Budget & Taxes

in committee · New York · Senate Jan 7, 2026

S 8475: Eliminates nonprofit tax exemptions for entities engaged in political activity

This bill eliminates tax exemptions for nonprofits that engage in political campaign activities. It directly affects organizations that support or oppose candidates for public office, such as through contributions, advocacy ads, or using their resources to back specific candidates. Key provisions define "political campaign activity" broadly (including candidate endorsements and fundraising) but allow exceptions for non-partisan voter education, non-partisan research, and neutral candidate forums under strict conditions. Nonprofits must avoid any political campaigning to maintain tax-exempt status, with clear safe harbors for activities like non-partisan voter registration drives.

Topics ✓ Budget & TaxesSupports Budget & TaxesEliminates tax exemptions for political nonprofits, closing a tax loophole that allowed organizations to avoid taxes while engaging in political activities, aligning with tax fairness indicators.90% confidence

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in committee · New York · Senate Jan 7, 2026

S 6839: Increases the earned income tax credit

This bill increases New York State's Earned Income Tax Credit (EITC) rate to 45% for taxable years beginning in 2025, up from 30% previously. It directly affects low-to-moderate income working New York residents who qualify for the federal EITC. Key provisions include new payment options: taxpayers can choose a lump sum for credits under $200, quarterly payments for credits between $200-$2,400, or monthly payments for larger credits. The change applies to 2025 tax returns and includes a mechanism for the state to adjust the credit if federal funding changes impact the program.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases EITC rate to 45% for low-to-moderate income workers, providing tax relief and expanding state-funded credit for qualifying residents.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentIncreases EITC rate for low-income workers, directly boosting earnings and expanding tax benefits for employed residents.95% confidence

Sub-Topics Income Tax Tax Credits

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in committee · New York · Assembly Jan 7, 2026

A 3854: Relates to taxation of state owned land

Provides for the taxation of state owned land for all purposes, exclusive of improvements and in accordance with any payment in lieu of taxes agreement.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill mandates taxation of state-owned land, generating additional state revenue and promoting fiscal responsibility within budget management.90% confidence

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in committee · New York · Senate Jan 7, 2026

S 3353: Provides an exemption for the sale and installation of residential and commercial geothermal heat pump systems equipment

This bill (S 3353) exempts sales and installation of geothermal heat pump systems from state sales tax for both residential and commercial properties. It directly affects homeowners and businesses installing ground-source heat pumps that use the ground or groundwater for heating, cooling, or hot water. The key provision removes tax on equipment sales and installation services, excluding recreational facilities or equipment used as storage media. This policy change applies to systems meeting specific technical definitions in the tax law, without altering local tax options for municipalities.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill exempts geothermal equipment sales/installation from state sales tax, providing tax relief per support indicators.95% confidence ✓ EnergySupports EnergyExempts geothermal heat pump sales/installation from tax, directly promoting renewable energy adoption and reducing cost barriers for clean energy infrastructure.95% confidence ✓ EnvironmentSupports EnvironmentExempts geothermal systems from sales tax, promoting clean energy adoption and reducing fossil fuel dependence for heating/cooling92% confidence ✓ HousingSupports HousingExempts geothermal systems from sales tax for residential properties, lowering installation costs and reducing long-term energy expenses for homeowners, advancing affordable housing affordability.85% confidence

Sub-Topics Sales Tax Property Taxes

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in committee · New York · Assembly Jan 7, 2026

A 7440: Prohibits the transfer of unexpended moneys from funds receiving moneys from a dedicated fee into any other fund

This bill prohibits state agencies from moving leftover money from funds that collect dedicated fees (like tolls or permit fees) into other general funds. It requires these dedicated funds to stay separate from other state money and be used only for their specific purpose, preventing commingling or reallocation. The law directly affects state financial management by restricting how unspent revenue from targeted fee sources can be handled. This is a procedural change to state finance rules, not a new policy affecting citizens or programs. (3 sentences)

Topics ✓ Budget & TaxesSupports Budget & TaxesPrevents commingling of dedicated fee funds, ensuring fiscal responsibility by mandating use for specific purposes, aligning with budget management best practices.95% confidence ✓ TransportationSupports TransportationBill prevents diversion of dedicated transportation fee revenue (e.g., tolls) from specific funds, ensuring it stays allocated to transportation infrastructure projects rather than being commingled with general funds.92% confidence

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in committee · New York · Assembly Jan 7, 2026

A 657: Relates to increasing the state excise tax on cigarettes

This bill increases the state excise tax on cigarettes from $5.35 to $6.24 per 20 cigarettes (or $1.33 per 5 cigarettes for larger packages). It applies to most cigarette sales within the state, including retail purchases by consumers, but maintains existing exemptions for sales to qualified Native Americans on tribal reservations, the U.S. government, and military organizations. Sellers must affix tax stamps to cigarettes, and tribes may choose between two systems for handling tax-exempt sales to tribal members. The tax change takes effect immediately upon enactment.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill explicitly increases state excise tax revenue from cigarettes, directly generating additional budget funds through taxation.95% confidence

Sub-Topics Sales Tax

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in committee · New York · Senate Jan 7, 2026

S 26: Increases the enhanced STAR property tax deduction for tax for final assessment rolls to be completed after two thousand twenty-six and eliminates school taxes for certain persons eighty and older

Increases the enhanced STAR property tax deduction for tax for final assessment rolls to be completed after two thousand twenty-six; provides a total exemption from school taxes for certain persons eighty years of age and older.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases property tax deduction and exempts seniors 80+ from school taxes, providing direct tax relief to qualifying residents per bill language.95% confidence

Sub-Topics Property Tax

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in committee · New York · Senate Jan 7, 2026

S 5906: Relates to the exclusion of uncollectible taxes from the limitation on real estate taxes in New York city

This bill allows New York City and its counties to exclude estimated uncollectible real estate taxes from the annual tax limitation cap. It permits cities to set aside a reserve for taxes they anticipate won't be paid (due to inability or refusal to pay), reducing the amount counted toward the tax limit. The reserve specifically excludes abatements or exemptions authorized by existing tax laws (like those for seniors or historic properties). This change takes effect immediately upon enactment.

Topics ✓ Budget & TaxesSupports Budget & TaxesExcludes uncollectible taxes from tax cap, promoting fiscal management within budget constraints by allowing reserves for non-collectible amounts.92% confidence

Sub-Topics Tax Incentives

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in committee · New York · Assembly Jan 7, 2026

A 3794: Establishes a temporary moratorium on unfunded mandates and makes permanent the tax cap

Prohibits the enactment of unfunded mandates for a period of three years; instructs the state comptroller to conduct a report on the annual fiscal impact enacted state legislation has on the revenues and expenses of local municipalities.

Topics ✓ Budget & TaxesSupports Budget & TaxesMakes tax cap permanent and prohibits unfunded mandates, promoting fiscal responsibility per bill summary90% confidence

Sub-Topics Audits & Accountability

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in committee · New York · Senate Jan 7, 2026

S 5633: Provides motor fuel tax exemption for sales of diesel motor fuel used in vessels used directly in a business providing sport fishing opportunities

Provides motor fuel tax exemption for sales of diesel motor fuel used in vessels used directly in a business providing sport fishing opportunities for hire to the general public from the tax on petroleum businesses and from sales and compensating use taxes.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax exemption for sport fishing businesses, reducing tax burden on specified diesel sales per bill summary.90% confidence

Sub-Topics Tax Incentives

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