Bill Text: NY S02120 | 2017-2018 | General Assembly | Amended
Bill Title: Relates to business income base and certain small business taxpayers.
Spectrum: Partisan Bill (Republican 13-0)
Status: (Engrossed - Dead) 2018-05-02 - referred to ways and means [S02120 Detail]
Download: New_York-2017-S02120-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 2120--A 2017-2018 Regular Sessions IN SENATE January 12, 2017 ___________ Introduced by Sens. O'MARA, BONACIC, BOYLE, FUNKE, GALLIVAN, LARKIN, MARCHIONE, ORTT, YOUNG -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Govern- ment Operations -- recommitted to the Committee on Investigations and Government Operations in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee 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 nineteen, if the business income base is not more than four hundred 18 thousand dollars the amount shall be four percent of the business income 19 base; if the business income base is more than four hundred thousand EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD07109-02-8S. 2120--A 2 1 dollars but not over five hundred thousand dollars the amount shall be 2 the sum of (1) sixteen thousand dollars, (2) six and one-half percent of 3 the excess of the business income base over four hundred thousand 4 dollars but not over five hundred thousand dollars and (3) twenty 5 percent of the excess of the business income base over four hundred 6 fifty thousand dollars but not over five hundred thousand dollars; 7 (C) for taxable years beginning on or after January first, two thou- 8 sand twenty, if the business income base is not more than four hundred 9 thousand dollars the amount shall be two and one-half percent of the 10 business income base; if the business income base is more than four 11 hundred thousand dollars but not over five hundred thousand dollars the 12 amount shall be the sum of (1) ten thousand dollars, (2) six and one- 13 half percent of the excess of the business income base over four hundred 14 thousand dollars but not over five hundred thousand dollars and (3) 15 thirty-two percent of the excess of the business income base over four 16 hundred fifty thousand dollars but not over five hundred thousand 17 dollars. 18 § 2. Paragraph 39 of subsection (c) of section 612 of the tax law, as 19 added by section 1 of part Y of chapter 59 of the laws of 2013, is 20 amended to read as follows: 21 (39) (A) In the case of a taxpayer who is a small business or a 22 taxpayer who is a member, partner, or shareholder of a limited liability 23 company, partnership, or New York S corporation, respectively, that is a 24 small business, who or which has business income [and/or farm income] as 25 defined in the laws of the United States, an amount equal to [three] 26 five percent of the net items of income, gain, loss and deduction 27 attributable to such business [or farm] entering into federal adjusted 28 gross income, but not less than zero, for taxable years beginning after 29 two thousand [thirteen] eighteen, an amount equal to [three and three-30quarters] ten percent of the net items of income, gain, loss and 31 deduction attributable to such business [or farm] entering into federal 32 adjusted gross income, but not less than zero, for taxable years begin- 33 ning after two thousand [fourteen] nineteen, and an amount equal to 34 [five] fifteen percent of the net items of income, gain, loss and 35 deduction attributable to such business [or farm] entering into federal 36 adjusted gross income, but not less than zero[, for taxable years begin-37ning after two thousand fifteen]. 38 (B) In the case of a taxpayer who is a farm business or a taxpayer who 39 is a member, partner, or shareholder of a limited liability company, 40 partnership, or New York S corporation, respectively, that is a farm 41 business, who or which has farm income as defined by the laws of the 42 United States, an amount equal to twenty percent of the net items of 43 income, gain, loss and deduction attributable to such farm. The term 44 farm business shall mean a farm business that has net farm income of 45 less than five hundred thousand dollars. 46 (C) (i) For the purposes of this paragraph, the term small business 47 shall mean: (I) a sole proprietor [or a farm business who employs one or48more persons during the taxable year and] who has net business income 49 [or net farm income] of less than [two hundred fifty] five hundred thou- 50 sand dollars; or (II) a limited liability company, partnership or New 51 York S corporation that during the taxable year has New York gross busi- 52 ness income attributable to a non-farm business that is greater than 53 zero but less than one million five hundred thousand dollars or net farm 54 income attributable to a farm business that is greater than zero but 55 less than five hundred thousand dollars. (ii) For purposes of this para- 56 graph, the term New York gross business income shall mean: (I) in theS. 2120--A 3 1 case of a limited liability company or a partnership, New York source 2 gross income as defined in subparagraph (B) of paragraph three of 3 subsection (c) of section six hundred fifty-eight of this article, and, 4 (II) in the case of a New York S corporation, New York receipts included 5 in the numerator of the apportionment factor determined under section 6 two hundred ten-A of this chapter for the taxable year. 7 (D) To qualify for this modification in relation to a non-farm small 8 business that is a limited liability company, partnership or New York S 9 corporation, the taxpayer's income attributable to the net business 10 income from its ownership interests in non-farm limited liability compa- 11 nies, partnerships or New York S corporations must be less than five 12 hundred thousand dollars. 13 § 3. Paragraph 35 of subdivision (c) of section 11-1712 of the admin- 14 istrative code of the city of New York, as added by section 2 of part Y 15 of chapter 59 of the laws of 2013, is amended to read as follows: 16 (35) (A) In the case of a taxpayer who is a small business or a 17 taxpayer who is a member, partner, or shareholder of a limited liability 18 company, partnership, or New York S corporation, respectively, that is a 19 small business, who or which has business income [and/or farm income] as 20 defined in the laws of the United States, an amount equal to [three] 21 fifteen percent of the net items of income, gain, loss and deduction 22 attributable to such business [or farm] entering into federal adjusted 23 gross income, but not less than zero[, for taxable years beginning after24two thousand thirteen, an amount equal to three and three-quarters25percent of the net items of income, gain, loss and deduction attribut-26able to such business or farm entering into federal adjusted gross27income, but not less than zero, for taxable years beginning after two28thousand fourteen, and an amount equal to five percent of the net items29of income, gain, loss and deduction attributable to such business or30farm entering into federal adjusted gross income, but not less than31zero, for taxable years beginning after two thousand fifteen]. 32 (B) In the case of a taxpayer who is a farm business or a taxpayer who 33 is a member, partner, or shareholder of a limited liability company, 34 partnership, or New York S corporation, respectively, that is a farm 35 business, who or which has farm income as defined by the laws of the 36 United States, an amount equal to twenty percent of the net items of 37 income, gain, loss and deduction attributable to such farm. The term 38 farm business shall mean a farm business that has net farm income of 39 less than five hundred thousand dollars. 40 (C) (i) For the purposes of this paragraph, the term small business 41 shall mean: (I) a sole proprietor [or a farm business who employs one or42more persons during the taxable year and] who has net business income 43 [or net farm income] of less than [two hundred fifty] five hundred thou- 44 sand dollars; or (II) a limited liability company, partnership or New 45 York S corporation that during the taxable year has New York gross busi- 46 ness income attributable to a non-farm business that is greater than 47 zero but less than one million five hundred thousand dollars or net farm 48 income attributable to a farm business that is greater than zero but 49 less than five hundred thousand dollars. (ii) For purposes of this para- 50 graph, the term New York gross business income shall mean: (I) in the 51 case of a limited liability company or a partnership, New York source 52 gross income as defined in subparagraph (B) of paragraph three of 53 subsection (c) of section six hundred fifty-eight of the tax law, and, 54 (II) in the case of a New York S corporation, New York receipts included 55 in the numerator of the apportionment factor determined under section 56 two hundred ten-A of the tax law for the taxable year.S. 2120--A 4 1 (D) To qualify for this modification in relation to a non-farm small 2 business that is a limited liability company, partnership or New York S 3 corporation, the taxpayer's income attributable to the net business 4 income from its ownership interests in non-farm limited liability compa- 5 nies, partnerships or New York S corporations must be less than five 6 hundred thousand dollars. 7 § 4. This act shall take effect immediately and shall apply to taxable 8 years beginning on or after January 1, 2019.