,404                  80            762,114            20
Idaho                                          $2,541,913                     1,857,006                  73            687,257            27
Illinois                                     $32,659,629                    17,508,290                   54         15,105,003            46
Indiana                                      $12,979,690                      8,437,031                  65          4,542,659            35
Iowa                                           $6,982,600                     4,440,540                  64          2,542,060            36
Kansas                                         $6,372,806                     3,978,761                  62          2,394,044            38
Kentucky                                       $8,413,338                     6,489,256                  77          1,924,082            23
Louisiana                                      $8,465,583                     4,906,283                  58          3,559,300            42
Maine                                          $3,231,340                     1,896,564                  59          1,334,829            41
Maryland                                     $14,131,690                      8,166,692                  58          5,964,998            42
Massachusetts                                $19,122,967                    12,455,370                   65          6,667,597            35
Michigan                                     $24,827,513                    18,699,069                   75          6,128,444            25
Minnesota                                    $14,569,258                    10,242,646                   70          4,326,612            30
Mississippi                                    $5,143,266                     3,860,523                  75          1,282,527            25
Missouri                                     $11,687,365                      7,210,351                  62          4,477,014            38
Montana                                        $1,782,111                     1,211,162                  68            570,949            32
Nebraska                                       $4,181,433                     2,369,462                  57          1,811,971            43
Nevada                                         $4,266,098                     2,895,346                  68          1,370,752            32
New Hampshire                                  $2,618,777                       837,092                  32          1,781,685            68
New Jersey                                   $27,449,365                    14,384,897                   52         13,064,464            48
New Mexico                                     $3,877,212                     3,060,637                  79            815,537            21
 New York                                  $72,495,173                    34,150,039                    47        38,345,134             53
North Carolina                               $16,486,228                    11,882,318                   72          4,603,910            28
North Dakota                                   $1,441,147                       985,327                  68            455,816            32
Ohio                                         $27,961,467                    15,649,492                   56         12,311,975            44
Oklahoma                                       $6,558,470                     4,617,688                  70          1,940,782            30
Oregon                                         $7,238,030                     4,351,035                  60          2,886,995            40
Pennsylvania                                 $30,279,954                    18,295,012                   60         11,984,942            40
Rhode Island                                   $2,710,669                     1,553,930                  57          1,156,739            43
South Carolina                                 $7,328,128                     5,113,034                  70          2,215,094            30
South Dakota                                   $1,438,656                       730,251                  51            708,004            49
Tennessee                                      $9,992,441                     6,179,787                  62          3,812,635            38
Texas                                        $40,704,628                    21,611,887                   53         19,092,625            47
Utah                                           $4,293,575                     2,905,128                  68          1,388,447            32
Vermont                                        $1,517,681                       841,029                  55            676,657            45
Virginia                                     $15,626,510                      8,900,413                  57          6,725,737            43
Washington                                   $15,466,559                    10,586,463                   68          4,880,096            32
West Virginia                                  $3,642,757                     2,764,522                  76            878,235            24
Wisconsin                                    $15,205,413                      9,585,513                  63          5,619,900            37
Wyoming                                        $1,164,841                       710,512                  61            454,329            39
Source: "State & Local Government Finance Estimates" (1996), U.S. Department of Commerce, Bureau of the Census.




Page 18                                                                                                               1999 NYS Tax Sourcebook
Table 11: State & Local Taxes by Level of Government (Percent), Selected Fiscal Years
                                    1995                         1994                       1993                  1992                   1987
State                         State       Local            State       Local         State       Local    State          Local   State          Local
U.S. Total                       60          40               60         40             60          40       59            41       61            39
Alabama                          70          30               71         29             71          29       71            29       73            27
Alaska                           71          29               63         37             76          24       71            29       64            36
Arizona                          64          36               64         36             64          36       62            38       64            36
Arkansas                         77          23               77         23             76          24       76            24       76            24
California                       66          34               66         34             65          35       64            36       67            33
Colorado                         52          48               51         49             51          49       50            50       49            51
Connecticut                      62          38               61         39             61          39       60            40       61            39
Delaware                         82          18               82         18             82          18       83            17       83            17
Florida                          58          42               58         42             59          41       56            44       60            40
Georgia                          59          41               59         41             59          41       59            41       62            38
Hawaii                           79          21               80         20             79          21       80            20       80            20
Idaho                            72          28               72         28             72          28       74            26       71            29
Illinois                         54          46               54         46             53          47       53            47       55            45
Indiana                          63          37               61         39             63          37       64            36       66            34
Iowa                             63          37               64         36             63          37       63            37       61            39
Kansas                           62          38               62         38             61          39       57            43       56            44
Kentucky                         78          23               77         23             77          23       77            23       78            22
Louisiana                        59          41               59         41             60          40       60            40       63            37
Maine                            59          41               61         39             62          38       63            37       67            33
Maryland                         58          42               57         43             56          44       57            43       60            40
Massachusetts                    64          36               64         36             65          35       65            35       69            31
Michigan                         76          24               59         41             57          43       55            45       60            40
Minnesota                        68          32               69         31             67          33       67            33       69            31
Mississippi                      75          25               75         25             74          26       72            28       75            25
Missouri                         59          41               60         40             61          39       59            41       62            38
Montana                          68          32               69         31             72          28       71            29       53            47
Nebraska                         57          43               58         42             58          42       58            42       52            48
Nevada                           69          31               69         31             69          31       67            33       69            31
New Hampshire                    35          65               34         66             38          62       35            65       38            62
New Jersey                       52          48               53         47             54          46       56            44       59            41
New Mexico                       79          21               79         21             79          21       79            21       80            20
 New York                       48           52              48          52            47          53       47             53      50             50
North Carolina                   72          28               71         29             71          29       73            27       71            29
North Dakota                     69          31               68         32             68          32       67            33       67            33
Ohio                             57          43               58         42             56          44       57            43       60            40
Oklahoma                         70          30               71         29             71          29       72            28       67            33
Oregon                           59          41               58         42             56          44       53            47       45            55
Pennsylvania                     61          39               61         39             61          39       62            38       61            39
Rhode Island                     57          43               58         42             60          40       58            42       62            38
South Carolina                   67          33               68         32             68          32       69            31       75            25
South Dakota                     50          50               50         50             49          51       51            49       49            51
Tennessee                        63          37               63         37             65          35       61            39       64            36
Texas                            52          48               52         48             52          48       52            48       50            50
Utah                             67          33               66         34             66          34       65            35       63            37
Vermont                          55          45               58         42             58          42       59            41       60            40
Virginia                         58          42               57         43             56          44       55            45       60            40
Washington                       69          31               70         30             70          30       71            29       73            27
West Virginia                    76          24               76         24             78          22       78            22       78            22
Wisconsin                        62          38               61         39             62          38       64            36       66            34
Wyoming                          59          41               62         38             61          39       59            41       56            44
Source: Government Finances (Selected Fiscal Years), U.S. Department of Commerce, Bureau of the Census.




1999 NYS Tax Sourcebook                                                                                                                    Page 19
Table 12: State & Local Taxes Per $1,000 Personal Income, Fiscal Year 1996
                                         State &                                                   State                                                  Local
Rank      State                    Local Taxes             Rank    State                          Taxes            Rank     State                        Taxes
          U.S. Average                  $112.99                    U.S. Average                  $68.61                     U.S. Average                $44.38
1         Alaska                         158.85           1        Hawaii                        105.52           1         New York                    76.39
2         New York                      144.42            2        Alaska                        104.85           2         New Hampshire                60.64
3         Wisconsin                      133.33           3        New Mexico                      99.74          3         New Jersey                   55.09
4         Minnesota                      131.86           4        Minnesota                       92.70          4         Vermont                      54.50
5         Hawaii                         131.63           5        Delaware                        89.36          5         Alaska                       54.00
6         Maine                          129.48           6        Kentucky                        89.18          6         Maine                        53.49
7         New Mexico                     126.36           7        Mississippi                     85.79          7         Nebraska                     51.53
8         Vermont                        122.25           8        West Virginia                   85.50          8         Illinois                     50.62
9         Utah                           120.68           9        Idaho                           84.44          9         South Dakota                 49.61
10        North Dakota                   120.65           10       Wisconsin                       84.05          10        Wisconsin                    49.28
11        Connecticut                    120.54           11       North Dakota                    82.49          11        Colorado                     49.27
12        Washington                     119.79           12       Arkansas                        82.35          12        Ohio                         49.04
13        Nebraska                       118.92           13       Washington                      81.99          13        Rhode Island                 49.01
14        Arizona                        117.59           14       Michigan                        81.88          14        Texas                        48.08
15        Iowa                           117.45           15       Utah                            81.66          15        Wyoming                      45.74
16        Wyoming                        117.28           16       North Carolina                  78.26          16        Connecticut                  45.29
17        New Jersey                     115.74           17       Nevada                          77.58          17        Maryland                     44.92
18        Kentucky                       115.63           18       Maine                           75.99          18        Georgia                      44.82
19        Idaho                          115.58           19       California                      75.94          19        Arizona                      43.43
20        Rhode Island                   114.85           20       Oklahoma                        75.82          20        Louisiana                    43.18
21        Nevada                         114.31           21       Montana                         75.45          21        Iowa                         42.76
22        Mississippi                    114.30           22       Connecticut                     75.25          22        Kansas                       42.73
23        Kansas                         113.74           23       Iowa                            74.69          23        Oregon                       42.54
24        California                     113.38           24       Arizona                         74.17          24        Virginia                     42.39
25        West Virginia                  112.66           25       South Carolina                  73.27          25        Florida                      42.33
26        Massachusetts                  112.37           26       Massachusetts                   73.19          26        Pennsylvania                 42.14
27        Ohio                           111.38           27       Wyoming                         71.54          27        Massachusetts                39.18
28        Montana                        111.02           28       Kansas                          71.01          28        Minnesota                    39.16
29        Georgia                        110.56           29       New York                      68.03            29        Utah                         39.03
30        Illinois                       109.44           30       Indiana                         67.83          30        Missouri                     38.54
31        Michigan                       108.72           31       Vermont                         67.74          31        North Dakota                 38.16
32        Delaware                       108.60           32       Nebraska                        67.39          32        Washington                   37.80
33        North Carolina                 108.58           33       Rhode Island                    65.84          33        California                   37.44
34        Arkansas                       107.89           34       Georgia                         65.74          34        Nevada                       36.73
35        Oklahoma                       107.69           35       Alabama                         64.45          35        Indiana                      36.52
36        Oregon                         106.65           36       Pennsylvania                    64.33          36        Montana                      35.57
37        Pennsylvania                   106.47           37       Oregon                          64.11          37        Tennessee                    34.48
38        Maryland                       106.43           38       Ohio                            62.34          38        Oklahoma                     31.87
39        South Carolina                 105.01           39       Missouri                        62.08          39        South Carolina               31.74
40        Indiana                        104.35           40       Maryland                        61.50          40        Idaho                        31.25
41        Colorado                       102.97           41       New Jersey                      60.66          41        North Carolina               30.32
42        Florida                        102.73           42       Florida                         60.39          42        Alabama                      29.10
43        Louisiana                      102.71           43       Louisiana                       59.53          43        Mississippi                  28.50
44        Texas                          102.51           44       Illinois                        58.67          44        West Virginia                27.16
45        South Dakota                   100.80           45       Virginia                        56.09          45        Michigan                     26.84
46        Missouri                       100.62           46       Tennessee                       55.89          46        New Mexico                   26.58
47        Virginia                         98.48          47       Texas                           54.43          47        Kentucky                     26.44
48        Alabama                          93.55          48       Colorado                        53.70          48        Hawaii                       26.11
49        Tennessee                        90.36          49       South Dakota                    51.17          49        Arkansas                     25.54
50        New Hampshire                    89.13          50       New Hampshire                   28.49          50        Delaware                     19.23
 Source: Calculated as FY 1996 taxes divided by 1995 personal income from "State & Local Government Finance Estimates" (1996), U.S. Department of Commerce,
 Bureau of the Census.




Page 20                                                                                                                          1999 NYS Tax Sourcebook
Table 13: State & Local Taxes Per $1,000 Personal Income, Selected Fiscal Years
                                                                                                            Rank          Rank        Rank        Rank        Rank
State                         1995            1994              1993            1992          1987          1995           1994       1993         1992       1987
U.S. Average               $116.94         $113.94           $112.83         $115.57        $111.42
Alaska                      189.92          143.55            228.10          187.66         165.28             1             2           1           1          2
New York                  152.55           151.12           147.40           157.71         156.11              2             1           2           2          3
Wisconsin                   136.66          134.55            131.05          130.61         126.12             3             4           4           6          6
Minnesota                   135.88          127.53            127.53          130.72         123.50             4             8           5           5          7
New Mexico                  128.51          129.15            126.99          124.81         113.29             5             6           6           9         15
Hawaii                      128.10          135.75            132.22          141.08         131.46             6             3           3           3          5
Connecticut                 126.95          116.85            117.58          117.18         111.06             7            17          15          17         21
Maine                       126.67          126.68            126.62          128.72         123.03             8             9           8           7          8
Arizona                     123.84          120.62            122.33          124.62         116.53             9            12          10          10         11
Vermont                     123.82          128.10            126.76          128.06         121.91            10             7           7           8          9
Washington                  123.00          119.21            115.64          122.17         113.19            11            13          16          11         16
Iowa                        122.75          123.96            119.44          118.10         113.01            12            10          11          15         17
Utah                        122.60          118.96            118.38          119.00         120.47            13            14          13          14         10
Rhode Island                120.39          114.06            115.08          116.37         112.92            14            21          17          19         18
Kentucky                    119.36          112.50            109.73          113.54         104.26            15            23          27          26         33
Delaware                    119.26          105.55            101.32          114.31         110.17            16            39          45          23         23
New Jersey                  119.02          116.73            114.46          114.88         111.52            17            18          18          20         20
North Dakota                117.81          118.64            113.76          100.08         100.93            18            15          20          46         39
Massachusetts               117.00          111.73            108.77          111.00         115.13            19            27          31          27         13
Wyoming                     116.70          129.22            124.58          139.51         168.08            20             5           9           4          1
Montana                     116.19          112.35            114.27          114.83         111.72            21            25          19          21         19
Nebraska                    116.14          116.15            111.05          114.64         106.13            22            19          23          22         28
Ohio                        115.69          108.59            105.93          109.76         104.65            23            32          36          30         31
California                  115.56          107.59            110.45          113.80         113.75            24            35          24          24         14
Idaho                       115.00          113.32            113.01          119.09         101.64            25            22          21          13         37
North Carolina              114.87          111.48            109.86          109.19         106.98            26            28          26          32         26
Oregon                      114.82          117.25            118.15          121.47         134.30            27            16          14          12          4
West Virginia               114.74          112.49            112.23          116.61         110.84            28            24          22          18         22
Kansas                      114.61          115.14            109.39          108.08         103.98            29            20          28          34         34
Mississippi                 113.65          111.81            109.31          100.12         101.04            30            26          29          45         38
Nevada                      113.18          110.11            108.84          106.81         106.33            31            29          30          38         27
Georgia                     111.91          109.41            107.82          107.12         101.73            32            31          33          36         36
Maryland                    111.79          110.06            109.89          106.34         109.92            33            30          25          39         24
Pennsylvania                111.77          107.61            108.06          113.76         105.76            34            34          32          25         29
Illinois                    111.67          107.58            105.25          107.02         103.94            35            36          37          37         35
Michigan                    111.28          120.76            118.94          117.39         116.43            36            11          12          16         12
Oklahoma                    110.61          106.36            106.40          106.21          94.70            37            37          34          40         44
Indiana                     109.59          108.15            103.11          109.44          97.67            38            33          42          31         42
South Carolina              108.78          105.59            106.39          103.66         107.11            39            38          35          42         25
Colorado                    107.13          103.42            102.75          107.30         104.62            40            42          43          35         32
Texas                       106.76          104.93            104.76          109.83          96.27            41            40          38          29         43
Arkansas                    106.27          103.16            101.58          104.71          92.96            42            43          44          41         47
Florida                     105.62          104.26            103.84          102.79          92.72            43            41          40          43         48
Missouri                    105.37           94.98             90.36           93.50          87.85            44            48          50          50         49
Louisiana                   105.03          100.58            103.18          110.62         105.07            45            45          41          28         30
Virginia                    103.58           98.25             98.58          100.48          99.12            46            46          46          44         41
South Dakota                 98.58          102.54             97.67           98.04         100.75            47            44          47          47         40
New Hampshire                96.68           96.85            104.45          108.60          83.96            48            47          39          33         50
Alabama                      96.34           92.15             93.04           93.56          94.63            49            50          49          49         45
Tennessee                    93.51           93.17             94.94           94.62          93.71            50            49          48          48         46
Source: Calculated as FY total taxes divided by prior year personal income from State Government Finances (Selected Years), and Survey of Current Business
(Selected Years), respectively, U.S. Department of Commerce, Bureaus of the Census & Economic Analysis.




1999 NYS Tax Sourcebook                                                                                                                                      Page 21
Table 14: State & Local Taxes Per Capita, Fiscal Year 1996
                                       State &                                                     State                                          Local
Rank      State                    Local Taxes            Rank      State                         Taxes            Rank   State                  Taxes
          U.S. Average               $2,597.36                      U.S. Average             $1,577.14                    U.S. Average      $1,020.04
1          New York                 3,986.54             1          Hawaii                     2,600.85            1       New York         2,108.61
2         Connecticut                 3,831.08           2          Alaska                     2,502.61            2      New Jersey          1,635.51
3         Alaska                      3,791.37           3          Connecticut                2,391.62            3      New Hampshire       1,533.29
4         New Jersey                  3,436.33           4          Delaware                   2,322.57            4      Connecticut         1,439.46
5         Hawaii                      3,244.53           5          Minnesota                  2,198.94            5      Alaska              1,288.76
6         Massachusetts               3,139.03           6         Massachusetts               2,044.55            6      Illinois            1,275.01
7         Minnesota                   3,127.79           7          Michigan                   1,949.04            7      Maryland            1,176.06
8         Wisconsin                   2,946.79           8          Washington                 1,913.33            8      Rhode Island        1,168.42
9         Delaware                    2,822.46           9           New York                1,877.92              9      Colorado            1,156.91
10        Washington                  2,795.33           10         Wisconsin                  1,857.66            10     Vermont             1,148.82
11        Maryland                    2,786.22           11         California                 1,811.49            11     Ohio                1,101.94
12        Illinois                    2,756.78           12         Nevada                     1,806.20            12     Nebraska            1,096.83
13        Rhode Island                2,738.05           13        New Jersey                  1,800.81            13     Massachusetts       1,094.48
14        California                  2,704.52           14        New Mexico                  1,786.71            14     Wisconsin           1,089.13
15        Nevada                      2,661.32           15         Kentucky                   1,670.77            15     Maine               1,073.88
16        Maine                       2,599.63           16         North Carolina             1,622.60            16     Virginia            1,007.60
17        Michigan                    2,587.82           17         Maryland                   1,610.15            17     Texas                 998.15
18        Vermont                     2,576.71           18         Rhode Island               1,569.63            18     Pennsylvania          994.11
19        Nebraska                    2,531.13           19         Idaho                      1,561.82            19     South Dakota          967.22
20        Pennsylvania                2,511.61           20         Iowa                       1,556.99            20     Florida               960.33
21        Ohio                        2,502.59           21         Kansas                     1,546.95            21     Georgia               954.22
22        Kansas                      2,477.76           22        North Dakota                1,530.01            22     Wyoming               944.55
23        Iowa                        2,448.32           23         Maine                      1,525.80            23     Kansas                930.81
24        Wyoming                     2,421.71           24         Pennsylvania               1,517.50            24     Minnesota             928.86
25        Colorado                    2,417.96           25        West Virginia               1,513.98            25     Oregon                901.06
26        Georgia                     2,353.97           26        Illinois                    1,477.87            26     California            893.03
27        Virginia                    2,341.05           27        Wyoming                     1,477.16            27     Iowa                  891.33
28        Florida                     2,330.35           28         Arkansas                   1,474.96            28     Washington            882.00
29        Arizona                     2,295.05           29         Utah                       1,452.56            29     Nevada                855.12
30        New Mexico                  2,263.40           30         Arizona                    1,447.47            30     Arizona               847.59
31        Oregon                      2,259.06           31         Indiana                    1,444.45            31     Missouri              835.42
32        New Hampshire               2,253.68           32         Nebraska                   1,434.30            32     Louisiana             818.04
33        North Carolina              2,251.29           33         Vermont                    1,427.89            33     Indiana               777.72
34        North Dakota                2,237.81           34         Mississippi                1,421.40            34     Tennessee             716.66
35        Indiana                     2,222.17           35         Ohio                       1,400.65            35     North Dakota          707.79
36        Missouri                    2,180.89           36         Georgia                    1,399.75            36     Utah                  694.22
37        Kentucky                    2,166.15           37        Oklahoma                    1,398.88            37     Montana               649.54
38        Utah                        2,146.79           38        South Carolina              1,382.27            38     Hawaii                643.68
39        Idaho                       2,137.86           39        Montana                     1,377.89            39     Michigan              638.78
40        Texas                       2,128.01           40         Florida                    1,370.02            40     North Carolina        628.69
41        Montana                     2,027.43           41         Oregon                     1,358.00            41     South Carolina        598.84
42        West Virginia               1,994.94           42         Missouri                   1,345.47            42     Oklahoma              587.94
43        Oklahoma                    1,986.81           43         Virginia                   1,333.40            43     Idaho                 578.01
44        South Carolina              1,981.11           44        Colorado                    1,260.99            44     Alabama               555.58
45        South Dakota                1,965.38           45        Alabama                     1,230.46            45     Delaware              499.89
46        Louisiana                   1,945.66           46         Tennessee                  1,161.61            46     Kentucky              495.39
47        Arkansas                    1,932.53           47         Texas                      1,129.86            47     West Virginia         480.96
48        Mississippi                 1,893.69           48         Louisiana                  1,127.62            48     New Mexico            476.09
49        Tennessee                   1,878.28           49        South Dakota                  997.61            49     Mississippi           472.21
50        Alabama                     1,786.04           50         New Hampshire                720.39            50     Arkansas              457.47
 Source: "State & Local Government Finance Estimates" (1996), U.S. Department of Commerce, Bureau of the Census.




Page 22                                                                                                                        1999 NYS Tax Sourcebook
Table 15: State & Local Taxes Per Capita, Selected Fiscal Years
                                                                                                    Rank   Rank   Rank   Rank    Rank
State                       1995             1994           1993            1992            1987    1995   1994   1993   1992    1987
U.S. Average           $2,514.04       $2,402.72        $2,346.27     $2,209.34         $1,663.13
Alaska                   4,459.98        3,224.67        5,172.25       3,955.72         3,161.73      1      3      1      1       1
 New York              3,932.54        3,854.34        3,674.13       3,543.78         2,772.60        2      1      2      2       2
Connecticut              3,687.37        3,440.90        3,320.78       3,049.34         2,216.05      3      2      3      3       4
New Jersey               3,284.75        3,216.30        3,089.84       2,948.74         2,099.24      4      4      4      5       6
Hawaii                   3,057.81        3,185.40        3,065.07       2,988.85         1,955.00      5      5      5      4       7
Minnesota                2,996.16        2,732.91        2,727.94       2,500.26         1,904.46      6      7      6      7       9
Massachusetts            2,980.06        2,834.95        2,673.20       2,553.20         2,105.39      7      6      7      6       5
Wisconsin                2,831.37        2,698.77        2,569.54       2,343.02         1,787.34      8      8      9     13      12
Maryland                 2,757.87        2,657.03        2,614.20       2,359.49         1,903.67      9      9      8     12      10
Washington               2,727.88        2,596.39        2,545.57       2,380.28         1,697.18     10     10     10      9      16
Delaware                 2,703.93        2,494.18        2,401.47       2,379.23         1,751.91     11     14     14     10      14
Rhode Island             2,660.47        2,498.12        2,392.74       2,235.93         1,720.18     12     13     16     16      15
Illinois                 2,618.83        2,474.50        2,362.05       2,218.60         1,650.21     13     16     17     17      17
California               2,570.07        2,404.35        2,484.54       2,433.13         1,925.77     14     17     11      8       8
Nevada                   2,567.07        2,354.11        2,448.32       2,112.82         1,621.52     15     18     12     22      19
Pennsylvania             2,476.63        2,342.03        2,273.71       2,196.18         1,553.89     16     20     21     18      23
Vermont                  2,468.56        2,482.27        2,416.51       2,303.31         1,630.60     17     15     13     14      18
Maine                    2,466.31        2,350.70        2,287.29       2,158.63         1,614.18     18     19     20     20      20
Iowa                     2,465.53        2,296.55        2,220.92       2,042.78         1,530.10     19     22     23     25      25
Michigan                 2,453.69        2,552.13        2,393.67       2,188.66         1,775.60     20     11     15     19      13
Ohio                     2,405.33        2,204.36        2,081.82       1,950.50         1,509.44     21     26     31     30      26
Nebraska                 2,397.64        2,290.12        2,156.23       2,030.82         1,460.42     22     23     27     26      28
Kansas                   2,369.33        2,310.23        2,158.05       1,979.86         1,507.62     23     21     26     28      27
Wyoming                  2,358.09        2,513.36        2,343.52       2,360.37         2,293.41     24     12     18     11       3
Colorado                 2,332.93        2,244.88        2,210.08       2,076.85         1,602.02     25     25     25     23      21
Oregon                   2,309.15        2,265.92        2,250.97       2,134.80         1,810.43     26     24     22     21      11
Virginia                 2,307.31        2,161.51        2,135.76       2,017.84         1,548.23     27     30     28     27      24
Arizona                  2,291.60        2,177.43        2,216.69       2,065.96         1,594.65     28     29     24     24      22
New Hampshire            2,267.09        2,189.56        2,341.92       2,258.02         1,389.11     29     27     19     15      29
Florida                  2,252.29        2,185.86        2,109.14       1,952.19         1,365.07     30     28     29     29      32
Georgia                  2,214.54        2,115.26        2,082.36       1,867.64         1,371.71     31     32     30     33      30
North Carolina           2,209.68        2,110.22        2,037.81       1,840.17         1,362.85     32     33     33     34      33
Indiana                  2,200.99        2,119.10        1,952.79       1,879.88         1,304.21     33     31     35     32      37
North Dakota             2,183.43        2,030.03        1,928.50       1,701.18         1,275.50     34     35     37     40      38
Missouri                 2,147.78        1,852.12        1,746.57       1,676.24         1,246.64     35     41     45     41      39
New Mexico               2,147.01        2,102.20        2,038.42       1,827.36         1,307.97     36     34     32     35      36
Kentucky                 2,100.78        1,929.94        1,855.68       1,774.45         1,210.38     37     39     40     38      44
Texas                    2,066.31        2,026.77        2,010.67       1,892.46         1,329.01     38     36     34     31      35
Idaho                    2,062.23        1,958.97        1,920.88       1,826.43         1,178.47     39     37     38     36      46
Utah                     2,058.81        1,919.70        1,894.39       1,740.56         1,359.54     40     40     39     39      34
Montana                  2,037.65        1,951.80        1,929.21       1,800.97         1,366.36     41     38     36     37      31
West Virginia            1,954.91        1,839.39        1,768.69       1,667.51         1,216.60     42     43     43     42      43
Oklahoma                 1,935.05        1,846.22        1,808.97       1,650.58         1,218.41     43     42     41     44      42
South Carolina           1,921.99        1,800.68        1,769.04       1,603.07         1,232.87     44     45     42     45      40
South Dakota             1,914.21        1,818.90        1,700.50       1,576.33         1,193.78     45     44     46     46      45
Louisiana                1,838.53        1,720.12        1,699.19       1,664.23         1,226.94     46     47     47     43      41
Tennessee                1,790.36        1,759.05        1,754.60       1,559.89         1,155.89     47     46     44     47      47
Mississippi              1,776.33        1,653.25        1,562.83       1,334.34           989.27     48     49     50     50      50
Arkansas                 1,764.64        1,678.90        1,625.78       1,531.69         1,036.56     49     48     48     48      49
Alabama                  1,713.02        1,602.31        1,588.30       1,452.05         1,087.65     50     50     49     49      48
Source: Government Finances (Selected Years), U.S. Department of Commerce, Bureau of the Census.




1999 NYS Tax Sourcebook                                                                                                         Page 23
Table 16: Top State Personal                                                     Rate                                                   Rate
Income Tax Rates as of          Rank       State                            (Percent)          Rank State                         (Percent)
January 1, 1999                1           North Dakota                         12.00         26    Georgia                             6.00
                               2           Montana                              11.00               Kentucky                            6.00
                               3           Rhode Island                         10.89               Louisiana                           6.00
                               4           Vermont                               9.90               Missouri                            6.00
                               5           California                            9.30         30    Massachusetts                       5.95
                               6           Oregon                                9.00         31    Virginia                            5.75
                               7           Iowa                                  8.98         32    Arizona                             5.04
                               8           Hawaii                                8.75         33    Alabama                             5.00
                               9           Maine                                 8.50               Mississippi                         5.00
                                           Minnesota                             8.50         35    Maryland                            4.85
                               11          Idaho                                 8.20         36    Colorado                            4.75
                                           New Mexico                            8.20         37    Connecticut                         4.50
                               13          North Carolina                        7.75         38    Michigan                            4.40
                               14          Arkansas                              7.00         39    Indiana                             3.40
                                           South Carolina                        7.00         40    Illinois                            3.00
                                           Utah                                  7.00         41    Pennsylvania                        2.80
                               17           New York                            6.85          42    Alaska                               (X)
                               18          Ohio                                  6.80         43    Florida                              (X)
                               19          Wisconsin                             6.77         44    Nevada                               (X)
                               20          Oklahoma (1)                          6.75         45    New Hampshire (2)                    (X)
                               21          Nebraska                              6.68         46    South Dakota                         (X)
                               22          West Virginia                         6.50         47    Tennessee (3)                        (X)
                               23          Kansas                                6.45         48    Texas                                (X)
                               24          Delaware                              6.40         49    Washington                           (X)
                               25          New Jersey                            6.37         50    Wyoming                              (X)
                                (X) Does not impose tax.
                                (1) Taxpayers deducting Federal Income Taxes pay a rate of 10%.
                                (2) A tax rate of 5% applies on interest and dividends only.
                                (3) A tax rate of 6% applies on interest and dividends only.
                                Source: OTPA compilation from Commerce Clearing House State Tax Guide and Federation of Tax Administrators.




Page 24                                                                                                        1999 NYS Tax Sourcebook
Table 17: Income Tax-Free                                                                              Tax-Free                    Amount Above/Below
Levels of Income, Two Parent     Rank                State                                      Income Level (1)                       Poverty Line (2)
Family of Four, 1998 Tax Year   1                    California                                           36,100                                19,445
                                2                    Minnesota                                            25,200                                  8,545
                                3                    Rhode Island                                         25,000                                  8,345
                                                     Pennsylvania                                         25,000                                  8,345
                                                     Vermont                                              25,000                                  8,345
                                6                    Maryland                                             24,300                                  7,645
                                7                    Connecticut                                          24,100                                  7,445
                                8                    Arizona                                              23,600                                  6,945
                                9                     New York                                          22,800                                  6,145
                                10                   Massachusetts                                        21,100                                  4,445
                                11                   Kansas                                               20,700                                  4,045
                                12                   New Mexico                                           20,300                                  3,645
                                13                   Maine                                                18,700                                  2,045
                                                     Wisconsin                                            18,700                                  2,045
                                15                   North Dakota                                         18,400                                  1,745
                                16                   Nebraska                                             18,300                                  1,645
                                17                   Idaho                                                17,900                                  1,245
                                                     South Carolina                                       17,900                                  1,245
                                                     Colorado                                             17,900                                  1,245
                                20                   Mississippi                                          17,200                                    545
                                                     Iowa                                                 17,200                                    545
                                22                   North Carolina                                       17,000                                    345
                                23                   Arkansas                                             15,600                                (1,055)
                                24                   Georgia                                              15,300                                (1,355)
                                25                   Utah                                                 15,200                                (1,455)
                                26                   Oregon                                               14,200                                (2,455)
                                27                   Delaware                                             12,700                                (3,955)
                                28                   Oklahoma                                             12,500                                (4,155)
                                                     Ohio                                                 12,500                                (4,155)
                                30                   Louisiana                                            12,300                                (4,355)
                                31                   Missouri                                             12,000                                (4,655)
                                32                   Michigan                                             11,800                                (4,855)
                                33                   West Virginia                                        10,000                                (6,655)
                                34                   Montana                                               9,000                                (7,655)
                                35                   Indiana                                               8,500                                (8,155)
                                36                   Virginia                                              8,200                                (8,455)
                                37                   New Jersey                                            7,500                                (9,155)
                                38                   Hawaii                                                6,100                               (10,555)
                                39                   Illinois                                              5,200                               (11,455)
                                40                   Kentucky                                              5,000                               (11,655)
                                41                   Alabama                                               4,600                               (12,055)
                                 (1) The tax-free income level is the level of income above which a family of begins owing state income tax. Only
                                 deductions, exemptions and credits generally available to all taxpayers are included. Amounts are rounded to the
                                 nearest $100.
                                 (2) Amount of tax-free income level differs from the 1998 poverty threshold of $16,655 as noted by the U.S.
                                 Department of Commerce, Bureau of the Census in January 1998, and adjusted for inflation.
                                 Source: Center on Budget and Policy Priorities.




1999 NYS Tax Sourcebook                                                                                                                       Page 25
Table 18: Top State Income                                                      Rate                                                              Rate
Tax Rates on Corporations as    Rank      State                             (Percent)               Rank      State                           (Percent)
of January 1, 1999             1          Iowa                                 12.00               26         Illinois (4)                         7.30
                               2          North Dakota                         10.50               27         North Carolina                       7.25
                               3          Pennsylvania                           9.99              28         Maryland                             7.00
                               4          Minnesota                              9.80                         New Hampshire                        7.00
                               5          Vermont                                9.75              30         Montana                              6.75
                               6          Connecticut                            9.50              31         Oregon                               6.60
                                          Massachusetts (1)                      9.50              32         Arkansas                             6.50
                               8          Alaska                                 9.40              33         Hawaii                               6.40
                               9          Arizona                                9.00              34         Missouri                             6.25
                                          New Jersey                             9.00              35         Georgia                              6.00
                                           New York (2)                         9.00                          Oklahoma                             6.00
                                          Rhode Island                           9.00                         Tennessee                            6.00
                                          West Virginia                          9.00                         Virginia                             6.00
                               14         Maine                                  8.93              39         Florida                              5.50
                               15         Ohio                                   8.90              40         Alabama                              5.00
                               16         California                             8.84                         Colorado                             5.00
                               17         Delaware                               8.70                         Mississippi                          5.00
                               18         Wisconsin (3)                          8.33                         South Carolina                       5.00
                               19         Kentucky                               8.25                         Utah                                 5.00
                               20         Idaho                                  8.00              45         Michigan (6)                          (X)
                                          Louisiana                              8.00              46         Nevada (7)                            (X)
                               22         Indiana                                7.90              47         South Dakota (7)                      (X)
                               23         Nebraska                               7.81              48         Texas (8)                             (X)
                               24         New Mexico                             7.60              49         Washington (9)                        (X)
                               25         Kansas (5)                             7.35              50         Wyoming (7)                           (X)
                                (X) Does not impose tax on net income.
                                (1) Includes a 14% surcharge.
                                (2) The rate drops to 8.5% for tax years beginning after 6/30/99, to 8.0% for tax years beginning after 6/30/00 and
                                to 7.5% for tax years beginning after 6/30/01.
                                (3) Includes a 5.5% temporary recycling tax surcharge.
                                (4) Includes a 2.5% personal property replacement tax.
                                (5) Includes 3.35% tax surcharge on income greater than $50,000.
                                (6) Single Business Tax at a rate of 2.3%.
                                (7) No corporate income tax.
                                (8) The tax rate is 4.5% of net taxable earned surplus.
                                (9) Business and Occupation (B & O) tax with rates dependent on business type; maximum rate is 2.5% (reduced to
                                1.5% for financial services, selected business services, and all other services).
                                Source: Commerce Clearing House "State Tax Guide."




Page 26                                                                                                                1999 NYS Tax Sourcebook
Table 19: State Tax Treatment of Limited Liability Companies and Registered Limited Liability Partnerships as of
September 25, 1998
                   LLC Act    State Income Tax                                Entity-Level Tax on                              RLLP Act
State              Exists     Classification of LLCs                          Partnerships or LLCs (1)                         Exists
Alabama (2)        Yes        State classification follows federal            No                                               Yes (3)
                              classification of LLC
Alaska             Yes        State classification follows federal            $100/year - domestic; $200 - foreign             Yes
                              classification of LLC
Arizona (2)        Yes        State classification follows federal            No                                               Yes
                              classification of LLC
Arkansas           Yes        State taxes domestic LLCs as partnerships;      Annual $103 franchise tax                        Yes (3)
                              follows federal classification if foreign LLC
California         Yes        State classification follows federal            Annual $800 minimum franchise tax and            Yes (4)
                              classification of LLC                           maximum gross receipts tax of $4,500
Colorado (4)       Yes        State classification follows federal            No                                               Yes (3)
                              classification of LLC
Connecticut (2)    Yes        State classification follows federal            No                                               Yes (3)
                              classification of LLC
Delaware (2)       Yes        State classification follows federal            $100 annual tax on domestic & foreign LLCs       Yes (3)
                              classification of LLC                           (LLPs subject to $100/partner/year fee with
                                                                              $120,000 cap)
Florida (2)        Yes        State taxes LLCs as corporations (no state      Until 7/1/98, LLCs subject to 5.5% artificial    Yes
                              personal income tax)                            entity tax (LLPs subject to $100/FL partner/
                                                                              year fee with $10,000 cap)
Georgia            Yes        State classification follows federal            LLC/LLP pays 4% withholding tax on               Yes (3)
                              classification of LLC                           distributions to nonresident members/partners,
                                                                              with exemptions
Hawaii             Yes        State classification will follow federal        (LLPs subject to $100/partner/year fee with      Yes
                              classification of LLC                           $10,000 cap)
Idaho              Yes        State classification follows federal            No                                               Yes (3)
                              classification of LLC
Illinois (2)       Yes        State classification follows federal            1.5% replacement tax on partnerships and         Yes
                              classification of LLC                           LLCs (LLPs subject to $100/partner/year fee
                                                                              with $5,000 cap)
Indiana            Yes        State classification follows federal            LLC/LLP pays withholding tax on nonresident      Yes (3)
                              classification of LLC                           member's/partner's distributive share of IN
                                                                              income at highest state rate
Iowa (2)           Yes        State classification follows federal            LLC/LLP pays withholding tax on nonresident      Yes
                              classification of LLC                           member's/partner's distributive share of IA
                                                                              income at highest state rate
Kansas (2)         Yes        State classification follows federal            LLC subject to franchise tax on net capital      Yes
                              classification of LLC                           accounts (LLPs subject to $75/Kansas partner/
                                                                              year fee with $2,500 cap)
Kentucky           Yes        State classification follows federal            No                                               Yes
                              classification of LLC
Louisiana (2)      Yes        State classification follows federal            No                                               Yes
                              classification of LLC
Maine              Yes        State classification follows federal            LLC "financial institutions" are taxed at the    Yes
                              classification of LLC                           entity level rate of 1% of Maine net income
                                                                              and 8 cents per $1,000 of Maine assets
Maryland           Yes        State classification follows federal            LLC/LLP pays 5% withholding tax on               Yes (3)
                              classification of LLC                           nonresident member's/partner's distributive
                                                                              share of MD income
Massachusetts      Yes        State classification follows federal            No                                               Yes (3)
                              classification of LLC
Michigan           Yes        LLCs subject to single business tax; members    2.3% of specified LLC tax base                   Yes
                              subject to tax on LLC income
Minnesota          Yes        State classification follows federal            LLC/LLP pays 8.5% withholding tax on             Yes (3)
                              classification of LLC                           nonresident member's/partner's distributive
                                                                              share of MN income (annual flat fee for
                                                                              nonfarming partnerships)
Mississippi        Yes        State classification follows federal            No                                               Yes
                              classification of LLC
Missouri           Yes        State classification follows federal            LLC/LLP pays withholding tax on nonresident      Yes (3)
                              classification of LLC                           member's/partner's distributive share of MO
                                                                              income at highest state rate (LLPs subject to
                                                                              $25/partner/year fee w/$100 cap)

Montana            Yes        State classification follows federal            No                                               Yes (3)
                              classification of LLC
Table 19: State Tax Treatment of Limited Liability Companies and Registered Limited Liability Partnerships as of
September 25, 1998 (Con't)
                             LLC Act           State Income Tax                                         Entity-Level Tax on                                       RLLP Act
State                        Exists            Classification of LLCs                                   Partnerships or LLCs (1)                                  Exists
Nebraska                     Yes               State classification follows federal                     No                                                        Yes (3)
                                               classification of LLC
Nevada (4)                   Yes               No state income tax                                      No                                                        Yes
New Hampshire                Yes               State classification follows federal                     5% on dividends and interest; 7% on business              Yes
                                               classification of LLC                                    profits; and 0.0025% on the "business
                                                                                                        enterprise value tax base" of the LLC;
                                                                                                        however, a dollar-for-dollar credit is allowed
                                                                                                        against the business profits tax for the amount
                                                                                                        of business enterprise tax owed

New Jersey (2)                Yes              State classification follows federal                     No                                                        Yes (3)
                                               classification of LLC
New Mexico                   Yes               State classification follows federal                     No                                                        Yes
                                               classification of LLC
New York                     Yes               State classification follows federal                     $50/member annual fee; with $10,000 cap                   Yes (3)
                                               classification of LLC
North Carolina                Yes              State classification follows federal                     No                                                        Yes
                                               classification of LLC
North Dakota                  Yes              State classification follows federal                     LLC/LLP pays 5% withholding tax on                        Yes (3)
                                               classification of LLC                                    distributions to nonresident members/partners
                                                                                                        after certain adjustments. Effective for taxable
                                                                                                        years after 12/31/97, certain pass-through
                                                                                                        entities with "qualifying members" (generally
                                                                                                        foreign corps. not subject to Ohio fanchise tax)
                                                                                                        are liable for Ohio franchise tax

Ohio                         Yes               State classification follows federal                     No                                                        Yes
                                               classification of LLC
Oklahoma (2)                 Yes               State classification follows federal                     No                                                        Yes (3)
                                               classification of LLC
Oregon                       Yes               State classification follows federal                     No                                                        Yes (3)
                                               classification of LLC
Pennsylvania                 Yes               State classification follows federal                     No                                                        Yes
                                               classification of LLC
Rhode Island (2)             Yes               State classification follows federal                     No                                                        Yes (3)
                                               classification of LLC
South Carolina                Yes              State classification follows federal                     LLC/LLP pays 5% withholding tax on                        Yes
                                               classification of LLC                                    nonresident member's/partner's distributive
                                                                                                        share of SC income
South Dakota (4)             Yes               No state income tax                                      No                                                        Yes (3)
Tennessee                    Yes               State classification follows federal                     $50/member or partner annual fee with                     Yes
                                               classification of LLC                                    $3,000 cap
Texas (4)                    Yes               LLCs subject to corporate franchise tax (no              0.25% of capital; 4.5% of earned surplus of               Yes (3)
                                               state personal income tax)                               LLCs (LLPs subject to $100/partner/year fee)
Utah (2)                     Yes               State classification follows federal                     No                                                        Yes
                                               classification of LLC
Vermont                      Yes               State classification follows federal                     Annual $150 entity tax; LLC/LLP must make                 No
                                               classification of LLC                                    estimated tax payments at highest marginal
                                                                                                        rate on nonresident member's/partner's
                                                                                                        distributive share
Virginia (4)                 Yes               State classification follows federal                     No                                                        Yes (3)
                                               classification of LLC
Washington                   Yes               State taxes LLC as partnership (no state                 B & O tax of 0.012% - 2.5% of gross income                Yes
                                               personal income tax)
West Virginia (4)             Yes              State classification follows federal                     Greater of $50 or 0.75% of "capital" (generally,          Yes
                                               classification of LLC                                    balance of partners' capital accounts per Form
                                                                                                        1065) LLC/LLP pays 4% withholding tax on
                                                                                                        nonresident member's/partner's distributive
                                                                                                        share of WV income
Wisconsin                    Yes                   State classification follows federal                  If taxed as partnership, subject to temporary             Yes (3)
                                                   classification of LLC                                 surcharge tax of up to $9,800
Wyoming (4)                     Yes                No state income tax                                   No                                                        No
(1) Assuming the entity is classified as a partnership and has filed any required nonresident member jurisdictional concerns.
(2) State has received an IRS ruling holding that an LLC organized under this state's statute may be classified either as a partnership or an association taxable as a
corporation depending on the articles of organization and operating agreement.
(3) Indicates "bulletproof" (broad-form liability shield) LLP statute.
(4) State has received an IRS ruling holding that an LLC organized under this state's statute will be classified as a partnership for federal income tax purposes.
Source: Adapted from Bruce P. Ely and Christopher R. Grissom, "The LLC/LLP Scoreboard," State Tax Notes, November 9, 1998, pp. 1211-1218.
Table 20: State Gross Receipts                                      Rate (Percent)                                                 Rate (Percent)
Tax Rates on Utility Service    State                              Gas         Electricity           State                        Gas        Electricity
Providers as of January 1, 1999 Alabama (1)                      2.00%             2.00%             Montana                       (X)              (X)
                                  Alaska                            (X)               (X)            Nebraska                      (X)              (X)
                                  Arizona                           (X)               (X)            Nevada                        (X)              (X)
                                  Arkansas                          (X)               (X)            New Hampshire                 (X)              (X)
                                  California                        (X)               (X)            New Jersey                    (X)              (X)
                                  Colorado                          (X)               (X)            New Mexico                 0.50%           0.50%
                                  Connecticut                    5.00%             5.00%              New York (4)            3.25%            3.25%
                                  Delaware                       4.25%             4.25%             North Carolina             3.22%           3.22%
                                  Florida                        2.50%             2.50%             North Dakota (5)              (X)          2.00%
                                  Georgia                           (X)               (X)            Ohio                       4.75%           4.75%
                                  Hawaii (2)                     8.20%             8.20%             Oklahoma (6)                  (X)          4.00%
                                  Idaho                             (X)                (3)           Oregon                        (X)              (X)
                                  Illinois                          (X)               (X)            Pennsylvania (7)           5.00%           4.40%
                                  Indiana                           (X)               (X)            Rhode Island               3.00%           4.00%
                                  Iowa                              (X)               (X)            South Carolina                (X)               (8)
                                  Kansas                            (X)               (X)            South Dakota                  (X)              (X)
                                  Kentucky                          (X)               (X)            Tennessee                  1.50%           3.00%
                                  Louisiana                         (X)               (X)            Texas (9)                 1.997%          1.997%
                                  Maine                             (X)               (X)            Utah                          (X)              (X)
                                  Maryland                       2.00%             2.00%             Vermont                       (X)              (X)
                                  Massachusetts                     (X)               (X)            Virginia                   2.00%           2.00%
                                  Michigan                          (X)               (X)            Washington                3.852%          3.873%
                                  Minnesota                         (X)               (X)            West Virginia              4.29%              (10)
                                  Mississippi                       (X)               (X)            Wisconsin                  0.97%           3.19%
                                  Missouri                          (X)               (X)            Wyoming                       (X)              (X)
                                  (X) Does not impose a tax on gross receipts (GRT).
                                  (1) Graduated rates. Top rate is 2.00% for companies with monthly sales exceeding $60,000. Companies also
                                  pay a state license "fee" of 2.00%.
                                  (2) Graduated rate from 5.885% up to 8.20%.
                                  (3) Electricity generation is taxed per kilowatt hour (KWH); Co-ops pay 3.50% on gross earnings.
                                  (4) New York's GRT rate will fall to 2.50% on January 1, 2000.
                                  (5) Rate is 2.50% for coal conversion.
                                  (6) Rate is 2.00% for rural cooperatives.
                                  (7) Electric rate is 4.40% plus revenue replacement tax rate (currently -0.2%).
                                  (8) South Carolina imposes an electric power tax equal to 0.5 mills per KWH.
                                  (9) Texas' GRT is a graduated tax based on population. The top rate is shown here.
                                  10) West Virginia imposes a two part tax on electric companies. The capacity tax equals $22.78 per KWH and the
                                  distribution tax equals $0.19 per KWH.
                                  Source: OTPA compilation from Commerce Clearing House "State Tax Guide."




Page 30                                                                                                                 1999 NYS Tax Sourcebook
Table 21: State Taxation of Utility Service Providers as of January 1, 1999
                                                              Gross Receipts Tax (GRT)                            Sales & Excise Tax
                                            Corp.        Instate       Out of State          Major      Instate                            Major
State           Provider of:              Income    Consumption          Purchase        Exemptions   Purchase            Use Tax      Exemptions
Alabama         Gas                           8           8 (1)                 8           RSL (2)    Exempt              Exempt         Exempt
                Electricity                   8              8                  8           RSL (3)    Exempt              Exempt         Exempt
                Local Trans. & Distrib.       8           8 (4)                 8              RSL     Exempt              Exempt         Exempt
                of Gas & Electricity
Alaska          Gas                           8             ---                ---              ---        ---                 ---            ---
                Electricity                   8             ---                ---              ---        ---                 ---            ---
                Local Trans. & Distrib.       8             ---                ---              ---        ---                 ---            ---
                of Gas & Electricity
Arizona         Gas                           8             ---                ---              ---         8                  8          Exempt
                Electricity                   8             ---                ---              ---         8                  8          Exempt
                Local Trans. & Distrib.       8             ---                ---              ---         8              Exempt         Exempt
                of Gas & Electricity
Arkansas        Gas                           8             ---                ---              ---         8                  8              (5)
                Electricity                   8             ---                ---              ---         8                  8              (6)
                Local Trans. & Distrib.       8             ---                ---              ---         8                  8          Exempt
                of Gas & Electricity
California      Gas                           8             ---                ---              ---    Exempt              Exempt         Exempt
                Electricity                   8             ---                ---              ---    Exempt              Exempt         Exempt
                Local Trans. & Distrib.       8             ---                ---              ---    Exempt              Exempt         Exempt
                of Gas & Electricity
Colorado        Gas                           8             ---                ---              ---         8                  8            MFG
                                                                                                                                          RES (7)
                Electricity                   8             ---                ---              ---         8                  8            MFG
                                                                                                                                            RES
                Local Trans. & Distrib.       8             ---                ---              ---         8                  8            MFG
                of Gas & Electricity                                                                                                        RES
Connecticut     Gas                           8              8                  8             MFG           8              Exempt           AGR
                                                                                              RSL                                           MFG
                                                                                                                                            RES
                Electricity                   8              8                  8             MFG           8              Exempt           AGR
                                                                                              RSL                                           MFG
                                                                                                                                          RES (8)
                Local Trans. & Distrib.       8              8                  8             MFG           8              Exempt           AGR
                of Gas & Electricity                                                          RSL                                           MFG
                                                                                                                                            RES

Delaware        Gas                           8              8                  8             MFG          ---                 ---            ---
                                                                                              RSL
                                                                                            RES (9)
                Electricity                   8              8                  8             MFG          ---                 ---            ---
                                                                                              RSL
                                                                                              RES
                Local Trans. & Distrib.       8              8                  8             MFG          ---                 ---            ---
                of Gas & Electricity                                                          RES
                                                                                              RSL
Florida         Gas                           8              8                  8              RSL      8 (10)                 8         RES (11)
                Electricity                   8              8                  8              RSL          8                  8             RES
                Local Trans. & Distrib.       8           ? (12)                 ?             RSL          8                  8             RES
                of Gas & Electricity




Page 32                                                                                                       1999 NYS Tax Sourcebook
Table 21: State Taxation of Utility Service Providers as of January 1, 1999 (Con’t)
                                                               Gross Receipts Tax (GRT)                            Sales & Excise Tax
                                             Corp.        Instate       Out of State          Major      Instate                            Major
State            Provider of:              Income    Consumption          Purchase        Exemptions   Purchase            Use Tax      Exemptions
Georgia          Gas                           8             ---                ---              ---         8                  8       Exempt (13)
                 Electricity                   8             ---                ---              ---         8                  8         MFG (14)
                 Local Trans. & Distrib.       8             ---                ---              ---     8 (15)                 8           Exempt
                 of Gas & Electricity
Hawaii           Gas                           8              8                 ---              ---    Exempt              Exempt          Exempt
                 Electricity                   8              8                 ---              ---    Exempt              Exempt          Exempt
                 Local Trans. & Distrib.       8              8                 ---              ---    Exempt              Exempt          Exempt
                 of Gas & Electricity
Idaho            Gas                           8             ---                ---              ---    Exempt              Exempt          Exempt
                 Electricity                   8             ---                ---              ---    Exempt              Exempt          Exempt
                 Local Trans. & Distrib.       8             ---                ---              ---    Exempt              Exempt          Exempt
                 of Gas & Electricity
Illinois         Gas                           8             ---                ---              ---         8                  8           Exempt
                 Electricity                   8             ---                ---              ---    Exempt              Exempt          Exempt
                 Local Trans. & Distrib.       8             ---                ---              ---         8                  8           Exempt
                 of Gas & Electricity
Indiana          Gas                       8 (16)             8                 ---              ---         8                  8             AGR
                                                                                                                                              MFG
                 Electricity                   8              8                 ---              ---         8                  8             AGR
                                                                                                                                              MFG
                 Local Trans. & Distrib.       8              8                 ---              ---         8                  8             AGR
                 of Gas & Electricity                                                                                                         MFG
Iowa             Gas                           8             ---                ---              ---         8                  8             AGR
                                                                                                                                              MFG
                 Electricity                   8             ---                ---              ---         8                  8             AGR
                                                                                                                                              MFG
                 Local Trans. & Distrib.       8             ---                ---              ---          ?                   ?              ?
                 of Gas & Electricity
Kansas           Gas                           8             ---                ---              ---         8                  8             AGR
                                                                                                                                              MFG
                                                                                                                                              RES
                 Electricity                   8             ---                ---              ---         8                  8             AGR
                                                                                                                                              MFG
                                                                                                                                              RES
                 Local Trans. & Distrib.       8             ---                ---              ---          ?                   ?              ?
                 of Gas & Electricity
Kentucky         Gas                           8             ---                ---              ---         8                  8             AGR
                                                                                                                                              MFG
                                                                                                                                              RES
                 Electricity                   8             ---                ---              ---         8                  8             AGR
                                                                                                                                              MFG
                                                                                                                                              RES
                 Local Trans. & Distrib.       8             ---                ---              ---    Exempt              Exempt          Exempt
                 of Gas & Electricity
Louisiana        Gas                           8             ---                ---              ---         8                  8              (17)
                 Electricity                   8             ---                ---              ---         8                  8              (17)
                 Local Trans. & Distrib.       8             ---                ---              ---    Exempt              Exempt          Exempt
                 of Gas & Electricity




1999 NYS Tax Sourcebook                                                                                                                  Page 33
Table 21: State Taxation of Utility Service Providers as of January 1, 1999 (Con’t)
                                                                Gross Receipts Tax (GRT)                              Sales & Excise Tax
                                            Corp.        Instate         Out of State          Major        Instate                             Major
State           Provider of:              Income    Consumption            Purchase        Exemptions     Purchase            Use Tax       Exemptions
Maine           Gas                           8              ---                 ---              ---           8                  8              AGR
                                                                                                                                                  MFG
                                                                                                                                                  RES
                Electricity                   8              ---                 ---              ---           8                  8              AGR
                                                                                                                                                  MFG
                                                                                                                                                  RES
                Local Trans. & Distrib.       8              ---                 ---              ---            ?                   ?               ?
                of Gas & Electricity
Maryland        Gas                       Exempt              8                  ---            RSL             8                  8              AGR
                                                                                                MUN                                               MFG
                                                                                                                                                  RES
                Electricity               Exempt              8                  ---            RSL             8                  8              AGR
                                                                                                MUN                                               MFG
                                                                                                                                                  RES
                Local Trans. & Distrib.   Exempt              8                  ---            RSL         8 (18)                 8              AGR
                of Gas & Electricity                                                            MUN                                               MFG
                                                                                                                                                  RES
Massachusetts   Gas                           8              ---                 ---              ---           8                  8              AGR
                                                                                                                                                  MFG
                                                                                                                                                   RES
                                                                                                                                             Small Bus.
                Electricity                   8              ---                 ---              ---           8                  8              AGR
                                                                                                                                                  MFG
                                                                                                                                                   RES
                                                                                                                                             Small Bus.
                Local Trans. & Distrib.       8              ---                 ---              ---   Exempt (19)            Exempt           Exempt
                of Gas & Electricity
Michigan        Gas                       8 (20)             ---                 ---              ---           8                  8             AGR
                                                                                                                                              MFG (21)
                Electricity                   8              ---                 ---              ---           8                  8              AGR
                                                                                                                                                  MFG
                Local Trans. & Distrib.       8              ---                 ---              ---            ?                   ?               ?
                of Gas & Electricity
Minnesota       Gas                           8              ---                 ---              ---           8                  8              AGR
                                                                                                                                                  MFG
                                                                                                                                               RES (22)
                Electricity                   8              ---                 ---              ---           8                  8              AGR
                                                                                                                                                  MFG
                                                                                                                                                  RES
                Local Trans. & Distrib.       8              ---                 ---              ---   Exempt (23)            Exempt           Exempt
                of Gas & Electricity
Mississippi     Gas                           8              ---                 ---              ---           8                  8             AGR
                                                                                                                                              MFG (24)
                Electricity                   8              ---                 ---              ---           8                  8              AGR
                                                                                                                                                  MFG
                Local Trans. & Distrib.       8              ---                 ---              ---           8                  8              AGR
                of Gas & Electricity                                                                                                              MFG
Missouri        Gas                           8              ---                 ---              ---           8                  8       Domestic Use
                Electricity                   8              ---                 ---              ---           8                  8       Domestic Use
                Local Trans. & Distrib.       8              ---                 ---              ---           8                  8       Domestic Use
                of Gas & Electricity
Montana         Gas                           8         - - - (25)               ---              ---          ---                 ---             ---
                Electricity                   8              ---                 ---              ---          ---                 ---             ---
                Local Trans. & Distrib.       8              ---                 ---              ---          ---                 ---             ---
                of Gas & Electricity



Page 34                                                                                                           1999 NYS Tax Sourcebook
Table 21: State Taxation of Utility Service Providers as of January 1, 1999 (Con’t)
                                                                Gross Receipts Tax (GRT)                                Sales & Excise Tax
                                              Corp.        Instate       Out of State           Major         Instate                             Major
State            Provider of:               Income    Consumption          Purchase         Exemptions      Purchase            Use Tax       Exemptions
Nebraska         Gas                            8             ---                ---                 ---          8                  8          MFG (26)
                 Electricity                    8             ---                ---                 ---          8                  8              MFG
                 Local Trans. & Distrib.        8             ---                ---                 ---          8                  8              MFG
                 of Gas & Electricity
Nevada           Gas                           ---            ---                ---                 ---          8                  8       Domestic Use
                 Electricity                   ---            ---                ---                 ---          8                  8       Domestic Use
                 Local Trans. & Distrib.    8 (27)            ---                ---                 ---          8                  8       Domestic Use
                 of Gas & Electricity
New Hampshire    Gas                            8             ---                ---                 ---         ---                 ---             ---
                 Electricity                    8             ---                ---                 ---         ---                 ---             ---
                 Local Trans. & Distrib.        8             ---                ---                 ---         ---                 ---             ---
                 of Gas & Electricity
New Jersey       Gas                            8             ---                ---                 ---          8                  8          MUN (28)
                 Electricity                    8             ---                ---                 ---          8                  8              MUN
                 Local Trans. & Distrib.        8             ---                ---                 ---          8                  8              MUN
                 of Gas & Electricity
New Mexico       Gas                            8          8 (29)            Exempt              Exempt           8                  8               (30)
                 Electricity                    8              8             Exempt              Exempt           8                  8            Exempt
                 Local Trans. & Distrib.        8              8             Exempt              Exempt           8                  8            Exempt
                 of Gas & Electricity
New York         Gas                       Exempt              8                  8               MUN             8            Exempt              MFG
                                                                                                  PUB                                              RSL
                                                                                                  RSL
                 Electricity               Exempt              8           Exempt                  RSL            8            Exempt              MFG
                                                                                                                                                   RSL
                 Local Trans. &            Exempt              8           Exempt              Exempt       Exempt             Exempt            Exempt
                 Distrib. of Gas &
                 Electricity
North Carolina   Gas                            8          8 (31)            8 (31)                 RSL       8 (31)             8 (31)            AGR
                                                                                                                                                MFG (32)
                 Electricity                    8              8             Exempt                 RSL           8                  8             AGR
                                                                                                                                                MFG (32)
                 Local Trans. & Distrib.        8              8             Exempt                 RSL           8                  8              AGR
                 of Gas & Electricity                                                                                                               MFG
North Dakota     Gas                            8          Exempt            Exempt                               8                  8          AGR (33)
                 Electricity                    8              8             Exempt                               8                  8              AGR
                 Local Trans. & Distrib.        8          8 (34)            Exempt                               8                  8              AGR
                 of Gas & Electricity
Ohio             Gas                        Exempt             8             Exempt                 RSL      Exempt              Exempt           Exempt
                 Electricity                Exempt             8             Exempt                 RSL      Exempt              Exempt           Exempt
                 Local Trans. & Distrib.    Exempt             8             Exempt                 RSL      Exempt              Exempt           Exempt
                 of Gas & Electricity
Oklahoma         Gas                            8          Exempt            Exempt              Exempt      Exempt              Exempt           Exempt
                 Electricity                    8              8             Exempt        Rural Electric         8                  8             AGR
                                                                                            Co-ops (36)                                         MFG (35)
                 Local Trans. & Distrib.    8 (37)             8             Exempt        Rural Electric         8                  8              AGR
                 of Gas & Electricity                                                            Co-ops                                             MFG




1999 NYS Tax Sourcebook                                                                                                                        Page 35
Table 21: State Taxation of Utility Service Providers as of January 1, 1999 (Con’t)
                                                               Gross Receipts Tax (GRT)                            Sales & Excise Tax
                                             Corp.        Instate       Out of State          Major      Instate                            Major
State            Provider of:              Income    Consumption          Purchase        Exemptions   Purchase            Use Tax      Exemptions
Oregon           Gas                           8             ---                ---              ---        ---                 ---            ---
                 Electricity                   8             ---                ---              ---        ---                 ---            ---
                 Local Trans. & Distrib.       8             ---                ---              ---        ---                 ---            ---
                 of Gas & Electricity
Pennsylvania     Gas                           8              8             Exempt             MUN           8                  8            MFG
                                                                                               RSL                                           RES
                 Electricity                   8              8                  8             MUN           8                  8            MFG
                                                                                               RSL                                           RES
                 Local Trans. & Distrib.       8              8             Exempt             MUN       8 (38)                 8            MFG
                 of Gas & Electricity                                                          RSL                                           RES
Rhode Island     Gas                       Exempt             8             Exempt             MFG           8                  8            AGR
                                                                                               RSL                                           MFG
                                                                                                                                             RES
                 Electricity               Exempt             8             Exempt             MFG           8                  8            AGR
                                                                                               RSL                                           MFG
                                                                                                                                             RES
                 Local Trans. & Distrib.   Exempt             8             Exempt             MFG           8                  8            AGR
                 of Gas & Electricity                                                          RSL                                           MFG
                                                                                                                                             RES
South Carolina   Gas                           8          8 (39)            Exempt             MFG           8                  8            AGR
                                                                                               MUN                                           MFG
                                                                                                                                             RES
                 Electricity                   8          8 (40)               (41)            MFG           8                  8            AGR
                                                                                               MUN                                           MFG
                                                                                                                                             RES
                 Local Trans. & Distrib.       8              8                (41)            MFG           8                  8            AGR
                 of Gas & Electricity                                                          MUN                                           MFG
                                                                                                                                             RES
South Dakota     Gas                          ---            ---                ---              ---         8                  8          Exempt
                 Electricity                  ---            ---                ---              ---         8                  8          Exempt
                 Local Trans. & Distrib.      ---            ---                ---              ---        (42)               (42)        Exempt
                 of Gas & Electricity
Tennessee        Gas                           8              8             Exempt             MUN           8                  8        MFG (43)
                                                                                               RSL                                          RES
                 Electricity                   8              8             Exempt             MUN           8                  8            MFG
                                                                                               RSL                                           RES
                 Local Trans. & Distrib.       8              8             Exempt             MUN           8                  8            MFG
                 of Gas & Electricity                                                          RSL                                           RES
Texas            Gas                          ---             8             Exempt             EXO           8                  8            AGR
                                                                                                                                             MFG
                                                                                                                                             RES
                 Electricity                  ---             8             Exempt             EXO           8                  8            AGR
                                                                                                                                             MFG
                                                                                                                                             RES
                 Local Trans. & Distrib.      ---         Exempt            Exempt             EXO           8                  8            AGR
                 of Gas & Electricity                                                                                                        MFG
                                                                                                                                             RES




Page 36                                                                                                        1999 NYS Tax Sourcebook
Table 21: State Taxation of Utility Service Providers as of January 1, 1999 (Con’t)
                                                               Gross Receipts Tax (GRT)                            Sales & Excise Tax
                                             Corp.        Instate       Out of State          Major      Instate                            Major
State            Provider of:              Income    Consumption          Purchase        Exemptions   Purchase            Use Tax      Exemptions
Utah             Gas                           8             ---                ---              ---         8                  8            AGR
                                                                                                                                             MFG
                                                                                                                                          RES (44)
                 Electricity                   8             ---                ---              ---         8                  8            AGR
                                                                                                                                             MFG
                                                                                                                                             RES
                 Local Trans. & Distrib.       8             ---                ---              ---         8                  8            AGR
                 of Gas & Electricity                                                                                                        MFG
                                                                                                                                             RES
Vermont          Gas                           8             ---                ---              ---         8                  8            AGR
                                                                                                                                             MFG
                                                                                                                                             RES
                 Electricity                   8             ---                ---              ---         8                  8            AGR
                                                                                                                                             MFG
                                                                                                                                             RES
                 Local Trans. & Distrib.       8             ---                ---              ---    Exempt              Exempt         Exempt
                 of Gas & Electricity
Virginia         Gas                       Exempt             8             Exempt          RSL (45)    Exempt              Exempt         Exempt
                 Electricity               Exempt             8             Exempt              RSL     Exempt              Exempt         Exempt
                 Local Trans. & Distrib.   Exempt             8             Exempt              RSL     Exempt              Exempt         Exempt
                 of Gas & Electricity
Washington       Gas                          ---             8                  8             MUN      Exempt              Exempt         Exempt
                                                                                            RSL (46)
                 Electricity                  ---             8             Exempt             MUN      Exempt              Exempt         Exempt
                                                                                               RSL
                 Local Trans. & Distrib.      ---             8                  8             MUN      Exempt              Exempt         Exempt
                 of Gas & Electricity                                                          RSL
West Virginia    Gas                           8              8             Exempt         MFG (47)     Exempt              Exempt         Exempt
                                                                                              MUN
                                                                                              RSL
                 Electricity                   8              8             Exempt             MFG      Exempt              Exempt         Exempt
                                                                                               MUN
                                                                                               RSL
                 Local Trans. & Distrib.       8              8             Exempt             MFG      Exempt              Exempt         Exempt
                 of Gas & Electricity                                                          MUN
                                                                                               RSL
Wisconsin        Gas                           8              8             Exempt             MUN           8                  8            AGR
                                                                                                                                             MFG
                                                                                                                                          RES (48)
                 Electricity                   8              8             Exempt             MUN           8                  8           AGR
                                                                                            RSL (49)                                     MFG (48)
                                                                                                                                            RES
                 Local Trans. & Distrib.       8              8             Exempt             MUN      Exempt              Exempt         Exempt
                 of Gas & Electricity




1999 NYS Tax Sourcebook                                                                                                                 Page 37
 Table 21: State Taxation of Utility Service Providers as of January 1, 1999 (Con’t)
                                                                                                   Gross Receipts Tax (GRT)                                             Sales & Excise Tax
                                                                     Corp.                 Instate            Out of State              Major                 Instate                               Major
 State                        Provider of:                         Income             Consumption               Purchase            Exemptions              Purchase             Use Tax        Exemptions
 Wyoming                      Gas                                      ---                      ---                   ---                   ---                    8                   8               AGR
                                                                                                                                                                                                       MFG
                              Electricity                              ---                      ---                   ---                   ---                    8                   8               AGR
                                                                                                                                                                                                       MFG
                              Local Trans. & Distrib.                  ---                      ---                   ---                   ---                    8                   8               AGR
                              of Gas & Electricity                                                                                                                                                     MFG
N/A – Tax does not apply to these sales/purchases. Empty cells indicate no State tax of this type exists.
Exemption Codes: AGR (Sales for agricultural use), EXO (Sales by exempt Organizations), MFG (Sales for manufacturing use), MUN (Sales by municipal providers), PUB (Sales by public authorities),
RES (Sales for residential use), and RSL (Sales for resale).
Notes:
1. Effective July 1, 1999, the gross receipts tax on gas becomes a per therm based excise tax dependent on volume on the end user.
2. Tax does not apply to sales of gas and electricity heat chicken houses or used in electro thermal manufacturing or compounding.
3. Heads of households over age 62 with household annual incomes below $12,000 receive a credit on their electricity bills to equal a full exemption.
4. Charges for transportation and distribution are only taxable if rendered by a utility company.
5. Sales of gas or electricity for use by certain steel mills and glass manufacturers are exempt.
6. The sale of the first 500 kilowatt hours (KWH) per month to residential customers with household incomes below $12,000 are exempt.
7. Sales of gas or electricity for use in processing, manufacturing, mining, refining, irrigation, construction, and all industrial uses are exempt (includes uses as diverse as cooking and dry cleaning) are
exempt.
8. The first $150 of electricity sales not qualifying for the agricultural, manufacturing or residential exemptions are otherwise exempt from Connecticut’s sales tax.
9. Sales to qualifying businesses are partially exempt (rate reduced to 2.0%), and sales to car manufacturing plants are wholly exempt.
10. Florida’s sales tax rate on sales of gas, electricity and other utility services is 7.0%; whereas the general sales tax rate is 6.0%.
11. Electricity used in transportation and distribution.
12. The taxability of separately billed transportation and distribution services under Florida’s gross receipts tax remains undecided.
13. Sales of gas used to heat chicken houses are exempt.
14. Georgia provides a full sales tax exemption on electricity sales if electricity exceeds 50% of the cost of production of products for sale.
15. Transportation and distribution charges are taxable if part of a retail sale. Bundling or unbundling of charges is immaterial in determining taxability.
16. Same as all other corporations.
17. Residential exemption has been suspended for last 14 years. Residential is subject to a lower sales tax than other commodities.
18. Department has ruled that T&D is taxable. Have asked General Assembly to address legislatively.
19. Transmission and distribution charges are only taxable if the charges are “bundled” into the cost of the product.
20. Corporations subject to Michigan’s normal Single Business Tax.
21. Residential receives reduced rate.
22. Part-year residential exemption for heating fuels.
23. T&D separately stated not taxable if the product is not sold by the public utility.
24. Reduced rate of 1.5% for farming and manufacturing.
25. Tax on KWH.
26. Fifty percent exemption for manufacturing and hospitals.
27. No general franchise or corporate income tax; however, there is a tax on electric and gas utilities.
28. Gas used to generate electricity (if not self-use), Co-generators if in service in 1997.
29. The tax is an inspection and supervision fee for companies subject to Public Service supervision.
30. Gas used in the production of electricity is exempt.
31. Effective July 1, 1999, the gross receipts tax on gas becomes a per therm based excise tax dependent on volume on the end user.
32. Farmers and Manufacturers reduced rate of 2.83%.
33. Gas subject to reduced rate at 2%, use tax on gas enacted in 1997.
34. Electricity only.
35. Rural Electric Cooperatives exempt; in addition, they are not required to collect sales and use tax.
36. Rural Electric Cooperatives reduced rate of 2%.
37. Rural Electric Cooperatives exempt.
38. If the charges are separately billed, Pennsylvania does not apply sales tax to T&D for gas services. The total charge for all components of electricity service is taxable whether billed as a single
charge by one vendor, or billed separately by one or more vendors.
39. South Carolina has a corporate license fee based on both property and gross receipts.
40. South Carolina also imposes an Electric Power Tax based on KWH.
41. The Electric Power Tax applies to any company bringing power into South Carolina.
42. South Dakota’s sales and use tax applies only to distribution of electricity.
43. Tennessee imposes a reduced sales tax rate of 1.5% on energy used in manufacturing.
44. Utah also imposes a lower sales and use tax rate on energy used for residential purposes.
45. Virginia allows energy utilities a tax credit for Virginia coal used in production.
46. Washington exempts the first $2,000 of receipts per month from tax.
47. West Virginia limits its manufacturing exemption to only certain processes.
48. Wisconsin exempts residential sales of energy purchased during November-April.
49. Wisconsin allows co-ops to deduct the full cost of purchased power. Private companies, under some limited situations, may deduct 100% or 50% of the cost of purchased power.
Source: OTPA compilation from CCH State Tax guides for respective states.




Page 38                                                                                                                                                              1999 NYS Tax Sourcebook
Table 22: State Taxation of Selected Telecommunications Providers as of January 1, 1999
                                              Gross Receipts Tax                       Sales & Excise Tax
                             Corporate                              Interstate &                             Interstate &   Real/Personal
State                      Income Tax      Intrastate              International   Intrastate               International   Property Tax*
Alabama
                  LEC              8             ---                        N/A       8 (1)                          N/A              8
                  IXC              8             ---                        ---       8 (1)                     Exempt                8
              Cable TV             8             ---                        N/A     Exempt                           N/A              8
Alaska
                  LEC              8          8 (2)                         N/A          ---                         N/A              8
                  IXC              8        Exempt                     Exempt            ---                         ---              8
              Cable TV             8        Exempt                          N/A          ---                         N/A              8
Arizona
                  LEC              8             ---                        N/A           8                          N/A              8
                  IXC              8             ---                        ---           8                     Exempt                8
              Cable TV             8             ---                        N/A     Exempt                           N/A              8
Arkansas
                  LEC              8             ---                        N/A           8                          N/A              8
                  IXC              8             ---                        ---           8                           8               8
              Cable TV             8             ---                        N/A           8                          N/A              8
California
                  LEC              8             ---                        N/A     Exempt                           N/A              8
                  IXC              8             ---                        ---     Exempt                      Exempt                8
              Cable TV             8             ---                        N/A     Exempt                           N/A              8
Colorado
                  LEC              8             ---                        N/A           8                          N/A              8
                  IXC              8             ---                        ---           8                     Exempt                8
              Cable TV             8             ---                        N/A     Exempt                           N/A              8
Connecticut
                  LEC              8        Exempt                          N/A           8                          N/A              8
                  IXC              8        Exempt                     Exempt             8                           8               8
              Cable TV             8              8                         N/A           8                          N/A              8
Delaware
                  LEC              8          8 (3)                         N/A          ---                         N/A              8
                  IXC              8            8                      Exempt            ---                         ---              8
              Cable TV             8            8                           N/A          ---                         N/A              8
Florida
                  LEC              8              8                         N/A           8                          N/A              8
                  IXC              8              8                          8            8                           8               8
              Cable TV             8        Exempt                          N/A           8                          N/A              8
Georgia
                  LEC              8             ---                        N/A       8 (4)                          N/A              8
                  IXC              8             ---                        ---     Exempt                      Exempt                8
              Cable TV             8             ---                        N/A     Exempt                           N/A              8
Hawaii
                  LEC              8          8 (5)                         N/A           8                          N/A         Exempt
                  IXC              8             ---                        ---           8                           8          Exempt
              Cable TV             8             ---                        N/A     Exempt                           N/A              8
Idaho
                  LEC              8             ---                        N/A     Exempt                           N/A              8
                  IXC              8             ---                        ---     Exempt                      Exempt                8
              Cable TV             8             ---                        N/A     Exempt                           N/A              8
Illinois
                  LEC              8        Exempt                          N/A           8                          N/A              8
                  IXC              8        Exempt                     Exempt             8                           8               8
              Cable TV             8        Exempt                          N/A     Exempt                           N/A              8



Page 40                                                                                                        1999 NYS Tax Sourcebook
Table 22: State Taxation of Selected Telecommunications Providers as of January 1, 1999 (Con’t)
                                              Gross Receipts Tax                       Sales & Excise Tax
                              Corporate                             Interstate &                             Interstate &   Real/Personal
State                       Income Tax     Intrastate              International   Intrastate               International   Property Tax*
Indiana
                    LEC             8             8                         N/A           8                          N/A              8
                    IXC             8             8                    Exempt             8                     Exempt                8
                Cable TV            8       Exempt                          N/A           8                          N/A              8
Iowa
                    LEC             8            ---                        N/A           8                          N/A              8
                    IXC             8            ---                        ---           8                     Exempt                8
                Cable TV            8            ---                        N/A           8                          N/A              8
Kansas
                    LEC             8            ---                        N/A           8                          N/A              8
                    IXC             8            ---                        ---           8                           8               8
                Cable TV            8            ---                        N/A           8                          N/A              8
Kentucky
                    LEC             8            ---                        N/A           8                          N/A              8
                    IXC             8            ---                        ---           8                     Exempt                8
                Cable TV            8            ---                        N/A     Exempt                           N/A              8
Louisiana
                    LEC             8             8                         N/A           8                          N/A              8
                    IXC             8             8                    Exempt             8                           8               8
                Cable TV            8             8                         N/A     Exempt                           N/A              8
Maine
                    LEC             8            ---                        N/A           8                          N/A              8
                    IXC             8            ---                        ---           8                     Exempt                8
                Cable TV            8            ---                        N/A       8 (6)                          N/A              8
Maryland
                    LEC        Exempt         8 (7)                         N/A       8 (8)                          N/A              8
                    IXC             8           8                            8        8 (8)                     Exempt                8
                Cable TV            8       Exempt                          N/A     Exempt                           N/A              8
Massachusetts
                    LEC             8            ---                        N/A           8                          N/A              8
                    IXC             8            ---                        ---           8                           8               8
                Cable TV            8            ---                        N/A     Exempt                           N/A              8
Michigan
                    LEC          8 (9)           ---                        N/A           8                          N/A              8
                    IXC            8             ---                        ---           8                           8               8
                Cable TV           8             ---                        N/A     Exempt                           N/A              8
Minnesota
                    LEC             8            ---                        N/A           8                          N/A              8
                    IXC             8            ---                        ---           8                      8 (10)               8
                Cable TV            8            ---                        N/A           8                          N/A              8
Mississippi
                    LEC             8            ---                        N/A           8                          N/A              8
                    IXC             8            ---                        ---           8                     Exempt                8
                Cable TV            8            ---                        N/A           8                          N/A              8
Missouri
                    LEC             8            ---                        N/A           8                          N/A              8
                    IXC             8            ---                        ---           8                     Exempt                8
                Cable TV            8            ---                        N/A     Exempt                           N/A              8
Montana
                    LEC             8             8                         N/A     Exempt                           N/A              8
                    IXC             8             8                    Exempt       Exempt                      Exempt                8
                Cable TV            8       Exempt                          N/A     Exempt                           N/A              8



1999 NYS Tax Sourcebook                                                                                                        Page 41
Table 22: State Taxation of Selected Telecommunications Providers as of January 1, 1999 (Con’t)
                                              Gross Receipts Tax                         Sales & Excise Tax
                              Corporate                             Interstate &                               Interstate &   Real/Personal
State                       Income Tax     Intrastate              International     Intrastate               International   Property Tax*
Nebraska
                     LEC            8            ---                        N/A             8                          N/A              8
                     IXC            8            ---                        ---             8                     Exempt                8
                 Cable TV           8            ---                        N/A             8                          N/A              8
Nevada
                     LEC           ---           ---                        N/A        Exempt                          N/A              8
                     IXC           ---           ---                        ---        Exempt                     Exempt                8
                 Cable TV          ---           ---                        N/A        Exempt                          N/A              8
New Hampshire
                     LEC            8            ---                        N/A        8 (11)                          N/A              8
                     IXC            8            ---                        ---           8                             8               8
                 Cable TV           8            ---                        N/A        Exempt                          N/A              8
New Jersey
                     LEC       Exempt             8                         N/A             8                          N/A              8
                     IXC            8       Exempt                     Exempt               8                           8               8
                 Cable TV           8       Exempt                          N/A        Exempt                          N/A              8
New Mexico
                     LEC            8            ---                        N/A        8 (12)                          N/A              8
                     IXC            8            ---                        ---           8                             8               8
                 Cable TV           8            ---                        N/A           8                            N/A              8
New York
                     LEC       Exempt             8                        N/A              8                         N/A               8
                     IXC       Exempt             8                          8              8                     Exempt                8
                 Cable TV           8       Exempt                          N/A        Exempt                           N/A             8
North Carolina
                     LEC            8        8 (13)                         N/A             8                          N/A              8
                     IXC            8       Exempt                     Exempt               8                     Exempt                8
                 Cable TV           8       Exempt                          N/A        Exempt                          N/A              8
North Dakota
                     LEC            8             8                         N/A             8                          N/A         Exempt
                     IXC            8             8                          8              8                     Exempt           Exempt
                 Cable TV           8       Exempt                          N/A        Exempt                          N/A              8
Ohio
                     LEC       Exempt             8                         N/A    Exempt (15)                         N/A              8
                     IXC            8       Exempt                     Exempt               8                           8               8
                 Cable TV           8       Exempt                          N/A             8                          N/A              8
Oklahoma
                     LEC            8            ---                        N/A             8                          N/A              8
                     IXC            8            ---                        ---             8                           8               8
                 Cable TV           8            ---                        N/A        Exempt                          N/A              8
Oregon
                     LEC            8        8 (16)                         N/A            ---                         N/A              8
                     IXC            8            ---                        ---            ---                         ---              8
                 Cable TV           8            ---                        N/A            ---                         N/A              8
Pennsylvania
                     LEC            8             8                         N/A             8                          N/A              8
                     IXC            8             8                    Exempt               8                           8               8
                 Cable TV           8       Exempt                          N/A             8                          N/A              8
Rhode Island
                     LEC       Exempt             8                         N/A             8                          N/A              8
                     IXC       Exempt             8                          8              8                           8               8
                 Cable TV      Exempt             8                         N/A             8                          N/A              8



Page 42                                                                                                          1999 NYS Tax Sourcebook
Table 22: State Taxation of Selected Telecommunications Providers as of January 1, 1999 (Con’t)
                                              Gross Receipts Tax                       Sales & Excise Tax
                              Corporate                             Interstate &                             Interstate &   Real/Personal
State                       Income Tax     Intrastate              International   Intrastate               International   Property Tax*
South Carolina
                     LEC            8            ---                        N/A      8 (17)                          N/A              8
                     IXC            8            ---                        ---     Exempt                      Exempt                8
                 Cable TV           8            ---                        N/A           8                          N/A              8
South Dakota
                     LEC           ---            8                         N/A           8                          N/A          8 (18)
                     IXC           ---      Exempt                     Exempt             8                     Exempt               8
                 Cable TV          ---      Exempt                          N/A           8                          N/A             8
Tennessee
                     LEC            8            ---                        N/A           8                          N/A              8
                     IXC            8            ---                        ---           8                           8               8
                 Cable TV           8            ---                        N/A      8 (19)                          N/A              8
Texas
                     LEC           ---           ---                        N/A           8                          N/A              8
                     IXC           ---           ---                        ---           8                           8               8
                 Cable TV          ---           ---                        N/A           8                          N/A              8
Utah
                     LEC            8            ---                        N/A           8                          N/A              8
                     IXC            8            ---                        ---           8                     Exempt                8
                 Cable TV           8            ---                        N/A     Exempt                           N/A              8
Vermont
                     LEC            8            ---                        N/A     8 (VT)                           N/A              8
                     IXC            8            ---                        ---         8                       Exempt                8
                 Cable TV           8            ---                        N/A         8                            N/A              8
Virginia
                     LEC        8 (20)           ---                        N/A     Exempt                           N/A              8
                     IXC        8 (20)           ---                        ---     Exempt                      Exempt                8
                 Cable TV          8             ---                        N/A     Exempt                           N/A              8
Washington
                     LEC           ---            8                         N/A           8                          N/A              8
                     IXC           ---            8                          8            8                           8               8
                 Cable TV          ---      Exempt                          N/A           8                          N/A              8
West Virginia
                     LEC            8             8                         N/A     Exempt                           N/A              8
                     IXC            8             8                          8      Exempt                      Exempt                8
                 Cable TV           8       Exempt                          N/A     Exempt                           N/A              8
Wisconsin
                     LEC            8        8 (21)                         N/A           8                          N/A         Exempt
                     IXC            8       Exempt                     Exempt             8                           8               8
                 Cable TV           8       Exempt                          N/A           8                          N/A              8




1999 NYS Tax Sourcebook                                                                                                        Page 43
 Table 22: State Taxation of Selected Telecommunications Providers as of January 1, 1999 (Con’t)
                                                                                     Gross Receipts Tax                                   Sales & Excise Tax
                                                       Corporate                                           Interstate &                                         Interstate &   Real/Personal
 State                                               Income Tax                  Intrastate               International               Intrastate               International   Property Tax*
 Wyoming
                               LEC                           ---                       ---                         N/A                       8                          N/A              8
                                IXC                          ---                       ---                         ---                       8                     Exempt                8
                              Cable TV                           ---                       ---                         N/A                  Exempt                       N/A             8
Notes:
* In a number of states, the poles, wires and cables of telecommunications companies are considered personal, rather than real property.
N/A = Not applicable, provider does not typically offer this form of service.
LEC = Local Exchange Carrier.
IXC = Interexchange (long-distance) Carrier.
--- = No tax of this type is imposed.
(1) Public utility excise tax.
(2) Tax on cooperative telephone companies only. Many of the State’s utilities are publicly-owned co-ops.
(3) Residential service is exempt; mile of wire charge.
(4) Applies to charges for local telephone service only.
(5) Only certain companies are subject to the general public service company tax. Generally, companies pay the excise tax.
(6) Applies to charges for extended (non-basic) cable television service only.
(7) LECs may credit corporate income tax paid against their gross receipts tax liability. As a result, they are effectively exempt from the corporate income tax.
(8) Only charges for cellular service; 900-, 976-, 915-, other 900- like services; custom calling services; telephone answering; and pay-per-view TV are subject to tax.
(9) Alternative GRT method is allowed under the Single Business Tax (SBT), Michigan’s corporate income tax.
(10) Charges for international calls are exempt from Minnesota’s sales tax.
(11) The first $12 of charges for residential customer access and exchange service is exempt from the tax.
(12) Rate is higher on intrastate than interstate/international.
(13) Applies to charges for local telephone service only. To compensate, these companies pay a reduced sales tax rate.
(15) Telephone companies providing local exchange service and subject to the GRT are exempt from the sales tax.
(16) Rural local exchange carriers only can elect to pay a gross receipts tax in lieu of property tax.
(17) Applies to charges for local telephone service only.
(18) Small telephone companies (less than $25 million in receipts) pay a gross receipts tax in lieu of property tax.
(19) Tax is imposed on charges for non-basic cable television service only.
(VT) The tax rate is 4.36%, but there is a $20 per month per line deduction for residential purchases or users of local exchange services.
(20) Virginia does not impose a gross receipts tax on LECs or IXCs. However, these companies are subject to a minimum tax calculated as a percentage of gross receipts.
(21) Local exchange carriers pay a gross receipts tax in lieu of property tax.
Source: OTPA compilation from CCH State Tax guides for respective states.




Page 44                                                                                                                                                           1999 NYS Tax Sourcebook
Table 23: Tax Rates on Insurance Corporations as of January 1, 1999
                                                                             Top Rate on Life       Top Rate on P/C*
                                                                           Insurance Premiums     Insurance Premiums
                                                       Credit/Exemption
                                                       for Other                                                           Top Rate
State                 Basis of Tax                     Taxes (1)(2)       Domestic     Foreign   Domestic       Foreign   on Income
Alabama               Premiums                         N/A                  2.30%       2.30%      3.60%         3.60%           N/A
Alaska                Premiums                         Exemption            2.70%       2.70%      2.70%         2.70%           N/A
Arkansas              Premiums                         N/A                  2.50%       2.50%      2.50%         2.50%           N/A
Arizona               Premiums                         Exemption            2.00%       2.00%      2.00%         2.00%           N/A
California            Premiums                         N/A                  2.35%       2.35%      2.35%         2.35%           N/A
Colorado              Premiums                         N/A                  1.00%       2.05%      1.00%         2.05%           N/A
Connecticut (3)       Income & Premiums                Credit               1.75%       1.75%      1.75%         1.75%        9.50%
Delaware (4)          Premiums                         None                 1.75%       1.75%      1.75%         1.75%           N/A
Florida (5)           Income & Premiums                Credit               1.75%       1.75%      1.75%         1.75%        5.50%
Georgia               Premiums                         N/A                  2.25%       2.25%      2.25%         2.25%           N/A
Hawaii (6)            Premiums                         N/A                  2.75%       2.75%      4.27%         4.27%           N/A
Idaho                 Premiums                         N/A                  2.75%       2.75%      2.75%         2.75%           N/A
Illinois              Income or Premiums               Credit               0.50%       0.50%      0.50%         0.50%        4.80%
Indiana (7)           Income or Premiums               None                 2.00%       2.00%      2.00%         2.00%        4.50%
Iowa                  Premiums                         N/A                  2.00%       2.00%      2.00%         2.00%           N/A
Kansas                Income & Premiums                Credit               1.00%       2.00%      1.00%         2.00%           N/A
Kentucky (8)          Capital & Reserves or Premiums   N/A                     N/A      2.00%      2.00%         2.00%           N/A
Louisiana             Premiums                         Credit               2.25%       2.25%      3.00%         3.00%        8.00%
Maine                 Premiums                         N/A                  2.00%       2.00%      2.00%         2.00%           N/A
Maryland              Premiums                         N/A                  2.00%       2.00%      2.00%         2.00%           N/A
Massachusetts (9)     Premiums                         N/A                  2.28%       2.28%      2.28%         2.28%           N/A
Michigan (10)         Gross Receipts (SBT)             N/A                     N/A         N/A        N/A           N/A          N/A
Minnesota             Income & Premiums                Credit               2.00%       2.00%      2.00%         2.00%        9.80%
Mississippi           Income & Premiums                Credit               3.00%       3.00%      3.00%         3.00%        5.00%
Missouri              Premiums                         N/A                  2.00%       2.00%      2.00%         2.00%           N/A
Montana               Premiums                         Exemption            2.75%       2.75%      2.75%         2.75%           N/A
Nebraska (11)         Premiums                         Credit               1.00%       1.00%      1.00%         1.00%        7.81%
Nevada (12)           Premiums                         Credit               3.50%       3.50%      3.50%         3.50%           N/A
New Hampshire (13)    Income & Premiums                Credit               2.00%       2.00%      2.00%         2.00%           N/A
New Jersey            Premiums                         N/A                  2.10%       2.10%      2.10%         2.10%           N/A
New Mexico            Premiums                         N/A                  3.00%       3.00%      3.00%         3.00%           N/A
New York (14)         Income & Premiums                None                 0.70%       0.70%      1.30%         1.30%        9.00%
North Carolina        Premiums                         Exemption            1.90%       1.90%      1.90%         1.90%           N/A
North Dakota          Premiums                         N/A                  2.00%       2.00%      1.75%         1.75%           N/A
Ohio (15)             Income or Premiums               Exemption            2.30%       2.30%      2.30%         2.30%        8.90%
Oklahoma              Premiums                         N/A                  2.25%       2.25%      2.25%         2.25%           N/A
Oregon (16)           Income & Premiums                Credit                  N/A      2.25%         N/A        2.25%        6.60%
Pennsylvania          Premiums                         N/A                  2.00%       2.00%      2.00%         2.00%           N/A
Rhode Island          Premiums                         N/A                  2.00%       2.00%      2.00%         2.00%           N/A
South Carolina (17)   Premiums                         N/A                  0.75%         (17)     2.35%           (17)          N/A
South Dakota          Premiums                         Exemption            2.50%       2.50%      2.50%         2.50%           N/A
Tennessee (18)        Income & Premiums                Credit               1.75%       1.80%      2.50%         2.50%        6.00%
Texas                 Premiums                         N/A                  1.75%       1.75%      3.50%         3.50%           N/A
Utah                  Premiums                         N/A                  2.25%       2.25%      2.25%         2.25%           N/A
Vermont               Premiums                         N/A                  2.00%       2.00%      2.00%         2.00%           N/A
Virginia              Premiums                         N/A                  2.25%       2.25%      2.25%         2.25%           N/A




Page 46                                                                                                     1999 NYS Tax Sourcebook
Table 23: Tax Rates on Insurance Corporations as of January 1, 1999 (Con't)
                                                                                                    Top Rate on Life               Top Rate on P/C*
                                                                                                  Insurance Premiums             Insurance Premiums
                                                                      Credit/Exemption
                                                                      for Other                                                                                    Top Rate
State                          Basis of Tax                           Taxes (1)(2)                 Domestic      Foreign          Domestic         Foreign       on Income
Washington                     Premiums                               N/A                             2.00%       2.00%              2.00%           2.00%              N/A
West Virginia                  Premiums                               N/A                             2.00%       2.00%              2.00%           2.00%              N/A
Wisconsin (19)                 Income or Premiums                     N/A                           Exempt        2.00%              2.00%           2.00%           7.90%
Wyoming                        Premiums                               N/A                             2.50%       2.50%              2.50%           2.50%              N/A
* Property-Casualty.
(1) Several states impose both an income based franchise tax and a premiums based tax on insurance corporations. Four of these provide a credit against the income
based tax for the amount of the premiums tax paid. Three states provide a credit against the premiums based tax for the amount of the income tax paid.
(2) Several states imposing both a franchise tax and a premiums based tax on insurance corporations provide that the premiums tax is paid in lieu of the franchise tax.
These states are described in the table as imposing only a premiums based tax. They may be identified by the "exemption" notation in Credit/Exemption column.
(3) Domestic corporations are required to pay the franchise tax plus the premiums tax. Foreign corporations pay only the premiums tax.
(4) Delaware imposes a graduated privilege tax on domestic insurers with gross receipts of $1 million or more.
(5) A credit is allowed against the premiums tax for the amount of income tax paid.
(6) Rates are rounded.
(7) Domestic corporations may elect to pay the tax on premiums or the tax on income.
(8) Domestic life insurance corporations are taxed on taxable capital and reserves. All others are taxed on premiums.
(9) Includes 14% surtax.
(10) Single business tax. Rate equals 2.3%, plus a 0.26% surcharge on pre-credit liability.
(11) Foreign insurers may pay the lower of the Nebraska corporate income tax rate or the corporate tax rate that applies in their state of domicile.
(12) A Nevada domestic insurer maintaining a qualified home office in Nevada pays a reduced premiums rate of 1.75%. This also applies to a foreign insurer that
establishes a qualified regional home office.
(13) A credit is allowed against the premiums tax equal to the amount of business enterprise tax paid (0.25% of compensation, interest and dividends).
(14) Tax Liability is capped at 2.0% of gross premiums of life insurers and 2.6% for all other insurers.
(15) Domestic corporations are required to pay the franchise tax only. Domestic corporations are required to pay the lower of the capital tax or the tax on gross premiums
between 1997 and 2001, and foreign insurers will become subject to the corporate excise tax.
(16) Between 1997-2001, premiums tax is phased out for foreign and alien insurers and such insurers will be subject to corporate excise tax. Domestic insurers are subject
to corporate excise tax only.
(17) Foreign insurers are subject to a rate equal to the rate imposed by their home state on South Carolina companies if the rate is higher than the South Carolina tax.
(18) The excise/franchise taxes on insurance companies will phase out between 1998 and 2002.
(19) For domestic insurers, income tax is limited to 2.0% of premiums written on insurance risks located in Wisconsin. Foreign insurers are exempt from the franchise and
income tax.
Source: OTPA compilation from Commerce Clearing House, State Tax Guide.




1999 NYS Tax Sourcebook                                                                                                                                          Page 47
Table 24: Top State Bank Tax              Taxes Measured by                                                  Taxes Not Measured
Rates as of January 1, 1999     Rank      Income State                           Rate              Rank      by Income State                  Rate
                               1          California                            10.84             1          Kentucky                        1.500
                               2          Massachusetts (1)                    10.83                         Ohio                            1.500
                               3          Minnesota                              9.80             3          Pennsylvania                    1.250
                               4          Arizona                                9.00             4          Virginia                        1.000
                                           New York                             9.00              5          West Virginia                   0.750
                                          Rhode Island                           9.00             6          Georgia                         0.250
                                          West Virginia                          9.00                        Indiana                         0.250
                               8          Delaware (2)                           8.70                        Mississippi                     0.250
                               9          Connecticut                            8.50                        New Hampshire                   0.250
                                          Indiana                                8.50                        Tennessee                       0.250
                               11         Idaho                                  8.00                        Texas (8)                       0.250
                                          Louisiana                              8.00             12         Florida                         0.150
                               13         Hawaii                                 7.92             13         Oklahoma                        0.125
                               14         Wisconsin                              7.90             14         Maine (9)                       0.008
                               15         New Mexico                             7.60             15         Vermont                         0.004
                               16         New Jersey                             7.25             16         North Carolina                  0.003
                               17         Maryland                               7.00             17         Alaska                            (10)
                                          Missouri                               7.00
                                          North Carolina                         7.00
                                          North Dakota                           7.00
                               21         Montana                                6.75
                               22         Oregon                                 6.60
                               23         Arkansas                               6.50
                               24         Alabama                                6.00
                                          Georgia                                6.00
                                          Oklahoma                               6.00
                                          South Dakota (3)                       6.00
                                          Tennessee                              6.00
                               29         Florida                                5.50
                               30         Colorado                               5.00
                                          Iowa                                   5.00
                                          Mississippi                            5.00
                                          Utah                                   5.00
                               34         Illinois                               4.80
                               35         Kansas (4)                             4.50
                                          South Carolina                         4.50
                                          Texas (5)                              4.50
                               38         Michigan (6)                           2.30
                               39         Maine (7)                              1.00
                               40         Alaska                                  (X)
                                          Kentucky                                (X)
                                          Nebraska                                (X)
                                          Nevada                                  (X)
                                          New Hampshire                           (X)
                                          Ohio                                    (X)
                                          Pennsylvania                            (X)
                                          Vermont                                 (X)
                                          Virginia                                (X)
                                          Washington                              (X)
                                          Wyoming                                 (X)
                                (X) Does not impose tax.
                                (1) Includes a 14% surtax.
                                (2) Beginning in 1997, a 1.7% rate applies to taxable income over $650 million.
                                (3) The tax rate gradually decreases from 6% on net income of $500 million or less to 1% on net income exceeding
                                $600 million.
                                (4) Includes a 2.25% tax surcharge.
                                (5) Tax applies on net taxable earned surplus.
                                (6) Single Business Tax.
                                (7) An additional asset tax ($.08 per $1,000) applies.
                                (8) An additional tax of 4.5% of net taxable earned surplus applies.
                                (9) The tax equals 0.008% of assets plus a 1.0% tax on net income.
                                (10) A biennial corporation tax of $100 for domestic corporations or $200 for foreign corporations applies.
                                Source: Commerce Clearing House "State Tax Guide."


Page 48                                                                                                             1999 NYS Tax Sourcebook
Table 25: Maximum State and Local Combined Sales Tax Rates as of January 1, 1999
                           State Sales Tax Rate                                                                      Maximum State & Local Sales Tax Rate
Rank       State                                           Rate (Percent)                                Rank   State                                   Rate (Percent)
           Average (1)                                             5.144                                        Average (1)                                     7.040
1          Mississippi                                             7.000                                1       Alabama                                        11.000
           Rhode Island                                            7.000                                2       Oklahoma                                       10.000
3          Minnesota                                               6.500                                3       Louisiana                                       9.500
           Nevada                                                  6.500                                4       Colorado                                        9.000
           Washington                                              6.500                                        Illinois                                        9.000
6          Illinois                                                6.250                                6       Arizona                                         8.800
           Texas                                                   6.250                                7       Tennessee                                       8.750
8          California                                              6.000                                        Texas                                           8.750
           Connecticut                                             6.000                                9       Arkansas                                        8.625
           Florida                                                 6.000                                10      Washington                                      8.600
           Kentucky                                                6.000                                11      California                                      8.500
           Michigan                                                6.000                                         New York                                      8.500
           New Jersey                                              6.000                                13      Missouri                                        8.225
           Pennsylvania                                            6.000                                14      Utah                                            7.750
           Tennessee                                               6.000                                15      Kansas                                          7.650
           West Virginia                                           6.000                                16      Florida                                         7.500
17         Maine                                                   5.500                                        Minnesota                                       7.500
18         Arizona                                                 5.000                                18      Mississippi                                     7.250
           Idaho                                                   5.000                                19      Alaska                                          7.000
           Indiana                                                 5.000                                        Georgia                                         7.000
           Iowa                                                    5.000                                        Idaho                                           7.000
           Maryland                                                5.000                                        Nevada                                          7.000
           Massachusetts                                           5.000                                        North Dakota                                    7.000
           New Mexico                                              5.000                                        Ohio                                            7.000
           North Dakota                                            5.000                                        Pennsylvania                                    7.000
           Ohio                                                    5.000                                        Rhode Island                                    7.000
           South Carolina                                          5.000                                27      New Mexico                                      6.938
           Vermont                                                 5.000                                28      Nebraska (3)                                    6.500
           Wisconsin                                               5.000                                29      Connecticut                                     6.000
30         Kansas                                                  4.900                                        Iowa                                            6.000
31         Utah                                                    4.750                                        Kentucky                                        6.000
32         Arkansas                                                4.625                                        Michigan                                        6.000
33         Nebraska (2)                                            4.500                                        New Jersey                                      6.000
           Oklahoma                                                4.500                                        North Carolina                                  6.000
35         Missouri                                                4.225                                        South Carolina                                  6.000
36         Alabama                                                 4.000                                        South Dakota                                    6.000
           Georgia                                                 4.000                                        West Virginia                                   6.000
           Hawaii                                                  4.000                                        Wyoming                                         6.000
           Louisiana                                               4.000                                39      Maine                                           5.500
            New York                                              4.000                                         Wisconsin                                       5.500
           North Carolina                                          4.000                                41      Indiana                                         5.000
           South Dakota                                            4.000                                        Maryland                                        5.000
           Wyoming                                                 4.000                                        Massachusetts                                   5.000
44         Virginia                                                3.500                                        Vermont                                         5.000
45         Colorado                                                3.000                                45      Virginia                                        4.500
46         Alaska                                                     (X)                               46      Hawaii                                          4.000
           Delaware                                                   (X)                               47      Delaware                                           (X)
           Montana                                                    (X)                                       Montana                                            (X)
           New Hampshire                                              (X)                                       New Hampshire                                      (X)
           Oregon                                                     (X)                                       Oregon                                             (X)
 (X) Does not impose tax.
 (1) The U.S. Average is based upon only those states and/or states and localities imposing a sales tax.
 (2) Rate is scheduled to increase to 5% effective July 1, 1999.
 (3) Maximum rate will increase to 7% effective July 1, 1999, due to a scheduled increase in the State rate.
 Source: OTPA compilation from Commerce Clearing House "State Tax Guide" and "Electronic Library."

1999 NYS Tax Sourcebook                                                                                                                                       Page 49
Table 26: State Cigarette Tax    Rank                  State                                                                                       Rate (1)
Rates as of January 1, 1999     1                      Alaska (2)                                                                                     100.0
                                                       Hawaii                                                                                         100.0
                                3                      California                                                                                      87.0
                                4                      Washington                                                                                      82.5
                                5                      New Jersey                                                                                      80.0
                                6                      Massachusetts                                                                                   76.0
                                7                      Michigan                                                                                        75.0
                                8                      Maine                                                                                           74.0
                                9                      Rhode Island                                                                                    71.0
                                10                     Oregon                                                                                          68.0
                                11                     Wisconsin                                                                                       59.0
                                12                     Arizona                                                                                         58.0
                                                       Illinois (2)                                                                                    58.0
                                14                      New York (2)                                                                                  56.0
                                15                     Utah                                                                                            51.5
                                16                     Connecticut                                                                                     50.0
                                17                     Minnesota                                                                                       48.0
                                18                     North Dakota                                                                                    44.0
                                                       Vermont                                                                                         44.0
                                20                     Texas                                                                                           41.0
                                21                     New Hampshire                                                                                   37.0
                                22                     Iowa                                                                                            36.0
                                                       Maryland                                                                                        36.0
                                24                     Nevada                                                                                          35.0
                                25                     Nebraska                                                                                        34.0
                                26                     Florida                                                                                         33.9
                                27                     South Dakota                                                                                    33.0
                                28                     Arkansas                                                                                        31.5
                                29                     Pennsylvania                                                                                    31.0
                                30                     Idaho                                                                                           28.0
                                31                     Delaware                                                                                        24.0
                                                       Kansas                                                                                          24.0
                                                       Ohio (2)                                                                                        24.0
                                34                     Oklahoma                                                                                        23.0
                                35                     New Mexico                                                                                      21.0
                                36                     Colorado                                                                                        20.0
                                                       Louisiana                                                                                       20.0
                                38                     Mississippi                                                                                     18.0
                                                       Montana                                                                                         18.0
                                40                     Missouri (2)                                                                                    17.0
                                                       West Virginia                                                                                   17.0
                                42                     Alabama (2)                                                                                     16.5
                                43                     Indiana                                                                                         15.5
                                44                     Tennessee (2)                                                                                   13.0
                                45                     Georgia                                                                                         12.0
                                                       Wyoming                                                                                         12.0
                                47                     South Carolina                                                                                    7.0
                                48                     North Carolina                                                                                    5.0
                                49                     Kentucky                                                                                          3.0
                                50                     Virginia (2)                                                                                      2.5
                                 (1) All rates are in cents per pack of 20 cigarettes excluding local taxes, federal offsets and other associated taxes.
                                 (2) Counties and/or cities in these states may impose additional taxes per pack.
                                 Source: Commerce Clearing House, State Tax Guide and "State Tax Actions 1998: NCSL Special Fiscal Report,"
                                 State Tax Notes, March 29, 1999, pp. 1039-1078.




Page 50                                                                                                                    1999 NYS Tax Sourcebook
Table 27: State Alcoholic Beverage Excise Tax Rates as of January 1, 1999
           Beer Over 3.2% Alcohol                                             Table Wine                                                  Distilled Spirits (1)
 Rank       State                      Rate (2)     Rank       State                            Rate (2)             Rank     State                                Rate (2)
1           Hawaii                        $0.93 1              Florida                    $2.25 under 17.259% 1               Washington (3)(6)              $9.24
2           South Carolina                $0.77 2              Iowa (3)                   $1.75                     2         Florida                        $6.50 17.259-55.78%
3           Alabama (3)                   $0.53 3              Alabama (3)                $1.70                     3          New York                    $6.43 over 24%
4           Florida                       $0.48                New Mexico                 $1.70 14% or less         4         New Mexico                     $6.06
            Georgia                       $0.48 5              Georgia                    $1.51 14% or less         5         Hawaii                         $5.98
            North Carolina (3)            $0.48                Virginia (3)               $1.51                     6         Alaska                         $5.60
7           Mississippi (3)               $0.43 7              Hawaii                     $1.38 still               7         Oklahoma                       $5.56
8           New Mexico                    $0.41 8              Tennessee                  $1.10                     8         Minnesota                      $5.03 over 25%
9           Oklahoma                      $0.40 9              Montana (3)                $1.06                     9         Connecticut                    $4.50
10          Alaska                        $0.35 10             West Virginia (3)          $1.00                     10        New Jersey                     $4.40
            Maine (3)                     $0.35 11             Delaware                   $0.97                     11        Massachusetts                  $4.05
            Utah (3)                      $0.35 12             South Dakota               $0.93                     12        Tennessee                      $4.00 over 15%
13          Louisiana                     $0.32 13             South Carolina             $0.90                     13        South Dakota                   $3.93 over 7%
14          New Hampshire (3)             $0.30 14             Washington (3)             $0.87 14% or less         14        Georgia                        $3.79 over 14%
            Washington (3)                $0.30 15             Alaska                     $0.85                     15        Delaware                       $3.75
16          South Dakota                  $0.27 16             Arizona                    $0.84                               Rhode Island                   $3.75
            Vermont (3)                   $0.27 17             North Carolina (3)         $0.79                     17        California                     $3.30
18          Virginia (3)                  $0.26 18             Arkansas                   $0.75                     18        Wisconsin                      $3.25
19          Arkansas                      $0.23                Nebraska                   $0.75 14% or less         19        Arizona                        $3.00
            Nebraska                      $0.23 20             Oklahoma                   $0.72 14% or less                   Nebraska                       $3.00
21          California                    $0.20 21             New Jersey                 $0.70                     21        South Carolina                 $2.72
            Michigan (3)                  $0.20 22             Oregon (3)                 $0.67                     22        Indiana                        $2.68 21% or more
23          Connecticut                   $0.19 23             Connecticut                $0.60 21% or less         23        Arkansas                       $2.50
            Iowa (3)                      $0.19                Maine (3)                  $0.60                               Kansas                         $2.50
            Texas                         $0.19                Rhode Island               $0.60 still                         Louisiana                      $2.50
26          Kansas                        $0.18 26             Massachusetts              $0.55                               North Dakota                   $2.50 distilled
            Ohio (3)                      $0.18                Vermont (3)                $0.55                     27        Texas                          $2.40
            West Virginia (3)             $0.18 28             Michigan (3)               $0.51                     28        Colorado                       $2.28
29          Arizona                       $0.16 29             Kentucky                   $0.50                     29        Nevada                         $2.05
            Delaware                      $0.16                North Dakota               $0.50 17% or less         30        Illinois                       $2.00 over 14%
            North Dakota                  $0.16 31             Indiana                    $0.47 15% or less                   Missouri                       $2.00
32          Idaho (3)                     $0.15 32             Idaho (3)                  $0.45                     32        Kentucky                       $1.92
            Minnesota                     $0.15 33             Maryland                   $0.40                     33        Maryland                       $1.50
34          Montana (3)                   $0.14                Nevada                     $0.40 14% or less         34        Wyoming (3)(5)                 $0.94
35           New York                 ********* 35             Mississippi (3)            $0.35                     35        North Carolina (3)              80% markup
36          Tennessee                     $0.13 36             Colorado                   $0.32                     36        Maine (3)                       75% markup +
37          New Jersey                    $0.12                Ohio (3)                   $0.32                     37        Michigan (3)                    65% markup
            Indiana                       $0.12 38             Kansas                     $0.30 14% or less         38        Utah (3)(6)                     61% markup
39          Massachusetts                 $0.11                Minnesota                  $0.30 14% or less         39        Iowa (3)                        50% markup
40          Rhode Island                  $0.10                Missouri                   $0.30                     40        Idaho (3)                       48% markup
41          Maryland                      $0.09 41             Wyoming (3)(4)             $0.28                     41        New Hampshire (3)               47% markup
            Nevada                        $0.09 42             Wisconsin                  $0.25 14% or less         42        Virginia (3)                    45% markup
43          Colorado                      $0.08 43             Illinois                   $0.23 14% or less         43        Ohio (3)                    42.86% markup
            Kentucky                      $0.08 44             California                 $0.20                     44        Montana (3)                     40% markup
            Oregon (3)                    $0.08                Texas                      $0.20 14% or less         45        Alabama (3)                     30% retail markup
            Pennsylvania (3)              $0.08 46              New York                 $0.19 still                          Pennsylvania (3)                30% markup
47          Illinois                      $0.07 47             Louisiana                  $0.11 14% or less         47        Mississippi (3)                 27% markup
48          Missouri                      $0.06 48             New Hampshire (3)           66% markup               48        Vermont (3)                     25% markup
            Wisconsin                     $0.06 49             Utah (3)(5)                 61% markup                         West Virginia (3)               25% markup
50          Wyoming (3)                   $0.02 50             Pennsylvania (3)            30% markup               50        Oregon (3)                    113% markup
 (1) All taxes on spirits are levied for a "proof gallon" defined as a gallon of liquor containing 50% ethyl alcohol. Taxes on liquor containing more or less than 50% alcohol
 are prorated accordingly.
 (2) Rates are in cents per gallon.
 (3) Indicates control states. In general, these states have a monopoly on the wholesale distribution of distilled spirits. Revenues in control states are derived from a
 markup on the wholesale price that yields profits. In some of these states, the state also monopolizes retail sales and applies sales taxes.
 (4) In addition, a 17.6% markup is applied.
 (5) In addition, a 13.0% school lunch tax markup is applied.
 (6) In addition, a 39.2% markup and a 20.5% liquor sales tax is applied.
 Source: OTPA compilation from various sources including CCH State Tax Guide, Federation of Tax Administrators, Distilled Spirits Council of the United States, and
 "State Tax Actions 1998: NCSL Special Fiscal Report," State Tax Notes, March 29, 1999, pp. 1039-1078.


1999 NYS Tax Sourcebook                                                                                                                                                Page 51
Table 28: State Inheritance and Estate Tax Rates and Exemptions as of January 1, 1999
                                                                   Max Rate on Transfers                       Taxable Amount on                 Spousal
State                               Type of Tax (1)                          to Children (2)               Which Max. Rate Applies               Exemption
Alabama                             Pick-up tax only                                 16.00%                           $10.1 million              Yes, Full
Alaska                              Pick-up tax only                                 16.00%                           $10.1 million              Yes, Full
Arizona                             Pick-up tax only                                 16.00%                           $10.1 million              Yes, Full
Arkansas                            Pick-up tax only                                 16.00%                           $10.1 million              Yes, Full
California                          Pick-up tax only                                 16.00%                           $10.1 million              Yes, Full
Colorado                            Pick-up tax only                                 16.00%                           $10.1 million              Yes, Full
Connecticut (3)(4)                  Inheritance tax                                  10.00%                              $1 million              Yes, Full
Delaware                            Pick-up tax only                                 16.00%                           $10.1 million              Yes, Full
Florida                             Pick-up tax only                                 16.00%                           $10.1 million              Yes, Full
Georgia                             Pick-up tax only                                 16.00%                           $10.1 million              Yes, Full
Hawaii                              Pick-up tax only                                 16.00%                           $10.1 million              Yes, Full
Idaho                               Pick-up tax only                                 16.00%                           $10.1 million              Yes, Full
Illinois                            Pick-up tax only                                 16.00%                           $10.1 million              Yes, Full
Indiana                             Inheritance tax                                  10.00%                            $1.5 million              Yes, Full
Iowa                                Inheritance tax                                   8.00%                              $150,000                Yes, Full
Kansas                              Pick-up tax only                                 16.00%                           $10.1 million              Yes, Full
Kentucky                            Inheritance tax                                  10.00%                              $500,000                Yes, Full
Louisiana (3)(6)                    Inheritance tax                                   3.00%                               $20,000                Yes, Full
Maine                               Pick-up tax only                                 16.00%                           $10.1 million              Yes, Full
Maryland                            Inheritance tax                                   1.00%                        Entire Transfer               Full for all real property
Massachusetts                       Pick-up tax only                                 16.00%                           $10.1 million              Yes, Full
Michigan                            Pick-up tax only                                 16.00%                           $10.1 million              Yes, Full
Minnesota                           Pick-up tax only                                 16.00%                           $10.1 million              Yes, Full
Mississippi                         Estate tax                                       16.00%                             $10 million              Property up to $600,000
Missouri                            Pick-up tax only                                 16.00%                           $10.1 million              Yes, Full
Montana                             Inheritance tax                                   8.00%                              $100,000                Class A property
Nebraska                            Inheritance tax                                   1.00%                               $60,000                Yes, Full
Nevada                              Pick-up tax only                                 16.00%                           $10.1 million              Yes, Full
New Hampshire                       Inheritance tax                                  16.00%                           $10.1 million              Yes, Full
New Jersey                          Inheritance tax                                  16.00%                            $1.7 million              Yes, Full
New Mexico                          Pick-up tax only                                 16.00%                           $10.1 million              Yes, Full
 New York (3)(7)                    Estate tax                                     21.00%                          $10.1 million                 Yes, Full
North Carolina                      Pick-up tax only                                 16.00%                           $10.1 million              Yes, Full
North Dakota                        Pick-up tax only                                 16.00%                           $10.1 million              Yes, Full
Ohio                                Estate tax                                        7.00%                              $500,000                Yes, Full
Oklahoma                            Estate tax                                       10.00%                             $10 million              Yes, Full
Oregon                              Pick-up tax only                                 16.00%                           $10.1 million              Yes, Full
Pennsylvania                        Inheritance tax                                   6.00%                        Entire Transfer               Yes, Partial
Rhode Island                        Pick-up tax only                                 16.00%                           $10.1 million              Yes, Full
South Carolina                      Pick-up tax only                                 16.00%                           $10.1 million              Yes, Full
South Dakota                        Inheritance tax                                   7.50%                              $100,000                Yes, Full
Tennessee (3)                       Inheritance tax                                   9.50%                              $440,000                Yes, Full
Texas                               Pick-up tax only                                 16.00%                           $10.1 million              Yes, Full
Utah                                Pick-up tax only                                 16.00%                           $10.1 million              Yes, Full
Vermont                             Pick-up tax only                                 16.00%                           $10.1 million              Yes, Full
Virginia                            Pick-up tax only                                 16.00%                           $10.1 million              Yes, Full
Washington                          Pick-up tax only                                 16.00%                           $10.1 million              Yes, Full
West Virginia                       Pick-up tax only                                 16.00%                           $10.1 million              Yes, Full
Wisconsin                           Pick-up tax only                                 16.00%                           $10.1 million              Yes, Full
Wyoming                             Pick-up tax only                                 16.00%                           $10.1 million              Yes, Full
(1) All states have federal pick-up tax as minimum, the effective top rate is at least 16% in every state.
(2) Inheritance taxes have different classes and rates. As the pickup tax applies as a minimum tax, effective maximum rates on transfers to children are at least 16%.
Lower rates apply only when the pick-up minimum tax does not.
(3) States with added gift tax.
(4) Phasing in to a pick-up tax by 2005.
(5) Inheritance tax replaced by a pick-up tax effective January 1, 1999.
(6) Phasing in to a pick-up tax by 2004.
(7) Estate tax replaced by a pick-up tax by February 1, 2000 and gift tax repealed January 1, 2000.
Source: OTPA compilation, from (in part) Significant Features of Fiscal Federalism, Vol. 1 Budget Processes and Tax Systems, ACIR, September 1995.



Page 52                                                                                                                                     1999 NYS Tax Sourcebook
Table 29: State and Local                        State Excise Taxes                                              All State & Local Taxes
Tax Rates on Gasoline as    Rank        State                        Tax Rate (1)                Rank      State                       Tax Rate (1)(2)
of January 1, 1999                      Average                             18.81                          Average                              22.59
                            1           Connecticut                         32.00               1          Illinois                             39.08
                            2           Montana                             27.00               2          Connecticut                          34.75
                            3           Idaho                               25.00               3          Hawaii                               32.60
                                        Rhode Island                        25.00               4          Nevada                               32.41
                            5           Utah                                24.50               5           New York                          31.69
                            6           Nevada                              24.00               6          Florida                              29.80
                                        Oregon                              24.00               7          California                           29.12
                            8           Wisconsin                           23.80               8          Rhode Island                         29.00
                            9           Maryland                            23.50               9          Michigan                             27.98
                                        Nebraska                            23.50               10         Montana                              27.75
                            11          Delaware                            23.00               11         Idaho                                26.00
                                        Washington                          23.00                          Oregon                               26.00
                            13          Colorado                            22.00               13         Pennsylvania                         25.90
                                        Ohio                                22.00               14         West Virginia                        25.35
                                        South Dakota                        22.00               15         South Dakota                         25.00
                            16          North Carolina                      21.60               16         Wisconsin                            24.80
                            17          Massachusetts                       21.00               17         Utah                                 24.75
                            18          West Virginia                       20.50               18         Nebraska                             24.40
                            19          Iowa                                20.00               19         Delaware                             23.61
                                        Louisiana                           20.00               20         Maryland                             23.50
                                        Minnesota                           20.00                          Washington                           23.50
                                        North Dakota (3)                    20.00               22         Colorado                             23.10
                                        Tennessee                           20.00               23         Tennessee                            22.40
                                        Texas                               20.00               24         Ohio                                 22.00
                            25          Illinois                            19.00               25         North Carolina                       21.60
                                        Maine                               19.00               26         Mississippi                          21.40
                                        Michigan                            19.00               27         Alabama                              21.00
                                        Vermont                             19.00                          Iowa                                 21.00
                            29          Arkansas                            18.50                          Massachusetts                        21.00
                            30          Arizona                             18.00               30         New Mexico                           20.87
                                        California                          18.00               31         Maine                                20.14
                                        Kansas                              18.00               32         Louisiana                            20.00
                                        Mississippi                         18.00                          Minnesota                            20.00
                                        New Hampshire                       18.00                          North Dakota                         20.00
                            35          Virginia                            17.50                          Texas                                20.00
                            36          Missouri                            17.00                          Vermont                              20.00
                                        New Mexico                          17.00               37         Virginia                             19.50
                            38          Alabama                             16.00               38         Arizona                              19.00
                                        Hawaii                              16.00               39         Indiana                              18.90
                                        Oklahoma                            16.00               40         New Hampshire                        18.70
                                        South Carolina                      16.00               41         Arkansas                             18.60
                            42          Indiana                             15.00               42         Kansas                               18.00
                                        Kentucky                            15.00               43         Missouri                             17.05
                            44          Wyoming                             13.00               44         Oklahoma                             17.00
                            45          Pennsylvania                        12.00               45         South Carolina                       16.75
                            46          New Jersey                          10.50               46         Kentucky                             16.40
                            47          Alaska                               8.00               47         New Jersey                           14.50
                                         New York                           8.00                48         Wyoming                              14.00
                            49          Georgia                              7.50               49         Georgia                              11.53
                            50          Florida                              4.00               50         Alaska                                8.00
                             (1) Rates are in cents per gallon.
                             (2) Maximum combined rate includes all state and local sales, gross receipts, excise, and other non-income taxes of at
                             least 0.4 cents per gallon. Computation starts with assumed price of $1.00 per gallon, including federal excise taxes,
                             before state or local taxes.
                             (3) Rate is scheduled to increase to 21 cents per gallon effective July 1, 1999.
                             Source: OTPA compilation from various sources including CCH State Tax Guide, Federation of Tax Administrators,
                             and "State Tax Actions 1998: NCSL Special Fiscal Report," State Tax Notes, March 29, 1999, pp. 1039-1078.



1999 NYS Tax Sourcebook                                                                                                                      Page 53
Table 30: Major State Tax Increases or Decreases, 1992-1998
                                                                         Tax Increases (1)
1992                      1993                      1994                      1995                 1996            1997              1998
 Personal Income
 Kansas                   Illinois (2)                New York (2)              Hawaii                             Maine
 Maryland                 Montana
 Montana                   New York (2)
  New York (2)            Ohio
 Ohio
 Rhode Island




Sales & Use
Florida                   Maine (2)                  Michigan                   South Dakota       Louisiana (2)   Vermont
Iowa                      Vermont (2)                                           Vermont (2)        Vermont (2)     Wisconsin
Kansas                    Wyoming
Louisiana
Maryland
Mississippi
Ohio
Tennessee

Corporate Income & Other Major Business
Montana             Missouri
New York (2)        Montana
                    New York (2)
                    Washington

Cigarettes
Maryland                  Arkansas                   Idaho                      Arizona            Massachusetts   Alaska
Minnesota                 Connecticut                Michigan                   Oregon (2)         Oregon          Hawaii
Montana                   Hawaii                                                South Dakota       Utah            Illinois
Ohio                      Illinois                                              Washington                         Maine
Vermont                   Maine                                                 Wisconsin                          New Hampshire
Wisconsin                 Missouri                                                                                 New Jersey
                          Nebraska                                                                                 Oregon
                          New Mexico                                                                               Rhode Island
                           New York                                                                                Utah
                          North Dakota                                                                             Wisconsin
                          Rhode Island
                          Washington

Motor Fuel
Alabama                   Connecticut                Kentucky                   Connecticut        Idaho           Michigan
Connecticut               Delaware                   Missouri                                                      Pennsylvania
Kansas                    Montana                                                                                  Utah
Maryland                  New Mexico                                                                               Vermont
Missouri                  Oregon                                                                                   Wisconsin
Montana                   Rhode Island
Ohio                      West Virginia

Alcoholic Beverages
Montana                                                                           Tennessee
Ohio
(1) Major tax increases and decreases refers to rate changes and ‘significant' tax base changes.
(2) Postponed scheduled decrease.

Page 54                                                                                                                    1999 NYS Tax Sourcebook
Table 30: Major State Tax Increases or Decreases, 1992-1998 (Con't)
                                                                      Tax Decreases (1)
1992                     1993                      1994                    1995                        1996             1997             1998
 Personal Income
 Massachusetts           Vermont                   Arizona                   Arizona                   Connecticut      Arizona          California
 Pennsylvania                                      Michigan                  Delaware                  New Jersey       California       Connecticut
                                                   New Jersey                Iowa                      New York         Iowa             Georgia
                                                   New Mexico                Kentucky                  Ohio             Massachusetts    Hawaii
                                                    New York (3)             Michigan                                    New York        Illinois
                                                                             New Jersey                                 Ohio             Iowa
                                                                              New York                                                   Kansas
                                                                             Virginia                                                    Maryland
                                                                                                                                         Massachusetts
                                                                                                                                         Missouri
                                                                                                                                         New Jersey
                                                                                                                                         North Carolina
                                                                                                                                         Ohio
                                                                                                                                         Pennsylvania
                                                                                                                                         Wisconsin
Sales & Use
New Jersey                                                                   Kansas                    Georgia          Georgia          Maine
                                                                             Washington                New Jersey       Louisiana        Nebraska
                                                                                                       North Carolina   Missouri         New York
                                                                                                       Washington




Corporate Income & Other Major Business
                    New Hampshire       Michigan                             Michigan                  California       New York         Connecticut
                    Rhode Island        New Jersey                           New Jersey                Connecticut      North Carolina   Ohio
                    Texas                New York                            Oregon                    Massachusetts                     Pennsylvania
                                        Pennsylvania                         Pennsylvania              North Carolina
                                                                                                       Washington
Cigarettes




Motor Fuel
                                                   New Mexico                New Mexico                Indiana          Connecticut      Connecticut
                                                                                                        New York        North Dakota
                                                                                                                        South Dakota




Alcoholic Beverages
                                                    New York                                            New York        Washington

(3) New York earned income tax credit introduced for low-income taxpayers.
Source: Adapted from National Conference of State Legislatures "State Tax Actions" (Selected Years).


1999 NYS Tax Sourcebook                                                                                                                           Page 55
Table 31: Dates of Adoption of Major State Taxes
                                                                Individual Income
Before 1911            1911-20               1921-30                    1931-40                1941-60               Since 1961
Hawaii, 1901           Wisconsin, 1911       North Carolina, 1921       Idaho, 1931            Alaska, 1949          West Virginia, 1961
Total: 1               Mississippi, 1912     South Carolina, 1922       Tennessee, 1931 (1)    Total: 1              Indiana, 1963
                       Oklahoma, 1915        New Hampshire, 1923 (1) Utah, 1931                                      Michigan, 1967
                       Massachusetts, 1916   Arkansas, 1929             Vermont, 1931                                Nebraska, 1967
                       Virginia, 1916        Georgia, 1929              Alabama, 1933                                Connecticut, 1969 (2) 1991 (3)
                       Delaware, 1917        Oregon, 1930               Arizona, 1933                                Illinois, 1969
                       Missouri, 1917        Total: 6                   Kansas, 1933                                 Maine, 1969
                        New York, 1919                                  Minnesota, 1933                              Ohio, 1971
                       North Dakota, 1919                               Montana, 1933                                Pennsylvania, 1971
                       Total: 9                                         New Mexico, 1933                             Rhode Island, 1971
                                                                        Iowa, 1934                                   New Jersey, 1976
                                                                        Louisiana, 1934                              Total: 11
                                                                        California, 1935
                                                                        Kentucky, 1936                               Repealed
                                                                        Colorado, 1937                               Alaska, 1979
                                                                        Maryland, 1937
                                                                        Total: 16                                    Grand Total: 43
                                                               Corporation Income
Before 1911            1911-20               1921-30                    1931-40                1941-60               Since 1961
Hawaii, 1901           Wisconsin, 1911       Mississippi, 1921          Idaho, 1931            Rhode Island, 1947    Indiana, 1963
Total: 1               Connecticut, 1915     North Carolina, 1921       Oklahoma, 1931         Alaska, 1949          Michigan, 1967
                       Virginia, 1915        South Carolina, 1922       Utah, 1931             Delaware, 1957        Nebraska, 1967
                       Missouri, 1917        Tennessee, 1923            Vermont, 1931          New Jersey, 1958      West Virginia, 1967
                       Montana, 1917         Arkansas, 1929             Alabama, 1933          Total: 4              Illinois, 1969
                        New York, 1917       California, 1929           Arizona, 1933                                Maine, 1969
                       Massachusetts, 1919   Georgia, 1929              Kansas, 1933                                 New Hampshire, 1970
                       North Dakota, 1919    Oregon, 1929               Minnesota, 1933                              Florida, 1971
                       Total: 8              Total: 8                   New Mexico, 1933                             Ohio, 1971
                                                                        Iowa, 1934                                   Total: 10
                                                                        Louisiana, 1934
                                                                        Pennsylvania, 1935
                                                                        Kentucky, 1936                               Repealed
                                                                        Colorado, 1937                               Michigan, 1976
                                                                        Maryland, 1937
                                                                        Total: 15                                    Grand Total: 45
                                                                  General Sales
                    1930-40                  1941-50                    1951-60                Since 1961
Mississippi, 1930      West Virginia, 1933   Connecticut, 1947          Georgia, 1951          Texas, 1961
Arizona, 1933          Missouri, 1934        Maryland, 1947             Maine, 1951            Wisconsin, 1961
California, 1933       Ohio, 1934            Rhode Island, 1947         South Carolina, 1951   Idaho, 1965
Illinois, 1933         Arkansas, 1935        Tennessee, 1947            Pennsylvania, 1953      New York, 1965
Indiana, 1933 (4)      Colorado, 1935        Florida, 1949              Nevada, 1955           Massachusetts, 1966
Iowa, 1933             Hawaii, 1935          Total: 5                   Kentucky, 1960         New Jersey, 1966
Michigan, 1933         North Dakota, 1935                               Total: 6               Virginia, 1966
New Mexico, 1933       Wyoming, 1935                                                           Minnesota, 1967
Oklahoma, 1933         Alabama, 1936                                                           Nebraska, 1967
North Carolina, 1933 Kansas, 1937                                                              Vermont, 1969
South Dakota, 1933     Louisiana, 1938                                                         Total: 10
Utah, 1933             Total: 24
Washington, 1933                                                                               Grand Total: 45




Page 56                                                                                                              1999 NYS Tax Sourcebook
Table 31: Dates of Adoption of Major State Taxes (Con't)
                                                                    Gasoline
1911-20                                                1921-30                                Since 1931
Colorado, 1919         Arizona, 1921          California, 1923          Iowa, 1925            Hawaii, 1932
New Mexico, 1919       Arkansas, 1921         Delaware, 1923            Kansas, 1925          Alaska, 1946
North Dakota, 1919     Connecticut, 1921      Idaho, 1923               Michigan, 1925        Total: 2
Oregon, 1919           Florida, 1921          Indiana, 1923             Minnesota, 1925
Kentucky, 1920         Georgia, 1921          Maine, 1923               Missouri, 1925
Total: 5               Louisiana, 1921        Nevada, 1923              Nebraska, 1925
                       Montana, 1921          New Hampshire, 1923       Ohio, 1925
                       North Carolina, 1921   Oklahoma, 1923            Rhode Island, 1925
                       Pennsylvania, 1921     Tennessee, 1923           Wisconsin, 1925
                       Washington, 1921       Texas, 1923               Illinois, 1927
                       Maryland, 1922         Utah, 1923                New Jersey, 1927
                       Mississippi, 1922      Vermont, 1923             Massachusetts, 1929
                       South Carolina, 1922   Virginia, 1923             New York, 1929
                       South Dakota, 1922     West Virginia, 1923       Total: 43
                       Alabama, 1923          Wyoming, 1923
                                                                    Cigarettes
1921-30                1931-40                1941-50                  1951-60                Since 1961
Iowa, 1921             Ohio, 1931             Illinois, 1941           Wyoming, 1951          Colorado, 1964
South Carolina, 1923   Texas, 1931            Maine, 1941              Missouri, 1955         Oregon, 1965
South Dakota, 1923     Louisiana, 1932        Delaware, 1943           Maryland, 1958         North Carolina, 1969
Utah, 1923             Mississippi, 1932      Florida, 1943            California, 1959       Total: 3
Tennessee, 1925        Oklahoma, 1933         New Mexico, 1943         Virginia, 1960
Kansas, 1927           Alabama, 1935          Idaho, 1945              Total: 5
North Dakota, 1927     Arizona, 1935          Indiana, 1947
Arkansas, 1929         Connecticut, 1935      Michigan, 1947
Total: 8               Washington, 1935       Minnesota, 1947
                       Kentucky, 1936         Montana, 1947
                       Georgia, 1937          Nebraska, 1947
                       Pennsylvania, 1937     Nevada, 1947
                       Vermont, 1937          West Virginia, 1947
                       Hawaii, 1939           New Jersey, 1948
                       Massachusetts, 1939    Alaska, 1949
                       New Hampshire, 1939    Total: 15
                        New York, 1939
                       Rhode Island, 1939
                       Wisconsin, 1939
                       Total: 19                                                              Grand Total: 50




1999 NYS Tax Sourcebook                                                                                              Page 57
Table 31: Dates of Adoption of Major State Taxes (Con't)
                                                                        Distilled Spirits
                                   1933-40                                      Since 1941
Arizona, 1933          Kentucky, 1934              Nevada, 1935                 Kansas, 1948
Colorado, 1933         Louisiana, 1934             South Carolina, 1935         Alaska, 1959
Delaware, 1933         Minnesota, 1934             South Dakota, 1935           Oklahoma, 1959
Indiana, 1933          Missouri, 1934              Texas, 1935                  Mississippi, 1966
Maryland, 1933         New Mexico, 1934            North Dakota, 1936           Total: 4
Massachusetts, 1933    Wisconsin, 1934             Connecticut, 1937
New Jersey, 1933       Arkansas, 1935              Georgia, 1937
 New York, 1933        California, 1935            Hawaii, 1939
Rhode Island, 1933     Florida, 1935               Tennessee, 1939
Illinois, 1934         Nebraska, 1935              Total: 29                                                   Grand Total: 33
Individual Income:
A total of 43 states impose an individual income tax. Those without a tax are: Alaska, Florida, Nevada, South Dakota, Texas, Washington, Wyoming. New Hampshire
and Tennessee impose a narrow-based tax on interest and dividends only.
Corporation Income:
A total of 46 states impose a corporation income tax. Those without a tax are: Nevada, South Dakota, Washington, and Wyoming. Michigan repealed the corporate
income tax in 1976 and replaced it with a single business tax, which is a modified value-added tax. Washington has a business and occupation tax.
(1) Interest and dividends only.
(2) Capital gains, interest and dividends only.
(3) Tax on all income.
General Sales:
A total of 45 states impose a general sales tax. Those without a tax are: Alaska, Delaware, Montana, New Hampshire, and Oregon.
(4) Gross income tax. In 1963 Indiana enacted a 2% retail sales and use tax.
Source: Adapted from U.S. Advisory Commission on Intergovernmental Relations, Significant Features of Fiscal Federalism, Volume 1, 1995.




Page 58                                                                                                                            1999 NYS Tax Sourcebook
Table 32: State Personal Income Tax Linkages to Federal Law
                                                                         Linked to                  Automatically       Linked to Federal    Linked to
No Personal          No Federal                Automatically             FAGI* at a                 Linked to Federal   Taxable Income       Federal Tax
Income Tax           Linkage                   Linked to FAGI*           Point in Time              Taxable Income      at a Point in Time   Liability
Alaska               Alabama                   Connecticut               Arizona                    Colorado (4)        Idaho (8)            North Dakota (9)
Florida              Arkansas                  Delaware                  California                 New Mexico (5)      Minnesota            Rhode Island
Nevada               Mississippi               Illinois                  Georgia                    Oklahoma (6)        North Carolina       Vermont
South Dakota         New Hampshire (1)         Kansas                    Hawaii                     Utah (7)            Oregon
Texas                New Jersey                Louisiana                 Indiana                                        South Carolina
Washington           Pennsylvania              Maryland                  Iowa
Wyoming              Tennessee (1)             Michigan (2)              Kentucky
                                               Missouri                  Maine
                                               Montana                   Massachusetts (3)
                                               Nebraska                  West Virginia
                                                New York                 Wisconsin
                                               Ohio
                                               Virginia
* Federal adjusted gross income.
(1) Tax on certain sources of unearned income only.
(2) Michigan provides for the option of linking to FAGI as of 1/1/96.
(3) Massachusetts is linked to federal gross income and certain adjustments.
(4) Requires add-back of deduction for state income taxes.
(5) Technically linked to FAGI, but exemption and deduction amounts are equal to federal amounts.
(6) Adjustments made to federal deductions and exemptions.
(7) Allow only 75% of federal personal exemptions.
(8) Linked to exemptions and certain deductions, not directly to taxable income.
(9) Allow only 75% of federal personal exemptions based on federal tax liability.
Source: NYS Department of Taxation and Finance, Office of Tax Policy Analysis.




1999 NYS Tax Sourcebook                                                                                                                               Page 59
Table 33: Miscellaneous                                 Conformity to Federal Credit for Child and Dependent Care
Linkages of States to Certain                             Percent of                                                    Percent of
Items of Federal Law as of                                Federal Credit                                                Federal Credit
January 1, 1999                 Arkansas                  20%                                   Massachusetts           D
                                California                30%                                   Minnesota               (1)
                                Colorado                  50% - 10%                             Nebraska                100% - 25%*
                                Delaware                  50%                                    New York               100% - 20% (2)*
                                Hawaii                    D                                     North Carolina          13% - 7% (3)
                                Idaho                     D                                     Ohio                    35% - 25%
                                Iowa                      75% - 0%                              Oklahoma                20%
                                Kansas                    25%                                   Oregon                  30% - 0% (3)
                                Kentucky                  20%                                   Rhode Island            26.5%
                                Louisiana                 10%                                   South Carolina          7% (3)
                                Maine                     25%                                   Vermont                 25%
                                Maryland                  D                                     Virginia                D
                                * Credit is refundable for residents.
                                D - State allows a deduction of the federal calculated expense.
                                (1) Minnesota allows the full federal tax credit subject to limits which decline with income.
                                (2) Credit is 100% below $35,000. It then phases-down to 20% above $50,000.
                                (3) North Carolina, Oregon, and South Carolina calculate the state credit based on a percent of federal expense.
                                                                Conformity to Federal Earned Income Tax Credit
                                                                                                Percent of
                                                                                                Federal Credit
                                Iowa                                                            6.5%
                                Kansas                                                          10%*
                                Maryland                                                        50%**
                                Massachusetts                                                   10%*
                                Minnesota                                                       (1)*
                                Oregon                                                          5%
                                Rhode Island                                                    Credit Results from Federal Liability Starting Point
                                Vermont                                                         Credit Results from Federal Liability Starting Point*
                                Wisconsin                                                       (2)*
                                  New York                                                      20%*
                                * Credit is refundable for residents.
                                **Partly refundable.
                                (1) Credit is not based on the federal credit, but on earned income: no children (1.1475%), 1 child (6.8-8.5%), and
                                two or more children (8-20%).
                                (2) 4% of the federal credit for one child, 14% for two children, 43% for 3 or more children.
                                                            States Allowing a Deduction for Federal Income Taxes
                                Alabama                                                                                 North Dakota (2)
                                Iowa                                                                                    Oklahoma (3)
                                Louisiana                                                                               Oregon
                                Missouri (1)                                                                            Utah (4)
                                Montana
                                (1) Limitied to $10,000 joint filers and $5,000 for single filers.
                                (2) Taxpayers must use ‘long form', rather than basing state tax on federal liability. About 10% of filers use
                                ‘long form.'
                                (3) Taxpayers must use a separate tax table.
                                (4) One-half of the federal taxes are deductible.
                                                                 Conformity to Federal Alternative Minimum Tax
                                Corporate Income Tax                                                                    Personal Income Tax
                                Alaska                                                                                  California
                                California                                                                              Colorado
                                Florida                                                                                 Iowa
                                Iowa                                                                                    Maine
                                Maine (1)                                                                               Minnesota
                                Minnesota                                                                                New York (1)
                                  New York (2)                                                                          West Virginia
                                North Dakota                                                                            Wisconsin
                                Pennsylvania (1)
                                (1) State does not have an AMT but links to several tax preferences in the federal code.
                                (2) State AMT does not include federal adjustment for adjusted current earnings.
                                Source: Federation of Tax Administrators, Commerce Clearing House State Tax Guide, and updated by OTPA.



Page 60                                                                                                                  1999 NYS Tax Sourcebook
 Personal Income Tax


                          New York adopted its personal income tax in 1919. Currently 43 states
                          impose a personal income tax. Two of these states – New Hampshire
                          and Tennessee – tax only certain forms of unearned income.
                          New York’s personal income tax has consistently accounted for slightly
                          more than half of all State tax revenues for many years.

                          New York’s personal income tax starts from federal adjusted gross
Adjusted Gross            income (FAGI). Taxpayers may exclude from FAGI U.S. government
Income                    bond interest, social security benefits, all federal, New York State and
                          local pension income, up to $20,000 of qualifying private pension and
                          annuity income, a limited amount of long-term care insurance costs, and
                          certain other items of income.

                          Individuals may contribute up to $5,000 per year under the College
                          Choice Tuition Savings Program. Aggregate contributions may not
                          exceed $100,000 per beneficiary. Contributions are deductible from
                          FAGI. Distributions are exempt from tax if used to pay for qualified
                          higher education expenses.

                          Taxpayers must then add back interest on bonds issued by other states
                          and their localities and other special items exempt from federal tax but
                          taxable for New York purposes. This results in New York adjusted gross
                          income (NYAGI).

                          Taxpayers may choose either the standard deduction or New York
Deductions                itemized deductions. However, taxpayers using the federal standard
                          deduction must use the New York standard deduction. For 1999, the
                          New York standard deduction equals:




1999 NYS Tax Sourcebook                                                                      Page 61
Table 34: New York          Married Filing Jointly                                                      $13,000
Standard Deductions, 1999   Heads of Households                                                         $10,500
                            Single Individuals                                                          $ 7,500
                            Married Filing Separately                                                   $ 6,500
                            Dependent Filers*                                                           $ 3,000
                            * Those claimed as a dependent on someone else’s return.



                            Taxpayers who itemize federal deductions may itemize deductions for
                            New York. Taxpayers use their federal itemized deductions as the
                            starting point for calculating their New York itemized deductions. They
                            must then make certain adjustments. The most common is the
                            disallowance of State and local income taxes paid and the allowance of
                            deductions for expenses incurred to carry other states’ bonds.

                            In addition, high income taxpayers face limitations on their New York
                            itemized deductions. For tax year 1999, federal law requires taxpayers
                            with FAGI in excess of $126,600 to reduce their itemized deductions
                            (except those for medical expenses, casualty losses, wagering losses and
                            investment interest expense) by 3 percent of the amount by which their
                            FAGI exceeds $126,600. The threshold is annually indexed for inflation.
                            This limitation cannot reduce the selected deductions by more than 80
                            percent. New York itemized deductions conform to this limitation.

                            New York’s Tax Law also limits itemized deductions of upper income
                            taxpayers through a percentage reduction. The limitation begins at 25
                            percent of deductions for single taxpayers with NYAGI over $100,000
                            and married taxpayers with NYAGI over $200,000, and it reaches 50
                            percent of itemized deductions for all taxpayers with New York adjusted
                            gross income above $525,000.

                            The Tax Law permits an exemption of $1,000 for each dependent who
Exemptions                  qualifies for a federal personal exemption. The exemption does not
                            apply to taxpayers and their spouses, including dependents filing their
                            own tax returns.

                            For tax year 1999, New York imposes a graduated income tax with rates
Tax Rates and               ranging between 4.0 and 6.85 percent of taxable income. Taxable
Brackets                    income equals NYAGI less the deductions and exemptions described
                            above. The tax provides separate rate schedules for married couples,
                            single individuals and heads of households. The tax brackets for the
                            married filing joint tax rate schedule include full income splitting. This

Page 62                                                                                1999 NYS Tax Sourcebook
                              means that the brackets are twice as wide as those for single individuals
                              to avoid any “marriage penalty” resulting from the joint rate schedule.

                              The top rate of 6.85 percent applies at the following levels of taxable
                              income:

Table 35: Levels of Taxable   Married Joint                                                         $40,000
Income at Which the Top       Single and Married Separately                                         $20,000
Tax Rate Applies              Head of Household                                                     $30,000



                              A supplemental income tax for the purpose of recapturing the benefits
                              conferred to taxpayers through tax brackets with rates lower than the
                              maximum rate applies to all taxpayers with NYAGI over $100,000. The
                              benefit of the lower brackets begins to be recaptured at $100,000 of
                              New York adjusted gross income and is totally recaptured at $150,000.
                              Once taxpayers’ New York adjusted gross income exceeds $150,000, all
                              of their taxable income becomes effectively subject to a flat 6.85 percent
                              tax.

                              New York provides a credit for child care expenses equal to a minimum
Credits                       of 20 percent of the corresponding federal credit. The credit rate is 100
                              percent for taxpayers with NYAGI of $35,000 or less. The credit phases
                              down from 100 percent at $35,000 of NYAGI to 20 percent at $50,000
                              and above. The credit is refundable to resident taxpayers.

                              New York allows an earned income credit equal to 20 percent of the
                              corresponding federal credit. The credit is refundable to residents. The
                              credit is scheduled to increase to 22.5 percent of the federal credit in
                              2000, and to 25 percent in 2001, pending budgetary approval. Taxpayers
                              must subtract any household credit used from their earned income credit.
                              Taxpayers who do not use the earned income credit receive the full
                              household credit.

                              New York also allows a 4 percent investment credit (7 percent for
                              research and development property) for certain business investments in
                              qualifying production facilities. Residents may claim credit for income
                              taxes paid to other states and their political subdivisions or provinces of
                              Canada. Also, a real property tax “circuit breaker” credit and a
                              household credit provide tax relief to low and moderate-income
                              taxpayers. Taxpayers can claim a refund of their unused real property tax
                              credit.

1999 NYS Tax Sourcebook                                                                            Page 63
                     There is also a credit for the rehabilitation of historic barns which equals
                     25 percent of qualified expenditures for the rehabilitation of historic
                     barns in New York State. The agricultural school property tax credit
                     provides a refundable credit for farmers with a phase-out of the credit for
                     taxpayers with NYAGI in excess of $100,000. Taxpayers may subtract
                     principal payments on farm indebtedness from NYAGI in order to
                     calculate the income limitation.

                     Other credits apply for taxes on accumulation distributions and certain
                     activities in economic development zones (EDZs) and for residential
                     investments in solar electric generating equipment placed in service
                     beginning in 1998. There is also an employment incentive credit (EIC)
                     available to small businesses such as partnerships, S corporations, LLCs,
                     LLPs and sole proprietorships whose owners pay tax under the personal
                     income tax. The economic development zone employment incentive
                     credit (EDZ-EIC) also applies to these taxpayers.

                     Effective for taxable years beginning on or after January 1, 2000, tax
                     credits for emerging technology companies that invest in research and
                     development in New York State are permitted under the personal income
                     tax. These credits were previously only available under the Corporation
                     Franchise tax.

                     A 6 percent minimum tax applies to certain items of federal tax
Minimum Tax          preference (e.g., intangible drilling costs). Taxpayers subject to the
                     minimum tax pay this tax in addition to the regular income tax. The law
                     permits a “specific deduction” equal to $5,000, and a deduction for
                     regular income tax.

                     The personal income tax also applies, at the individual level, to persons
Business Taxpayers   receiving income from business entities in which they perform services
                     or hold an interest. For example, while sole proprietorships do not pay
                     an entity-level tax, they pay tax on their businesses’ net earnings. Also,
                     partnerships do not pay an entity-level tax, but individual partners pay
                     tax on their distributive share of the partnership’s income.

                     New York State also allows for the formation of limited liability
                     companies (LLCs) and limited liability partnerships (LLPs). Based on
                     existing New York law and practice, the LLC/LLP statute borrows
                     heavily from New York partnership law and provisions of the Business
                     Corporation Law. LLCs classified as partnerships for federal income tax

Page 64                                                                     1999 NYS Tax Sourcebook
                          purposes are treated as partnerships for New York State tax purposes.
                          The LLC/LLP offers one major non-tax benefit which makes it an
                          attractive form of business organization: the protection of a member
                          from liability for the debts and other obligations of the LLC/LLP. LLCs
                          and LLPs, whether foreign or domestic, with New York source income
                          must pay an annual filing fee determined by multiplying the number of
                          members (partners) of the LLC/LLP by $50. The LLC/LLP cannot pay
                          less than the annual minimum payment of $325 or more than the annual
                          maximum payment of $10,000.

                          Nonresident individuals, estates and trusts pay New York State income
Nonresident               tax if they derive income from New York sources. They first compute a
Taxpayers                 base tax using the same rates, exemptions, deductions, and most credits
                          applicable to residents. Next, nonresidents multiply this base tax by the
                          ratio of New York source NYAGI to total NYAGI as a resident. The
                          result ensures that nonresidents pay tax only on income earned or derived
                          within New York.

                          New York requires employers to withhold and remit personal income
Withholding               taxes on wages, salaries, bonuses, commissions and similar income.
                          Employers must remit withholding liability within three business days
                          after each payroll once the cumulative amount of liability reaches $700.
                          Certain small businesses and educational and health care organizations
                          may make their withholding remittance within five business days, and
                          employers with less than $700 of withheld tax can remit it on a quarterly
                          basis. Large employers (aggregate tax of more than $400,000 per year)
                          must make timely payment by electronic funds transfer or by certified
                          check.

                          As under federal law, New York requires withholding of personal
                          income tax from residents on lottery winnings of $5,000 or more. Tax is
                          withheld at the highest tax rate in effect.

                          New York residents, part-year residents and nonresidents with
Estimated Tax             New York-source income, must make payments of estimated tax under
                          certain conditions. The estimated tax rules apply if they expect to owe at
                          least $300 of tax for the current tax year and they expect their
                          withholding and credits will not equal at least a) 90 percent of the
                          current-year tax or b) 100 percent of the prior-year tax (110 percent if
                          NYAGI exceeds $150,000). Taxpayers make payments in four equal
                          installments on April 15, June 15, September 15, and January 15 of the

1999 NYS Tax Sourcebook                                                                       Page 65
          following year. Penalties apply for failure to accurately estimate and pay
          tax for any of the installments.




Page 66                                                        1999 NYS Tax Sourcebook
Table 36: 1999 New York State                                             Married Filing Jointly Taxable Income
Personal Income Tax Rates     Taxable Income                                                                  Tax (1)
                                 Not over $16,000                                                             4.00% of taxable income
                                 Over $16,000 but not over $22,000                                            $ 640 plus 4.50% of excess over $16,000
                                 Over $22,000 but not over $26,000                                            $ 910 plus 5.25% of excess over $22,000
                                 Over $26,000 but not over $40,000                                            $1,120 plus 5.90% of excess over $26,000
                                 Over $40,000                                                                 $1,946 plus 6.85% of excess over $40,000
                                                              Single, Married Filing Separately, Estates and Trusts
                                 Taxable Income                                                               Tax (1)
                                 Not over $8,000                                                              4.00% of taxable income
                                 Over $ 8,000 but not over $11,000                                            $ 320 plus 4.50% of excess over $ 8,000
                                 Over $11,000 but not over $13,000                                            $ 455 plus 5.25% of excess over $11,000
                                 Over $13,000 but not over $20,000                                            $ 560 plus 5.90% of excess over $13,000
                                 Over $20,000                                                                 $ 973 plus 6.85% of excess over $20,000
                                                                                   Head of Household
                                 Taxable Income                                                               Tax (1)
                                 Not over $11,000                                                             4.00% of taxable income
                                 Over $11,000 but not over $15,000                                            $ 440 plus 4.50% of excess over $11,000
                                 Over $15,000 but not over $17,000                                            $ 620 plus 5.25% of excess over $15,000
                                 Over $17,000 but not over $30,000                                            $ 725 plus 5.90% of excess over $17,000
                                 Over $30,000                                                                 $1,492 plus 6.85% of excess over $30,000
                                 (1) Certain high income taxpayers lose the benefit of the lower rates applicable to the lower income brackets.
                                 For 1998, this rate recapture is calculated as follows:
                                                   (Lesser of $50,000 or NYAGI minus $100,000)/$50,000 multiplied by:
                                                   If married filing jointly: $794
                                                   If single:                 $397
                                                   If head of household: $563
                                 Source: NYS Department of Taxation and Finance, Office of Tax Policy Analysis.




1999 NYS Tax Sourcebook                                                                                                                      Page 67
Table 37: New York State                                            Earned Income                                       Unearned Income
Personal Income Tax Rates,                               Top Rate              Taxable Income               Top Rate                   Taxable Income
1919-1999                     Year                       (Percent)                 in Excess of             (Percent)                     in Excess of
                             1919-1930                         3.00                     50,000
                             1931-1933                         6.00                     50,000
                             1934-1940                         8.00                      9,000
                             1941-1944                         5.25                      9,000
                             1945-1946                         3.50                      9,000
                             1947                              4.20                      9,000
                             1948-1953                         6.30                      9,000
                             1954-1957                         7.00                      9,000
                             1958                       No tax, except 1957 rates on capital gain, and income from estates and trusts (a)
                             1959                             10.00                     15,000                       *
                             1960                              9.10                     15,000
                             1961-1968                        14.00                     23,000                       *
                             1969-1972                        15.00 (b)                 25,000                       *
                             1973-1974                        15.00                     25,000                       *
                             1975-1976                        15.00 (b)                 25,000                       *
                             1977                             15.00 (c)                 30,000                       *
                             1978                             12.00                     21,000                  15.00                           30,000
                             1979                             12.00                     21,000                  14.00                           23,000
                             1980                             11.00                     19,000                  14.00                           23,000
                             1981-1984                        10.00                     17,000                  14.00                           23,000
                             1985                              9.50                     15,000                  13.75 (d)                       23,000
                             1986                              9.50                     16,000                  13.50                           26,000
                             1987                              8.75                          (g)                 8.75 (e)                            *
                             1988                              8.38                          (g)                8.375 (f)                            *
                             1989                             7.875                          (g)                     *                               *
                             1990                             7.875                          (g)                     *                               *
                             1991-1994                        7.875 (h)                      (g)                     *                               *
                             1995                          7.59375                           (g)                     *                               *
                             1996                             7.125                          (g)                     *                               *
                             1997-1999                         6.85                          (g)                     *                               *
                              * No differential between earned and unearned income.
                              Notes: The top rates between 1933 and 1957 reflect various statutory reductions and surcharges.
                              (a) General Withholding of tax from wages commenced in 1959. Because this withholding would have required
                              payment of two years' taxes within one year, taxes for calendar years 1958 and fiscal years ending for calendar
                              year 1959 were cancelled. Taxes on capital gains and the income of estates and trusts were not cancelled.
                              (b) An additional 2.5% surcharge was imposed on tax liabilities prior to adjustment for credits for years
                              1972-1976. This means the top rate was 15.375%. The surcharge was suspended for 1973 and 1974.
                              (c) Governor Carey signed legislation on 5/20/77 repealing the 2.5% surcharge effective 1/1/77. In 1976,
                              Governor Carey had the surcharge extended until 4/1/77.
                              (d) Effective rate. The rate was lowered from 14% to 13.5% on 7/1/85.
                              (e) An additional tax of up to 3% on unearned income was imposed on taxpayers with NYAGI in excess of $100,000.
                              (f) An additional tax of up to 2% on unearned income was imposed on taxpayers with NYAGI in excess of $100,000.
                              (g) The rate is imposed on taxable income in excess of the amounts shown in the following table:
                                                                                      Married                Head of
                                              Year       Single                        (Joint)             Household
                                              1987      $14,000                       $23,000               $15,400
                                              1988       17,000                        34,000                 18,300
                                         1989-1994       13,000                        26,000                 17,000
                                              1995       12,500                        25,000                 19,000
                                              1996       13,000                        26,000                 17,000
                                         1997-1999       20,000                        40,000                 30,000
                             (h) A supplemental tax recaptures the tax benefits of tax rates below the top marginal rate, creating a flat tax on
                             taxable income where NYAGI exceeds $150,000.
                             Source: NYS Department of Taxation and Finance, Office of Tax Policy Analysis.




Page 68                                                                                                                1999 NYS Tax Sourcebook
Table 38: Federal Poverty                                                                              Head of
Level and Point of Zero State                                                                        Household,                  Married,                  Married,
Tax Liability, 1985-1999                                                         Single                 1 Child               No Children                2 Children
                                1999
                                Federal Poverty Level (1)                           $8,670                   $11,160                    $11,160             $16,900
                                Point of Zero Tax Liability (2)                     $8,637                   $18,353                    $14,887             $22,991
                                % of Poverty Level                                 99.62%                  164.45%                     133.39%             136.04%
                                1998
                                Federal Poverty Level (3)                           $8,475                   $10,909                    $10,909             $16,520
                                Point of Zero Tax Liability (2)                     $8,637                   $18,156                    $14,887             $22,748
                                % of Poverty Level                               101.91%                   166.43%                     136.46%             137.70%
                                1997
                                Federal Poverty Level                               $8,350                   $10,748                    $10,748             $16,276
                                Point of Zero Tax Liability (2)                     $8,637                   $17,840                    $14,887             $22,335
                                % of Poverty Level                               103.44%                   165.98%                     138.51%             137.23%
                                1996
                                Federal Poverty Level                               $8,155                   $10,554                    $10,554             $16,016
                                Point of Zero Tax Liability (2)                     $8,537                   $17,258                    $14,237             $21,611
                                % of Poverty Level                               104.68%                   163.52%                     134.90%             134.93%
                                1995
                                Federal Poverty Level                               $7,941                   $10,277                    $10,277             $15,595
                                Point of Zero Tax Liability (2)                     $7,835                   $14,340                    $12,459             $18,672
                                % of Poverty Level                                 98.67%                  139.53%                     121.23%             119.73%
                                1994
                                Federal Poverty Level                               $7,710                    $9,978                     $9,978             $15,141
                                Point of Zero Tax Liability (2)                     $7,371                   $13,084                    $11,387             $16,916
                                % of Poverty Level                                 95.60%                  131.13%                     114.12%             111.72%
                                1993
                                Federal Poverty Level                               $7,518                    $9,726                     $9,726             $14,765
                                Point of Zero Tax Liability (2)                     $7,125                    $9,875                    $11,375             $14,125
                                % of Poverty Level                                 94.77%                  101.53%                     116.95%              95.67%
                                1992
                                Federal Poverty Level                               $7,299                    $9,443                     $9,443             $14,335
                                Point of Zero Tax Liability (2)                     $7,125                    $9,875                    $11,375             $14,125
                                % of Poverty Level                                 97.62%                  104.57%                     120.46%              98.54%
                                1991
                                Federal Poverty Level                               $7,086                    $9,165                     $9,165             $13,924
                                Point of Zero Tax Liability (2)                     $7,125                    $9,875                    $11,375             $14,125
                                % of Poverty Level                               100.55%                   107.75%                     124.11%             101.44%
                                1990
                                Federal Poverty Level                               $6,800                    $8,794                     $8,794             $13,359
                                Point of Zero Tax Liability (2)                     $7,125                    $9,875                    $11,375             $14,125
                                % of Poverty Level                               104.78%                   112.29%                     129.35%             105.73%
                                1989
                                Federal Poverty Level                               $6,450                    $8,340                     $8,340             $12,674
                                Point of Zero Tax Liability (2)                     $7,125                    $9,875                    $11,375             $14,125
                                % of Poverty Level                               110.47%                   118.41%                     136.39%             111.45%
                                1988
                                Federal Poverty Level                               $6,155                    $7,958                     $7,958             $12,092
                                Point of Zero Tax Liability (2)                     $6,667                    $9,500                    $11,000             $14,000
                                % of Poverty Level                               108.32%                   119.38%                     138.23%             115.78%
                                1987
                                Federal Poverty Level                               $5,909                    $7,641                     $7,641             $11,611
                                Point of Zero Tax Liability (2)                     $6,500                    $9,300                    $10,167             $12,967
                                % of Poverty Level                               110.00%                   121.71%                     133.06%             111.68%
                                1986
                                Federal Poverty Level                               $5,701                    $7,372                     $7,372             $11,203
                                Point of Zero Tax Liability (2)                     $5,783                    $8,000                     $8,000             $10,566
                                % of Poverty Level                               101.44%                   108.52%                     108.52%              94.31%
                                1985
                                Federal Poverty Level                               $5,593                    $7,231                     $7,231             $10,989
                                Point of Zero Tax Liability (2)                     $5,517                    $6,283                     $6,283              $7,817
                                % of Poverty Level                                 98.64%                    86.89%                     86.89%              71.13%
                                (1) Federal poverty level for 1999 based on projected change in the Consumer Price Index of 2.3% from 1998 to 1999.
                                (2) State computation includes household credit and earned income credit (first effective in 1994) when applicable.
                                (3) Federal poverty level for 1998 based on actual Consumer Price Index of 1.5% from 1997 to 1998.
                                Source: OTPA calculations. Poverty levels from "Poverty in the United States: 1997" (September 1998), U.S. Department of Commerce,
                                Bureau of the Census.


1999 NYS Tax Sourcebook                                                                                                                                     Page 69
Table 39: History of Top       Year                                                                                                         Rate (1)
New York State Effective Tax   1954-58                                                                                                        3.50%
Rate on Capital Gains          1959                                                                                                           5.00%
                               1960-69                                                                                                        7.00%
                               1970-71                                                                                                        8.28%
                               1972                                                                                                          11.13%
                               1973-74                                                                                                       10.86%
                               1975-76                                                                                                       11.13%
                               1977-78                                                                                                       10.86%
                               1979-81                                                                                                        9.79%
                               1982-84                                                                                                        8.86%
                               1985                                                                                                           8.77%
                               1986                                                                                                           8.68%
                               1987                                                                                                           8.75%
                               1988                                                                                                          8.375%
                               1989-94                                                                                                       7.875%
                               1995                                                                                                       7.59375%
                               1996                                                                                                          7.125%
                               1997-99                                                                                                        6.85%
                               (1) Rates include add-on minimum tax on the excluded portion of capital gains, effective for 1970 through 1986. Also
                               includes deductibility of regular tax against minimum tax.
                               Source: NYS Department of Taxation and Finance, Office of Tax Policy Analysis.




Page 70                                                                                                              1999 NYS Tax Sourcebook
Table 40: New York and U.S.      Fiscal                                  Percent                 U.S.       Percent      New York - U.S.     Percent
Average Effective State Personal Year                    New York        Change              Average        Change            Difference     Change
Income Tax Rates, 1970-1998 1998                            3.33%            0.01              2.39%            0.06              0.94%        (0.11)
                                  1997                      3.31%           (0.04)             2.25%            0.03              1.06%        (0.15)
                                  1996                      3.44%           (0.25)             2.19%           (0.01)             1.25%        (0.24)
                                  1995                      3.69%            0.19              2.20%            0.04              1.49%         0.15
                                  1994                      3.50%           (0.05)             2.16%           (0.06)             1.34%         0.01
                                  1993                      3.55%           (0.04)             2.22%            0.01              1.33%        (0.16)
                                  1992                      3.68%            0.01              2.19%            0.02              1.49%        (0.01)
                                  1991                      3.64%           (0.10)             2.14%           (0.03)             1.50%        (0.33)
                                  1990                      4.04%            0.01              2.21%            0.00              1.83%         0.03
                                  1989                      4.00%           (0.05)             2.20%            0.03              1.80%        (0.30)
                                  1988                      4.23%            0.03              2.13%           (0.01)             2.10%         0.16
                                  1987                      4.10%            0.01              2.16%            0.05              1.94%        (0.07)
                                  1986                      4.06%           (0.01)             2.05%           (0.03)             2.01%         0.04
                                  1985                      4.09%            0.00              2.12%           (0.02)             1.97%         0.04
                                  1984                      4.09%            0.07              2.16%            0.11              1.93%         0.06
                                  1983                      3.81%           (0.04)             1.94%            0.02              1.87%        (0.20)
                                  1982                      3.98%            0.09              1.91%           (0.01)             2.07%         0.34
                                  1981                      3.66%            0.02              1.93%            0.00              1.73%         0.06
                                  1980                      3.60%            0.04              1.93%            0.01              1.67%         0.12
                                  1979                      3.47%            0.04              1.92%            0.00              1.55%         0.13
                                  1978                      3.34%           (0.06)             1.92%            0.03              1.42%        (0.29)
                                  1977                      3.57%            0.08              1.86%            0.09              1.71%         0.10
                                  1976                      3.32%            0.03              1.71%            0.05              1.61%         0.02
                                  1975                      3.22%           (0.02)             1.63%            0.01              1.59%        (0.08)
                                  1974                      3.29%           (0.02)             1.62%           (0.03)             1.67%         0.00
                                  1973                      3.34%            0.22              1.67%            0.10              1.67%         0.45
                                  1972                      2.74%           (0.06)             1.52%            0.19              1.22%        (0.40)
                                  1971                      2.90%           (0.06)             1.28%            0.03              1.62%        (0.22)
                                  1970                      3.08%            N/A               1.24%            N/A               1.84%          N/A
                                   Source: Calculated as FY PIT collections divided by prior year personal income from State Government Finances
                                   (Selected Years), and Survey of Current Business (Selected Years), respectively, U.S. Department of Commerce,
                                   Bureaus of the Census & Economic Analysis.




1999 NYS Tax Sourcebook                                                                                                                     Page 71
Table 41: Significant Changes in New York State’s Personal Income Tax Structure, 1984-1999
Tax Structure                          1984                                  1985                             1986                                1987
Rates
Maximum Rates                          The maximum tax rate on personal      The maximum tax rate on          The maximum tax rate on personal    The maximum tax rate on all income is
                                       service income is 10%. The top        personal service income is       service income is 9.5%. The top     8.75%. A temporary surcharge on
                                       rate on unearned income is 14%.       effectively 9.5%. The top rate   rate on unearned income is 13.5%.   unearned income ranges from 0%-3% for
                                                                             on unearned income is                                                taxpayers with NYAGI over $100,000.
                                                                             effectively 13.75%.                                                  Capital gains and losses, pensions and
                                                                                                                                                  alimony are not included in unearned
                                                                                                                                                  income.
Minimum Rates                          2% of New York taxable income
                                       over $0, but less than $1,000.
Filing Requirements
Filing Status                          Married couples are allowed to file                                                                        Married joint rate schedule adopted. The
                                       separately on one return. This                                                                             joint rate schedule reflects a 60/40 income
                                       generally results in a tax benefit.                                                                        split between spouses.
Point of Zero Tax Liability
Single aged 15-64                      $4,967                                $5,517                           $5,783                              $6,500
Married aged 15-64                     $5,767                                $6,283                           $8,000                              $10,167
Head of Household (1 child)            $5,767                                $6,283                           $8,000                              $9,300
Nonresidents                           Allocation of income and
                                       deductions to NY prior to
                                       application of tax rates.
Personal Exemptions
Taxpayer and Spouse                    $800                                  $850                             $850                                $900
Dependent                              $800                                  $850                             $850                                $900
Deductions
Standard Deduction                     17% of NYAGI, minimum amount.         $2,500 Single                    $2,600 Single                       $3,600 Single
                                       For single: $1,500, maximum
                                       amount $2,500.
                                       All others: minimum amount            $2,750 all others                $3,000 all others                   $5,300 Married
                                       $2,000, maximum amount $2,500.
                                                                                                                                                  $4,600 Head of Household
Itemized Deductions
NY Itemized Deduction Adjustment       Full amount of itemized deductions
                                       are allowable.


New York Modifications & Adjustments
Tuition Deduction                      Tuition paid on behalf of each
                                       dependent, full-time attendee at a
                                       college/university in NYS.
                                       Deduction limited to 1/2 tuition
                                       minus any tuition assistance award
                                       or $1,000, whichever is less.
Savings for Higher Education           PASS accounts permitted.                                                                                   For contributions made prior to 4/20/87:
                                       Amounts up to $750 contributed to                                                                          same as 1986. For accounts opened after
                                       qualified higher education fund for                                                                        4/20/87: no deduction.
                                       each beneficiary may be deducted
                                       from FAGI. Income of the fund, to
                                       the extent includible in FAGI, also
                                       deducted. Tax paid by beneficiary
                                       when college attendance ends.




Page 72                                                                                                                                              1999 NYS Tax Sourcebook
Table 41: Significant Changes in New York State’s Personal Income Tax Structure, 1984-1999 (Con’t)
1988                                                              1989                                1990   1991                             1992   1993
Rates (Con’t)
The maximum tax rate on all income is 8.375%. A temporary         The maximum tax rate on all                Same as 1989, except a
surcharge on unearned income ranges from 0%-2% for                income is 7.875%. The temporary            supplemental tax is imposed on
taxpayers with NYAGI over $100,000. Capital gains and losses,     tax surcharge on unearned income           taxpayers with NYAGI between
pensions and alimony are not included in unearned income.         is repealed.                               $100,000 and $150,000.




3%                                                                4%


Filing Requirements (Con’t)
Same as 1987, except the joint rate schedule reflects a 50/50
income split between spouses.


Point of Zero Tax Liability (Con’t)
$6,667                                                            $7,125
$11,000                                                           $11,375
$9,500                                                            $9,875
Nonresidents and part-year residents compute as if they were
residents and prorate tax based on ratio of NY source income to
all income.
Personal Exemptions (Con’t)
Personal and spousal exemption repealed.
$1,000 each
Deductions (Con’t)
$5,000 Single                                                     $6,000 Single



$8,500 Married                                                    $9,500 Married


$6,000 Head of Household                                          $7,000 Head of Household
Itemized Deductions (Con’t)
Upper income taxpayers subject to percentage limitation on        Same as 1988, except percentage
itemized deductions.                                              limitation increases to a maximum
                                                                  of 50%.
New York Modifications & Adjustments (Con’t)
                                                                  Deduction Repealed




Deduction Repealed




1999 NYS Tax Sourcebook                                                                                                                               Page 73
Table 41: Significant Changes in New York State’s Personal Income Tax Structure, 1984-1999 (Con’t)
1994                          1995                       1996                        1997                        1998                              1999
Rates (Con’t)
                              7.59375%                   7.125%                      6.85%




                              4.55%                      4.0%                        4.0%


Filing Requirements (Con’t)




Point of Zero Tax Liability (Con’t)
$7,371                        $7,835                     $8,537                      $8,637                      $8,637                            $8,637
$11,387                       $12,459                    $14,237                     $14,887                     $14,887                           $14,887
$13,084                       $14,340                    $17,258                     $17,840                     $18,156                           $18,353




Personal Exemptions (Con’t)




Deductions (Con’t)
                              $6,600 Single              $7,400 Single               $7,500 Single



                              $10,800 Married            $12,350 Married             $13,000 Married


                              $8,150 Head of Household   $10,000 Head of Household   $10,500 Head of Household
Itemized Deductions (Con’t)




New York Modifications & Adjustments (Con’t)




                                                                                                                 College Choice Tuition
                                                                                                                 Savings Program enacted.
                                                                                                                 Individuals may contribute up
                                                                                                                 to $5,000 per year.
                                                                                                                 Aggregate contributions may
                                                                                                                 not exceed $100,000 per
                                                                                                                 beneficiary. Contributions are
                                                                                                                 deductible and distributions of
                                                                                                                 contributions and earnings
                                                                                                                 are exempt from tax if used to
                                                                                                                 pay for qualified higher
                                                                                                                 education expenses.




Page 74                                                                                                                                   1999 NYS Tax Sourcebook
Table 41: Significant Changes in New York State’s Personal Income Tax Structure, 1984-1999 (Con’t)
Tax Structure                               1984                                   1985                               1986                                 1987
New York Modifications & Adjustments
Family Adjustment                           No provision.                          Married taxpayers with             Married taxpayers with aggregate     Repealed
                                                                                   aggregate income up to $36,000     income up to $38,000 can shift up
                                                                                   can shift up to $3,000 in income   to $4,000 to the lower-income
                                                                                   to the lower-income spouse.        spouse.
Low Income Allowance
                                            Singles with NYAGI less than                                              Singles with NYAGI less than         Repealed
                                            $2,500 are tax exempt. All others                                         $4,000 are exempt. All others with
                                            with NYAGI less than $5,000 are                                           NYAGI less than $8,000 are tax
                                            tax exempt.                                                               exempt.
Credits
Household Credit                            Credit available to all taxpayers                                         Single taxpayers receive a credit    FAGI used instead of NYAGI.
                                            with household gross income of                                            ranging from $75 for NYAGI below
                                            less than $25,000. The credit                                             $5,000 to $20 for NYAGI between
                                            ranges from $40-$70.                                                      $25,000-$28,000. All others
                                                                                                                      receive a credit ranging from $90
                                                                                                                      plus $15 for each exemption minus
                                                                                                                      one for income below $5,000 to
                                                                                                                      $20 plus $5 for each exemption
                                                                                                                      minus one for income between
                                                                                                                      $28,000-$32,000.
Real Property Circuit Breaker               NYS resident taxpayers with                                               NYS resident taxpayers with
                                            household gross income of less                                            household gross income of less
                                            than $16,000 are eligible. The                                            than $18,000 are eligible. The
                                            value of the property must be less                                        value of the property must be less
                                            than $65,000 or the monthly rent                                          than $85,000 or the average
                                            cannot exceed $300. The credit                                            monthly rent cannot exceed $450.
                                            ranges up to $200 for an elderly                                          The credit ranges up to $375 for
                                            taxpayer ($45 non-elderly) and is                                         elderly ($75 non-elderly) and is
                                            refundable.                                                               refundable.
Child Care Credit                           A nonrefundable credit equal to                                                                                20% of federal amount against tax liability.
                                            20% of the federal credit is allowed
                                            against the liability of the lower-
                                            income spouse.


Earned Income Credit




Credit for Rehabilitation of Historic
Barns



Farmer School Property Tax Credit




Credit for Employers Who Hire
Persons With Disabilities



Investment Activity, Broker/Dealers




Note: Table does not include federal conformity items: e.g., income exclusions, itemized deductions.



1999 NYS Tax Sourcebook                                                                                                                                                                   Page 75
Table 41: Significant Changes in New York State’s Personal Income Tax Structure, 1984-1999 (Con’t)
1988                                                                 1989                              1990   1991         1992    1993
New York Modifications & Adjustments (Con’t)




Low Income Allowance (Con’t)




Credits (Con’t)




Note: Table does not include federal conformity items: e.g., income exclusions, itemized deductions.



Page 76                                                                                                              1999 NYS Tax Sourcebook
Table 41: Significant Changes in New York State’s Personal Income Tax Structure, 1984-1999 (Con’t)
1994                              1995                             1996                                1997                                1998                                1999
New York Modifications & Adjustments (Con’t)




Low Income Allowance (Con’t)




Credits (Con’t)
                                                                   Household Credit is
                                                                   subtracted from Earned
                                                                   Income Credit.




                                                                   Up to 30% of federal credit         Up to 60% of federal credit         Up to 100% of federal credit        Up to 100% of federal credit
                                                                   (refundable) for taxpayers with     (refundable) for taxpayers with     (refundable) for taxpayers          (refundable) for taxpayers
                                                                   NYAGI below $14,000.                NYAGI below $14,000.                with NYAGI below $17,000            with NYAGI below $35,000
                                                                                                                                           phasing down to 20% at              phasing down to 20% at
                                                                                                                                           $30,000.                            $50,000.
7.5% of federal credit.           10% of federal credit.           20% of federal credit.                                                                                      Credit is scheduled to
                                                                                                                                                                               increase to 22.5% of federal
                                                                                                                                                                               credit in 2000 and 25% in
                                                                                                                                                                               2001; pending budgetary
                                                                                                                                                                               approval.
                                                                                                       ITC expanded to include
                                                                                                       qualified expenditures for the
                                                                                                       rehabilitation of historic barns.
                                                                                                       Credit is 25% of expenditures.
                                                                                                       Various percentages of school       Enhanced credit by
                                                                                                       property tax on farm property;      exempting up to $30,000 of
                                                                                                       phases out for taxpayers with       nonfarm federal gross income
                                                                                                       NYAGI above $100,000.               in determining eligibility for
                                                                                                                                           the credit. Also may subtract
                                                                                                                                           principal payments on farm
                                                                                                                                           debt when calculating the
                                                                                                                                           income limit for the credit
                                                                                                                                           phase-out.
                                                                                                                                           Credit equals 35% of the first
                                                                                                                                           $6,000 of qualified wages
                                                                                                                                           (maximum of $2,100 per
                                                                                                                                           employee).
                                                                                                                                           Credit allowed for equipment
                                                                                                                                           or buildings used in
                                                                                                                                           broker/dealer activity and
                                                                                                                                           related activities. Effective for
                                                                                                                                           property placed in service
                                                                                                                                           from 10/1/98-9/30/03.
Note: Table does not include federal conformity items: e.g., income exclusions, itemized deductions.



1999 NYS Tax Sourcebook                                                                                                                                                                          Page 77
 Business Taxes


                          Typically, general business corporations pay taxes computed under
                          Article 9-A of the Tax Law. Separate articles of the law apply to
                          corporations other than general business corporations. Article 32 applies
                          to banking corporations. Article 33 taxes insurance corporations. Article
                          33-A taxes anyone who buys insurance from an insurance company that
                          is not authorized to write insurance in New York State. Article 9
                          imposes tax on transportation and transmission corporations except
                          airlines (Section 183/184), utility companies (Section 186/186-a),
                          telecommunications services (Section 186-e), anyone importing natural
                          gas for their own consumption (Section 189), and agricultural
                          cooperatives (Section 185). Article 13 imposes tax on the unrelated
                          business income of nonstock not-for-profit corporations. Article 13-A
                          imposes tax on petroleum businesses.

                          Since 1982, the Metropolitan Transportation Authority (MTA) surcharge
                          (currently at a rate of 17 percent) applies to business taxes (except the
                          petroleum business tax) otherwise due, after deduction of credits,
                          allocable to the 12-county Metropolitan Commuter Transportation
                          District. This includes the City of New York, Long Island and the mid-
                          to-lower Hudson River Valley. The MTA surcharge remains in effect
                          through tax years ending before December 31, 2001.

                          Currently 44 states, including New York, impose some type of corporate
Corporation               tax measured by net income. Article 9-A imposes tax on corporations
Franchise Tax             for the privilege of exercising their corporate franchise in New York. It
                          applies to general business corporations not taxed under another article
                          of the Tax Law.

                          Corporations compute tax under four bases, and pay tax on the base
Tax Bases and Rates       yielding the highest liability. An additional tax applies based on the
                          corporation’s subsidiary capital allocated to New York, at a rate of 0.09
                          percent. The four bases include 1) a tax of 9 percent (or between 8 and 9
                          percent for businesses with less than $290,000 of entire net income) on
                          allocated entire net income, 2) a tax of 0.178 percent on business and

1999 NYS Tax Sourcebook                                                                      Page 79
          investment capital allocated to New York after deduction for short and
          long-term liabilities (the maximum tax on this alternative equals
          $350,000), 3) a 3.5 percent tax on the alternative minimum taxable base,
          or 4) a separate minimum tax at fixed dollar amounts.

          For tax years beginning after June 30, 1999, the corporate franchise tax
          rate imposed under the entire net income (ENI) base is reduced over a
          three year period from 9 percent to 7.5 percent. The rate is also reduced
          for small business taxpayers. The general corporate rate equals 8.5
          percent for the taxable years beginning after June 30, 1999. For small
          business taxpayers, the rate decreases from 8 percent to 7.5 percent.

          The fixed dollar minimum tax equals $325 for businesses with a gross
          payroll less than or equal to $1 million. If payroll exceeds $1 million,
          but is less than $6.25 million, the tax equals $425. If payroll exceeds
          $6.25 million, the tax equals $1,500. If the taxable period does not equal
          a full year, the taxpayer can reduce the fixed dollar minimum tax by 50
          percent for a period of 6 months or less and 25 percent for a period of
          more than 6 months but less than or equal to 9 months. Corporations
          whose gross payroll, total receipts and average value of gross assets each
          equals $1,000 or less must pay an $800 fixed dollar minimum tax.

          Phased in over a two year period for tax years beginning after
          June 30, 1998, small business taxpayers will realize a reduction in the
          fixed dollar minimum tax. Taxpayers with gross payrolls of $250,000 or
          less will realize a decrease from the current $325 fixed dollar minimum
          tax to $100. For tax years beginning after June 30, 1999, the fixed dollar
          minimum tax will drop further from $325 to $225 for taxpayers with
          gross payrolls of $500,000, but more than $250,000.

          The entire net income base equals federal taxable income modified for
          income and deduction items that New York treats differently. For
          example, New York’s tax base excludes subsidiary income items and
          does not allow deductions directly and indirectly attributable to
          subsidiary capital.

          New York uses a three-factor formula to allocate business income. The
          factors include property, payroll (excluding general executive officers)
          and receipts, with the latter double weighted. Taxpayers allocate
          investment income by a formula that reflects the New York presence of
          the issuers of the obligations generating such investment income.

Page 80                                                        1999 NYS Tax Sourcebook
                          The alternative minimum taxable income base equals entire net income
                          plus certain federal items of tax preference and adjustments. The
                          alternative minimum tax rate for Article 9-A corporation franchise
                          taxpayers drops from 3.5 percent to 3.25 percent for taxable years
                          beginning after June 30, 1998. The rate is further reduced to 3 percent
                          for taxable years beginning after June 30, 1999. Taxpayers may use a net
                          operating loss deduction (NOLD) in computing alternative minimum
                          taxable income. This deduction is comprised of all net operating losses
                          (NOLs) existing at the start of the 1994 tax year and any accumulated
                          thereafter. The law limits the deduction to 90 percent of alternative
                          minimum taxable income without regard to the NOLD.

                          Firms that paid additional tax during the 1990 through the 1993 period,
                          because of disallowed net operating losses under the AMT, receive
                          credits to use against future regular tax liability based on entire net
                          income (ENI). Taxpayers may calculate the alternative minimum tax
                          credit retroactively for taxable years after 1989 and carry forward the
                          credit indefinitely. The taxpayer may use the remainder of any unused
                          credit in full for years after 1998.

                          General business corporations that file as S corporations for federal tax
S Corporations            purposes may also elect S status for New York State franchise tax
                          purposes. This election requires the shareholders to report their
                          proportional share of S corporation income or loss and deductions on
                          their personal income tax returns.

                          S corporations pay an entity-level tax under Article 9-A. The S
                          corporation tax on net income equals the difference between the taxes
                          calculated at the applicable corporate rate and 7.875 percent, or, if larger,
                          $325. The personal income tax (Article 22) equivalent used to compute
                          the rate differential is reduced over a three year period beginning in tax
                          years after June 30, 1999. In the first year, for tax years beginning after
                          June 30, 1999 and before July, 1, 2000, the rate is reduced from 7.875
                          percent to 7.525 percent. In the second year, for tax years beginning after
                          June 30, 2000 and before July, 1, 2001, the rate is further reduced to
                          7.125 percent. For tax years beginning after June 30, 2001, the rate
                          drops to 6.85 percent. Upon full phase in of the reduction, the rate
                          differential will have dropped from 1.125 percent to 0.65 percent for
                          large S corporations and from 0.125 percent to 0.05 percent for small S
                          corporations. The $800 fixed minimum tax for inactive corporations and
                          the MTA surcharge do not apply to S corporations.

1999 NYS Tax Sourcebook                                                                         Page 81
                 New York provides tax incentives in the form of tax credits, deductions,
Tax Incentives   and allocation formula adjustments. These incentives encourage
                 business investment and economic development within the State. Major
                 provisions include:

                 & An investment tax credit (ITC) of 5 percent of the first $350 million
                    of investments, plus 4 percent for investments over that amount, for
                    certain eligible property;

                 & A refundable ITC for certain new businesses;

                 & An ITC on research and development property at an optional rate of 9
                    percent;

                 & An ITC for rehabilitation of historic barns based on 25 percent of
                    qualified rehabilitation expenditures;

                 & An ITC for corporations, banks and personal income taxpayers that
                    are brokers or dealers in securities. The credit is available for
                    equipment or buildings used in the broker/dealer activity and for
                    associated activities. The credit also extends to national security
                    exchanges. The credit is available for property placed in service for
                    the five-year period between October 1, 1998 and
                    September 30, 2003;

                 & A school property tax credit for eligible farmers. The credit is based
                    on the amount of school district real property taxes paid on qualified
                    farmland and buildings, subject to certain acreage and income
                    limitations;

                 & An employment incentive credit (EIC) available to employers who
                    add jobs and are eligible for the ITC. A sliding scale links larger EIC
                    amounts with increasing employment;

                 & Various credits for certain activities conducted in economic
                    development zones (EDZs);

                 & A credit of up to $2,100 per qualified employee to employers who
                    employ disabled individuals;



Page 82                                                               1999 NYS Tax Sourcebook
                          & A credit for electric vehicles, clean fuel vehicles using natural gas,
                             methanol and other alternative fuels, and clean fuel refueling facility
                             property;

                          & Credits under the “New York State Emerging Industry Jobs Act” for
                             qualified emerging technology companies that invest in research and
                             development in New York State. The provisions include an
                             employment tax credit equal to $1,000 per qualified employee and
                             emerging technology capital credits that vary depending on how long
                             the investment is held. The new law takes effect for tax years
                             beginning on or after January 1, 1999;

                          & Various special methods for allocating receipts from certain types of
                             services, such as advertising, publishing and printing, broadcasting
                             and motion pictures, and financial services; and

                          & The exclusion from entire net income of interest income and gains
                             from subsidiary capital.

                          Taxpayers may apply credits against tax computed on the apportioned
                          entire net income base or the apportioned business and investment capital
                          base. However, credits may not reduce a taxpayer’s liability below the
                          higher of the tax on the alternative minimum taxable income base, or the
                          fixed dollar minimum tax.

                          Article 13 imposes a tax on the income of tax-exempt organizations
Unrelated Business        derived from the conduct of a trade or business. Approximately 1,000
Income Tax                organizations pay this tax. The tax equals 9 percent of the unrelated
                          business income allocated to New York. The tax base equals federal
                          unrelated business taxable income with certain modifications. Taxpayers
                          may subtract net operating losses and tax credits. A fixed dollar
                          minimum tax of $250 applies. Article 13 does not apply to corporations
                          subject to the Article 9-A tax, certain nonprofit organizations providing
                          insurance, and certain income derived from operating licensed games of
                          chance.




1999 NYS Tax Sourcebook                                                                        Page 83
Corporation and            Article 9 of the Tax Law applies taxes to a variety of specialized
                           businesses and imposes initial taxes and fees on domestic and foreign
Utility Tax                corporations. The MTA surcharge of 17 percent applies to each of these
                           taxes for the portion of the tax attributable to the Metropolitan
                           Commuter Transportation District.

                           Historically, with the exception of the special additional mortgage
                           recording tax credit, Article 9 taxpayers could neither earn, nor apply,
                           credits against their Article 9 tax liability. However, three new credits
                           have been added in recent years: the alternative fuels vehicle credit; the
                           employment of disabled individuals credit; and the power for jobs credit.
                           (See Table 46 for a more detailed description of these credits).

Organization Tax; Taxes    This tax applies to domestic (in-state) corporations. The rate equals 0.05
on Changes in Capital      percent of the total amount of the par value of authorized capital stock.
(§ 180)                    The rate for shares without par value equals 5 cents per share. The tax
                           also applies to any subsequent increases in authorized stock or other
                           charges in capital structure. Domestic corporations must pay a minimum
                           tax of $10. State and national banks, trust companies, building, mutual
                           loan, accumulating fund and corporative associations do not pay this tax.

License and Maintenance    The Tax Law imposes a license fee on the value of capital stock
Fees on Foreign (Out-of-   employed within New York on out-of-state corporations for the privilege
State) Corporations        of exercising its corporate franchise or conducting business in New York.
(§ 181)                    A rate of 0.05 percent applies to issued par value capital stock. A rate of
                           5 cents per share applies to capital stock without par value. A minimum
                           payment of $10 is required for the first payment. The fee also applies to
                           any subsequent changes in the capital share structure or increases in the
                           amount of capital stock employed in New York State.

                           The law also imposes an annual maintenance fee of $300 from all foreign
                           (out-of-state) corporations, including foreign S corporations. Foreign
                           corporations may credit this fee against any tax due under Article 9
                           (except Sections 180 or 181), Article 9-A or Article 32.

                           Most foreign banks, national banking associations, federal savings banks,
                           federal savings and loans associations, fire, marine, casualty and life
                           insurance companies, and building and loans associations do not pay
                           these fees.



Page 84                                                                         1999 NYS Tax Sourcebook
Franchise Tax on           This tax is imposed on corporations, joint stock companies, or
Transportation and         associations principally engaged in transportation, telephone, or other
Transmission               transmission businesses. The tax equals the highest of the following
Corporations and           calculations: 1) 1.5 mills on each dollar of net value of issued capital
                           stock; 2) If the share of dividends paid on capital stock is 6 percent or
Associations (§ 183)
                           more, 0.375 mills per dollar of par value for each one percent of
                           dividends paid; or 3) $75. Trucking and railroad companies are subject
                           to the corporate franchise tax (Article 9-A) unless they had elected to
                           remain in Article 9.

                           Section 183 exempts foreign taxicab and omnibus corporations which do
                           not own or lease property in New York and which make fewer than 12
                           trips into the State in a calendar year. Omnibus and taxicab corporations
                           (other than those making 12 trips or less) must pay tax under Article 9-A
                           when the motor fuel tax exceeds 2 cents per gallon. This tax does not
                           apply to aviation companies. These companies are taxed under
                           Article 9-A.

Additional Franchise Tax   This tax is imposed on corporations, joint stock companies, or
on Transportation and      associations principally engaged in transportation, local telephone
Transmission               business, or other transmission businesses. It applies a rate of 0.75
Corporations and           percent on gross earnings from all sources in the State. This rate falls to
                           0.375 percent effective July 1, 2000. This tax also applies to an allocated
Associations (§ 184)
                           portion of receipts from interstate and international activities (except for
                           railroads). The gross receipts tax, as it applies to truckers and railroads
                           that elected to remain taxable within Article 9, falls from 0.6 percent to
                           0.375 percent effective July 1, 2000.

                           In the case of local telephone businesses, receipts from sales for ultimate
                           consumption from 1) inter-LATA, interstate, or international
                           telecommunications services, and 2) 30 percent of intra-LATA toll
                           telecommunications services, including interregion regional calling plan
                           services, are excluded from the tax.

                           Foreign taxicabs and omnibuses which do not own or lease property in
                           New York (except the vehicle), and which make fewer than 12 trips into
                           the State in a calendar year, must pay an annual tax equal to $15 per trip
                           rather than the tax on gross earnings. This tax does not apply to aviation
                           companies which are taxed under Article 9-A. Omnibus and taxicab
                           corporations (other than those making 12 trips or less) must pay tax
                           under Article 9-A when the motor fuel tax exceeds 2 cents per gallon.

1999 NYS Tax Sourcebook                                                                         Page 85
                             Companies that elected to remain taxable within Article 9 engaged in the
                             conduct of subway, railroad, elevated railroad, or surface railroad not
                             operated by steam, whose property is leased to another railroad
                             corporation, pay an annual tax of 4.5 percent on dividends paid during
                             the year in excess of 4 percent of paid-in capital employed in the State.

Franchise Tax on             This tax applies to farmers, fruit growers and other like agricultural
Agricultural Co-operatives   corporations operated on a co-operative basis. The tax equals the
(§ 185)                      greatest of the following: 1) 1 mill per dollar of the net value of issued
                             capital stock allocated to New York (based on gross assets); 2) for
                             corporations with stock without nominal or par value, if dividends paid
                             equals 6 percent or more of the amount paid in on such stock, 1/4 mill
                             for each percent of dividends paid; or 3) $10.

Franchise Tax on Water-      This tax applies to corporations, joint-stock companies or associations
Works Companies,             principally engaged in the business of supplying water, steam, gas, or
Electric or Steam Heating,   electricity. The rate equals 0.75 percent of gross earnings from all
Lighting and Power           sources within the State. The law also imposes a 4.5 percent tax on
                             dividends paid in excess of 4 percent of the amount of paid-in capital
Companies (§ 186)
                             employed in New York State. Companies must pay a minimum tax of
                             $125.

Gross Receipts Tax on the    This tax is imposed on any business selling utility services such as gas,
Furnishing of Utility        electricity, steam, water, or refrigeration. Utilities subject to the
Services (§ 186-a)           supervision of the Public Service Commission pay a tax of 3.25 percent
                             on gross income. Other businesses that furnish utility services pay a 3.25
                             percent tax on gross operating income. The rate falls to 2.5 percent
                             effective January 1, 2000.

                             Both gross income and gross operating income include receipts from the
                             sale of utility services. However, gross income also includes profits from
                             the sale of property within this State, receipts from interest, dividends,
                             and royalties derived from sources within this State, and profits from any
                             other transactions (except sales for resale and rentals) within this State.
                             Providers of utility services exclude sales for resale from gross income or
                             gross operating income.

                             Some businesses selling telecommunications services are subject to tax
                             under Section 186-a as well as the Section 186-e tax on
                             telecommunications services. However, this is limited to those
                             businesses selling telecommunications services which are also subject to

Page 86                                                                            1999 NYS Tax Sourcebook
                           the supervision of the Public Service Commission. The companies must
                           pay the tax only on their non-telecommunications receipts.

Tax on                     Section 186-e imposes a tax of 3.25 percent on receipts from the sale of
Telecommunications         telecommunications services. The rate falls to 2.5 percent effective
Services (§ 186-e)         January 1, 2000. Telecommunications services are defined to include
                           services provided by wires, cables, satellites, fiber-optics, lasers,
                           microwaves, radiowaves or similar media.

                           The Goldberg allocation method is used to determine New York taxable
                           telecommunications receipts from interstate and international services.
                           Under this method, receipts from telecommunications services are
                           allocated to New York if the call originates or terminates in this State
                           and is charged to a services address in this State. This Goldberg method
                           is also used to calculate any associated metropolitan transportation
                           business tax surcharge.

                           An exclusion exists for sales for resale, where the sale is made to either
                           an interexchange carrier, a local carrier or a facilities-based cellular
                           carrier. Telecommunications companies must include sales for resale to
                           companies other than an interexchange carrier or a local carrier in their
                           Section 186-e tax base. However, the law allows a credit to purchasers
                           that subsequently resell these services.

Privilege Tax on           This tax applies at the rate of 4.25 percent of the consideration given by a
Importation of Gas         gas importer for gas services imported into the State for its own use or
Services for Consumption   consumption. The tax applies to every individual or business importing
(§ 189)                    gas into this State for its own use or consumption in New York. The tax
                           does not apply to public utilities subject to the supervision of the Public
                           Service Commission (PSC).

                           A public utility, subject to the supervision of the PSC, that delivers gas
                           services to a gas importer, acting as a trustee for the State, is required to
                           collect the tax on a monthly basis from gas importers and remit the tax to
                           the Department of Taxation and Finance on a quarterly basis. The public
                           utility determines the amount to be collected from the gas importer by
                           multiplying the average annual gas price, published by the Department,
                           by the quantity of gas services delivered. Importers whose gas is
                           delivered by a PSC regulated utility presenting a direct pay permit, remit
                           the Section 189 tax to the Department. In this case, the utility is not
                           responsible for collecting the tax. Gas importers must pay the tax

1999 NYS Tax Sourcebook                                                                          Page 87
                     directly to the Department on a quarterly basis for gas services delivered
                     by other than a public utility.

                     The tax provides an exemption for the portion of natural gas imported by
                     a cogeneration facility to produce steam or electricity for its host.
                     Beginning in 2001, the tax is eliminated for gas used to generate
                     electricity sold to an end user by independent generators, co-generators,
                     and plants formerly owned by utilities.

                     Article 13-A of the Tax Law imposes privilege taxes on petroleum
Petroleum Business   businesses operating in New York State. This tax is in addition to other
Tax                  corporate taxes (e.g., corporation franchise tax) that may be due.
                     Imposition of the tax occurs at different points in the distribution chain
                     depending upon the type of petroleum product. Motor fuel (gasoline)
                     becomes subject to tax at the initial point in the New York distribution
                     chain (e.g., importation), while automotive-type diesel motor fuel
                     becomes taxable upon the first otherwise non-exempt sale or use of the
                     product in New York. Nonautomotive-type diesel motor fuel and
                     residual petroleum product generally become taxable on the final sale or
                     use of the product in New York.

                     Effective April 1, 2001, there will be a 20 percent rate reduction for both
                     diesel motor fuel and residual oil used for non-residential heating
                     purposes.

                     The Article 13-A tax also applies to motor carriers on the fuel they
                     purchase outside New York State, but consume in the operation of motor
                     vehicles within the State. The carriers pay this tax, with their fuel use
                     tax, at a per gallon rate equal to the rate for motor fuel or automotive-
                     type diesel motor fuel. This tax is administered with the fuel use tax (see
                     page 152).

Exemptions,          The petroleum business tax (PBT) excludes sales of kerosene, crude oil,
Reimbursements and   and liquefied petroleum gas from the tax. It also excludes sales of
Credits              petroleum for export, sales of fuel oil for residential use, sales to
                     government entities for their own use, and provides refunds for the PBT
                     attributable to certain consumer bad debt. In addition, the PBT provides
                     exemptions, reimbursements and credits based on certain uses of
                     petroleum. Table 44 shows the current rate structure as well as
                     exemptions, reimbursements and credits as of January 1, 1999. The tax
                     rates shown include the basic tax and the supplemental tax for the period.

Page 88                                                                    1999 NYS Tax Sourcebook
                          The cents-per-gallon rates vary by product and/or transaction type. Also,
                          the law requires annual indexing of the tax rates to reflect changes in
                          product prices. Petroleum businesses are required to pay a minimum tax
                          of $25 a month. Aviation fuel businesses pay a minimum tax of $2 per
                          month.

                          Effective April 1, 2001, there will be a full reimbursement of the PBT
                          paid on diesel motor fuel and residual oil used in mining and/or
                          extracting processes.

Dedication of Revenue     Various percentages of the petroleum business tax are allocated to the
                          Dedicated Mass Transportation Fund, the Dedicated Highway and Bridge
                          Trust Fund, and the Mass Transportation Operating Assistance Fund.
                          For the 1998 fiscal year, slightly less than 12 percent of PBT receipts
                          went to the general fund, with the Dedicated Highway and Bridge Trust
                          Fund, the Dedicated Mass Transportation Fund, and the Mass
                          Transportation Operating Assistance Funds receiving the remaining
                          shares in descending orders of magnitude. In fiscal year 1999, almost 90
                          percent of PBT receipts will go to funds other than the general fund.

                          Article 32 of the Tax Law levies a franchise tax on banking corporations
Bank Tax                  doing business in the State. This tax consists of the highest of 1) 9
                          percent of allocated entire net income, 2) 3 percent of such income
                          without regard to certain specified exclusions, 3) $250, or 4) one-tenth of
                          1 mill upon each dollar of taxable assets allocated to New York. This
                          alternative provides lower tax rates for institutions having both
                          mortgages comprising 33 percent or more of total assets and net worth
                          exceeding 5 percent of total assets.

                          The 9 percent tax rate is scheduled to decrease to 8.5 percent for taxable
                          years beginning after June 30, 2000 and before July 1, 2001; to 8.0
                          percent for taxable years beginning after June 30, 2001 and before
                          July 1, 2002; and 7.5 percent for taxable years beginning on or after
                          July 1, 2002.

                          Banks conducting business both inside and outside New York allocate
                          their income and assets by applying a three-factor allocation formula
                          consisting of payroll, deposits and receipts. For the 9 percent tax on
                          entire net income and the tax on assets, the deposits and receipts factors
                          have a weight of 40 percent each, and the wage factor has a weight of 20
                          percent. In addition, the law discounts the numerator of the wage factor

1999 NYS Tax Sourcebook                                                                       Page 89
                by 20 percent, making the maximum allocation percentage 96 percent.
                For the 3 percent tax on alternative income, the three factors have equal
                weighting, and no discount applies to the numerator of the wage factor.

                Article 33 imposes a franchise tax on insurance companies. There are
Insurance Tax   two components of the tax: 1) a tax based on the higher of four bases
                plus a tax on subsidiary capital; and 2) a tax based on gross direct
                premiums written on State-located risks or residents in the State.

                The first component of the tax is based on one of four alternative bases.
                An insurance corporation’s tax liability for this component is based on
                the alternative that results in the largest tax, plus an additional 0.08
                percent tax on subsidiary capital allocated to New York. The four bases
                are:

                & 9 percent of allocated entire net income with the allocation
                   percentage equal to the weighted average of the New York premium
                   percentage (weighted as nine) and the New York payroll percentage
                   (weighted as one);

                & 0.16 percent of allocated business and investment capital;

                & 9 percent of entire net income plus officers’ salaries basis. The basis
                   equals 30 percent of the sum of entire net income plus officers’
                   salaries minus $15,000 and any net loss for the reported year; or

                & a minimum tax of $250.

                The 9 percent tax rate is scheduled to decrease to 8.5 percent for taxable
                years beginning after June 30, 2000 and before July 1, 2001; to 8.0
                percent for taxable years beginning after June 30, 2001 and before
                July 1, 2002; and 7.5 percent for taxable years beginning on or after
                July 1, 2002.

                The second component of the Article 33 tax is a tax on gross premiums,
                less return premiums thereon, written on risks located or resident in
                New York. The rate of the tax on premiums varies according to the type
                of insurance risk covered by a premium, except for accident and health
                premiums which are taxed at different rates dependent on the type of
                insurer. Premiums received by corporations licensed as life and health
                insurers, including premiums on accident and health contracts, are taxed

Page 90                                                               1999 NYS Tax Sourcebook
                          at the rate of 0.7 percent (instead of 0.8 percent). Premiums written by
                          corporations licensed as property and casualty insurers are taxed at the
                          rate of 1.3 percent, excepting premiums on accident and health contracts
                          which are taxed at the rate of 1.0 percent. All premiums are computed as
                          received during the taxable year and allocated to New York.

                          The total tax equals the sum of the largest of the four alternative bases,
                          plus the tax on subsidiary capital, and the sum of the premiums based
                          taxes. However, this total cannot exceed 2.0 percent of taxable
                          premiums for life insurers and 2.6 percent of taxable premiums for all
                          other insurers. This cap represents the maximum tax on insurance
                          companies.

                          Article 33-A of the Tax Law, the direct writings tax, imposes a 3.6
Insurance - Direct        percent tax on premiums paid by persons who buy or renew insurance
Writings Tax              policies from companies not authorized to do business in New York.
                          These persons must file a return and pay the tax within 60 days of the
                          end of the calendar quarter in which any policy purchased or renewed
                          takes effect. Federal, New York State and local governments, the United
                          Nations and foreign governments are exempt.

                          Article 33-A exempts insurance premiums purchased from unauthorized
                          carriers through an excess line broker, because the Insurance Law taxes
                          those premiums at the same rate of 3.6 percent. Where insurance covers
                          risks located or residing both in and out of New York, the Commissioner
                          of Taxation and Finance regulates allocation of the tax.




1999 NYS Tax Sourcebook                                                                         Page 91
 Table 42: History of Corporate                                            Corporation
 Tax Rates in New York State,                                             Franchise (1)                       Banks (2)                        Insurance (3)
 1917-1999                        Year                                  (Income Base)                    (Income Base)                       (Income Base)
                                  1917                                         3.000%                                 --                                  --
                                  1918-25                                      4.500%                                 --                                  --
                                  1926-34                                      4.500%                           4.500%                                    --
                                  1935-44                                      6.000%                           4.500%                                    --
                                  1945-48                                      4.500%                           4.500%                                    --
                                  1948-67                                      5.500%                           4.500%                                    --
                                  1968-70                                      7.000%                           6.000%                                    --
                                  1971-73                                      9.000%                           8.000%                                    --
                                  1974                                         9.000%                           8.000%                               9.000%
                                  1975-76 (4)                                 12.000%                          15.600%                               9.000%
                                  1977 (5)                                    10.000%                          15.600%                               9.000%
                                  1978-84                                     10.000%                          12.000%                               9.000%
                                  1985-86                                     10.000%                           9.000%                               9.000%
                                  1987-88                                      9.000%                           9.000%                               9.000%
                                  1989 (6)                                     9.000%                           9.225%                               9.225%
                                  1990-93 (7)                                 10.350%                          10.350%                              10.350%
                                  1994 (8)                                    10.125%                          10.125%                              10.125%
                                  1995 (9)                                     9.675%                           9.675%                               9.675%
                                  1996 (10)                                    9.225%                           9.225%                               9.225%
                                  1997-99                                      9.000%                           9.000%                               9.000%
                                  1999-00 (11)(12)                             8.500%                           9.000%                               9.000%
                                  (1) The franchise tax on corporations dates back to 1874, but the tax imposed on net income began in 1917.
                                  (2) Bank tax revenues went to local governments until 1940 when it became a state revenue source.
                                  (3) Prior to 1974, insurance companies were taxed under Article 9.
                                  (4) Includes a 20% surcharge on corporations and 30% on banks.
                                  (5) Includes a 30% surcharge on banks.
                                  (6) Includes a 2.5% surcharge on banks and insurance companies.
                                  (7) Includes a 15% surcharge on corporations, banks and insurance companies.
                                  (8) Includes a 12.5% surcharge on corporations, banks and insurance companies.
                                  (9) Includes a 7.5% surcharge on corporations, banks and insurance companies.
                                  (10) The tax rate on corporations, banks and insurance companies is 9% plus a 2.5% surcharge.
                                  (11) The tax rate reductions are effective for tax years beginning after June 30, 1999. The tax rate will fall to 8%
                                  after June 30, 2000, and 7.5% after June 30, 2001.
                                  (12) The bank and insurance tax rate reductions are effective for tax years beginning after June 30, 2000. The tax
                                  rate will fall to 8.5% after June 30, 2000, 8.0% after June 30, 2001, and 7.5% after July 1, 2002.
                                  Source: NYS Department of Taxation and Finance, Office of Tax Policy Analysis.




Page 92                                                                                                                    1999 NYS Tax Sourcebook
 Table 43: Corporation Franchise                                   Total                  Paying Above                     Paying Fixed
 Tax (Art. 9-A): Number of                                        (Excl.                    Fixed Dollar                         Dollar      Number of
 Taxpayers, Tax Years 1944-45 Tax Year (1)                   "S" Corps.)                       Minimum                     Minimum (2)  "S" Corporations
 to 1995-96                      1995-96                        257,448                          76,524                        180,924          243,976
                                 1994-95                        250,504                          75,266                        175,238          229,649
                                 1993-94                        248,328                          73,331                        174,997          220,689
                                 1992-93                        250,316                          72,998                        177,318          211,945
                                 1991-92                        203,397                          68,053                        135,344          203,898
                                 1990-91                        239,542                          69,369                        170,173          193,615
                                 1989-90                        257,325                          71,539                        185,786          191,695
                                 1988-89                        252,105                          71,515                        180,590          173,562
                                 1987-88                        274,375                          82,149                        192,226          159,677
                                 1986-87                        235,785                         108,785                        127,000          109,798
                                 1985-86                        279,199                         119,199                        160,000           91,856
                                 1984-85                        297,303                         113,303                        184,000           51,210
                                 1983-84                        311,398                         115,398                        196,000             1,376
                                 1982-83                        339,037                         116,037                        223,000               222
                                 1981-82                        345,553                         120,553                        225,000                25
                                 1980-81                        415,187                         146,063                        269,124                 --
                                 1979-80                        406,209                         142,878                        263,331                 --
                                 1978-79                        381,394                         134,135                        247,259                 --
                                 1977-78                        368,325                         124,720                        243,605                 --
                                 1976-77                        352,683                         111,466                        241,217                 --
                                 1975-76                        350,440                         113,953                        236,487                 --
                                 1974-75                        351,743                         136,157                        215,586                 --
                                 1973-74                        351,392                         142,085                        209,307                 --
                                 1972-73                        345,717                         140,412                        205,305                 --
                                 1971-72                        340,550                         137,306                        203,244                 --
                                 1970-71                        343,003                         238,040                        104,963                 --
                                 1969-70                        325,104                         112,513                        212,591                 --
                                 1968-69                        345,291                         110,074                        235,217                 --
                                 1967-68                        333,016                         150,841                        182,175                 --
                                 1966-67                        309,828                         162,128                        147,700                 --
                                 1965-66                        302,067                         159,625                        142,442                 --
                                 1964-65                        275,788                         138,072                        137,716                 --
                                 1963-64                        276,715                         148,736                        127,979                 --
                                 1962-63                        268,591                         144,323                        124,268                 --
                                 1961-62                        215,838                         115,893                         99,945                 --
                                 1960-61                        192,820                         103,054                         89,766                 --
                                 1959-60                        186,031                          99,230                         86,801                 --
                                 1958-59                        179,449                          93,054                         86,395                 --
                                 1957-58                        169,356                          88,624                         80,732                 --
                                 1956-57                        157,403                          86,347                         71,056                 --
                                 1955-56                        155,136                          82,006                         73,130                 --
                                 1954-55                        149,220                          77,134                         72,086                 --
                                 1953-54                        142,710                          73,684                         69,026                 --
                                 1952-53                        134,846                          71,543                         63,303                 --
                                 1951-52                        131,911                          69,508                         62,403                 --
                                 1950-51                        123,471                          67,589                         55,882                 --
                                 1949-50                        119,372                          61,258                         58,114                 --
                                 1948-49                        120,390                          64,589                         55,801                 --
                                 1947-48                             - - - - - - - - - - Not Available - - - - - - - - - -                             --
                                 1946-47                        101,476                          57,722                         43,754                 --
                                 1945-46                         87,379                          51,843                         35,536                 --
                                 1944-45                         74,997                          43,632                         31,365                 --
                                  (1) Corporate fiscal years ending between December 1 and November 30 (July 1 to June 30 for 1951-52 and prior).
                                  (2) Total number of taxpayers paying no tax because of credits (in years when credits could reduce tax to zero) is not
                                  available.
                                  Source: NYS Department of Taxation and Finance, Office of Tax Policy Analysis.

1999 NYS Tax Sourcebook                                                                                                                         Page 93
 Table 44: Rate Structure of the Petroleum Business Tax as of April 1, 1999
 Taxable                                              Rate       Refunds, Credits                                                 Imposition
 Product                                       (Per Gallon)      or Exemptions                                                    of Tax
 Motor Fuels:
 Gasoline                                              14¢       Refund of tax for fuel used in farm production and motor         Initial point in the NYS distribution
                                                                 fuel used in commercial fishing vessels engaged in               chain (e.g., first import).
                                                                 harvesting fish.
 Alternative Fuels (e.g.,                              14¢       Liquefied Petroleum Gases exempt.                                When identified as a "motor fuel."
 Compressed Natural Gas)
 Aviation Fuels:
 Aviation Gasoline                                     5.6¢      Net rate after refund/credit.                                    Initial point in the NYS distribution
                                                                                                                                  chain (e.g., first import).
 Kero-Jet Fuel                                         5.6¢      No special treatment.                                            On consumption in NYS.
 Automotive Type Diesel                             12.25¢       Exemption for fuel used in farm production and motor fuel        First taxable sale or use (e.g., when
 Fuel:                                                           used in commercial fishing vessels engaged in harvesting         identified as "automotive-type diesel
                                                                 fish.                                                            fuel").
 for Railroad Use                                   Lower rate for automotive diesel fuel used to power
                                                       7.1¢
                                                    railroad locomotives.
 Non-Automotive Type Diesel Fuel: 13.2¢ (Basic Rate)
 for Manufacturing production of         No tax     Exemption and reimbursement of full PBT.                                      No tax.
 TPP for sale
 for Commercial Gallonage                 7.6¢     Exemption and reimbursement of supplemental tax.                               On final sale or use of product in
                                                                                                                                  NYS.
 Electric Utility for electric                 tax free with     Tax paid on quantity of fuel used and a credit against the       Same as above.
 generation                               direct pay permit      basic tax of 5.09¢ allowed.
 All other                                            13.2¢      Farmers' exemption/refund for fuel used in farm                  Same as above.
                                                                 production. Full exemption for sales for residential heating
                                                                 and sales to exempt organizations.
 Residual Fuel: 11.6¢ (Basic Rate)
 for Manufacturing production of                    No tax       Exemption and reimbursement of full PBT.                         No tax.
 TPP for sale
 for Commercial Gallonage                              6.0¢      Exemption and reimbursement of supplemental tax.                 On final sale or use of product in
                                                                                                                                  NYS.
 Electric Utility for electric                 tax free with     Tax paid on quantity of fuel used and a credit against the       Same as above.
 generation                               direct pay permit      basic tax on base of 5.05¢ allowed.
 All other                                            11.6¢      Farmers' exemption/refund for fuel used in farm                  Same as above.
                                                                 production. Full exemption for sales for residential
                                                                 heating, residual fuels used as bunker fuel, and sales to
                                                                 exempt organizations.
 Petroleum Business Tax Exemptions:
 Sales for export; sales to governmental entities when purchasing petroleum for their own use; sales of kerosene, except when blended with diesel motor
 fuels, motor fuels or residual fuels or when used to operate a motor vehicle; certain omnibus carriers; and nonpublic school operators.
 Source: NYS Department of Taxation and Finance, Office of Tax Policy Analysis.




Page 94                                                                                                                                 1999 NYS Tax Sourcebook
Table 45: New York State Petroleum Business Tax (Article 13-A) Rates, 1983-1999
            Effective   Gasoline and                                                                           Residual
Year        Date        Automotive Diesel          Nonautomotive Diesel                                        Petroleum Products
1983        --          3.25% of Gross Receipts    3.25% of Gross Receipts                                     3.25% of Gross Receipts
1984-1990   --          2.75% of Gross Receipts    2.75% of Gross Receipts                                     2.75% of Gross Receipts
1990        Sept. 1     6.33¢ per gallon           5.75¢ per gallon                                            4.60¢ per gallon
1991        April 1     7.59¢ per gallon           6.90¢ per gallon                                            5.52¢ per gallon
1991        July 1      12.77¢ per gallon          12.08¢ per gallon                                           10.70¢ per gallon
                                                   - 6.90¢ (farm use)
1992        Jan. 1      14.84¢ per gallon          14.03¢ per gallon                                           12.42¢ per gallon
                                                   - 8.05¢ (farm use)
1994--a     June 1      14.51¢ per gallon          13.73¢ per gallon                                           12.15¢ per gallon
                                                   - 7.88¢ (farm use)
1994--b     Sept. 1     14.51¢ per gallon          13.73¢ per gallon                                           12.15¢ per gallon
                        - no tax on farm use (1)   - no tax on farm use or electrical corps. with direct pay   - no tax on farm use
                                                   permits
                                                   - 10.80¢ (exempt organizations)
                                                   - 7.88¢ (manufacturing)
                                                   - 10.80¢ (commercial gallonage)
1995--a     June 1      13.87¢ per gallon          13.12¢ per gallon                                           11.61¢ per gallon
                        - no tax on farm use (1)   - no tax on farm use or electrical corps. with direct pay   - no tax on farm use
                                                   permits
                                                   - 10.32¢ (exempt organizations)
                                                   - 7.53¢ (manufacturing)
                                                   - 10.32¢ (commercial gallonage)
1995--b     Sept. 1     13.87¢ per gallon          13.12¢ per gallon                                           11.61¢ per gallon
                        - no tax on farm use (1)   - no tax on farm use or electrical corps. with direct pay   - no tax on farm use
                                                   permits
                                                   - 7.53¢ (exempt organizations)
                                                   - 7.53¢ (manufacturing)
                                                   - 10.32¢ (commercial gallonage)
1996--a     Jan. 1      14.41¢ per gallon          13.66¢ per gallon                                           12.05¢ per gallon
                        - no tax on farm use (1)   - no tax on farm use, exempt organizations or electrical    - no tax on farm use
                                                   corps. with direct pay permits (2)
                                                   - 7.85¢ (manufacturing)
                                                   - 10.75¢ (commercial gallonage)
1996--b     June 1      13.74¢ per gallon          13.02¢ per gallon                                           11.49¢ per gallon
                        - no tax on farm use (1)   - no tax on farm use, exempt organizations or electrical    - no tax on farm use
                                                   corps. with direct pay permits (2)
                                                   - 7.48¢ (manufacturing)
                                                   - 10.25¢ (commercial gallonage)                             - 5.95¢ (manufacturing)
                                                                                                               - 8.72¢ (commercial gallonage)
1997--a     Jan. 1      14.35¢ per gallon          13.53¢ per gallon                                           11.89¢ per gallon
                        - no tax on farm use (1)   - no tax on farm use, exempt organizations or electrical    - no tax on farm use
                                                   corps. with direct pay permits (2)
                        - 7.28¢ (rail use)         - 7.79¢ (manufacturing)                                     - 6.15¢ (manufacturing)
                                                   - 7.79¢ (commercial gallonage) (3)                          - 6.15¢ (commercial gallonage) (3)
1997--b     June 1      14.0¢ per gallon           13.2¢ per gallon                                            11.6¢ per gallon
                        - no tax on farm use (1)   - no tax on farm use, exempt organizations or electrical    - no tax on farm use, exempt
                                                   corps. with direct pay permits (2)                          organizations or electrical corps. with
                                                                                                               direct pay permits (2)
                        - 7.1¢ (rail use)          - 7.6¢ (manufacturing)                                      - 6.0¢ (manufacturing)
                                                   - 7.6¢ (commercial gallonage)                               - 6.0¢ (commercial gallonage)




Page 96                                                                                                                1999 NYS Tax Sourcebook
Table 45: New York State Petroleum Business Tax (Article 13-A) Rates, 1983-1999 (Con’t)
                Effective       Gasoline and                                                                                      Residual
Year            Date            Automotive Diesel                     Nonautomotive Diesel                                        Petroleum Products
1998            Jan. 1          Gasoline: 14.6¢ per gallon            13.7¢ per gallon                                            12.1¢ per gallon
                                - no tax on farm use (1)              - no tax on farm use, exempt organizations or electrical    - no tax on farm use, exempt
                                                                      corps. with direct pay permits (2)                          organizations or electrical corps. with
                                Automotive Diesel: 13.85¢ per                                                                     direct pay permits (2)
                                gallon
                                - no tax on farm use (1)
                                - 7.5¢ (rail use)                     - no tax (manufacturing) (4)                                - no tax (manufacturing) (4)
                                                                      - 7.9¢ (commercial gallonage)                               - 6.3¢ (commercial gallonage)
1999            Jan. 1          Gasoline: 14.0¢ per gallon            13.2¢ per gallon                                            11.6¢ per gallon
                                - no tax on farm use (1)              - no tax on farm use, exempt organizations or electrical    - no tax on farm use, exempt
                                                                      corps. with direct pay permits (2)                          organizations or electrical corps. with
                                Automotive Diesel: 13.25¢ per                                                                     direct pay permits (2)
                                gallon
                                - no tax on farm use (1)
                                - 7.1¢ (rail use)                     - no tax (manufacturing) (4)                                - no tax (manufacturing) (4)
                                                                      - 7.6¢ (commercial gallonage)                               - 6.0¢ (commercial gallonage)
1999            April 1         Gasoline: 14.0¢ per gallon            13.2¢ per gallon                                            11.6¢ per gallon
                                - no tax on farm use (1)              - no tax on farm use, exempt organizations or electrical    - no tax on farm use, exempt
                                                                      corps. with direct pay permits (2)                          organizations or electrical corps. with
                                Automotive Diesel: 12.25¢ per                                                                     direct pay permits (2)
                                gallon
                                - no tax on farm use (1)
                                - 7.1¢ (rail use)                     - no tax (manufacturing) (4)                                - no tax (manufacturing) (4)
                                                                      - 7.6¢ (commercial gallonage)                               - 6.0¢ (commercial gallonage)
(1) Effective September 1, 1994, non-automotive and residual fuel use for farm production are exempt from the petroleum business tax. Reimbursement can also be
claimed for motor fuel used for farm production.
(2) Effective January 1, 1996, purchases of non-automotive diesel fuel and residual petroleum products by exempt organizations, for self-use, are exempt from the tax.
(3) Effective March 1, 1997.
(4) Effective January 1, 1998, non-automotive diesel and residual fuel used in manufacturing are exempt from PBT.
Source: NYS Department of Taxation and Finance, Office of Tax Policy Analysis.




1999 NYS Tax Sourcebook                                                                                                                                            Page 97
Table 46: Significant Changes to New York State’s Corporate Franchise Tax Structure, 1984-1999
Tax Structure Component                   1984                                1985                      1986   1987
Bases & Rates
Net Income
Rate                                      10% on allocated entire net                                          Tax rate on entire net income is reduced
                                          income.                                                              from 10% to 9%. A lower tax rate (8%)
                                                                                                               applies to small businesses with ENI
                                                                                                               (allocated to NY) of $200,000 or less.
Starting Point                            Federal taxable income.
Modifications to Federal Taxable Income
       Additions
       Interest of federal, state,        Required
       municipal and other obligations.
       Interest paid to stockholders.     Interest paid less 10% or $1,000,
                                          whichever is larger.
       Deductions directly attributable   Taxpayers required to trace all
       to subsidiary capital.             expenses directly attributable.
       Deductions indirectly              Taxpayers required to trace                                          Expanded to require indirect tracing of all
       attributable to subsidiary         interest expense indirectly                                          other expenses.
       capital.                           attributable.
       State franchise tax deducted on    Required for NYS franchise tax                                       Expanded to include other state’s taxes.
       federal return.                    only.
       ACRS/MACRS deduction               Required                            Limited to non-New York
                                                                              property.
       Subtractions
       Foreign dividend gross up.         Deductible
       Depreciation                       Asset Depreciation Rules (ADR)      Partial ACRS
       Investment income                  50% of all dividends from
                                          nonsubsidiary corporations.
       Interest, dividends and gains      100% deductible.
       from subsidiary capital.
       Net Operating Losses               15 year carryover and 3 year
                                          carryback are permitted.
Allocation                                Three factor, receipts double                                        Property factor expanded to include
                                          weighted.                                                            leased personal property.
Business & Investment Capital
Rate                                      0.178% of allocated business and                                     Tax on capital limited to $350,000.
                                          investment capital.
Base                                      Total assets minus current                                           Allowed deduction for long-term liabilities.
                                          liabilities.
Allocation                                Product of AFMV of taxpayer’s                                        Modified to include NY and federal
                                          investments times issuer’s                                           obligations in denominator.
                                          allocation percentage.
Entire Net Income Plus Compensation
Rate                                      10%                                                                  Repealed
Base                                      ENI plus officer’s compensation                                      Repealed
                                          minus $30,000 and any net loss
                                          multiplied by 30%.
Alternative Minimum Taxable Income
                                                                                                               3.5% of ENI base calculated with three
                                                                                                               single-weighted factors.




Page 98                                                                                                           1999 NYS Tax Sourcebook
Table 46: Significant Changes to New York State’s Corporate Franchise Tax Structure, 1984-1999 (Con’t)
1988                                1989                            1990   1991         1992
Bases & Rates (Con’t)
Net Income (Con’t)




Modifications to Federal Taxable Income (Con’t)




                                    For tax years after 6/30/89,
                                    carryback limited to $10,000.



Business & Investment Capital (Con’t)




Entire Net Income Plus Compensation (Con’t)




Alternative Minimum Taxable Income (Con’t)
                                    Definition of minimum taxable
                                    income similar to federal
                                    alternative minimum taxable
                                    income. Rate increased to 5%.




1999 NYS Tax Sourcebook                                                                                  Page 99
Table 46: Significant Changes to New York State’s Corporate Franchise Tax Structure, 1984-1999 (Con’t)
1993                                     1994                                           1995                    1996
Bases & Rates (Con’t)
Net Income (Con’t)




Modifications to Federal Taxable Income (Con’t)




                                         Recoupled with federal rules.




                                         Recoupled with federal rules.




Business & Investment Capital (Con’t)




Entire Net Income Plus Compensation (Con’t)




Alternative Minimum Taxable Income (Con’t)
                                         Net operating loss deduction allowed. Double   Rate reduced to 3.5%.
                                         weighting of receipts allowed.




Page 100                                                                                                           1999 NYS Tax Sourcebook
Table 46: Significant Changes to New York State’s Corporate Franchise Tax Structure, 1984-1999 (Con’t)
1997                                              1998                                                       1999
Bases & Rates (Con’t)
Net Income (Con’t)
                                                  The tax rate on ENI reduced from 9% to 7.5% over a         The rate equals 8.5% for tax years beginning after
                                                  three year period for tax years beginning after 6/30/99.   6/30/99 and before 7/1/00. The rate remains at 7.5% for
                                                  The 8% small business rate is reduced to 7.5% effective    small businesses.
                                                  for tax years beginning after 6/30/99.


Modifications to Federal Taxable Income (Con’t)




Business & Investment Capital (Con’t)




Entire Net Income Plus Compensation (Con’t)




Alternative Minimum Taxable Income (Con’t)
                                                  Rate reduced to 3.25% for tax years beginning after        Reduced to 3% for tax years beginning after 6/30/99.
                                                  6/30/98.




1999 NYS Tax Sourcebook                                                                                                                                Page 101
Table 46: Significant Changes to New York State’s Corporate Franchise Tax Structure, 1984-1999 (Con’t)
Tax Structure Component               1984                                 1985                           1986                                1987
Minimum Tax
                                      $250




Subsidiary Capital
                                      0.09% tax imposed on investments
                                      in stock of subsidiaries, plus
                                      advances, less liabilities.
Credits
     Investment Tax Credit (ITC)      Rate equaled 6%.                                                                                        Research and Development credit merged
                                                                                                                                              with ITC provision. Entire stock of credits
                                                                                                                                              limited to 7 year carryover. Rate changed
                                                                                                                                              to 5% of first $500 million of investments,
                                                                                                                                              plus 4% for investments over that amount.
     DISC Export Credit               Allocated eligible base multiplied                                                                      Repealed
                                      by 70% and applicable tax rate.
     Employment Incentive                                                                                 50% allowed for amount of ITC for   2 year credit phased in over several
                                                                                                          3 years after ITC was allowed if    years. After 1989, credit increases with
                                                                                                          employment was 101% of              employment increases.
                                                                                                          employment in year prior to ITC
                                                                                                          year.
     Eligible Business Facility       Rate equals average of value of      Credit could be used for tax
                                      eligible property and certain        years prior to Jan. 1, 2000.
                                      wages—certificate of eligibility
                                      required prior to 1983.
     EDZ                                                                                                  EDZ wage tax credit, EDZ capital
                                                                                                          corporation credit and EDZ
                                                                                                          investment tax credit allowed.
     Rehabilitation Expenditures of   Rehabilitation expenditures
     a Retail Enterprise              calculated by ITC rates and bases.
     Research and Development         10% credit for investment in R&D                                                                        Repealed
                                      property.
     Investment Activity,
     Broker/Dealers


     Special Additional Mortgage      Up to 100% of SAMRT paid.
     Recording Tax (SAMRT)            Excess treated as overpayment.
     Alternative Minimum Tax                                                                                                                  Credit added, but not available until 1991.
     (AMT)
     Credit for Rehabilitation of
     Historic Barns


     Farmer School Property Tax
     Credit




Page 102                                                                                                                                         1999 NYS Tax Sourcebook
Table 46: Significant Changes to New York State’s Corporate Franchise Tax Structure, 1984-1999 (Con’t)
1988                         1989                                  1990                             1991                             1992
Minimum Tax (Con’t)
                             Amounts range from $325 to
                             $1,500 measured by gross payroll
                             for tax years ending after 6/30/89.


Subsidiary Capital (Con’t)




Credits (Con’t)
                                                                   $500 million amount reduced to   $425 million amount reduced to
                                                                   $425 million.                    $350 million.




                                                                   Overpayment provision expired.


                                                                   Credit available.




1999 NYS Tax Sourcebook                                                                                                                     Page 103
Table 46: Significant Changes to New York State’s Corporate Franchise Tax Structure, 1984-1999 (Con’t)
1993                                         1994                                           1995   1996
Minimum Tax (Con’t)




Subsidiary Capital (Con’t)




Credits (Con’t)
                                             Carryover period extended to 10 years.




                                             Carryover period extended to 10 years.




Wage tax credit, investment tax credit and   Two year wage credit allowed for business in
capital corporation credit amended.          zone eligible areas.




                                             Excess is treated as overpayment for 9-A
                                             taxpayers including S corps.
                                             Net operating loss deduction allowed. Double
                                             weighting of receipts allowed.




Page 104                                                                                              1999 NYS Tax Sourcebook
Table 46: Significant Changes to New York State’s Corporate Franchise Tax Structure, 1984-1999 (Con’t)
1997                                                     1998                                                           1999
Minimum Tax (Con’t)
                                                         Reduced from $325 to $100 for gross payrolls of                Reduced from $325 to $225 for taxable years beginning
                                                         $250,000 or less. Drops from $325 to $225 for gross            after 6/30/99, for gross payrolls of less than $500,000,
                                                         payrolls of less than $500,000, but more than $250,000.        but more than $250,000.
                                                         Phased-in over two years beginning after 6/30/98.
Subsidiary Capital (Con’t)




Credits (Con’t)
                                                         Carryover period extended to 15 years.




                                                         Credit allowed for equipment or buildings used in
                                                         broker/dealer activity and related activities. Effective for
                                                         property placed in service from 10/1/98-9/30/03.




ITC expanded to include qualified expenditures for the
rehabilitation of historic barns. Credit is 25% of
expenditures.
Various percentages of school property tax on farm       Enhanced credit by exempting up to $30,000 of nonfarm
property; phases out for taxpayers with ENI above        federal gross income in determining eligibility for the
$100,000.                                                credit. Also may subtract principal payments on farm
                                                         debt when calculating the income limit for the credit
                                                         phase-out.




1999 NYS Tax Sourcebook                                                                                                                                            Page 105
Table 46: Significant Changes to New York State’s Corporate Franchise Tax Structure, 1984-1999 (Con’t)
Tax Structure Component                  1984                                  1985                              1986                                1987
Credits (Con’t)
      Alternative Fuels Vehicle Credit




      Credit for Employers Who Hire
      Persons With Disabilities
      “New York State Emerging
      Industry Jobs Act”


Temporary Surcharge


MCTD Surcharge
                                         17%
Special Treatment
      Subchapter S Corporations          An S corporation and its
                                         shareholders are treated in the
                                         same manner as a partnership and
                                         its partners. Shareholders
                                         calculate the S corporation’s items
                                         of income, loss and deductions on
                                         a pro rata basis.
      Tax Rates
      For shareholders                   The top tax rate on earned income     The top tax rate on earned        The top tax rate on earned income   The top tax rate on all income equals
                                         equals 10%; the top tax rate on       income equals 9.5%; the top tax   equals 9.5%; the top tax rate on    8.75%. A temporary surcharge on
                                         unearned income equals 14%.           rate on unearned income equals    unearned income equals 13.5%.       unearned income ranges from 0%-3% for
                                                                               13.75%.                                                               taxpayers with NYAGI over $100,000.


      For S corporations                 S corporations are not subject to
                                         the Article 9-A corporate franchise
                                         tax.




      Filing fee                         $0




Page 106                                                                                                                                               1999 NYS Tax Sourcebook
Table 46: Significant Changes to New York State’s Corporate Franchise Tax Structure, 1984-1999 (Con’t)
1988                                    1989                               1990                                  1991   1992
Credits (Con’t)




Temporary Surcharge (Con’t)
                                                                           15%
MCTD Surcharge (Con’t)


Special Treatment (Con’t)




The top tax rate on all income equals   The top tax rate on all income
8.375%. A temporary surcharge on        equals 7.875%. The temporary tax
unearned income ranges from 0%-2%       surcharge on unearned income is
for taxpayers with NYAGI over           repealed.
$100,000.
                                                                           S corporations become subject to
                                                                           the corporation franchise tax. The
                                                                           tax rate is the difference between
                                                                           the Article 9-A rate (10.35%, which
                                                                           includes the 15% surcharge) and
                                                                           the highest effective personal
                                                                           income tax rate (7.785%), or
                                                                           2.475%.
$25                                     $325                               Repealed




1999 NYS Tax Sourcebook                                                                                                        Page 107
Table 46: Significant Changes to New York State’s Corporate Franchise Tax Structure, 1984-1999 (Con’t)
1993                          1994                                              1995                                             1996
Credits (Con’t)




Temporary Surcharge (Con’t)
                              Reduced to 12.5%                                  Reduced to 7.5%                                  Reduced to 2.5%
MCTD Surcharge (Con’t)


Special Treatment
                                                                                                                                 Automatic conformity to federal S corporation
                                                                                                                                 changes.




                              For taxable years after 7/1/94 and before         S corporation differential personal income tax
                              7/1/96, the calculation of the entity level tax   rate fixed at 7.875%.
                              equals an average of the pre-1994 law
                              differential and application of the corporate
                              tax surcharge after the differential is
                              calculated.




Page 108                                                                                                                               1999 NYS Tax Sourcebook
Table 46: Significant Changes to New York State’s Corporate Franchise Tax Structure, 1984-1999 (Con’t)
1997                                   1998                                                       1999
Credits (Con’t)
                                       Credit equals 50% of incremental costs (capped at
                                       $5,000 per vehicle); 60% of the cost of clean-fuel
                                       components (capped at $5,000 or $10,000 per vehicle
                                       depending on weight); and 50% of the cost of new clear-
                                       fuel refueling property.
                                       Credit equals 35% of the first $6,000 of qualified wages
                                       (maximum of $2,100 per employee).
                                                                                                  Employment tax credit and capital tax credits for
                                                                                                  qualified emerging technology companies effective for
                                                                                                  tax years beginning on or after 1/1/99.
Temporary Surcharge (Con’t)
Reduced to 0%
MCTD Surcharge (Con’t)


Special Treatment




                                       The top rate on all income equals 6.85%.




                                       S corporation differential personal income tax rate
                                       reduced to 7.525% for taxable years beginning after
                                       6/30/99, to 7.175% for taxable years beginning after
                                       6/30/00 and to 6.85% beginning after 6/30/01. The
                                       differential rate percentage equals 0.975, 0.825, and
                                       0.65, respectively.




1999 NYS Tax Sourcebook                                                                                                                     Page 109
Table 47: Significant Changes to New York State’s Corporate Franchise Tax on Insurance Companies, 1984-1999
Tax Structure Component                                  1984                                 1985                            1986   1987                     1988        1989
Bases & Rates
Net Income
Rate                                                     9% on allocated entire net income.
Starting Point                                           Federal taxable income.
Modifications to Federal Taxable Income
       Additions
       Federal dividends-received deduction.             Required
       Other dividend or interest income not deducted    Required
       from federal taxable income.
       Interest paid to stockholders.                    Interest paid less 10% or $1,000,
                                                         whichever is larger.
       Federal net operating loss.                       Required
       Deductions attributable to subsidiary capital.    Required
       NYS franchise tax.                                Required
       ACRS/MACRS deduction                              Required                             Limited to non-New York
                                                                                              property.
       Provisions decoupling from federal treatment of                                                                               Decoupled from federal
       unearned premiums and unpaid losses for                                                                                       treatment.
       property and casualty insurers.
       Subtractions
       Depreciation                                      Asset depreciation range (ADR).      Partial ACRS/MACRS limited to
                                                                                              New York property.
       Investment Income                                 50% of all dividends from
                                                         nonsubsidiary corporations.
       Interest, dividends and gains from subsidiary     100% deductible.
       capital.
       Net Operating Losses                              15 year carryover and 3 year
                                                         carryback are permitted.
       Provisions decoupling from federal treatment of                                                                               Decoupled from federal
       unearned premiums and unpaid losses for                                                                                       treatment.
       property and casualty insurers.
Allocation                                               Two-factor formula based on
                                                         premiums and wages.
Business & Investment Capital
Rate                                                     0.16% of allocated business and
                                                         investment capital.
Allocation                                               Two-factor formula based on
                                                         premiums and wages.
Entire Net Income Plus Compensation
Rate                                                     9%
Base                                                     ENI plus officer’s compensation
                                                         minus $30,000 and any net loss
                                                         multiplied by 30%.
Allocation                                               Two-factor formula based on
                                                         premiums and wages.




Page 110                                                                                                                                                        1999 NYS Tax Sourcebook
Table 47: Significant Changes to New York State’s Corporate Franchise Tax on Insurance Companies, 1984-1999 (Con’t)
1990                           1991                    1992        1993                  1994
Bases & Rates (Con’t)
Net Income (Con’t)




                                                                                         Recoupled to federal rules.


                               Decoupling provisions               Decoupled from IRC
                               made permanent.                     Section 847.




                                                                                         Recoupled with federal rules.




                                                                   Decoupled from IRC
                                                                   Section 847.




Business & Investment Capital (Con’t)




Entire Net Income Plus Compensation (Con’t)




1999 NYS Tax Sourcebook                                                                                                  Page 111
Table 47: Significant Changes to New York State’s Corporate Franchise Tax on Insurance Companies, 1984-1999 (Con’t)
1995                             1996                            1997   1998           1999
Bases & Rates (Con’t)
Net Income (Con’t)




Recoupled to federal rules.      Recoupled to federal rules.




Recoupled with federal rules.    Recoupled with federal rules.




Business & Investment Capital (Con’t)




Entire Net Income Plus Compensation (Con’t)




Page 112                                                                                      1999 NYS Tax Sourcebook
Table 47: Significant Changes to New York State’s Corporate Franchise Tax on Insurance Companies, 1984-1999 (Con’t)
Tax Structure Component                             1984                                  1985   1986   1987                1988   1989
Minimum Tax
                                                    $250
Subsidiary Capital
                                                    0.08% tax imposed on investments
                                                    in stock of subsidiaries, plus
                                                    advances, less liabilities.
Premiums
Rate                                                Life - 1%                                           Decreased to 0.8%
                                                    Accident and Health - 1%
                                                    Property and Casualty - 1.2%
                                                    Captive Insurers
Base                                                Premiums received for insuring
                                                    New York State risks.
Allocation                                          Two-factor formula based on
                                                    premiums and wages.
Limitation on Tax (Cap)
                                                    Equals 2.6% of premiums before
                                                    certain credits.


Credits
       Retaliatory Tax Credit                       Up to 90% of retaliatory taxes paid
                                                    to other states by New York
                                                    domiciled or organized insurers.
       Fire Insurance Tax Credits                   Allowed for taxes paid on certain
                                                    fire insurance premiums.
       Eligible Business Facility                   Rate equals average of value of
                                                    eligible property and certain
                                                    wages.
       EDZ                                          EDZ wage tax credit, EDZ capital
                                                    corporation credit and EDZ
                                                    investment tax credit allowed.



       Credit for Investment in Certified Capital
       Companies (CAPCOs)
       Credit for Employers Who Hire Persons With
       Disabilities


       Special Additional Mortgage Recording Tax    Up to 100% of SAMRT paid.
       (SAMRT)                                      Carryforward allowed.
Temporary Surcharge
                                                                                                                                   2.5%
MCTD Surcharge
                                                    17%




1999 NYS Tax Sourcebook                                                                                                                   Page 113
Table 47: Significant Changes to New York State’s Corporate Franchise Tax on Insurance Companies, 1984-1999 (Con’t)
1990                              1991      1992                   1993                     1994
Minimum Tax (Con’t)


Subsidiary Capital (Con’t)




                                            Increased to 1.3%




Limitation on Tax (Cap) (Con’t)




Credits (Con’t)




                                                                   Wage tax credit,         Two-year wage tax credit applies to
                                                                   investment tax credit,   businesses in zone equivalent areas.
                                                                   and capital
                                                                   corporation credit
                                                                   amended.




Temporary Surcharge (Con’t)
15%                                                                                         Reduced to 12.5%
MCTD Surcharge (Con’t)




Page 114                                                                                           1999 NYS Tax Sourcebook
Table 47: Significant Changes to New York State’s Corporate Franchise Tax on Insurance Companies, 1984-1999 (Con’t)
1995                                   1996                                   1997            1998                                1999
Minimum Tax (Con’t)


Subsidiary Capital (Con’t)




                                                                                              Decreased to 0.7%




                                                                                              Top rate of 0.4% or $5,000.




Limitation on Tax (Cap) (Con’t)
                                                                                              Decreased to 2.0% of premiums
                                                                                              before certain credits for life
                                                                                              insurers.
Credits (Con’t)




Two-year wage tax credit applies to    Two-year wage tax credit applies to
businesses in zone equivalent areas.   businesses in zone equivalent areas.




                                                                                                                                  Credit equals 100% of amount invested in
                                                                                                                                  CAPCOs, rate equals 10% per year for 10 years.
                                                                                              Credit equals 35% of the first
                                                                                              $6,000 of qualified wages
                                                                                              (maximum of $2,100 per employee).



Temporary Surcharge (Con’t)
Reduced to 7.5%                        Reduced to 2.5%                        Reduced to 0%
MCTD Surcharge (Con’t)




1999 NYS Tax Sourcebook                                                                                                                                             Page 115
Table 48: Significant Changes to New York State’s Franchise Tax on Banking Corporations, 1984-1999
Tax Structure Component                   1984                                    1985                             1986   1987
Bases & Rates
Net Income
Rate                                      12% on allocated entire net             9% on allocated entire net
                                          income.                                 income.
Starting Point                            Federal taxable income
Modifications to Federal Taxable Income
       Additions
       Dividends and interest             Required
       effectively connected with US
       business.
       NYS franchise tax, foreign         Required
       country taxes.
       ACRS/MACRS deduction               Required                                Limited to non-New York
                                                                                  property.
       Federal bad debt deduction                                                                                         Required
       Subtractions
       Foreign dividend gross up.         Deductible
       New York depreciation              Asset Depreciation Rules (ADR)          Partial ACRS limited to
                                                                                  New York property.
       Wages not deducted on federal      Deductible
       return due to Jobs Credit.
       FDIC/FSLIC                         Nondeductible                           Deductible
       Percentage of interest and         Nondeductible                           Deductible
       dividend income, gains, losses
       from subsidiary capital.
       International Banking Facility     Deductible                              Taxpayers can elect to take
       (IBF) Income                                                               deduction or exclude IBF
                                                                                  income from ENI allocation
                                                                                  percentage.
       Percentage of interest income      Nondeductible                           Deductible
       from US/NYS obligations.
       NYS bad debt deduction.                                                                                            Deductible
       Recaptured reserve                                                                                                 Deductible
       Net Operating Loss Deduction


Allocation                                Separate accounting.                    Three-factor formula-payroll,
                                                                                  deposits, receipts.
Capital Stock (Commercial Banks           1.6 mills of each dollar of allocated   Repealed
Only)                                     capital stock.
Interest and Dividends (Thrifts Only)     1.6% of allocated interest and          Repealed
                                          dividends credited by bank to
                                          depositors/shareholders.
Allocated Taxable Assets
Base                                                                              Average total value of assets
                                                                                  minus FDIC/FSLIC and
                                                                                  interbank placements.
Rate                                                                              1/10, 1/25, or 1/50 of a mill
                                                                                  (based on net-worth-to-assets
                                                                                  ratio).
Allocation                                                                        Based on payroll, receipts and
                                                                                  deposits.




Page 116                                                                                                                     1999 NYS Tax Sourcebook
Table 48: Significant Changes to New York State’s Franchise Tax on Banking Corporations, 1984-1999 (Con’t)
1988                                        1989   1990    1991             1992                  1993
Bases & Rates (Con’t)
Net Income (Con’t)




Modifications to Federal Taxable Income (Con’t)




Allocated Taxable Assets (Con’t)
                                                                            Repealed exclusion.




1999 NYS Tax Sourcebook                                                                                  Page 117
Table 48: Significant Changes to New York State’s Franchise Tax on Banking Corporations, 1984-1999 (Con’t)
1994                            1995                              1996                              1997   1998                            1999
Bases & Rates (Con’t)
Net Income (Con’t)




Modifications to Federal Taxable Income (Con’t)




Recoupled with federal rules.   Recoupled with federal rules.     Recoupled with federal rules.




Recoupled with federal          Recoupled with federal            Recoupled with federal
treatment.                      treatment.                        treatment.




Limited to percentage of        Limited to percentage of excess   Limited to percentage of excess
excess gains over losses.       gains over losses.                gains over losses.




                                                                                                           Effective for losses incurred
                                                                                                           on or after 1/1/2001.




Allocated Taxable Assets (Con’t)




Page 118                                                                                                                         1999 NYS Tax Sourcebook
Table 48: Significant Changes to New York State’s Franchise Tax on Banking Corporations, 1984-1999 (Con’t)
Tax Structure Component              1984                               1985                               1986                               1987
Allocated Alternative Entire Net Income
Rate                                                                    3%
Base                                                                    Same as ENI but includes
                                                                        income from subsidiary capital.
Minimum Tax
                                     $250
Credits
       Eligible Business Facility    Rate equals average of value of
                                     eligible property and certain
                                     wages. New projects not approved
                                     after 3/31/83.
       EDZ                                                                                                 EDZ wage tax credit, EDZ capital
                                                                                                           corporation credit and EDZ
                                                                                                           investment tax credit allowed.
       Special Additional Mortgage   Up to 100% of SAMRT paid.
       Recording Tax (SAMRT)         Carryforward allowed.
       Mortgage Servicing            Allowed for servicing mortgages
                                     acquired by SONYMA.




       Investment Activity,
       Brokers/Dealers
Temporary Surcharge


MCTD Surcharge
                                     17%
Universe of Taxpayers
                                     Includes only taxpayers doing a    Expanded definition of banking
                                     banking business in New York.      corporation and banking
                                                                        business.
Returns
                                     Group of affiliated corporations   Group of affiliated corporations
                                     computed on consolidated basis.    computed on combined basis.




1999 NYS Tax Sourcebook                                                                                                                              Page 119
Table 48: Significant Changes to New York State’s Franchise Tax on Banking Corporations, 1984-1999 (Con’t)
1988                                 1989         1990     1991             1992           1993
Allocated Alternative Entire Net Income (Con’t)




Minimum Tax (Con’t)


Credits (Con’t)




                                                                                           Wage tax credit, investment
                                                                                           tax credit and capital
                                                                                           corporation credit amended.




Temporary Surcharge (Con’t)
                                     2.5%         15%
MCTD Surcharge (Con’t)


Universe of Taxpayers (Con’t)




Returns (Con’t)




Page 120                                                                               1999 NYS Tax Sourcebook
Table 48: Significant Changes to New York State’s Franchise Tax on Banking Corporations, 1984-1999 (Con’t)
1994                           1995                              1996                              1997            1998   1999
Allocated Alternative Entire Net Income (Con’t)




Minimum Tax (Con’t)


Credits (Con’t)




Two-year wage credit applies   Two-year wage credit applies to   Two-year wage credit applies to
to businesses in zone          businesses in zone equivalent     businesses in zone equivalent
equivalent areas.              areas.                            areas.



                                                                                                                          Credit allowed for equipment
                                                                                                                          or buildings used in
                                                                                                                          broker/dealer activity and
                                                                                                                          related activities. Effective for
                                                                                                                          property placed in service
                                                                                                                          from 10/1/98-9/30/03.



Temporary Surcharge (Con’t)
Reduced to 12.5%               Reduced to 7.5%                   Reduced to 2.5%                   Reduced to 0%
MCTD Surcharge (Con’t)


Universe of Taxpayers (Con’t)




Returns (Con’t)




1999 NYS Tax Sourcebook                                                                                                                    Page 121
Table 49: Significant Changes in New York State’s Taxation of Utility Corporations & Other Specified Companies,
1984-1999
Tax Structure Component                     1984                                          1985                                       1986                          1987
Organized Tax, Tax on Changes of          0.025% on the total amount of the par      0.05% on the total amount of the par
Capital of Domestic Corporations (Section value of stock authorized to be issued and value of stock authorized to be issued
180)                                      5¢ per share for shares without par value. and 5¢ per share for shares without par
                                                                                     value.
License and Maintenance Fees on             0.125% on the total amount of the par      0.05% on the total amount of the par
Foreign (out-of-state) Corporations         value of stock authorized to be issued and value of stock authorized to be issued
(Section 181)                               6¢ per share for shares without par value. and 5¢ per share for shares without par
                                                                                       value.
Franchise Tax on Transportation and         Tax based on the higher of 1) 1.5 mills on
Transmission Corporations and               each dollar of net value of issued capital
Associations (Section 183)                  stock in New York State; 2) 0.375 mills
                                            per dollar of par value for each one
                                            percent of dividends paid in excess of 6%;
                                            and 3) a $75 minimum tax.
Additional Franchise Tax on                 Applies to all corporations principally       Tax rate equals 0.30% on the gross
Transportation and Transmission             engaged in transportation or transmission.    earnings of telephone and telegraph
Corporations and Associations (Section      Tax rate equals 0.75% on gross earnings       companies and 0.75% on the gross
184)                                        of all transportation and transmission        earnings of all other transportation and
                                            companies.                                    transmission companies.




Franchise Tax on Farmers’, Fruit            Tax based on the higher of 1) 1 mill on
Growers’, and Other Like Agricultural       each dollar of the value of issued capital
Corporations Organized and Operated on      stock allocated to New York State; 2) 0.25
a Co-Operative Basis (Section 185)          mills for each percent of dividends paid in
                                            excess of 6% on the value of issued
                                            capital stock allocated to New York State;
                                            or 3) a $10 minimum tax.
Franchise Tax on Water-Works                Applies to corporations principally
Companies, Gas Companies, Electric or       engaged in the business of supplying
Steam Heating, Lighting and Power           water, steam or gas through mains or
Companies (Section 186)                     pipes and electricity. Tax rate is 0.75% on
                                            gross earnings.
Tax on the Furnishing of Utility Services   Applies to any person engaged in the
(Section 186-a)                             business of providing transportation
                                            service on the public highways of the
                                            State or who sells gas, electricity, steam,
                                            water, refrigerator, telephone or telegraph
                                            service through mains, pipes or wires.
                                            Tax rate equals 3.0% on the gross income
                                            of companies under the supervision of the
                                            Department of Public Service and 3.0%
                                            on the gross operating income of all other
                                            utility service providers.
Treatment of Carrier Access                 Interexchange carriers pay tax and local
                                            exchange carriers claim access
                                            deduction.
Other Sales for Resale                      Resellers pay tax and original utility
                                            claims sale for resale deduction.
Economic Development Zone (EDZ)                                                                                                      Regulated utilities may
Credit                                                                                                                               apply 97% of the 3%
                                                                                                                                     discount on gas, electric,
                                                                                                                                     steam or water sales or
                                                                                                                                     services rendered in an
                                                                                                                                     economic development
                                                                                                                                     zone against tax liability.
Transportation Business Tax on Utility
Services in Erie County (Section 186-d)




Page 122                                                                                                                                                           1999 NYS Tax Sourcebook
Table 49: Significant Changes in New York State’s Taxation of Utility Corporations & Other Specified Companies,
1984-1999 (Con’t)
1988                        1989                                         1990                                        1991




                            Companies principally engaged in the
                            conduct of aviation (including air freight
                            forwarders and like indirect air carriers)
                            taxed on net income under Article 9-A
                            beginning in tax year 1989.


                            Companies principally engaged in the         Tax rate equals 0.75% on the gross
                            conduct of aviation (including air freight   earnings of all transportation and
                            forwarders and like indirect air carriers)   transmission companies.
                            taxed on net income under Article 9-A
                            beginning in tax year 1989.




                                                                                                                     Tax rate equals 3.5% on the gross income of
                                                                                                                     companies under the supervision of the
                                                                                                                     Department of Public Service and 3.5% on
                                                                                                                     the gross operating income of all other utility
                                                                                                                     service providers.




                                                                         Local exchange carriers pay tax and
                                                                         interexchange carriers claim access
                                                                         deduction.
                            Original utility pays tax and subsequent
                            resellers claim sale for resale deduction.
                                                                         Erie county authorized to adopt a tax not
                                                                         exceeding 0.75% of gross income or gross
                                                                         operating income of utility service
                                                                         providers.




1999 NYS Tax Sourcebook                                                                                                                               Page 123
Table 49: Significant Changes in New York State’s Taxation of Utility Corporations & Other Specified Companies,
1984-1999 (Con’t)
1992                                            1993                                     1994   1995




                                                                                                Exclusion of companies principally engaged
                                                                                                in providing telecommunications services for
                                                                                                the purposes of air safety and navigation.




                                                                                                Exclusion of companies principally engaged
                                                                                                in providing telecommunications services for
                                                                                                the purposes of air safety and navigation.
                                                                                                Excludes telecommunication corporations
                                                                                                not principally engaged in local telephone
                                                                                                services. Excludes all interLATA, interstate,
                                                                                                and international telecommunication
                                                                                                services.




Certain electric utilities that established a
financial resource asset for ratemaking
purposes (with PSC permission) may
deduct an allowance from gross earnings
subject to tax.
Certain electric utilities that established a                                                   Excludes receipts from the sale of
financial resource asset for ratemaking                                                         telecommunication services.
purposes (with PSC permission) may
deduct an allowance from gross earnings
subject to tax.




                                                                                                See Section 186-e.



                                                                                                See Section 186-e.


                                                Credit reduced to 96.5% and limited to
                                                years prior to 1994.




Page 124                                                                                              1999 NYS Tax Sourcebook
Table 49: Significant Changes in New York State’s Taxation of Utility Corporations & Other Specified Companies,
1984-1999 (Con’t)
1996                                           1997                                            1998                                         1999




                                               Trucking and railroad companies will be
                                               subject to the corporate franchise tax
                                               (Article 9-A) for taxable years beginning
                                               after 1997 unless they elect to remain in
                                               Article 9.


Exclusion of 30% of interLATA toll receipts.   Beginning in 1997, the tax is reduced from      Rate falls to 0.375% effective
                                               0.75% to 0.60% for truckers and railroads       July 1, 2000.
                                               only. These companies will be subject to
                                               the corporate franchise tax (Article 9-A) for
                                               taxable years beginning after 1997 unless
                                               they elect to remain in Article 9.




                                                                                               Rate falls to 3.25% effective
                                                                                               October 1, 1998. The rate falls further to
                                                                                               2.5% effective January 1, 2000.




1999 NYS Tax Sourcebook                                                                                                                            Page 125
Table 49: Significant Changes in New York State’s Taxation of Utility Corporations & Other Specified Companies,
1984-1999 (Con’t)
Tax Structure Component                  1984                                          1985   1986   1987
Tax on the Furnishing of
Telecommunications Services
(Section 186-e)




Privilege Tax on Importation of Gas
Services for Consumption
(Section 189)
Temporary Surcharge (Section 188 and
189-b)




MCTD Surcharge (Sections 183-a, 184-a, 17% on tax due under §§ 183, 184, 186,
186-b, 186-c and 189-a)                and 186-a attributable to the MCTD
                                       (Metropolitan Commuter Transportation
                                       District).
Credit for Special Additional Mortgage   Credit allowed on all Article 9 taxes                       After May 1, 1987, disallow credit for a
Recording (Section 187)                  (except §§ 180, 181 and 186-a) equal to                     mortgage of real property in the MCTD
                                         the amount of special additional mortgage                   or Erie County principally improved.
                                         recording taxes paid. Credit against § 184
                                         tax is the excess of the special additional
                                         mortgage recording tax over any credit
                                         allowed against the § 183 tax.
Alternative Fuels Vehicle Credit




Credit for Employers Who Hire Persons
With Disabilities


Power for Jobs Credit




Page 126                                                                                             1999 NYS Tax Sourcebook
Table 49: Significant Changes in New York State’s Taxation of Utility Corporations & Other Specified Companies,
1984-1999 (Con’t)
1988                        1989                         1990                                        1991
                                                                                                     For taxable months after August 1, 1991, tax
                                                                                                     rate equals 4.25% on the consideration given
                                                                                                     or contracted to be given by a gas importer
                                                                                                     for gas services imported or caused to be
                                                                                                     imported into New York by a gas importer for
                                                                                                     its own use or consumption in the State.


                                                         15% on tax due under §§ 183, 184, 186 and   15% surcharge also applies on tax due under
                                                         186-a.                                      § 189 for taxable months after August 1,
                                                                                                     1991.
                                                                                                     17% surcharge also applies on tax
                                                                                                     attributable to MCTD under § 189 for taxable
                                                                                                     months after August 1, 1991.




1999 NYS Tax Sourcebook                                                                                                             Page 127
Table 49: Significant Changes in New York State’s Taxation of Utility Corporations & Other Specified Companies,
1984-1999 (Con’t)
1992                        1993                         1994                                      1995
                                                                                                   Recodifies the 3.5% excise tax on receipts
                                                                                                   from telecommunications services.
                                                                                                   Replaces the property factor with the
                                                                                                   Goldberg allocation method. Shifts access
                                                                                                   deduction from interexchange carriers and
                                                                                                   local carriers who are ultimate sellers to
                                                                                                   initial sellers.




                                                         12.5% on tax due under §§ 183, 184, 186   Surcharge rates for 189-e equal 7.5% in
                                                         and 186-a in 1994, 7.5% in 1995 and       1995 and 2.5% in 1996.
                                                         2.5% in 1996. Surcharge rates for § 189
                                                         tax are 15% (Aug. 1991 - Dec. 1993),
                                                         10% (Jan. 1994 - May 1995), 7.5% (June
                                                         1995 - May 1996), and 2.5% (June 1996 -
                                                         May 1997).
                                                                                                   17% surcharge also applies on tax
                                                                                                   attributable to MCTD under § 186-e.




Page 128                                                                                                1999 NYS Tax Sourcebook
Table 49: Significant Changes in New York State’s Taxation of Utility Corporations & Other Specified Companies,
1984-1999 (Con’t)
1996                        1997                                             1998                                         1999
                                                                             Rate falls to 3.25% effective
                                                                             October 1, 1998. Rate falls further to
                                                                             2.5% effective January 1, 2000.




                            The surcharge rate is reduced to 0%
                            effective June 1, 1997.




                                                                             Credit equals 50% of incremental costs
                                                                             (capped at $5,000 per vehicle); 60% of
                                                                             the cost of clean-fuel components
                                                                             (capped at $5,000 or $10,000 per vehicle
                                                                             depending on weight); and 50% of the
                                                                             cost of new clean-fuel refueling property.
                                                                             Credit equals 35% of the first $6,000 of
                                                                             qualified wages (maximum of $2,100 per
                                                                             employee).
                            Credit is based upon net revenue loss of
                            the utility associated with the retail sale of
                            low cost power to selected customers.




1999 NYS Tax Sourcebook                                                                                                          Page 129
Table 50: Significant Changes in the Structure of New York State’s Petroleum Business Gross Receipts Tax,
1983-1990
                                    June 30, 1983                           April 1, 1984                           January 1, 1987                       April 1, 1988
                                       through                                through                                  through                              through
Tax Structure Component             March 31, 1984                       December 31, 1986                          March 31, 1988                       August 31, 1990
Gross Receipts
Rate                      3.25% of taxable gross receipts or     Rate decreased to 2.75% or $250,                                                Rate increased in effect between
                          $250, whichever is higher, effective   whichever is higher, effective                                                  7/1/90 and 8/1/90 of 7.2%. Tax
                          July 1, 1983.                          April 1, 1984.                                                                  surcharge also imposed.
                                                                                                                                                 Effective rate is 8.28%.
Modifications to Base     Sections 182-a and 182-b of            Inclusion of businesses that import     Formal registration of petroleum        Federal excise tax on motor fuel
                          Article 9 repealed effective           petroleum, or cause it to be imported   businesses is imposed effective         is no longer excluded from
                          June 30, 1983.                         for their own consumption, effective    January 1, 1987.                        taxable gross receipts effective
                                                                 April 1, 1984.                                                                  April 1, 1988.
                          Article 13-A enacted effective         Excluded from new requirement is        Tax on aviation fuels shifted to the
                          July 1, 1983.                          petroleum brought into the State in     ultimate consumer effective
                                                                 ordinary fuel tanks of motor vehicles   October 1, 1987.
                                                                 effective April 1, 1984.
                                                                 Computation of petroleum
                                                                 “consumed” in the State is revised
                                                                 effective July 1, 1985.
                                                                 Military jet fuel and naphtha and
                                                                 naphtha-based aviation fuel made
                                                                 exempt effective
                                                                 December 29, 1986.




Page 130                                                                                                                                        1999 NYS Tax Sourcebook
Table 51: Significant Changes in New York State’s Petroleum Business Tax, 1990-1999
                                            September 1, 1990 (1)   April 1, 1991       July 1, 1991            January 1, 1992
                                            through                 through             through                 through
                                            March 31, 1991 (2)      June 30, 1991 (2)   December 31, 1991 (3)   May 31, 1994 (3)
Product Bases and Rates
Motor Fuel                                  6.33                    7.59                12.77                   14.84
Automotive Type Diesel Motor Fuel           6.33                    7.59                12.77                   14.84
Railroad Diesel                             6.33                    7.59                12.77                   14.84
Nonautomotive Type Diesel Motor Fuel
   Farm Use                                 5.75                    6.90                6.90                    8.05
   Not-for-Profit Use (4)                   Same as all other       Same as all other   Same as all other       Same as all other
   Manufacturing Use (5)                    Same as all other       Same as all other   Same as all other       Same as all other
   All Other                                5.75                    6.90                12.08                   14.03
Residual Petroleum Product
   Farm Use                                 Same as all other       Same as all other   Same as all other       Same as all other
   Not-for-Profit Use (4)                   Same as all other       Same as all other   Same as all other       Same as all other
   Manufacturing Use (5)                    Same as all other       Same as all other   Same as all other       Same as all other
   All Other                                4.60                    5.52                10.70                   12.42
Aviation Gasoline                           6.33                    7.59                12.77                   14.84
Kero-jet Fuel                               1.90 (6)                1.90 (6)            12.77                   14.84
Natural Gas (7)                             --                      --                  51.18                   --
Electric Utility Credit/Refund
   No. 2 Heating Oil                        3.75                    4.51                4.51                    5.25
   Residual Petroleum Product               3.58                    4.30                4.30                    5.01
   Natural Gas (7)                          --                      --                  51.18                   --
Manufacturing Credit/Reimbursement (8)
   Nonautomotive Diesel Fuel                --                      --                  5.18                    5.98
   Residual Petroleum Product               --                      --                  5.18                    5.98
Commercial Gallonage Credit/Reimbursement
   Nonautomotive Diesel Fuel (9)            --                      --                  --                      –
   Residual Petroleum Product (9)           --                      --                  --                      --
Farm Use Reimbursement
   Motor Fuel                               --                      --                  --                      --




Page 132                                                                                                               1999 NYS Tax Sourcebook
Table 51: Significant Changes in New York State’s Petroleum Business Tax, 1990-1999 (Con’t)
                                            June 1, 1994          September 1, 1994   June 1, 1995          September 1, 1995
                                            through               through             through               through
                                            August 31, 1994 (3)   May 31, 1995 (3)    August 31, 1995 (3)   December 31, 1995 (3)
Product Bases and Rates (Con’t)
Motor Fuel                                  14.51                 14.51               13.87                 13.87
Automotive Type Diesel Motor Fuel           14.51                 14.51               13.87                 13.87
Railroad Diesel                             14.51                 14.51               13.87                 13.87
Nonautomotive Type Diesel Motor Fuel
   Farm Use                                 7.88                  0                   0                     0
   Not-for-Profit Use (4)                   Same as all other     Same as all other   Same as all other     7.53
   Manufacturing Use (5)                    Same as all other     7.88                7.53                  7.53
   All Other                                13.73                 13.73               13.12                 13.12
Residual Petroleum Product
   Farm Use                                 Same as all other     0                   0                     0
   Not-for-Profit Use (4)                   Same as all other     Same as all other   Same as all other     6.02
   Manufacturing Use (5)                    Same as all other     6.30                6.02                  6.02
   All Other                                12.15                 12.15               11.61                 11.61
Aviation Gasoline                           14.51                 14.51               13.87                 5.59
Kero-jet Fuel                               14.51                 14.51               13.87                 5.59
Natural Gas (7)                             --                    --                  --                    --
Electric Utility Credit/Refund
   No. 2 Heating Oil                        5.08                  5.08                4.73                  4.73
   Residual Petroleum Product               4.87                  4.87                4.59                  4.59
   Natural Gas (7)                          --                    --                  --                    --
Manufacturing Credit/Reimbursement (8)
   Nonautomotive Diesel Fuel                5.85                  --                  --                    –
   Residual Petroleum Product               5.85                  --                  --                    --
Commercial Gallonage Credit/Reimbursement
   Nonautomotive Diesel Fuel (9)            --                    2.93                2.80                  2.80
   Residual Petroleum Product (9)           --                    2.93                2.80                  2.80
Farm Use Reimbursement
   Motor Fuel                               --                    14.51               13.87                 13.87




1999 NYS Tax Sourcebook                                                                                                             Page 133
Table 51: Significant Changes in New York State’s Petroleum Business Tax, 1990-1999 (Con’t)
                                            January 1, 1996    June 1, 1996            January 1, 1997    June 1, 1997
                                            through            through                 through            through
                                            May 31, 1996 (3)   December 31, 1996 (3)   May 31, 1997 (3)   December 31, 1997 (10)
Product Bases and Rates (Con’t)
Motor Fuel                                  14.41              13.74                   14.35              14.00
Automotive Type Diesel Motor Fuel           14.41              13.74                   14.35              14.00
Railroad Diesel                             14.41              13.74                   7.28               7.10
Nonautomotive Type Diesel Motor Fuel
   Farm Use                                 0                  0                       0                  0
   Not-for-Profit Use (4)                   0                  0                       0                  0
   Manufacturing Use (5)                    7.85               7.48                    7.79               7.60
   All Other                                13.66              13.02                   13.53              13.20
Residual Petroleum Product
   Farm Use                                 0                  0                       0                  0
   Not-for-Profit Use (4)                   0                  0                       0                  0
   Manufacturing Use (5)                    6.24               5.95                    6.15               6.00
   All Other                                12.05              11.49                   11.89              11.60
Aviation Gasoline                           5.81               5.54                    5.74               5.60
Kero-jet Fuel                               5.81               5.54                    5.74               5.60
Natural Gas (7)                             --                 --                      --                 --
Electric Utility Credit/Refund
   No. 2 Heating Oil                        4.94               4.57                    4.79               4.60
   Residual Petroleum Product               4.79               4.50                    4.71               4.56
   Natural Gas (7)                          --                 --                      --                 --
Manufacturing Credit/Reimbursement (8)
   Nonautomotive Diesel Fuel                --                 --                      --                 --
   Residual Petroleum Product               --                 --                      --                 --
Commercial Gallonage Credit/Reimbursement
   Nonautomotive Diesel Fuel (9)            2.91               2.77                    2.87               5.60
   Residual Petroleum Product (9)           2.91               2.77                    2.87               5.60
Farm Use Reimbursement
   Motor Fuel                               14.41              13.74                   14.35              14.00




Page 134                                                                                                         1999 NYS Tax Sourcebook
Table 51: Significant Changes in New York State’s Petroleum Business Tax, 1990-1999 (Con’t)
                                    September 1, 1990                      April 1, 1991                      July 1, 1991                        January 1, 1992
                                    through                                through                            through                             through
                                    March 31, 1991 (2)                     June 30, 1991 (2)                  December 31, 1991 (3)               May 31, 1994 (3)
Legislative Amendments
                                    Tax restructured from a gross          First indexation of tax rates on   Introduction of 4.5¢/gal.           Annual indexing of rates on 1/1/92.
                                    receipts tax to a cents-per-gallon     4/1/91.                            supplemental tax; applies to all
                                    tax.                                                                      products.




                                    Exempts sales to certain               --                                 Tax rate on kero-jet increased to   Temporary surcharge extended
                                    government organizations,                                                 equal aviation gasoline.            through 5/31/93.
                                    residential heating, kerosene,
                                    bunker fuel, crude oil, and
                                    liquefied petroleum.
                                    Minimum tax of $25 per month           --                                 Introduction of natural gas tax     1/1/93 indexing disallowed until
                                    applies.                                                                  effective for July and August of    1/1/94.
                                                                                                              1991.

                                    Joint administration of Article 13-A   --                                 Tax applied to motor carriers on    1/1/94 indexing disallowed until
                                    with Article 12-A.                                                        fuel purchased out of state.        1/1/95.

                                    Business surcharge is carried          --                                 --                                  –
                                    over to the restructured tax at
                                    15%.
                                    –                                      –                                  –                                   –

                                    --                                     --                                 --                                  --




1999 NYS Tax Sourcebook                                                                                                                                                      Page 135
Table 51: Significant Changes in New York State’s Petroleum Business Tax, 1990-1999 (Con’t)
                                    June 1, 1994                         September 1, 1994                     June 1, 1995                     September 1, 1995
                                    through                              through                               through                          through
                                    August 31, 1994 (3)                  May 31, 1995 (3)                      August 31, 1995 (3)              December 31, 1995 (3)
Legislative Amendments (Con’t)
                                    Surcharge decreases to 12.5%         Manufacturing reimbursement           Surcharge decreases to 7.5% on   Exemption/Reimbursement for not-
                                    and scheduled to decrease further    from supplemental tax converted       6/1/95.                          for-profits on the supplemental tax
                                    to 7.5% (on 6/1/95), 2.5% (on        to an exemption as of 9/1/94.                                          component as of 9/1/95.
                                    6/1/96), and 0% (on 6/1/97).




                                    Indexing of rates disallowed until   Full exemption or reimbursement       --                               Tax rate on kero-jet and aviation gas
                                    1/1/96 when change may not be        of tax on farm use from the base                                       decreases from 13.87¢ to 5.59¢ per
                                    more than +/- 5%.                    tax, supplemental tax and                                              gallon effective 9/1/95.
                                                                         surcharge as of 9/1/94.

                                    --                                   A purchaser of motor fuel using       --                               Minimum tax of $25 per month is
                                                                         the fuel for farm production is                                        reduced to $2 per month for aviation
                                                                         eligible for reimbursement of the                                      fuel businesses.
                                                                         tax.
                                    --                                   Reimbursement of tax paid on in-      --                               –
                                                                         state purchases of fuel used for
                                                                         commercial fishing as of 9/1/94.
                                    –                                    Credit for commercial gallonage       --                               –
                                                                         on 1/2 the supplemental tax
                                                                         component.
                                    –                                    Refund provided for bad debt as       --                               –
                                                                         of 9/1/94.
                                    –                                    Exemption/Reimbursement for           --                               --
                                                                         not-for-profits on the supplemental
                                                                         tax component as of 9/1/95.




Page 136                                                                                                                                             1999 NYS Tax Sourcebook
Table 51: Significant Changes in New York State’s Petroleum Business Tax, 1990-1999 (Con’t)
                                    January 1, 1996                        June 1, 1996                     January 1, 1997                       June 1, 1997
                                    through                                through                          through                               through
                                    May 31, 1996 (3)                       December 31, 1996 (3)            May 31, 1997 (3)(9)                   December 31, 1997 (9)
Legislative Amendments (Con’t)
                                    Exemption/Reimbursement for            Surcharge decreases to 2.5% on   Rate reduction for diesel fuel used   Surcharge eliminated 6/1/97.
                                    not-for-profits for the full PBT tax   6/1/96.                          for railroad purposes; decreases
                                    as of 1/1/96 when fuel is used for                                      from 14.35¢ to 7.28¢ per gallon
                                    their exclusive use and                                                 effective 1/1/97.
                                    consumption, used on their
                                    premises, and used in furtherance
                                    of their exempt purposes.
                                    --                                     --                               --                                    –




                                    Annual indexing of rates on            --                               Annual indexing of rates on           –
                                    1/1/96.                                                                 1/1/97.


                                    –                                      –                                –                                     –


                                    –                                      –                                Commercial gallonage exempt           –
                                                                                                            from full supplemental tax rate
                                                                                                            effective 3/1/97.
                                    –                                      –                                –                                     –

                                    –                                      –                                –                                     –




1999 NYS Tax Sourcebook                                                                                                                                                     Page 137
Table 51: Significant Changes in New York State’s Petroleum Business Tax, 1990-1999 (Con’t)
                                            January 1, 1998          January 1, 1999          April 1, 1999
                                            through                  through                  through
                                            December 31, 1998 (10)   March 31, 1999 (10)      December 31, 1999 (10)
Product Bases and Rates (Con’t)
Motor Fuel                                  14.60                    14.00                    14.00
Automotive Type Diesel Motor Fuel           13.85                    13.25                    12.25
Railroad Diesel                             7.50                     7.10                     7.10
Nonautomotive Type Diesel Motor Fuel
   Farm Use                                 0                        0                        0
   Not-for-Profit Use (4)                   0                        0                        0
   Manufacturing Use (5)                    0                        0                        0
   All Other                                13.70                    13.20                    13.20
Residual Petroleum Product
   Farm Use                                 0                        0                        0
   Not-for-Profit Use (4)                   0                        0                        0
   Manufacturing Use (5)                    0                        0                        0
   All Other                                12.10                    11.60                    11.60
Aviation Gasoline                           5.80                     5.60                     5.60
Kero-jet Fuel                               5.80                     5.60                     5.60
Natural Gas (7)                             --                       --                       --
Electric Utility Credit/Refund
   No. 2 Heating Oil                        4.83                     4.59                     5.09
   Residual Petroleum Product               4.78                     4.55                     5.05
   Natural Gas (7)                          --                       --                       --
Manufacturing Credit/Reimbursement (8)
   Nonautomotive Diesel Fuel                --                       --                       –
   Residual Petroleum Product               --                       --                       --
Commercial Gallonage Credit/Reimbursement
   Nonautomotive Diesel Fuel (9)            5.80                     5.60                     5.60
   Residual Petroleum Product (9)           5.80                     5.60                     5.60
Farm Use Reimbursement
   Motor Fuel                               14.60                    14.00                    14.00




Page 138                                                                                                      1999 NYS Tax Sourcebook
Table 51: Significant Changes in New York State’s Petroleum Business Tax, 1990-1999 (Con’t)
                                                       January 1, 1998                                      January 1, 1999                                     April 1, 1999
                                                       through                                              through                                             through
                                                       December 31, 1998                                    March 31, 1999                                      December 31, 1999
Legislative Amendments (Con’t)
                                                       Manufacturing gallonage is fully exempt from                                                             Utility credit for non-automotive diesel fuel increased
                                                       PBT – effective 1/1/98.                                                                                  from 4.59¢ to 5.09¢ per gallon. Credit for residual
                                                                                                                                                                petroleum product increased from 4.55¢ to 5.05¢
                                                                                                                                                                per gallon effective 4/1/99.




                                                       Rate reduction for automotive diesel fuel. PBT                                                           Rate reduction for automotive diesel fuel. PBT rate
                                                       rate is reduced from 14.6¢ to 13.85¢ per gallon                                                          is reduced from 13.25¢ to 12.25¢ per gallon
                                                       effective 1/1/98.                                                                                        effective 4/1/99.


                                                       Annual indexing of rates on 1//198.                  Annual indexing of rates on 1/1/99.




(1) September 1, 1990 Article 13-A business privilege tax was amended by altering the tax base from a gross receipts tax to a cent-per-gallon tax based on the type of product.
(2) Rates are an aggregate of the base tax and the applicable surcharge.
(3) Rates are an aggregate of the base tax, supplemental tax and surcharge.
(4) Exempt Organizations defined as those covered by Section 1116(a)(4) or (5) are allowed an exemption from the supplemental tax effective September 1, 1995 and for the entire tax effective January 1, 1996.
(5) Manufacturing use became fully exempt from PBT effective January 1, 1998.
(6) Kero-jet rate does not include the 15% surcharge.
(7) Natural gas is measured as cents-per-thousand cubic feet.
(8) Manufacturer’s credit/reimbursement became a partial up-front exemption effective September 1, 1994.
(9) Credit reimbursement rate increases to 5.74¢ on March 1, 1997.
(10) Rates are an aggregate of base tax and supplemental tax.




1999 NYS Tax Sourcebook                                                                                                                                                                                   Page 139
 Sales and Compensating Use Tax


                          Forty-five states impose a sales tax. Apart from a short-lived emergency
                          tax on retail sales in 1933-34, New York had no general State sales tax
                          until 1965. At that time, Article 28 imposed the State sales and use
                          taxes, and provided authority for similar taxes to counties and cities
                          choosing to adopt them (although some counties and cities already levied
                          their own sales taxes). The State collects the local portion of the sales
                          tax and distributes net collections to localities.

                          The current statewide State tax rate equals 4 percent. Many cities, and
Tax Rates                 most counties, impose an additional tax of 3 percent for a combined State
                          and local rate of 7 percent. Delaware and Westchester counties impose
                          county sales tax rates below 3 percent. Some 23 counties and five cities
                          are authorized to impose tax at additional rates, from 1/4 percent to 1 1/4
                          percent. The five cities are Mt. Vernon, New Rochelle, Rome,
                          White Plains and Yonkers. The State imposes a 4 percent tax in
                          New York City for the benefit of the Municipal Assistance Corporation.

                          The State also imposes the Metropolitan Commuter Transportation
                          District tax of 0.25 percent in 12 downstate counties. Table 53 shows
                          combined State and local sales tax rates in each county and in cities
                          which impose sales and use taxes.

                          An additional 5 percent State tax applies to information and
                          entertainment services furnished by telephone (e.g., “900” numbers) and
                          received exclusively aurally. An additional 5 percent tax also applies to
                          charges for passenger car rentals. These taxes are in addition to the
                          regular State and local sales tax on such services.

                          The sales tax applies to retail sales of tangible personal property (unless
Tax Base and              specifically exempt) and to certain services. A compensating use tax
Exemptions                applies to the use within the State of tangible personal property and
                          services purchased outside the State. Sales and use taxes do not apply to
                          sales or rentals of real property. The Tax Law also exempts purchases
                          for resale, most sales to or by federal and New York State governments,
                          charitable organizations and certain other exempt organizations, sales of

1999 NYS Tax Sourcebook                                                                       Page 141
                   most food for home consumption, and sales of both prescription and
                   nonprescription medicines. Most clothing purchases were exempted
                   from State and most local sales taxes for two separate weeks in both
                   1997 and 1998, and one week in January 1999. Additional tax free
                   weeks for clothing and footwear costing less than $500 will take place
                   September 1, 1999 and January 2000. A permanent exemption for
                   clothing and footwear costing less than $110 takes effect on
                   March 1, 2000. Also, the sales tax does not apply to most services.
                   Examples of services not subject to tax include medical care,
                   transportation, education, and personal and professional services.

                   To stimulate economic development, New York State and its localities
Economic           exempt machinery and equipment used directly and predominantly in
Development        manufacturing property for sale. The State and most localities also
Exemptions and     exempt tools and equipment, parts, ingredients and supplies, fuels and
                   utility services used in manufacturing property for sale.
Credits
                   An exemption also applies to tangible personal property used directly in
                   experimental research and development activity. Also, gas, electricity,
                   refrigeration and steam (and related services) used or consumed directly
                   and exclusively for research and development is exempt from sales and
                   use taxes.

                   The tax does not apply to purchases of materials incorporated into
                   buildings owned by an industrial development agency (IDA). Recipients
                   of IDA funding may also claim exemption for certain other purchases
                   made as agents of an IDA.

                   In addition, the law permits a refund or credit for sales and use taxes paid
                   on materials used to expand, construct or restore certain industrial and
                   commercial projects within designated economic development zones.

                   Every person who sells tangible personal property or taxable services
Registration and   must register with the Department before commencing business.
Payment            Currently, approximately 560,000 vendors are registered.

                   Generally, sales tax vendors must file quarterly tax returns with the
                   Department. However, vendors whose taxable receipts total $300,000 or
                   more in any quarter must also file monthly returns by the 20th day of the
                   following month. Vendors who remit tax of $3,000 or less per year may
                   file an annual return.

Page 142                                                                 1999 NYS Tax Sourcebook
                          Sales tax vendors with annual sales and compensating use tax liability
                          exceeding $1 million, or with annual liability for prepaid sales tax on
                          motor fuel and diesel motor fuel exceeding $5 million, must make
                          monthly partial payments of tax by electronic funds transfer (EFT) or
                          certified check. They must pay the balance of the tax liability with the
                          regular filing of the sales tax return. Other monthly filers may participate
                          in the EFT program on a voluntary basis. Licensed cigarette stamping
                          agents are required to prepay sales tax due on retail cigarette sales when
                          they purchase State excise tax stamps.

                          Vendors who timely file their quarterly sales tax return and remit full
                          payment of tax due with the return may retain, as compensation for
                          expenses, 3.5 percent of the amount of State sales tax collected, up to
                          $150 per quarter.




1999 NYS Tax Sourcebook                                                                       Page 143
 Table 52: New York State and                                                            Additional                                    Maximum
 Local Sales and Use Tax Rates,                                     State                  MCTD                 Top Local                   State
 Calendar Years Ending          Year                                Rate                   Tax (1)                   Rate           & Local Rate
 1933-1999                      1933                               1.00%                         --                     --                 1.00%
                                1934-40                                 --                       --                 2.00%                  2.00%
                                1941-44                                 --                       --                 1.00%                  1.00%
                                1945-50                                 --                       --                 2.00%                  2.00%
                                1951-64                                 --                       --                 3.00%                  3.00%
                                1965-68                            2.00%                         --                 3.00%                  5.00%
                                1969-70                            3.00%                         --                 3.00%                  6.00%
                                1971-73                            4.00%                         --                 3.00%                  7.00%
                                1974-80                            4.00%                         --                 4.00%                  8.00%
                                1981-90                            4.00%                    0.25%                   4.00%                  8.25%
                                1991-Present                       4.00%                    0.25%                   4.25%                  8.50%
                                (1) The Metropolitan Commuter Transportation District (MCTD) includes 12 counties: New York, Bronx, Kings,
                                Queens, Richmond, Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk, and Westchester.
                                Source: NYS Department of Taxation and Finance, Office of Tax Policy Analysis.




Page 144                                                                                                          1999 NYS Tax Sourcebook
 Table 53: New York State and Local Sales Tax Rates, by Community, as of January 1, 1999
                                                                                  State
                                                               The State sales tax rate is 4% in each county
                                                                                Counties
                                            The following shows the combined State and county sales tax rates currently in effect
 County                                          Rate         County                                       Rate          County                              Rate
 Albany                                        8.00%          Herkimer                                   8.00%           Richmond (1)                       8.25%
 Allegany                                      8.00%          Jefferson                                  7.00%           Rockland (1)                       7.25%
 Bronx (1)                                     8.25%          Kings (1)                                  8.25%           St. Lawrence                       7.00%
 Broome                                        8.00%          Lewis                                      7.00%           Saratoga                           7.00%
 Cattaraugus                                   8.00%          Livingston                                 7.00%           Schenectady                        7.50%
 Cayuga                                        8.00%          Madison                                    7.00%           Schoharie                          7.00%
 Chautauqua                                    7.00%          Monroe                                     8.00%           Schuyler                           7.00%
 Chemung                                       7.00%          Montgomery                                 7.00%           Seneca                             7.00%
 Chenango                                      7.00%          Nassau (1)                                 8.50%           Steuben                            8.00%
 Clinton                                       7.00%          New York (1)                               8.25%           Suffolk (1)                        8.25%
 Columbia                                      8.00%          Niagara                                    7.00%           Sullivan                           7.00%
 Cortland                                      8.00%          Oneida                                     8.00%           Tioga                              7.50%
 Delaware                                      6.00%          Onondaga                                   7.00%           Tompkins                           8.00%
 Dutchess (1)                                  7.25%          Ontario                                    7.00%           Ulster                             7.75%
 Erie                                          8.00%          Orange (1)                                 7.25%           Warren                             7.00%
 Essex                                         7.00%          Orleans                                    8.00%           Washington                         7.00%
 Franklin                                      7.00%          Oswego                                     7.00%           Wayne                              7.00%
 Fulton                                        7.00%          Otsego                                     7.00%           Westchester (1)                    6.75%
 Genesee                                       8.00%          Putnam (1)                                 7.25%           Wyoming                            8.00%
 Greene                                        8.00%          Queens (1)                                 8.25%           Yates                              7.00%
 Hamilton                                      7.00%          Rensselaer                                 8.00%
                                                                                Cities (2)
                                        The following shows the combined State, County and City sales tax rates currently in effect:
 City / County                                   Rate         City / County                                Rate          City / County                       Rate
 Auburn / Cayuga                               8.00%          Hornell / Steuben                          8.00%           Olean / Cattaraugus                8.00%
 Batavia / Genesee                             8.00%          Ithaca / Tompkins                          8.00%           Oneida / Madison                   7.00%
 Canandaigua / Ontario                         7.00%          Johnstown / Fulton                         7.00%           Oswego / Oswego                    7.00%
 Corning / Steuben                             8.00%          Mount Vernon / Westchester (1)             8.25%           Rome / Oneida                      8.25%
 Fulton / Oswego                               7.00%          New York City (1)(3)                       8.25%           Salamanca / Cattaraugus            8.00%
 Geneva / Ontario                              7.00%          New Rochelle / Westchester (1)             8.25%           Sherrill / Oneida                  8.00%
 Glens Falls / Warren                          7.00%          Norwich / Chenango                         7.00%           Utica / Oneida                     8.00%
 Gloversville / Fulton                          7.00%         Ogdensburg / St. Lawrence                  7.00%           White Plains / Westchester (1)     7.75%
                                                                                                                         Yonkers / Westchester (1)          8.25%
 (1) Rate includes 0.25% additional tax for the Metropolitan Commuter Transportation District (MCTD).
 (2) Total combined rates shown. These do not reflect the amount that the city actually retains.
 (3) New York City includes the counties of Bronx, Kings, New York, Queens and Richmond.
 Source: NYS Department of Taxation and Finance, Office of Tax Policy Analysis.




1999 NYS Tax Sourcebook                                                                                                                                   Page 145
Table 54: Significant Changes in New York State’s Sales and Use Tax Structure, 1965-1999
Tax Structure Component         1965-1974                            1975-1979                           1980-1984                             1985-1989
State Tax Rate
                                In 1969, tax rate increased from 2   4%
                                to 3%. In 1971, the tax rate
                                increased to 4%.
Exemptions & Exclusions Added
                                                                     Medical equipment and supplies.     Certain municipal trash removal       Race horses purchased in claiming
                                                                                                         services.                             races.
                                                                     Residential energy.                 Certain parts, tools and supplies     Race horses purchased out-of-
                                                                                                         used in production.                   state but raced in New York.



                                                                     Commercial aircraft.                                                      Training and maintaining race
                                                                                                                                               horses.
                                                                                                                                               Commercial fishing vessels.



                                                                                                                                               Tractor-trailer combinations.



                                                                                                                                               Building materials used in EDZ.
                                                                                                                                               Promotional materials printed in
                                                                                                                                               New York for out-of-state
                                                                                                                                               distribution.
Base Expansion
                                                                                                                                               Promotional materials distributed
                                                                                                                                               into New York from outside the
                                                                                                                                               State.
                                                                                                                                               Extended the definition of “vendor”
                                                                                                                                               to encompass certain out-of-state
                                                                                                                                               businesses making sales into
                                                                                                                                               New York.




Filing Requirements
                                                                     Established the requirement for                                           Gasoline importers and diesel fuel
                                                                     certain vendors to “prepay” March                                         distributors required to prepay
                                                                     sales tax collections.                                                    sales tax monthly.




Page 146                                                                                                                                     1999 NYS Tax Sourcebook
Table 54: Significant Changes in New York State’s Sales and Use Tax Structure, 1965-1998 (Con’t)
1990                                      1991                                 1992                              1993   1994
State Tax Rate (Con’t)




Exemptions & Exclusions Added (Con’t)
                                                                               Alternative fuel vehicles.               Electronically transmitted
                                                                                                                        newspapers and periodicals.
                                                                                                                        Sales of registered racehorses.




Base Expansion (Con’t)
Protective and detective services.        Pre-written computer software.



Parking services.                         Telephone answering services.




Long-term building maintenance.           Transportation charges included as
                                          part of the taxable receipt.
Interior decorating and design.
Accelerated tax payments on auto, boat,
and aircraft leases.
“900" numbers and other telephone
information and entertainment services.
Filing Requirements (Con’t)
Eliminated the requirement for certain                                         Required tax payments by                 Electronic funds transfer
vendors to “prepay” March sales tax                                            electronic funds transfer for            requirement extended to vendors
collections.                                                                   vendors with annual sales tax            with annual sales tax liability
                                                                               liability exceeding $5 million.          exceeding $4 million.
                                                                                                                        Vendor allowance provided equal
                                                                                                                        to 1.5% of State sales tax owed up
                                                                                                                        to $100 per quarter.




1999 NYS Tax Sourcebook                                                                                                                      Page 147
Table 54: Significant Changes in New York State’s Sales and Use Tax Structure, 1965-1998 (Con’t)
1995                                        1996   1997                                 1998                                     1999
State Tax Rate (Con’t)




Exemptions & Exclusions Added (Con’t)
Dues for homeowner associations                    Printed promotional materials        Certain clothing purchases exempt        Certain clothing purchases made
(effective September 1).                           distributed by mail.                 for 2 separate weeks.                    exempt effective March 1, 2000.
                                                   Certain clothing purchases exempt    Computer hardware used in the
                                                   for 2 separate weeks.                design and development of
                                                                                        computer software, effective
                                                                                        June 1.
                                                   Certain coin-operated machines,      Certain college textbooks, effective
                                                   effective December 1.                June 1.
                                                                                        Coin-operated telephone
                                                                                        exemption increased to 25 cents,
                                                                                        effective September 1.
                                                                                        Expanded the exemption for
                                                                                        telephone central office equipment,
                                                                                        effective September 1.




Base Expansion (Con’t)




Filing Requirements (Con’t)
Electronic funds transfer requirement              EFT hardship provided for building   Annual filing threshold increased        Vendor allowance increased to
extended to vendors with annual sales tax          materials suppliers.                 from $250 to $3,000.                     3.5% of State sales tax owed up to
liability exceeding $1 million.                                                                                                  $150 per quarter.




Page 148                                                                                                                       1999 NYS Tax Sourcebook
 Excise and User Taxes and Fees


                          New York State imposes various excise and user taxes. These include
                          the cigarette and tobacco tax (Article 20), the motor fuel excise tax
                          (Article 12-A), a petroleum testing fee (also Article 12-A), the alcoholic
                          beverage tax (Article 18), the highway use tax (Article 21), the fuel use
                          tax (Article 21-A), the beverage container tax (Article 18-A), the
                          passenger car rental tax (Article 28-A), and the boxing and wrestling
                          exhibitions tax (Article 19).

                          The Department of Taxation and Finance also administers other taxes
                          and fees. These include the parimutuel and horse racing taxes and the
                          hazardous waste fees contained in Article 27 of the Environmental
                          Conservation Law.

                          New York collects the cigarette tax (Article 20) through the sale of tax
Cigarette and             stamps to licensed agents. Agents must affix the stamps to each package
Tobacco Products          of cigarettes before sale in New York State. The tax rate equals 56 cents
Taxes and Fees            per pack of 20 cigarettes. New York City’s separate 8 cents per pack tax
                          brings the combined per pack tax rate in the City to 64 cents.

                          Distributors of other tobacco products such as cigars, snuff, pipe and
                          chewing tobacco pay a 20 percent excise tax on the wholesale price.
                          Distributors include persons importing, manufacturing or possessing for
                          sale such products in New York.

                          Sellers of cigarettes and other tobacco products must pay an annual $100
                          registration fee for every location in the State where they sell product at
                          retail, and $25 yearly registration fees for every vending machine
                          handling these products. Vendors must also display valid permits.

                          Article 12-A imposes an 8 cents per gallon tax on diesel motor fuel at the
Motor Fuel Taxes          point of first taxable sale or use in New York. An 8 cents per gallon tax
                          also applies to other motor fuel, including gasoline, upon first import into
                          or production within New York.


1999 NYS Tax Sourcebook                                                                       Page 149
                           The tax has three rate components, as detailed below:

Table 55: Motor Fuel Tax   Regular Tax                                                             4 cents
Rate Components Per        Additional Tax                                                          3 cents
Gallon                     Supplemental Tax                                                         1 cent
                           Total                                                                   8 cents



                           Retail sales of aviation gasoline used by aircraft receive an up-front
                           exemption from the motor fuel excise tax. The 8 cents per gallon first
                           importation tax on aviation gasoline is retained to ensure compliance.
                           However, distributors may sell aviation gasoline tax-free to registered
                           retail sellers of aviation gasoline. The distributor may then obtain a
                           credit or refund of the motor fuel excise tax paid on aviation gasoline.

                           The law requires the pass-through of these taxes to consumers. It also
                           exempts from tax purchases by federal, New York State and local
                           government agencies.

                           An exporter of motor fuel must be registered as a licensed distributor in
                           the jurisdiction to which the fuel is exported in order to qualify for an
                           export credit or refund.

                           The motor fuel tax usually does not apply to fuel used for non-highway
                           purposes. For example, fuel on which the tax is already paid when it is
                           used exclusively to operate road building machinery, for farming or
                           commercial marine purposes, or in vehicles operated on rails or tracks, is
                           eligible for a refund.

                           Certain omnibus carriers engaged in local transit service and nonpublic
                           school operators in the State may claim full refund of motor fuel and
                           diesel fuel taxes paid. The law allows partial refunds of 3 cents per
                           gallon of these automotive fuel taxes paid by operators of other private
                           buses and taxicabs.

Dedication of Revenue      Various portions of motor fuel tax collections are dedicated to certain
                           highway expenditure funds. Receipts attributable to one and
                           three-fourths cents of the tax on each gallon of gasoline and diesel fuel
                           sold in the State are earmarked equally to the Emergency Highway
                           Reconditioning and Preservation Fund and the Emergency Highway
                           Construction and Reconstruction Fund. Also, one half of the entire

Page 150                                                                         1999 NYS Tax Sourcebook
                           gasoline tax is deposited into the Dedicated Highway and Bridge Trust
                           Fund, established to help finance the reconstruction, replacement,
                           reconditioning and preservation of the State’s highways and bridges.

                           A regulatory fee of one half mill (0.05 cents) per gallon applies to motor
Petroleum Testing          fuel (gasoline and other nondiesel automotive fuels) imported, sold or
Fee                        manufactured within New York. The distributor may not pass this fee on
                           to the consumer and the consumer cannot obtain a refund for off-
                           highway use. The fee finances petroleum testing to protect the quality
                           standards of motor fuel supplies.

                           The alcoholic beverage tax (Article 18) imposes liquor, beer, wine and
Alcoholic Beverage         specialty beverages taxes at various rates upon registered distributors and
Tax                        noncommercial importers of alcoholic beverages. The table below
                           shows 1999 tax rates for different beverages:

Table 56: Alcoholic        Alcoholic Beverages                                               Rate Per Liter   Rate Per Gallon
Beverage Tax Rates, 1999   Liquors (Over 24% Alcohol)                                                $1.70             $6.43
                           Liquors (2% - 24% Alcohol)                                              67 cents            $2.53
                           Beer                                                                                 13.5 cents (1)
                           Still Wine and Wine Coolers                                                           18.93 cents
                           Sparkling Wine (Carbonated)                                                           18.93 cents
                           Sparkling Wine (Natural)                                                              18.93 cents
                           Cider Over 3.2% Alcohol (Still or Carbonated)                                           3.79 cents
                           (1) Scheduled to decrease to 12.5 cents per gallon effective April 1, 2001.



                           No tax applies to the first 100,000 barrels of beer brewed and sold in
                           New York each year by brewers with headquarters in New York.
                           Effective March 1, 2001, the exemption applies to the first 200,000
                           barrels of beer brewed and sold in New York.

                           The Tax Law imposes three separate highway and fuel use taxes, as
Highway/Fuel Use           described below. Exemptions from tax include motor vehicles owned
Taxes                      and operated by governmental entities, fire companies and farmers. It
                           also exempts vehicles used exclusively to transport household goods.

Truck Mileage Tax          The truck mileage tax (TMT) applies to any motor vehicle with a gross
                           weight over 18,000 pounds, or where elected, the tax applies to trucks
                           with an unloaded weight of over 8,000 pounds and tractors with an
                           unloaded weight in excess of 4,000 pounds. Rates increase according to
                           vehicle weight, and apply to miles traveled on public highways. In
                           addition, a supplemental tax applies which effectively doubles the tax

1999 NYS Tax Sourcebook                                                                                           Page 151
                      rate. The truck mileage tax does not apply to mileage on the toll-paid
                      portion of the New York State Thruway. The supplemental rate portion
                      of the TMT was reduced by 50 percent effective January 1, 1999.

Highway Use Permits   Highway use permits, issued for not more than three years, identify
                      vehicles subject to the highway use tax. Permit fees equal $15 per truck,
                      tractor or taxable bus. Each trailer used to haul automotive fuel requires
                      a $5 permit. Buses not subject to fuel use tax and other trailers do not
                      need a permit. A special $25 single-trip permit, available to a carrier no
                      more than 10 times per year, exempts a carrier from truck mileage and
                      fuel use taxes for a single 72-hour period.

                      New York conforms to the International Fuel Tax Agreement (IFTA).
                      New York-based carriers operating in more than one IFTA jurisdiction
                      must obtain an IFTA license and two decals (costing $4 each) for each
                      qualified vehicle.

Fuel Use Tax          The fuel use tax (Article 21-A) applies to fuel bought outside New York
                      State by truck, tractor and bus carriers, but used while traveling on
                      New York highways. It reduces opportunities for such carriers to buy
                      motor fuel outside New York to avoid State and local taxes. The fuel use
                      tax consists of two components: the motor fuel component and the sales
                      tax component. Carriers also report the petroleum business tax on fuel
                      used, but not purchased, in the State on the same return as the fuel use
                      tax. Carriers may claim credits or refunds for New York taxes on fuel
                      used outside the State.

                      New York’s fuel use tax provisions also conform to those of the
                      International Fuel Tax Agreement (IFTA). The minimum gross vehicle
                      weight of vehicles required to pay the fuel use tax is 26,000 pounds. A
                      special $25 single fuel use tax trip permit is available which exempts an
                      IFTA licensed carrier from the New York fuel use taxes for a single 72
                      hour period for that vehicle.

Pari-Mutuel and       The Racing, Pari-mutuel Wagering and Breeding Law imposes a tax on
                      pari-mutuel wagering at horse racetracks and at off-track betting (OTB)
Horse Racing Taxes    parlors throughout the State for the privilege of conducting pari-mutuel
                      wagering on horse races. The Department of Taxation and Finance
                      administers this tax. Each racing association or corporation pays to the
                      State a portion of the commission withheld from wagering pools. Tax


Page 152                                                                   1999 NYS Tax Sourcebook
                          rates vary by type of race and wager. State horse racing revenues also
                          include the racing admission tax, breakage, nonprofit racing association
                          franchise fees, and revenue from uncashed tickets.

                          Legislation enacted in 1995 reduced tax rates on certain wagering pools
                          and extended simulcasting provisions. The tax rate reductions vary by
                          track and type of racing. Certain reductions are permanent while others
                          will expire in July 2002.

                          The beverage container tax (Article 18-A) imposes a nonrefundable one
Beverage Container        cent tax on the initial sale in New York of non-refillable carbonated soft
Tax                       drink, mineral water or soda water, in containers holding less than 3.8
                          liters or one gallon. The first seller of the filled container within the
                          State must pay the tax. Thus, the taxpayer may be a manufacturer,
                          distributor or dealer importing from outside of the State. No tax applies
                          to containers sold for immediate export and use outside New York. The
                          tax was repealed effective October 1, 1998.

                          The passenger car rental tax is a sales tax imposed under Article 28-A,
Passenger Car             which applies to receipts from every rental or use of passenger cars, at a
Rental Tax                5 percent rate. The law defines passenger cars as motor vehicles
                          weighing 9,000 pounds or less with seating capacity for 9 or fewer
                          persons, excluding motorcycles. The tax does not apply to leases for
                          terms of one year or longer. This sales and use tax applies in addition to
                          existing State and local sales and use taxes on rentals.

                          Article 19 of the Tax Law imposes a boxing and wrestling exhibitions
Boxing and Wrestling      tax on the total gross receipts of promoters of professional or amateur
Exhibitions Tax           boxing, sparring and wrestling matches. The tax rate equals 5.5 percent
                          of gross receipts. Gross receipts include not only receipts from
                          admissions charges but also receipts from broadcasting and movie rights.
                          However, live broadcast rights and closed-circuit broadcast rights of
                          matches and events held in New York are included in gross receipts
                          subject to tax only to the extent that they relate to transmissions and
                          presentations received or exhibited in the State. Effective
                          October 1, 1999, the tax rate decreases to 3 percent. Each tax is capped
                          at $50,000 per match or exhibition resulting in a combined maximum
                          imposition of $100,000.

                          Exemptions from the tax apply in the following situations: gross receipts
                          from certain boxing, sparring or wrestling matches or exhibitions

1999 NYS Tax Sourcebook                                                                      Page 153
                  conducted by the New York State National Guard or naval militia (all of
                  the contestants must be members of the active militia); gross receipts
                  from any match or exhibition of amateurs sponsored by any university,
                  college, school or other institution of learning, recognized by the Regents
                  of New York State; and gross receipts from matches or exhibitions of
                  amateurs sponsored by the U.S. Amateur Boxing Federation or its local
                  affiliates of the American Olympic Association.

                  Since 1988, the Department of Taxation and Finance has been
                  responsible for administering this tax. Prior to that time, administration
                  rested with the State Athletic Commission. The Tax Law provides that
                  employees and officers of the State Athletic Commission shall act as
                  agents of the Department in collecting the tax.

                  Article 27 of the Environmental Conservation Law imposes special
Hazardous Waste   assessments on persons involved in the production, treatment, or disposal
Fees              of hazardous waste. The Tax Department co-administers this fee along
                  with the Department of Environmental Conservation. Every person
                  engaged within New York in the generation of hazardous waste is subject
                  to the special assessments. Persons holding permits or who are required
                  to hold permits, for the storage, treatment or disposal of hazardous
                  wastes are subject to a comparable hazardous waste disposal special
                  assessments.

                  The term “hazardous waste” means any waste (or combination of wastes)
                  which, because of its quantity, concentration, or physical, chemical or
                  infectious characteristics may 1) cause, or significantly contribute to, an
                  increase in mortality or an increase in serious irreversible or
                  incapacitating reversible illness, or 2) pose a substantial present or
                  potential hazard to human health or the environment when improperly
                  treated, stored, transported, disposed, or otherwise managed.

                  The special assessments are imposed on the tonnage of hazardous waste
                  produced, disposed of, or treated. The assessments vary by method of
                  treatment or disposal of waste and its treatment, ranging between $2 to
                  $27 per ton.

                  No special assessments are imposed on the resource recovery of any
                  hazardous waste. However, materials remaining from resource recovery
                  which are hazardous wastes and that are subsequently disposed of,


Page 154                                                                1999 NYS Tax Sourcebook
                          treated or incinerated, are subject to the special assessments. “Resource
                          recovery” does not include the removal of water from a hazardous waste.




1999 NYS Tax Sourcebook                                                                     Page 155
 Table 57: History of New York                                    Motor Fuel                Max. Combined
 State and Local Taxes Imposed                                Excise Tax (1)                  State & Local                         Petroleum
 on Gasoline, 1929-1999        Years                       (Cents per Gallon)           Sales Tax (Percent)                   Business Tax (2)
                                1929-31                                     2                            --
                                1932                                        3                            --                                   --
                                1933                                        3                        1.00%                                    --
                                1934-36                                     3                        2.00%                                    --
                                1937-40                                     4                        2.00%                                    --
                                1941-44                                     4                        1.00%                                    --
                                1945-50                                     4                        2.00%                                    --
                                1951-55                                     4                        3.00%                                    --
                                1956-58                                     6                        3.00%                                    --
                                1959-64                                     7                        3.00%                                    --
                                1965-68                                     7                        5.00%                                    --
                                1969-70                                     7                        6.00%                                    --
                                1971                                        7                        7.00%                                    --
                                1972-73                                     8                        7.00%                                    --
                                1974-80                                     8                        8.00%                                    --
                                1981-82                                     8                        8.25%                                    --
                                1983                                        8                        8.25%             3.25% of gross receipts
                                1984-90                                     8                        8.25%             2.75% of gross receipts
                                1990                                        8                        8.25%           6.33¢ / gal (eff. 09/01/90)
                                1991                                        8                        8.50%          12.77¢ / gal (eff. 07/01/91)
                                1992-93                                     8                        8.50%          14.84¢ / gal (eff. 01/01/92)
                                1994                                        8                        8.50%          14.51¢ / gal (eff. 06/01/94)
                                1995                                        8                        8.50%          13.87¢ / gal (eff. 06/01/95)
                                1996                                        8                        8.50%          14.41¢ / gal (eff. 01/01/96)
                                1997                                        8                        8.50%          14.35¢ / gal (eff. 01/01/97)
                                1998                                        8                        8.50%           14.6¢ / gal (eff. 01/01/98)
                                1999                                        8                        8.50%           14.0¢ / gal (eff. 01/01/99)
                                (1) Article 12-A
                                (2) Article 13-A
                                Source: NYS Department of Taxation and Finance, Office of Tax Policy Analysis.




Page 156                                                                                                         1999 NYS Tax Sourcebook
 Table 58: History of New York                                                                 Gasoline                        Diesel
 State Motor Fuel Excise Tax     Years                                              (Cents Per Gallon)             (Cents Per Gallon)
 (Article 12-A) Rates, 1929-1999 1929-31                                                               2                            --
                                  1932-35                                                              3                            --
                                  1936                                                                 3                            2
                                  1937-46                                                              4                            2
                                  1947-50                                                              4                            4
                                  1951-55                                                              4                            6
                                  1956-58                                                              6                            6
                                  1959-71                                                              7                            9
                                  1972-95                                                              8                           10
                                  1996-Present                                                         8                            8
                                  Source: NYS Department of Taxation and Finance, Office of Tax Policy Analysis.




1999 NYS Tax Sourcebook                                                                                                     Page 157
 Table 59: History of New York State Alcoholic Beverage Tax Rates, 1933-1999
 Effective Date(s)         Beer                Wine                                                                        Distilled Spirits
 1933-8/30/68             3 1/3¢ / gal         Still Wine:                                                     10¢ / gal   24% Alcohol or Less:      50¢ / gal
                                               Cider Over 3.2% Alcohol:                                       1.5¢ / gal   All Other Liquors:      $1.50 / gal
                                               Artificially Carbonated Sparkling Wine:                        20¢ / gal
                                               Naturally Sparkling Cider Over 3.2% Alcohol:                   1.5¢ / gal
                                               Naturally Sparkling Wine:                                      40¢ / gal
                                               Artificially Carbonated Sparkling Cider Over 3.2% Alcohol:     1.5¢ / gal
 9/1/68-1/30/72           4 4/9¢ / gal         Artificially Carbonated Sparkling Wine:                       26.7¢ / gal   24% Alcohol or Less:    66.7¢ / gal
                                               Naturally Sparkling Wine:                                     53.3¢ / gal   All Other Liquors:      $2.25 / gal
 2/1/72-4/30/83           Unchanged            Unchanged                                                    Unchanged      24% Alcohol or Less:     80¢ / gal
                                                                                                                           All Other Liquors:      $3.25 / gal
 5/1/83-4/30/89             5.5¢ / gal         Still Wine:                                                   12.1¢ / gal   24% Alcohol or Less:    $1.00 / gal
                                               Artificially Carbonated Sparkling Wine:                       33.3¢ / gal   All Other Liquors:      $4.09 / gal
                                               Naturally Sparkling Wine:                                     66.3¢ / gal
 5/1/89-5/30/90              11¢ / gal         Still Wine:                                                  18.93¢ / gal   24% Alcohol or Less:    $2.08 / gal
                                               Cider Over 3.2% Alcohol:                                      3.79¢ / gal   All Other Liquors:      $5.30 / gal
                                               Artificially Carbonated Sparkling Wine:                       56.8¢ / gal   2% Alcohol or Less:
                                                                                                                           (eff. 07/16/89)          3.7¢ / gal
                                               Naturally Sparkling Cider Over 3.2% Alcohol:                  3.79¢ / gal
                                               Naturally Sparkling Wine:                                       94¢ / gal
                                               Artificially Carbonated Sparkling Cider Over 3.2% Alcohol:    3.79¢ / gal
 6/1/90-6/30/94              21¢ / gal         Unchanged                                                    Unchanged      24% Alcohol or Less:    $2.53 / gal
                                                                                                                           All Other Liquors:      $6.43 / gal
 7/1/94-12/31/95          Unchanged            Artificially Carbonated Sparkling Wine:                      18.93¢ / gal   Unchanged              Unchanged
                                               Naturally Sparkling Wine:                                    18.93¢ / gal
 1/1/96-12/31/98             16¢ / gal         Unchanged                                                    Unchanged      Unchanged              Unchanged
 1/1/99-4/1/2000 (1)        13.5¢ / gal        Unchanged                                                    Unchanged      Unchanged              Unchanged
 Source: NYS Department of Taxation and Finance, Office of Tax Policy Analysis.
 (1) Rate is scheduled to decrease to 12.5¢ per gallon effective April 1, 2000.




Page 158                                                                                                                        1999 NYS Tax Sourcebook
 Table 60: History of New York                                                                                    Rate Per
 State Cigarette Tax Rates,      Effective Date(s)                                                                Pack (1)
 1939-1999                       1939-3/31/59                                                                            2
                                 4/1/59-3/31/65                                                                          5
                                 4/1/65-5/31/68                                                                         10
                                 6/1/68-1/30/72                                                                         12
                                 2/1/72-3/31/83                                                                         15
                                 4/1/83-4/30/89                                                                         21
                                 5/1/89-5/31/90                                                                         33
                                 6/1/90-5/31/93                                                                         39
                                 6/1/93-Present                                                                         56
                                 (1) Rate shown is in cents per pack of 20 cigarettes.
                                 Source: NYS Department of Taxation and Finance, Office of Tax Policy Analysis.




1999 NYS Tax Sourcebook                                                                                           Page 159
Table 61: Significant Changes in New York State’s Excise Taxes and Fees, 1929-1999
Tax                          1929-1949                     1950-1959                   1960-1969                     1970-1979                     1980-1989                     1990-1999
Motor Fuel Excise            Motor fuel excise tax         Tax on gasoline increased                                 Legislation in 1972           In 1985, the tax on           In 1990 petroleum testing
Tax (Tax Law Article         added in 1929 at 2¢/gal. of   to 6¢/gal. in 1956 and 7¢                                 increased the gasoline tax    gasoline was changed to       fee of one-half mill (0.05¢)
12-A                         gasoline. Expanded to         in 1959. Diesel tax                                       to 8¢/gal. and the diesel     require payment by the        imposed on gasoline.
                             diesel fuel in 1936. By       increased to 6¢/gal. in                                   tax to 10¢.                   fuel importer rather than
                             1949, rates for both fuels    1951 and to 9¢ in 1959.                                                                 the retail seller. Other
                             were 4¢/gal.                                                                                                          enforcement measures
                                                                                                                                                   were also enacted.
                                                                                                                                                   Diesel legislation followed   Effective January 1, 1996,
                                                                                                                                                   in 1988. It moved the         the tax rate on diesel
                                                                                                                                                   diesel tax to the first       motor fuel is reduced from
                                                                                                                                                   “nonexempt” New York          10¢ to 8¢ per gallon.
                                                                                                                                                   sale or use.
Cigarette Excise             Cigarette excise tax          In 1959, the tax rate was   In 1965, the tax rate was     Legislation in 1972           The Cigarette Marketing       In 1990, the tax rate was
Taxes & Tobacco              enacted in 1939 at            increased to 5¢/pack.       increased to 10¢/pack.        increased the cigarette tax   Standards Act was             increased to 39¢/pack. In
Products (Tax Law            2¢/pack of 20 cigarettes.                                 Three years later, in 1968,   to 15¢/pack. The 1972         passed in 1985 to regulate    addition, a new license fee
Article 20)                                                                            the rate increased again to   legislation also added a      and control the cigarette     was imposed at $100 per
                                                                                       12¢/pack.                     “use tax” component.          industry. In 1983, the        location where cigarettes
                                                                                                                                                   cigarette tax was             are sold at retail and $25
                                                                                                                                                   increased to 21¢ per pack.    per cigarette vending
                                                                                                                                                   In 1989, the rate             machine. The rate was
                                                                                                                                                   increased to 33¢/pack. In     increased again, in 1993,
                                                                                                                                                   1989, a new tax was           to 56¢/pack. The tobacco
                                                                                                                                                   added on tobacco              products tax was
                                                                                                                                                   products at a rate of 15%     increased to 20% at that
                                                                                                                                                   of the wholesale price.       time.
Alcoholic Beverage           Tax imposed in 1933 at                                    Rates increased in 1968       Rates increased in 1972       Rates increased as            Rates changes as follows:
Tax (Tax Law                 the following rates:                                      as follows:                   as follows:                   follows:
Article 18)
Beer                         3 1/3¢/gal.                                               4 4/9¢/gal.                                                 1983 - 5.5¢/gal.              1990 - 21¢/gal.
                                                                                                                                                   1989 - 11¢/gal.               1996 - 16¢/gal.
                                                                                                                                                                                 1999 - 13.5¢/gal.
Wine:
   Still Wine                10¢/gal.                                                                                                              1983 - 12.1¢/gal.
                                                                                                                                                   1989 - 18.93¢/gal.
   Cider over 3.2%           1.5¢/gal.                                                                                                             1989 - 3.79¢/gal.
   Artificially carbonated   20¢/gal.                                                  26 2/3¢/gal.                                                1983 - 33.3¢/gal.             18.93¢/gal.
   sparkling wine                                                                                                                                  1989 - 56.8¢/gal.
   Naturally sparkling       1.5¢/gal.
   cider over 3.2%
   Naturally sparkling       40¢/gal.                                                  53 1/3¢/gal.                                                1983 - 66.3¢/gal.             18.93¢/gal.
   wine                                                                                                                                            1989 - 94.6¢/gal.
   Artificially carbonated   1.5¢/gal.
   sparkling cider over
   3.2%
Distilled Spirits:
   24% alcohol or less       50¢/gal.                                                  66 2/3¢/gal.                  80¢/gal.                      1983 - $1.00/gal.             $2.53/gal.
                                                                                                                                                   1989 - $2.08/gal.
   All other liquors         $1.50/gal.                                                $2.25/gal.                    $3.25/gal.                    1983 - $4.09/gal.             $6.44/gal.
                                                                                                                                                   1989 - $5.30/gal.
                                                                                                                                                                                 In 1993, legislation
                                                                                                                                                                                 provided for several
                                                                                                                                                                                 enforcement initiatives to
                                                                                                                                                                                 improve compliance with
                                                                                                                                                                                 the alcoholic beverage tax
                                                                                                                                                                                 on liquor. This legislation
                                                                                                                                                                                 was extended in 1997.




Page 160                                                                                                                                                              1999 NYS Tax Sourcebook
Table 61: Significant Changes in New York State’s Excise Taxes and Fees, 1929-1999 (Con’t)
Tax                    1929-1949   1950-1959                    1960-1969                   1970-1979                    1980-1989                    1990-1999
Beverage Container                                                                                                                                    1990 Beverage Container
Tax (Tax Law Article                                                                                                                                  Tax imposed at
18-A)                                                                                                                                                 2¢/container. Rate
                                                                                                                                                      reduced to 1¢/container
                                                                                                                                                      effective 12/1/95. The tax
                                                                                                                                                      was repealed effective
                                                                                                                                                      10/1/98.
Highway Use Tax                    Truck mileage tax            The alternative “unloaded   In 1977, legislation         The truck mileage tax rate   Beginning in 1990, the
(Tax Law Article 21)               imposed in 1952 based on     weight” method of           expanded the fuel use tax    was increased in the top     truck mileage tax applied
                                   vehicle weight and miles     computing tax was           to include an 8% sales tax   two “unloaded weight”        to New York Thruway
                                   driven in New York           established in 1960. This   component. However, in       categories in 1987. Also     miles and the rate for off-
                                   (excluding miles driven on   method based tax on the     1978, the sales tax          in 1987, a 72-hour “trip     Thruway miles was
                                   New York Thruway).           unladen weight of the       component was reduced        permit” was established.     doubled.
                                                                vehicle power unit.         to 7%.
                                                                                                                                                      Effective January 1, 1996,
                                                                                                                                                      the truck mileage tax no
                                                                                                                                                      longer applies to
                                                                                                                                                      New York Thruway miles.
                                                                The fuel use tax was                                                                  The tax on Thruway miles
                                                                added in 1968 and applied                                                             was phased out in 1995 at
                                                                to fuel purchased outside                                                             rates one-half of those
                                                                New York but used in                                                                  applied in 1994.
                                                                New York travel. The rate
                                                                equaled the motor fuel
                                                                excise tax rates for
                                                                gasoline and diesel fuel.
                                                                                                                                                      The fuel use tax
                                                                                                                                                      component rate for diesel
                                                                                                                                                      fuel declined from 10¢ to
                                                                                                                                                      8¢ per gallon effective
                                                                                                                                                      January 1, 1996.
                                                                                                                                                      Effective January 1, 1996,
                                                                                                                                                      New York State conforms
                                                                                                                                                      its fuel use tax provisions
                                                                                                                                                      to those of the
                                                                                                                                                      International Fuel Use Tax
                                                                                                                                                      Agreement (IFTA). This
                                                                                                                                                      conformity requires the
                                                                                                                                                      following changes to
                                                                                                                                                      New York’s tax law:
                                                                                                                                                      - Increases the minimum
                                                                                                                                                      gross vehicle weight
                                                                                                                                                      subject to tax from 18,000
                                                                                                                                                      to 26,000 pounds;
                                                                                                                                                      - Requires refund of taxes
                                                                                                                                                      paid on fuel purchased in
                                                                                                                                                      the State but used out of
                                                                                                                                                      the State.
                                                                                                                                                      Effective January 1, 1999,
                                                                                                                                                      the supplemental rate
                                                                                                                                                      portion of the TMT was
                                                                                                                                                      reduced by 50%.




1999 NYS Tax Sourcebook                                                                                                                                             Page 161
 Property Transfer Taxes


                          New York imposes two major property transfer taxes: the estate and gift
                          tax, and the real estate transfer tax. A third tax, the real property transfer
                          gains tax was repealed effective June 15, 1996.

                          Similar to federal law, New York imposes a unified estate and gift tax
Estate Tax                system (Articles 26 and 26-A, respectively). The Department
                          administers the tax, but the Surrogate Courts of counties throughout the
                          State have primary authority over probate matters and adjudication of
                          disputes. The estate tax applies against the transfer of property from the
                          estates of decedents, plus taxable gifts which the decedent made.
                          Graduated tax rates apply from 2 percent on taxable amounts of $50,000
                          or less up to 21 percent on such amounts over $10.1 million. The
                          Internal Revenue Code (IRC) provides a credit against the federal estate
                          tax for state death tax. The maximum allowable federal credit varies
                          with the size of the taxable estate, up to a maximum credit of 16 percent
                          on adjusted taxable estates above $10.04 million. Net of the tax benefits
                          from the federal credit, the top effective State estate tax rate equals 5
                          percent. Also, the federal credit acts as a minimum New York estate tax.

                          New York law generally conforms to federal IRC amendments through
                          July 27, 1998. For example, as under federal law, New York permits a
                          full marital deduction for transfers to a spouse who is a U.S. citizen and
                          the exclusion for closely held business assets enacted in 1997. However,
                          unlike the personal income and business taxes, the State Constitution
                          prohibits the estate and gift tax from automatically conforming to federal
                          changes in the IRC.

                          Similar to federal law, New York law allows a unified credit against
                          either, or both, estate and gift taxes. The State allows a maximum
                          unified credit of $10,000 and a minimum credit of $500 where the tax
                          equals $9,500 or more. In effect, the credit provides a lifetime $300,000
                          exemption to estates and gifts. Also, a credit against the estate tax
                          applies for gifts included in the estate that were previously subject to gift
                          tax.

1999 NYS Tax Sourcebook                                                                         Page 163
           A deduction applies for up to $250,000 of equity in the decedent’s
           principal residence in computing adjusted taxable estate. Property
           deducted due to the marital or charitable deduction does not qualify for
           this deduction.

           A “closely held business” credit applies for estates comprised of at least
           35 percent business assets. The credit equals 5 percent of the first $15
           million of such qualifying assets, for a maximum amount of $750,000.
           The assets must be part of a closely-held business, which includes sole
           proprietorships, partnerships with 15 or fewer partners, or corporations
           with 15 or fewer shareholders. Also, the decedent must bequeath the
           assets to a qualified heir. Assets used to fund the marital deduction, or as
           part of the exclusion which flows through from federal law, do not
           qualify for the credit.

           Ninety percent of the estate tax is payable within seven months of the
           decedent’s death, and 100 percent must be paid within nine months,
           when tax returns are due. However, qualifying small businesses may
           defer payment for up to four years, and can pay tax in installments over
           the next 10 years.

           Legislation enacted in 1997 repeals the current estate and gift tax
           effective for decedents dying on or after February 1, 2000. At that time,
           New York will impose a tax equal to the maximum federal credit for
           state death tax. This is commonly termed a “pickup” or “sop” tax
           because it “picks up” or “sops up” the maximum credit allowed against
           the federal estate tax. Also effective February 1, 2000, returns and
           payments will be due within 9 months of the decedent’s death.


           The State gift tax also uses the comparable federal gift tax base as its
Gift Tax   starting point. Exclusions apply for transfers of real and tangible
           personal property located outside the State. Like the federal gift tax, the
           New York law exempts all gifts to U.S. citizen spouses and recognized
           charities. It also provides an annual exclusion of $10,000 per donee.
           Any unused unified credit reduces the amount of tax.

           By January 15, grantors must make an estimated payment equal to 90
           percent of the tax due on gifts made during the prior calendar year. They
           must pay the full amount of tax by April 15, the due date for the return.


Page 164                                                         1999 NYS Tax Sourcebook
                          Legislation enacted in 1997 repeals the gift tax effective January 1, 2000.
                          As an interim measure, the unified credit will increase to $10,000
                          effective January 1, 1999.

                          A New York Generation Skipping Transfer tax (GST) (Article 26-B),
Generation Skipping       like its federal counterpart, applies to the transfer of assets through trusts
Transfer Tax              across family generations which would otherwise escape taxation. The
                          tax equals the maximum federal credit for state generation-skipping
                          transfer taxes, which in turn equals 5 percent of federal GST. This
                          means that the GST “soaks up” the federal credit without actually
                          imposing additional tax liability.

                          Adopted in 1968, Article 31, New York’s real estate transfer tax, applies
Real Estate Transfer      to the transfer of each deed which conveys real property with a value
Tax                       over $500. The tax is due within 15 days of the conveyance. The tax
                          equals $2.00 for each $500 or additional fraction of $500. The tax is to
                          be paid by the grantor. However, if the grantor has failed to pay the tax
                          or is exempt from the tax, the grantee has the duty to pay the tax. The
                          grantor and the grantee are jointly and severally liable for the tax.

                          The tax also applies to transfers of economic interest such as shares in
                          cooperatively-owned apartments. Other such taxable interest transfers
                          include long-term leaseholds and transfers of controlling interest in
                          entities which own real property. Article 31 also imposes an additional
                          tax of 1 percent of the consideration paid for residences selling for $1
                          million or more (the so-called “mansion tax”). The person receiving the
                          real property interest, usually the buyer, must pay this additional tax.

                          A portion of the real estate transfer tax is earmarked to the
                          Environmental Protection Fund. In 1999, the amount equals $112.0
                          million. Any remaining transfer tax revenues are earmarked for the
                          Clean Water/Clean Air fund debt service requirements.

                          The tax rate is reduced by 50 percent for qualifying transfers of real
                          property to, or acquisition of real property by, a real estate investment
                          trust (REIT) upon its initial formation. Effective July 13, 1996, the
                          reduced rate was expanded to also apply to qualifying transfers to
                          existing REITs. The latter provision is currently scheduled to sunset on
                          September 1, 2002.



1999 NYS Tax Sourcebook                                                                          Page 165
           Certain counties are required to remit real estate transfer tax revenues on
           a semi-monthly payment schedule. If total payments remitted during the
           prior calendar year exceeded $1.2 million after deduction of statutory
           fees, monies collected from the 1st to 15th day of a month must be
           remitted to the Department on the 25th day of that month. Revenues
           received after the 15th day of the month through the last day of such
           month would continue to be remitted on the 10th day of the succeeding
           month as required by law.




Page 166                                                         1999 NYS Tax Sourcebook
Table 62: Significant Changes to New York State’s Estate and Gift Taxes, 1983-1999
Event/Changes           1983                                  1984                          1990                              1991
Rates                   Estate and gift tax rates unified                                   Generation-Skipping Tax (GST)
                        effective January 1, 1983.                                          enacted. Tax equals 5% of
                                                                                            federal GST, the maximum
                                                                                            federal credit for State GST.
Base                    Partial marital deduction             Unlimited marital deduction   Tax computation amended to
                        permitted.                            permitted effective           calculate marginal tax rate on
                                                              October 1, 1983.              total estate value.




Credits                 Estate and gift tax credits unified
                        effective January 1, 1983.




Other                                                                                       Tax Department assumes            Estimated Estate Tax requirements
                                                                                            primary tax administration        changed: 90% of tax must be paid within
                                                                                            responsibility from Surrogate’s   6 months to avoid penalty.
                                                                                            Courts.
                                                                                                                              90% of Gift Tax on prior year gifts must
                                                                                                                              be paid by January 15 to avoid penalty.




Page 168                                                                                                                        1999 NYS Tax Sourcebook
Table 62: Significant Changes to New York State’s Estate and Gift Taxes, 1983-1999 (Con’t)
1994                                   1995                             1997                                 1998                                  1999




                                       Deduction for up to $250K of     The current estate and gift tax is
                                       equity in principal residence.   repealed for decedents dying on
                                                                        or after February 1, 2000. At that
                                                                        time, New York will impose a
                                                                        “pickup tax” equal to the
                                                                        maximum federal credit for state
                                                                        death tax.
Unified credit increased from                                                                                Unified estate tax credit increased   Unified gift tax credit increased to
$2,750 to $2,950, increasing                                                                                 from $2,950 to $10,000,               $10,000 effective January 1, 1999.
exemption from $108,333 to                                                                                   increasing exemption from
$115,000.                                                                                                    $115,000 to $300,000 effective
                                                                                                             October 1.
Closely-held business credit
enacted equal to 5% of the first $15
million of qualifying property
bequeathed to qualifying heirs.
                                                                                                             Estimated Estate Tax requirement
                                                                                                             extended to 7 months effective
                                                                                                             October 1.




1999 NYS Tax Sourcebook                                                                                                                                                  Page 169
Table 63: Significant Changes to New York State’s Property Transfer Taxes, 1906-1999
Real Estate Transfer Tax   1983                                          1989                                       1992                                          1993
Event/Changes              Basic tax increases to $2 per $500 paid       Additional 1% “mansion tax” on transfers
                           as consideration for the transfer. The tax    of personal residences where
                           was originally adopted in 1968 at a rate of   consideration exceeds $1 million.
                           55¢ per $500.




                                                                         Tax is amended to apply to transfers of
                                                                         controlling interest as well as
                                                                         acquisitions.




Major Exemptions           Conveyances to certain government
                           agencies.
                           Conveyances to secure a debt or other
                           obligation.
                           Corrective conveyances.
                           Conveyances without consideration (such
                           as a gift).
                           Tax sale conveyances.
                           Conveyances pursuant to the Federal
                           Bankruptcy Act.
                           Conveyances to effectuate a mere change
                           in identity.
Real Estate Gains Tax      1983                                          1989                                       1992                                          1993
Event/Changes              Tax introduced at a rate of 10% of the gain Tax is amended to apply to transfer of       Transferee liability on certain transfers of Definition of original purchase
                           on the transfer of real property.           controlling interest as well as              ownership interest in Cooperative Housing price (OPP) amended to better
                                                                       acquisitions.                                Corporations (CHCs) are exempted from reflect actual acquisition costs.
                                                                                                                    the tax when liens are enforced. Owners
                                                                                                                    of CHC shares remain liable.
                                                                         Installment payments are accelerated                                                     Transferee liability eliminated in
                                                                         and restricted for transfers with min.                                                   cases of transfers in lieu of
                                                                         $10,000 tax.                                                                             foreclosure.




Major Exemptions           Transfers where consideration is less than
                           $1 million.
                           Transfers of the transferor’s residence.
                           Mere changes of identity.
                           Transfers pursuant to a contract entered
                           into prior to March 28, 1983.
Mortgage Recording         1906                                          1969                                       1979                                          1993
Taxes
Event/Changes              Basic Tax enacted at a rate of 50¢ per        Additional Tax enacted at a rate of 25¢    Special Additional Tax enacted at a rate of
                           $100 of indebtedness.                         per $100 of indebtedness.                  25¢ per $100 of indebtedness.
Disposition of Revenue     Cities, towns and villages.                   Regional Transportation Authorities        Revenues paid to the State Mortgage
                                                                         serving the county where the tax is        Insurance Fund account serving the
                                                                         collected.                                 region where the county is located.




Page 170                                                                                                                                                  1999 NYS Tax Sourcebook
Table 63: Significant Changes to New York State’s Property Transfer Taxes, 1906-1999 (Con’t)
1994                                            1995                                1996                                             1997                                             1998-99
Basic rate on qualifying real estate                                                Counties with prior year payments over $1.2      The preferential tax rate on qualifying real
investment trust (REITs) transfers reduced                                          million must remit payments collected from       estate investment trust (REIT) transfers
to $1.00 per $500 for transfers occurring on                                        the 1st through 15th day of the month to the     during the initial formation of a REIT, due to
or after June 9, 1994, and before                                                   Department by the 25th day of the month.         sunset on September 1, 1996, was made
July 1, 1996.                                                                       Revenues received after the 15th day would       permanent as of July 13, 1996.
                                                                                    continue to be remitted by the 10th day of the
                                                                                    succeeding month.
                                                                                                                                     The preferential tax rate for initial REIT       The preferential tax
                                                                                                                                     formation transfers was expanded to include      rate for qualifying
                                                                                                                                     qualifying transfers to existing REITs. The      transfers to existing
                                                                                                                                     lower rate for existing REIT transfers is        REITs is extended
                                                                                                                                     scheduled to sunset on September 1, 1999.        through
                                                                                                                                                                                      September 1, 2002.




1994                                            1995                                1996                                             1997                                             1998-99
OPP redefined to include real estate                                                                                                 Tax is retroactively repealed on
transfer taxes and pro-rated lease-up costs.                                                                                         July 13, 1996. The tax applies only to
                                                                                                                                     transfers occurring before June 15, 1996.



Construction period expanded and                Temporary builders’ exemption
temporary builders’ exemption introduced.       extended to apply to construction
                                                begun before July 1, 1997, and
                                                “hard” capital improvement costs
                                                incurred before July 1, 1999.
Aggregation of consideration for contiguous
and adjacent parcels required for partial
and successive transfers during any 3 year
rolling period without regard to existence of
an agreement/plan or intended use.
Transfers of substantially improved
residential subdivision parcels to a
transferee who intends to construct
residential dwellings on such parcels are
not aggregated.
Tax reduced to 2.5% of the gain on
transfers of real property effected through
qualifying “real estate investment trust
transfers” occurring on or after
June 9, 1994, and before July 1, 1996.




1994                                            1995                                1996                                             1997                                             1998-99




Note: Estate and gift tax changes are described in a separate table.



1999 NYS Tax Sourcebook                                                                                                                                                                      Page 171
 Appendix A: Office of Tax Policy
 Analysis Publications (As of
 October 4, 1999)



                                                     1999

                                      The Temporary Clothing Exemptions
                          Statistical Analysis of the Temporary Sales Tax Exemptions
                                      for Clothing Sales in New York State
                                                  (January 1999)

                                            Analysis of Article 9-A
                          General Business Corporation Franchise Tax Credits for 1995
                                               (January 1999)

                                             Small Business Report
                                          Statistics for Tax Year 1995
                                                  (January 1999)

                                              New York State
                                      1999-2000 Tax Expenditure Report
                                              (February 1999)

                              New York Adjusted Gross Income and Tax Liability
                              Analysis of 1996 State Personal Income Tax Returns
                                             by Place of Residence
                                                (February 1999)

                                   1997-98 New York State Tax Collections
                                  Statistical Summaries and Historical Tables
                                                (February 1999)



1999 NYS Tax Sourcebook                                                                 A-1
                     Earned Income Tax Credit
                  Analysis of Credit Claims for 1997
                            (March 1999)

                      New York State Estate Tax
                           SFY 1997-98
                       Analysis of Tax Returns
                            (April 1999)

            Analysis of 1996 Personal Income Tax Returns
            Profile of Income, Deductions, Credits and Tax
                             (May 1999)

                     Taxable Sales and Purchases
                    County and Industry Data for
                   September 1997 - February 1998
                             (June 1999)

         1995 New York State Corporate Tax Statistical Report
                          (August 1999)

               Real Property Circuit Breaker Tax Credit
                     1995 Credit Use by County
                            (August 1999)

         Summary of Tax Provisions in SFY 1999-2000 Budget
                         (September 1999)

                                1998

          New York Adjusted Gross Income and Tax Liability
          Analysis of 1995 State Personal Income Tax Returns
                         by Place of Residence
                            (January 1998)

                        Analysis of Article 9-A
      General Business Corporation Franchise Tax Credits for 1994
                           (January 1998)




A-2                                                                 1999 NYS Tax Sourcebook
                                           New York State
                                   1998-1999 Tax Expenditure Report
                                           (February 1998)

                                              1990-1994
                             New York State Corporate Tax Statistical Report
                                            (February 1998)

                                      Taxable Sales and Purchases
                                      County and Industry Data for
                                      August 1996 - February 1997
                                           (February 1998)

                                      Earned Income Tax Credit
                                   Analysis of Credit Claims for 1996
                                            (February 1998)

                                       New York State Estate Tax
                                            SFY 1996-97
                                        Analysis of Tax Returns
                                             (April 1998)

                                Real Property Circuit Breaker Tax Credit
                                      1994 Credit Use by County
                                              (April 1998)

                               Analysis of 1995 Personal Income Tax Returns
                   Profile of Income, Deductions, Credits and Tax from Taxable Returns
                                                (May 1998)

                                    New York State Tax Sourcebook
                                             (July 1998)

                                  Summary of 1998-99 Tax Provisions
                                           (August 1998)

                                             Tax Amnesty
                          Review of New York State’s 1996-97 Amnesty Program
                                            (August 1998)



1999 NYS Tax Sourcebook                                                                  A-3
                         Taxable Sales and Purchases
                         County and Industry Data for
                          March 1997 - August 1997
                             (September 1998)

                                    1997

            Improving New York State’s Telecommunications Taxes
                     Final Report and Recommendations
                               (January 1997)

                         Taxable Sales and Purchases
                         County and Industry Data for
                         March 1995 - February 1996
                               (January 1997)

                          New York State Estate Tax
                                SFY 1995-96
                           Analysis of Tax Returns
                               (January 1997)

                              New York State
                      1997-1998 Tax Expenditure Report
                              (February 1997)

                         Earned Income Tax Credit
                      Analysis of Credit Claims for 1995
                               (February 1997)

              New York Adjusted Gross Income and Tax Liability
              Analysis of 1994 State Personal Income Tax Returns
                             by Place of Residence
                                 (April 1997)

                  Analysis of 1994 Personal Income Tax Returns
      Profile of Income, Deductions, Credits and Tax from Taxable Returns
                                   (April 1997)

                       New York State Tax Sourcebook
                               (May 1997)


A-4                                                                   1999 NYS Tax Sourcebook
                                         Taxable Sales and Purchases
                                         County and Industry Data for
                                          March 1995 - August 1996
                                                 (July 1997)

                                     Summary of 1997-98 Tax Provisions
                                            (September 1997)

                                   1996-97 New York State Tax Collections
                                  Statistical Summaries and Historical Tables
                                                 (October 1997)

                                      The Temporary Clothing Exemption
                           Analysis of the Effects of the Exemption on Clothing Sales
                                               in New York State
                                                (November 1997)

                                                     1996

                                 State Tax on Motor Vehicle Damage Awards
                           Evaluating the Impact and Cost-Effectiveness of Article 15
                                                (January 1996)

                                              New York State
                                      1996-1997 Tax Expenditure Report
                                               (January 1996)

                                          New York State Estate Tax
                                                SFY 1994-95
                                           Analysis of Tax Returns
                                               (January 1996)

                                            Analysis of Article 9-A
                          General Business Corporation Franchise Tax Credits for 1992
                                               (January 1996)

                                         The Effectiveness of the ITC
                              An Evaluation of New York’s Investment Tax Credit
                                               (February 1996)



1999 NYS Tax Sourcebook                                                                 A-5
                         Earned Income Tax Credit
                      Analysis of Credit Claims for 1994
                               (February 1996)

                   Real Property Circuit Breaker Tax Credit
                         1993 Credit Use By County
                                 (April 1996)

                       New York State Tax Source Book
                                (April 1996)
                              (Out of Print)

                         Taxable Sales and Purchases
                         County and Industry Data for
                        September 1994 - August 1995
                                 (June 1996)

              New York Adjusted Gross Income and Tax Liability
              Analysis of 1993 State Personal Income Tax Returns
                             by Place of Residence
                                  (July 1996)

                     Summary of 1996-97 Tax Provisions
                              (August 1996)

                  Analysis of 1993 Personal Income Tax Returns
      Profile of Income, Deductions, Credits and Tax from Taxable Returns
                                  (August 1996)

            Improving New York State’s Telecommunications Taxes
                    A Background Study and Status Report
                              (August 1996)

                   1995-96 New York State Tax Collections
                  Statistical Summaries and Historical Tables
                                (November 1996)

               New York State Corporate Tax Statistical Report
                             (November 1996)



A-6                                                                   1999 NYS Tax Sourcebook
                             Recent Trends in Article 9-A Collections and Liability
                                              (November 1996)

                                            Analysis of Article 9-A
                          General Business Corporation Franchise Tax Credits for 1993
                                              (December 1996)

                                                     1995

                                       New York State Tax Source Book
                                              (January 1995)

                                             State of New York
                                           Tax Expenditure Report
                                                 1995-1996
                                              (February 1995)

                                    New York State Adjusted Gross Income
                                         and Tax Liability for 1992
                                          By County of Residence
                                              (February 1995)

                                      1992 Real Property Circuit Breaker
                                      Tax Credit Use in New York State
                                                (April 1995)

                                    Franchise Tax on Banking Corporations
                                    Analysis of Tax Return and Audit Data
                                                 (April 1995)

                                New York State Corporate Tax Statistical Report
                                                (May 1995)

                                 Analysis of 1992 Personal Income Tax Returns
                                                  (May 1995)

                                              State of New York
                                            1995-96 Tax Provisions
                                                 (June 1995)



1999 NYS Tax Sourcebook                                                                 A-7
          Taxable Sales and Purchases Subject to Use Tax
            By County and Industry For Selling Periods
              September 1993 Through August 1994
                           (June 1995)

           State Tax on Motor Vehicle Damage Awards
        Preview of Compliance Issues and Taxpayer Impacts
                    Under Study in Article 15
                        (November 1995)

                     Targeted Tax Amnesty
        Review of New York State’s 1994 Amnesty Program
                       (December 1995)

                      Progressive Improvement
      The Impact of Income Tax Cuts on New York’s Taxpayers
                      and Tax Competitiveness
                          (December 1995)

             1994-95 New York State Tax Collections
            Statistical Summaries and Historical Tables
                          (December 1995)

                   Taxable Sales and Purchases
                   County and Industry Data for
                   March 1994 - February 1995
                        (December 1995)

                              1994

              New York State Adjusted Gross Income
                   and Tax Liability for 1991
                    By County of Residence
                        (January 1994)

                       State of New York
                     Tax Expenditure Report
                           1994-1995
                        (February 1994)



A-8                                                           1999 NYS Tax Sourcebook
                                               New York State
                                             Fiscal Year 1994-95
                                      Budget Summary of Tax Provisions
                                                 (June 1994)

                                Taxable Sales and Purchases Subject to Use Tax
                                  By County and Industry For Selling Periods
                                    September 1992 Through August 1993
                                                 (June 1994)

                                 Analysis of 1991 Personal Income Tax Returns
                                                 (August 1994)

                                        New York State Tax Structure:
                                       History and Comparative Analysis
                                                 (August 1994)

                                        New York State Taxes and Fees
                                            Fiscal Year 1993-94
                                              (October 1994)

                                            Analysis of Article 9-A
                          General Business Corporation Franchise Tax Credits for 1990
                                              (December 1994)

                                Taxable Sales and Purchases Subject to Use Tax
                                  By County and Industry For Selling Periods
                                     March 1993 Through February 1994
                                               (December 1994)

                                         1993-1994 Statistical Report
                                      of New York State Tax Collections
                                              (December 1994)

                           Sales Tax Compliance in the Manhattan Parking Industry:
                                      Analysis of 1992 Reform Measures
                                              (December 1994)




1999 NYS Tax Sourcebook                                                                 A-9
                                 1993

                  Improving Sales Tax Compliance:
        Recommendations for a Compliance Improvement Program
                                   &
           Supplement - Survey of State Sales Tax Compliance
                        Problems and Programs
                            (January 1993)

              New York Personal Income and Tax Liability
                       For Income Year 1989
                      By County of Residence
                           (January 1993)

                         Analysis of Article 9-A
       General Business Corporation Franchise Tax Credits for 1988
                            (January 1993)

                          State of New York
                        Tax Expenditure Report
                              1993-1994
                           (February 1993)

        Taxable Sales and Purchases Subject to Sales and Use Tax
              By County and Industry For Selling Periods
                 September 1990 Through August 1991
                            (February 1993)

             Study of Withholding on Pari-Mutuel Winnings
                              (May 1993)

        Taxable Sales and Purchases Subject to Sales and Use Tax
              By County and Industry For Selling Periods
                  March 1991 Through February 1992
                              (June 1993)

              Analysis of 1990 Personal Income Tax Returns
                    (June 1993/Revised March 1994)




A-10                                                                 1999 NYS Tax Sourcebook
                                 The Effectiveness of the Administration of the
                                           Real Property Gains Tax
                                              (September 1993)

                                        New York State Taxes and Fees
                                           Fiscal Year 1992-1993
                                             (September 1993)

                                    Report on the Real Property Gains Tax
                                    Temporary Penalty Abatement Program
                                              (September 1993)

                                New York State Petroleum Business Tax Issues
                                            Preliminary Report
                                              (October 1993)

                           Taxable Sales and Purchases Subject to Sales and Use Tax
                                 By County and Industry For Selling Periods
                                    September 1991 Through August 1992
                                               (October 1993)

                                            Analysis of Article 9-A
                          General Business Corporation Franchise Tax Credits for 1989
                                              (December 1993)

                                New York State Petroleum Business Tax Issues
                                                Final Report
                                             (December 1993)

                                         1992-1993 Statistical Report
                                      of New York State Tax Collections
                                              (December 1993)

                                Taxable Sales and Purchases Subject to Use Tax
                                  By County and Industry For Selling Periods
                                     March 1992 Through February 1993
                                               (December 1993)




1999 NYS Tax Sourcebook                                                                 A-11
                                 1992

                      1990-1991 Statistical Report
                   of New York State Tax Collections
                            (January 1992)

                    Improving Sales Tax Compliance
                          Preliminary Report
                            (February 1992)

                        Business Tax Analysis:
            The Taxation of Non-Life Insurance Corporations
                            (February 1992)

                          State of New York
                        Tax Expenditure Report
                              1992-1993
                           (February 1992)

                        Business Tax Analysis:
                   The Taxation of Affiliated Groups
                         Volume I: Overview
                           (February 1992)

                       Analysis of Estates Closed
                        During Fiscal Year 1988
                            (February 1992)

             Analysis of Article 9-A Business Corporations’
                            1987 Tax Credits
                            (February 1992)

       Report on the Status of Revenue Projects Enacted in 1991-92
                               (March 1992)

             Study of Withholding on Pari-Mutuel Winnings
                              (May 1992)

             Analysis of 1989 Personal Income Tax Returns
                  (May 1992/Revised February 1994)


A-12                                                                 1999 NYS Tax Sourcebook
                                      New York State Sales and Use Tax
                               Taxable Sales and Purchases Subject to Use Tax
                                            By County and Industry
                            For Selling Periods March 1990 through February 1991
                                                 (June 1992)

                                       New York State Taxes and Fees
                                          Fiscal Year 1991-1992
                                              (August 1992)

                                        1991-1992 Statistical Report
                                     of New York State Tax Collections
                                              (October 1992)

                                                    1991

                          New York State Economic Development Zone Tax Incentives
                                            Tax Years 1987-1989
                                               (January 1991)

                                Analysis of Article 9-A Business Corporations’
                                               1986 Tax Credits
                                     (January 1991/Revised June 1991)

                                      New York State Sales and Use Tax
                               Taxable Sales and Purchases Subject to Use Tax
                                            By County and Industry
                          For Selling Periods September 1986 through February 1990
                                      (February 1991/Revised May 1991)

                                             State of New York
                                           Tax Expenditure Report
                                                 1991-1992
                                               (March 1991)

                           The Effect of the Federal Omnibus Budget Reconciliation
                                        Act of 1990 on New York State
                                                 (March 1991)




1999 NYS Tax Sourcebook                                                              A-13
       Report on the Status of Revenue Projects Enacted in 1990-91
                               (March 1991)

             Study of Withholding on Pari-Mutuel Winnings
                              (May 1991)

             Analysis of 1988 Personal Income Tax Returns
                              (July 1991)

                     New York State Taxes and Fees
                        Fiscal Years 1990-1991
                            (August 1991)

                Franchise Tax on Banking Corporations:
               Statistical Analysis of the 1985 Reform Act
                            (September 1991)

                    New York State Sales and Use Tax
             Taxable Sales and Purchases Subject to Use Tax
                         By County and Industry
           For Selling Period March 1990 through August 1990
                              (October 1991)

                                 1990

                          State of New York
                        Tax Expenditure Report
                              1990-1991
                           (February 1990)

             Study of Withholding on Pari-Mutuel Winnings
                              (May 1990)

            Study of Economic Development Zone Legislation
                             (June 1990)

                      Business Tax Analysis:
            The Minimum Tax - Taxation of Preference Items
                          (August 1990)



A-14                                                                 1999 NYS Tax Sourcebook
                             Analysis of 1987 Personal Income Tax Returns
                                             (August 1990)

                                      1988-1989 Statistical Report
                                          (September 1990)

                                    New York State Taxes and Fees
                                       Fiscal Years 1989-1990
                                           (October 1990)

                              New York Personal Income and Tax Liability
                                       For Income Year 1987
                                      By County of Residence
                                         (November 1990)

                                                 1989

                     Business Tax Analysis: The Attribution of Income from Services
                                   (January 1989/Revised June 1991)

                              New York Personal Income and Tax Liability
                                       For Income Year 1986
                                      By County of Residence
                                            (June 1989)

                                    New York State Sales and Use Tax
                             Taxable Sales and Purchases Subject to Use Tax
                                         By County and Industry
                           For Selling Period March 1986 through August 1986
                                               (June 1989)

                             Analysis of 1986 Personal Income Tax Returns
                                              (July 1989)

                  Tax Expenditure Reporting for the Sales and Compensating Use Taxes:
                                          A Discussion Paper
                                             (August 1989)




1999 NYS Tax Sourcebook                                                                 A-15
                              New York State Taxes and Fees
                                 Fiscal Years 1988-1989
                                    (September 1989)

       Estimating How the Growth of S Corporations Affects New York State Corporate
                               and Personal Income Taxes
                                      (October 1989)

                            New York’s Business Tax Decline
                     An Office of Tax Policy Analysis Discussion Paper
                                     (November 1989)

                               1987-1988 Statistical Report
                                    (November 1989)

            New York State Estate and Gift Taxes: Recommendations for Reform
                                     (December 1989)

                                      Analysis of 1985
                             Article 9-A Business Corporations
                                        Tax Credits
                                      (December 1989)

                                           1988

               Issues in State Tax Expenditure Reporting: A Discussion Paper
                                      (February 1988)

                   Statistical Supplement to the 1986-1987 Annual Report
                                      (February 1988)

        Tax Expenditure Reporting for the Personal Income Tax: A Discussion Paper
                                        (May 1988)

             The Effect of Federal, State and Local Tax Rates on Capital Gains:
                               New York State’s Experience
                                         (May 1988)




A-16                                                                         1999 NYS Tax Sourcebook
                                 New York Personal Income and Tax Liability
                                          For Income Year 1985
                                         By County of Residence
                                                (July 1988)

                                       New York State Sales and Use Tax
                                Taxable Sales and Purchases Subject to Use Tax
                                            By County and Industry
                           For Selling Period September 1985 through February 1986
                                                  (July 1988)

                                       New York State Taxes and Fees
                                      Fiscal Years 1986-87 and 1987-88
                                               (August 1988)

                                Analysis of 1985 Personal Income Tax Returns
                                                (August 1988)

           Tax Expenditure Reporting for the Corporation Franchise Tax: A Discussion Paper
                                           (September 1988)

                     Temporary Commission to Review the Bank Tax: Interim Report
                                         (December 1988)

                          New York State Estate and Gift Taxes: A Background Paper
                                              (December 1988)

                                               Analysis of 1984
                                      Article 9-A Business Corporations
                                                 Tax Credits
                                               (December 1988)

                                                   1987

                                      New York State Sales and Use Tax
                               Taxable Sales and Purchases Subject to Use Tax
                                           By County and Industry
                             For Selling Period March 1985 through August 1985
                                                 (June 1987)



1999 NYS Tax Sourcebook                                                                      A-17
                                  Analysis of Estates Closed
                                   During Fiscal Year 1984

                                            1986

       The House of Representatives’ Tax Reform Proposal: The Impact on New York State
                                         (March 1986)

                               New York State Sales and Use Tax
                        Taxable Sales and Purchases Subject to Use Tax
                                    By County and Industry
                      For Selling Period March 1984 through August 1984
                                          (April 1986)

        The United States Senate’s Tax Reform Proposal: The Impact on New York State
                                         (June 1986)

                   Trends in New York State Personal Income Tax Liability:
                       The Impact of Tax Reduction Programs 1972-87
                                        (June 1986)

                     Statistical Supplement to the 1985-1986 Annual Report
                                          (July 1986)

                               New York State Sales and Use Tax
                        Taxable Sales and Purchases Subject to Use Tax
                                    By County and Industry
                   For Selling Period September 1984 through February 1985
                                       (September 1986)

                        Analysis of 1984 Personal Income Tax Returns
                                       (October 1986)

                         New York Personal Income and Tax Liability
                                  For Income Year 1984
                                 By County of Residence

                                 New York Personal Income
                                   For Income Year 1984
                          By County of Residence and Size of Income


A-18                                                                         1999 NYS Tax Sourcebook
                                                   1985

                           Statistical Supplement to the 1984-1985 Annual Report
                                                (July 1985)

                                      New York State Sales and Use Tax
                               Taxable Sales and Purchases Subject to Use Tax
                                           By County and Industry
                          For Selling Period September 1983 through February 1984
                                                 (July 1985)

                                New York Personal Income and Tax Liability
                                         For Income Year 1983
                                        By County of Residence
                                           (September 1985)

                                       New York Personal Income
                                         For Income Year 1983
                                By County of Residence and Size of Income
                                            (September 1985)

                  The President’s Tax Reform Proposal: The Impact on New York State
                                            (October 1985)

                                                   1984

                                         Analysis of Estates Closed
                                          During Fiscal Year 1982
                                               (March 1984)

                                New York Personal Income and Tax Liability
                                         For Income Year 1982
                                        By County of Residence
                                             (March 1984)

                                       New York Personal Income
                                         For Income Year 1982
                                By County of Residence and Size of Income
                                              (March 1984)



1999 NYS Tax Sourcebook                                                               A-19
             New York State Personal Income Tax:
               Proposals for Reducing the Tax
                       (August 1984)
                       (Out of Print)

                New York State Sales and Use Tax
         Taxable Sales and Purchases Subject to Use Tax
                     By County and Industry
       For Selling Period March 1983 through August 1983
                        (November 1984)




A-20                                                       1999 NYS Tax Sourcebook
 Appendix B: Duration of Major
 New York State Revenue Sources




1999 NYS Tax Sourcebook           B-1
Appendix B Table 1:                                                                                         Year                             Year
Duration of Major New York   Tax                                                                       Commenced                       Terminated
State Revenue Sources        Personal Income Tax                                                               1919                                -
                             Corporation Organization Tax                                                      1886                                -
                             Corporation Franchise Tax                                                         1880                                -
                                   Income Basis                                                                1917                                -
                             Bank Tax (1)                                                                      1940                                -
                             Insurance Tax (2)                                                                 1974                                -
                                   Direct Writings Tax                                                         1990                                -
                             Unincorporated Business Tax                                                       1935                       1980 (3)
                             Sales Tax                                                                         1965                                -
                             Motor Fuel Tax                                                                    1929                                -
                             Highway Use Tax
                                   Truck Mileage Tax                                                           1952                                -
                                   Fuel Use                                                                    1968                                -
                             Cigarette Tax                                                                     1939                                -
                                   Other Tobacco Products                                                      1989                                -
                             Alcoholic Beverage Tax                                                      1886, 1933                                -
                             Estate Tax (4)                                                                    1885                                -
                             Gift Tax (5)                                                                      1972                                -
                             Stock Transfer Tax (6)                                                            1905                                -
                             Real Estate Transfer Tax                                                          1968                                -
                             Mortgage Recording Tax                                                            1906                                -
                             Pari-Mutuel Tax                                                                   1940                                -
                                   OTB                                                                         1978                                -
                             Lottery                                                                           1967                                -
                             Petroleum Business Tax                                                            1983                                -
                             Real Property Gains Tax (7)                                                       1983                          1996
                             Container Tax                                                                     1990                          1998
                             Hotel Occupancy Tax                                                               1990                          1994
                             Auto Rental Tax                                                                   1990                                -
                             Lubricating Oils Tax                                                              1990                          1994
                             Hudson River Valley Greenway Fee                                                  1992                          1994
                             Paging Device Fee (8)                                                             1992                          1993
                             (1) Banks were subject to tax prior to 1940, but all revenue went to local governments.
                             (2) Prior to 1974, insurance companies were taxed under Article 9.
                             (3) UBT was imposed in 1981, but at a 0% rate.
                             (4) Prior to 1930, the estate tax was preceded by an inheritance tax.
                             (5) Scheduled to be repealed effective January 1, 2000.
                             (6) Since 1977, nonresident taxpayers were eligible for 100% rebate. Resident taxpayers became eligible for rebates
                             in 1979 with a 100% rebate in 1981.
                             (7) Applies to transfers occurring before June 15, 1996.
                             (8) Declared unconstitutional by State Supreme Court in June 1993.
                             Source: NYS Department of Taxation and Finance, Office of Tax Policy Analysis.




B-2                                                                                                              1999 NYS Tax Sourcebook

								
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