Skip to content

New York’s Proposed $10 Fee to Pay Your Taxes

1 min readBy: Joseph Bishop-Henchman

Governor David Paterson’s proposed New York state budget includes a new $10 fee for filing taxes on paper:

State budget officials believe the paper filing fee could generate $6.8 million during the next fiscal year.[…]

In 2008, 41 percent of state income taxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. filings were received in paper form — and could therefore be subject to the new fee. The plan would, however, waive the fee for people earning less than $15,000 annually, or $30,000 for couples.

State officials toss around a factoid of “93 percent” of all filings being electronic. But that includes people who fill out the forms, print them, and mail them in. The fee would apply to those filings.

We recently filed a brief with a California court arguing that a “fee” imposed on those who pay taxes, with the money used to fund tax collection activities, is actually a tax. It’s hard to say whether that would be the case in New York.

I was however interested to learn that the mailed returns in New York are processed not by state workers, but by workers at Bank of America.

Check out our fiscal fact on Paterson’s budget proposals, and past blog posts on New York.

Share this article

About the Author

Joseph Bishop-Henchman

Joseph Bishop-Henchman

Executive Vice President

Joe Bishop-Henchman is Executive Vice President at the Tax Foundation, where he analyzes state tax trends, constitutional issues, and tax law developments. Joe has testified or presented to officials in 36 states, testified before Congress six times, and has written over 75 major studies on tax policy.