senate Bill S7165A

Limits imposition of metropolitan commuter transportation tax on self-employment earnings to annual earnings over $250,000

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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

  • 01 / May / 2012
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 14 / May / 2012
    • AMEND (T) AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 14 / May / 2012
    • PRINT NUMBER 7165A
  • 20 / Jun / 2012
    • COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • 20 / Jun / 2012
    • ORDERED TO THIRD READING CAL.1415
  • 20 / Jun / 2012
    • PASSED SENATE
  • 20 / Jun / 2012
    • DELIVERED TO ASSEMBLY
  • 20 / Jun / 2012
    • REFERRED TO WAYS AND MEANS

Summary

Limits imposition of the metropolitan commuter transportation tax on self-employment earnings to annual earnings over $250,000, and establishes tax rates for the taxation of such earnings.

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Bill Details

Versions:
S7165
S7165A
Legislative Cycle:
2011-2012
Current Committee:
Law Section:
Tax Law
Laws Affected:
Amd ยง801, Tax L

Sponsor Memo

BILL NUMBER:S7165A

TITLE OF BILL:
An act to amend the tax law, in relation to the metropolitan commuter
transportation mobility tax rates on earnings from self-employment

PURPOSE:
This legislation would repeal the imposition of the metropolitan
commuter transportation tax on earnings from self-employment.

SUMMARY OF PROVISIONS:
Section One - amends paragraph 2 of subsection (a) of section 801 of
the tax law, as amended by section 1 of part N of chapter 59 of the
laws of 2012 to state that for individuals with net earnings that are
attributable to the MCTD from self-employment of individuals if such
earnings attributable to the MCTD exceed two hundred and fifty
thousand dollars for the tax year, the tax is imposed at a rate of (A)
eleven hundredths (.11) percent of the net earnings from
self-employment if such earnings attributable to the MCTD are greater
than two hundred and fifty thousand dollars but do not exceed three
hundred thousand dollars in any tax year, (B) twenty-three hundredths
(.23) percent of the net earnings from self-employment if such
earnings attributable to the MCTD are greater than three hundred
thousand dollars but do not exceed three hundred and fifty thousand
dollars in any tax year, and (C) thirty-four hundredths (.34) percent
of the net earnings from self-employment if such earnings attributable
to the MCTD are greater than three hundred and fifty thousand dollars
in any tax year.

Section - Two states this act shall take effect on the first of July
next succeeding the date on which it shall have become law.

JUSTIFICATION:
In 2011, the metropolitan commuter transportation tax was repealed for
approximately 289,000 businesses with annual payrolls below $1.25
million. More than 6,000 businesses with payrolls between $1.25 and
$1.75 had their payroll tax cut by as much as two-thirds.

Under the current law, self-employed individuals who earn over $50,000
a year are still paying the metropolitan commuter transportation tax.
This legislation will repeal the metropolitan commuter transportation
tax for self-employed individuals who earn less than $250,000
annually.

This legislation will also reduce the amount that self-employed
individuals who earn from $250,000 to $300,000 to .11 percent, and
self employed individuals who earn from $300,000 to $350,000 to .23
percent.

LEGISLATIVE HISTORY:
New bill.

FISCAL IMPLICATIONS:
To be determined.

EFFECTIVE DATE:


This act shall take effect on the first of July next succeeding the
date on which it shall have become law.

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

                                 7165--A

                            I N  S E N A T E

                               May 1, 2012
                               ___________

Introduced  by  Sen.  BALL  --  read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment  Operations  --  committee  discharged,  bill  amended,   ordered
  reprinted as amended and recommitted to said committee

AN  ACT  to  amend the tax law, in relation to the metropolitan commuter
  transportation mobility tax rates on earnings from self-employment

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

  Section  1.  Paragraph  2  of subsection (a) of section 801 of the tax
law, as amended by section 1 of part N of chapter  59  of  the  laws  of
2012, is amended to read as follows:
  (2)  For  individuals[,  the  tax  is imposed at a rate of thirty-four
hundredths (.34) percent of the] WITH net earnings THAT ARE ATTRIBUTABLE
TO THE MCTD from self-employment of individuals [that  are  attributable
to  the  MCTD]  if  such  earnings  attributable  to the MCTD exceed TWO
HUNDRED fifty thousand dollars for the tax year, THE TAX IS IMPOSED AT A
RATE OF (A) ELEVEN HUNDREDTHS (.11) PERCENT OF  THE  NET  EARNINGS  FROM
SELF-EMPLOYMENT  IF  SUCH  EARNINGS ATTRIBUTABLE TO THE MCTD ARE GREATER
THAN TWO HUNDRED FIFTY THOUSAND DOLLARS BUT DO NOT EXCEED THREE  HUNDRED
THOUSAND  DOLLARS  IN  ANY  TAX  YEAR, (B) TWENTY-THREE HUNDREDTHS (.23)
PERCENT OF THE  NET  EARNINGS  FROM  SELF-EMPLOYMENT  IF  SUCH  EARNINGS
ATTRIBUTABLE TO THE MCTD ARE GREATER THAN THREE HUNDRED THOUSAND DOLLARS
BUT  DO NOT EXCEED THREE HUNDRED FIFTY THOUSAND DOLLARS IN ANY TAX YEAR,
AND (C) THIRTY-FOUR HUNDREDTHS (.34) PERCENT OF THE  NET  EARNINGS  FROM
SELF-EMPLOYMENT  IF  SUCH  EARNINGS ATTRIBUTABLE TO THE MCTD ARE GREATER
THAN THREE HUNDRED FIFTY THOUSAND DOLLARS IN ANY TAX YEAR.
  S 2. This act shall take effect on the first of July  next  succeeding
the date on which it shall have become a law.



 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15628-02-2

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