Bill Text: NY A10450 | 2019-2020 | General Assembly | Introduced
Bill Title: Relates to extending the top state income tax rate for those that make $5,000,000 or more and with such additional funds provides for additional school aid for the general support of public schools and for additional operating support for SUNY and CUNY.
Spectrum: Partisan Bill (Democrat 8-0)
Status: (Introduced - Dead) 2020-05-18 - referred to ways and means [A10450 Detail]
Download: New_York-2019-A10450-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 10450 IN ASSEMBLY May 18, 2020 ___________ Introduced by COMMITTEE ON RULES -- (at request of M. of A. Glick) -- read once and referred to the Committee on Ways and Means AN ACT to amend the tax law, in relation to extending the top state income tax rate; to amend the state finance law, in relation to providing additional funding for the general support of public schools; and to amend the state finance law, in relation to creating the supplemental public higher education fund The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Clauses (iii) and (iv) of subparagraph (B) of paragraph 1 2 of subsection (a) of section 601 of the tax law, as amended by section 1 3 of part P of chapter 59 of the laws of 2019, are amended to read as 4 follows: 5 (iii) For taxable years beginning in two thousand twenty the following 6 rates shall apply: 7 If the New York taxable income is: The tax is: 8 Not over $17,150 4% of the New York taxable income 9 Over $17,150 but not over $23,600 $686 plus 4.5% of excess over 10 $17,150 11 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over 12 $23,600 13 Over $27,900 but not over $43,000 $1,202 plus 5.9% of excess over 14 $27,900 15 Over $43,000 but not over $161,550 $2,093 plus 6.09% of excess over 16 $43,000 17 Over $161,550 but not over $323,200 $9,313 plus 6.41% of excess over 18 $161,550 19 Over $323,200 but not over $19,674 plus 6.85% of excess 20 $2,155,350 $323,200 over 21 Over $2,155,350 but not over $145,177 plus 8.82% of excess over 22 $5,000,000 $2,155,350 23 Over $5,000,000 $396,076 plus 10.9% of excess over 24 $5,000,000 EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD16290-05-0A. 10450 2 1 (iv) For taxable years beginning in two thousand twenty-one the 2 following rates shall apply: 3 If the New York taxable income is: The tax is: 4 Not over $17,150 4% of the New York taxable income 5 Over $17,150 but not over $23,600 $686 plus 4.5% of excess over 6 $17,150 7 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over 8 $23,600 9 Over $27,900 but not over $43,000 $1,202 plus 5.9% of excess over 10 $27,900 11 Over $43,000 but not over $161,550 $2,093 plus 5.97% of excess over 12 $43,000 13 Over $161,550 but not over $323,200 $9,170 plus 6.33% of excess over 14 $161,550 15 Over $323,200 but not over $19,403 plus 6.85% of excess 16 $2,155,350 over $323,200 17 Over $2,155,350 but not over $144,905 plus 8.82% of excess over 18 $5,000,000 $2,155,350 19 Over $5,000,000 $395,803 plus 10.9% of excess over 20 $5,000,000 21 § 2. Clauses (iii) and (iv) of subparagraph (B) of paragraph 1 of 22 subsection (b) of section 601 of the tax law, as amended by section 2 of 23 part P of chapter 59 of the laws of 2019, are amended to read as 24 follows: 25 (iii) For taxable years beginning in two thousand twenty the following 26 rates shall apply: 27 If the New York taxable income is: The tax is: 28 Not over $12,800 4% of the New York taxable income 29 Over $12,800 but not over $17,650 $512 plus 4.5% of excess over $12,800 30 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over 31 $17,650 32 Over $20,900 but not over $32,200 $901 plus 5.9% of excess over $20,900 33 Over $32,200 but not over $107,650 $1,568 plus 6.09% of excess over 34 $32,200 35 Over $107,650 but not over $269,300 $6,162 plus 6.41% of excess over 36 $107,650 37 Over $269,300 but not over $16,524 plus 6.85% of 38 $1,616,450 excess over $269,300 39 Over $1,616,450 but not over $108,804 plus 8.82% of excess over 40 $5,000,000 $1,616,450 41 Over $5,000,000 $407,233 plus 10.9% of excess over 42 $5,000,000 43 (iv) For taxable years beginning in two thousand twenty-one the 44 following rates shall apply: 45 If the New York taxable income is: The tax is: 46 Not over $12,800 4% of the New York taxable income 47 Over $12,800 but not over $17,650 $512 plus 4.5% of excess over 48 $12,800 49 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over 50 $17,650 51 Over $20,900 but not over $32,200 $901 plus 5.9% of excess over 52 $20,900 53 Over $32,200 but not over $107,650 $1,568 plus 5.97% of excess over 54 $32,200 55 Over $107,650 but not over $269,300 $6,072 plus 6.33% of excess overA. 10450 3 1 $107,650 2 Over $269,300 but not over $16,304 plus 6.85% of 3 $1,616,450 excess over $269,300 4 Over $1,616,450 but not over $108,584 plus 8.82% of excess over 5 $5,000,000 $1,616,450 6 Over $5,000,000 $407,013 plus 10.9% of excess over 7 $5,000,000 8 § 3. Clauses (iii) and (iv) of subparagraph (B) of paragraph 1 of 9 subsection (c) of section 601 of the tax law, as amended by section 3 of 10 part P of chapter 59 of the laws of 2019, are amended to read as 11 follows: 12 (iii) For taxable years beginning in two thousand twenty the following 13 rates shall apply: 14 If the New York taxable income is: The tax is: 15 Not over $8,500 4% of the New York taxable income 16 Over $8,500 but not over $11,700 $340 plus 4.5% of excess over 17 $8,500 18 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over 19 $11,700 20 Over $13,900 but not over $21,400 $600 plus 5.9% of excess over 21 $13,900 22 Over $21,400 but not over $80,650 $1,042 plus 6.09% of excess over 23 $21,400 24 Over $80,650 but not over $215,400 $4,650 plus 6.41% of excess over 25 $80,650 26 Over $215,400 but not over $13,288 plus 6.85% of excess 27 $1,077,550 over $215,400 28 Over $1,077,550 but not over $72,345 plus 8.82% of excess over 29 $5,000,000 $1,077,550 30 Over $5,000,000 $418,305 plus 10.9% of excess over 31 $5,000,000 32 (iv) For taxable years beginning in two thousand twenty-one the 33 following rates shall apply: 34 If the New York taxable income is: The tax is: 35 Not over $8,500 4% of the New York taxable income 36 Over $8,500 but not over $11,700 $340 plus 4.5% of excess over 37 $8,500 38 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over 39 $11,700 40 Over $13,900 but not over $21,400 $600 plus 5.9% of excess over 41 $13,900 42 Over $21,400 but not over $80,650 $1,042 plus 5.97% of excess over 43 $21,400 44 Over $80,650 but not over $215,400 $4,579 plus 6.33% of excess over 45 $80,650 46 Over $215,400 but not over $13,109 plus 6.85% of excess 47 $1,077,550 over $215,400 48 Over $1,077,550 but not over $72,166 plus 8.82% of excess over 49 $5,000,000 $1,077,550 50 Over $5,000,000 $418,126 plus 10.9% of excess over 51 $5,000,000 52 § 4. Section 171-a of the tax law is amended by adding a new subdivi- 53 sion 3 to read as follows: 54 3. Notwithstanding subdivision one of this section or any other 55 provision of law to the contrary, eighty-five percent of any revenue 56 derived from an increase in the taxes imposed on income over fiveA. 10450 4 1 million dollars pursuant to section six hundred one of this chapter 2 attributable to the difference in the rate of such taxes for taxable 3 year two thousand twenty and the rate of such taxes for taxable year two 4 thousand nineteen and the difference in the rate of such taxes for taxa- 5 ble year two thousand twenty-one and the rate of such taxes for taxable 6 year two thousand nineteen shall be deposited in the state lottery fund, 7 created pursuant to section ninety-two-c of the state finance law, as 8 such taxes are received. The remaining fifteen percent of such derived 9 revenue shall be deposited in the supplemental public higher education 10 fund, created pursuant to section seventy-eight-c of the state finance 11 law. The amount for administrative costs shall be determined by the 12 commissioner to represent reasonable costs of the department in adminis- 13 tering, collecting, determining and distributing such taxes. Of the 14 total revenue collected or received under such sections of this chapter, 15 the comptroller shall retain in his or her hands such amount as the 16 commissioner may determine to be necessary for refunds or reimbursements 17 under such sections of this chapter out of which amount the comptroller 18 shall pay any refunds or reimbursements to which taxpayers shall be 19 entitled under provisions of such sections. The commissioner and the 20 comptroller shall maintain a system of accounts showing the amount of 21 revenue collected or received from each of the taxes imposed by such 22 sections. 23 § 5. Section 601 of the tax law is amended by adding a new subsection 24 (d-2) to read as follows: 25 (d-2) Alternative tax table benefit recapture. For taxable years two 26 thousand twenty and two thousand twenty-one for a taxpayer whose New 27 York taxable income is over $5,000,000, there is hereby imposed a 28 supplemental tax in addition to the tax imposed under subsections (a), 29 (b), (c) and (d-1) of this section for the purpose of recapturing the 30 benefit of the tax tables contained in such subsections. During these 31 taxable years, any reference in this chapter to subsection (d) of this 32 section shall be read as a reference to this subsection. 33 (1) For resident married individuals filing joint returns and resident 34 surviving spouses, the supplemental tax shall be an amount equal to the 35 sum of the tax table benefit in subparagraph (A) of this paragraph 36 multiplied by the respective fraction in such subparagraph. 37 (A) The tax table benefit is the difference between (i) the amount of 38 taxable income set forth in the tax table in paragraph one of subsection 39 (a) of this section not subject to the 10.9 percent rate of tax for the 40 taxable year multiplied by such rate and (ii) the dollar denominated tax 41 for such amount of taxable income set forth in the tax table applicable 42 to the taxable year in paragraph one of subsection (a) of this section 43 less the sum of the tax table benefits in subparagraphs (A), (B) and (C) 44 of paragraph one of subsection (d-1) of this section. The fraction for 45 this subparagraph is computed as follows: the numerator is the lesser of 46 fifty thousand dollars or the excess of New York adjusted gross income 47 for the taxable year over five million dollars and the denominator is 48 fifty thousand dollars. Provided, however, this subparagraph shall not 49 apply to taxpayers who are not subject to the 10.9 percent tax rate. 50 (B) 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 (a) of this section multiplied by the taxpay- 53 er's taxable income. 54 (2) For resident heads of households, the supplemental tax shall be an 55 amount equal to the sum of the tax table benefit described in subpara-A. 10450 5 1 graph (A) of this paragraph multiplied by the respective fraction in 2 such subparagraph. 3 (A) The tax table benefit is the difference between (i) the amount of 4 taxable income set forth in the tax table in paragraph one of subsection 5 (b) of this section not subject to the 10.9 percent rate of tax for the 6 taxable year multiplied by such rate and (ii) the dollar denominated tax 7 for such amount of taxable income set forth in the tax table applicable 8 to the taxable year in paragraph one of subsection (b) of this section 9 less the sum of the tax table benefits in subparagraphs (A) and (B) of 10 paragraph two of subsection (d-1) of this section. The fraction for this 11 subparagraph is computed as follows: the numerator is the lesser of 12 fifty thousand dollars or the excess of New York adjusted gross income 13 for the taxable year over five million dollars and the denominator is 14 fifty thousand dollars. Provided, however, this subparagraph shall not 15 apply to taxpayers who are not subject to the 10.9 percent tax rate. 16 (B) Provided, however, the total tax prior to the application of any 17 tax credits shall not exceed the highest rate of tax set forth in the 18 tax tables in subsection (b) of this section multiplied by the taxpay- 19 er's taxable income. 20 (3) For resident unmarried individuals, resident married individuals 21 filing separate returns and resident estates and trusts, the supple- 22 mental tax shall be an amount equal to the sum of the tax table benefits 23 described in subparagraph (A) of this paragraph multiplied by the 24 respective fractions in such subparagraph. 25 (A) The tax table benefit is the difference between (i) the amount of 26 taxable income set forth in the tax table in paragraph one of subsection 27 (c) of this section not subject to the 10.9 percent rate of tax for the 28 taxable year multiplied by such rate and (ii) the dollar denominated tax 29 for such amount of taxable income set forth in the tax table applicable 30 to the taxable year in paragraph one of subsection (c) of this section 31 less the sum of the tax table benefits in subparagraphs (A) and (B) of 32 paragraph three of subsection (d-1) of this section. The fraction for 33 this subparagraph is computed as follows: the numerator is the lesser of 34 fifty thousand dollars or the excess of New York adjusted gross income 35 for the taxable year over five million dollars and the denominator is 36 fifty thousand dollars. Provided, however, this subparagraph shall not 37 apply to taxpayers who are not subject to the 10.9 percent tax rate. 38 (B) Provided, however, the total tax prior to the application of any 39 tax credits shall not exceed the highest rate of tax set forth in the 40 tax tables in subsection (c) of this section multiplied by the taxpay- 41 er's taxable income. 42 § 6. Section 92-c of the state finance law is amended by adding a new 43 subdivision 3-a to read as follows: 44 3-a. Moneys in such fund deposited pursuant to the provisions of 45 subdivision three of section one hundred seventy-one-a of the tax law 46 shall be appropriated or transferred only for the general support of 47 public schools. 48 § 7. The state finance law is amended by adding a new section 78-c to 49 read as follows: 50 § 78-c. Supplemental public higher education fund. 1. There is hereby 51 established in the joint custody of the state comptroller and the 52 commissioner of taxation and finance a fund to be known as the "supple- 53 mental public higher education fund". 54 2. Such fund shall consist of the revenues received by the department 55 of taxation and finance, pursuant to the provisions of subdivision three 56 of section one hundred seventy-one-a of the tax law, and all otherA. 10450 6 1 moneys appropriated, credited, or transferred thereto from any other 2 fund or source pursuant to law. Nothing in this section shall prevent 3 the state from soliciting and receiving grants, gifts or bequests for 4 the purposes of the fund as defined in this section and depositing them 5 into the fund according to law. 6 3. Moneys of the fund shall be distributed equally to the state 7 university of New York and the city university of New York for addi- 8 tional operating support, as appropriated by the legislature. 9 § 8. Notwithstanding any law, rule or regulation to the contrary, any 10 moneys collected pursuant to subdivision 3 of section 171-a of the tax 11 law and appropriated for the general support of public schools shall not 12 diminish the amount of school aid appropriated for any given school 13 year. Such collected moneys shall be additional funding. For the 14 purposes of this section, "amount of school aid" shall mean the amount 15 appropriated pursuant to the state budget for the previous school year. 16 § 9. Notwithstanding any law, rule or regulation to the contrary, any 17 moneys collected pursuant to subdivision 3 of section 171-a of the tax 18 law and appropriated for additional operating support of the state 19 university of New York and the city university of New York shall not 20 diminish the amount of operating support for the state university of New 21 York and the city university of New York appropriated for any given 22 academic year. Such collected moneys shall be additional funding. For 23 the purposes of this section, "operating support" shall mean the amount 24 appropriated pursuant to the state budget for the previous academic 25 year. 26 § 10. This act shall take effect immediately and shall be deemed to 27 have been in full force and effect on and after January 1, 2020 and 28 shall apply to taxable years on and after such date.