Bill Text: NY A08532 | 2019-2020 | General Assembly | Introduced
Bill Title: Relates to the personal income tax rates for New York residents with New York taxable income over $1,000,000 and directs revenue generated from such tax to be deposited to the credit of the New York City Housing Authority and to the division of housing and community renewal.
Spectrum: Partisan Bill (Democrat 7-0)
Status: (Introduced - Dead) 2020-01-08 - referred to ways and means [A08532 Detail]
Download: New_York-2019-A08532-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 8532 2019-2020 Regular Sessions IN ASSEMBLY August 9, 2019 ___________ Introduced by M. of A. EPSTEIN -- read once and referred to the Commit- tee on Ways and Means AN ACT to amend the tax law, in relation to personal income tax rates and in relation to directing revenue generated from certain taxes to be deposited to the credit of the New York city housing authority and the division of housing and community renewal The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subparagraph (B) of paragraph 1 of subsection (a) of 2 section 601 of the tax law is amended by adding a new clause (ix) to 3 read as follows: 4 (ix) For taxable years beginning after two thousand nineteen, the 5 following rates shall apply: 6 If the New York taxable income is: The tax is: 7 Over $1,000,000 but not over $66,578 plus 8.82% of excess over 8 $5,000,000 $1,000,000 9 Over $5,000,000 but not over $419,378 plus 9.32% of excess over 10 $10,000,000 $5,000,000 11 Over $10,000,000 but not over $885,378 plus 9.82% of excess over 12 $100,000,000 $10,000,000 13 Over $100,000,000 $9,723,378 plus 10.32% of excess 14 over $100,000,000 15 § 2. Subparagraph (B) of paragraph 1 of subsection (b) of section 601 16 of the tax law is amended by adding a new clause (ix) to read as 17 follows: 18 (ix) For taxable years beginning after two thousand nineteen, the 19 following rates shall apply: 20 If the New York taxable income is: The tax is: 21 Over $1,000,000 but not over $67,017 plus 8.82% of excess over EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD09982-04-9A. 8532 2 1 $5,000,000 $1,000,000 2 Over $5,000,000 but not over $419,817 plus 9.32% of excess over 3 $10,000,000 $5,000,000 4 Over $10,000,000 but not over $885,817 plus 9.82% of excess over 5 $100,000,000 $10,000,000 6 Over $100,000,000 $9,723,817 plus 10.32% of excess 7 over $100,000,000 8 § 3. Subparagraph (B) of paragraph 1 of subsection (c) of section 601 9 of the tax law is amended by adding a new clause (ix) to read as 10 follows: 11 (ix) For taxable years beginning after two thousand nineteen, the 12 following rates shall apply: 13 If the New York taxable income is: The tax is: 14 Over $1,000,000 but not over $67,391 plus 8.82% of excess over 15 $5,000,000 $1,000,000 16 Over $5,000,000 but not over $420,191 plus 9.32% of excess over 17 $10,000,000 $5,000,000 18 Over $10,000,000 $886,191 plus 9.82% of excess over 19 $10,000,000 20 Over $100,000,000 $9,724,191 plus 10.32% of excess 21 over $100,000,000 22 § 4. Section 601 of the tax law is amended by adding a new subsection 23 (d-2) to read as follows: 24 (d-2) Alternative tax table benefit recapture. For taxable years 25 beginning after two thousand nineteen for a taxpayer whose New York 26 taxable income is over $1,000,000, there is hereby imposed a supple- 27 mental tax in addition to the tax imposed under subsections (a), (b) and 28 (c) of this section for the purpose of recapturing the benefit of the 29 tax tables contained in such subsections. During these taxable years, 30 any reference in this chapter to subsection (d) of this section shall be 31 read as a reference to this subsection. 32 (1) For resident married individuals filing joint returns and resident 33 surviving spouses, the supplemental tax shall be an amount equal to the 34 sum of the tax table benefits described in subparagraphs (A), (B), (C) 35 and (D) of this paragraph multiplied by their respective fractions in 36 such subparagraphs. 37 (A) The tax table benefit is the difference between (i) the amount of 38 taxable income set forth in the tax table in clause (ii) of subparagraph 39 (B) of paragraph one of subsection (a) of this section not subject to 40 the 8.82 percent rate of tax for the taxable year multiplied by such 41 rate and (ii) the dollar denominated tax for such amount of taxable 42 income set forth in the tax table applicable to the taxable year in 43 clause (ii) of subparagraph (B) of paragraph one of subsection (a) of 44 this section less the sum of tax table benefits in subparagraphs (A), 45 (B) and (C) of paragraph one of subsection (d-1) of this section. The 46 fraction for this subparagraph is computed as follows: the numerator is 47 the lesser of fifty thousand dollars or the excess of New York adjusted 48 gross income for the taxable year over one million dollars and the 49 denominator is fifty thousand dollars. 50 (B) The tax table benefit is the difference between (i) the amount of 51 taxable income set forth in the tax table in clause (ii) of subparagraph 52 (B) of paragraph one of subsection (a) of this section not subject to 53 the 9.32 percent rate of tax for the taxable year multiplied by such 54 rate and (ii) the dollar denominated tax for such amount of taxable 55 income set forth in the tax table applicable to the taxable year inA. 8532 3 1 clause (ii) of subparagraph (B) of paragraph one of subsection (a) of 2 this section less the sum of the tax table benefits in subparagraphs 3 (A), (B) and (C) of paragraph one of subsection (d-1) of this section 4 and such tax table benefit in subparagraph (A) of this paragraph. The 5 fraction for this subparagraph is computed as follows: the numerator is 6 the lesser of fifty thousand dollars or the excess of New York adjusted 7 gross income for the taxable year over five million dollars and the 8 denominator is fifty thousand dollars. Provided, however, this subpara- 9 graph shall not apply to taxpayers who are not subject to the 9.32 10 percent tax rate. 11 (C) The tax table benefit is the difference between (i) the amount of 12 taxable income set forth in the tax table in clause (ii) of subparagraph 13 (B) of paragraph one of subsection (a) of this section not subject to 14 the 9.82 percent rate of tax for the taxable year multiplied by such 15 rate and (ii) the dollar denominated tax for such amount of taxable 16 income set forth in the tax table applicable to the taxable year in 17 clause (ii) of paragraph (B) of paragraph one of subsection (a) of this 18 section less the sum of the tax table benefits in subparagraphs (A), (B) 19 and (C) of paragraph one of subsection (d-1) of this section and such 20 tax table benefits in subparagraphs (A) and (B) of this paragraph. The 21 fraction for this subparagraph is computed as follows: the numerator is 22 the lesser of fifty thousand dollars or the excess of New York adjusted 23 gross income for the taxable year over ten million dollars and the 24 denominator is fifty thousand dollars. Provided, however, this subpara- 25 graph shall not apply to taxpayers who are not subject to the 9.82 26 percent tax rate. 27 (D) The tax table benefit is the difference between (i) the amount of 28 taxable income set forth in the tax table in clause (ii) of subparagraph 29 (B) of paragraph one of subsection (a) of this section not subject to 30 the 10.32 percent rate of tax for the taxable year multiplied by such 31 rate and (ii) the dollar denominated tax for such amount of taxable 32 income set forth in the tax table applicable to the taxable year in 33 clause (ii) of subparagraph (B) of paragraph one of subsection (a) of 34 this section less the sum of the tax table benefits in subparagraphs 35 (A), (B) and (C) of paragraph one of subsection (d-1) of this section 36 and such tax table benefits in subparagraphs (A), (B) and (C) of this 37 paragraph. The fraction for this subparagraph is computed as follows: 38 the numerator is the lesser of fifty thousand dollars or the excess of 39 New York adjusted gross income for the taxable year over one hundred 40 million dollars and the denominator is fifty thousand dollars. 41 (E) Provided, however, the total tax prior to the application of any 42 tax credits shall not exceed the highest rate of tax set forth in the 43 tax tables in subsection (a) of this section multiplied by the taxpay- 44 er's taxable income. 45 (2) For resident heads of households, the supplemental tax shall be an 46 amount equal to the sum of the tax table benefits described in subpara- 47 graphs (A), (B), (C) and (D) of this paragraph multiplied by their 48 respective fractions in such subparagraphs. 49 (A) The tax table benefit is the difference between (i) the amount of 50 taxable income set forth in the tax table in clause (ii) of subparagraph 51 (B) of paragraph one of subsection (b) of this section not subject to 52 the 8.82 percent rate of tax for the taxable year multiplied by such 53 rate and (ii) the dollar denominated tax for such amount of taxable 54 income set forth in the tax table applicable to the taxable year in 55 clause (ii) of subparagraph (B) of paragraph one of subsection (b) of 56 this section less the sum of the tax table benefits in subparagraphs (A)A. 8532 4 1 and (B) of paragraph two of subsection (d-1) of this section. The frac- 2 tion for this subparagraph is computed as follows: the numerator is the 3 lesser of fifty thousand dollars or the excess of New York adjusted 4 gross income for the taxable year over one million dollars and the 5 denominator is fifty thousand dollars. 6 (B) The tax table benefit is the difference between (i) the amount of 7 taxable income set forth in the tax table in clause (ii) of subparagraph 8 (B) of paragraph one of subsection (b) of this section not subject to 9 the 9.32 percent rate of tax for the taxable year multiplied by such 10 rate and (ii) the dollar denominated tax for such amount of taxable 11 income set forth in the tax table applicable to the taxable year in 12 clause (ii) of subparagraph (B) of paragraph one of subsection (b) of 13 this section less the sum of the tax table benefits in subparagraphs (A) 14 and (B) of paragraph two of subsection (d-1) of this section and such 15 tax table benefit in subparagraph (A) of this paragraph. The fraction 16 for this subparagraph is computed as follows: the numerator is the less- 17 er of fifty thousand dollars or the excess of New York adjusted gross 18 income for the taxable year over five million dollars and the denomina- 19 tor is fifty thousand dollars. Provided, however, this subparagraph 20 shall not apply to taxpayers who are not subject to the 9.32 percent tax 21 rate. 22 (C) The tax table benefit is the difference between (i) the amount of 23 taxable income set forth in the tax table in clause (ii) of subparagraph 24 (B) of paragraph one of subsection (b) of this section not subject to 25 the 9.82 percent rate of tax for the taxable year multiplied by such 26 rate and (ii) the dollar denominated tax for such amount of taxable 27 income set forth in the tax table applicable to the taxable year in 28 clause (ii) of subparagraph (B) of paragraph one of subsection (b) of 29 this section less the sum of the tax table benefits in subparagraphs (A) 30 and (B) of paragraph two of subsection (d-1) of this section and such 31 tax table benefits in subparagraphs (A) and (B) of this paragraph. The 32 fraction for this subparagraph is computed as follows: the numerator is 33 the lesser of fifty thousand dollars or the excess of New York adjusted 34 gross income for the taxable year over ten million dollars and the 35 denominator is fifty thousand dollars. 36 (D) The tax table benefit is the difference between (i) the amount of 37 taxable income set forth in the tax table in clause (ii) of subparagraph 38 (B) of paragraph one of subsection (b) of this section not subject to 39 the 10.32 percent rate of tax for the taxable year multiplied by such 40 rate and (ii) the dollar denominated tax for such amount of taxable 41 income set forth in the tax table applicable to the taxable year in 42 clause (ii) of subparagraph (B) of paragraph one of subsection (b) of 43 this section less the sum of the tax table benefits in subparagraphs (A) 44 and (B) of paragraph two of subsection (d-1) of this section and such 45 tax table benefits in subparagraphs (A), (B) and (C) of this paragraph. 46 The fraction for this subparagraph is computed as follows: the numerator 47 is the lesser of fifty thousand dollars or the excess of New York 48 adjusted gross income for the taxable year over one hundred million 49 dollars and the denominator is fifty thousand dollars. 50 (E) Provided, however, the total tax prior to the application of any 51 tax credits shall not exceed the highest rate of tax set forth in the 52 tax tables in subsection (b) of this section multiplied by the taxpay- 53 er's taxable income. 54 (3) For resident unmarried individuals, resident married individuals 55 filing separate returns and resident estates and trusts, the supple- 56 mental tax shall be an amount equal to the sum of the tax table benefitsA. 8532 5 1 described in subparagraphs (A), (B), (C) and (D) of this paragraph 2 multiplied by their respective fractions in such subparagraphs. 3 (A) The tax table benefit is the difference between (i) the amount of 4 taxable income set forth in the tax table in clause (ii) of subparagraph 5 (B) of paragraph one of subsection (c) of this section not subject to 6 the 8.82 percent rate of tax for the taxable year multiplied by such 7 rate and (ii) the dollar denominated tax for such amount of taxable 8 income set forth in the tax table applicable to the taxable year in 9 clause (ii) of subparagraph (B) of paragraph one of subsection (c) of 10 this section less the sum of tax table benefits in subparagraphs (A) and 11 (B) of paragraph three of subsection (d-1) of this section. The frac- 12 tion is computed as follows: the numerator is the lesser of fifty thou- 13 sand dollars or the excess of New York adjusted gross income for the 14 taxable year over one million dollars and the denominator is fifty thou- 15 sand dollars. 16 (B) The tax table benefit is the difference between (i) the amount of 17 taxable income set forth in the tax table in clause (ii) of subparagraph 18 (B) of paragraph one of subsection (c) of this section not subject to 19 the 9.32 percent rate of tax for the taxable year multiplied by such 20 rate and (ii) the dollar denominated tax for such amount of taxable 21 income set forth in the tax table applicable to the taxable year in 22 clause (ii) of subparagraph (B) of paragraph one of subsection (c) of 23 this section less the sum of the tax table benefits in subparagraphs (A) 24 and (B) of paragraph three of subsection (d-1) of this section and such 25 tax table benefit in subparagraph (A) of this paragraph. The fraction 26 for this subparagraph is computed as follows: the numerator is the less- 27 er of fifty thousand dollars or the excess of New York adjusted gross 28 income for the taxable year over five million dollars and the denomina- 29 tor is fifty thousand dollars. Provided, however, this subparagraph 30 shall not apply to taxpayers who are not subject to the 9.32 percent tax 31 rate. 32 (C) The tax table benefit is the difference between (i) the amount of 33 taxable income set forth in the tax table in clause (ii) of subparagraph 34 (B) of paragraph one of subsection (c) of this section not subject to 35 the 9.82 percent rate of tax for the taxable year multiplied by such 36 rate and (ii) the dollar denominated tax for such amount of taxable 37 income set forth in the tax table applicable to the taxable year in 38 clause (ii) of subparagraph (B) of paragraph one of subsection (c) of 39 this section less the sum of the tax table benefits in subparagraphs (A) 40 and (B) of paragraph three of subsection (d-1) of this section and such 41 tax table benefits in subparagraphs (A) and (B) of this paragraph. The 42 fraction for this subparagraph is computed as follows: the numerator is 43 the lesser of fifty thousand dollars or the excess of New York adjusted 44 gross income for the taxable year over ten million dollars and the 45 denominator is fifty thousand dollars. 46 (D) The tax table benefit is the difference between (i) the amount of 47 taxable income set forth in the tax table in clause (ii) of subparagraph 48 (B) of paragraph one of subsection (c) of this section not subject to 49 the 10.32 percent rate of tax for the taxable year multiplied by such 50 rate and (ii) the dollar denominated tax for such amount of taxable 51 income set forth in the tax table applicable to the taxable year in 52 clause (ii) of subparagraph (B) of paragraph one of subsection (c) of 53 this section less the sum of the tax table benefits in subparagraphs (A) 54 and (B) of paragraph three of subsection (d-1) of this section and such 55 tax table benefits in subparagraphs (A), (B) and (C) of this paragraph. 56 The fraction for this subparagraph is computed as follows: the numeratorA. 8532 6 1 is the lesser of fifty thousand dollars or the excess of New York 2 adjusted gross income for the taxable year over one hundred million 3 dollars and the denominator is fifty thousand dollars. 4 (E) Provided, however, the total tax prior to the application of any 5 tax credits shall not exceed the highest rate of tax set forth in the 6 tax tables in subsection (c) of this section multiplied by the taxpay- 7 er's taxable income. 8 § 5. Subsection (f) of section 614 of the tax law, as amended by 9 section 11 of part FF of chapter 59 of the laws of 2013, is amended to 10 read as follows: 11 (f) Adjusted standard deduction. For taxable years beginning after two 12 thousand [seventeen] nineteen, the standard deductions set forth in this 13 section shall be the amounts set forth in this section adjusted by the 14 cost of living adjustment prescribed in section six hundred one-a of 15 this part for tax years two thousand thirteen [through two thousand16seventeen] and thereafter. 17 § 6. Section 171-a of the tax law, as separately amended by chapters 18 481 and 484 of the laws of 1981, is amended by adding a new subdivision 19 3 to read as follows: 20 3. Notwithstanding subdivision one of this section or any other 21 provision of law to the contrary, the taxes imposed pursuant to clause 22 (ix) of subparagraph (B) of paragraph one of subsection (a), clause (ix) 23 of subparagraph (B) of paragraph one of subsection (b), and clause (ix) 24 of subparagraph (B) of paragraph one of subsection (c) of section six 25 hundred one of this chapter, reduced by an amount for administrative 26 costs, shall be deposited, as such taxes are received, as follows: (a) 27 eighty percent of the revenue shall be deposited to the credit of the 28 New York city housing authority; and (b) twenty percent of the revenue 29 shall be deposited to the credit of the division of housing and communi- 30 ty renewal for the purposes of construction, improvement, and preserva- 31 tion of public housing authorities outside the city of New York. The 32 amount for administrative costs shall be determined by the commissioner 33 to represent reasonable costs of the department of taxation and finance 34 in administering, collecting, determining and distributing such taxes. 35 Of the total revenue collected or received under such sections of this 36 chapter, the comptroller shall retain in his hands such amount as the 37 commissioner may determine to be necessary for refunds or reimbursements 38 under such clauses of such section of this chapter out of which amount 39 the comptroller shall pay any refunds or reimbursements to which taxpay- 40 ers shall be entitled under provisions of such sections. The commis- 41 sioner and the comptroller shall maintain a system of accounts showing 42 the amount of revenue collected or received from each of the taxes 43 imposed by such sections. 44 § 7. This act shall take effect immediately and shall apply to taxable 45 years beginning on or after January 1, 2020.
