State Issues: New York Gramm-Leach Bliley Tax Transition Rules
Last Updated: August 14, 2008
Overview:
The implementation of the federal Gramm-Leach-Bliley Act in 2000 caused uncertainty regarding the tax implications for the financial services industry in New York. In response, transitional provisions were added to the New York State Tax Code and the New York City Administrative Code to "grandfather" the tax law. The transitional provisions have been extended three times since and currently are set to expire in 2009.
Position:
SIFMA supports making permanent transitional provisions added to the New York State Tax Code and the New York City Administrative Code after the federal enactment of the GLB Act to ensure financial services firms do not face unintended tax implications. While SIFMA has supported two-year extensions of the provisions, it urges making the provisions permanent to provide legal certainty to the financial services firms doing business in New York.
Status:
An extension of the GLB transition provision was included in the 2007-08 New York State Budget, which was enacted in April. This extension will expire on December 31, 2009.
