State Tax Department Releases Draft Article 9-A Nexus Regulations Under Corporate Tax Reform -

The New York State Department of Taxation and Finance has released draft amendments to the Article 9-A corporate franchise tax regulations to address significant changes relating to statutory nexus under New York State corporate tax reform legislation enacted in 2014 and 2015. Corporate Tax Reform Draft Regulations, N.Y.S. Dep’t of Taxation and Fin. The principal (but not the sole) thrust of the draft amendments is to address the adoption of economic nexus standards that went into effect for tax years beginning on or after January 1, 2015. Corporate tax reform introduced a “bright line” economic nexus standard for taxability for corporations deriving New York receipts of at least $1 million in the taxable year, regardless of whether the corporation itself does business, employs capital, or owns or leases property in the State.