The New York State Senate

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    29
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 6, 2021
                                ___________
 
 Introduced  by Sens. KAPLAN, ADDABBO, AKSHAR, BRESLIN, RAMOS, SKOUFIS --
   read twice and ordered printed, and when printed to  be  committed  to
   the Committee on Budget and Revenue
 
 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-TWO,  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
 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD01185-01-1

 S. 29                               2
 
 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, 2022.