The New York State Senate

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3352
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 22, 2021
                                ___________
 
 Introduced by M. of A. KIM -- read once and referred to the Committee on
   Ways and Means
 
 AN  ACT  to  amend  the  tax law, in relation to extending the top state
   income tax rate
 
   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 601-b to
 read as follows:
   § 601-B. ADDITIONAL TAX ON LOW-TAXED INVESTMENT INCOME. (A)  THERE  IS
 HEREBY IMPOSED, IN ADDITION TO THE TAX IMPOSED UNDER SECTION SIX HUNDRED
 ONE  OF  THIS  ARTICLE,  AN ADDITIONAL TAX ON A NEW YORK RESIDENT'S LOW-
 TAXED INVESTMENT INCOME.
   (B) LOW-TAXED INVESTMENT INCOME SHALL MEAN THE AMOUNT OF  AN  INDIVID-
 UAL'S  NEW  YORK  TAXABLE INCOME ATTRIBUTABLE TO LONG-TERM CAPITAL GAIN,
 DIVIDENDS, OR ANY OTHER TYPE OF  INCOME  TAXED  UNDER  THE  PREFERENTIAL
 RATES  OF  SECTION  1(H)  OF THE INTERNAL REVENUE CODE, OR ANY SUCCESSOR
 PROVISION THERETO.
   (C)(1) THE ADDITIONAL TAX IMPOSED UNDER THIS SECTION SHALL BE EQUAL TO
 (I) THE DIFFERENCE BETWEEN (A) THE APPLICABLE FEDERAL  INCOME  TAX  RATE
 THAT  WOULD BE IMPOSED ON AN INDIVIDUAL'S LOW-TAXED INVESTMENT INCOME IF
 IT WERE SUBJECT TO THE FEDERAL INCOME  TAX  RATES  IMPOSED  ON  ORDINARY
 INCOME UNDER SECTION 1 OF THE INTERNAL REVENUE CODE AND (B) THE APPLICA-
 BLE  FEDERAL  INCOME  TAX  RATE  IMPOSED AT THE PREFERENTIAL RATES UNDER
 SECTION 1(H) OF THE INTERNAL REVENUE CODE, MULTIPLIED BY (II) THE AMOUNT
 OF AN INDIVIDUAL'S LOW-TAXED INVESTMENT INCOME, AS DEFINED IN SUBSECTION
 (B) OF THIS SECTION.
   (2) THE ADDITIONAL TAX UNDER PARAGRAPH ONE OF THIS SUBSECTION SHALL BE
 MULTIPLIED BY THE PHASE-IN FRACTION TO DETERMINE THE  AMOUNT  DUE  UNDER
 THIS SECTION.  THE PHASE-IN FRACTION IS COMPUTED AS FOLLOWS: THE NUMERA-
 TOR  IS  THE  LESSER  OF  (I) AN INDIVIDUAL'S NEW YORK TAXABLE INCOME IN
 EXCESS OF THE APPLICABLE  AMOUNT  DEFINED  IN  SUBSECTION  (D)  OF  THIS
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD07937-02-1

 A. 3352                             2
 
 SECTION  OR  (II)  FIFTY  THOUSAND DOLLARS, AND THE DENOMINATOR IS FIFTY
 THOUSAND DOLLARS.
   (D) THIS SECTION SHALL NOT APPLY TO THE FOLLOWING PERSONS:
   (1)  IN THE CASE OF RESIDENT MARRIED INDIVIDUALS FILING JOINT RETURNS,
 IF NEW YORK TAXABLE INCOME IS NOT MORE THAN TWO HUNDRED  FIFTY  THOUSAND
 DOLLARS.
   (2)  IN  THE CASE OF A RESIDENT HEAD OF HOUSEHOLD, AN INDIVIDUAL WHOSE
 NEW YORK TAXABLE INCOME IS NOT MORE THAN TWO HUNDRED THOUSAND DOLLARS.
   (3) IN THE CASE OF RESIDENT UNMARRIED  INDIVIDUALS,  RESIDENT  MARRIED
 INDIVIDUALS FILING SEPARATE RETURNS, AND RESIDENT ESTATES AND TRUSTS, IF
 NEW  YORK  TAXABLE  INCOME  IS  NOT MORE THAN ONE HUNDRED FIFTY THOUSAND
 DOLLARS.
   (E) THIS SECTION SHALL BE ADMINISTERED, AND PENALTIES IMPOSED, IN  THE
 SAME  MANNER  AS  THE  TAX IMPOSED UNDER SECTION SIX HUNDRED ONE OF THIS
 ARTICLE.
   (F) THE DEPARTMENT MAY ADOPT RULES AND  REGULATIONS  AS  NECESSARY  TO
 IMPLEMENT THE PROVISIONS OF THIS SECTION.
   § 2. This act shall take effect immediately.