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Department of Taxation and Finance

2011 Rule reviews

Pursuant to section 207 of the State Administrative Procedure Act (SAPA) the Department of Taxation and Finance must review all rules, with certain exceptions, adopted on or after January 1, 1997, after five years, and, thereafter, at five year intervals. In 2011, the Department must review rules that were adopted during 2001 and 2006 to determine whether these rules should be retained as written or modified. This rule review includes rules of the State Board of Real Property Services whose rule making functions were transferred to the Department by the Laws of 2010, chapter 56, Part W. Accordingly, the Department intends to review the following rules during 2011, and invites written comments on the continuation or modification of these rules in order to assist the Department in the required review. We will consider comments that are received by February 22, 2011. 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 Part 530 (Amount to be Collected, formerly entitled Tax Rates)

20 NYCRR Part 530 (Amount to be Collected, formerly entitled Tax Rates) Filed June 12, 2001; published June 27, 2001; effective December 1, 2001. Need: This regulation was amended to repeal the tax rates and bracket schedules which indicated the amount of sales tax to be collected for various amounts of sales prices and tax rates, and replace them with standard methodology for rounding the amount of sales tax to be collected to the nearest penny. This rule was previously reviewed as part of the Department's 2006 Rule Review published in the State Register on January 4, 2006. As a result of that review of the 2001 rule, a Rule Review notice indicating that it would be continued without modification was published in the State Register on October 25, 2006. Subsequent to the 2006 statutory five-year review, amendments to update and simplify Part 530 of the Sales and Use Taxes Regulations by eliminating obsolete and unnecessary tax rates that are set by and pursuant to the Tax Law were adopted on February 14, 2007. (See TAF-47-06-00012-A; filed February 14, 2007; published March 7, 2007; effective March 7, 2007.) However, certain provisions of the 2001 rule were not amended in 2007 and, therefore, remain subject to review in 2011. Legal Basis: Tax Law sections 171, subd. First; 1132(b); 1142(1) and (8); and 1250 (not subdivided). (TAF-17-01-00002-A) 

20 NYCRR Part 2402 (Taxpayer Record Retention Formats)

20 NYCRR Part 2402 (Taxpayer Record Retention Formats) Filed May 22, 2001; published June 6, 2001; effective May 22, 2001, and applicable to the retention of taxpayer records on and after June 1, 2001 (emergency adoption). Filed July 24, 2001; published/effective August 8, 2001 (permanent adoption). Need: The Department's Procedural Regulations were amended to add a new Part 2402 to ensure timely compliance with the record retention and electronic record-keeping provisions of the state Electronic Signatures and Records Act (State Technology Law, section 301 et seq.) and the federal Electronic Signatures in Global and National Commerce Act (15 USCS, section 7001 et seq.). Part 2402 provides for the voluntary use of electronic records by taxpayers and prescribes general standards applicable to the retention of electronic records that ensure that taxpayers who exercise this option are complying with their responsibilities under the Tax Law and under other applicable laws that are administered by the Commissioner. This rule was previously reviewed as part of the Department's 2006 Rule Review published in the State Register on January 4, 2006. As a result of that review of the 2001 rule, changes to section 2402.1 of the regulations were adopted to reflect the renumbering of a citation to the Electronic Signatures and Records Act, and to update references to enabling state and federal legislation. (See TAF-19-06-00022-A; filed July 6, 2006; published/effective July 26, 2006.) The remaining amendments from the 2001 rule remain subject to review in 2011. Legal Basis: Tax Law, section 171, subds. First and Fourteenth. (TAF-23-01-00043-A) 

20 NYCRR Section 528.12 (The flags of the United States of America and the State of New York)

20 NYCRR Section 528.12 (The flags of the United States of America and the State of New York) Filed August 14, 2001; published August 29, 2001; effective September 1, 2001. Need: This regulation was amended to update the definition of the term "flag" and, accordingly, to exempt from State and local sales and use taxes flags that are made from materials in addition to cloth and those accessories that are used solely for the display of the flag and are sold with the flag for a single charge. This rule was previously reviewed as part of the Department's 2006 Rule Review published in the State Register on January 4, 2006. As a result of that review of the 2001 rule, a Rule Review notice indicating that it would be continued without modification was published in the State register on April 26, 2006. Legal Basis: Tax Law sections 171, subd. First; 1142(1) and (8); and 1250 (not subdivided). (TAF-26-01-00017-A)

9 NYCRR Parts 186 and 191 (Procedures for Market Value Surveys)

9 NYCRR Parts 186 and 191 (Procedures for Market Value Surveys) Filed April 24, 2001, published/effective May 9, 2001. Need: This rule made various revisions to the procedures for determining State equalization rates with the goal of providing for more accurate and timely measurements of relative municipal full value for use in calculating the rates. This rule was previously reviewed as part of the State Board of Real Property Services' 2006 Rule Review published in the State Register on January 4, 2006. As a result of that review of the 2001 rule, a Rule Review notice indicating that it would be continued without modification was published in the State Register on September 20, 2006. Legal Basis: Real Property Tax Law sections 202(1)(l) and 1202. (RPS-08-01-00004-A)

9 NYCRR Part 197 (Reports by Special Franchise Owners and Review of Special Franchise Complaints)

9 NYCRR Part 197 (Reports by Special Franchise Owners and Review of Special Franchise Complaints) Filed January 16, 2001, published/effective January 31, 2001. Need: This rule simplified the reporting requirements to which special franchise owners were subject, and provided a more specific and consistent structure for the filing of complaints. This rule was previously reviewed as part of the State Board of Real Property Services' 2006 Rule Review published in the State Register on January 4, 2006. As a result of that review of the 2001 rule, a Rule Review notice indicating that it would be continued without modification was published in the State Register on September 20, 2006. Legal Basis: Real Property Tax Law sections 202(1)(l), 600, 604 and 612. (RPS-43-01-00007-A)

20 NYCRR Part 2399 (Timely Electronic Filing and Electronic Paying)

20 NYCRR Part 2399 (Timely Electronic Filing and Electronic Paying) Filed February 16, 2006; published/effective March 8, 2006. Need: This rule updated the Department's Procedural Regulations concerning the timeliness of documents and payments that are filed and remitted by electronic means. Legal Basis: Tax Law, section171, subds. First and Fourteenth. (TAF 52 05-00018-A)

20 NYCRR Section 1-2.6 and Parts 3 and 4 (Taxation of corporate partners)

20 NYCRR Section 1-2.6 and Parts 3 and 4 (Taxation of corporate partners) Filed October 17, 2006; published/effective November 1, 2006 and applicable to taxable years beginning on or after January 1, 2007. Need: This rule provided guidance with regard to the computation of the business corporation franchise tax imposed by Article 9-A of the Tax Law for corporations that are partners in partnerships or that are members of limited liability companies that are treated as partnerships under Article 9-A. Legal Basis: Tax Law, sections 171, subd. First and 1096(a). (TAF-34-06-00005-A)

20 NYCRR Part 2500 (Reportable Transactions)

20 NYCRR Part 2500 (Reportable Transactions) Filed December 12, 2006; published/effective December 27, 2006. Need: The Department's Procedural Regulations were amended to add a new Part 2500 to provide a definition of a New York reportable transaction and the disclosure requirements for participation in a New York reportable transaction. Under Part 2500, a New York reportable transaction is a transaction that has the potential to be a tax avoidance transaction under articles 9, 9-A, 22, 32, or 33 of the Tax Law. Legal Basis: Tax Law, sections 25(a)(3); 171; subd. First; 697(a); and 1096(a). (TAF-43-06-00006-A)

20 NYCRR Parts 132 (New York Adjusted Gross Income of a Nonresident Individual) and 154 (Change of Resident Status During Year)

20 NYCRR Parts 132 (New York Adjusted Gross Income of a Nonresident Individual) and 154 (Change of Resident Status During Year) Filed December 12, 2006; published/effective December 27, 2006, and shall apply to taxable years beginning on or after January 1, 2006. Need: This rule complied with the statutory directive of Tax Law sections 631(g) and 638(c), as amended by Chapter 62 of the Laws of 2006, requiring the Department to propose regulations within 180 days of enactment to provide allocation rules for certain nonresidents and part-year residents who were granted stock options, stock appreciation rights or restricted stock. Legal Basis: Tax Law, sections 171, subd. First; 631(g); 638(c); 697(a); and L. 2006, ch. 62, part N, section 3. (TAF-43-06-00007-A)

9 NYCRR Subpart 188-8 (Training Requirements for New York City Assessors)

9 NYCRR Subpart 188-8 (Training Requirements for New York City Assessors) Filed November 20, 2006, published/effective December 6, 2006. Need: This rule implemented the program of training, certification and minimum qualification standards for New York City Assessors that was established by L.2005, ch.139. Legal Basis: Real Property Tax Law sections 202(1)(l) and 350-364. (RPS-27-06-00006-A)

9 NYCRR Section 190-3.2 (RPS License Fees)

9 NYCRR Section 190-3.2 (RPS License Fees) Filed November 20, 2006, published/effective December 6, 2006. Need: This rule revised the annual license fees payable by users of the Real Property System (RPS). Legal Basis: Real Property Tax Law section 202(1)(l) and State Finance Law section 97-kk. (RPS-38-06-00001-A)

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