POPULATION: 19,570,261
LABOR FORCE: 9,615,300
RIGHT TO WORK: No
TRADITIONAL INDUSTRIES: Manufacturing, transportation, agriculture, tourism
EXPANDING INDUSTRIES: Biomedical/biotech; green/clean tech; communications and media services; distribution; fashion, apparel, and textiles; food processing; industrial machinery and systems; information hardware and software; materials processing; optics and imaging; wood products
COLLEGE GRADUATES: (Age 25 and over) 32.4%
BASIC BUSINESS TAXES:
Corporate Income Tax: Qualified New York State manufacturers now pay a 0 percent corporate income tax rate.
New York State’s maximum corporate franchise (business income) tax rate for most corporate taxpayers is 7.1 percent (6.5 percent for tax years beginning Jan. 1, 2016). In 2015, corporations pay the highest tax computed on the following three alternative bases:
(1) a tax of 7.1 percent (6.5 percent for tax years beginning Jan. 1, 2016) on allocated business income (0 percent for qualified New York State manufacturers);
(2) a tax of 0.15 percent (0.136 percent for qualified New York State manufacturers) on allocated business capital (the maximum for qualified New York State manufacturers is $350,000, and the maximum for nonmanufacturers is $5 million [NOTE: the capital base is being phased out through 2021]); and
(3) a separate minimum tax at fixed dollar amounts, based on New York State receipts, ranging from $25 to $200,000 (the maximum fixed dollar minimum tax for qualified New York State manufacturers is $4,385 and is being reduced to $3,750 by tax year 2018).
Sales and Use Tax: NYS imposes a sales/use tax at the rate of 4 percent. Counties and cities may impose a sales tax up to a combined maximum of 3 percent within their respective territorial limits. A number of localities have been authorized to impose tax at additional rates (i.e., in excess of 3 percent), ranging from 1/4 percent to 1 5/8 percent. An additional 0.375 percent sales tax rate is charged in counties located within the Metropolitan Commuter Transportation District (12-county area in the lower Hudson Valley, New York City, and Long Island). Manufacturing, aircraft, and IDA exemptions exist.
Property Tax: New York State does not levy real property taxes; however, property taxes are levied by local governments. The counties, which are the principal taxing local units, operate under the town system, so that much of the actual administration and collection of taxes is accomplished at the municipal level. Counties, cities, towns, villages, and school and special districts all have independent powers of taxation. Rates vary according to location.
BUSINESS INCENTIVES:
START-UP NY
New York State Economic Development Fund
Excelsior Jobs Program
Manufacturing Assistance Program
Environmental Investment Program
Linked Deposit Program
Minority- and women-owned business development
Small Business Revolving Loan Fund
Emerging technology tax credits
Film and TV production tax credits
Investment Tax Credit
Economic Transformation Program
Innovate NY
