senate Bill S1008

2011-2012 Legislative Session

Relates to increasing income tax rates

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 04, 2012 referred to investigations and government operations
Jan 05, 2011 referred to investigations and government operations

S1008 - Bill Details

Current Committee:
Senate Investigations And Government Operations
Law Section:
Tax Law
Laws Affected:
Amd ยง601, Tax L
Versions Introduced in 2009-2010 Legislative Session:
S1593, S7791

S1008 - Bill Texts

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Relates to increasing income tax rates on incomes over one million dollars and five million dollars.

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BILL NUMBER:S1008

TITLE OF BILL:
An act
to amend the tax law, in relation to increases in income tax rates on
incomes over one million dollars and incomes over five million dollars

PURPOSE OR GENERAL IDEA OF BILL:
To provide for a temporary increase of personal income taxes upon New
Yorkers earning more than one million dollars annually, and five
million dollars annually. Such increase will be a temporary 9.97%
bracket for annual incomes over $1,000,000 and a 10.97% bracket for
annual incomes over $5,000,000.

SUMMARY OF SPECIFIC PROVISIONS:
Section 2 of the bill amends paragraph 1 of subsection (a) of section
601 of the tax law, as added by chapter 57 of the laws of 2009, to
provide for two new tax brackets, a bracket for New York taxable
incomes over $1,000,000 but less than $5,000,000, and a bracket for
incomes over $5,000,000.

Section 3 of the bill renumbers paragraphs 2,3,4,5,6,7,8 and 9 of
subsection (b) of section of the tax law.

Section 4 of the bill amends paragraph 1 of subsection (b) of section
601 of the tax law, as added by chapter 57 of the laws of 2009, to
provide for two new tax brackets, a bracket for New York taxable
incomes over $1,000,000 but less than $5,000,000, and a bracket for
incomes over $5,000,000.

Section 5 of the bill renumbers paragraphs 2,3,4,5,6,7,8 and 9 of
subsection (c) of section of the tax law.

Section 6 of the bill amends paragraph 1 of subsection (c) of section
601 of the tax law, as added by chapter 57 of the laws of 2009, to
provide for two new tax brackets, a bracket for New York taxable
incomes over $1,000,000 but less than $5,000,000, and a bracket for
incomes over $5,000,000.

Section 7 of the bill sets forth the effective date.

JUSTIFICATION:
In 2007, the world economy collapsed, due in part to a collapse of the
sub-prime mortgage market.
Since then, New York State has had to close record budget deficits in
every Executive Budget. Despite significant attempts over the past
three years to shrink government, and the extraction of hundreds of
millions of dollars in savings from the state agencies, the state
university system and community colleges, New York is still facing a
significant budget hole in the 2010-2011 Executive Budget.

A new, temporary tax bracket for New York taxable incomes over
$1,000,000, and over $5,000,000, will garner up to $1 billion in new
revenue annually, absent which, New York have to make further cuts to
health care, education, and human services. There are more than
850,000 New Yorkers out of work, and more than 100,000 have lost


their homes.
Adding significant cuts to health care and education on top of the
more than $1 billion already cut out of the budgets of the state
agencies and particularly the human services agencies - would have
the practical effect of balancing the budget upon the backs of New
York's most vulnerable populations.

PRIOR LEGISLATIVE HISTORY:
2010: S.7791 Referred to Investigations and Government Operations

FISCAL IMPLICATIONS:
No cost to the State.

EFFECTIVE DATE:
This act will take effect immediately and shall apply to taxable years
beginning on or after January 1, 2011.

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

                                  1008

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 5, 2011
                               ___________

Introduced  by  Sen.  PARKER -- 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  increases  in  income  tax
  rates  on  incomes  over  one  million  dollars  and incomes over five
  million dollars

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

  Section  1.  Paragraphs 2, 3, 4, 5, 6, 7, 8 and 9 of subsection (a) of
section 601 of the tax law are renumbered paragraphs 3, 4, 5, 6, 7, 8, 9
and 10.
  S 2. Paragraph 1 of subsection (a) of section 601 of the tax  law,  as
added  by  section  1  of part Z-1 of chapter 57 of the laws of 2009, is
amended to read as follows:
  (1) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND TEN AND BEFORE  TWO
THOUSAND THIRTEEN:

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 $300,000    $1,946 PLUS 6.85% OF EXCESS OVER
                                      $40,000
OVER $300,000 BUT NOT OVER $500,000   $19,756 PLUS 7.85% OF EXCESS OVER

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02153-02-1

S. 1008                             2

                                      $300,000
OVER $500,000 BUT NOT OVER $1,000,000 $35,456 PLUS 8.97% OF EXCESS OVER
                                      $500,000
OVER $1,000,000 BUT NOT OVER          $80,306 PLUS 9.97% OF EXCESS OVER
$5,000,000                            $1,000,000
OVER $5,000,000                       $479,106 PLUS 10.97% OF EXCESS OVER
                                      $5,000,000

  (2)  For  taxable  years beginning after two thousand eight and before
two thousand [twelve] ELEVEN AND FOR TAXABLE YEARS BEGINNING  AFTER  TWO
THOUSAND TWELVE:

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 $300,000    $1,946 plus 6.85% of excess over
                                      $40,000
Over $300,000 but not over $500,000   $19,756 plus 7.85% of excess over
                                      $300,000
Over $500,000                         $35,456 plus 8.97% of excess over
                                      $500,000

  S 3. Paragraphs 2, 3, 4, 5, 6, 7, 8 and 9 of subsection (b) of section
601 of the tax law are renumbered paragraphs 3, 4, 5, 6, 7, 8, 9 and 10.
  S  4.  Paragraph 1 of subsection (b) of section 601 of the tax law, as
added by section 1 of part Z-1 of chapter 57 of the  laws  of  2009,  is
amended to read as follows:
  (1)  FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND TEN AND BEFORE TWO
THOUSAND THIRTEEN:

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 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 7.85% OF EXCESS OVER
                                      $250,000
OVER $500,000 BUT NOT OVER            $36,187 PLUS 8.97% OF EXCESS OVER
$1,000,000                            $500,000
OVER $1,000,000 BUT NOT OVER          $81,037 PLUS 9.97% OF EXCESS OVER
$5,000,000                            $1,000,000
OVER $5,000,000                       $479,837 PLUS 10.97% OF EXCESS
                                      OVER $5,000,000

S. 1008                             3

  (2) For taxable years beginning after two thousand  eight  and  before
two  thousand  [twelve] ELEVEN AND FOR TAXABLE YEARS BEGINNING AFTER TWO
THOUSAND TWELVE:

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 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 7.85% of excess over
                                      $250,000
Over $500,000                         $36,187 plus 8.97% of excess over
                                      $500,000

  S 5. Paragraphs 2, 3, 4, 5, 6, 7, 8 and 9 of subsection (c) of section
601 of the tax law are renumbered paragraphs 3, 4, 5, 6, 7, 8, 9 and 10.
  S  6.  Paragraph 1 of subsection (c) of section 601 of the tax law, as
added by section 1 of part Z-1 of chapter 57 of the  laws  of  2009,  is
amended to read as follows:
  (1)  FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND TEN AND BEFORE TWO
THOUSAND THIRTEEN:

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 $200,000    $973 plus 6.85% of excess over
                                      $20,000
Over $200,000 but not over $500,000   $13,303 plus 7.85% of excess over
                                      $200,000
OVER $500,000 BUT NOT OVER            $36,853 PLUS 8.97% OF EXCESS
$1,000,000                            OVER $500,000
OVER $1,000,000 BUT NOT OVER          $81,703 PLUS 9.99% OF EXCESS OVER
$5,000,000                            $1,000,000
OVER $5,000,000                       $480,503 PLUS 10.97% OF EXCESS
                                      OVER $5,000,000

  (2) For taxable years beginning after two thousand  eight  and  before
two  thousand  [twelve] ELEVEN AND FOR TAXABLE YEARS BEGINNING AFTER TWO
THOUSAND TWELVE:

If the New York taxable income is:    The tax is:
Not over $8,000                       4% of the New York taxable

S. 1008                             4

                                      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 $200,000    $973 plus 6.85% of excess over
                                      $20,000
Over $200,000 but not over $500,000   $13,303 plus 7.85% of excess over
                                      $200,000
Over $500,000                         $36,853 plus 8.97% of excess over
                                      $500,000

  S 7. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2011.

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