senate Bill S5016C

2011-2012 Legislative Session

Includes New York exemptions of a resident individual within the cost of living adjustment and makes adjustment applicable to tax years beginning on or after 1/1/13

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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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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
May 31, 2012 reported and committed to finance
May 04, 2012 print number 5016c
amend (t) and recommit to investigations and government operations
Jan 05, 2012 print number 5016b
amend and recommit to investigations and government operations
Jan 04, 2012 referred to investigations and government operations
Jun 07, 2011 reported and committed to finance
May 20, 2011 print number 5016a
amend and recommit to investigations and government operations
May 02, 2011 referred to investigations and government operations

Votes

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May 31, 2012 - Investigations and Government Operations committee Vote

S5016C
5
0
committee
5
Aye
0
Nay
2
Aye with Reservations
0
Absent
1
Excused
0
Abstained
show Investigations and Government Operations committee vote details

Investigations and Government Operations Committee Vote: May 31, 2012

aye wr (2)
excused (1)

Jun 7, 2011 - Investigations and Government Operations committee Vote

S5016A
7
0
committee
7
Aye
0
Nay
1
Aye with Reservations
0
Absent
0
Excused
0
Abstained
show committee vote details

Committee Vote: Jun 7, 2011

aye wr (1)

Bill Amendments

Original
A
B
C (Active)
Original
A
B
C (Active)

Co-Sponsors

view additional co-sponsors

S5016 - Bill Details

See Assembly Version of this Bill:
A8149B
Current Committee:
Law Section:
Tax Law
Laws Affected:
Amd §601-a, Tax L

S5016 - Bill Texts

view summary

Includes New York exemptions of a resident individual within the cost of living adjustment; makes such adjustment applicable to tax years beginning on or after January 1, 2013.

view sponsor memo
BILL NUMBER:S5016

TITLE OF BILL:
An act
to amend the tax law, in relation to the imposition of personal income
tax

PURPOSE:
To adjust the taxable income brackets, the standard deduction and the
dependent exemption under the personal income tax to the rate of
inflation.

SUMMARY OF PROVISIONS:
Section 1 amends section 601 of the Tax Law to adjust the rate
brackets for each personal income tax filing type for the rate of
inflation.

Section 2 amends section 601 of the Tax Law to change the calculation
of the tax benefit recapture to adjust the applicable income levels
by the rate of inflation.

Section 3 amends section 614 of the Tax Law to provide for a cost of
living adjustment equal to the rate of inflation for the standard
deduction.

Section 4 amends section 616 of the Tax Law to provide a cost of
living adjustment equal to the rate of inflation for the dependent
exemption.

JUSTIFICATION:
The Federal Government provides for a cost of living adjustment in
relation to the imposition of the personal income tax at the federal
level. This cost of living adjustment applies to the taxable income
levels to which the tax rates apply, the standard deduction and the
personal exemption.
By utilizing this cost of living adjustment, the "bracket creep" is
eliminated which forces a taxpayer into a higher income tax bracket
as a result of his income increasing due to inflation.

The personal income tax in New York does not currently include a cost
of living adjustment for the rate brackets, standard deduction or the
dependent deduction. The last time the rate brackets were adjusted
was in 1996. The standard deduction was adjusted in 2006 only for
married taxpayers to eliminate the marriage penalty. Other than that
adjustment, the standard deduction has not been changed since 1996.
The dependent exemption, which is set at $1,000 per dependent, has
not been changed since 1987. In comparison, the Federal government
exemption is equal to $3,650 per dependent.

LEGISLATIVE HISTORY:
New bill.

FISCAL IMPLICATIONS:
$230M in fiscal year 2011-12; $265M when fully effective.

EFFECTIVE DATE:


Applies to tax years beginning on or after January 1, 2011.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  5016

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                               May 2, 2011
                               ___________

Introduced by Sens. DeFRANCISCO, SKELOS -- read twice and ordered print-
  ed,  and  when  printed  to  be committed to the Committee on Investi-
  gations and Government Operations

AN ACT to amend the tax law, in relation to the imposition  of  personal
  income tax

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

  Section 1. Section 601 of the tax law  is  amended  by  adding  a  new
subsection (c-1) to read as follows:
  (C-1)  COST  OF LIVING ADJUSTMENT.  FOR TAXABLE YEARS BEGINNING ON AND
AFTER JANUARY FIRST, TWO THOUSAND TWELVE, THE MINIMUM AND MAXIMUM DOLLAR
AMOUNT  FOR  EACH  RATE  BRACKET  FOR  WHICH  A  TAX  IS  IMPOSED  UNDER
SUBSECTIONS  (A), (B) AND (C) OF THIS SECTION SHALL BE INCREASED FOR THE
COST OF LIVING ADJUSTMENT. FOR THE PURPOSES OF  THIS  SUBPARAGRAPH,  THE
COST  OF  LIVING ADJUSTMENT FOR ANY TAXABLE YEAR SHALL BE THE PERCENTAGE
(IF ANY) BY WHICH THE CPI FOR THE PRECEDING CALENDAR  YEAR  EXCEEDS  THE
CPI FOR CALENDAR YEAR TWO THOUSAND TEN.  THE CPI IS DEFINED AS THE AVER-
AGE OF THE CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS PUBLISHED BY THE
UNITED  STATES  DEPARTMENT  OF LABOR AS OF THE CLOSE OF THE TWELVE MONTH
PERIOD ENDING AUGUST THIRTY-FIRST OF SUCH CALENDAR YEAR. IF ANY INCREASE
DETERMINED UNDER THIS SUBPARAGRAPH IS NOT  A  MULTIPLE  OF  ONE  HUNDRED
DOLLARS,  SUCH INCREASE SHALL BE ROUNDED TO THE NEXT HIGHEST MULTIPLE OF
ONE HUNDRED DOLLARS.
  S 2. Subparagraph (B) of paragraph 1 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, is amended to read as follows:
  (B) The fraction is computed as follows: (I) FOR TAXABLE YEARS  BEGIN-
NING  ON  OR  BEFORE TWO THOUSAND ELEVEN, 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 thousand dollars and the denomina-
tor is fifty thousand dollars.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10973-01-1

S. 5016                             2

  (II)  IN  THE  CASE  OF  ANY TAXABLE YEAR BEGINNING AFTER TWO THOUSAND
ELEVEN, THE NUMERATOR IS THE LESSER OF THE DIFFERENCE BETWEEN THE  UPPER
INCOME  THRESHOLD  AND  THE  LOWER INCOME THRESHOLD OR THE EXCESS OF NEW
YORK ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR OVER  THE  LOWER  INCOME
THRESHOLD.  THE  DENOMINATOR  SHALL  BE THE DIFFERENCE BETWEEN THE UPPER
INCOME THRESHOLD AND THE LOWER INCOME THRESHOLD.
  (III) FOR THE PURPOSES OF THIS SUBPARAGRAPH, THE LOWER INCOME  THRESH-
OLD SHALL BE THE PRODUCT OF ONE HUNDRED THOUSAND DOLLARS AND THE COST OF
LIVING ADJUSTMENT AND THE UPPER INCOME THRESHOLD SHALL BE THE PRODUCT OF
ONE HUNDRED FIFTY THOUSAND DOLLARS AND THE COST OF LIVING ADJUSTMENT.
  (IV) FOR THE PURPOSES OF THIS SUBPARAGRAPH, THE COST OF LIVING ADJUST-
MENT  FOR ANY TAXABLE YEAR SHALL BE THE PERCENTAGE (IF ANY) BY WHICH THE
CPI FOR THE PRECEDING CALENDAR YEAR EXCEEDS THE CPI  FOR  CALENDAR  YEAR
TWO  THOUSAND  TEN.  THE  CPI  IS DEFINED AS THE AVERAGE OF THE CONSUMER
PRICE INDEX FOR ALL URBAN  CONSUMERS  PUBLISHED  BY  THE  UNITED  STATES
DEPARTMENT  OF  LABOR  AS OF THE CLOSE OF THE TWELVE MONTH PERIOD ENDING
AUGUST THIRTY-FIRST OF SUCH CALENDAR YEAR.
  (V) IF ANY INCREASE DETERMINED UNDER THIS SUBPARAGRAPH IS NOT A MULTI-
PLE OF ONE HUNDRED DOLLARS, SUCH INCREASE SHALL BE ROUNDED TO  THE  NEXT
HIGHEST MULTIPLE OF ONE HUNDRED DOLLARS.
  S  3. Section 614 of the tax law is amended by adding a new subsection
(f) to read as follows:
  (F) COST OF LIVING ADJUSTMENT.   FOR TAXABLE YEARS  BEGINNING  ON  AND
AFTER  JANUARY  FIRST, TWO THOUSAND TWELVE, EACH DOLLAR AMOUNT CONTAINED
IN SUBSECTIONS (A), (B), (C), (D) AND  (E)  OF  THIS  SECTION  SHALL  BE
INCREASED  FOR  THE COST OF LIVING ADJUSTMENT.  FOR THE PURPOSES OF THIS
SUBSECTION, THE COST OF LIVING ADJUSTMENT FOR ANY TAXABLE YEAR SHALL  BE
THE PERCENTAGE (IF ANY) BY WHICH THE CPI FOR THE PRECEDING CALENDAR YEAR
EXCEEDS  THE  CPI FOR CALENDAR YEAR TWO THOUSAND TEN. THE CPI IS DEFINED
AS THE AVERAGE OF THE CONSUMER  PRICE  INDEX  FOR  ALL  URBAN  CONSUMERS
PUBLISHED  BY  THE  UNITED STATES DEPARTMENT OF LABOR AS OF THE CLOSE OF
THE TWELVE MONTH PERIOD ENDING  AUGUST  THIRTY-FIRST  OF  SUCH  CALENDAR
YEAR. IF ANY INCREASE DETERMINED UNDER THIS SUBPARAGRAPH IS NOT A MULTI-
PLE  OF  ONE HUNDRED DOLLARS, SUCH INCREASE SHALL BE ROUNDED TO THE NEXT
HIGHEST MULTIPLE OF ONE HUNDRED DOLLARS.
  S 4. Section 616 of the tax law is amended by adding a new  subsection
(c) to read as follows:
  (C)  COST  OF  LIVING ADJUSTMENT.   FOR TAXABLE YEARS BEGINNING ON AND
AFTER JANUARY FIRST, TWO THOUSAND TWELVE, EACH DOLLAR  AMOUNT  CONTAINED
IN  SUBSECTION  (A)  OF  THIS SECTION SHALL BE INCREASED FOR THE COST OF
LIVING ADJUSTMENT. FOR THE PURPOSES OF  THIS  SUBSECTION,  THE  COST  OF
LIVING  ADJUSTMENT FOR ANY TAXABLE YEAR SHALL BE THE PERCENTAGE (IF ANY)
BY WHICH THE CPI FOR THE PRECEDING CALENDAR YEAR  EXCEEDS  THE  CPI  FOR
CALENDAR YEAR TWO THOUSAND TEN. THE CPI IS DEFINED AS THE AVERAGE OF THE
CONSUMER  PRICE  INDEX  FOR  ALL URBAN CONSUMERS PUBLISHED BY THE UNITED
STATES DEPARTMENT OF LABOR AS OF THE CLOSE OF THE  TWELVE  MONTH  PERIOD
ENDING AUGUST THIRTY-FIRST OF SUCH CALENDAR YEAR. IF ANY INCREASE DETER-
MINED  UNDER THIS SUBPARAGRAPH IS NOT A MULTIPLE OF ONE HUNDRED DOLLARS,
SUCH INCREASE SHALL BE ROUNDED TO  THE  NEXT  HIGHEST  MULTIPLE  OF  ONE
HUNDRED DOLLARS.
  S 5. This act shall take effect immediately and shall apply to taxable
years  starting  on  or after January 1, 2012, provided, however, amend-
ments to the withholding tables associated with the changes in this  act
shall not take effect until April 1, 2012.

Co-Sponsors

view additional co-sponsors

S5016A - Bill Details

See Assembly Version of this Bill:
A8149B
Current Committee:
Law Section:
Tax Law
Laws Affected:
Amd §601-a, Tax L

S5016A - Bill Texts

view summary

Includes New York exemptions of a resident individual within the cost of living adjustment; makes such adjustment applicable to tax years beginning on or after January 1, 2013.

view sponsor memo
BILL NUMBER:S5016A

TITLE OF BILL:
An act
to amend the tax law, in relation to the imposition of personal income
tax

PURPOSE:
To adjust the taxable income brackets, the standard deduction and the
dependent exemption under the personal income tax to the rate of
inflation.

SUMMARY OF PROVISIONS:
Section 1 amends section 601 of the Tax Law to adjust the rate
brackets for each personal income tax filing type for the rate of
inflation.

Section 2 amends section 601 of the Tax Law to change the calculation
of the tax benefit recapture to adjust the applicable income levels
by the rate of inflation.

Section 3 amends section 614 of the Tax Law to provide for a cost of
living adjustment equal to the rate of inflation for the standard
deduction.

Section 4 amends section 616 of the Tax Law to provide a cost of
living adjustment equal to the rate of inflation for the dependent
exemption.

JUSTIFICATION:
The Federal Government provides for a cost of living adjustment in
relation to the imposition of the personal income tax at the federal
level. This cost of living adjustment applies to the taxable income
levels to which the tax rates apply, the standard deduction and the
personal exemption.
By utilizing this cost of living adjustment, the "bracket creep" is
eliminated which forces a taxpayer into a higher income tax bracket
as a result of his income increasing due to inflation.

The personal income tax in New York does not currently include a cost
of living adjustment for the rate brackets, standard deduction or the
dependent deduction. The last time the rate brackets were adjusted
was in 1996. The standard deduction was adjusted in 2006 only for
married taxpayers to eliminate the marriage penalty. Other than that
adjustment, the standard deduction has not been changed since 1996.
The dependent exemption, which is set at $1,000 per dependent, has
not been changed since 1987. In comparison, the Federal government
exemption is equal to $3,650 per dependent.

LEGISLATIVE HISTORY:
New bill.

FISCAL IMPLICATIONS:
$230M in fiscal year 2011-12; $265M when fully effective.

EFFECTIVE DATE:


Applies to tax years beginning on or after January 1, 2011.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 5016--A

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                               May 2, 2011
                               ___________

Introduced  by  Sens. DeFRANCISCO, SKELOS, LARKIN, MAZIARZ, RANZENHOFER,
  SEWARD, ZELDIN -- read twice and ordered printed, and when printed  to
  be  committed  to the Committee on Investigations and Government Oper-
  ations -- committee discharged, bill  amended,  ordered  reprinted  as
  amended and recommitted to said committee

AN  ACT  to amend the tax law, in relation to the imposition of personal
  income tax

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

  Section  1.  Section  601  of  the  tax law is amended by adding a new
subsection (c-1) to read as follows:
  (C-1) COST OF LIVING ADJUSTMENT.  FOR TAXABLE YEARS BEGINNING  ON  AND
AFTER JANUARY FIRST, TWO THOUSAND ELEVEN, THE MINIMUM AND MAXIMUM DOLLAR
AMOUNT  FOR  EACH  RATE  BRACKET  FOR  WHICH  A  TAX  IS  IMPOSED  UNDER
SUBSECTIONS (A), (B) AND (C) OF THIS SECTION SHALL BE INCREASED FOR  THE
COST  OF  LIVING  ADJUSTMENT. FOR THE PURPOSES OF THIS SUBPARAGRAPH, THE
COST OF LIVING ADJUSTMENT FOR ANY TAXABLE YEAR SHALL BE  THE  PERCENTAGE
(IF  ANY)  BY  WHICH THE CPI FOR THE PRECEDING CALENDAR YEAR EXCEEDS THE
CPI FOR CALENDAR YEAR TWO THOUSAND NINE.   THE CPI  IS  DEFINED  AS  THE
AVERAGE OF THE CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS PUBLISHED BY
THE  UNITED  STATES  DEPARTMENT  OF  LABOR AS OF THE CLOSE OF THE TWELVE
MONTH PERIOD ENDING AUGUST THIRTY-FIRST OF SUCH CALENDAR  YEAR.  IF  ANY
INCREASE  DETERMINED  UNDER  THIS  SUBPARAGRAPH IS NOT A MULTIPLE OF ONE
HUNDRED DOLLARS, SUCH INCREASE SHALL BE  ROUNDED  TO  THE  NEXT  HIGHEST
MULTIPLE OF ONE HUNDRED DOLLARS.
  S  2. Subparagraph (B) of paragraph 1 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, is amended to read as follows:
  (B)  The fraction is computed as follows: (I) FOR TAXABLE YEARS BEGIN-
NING ON OR BEFORE JANUARY FIRST, TWO THOUSAND TEN, the numerator is  the
lesser  of  fifty  thousand  dollars  or the excess of New York adjusted

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10973-03-1

S. 5016--A                          2

gross income for the taxable year over one hundred thousand dollars  and
the denominator is fifty thousand dollars.
  (II) IN THE CASE OF ANY TAXABLE YEAR BEGINNING AFTER TWO THOUSAND TEN,
THE  NUMERATOR  IS THE LESSER OF THE DIFFERENCE BETWEEN THE UPPER INCOME
THRESHOLD AND THE LOWER INCOME THRESHOLD  OR  THE  EXCESS  OF  NEW  YORK
ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR OVER THE LOWER INCOME THRESH-
OLD.  THE  DENOMINATOR  SHALL BE THE DIFFERENCE BETWEEN THE UPPER INCOME
THRESHOLD AND THE LOWER INCOME THRESHOLD.
  (III) FOR THE PURPOSES OF THIS SUBPARAGRAPH, THE LOWER INCOME  THRESH-
OLD SHALL BE THE PRODUCT OF ONE HUNDRED THOUSAND DOLLARS AND THE COST OF
LIVING ADJUSTMENT AND THE UPPER INCOME THRESHOLD SHALL BE THE PRODUCT OF
ONE HUNDRED FIFTY THOUSAND DOLLARS AND THE COST OF LIVING ADJUSTMENT.
  (IV) FOR THE PURPOSES OF THIS SUBPARAGRAPH, THE COST OF LIVING ADJUST-
MENT  FOR ANY TAXABLE YEAR SHALL BE THE PERCENTAGE (IF ANY) BY WHICH THE
CPI FOR THE PRECEDING CALENDAR YEAR EXCEEDS THE CPI  FOR  CALENDAR  YEAR
TWO  THOUSAND  NINE.  THE  CPI IS DEFINED AS THE AVERAGE OF THE CONSUMER
PRICE INDEX FOR ALL URBAN  CONSUMERS  PUBLISHED  BY  THE  UNITED  STATES
DEPARTMENT  OF  LABOR  AS OF THE CLOSE OF THE TWELVE MONTH PERIOD ENDING
AUGUST THIRTY-FIRST OF SUCH CALENDAR YEAR.
  (V) IF ANY INCREASE DETERMINED UNDER THIS SUBPARAGRAPH IS NOT A MULTI-
PLE OF ONE HUNDRED DOLLARS, SUCH INCREASE SHALL BE ROUNDED TO  THE  NEXT
HIGHEST MULTIPLE OF ONE HUNDRED DOLLARS.
  S  3. Section 614 of the tax law is amended by adding a new subsection
(f) to read as follows:
  (F) COST OF LIVING ADJUSTMENT.   FOR TAXABLE YEARS  BEGINNING  ON  AND
AFTER  JANUARY  FIRST, TWO THOUSAND ELEVEN, EACH DOLLAR AMOUNT CONTAINED
IN SUBSECTIONS (A), (B), (C), (D) AND  (E)  OF  THIS  SECTION  SHALL  BE
INCREASED  FOR  THE COST OF LIVING ADJUSTMENT.  FOR THE PURPOSES OF THIS
SUBSECTION, THE COST OF LIVING ADJUSTMENT FOR ANY TAXABLE YEAR SHALL  BE
THE PERCENTAGE (IF ANY) BY WHICH THE CPI FOR THE PRECEDING CALENDAR YEAR
EXCEEDS  THE CPI FOR CALENDAR YEAR TWO THOUSAND NINE. THE CPI IS DEFINED
AS THE AVERAGE OF THE CONSUMER  PRICE  INDEX  FOR  ALL  URBAN  CONSUMERS
PUBLISHED  BY  THE  UNITED STATES DEPARTMENT OF LABOR AS OF THE CLOSE OF
THE TWELVE MONTH PERIOD ENDING  AUGUST  THIRTY-FIRST  OF  SUCH  CALENDAR
YEAR. IF ANY INCREASE DETERMINED UNDER THIS SUBPARAGRAPH IS NOT A MULTI-
PLE  OF  ONE HUNDRED DOLLARS, SUCH INCREASE SHALL BE ROUNDED TO THE NEXT
HIGHEST MULTIPLE OF ONE HUNDRED DOLLARS.
  S 4. Section 616 of the tax law is amended by adding a new  subsection
(c) to read as follows:
  (C)  COST  OF  LIVING ADJUSTMENT.   FOR TAXABLE YEARS BEGINNING ON AND
AFTER JANUARY FIRST, TWO THOUSAND ELEVEN, EACH DOLLAR  AMOUNT  CONTAINED
IN  SUBSECTION  (A)  OF  THIS SECTION SHALL BE INCREASED FOR THE COST OF
LIVING ADJUSTMENT. FOR THE PURPOSES OF  THIS  SUBSECTION,  THE  COST  OF
LIVING  ADJUSTMENT FOR ANY TAXABLE YEAR SHALL BE THE PERCENTAGE (IF ANY)
BY WHICH THE CPI FOR THE PRECEDING CALENDAR YEAR  EXCEEDS  THE  CPI  FOR
CALENDAR  YEAR  TWO  THOUSAND NINE. THE CPI IS DEFINED AS THE AVERAGE OF
THE CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS PUBLISHED BY THE UNITED
STATES DEPARTMENT OF LABOR AS OF THE CLOSE OF THE  TWELVE  MONTH  PERIOD
ENDING AUGUST THIRTY-FIRST OF SUCH CALENDAR YEAR. IF ANY INCREASE DETER-
MINED  UNDER THIS SUBPARAGRAPH IS NOT A MULTIPLE OF ONE HUNDRED DOLLARS,
SUCH INCREASE SHALL BE ROUNDED TO  THE  NEXT  HIGHEST  MULTIPLE  OF  ONE
HUNDRED DOLLARS.
  S 5. This act shall take effect immediately and shall apply to taxable
years starting on or after January 1, 2011.

Co-Sponsors

view additional co-sponsors

S5016B - Bill Details

See Assembly Version of this Bill:
A8149B
Current Committee:
Law Section:
Tax Law
Laws Affected:
Amd §601-a, Tax L

S5016B - Bill Texts

view summary

Includes New York exemptions of a resident individual within the cost of living adjustment; makes such adjustment applicable to tax years beginning on or after January 1, 2013.

view sponsor memo
BILL NUMBER:S5016B REVISED 01/13/12

TITLE OF BILL:
An act
to amend the tax law, in relation to the imposition of personal income
tax

PURPOSE:
To adjust the taxable income brackets, the standard deduction and the
dependent exemption under the personal income tax to the rate of
inflation.

SUMMARY OF PROVISIONS:
Section 1 amends section 601 of the Tax Law to adjust the rate
brackets for each personal income tax filing type for the rate of
inflation.

Section 2 amends section 601 of the Tax Law to change the calculation
of the tax benefit recapture to adjust the applicable income levels
by the rate of inflation.

Section 3 amends section 614 of the Tax Law to provide for a cost of
living adjustment equal to the rate of inflation for the standard
deduction.

Section 4 amends section 616 of the Tax Law to provide a cost of
living adjustment equal to the rate of inflation for the dependent
exemption.

JUSTIFICATION:
The Federal Government provides for a cost of living adjustment in
relation to the imposition of the personal income tax at the federal
level. This cost of living adjustment applies to the taxable income
levels to which the tax rates apply, the standard deduction and the
personal exemption. By utilizing this cost of living adjustment, the
"bracket creep" is eliminated which forces a taxpayer into a higher
income tax bracket as a result of his income increasing due to
inflation.

The personal income tax in New York does not currently include a cost
of living adjustment for the rate brackets, standard deduction or the
dependent deduction. The last time the rate brackets were adjusted
was in 1996. The standard deduction was adjusted in 2006 only for
married taxpayers to eliminate the marriage penalty. Other
than that adjustment, the standard deduction has not been changed
since 1996. The dependent exemption, which is set at $1,000 per
dependent, has not been changed since 1987. In Comparison, the
Federal Government exemption is equal to $3,650 per dependent.

LEGISLATIVE HISTORY:
New bill.

FISCAL IMPLICATIONS:
$230M in fiscal year 2012-13; $265M when fully effective.

EFFECTIVE DATE:
Applies to tax years beginning on or after January 1, 2012.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 5016--B

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                               May 2, 2011
                               ___________

Introduced  by  Sens. DeFRANCISCO, SKELOS, LARKIN, MAZIARZ, RANZENHOFER,
  SEWARD, ZELDIN -- read twice and ordered printed, and when printed  to
  be  committed  to the Committee on Investigations and Government Oper-
  ations -- committee discharged, bill  amended,  ordered  reprinted  as
  amended  and  recommitted  to  said  committee  --  recommitted to the
  Committee on Investigations and Government  Operations  in  accordance
  with  Senate  Rule  6,  sec.  8 -- committee discharged, bill amended,
  ordered reprinted as amended and recommitted to said committee

AN ACT to amend the tax law, in relation to the imposition  of  personal
  income tax

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

  Section 1. Section 601 of the tax law  is  amended  by  adding  a  new
subsection (c-1) to read as follows:
  (C-1)  COST  OF LIVING ADJUSTMENT.  FOR TAXABLE YEARS BEGINNING ON AND
AFTER JANUARY FIRST, TWO THOUSAND TWELVE, THE MINIMUM AND MAXIMUM DOLLAR
AMOUNT  FOR  EACH  RATE  BRACKET  FOR  WHICH  A  TAX  IS  IMPOSED  UNDER
SUBSECTIONS  (A), (B) AND (C) OF THIS SECTION SHALL BE INCREASED FOR THE
COST OF LIVING ADJUSTMENT. FOR THE PURPOSES OF THIS SUBSECTION, THE COST
OF LIVING ADJUSTMENT FOR ANY TAXABLE YEAR SHALL BE  THE  PERCENTAGE  (IF
ANY)  BY  WHICH  THE CPI FOR THE PRECEDING CALENDAR YEAR EXCEEDS THE CPI
FOR CALENDAR YEAR TWO THOUSAND TEN.  THE CPI IS DEFINED AS  THE  AVERAGE
OF  THE  CONSUMER  PRICE  INDEX FOR ALL URBAN CONSUMERS PUBLISHED BY THE
UNITED STATES DEPARTMENT OF LABOR AS OF THE CLOSE OF  THE  TWELVE  MONTH
PERIOD ENDING AUGUST THIRTY-FIRST OF SUCH CALENDAR YEAR. IF ANY INCREASE
DETERMINED  UNDER  THIS  SUBPARAGRAPH  IS  NOT A MULTIPLE OF ONE HUNDRED
DOLLARS, SUCH INCREASE SHALL BE ROUNDED TO THE NEXT HIGHEST MULTIPLE  OF
ONE HUNDRED DOLLARS.
  S  2. Subparagraph (B) of paragraph 1 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, is amended to read as follows:
  (B)  The fraction is computed as follows: (I) FOR TAXABLE YEARS BEGIN-
NING ON OR BEFORE JANUARY FIRST, TWO THOUSAND ELEVEN, the  numerator  is
the  lesser of fifty thousand dollars or the excess of New York adjusted

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10973-04-1

S. 5016--B                          2

gross income for the taxable year over one hundred thousand dollars  and
the denominator is fifty thousand dollars.
  (II)  IN  THE  CASE  OF  ANY TAXABLE YEAR BEGINNING AFTER TWO THOUSAND
ELEVEN, THE NUMERATOR IS THE LESSER OF THE DIFFERENCE BETWEEN THE  UPPER
INCOME  THRESHOLD  AND  THE  LOWER INCOME THRESHOLD OR THE EXCESS OF NEW
YORK ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR OVER  THE  LOWER  INCOME
THRESHOLD.  THE  DENOMINATOR  SHALL  BE THE DIFFERENCE BETWEEN THE UPPER
INCOME THRESHOLD AND THE LOWER INCOME THRESHOLD.
  (III) FOR THE PURPOSES OF THIS SUBPARAGRAPH, THE LOWER INCOME  THRESH-
OLD SHALL BE THE PRODUCT OF ONE HUNDRED THOUSAND DOLLARS AND THE COST OF
LIVING ADJUSTMENT AND THE UPPER INCOME THRESHOLD SHALL BE THE PRODUCT OF
ONE HUNDRED FIFTY THOUSAND DOLLARS AND THE COST OF LIVING ADJUSTMENT.
  (IV) FOR THE PURPOSES OF THIS SUBPARAGRAPH, THE COST OF LIVING ADJUST-
MENT  FOR ANY TAXABLE YEAR SHALL BE THE PERCENTAGE (IF ANY) BY WHICH THE
CPI FOR THE PRECEDING CALENDAR YEAR EXCEEDS THE CPI  FOR  CALENDAR  YEAR
TWO  THOUSAND  TEN.  THE  CPI  IS DEFINED AS THE AVERAGE OF THE CONSUMER
PRICE INDEX FOR ALL URBAN  CONSUMERS  PUBLISHED  BY  THE  UNITED  STATES
DEPARTMENT  OF  LABOR  AS OF THE CLOSE OF THE TWELVE MONTH PERIOD ENDING
AUGUST THIRTY-FIRST OF SUCH CALENDAR YEAR.
  (V) IF ANY INCREASE DETERMINED UNDER THIS SUBPARAGRAPH IS NOT A MULTI-
PLE OF ONE HUNDRED DOLLARS, SUCH INCREASE SHALL BE ROUNDED TO  THE  NEXT
HIGHEST MULTIPLE OF ONE HUNDRED DOLLARS.
  S  3. Section 614 of the tax law is amended by adding a new subsection
(g) to read as follows:
  (G) COST OF LIVING ADJUSTMENT.   FOR TAXABLE YEARS  BEGINNING  ON  AND
AFTER  JANUARY  FIRST, TWO THOUSAND TWELVE, EACH DOLLAR AMOUNT CONTAINED
IN SUBSECTIONS (A), (B), (C), (D) AND  (E)  OF  THIS  SECTION  SHALL  BE
INCREASED  FOR  THE COST OF LIVING ADJUSTMENT.  FOR THE PURPOSES OF THIS
SUBSECTION, THE COST OF LIVING ADJUSTMENT FOR ANY TAXABLE YEAR SHALL  BE
THE PERCENTAGE (IF ANY) BY WHICH THE CPI FOR THE PRECEDING CALENDAR YEAR
EXCEEDS  THE  CPI FOR CALENDAR YEAR TWO THOUSAND TEN. THE CPI IS DEFINED
AS THE AVERAGE OF THE CONSUMER  PRICE  INDEX  FOR  ALL  URBAN  CONSUMERS
PUBLISHED  BY  THE  UNITED STATES DEPARTMENT OF LABOR AS OF THE CLOSE OF
THE TWELVE MONTH PERIOD ENDING  AUGUST  THIRTY-FIRST  OF  SUCH  CALENDAR
YEAR. IF ANY INCREASE DETERMINED UNDER THIS SUBSECTION IS NOT A MULTIPLE
OF ONE HUNDRED DOLLARS, SUCH INCREASE SHALL BE ROUNDED TO THE NEXT HIGH-
EST MULTIPLE OF ONE HUNDRED DOLLARS.
  S  4. Section 616 of the tax law is amended by adding a new subsection
(c) to read as follows:
  (C) COST OF LIVING ADJUSTMENT.   FOR TAXABLE YEARS  BEGINNING  ON  AND
AFTER  JANUARY  FIRST, TWO THOUSAND TWELVE, EACH DOLLAR AMOUNT CONTAINED
IN SUBSECTION (A) OF THIS SECTION SHALL BE INCREASED  FOR  THE  COST  OF
LIVING  ADJUSTMENT.  FOR  THE  PURPOSES  OF THIS SUBSECTION, THE COST OF
LIVING ADJUSTMENT FOR ANY TAXABLE YEAR SHALL BE THE PERCENTAGE (IF  ANY)
BY  WHICH  THE  CPI  FOR THE PRECEDING CALENDAR YEAR EXCEEDS THE CPI FOR
CALENDAR YEAR TWO THOUSAND TEN. THE CPI IS DEFINED AS THE AVERAGE OF THE
CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS  PUBLISHED  BY  THE  UNITED
STATES  DEPARTMENT  OF  LABOR AS OF THE CLOSE OF THE TWELVE MONTH PERIOD
ENDING AUGUST THIRTY-FIRST OF SUCH CALENDAR YEAR. IF ANY INCREASE DETER-
MINED UNDER THIS SUBSECTION IS NOT A MULTIPLE OF  ONE  HUNDRED  DOLLARS,
SUCH  INCREASE  SHALL  BE  ROUNDED  TO  THE NEXT HIGHEST MULTIPLE OF ONE
HUNDRED DOLLARS.
  S 5. This act shall take effect immediately and shall apply to taxable
years starting on or after January 1, 2012.

Co-Sponsors

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S5016C (ACTIVE) - Bill Details

See Assembly Version of this Bill:
A8149B
Current Committee:
Law Section:
Tax Law
Laws Affected:
Amd §601-a, Tax L

S5016C (ACTIVE) - Bill Texts

view summary

Includes New York exemptions of a resident individual within the cost of living adjustment; makes such adjustment applicable to tax years beginning on or after January 1, 2013.

view sponsor memo
BILL NUMBER:S5016C

TITLE OF BILL:

An act
to amend the tax law, in relation to
including New York exemptions of a resident individual within the cost of
living adjustment and making such adjustment applicable to tax years
beginning on or after January 1, 2013

PURPOSE:

To adjust the taxable income brackets, the standard deduction and the
dependent exemption under the personal income tax to the rate of
inflation.

SUMMARY OF PROVISIONS:

Section 1 amends section 601 of the Tax Law to adjust the rate
brackets for each personal income tax filing type for the rate of
inflation.

Section 2 provides effective date.

JUSTIFICATION:

The Federal Government provides for a cost of living adjustment in
relation to the imposition of the personal income tax at the federal
level. This cost of living adjustment applies to the taxable income
levels to which the tax rates apply, the standard deduction and the
personal exemption. By utilizing this cost of living adjustment, the
"bracket creep" is eliminated which forces a taxpayer into a higher
income tax bracket as a result of his income increasing due to
inflation.

In December of 2011 the Tax Law was amended and indexed the income
brackets and the standard deduction to the rate of inflation.
However, this is only effective for 2 years. The dependent exemption,
which is set at $1,000 per dependent, has not been changed since
1987. In comparison, the Federal Government exemption is equal to
$3,650 per dependent.

LEGISLATIVE HISTORY:

New bill.

FISCAL IMPLICATIONS:

$100M in fiscal year 2013-14; $300M when fully effective.

EFFECTIVE DATE:

Applies to tax years beginning on or after January 1, 2013.


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

                                 5016--C

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                               May 2, 2011
                               ___________

Introduced  by  Sens. DeFRANCISCO, SKELOS, LARKIN, MAZIARZ, RANZENHOFER,
  SEWARD, ZELDIN -- read twice and ordered printed, and when printed  to
  be  committed  to the Committee on Investigations and Government Oper-
  ations -- committee discharged, bill  amended,  ordered  reprinted  as
  amended  and  recommitted  to  said  committee  --  recommitted to the
  Committee on Investigations and Government  Operations  in  accordance
  with  Senate  Rule  6,  sec.  8 -- committee discharged, bill amended,
  ordered reprinted as amended and  recommitted  to  said  committee  --
  committee  discharged,  bill amended, ordered reprinted as amended and
  recommitted to said committee

AN ACT to  amend  the  tax  law,  in  relation  to  including  New  York
  exemptions  of a resident individual within the cost of living adjust-
  ment and making such adjustment applicable to tax years  beginning  on
  or after January 1, 2013

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

  Section 1. Section 601-a of the tax law, as added by section 9 of part
A of chapter 56 of the laws of 2011, is amended to read as follows:
  S 601-a. Cost of living adjustment. (a) For tax [year] YEARS BEGINNING
ON OR AFTER JANUARY FIRST, two thousand thirteen, the commissioner,  not
later  than  September  first[,  two thousand twelve,] OF EACH PRECEDING
CALENDAR YEAR, shall multiply the amounts specified in subsection (b) of
this section for tax year two thousand twelve by one plus  the  cost  of
living  adjustment described in subsection (c) of this section. [For tax
year two thousand fourteen, the commissioner, not later  than  September
first,  two  thousand  thirteen, shall multiply the amounts specified in
subsection (b) of this section for tax year two thousand thirteen by one
plus the cost of living adjustment.]
  (b) The following amounts shall be  indexed  by  the  cost  of  living
adjustment.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10973-08-2

S. 5016--C                          2

  (1) The dollar amounts in the tax tables set forth in paragraph one of
subsection  (a),  paragraph  one  of subsection (b) and paragraph one of
subsection (c) of section six hundred one of this part.
  (2)  The dollar amount in the numerator of the fractions in subsection
(d) of section six hundred one of this part that is not  fifty  thousand
dollars.
  (3)  The  New  York  standard  deduction  of  a resident individual in
section six hundred fourteen of this article.
  (4) THE NEW YORK EXEMPTIONS OF A RESIDENT INDIVIDUAL  IN  SECTION  SIX
HUNDRED SIXTEEN OF THIS ARTICLE.
  (c)  The cost of living adjustment for a tax year is the percentage if
any, by which the average monthly value of the consumer price index  for
the twelve month period ending on June thirtieth of the year immediately
preceding  the tax year for which the adjustment is being made (referred
to as the adjustment year) exceeds the  average  monthly  value  of  the
consumer  price index for the twelve month period ending on June thirti-
eth [of the year immediately preceding the adjustment year] TWO THOUSAND
TWELVE. For purposes of this section, the consumer price index means the
consumer price index for all urban consumers  published  by  the  United
States department of labor.
  (d) If the product of the amounts in subsection (b) and subsection (c)
of  this  section is not a multiple of [fifty] ONE HUNDRED dollars, such
increase shall be rounded to  the  next  [lowest]  HIGHEST  multiple  of
[fifty] ONE HUNDRED dollars.
  S  2.  This  act  shall take effect immediately and shall apply to tax
years beginning on or after January 2013.

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