senate Bill S5016C

Includes New York exemptions of a resident individual within the cost of living adjustment and makes adjustment applicable to tax years beginning on or after 1/1/13

download pdf

Sponsor

Co-Sponsors

view all co-sponsors

Bill Status


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

actions

  • 02 / May / 2011
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 20 / May / 2011
    • AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 20 / May / 2011
    • PRINT NUMBER 5016A
  • 07 / Jun / 2011
    • REPORTED AND COMMITTED TO FINANCE
  • 04 / Jan / 2012
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 05 / Jan / 2012
    • AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 05 / Jan / 2012
    • PRINT NUMBER 5016B
  • 04 / May / 2012
    • AMEND (T) AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 04 / May / 2012
    • PRINT NUMBER 5016C
  • 31 / May / 2012
    • REPORTED AND COMMITTED TO FINANCE

Summary

Includes New York exemptions of a resident individual within the cost of living adjustment; makes such adjustment applicable to tax years beginning on or after January 1, 2013.

do you support this bill?

Bill Details

See Assembly Version of this Bill:
A8149B
Versions:
S5016
S5016A
S5016B
S5016C
Legislative Cycle:
2011-2012
Current Committee:
Senate Finance
Law Section:
Tax Law
Laws Affected:
Amd ยง601-a, Tax L

Votes

5
0
5
Aye
0
Nay
2
aye with reservations
0
absent
1
excused
0
abstained
show Investigations and Government Operations committee vote details
aye wr (2)
excused (1)

Sponsor Memo

BILL NUMBER:S5016C

TITLE OF BILL:

An act
to amend the tax law, in relation to
including New York exemptions of a resident individual within the cost of
living adjustment and making such adjustment applicable to tax years
beginning on or after January 1, 2013

PURPOSE:

To adjust the taxable income brackets, the standard deduction and the
dependent exemption under the personal income tax to the rate of
inflation.

SUMMARY OF PROVISIONS:

Section 1 amends section 601 of the Tax Law to adjust the rate
brackets for each personal income tax filing type for the rate of
inflation.

Section 2 provides effective date.

JUSTIFICATION:

The Federal Government provides for a cost of living adjustment in
relation to the imposition of the personal income tax at the federal
level. This cost of living adjustment applies to the taxable income
levels to which the tax rates apply, the standard deduction and the
personal exemption. By utilizing this cost of living adjustment, the
"bracket creep" is eliminated which forces a taxpayer into a higher
income tax bracket as a result of his income increasing due to
inflation.

In December of 2011 the Tax Law was amended and indexed the income
brackets and the standard deduction to the rate of inflation.
However, this is only effective for 2 years. The dependent exemption,
which is set at $1,000 per dependent, has not been changed since
1987. In comparison, the Federal Government exemption is equal to
$3,650 per dependent.

LEGISLATIVE HISTORY:

New bill.

FISCAL IMPLICATIONS:

$100M in fiscal year 2013-14; $300M when fully effective.

EFFECTIVE DATE:

Applies to tax years beginning on or after January 1, 2013.


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

                                 5016--C

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                               May 2, 2011
                               ___________

Introduced  by  Sens. DeFRANCISCO, SKELOS, LARKIN, MAZIARZ, RANZENHOFER,
  SEWARD, ZELDIN -- read twice and ordered printed, and when printed  to
  be  committed  to the Committee on Investigations and Government Oper-
  ations -- committee discharged, bill  amended,  ordered  reprinted  as
  amended  and  recommitted  to  said  committee  --  recommitted to the
  Committee on Investigations and Government  Operations  in  accordance
  with  Senate  Rule  6,  sec.  8 -- committee discharged, bill amended,
  ordered reprinted as amended and  recommitted  to  said  committee  --
  committee  discharged,  bill amended, ordered reprinted as amended and
  recommitted to said committee

AN ACT to  amend  the  tax  law,  in  relation  to  including  New  York
  exemptions  of a resident individual within the cost of living adjust-
  ment and making such adjustment applicable to tax years  beginning  on
  or after January 1, 2013

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

  Section 1. Section 601-a of the tax law, as added by section 9 of part
A of chapter 56 of the laws of 2011, is amended to read as follows:
  S 601-a. Cost of living adjustment. (a) For tax [year] YEARS BEGINNING
ON OR AFTER JANUARY FIRST, two thousand thirteen, the commissioner,  not
later  than  September  first[,  two thousand twelve,] OF EACH PRECEDING
CALENDAR YEAR, shall multiply the amounts specified in subsection (b) of
this section for tax year two thousand twelve by one plus  the  cost  of
living  adjustment described in subsection (c) of this section. [For tax
year two thousand fourteen, the commissioner, not later  than  September
first,  two  thousand  thirteen, shall multiply the amounts specified in
subsection (b) of this section for tax year two thousand thirteen by one
plus the cost of living adjustment.]
  (b) The following amounts shall be  indexed  by  the  cost  of  living
adjustment.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10973-08-2

S. 5016--C                          2

  (1) The dollar amounts in the tax tables set forth in paragraph one of
subsection  (a),  paragraph  one  of subsection (b) and paragraph one of
subsection (c) of section six hundred one of this part.
  (2)  The dollar amount in the numerator of the fractions in subsection
(d) of section six hundred one of this part that is not  fifty  thousand
dollars.
  (3)  The  New  York  standard  deduction  of  a resident individual in
section six hundred fourteen of this article.
  (4) THE NEW YORK EXEMPTIONS OF A RESIDENT INDIVIDUAL  IN  SECTION  SIX
HUNDRED SIXTEEN OF THIS ARTICLE.
  (c)  The cost of living adjustment for a tax year is the percentage if
any, by which the average monthly value of the consumer price index  for
the twelve month period ending on June thirtieth of the year immediately
preceding  the tax year for which the adjustment is being made (referred
to as the adjustment year) exceeds the  average  monthly  value  of  the
consumer  price index for the twelve month period ending on June thirti-
eth [of the year immediately preceding the adjustment year] TWO THOUSAND
TWELVE. For purposes of this section, the consumer price index means the
consumer price index for all urban consumers  published  by  the  United
States department of labor.
  (d) If the product of the amounts in subsection (b) and subsection (c)
of  this  section is not a multiple of [fifty] ONE HUNDRED dollars, such
increase shall be rounded to  the  next  [lowest]  HIGHEST  multiple  of
[fifty] ONE HUNDRED dollars.
  S  2.  This  act  shall take effect immediately and shall apply to tax
years beginning on or after January 2013.

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.