The New York State Senate

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

                                 6309--A

                       2019-2020 Regular Sessions

                          I N  A S S E M B L Y

                              March 5, 2019
                               ___________

Introduced  by  M.  of  A. SCHIMMINGER, STIRPE, WALLACE, D'URSO, THIELE,
  ORTIZ, MOSLEY,  WOERNER,  MALLIOTAKIS,  BRABENEC,  McDONOUGH,  HAWLEY,
  MONTESANO,  STERN, JONES, RA, PALUMBO, PHEFFER AMATO, CROUCH, LiPETRI,
  LUPARDO, TAGUE, SMITH, SAYEGH, B. MILLER, GRIFFIN, CUSICK -- read once
  and referred to the Committee on Ways and Means -- recommitted to  the
  Committee on Ways and Means in accordance with Assembly Rule 3, sec. 2
  --  committee  discharged,  bill amended, ordered reprinted as amended
  and recommitted to said committee

AN ACT to amend the tax law, in relation to  the  business  income  base
  rate and expanding the small business subtraction modification

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

  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 TWENTY-ONE, IF THE BUSINESS  INCOME  BASE  IS  NOT  MORE  THAN  TWO
HUNDRED  NINETY THOUSAND DOLLARS THE AMOUNT SHALL BE FOUR PERCENT OF THE
BUSINESS INCOME BASE; IF THE BUSINESS  INCOME  BASE  IS  MORE  THAN  TWO

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

                                                           LBD08516-03-0

A. 6309--A                          2

HUNDRED  NINETY THOUSAND DOLLARS BUT NOT OVER THREE HUNDRED NINETY THOU-
SAND DOLLARS THE AMOUNT SHALL BE THE SUM  OF  (1)  ELEVEN  THOUSAND  SIX
HUNDRED DOLLARS, (2) SIX AND ONE-HALF PERCENT OF THE EXCESS OF THE BUSI-
NESS  INCOME  BASE OVER TWO HUNDRED NINETY THOUSAND DOLLARS BUT NOT OVER
THREE HUNDRED NINETY THOUSAND DOLLARS  AND  (3)  EIGHTEEN  AND  THIRTEEN
HUNDREDTHS  PERCENT OF THE EXCESS OF THE BUSINESS INCOME BASE OVER THREE
HUNDRED FIFTY THOUSAND DOLLARS BUT NOT OVER THREE HUNDRED  NINETY  THOU-
SAND 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)  (A)  In  the  case  of  a  taxpayer who is a small business OR A
TAXPAYER WHO IS A MEMBER, PARTNER, OR SHAREHOLDER OF A LIMITED LIABILITY
COMPANY, PARTNERSHIP, OR NEW YORK S CORPORATION, RESPECTIVELY, THAT IS A
SMALL BUSINESS, who OR WHICH has business income and/or farm  income  as
defined  in  the  laws  of the United States, an amount equal to [three]
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 after
two thousand thirteen, an  amount  equal  to  three  and  three-quarters
percent  of  the net items of income, gain, loss and deduction attribut-
able to such business or  farm  entering  into  federal  adjusted  gross
income,  but  not  less than zero, for taxable years beginning after two
thousand fourteen, and 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 after two thousand fifteen].
  (B)  (I)  For  the purposes of this paragraph, the term small business
shall mean: (I) a sole proprietor [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 less than two hundred fifty thousand  dollars,  OR
(II)  A LIMITED LIABILITY COMPANY, PARTNERSHIP OR NEW YORK S CORPORATION
THAT DURING THE TAXABLE YEAR EMPLOYS ONE OR MORE  PERSONS  AND  HAS  NEW
YORK  GROSS  BUSINESS INCOME ATTRIBUTABLE TO A NON-FARM BUSINESS THAT IS
GREATER THAN ZERO BUT  LESS  THAN  ONE  MILLION  FIVE  HUNDRED  THOUSAND
DOLLARS  OR  NET  FARM  INCOME  ATTRIBUTABLE  TO A FARM BUSINESS THAT IS
GREATER THAN ZERO BUT LESS THAN TWO HUNDRED FIFTY THOUSAND DOLLARS.
  (II) FOR PURPOSES OF THIS PARAGRAPH, THE TERM NEW YORK GROSS  BUSINESS
INCOME  SHALL  MEAN: (I) IN THE CASE OF A LIMITED LIABILITY COMPANY OR A
PARTNERSHIP NEW YORK SOURCE GROSS INCOME AS DEFINED IN SUBPARAGRAPH  (B)
OF  PARAGRAPH THREE OF SUBSECTION (C) OF SECTION SIX HUNDRED FIFTY-EIGHT
OF THIS ARTICLE, AND, (II) IN THE CASE OF A NEW YORK S CORPORATION,  NEW
YORK  RECEIPTS  INCLUDED  IN  THE  NUMERATOR OF THE APPORTIONMENT FACTOR
DETERMINED UNDER SECTION TWO HUNDRED TEN-A OF THIS CHAPTER FOR THE TAXA-
BLE YEAR.
  (C) TO QUALIFY FOR THIS MODIFICATION IN RELATION TO A  NON-FARM  SMALL
BUSINESS  THAT IS A LIMITED LIABILITY COMPANY, PARTNERSHIP OR NEW YORK S
CORPORATION, THE TAXPAYER'S INCOME  ATTRIBUTABLE  TO  THE  NET  BUSINESS
INCOME FROM ITS OWNERSHIP INTERESTS IN NON-FARM LIMITED LIABILITY COMPA-
NIES,  PARTNERSHIPS  OR  NEW  YORK  S CORPORATIONS MUST BE LESS THAN TWO
HUNDRED FIFTY THOUSAND DOLLARS.
  § 3. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2021.