New York Passes Budget, Without Hedge Fund Tax

Aug 4 2010 | 10:12am ET

The New York Legislature managed—finally—to pass the last piece of the state’s very late budget without increasing taxes on hedge fund managers who work in the state but live elsewhere.

The State Assembly agreed to drop the proposed tax, which would have raised $50 million to help close the state’s $9.2 billion budget deficit by subjecting the performance fees earned by out-of-state hedge fund managers to the state’s income tax. Late last night, the State Senate also approved the bill, finalizing the budget 125 days late.

Instead of taxing hedge funds, the bill will raise $1 billion in new revenue in part by doing away with a sales tax exemption on clothing.

The potential hedge fund tax led to a major push by Connecticut Governor Jodi Rell to lure New York’s hedge funds north of the border.

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Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…