senate Bill S2648

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

  • 23 / Jan / 2013
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 07 / May / 2013
    • REPORTED AND COMMITTED TO FINANCE
  • 17 / Jun / 2013
    • COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • 17 / Jun / 2013
    • ORDERED TO THIRD READING CAL.1378
  • 17 / Jun / 2013
    • PASSED SENATE
  • 17 / Jun / 2013
    • DELIVERED TO ASSEMBLY
  • 17 / Jun / 2013
    • REFERRED TO WAYS AND MEANS
  • 08 / Jan / 2014
    • DIED IN ASSEMBLY
  • 08 / Jan / 2014
    • RETURNED TO SENATE
  • 08 / Jan / 2014
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 02 / Jun / 2014
    • REPORTED AND COMMITTED TO FINANCE
  • 09 / Jun / 2014
    • COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • 09 / Jun / 2014
    • ORDERED TO THIRD READING CAL.1205
  • 10 / Jun / 2014
    • PASSED SENATE
  • 10 / Jun / 2014
    • DELIVERED TO ASSEMBLY
  • 10 / Jun / 2014
    • 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:
S2648
Legislative Cycle:
2013-2014
Current Committee:
Law Section:
Tax Law
Laws Affected:
Amd ยง801, Tax L
Versions Introduced in 2011-2012 Legislative Cycle:
S7165A

Sponsor Memo

BILL NUMBER:S2648 REVISED MEMO 05/22/2014

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:

06/20/12 - S.7165-A Passed Senate
06/17/13 - S.2648 Passed Senate


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
________________________________________________________________________

                                  2648

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 23, 2013
                               ___________

Introduced  by  Sen.  BALL  --  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  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.
                                                           LBD07360-01-3

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