senate Bill S5359

Excludes outside income of nonresident employees or their spouses from being included in New York city personal income tax

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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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  • 11 / May / 2011
    • REFERRED TO CITIES
  • 04 / Jan / 2012
    • REFERRED TO CITIES

Summary

Excludes outside income of nonresident employees or their spouses from being included in New York city personal income tax.

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Bill Details

See Assembly Version of this Bill:
A2768A
Versions:
S5359
Legislative Cycle:
2011-2012
Current Committee:
Senate Cities
Law Section:
New York City Charter
Laws Affected:
Amd ยง1127, NYC Chart
Versions Introduced in Previous Legislative Cycles:
2009-2010: A2646A, A2646A
2007-2008: A4115, A4115

Sponsor Memo

BILL NUMBER:S5359

TITLE OF BILL:
An act
to amend
the New York city charter in relation to
condition precedent to employment

PURPOSE OR GENERAL IDEA OF BILL:
This bill Would exclude employees' outside income, as well as the
income of their spouse, from the amount calculated upon which such
employee is required to pay City taxes.

SUMMARY OF SPECIFIC PROVISIONS:
Section One amends Section 1127 of the New York city charter to add
language that City employees' outside income and their spouses'
income shall not be included in the precedent to employment
agreement, which subjects the employee's income to City taxation
regardless of whether they move out of New York City. It also states
that these law changes would not require reimbursement for taxes paid
prior to the law Change.
Section Two is the effective date.

JUSTIFICATION:
Currently, city employees living outside New York City are subject to
New York City personal income tax on their New York City wages.
Additionally, persons accepting employment in New York City are
required to sign a form as a condition precedent to accepting such
employment subjecting them to taxation on all income as though they
were a city resident, regardless of where they reside, and throughout
the course of such employment. This agreement subjects the employee
to New York City tax on income made outside of New York City, and for
spouses filing jointly, includes the income of the spouse in the
amount subject to New York City taxation.

This legislation provides that income earned outside of New York City
shall not be included and also exempts the earnings of a spouse for
the purposes of this section. This legislation would be proactive and
does not alter the terms of any agreement signed as a condition
precedent to employment prior to this bill's enactment.

PRIOR LEGISLATIVE HISTORY:
2002: A.9886 Held for consideration in Ways & Means/No same as
2003-04: A.2557 Held for consideration in Ways & Means/No same as
2007-08: A.4115 Referred to Ways & Means/No same as
2009-10: A.2646-A Held for consideration in Ways & Means/No same as

FISCAL IMPLICATION:
None to the State.

EFFECTIVE DATE:

This act shall take effect immediately and shall not
apply to any agreement executed on or before such date.

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

                                  5359

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                              May 11, 2011
                               ___________

Introduced  by  Sen.  ZELDIN -- read twice and ordered printed, and when
  printed to be committed to the Committee on Cities

AN ACT to amend the New York  city  charter  in  relation  to  condition
  precedent to employment

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

  Section 1.  Subsection a of section 1127 of the New York city charter,
as added by a vote of the people of the city of New York at the  general
election held in November of 1988, is amended to read as follows:
  a. Notwithstanding the provisions of any local law, rule or regulation
to  the  contrary,  every person seeking employment with the city of New
York or any of its agencies regardless of civil  service  classification
or  status  shall  sign  an  agreement  as a condition precedent to such
employment to the effect that if such person is or becomes a nonresident
individual as that term is defined in section 11-1706 of the administra-
tive code of the city of New York or any similar provision of such code,
during employment by the city, such person  will  pay  to  the  city  an
amount  by  which  a  city personal income tax on residents computed and
determined as if such person were a resident individual, as  defined  in
such  section,  during  such  employment, exceeds the amount of any city
earnings tax and city personal income tax imposed on such person for the
same taxable period; PROVIDED, HOWEVER, ANY OUTSIDE INCOME OF  ANY  SUCH
EMPLOYEE,  EARNED  OUTSIDE OF NEW YORK CITY, SHALL NOT BE INCLUDED.  ANY
INCOME EARNED OUTSIDE OF NEW YORK CITY BY SUCH EMPLOYEE'S  SPOUSE  SHALL
NOT BE CONSIDERED FOR THE PROVISIONS OF THIS SECTION.  THE PROVISIONS OF
THIS  SECTION  SHALL  NOT  BE  CONSTRUED TO REQUIRE ANY REIMBURSEMENT TO
NON-RESIDENT EMPLOYEES OR THEIR SPOUSES FOR  THE  PERIOD  OF  TIME  SUCH
PAYMENT WAS IN FORCE AND EFFECT.
  S 2. This act shall take effect immediately and shall not apply to any
agreement executed on or before such date.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02892-03-1

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