The State of New York is reducing so called “nuisance fees” for certain types of business operating in New York. The state of New York this year will stop collecting 57 different fees charged by various state agencies. Gov. Andrew M. Cuomo this month announced the repeal of the fees as part of the 2015-16 state budget. Approximately $3 million will be saved by businesses and individuals annually, according to state officials.
Removing the Red Tape
“These nuisance fees created unnecessary red tape and placed an undue burden on businesses, while at the same time resulted in no significant revenues for the state,” Cuomo said in the announcement. “This action will eliminate unnecessary costs and paperwork, helping to allow these businesses to reinvest and grow in New York.”
New York PEO Fees being reduced
Included in the fees be reduced are two fees pertaining to PEOs operating in the state of New York
- Professional Employer Organization Exemption Fee: A $250 annual fee to professional employer organizations that are already licensed in another state. The professional employer organization must have no office and less than 25 employees in New York to qualify for an exemption.
- Professional Employer Organization Initial Registration and Renewal Fees: A $1,000 initial registration fee to professional employer organizations to allow the leasing of employees to businesses in New York. An additional $500 renewal fee is charged annually.
While the fee reductions may not be considered significant, it will provide more encouragement for PEOs with operations primarily in other states to enter the New York markets. Long known as one of the highest taxed states in the USA, New York appears to be making efforts to change its image as a red tape and taxation jungle. That’s a good thing.
image courtesy of enkl22 @ flickr.