NY State Senate Bill 2017-S3170

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2018	referred to investigations and government operations
Jan 20, 2017	referred to investigations and government operations

2017-S3170 (ACTIVE) - Details

See Assembly Version of this Bill:: A10283
Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Add §608, Tax L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S6122
2013-2014: S152
2015-2016: S83
2019-2020: S863, A5382

2017-S3170 (ACTIVE) - Summary

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

2017-S3170 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S3170

 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
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
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
prosperity as incomes grow. As the number of individuals making high
incomes increases, all taxpayers will see their yearly rebate checks
grow.

 LEGISLATIVE HISTORY :

2015-16: Referred to Investigations and Government Operations
2013-14: S.152-A Referred to Investigations & Government Operations
2011-12:  S.6122 Referred to Investigations & Government Operations

 EFFECTIVE DATE :
This act shall take effect immediately.

2017-S3170 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3170
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 20, 2017
                                ___________
 
 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:
   § 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 SEVENTEEN 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
 LABOR FOR THE TWELVE-MONTH PERIOD ENDING SIX MONTHS PRIOR TO  THE  START
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD00342-01-7

 S. 3170                             2
 
 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 SEVENTEEN.
   (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 SEVENTEEN,
 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.
   § 2. This act shall take effect immediately.

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Senate Bill S3170

Sponsored By

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

2017-S3170 (ACTIVE) - Details

2017-S3170 (ACTIVE) - Summary

2017-S3170 (ACTIVE) - Sponsor Memo

2017-S3170 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S3170

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Sponsored By

Patrick M. Gallivan

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

2017-S3170 (ACTIVE) - Details

2017-S3170 (ACTIVE) - Summary

2017-S3170 (ACTIVE) - Sponsor Memo

2017-S3170 (ACTIVE) - Bill Text download pdf

Comments