On March 30, 2018, the New York State (“New York” or “State”) legislature passed the State Budget for Fiscal Year 2019 (the “Budget”) and Governor Andrew M. Cuomo signed the Budget shortly thereafter. Among other things, the Budget contains New York’s legislative response to the federal tax reform enacted in December 2017, including provisions intended to provide New York taxpayers with ways to mitigate the cost of the limitation on state and local tax (“SALT”) deductibility for federal tax purposes, as well as certain provisions decoupling State tax law from federal tax law.
In addition, on April 6, 2018, the State Department of Taxation and Finance (the “Department”) issued three Technical Memoranda providing guidance on how non-New York residents are subject to New York taxes in the following situations: (i) sales of interests in certain entities that own New York real property and/or shares in a New York residential co-operative; (ii) certain sales of interests in a partnership that holds New York trade or business assets; and (iii) inclusion in New York gross income certain nonqualified deferred compensation for services provided prior to 2009.