S T A T E O F N E W Y O R K
________________________________________________________________________
6179
2023-2024 Regular Sessions
I N A S S E M B L Y
April 3, 2023
___________
Introduced by M. of A. DiPIETRO -- read once and referred to the Commit-
tee on Ways and Means
AN ACT to amend the tax law, in relation to placing a limit upon the
personal income tax by the state of New York
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 608 to read
as follows:
§ 608. LIMIT UPON THE PERSONAL INCOME TAX LEVY BY THE STATE OF NEW
YORK.
1. UNLESS OTHERWISE PROVIDED BY LAW, THE AMOUNT OF PERSONAL INCOME
TAXES THAT MAY BE LEVIED BY OR ON BEHALF OF THE STATE OF NEW YORK SHALL
NOT EXCEED THE TAX LEVY LIMIT ESTABLISHED PURSUANT TO THIS SECTION.
2. WHEN USED IN THIS SECTION:
(A) "ALLOWABLE LEVY GROWTH FACTOR" FOR ALL FISCAL YEARS THAT BEGIN
AFTER TWO THOUSAND TWENTY-THREE SHALL BE THE HIGHER OF: (I) ONE AND TWO
ONE-HUNDREDTHS; OR (II) THE SUM OF NINETY-NINE ONE-HUNDREDTHS PLUS THE
INFLATION FACTOR.
(B) "AVAILABLE CARRYOVER" MEANS THE AMOUNT BY WHICH THE TAX LEVY FOR
THE PRIOR FISCAL YEAR WAS BELOW THE TAX LEVY LIMIT FOR SUCH FISCAL YEAR,
IF ANY, BUT NO MORE THAN AN AMOUNT THAT EQUALS ONE AND ONE-HALF PERCENT
OF THE TAX LEVY LIMIT FOR SUCH FISCAL YEAR.
(C) "COMING FISCAL YEAR" MEANS THE FISCAL YEAR OF THE STATE GOVERNMENT
FOR WHICH A TAX LEVY LIMIT SHALL BE DETERMINED PURSUANT TO THIS SECTION.
(D) "INFLATION FACTOR" MEANS THE QUOTIENT OF: (I) THE AVERAGE OF THE
NATIONAL CONSUMER PRICE INDEXES DETERMINED BY THE UNITED STATES DEPART-
MENT OF LABOR FOR THE TWELVE-MONTH PERIOD ENDING SIX MONTHS PRIOR TO THE
START OF THE COMING FISCAL YEAR MINUS THE AVERAGE OF THE NATIONAL
CONSUMER PRICE INDEXES DETERMINED BY THE UNITED STATES DEPARTMENT OF
LABOR FOR THE TWELVE-MONTH PERIOD ENDING SIX MONTHS PRIOR TO THE START
OF THE PRIOR FISCAL YEAR, DIVIDED BY: (II) THE AVERAGE OF THE NATIONAL
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07581-01-3
A. 6179 2
CONSUMER PRICE INDEXES DETERMINED BY THE UNITED STATES DEPARTMENT OF
LABOR FOR THE TWELVE-MONTH PERIOD ENDING SIX MONTHS PRIOR TO THE START
OF THE PRIOR FISCAL YEAR, WITH THE RESULT EXPRESSED AS A DECIMAL TO FOUR
PLACES.
(E) "PRIOR FISCAL YEAR" MEANS THE FISCAL YEAR OF THE STATE IMMEDIATELY
PRECEDING THE COMING FISCAL YEAR.
(F) "TAX LEVY LIMIT" MEANS THE AMOUNT OF TAXES AUTHORIZED TO BE LEVIED
BY OR ON BEHALF OF THE STATE PURSUANT TO THIS SECTION FOR FISCAL YEARS
BEGINNING AFTER TWO THOUSAND TWENTY-THREE.
(G) "TAX" OR "TAXES" MEANS PERSONAL INCOME TAXES LEVIED BY OR ON
BEHALF OF THE STATE.
3. (A) SUBJECT TO THE PROVISIONS OF SUBDIVISION FIVE OF THIS SECTION,
BEGINNING WITH THE FISCAL YEAR THAT BEGINS AFTER TWO THOUSAND TWENTY-
THREE, THE STATE SHALL NOT ADOPT A BUDGET THAT REQUIRES A TAX LEVY THAT
IS GREATER THAN THE TAX LEVY LIMIT FOR THE COMING FISCAL YEAR.
(B) THE STATE SHALL CALCULATE THE TAX LEVY LIMIT APPLICABLE TO THE
COMING FISCAL YEAR WHICH SHALL BE DETERMINED AS FOLLOWS:
(I) ASCERTAIN THE TOTAL AMOUNT OF TAXES LEVIED FOR THE PRIOR FISCAL
YEAR.
(II) MULTIPLY THE RESULT BY THE ALLOWABLE LEVY GROWTH FACTOR.
(III) ADD THE AVAILABLE CARRYOVER, IF ANY.
4. IN THE EVENT THE STATE'S ACTUAL TAX LEVY FOR A GIVEN FISCAL YEAR
EXCEEDS THE TAX LEVY LIMIT BY MORE THAN ONE PERCENT OF THE TAX LEVY
LIMIT, THE STATE SHALL REBATE THE TOTAL AMOUNT THAT THE ACTUAL TAX LEVY
EXCEEDS THE TAX LEVY LIMIT SO THAT EACH INDIVIDUAL FILER RECEIVES A
REBATE OF EQUAL AMOUNT ROUNDED DOWN TO THE NEAREST CENT, PROVIDED THAT
NO INDIVIDUAL SHALL RECEIVE A REBATE OF A GREATER AMOUNT THAN THE INCOME
TAXES PAID DURING THE SAME FISCAL YEAR. THESE REBATES SHALL BE MAILED
IN THE FORM OF CHECKS PAYABLE TO THE FILING INDIVIDUAL NO LATER THAN THE
FIRST OF SEPTEMBER FOLLOWING THE END OF EACH FISCAL YEAR.
5. IN THE EVENT THE STATE'S ACTUAL TAX LEVY FOR A GIVEN FISCAL YEAR
EXCEEDS THE TAX LEVY LIMIT AS ESTABLISHED PURSUANT TO THIS SECTION BY
LESS THAN ONE PERCENT OF THE TAX LEVY LIMIT, THE STATE SHALL PLACE THE
EXCESS AMOUNT OF THE LEVY IN RESERVE IN ACCORDANCE WITH SUCH REQUIRE-
MENTS AS THE STATE COMPTROLLER MAY PRESCRIBE, AND SHALL USE SUCH FUNDS
AND ANY INTEREST EARNED THEREON TO OFFSET THE TAX LEVY FOR THE ENSUING
FISCAL YEAR.
§ 2. This act shall take effect immediately.