NY State Senate Bill 2017-S4401

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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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Feb 06, 2018	print number 4401a
Feb 06, 2018	amend and recommit to investigations and government operations
Jan 03, 2018	referred to investigations and government operations
Feb 13, 2017	referred to investigations and government operations

Bill Amendments

Original

A (Active)

2017-S4401 - Details

Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §606, Tax L

2017-S4401 - Summary

Establishes a self-employed taxpayer credit.

2017-S4401 - Sponsor Memo

                                 BILL NUMBER:  S4401

 TITLE OF BILL :  An act to amend the tax law, in relation to
establishing a tax credit for low income individuals subject to the
federal self-employment tax

 PURPOSE :

This bill will decrease the tax burden for low-income individual
taxpayers who are self-employed by extending to qualifying individuals
a state-level tax credit. This tax credit will help facilitate the
success of small businesses throughout the state of New York.

 SUMMARY OF PROVISIONS :

Section 1 declares the need for low-income individuals that are
self-employed and therefore subject to federal self-employment taxes a
state- level tax credit.

Section 2 details the "Self-employed taxpayer credit," which will be a
credit equal to twenty-five percent of the individual's
federal-self-employment taxpayer liability for the year, but kept from
exceeding five hundred dollars.

Subsection (2) defines "qualified self-employed taxpayer" as an
individual taxpayer, whose federal gross income is below forty

thousand dollars, and whose business income in the year is an amount
of at least seventy percent of the individual's federal gross income.
Business entities are not included.

Subsection (3) details how to phase out maximum credit. Specifically,
to reduce dollar for dollar for each dollar beyond thirty-nine
thousand five hundred dollars of federal gross income upon achieving
forty thou- sand dollars in which tax credit will have been entirely
phased out.

 JUSTIFICATION :

Entrepreneurs and individually owned and operated business is a large
portion of New York State's economy. Small businesses are vital in a
transitioning economy and as a State we must do all in our power to
encourage the desire to work for one's self. It is increasingly
difficult for independently owned and operated business owners to earn
a sustainable living if their business is yielding less than
anticipated revenue in the face of federal-employment taxes and state
income taxes.

To help alleviate the obstacles preventing the future
entrepreneurship, and to ensure success of current small businesses
and start-ups, the State of New York should provide a state
implemented incentive in the form of a tax credit to help encourage
economic growth.

 PRIOR LEGISLATIVE HISTORY :

New Bill

 FINANCIAL IMPLICATIONS :

To be determined.

 EFFECTIVE DATE :
This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2018.

2017-S4401 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4401
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             February 13, 2017
                                ___________
 
 Introduced  by  Sen. TEDISCO -- 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 establishing  a  tax  credit
   for low income individuals subject to the federal self-employment tax

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Legislative intent. The legislature recognizes the need  to
 alleviate the tax burden of low income individual taxpayers whose income
 is largely derived from self-employment and therefore affected by feder-
 al  self-employment taxes to a degree disproportionate with such taxpay-
 ers' level of disposable income. This circumstance  hinders  many  newly
 started  businesses  in the state. Therefore, this act provides a state-
 level credit to provide relief to these taxpayers.
   § 2. Section 606 of the tax law is amended by adding a new  subsection
 (ccc) to read as follows:
   (CCC)  SELF-EMPLOYED  TAXPAYER CREDIT.  (1) GENERAL. A QUALIFIED SELF-
 EMPLOYED TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE TAX  IMPOSED  BY
 THIS ARTICLE EQUAL TO TWENTY-FIVE PERCENT OF HIS OR HER FEDERAL SELF-EM-
 PLOYMENT  TAX LIABILITY FOR THE YEAR, BUT NOT EXCEEDING A MAXIMUM AMOUNT
 OF FIVE HUNDRED DOLLARS, AND SUBJECT  TO  PHASE-OUT  AS  PROVIDED  UNDER
 PARAGRAPH THREE OF THIS SUBSECTION.
   (2)  DEFINITION  OF  "QUALIFIED  SELF-EMPLOYED  TAXPAYER". A QUALIFIED
 SELF-EMPLOYED TAXPAYER IS AN INDIVIDUAL TAXPAYER,  WHOSE  FEDERAL  GROSS
 INCOME FOR THE TAX YEAR IS BELOW FORTY THOUSAND DOLLARS, AND WHOSE BUSI-
 NESS  INCOME IN THE YEAR IS AN AMOUNT OF AT LEAST SEVENTY PERCENT OF HIS
 OR HER FEDERAL GROSS INCOME. BUSINESS ENTITIES SHALL NOT BE QUALIFIED.
   (3) MAXIMUM CREDIT PHASE-OUT.  THE  MAXIMUM  ALLOWED  CREDIT  OF  FIVE
 HUNDRED  DOLLARS  SHALL  BE  REDUCED  DOLLAR  FOR DOLLAR FOR EACH DOLLAR
 BEYOND THIRTY-NINE  THOUSAND  FIVE  HUNDRED  DOLLARS  OF  FEDERAL  GROSS
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06364-01-7

 S. 4401                             2
 
 INCOME,  SUCH  THAT  THE  CREDIT  IS COMPLETELY PHASED OUT UPON REACHING
 FORTY THOUSAND DOLLARS OF FEDERAL GROSS INCOME.
   § 3. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2018.

2017-S4401A (ACTIVE) - Details

Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §606, Tax L

2017-S4401A (ACTIVE) - Summary

Establishes a self-employed taxpayer credit.

2017-S4401A (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S4401A

SPONSOR: TEDISCO
 
TITLE OF BILL:  An act to amend the tax law, in relation to establish-
ing a tax credit for low income individuals subject to the federal self-
employment tax

 
PURPOSE:

This bill will decrease the tax burden for low-income individual taxpay-
ers who are self-employed by extending to qualifying individuals a
state-level tax credit. This tax credit will help facilitate the success
of small businesses throughout the state of New York.

 
SUMMARY OF PROVISIONS:

Section 1 declares the need for low-income individuals that are self-em-
ployed and therefore subject to federal self-employment taxes a state-
level tax credit.

Section 2 details the "Self-employed taxpayer credit," which will be a

credit equal to twenty-five percent of the individual's federal-self-em-
ployment taxpayer liability for the year, but kept from exceeding five
hundred dollars.

Subsection (2) defines "qualified self-employed taxpayer" as an individ-
ual taxpayer, whose federal gross income is below forty thousand
dollars, and whose business income in the year is an amount of at least
seventy percent of the individual's federal gross income.  Business
entities are not included.

Subsection (3) details how to phase out maximum credit. Specifically, to
reduce dollar for dollar for each dollar beyond thirty-nine thousand
five hundred dollars of federal gross income upon achieving forty thou-
sand dollars in which tax credit will have been entirely phased out.

 
JUSTIFICATION:

Entrepreneurs and individually owned and operated business is a large
portion of New York State's economy. Small businesses are vital in a
transitioning economy and as a State we must do all in our power to
encourage the desire to work for one's self. It is increasingly diffi-
cult for independently owned and operated business owners to earn a
sustainable living if their business is yielding less than anticipated
revenue in the face of federal-employment taxes and state income taxes.

To help alleviate the obstacles preventing the future entrepreneurship,
and to ensure success of current small businesses and start-ups, the
State of New York should provide a state implemented incentive in the
form of a tax credit to help encourage economic growth.

 
PRIOR LEGISLATIVE HISTORY:

New Bill

 
FINANCIAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to taxable years
beginning on or after January 1, 2019.

2017-S4401A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  4401--A
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             February 13, 2017
                                ___________
 
 Introduced  by  Sen. TEDISCO -- 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 establishing a tax credit
   for low income individuals subject to the federal self-employment tax
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Legislative intent. The legislature recognizes the need to
 alleviate the tax burden of low income individual taxpayers whose income
 is largely derived from self-employment and therefore affected by feder-
 al self-employment taxes to a degree disproportionate with such  taxpay-
 ers'  level  of  disposable income. This circumstance hinders many newly
 started businesses in the state. Therefore, this act provides  a  state-
 level credit to provide relief to these taxpayers.
   §  2. Section 606 of the tax law is amended by adding a new subsection
 (ccc) to read as follows:
   (CCC) SELF-EMPLOYED TAXPAYER CREDIT.  (1) GENERAL. A  QUALIFIED  SELF-
 EMPLOYED  TAXPAYER  SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY
 THIS ARTICLE EQUAL TO TWENTY-FIVE PERCENT OF HIS OR HER FEDERAL SELF-EM-
 PLOYMENT TAX LIABILITY FOR THE YEAR, BUT NOT EXCEEDING A MAXIMUM  AMOUNT
 OF  FIVE  HUNDRED  DOLLARS,  AND  SUBJECT TO PHASE-OUT AS PROVIDED UNDER
 PARAGRAPH THREE OF THIS SUBSECTION.
   (2) DEFINITION OF  "QUALIFIED  SELF-EMPLOYED  TAXPAYER".  A  QUALIFIED
 SELF-EMPLOYED  TAXPAYER  IS  AN INDIVIDUAL TAXPAYER, WHOSE FEDERAL GROSS
 INCOME FOR THE TAX YEAR IS BELOW FORTY THOUSAND DOLLARS, AND WHOSE BUSI-
 NESS INCOME IN THE YEAR IS AN AMOUNT OF AT LEAST SEVENTY PERCENT OF  HIS
 OR HER FEDERAL GROSS INCOME. BUSINESS ENTITIES SHALL NOT BE QUALIFIED.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06364-02-8

 S. 4401--A                          2
 
   (3)  MAXIMUM  CREDIT  PHASE-OUT.  THE  MAXIMUM  ALLOWED CREDIT OF FIVE
 HUNDRED DOLLARS SHALL BE REDUCED  DOLLAR  FOR  DOLLAR  FOR  EACH  DOLLAR
 BEYOND  THIRTY-NINE  THOUSAND  FIVE  HUNDRED  DOLLARS  OF  FEDERAL GROSS
 INCOME, SUCH THAT THE CREDIT IS  COMPLETELY  PHASED  OUT  UPON  REACHING
 FORTY THOUSAND DOLLARS OF FEDERAL GROSS INCOME.
   § 3. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2019.

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Senate Bill S4401

Sponsored By

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

Actions

Bill Amendments

2017-S4401 - Details

2017-S4401 - Summary

2017-S4401 - Sponsor Memo

2017-S4401 - Bill Text download pdf

2017-S4401A (ACTIVE) - Details

2017-S4401A (ACTIVE) - Summary

2017-S4401A (ACTIVE) - Sponsor Memo

2017-S4401A (ACTIVE) - Bill Text download pdf

Comments

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Sponsored By

James Tedisco

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

Actions

Bill Amendments

2017-S4401 - Details

2017-S4401 - Summary

2017-S4401 - Sponsor Memo

2017-S4401 - Bill Text download pdf

2017-S4401A (ACTIVE) - Details

2017-S4401A (ACTIVE) - Summary

2017-S4401A (ACTIVE) - Sponsor Memo

2017-S4401A (ACTIVE) - Bill Text download pdf

Comments