NY State Senate Bill 2009-S2021

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2010	referred to investigations and government operations
Feb 11, 2009	referred to investigations and government operations

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2009-S2021 (ACTIVE) - Details

See Assembly Version of this Bill:: A5912
Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §601, Tax L

2009-S2021 (ACTIVE) - Summary

Enacts the "fair share tax reform act of 2009".

2009-S2021 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S2021

 TITLE OF BILL :
An act to amend the tax law, in relation to enacting the "fair share
tax reform act of 2009"


 PURPOSE :
This legislation would provide a slight tax on New Yorkers with an
annual of income in excess of $250,000.

 SUMMARY OF PROVISIONS :

Section 1 states the legislative intent and sets forth the need to
enact the "Fair Share Tax Reform Act of 2009."

Section 2 renumbers existing State Tax law paragraphs.

Section 3 amends paragraph 1 of subsection (a) of section 601 of the
tax law, as amended by section 1 of part Y3 of Chapter 62 of the laws
of 2003 to create new income tax brackets for income over $250,000 for
taxpayers filing as married.

Section 4 renumbers existing State Tax Law paragraphs.

Section 5 amends Paragraph 1 of subsection (b) of Section 601 of the

State Tax Law, as amended by Section 1 of part Y3 of Chapter 62 of the
Laws of 2003 to create new income tax brackets for income over
$250,000 for taxpayers filing as head of household.

Section 6 renumbers existing State Tax Law paragraphs.

Section 7 amends paragraph 1 of subsection (c) of Section 601 of the
State Tax Law, as amended by section 1 of part Y3 of Chapter 62 of the
Laws of 2003 to create new income tax brackets for income over
$250,000 for taxpayers filing as single.

Section 8 amends benefit recapture table provisions stipulated in
Section 601 of the State Tax Law that conforms these recapture
provisions to make them consistent with the changes in the personal
income tax brackets mandated by Sections 3,5, and 7 of this bill.

Section 9 states the effective date.

 JUSTIFICATION :
Given the current economic crisis in New York State and across the
country, the Legislature must take action to enact fair and equitable
reforms to New York State's tax system. over the last 30 years, New
York State's personal income tax laws have become increasingly unfair
and inequitable. In fact, over the last 30 years, New York State has
cut its top personal income tax rate by more than 50%. As a result,
the poorest 20% of New Yorkers now pay 12.6% of their income in state
and local taxes, middle class New Yorkers making between $27,000 and
$44,000 a year pay 11.6%, and the wealthiest 1% pay only 6.5%.

The severe cuts in taxes to the wealthy have led New York State to
increasingly rely on other more regressive stale and local fees and
taxes, including sales and property taxes. With the current recession
and fiscal crisis, New York's poor and working families are again
faced with higher fees and taxes while suffering major cutbacks in
education, health and public protections services. Instead of placing
more of a burden on these families, the Legislature must enact modest
tax increases on income over $250,000.

The Fair Share Tax Reform Act of 2009 is an effort to undo the
regressive effects of the last 30 years of New York tax policy. Its
enactment would insure all New Yorkers contribute their fare share and
would restore some progressivity back to our personal income tax
system.

 LEGISLATIVE HISTORY :
New Legislation.

 FISCAL IMPLICATIONS :
This legislation would generate approximately $6.2 billion in new
revenue for the state.

 EFFECTIVE DATE :
This act shall take effect immediately.

2009-S2021 (ACTIVE) - Bill Text download pdf

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

                                  2021

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                            February 11, 2009
                               ___________

Introduced by Sens. SCHNEIDERMAN, THOMPSON, BRESLIN, DIAZ, ADAMS, ADDAB-
  BO,  HASSELL-THOMPSON, HUNTLEY, MONSERRATE, MONTGOMERY, ONORATO, PARK-
  ER, PERKINS, SAMPSON, SERRANO, SQUADRON, STAVISKY, STEWART-COUSINS  --
  read  twice  and  ordered printed, and when printed to be committed to
  the Committee on Investigations and Government Operations

AN ACT to amend the tax law, in relation to enacting the "fair share tax
  reform act of 2009"

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

  Section  1.   Legislative Intent. The legislature hereby finds that at
no time since the great depression has the need to enact fair and  equi-
table  reform  to  the state's tax system been greater. Over the last 30
years, New York state's personal income tax laws have become increasing-
ly unfair and inequitable. Personal income tax rates for the  wealthiest
New  Yorkers  have  been  reduced by more than 50%, and upper income tax
brackets have been eliminated, substantially reducing the burden on  New
Yorkers  earning  over  $250,000 per year. New York state now requires a
family struggling to get by on just over $40,000  of  taxable  income  a
year  to  pay the same marginal tax rate as a family fortunate enough to
make $4,000,000 a year.
  While personal income tax rates have been cut, New York  has  increas-
ingly  relied on other, more regressive, state and local fees and taxes,
including sales and property taxes. As we seek to  address  an  historic
fiscal  crisis,  New  York's  poor  and working families are again being
asked to pay higher fees and  higher  taxes,  while  they  endure  major
cutbacks in education, health and public protection services.
  The  legislature  therefore finds that the Empire State now has one of
the most regressive tax systems in the  United  States,  with  poor  and
middle  income  families  paying a far higher portion of their income in
state and local taxes than the wealthiest New Yorkers.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04364-06-9

S. 2021                             2

  Accordingly, the legislature hereby finds  and  declares  that  it  is
imperative  that  we  reform  the  state's personal income tax system to
restore progressivity and fairness. In order  to  insure  that  all  New
Yorkers  do  their  fair  share  as we implement policies to address our
state's fiscal crisis, the legislature hereby enacts the "fair share tax
reform act of 2009".
  S  2.   Paragraphs 2, 3, 4, 5, 6, 7 and 8 of subsection (a) of section
601 of the tax law are renumbered paragraphs 3, 4, 5, 6, 7, 8 and 9.
  S 3. Paragraph 1 of subsection (a) of section 601 of the tax  law,  as
amended  by  section  1 of part Y3 of chapter 62 of the laws of 2003, is
amended to read as follows:
  (1) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND EIGHT:

IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
NOT OVER $16,000                      4% OF THE NEW YORK TAXABLE
                                      INCOME
OVER $16,000 BUT NOT OVER $22,000     $640 PLUS 4.5% OF EXCESS OVER
                                      $16,000
OVER $22,000 BUT NOT OVER $26,000     $910 PLUS 5.25% OF EXCESS OVER
                                      $22,000
OVER $26,000 BUT NOT OVER $40,000     $1,120 PLUS 5.9% OF EXCESS OVER
                                      $26,000
OVER $40,000 BUT NOT OVER $250,000    $1,946 PLUS 6.85% OF EXCESS OVER
                                      $40,000
OVER $250,000 BUT NOT OVER $500,000   $16,331 PLUS 8.25% OF EXCESS OVER
                                      $250,000
OVER $500,000 BUT NOT OVER $1,000,000 $36,956 PLUS 8.97% OF EXCESS OVER
                                      $500,000
OVER $1,000,000                       $81,806 PLUS 10.30% OF EXCESS OVER
                                      $1,000,000

  (2) For taxable years beginning after two thousand five AND BEFORE TWO
THOUSAND NINE:

If the New York taxable income is:    The tax is:
Not over $16,000                      4% of the New York taxable
                                      income
Over $16,000 but not over $22,000     $640 plus 4.5% of excess over
                                      $16,000
Over $22,000 but not over $26,000     $910 plus 5.25% of excess over
                                      $22,000
Over $26,000 but not over $40,000     $1,120 plus 5.9% of excess over
                                      $26,000
Over $40,000                          $1,946 plus 6.85% of excess over
                                      $40,000

  S 4. Paragraphs 2, 3, 4, 5, 6, 7 and 8 of subsection  (b)  of  section
601 of the tax law are renumbered paragraphs 3, 4, 5, 6, 7, 8 and 9.
  S  5.  Paragraph 1 of subsection (b) of section 601 of the tax law, as
amended by section 1 of part Y3 of chapter 62 of the laws  of  2003,  is
amended to read as follows:
  (1) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND EIGHT:

IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
NOT OVER $11,000                      4% OF THE NEW YORK TAXABLE

S. 2021                             3

                                      INCOME
OVER $11,000 BUT NOT OVER $15,000     $440 PLUS 4.5% OF EXCESS OVER
                                      $11,000
OVER $15,000 BUT NOT OVER $17,000     $620 PLUS 5.25% OF EXCESS OVER
                                      $15,000
OVER $17,000 BUT NOT OVER $30,000     $725 PLUS 5.9% OF EXCESS OVER
                                      $17,000
OVER $30,000 BUT NOT OVER $250,000    $1,492 PLUS 6.85% OF EXCESS OVER
                                      $30,000
OVER $250,000 BUT NOT OVER $500,000   $16,562 PLUS 8.25% OF EXCESS OVER
                                      $250,000
OVER $500,000 BUT NOT OVER $1,000,000 $37,187 PLUS 8.97% OF EXCESS OVER
                                      $500,000
OVER $1,000,000                       $82,037 PLUS 10.30% OF EXCESS OVER
                                      $1,000,000

  (2) For taxable years beginning after two thousand five AND BEFORE TWO
THOUSAND NINE:

If the New York taxable income is:    The tax is:
Not over $11,000                      4% of the New York taxable
                                      income
Over $11,000 but not over $15,000     $440 plus 4.5% of excess over
                                      $11,000
Over $15,000 but not over $17,000     $620 plus 5.25% of excess over
                                      $15,000
Over $17,000 but not over $30,000     $725 plus 5.9% of excess over
                                      $17,000
Over $30,000                          $1,492 plus 6.85% of excess over
                                      $30,000

  S  6.  Paragraphs  2, 3, 4, 5, 6, 7 and 8 of subsection (c) of section
601 of the tax law are renumbered paragraphs 3, 4, 5, 6, 7, 8 and 9.
  S 7. Paragraph 1 of subsection (c) of section 601 of the tax  law,  as
amended  by  section  1 of part Y3 of chapter 62 of the laws of 2003, is
amended to read as follows:
  (1) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND EIGHT:

IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
NOT OVER $8,000                       4% OF THE NEW YORK TAXABLE
                                      INCOME
OVER $8,000 BUT NOT OVER $11,000      $320 PLUS 4.5% OF EXCESS OVER
                                      $8,000
OVER $11,000 BUT NOT OVER $13,000     $455 PLUS 5.25% OF EXCESS OVER
                                      $11,000
OVER $13,000 BUT NOT OVER $20,000     $560 PLUS 5.9% OF EXCESS OVER
                                      $13,000
OVER $20,000 BUT NOT OVER $250,000    $973 PLUS 6.85% OF EXCESS OVER
                                      $20,000
OVER $250,000 BUT NOT OVER $500,000   $16,728 PLUS 8.25% OF EXCESS OVER
                                      $250,000
OVER $500,000 BUT NOT OVER $1,000,000 $37,353 PLUS 8.97% OF EXCESS OVER
                                      $500,000
OVER $1,000,000                       $82,203 PLUS 10.30% OF EXCESS OVER
                                      $1,000,000

S. 2021                             4

  (2) For taxable years beginning after two thousand five AND BEFORE TWO
THOUSAND NINE:

If the New York taxable income is:    The tax is:
Not over $8,000                       4% of the New York taxable
                                      income
Over $8,000 but not over $11,000      $320 plus 4.5% of excess over
                                      $8,000
Over $11,000 but not over $13,000     $455 plus 5.25% of excess over
                                      $11,000
Over $13,000 but not over $20,000     $560 plus 5.9% of excess over
                                      $13,000
Over $20,000                          $973 plus 6.85% of excess over
                                      $20,000

  S  8.  Paragraphs  2 and 3 of subsection (d) of section 601 of the tax
law, as amended by section 1 of part R of chapter  63  of  the  laws  of
2003, subparagraph (B) of paragraph 3 as separately amended by section 2
of  part  R  of  chapter  63 of the laws of 2003, are amended to read as
follows:
  (2) Resident  married  individuals  filing  joint  returns,  surviving
spouses,  resident  heads of households, resident unmarried individuals,
resident  married  individuals  filing  separate  returns  and  resident
estates  and trusts. (A) The tax table benefit is the difference between
(i) the amount  of  taxable  income  set  forth  in  the  tax  table  in
subsection  (a),  (b)  or  (c)  of this section, as the case may be, not
subject to the [second highest] 6.85 PERCENT rate of tax for the taxable
year multiplied by such rate and (ii) the second highest dollar  denomi-
nated  tax  for such amount of taxable income set forth in the tax table
applicable to the taxable year in subsection (a), (b)  or  (c)  of  this
section, as the case may be, less the tax table benefit in paragraph one
of this subsection.
  (B)  The  fraction is computed as follows: the numerator is the lesser
of fifty thousand dollars or the  excess  of  New  York  adjusted  gross
income  for the taxable year over one hundred fifty thousand dollars and
the denominator is fifty thousand dollars.
  (C) This paragraph shall [only] apply to taxable years beginning after
two thousand [two and before two thousand six] EIGHT.
  (3)  RESIDENT MARRIED  INDIVIDUALS  FILING  JOINT  RETURNS,  SURVIVING
SPOUSES,  RESIDENT  HEADS OF HOUSEHOLDS, RESIDENT UNMARRIED INDIVIDUALS,
RESIDENT  MARRIED  INDIVIDUALS  FILING  SEPARATE  RETURNS  AND  RESIDENT
ESTATES  AND TRUSTS. (A) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN
(I) THE AMOUNT  OF  TAXABLE  INCOME  SET  FORTH  IN  THE  TAX  TABLE  IN
SUBSECTION  (A),  (B)  OR  (C)  OF THIS SECTION, AS THE CASE MAY BE, NOT
SUBJECT TO THE 8.25 PERCENT RATE OF TAX FOR THE TAXABLE YEAR  MULTIPLIED
BY SUCH RATE AND (II) THE THIRD  HIGHEST DOLLAR DENOMINATED TAX FOR SUCH
AMOUNT  OF  TAXABLE  INCOME SET FORTH IN THE TAX TABLE APPLICABLE TO THE
TAXABLE YEAR IN SUBSECTION (A), (B) OR (C) OF THIS SECTION, AS THE  CASE
MAY BE, LESS THE TAX TABLE BENEFIT IN PARAGRAPH ONE OF THIS SUBSECTION.
  (B)  THE  FRACTION IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE LESSER
OF FIFTY THOUSAND DOLLARS OR THE  EXCESS  OF  NEW  YORK  ADJUSTED  GROSS
INCOME  FOR THE TAXABLE YEAR OVER TWO HUNDRED FIFTY THOUSAND DOLLARS AND
THE DENOMINATOR IS FIFTY THOUSAND DOLLARS.
  (C) THIS PARAGRAPH SHALL APPLY TO TAXABLE YEARS  BEGINNING  AFTER  TWO
THOUSAND EIGHT.

S. 2021                             5

  (4)  RESIDENT  MARRIED  INDIVIDUALS  FILING  JOINT  RETURNS, SURVIVING
SPOUSES, RESIDENT HEADS OF HOUSEHOLDS, RESIDENT  UNMARRIED  INDIVIDUALS,
RESIDENT  MARRIED  INDIVIDUALS  FILING  SEPARATE  RETURNS  AND  RESIDENT
ESTATES AND TRUSTS. (A) THE TAX TABLE BENEFIT IS THE DIFFERENCE  BETWEEN
(I)  THE  AMOUNT  OF  TAXABLE  INCOME  SET  FORTH  IN  THE  TAX TABLE IN
SUBSECTION (A), (B) OR (C) OF THIS SECTION, AS  THE  CASE  MAY  BE,  NOT
SUBJECT  TO THE 8.97 PERCENT RATE OF TAX FOR THE TAXABLE YEAR MULTIPLIED
BY SUCH RATE AND (II) THE SECOND HIGHEST DOLLAR DENOMINATED TAX FOR SUCH
AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE  APPLICABLE  TO  THE
TAXABLE  YEAR IN SUBSECTION (A), (B) OR (C) OF THIS SECTION, AS THE CASE
MAY BE, LESS THE TAX TABLE BENEFIT IN PARAGRAPH ONE OF THIS SUBSECTION.
  (B) THE FRACTION IS COMPUTED AS FOLLOWS: THE NUMERATOR IS  THE  LESSER
OF  FIFTY  THOUSAND  DOLLARS  OR  THE  EXCESS OF NEW YORK ADJUSTED GROSS
INCOME FOR THE TAXABLE YEAR OVER FIVE HUNDRED THOUSAND DOLLARS  AND  THE
DENOMINATOR IS FIFTY THOUSAND DOLLARS.
  (C)  THIS  PARAGRAPH  SHALL APPLY TO TAXABLE YEARS BEGINNING AFTER TWO
THOUSAND EIGHT.
  (5) Resident  married  individuals  filing  joint  returns,  surviving
spouses,  resident  heads of households, resident unmarried individuals,
resident  married  individuals  filing  separate  returns  and  resident
estates  and trusts. (A) The tax table benefit is the difference between
(i) the amount  of  taxable  income  set  forth  in  the  tax  table  in
subsection  (a),  (b)  or  (c)  of this section, as the case may be, not
subject to the highest rate of tax for the taxable  year  multiplied  by
such  rate  and (ii) the highest dollar denominated tax set forth in the
tax table applicable to the taxable year in subsection (a), (b)  or  (c)
of this section, as the case may be, less the sum of the tax table bene-
fits in paragraphs one and two of this subsection.
  (B)  For  such taxpayers with adjusted gross income over [five hundred
thousand] ONE MILLION dollars, the fraction is [one. Provided,  however,
that the total tax prior to the application of any tax credits shall not
exceed  the highest rate of tax set forth in the tax table in subsection
(a) of  this  section  multiplied  by  the  taxpayer's  taxable  income]
COMPUTED  AS  FOLLOWS:  THE  NUMERATOR  IS  THE LESSER OF FIFTY THOUSAND
DOLLARS OR THE EXCESS OF NEW YORK ADJUSTED GROSS INCOME FOR THE  TAXABLE
YEAR  OVER  ONE  MILLION  DOLLARS  AND THE DENOMINATOR IS FIFTY THOUSAND
DOLLARS.
  (C) This paragraph shall [only] apply to taxable years beginning after
two thousand [two and before two thousand six] EIGHT.
  S 9. This act shall take effect immediately.

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Senate Bill S2021

Sponsored By

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

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co-Sponsors

2009-S2021 (ACTIVE) - Details

2009-S2021 (ACTIVE) - Summary

2009-S2021 (ACTIVE) - Sponsor Memo

2009-S2021 (ACTIVE) - Bill Text download pdf

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Sponsored By

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Actions

co-Sponsors

2009-S2021 (ACTIVE) - Details

2009-S2021 (ACTIVE) - Summary

2009-S2021 (ACTIVE) - Sponsor Memo

2009-S2021 (ACTIVE) - Bill Text download pdf

Comments