Bill Text: NY S00863 | 2019-2020 | General Assembly | Introduced

---

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

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2020-01-08 - REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS [S00863 Detail]

Download: New_York-2019-S00863-Introduced.html

---

                STATE OF NEW YORK
        ________________________________________________________________________
                                           863
                               2019-2020 Regular Sessions
                    IN SENATE
                                     January 9, 2019
                                       ___________
        Introduced  by Sen. GALLIVAN -- read twice and ordered printed, and when
          printed to be committed to the Committee on Investigations and Govern-
          ment Operations
        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
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02805-01-9
        S. 863                              2
     1  of  the  prior fiscal year, divided by: (ii) the average of the national
     2  consumer price indexes determined by the  United  States  department  of
     3  labor  for  the twelve-month period ending six months prior to the start
     4  of the prior fiscal year, with the result expressed as a decimal to four
     5  places.
     6    (e) "Prior fiscal year" means the fiscal year of the state immediately
     7  preceding the coming fiscal year.
     8    (f) "Tax levy limit" means the amount of taxes authorized to be levied
     9  by  or  on behalf of the state pursuant to this section for fiscal years
    10  beginning after two thousand nineteen.
    11    (g) "Tax" or "taxes" means personal  income  taxes  levied  by  or  on
    12  behalf of the state.
    13    3.  (a) Subject to the provisions of subdivision five of this section,
    14  beginning with the fiscal year that begins after two thousand  nineteen,
    15  the  state  shall  not  adopt  a budget that requires a tax levy that is
    16  greater than the tax levy limit for the coming fiscal year.
    17    (b) The state shall calculate the tax levy  limit  applicable  to  the
    18  coming fiscal year which shall be determined as follows:
    19    (i)  Ascertain  the  total amount of taxes levied for the prior fiscal
    20  year.
    21    (ii) Multiply the result by the allowable levy growth factor.
    22    (iii) Add the available carryover, if any.
    23    4. In the event the state's actual tax levy for a  given  fiscal  year
    24  exceeds  the  tax  levy  limit  by more than one percent of the tax levy
    25  limit, the state shall rebate the total amount that the actual tax  levy
    26  exceeds  the  tax  levy  limit  so that each individual filer receives a
    27  rebate of equal amount rounded down to the nearest cent,  provided  that
    28  no individual shall receive a rebate of a greater amount than the income
    29  taxes  paid  during the same fiscal year.  These rebates shall be mailed
    30  in the form of checks payable to the filing individual no later than the
    31  first of September following the end of each fiscal year.
    32    5. In the event the state's actual tax levy for a  given  fiscal  year
    33  exceeds  the  tax  levy limit as established pursuant to this section by
    34  less than one percent of the tax levy limit, the state shall  place  the
    35  excess  amount  of  the levy in reserve in accordance with such require-
    36  ments as the state comptroller may prescribe, and shall use  such  funds
    37  and  any  interest earned thereon to offset the tax levy for the ensuing
    38  fiscal year.
    39    § 2. This act shall take effect immediately.