Senate Bill S4565

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4565
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             February 17, 2017
                                ___________
 
 Introduced  by  Sen.  AKSHAR -- 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  the  business  income  base
   rate and certain small business taxpayers (Part A); to repeal sections
   24,  28  and  31  of  the  tax law, subsections (gg), (jj) and (qq) of
   section 606 of the tax law, subdivisions 20,  23  and  32  of  section
   210-B of the tax law and subdivisions (b) and (c) of section 1201-a of
   the  tax law, relating to the empire state film production credit, the
   empire state commercial production credit, and the empire  state  film
   post production credit (Part B); and to direct the empire state devel-
   opment  corporation  to cease all advertisement and promotional activ-
   ities for the Start-Up NY Program (Part C)
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. This act enacts into law major components of legislation to
 assist  small businesses within New York state. Each component is wholly
 contained within a Part identified as Parts A through C.  The  effective
 date  for  each  particular  provision contained within such Part is set
 forth in the last section of such Part. Any  provision  in  any  section
 contained within a Part, including the effective date of the Part, which
 makes  a  reference  to a section "of this act", when used in connection
 with that particular component, shall be deemed to mean and refer to the
 corresponding section of the Part in which it is found. Section four  of
 this act sets forth the general effective date of this act.
   §  2.  This act shall be known and may be cited as the "small business
 jobs revitalization act".
 
                                  PART A
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04355-01-7

              

 S. 4565                             2
 
   Section 1. Subparagraph (iv) of paragraph  (a)  of  subdivision  1  of
 section  210 of the tax law, as amended by section 12 of part A of chap-
 ter 59 of the laws of 2014, is amended to read as follows:
   (iv)  (A)  for taxable years beginning before January first, two thou-
 sand sixteen, if the business income base is not more than  two  hundred
 ninety  thousand dollars the amount shall be six and one-half percent of
 the business income base; if the business income base is more  than  two
 hundred  ninety thousand dollars but not over three hundred ninety thou-
 sand dollars the amount shall be the sum of (1) eighteen thousand  eight
 hundred  fifty dollars, (2) seven and one-tenth percent of the excess of
 the business income base over two hundred ninety  thousand  dollars  but
 not  over three hundred ninety thousand dollars and (3) four and thirty-
 five hundredths percent of the excess of the business income  base  over
 three  hundred  fifty thousand dollars but not over three hundred ninety
 thousand dollars;
   (B) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST,  TWO  THOU-
 SAND  SEVENTEEN  AND BEFORE JANUARY FIRST, TWO THOUSAND EIGHTEEN, IF THE
 BUSINESS INCOME BASE IS NOT MORE THAN FIVE HUNDRED THOUSAND DOLLARS  THE
 AMOUNT  SHALL  BE  THREE  AND ONE-QUARTER PERCENT OF THE BUSINESS INCOME
 BASE; IF THE BUSINESS INCOME BASE IS MORE  THAN  FIVE  HUNDRED  THOUSAND
 DOLLARS  BUT  NOT  OVER SIX HUNDRED THOUSAND DOLLARS THE AMOUNT SHALL BE
 THE SUM OF (1) SIXTEEN THOUSAND TWO HUNDRED FIFTY DOLLARS, (2)  SIX  AND
 ONE-HALF  PERCENT  OF  THE  EXCESS OF THE BUSINESS INCOME BASE OVER FIVE
 HUNDRED THOUSAND DOLLARS BUT NOT OVER SIX HUNDRED THOUSAND  DOLLARS  AND
 (3) THIRTY-TWO AND ONE-HALF PERCENT OF THE EXCESS OF THE BUSINESS INCOME
 BASE  OVER  FIVE HUNDRED FIFTY THOUSAND DOLLARS BUT NOT OVER SIX HUNDRED
 THOUSAND DOLLARS;
   (C) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST,  TWO  THOU-
 SAND  EIGHTEEN  AND  BEFORE JANUARY FIRST, TWO THOUSAND NINETEEN, IF THE
 BUSINESS INCOME BASE IS NOT MORE THAN FIVE HUNDRED THOUSAND DOLLARS  THE
 AMOUNT SHALL BE TWO AND NINE-TENTHS PERCENT OF THE BUSINESS INCOME BASE;
 IF  THE  BUSINESS INCOME BASE IS MORE THAN FIVE HUNDRED THOUSAND DOLLARS
 BUT NOT OVER SIX HUNDRED THOUSAND DOLLARS THE AMOUNT SHALL BE THE SUM OF
 (1) FOURTEEN THOUSAND FIVE HUNDRED DOLLARS, (2) SIX AND ONE-HALF PERCENT
 OF THE EXCESS OF THE BUSINESS INCOME BASE  OVER  FIVE  HUNDRED  THOUSAND
 DOLLARS  BUT  NOT  OVER  SIX HUNDRED THOUSAND DOLLARS AND (3) THIRTY-SIX
 PERCENT OF THE EXCESS OF THE BUSINESS  INCOME  BASE  OVER  FIVE  HUNDRED
 FIFTY THOUSAND DOLLARS BUT NOT OVER SIX HUNDRED THOUSAND DOLLARS;
   (D)  FOR  TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
 SAND NINETEEN, IF THE BUSINESS INCOME BASE IS NOT MORE THAN FIVE HUNDRED
 THOUSAND DOLLARS THE AMOUNT SHALL BE TWO AND  ONE-HALF  PERCENT  OF  THE
 BUSINESS  INCOME  BASE;  IF  THE  BUSINESS INCOME BASE IS MORE THAN FIVE
 HUNDRED THOUSAND DOLLARS BUT NOT OVER SIX HUNDRED THOUSAND  DOLLARS  THE
 AMOUNT SHALL BE THE SUM OF (1) TWELVE THOUSAND FIVE DOLLARS, (2) SIX AND
 ONE-HALF  PERCENT  OF  THE  EXCESS OF THE BUSINESS INCOME BASE OVER FIVE
 HUNDRED THOUSAND DOLLARS BUT NOT OVER SIX HUNDRED THOUSAND  DOLLARS  AND
 (3)  FORTY  PERCENT  OF THE EXCESS OF THE BUSINESS INCOME BASE OVER FOUR
 HUNDRED FIFTY THOUSAND  DOLLARS  BUT  NOT  OVER  FIVE  HUNDRED  THOUSAND
 DOLLARS.
   §  2. Paragraph 39 of subsection (c) of section 612 of the tax law, as
 added by section 1 of part Y of chapter 59  of  the  laws  of  2013,  is
 amended to read as follows:
   (39)  In  the case of a taxpayer who is a small business who has busi-
 ness income and/or farm income as defined in  the  laws  of  the  United
 States,  an  amount  equal  to three percent of the net items of income,
 gain, loss and deduction attributable to such business or farm  entering

 S. 4565                             3
 
 into  federal adjusted gross income, but not less than zero, for taxable
 years beginning ON OR after JANUARY FIRST, two thousand thirteen[,]  BUT
 BEFORE  JANUARY  FIRST,  TWO THOUSAND FOURTEEN; an amount equal to three
 and  three-quarters  percent  of the net items of income, gain, loss and
 deduction attributable to such business or farm  entering  into  federal
 adjusted  gross income, but not less than zero, for taxable years begin-
 ning ON OR after JANUARY FIRST, two thousand fourteen[, and] BUT  BEFORE
 JANUARY  FIRST, TWO THOUSAND FIFTEEN; an amount equal to five percent of
 the net items of income, gain, loss and deduction attributable  to  such
 business  or  farm  entering into federal adjusted gross income, but not
 less than zero, for taxable years beginning ON OR after  JANUARY  FIRST,
 two  thousand  fifteen BUT BEFORE JANUARY FIRST, TWO THOUSAND SEVENTEEN;
 AN AMOUNT EQUAL TO TEN PERCENT OF THE NET ITEMS OF  INCOME,  GAIN,  LOSS
 AND DEDUCTION ATTRIBUTABLE TO SUCH BUSINESS OR FARM ENTERING INTO FEDER-
 AL  ADJUSTED  GROSS  INCOME,  BUT  NOT LESS THAN ZERO, FOR TAXABLE YEARS
 BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SEVENTEEN  BUT  BEFORE
 JANUARY FIRST, TWO THOUSAND EIGHTEEN; AN AMOUNT EQUAL TO FIFTEEN PERCENT
 OF  THE  NET  ITEMS  OF INCOME, GAIN, LOSS AND DEDUCTION ATTRIBUTABLE TO
 SUCH BUSINESS OR FARM ENTERING INTO FEDERAL ADJUSTED GROSS  INCOME,  BUT
 NOT  LESS  THAN  ZERO,  FOR  TAXABLE YEARS BEGINNING ON OR AFTER JANUARY
 FIRST, TWO THOUSAND EIGHTEEN BUT  BEFORE  JANUARY  FIRST,  TWO  THOUSAND
 NINETEEN;  AND  AN  AMOUNT  EQUAL  TO TWENTY PERCENT OF THE NET ITEMS OF
 INCOME, GAIN, LOSS AND DEDUCTION ATTRIBUTABLE TO SUCH BUSINESS  OR  FARM
 ENTERING INTO FEDERAL ADJUSTED GROSS INCOME, BUT NOT LESS THAN ZERO, FOR
 TAXABLE  YEARS  BEGINNING  ON OR AFTER JANUARY FIRST, TWO THOUSAND NINE-
 TEEN. PROVIDED THAT SUCH BUSINESS OR FARM INCOME IS LESS THAN  OR  EQUAL
 TO  FIVE  HUNDRED  THOUSAND DOLLARS. For the purposes of this paragraph,
 the term small business shall mean a [sole  proprietor]  BUSINESS  or  a
 farm  business  who  employs one or more persons during the taxable year
 and who has net business income or net farm income of EQUAL TO  OR  less
 than [two hundred fifty] FIVE HUNDRED thousand dollars. FOR THE PURPOSES
 OF  THIS PARAGRAPH, IF THE TAXPAYER IS A MEMBER, PARTNER, OR SHAREHOLDER
 OF A  LIMITED  LIABILITY  COMPANY,  PARTNERSHIP  OR  S-CORPORATION,  THE
 TAXPAYER  WILL  ONLY  BE  ELIGIBLE  UNDER THIS PARAGRAPH IF THE NEW YORK
 SOURCE GROSS INCOME OF THE LIMITED  LIABILITY  COMPANY,  PARTNERSHIP  OR
 S-CORPORATION DOES NOT EXCEED ONE MILLION DOLLARS. NEW YORK SOURCE GROSS
 INCOME  IS  THE  SUM OF THE MEMBERS, PARTNERS, OR SHAREHOLDERS SHARES OF
 FEDERAL GROSS INCOME FROM THE LIMITED LIABILITY COMPANY, PARTNERSHIP, OR
 S-CORPORATION DERIVED FROM OR CONNECTED WITH NEW  YORK  SOURCES,  DETER-
 MINED  IN  ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED THIRTY-
 ONE OF THIS ARTICLE AS IF THOSE PROVISIONS AND  ANY  RELATED  PROVISIONS
 EXPRESSLY  REFERRED  TO  A  COMPUTATION OF FEDERAL GROSS INCOME FROM NEW
 YORK SOURCES.
   § 3. This act shall take effect immediately.
 
                                  PART B
 
   Section 1. Sections 24, 28 and 31 of the tax law, section 28 as  added
 by  section 2 of part V of chapter 62 of the laws of 2006 and section 31
 as added by section 12 of part Q of chapter 57 of the laws of 2010,  are
 REPEALED.
   §  2.  Subsections  (gg), (jj) and (qq) of section 606 of the tax law,
 subsection (jj) as added by section 5 of part V of  chapter  62  of  the
 laws  of  2006  and  subsection (qq) as added by section 15 of part Q of
 chapter 57 of the laws of 2010, are REPEALED.

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   § 3. Subdivisions 20, 23 and 32 of section 210-B of the  tax  law  are
 REPEALED.
   §  4.  Subdivisions  (b)  and (c) of section 1201-a of the tax law are
 REPEALED and subdivision (d) is relettered subdivision (b).
   § 5. This act shall take effect immediately.
 
                                  PART C
 
   Section 1. The empire state development corporation shall  immediately
 cease  and discontinue all promotional and advertising campaigns for the
 Start-Up NY Program established pursuant to article 21 of  the  economic
 development  law.  Any  remaining  funds appropriated for such campaigns
 shall be returned to the general fund.
   § 2. This act shall take effect immediately.
   § 3. Severability clause. If any clause, sentence, paragraph, subdivi-
 sion, section or part of this act shall be  adjudged  by  any  court  of
 competent  jurisdiction  to  be invalid, such judgment shall not affect,
 impair, or invalidate the remainder thereof, but shall  be  confined  in
 its  operation  to the clause, sentence, paragraph, subdivision, section
 or part thereof directly involved in the controversy in which such judg-
 ment shall have been rendered. It is hereby declared to be the intent of
 the legislature that this act would  have  been  enacted  even  if  such
 invalid provisions had not been included herein.
   §  4.  This act shall take effect immediately, provided, however, that
 the applicable effective date of Parts A through C of this act shall  be
 as specifically set forth in the last section of such Parts.