Senate Bill S6519

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

                                  6519

                            I N  S E N A T E

                            January 22, 2016
                               ___________

Introduced  by  Sen.  AKSHAR -- 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  business  income  base
  rate and certain small business taxpayers (Part A); to repeal sections
  24,  28  and  31  of  the  tax law, subsections (gg), (jj) and (qq) of
  section 606 of the tax law, subdivisions 20,  23  and  32  of  section
  210-B of the tax law and subdivisions (b) and (c) of section 1201-a of
  the  tax law, relating to the empire state film production credit, the
  empire state commercial production credit, and the empire  state  film
  post production credit (Part B); and to direct the empire state devel-
  opment  corporation  to cease all advertisement and promotional activ-
  ities for the Start-Up NY Program (Part C)

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

  Section 1. This act enacts into law major components of legislation to
assist  small businesses within New York state. Each component is wholly
contained within a Part identified as Parts A through C.  The  effective
date  for  each  particular  provision contained within such Part is set
forth in the last section of such Part. Any  provision  in  any  section
contained within a Part, including the effective date of the Part, which
makes  a  reference  to a section "of this act", when used in connection
with that particular component, shall be deemed to mean and refer to the
corresponding section of the Part in which it is found. Section four  of
this act sets forth the general effective date of this act.
  S  2.  This act shall be known and may be cited as the "small business
jobs revitalization act".

                                 PART A

  Section 1. Subparagraph (iv) of paragraph  (a)  of  subdivision  1  of
section  210 of the tax law, as amended by section 12 of part A of chap-
ter 59 of the laws of 2014, is amended to read as follows:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13430-03-6
              

S. 6519                             2

  (iv) (A) for taxable years beginning before January first,  two  thou-
sand  sixteen,  if the business income base is not more than two hundred
ninety thousand dollars the amount shall be six and one-half percent  of
the  business  income base; if the business income base is more than two
hundred  ninety thousand dollars but not over three hundred ninety thou-
sand dollars the amount shall be the sum of (1) eighteen thousand  eight
hundred  fifty dollars, (2) seven and one-tenth percent of the excess of
the business income base over two hundred ninety  thousand  dollars  but
not  over three hundred ninety thousand dollars and (3) four and thirty-
five hundredths percent of the excess of the business income  base  over
three  hundred  fifty thousand dollars but not over three hundred ninety
thousand dollars;
  (B) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST,  TWO  THOU-
SAND  SIXTEEN  AND  BEFORE JANUARY FIRST, TWO THOUSAND SEVENTEEN, IF THE
BUSINESS INCOME BASE IS NOT MORE THAN FIVE HUNDRED THOUSAND DOLLARS  THE
AMOUNT  SHALL  BE  THREE  AND ONE-QUARTER PERCENT OF THE BUSINESS INCOME
BASE; IF THE BUSINESS INCOME BASE IS MORE  THAN  FIVE  HUNDRED  THOUSAND
DOLLARS  BUT  NOT  OVER SIX HUNDRED THOUSAND DOLLARS THE AMOUNT SHALL BE
THE SUM OF (1) SIXTEEN THOUSAND TWO HUNDRED FIFTY DOLLARS, (2)  SIX  AND
ONE-HALF  PERCENT  OF  THE  EXCESS OF THE BUSINESS INCOME BASE OVER FIVE
HUNDRED THOUSAND DOLLARS BUT NOT OVER SIX HUNDRED THOUSAND  DOLLARS  AND
(3) THIRTY-TWO AND ONE-HALF PERCENT OF THE EXCESS OF THE BUSINESS INCOME
BASE  OVER  FIVE HUNDRED FIFTY THOUSAND DOLLARS BUT NOT OVER SIX HUNDRED
THOUSAND DOLLARS;
  (C) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST,  TWO  THOU-
SAND  SEVENTEEN  AND BEFORE JANUARY FIRST, TWO THOUSAND EIGHTEEN, IF THE
BUSINESS INCOME BASE IS NOT MORE THAN FIVE HUNDRED THOUSAND DOLLARS  THE
AMOUNT SHALL BE TWO AND NINE-TENTHS PERCENT OF THE BUSINESS INCOME BASE;
IF  THE  BUSINESS INCOME BASE IS MORE THAN FIVE HUNDRED THOUSAND DOLLARS
BUT NOT OVER SIX HUNDRED THOUSAND DOLLARS THE AMOUNT SHALL BE THE SUM OF
(1) FOURTEEN THOUSAND FIVE HUNDRED DOLLARS, (2) SIX AND ONE-HALF PERCENT
OF THE EXCESS OF THE BUSINESS INCOME BASE  OVER  FIVE  HUNDRED  THOUSAND
DOLLARS  BUT  NOT  OVER  SIX HUNDRED THOUSAND DOLLARS AND (3) THIRTY-SIX
PERCENT OF THE EXCESS OF THE BUSINESS  INCOME  BASE  OVER  FIVE  HUNDRED
FIFTY THOUSAND DOLLARS BUT NOT OVER SIX HUNDRED THOUSAND DOLLARS;
  (D)  FOR  TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND EIGHTEEN, IF THE BUSINESS INCOME BASE IS NOT MORE THAN FIVE HUNDRED
THOUSAND DOLLARS THE AMOUNT SHALL BE TWO AND  ONE-HALF  PERCENT  OF  THE
BUSINESS  INCOME  BASE;  IF  THE  BUSINESS INCOME BASE IS MORE THAN FIVE
HUNDRED THOUSAND DOLLARS BUT NOT OVER SIX HUNDRED THOUSAND  DOLLARS  THE
AMOUNT SHALL BE THE SUM OF (1) TWELVE THOUSAND FIVE DOLLARS, (2) SIX AND
ONE-HALF  PERCENT  OF  THE  EXCESS OF THE BUSINESS INCOME BASE OVER FIVE
HUNDRED THOUSAND DOLLARS BUT NOT OVER SIX HUNDRED THOUSAND  DOLLARS  AND
(3)  FORTY  PERCENT  OF THE EXCESS OF THE BUSINESS INCOME BASE OVER FOUR
HUNDRED FIFTY THOUSAND  DOLLARS  BUT  NOT  OVER  FIVE  HUNDRED  THOUSAND
DOLLARS.
  S  2. Paragraph 39 of subsection (c) of section 612 of the tax law, as
added by section 1 of part Y of chapter 59  of  the  laws  of  2013,  is
amended to read as follows:
  (39)  In  the case of a taxpayer who is a small business who has busi-
ness income and/or farm income as defined in  the  laws  of  the  United
States,  an  amount  equal  to three percent of the net items of income,
gain, loss and deduction attributable to such business or farm  entering
into  federal adjusted gross income, but not less than zero, for taxable
years beginning ON OR after JANUARY FIRST, two thousand thirteen[,]  BUT
BEFORE  JANUARY  FIRST,  TWO THOUSAND FOURTEEN; an amount equal to three

S. 6519                             3

and three-quarters percent of the net items of income,  gain,  loss  and
deduction  attributable  to  such business or farm entering into federal
adjusted gross income, but not less than zero, for taxable years  begin-
ning  ON OR after JANUARY FIRST, two thousand fourteen[, and] BUT BEFORE
JANUARY FIRST, TWO THOUSAND FIFTEEN; an amount equal to five percent  of
the  net  items of income, gain, loss and deduction attributable to such
business or farm entering into federal adjusted gross  income,  but  not
less  than  zero, for taxable years beginning ON OR after JANUARY FIRST,
two thousand fifteen BUT BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN;  AN
AMOUNT  EQUAL  TO TEN PERCENT OF THE NET ITEMS OF INCOME, GAIN, LOSS AND
DEDUCTION ATTRIBUTABLE TO SUCH BUSINESS OR FARM  ENTERING  INTO  FEDERAL
ADJUSTED  GROSS INCOME, BUT NOT LESS THAN ZERO, FOR TAXABLE YEARS BEGIN-
NING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN BUT BEFORE  JANUARY
FIRST, TWO THOUSAND SEVENTEEN; AN AMOUNT EQUAL TO FIFTEEN PERCENT OF THE
NET ITEMS OF INCOME, GAIN, LOSS AND DEDUCTION ATTRIBUTABLE TO SUCH BUSI-
NESS  OR  FARM ENTERING INTO FEDERAL ADJUSTED GROSS INCOME, BUT NOT LESS
THAN ZERO, FOR TAXABLE YEARS BEGINNING ON OR AFTER  JANUARY  FIRST,  TWO
THOUSAND  SEVENTEEN BUT BEFORE JANUARY FIRST, TWO THOUSAND EIGHTEEN; AND
AN AMOUNT EQUAL TO TWENTY PERCENT OF THE NET ITEMS OF INCOME, GAIN, LOSS
AND DEDUCTION ATTRIBUTABLE TO SUCH BUSINESS OR FARM ENTERING INTO FEDER-
AL ADJUSTED GROSS INCOME, BUT NOT LESS  THAN  ZERO,  FOR  TAXABLE  YEARS
BEGINNING  ON  OR  AFTER  JANUARY FIRST, TWO THOUSAND EIGHTEEN. PROVIDED
THAT SUCH BUSINESS OR FARM INCOME IS LESS THAN OR EQUAL TO FIVE  HUNDRED
THOUSAND  DOLLARS.  For  the  purposes of this paragraph, the term small
business shall mean a [sole proprietor] BUSINESS or a farm business  who
employs  one  or  more  persons  during the taxable year and who has net
business income or net farm income of EQUAL TO OR less than [two hundred
fifty] FIVE HUNDRED thousand dollars. FOR THE  PURPOSES  OF  THIS  PARA-
GRAPH, IF THE TAXPAYER IS A MEMBER, PARTNER, OR SHAREHOLDER OF A LIMITED
LIABILITY  COMPANY, PARTNERSHIP OR S-CORPORATION, THE TAXPAYER WILL ONLY
BE ELIGIBLE UNDER THIS PARAGRAPH IF THE NEW YORK SOURCE GROSS INCOME  OF
THE  LIMITED  LIABILITY  COMPANY,  PARTNERSHIP OR S-CORPORATION DOES NOT
EXCEED ONE MILLION DOLLARS. NEW YORK SOURCE GROSS INCOME IS THE  SUM  OF
THE  MEMBERS,  PARTNERS,  OR SHAREHOLDERS SHARES OF FEDERAL GROSS INCOME
FROM  THE  LIMITED  LIABILITY  COMPANY,  PARTNERSHIP,  OR  S-CORPORATION
DERIVED  FROM  OR CONNECTED WITH NEW YORK SOURCES, DETERMINED IN ACCORD-
ANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED THIRTY-ONE OF THIS ARTI-
CLE AS IF THOSE PROVISIONS AND ANY RELATED PROVISIONS EXPRESSLY REFERRED
TO A COMPUTATION OF FEDERAL GROSS INCOME FROM NEW YORK SOURCES.
  S 3. This act shall take effect immediately.

                                 PART B

  Section 1. Sections 24, 28 and 31 of the tax law, section 28 as  added
by  section 2 of part V of chapter 62 of the laws of 2006 and section 31
as added by section 12 of part Q of chapter 57 of the laws of 2010,  are
REPEALED.
  S  2.  Subsections  (gg), (jj) and (qq) of section 606 of the tax law,
subsection (jj) as added by section 5 of part V of  chapter  62  of  the
laws  of  2006  and  subsection (qq) as added by section 15 of part Q of
chapter 57 of the laws of 2010, are REPEALED.
  S 3. Subdivisions 20, 23 and 32 of section 210-B of the  tax  law  are
REPEALED.
  S  4.  Subdivisions  (b)  and (c) of section 1201-a of the tax law are
REPEALED and subdivision (d) is relettered subdivision (b).
  S 5. This act shall take effect immediately.

S. 6519                             4

                                 PART C

  Section  1. The empire state development corporation shall immediately
cease and discontinue all promotional and advertising campaigns for  the
Start-Up  NY  Program established pursuant to article 21 of the economic
development law. Any remaining funds  appropriated  for  such  campaigns
shall be returned to the general fund.
  S 2. This act shall take effect immediately.
  S 3. Severability clause. If any clause, sentence, paragraph, subdivi-
sion,  section  or  part  of  this act shall be adjudged by any court of
competent jurisdiction to be invalid, such judgment  shall  not  affect,
impair,  or  invalidate  the remainder thereof, but shall be confined in
its operation to the clause, sentence, paragraph,  subdivision,  section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the  legislature  that  this  act  would  have been enacted even if such
invalid provisions had not been included herein.
  S 4. This act shall take effect immediately, provided,  however,  that
the  applicable effective date of Parts A through C of this act shall be
as specifically set forth in the last section of such Parts.