Note

- Federal, State and Local Income Taxes:

In accordance with the requirements of the Income Tax Topic of the FASB's ASC, the Company's provision for income taxes includes the following:

	Three Months Ended January 31,					Nine Months Ended January 31,
($ in thousands)	2020			2019		2020		2019
Current tax expense:
Federal	$	1,347		$	513	$	3,480	$	2,118
State and local		300			173		915		333
Current tax expense		1,647			686		4,395		2,451
Deferred tax expense (benefit):
Federal		154			429		100		434
State and local		(2	)		197		270		(57	)
Deferred tax expense (benefit):		152			626		370		377
Income tax provision	$	1,799		$	1,312	$	4,765	$	2,828

December 22, 2017

H.R.

originally known as the Tax Cuts and Jobs Act (the "Tax Act"), was enacted. The Tax Act lowered the U.S. federal income tax rate ("Federal Tax Rate") from

35%

21%

effective

January 1, 2018.

Accordingly, the Company computes Federal income tax expense using the Federal Tax Rate of

21%

in fiscal year

2020

and each year thereafter.

The overall effective income tax rates, as a percentage of pre-tax ordinary income for the

nine

months ended

January 31, 2020

and

January 31, 2019

were

27.05%

and

24.20%,

respectively. The increase in the effective tax rate during the quarter ended

January 31, 2020

is primarily a result of an increase in the state and local income taxes as a result of changes in state and local tax legislation and the effect of the lowering of the NYC tax allocation factor on deferred taxes in fiscal

2019.

The Company's annualized overall effective tax rate fluctuates due to a number of factors, in addition to changes in tax law, including but

not

limited to an increase or decrease in the ratio of items that do

not

have tax consequences to pre-tax income, the Company's geographic profit mix between tax jurisdictions, taxation method adopted by each locality, new interpretations of existing tax laws and rulings and settlements with tax authorities.

Deferred income taxes, a liability, are provided for temporary differences between the financial reporting basis and the tax basis of the Company's assets and liabilities. The tax effect of temporary differences giving rise to the Company's long-term deferred tax liability are as follows:

	January 31,			April 30,
($ in thousands)	2020			2019
Federal tax liability (benefit):
Deferred gain on deconsolidation of EAM	$	10,669		$	10,669
Deferred non-cash post-employment compensation		(372	)		(372	)
Depreciation and amortization		108			130
Unrealized gain on securities held for sale		570			446
Deferred charges		(333	)		(354	)
Other		(58	)		(279	)
Total federal tax liability		10,584			10,240

State and local tax liabilities (benefits):
Deferred gain on deconsolidation of EAM		2,676			2,530
Deferred non-cash post-employment compensation		(93	)		(74	)
Depreciation and amortization		27			40
Unrealized gain on securities held for sale		143			-
Other		(84	)		(112	)
Total state and local tax liabilities		2,669			2,384
Deferred tax liability, long-term	$	13,253		$	12,624

At the end of each interim reporting period, the Company estimates the effective income tax rate to apply for the full fiscal year. The Company uses the effective income tax rate determined to provide for income taxes on a year-to-date basis and reflects the tax effect of any tax law changes and certain other discrete events in the period in which they occur.

The provision for income taxes differs from the amount of income tax determined by applying the applicable U.S. statutory income tax rate to pretax income as a result of the following:

	Nine Months Ended January 31,
	2020			2019
U.S. statutory federal tax rate		21.00	%		21.00	%
Increase (decrease) in tax rate from:
State and local income taxes, net of federal income tax benefit		6.20	%		3.45	%
Effect of dividends received deductions		(0.20	%)		(0.25	%)
Other, net		0.05	%		-
Effective income tax rate		27.05	%		24.20	%

The Company believes that, as of

January 31, 2020,

there were

material uncertain tax positions that would require disclosure under GAAP.

The Company is included in the consolidated federal income tax return of the Parent. The Company has a tax sharing agreement which requires it to make tax payments to the Parent equal to the Company's liability/(benefit) as if it filed a separate return. Beginning with the fiscal year ended

April 30, 2017,

the Company files combined income tax returns with the Parent on a unitary basis in certain states as a result of changes in state tax regulations. The Company does

not

anticipate any significant tax implications from the change to unitary state tax filing.

The Company’s federal income tax returns (included in the Parent’s consolidated returns) and state and city tax returns for fiscal years ended

2016

through

2018,

are subject to examination by the tax authorities, generally for

three

years after they are filed with the tax authorities. The Company is presently engaged in a federal tax audit for the fiscal year ended

April 30, 2015

and does

not

expect it to have a material effect on the financial statements.