State & Local Tax Impacts of COVID-19 for New York – 2020

Thoughtware Alert Published: Dec 11, 2020 | Updated: May 05, 2021
SALT GOV COVID TW - 1

Information current as of December 31, 2020.

COVID-19 has changed life across the globe. Many taxing jurisdictions are taking mitigating actions to create social distance and aid taxpayers. The following is a running list of actions by jurisdiction, which generally result in additional time to file and/or pay. Further, many jurisdictions have closed their offices to in-person use by taxpayers and suspended their audit and administrative functions. This alert doesn’t cover similar waivers from local-level taxing authorities. These developments continue to quickly evolve; check with your BKD Trusted Advisor or visit our COVID-19 Resource Center for current information as needed.

Information Specific to New York

  • New York will follow the IRS in waiving penalties and interest for late tax returns and payments filed by July 15 and also will waive penalties and interest on sales tax collections due March 20 (the sales tax deadline will stand, but penalties and interest won’t be charged).
    • Gov. Andrew M. Cuomo and State Budget Director Robert F. Mujica announcement, March 20, 2020.
  • New York will abate interest and penalties on sales tax collections due March 20, extending these filings an extra 60 days.
    • Department of Taxation and Finance Notice No. N-20-1, March 20, 2020.
  • New York extended the due date to July 15, 2020, for personal income tax and corporation tax returns and payments originally due April 15, 2020. The extension applies to returns for individuals, fiduciaries, and corporations taxable under Tax Law Articles 9, 9-A and 33. Tax year 2019 returns due on April 15, 2020, and related payments of tax or installments of tax, including installments of estimated taxes for the 2020 tax year, will not be subject to any failure to file, failure to pay, late payment, or underpayment penalties or interest if filed and paid by July 15, 2020. No extension is provided in the notice for the payment or deposit of any other type of state tax, or for the filing of any state information return. In addition, remittance of income tax withheld by employers required to be made using Form NYS-1, Return of Tax Withheld, must be made on time.
    • Department of Taxation and Finance Notice N-20-2, March 2020.
  • New York has further extended sales and use tax returns and payments originally due by March 20 to June 22, with full waiver of penalty and interest.
  • The order also extends the period for paying property taxes without interest or penalties by 21 days in certain localities; suspends penalties for late payment of county, town, county district and town district property taxes and assessment in Westchester County; and extends to June 1 the deadline to pay school taxes on real estate in Nassau County without interest or penalty.
    • Governor’s Executive Order No. 202.32 and New York Department of Taxation and Finance Notice N-20-6, May 21, 2020.
  • New York has extended the temporary suspension and modification of laws due to COVID-19 for property tax purposes to include extending the period for paying taxes without interest or penalties by 21 days in certain localities that have requested an extension and retroactively extending the 21-day period for paying taxes without interest or penalties that were due by April 1 in the village of Thomaston, in Nassau County.
    • Governor’s Executive Order No. 202.36, June 2, 2020.
  • New York allows municipalities to extend the deadline for the filing of applications and renewal applications for real property tax abatement or exemption programs to July 15, 2020. The governing body of such municipality must adopt a local law, ordinance or resolution to extend the deadline.
    • New York S.B. 8122 (Laws 2020), effective June 8, 2020.
  • New York has expanded the authority of the Commissioner of Taxation and Finance to 1) abate late filing and payment penalties and interest for a period up to 100 days for taxpayers who were required to file returns and remit sales and use taxes by March 20 for the sales tax quarterly period that ended February 29; 2) allow real property tax assessment rolls to be filed up to 30 days late; 3) allow assessment complaints to be heard by tax assessing units at a date 21 days after the filing of the tentative roll; and 4) allow Boards of Assessment Review to hear complaints remotely.
    • Governor’s Executive Order No. 202.44, June 21, 2020.
  • New York has extended the temporary suspension and modification of laws due to COVID-19 for property tax purposes to include extending the period for paying taxes without interest or penalties by an additional 21 days in certain localities that have requested an extension and to permit the city of Buffalo to waive the additions prescribed therein on unpaid 2019-2020 city taxes for the months of April, May and June.
    • Governor’s Executive Order No. 202.45, June 26, 2020.
  • New York has extended the temporary suspension and modification of laws due to COVID-19 for property tax purposes through August 12, 2020. In addition, the state clarified that any extension of the period for paying property taxes without interest or penalties (pursuant to Real Property Tax Law Section 925-a) is no longer in effect.
    • Governor's Executive Order No. 202.51, July 13, 2020.
  • New York has extended the temporary suspension and modification of laws due to COVID-19 for sales and use tax purposes until August 20, 2020, as previously stated in Executive Orders 202.22 through 202.26 and including 202.32. The modification doesn’t apply to the provision authorizing the extension of payment of sales and use taxes without penalty by the Commissioner of Tax and Finance.
    • Governor's Executive Order No. 202.53, July 21, 2020.
  • New York has extended the temporary suspension and modification of laws due to COVID-19 for property tax purposes, including changing the deadline 1) for the county assessor to complete the extension of taxes for 2020–2021 school district purposes and the county legislature to levy such taxes to October 16 from September 18; 2) for the county to deliver to the town tax receivers the 2020–2021 school district assessment roll and warrants to October 26 from September 28; 3) that school district taxes for the first half of 2020–2021 are due and payable to November 1 from October 1; and 4) by which the first half of 2020–2021 school district taxes may be paid without interest or penalties to December 10 from November 10, with payments made after such date to be subject to interest and penalties beginning on December 11. 
    • Governor's Executive Order No. 202.55, August 5, 2020.
  • New York has further extended the suspensions and modifications of laws due to COVID-19 as specified in prior executive orders through September 11 for corporate income, individual income, trust income, sales and use, excise, estate, and property taxes. This includes provisions contained in Executive Orders 202.31, 202.41, 202.42, 202.43, 202.51 and 202.52.
    • Governor’s Executive Order No. 202.56, August 12, 2020. 
  • New York extended the temporary suspension and modification of property tax laws due to COVID-19 through September 27, 2020. This includes continuing Executive Order 202.54 and ending the extension of the period to pay property taxes without interest or penalties. 
    • Governor's Executive Order No. 202.59, August 28, 2020. 
  • New York has further extended the suspensions and modifications of laws due to COVID-19 as specified in prior executive orders through October 3 for local tax lien sales to give debtors more time to pay off debt or enter into payment plans during the pandemic. Note this supersedes New York City Mayor Bill de Blasio’s announcement on the same day that he postponed the city’s tax lien sale to September 25. 
    • Governor’s Executive Order No. 202.60, September 4, 2020. 
  • New York continued the suspensions and modifications delineated in prior executive orders for an additional 30 days through November 5, 2020, for corporate income, individual income, property, sales and use, excise, trust income, and estate taxes. 
    • Governor’s Executive Order No. 202.68, October 6, 2020.
  • New York continued the suspensions and modifications delineated in prior executive orders through November 13, 2020, for corporate income, individual income, trust income, property, sales and use, excise, and estate tax purposes. 
    • Governor’s Executive Order No. 202.69, October 14, 2020.
  • New York provided guidance on telecommuters due to COVID-19. For nonresidents who have a primary office in the state but are telecommuting from outside the state due to the pandemic, unless an employer has a “bona fide” office in the nonresident's state, those days will be viewed as days worked in New York requiring the filing and payment of New York income taxes. 
    • New York Department of Taxation and Finance FAQs, October 19, 2020.
  • New York continued the suspensions and modifications delineated in prior executive orders through November 19, 2020, for property tax purposes. 
    • Governor’s Executive Order No. 202.70, October 20, 2020.
  • New York has extended the filing and payment date of quarterly and monthly sales and use tax filings and remittances with an original due date of December 21, 2020, to March 22, 2021. The relief is available to sales tax vendors principally engaged in business as a restaurant or other food service establishment in New York City or a designated “orange zone” that was required to suspend indoor dining due to certain executive orders. The relief isn’t available to participants in the PrompTax program or to retailers or groceries operating restaurants or food services within their stores.
    • New York Department of Taxation and Finance Notice N-20-12, December 18, 2020.
  • Prevents local governments from engaging in certain tax lien sales or foreclosures until May 1, 2021, and further extends the Senior Citizens’ Homeowner Exemption and the Disabled Homeowner Exemption to the 2021 assessment roll (at the same level) without requiring recertification.
    • S.B. 9114 (c. 381), Laws 2020, effective December 28, 2020.

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