Pursuant to new regulations signed by the New York State Commissioner of Taxation and Finance on December 31, 2015, and adopted on an emergency basis, the Metropolitan Transportation Business Tax Surcharge is to be computed at the rate of 28% for tax years beginning on or after January 1, 2016 and before January 1, 2017.
The Metropolitan Transportation Business Tax Surcharge rate in effect for taxable years beginning January 1, 2015 and before January 1, 2016 was 25.6%.
Since the rate after January 1, 2016 is 28%, unless changed by the Commissioner, this is the rate that should be used for cash flow, estimates, and current and deferred tax purposes for the 2016 tax year.
C Corporation filers in New York State will need to be aware of this change. Deferred tax assets may have to be adjusted for the new tax rate, or at least considered, when tax provisions are completed.
Should you have any questions on this change in rates or how your estimated taxes or deferred taxes will be effected, please contact your Marcum Tax Advisor.