senate Bill S103A

2013-2014 Legislative Session

Reduces personal income tax rates for the middle class

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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 28, 2014 print number 103a
amend and recommit to investigations and government operations
Jan 08, 2014 referred to investigations and government operations
Jan 09, 2013 referred to investigations and government operations

Bill Amendments

Original
A (Active)
Original
A (Active)

S103 - Bill Details

Current Committee:
Law Section:
Tax Law
Laws Affected:
Amd §601, Tax L
Versions Introduced in 2011-2012 Legislative Session:
S7845

S103 - Bill Texts

view summary

Reduces personal income tax rates for the middle class.

view sponsor memo
BILL NUMBER:S103

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

PURPOSE:
This bill would make the lower tax rates put into effect in 2011
permanent.

SUMMARY OF PROVISIONS:
Section one makes the lower tax rates put into effect in 2011 for
joint filers making less than $300,000 permanent. Section two makes
the lower tax rates put into effect in 2011 for heads of household
filers making less than $250,000 permanent. Section three makes the
lower tax rates put into effect in 2011 for single filers making less
than $200,000 permanent. Section four states that is act shall take
effect immediately.

EXISTING LAW:
The lower tax rates on middle class families put into effect in 2011
are scheduled to expire in 2015.

JUSTIFICATION:
With the tax reforms of 2011, middle class families in New York now
pay the lowest tax rates they have in nearly 60 years. Thanks to
these reforms, over four million New Yorkers saw their tax rates go
down and the typical middle class New York family will save between
$300 and $400 per year.

Unfortunately, these tax reforms are set to expire in 2015. For many
middle class families, this will result in a four to five percent tax
increase. Wealthier families will see larger cuts in dollar amounts,
but as a percentage of their income these cuts will be significantly
less A family making one million dollars pays more than eleven times
as much in personal income taxes as a family making one hundred
thousand dollars, but will get less than four times the reduction in
tax liability from this legislation. Making the middle class tax cuts
permanent is essential to preserving New York's consumer base, as
middle class families tend to spend a high percentage
of their income within the State. At the same time it is necessary
that the higher tax rates on small businesses and job creators expire
as scheduled in 2015.

Preserving the middle class tax cuts while allowing the temporary
higher tax rates to expire will be a powerful one-two punch
combination for the New York economy. Middle class families will
continue to see reduced rates, allowing for increased consumption. At
the same time, small businesses will see their tax rates return to
previous levels, allowing for increased investment and expansion.

LEGISLATIVE HISTORY:
2011-12: S.7845 Referred to Rules

FISCAL IMPLICATIONS:
To be determined.


EFFECTIVE DATE:
This act shall take effect immediately.

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

                                   103

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by Sen. GALLIVAN -- 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 reducing personal income tax
  rates

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

  Section  1.  Subparagraph  (B)  of  paragraph  1  of subsection (a) of
section 601 of the tax law, as added by section 1 of part A  of  chapter
56 of the laws of 2011, is amended to read as follows:
  (B)  For  taxable  years  beginning  after  two thousand fourteen, the
following brackets and dollar amounts shall apply, as  adjusted  by  the
cost  of  living  adjustment  prescribed in section six hundred one-a of
this part for tax years two thousand thirteen and two thousand fourteen:

If the New York taxable income is:    The tax is:
Not over $16,000                      4% of 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 5.90% of excess over
                                      $26,000
Over $40,000 BUT NOT OVER             $1,946 plus [6.85%]
$150,000                              6.45% of excess over
                                      $40,000
OVER $150,000 BUT NOT OVER            $9,041 PLUS 6.65% OF
$300,000                              EXCESS OVER $150,000
OVER $300,000                         $19,016 PLUS 6.85% OF
                                      EXCESS OVER $300,000

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01970-01-3

S. 103                              2

  S 2. Subparagraph (B) of paragraph 1 of subsection (b) of section  601
of  the  tax  law,  as added by section 3 of part A of chapter 56 of the
laws of 2011, is amended to read as follows:
  (B)  For  taxable  years  beginning  after  two thousand fourteen, the
following brackets and dollars amounts shall apply, as adjusted  by  the
cost  of  living  adjustment  prescribed in section six hundred one-a of
this part for tax years two thousand thirteen and two thousand fourteen:

If the New York taxable income is:    The tax is:
Not over $12,000                      4% of taxable income
Over $12,000 but not over $16,500     $480 plus 4.5% of excess over
                                      $12,000
Over $16,500 but not over $19,500     $683 plus 5.25% of excess over
                                      $16,500
Over $19,500 but not over $30,000     $840 plus 5.90% of excess over
                                      $19,500
Over $30,000 BUT NOT OVER             $1,460 plus [6.85%]
$100,000                              6.45% of excess over
                                      $30,000
OVER $100,000 BUT NOT OVER            $5,975 PLUS 6.65% OF
$250,000                              EXCESS OVER $100,000
OVER $250,000                         $15,950 PLUS 6.85% OF
                                      EXCESS OVER $250,000

  S 3. Subparagraph (B) of paragraph 1 of subsection (c) of section  601
of  the  tax  law,  as added by section 5 of part A of chapter 56 of the
laws of 2011, is amended to read as follows:
  (B) For taxable years beginning after two thousand fourteen,
the following brackets and dollars amounts shall apply, as adjusted by
the cost of living adjustment prescribed in section six hundred one-a of
this part for tax years two thousand thirteen and two thousand fourteen:

If the New York taxable income is:    The tax is:
Not over $8,000                       4% of 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 5.90% of excess over
                                      $13,000
Over $20,000 BUT NOT OVER $75,000     $973 plus [6.85%]
                                      6.45% of excess over $20,000
OVER $75,000 BUT NOT OVER $200,000    $4,521 PLUS 6.65% OF EXCESS
                                      OVER $75,000
OVER $200,000                         $12,833 PLUS 6.85% OF EXCESS
                                      OVER $200,000

  S 4. This act shall take effect immediately.

S103A (ACTIVE) - Bill Details

Current Committee:
Law Section:
Tax Law
Laws Affected:
Amd §601, Tax L
Versions Introduced in 2011-2012 Legislative Session:
S7845

S103A (ACTIVE) - Bill Texts

view summary

Reduces personal income tax rates for the middle class.

view sponsor memo
BILL NUMBER:S103A

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

PURPOSE: This bill would make the lower tax rates put into effect in
2011 permanent.

SUMMARY OF PROVISIONS:

Section one makes the lower tax rates put into effect in 2011 for, joint
filers making less than $300,000 permanent. Section two makes the lower
tax rates put into effect in 2011 for heads of household filers making
less than $250,000 permanent. Section three makes the lower tax rates
put into effect in 2011 for single filers making less than $200,000
permanent. Section four states that this act shall take effect imme-
diately.

EXISTING LAW: The lower tax rates on middle class families put into
effect in 2011 are scheduled to expire in 2018.

JUSTIFICATION: With the tax reforms of 2011, middle class families in
New York now pay the lowest tax rates they have in nearly 60 years.
Thanks to these reforms, over four million New Yorkers saw their tax
rates go down and the typical middle class New York family will save
between $300 and $400 per year.

Unfortunately, these tax reforms are set to expire in 2018. For many
middle class families, this will result in a four to five percent tax
increase. Wealthier families will see larger cuts in dollar amounts, but
as a percentage of their income these cuts will be significantly less. A
family making one million dollars pays more than eleven times as much in
personal income taxes as a family making one hundred thousand dollars,
but will get less than four times the reduction in tax liability from
this legislation. Making the middle class tax cuts permanent is essen-
tial to preserving New York's consumer base, as middle class families
tend to spend a high percentage of their income within the State. At the
same time, it is necessary that the higher tax rates on small businesses
and job creators expire as scheduled.

Preserving the middle class tax cuts while allowing the temporary higher
tax rates to expire will be a powerful one-two punch combination for the
New York economy. Middle class families will continue to see reduced
rates, allowing for increased consumption. At the same time, small busi-
nesses will see their tax rates return to previous levels, allowing for
increased investment and expansion.

LEGISLATIVE HISTORY: 2011-12: S.7845 Referred to Rules

FISCAL IMPLICATIONS: To be determined.

EFFECTIVE DATE: This act shall take effect immediately.

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

                                 103--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by Sen. GALLIVAN -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations -- 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 reducing personal income tax
  rates

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

  Section 1. Subparagraph (B)  of  paragraph  1  of  subsection  (a)  of
section  601 of the tax law, as amended by section 1 of part FF of chap-
ter 59 of the laws of 2013, is amended to read as follows:
  (B) For taxable years beginning  after  two  thousand  seventeen,  the
following  brackets  and  dollar amounts shall apply, as adjusted by the
cost of living adjustment prescribed in section  six  hundred  one-a  of
this  part  for  tax  years  two  thousand thirteen through two thousand
seventeen:

If the New York taxable income is:    The tax is:
Not over $16,000                      4% of 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 5.90% of excess over
                                      $26,000
Over $40,000 BUT NOT OVER $150,000    $1,946 plus [6.85%]
                                      6.45% of excess over $40,000

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01970-02-4

S. 103--A                           2

OVER $150,000 BUT NOT OVER            $9,041 PLUS 6.65% OF
$300,000                              EXCESS OVER $150,000
OVER $300,000                         $19,016 PLUS 6.85% OF
                                      EXCESS OVER $300,000

  S  2. Subparagraph (B) of paragraph 1 of subsection (b) of section 601
of the tax law, as amended by section 2 of part FF of chapter 59 of  the
laws of 2013, is amended to read as follows:
  (B)  For  taxable  years  beginning  after two thousand seventeen, the
following brackets and dollars amounts shall apply, as adjusted  by  the
cost  of  living  adjustment  prescribed in section six hundred one-a of
this part for tax years  two  thousand  thirteen  through  two  thousand
seventeen:

If the New York taxable income is:    The tax is:
Not over $12,000                      4% of taxable income
Over $12,000 but not over $16,500     $480 plus 4.5% of excess over
                                      $12,000
Over $16,500 but not over $19,500     $683 plus 5.25% of excess over
                                      $16,500
Over $19,500 but not over $30,000     $840 plus 5.90% of excess over
                                      $19,500
Over $30,000 BUT NOT OVER $100,000    $1,460 plus [6.85%]
                                      6.45% of excess over $30,000
OVER $100,000 BUT NOT OVER            $5,975 PLUS 6.65% OF
$250,000                              EXCESS OVER $100,000
OVER $250,000                         $15,950 PLUS 6.85% OF
                                      EXCESS OVER $250,000

  S  3. Subparagraph (B) of paragraph 1 of subsection (c) of section 601
of the tax law, as amended by section 3 of part FF of chapter 59 of  the
laws of 2013, is amended to read as follows:
  (B)  For  taxable  years  beginning  after two thousand seventeen, the
following brackets and dollars amounts shall apply, as adjusted  by  the
cost  of  living  adjustment  prescribed in section six hundred one-a of
this part for tax years  two  thousand  thirteen  through  two  thousand
seventeen:

If the New York taxable income is:    The tax is:
Not over $8,000                       4% of 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 5.90% of excess over
                                      $13,000
Over $20,000 BUT NOT OVER $75,000     $973 plus [6.85%]
                                      6.45% of excess over $20,000
OVER $75,000 BUT NOT OVER $200,000    $4,521 PLUS 6.65% OF EXCESS
                                      OVER $75,000
OVER $200,000                         $12,833 PLUS 6.85% OF EXCESS
                                      OVER $200,000

  S 4. This act shall take effect immediately.

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