Senate Bill S7014

                                 
BILL NUMBER: S7014

SPONSOR: RHOADS
 
TITLE OF BILL:

An act to amend the tax law, in relation to certain business taxpayers

 
PURPOSE:

Relates to businesses with fewer than twenty employees.

 
SUMMARY OF PROVISIONS:

  Section  1. Section 210 of the tax is amended by adding a new subdivi-
sion 4 to read as follows: 4. In the case of a taxpayer who employs, the
first fifty thousand dollars is exempt from taxation.

  2. Section 601 of the tax law is amended adding a new subsection (h-1)
to read as follows: (h-1) Businesses with twenty or fewer employees, the
first fifty thousand dollars is exempt from taxation.

  3. This act shall take effect immediately and shall apply  to  taxable
              

years beginning on or after January 1, 2027.

 
JUSTIFICATION:

New  York's tax law must be amended to offer relief to small businesses.
Businesses with fewer than 20  employ  over  1.5  million  New  Yorkers,
accounting  for  18.6  percent  of the workforce across the state. These
small businesses are crucial to New York  State  and  create  a  healthy
economy. They contribute to local economic growth, provide local employ-
ment opportunities, and are the backbone of local communities.

With  rising  costs  burdening businesses across New York, it is growing
increasingly difficult for small businesses to  compete  in  the  global
marketplace.  This  legislation  offers  much needed financial relief by
introducing a tax exemption for the first fifty thousand dollars  earned
by businesses who employ twenty or fewer people. This exemption provides
a  valuable  lifeline  to  allow them to continue to operate as integral
parts of communities.

 
LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE: :
This act shall take effect immediately and shall apply to taxable  years
beginning on or after January 1, 2027.