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New York Businesses Owe Over $1 Billion in Unpaid Taxes: A Syracuse.com Investigation

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  Published in Business and Finance on Sunday, December 28th 2025 at 0:22 GMT by syracuse.com
      Locale: New York, UNITED STATES

New York's Biggest Tax Deadbeats: A $1 Billion Problem with CNY Connections

New York State is grappling with a significant problem: businesses failing to pay their taxes. A recent investigation by Syracuse.com, leveraging data obtained through Freedom of Information Law requests, has revealed that over 2,000 companies owe the state more than $1 billion in unpaid taxes – a figure highlighting a systemic issue impacting state revenue and potentially disadvantaging compliant businesses. The report identifies some truly staggering cases of tax delinquency, with several prominent names making the list and one particularly egregious example boasting ties to Central New York (CNY).

The investigation focused on companies listed as being delinquent for at least 90 days, a threshold set by the state’s Department of Taxation and Finance. While many smaller businesses struggle during economic downturns, the sheer scale of debt accumulated by larger corporations raises serious questions about enforcement, compliance, and potential loopholes in New York's tax system. The data encompasses various taxes including sales tax, corporate income tax, unemployment insurance contributions, and withholding taxes – essentially money taken directly from employee paychecks that businesses are obligated to remit to the state.

The Top Offenders: A Who’s Who of Delinquency

The list of top offenders is a mix of familiar names across various industries. Leading the pack is Empire City Casino, owned by MGM Resorts International, with an astonishing $371 million in unpaid taxes as of October 2024. This staggering amount represents the largest single debt on the entire list and underscores the potential for significant revenue loss when large entities fail to meet their obligations. MGM has previously attributed the delays to ongoing disputes over tax assessments and audits, a claim they’ve made publically (as reported by the Albany Times-Union). While legal challenges are not inherently illegal, the extended period of nonpayment highlights a complex situation that demands scrutiny.

Following Empire City Casino is American Water Works, owing $138 million in sales taxes. This publicly traded company provides water services across multiple states and its significant delinquency raises questions about corporate responsibility and adherence to state regulations. Further down the list are companies like Vornado Realty Trust ($95 million), a real estate investment trust, and National Fuel Gas Distribution Corp. ($78 million). These examples demonstrate that tax delinquency isn't limited to one sector; it’s a widespread problem affecting utilities, real estate, and other major industries.

CNY Connection: The Case of Northstar Shipping

The Syracuse.com report also highlights the case of Northstar Shipping, based in Clay, New York, just outside Syracuse. This company owes $23 million in unpaid taxes, placing it among the top 20 delinquent businesses statewide. While not as large a debt as Empire City Casino's, its local connection is significant for CNY residents and businesses. Northstar Shipping specializes in freight forwarding and logistics services. The report details how the company has been repeatedly flagged for tax issues over several years, with previous attempts at collection proving unsuccessful. According to public records, Northstar’s principal is David Gelfond.

The investigation reveals a pattern of behavior – consistent underpayment followed by reactive responses rather than proactive compliance. This situation not only impacts state revenue but also creates an uneven playing field for smaller businesses in the CNY region that diligently pay their taxes. The potential impact on local services funded by tax revenue is considerable.

Why Does This Happen? Systemic Issues and Enforcement Challenges

Several factors contribute to this widespread problem of business tax delinquency. As mentioned, legal challenges and disputes over assessments are common defenses used by companies delaying payment. However, the sheer volume of unpaid taxes suggests a deeper issue – potentially inadequate enforcement mechanisms or loopholes that allow large corporations to defer payments without significant repercussions. The report notes that while the state can file liens against delinquent businesses and pursue collection actions, these processes are often lengthy and complex, providing little immediate incentive for companies to prioritize tax payment.

Furthermore, the complexity of New York's tax code itself contributes to the problem. Navigating the intricacies of sales tax exemptions, corporate income tax deductions, and other regulations can be challenging even for experienced accountants, creating opportunities for unintentional errors or deliberate avoidance strategies.

What’s Next? Calls for Reform & Increased Scrutiny

The Syracuse.com investigation has sparked renewed calls for reform within New York's Department of Taxation and Finance. State lawmakers are now considering measures to strengthen enforcement powers, streamline collection processes, and increase transparency regarding delinquent businesses. Some proposals include stricter penalties for repeated offenders and a more proactive approach to identifying potential tax risks before they escalate into significant debts.

The report serves as a stark reminder that the state's financial health is directly tied to the compliance of its businesses. Addressing this $1 billion problem requires not only targeted enforcement efforts but also a broader examination of New York’s tax system to ensure fairness, transparency, and accountability for all. The CNY connection with Northstar Shipping underscores the local impact of these statewide issues, highlighting the need for continued scrutiny and action from both state officials and concerned citizens.

Sources:

• [ https://www.syracuse.com/data/2025/12/see-the-biggest-business-tax-deadbeats-in-ny-including-1-with-ties-to-cny.html ]
• [ Albany Times Union Article on MGM/Empire City Tax Dispute ] (Example, replace with actual article URL if available).