#Tal Rappleyea - Municipal Law

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New York Tax Law Change

There have been a series of changes that have taken place with taxes in the state of New York, and the majority of these changes have had influence by the governor of New York State, Andrew Cuomo, along with with other fellow NY legislators. In March of last year, the two parties reached an agreement on the budget for the 2018/2019 year, and this was implemented on March 30th. Here are some of the key changes.

Employer Compensation Expense Tax

This bill in the budget is going to create a new ECET, or employer compensation expense tax. If any employers choose to opt in this tax, they will pay a 5% tax on their annual payroll for employees that make more than $40,000 per year. This is set to be phased at a range of over three years at progressive rates of 1.5%, 3%, and 5%. This began on January 1st and the first election date for employers who wanted to opt-in was December 1, 2018.

Charitable Gifts Trust Fund

This particular budget bill will create a new CGTF, or Charitable Gifts Trust Fund that will allow taxpayers to give towards the state’s provision of education and healthcare. These charitable trusts will qualify under section 501(c)(3) of the Internal Revenue Code, which will also allow taxpayers to make a charitable deduction for contributed amounts. In terms of why this was initiated, it’s an effort for taxpayers in the state of New York to pay their personal income tax without being a victim of the $10,000 of SALT deductions. Now, contributions can be made to Health Research Inc., the Research Foundation of the City University of New York and the State University of New York Impact Foundation.

Property Taxes

Starting on December 21, 2018, the bill will provide taxpayers with a way to pay real property taxes while avoiding the $10,000 cap. School districts will have the ability to receive monetary donations from those funds and New York City counties can establish a Reserve Fund to receive monetary donations. To claim the credit, property owners must present it to the collecting officer before the last day taxes are paid without penalty. Taxpayers who had made charitable contributions can take deductions in personal income tax.

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Recent Changes to the New York Bar Exam

For a long time, New York had its own unique bar exam that many found challenging to deal with. However, the state has recently switched to a more uniform bar exam that is already in use in 15 other states. This will hopefully streamline the process a little and make it easier to prepare for. People planning on taking the New York bar exam soon need to be aware of these important changes.

Scoring Changes

Of course, the most obvious change people will encounter is that scoring is no longer done the same way. Initially, there was a Multistate Bar Examination that counted for 40 percent, a New York Law Multiple Choice that counted for 10 percent and a written portion that counted for 50 percent of the score. This is going to change now to a written portion worth 30 percent, a Multistate Bar Examination worth 50 percent, and a Multistate Performance Test worth 20 percent.

New York Law Is Removed

New York Bar exams will no longer require people to be tested on New York Law as a separate subject. This is helpful because students do not have to memorize multiple sets of laws just to pass the bar. Instead, the test on New York state law will be held separately after a person successfully passes the bar.

Test Scheduling Alterations

Due to the changes in the test material, the New York Board of Law Examiners has started using a new schedule. People start by doing two Multistate Test Performances, then they get a small break before going into the essay portion. The following day, there will be three hours to do 100 multiple choice questions, a break of an hour and a half, and then 100 more multiple choice questions.

Reductions to Essay Subjects

Those who struggled with essays before can breathe a sigh of relief. Instead of having 22 potential essay subjects to study, the new test only has 14 essay subjects to pick from. In addition to having less essay material to study, people also have less time to do the essays. Each one of the six essays has a 30-minute time limit now. Due to the shorter time limit, students will be expected to write more concise essays.

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For many people, owning a home is a major component of the American dream. It was long thought to be one of the best financial decisions a person could make. Recently, financial experts have begun to question if that is still true. Whether renting or buying makes more sense depends on many different variables. 

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Insights Into Zoning Laws

Zoning is a necessity of land development, and while it doesn’t always work to the benefit of the tenants, it can help local governments create a more orderly structure for cities and mitigate major risks like crime, pollution, and overcrowded streets. If you’re interested in starting your own business or looking to get involved in real estate investment, you should understand the fundamentals of zoning, but the basics are fortunately not that complicated. While zoning laws and regulations vary according to the municipality in question, most zoning regions fall into categories for residential, industrial, and commercial use. These allow cities and towns to help create a more orderly flow to their neighborhoods, but there are a number of complications that can affect the zoning regulations of an area. The location of utility lines is one of the most practical considerations to account for when looking at zoning regulations, but many cities put other standards in place to protect the ambiance, design, and cultural heritage of an area. These can include limitations on everything from architectural design to size and height to the number of rooms allowed. Many zoning regulations will also limit the type and size of additions allowed in a particular zone. As a result, it’s important to understand the zoning requirements before moving into an area. Even if the area you’re moving to is zoned for the type of business or residence you want, there could be limitations that affect what you want to do, and it’s critical to consider potential growth or development of your property with zoning regulations in mind. If you’re planning on starting a brewery, for instance, you’ll have to consider whether space is zoned for commercial use if you want to add a bar into the property and keep in mind spacing limitations if you have any intentions of expanding. There’s an understandable amount of push and pull regarding zoning regulations. Local government sees zoning regulations as a means to curate the development of their city, while business owners and residents can sometimes see it as an infringement on their rights. The courts have typically ruled that zoning regulations need to be concrete and serve the general benefit of the community, but there’s a lot of gray area regarding what that actually means. Regardless of your intents, you’ll want to carefully consider the zoning regulations before investing in a property. If you have any questions about what the regulations actually mean, consider consulting with an attorney who specializes in land use so you won’t be surprised when zoning regulations get in the way of your ambitions.

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Know your zoning laws before you open your home-based business to avoid fines and more. 

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