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.