senate Bill S1799

2013-2014 Legislative Session

Establishes a tax table benefit recapture for joint returns over $250,000, individual returns over $150,000 and head of household over $180,000

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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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Senate Actions - UPPERCASE
Jan 08, 2014 referred to cities
Jan 09, 2013 referred to cities

S1799 - Bill Details

See Assembly Version of this Bill:
A1183
Current Committee:
Senate Cities
Law Section:
New York City Administrative Code
Laws Affected:
Amd §11-1701, NYC Ad Cd; amd §1304, Tax L
Versions Introduced in 2011-2012 Legislative Session:
S6804, A9951

S1799 - Bill Texts

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Establishes a tax table benefit recapture for joint returns over $250,000, individual returns over $150,000 and head of household returns over $180,000; makes changes to the New York city personal income tax rates.

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BILL NUMBER:S1799

TITLE OF BILL: An act to amend the administrative code of the city of
New York and the tax law, in relation to establishing a tax table
benefit recapture; and in relation to New York city personal income
tax rates

PURPOSE: To provide a tax benefit to lower income and middle class
residents of the city of New York.

SUMMARY OF PROVISIONS:

Section 1- Amends section 11-1701 of the Administrative Code of the
city of New York by adding a subdivision that implements a new
supplemental tax. The sum of the tax shall be calculated by the tax
table benefit multiplied by a fraction which is dependent upon income
and filing status. Only the following types of filers who make income
above the specified amounts below would be taxed.

-Families with a taxable income of 250,000 or more, would receive a
tax table benefit of $333 dollars. They would be taxed at rate
determined by their tax table benefit multiplied by a numerator of the
lesser of $50,000 dollars or the taxable income of the filer that
exceeds $250,000 dollars and a denominator of $50,000 dollars.

-Resident unmarried individuals and resident married individuals
filling separate returns with a taxable income of 150,000 or more
would receive a tax table benefit of $185 dollars. They would be taxed
at rate determined by their tax table benefit multiplied by a
numerator of the lesser of $50,000 dollars or the taxable income of
the filer that exceeds $150,000 dollars and a denominator of $50,000
dollars.

-Resident head of household with a taxable income of 180,000 or more
would receive a tax table benefit of $222 dollars. They would be taxed
at rate determined by their tax table benefit multiplied by a
numerator of the lesser of $50,000 dollars or the taxable income of
the filer that exceeds $180,000 dollars and a denominator of $50,000
dollars.

Section 2- Amends paragraph 1 of subdivision (a) of section 11-1701 of
the administrative code of the City of New York by adding subparagraph
(c) to set new tax brackets for New York City's Personal Income Tax.

Section 3- Amends paragraph 2 of subdivision (a) of section 11-1701 of
the administrative code of the City of New York by adding subparagraph
(c) to set new tax brackets for New York City's Personal Income Tax.

Section 4- Amends paragraph 3 of subdivision (a) of section 11-1701 of
the administrative code of the City of New York by adding subparagraph
(c) to set new tax brackets for New York City's Personal Income Tax.

Section 5- Amends Paragraph 1 of subsection (a) of section tax law by
adding subparagraph (c) to set new tax brackets City's Personal Income
Tax.


Section 6- Amends paragraph 2 of subsection (a) of section 1304 of the
tax law by adding subparagraph (c) to set new tax brackets for New
York City's Personal Income Tax.

Section 7- Amends paragraph 3 of subsection (a) of subsection (a) of
section 1304 of the tax law by adding subparagraph (c) to set new tax
brackets for New York City's Personal Income Tax.

JUSTIFICATION: Residents of New York City are contending with
skyrocketing prices of goods and services, pushing their cost of
living ever higher, while wages remain stagnant. Half of rental
households in New York City devoted more than 30% of their incomes
toward rent and utilities in 2010, with one in four households
spending more than 50% on these expenses. Over 1.8 million New York
City residents are recipients of food stamps-an increase of 50% over
the past three years alone.

While the working class struggles to make ends meet, a small number of
people are amassing more and more wealth. New York City is home to
some of the worst poverty and income inequality in the United States.
The top 20 percent of income earners in Manhattan make nearly 38 times
as much as the bottom 20 percent- the greatest differential in the
country. And the Bronx, with a child poverty rate of 50 percent, is
the poorest urban county in America. Reducing the tax burden on low
and middle class families will assist those most in need while
benefiting New York City's economy.

"The Middle Class Tax Cut Act" addresses the at risk middle class who
are finding it increasingly difficult to stay in the five boroughs.
Currently, New York City has only five tax brackets with individuals
earning $50,000 a year paying the same tax rate as individuals earning
$500,000. In line with Governor Cuomo's bipartisan reform of the
State's income tax system earlier this year, the Middle Class Tax Cut
Act will cut the tax rate for all families earning less than $300,000
and all individual filers earning less than $200,000. That means that
95% of New York City residents will receive a tax cut. This cut will
provide families with up to $333 in tax relief-a small, but meaningful
sum for people living paycheck to paycheck. At the same time, tax
increases are limited to people making more than $1 million per year.

New York City's economy is dependent on middle class New Yorkers who
are in turn dependent on the implementation of a fair tax structure.
"The Middle Class Tax-Cut Act" is a comprehensive progressive reform
to NYC's Personal Income Tax that will bring fairness to the system
and will put more money in the pockets of middle class New Yorkers who
live in one of the most expensive cities in the world.

LEGISLATIVE HISTORY: New bill.

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
________________________________________________________________________

                                  1799

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced by Sen. ESPAILLAT -- read twice and ordered printed, and when
  printed to be committed to the Committee on Cities

AN  ACT to amend the administrative code of the city of New York and the
  tax law, in relation to establishing a tax  table  benefit  recapture;
  and in relation to New York city personal income tax rates

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

  Section 1. Section 11-1701 of the administrative code of the  city  of
New York is amended by adding a new subdivision (i) to read as follows:
  (I)  TAX  TABLE  BENEFIT RECAPTURE. FOR TAXABLE YEARS BEGINNING IN TWO
THOUSAND FOURTEEN, THERE IS HEREBY IMPOSED A SUPPLEMENTAL TAX, IN  ADDI-
TION TO THE TAX IMPOSED UNDER THE OPENING PARAGRAPH OF THIS SECTION, FOR
THE  PURPOSE  OF  RECAPTURING THE BENEFIT OF THE TAX TABLES CONTAINED IN
SUBDIVISION (A) OF THIS SECTION. THE SUPPLEMENTAL TAX SHALL BE AN AMOUNT
EQUAL TO THE SUM OF THE TAX TABLE BENEFITS IN PARAGRAPHS  ONE,  TWO  AND
THREE  OF  THIS  SUBDIVISION MULTIPLIED BY THEIR RESPECTIVE FRACTIONS IN
SUCH PARAGRAPHS.
  (1) RESIDENT MARRIED INDIVIDUALS FILING JOINT  RETURNS  AND  SURVIVING
SPOUSES.  SUBPARAGRAPHS  (A)  AND  (B)  OF  THIS PARAGRAPH APPLY ONLY TO
FILERS WHOSE TAXABLE INCOME EXCEEDS $250,000.
  (A) THE TAX TABLE BENEFIT IS $333.
  (B) THE FRACTION IS COMPUTED AS FOLLOWS: THE NUMERATOR IS  THE  LESSER
OF  FIFTY  THOUSAND  DOLLARS  OR  THE  EXCESS OF NEW YORK ADJUSTED GROSS
INCOME FOR THE TAXABLE YEAR OVER TWO HUNDRED FIFTY THOUSAND DOLLARS  AND
THE DENOMINATOR IS FIFTY THOUSAND DOLLARS.
  (2)  RESIDENT  UNMARRIED  INDIVIDUALS AND RESIDENT MARRIED INDIVIDUALS
FILING SEPARATE RETURNS. SUBPARAGRAPHS (A) AND  (B)  OF  THIS  PARAGRAPH
APPLY ONLY TO FILERS WHOSE TAXABLE INCOME EXCEEDS $150,000.
  (A) THE TAX TABLE BENEFIT IS $185.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02970-01-3

S. 1799                             2

  (B)  THE  FRACTION IS COMPUTED AS FOLLOWS: 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 FIFTY THOUSAND DOLLARS AND
THE DENOMINATOR IS FIFTY THOUSAND DOLLARS.
  (3)  RESIDENT  HEAD  OF  HOUSEHOLD.  SUBPARAGRAPHS (A) AND (B) OF THIS
PARAGRAPH APPLY ONLY TO FILERS WHOSE TAXABLE INCOME EXCEEDS $180,000.
  (A) THE TAX TABLE BENEFIT IS $222.
  (B) THE FRACTION IS COMPUTED AS FOLLOWS: 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 EIGHTY THOUSAND DOLLARS AND
THE DENOMINATOR IS FIFTY THOUSAND DOLLARS.
  S 2.  Paragraph 1 of subdivision (a) of section 11-1701 of the  admin-
istrative  code  of  the  city  of  New  York is amended by adding a new
subparagraph (C) to read as follows:
  (C) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND FOURTEEN:

IF THE CITY TAXABLE INCOME IS:        THE TAX IS:
NOT OVER $21,600                      2.168% OF THE CITY TAXABLE INCOME
OVER $21,600 BUT NOT                  $468 PLUS 2.635% OF EXCESS
OVER $45,000                          OVER $21,600
OVER $45,000 BUT NOT                  $1,085 PLUS 2.993% OF EXCESS
OVER $90,000                          OVER $45,000
OVER $90,000 BUT NOT                  $2,432 PLUS 3.15% OF EXCESS
OVER $150,000                         OVER $90,000
OVER $150,000 BUT NOT                 $4,322 PLUS 3.2% OF EXCESS
OVER $500,000                         OVER $150,000
OVER $500,000 BUT NOT                 $15,522 PLUS 3.4% OF EXCESS
OVER $1,000,000                       OVER $500,000
OVER $1,000,000 BUT NOT               $32,522 PLUS 3.7% OF EXCESS
OVER $2,000,000                       OVER $1,000,000
OVER $2,000,000                       $69,522 PLUS 3.8% OF EXCESS
                                      OVER $2,000,000

  S 3. Paragraph 2 of subdivision (a) of section 11-1701 of the adminis-
trative code of the city of New York is amended by adding a new subpara-
graph (C) to read as follows:
  (C) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND FOURTEEN:

IF THE CITY TAXABLE INCOME IS:        THE TAX IS:
NOT OVER $14,400                      2.168% OF THE CITY TAXABLE INCOME
OVER $14,400 BUT NOT                  $312 PLUS 2.635% OF EXCESS
OVER $30,000                          OVER $14,400
OVER $30,000 BUT NOT                  $723 PLUS 2.993% OF EXCESS
OVER $60,000                          OVER $30,000
OVER $60,000 BUT NOT                  $1,621 PLUS 3.15% OF EXCESS
OVER $100,000                         OVER $60,000
OVER $100,000 BUT NOT                 $2,881 PLUS 3.2% OF EXCESS
OVER $500,000                         OVER $100,000
OVER $500,000 BUT NOT                 $15,681 PLUS 3.4% OF EXCESS
OVER $1,000,000                       OVER $500,000
OVER $1,000,000 BUT NOT               $32,681 PLUS 3.7% OF EXCESS
OVER $2,000,000                       OVER $1,000,000
OVER $2,000,000                       $69,681 PLUS 3.8% OF EXCESS
                                      OVER $2,000,000

S. 1799                             3

  S 4. Paragraph 3 of subdivision (a) of section 11-1701 of the adminis-
trative code of the city of New York is amended by adding a new subpara-
graph (C) to read as follows:
  (C) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND FOURTEEN:

IF THE CITY TAXABLE INCOME IS:        THE TAX IS:
NOT OVER $12,000                      2.168% OF THE CITY TAXABLE INCOME
OVER $12,000 BUT NOT                  $260 PLUS 2.635% OF EXCESS
OVER $25,000                          OVER $12,000
OVER $25,000 BUT NOT                  $603 PLUS 2.993% OF EXCESS
OVER $50,000                          OVER $25,000
OVER $50,000 BUT NOT                  $1,351 PLUS 3.15% OF EXCESS
OVER $83,000                          OVER $50,000
OVER $83,000 BUT NOT                  $2,400 PLUS 3.2% OF EXCESS
OVER $500,000                         OVER $83,000
OVER $500,000 BUT NOT                 $15,734 PLUS 3.4% OF EXCESS
OVER $1,000,000                       OVER $500,000
OVER $1,000,000 BUT NOT               $32,734 PLUS 3.7% OF EXCESS
OVER $2,000,000                       OVER $1,000,000
OVER $2,000,000                       $69,734 PLUS 3.8% OF EXCESS
                                      OVER $2,000,000

  S  5.  Paragraph 1 of subsection (a) of section 1304 of the tax law is
amended by adding a new subparagraph (C) to read as follows:
  (C) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND FOURTEEN:

IF THE CITY TAXABLE INCOME IS:        THE TAX IS:
NOT OVER $21,600                      2.168% OF THE CITY TAXABLE INCOME
OVER $21,600 BUT NOT                  $468 PLUS 2.635% OF EXCESS
OVER $45,000                          OVER $21,600
OVER $45,000 BUT NOT                  $1,085 PLUS 2.993% OF EXCESS
OVER $90,000                          OVER $45,000
OVER $90,000 BUT NOT                  $2,432 PLUS 3.15% OF EXCESS
OVER $150,000                         OVER $90,000
OVER $150,000 BUT NOT                 $4,322 PLUS 3.2% OF EXCESS
OVER $500,000                         OVER $150,000
OVER $500,000 BUT NOT                 $15,522 PLUS 3.4% OF EXCESS
OVER $1,000,000                       OVER $500,000
OVER $1,000,000 BUT NOT               $32,522 PLUS 3.7% OF EXCESS
OVER $2,000,000                       OVER $1,000,000
OVER $2,000,000                       $69,522 PLUS 3.8% OF EXCESS
                                      OVER $2,000,000

  S 6. Paragraph 2 of subsection (a) of section 1304 of the tax  law  is
amended by adding a new subparagraph (C) to read as follows:

  (C) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND FOURTEEN:
IF THE CITY TAXABLE INCOME IS:         THE TAX IS:
NOT OVER $14,400                       2.168% OF THE CITY TAXABLE INCOME
OVER $14,400 BUT NOT                   $312 PLUS 2.635% OF EXCESS
OVER $30,000                           OVER $14,400
OVER $30,000 BUT NOT                   $723 PLUS 3.15% OF EXCESS
OVER $60,000                           OVER $30,000
OVER $60,000 BUT NOT                   $1,621 PLUS 3.15% OF EXCESS
OVER $100,000                          OVER $60,000
OVER $100,000 BUT NOT                  $2,881 PLUS 3.2% OF EXCESS

S. 1799                             4

OVER $500,000                          OVER $100,000
OVER $500,000 BUT NOT                  $15,681 PLUS 3.4% OF EXCESS
OVER $1,000,000                        OVER $500,000
OVER $1,000,000 BUT NOT                $32,681 PLUS 3.7% OF EXCESS
OVER $2,000,000                        OVER $1,000,000
OVER $2,000,000                        $69,681 PLUS 3.8% OF EXCESS
                                       OVER $2,000,000

  S  7.  Paragraph 3 of subsection (a) of section 1304 of the tax law is
amended by adding a new subparagraph (C) to read as follows:

  (C) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND FOURTEEN:
IF THE CITY TAXABLE INCOME IS:         THE TAX IS:
NOT OVER $12,000                       2.168% OF THE CITY TAXABLE INCOME
OVER $12,000 BUT NOT                   $260 PLUS 2.635% OF EXCESS
OVER $25,000                           OVER $12,000
OVER $25,000 BUT NOT                   $603 PLUS 2.993% OF EXCESS
OVER $50,000                           OVER $25,000
OVER $50,000 BUT NOT                   $1,351 PLUS 3.15% OF EXCESS
OVER $83,000                           OVER $50,000
OVER $83,000 BUT NOT                   $2,400 PLUS 3.2% OF EXCESS
OVER $500,000                          OVER $83,000
OVER $500,000 BUT NOT                  $15,734 PLUS 3.4% OF EXCESS
OVER $1,000,000                        OVER $500,000
OVER $1,000,000 BUT NOT                $32,734 PLUS 3.7% OF EXCESS
OVER $2,000,000                        OVER $1,000,000
OVER $2,000,000                        $69,734 PLUS 3.8% OF EXCESS
                                       OVER $2,000,000

  S 8. The commissioner of taxation and  finance  shall  take  steps  to
publicize  the necessary adjustments to estimated tax and, to the extent
reasonably possible, to inform the taxpayer of the tax liability changes
made by this act.
  S 9. This act shall take effect immediately.

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