United States

New York: Draft Nexus Regulations Released; More to Come

Sep 14, 2015
From KPMG TaxWatch

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The New York Department of Taxation and Finance recently released draft regulations providing guidance on the state’s revised nexus standards. Recall, as part of the corporate franchise tax reform enacted in 2014 and effective beginning in 2015, New York State adopted general economic nexus standards. Under these standards, companies with over $1 million dollars of receipts attributable to New York State under the new customer-based sourcing rules will be deemed to have nexus with the state. Previously, New York State adopted economic nexus only for certain credit card banks. As such, companies meeting the new receipts threshold will be subject to tax in New York State beginning in 2015. New York City, which conformed to many of the state reforms earlier this year, did not adopt the state’s economic nexus standards. Comments on the 30-page draft nexus regulation will be accepted through December 3, 2015. In addition, the Department is also working on additional regulations to address other areas of reform, including the state’s new customer-based sourcing rules. Please stay tuned to TWIST for updates on the New York regulatory process.

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The following information is not intended to be "written advice concerning one or more federal tax matters" subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230.

The information contained herein is of a general nature and based on authorities that are subject to change. Applicability of the information to specific situations should be determined through consultation with your tax adviser.