S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4595
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 4, 2021
                                ___________
 
 Introduced by M. of A. KELLES -- read once and referred to the Committee
   on Ways and Means
 
 AN ACT to amend the tax law, in relation to the imposition of additional
   tax  on  certain business income and on business income included in an
   individual's New York taxable income

   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 two new sections 209-N and
 608 to read as follows:
   §  209-N.  ADDITIONAL  TAX. 1. THERE IS IMPOSED AN ADDITIONAL TAX ON A
 TAXPAYER'S BUSINESS INCOME BASE, AS DEFINED IN SECTION TWO  HUNDRED  TEN
 OF  THIS ARTICLE, AT A RATE EQUAL TO THE DIFFERENCE BETWEEN (I) THE RATE
 OF TAX IMPOSED IN SUBPARAGRAPH (B) OF PARAGRAPH ONE OF SECTION 11 OF THE
 INTERNAL REVENUE CODE (26 U.S. CODE § 11(1)(B)), AS IN  EFFECT  FOR  THE
 YEAR  TWO  THOUSAND SIXTEEN, AND (II) THE CURRENT RATE OF TAX IMPOSED IN
 PARAGRAPH (B) OF SECTION 11 OF THE INTERNAL REVENUE CODE (26 U.S. CODE §
 11(1)(B)).
   2. THE ADDITIONAL TAX UNDER THIS SECTION SHALL  BE  ADMINISTERED,  AND
 PENALTIES SHALL BE IMPOSED, UNDER THE SAME PROVISIONS OF THIS ARTICLE AS
 THE TAX IMPOSED UNDER SECTION TWO HUNDRED NINE OF THIS ARTICLE.
   §  608. ADDITIONAL TAX. 1. THERE IS IMPOSED AN ADDITIONAL TAX UPON THE
 AMOUNT OF AN INDIVIDUAL'S NEW YORK TAXABLE INCOME  THAT  CORRESPONDS  TO
 ANY  DEDUCTION  TAKEN  PURSUANT  TO SECTION 199A OF THE INTERNAL REVENUE
 CODE (26 U.S. CODE § 199A), OR ANY  SUCCESSOR  PROVISION  THERETO.  THIS
 SECTION  SHALL  NOT  APPLY  TO  A TAXPAYER WITH A FEDERAL TAXABLE INCOME
 BELOW THE THRESHOLD AMOUNT, AS DEFINED IN SECTION 199A(E) OF THE  INTER-
 NAL  REVENUE  CODE, PLUS FIFTY THOUSAND DOLLARS FOR SINGLE FILERS OR ONE
 HUNDRED THOUSAND DOLLARS IN THE CASE OF A JOINT RETURN.
   2. THE RATE OF SUCH ADDITIONAL TAX  SHALL  BE  EQUAL  TO  THE  HIGHEST
 FEDERAL INCOME TAX RATES IN EFFECT FOR THE TAXABLE YEAR THAT WOULD APPLY
 TO  THE  AMOUNT DEDUCTED UNDER SECTION 199A OF THE INTERNAL REVENUE CODE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD07723-01-1

 A. 4595                             2
 
 (26 U.S. CODE § 199A), OR ANY SUCCESSOR PROVISION THERETO, BUT  FOR  THE
 APPLICATION OF SUCH SECTION.
   3.  THE  AMOUNT OF AN INDIVIDUAL'S NEW YORK TAXABLE INCOME THAT CORRE-
 SPONDS TO THE AMOUNT OF ANY DEDUCTION TAKEN PURSUANT TO SECTION 199A  OF
 THE INTERNAL REVENUE CODE (26 U.S. CODE § 199A) IS THE AMOUNT THAT BEARS
 THE SAME RELATIONSHIP TO THE TAXPAYER'S TOTAL NEW YORK TAXABLE INCOME AS
 THE  AMOUNT DEDUCTED UNDER SECTION 199A OF THE INTERNAL REVENUE CODE (26
 U.S. CODE § 199A) BEARS TO THE TAXPAYER'S TOTAL FEDERAL  TAXABLE  INCOME
 AS DETERMINED WITHOUT REGARD TO SUCH DEDUCTION.
   4.  THE  ADDITIONAL  TAX UNDER THIS SECTION SHALL BE ADMINISTERED, AND
 PENALTIES SHALL BE IMPOSED, IN  THE  SAME  MANNER  AS  THE  OTHER  TAXES
 IMPOSED BY THIS ARTICLE.
   §  2.  This  act  shall take effect immediately and shall apply to tax
 year 2021.