Bill Text: NY A04474 | 2023-2024 | General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Authorizes the city of New York to impose a personal income surcharge on high income residents to fund transit improvements.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-01-03 - referred to corporations, authorities and commissions [A04474 Detail]
Download: New_York-2023-A04474-Introduced.html
Bill Title: Authorizes the city of New York to impose a personal income surcharge on high income residents to fund transit improvements.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-01-03 - referred to corporations, authorities and commissions [A04474 Detail]
Download: New_York-2023-A04474-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 4474 2023-2024 Regular Sessions IN ASSEMBLY February 16, 2023 ___________ Introduced by M. of A. O'DONNELL -- read once and referred to the Committee on Corporations, Authorities and Commissions AN ACT to amend the public authorities law, the tax law and the adminis- trative code of the city of New York, in relation to authorizing and imposing a tax surcharge on the personal income of certain high-income residents of such city in order to fund transit infrastructure improvements The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The public authorities law is amended by adding a new 2 section 1270-j to read as follows: 3 § 1270-j. New York city dedicated personal income tax surcharge fund. 4 1. The authority shall establish a fund to be known as the "New York 5 city dedicated personal income tax surcharge fund" which shall be kept 6 separate from and shall not be commingled with any other moneys of the 7 authority. 8 2. There shall be deposited into the New York city dedicated personal 9 income tax surcharge fund the moneys transferred to the metropolitan 10 transportation authority from the New York city transitional finance 11 authority pursuant to subsection (e) of section thirteen hundred four-E 12 of the tax law, and any other provision of law directing or permitting 13 the deposit of moneys in such fund, to be used exclusively for the 14 financing of transit infrastructure improvements. 15 3. Moneys in the New York city dedicated personal income tax surcharge 16 fund (a) shall be used to fund capital projects that satisfy the follow- 17 ing criteria: (i) defined as state of good repair, normal replacement, 18 or an Americans with Disabilities Act related system improvement within 19 the capital program of the authority; and (ii) included in any of the 20 following categories within the capital program of the authority: New 21 York city transit authority buses, subway cars, track, line equipment, 22 line structures, signals and communications, traction power, shops and EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD03039-01-3A. 4474 2 1 yards, depots, service vehicles, passenger station projects, as needed 2 to comply with the Americans with Disabilities Act, Staten Island rail- 3 way and authority bus company projects; and (b) may be (i) pledged by 4 the authority as security for the payment of principal and interest on 5 bonds issued after July first, two thousand twenty-three to finance 6 capital projects that meet the criteria identified in paragraph (a) of 7 this subdivision, including bonds issued to refund such bonds and (ii) 8 used for payment of principal and interest on such bonds, funding of 9 reserves required in connection with such bonds, and the payment of 10 costs of issuance related to such bonds. To the extent moneys in the New 11 York city dedicated personal income tax surcharge fund have been 12 pledged by the authority to secure the payment of principal and interest 13 on bonds as herein provided, moneys deposited into the New York city 14 dedicated personal income tax surcharge fund shall first be deposited 15 into the New York city dedicated personal income tax surcharge fund to 16 the extent necessary to make payments pursuant to paragraph (b) of this 17 subdivision. After making such payments, moneys deposited in the New 18 York city dedicated personal income tax surcharge fund shall be used to 19 fund projects that meet the criteria identified in paragraph (a) of this 20 subdivision. 21 4. The state does hereby pledge and agree with the holders of any 22 issue of bonds secured by pledge described in paragraph (b) of subdivi- 23 sion three of this section that the state will not limit or alter the 24 rights hereby vested in the metropolitan transportation authority to 25 fulfill the terms of any agreements made with bondholders pursuant to 26 this title, or in any way impair the rights and remedies of such holders 27 or the security for such bonds until such bonds are fully paid and 28 discharged. Nothing contained in this section shall be deemed to 29 restrict the right of the state to amend, modify, repeal or otherwise 30 alter statutes imposing or relating to the taxes payable to the New York 31 city transitional finance authority pursuant to section thirteen hundred 32 thirteen of the tax law, but such taxes shall in all events continue to 33 be so payable so long as any such taxes are imposed. Nothing in this 34 section shall be deemed to obligate the state to make any additional 35 payments or impose any taxes to satisfy the debt service obligations of 36 the metropolitan transportation authority. 37 5. Twice each calendar year, the mayor of the city of New York shall 38 conduct a review of the amount of moneys deposited in the New York city 39 dedicated personal income tax surcharge fund. To the extent such review 40 indicates that the moneys in the New York city dedicated personal income 41 tax surcharge fund are sufficient to satisfy the requirements of any 42 debt service incurred in such calendar year as a result of obligations 43 issued and secured pursuant to paragraph (b) of subdivision three of 44 this section. 45 § 2. Subdivision 5 of section 2799-hh of the public authorities law, 46 as amended by section 6 of subpart B of part MM of chapter 59 of the 47 laws of 2022, is amended to read as follows: 48 5. Tax revenues received by the authority pursuant to subsection (d) 49 of section eight hundred seventy-three, or section thirteen hundred 50 thirteen, of the tax law, together with any alternative revenues 51 received by the authority, shall be applied in the following order of 52 priority: first pursuant to the authority's contracts with bondholders, 53 then to pay the authority's operating expenses not otherwise provided 54 for, then to a dedicated personal income tax surcharge fund pursuant to 55 subsection (d) of section thirteen hundred four-E of the tax law in the 56 amount provided for in such section, and then pursuant to the authori-A. 4474 3 1 ty's agreements with the city, which agreements shall require the 2 authority to transfer the balance of such taxes not required to meet 3 contractual or other obligations of the authority to the city as 4 frequently as practicable. 5 § 3. The tax law is amended by adding a new section 1304-E to read as 6 follows: 7 § 1304-E. Tax surcharge for transit infrastructure improvements. (a) 8 In addition to the taxes authorized by subsection (a) of section thir- 9 teen hundred one of this article, any city imposing such taxes is hereby 10 authorized and empowered to adopt and amend local laws imposing in any 11 such city for each taxable year beginning after two thousand twenty- 12 three, a tax surcharge on the city taxable income of certain city resi- 13 dent individuals, estates and trusts. 14 (b) A tax surcharge imposed pursuant to the authority of this section 15 shall be determined as follows: 16 (1) Resident married individuals filing joint returns and resident 17 surviving spouses. The tax surcharge under this section on the city 18 taxable income of certain city resident married individuals who make a 19 single return jointly with his or her spouse under subsection (b) of 20 section thirteen hundred six of this article and on the city taxable 21 income of certain city resident surviving spouses shall be determined in 22 accordance with the following table: 23 For taxable years beginning after two thousand twenty: 24 If the city taxable income is: The tax surcharge is: 25 Over $1,000,000 .534% of excess over $1,000,000 26 (2) Resident heads of households. The tax surcharge under this section 27 on the city taxable income of certain city resident heads of households 28 shall be determined in accordance with the following table: 29 For taxable years beginning after two thousand twenty: 30 If the city taxable income is: The tax surcharge is: 31 Over $750,000 .534% of excess over $750,000 32 (3) Resident unmarried individuals, resident married individuals 33 filing separate returns and resident estates and trusts. The tax 34 surcharge under this section on the city taxable income of certain city 35 resident individuals who are not city resident married individuals who 36 make a single return jointly with his or her spouse under subsection (b) 37 of section thirteen hundred six of this article or city resident heads 38 of households or city resident surviving spouses, and on the city taxa- 39 ble income of certain city resident estates and trusts shall be deter- 40 mined in accordance with the following table: 41 For taxable years beginning after two thousand twenty: 42 If the city taxable income is: The tax surcharge is: 43 Over $500,000 .534% of excess over $500,000 44 (c) A tax surcharge imposed pursuant to the authority of this section 45 shall be administered and collected in the same manner as the taxes 46 imposed pursuant to the authority of this article, and all of the 47 provisions of this article, including section thirteen hundred ten, 48 shall apply to the tax surcharge imposed pursuant to the authority of 49 this section. 50 (d) Subject to the priority of payments identified in section twenty- 51 seven hundred ninety-nine-hh of the public authorities law, the New York 52 city transitional finance authority shall transfer to the metropolitan 53 transportation authority the amount estimated by the mayor of the city 54 of New York to be the amount received by the New York city transitional 55 finance authority from the tax surcharge imposed pursuant to the author- 56 ity of this section, up to the total amount available after deductingA. 4474 4 1 from revenues received by the New York city transitional finance author- 2 ity pursuant to this section and subsection (c) of section thirteen 3 hundred thirteen of this article amounts to be paid pursuant to the New 4 York city transitional finance authority's contracts with bondholders 5 and the New York city transitional finance authority's operating 6 expenses not otherwise provided for. After the mayor of the city of New 7 York has received data from the department allowing such mayor to deter- 8 mine the actual amount of revenues received by the New York city transi- 9 tional finance authority that are attributable to the tax surcharge 10 imposed pursuant to the authority of this section, such mayor shall 11 inform the New York city transitional finance authority of such actual 12 amount. 13 (e) Any revenues transferred to the metropolitan transportation 14 authority pursuant to subsection (d) of this section shall be paid into 15 a dedicated personal income tax surcharge fund to be used exclusively 16 for the financing of transit infrastructure improvements in accordance 17 with the provisions of section twelve hundred seventy-j of the public 18 authorities law. Such revenues shall only supplement and shall not 19 supplant any federal, state, or local funds expended by the metropolitan 20 transportation authority for New York city transit authority, the metro- 21 politan transportation authority bus company or Staten Island rapid 22 transit operating authority projects, and shall not affect any payment 23 by the city of New York pursuant to agreements relating to the metropol- 24 itan transportation authority bus company and Staten Island rapid trans- 25 it operating authority. 26 § 4. Paragraphs 1 and 2 of subsection (e) of section 1310 of the tax 27 law, as added by chapter 481 of the laws of 1997, are amended to read as 28 follows: 29 (1) Notwithstanding any other provision of law to the contrary, any 30 city imposing a tax under this article is hereby authorized and 31 empowered to adopt and amend local laws for any taxable year beginning 32 after nineteen hundred ninety-seven, as specified in such local laws, 33 providing for a credit as provided in paragraph two of this subsection 34 against the taxes imposed pursuant to the authority granted by section 35 thirteen hundred one of this article on the city taxable income deter- 36 mined pursuant to sections thirteen hundred four, thirteen hundred 37 four-A [and], thirteen hundred four-B and thirteen hundred four-E of 38 this article and on the ordinary income portion of a lump sum distrib- 39 ution determined pursuant to section thirteen hundred one-B of this 40 article, to any city resident individual, estate or trust whose city 41 adjusted gross income includes income, gain, loss or deductions from one 42 or more unincorporated businesses conducted by such city resident indi- 43 vidual, estate or trust on which a tax is imposed by chapter five of 44 title eleven of the administrative code of the city of New York, or a 45 distributive share of income, gain, loss and deductions of, or guaran- 46 teed payments from, one or more partnerships on which a tax is imposed 47 by such chapter. Any such local laws may contain provisions to ensure 48 that such credit shall not reduce the tax paid by a city resident below 49 that which would be paid by such city resident if such city resident 50 were a city nonresident. 51 (2) (A) Subject to the limitation set forth in subparagraph (B) of 52 this paragraph, the credit allowed to a taxpayer for a taxable year 53 shall be equal to all or a portion of the amount determined in paragraph 54 three of this subsection, provided, however, such portion shall not be 55 less than:A. 4474 5 1 (i) If the city taxable income is forty-two thousand dollars or less, 2 sixty-five percent of the amount determined in paragraph three of this 3 subsection. 4 (ii) If the city taxable income is greater than forty-two thousand 5 dollars but not greater than one hundred forty-two thousand dollars, a 6 percentage of the amount determined in paragraph three of this 7 subsection to be determined by subtracting from sixty-five percent, one 8 tenth of a percentage point (.001) for every increment of two hundred 9 dollars, or fractional part thereof, of city taxable income in excess of 10 forty-two thousand dollars. 11 (iii) If the city taxable income is greater than one hundred forty-two 12 thousand dollars, fifteen percent of the amount determined in paragraph 13 three of this subsection. 14 (B) Notwithstanding anything to the contrary in subparagraph (A) of 15 this paragraph, the credit allowed to a taxpayer for a taxable year 16 under this subsection shall not exceed the sum of the taxes that would 17 otherwise be imposed on such taxpayer for such taxable year pursuant to 18 the authority granted by section thirteen hundred one of this article on 19 the city taxable income determined pursuant to sections thirteen hundred 20 four, thirteen hundred four-A [and], thirteen hundred four-B and thir- 21 teen hundred four-E of this article and on the ordinary income portion 22 of a lump sum distribution determined pursuant to section thirteen 23 hundred one-B of this article, reduced by the credits allowed to such 24 taxpayer pursuant to subsections (a), (c) and (d) of this section. 25 § 5. The opening paragraph of subsection (c) of section 1313 of the 26 tax law, as amended by section 8 of part C of chapter 58 of the laws of 27 2005, is amended to read as follows: 28 Subject to the provisions of subsection (g) of this section, the comp- 29 troller, after reserving such refund fund and such costs shall, commenc- 30 ing on or before the fifteenth day of each month, pay to the New York 31 city transitional finance authority on a daily basis the balance of 32 taxes imposed pursuant to the authority of this article or former arti- 33 cle two-E of the general city law to be applied by the authority, in the 34 following order of priority: first pursuant to the authority's contracts 35 with bondholders, then to pay the authority's operating expenses not 36 otherwise provided for, then to a dedicated personal income tax 37 surcharge fund pursuant to subsection (d) of section thirteen hundred 38 four-E of this article and then pursuant to the authority's agreements 39 with the city, which agreements shall require the authority to transfer 40 the balance of such taxes not required to meet contractual or other 41 obligations of the authority to the city as frequently as practicable; 42 except that the comptroller shall: 43 § 6. The administrative code of the city of New York is amended by 44 adding a new section 11-1704.2 to read as follows: 45 § 11-1704.2 Tax surcharge for transit infrastructure improvements. (a) 46 In addition to the taxes imposed by sections 11-1701, 11-1703, 11-1704 47 and 11-1704.1 of this subchapter, there is hereby imposed for each taxa- 48 ble year beginning after two thousand twenty-three, a tax surcharge on 49 the city taxable income of certain city resident individuals, estates 50 and trusts. 51 (b) The tax surcharge imposed pursuant to this section shall be deter- 52 mined as follows: 53 (1) Resident married individuals filing joint returns and resident 54 surviving spouses. The tax surcharge under this section on the city 55 taxable income of certain city resident married individuals who make a 56 single return jointly with his or her spouse under subdivision (b) ofA. 4474 6 1 section 11-1751 of this chapter and on the city taxable income of 2 certain city resident surviving spouses shall be determined in accord- 3 ance with the following table: 4 For taxable years beginning after two thousand twenty: 5 If the city taxable income is: The tax surcharge is: 6 Over $1,000,000 .534% of excess over $1,000,000 7 (2) Resident heads of households. The tax surcharge under this section 8 on the city taxable income of certain city resident heads of households 9 shall be determined in accordance with the following table: 10 For taxable years beginning after two thousand twenty: 11 If the city taxable income is: The tax surcharge is: 12 Over $750,000 .534% of excess over $750,000 13 (3) Resident unmarried individuals, resident married individuals 14 filing separate returns and resident estates and trusts. The tax 15 surcharge under this section on the city taxable income of certain city 16 resident individuals who are not city resident married individuals who 17 make a single return jointly with his or her spouse under subdivision 18 (b) of section 11-1751 of this chapter or city resident heads of house- 19 holds or city resident surviving spouses, and on the city taxable income 20 of certain city resident estates and trusts shall be determined in 21 accordance with the following table: 22 For taxable years beginning after two thousand twenty: 23 If the city taxable income is: The tax surcharge is: 24 Over $500,000 .534% of excess over $500,000 25 (c) The tax surcharge imposed pursuant to this section shall be admin- 26 istered and collected in the same manner as the taxes imposed pursuant 27 to sections 11-1701, 11-1703, 11-1704 and 11-1704.1, and shall be 28 distributed in accordance with subsection (d) of section 1304-E of the 29 tax law, and all of the provisions of this chapter, including section 30 11-1706 of this subchapter, and sections 11-1721 and 11-1773 of this 31 chapter, shall apply to the tax surcharge imposed pursuant to this 32 section. 33 § 7. Paragraphs 1 and 2 of subdivision (c) of section 11-1706 of the 34 administrative code of the city of New York, as added by chapter 481 of 35 the laws of 1997, subparagraph (A) of paragraph 2 as amended by local 36 law number 35 of the city of New York for the year 2007, are amended to 37 read as follows: 38 (1) A city resident individual, estate or trust whose city adjusted 39 gross income includes income, gain, loss or deductions from one or more 40 unincorporated businesses conducted by such city resident individual, 41 estate or trust that are subject to the tax imposed by chapter five of 42 this title, or a distributive share of income, gain, loss and deductions 43 of, or guaranteed payments from, one or more partnerships that are 44 subject to the tax imposed by such chapter, shall be allowed a credit as 45 provided in paragraph two of this subdivision against the tax otherwise 46 due under sections 11-1701, 11-1703, 11-1704 [and], 11-1704.1 and 47 11-1704.2 of this [chapter] subchapter. 48 (2) (A) Subject to the limitation set forth in subparagraph (B) of 49 this paragraph, the credit allowed to a taxpayer for a taxable year 50 under this subdivision shall be determined as follows: 51 (i) For taxable years beginning on or after January first, nineteen 52 hundred ninety-seven and before January first, two thousand seven: 53 (I) If the city taxable income is forty-two thousand dollars or less, 54 the credit shall be sixty-five percent of the amount determined in para- 55 graph three of this subdivision.A. 4474 7 1 (II) If the city taxable income is greater than forty-two thousand 2 dollars but not greater than one hundred forty-two thousand dollars, the 3 amount of the credit shall be a percentage of the amount determined in 4 paragraph three of this subdivision, such percentage to be determined by 5 subtracting from sixty-five percent, one-tenth of a percentage point 6 (.001) for every increment of two hundred dollars, or fractional part 7 thereof, of city taxable income in excess of forty-two thousand dollars. 8 (III) If the city taxable income is greater than one hundred forty-two 9 thousand dollars, the credit shall be fifteen percent of the amount 10 determined in paragraph three of this subdivision. 11 (ii) For taxable years beginning on or after January first, two thou- 12 sand seven: 13 (I) If the city taxable income is forty-two thousand dollars or less, 14 the credit shall be one hundred percent of the amount determined in 15 paragraph three of this subdivision. 16 (II) If the city taxable income is greater than forty-two thousand 17 dollars but less than one hundred forty-two thousand dollars, the amount 18 of the credit shall be a percentage of the amount determined in para- 19 graph three of this subdivision, such percentage to be determined by 20 subtracting from one hundred percent, a percentage determined by 21 subtracting forty-two thousand dollars from city taxable income, divid- 22 ing the result by one hundred thousand dollars and multiplying by seven- 23 ty-seven percent. 24 (III) If the city taxable income is one hundred forty-two thousand 25 dollars or greater, the credit shall be twenty-three percent of the 26 amount determined in paragraph three of this subdivision. 27 (B) Notwithstanding anything to the contrary in subparagraph (A) of 28 this paragraph, the credit allowed to a taxpayer for a taxable year 29 under this subdivision shall not exceed the sum of the taxes that would 30 otherwise be imposed by sections 11-1701, 11-1703, 11-1704 [and], 31 11-1704.1 and 11-1704.2 of this [chapter] subchapter on such taxpayer 32 for such taxable year after the allowance of any other credits allowed 33 by this section or section 11-1721 of this chapter. 34 § 8. This act shall take effect immediately and shall be deemed to 35 have been in full force and effect on and after January 1, 2023.
