Policy Update: NYS Budget Agreement

Policy Update

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POLICY UPDATE: NYS BUDGET AGREEMENT

As you likely know, last week, the New York State Legislature and Governor came to an agreement on the state’s 2020 budget. The budget totals $175 billion and includes several non-fiscal policy provisions. Tech:NYC was closely following the budget negotiations and we were up in Albany several times to meet with legislators about the budget. At the end of the day, the final budget agreement was a mix of the good and the not so good. Here are some notable provisions and policies, tech and otherwise: 

1. Congestion Pricing - After years of failed attempts, congestion pricing finally passed. Congestion pricing is aimed at decreasing traffic and funding (much needed) improvements to our public transit system. Tech:NYC was part of the broad coalition of business and transit advocates that worked toward this great outcome.  Starting in 2021, cars entering Manhattan below 60th Street will be charged a congestion fee. The fee and any exemptions will be determined by a newly created “traffic mobility review board,” and the actual technology utilized for assessing the fee will be determined by the Triborough Bridge and Tunnel Authority.  The revenue from congestion pricing will be dedicated to a MTA capital lockbox, with 20% going to commuter rails and 80% to New York City Transit. 

2. Marketplace Provider Tax -  The budget includes legislation that will require Internet marketplaces (i.e. eBay, Amazon, Etsy) to calculate, collect, remit sales tax on behalf of sellers using their platforms to transact with New York based customers. In the wake of the Supreme Court Wayfair decision, more than 13 states have passed legislation mandating marketplaces collect sales tax on these types of transactions.  While Tech:NYC was not wholesale opposed to the marketplace tax, we did advocate for changes which would have streamlined compliance. Unfortunately, the final legislation is unnecessarily burdensome, as it fails to establish clear alternatives to individual certificates of collection, it doesn’t provide protection against class action suits, doesn’t account for local delivery logistics, and goes into effect in June of 2019 — which provides an incredibly short timeframe for marketplaces to develop their methods of compliance.  Notably, a portion of the tax revenue generated by this provision will be dedicated to funding NYC transit.

3. Employee Training Incentive Program (ETIP) - In 2015 Governor Cuomo announced NYS would begin providing tax credits to offset the cost of worker training and upskilling in certain industries. The credit is equal to 50% of training costs (up to $10,000 per employee). In this year’s state budget, the tax credit has been expanded to the field of “software development.” *If your company is interested in pursuing this opportunity, let us know and we can discuss further.

4. Net Neutrality - In 2018 the Governor issued an executive order directing NYS agencies to only contract with internet service providers abiding by net neutrality standards. The budget included a provision that codified this executive order into state law. However, this provision was not included in the final budget agreement.  

5. Electric Scooter and Bikes - The Governor’s proposed budget also included legislation that would create a legal framework for ebikes/escooters, and give cities the authority to permit or prohibit their usage. After some legislators raised concerns, this legislation was omitted from the budget, leaving these modes of transportation in unclear legal territory.   

6. Plastic Bag Ban - The budget included legislation that bans most stores from providing customers single-use plastic bags. The ban will go into effect in March 2019.