New York, new year, new laws

Written By Unknown on Selasa, 25 Desember 2012 | 20.49

ALBANY — New state laws banning the sale of electronic cigarettes to minors and giving businesses new tax exemptions for installing solar-energy systems are set to take effect next week.

In 2013, New Yorkers will also calculate state income taxes owed based on rates that took effect in 2012, which should have already been reflected in payroll deductions. Meanwhile, taxable income amounts could change based on a cost-of-living index adjustment in the law for the next two years.

The ban on sales to those under 18 of e-cigarettes — battery-powered devices used to inhale vaporized liquid nicotine instead of tobacco smoke — takes effect Jan. 1. Although initially sold as an alternative to harmful tobacco, they come in candy flavors appealing to youths, critics note.

State Sen. Owen Johnson (R-LI) said the law is necessary to protect children because e-cigarettes "have not been proven to be safe for use at any age."

Commercial solar units will become exempt from the 4 percent state sales and use tax starting next week. The law lets cities and counties do the same. It follows the 2005 tax exemption for residential systems.

The income-tax law enacted in late 2011 lowered the rate in 2012 for a married couple filing jointly and earning $40,000 to $150,000 from 6.85 percent to 6.45 percent.Department spokesman Cary Ziter said those brackets are posted in mid-January.

For those earning $150,000 to $300,000, it lowered the rate from 6.85 percent to 6.65 percent.

At the same time, surcharges on higher tax brackets expired this year. Those earning $300,000 to $2 million, who had been paying rates from 7.85 to 8.97 percent, saw their rate drop back to the permanent rate of 6.85 percent.

Those making more than $2 million yearly, who had been paying 8.97 percent with the surcharge, had their rate changed to 8.82 percent.

According to the Department of Taxation and Finance, for 2013 and 2014 the income tax rates will remain the same, though dollar amounts in the tax tables will be indexed by a cost-of-living percentage adjustment if it's applicable.


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