Published: Tue, January 16, 2018
Money | By Armando Alvarado

Gov. Cuomo says state will look into impact of legal marijuana

Gov. Cuomo says state will look into impact of legal marijuana

Revenues from the ongoing Wall Street rally will be a "bright spot" heading into potentially hard state budget talks complicated by the federal tax overhaul, but NY government leaders shouldn't count on stock market gains to cover a deficit projected to be in the billions of dollars, the state's top fiscal officer said Tuesday.

On Jan. 16, 2018, Gov. Andrew Cuomo released his $168 billion budget for the 2018-19 fiscal year. Health insurers got a 40 percent tax cut windfall under the new federal tax law while Washington is shifting more health care costs onto states like NY, he said.

Cuomo said the state is considering either moving from an income tax to a payroll tax or creating a charitable contribution program so homeowners can still fully deduct their state and local taxes.

QC Weather Service Totals Snow Fall
Subzero temperatures and dangerously cold wind chill values will greet early-risers on Tuesday in Topeka and northeast Kansas. Monday night's dose of winter weather could make for risky driving conditions, the National Weather Service warns.

Payroll tax: Cuomo is considering switching NY from an income-tax system to a payroll-tax system to skirt new federal limits on tax deductions. Cuomo reiterated that $836 million in short-term rescue funding already pledged to the MTA should be 50 percent paid by the state and 50 percent paid by New York City.

Cuomo's proposal also includes a variety of "revenue actions" - tax and fee increases. New Jersey may legalize it. The Massachusetts Department of Revenue estimates that taxes on recreational marijuana could rake in between $44 million and $82 million in the next fiscal year. "If it was legalized in New Jersey and legal in MA and the federal government allowed it to go ahead, what would that do to NY, which is right in the middle?" "It would be nice to have some facts", Cuomo said.

The Democratic governor said the changes are being considered because the federal tax code last month limits state and local tax deductions to $10,000 a year. Gov. Phil Murphy, who campaigned on legalizing marijuana, has said he'd sign legislation legalizing the drug if a bill is passed by the state Legislature. "It has to be fair to all people and all industries", he said.

Like this: