On August 9, 2023, the New York State Department of Taxation and Finance (Department) submitted its draft corporate franchise tax regulations for publication in the State Register – a significant and necessary step in the State Administrative Procedure Act (SAPA) process to formally adopt regulations related to the sweeping reform of the state’s Corporation Franchise Tax that was enacted nearly a decade ago. 

There have been a substantial number of drafts of various rules that have been presented for review and comment by the Department since the statutory reform took effect in 2015. Finally, in April and August of last year, the Department posted what it called its “final draft” set of regulations (some of which were subsequently amended), and indicated that it would be initiating the formal SAPA process in late 2022. Last year came and went without the Department’s initiation of the formal rulemaking process, so the New York taxpayer community had been eagerly awaiting this announcement regarding finalizing the regulations.

Under the SAPA process, a comment period of 60 days is required after notice of the proposed rulemaking is published in the State Register. To the extent members of the New York taxpayer community have additional comments on the draft regulations, now is the time to submit them.

The Eversheds Sutherland SALT team will continue to monitor the regulatory process, and will keep you apprised of all relevant developments.

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