S T A T E O F N E W Y O R K
________________________________________________________________________
8149--A
2011-2012 Regular Sessions
I N A S S E M B L Y
June 2, 2011
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Introduced by M. of A. MORELLE -- read once and referred to the Commit-
tee on Ways and Means -- 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
gross income for the taxable year over one hundred thousand dollars and
the denominator is fifty thousand dollars.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10973-05-1
A. 8149--A 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
(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.