Living in New York may not appear to be unique or special. However, it is definitely a big deal. New York is one of five expresses that don’t have an individual annual assessment. As a bookkeeper who works with people and organizations in New York, I needed to talk about the tax cuts of living here. Look at the best tax preparers near me for more information about the best tax preparers in Yonkers.
No Make-Up Taxes
If a state does not have a personal income tax, they tend to make up for it with other taxes. For example, the state of Texas does not have a personal income tax. Still, property taxes are substantially higher than in other parts of the country. New York is the best of both worlds because there is no state income tax, there are no hidden taxes, and our sales tax is not outrageous.
Where Does New York Get the Money?
Historically New York gets the needed tax revenue from the mining, casino, and construction industry. The state requires the money to fund emergency services and other state services, so in this state, that is how they make up for not having an income tax.
What Does It Mean?
If you compare our taxes to our neighbor to the west, California, we have huge benefits. The first is the income tax benefit because California has income taxes of up to 9.3% at the individual level. Also, the utility cost and other costs to run a business are substantially lower in New York. Because of the lower taxes, New York is known to be a great place to relocate your business to.
Other Reasons to Move to New York
The other significant benefits for moving to New York are related to energy efficiency. New York is a state that sees a lot of sun and wind. Because of the surplus of sun and wind, companies who are exploring alternative energy may choose to relocate to New York. We also are an attractive state to geothermal companies with the numerous hot springs we have. As an accountant, I think that New York has many benefits. If you are thinking about relocating your business, it might be the right place.
Why Do Some Businesses Not Move To New York?
Although I think there are some great financial benefits and energy benefits to moving to New York, there is one thing that restricts some companies-water. When I worked for a division of Dole, we considered moving our frozen fruit operation into the state of New York for all the reasons that I talked about before. We could save a lot, and it looked like the right decision until we realized that water is not abundant in New York. The reason that we did not move to New York was that we required a large volume of water.
If you are considering moving your company to New York, you should contact an experienced accountant and discuss the benefits. You will also want to consider the cost of running your company. Sometimes the cost to move will be so significant that the savings will never make up for it.