Hold your horses.
NYS has been running those ads about how businesses should move to NYS and pay no taxes at all for first 10 years,
They make it sound like a Hong Kong or Singapore.
Cuomo Jr., the punchline to a painfully unfunny joke.
The program doesn’t actually guarantee 100 percent tax-free status—and it only applies to a specific segment of the business world. In other words, it’s a lot more complicated than 30-second media spots put forth, says a lawyer who has dissected the program.
“This is a complicated program with extensive regulations and guidelines,” Kevin McAuliffe, a partner in the law firm of Hiscock & Barclay, was quoted as saying on Syracuse.com. “The benefits can be lucrative, but they will not necessarily eliminate all tax liability.” […]
The regulations for Start-Up NY participation could prove dizzying.
Start-Up NY participating businesses have to pay other taxes and fees, depending on the outcome of a regulatory certification process that determines, among other factors, how much of the business activity takes place within the zone, versus outside the boundaries—and how those outside-zone transactions should be valued. Until properly certified, the businesses pay, in whole or part, organization tax and license and maintenance fees, a metropolitan commuter transportation district mobility tax, and a sales and use tax.
Start-Up NY also promises that “employees will pay no state or local personal income taxes.” But the positions and employees have to first receive a government stamp of approval that the jobs are entitled to the tax break—another certification process.
Start-Up NY business employees aren’t necessarily in the free and clear for taxes for the full 10 years.
The rule is that they “pay no state or local income taxes for the first five years,” but for the second five years, income limits kick in to determine the tax responsibility for each worker. In general, workers earning more than $200,000 a year start to pay taxes after the fifth year of operation. On top of that, the business can have only a certain number of workers eligible for the tax-free benefit. …
I saw that on TV and laughed. The more I consider it though, it is a good thing. I don’t want to live near or drive near anyone who is dumb enough to believe that!
That's funny. Little do those businesses know that NYS will claw it all back, and then some, in the next ten years.
“NYS has been running those ads about how businesses should move to NYS and pay no taxes at all for first 10 years,
They make it sound like a Hong Kong or Singapore. “
Hong Kong & Singapore were tax cool WAY before Reaganomics. It’s why they are so wealthy. No other reason for it. Right before I moved to Malaysia (2001-2002, they slashed personal and corporate taxes to the bone. The country’s economy exploded, and still is to this day. Pick any country in the world who slashed their taxes, and I will show you a booming economy. NO exceptions.