Bill Text: NY S02120 | 2017-2018 | General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
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-Introduced.html
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-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 2120 2017-2018 Regular Sessions IN SENATE January 12, 2017 ___________ Introduced by Sens. O'MARA, FUNKE, GALLIVAN, LARKIN, 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 eighteen, 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 20 dollars but not over five hundred thousand dollars the amount shall be 21 the sum of (1) sixteen thousand dollars, (2) six and one-half percent of 22 the excess of the business income base over four hundred thousand 23 dollars but not over five hundred thousand dollars and (3) twenty EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD07109-01-7S. 2120 2 1 percent of the excess of the business income base over four hundred 2 fifty thousand dollars but not over five hundred thousand dollars; 3 (C) for taxable years beginning on or after January first, two thou- 4 sand nineteen, if the business income base is not more than four hundred 5 thousand dollars the amount shall be two and one-half percent of the 6 business income base; if the business income base is more than four 7 hundred thousand dollars but not over five hundred thousand dollars the 8 amount shall be the sum of (1) ten thousand dollars, (2) six and one- 9 half percent of the excess of the business income base over four hundred 10 thousand dollars but not over five hundred thousand dollars and (3) 11 thirty-two percent of the excess of the business income base over four 12 hundred fifty thousand dollars but not over five hundred thousand 13 dollars. 14 § 2. Paragraph 39 of subsection (c) of section 612 of the tax law, as 15 added by section 1 of part Y of chapter 59 of the laws of 2013, is 16 amended to read as follows: 17 (39) (A) In the case of a taxpayer who is a small business or a 18 taxpayer who is a member, partner, or shareholder of a limited liability 19 company, partnership, or New York S corporation, respectively, that is a 20 small business, who or which has business income [and/or farm income] as 21 defined in the laws of the United States, an amount equal to [three] 22 five percent of the net items of income, gain, loss and deduction 23 attributable to such business [or farm] entering into federal adjusted 24 gross income, but not less than zero, for taxable years beginning after 25 two thousand [thirteen] seventeen, an amount equal to [three and three-26quarters] ten percent of the net items of income, gain, loss and 27 deduction attributable to such business [or farm] entering into federal 28 adjusted gross income, but not less than zero, for taxable years begin- 29 ning after two thousand [fourteen] eighteen, and an amount equal to 30 [five] fifteen 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-33ning after two thousand fifteen]. 34 (B) In the case of a taxpayer who is a farm business or a taxpayer who 35 is a member, partner, or shareholder of a limited liability company, 36 partnership, or New York S corporation, respectively, that is a farm 37 business, who or which has farm income as defined by the laws of the 38 United States, an amount equal to twenty percent of the net items of 39 income, gain, loss and deduction attributable to such farm. The term 40 farm business shall mean a farm business that has net farm income of 41 less than five hundred thousand dollars. 42 (C) (i) For the purposes of this paragraph, the term small business 43 shall mean: (I) a sole proprietor [or a farm business who employs one or44more persons during the taxable year and] who has net business income 45 [or net farm income] of less than [two hundred fifty] five hundred thou- 46 sand dollars; or (II) a limited liability company, partnership or New 47 York S corporation that during the taxable year has New York gross busi- 48 ness income attributable to a non-farm business that is greater than 49 zero but less than one million five hundred thousand dollars or net farm 50 income attributable to a farm business that is greater than zero but 51 less than five hundred thousand dollars. (ii) For purposes of this para- 52 graph, the term New York gross business income shall mean: (I) in the 53 case of a limited liability company or a partnership, New York source 54 gross income as defined in subparagraph (B) of paragraph three of 55 subsection (c) of section six hundred fifty-eight of this article, and, 56 (II) in the case of a New York S corporation, New York receipts includedS. 2120 3 1 in the numerator of the apportionment factor determined under section 2 two hundred ten-A of this chapter for the taxable year. 3 (D) To qualify for this modification in relation to a non-farm small 4 business that is a limited liability company, partnership or New York S 5 corporation, the taxpayer's income attributable to the net business 6 income from its ownership interests in non-farm limited liability compa- 7 nies, partnerships or New York S corporations must be less than five 8 hundred thousand dollars. 9 § 3. Paragraph 35 of subdivision (c) of section 11-1712 of the admin- 10 istrative code of the city of New York, as added by section 2 of part Y 11 of chapter 59 of the laws of 2013, is amended to read as follows: 12 (35) (A) In the case of a taxpayer who is a small business or a 13 taxpayer who is a member, partner, or shareholder of a limited liability 14 company, partnership, or New York S corporation, respectively, that is a 15 small business, who or which has business income [and/or farm income] as 16 defined in the laws of the United States, an amount equal to [three] 17 fifteen percent of the net items of income, gain, loss and deduction 18 attributable to such business [or farm] entering into federal adjusted 19 gross income, but not less than zero[, for taxable years beginning after20two thousand thirteen, an amount equal to three and three-quarters21percent of the net items of income, gain, loss and deduction attribut-22able to such business or farm entering into federal adjusted gross23income, but not less than zero, for taxable years beginning after two24thousand fourteen, and an amount equal to five percent of the net items25of income, gain, loss and deduction attributable to such business or26farm entering into federal adjusted gross income, but not less than27zero, for taxable years beginning after two thousand fifteen]. 28 (B) In the case of a taxpayer who is a farm business or a taxpayer who 29 is a member, partner, or shareholder of a limited liability company, 30 partnership, or New York S corporation, respectively, that is a farm 31 business, who or which has farm income as defined by the laws of the 32 United States, an amount equal to twenty percent of the net items of 33 income, gain, loss and deduction attributable to such farm. The term 34 farm business shall mean a farm business that has net farm income of 35 less than five hundred thousand dollars. 36 (C) (i) For the purposes of this paragraph, the term small business 37 shall mean: (I) a sole proprietor [or a farm business who employs one or38more persons during the taxable year and] who has net business income 39 [or net farm income] of less than [two hundred fifty] five hundred thou- 40 sand dollars; or (II) a limited liability company, partnership or New 41 York S corporation that during the taxable year has New York gross busi- 42 ness income attributable to a non-farm business that is greater than 43 zero but less than one million five hundred thousand dollars or net farm 44 income attributable to a farm business that is greater than zero but 45 less than five hundred thousand dollars. (ii) For purposes of this para- 46 graph, the term New York gross business income shall mean: (I) in the 47 case of a limited liability company or a partnership, New York source 48 gross income as defined in subparagraph (B) of paragraph three of 49 subsection (c) of section six hundred fifty-eight of the tax law, and, 50 (II) in the case of a New York S corporation, New York receipts included 51 in the numerator of the apportionment factor determined under section 52 two hundred ten-A of the tax law for the taxable year. 53 (D) To qualify for this modification in relation to a non-farm small 54 business that is a limited liability company, partnership or New York S 55 corporation, the taxpayer's income attributable to the net business 56 income from its ownership interests in non-farm limited liability compa-S. 2120 4 1 nies, partnerships or New York S corporations must be less than five 2 hundred thousand dollars. 3 § 4. This act shall take effect immediately and shall apply to taxable 4 years beginning on or after January 1, 2018.