2003 Rule reviews

Pursuant to Chapter 262 of the Laws of 1996, the State Administrative Procedure Act (SAPA) was amended to add section 207 under which the Department of Taxation and Finance must review all regulations adopted on or after January 1, 1997, after five years, and, thereafter, at five year intervals. In 2003, the Department must review regulations that were adopted during 1998 to determine whether these regulations should be retained as written or modified. Accordingly, the Department intends to review the following regulations during 2003, and invites written comments on the continuation or modification of these regulations in order to assist the Department in the required review. We will consider comments that are received by February 22, 2003. Any questions concerning the items listed in this rule review or comments regarding the continuation of the rules being reviewed should be referred to: Office of Counsel, Department of Taxation and Finance, W.A. Harriman Campus, Building 9, Room 200, Albany, New York 12227. Telephone: (518) 530-4153, Email address: tax.regulations@tax.ny.gov.

Agenda items

• 20 NYCRR Subchapter G of Chapter (Stock Transfer Tax-Formerly Subchapter G of Chapter III)
• 20 NYCRR Part 528.2 Marshmallow Sales Tax Exemption
• 20 NYCRR Part 647 Credit Line Mortgage
• 20 NYCRR Part 2401 (Taxpayers Affected by Declared Disasters)
• 20 NYCRR Part 527.11 (Exemption from Tax on Dues for Social and Athletic Clubs)
• 20 NYCRR Appendix 10-C (New York City Personal Income Tax on Residents Withholding Tables and Other Methods
• 20 NYCRR Part 2400 (Action for Failure to Release a Lien)

20 NYCRR Subchapter G of Chapter I (Stock Transfer Tax - formerly Subchapter G of Chapter III)

20 NYCRR Subchapter G of Chapter I (Stock Transfer Tax - formerly Subchapter G of Chapter III) Filed January 30, 1998; published/effective February 18, 1998. Need: These regulations simplified and updated the Stock Transfer Tax regulations by removing outdated information, and consolidating and summarizing the language. The regulation also provided for an alternative means for brokers to submit daily reports to a clearing corporation and provided for the manner in which they could certify such records. In addition, the regulation addressed the rebate of the stock transfer tax provided for in section 280-a of the Tax Law. Legal Basis: Tax Law, section 171, subd. First. (TAF-49-97-00004-A)

20 NYCRR Part 528.2 (Marshmallow Sales Tax Exemption)

20 NYCRR Part 528.2 (Marshmallow Sales Tax Exemption) Filed April 14, 1998; published April 29,1998; effective June 1, 1998. Need: This regulation deleted regulatory inconsistency in the imposition of sales tax on receipts from the sales of marshmallows and marshmallow bits. The regulation allowed for the extension of the exemption from sales tax for food to receipts from the sales of marshmallows of all sizes. Legal Basis: Tax Law sections 171, subd. First; 1142(1); and 1250. (TAF-07-98-00003-A)

20 NYCRR Part 647 (Credit Line Mortgage)

20 NYCRR Part 647 (Credit Line Mortgage) Filed June 23, 1998; published/effective July 8, 1998. Need: These regulations reflect amendments made to Article 11 of the Tax Law by Chapters 489 and 490 of the Laws of 1996. These amendments extend favorable tax treatment afforded certain residential credit line mortgages to all credit line mortgages securing a maximum principal indebtedness of less than $3 million. Legal Basis: Tax Law, sections 171, subd. First; 253-b(3); and 263(1)(a). (TAF-17-98-00004-A)

20 NYCRR Part 2401 (Taxpayers Affected by Declared Disasters)

20 NYCRR Part 2401 (Taxpayers Affected by Declared Disasters) Filed January 28, 1998; published February 18, 1998; effective January 28, 1998 (emergency adoption). Filed April 27, 1998; published May 13, 1998; effective April 27, 1998 (emergency readoption). Filed June 23, 1998; published July 8, 1998; effective June 23, 1998 (second emergency readoption). Filed July 22, 1998; published/effective August 12, 1998 (permanent adoption). Need: This regulation was added to implement provisions of Chapter 8 of the Laws of 1998, which authorized the Commissioner of Taxation and Finance to postpone certain tax deadlines for a period of up to 90 days, without imposition of penalty and interest, for taxpayers determined to be affected by a disaster declared by the President or the Governor. Legal Basis: Tax Law, section 171, subds. First and Twenty-eighth. (TAF-19-98-00002-A)

20 NYCRR Part 527.11 (Exemption on Dues for Social and Athletic Clubs)

20 NYCRR Part 527.11 (Exemption From Tax on Dues For Social and Athletic Clubs) Filed October 7, 1998; published/effective October 28, 1998. Need: These regulations (1) clarified that fishing and hunting clubs are not social or athletic clubs by removing reference to them from the example in the regulations about athletic clubs whose dues and initiation fees are subject to sales tax and (2) clarified that not all boating clubs are social or athletic clubs. Those boating clubs which are not social or athletic clubs are not required to collect sales tax on their dues and initiation fees. Legal Basis: Tax Law, sections 171, subd. First; 1142, subd. 1; and 1250 (not subdivided). (TAF-32-98-00004-A)

20 NYCRR Appendix 10-C (New York City Personal Income on Residents Withholding Tables and Other Methods)

20 NYCRR Appendix 10-C (New York City Personal Income Tax On Residents Withholding Tables and Other Methods) Filed December 15, 1998; published effective 12/30/98. Need: These regulations repealed Appendix 10-C and enacted a new Appendix 10-C that provided City of New York withholding tables and other methods, applicable to wages and other compensation paid on and after January 1, 1999. The new tables and other methods reflected the expiration of the tax surcharge on residents of the City of New York. This rule made various editorial changes and reduced the rate of New York City personal income tax on residents to be withheld from supplemental wages. The new Appendix was enacted so that employers would withhold from employee wages amounts that are substantially equivalent to the amount of taxes reasonably estimated to be due for the taxable year. Appendix 10-C has been repealed and enacted four times since this 1998 action. Legal Basis: Tax Law, sections 171, subd. First; 671(a)(1); 671(b)(1); 697(a), 1309 (not subdivided) and 1312(a); General City Law, section 8-A of the Model Local Law contained in section 25-m and section 25-n(e); Administrative Code of the City of New York, sections 11-1771(a), 11-1771(b), 11-1797(a), 11-1909 (not subdivided) and 11-1943 (not subdivided). (TAF-43-98-00004- A)

20 NYCRR Part 2400 (Action for Failure to Release a Lien)

The regulation at 20 NYCRR Part 2400 (Action for Failure to Release a Lien) filed December 23, 1997; published January 7, 1998; effective January 1, 1998 (emergency adoption); and then filed February 25, 1998; effective January 1, 1998, and applicable to damages arising on or after January 1, 1998 (permanent adoption); is not included as part of the Department's 2003 Regulatory Agenda. Although this regulation was permanently adopted in 1998 (exactly as it was adopted as an emergency measure on December 23, 1997), the regulation was reviewed as part of the Department's 2002 Regulatory Agenda, published January 2, 2002. After the review, a notice was published in the State Register, on July 10, 2002, indicating the regulation would be continued without modification. Accordingly, the rule will not be reviewed again in 2003.