Bill Text: NY S00943 | 2019-2020 | General Assembly | Introduced
Bill Title: Relates to business income base and certain small business taxpayers.
Spectrum: Partisan Bill (Republican 8-0)
Status: (Introduced - Dead) 2020-01-08 - REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS [S00943 Detail]
Download: New_York-2019-S00943-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 943 2019-2020 Regular Sessions IN SENATE January 9, 2019 ___________ Introduced by Sens. O'MARA, BOYLE, GALLIVAN, YOUNG -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations AN ACT to amend the tax law and the administrative code of the city of New York, in relation to business income base and certain small busi- ness taxpayers The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subparagraph (iv) of paragraph (a) of subdivision 1 of 2 section 210 of the tax law, as amended by section 12 of part A of chap- 3 ter 59 of the laws of 2014, is amended to read as follows: 4 (iv) (A) for taxable years beginning before January first, two thou- 5 sand sixteen, if the business income base is not more than two hundred 6 ninety thousand dollars the amount shall be six and one-half percent of 7 the business income base; if the business income base is more than two 8 hundred ninety thousand dollars but not over three hundred ninety thou- 9 sand dollars the amount shall be the sum of (1) eighteen thousand eight 10 hundred fifty dollars, (2) seven and one-tenth percent of the excess of 11 the business income base over two hundred ninety thousand dollars but 12 not over three hundred ninety thousand dollars and (3) four and thirty- 13 five hundredths percent of the excess of the business income base over 14 three hundred fifty thousand dollars but not over three hundred ninety 15 thousand dollars; 16 (B) for taxable years beginning on or after January first, two thou- 17 sand twenty-one, if the business income base is not more than four 18 hundred thousand dollars the amount shall be four percent of the busi- 19 ness income base; if the business income base is more than four hundred 20 thousand dollars but not over five hundred thousand dollars the amount 21 shall be the sum of (1) sixteen thousand dollars, (2) six and one-half 22 percent of the excess of the business income base over four hundred 23 thousand dollars but not over five hundred thousand dollars and (3) EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD05703-01-9S. 943 2 1 twenty percent of the excess of the business income base over four 2 hundred fifty thousand dollars but not over five hundred thousand 3 dollars; 4 (C) for taxable years beginning on or after January first, two thou- 5 sand twenty-two, if the business income base is not more than four 6 hundred thousand dollars the amount shall be two and one-half percent of 7 the business income base; if the business income base is more than four 8 hundred thousand dollars but not over five hundred thousand dollars the 9 amount shall be the sum of (1) ten thousand dollars, (2) six and one- 10 half percent of the excess of the business income base over four hundred 11 thousand dollars but not over five hundred thousand dollars and (3) 12 thirty-two percent of the excess of the business income base over four 13 hundred fifty thousand dollars but not over five hundred thousand 14 dollars. 15 § 2. Paragraph 39 of subsection (c) of section 612 of the tax law, as 16 added by section 1 of part Y of chapter 59 of the laws of 2013, is 17 amended to read as follows: 18 (39) (A) In the case of a taxpayer who is a small business or a 19 taxpayer who is a member, partner, or shareholder of a limited liability 20 company, partnership, or New York S corporation, respectively, that is a 21 small business, who or which has business income [and/or farm income] as 22 defined in the laws of the United States, an amount equal to [three] 23 five percent of the net items of income, gain, loss and deduction 24 attributable to such business [or farm] entering into federal adjusted 25 gross income, but not less than zero, for taxable years beginning after 26 two thousand [thirteen] twenty, an amount equal to [three and three-27quarters] ten percent of the net items of income, gain, loss and 28 deduction attributable to such business [or farm] entering into federal 29 adjusted gross income, but not less than zero, for taxable years begin- 30 ning after two thousand [fourteen] twenty-one, and an amount equal to 31 [five] fifteen percent of the net items of income, gain, loss and 32 deduction attributable to such business [or farm] entering into federal 33 adjusted gross income, but not less than zero[, for taxable years begin-34ning after two thousand fifteen]. 35 (B) In the case of a taxpayer who is a farm business or a taxpayer who 36 is a member, partner, or shareholder of a limited liability company, 37 partnership, or New York S corporation, respectively, that is a farm 38 business, who or which has farm income as defined by the laws of the 39 United States, an amount equal to twenty percent of the net items of 40 income, gain, loss and deduction attributable to such farm. The term 41 farm business shall mean a farm business that has net farm income of 42 less than five hundred thousand dollars. 43 (C) (i) For the purposes of this paragraph, the term small business 44 shall mean: (I) a sole proprietor [or a farm business who employs one or45more persons during the taxable year and] who has net business income 46 [or net farm income] of less than [two hundred fifty] five hundred thou- 47 sand dollars; or (II) a limited liability company, partnership or New 48 York S corporation that during the taxable year has New York gross busi- 49 ness income attributable to a non-farm business that is greater than 50 zero but less than one million five hundred thousand dollars or net farm 51 income attributable to a farm business that is greater than zero but 52 less than five hundred thousand dollars. (ii) For purposes of this para- 53 graph, the term New York gross business income shall mean: (I) in the 54 case of a limited liability company or a partnership, New York source 55 gross income as defined in subparagraph (B) of paragraph three of 56 subsection (c) of section six hundred fifty-eight of this article, and,S. 943 3 1 (II) in the case of a New York S corporation, New York receipts included 2 in the numerator of the apportionment factor determined under section 3 two hundred ten-A of this chapter for the taxable year. 4 (D) To qualify for this modification in relation to a non-farm small 5 business that is a limited liability company, partnership or New York S 6 corporation, the taxpayer's income attributable to the net business 7 income from its ownership interests in non-farm limited liability compa- 8 nies, partnerships or New York S corporations must be less than five 9 hundred thousand dollars. 10 § 3. Paragraph 35 of subdivision (c) of section 11-1712 of the admin- 11 istrative code of the city of New York, as added by section 2 of part Y 12 of chapter 59 of the laws of 2013, is amended to read as follows: 13 (35) (A) In the case of a taxpayer who is a small business or a 14 taxpayer who is a member, partner, or shareholder of a limited liability 15 company, partnership, or New York S corporation, respectively, that is a 16 small business, who or which has business income [and/or farm income] as 17 defined in the laws of the United States, an amount equal to [three] 18 fifteen percent of the net items of income, gain, loss and deduction 19 attributable to such business [or farm] entering into federal adjusted 20 gross income, but not less than zero[, for taxable years beginning after21two thousand thirteen, an amount equal to three and three-quarters22percent of the net items of income, gain, loss and deduction attribut-23able to such business or farm entering into federal adjusted gross24income, but not less than zero, for taxable years beginning after two25thousand fourteen, and an amount equal to five percent of the net items26of income, gain, loss and deduction attributable to such business or27farm entering into federal adjusted gross income, but not less than28zero, for taxable years beginning after two thousand fifteen]. 29 (B) In the case of a taxpayer who is a farm business or a taxpayer who 30 is a member, partner, or shareholder of a limited liability company, 31 partnership, or New York S corporation, respectively, that is a farm 32 business, who or which has farm income as defined by the laws of the 33 United States, an amount equal to twenty percent of the net items of 34 income, gain, loss and deduction attributable to such farm. The term 35 farm business shall mean a farm business that has net farm income of 36 less than five hundred thousand dollars. 37 (C) (i) For the purposes of this paragraph, the term small business 38 shall mean: (I) a sole proprietor [or a farm business who employs one or39more persons during the taxable year and] who has net business income 40 [or net farm income] of less than [two hundred fifty] five hundred thou- 41 sand dollars; or (II) a limited liability company, partnership or New 42 York S corporation that during the taxable year has New York gross busi- 43 ness income attributable to a non-farm business that is greater than 44 zero but less than one million five hundred thousand dollars or net farm 45 income attributable to a farm business that is greater than zero but 46 less than five hundred thousand dollars. (ii) For purposes of this para- 47 graph, the term New York gross business income shall mean: (I) in the 48 case of a limited liability company or a partnership, New York source 49 gross income as defined in subparagraph (B) of paragraph three of 50 subsection (c) of section six hundred fifty-eight of the tax law, and, 51 (II) in the case of a New York S corporation, New York receipts included 52 in the numerator of the apportionment factor determined under section 53 two hundred ten-A of the tax law for the taxable year. 54 (D) To qualify for this modification in relation to a non-farm small 55 business that is a limited liability company, partnership or New York S 56 corporation, the taxpayer's income attributable to the net businessS. 943 4 1 income from its ownership interests in non-farm limited liability compa- 2 nies, partnerships or New York S corporations must be less than five 3 hundred thousand dollars. 4 § 4. This act shall take effect immediately and shall apply to taxable 5 years beginning on or after January 1, 2021.
