Bill Text: NY A05859 | 2009-2010 | General Assembly | Introduced
Bill Title: An act to amend the tax law, in relation to the extension of the top personal income tax rate for incomes in excess of five hundred thousand dollars a year or more and the dedication of such revenue to class size reduction in a city having a population of one million or more
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2010-01-06 - referred to ways and means [A05859 Detail]
Download: New_York-2009-A05859-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
5859
2009-2010 Regular Sessions
I N A S S E M B L Y
February 20, 2009
___________
Introduced by M. of A. ESPAILLAT -- read once and referred to the
Committee on Ways and Means
AN ACT to amend the tax law, in relation to the extension of the top
personal income tax rate for incomes in excess of five hundred thou-
sand dollars a year or more and the dedication of such revenue to
class size reduction in a city having a population of one million or
more
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. The opening paragraph of section 1304-D of the tax law, as
2 added by section 1 of part B of chapter 63 of the laws of 2003, is
3 amended to read as follows:
4 Notwithstanding any provision of law to the contrary, in lieu of the
5 tax tables provided in section thirteen hundred four of this article,
6 any city imposing the taxes authorized by section thirteen hundred one
7 of this article is hereby authorized and empowered to adopt and amend
8 local laws to impose the rates set forth in the tax tables provided in
9 this section. Provided, however, if any such city adopts a local law to
10 impose tax at the rates set forth in this section, the authorization
11 granted to such city to impose an additional tax by section thirteen
12 hundred four-B of this article shall be suspended while such local law
13 is in effect; AND PROVIDED, FURTHER, HOWEVER THAT ANY CITY IMPOSING THE
14 RATES SET FORTH IN THE TAX TABLES PROVIDED IN THIS SECTION FOR TAXABLE
15 YEARS BEGINNING AFTER TWO THOUSAND NINE BUT BEFORE TWO THOUSAND THIRTEEN
16 SHALL DO SO ONLY IN ACCORDANCE WITH THE PROVISIONS OF SUBSECTION (D) OF
17 THIS SECTION.
18 S 2. Subparagraphs (A), (B) and (C) of paragraph 1 of subsection (a)
19 of section 1304-D of the tax law are relettered subparagraphs (B), (C)
20 and (D) and a new subparagraph (A) is added to read as follows:
21 (A) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND NINE BUT BEFORE TWO
22 THOUSAND THIRTEEN:
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09086-01-9
A. 5859 2
1 IF THE CITY TAXABLE INCOME IS: THE TAX IS:
2 NOT OVER $21,600 2.907% OF THE CITY TAXABLE INCOME
3 OVER $21,600 BUT NOT OVER $45,000 $628 PLUS 3.534% OF EXCESS
4 OVER $21,600
5 OVER $45,000 BUT NOT OVER $90,000 $1,455 PLUS 3.591% OF EXCESS
6 OVER $45,000
7 OVER $90,000 BUT NOT OVER $500,000 $3,071 PLUS 3.648% OF EXCESS
8 OVER $90,000
9 OVER $500,000 $18,028 PLUS 4.45% OF EXCESS
10 OVER $500,000
11 S 3. Subparagraphs (A), (B) and (C) of paragraph 2 of subsection (a)
12 of section 1304-D of the tax law are relettered subparagraphs (B), (C)
13 and (D) and a new subparagraph (A) is added to read as follows:
14 (A) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND NINE BUT BEFORE TWO
15 THOUSAND THIRTEEN:
16 IF THE CITY TAXABLE INCOME IS: THE TAX IS:
17 NOT OVER $14,400 2.907% OF THE CITY TAXABLE
18 INCOME
19 OVER $14,400 BUT NOT OVER $30,000 $419 PLUS 3.534% OF EXCESS
20 OVER $14,400
21 OVER $30,000 BUT NOT OVER $60,000 $970 PLUS 3.591% OF EXCESS
22 OVER $30,000
23 OVER $60,000 BUT NOT OVER $500,000 $2,047 PLUS 3.648% OF EXCESS
24 OVER $60,000
25 OVER $500,000 $18,098 PLUS 4.45% OF EXCESS
26 OVER $500,000
27 S 4. Subparagraphs (A), (B) and (C) of paragraph 3 of subsection (a)
28 of subsection 1304-D of the tax law are relettered subparagraphs (B),
29 (C) and (D) and a new subparagraph (A) is added to read as follows:
30 (A) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND NINE BUT BEFORE TWO
31 THOUSAND THIRTEEN:
32 IF THE CITY TAXABLE INCOME IS: THE TAX IS:
33 NOT OVER $12,000 2.907% OF THE CITY TAXABLE
34 INCOME
35 OVER $12,000 BUT NOT OVER $25,000 $349 PLUS 3.534% OF EXCESS
36 OVER $12,000
37 OVER $25,000 BUT NOT OVER $50,000 $808 PLUS 3.591% OF EXCESS
38 OVER $25,000
39 OVER $50,000 BUT NOT OVER $500,000 $1,706 PLUS 3.648% OF EXCESS
40 OVER $50,000
41 OVER $500,000 $18,403 PLUS 4.45% OF EXCESS
42 OVER $500,000
43 S 5. Section 1304-D of the tax law is amended by adding two new
44 subsections (c) and (d) to read as follows:
45 (C) TAX TABLE BENEFIT RECAPTURE. (1) FOR TAXABLE YEARS BEGINNING AFTER
46 TWO THOUSAND NINE BUT BEFORE TWO THOUSAND THIRTEEN, THERE IS HEREBY
47 IMPOSED A SUPPLEMENTAL TAX, IN ADDITION TO THE TAX IMPOSED UNDER
48 SUBSECTION (A) OF THIS SECTION, FOR THE PURPOSE OF RECAPTURING THE BENE-
49 FIT OF THE TAX TABLES CONTAINED IN SUCH SUBSECTION. THE SUPPLEMENTAL TAX
50 SHALL BE AN AMOUNT EQUAL TO THE TAX TABLE BENEFIT CALCULATED PURSUANT TO
51 PARAGRAPH TWO OF THIS SUBSECTION MULTIPLIED BY THE FRACTION IN PARAGRAPH
A. 5859 3
1 THREE OF THIS SUBSECTION, PROVIDED, HOWEVER, THAT THIS SUBSECTION SHALL
2 NOT APPLY TO TAXPAYERS WHO ARE NOT SUBJECT TO THE HIGHEST RATE OF TAX.
3 (2) FOR PURPOSES OF THIS SUBSECTION, THE TAX TABLE BENEFIT FOR RESI-
4 DENT MARRIED INDIVIDUALS FILING JOINT RETURNS, SURVIVING SPOUSES, RESI-
5 DENT HEADS OF HOUSEHOLDS, RESIDENT UNMARRIED INDIVIDUALS, RESIDENT
6 MARRIED INDIVIDUALS FILING SEPARATE RETURNS AND RESIDENT ESTATES AND
7 TRUSTS IS THE DIFFERENCE BETWEEN (A) THE AMOUNT OF TAXABLE INCOME SET
8 FORTH IN THE TAX TABLE IN SUBSECTION (A) OF THIS SECTION NOT SUBJECT TO
9 THE HIGHEST RATE OF TAX FOR THE TAXABLE YEAR MULTIPLIED BY SUCH RATE AND
10 (B) THE HIGHEST DOLLAR DENOMINATED TAX FOR SUCH AMOUNT OF TAXABLE INCOME
11 SET FORTH IN THE TAX TABLE APPLICABLE TO THE TAXABLE YEAR IN SUBSECTION
12 (A) OF THIS SECTION.
13 (3) THE FRACTION IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE LESSER
14 OF FIFTY THOUSAND DOLLARS OR THE EXCESS OF NEW YORK ADJUSTED GROSS
15 INCOME FOR THE TAXABLE YEAR OVER FIVE HUNDRED FIFTY THOUSAND DOLLARS AND
16 THE DENOMINATOR IS FIFTY THOUSAND DOLLARS.
17 (D) DEDICATION OF ADDITIONAL REVENUE FROM HIGHEST RATE OF TAX TO CLASS
18 SIZE REDUCTION. (1) ANY CITY IMPOSING THE TAX AUTHORIZED BY SECTION
19 THIRTEEN HUNDRED ONE OF THIS ARTICLE AT THE RATES PROVIDED FOR IN THIS
20 SECTION FOR TAX YEARS BEGINNING AFTER TWO THOUSAND NINE SHALL DEDICATE
21 THE ADDITIONAL REVENUE FROM THE HIGHEST RATE OF TAX TO EDUCATION AS
22 PROVIDED IN THIS SUBSECTION.
23 (2) FOR PURPOSES OF THIS SUBSECTION THE FOLLOWING TERMS SHALL HAVE THE
24 FOLLOWING MEANINGS:
25 (A) "ADDITIONAL REVENUE FROM THE HIGHEST RATE OF TAX" SHALL MEAN THE
26 AGGREGATE REVENUE COLLECTED FROM ALL TAXPAYERS SUBJECT TO THE HIGHEST
27 RATE OF TAX IN THIS SUBSECTION, LESS THE AGGREGATE REVENUE WHICH WOULD
28 HAVE BEEN COLLECTED FROM ALL SUCH TAXPAYERS IF THE SECOND HIGHEST RATE
29 OF TAX WERE THE HIGHEST RATE.
30 (B) "ADDITIONAL EDUCATION CAPITAL PROJECTS" SHALL MEAN CAPITAL
31 PROJECTS FOR THE PUBLIC SCHOOLS OF A CITY IMPOSING THE TAX AT THE RATES
32 SET FORTH IN THIS SECTION PAID FOR BY FUNDING FROM THE EXPENSE BUDGET OF
33 SUCH CITY AND NOT CONTAINED IN A FIVE-YEAR EDUCATIONAL FACILITIES CAPI-
34 TAL PLAN AS OF THE EFFECTIVE DATE OF THIS SUBSECTION, AS SUCH PROJECTS
35 ARE SET FORTH IN A MEMORANDUM OF UNDERSTANDING BETWEEN THE MAYOR OR
36 OTHER CHIEF EXECUTIVE OFFICER OF SUCH CITY, THE SPEAKER OR OTHER SIMILAR
37 OFFICER OF THE LOCAL LEGISLATIVE BODY OF SUCH CITY AND THE SCHOOL'S
38 CHANCELLOR OF SUCH CITY AND ANY MODIFICATIONS THERETO.
39 (C) "CLASSROOM TEACHERS" SHALL MEAN TEACHERS WHO PROVIDE DIRECT
40 INSTRUCTIONAL SERVICES IN THE PUBLIC SCHOOL SYSTEM ON A FULL-TIME,
41 PART-TIME OR PER DIEM BASIS.
42 (D) "PERCENTAGE OF NON-ACHIEVEMENT" FOR A FISCAL YEAR SHALL BE EQUAL
43 TO A FRACTION, EXPRESSED AS A PERCENTAGE (BUT NOT TO EXCEED ONE HUNDRED
44 PERCENT OR BE LESS THAN EIGHTY PERCENT) THE DENOMINATOR OF WHICH IS THE
45 TARGETED CLASSROOM TEACHER STAFFING LEVEL FOR SUCH FISCAL YEAR AND THE
46 NUMERATOR OF WHICH SHALL BE THE DIFFERENCE BETWEEN SUCH TARGETED CLASS-
47 ROOM TEACHER STAFFING LEVEL AND THE ACTUAL CLASSROOM TEACHER STAFFING
48 LEVEL FOR SUCH FISCAL YEAR.
49 (E) "TARGETED CLASSROOM TEACHER STAFFING LEVEL" SHALL MEAN THE FOLLOW-
50 ING IN THE FOLLOWING FISCAL YEARS: SEVENTY-NINE THOUSAND EIGHT HUNDRED
51 CLASSROOM TEACHERS IN THE FISCAL YEAR COMMENCING IN THE CALENDAR YEAR
52 TWO THOUSAND NINE; EIGHTY THOUSAND SIX HUNDRED CLASSROOM TEACHERS IN THE
53 FISCAL YEAR COMMENCING IN CALENDAR YEAR TWO THOUSAND TEN; AND EIGHTY-ONE
54 THOUSAND TWO HUNDRED CLASSROOM TEACHERS IN THE FISCAL YEAR COMMENCING IN
55 THE CALENDAR YEAR TWO THOUSAND TWELVE.
A. 5859 4
1 (3) NOTWITHSTANDING ANYTHING IN THIS ARTICLE TO THE CONTRARY, THE
2 ADDITIONAL REVENUE FROM THE HIGHEST RATE OF TAX PURSUANT TO THE AUTHORI-
3 TY OF THIS SECTION WHICH THE COMPTROLLER IS REQUIRED TO PAY TO THE CHIEF
4 FISCAL OFFICER OF THE CITY IMPOSING SUCH TAX AT THE RATES PROVIDED FOR
5 IN THIS SECTION FOR PAYMENT INTO THE TREASURY OF SUCH CITY, SHALL BE
6 CREDITED TO THE GENERAL FUND OF SUCH CITY TO BE APPLIED EXCLUSIVELY TO
7 OR IN AID OR SUPPORT OF SUCH CITY'S DEPARTMENT OF EDUCATION FOR THE
8 PURPOSE OF (A) REDUCING CLASS SIZE BY ADDING ADDITIONAL CLASSROOM TEACH-
9 ERS AND (B) COMPLETING ADDITIONAL EDUCATION CAPITAL PROJECTS, IN ACCORD-
10 ANCE WITH THIS PARAGRAPH AND PARAGRAPH FOUR OF THIS SUBSECTION. SUCH
11 CITY SHALL FIRST MAKE ITS BEST EFFORTS TO ACHIEVE THE TARGETED CLASSROOM
12 TEACHER STAFFING LEVELS. ANY ADDITIONAL REVENUE FROM THE HIGHEST RATE OF
13 TAX, IN EXCESS OF THAT NECESSARY TO REACH THE TARGETED CLASSROOM TEACHER
14 STAFFING LEVELS CONTAINED IN THIS SUBSECTION, OR REVENUE REMAINING
15 BECAUSE OF THE INABILITY OF SUCH CITY TO MEET SUCH TARGETED CLASSROOM
16 TEACHER STAFFING LEVELS SHALL BE APPLIED TO ADDITIONAL EDUCATION CAPITAL
17 PROJECTS.
18 (4) NOTWITHSTANDING ANYTHING IN THIS SECTION TO THE CONTRARY, WITH
19 RESPECT TO TAXABLE YEARS BEGINNING IN TWO THOUSAND ELEVEN AND TWO THOU-
20 SAND TWELVE, THE MAYOR OR OTHER CHIEF EXECUTIVE OFFICER OF A CITY IN
21 WHICH A TAX IS IMPOSED AT THE RATES PROVIDED IN THIS SECTION SHALL, BY
22 AUGUST FIRST OF TWO THOUSAND TEN AND TWO THOUSAND ELEVEN, TRANSMIT TO
23 THE COMMISSIONER A CERTIFICATION SETTING FORTH THE PERCENTAGE OF NON-AC-
24 HIEVEMENT REGARDING THE TARGETED CLASSROOM TEACHER STAFFING LEVEL WITH
25 RESPECT TO THE LAST FISCAL YEAR OF SUCH CITY ENDING ON THE IMMEDIATELY
26 PRECEDING JUNE THIRTIETH. IF SUCH PERCENTAGE OF NON-ACHIEVEMENT EXCEEDS
27 TWO AND ONE-HALF PERCENT WITH RESPECT TO THE FISCAL YEAR OF SUCH CITY
28 ENDING NO LATER THAN JUNE THIRTIETH, TWO THOUSAND ELEVEN, THEN THE HIGH-
29 EST RATE OF TAX AUTHORIZED BY SUBPARAGRAPH (A) OF PARAGRAPH ONE, SUBPAR-
30 AGRAPH (A) OF PARAGRAPH TWO AND SUBPARAGRAPH (A) OF PARAGRAPH THREE OF
31 SUBSECTION (A) OF THIS SECTION FOR THE TAXABLE YEARS BEGINNING IN THE
32 CALENDAR YEAR BEGINNING ON JANUARY FIRST, TWO THOUSAND TWELVE SHALL BE
33 THE PRODUCTS OF EACH SUCH HIGHEST RATE AND A PERCENTAGE EQUAL TO THE
34 DIFFERENCE BETWEEN ONE HUNDRED PERCENT AND THE PORTION OF THE PERCENTAGE
35 OF NON-ACHIEVEMENT THAT IS IN EXCESS OF TWO PERCENT, SUCH PRODUCTS
36 COMPUTED TO THE NEAREST HUNDREDTH OF A PERCENT.
37 (5) IF THE HIGHEST RATES OF TAX TO BE IMPOSED PURSUANT TO THIS SECTION
38 FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND NINE ARE MODIFIED PURSU-
39 ANT TO PARAGRAPH THREE OR FOUR OF THIS SUBSECTION, THE COMMISSIONER
40 SHALL PROMULGATE REGULATIONS STATING THE MODIFIED RATES.
41 S 6. This act shall take effect immediately.
