senate Bill S152A

2013-2014 Legislative Session

Places a limit on the personal income tax levy by New York state

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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 152a
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)

S152 - Bill Details

Current Committee:
Law Section:
Tax Law
Laws Affected:
Add §608, Tax L
Versions Introduced in 2011-2012 Legislative Session:
S6122

S152 - Bill Texts

view summary

Places a limit on the personal income tax levy by New York state.

view sponsor memo
BILL NUMBER:S152

TITLE OF BILL:
An act
to amend
the tax law, in relation to placing a limit upon the personal income tax
by the state of New York

PURPOSE:
This bill imposes a cap on the levy collected by the personal income
tax by New York State. In the event the cap is exceeded, rebate
checks will be mailed to all New York taxpayers. This bill seeks to
prevents any future tax levy increases over a certain allowable
growth factor while making New York's income tax system more
progressive over time.

SUMMARY OF PROVISIONS:
Section 1 establishes a cap on the levy of the personal income tax and
establishes a rebate check program if receipts exceed this levy cap.

JUSTIFICATION:
In New York income taxes account for more revenue than any other type
of tax. At the same time, the income tax is one of the most
burdensome taxes. It takes money directly out of consumers paychecks,
disincentivizing work and reducing consumption.

The average New Yorker pays far too much in income taxes. It is no
accident that New York State has lagged in job creation and been a
leader in out of state migration, while zero income tax states like
Texas and Florida have seen an influx of both businesses and
individuals. This bill seeks to prevent further increases to New York
State's income taxes by capping the total income tax levy at the
2012-13 fiscal year amount plus a growth factor.

Importantly, this growth factor is a value that is historically
smaller than the increase in total income from state taxpayers. This
will result in income taxes consuming less and less as a percentage
of the New York economy every year. With incomes rising faster than
the rate of
inflation, this bill will provide the impetus for government to reduce
tax rates every year in order to stay under the cap.

If, however, no agreement to reduce tax rates are made during a given
year, this bill automatically makes the income tax code more
progressive by providing a rebate to each taxpayer of an equal
amount, up to the amount they paid in taxes, for the total amount of
income tax revenue in excess of the cap. If a taxpayer making $40,000
receives a $500 tax rebate, a taxpayer making $40,000,000 would
receive the same $500 tax rebate. In the absence of other reform,
this bill does not create a tax cut for just the wealthy or just the
middle class, but instead an equal tax rebate for all taxpayers.

This bill will send the signal that New York is committed to
controlling the growth of its income tax and will not use reform of
the tax code to disguise a net tax increase. Small businesses, many
of which are subject to the income tax, need certainty to make


intelligent investments in personnel and equipment. This bill will
give them confidence that New York will not change the economic rules
on small businesses year to year.

This bill will also ensure that all New Yorkers will share in the
prosperity as incomes grow. As the number of individuals making high
incomes increases, all taxpayers will see their yearly rebate checks
grow.

LEGISLATIVE HISTORY:
2011-12: S.6122 Referred to Investigations & Government Operations

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
________________________________________________________________________

                                   152

                       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 placing  a  limit  upon  the
  personal income tax by the state of New York

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

  Section 1.  The tax law is amended by adding a new section 608 to read
as follows:
  S 608. LIMIT UPON THE PERSONAL INCOME TAX LEVY BY  THE  STATE  OF  NEW
YORK.
  1.  UNLESS  OTHERWISE  PROVIDED  BY LAW, THE AMOUNT OF PERSONAL INCOME
TAXES THAT MAY BE LEVIED BY OR ON BEHALF OF THE STATE OF NEW YORK  SHALL
NOT EXCEED THE TAX LEVY LIMIT ESTABLISHED PURSUANT TO THIS SECTION.
  2. WHEN USED IN THIS SECTION:
  (A)  "ALLOWABLE  LEVY  GROWTH  FACTOR" FOR ALL FISCAL YEARS THAT BEGIN
AFTER TWO THOUSAND THIRTEEN SHALL BE THE HIGHER  OF:  (I)  ONE  AND  TWO
ONE-HUNDREDTHS;  OR  (II) THE SUM OF NINETY-NINE ONE-HUNDREDTHS PLUS THE
INFLATION FACTOR.
  (B) "AVAILABLE CARRYOVER" MEANS THE AMOUNT BY WHICH THE TAX  LEVY  FOR
THE PRIOR FISCAL YEAR WAS BELOW THE TAX LEVY LIMIT FOR SUCH FISCAL YEAR,
IF  ANY, BUT NO MORE THAN AN AMOUNT THAT EQUALS ONE AND ONE-HALF PERCENT
OF THE TAX LEVY LIMIT FOR SUCH FISCAL YEAR.
  (C) "COMING FISCAL YEAR" MEANS THE FISCAL YEAR OF THE STATE GOVERNMENT
FOR WHICH A TAX LEVY LIMIT SHALL BE DETERMINED PURSUANT TO THIS SECTION.
  (D) "INFLATION FACTOR" MEANS THE QUOTIENT OF: (I) THE AVERAGE  OF  THE
NATIONAL  CONSUMER PRICE INDEXES DETERMINED BY THE UNITED STATES DEPART-
MENT OF LABOR FOR THE TWELVE-MONTH PERIOD ENDING SIX MONTHS PRIOR TO THE
START OF THE COMING FISCAL  YEAR  MINUS  THE  AVERAGE  OF  THE  NATIONAL
CONSUMER  PRICE  INDEXES  DETERMINED  BY THE UNITED STATES DEPARTMENT OF

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01978-01-3

S. 152                              2

LABOR FOR THE TWELVE-MONTH PERIOD ENDING SIX MONTHS PRIOR TO  THE  START
OF  THE  PRIOR FISCAL YEAR, DIVIDED BY: (II) THE AVERAGE OF THE NATIONAL
CONSUMER PRICE INDEXES DETERMINED BY THE  UNITED  STATES  DEPARTMENT  OF
LABOR  FOR  THE TWELVE-MONTH PERIOD ENDING SIX MONTHS PRIOR TO THE START
OF THE PRIOR FISCAL YEAR, WITH THE RESULT EXPRESSED AS A DECIMAL TO FOUR
PLACES.
  (E) "PRIOR FISCAL YEAR" MEANS THE FISCAL YEAR OF THE STATE IMMEDIATELY
PRECEDING THE COMING FISCAL YEAR.
  (F) "TAX LEVY LIMIT" MEANS THE AMOUNT OF TAXES AUTHORIZED TO BE LEVIED
BY OR ON BEHALF OF THE STATE PURSUANT TO THIS SECTION FOR  FISCAL  YEARS
BEGINNING AFTER TWO THOUSAND THIRTEEN.
  (G)  "TAX"  OR  "TAXES"  MEANS  PERSONAL  INCOME TAXES LEVIED BY OR ON
BEHALF OF THE STATE.
  3. (A) SUBJECT TO THE PROVISIONS OF SUBDIVISION FIVE OF THIS  SECTION,
BEGINNING  WITH THE FISCAL YEAR THAT BEGINS AFTER TWO THOUSAND THIRTEEN,
THE STATE SHALL NOT ADOPT A BUDGET THAT REQUIRES  A  TAX  LEVY  THAT  IS
GREATER THAN THE TAX LEVY LIMIT FOR THE COMING FISCAL YEAR.
  (B)  THE  STATE  SHALL  CALCULATE THE TAX LEVY LIMIT APPLICABLE TO THE
COMING FISCAL YEAR WHICH SHALL BE DETERMINED AS FOLLOWS:
  (I) ASCERTAIN THE TOTAL AMOUNT OF TAXES LEVIED FOR  THE  PRIOR  FISCAL
YEAR.
  (II) MULTIPLY THE RESULT BY THE ALLOWABLE LEVY GROWTH FACTOR.
  (III) ADD THE AVAILABLE CARRYOVER, IF ANY.
  4.  IN  THE  EVENT THE STATE'S ACTUAL TAX LEVY FOR A GIVEN FISCAL YEAR
EXCEEDS THE TAX LEVY LIMIT BY MORE THAN ONE  PERCENT  OF  THE  TAX  LEVY
LIMIT,  THE STATE SHALL REBATE THE TOTAL AMOUNT THAT THE ACTUAL TAX LEVY
EXCEEDS THE TAX LEVY LIMIT SO THAT  EACH  INDIVIDUAL  FILER  RECEIVES  A
REBATE  OF  EQUAL AMOUNT ROUNDED DOWN TO THE NEAREST CENT, PROVIDED THAT
NO INDIVIDUAL SHALL RECEIVE A REBATE OF A GREATER AMOUNT THAN THE INCOME
TAXES PAID DURING THE SAME FISCAL YEAR.  THESE REBATES SHALL  BE  MAILED
IN THE FORM OF CHECKS PAYABLE TO THE FILING INDIVIDUAL NO LATER THAN THE
FIRST OF SEPTEMBER FOLLOWING THE END OF EACH FISCAL YEAR.
  5.  IN  THE  EVENT THE STATE'S ACTUAL TAX LEVY FOR A GIVEN FISCAL YEAR
EXCEEDS THE TAX LEVY LIMIT AS ESTABLISHED PURSUANT TO  THIS  SECTION  BY
LESS  THAN  ONE PERCENT OF THE TAX LEVY LIMIT, THE STATE SHALL PLACE THE
EXCESS AMOUNT OF THE LEVY IN RESERVE IN ACCORDANCE  WITH  SUCH  REQUIRE-
MENTS  AS  THE STATE COMPTROLLER MAY PRESCRIBE, AND SHALL USE SUCH FUNDS
AND ANY INTEREST EARNED THEREON TO OFFSET THE TAX LEVY FOR  THE  ENSUING
FISCAL YEAR.
  S 2. This act shall take effect immediately.

S152A (ACTIVE) - Bill Details

Current Committee:
Law Section:
Tax Law
Laws Affected:
Add §608, Tax L
Versions Introduced in 2011-2012 Legislative Session:
S6122

S152A (ACTIVE) - Bill Texts

view summary

Places a limit on the personal income tax levy by New York state.

view sponsor memo
BILL NUMBER:S152A

TITLE OF BILL: An act to amend the tax law, in relation to placing a
limit upon the personal income tax by the state of New York

PURPOSE: This bill imposes a cap on the levy collected by the personal
income tax by New York State. In the event the cap is exceeded, rebate
checks will be mailed to all New York taxpayers. This bill seeks to
prevent any future tax levy increases over a certain allowable growth
factor while making New York's income tax system more progressive over
time.

SUMMARY OF PROVISIONS:

Section 1 establishes a cap on the levy of the personal income tax and
establishes a rebate check program if receipts exceed this levy cap.

Section 2 states that this act shall take effect immediately.

JUSTIFICATION: In New York, income taxes account for more revenue than
any other type of tax At the same time, the income tax is one of the
most burdensome taxes. It takes money directly out of consumers'
paychecks, disincentivizing work and reducing consumption.

The average New Yorker pays far too much in income taxes. It is no acci-
dent that New York State has lagged in job creation and been a leader in
out-of-state migration while zero income tax states like Texas and
Florida have seen an influx of both businesses and individuals. This
bill seeks to prevent further increases to New York State's income taxes
by capping the total income tax levy at the 2013-14 fiscal year amount
plus a growth factor.

Importantly, this growth factor is a value that is historically smaller
than the increase in total income from state taxpayers. This will result
in income taxes consuming less and less as a percentage of the New York
economy every year. With incomes rising faster than the rate of
inflation, this bill will provide the impetus for government to reduce
tax rates every year in order to stay under the cap.

If, however, no agreement to reduce tax rates are made during a given
year, this bill automatically makes the income tax code more progressive
by providing a rebate to each taxpayer of an equal amount, up to the
amount they paid in taxes, for the total amount of income tax revenue in
excess of the cap If a taxpayer making $40,000 receives a $500 tax
rebate, a taxpayer making $40,000,000 would receive the same $500 tax
rebate In the absence of other reform, this bill does not create a tax
cut for just the wealthy or just the middle class, but instead an equal
tax rebate for all taxpayers.

This bill will send the signal that New York is committed to controlling
the growth of its income tax and will not use reform of the tax code to
disguise a net tax increase. Small businesses, many of which are subject

to the income tax, need certainty to make intelligent investments in
personnel and equipment. This bill will give them confidence that New
York will not change the economic rules on small businesses year to
year.

This bill will also ensure that all New Yorkers will share in the pros-
perity as incomes grow. As the number of individuals making high incomes
increases, all taxpayers will see their yearly rebate checks grow.

LEGISLATIVE HISTORY: 2011-12: S.6122 Referred to Investigations &
Government Operations

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
________________________________________________________________________

                                 152--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 placing a limit upon the
  personal income tax by the state of New York

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

  Section 1.  The tax law is amended by adding a new section 608 to read
as follows:
  S  608.  LIMIT  UPON  THE PERSONAL INCOME TAX LEVY BY THE STATE OF NEW
YORK.
  1. UNLESS OTHERWISE PROVIDED BY LAW, THE  AMOUNT  OF  PERSONAL  INCOME
TAXES  THAT MAY BE LEVIED BY OR ON BEHALF OF THE STATE OF NEW YORK SHALL
NOT EXCEED THE TAX LEVY LIMIT ESTABLISHED PURSUANT TO THIS SECTION.
  2. WHEN USED IN THIS SECTION:
  (A) "ALLOWABLE LEVY GROWTH FACTOR" FOR ALL  FISCAL  YEARS  THAT  BEGIN
AFTER  TWO  THOUSAND  FOURTEEN  SHALL  BE THE HIGHER OF: (I) ONE AND TWO
ONE-HUNDREDTHS; OR (II) THE SUM OF NINETY-NINE ONE-HUNDREDTHS  PLUS  THE
INFLATION FACTOR.
  (B)  "AVAILABLE  CARRYOVER" MEANS THE AMOUNT BY WHICH THE TAX LEVY FOR
THE PRIOR FISCAL YEAR WAS BELOW THE TAX LEVY LIMIT FOR SUCH FISCAL YEAR,
IF ANY, BUT NO MORE THAN AN AMOUNT THAT EQUALS ONE AND ONE-HALF  PERCENT
OF THE TAX LEVY LIMIT FOR SUCH FISCAL YEAR.
  (C) "COMING FISCAL YEAR" MEANS THE FISCAL YEAR OF THE STATE GOVERNMENT
FOR WHICH A TAX LEVY LIMIT SHALL BE DETERMINED PURSUANT TO THIS SECTION.
  (D)  "INFLATION  FACTOR" MEANS THE QUOTIENT OF: (I) THE AVERAGE OF THE
NATIONAL CONSUMER PRICE INDEXES DETERMINED BY THE UNITED STATES  DEPART-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01978-02-4

S. 152--A                           2

MENT OF LABOR FOR THE TWELVE-MONTH PERIOD ENDING SIX MONTHS PRIOR TO THE
START  OF  THE  COMING  FISCAL  YEAR  MINUS  THE AVERAGE OF THE NATIONAL
CONSUMER PRICE INDEXES DETERMINED BY THE  UNITED  STATES  DEPARTMENT  OF
LABOR  FOR  THE TWELVE-MONTH PERIOD ENDING SIX MONTHS PRIOR TO THE START
OF THE PRIOR FISCAL YEAR, DIVIDED BY: (II) THE AVERAGE OF  THE  NATIONAL
CONSUMER  PRICE  INDEXES  DETERMINED  BY THE UNITED STATES DEPARTMENT OF
LABOR FOR THE TWELVE-MONTH PERIOD ENDING SIX MONTHS PRIOR TO  THE  START
OF THE PRIOR FISCAL YEAR, WITH THE RESULT EXPRESSED AS A DECIMAL TO FOUR
PLACES.
  (E) "PRIOR FISCAL YEAR" MEANS THE FISCAL YEAR OF THE STATE IMMEDIATELY
PRECEDING THE COMING FISCAL YEAR.
  (F) "TAX LEVY LIMIT" MEANS THE AMOUNT OF TAXES AUTHORIZED TO BE LEVIED
BY  OR  ON BEHALF OF THE STATE PURSUANT TO THIS SECTION FOR FISCAL YEARS
BEGINNING AFTER TWO THOUSAND THIRTEEN.
  (G) "TAX" OR "TAXES" MEANS PERSONAL  INCOME  TAXES  LEVIED  BY  OR  ON
BEHALF OF THE STATE.
  3.  (A) SUBJECT TO THE PROVISIONS OF SUBDIVISION FIVE OF THIS SECTION,
BEGINNING WITH THE FISCAL YEAR THAT BEGINS AFTER TWO THOUSAND  FOURTEEN,
THE  STATE  SHALL  NOT  ADOPT  A BUDGET THAT REQUIRES A TAX LEVY THAT IS
GREATER THAN THE TAX LEVY LIMIT FOR THE COMING FISCAL YEAR.
  (B) THE STATE SHALL CALCULATE THE TAX LEVY  LIMIT  APPLICABLE  TO  THE
COMING FISCAL YEAR WHICH SHALL BE DETERMINED AS FOLLOWS:
  (I)  ASCERTAIN  THE  TOTAL AMOUNT OF TAXES LEVIED FOR THE PRIOR FISCAL
YEAR.
  (II) MULTIPLY THE RESULT BY THE ALLOWABLE LEVY GROWTH FACTOR.
  (III) ADD THE AVAILABLE CARRYOVER, IF ANY.
  4. IN THE EVENT THE STATE'S ACTUAL TAX LEVY FOR A  GIVEN  FISCAL  YEAR
EXCEEDS  THE  TAX  LEVY  LIMIT  BY MORE THAN ONE PERCENT OF THE TAX LEVY
LIMIT, THE STATE SHALL REBATE THE TOTAL AMOUNT THAT THE ACTUAL TAX  LEVY
EXCEEDS  THE  TAX  LEVY  LIMIT  SO THAT EACH INDIVIDUAL FILER RECEIVES A
REBATE OF EQUAL AMOUNT ROUNDED DOWN TO THE NEAREST CENT,  PROVIDED  THAT
NO INDIVIDUAL SHALL RECEIVE A REBATE OF A GREATER AMOUNT THAN THE INCOME
TAXES  PAID  DURING THE SAME FISCAL YEAR.  THESE REBATES SHALL BE MAILED
IN THE FORM OF CHECKS PAYABLE TO THE FILING INDIVIDUAL NO LATER THAN THE
FIRST OF SEPTEMBER FOLLOWING THE END OF EACH FISCAL YEAR.
  5. IN THE EVENT THE STATE'S ACTUAL TAX LEVY FOR A  GIVEN  FISCAL  YEAR
EXCEEDS  THE  TAX  LEVY LIMIT AS ESTABLISHED PURSUANT TO THIS SECTION BY
LESS THAN ONE PERCENT OF THE TAX LEVY LIMIT, THE STATE SHALL  PLACE  THE
EXCESS  AMOUNT  OF  THE LEVY IN RESERVE IN ACCORDANCE WITH SUCH REQUIRE-
MENTS AS THE STATE COMPTROLLER MAY PRESCRIBE, AND SHALL USE  SUCH  FUNDS
AND  ANY  INTEREST EARNED THEREON TO OFFSET THE TAX LEVY FOR THE ENSUING
FISCAL YEAR.
  S 2. This act shall take effect immediately.

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