Bill Text: NY A05382 | 2019-2020 | General Assembly | Introduced


Bill Title: Places a limit on the personal income tax levy by New York state.

Spectrum: Partisan Bill (Republican 4-0)

Status: (Introduced - Dead) 2020-07-17 - held for consideration in ways and means [A05382 Detail]

Download: New_York-2019-A05382-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          5382
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    February 11, 2019
                                       ___________
        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:
     1    Section 1.  The tax law is amended by adding a new section 608 to read
     2  as follows:
     3    §  608.  Limit  upon  the personal income tax levy by the state of New
     4  York.
     5    1. Unless otherwise provided by law, the  amount  of  personal  income
     6  taxes  that may be levied by or on behalf of the state of New York shall
     7  not exceed the tax levy limit established pursuant to this section.
     8    2. When used in this section:
     9    (a) "Allowable levy growth factor" for all  fiscal  years  that  begin
    10  after  two  thousand  nineteen  shall  be the higher of: (i) one and two
    11  one-hundredths; or (ii) the sum of ninety-nine one-hundredths  plus  the
    12  inflation factor.
    13    (b)  "Available  carryover" means the amount by which the tax levy for
    14  the prior fiscal year was below the tax levy limit for such fiscal year,
    15  if any, but no more than an amount that equals one and one-half  percent
    16  of the tax levy limit for such fiscal year.
    17    (c) "Coming fiscal year" means the fiscal year of the state government
    18  for which a tax levy limit shall be determined pursuant to this section.
    19    (d)  "Inflation  factor" means the quotient of: (i) the average of the
    20  national consumer price indexes determined by the United States  depart-
    21  ment of labor for the twelve-month period ending six months prior to the
    22  start  of  the  coming  fiscal  year  minus  the average of the national
    23  consumer price indexes determined by the  United  States  department  of
    24  labor  for  the twelve-month period ending six months prior to the start
    25  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.
                                                                   LBD02805-01-9

        A. 5382                             2
     1  consumer  price  indexes  determined  by the United States department of
     2  labor for the twelve-month period ending six months prior to  the  start
     3  of the prior fiscal year, with the result expressed as a decimal to four
     4  places.
     5    (e) "Prior fiscal year" means the fiscal year of the state immediately
     6  preceding the coming fiscal year.
     7    (f) "Tax levy limit" means the amount of taxes authorized to be levied
     8  by  or  on behalf of the state pursuant to this section for fiscal years
     9  beginning after two thousand nineteen.
    10    (g) "Tax" or "taxes" means personal  income  taxes  levied  by  or  on
    11  behalf of the state.
    12    3.  (a) Subject to the provisions of subdivision five of this section,
    13  beginning with the fiscal year that begins after two thousand  nineteen,
    14  the  state  shall  not  adopt  a budget that requires a tax levy that is
    15  greater than the tax levy limit for the coming fiscal year.
    16    (b) The state shall calculate the tax levy  limit  applicable  to  the
    17  coming fiscal year which shall be determined as follows:
    18    (i)  Ascertain  the  total amount of taxes levied for the prior fiscal
    19  year.
    20    (ii) Multiply the result by the allowable levy growth factor.
    21    (iii) Add the available carryover, if any.
    22    4. In the event the state's actual tax levy for a  given  fiscal  year
    23  exceeds  the  tax  levy  limit  by more than one percent of the tax levy
    24  limit, the state shall rebate the total amount that the actual tax  levy
    25  exceeds  the  tax  levy  limit  so that each individual filer receives a
    26  rebate of equal amount rounded down to the nearest cent,  provided  that
    27  no individual shall receive a rebate of a greater amount than the income
    28  taxes  paid  during the same fiscal year.  These rebates shall be mailed
    29  in the form of checks payable to the filing individual no later than the
    30  first of September following the end of each fiscal year.
    31    5. In the event the state's actual tax levy for a  given  fiscal  year
    32  exceeds  the  tax  levy limit as established pursuant to this section by
    33  less than one percent of the tax levy limit, the state shall  place  the
    34  excess  amount  of  the levy in reserve in accordance with such require-
    35  ments as the state comptroller may prescribe, and shall use  such  funds
    36  and  any  interest earned thereon to offset the tax levy for the ensuing
    37  fiscal year.
    38    § 2. This act shall take effect immediately.
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