Assembly Bill A2718

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

                                  2718

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                            January 20, 2015
                               ___________

Introduced  by  M.  of A. TEDISCO, KOLB -- read once and referred to the
  Committee on Ways and Means

AN ACT to amend the tax law, in relation to a limit upon personal income
  tax levy 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 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 SIXTEEN SHALL BE THE HIGHER OF: (I) ONE AND TWO  ONE-
HUNDREDTHS;  OR  (II)  THE SUM OF ONE PLUS THE INFLATION FACTOR. FOR THE
FISCAL YEAR THAT BEGINS IN  TWO  THOUSAND  SIXTEEN  THE  ALLOWABLE  LEVY
GROWTH FACTOR SHALL BE ONE.
  (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, EXCEPT THAT THERE SHALL BE
NO AVAILABLE CARRYOVER ADDED TO THE TAX  LEVY  LIMIT  FOR  FISCAL  YEARS
BEGINNING BEFORE TWO THOUSAND EIGHTEEN.
  (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.
                                                           LBD02632-01-5
              

A. 2718                             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 FIFTEEN.
  (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 IN TWO THOUSAND SIXTEEN, 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 FORMS 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.