senate Bill S4171

Relates to creating the middle class circuit breaker tax credit, and to the tax rate of certain taxpayers earning over one million dollars

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 22 / Mar / 2011
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 04 / Jan / 2012
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Summary

Relates to creating the middle class circuit breaker tax credit; to amend the tax law, in relation to person income tax; to amend the state finance law, in relation to establishing the real property tax circuit breaker account and the education financing account; and directing the commissioner of taxation and finance to adjust certain withholding tables and methods.

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Bill Details

See Assembly Version of this Bill:
A7673
Versions:
S4171
Legislative Cycle:
2011-2012
Current Committee:
Senate Investigations And Government Operations
Law Section:
Tax Law
Laws Affected:
Amd §§606 & 601, Tax L; add §§99-t & 99-u, St Fin L

Sponsor Memo

BILL NUMBER:S4171

TITLE OF BILL:
An act
to amend the tax law, in relation to personal income tax; to amend
the
state finance law, in relation to establishing the real property tax
circuit breaker account and the education financing account; and
directing the commissioner of taxation and finance to adjust certain
withholding tables and methods

PURPOSE:
To enact a fair and responsible measure to control and reduce
property taxes for New Yorkers.

SUMMARY OF PROVISIONS:
Provides for a "circuit breaker" for taxpayers earning up to $250,000
per year who pay a disproportionate share of their income in property
taxes. New Yorkers would receive a credit on their 2012 income taxes
depending on their income level and the percentage of property taxes
they pay as a portion of their income.

The tax credit would consist of 70% of any amount paid in property
taxes beyond the percentages and income levels are noted below:

HOUSEHOLD GROSS INCOME MAXIMUM REAL PROPERTY TAX

$100,000 or Less 6% of Household Gross Income

$100,000 - $150,000 6% of $100,000 Plus 7% of up to
the Next $50,000

$150,000 - $250,000 6% of $100,000 Plus 7% of $50,000
Plus 8.5% of Household Gross Income
Above $150,000.

Provides for the revenue to pay for the circuit breaker portion of
this legislation, by maintaining the current income tax rate for those
earning $1 million of more, for the calendar years 2012 and 2013.

Provides that the revenue derived from the difference between the 2008
income tax rate for those earning over $1 million, and the 2012/2013
rate, would be deposited into two dedicated funds. The first would be
used to pay for the circuit breaker tax credit; and the second would
be for education.

EFFECTS OF PRESENT LAW WHICH THIS BILL WOULD ALTER:
The legislation maintains the 2011 income tax rate for those earning
$1 million or more through 2013 and provides a dedicated source of
revenue to fund property tax relief.

The legislation would also establish two dedicated funds under the
State Finance Law (for property tax relief and school aid).

JUSTIFICATION:


Depending on which study one were to believe, New Yorkers pay the
first or second highest tax burden of any State in the nation. The
Public Policy Institute of New York State found New Yorkers paid $2.3
billion more in property taxes in 2010, than in 2009.

A report from State Comptroller Thomas DiNapoli, issued in March,
2011, indicates that suburban counties in New York, have the highest
foreclosure rates in the State. Property tax relief is important for
New York's middle class in every part of the State. In areas of high
unemployment, the issue is an even greater concern. Property taxes
are too high, and are not rationally related to income. A family's
property tax bill can easily be 25% of their mortgage payment, often
times a much higher percentage. In these recessionary times, the
government must make choices of tax fairness in order to keep middle
class New Yorkers in the State and financially viable as long-term
residents of New York.

In the property tax system, there is no "check and balance" system to
account for job losses or other downtowns in personal income. As a
result, during even a short term financial crisis, struggling middle
class families may be forced to sell their lifetime's biggest
investment - their home. The decision this legislation proposes to
make, would assist millions of middle class families, with long term
property tax relief. The middle class tax relief would be funded
initially, while the economy is recovering, by continuing the 2011
income tax rates, solely for persons who earn more than $1 million,
for two years, while the economy is struggling to recover.

LEGISLATIVE HISTORY:
New legislation.

FISCAL IMPLICATIONS:
The fiscal implications of the circuit breaker legislation are
estimated not to exceed $2.3 billion. The revenue derived by the State
by maintaining the current income tax rate, on those earning more than
$1 million, would equal an estimated $3.362 billion.

EFFECTIVE DATE:
Immediately.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  4171

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             March 22, 2011
                               ___________

Introduced  by  Sen. BONACIC -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations

AN ACT to amend the tax law, in relation  to  personal  income  tax;  to
  amend  the  state  finance  law,  in relation to establishing the real
  property tax circuit  breaker  account  and  the  education  financing
  account;  and  directing  the  commissioner of taxation and finance to
  adjust certain withholding tables and methods

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Section  606  of  the  tax law is amended by adding a new
subsection (ss) to read as follows:
  (SS) MIDDLE CLASS CIRCUIT BREAKER CREDIT.  (1)  DEFINITIONS.  FOR  THE
PURPOSES OF THIS SUBSECTION:
  (A)  "QUALIFIED TAXPAYER" MEANS A RESIDENT INDIVIDUAL OF THE STATE WHO
OWNS OR RENTS THE RESIDENTIAL REAL PROPERTY IN WHICH HE OR SHE  RESIDES,
AND HAS RESIDED IN SUCH RESIDENTIAL REAL PROPERTY FOR NOT LESS THAN FIVE
YEARS.    THE DEPARTMENT MAY REQUIRE SUCH PROOF AS IT DEEMS NECESSARY TO
ESTABLISH CRITERIA SUFFICIENT TO DEMONSTRATE THAT A TAXPAYER  MEETS  AND
HAS  MET  THESE  QUALIFICATIONS  FOR  A  PERIOD  OF AT LEAST FIVE YEARS.
EVIDENCE OF RESIDENCE SHALL REQUIRE THE TAXPAYER TO HAVE RESIDED ON  THE
RESIDENTIAL PROPERTY AT LEAST ONE HUNDRED NINETY DAYS A YEAR AND, UNLESS
GOOD  CAUSE IS SHOWN PURSUANT TO A DETERMINATION OF THE COMMISSIONER, TO
HAVE LIVED AT SUCH RESIDENCE AT LEAST ONE HUNDRED TWENTY DAYS  PER  YEAR
CONSECUTIVELY FOR EACH OF THOSE YEARS. EVIDENCE MAY ALSO INCLUDE, BUT IS
NOT  LIMITED  TO,  DRIVER'S LICENSE, WORKPLACE LOCATION IN COMPARISON TO
OTHER PROPERTY WHERE SUCH TAXPAYER MAY RESIDE AT OR BE DOMICILED AT, AND
VOTER REGISTRATION STATUS.
  (B) "HOUSEHOLD" OR  "MEMBERS  OF  THE  HOUSEHOLD"  MEANS  A  QUALIFIED
TAXPAYER  OR  QUALIFIED TAXPAYERS AND ALL OTHER PERSONS, NOT NECESSARILY
RELATED, WHO ALL RESIDE IN THE RESIDENTIAL REAL PROPERTY  OWNED  BY  THE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10316-02-1

S. 4171                             2

TAXPAYER  OR TAXPAYERS, AND SHARE ITS FURNISHINGS, FACILITIES AND ACCOM-
MODATIONS; PROVIDED THAT NO PERSON MAY BE A  MEMBER  OF  MORE  THAN  ONE
HOUSEHOLD AT ONE TIME.
  (C) "HOUSEHOLD GROSS INCOME" MEANS THE AGGREGATE ADJUSTED GROSS INCOME
OF  ALL  MEMBERS  OF  THE HOUSEHOLD FOR THE TAXABLE YEAR AS REPORTED FOR
FEDERAL INCOME TAX PURPOSES, OR WHICH  WOULD  BE  REPORTED  AS  ADJUSTED
GROSS  INCOME  IF A FEDERAL INCOME TAX RETURN WERE REQUIRED TO BE FILED,
WITH THE MODIFICATIONS IN SUBSECTION (B) OF SECTION SIX  HUNDRED  TWELVE
OF  THIS ARTICLE BUT WITHOUT THE MODIFICATIONS IN SUBSECTION (C) OF SUCH
SECTION, PLUS ANY PORTION OF THE GAIN FROM THE SALE OR EXCHANGE OF PROP-
ERTY OTHERWISE EXCLUDED FROM SUCH AMOUNT;  EARNED  INCOME  FROM  SOURCES
WITHOUT  THE  UNITED  STATES  EXCLUDABLE  FROM  FEDERAL  GROSS INCOME BY
SECTION NINE HUNDRED ELEVEN OF THE INTERNAL REVENUE CODE; SUPPORT  MONEY
NOT  INCLUDED  IN  ADJUSTED  GROSS  INCOME;  NONTAXABLE STRIKE BENEFITS;
SUPPLEMENTAL SECURITY INCOME PAYMENTS; THE GROSS AMOUNT OF  ANY  PENSION
OR  ANNUITY  BENEFITS  TO THE EXTENT NOT INCLUDED IN SUCH ADJUSTED GROSS
INCOME (INCLUDING, BUT NOT LIMITED TO, RAILROAD RETIREMENT BENEFITS  AND
ALL  PAYMENTS  RECEIVED UNDER THE FEDERAL SOCIAL SECURITY ACT AND VETER-
ANS' DISABILITY PENSIONS); NONTAXABLE INTEREST RECEIVED FROM  THE  STATE
OF  NEW  YORK,  ITS AGENCIES, INSTRUMENTALITIES, PUBLIC CORPORATIONS, OR
POLITICAL SUBDIVISIONS (INCLUDING A PUBLIC CORPORATION CREATED  PURSUANT
TO  AGREEMENT OR COMPACT WITH ANOTHER STATE OR CANADA); WORKERS' COMPEN-
SATION; THE GROSS AMOUNT OF "LOSS-OF-TIME" INSURANCE; AND THE AMOUNT  OF
CASH PUBLIC ASSISTANCE AND RELIEF, OTHER THAN MEDICAL ASSISTANCE FOR THE
NEEDY,  PAID  TO OR FOR THE BENEFIT OF THE QUALIFIED TAXPAYER OR MEMBERS
OF HIS OR HER HOUSEHOLD. HOUSEHOLD  GROSS  INCOME  SHALL    NOT  INCLUDE
SURPLUS  FOODS  OR  OTHER RELIEF IN KIND OR PAYMENTS MADE TO INDIVIDUALS
BECAUSE OF THEIR STATUS AS VICTIMS OF NAZI  PERSECUTION  AS  DEFINED  IN
PUBLIC  LAW  103-286 OR ANY DISABILITY COMPENSATION RECEIVED BY VETERANS
ON ACCOUNT OF INJURY OR ILLNESS INCURRED OR AGGRAVATED  DURING  MILITARY
SERVICE  IN  THE  WARS IN AFGHANISTAN AND IRAQ SINCE SEPTEMBER ELEVENTH,
TWO THOUSAND ONE.  PROVIDED, FURTHER, HOUSEHOLD GROSS INCOME SHALL  ONLY
INCLUDE  ALL  SUCH INCOME RECEIVED BY ALL MEMBERS OF THE HOUSEHOLD WHILE
MEMBERS OF SUCH HOUSEHOLD.
  (D) "ADJUSTED RENT" MEANS RENT PAID FOR THE RIGHT OF  OCCUPANCY  OF  A
RESIDENCE.
  (E)  "REAL  PROPERTY TAX EQUIVALENT" MEANS FOR TAXABLE YEARS BEGINNING
IN TWO THOUSAND TWELVE AND THEREAFTER, TWENTY PERCENT  OF  THE  ADJUSTED
RENT  ACTUALLY  PAID  IN THE TAXABLE YEAR  BY A HOUSEHOLD SOLELY FOR THE
RIGHT OF OCCUPANCY OF ITS NEW YORK RESIDENCE FOR THE  TAXABLE  YEAR.  IF
(1)  A  RESIDENCE  IS RENTED TO TWO OR MORE INDIVIDUALS AS COTENANTS, OR
SUCH INDIVIDUALS SHARE IN THE PAYMENT OF A SINGLE RENT FOR THE RIGHT  OF
OCCUPANCY  OF  SUCH  RESIDENCE,  AND  (2)  EACH OF SUCH INDIVIDUALS IS A
MEMBER OF A DIFFERENT HOUSEHOLD, ONE OR MORE OF WHICH INDIVIDUALS SHARES
SUCH RESIDENCE, REAL PROPERTY TAX EQUIVALENT IS THAT PORTION  OF  TWENTY
PERCENT  OF  THE  ADJUSTED  RENT PAID IN THE TAXABLE YEAR WHICH REFLECTS
THAT PORTION OF THE RENT ATTRIBUTABLE TO THE QUALIFIED TAXPAYER AND  THE
MEMBERS OF HIS OR HER HOUSEHOLD.
  (F)  "NET REAL PROPERTY TAX" MEANS THE REAL PROPERTY TAXES ASSESSED ON
THE RESIDENTIAL REAL PROPERTY OWNED AND  OCCUPIED  BY  THE  TAXPAYER  OR
TAXPAYERS AFTER ANY EXEMPTION OR ABATEMENT RECEIVED PURSUANT TO THE REAL
PROPERTY TAX LAW.
  (2)  CREDIT. A QUALIFIED TAXPAYER FOR THE YEAR TWO THOUSAND TWELVE AND
THEREAFTER SHALL BE ALLOWED A CREDIT AGAINST THE TAXES IMPOSED  BY  THIS
ARTICLE  EQUAL TO SEVENTY PERCENT, OF THE AMOUNT BY WHICH THE TAXPAYER'S
NET REAL PROPERTY TAX OR THE TAXPAYER'S  REAL  PROPERTY  TAX  EQUIVALENT

S. 4171                             3

EXCEEDS THE TAXPAYER'S MAXIMUM REAL PROPERTY TAX, AS DETERMINED BY PARA-
GRAPH  THREE OF THIS SUBSECTION. IF SUCH CREDIT EXCEEDS THE TAX FOR SUCH
TAXABLE YEAR, AS REDUCED BY THE OTHER CREDITS PERMITTED BY THIS ARTICLE,
THE  QUALIFIED  TAXPAYER  MAY RECEIVE, AND THE COMPTROLLER, SUBJECT TO A
CERTIFICATE OF THE DEPARTMENT, SHALL  PAY  AS  AN  OVERPAYMENT,  WITHOUT
INTEREST,  ANY  EXCESS  BETWEEN SUCH TAX AS SO REDUCED AND THE AMOUNT OF
THE CREDIT. IF A QUALIFIED TAXPAYER IS NOT REQUIRED  TO  FILE  A  RETURN
PURSUANT  TO  SECTION SIX HUNDRED FIFTY-ONE OF THIS ARTICLE, A QUALIFIED
TAXPAYER MAY NEVERTHELESS RECEIVE AND  THE  COMPTROLLER,  SUBJECT  TO  A
CERTIFICATE  OF  THE  DEPARTMENT,  SHALL  PAY AS AN OVERPAYMENT THE FULL
AMOUNT OF THE CREDIT, WITHOUT INTEREST; PROVIDED,  HOWEVER,  THAT  THERE
SHALL  BE NO OBLIGATION OF THE COMPTROLLER TO PAY SUCH OVERPAYMENT UNTIL
THE REVENUE NECESSARY  TO  MAKE  SUCH  OVERPAYMENT  IS  IN  THE  ACCOUNT
PROVIDED FOR IN SECTION NINETY-NINE-T OF THE STATE FINANCE LAW.
  (3) MAXIMUM REAL PROPERTY TAX. (A) A QUALIFIED TAXPAYER'S MAXIMUM REAL
PROPERTY TAX SHALL BE DETERMINED AS FOLLOWS:
  FOR TAX YEARS BEGINNING IN TWO THOUSAND TWELVE AND THEREAFTER:
HOUSEHOLD GROSS INCOME               MAXIMUM REAL PROPERTY TAX
ONE HUNDRED THOUSAND                 SIX PERCENT OF HOUSEHOLD GROSS
DOLLARS OR LESS                      INCOME
MORE THAN ONE HUNDRED THOUSAND       SIX PERCENT OF ONE HUNDRED
DOLLARS, BUT LESS THAN OR EQUAL TO   THOUSAND DOLLARS PLUS SEVEN
ONE HUNDRED FIFTY THOUSAND DOLLARS   PERCENT OF HOUSEHOLD GROSS INCOME
                                     ABOVE ONE HUNDRED THOUSAND DOLLARS
MORE THAN ONE HUNDRED FIFTY          SIX PERCENT OF ONE HUNDRED THOUSAND
THOUSAND DOLLARS, BUT LESS THAN      DOLLARS PLUS SEVEN
OR EQUAL TO TWO HUNDRED FIFTY        PERCENT OF FIFTY THOUSAND DOLLARS
THOUSAND DOLLARS                     PLUS EIGHT AND ONE-HALF PERCENT OF
                                     HOUSEHOLD GROSS INCOME ABOVE ONE
                                     HUNDRED FIFTY THOUSAND DOLLARS
MORE THAN TWO HUNDRED FIFTY          NO LIMITATION.
THOUSAND DOLLARS
  (B)  THE  THRESHOLDS OF HOUSEHOLD GROSS INCOME ESTABLISHED BY SUBPARA-
GRAPH (A) OF THIS PARAGRAPH SHALL BE INDEXED FOR INFLATION FOR TAX YEARS
BEGINNING IN TWO THOUSAND FOURTEEN AND THEREAFTER.
  (4) EXCLUSIONS FROM ELIGIBILITY. NO CREDIT SHALL BE GRANTED UNDER THIS
SUBSECTION IF THE  QUALIFIED  TAXPAYER  CLAIMS  THE  REAL  PROPERTY  TAX
CIRCUIT  BREAKER  CREDIT,  PURSUANT  TO  SUBSECTION (E) OF THIS SECTION,
DURING THE TAXABLE YEAR.
  S 2. Paragraph 1 of subsection (a) of section 601 of the  tax  law  is
renumbered  paragraph  1-a  and  a  new  paragraph 1 is added to read as
follows:
  (1) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND TWELVE AND BEFORE  TWO
THOUSAND FOURTEEN:

IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
NOT OVER $16,000                      4% OF THE NEW YORK TAXABLE INCOME
OVER $16,000 BUT NOT OVER $22,000     $640 PLUS 4.5% OF EXCESS OVER
                                      $16,000
OVER $22,000 BUT NOT OVER $26,000     $910 PLUS 5.25% OF EXCESS OVER
                                      $22,000
OVER $26,000 BUT NOT OVER $40,000     $1,120 PLUS 5.9% OF EXCESS OVER
                                      $26,000
OVER $40,000 BUT NOT OVER $1,000,000  $1,946 PLUS 6.85% OF EXCESS OVER
                                      $40,000
OVER $1,000,000                       $67,706 PLUS 8.97% OF EXCESS OVER

S. 4171                             4

                                      $1,000,000
  S  3.  Paragraph  1 of subsection (b) of section 601 of the tax law is
renumbered paragraph 1-a and a new paragraph  1  is  added  to  read  as
follows:
  (1)  FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND TWELVE AND BEFORE TWO
THOUSAND FOURTEEN:

IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
NOT OVER $11,000                      4% OF THE NEW YORK TAXABLE INCOME
OVER $11,000 BUT NOT OVER $15,000     $440 PLUS 4.5% OF EXCESS OVER
                                       $11,000
OVER $15,000 BUT NOT OVER $17,000     $620 PLUS 5.25% OF EXCESS OVER
                                       $15,000
OVER $17,000 BUT NOT OVER $30,000     $725 PLUS 5.9% OF EXCESS OVER
                                       $17,000
OVER $30,000 BUT NOT OVER $1,000,000  $1,492 PLUS 6.85% OF EXCESS OVER
                                       $30,000
OVER $1,000,000                       $67,937 PLUS 8.97% OF EXCESS OVER
                                       $1,000,000
  S 4. Paragraph 1 of subsection (c) of section 601 of the  tax  law  is
renumbered  paragraph  1-a  and  a  new  paragraph 1 is added to read as
follows:
  (1) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND TWELVE AND BEFORE  TWO
THOUSAND FOURTEEN:

IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
NOT OVER $8,000                       4% OF THE NEW YORK TAXABLE INCOME
OVER $8,000 BUT NOT OVER $11,000      $320 PLUS 4.5% OF EXCESS OVER
                                       $8,000
OVER $11,000 BUT NOT OVER $13,000     $455 PLUS 5.25% OF EXCESS OVER
                                       $11,000
OVER $13,000 BUT NOT OVER $20,000     $560 PLUS 5.9% OF EXCESS OVER
                                       $13,000
OVER $20,000 BUT NOT OVER $1,000,000  $973 PLUS 6.85% OF EXCESS OVER
                                       $20,000
OVER $1,000,000                       $68,103 PLUS 8.97% OF EXCESS OVER
                                       $1,000,000
  S  5.  Subparagraphs  (B)  and (C) of paragraph 2 of subsection (d) of
section 601 of the tax law, as amended by section 2 of part Z1 of  chap-
ter 57 of the laws of 2009, are amended to read as follows:
  (B)  For taxable years beginning after two thousand two and before two
thousand six, the fraction is computed as follows: the numerator is  the
lesser  of  fifty  thousand  dollars  or the excess of New York adjusted
gross income for the  taxable  year  over  one  hundred  fifty  thousand
dollars and the denominator is fifty thousand dollars. For taxable years
beginning  after  two thousand eight and before two thousand twelve, the
fraction is computed as follows: the numerator is the  lesser  of  fifty
thousand dollars or the excess of New York adjusted gross income for the
taxable  year over three hundred thousand dollars and the denominator is
fifty thousand dollars.  FOR TAXABLE YEARS BEGINNING AFTER TWO  THOUSAND
ELEVEN  AND  BEFORE  TWO  THOUSAND FOURTEEN, THE FRACTION IS COMPUTED AS
FOLLOWS: THE NUMERATOR IS THE LESSER OF FIFTY THOUSAND  DOLLARS  OR  THE
EXCESS  OF  NEW YORK ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR OVER ONE
MILLION DOLLARS AND THE DENOMINATOR IS FIFTY THOUSAND DOLLARS.

S. 4171                             5

  (C) This paragraph shall only apply to taxable years  beginning  after
two  thousand  two  and  before  two thousand six and after two thousand
eight and before two thousand [twelve] FOURTEEN.
  S  6.  Subparagraphs  (B)  and (C) of paragraph 3 of subsection (d) of
section 601 of the tax law, as amended by section 3 of part Z1 of  chap-
ter 57 of the laws of 2009, are amended to read as follows:
  (B)  For  such  taxpayers with adjusted gross income over five hundred
thousand dollars, for taxable years beginning after two  thousand  eight
and before two thousand twelve, the fraction is computed as follows: the
numerator  is  the lesser of fifty thousand dollars or the excess of New
York adjusted gross income for the taxable year over five hundred  thou-
sand  dollars  and  the denominator is fifty thousand dollars.  FOR SUCH
TAXPAYERS WITH ADJUSTED GROSS INCOME OVER ONE MILLION DOLLARS, FOR TAXA-
BLE YEARS BEGINNING AFTER TWO THOUSAND ELEVEN AND  BEFORE  TWO  THOUSAND
FOURTEEN,  THE  FRACTION  IS  COMPUTED  AS FOLLOWS: THE NUMERATOR IS THE
LESSER OF FIFTY THOUSAND DOLLARS OR THE  EXCESS  OF  NEW  YORK  ADJUSTED
GROSS  INCOME  FOR  THE  TAXABLE  YEAR  OVER ONE MILLION DOLLARS AND THE
DENOMINATOR IS FIFTY THOUSAND DOLLARS. Provided, however, that the total
tax prior to the application of any tax credits  shall  not  exceed  the
highest rate of tax set forth in the tax table in subsection (a) of this
section multiplied by the taxpayer's taxable income.
  (C)  This  paragraph shall only apply to taxable years beginning after
two thousand two and before two thousand  six  and  after  two  thousand
eight and before two thousand [twelve] FOURTEEN.
  S  7. Notwithstanding any provision of law to the contrary, the method
of determining the amount to be deducted  and  withheld  from  wages  on
account  of  taxes imposed by or pursuant to the authority of article 22
of the tax law in connection with the implementation of  the  provisions
of  this  act  shall be prescribed by regulations of the commissioner of
taxation and finance with due consideration to the effect such withhold-
ing tables and methods would have on the receipt and amount of  revenue.
The  commissioner  of taxation and finance shall adjust such withholding
tables and methods in regard to taxable  years  beginning  in  2011  and
after in such manner as to result, so far as practicable, in withholding
from  an  employee's wages an amount substantially equivalent to the tax
reasonably estimated to be due for such taxable years as a result of the
provisions of this act. Provided, however, for tax year 2011  the  with-
holding  tables  shall  reflect  as  accurately  as practicable the full
amount of tax year 2011 liability so that such  amount  is  withheld  by
December  31,  2011. Any such regulations to implement a change in with-
holding tables and methods for tax year 2011 shall be adopted and effec-
tive as soon as practicable and the commissioner of taxation and finance
may  adopt  such  regulations  on  an  emergency  basis  notwithstanding
anything  to  the  contrary  in  section 202 of the state administrative
procedure act. In carrying out his or her  duties  and  responsibilities
under  this section, the commissioner of taxation and finance may accom-
pany such a rule making procedure with a similar procedure with  respect
to the taxes required to be deducted and withheld by local laws imposing
taxes pursuant to the authority of articles 30, 30-A and 30-B of the tax
law,  the provisions of any other law in relation to such a procedure to
the contrary notwithstanding.
  S 8. 1. Notwithstanding any provision of law to the contrary, no addi-
tion to tax required shall be imposed for failure to pay  the  estimated
tax  in subsection (c) of section 685 of the tax law with respect to any
underpayment of a required installment due prior to,  or  within  thirty
days  of,  the effective date of this act to the extent that such under-

S. 4171                             6

payment was created or increased by the  amendments  made  by  this  act
provided,  however, that the taxpayer remits the amount of the underpay-
ment with his or her next quarterly estimated tax payment.
  2. The commissioner of taxation and finance shall take steps to publi-
cize  the  necessary  adjustments  to  estimated  tax and, to the extent
reasonably possible, to inform the taxpayer of the tax liability changes
made by this act.
  S 9. The state finance law is amended by adding two new sections  99-t
and 99-u to read as follows:
  S  99-T. REAL PROPERTY TAX CIRCUIT BREAKER ACCOUNT. 1. THERE IS HEREBY
ESTABLISHED IN THE JOINT  CUSTODY  OF  THE  STATE  COMPTROLLER  AND  THE
COMMISSIONER  OF  TAXATION  AND  FINANCE AN ACCOUNT OF THE MISCELLANEOUS
SPECIAL REVENUE FUND TO BE KNOWN AS THE REAL PROPERTY TAX CIRCUIT BREAK-
ER ACCOUNT.
  2. NOTWITHSTANDING ANY OTHER LAW, RULE OR REGULATION TO THE  CONTRARY,
THE  STATE  COMPTROLLER IS HEREBY AUTHORIZED AND DIRECTED TO RECEIVE, ON
AND AFTER JANUARY FIRST, TWO THOUSAND TWELVE, FOR DEPOSIT TO THE  CREDIT
OF  THE  REAL  PROPERTY TAX CIRCUIT BREAKER ACCOUNT IN THE DEPARTMENT OF
TAXATION AND FINANCE, TO BE UTILIZED TO PAY ALL  COSTS  ASSOCIATED  WITH
THE  CREDIT ESTABLISHED BY SUBSECTION (SS) OF SECTION SIX HUNDRED SIX OF
THE TAX LAW, THAT PORTION OF PERSONAL INCOME TAX RECEIPTS  WHICH  RESULT
FROM  THE TEMPORARY SURCHARGE ON TAXPAYERS WITH A NEW YORK STATE TAXABLE
INCOME IN EXCESS OF ONE MILLION DOLLARS WHICH  ARE  RECEIVED  AFTER  THE
COMMENCEMENT  OF  THE  TWO  THOUSAND TWELVE--TWO THOUSAND THIRTEEN STATE
FISCAL YEAR. SUCH SURCHARGE SHALL BE DEFINED  AS  THE  DIFFERENCE  WHICH
WOULD  BE  GENERATED BY TAXABLE INCOME OVER ONE MILLION DOLLARS WHEN THE
TAX RATE IS 8.97% AS COMPARED TO THE AMOUNT SUCH TAXABLE  REVENUE  WOULD
OTHERWISE  GENERATE,  AT THE RATE PROVIDED FOR BY LAW, EFFECTIVE JANUARY
FIRST, TWO THOUSAND FOURTEEN.   SUCH FUNDS SHALL  BE  EXPENDED  FOR  THE
PURPOSE  OF  FUNDING  A  REAL  PROPERTY  TAX  CIRCUIT BREAKER CREDIT, TO
PROVIDE A STATE FINANCED OFFSET TO SUCH RESIDENTIAL PROPERTY  TAXES.  IF
THE  DIRECTOR  OF THE DIVISION OF THE BUDGET CERTIFIES THAT THE RECEIPTS
WHICH RESULT FROM THE TEMPORARY SURCHARGE AS SET FORTH IN  THIS  SECTION
SHALL  EXCEED THE AMOUNT NECESSARY FOR THE STATE TO MEET THE OBLIGATIONS
PROVIDED FOR UNDER SUBSECTION (SS) OF SECTION SIX HUNDRED SIX OF THE TAX
LAW, SUCH EXCESS AMOUNT AS DETERMINED BY THE DIRECTOR OF THE BUDGET, AND
AS OTHERWISE CERTIFIED TO BE AVAILABLE BY THE STATE  COMPTROLLER,  SHALL
BE  ALLOCATED TO THE PUBLIC SCHOOLS OF THE STATE IN THE FORMULA UTILIZED
BY THE LEGISLATURE TO  ESTABLISH  THE  TOTAL  FOUNDATION  BASE  AID,  AS
DEFINED BY SECTION THIRTY-SIX HUNDRED TWO OF THE EDUCATION LAW.
  S 99-U. EDUCATION FINANCING ACCOUNT. 1. THERE IS HEREBY ESTABLISHED IN
THE JOINT CUSTODY OF THE STATE COMPTROLLER AND THE COMMISSIONER OF TAXA-
TION AND FINANCE AN ACCOUNT OF THE MISCELLANEOUS SPECIAL REVENUE FUND TO
BE KNOWN AS THE EDUCATION FINANCING ACCOUNT.
  2.  NOTWITHSTANDING ANY OTHER LAW, RULE OR REGULATION TO THE CONTRARY,
THE STATE COMPTROLLER IS HEREBY AUTHORIZED AND DIRECTED TO  RECEIVE,  ON
AND  AFTER JANUARY FIRST, TWO THOUSAND TWELVE, FOR DEPOSIT TO THE CREDIT
OF THE EDUCATION FINANCING ACCOUNT IN THE STATE EDUCATION DEPARTMENT ANY
AMOUNT OF TAX RECEIPTS  FROM  THE  REAL  PROPERTY  TAX  CIRCUIT  BREAKER
ACCOUNT UNDER SECTION NINETY-NINE-T OF THIS ARTICLE WHICH ARE DETERMINED
BY  THE  DIRECTOR OF THE BUDGET TO BE IN EXCESS OF THE AMOUNTS NECESSARY
FOR THE STATE TO MEET THE OBLIGATIONS PROVIDED FOR UNDER SUBSECTION (SS)
OF SECTION SIX HUNDRED SIX OF THE TAX LAW, AS SET FORTH  IN  SUBDIVISION
TWO OF SECTION NINETY-NINE-T OF THIS ARTICLE.
  S 10. This act shall take effect immediately.

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