Bill Text: NY S04511 | 2019-2020 | General Assembly | Amended


Bill Title: Relates to the personal income tax rates for New York residents with New York taxable income over $1,000,000 and directs revenue generated from such tax to be deposited to the credit of the New York City Housing Authority and to the division of housing and community renewal.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2019-04-30 - PRINT NUMBER 4511A [S04511 Detail]

Download: New_York-2019-S04511-Amended.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                         4511--A
                               2019-2020 Regular Sessions
                    IN SENATE
                                     March 13, 2019
                                       ___________
        Introduced  by  Sen. SALAZAR -- read twice and ordered printed, and when
          printed to be committed to the Committee  on  Budget  and  Revenue  --
          committee  discharged,  bill amended, ordered reprinted as amended and
          recommitted to said committee
        AN ACT to amend the tax law, in relation to personal  income  tax  rates
          and  in  relation to directing revenue generated from certain taxes to
          be deposited to the credit of the New York city housing authority  and
          the division of housing and community renewal
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Subparagraph (B)  of  paragraph  1  of  subsection  (a)  of
     2  section  601  of  the  tax law is amended by adding a new clause (ix) to
     3  read as follows:
     4    (ix) For taxable years beginning  after  two  thousand  nineteen,  the
     5  following rates shall apply:
     6  If the New York taxable income is:    The tax is:
     7  Over $1,000,000 but not over          $66,578 plus 8.82% of excess over
     8  $5,000,000                            $1,000,000
     9  Over $5,000,000 but not over          $419,378 plus 9.32% of excess over
    10  $10,000,000                           $5,000,000
    11  Over $10,000,000 but not over         $885,378 plus 9.82% of excess over
    12  $100,000,000                          $10,000,000
    13  Over $100,000,000                     $9,723,378 plus 10.32% of excess
    14                                         over $100,000,000
    15    §  2. Subparagraph (B) of paragraph 1 of subsection (b) of section 601
    16  of the tax law is amended by  adding  a  new  clause  (ix)  to  read  as
    17  follows:
    18    (ix)  For  taxable  years  beginning  after two thousand nineteen, the
    19  following rates shall apply:
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09982-03-9

        S. 4511--A                          2
     1  If the New York taxable income is:    The tax is:
     2  Over $1,000,000 but not over          $67,017 plus 8.82% of excess over
     3  $5,000,000                            $1,000,000
     4  Over $5,000,000 but not over          $419,817 plus 9.32% of excess over
     5  $10,000,000                           $5,000,000
     6  Over $10,000,000 but not over         $885,817 plus 9.82% of excess over
     7  $100,000,000                          $10,000,000
     8  Over $100,000,000                     $9,723,817 plus 10.32% of excess
     9                                        over $100,000,000
    10    §  3. Subparagraph (B) of paragraph 1 of subsection (c) of section 601
    11  of the tax law is amended by  adding  a  new  clause  (ix)  to  read  as
    12  follows:
    13    (ix)  For  taxable  years  beginning  after two thousand nineteen, the
    14  following rates shall apply:
    15  If the New York taxable income is:    The tax is:
    16  Over $1,000,000 but not over          $67,391 plus 8.82% of excess over
    17  $5,000,000                            $1,000,000
    18  Over $5,000,000 but not over          $420,191 plus 9.32% of excess over
    19  $10,000,000                           $5,000,000
    20  Over $10,000,000                      $886,191 plus 9.82% of excess over
    21                                        $10,000,000
    22  Over $100,000,000                     $9,724,191 plus 10.32% of excess
    23                                        over $100,000,000
    24    § 4. Section 601 of the tax law is amended by adding a new  subsection
    25  (d-2) to read as follows:
    26    (d-2)  Alternative  tax  table  benefit  recapture.  For taxable years
    27  beginning after two thousand nineteen for  a  taxpayer  whose  New  York
    28  taxable  income  is  over  $1,000,000, there is hereby imposed a supple-
    29  mental tax in addition to the tax imposed under subsections (a), (b) and
    30  (c) of this section for the purpose of recapturing the  benefit  of  the
    31  tax  tables  contained  in such subsections. During these taxable years,
    32  any reference in this chapter to subsection (d) of this section shall be
    33  read as a reference to this subsection.
    34    (1) For resident married individuals filing joint returns and resident
    35  surviving spouses, the supplemental tax shall be an amount equal to  the
    36  sum  of  the tax table benefits described in subparagraphs (A), (B), (C)
    37  and (D) of this paragraph multiplied by their  respective  fractions  in
    38  such subparagraphs.
    39    (A)  The tax table benefit is the difference between (i) the amount of
    40  taxable income set forth in the tax table in clause (ii) of subparagraph
    41  (B) of paragraph one of subsection (a) of this section  not  subject  to
    42  the  8.82  percent  rate  of tax for the taxable year multiplied by such
    43  rate and (ii) the dollar denominated tax  for  such  amount  of  taxable
    44  income  set  forth  in  the  tax table applicable to the taxable year in
    45  clause (ii) of subparagraph (B) of paragraph one of  subsection  (a)  of
    46  this  section  less  the sum of tax table benefits in subparagraphs (A),
    47  (B) and (C) of paragraph one of subsection (d-1) of this section.    The
    48  fraction  for this subparagraph is computed as follows: the numerator is
    49  the lesser of fifty thousand dollars or the excess of New York  adjusted
    50  gross  income  for  the  taxable  year  over one million dollars and the
    51  denominator is fifty thousand dollars.
    52    (B) The tax table benefit is the difference between (i) the amount  of
    53  taxable income set forth in the tax table in clause (ii) of subparagraph
    54  (B)  of  paragraph  one of subsection (a) of this section not subject to
    55  the 9.32 percent rate of tax for the taxable  year  multiplied  by  such

        S. 4511--A                          3
     1  rate  and  (ii)  the  dollar  denominated tax for such amount of taxable
     2  income set forth in the tax table applicable  to  the  taxable  year  in
     3  clause  (ii)  of  subparagraph (B) of paragraph one of subsection (a) of
     4  this  section  less  the  sum of the tax table benefits in subparagraphs
     5  (A), (B) and (C) of paragraph one of subsection (d-1)  of  this  section
     6  and  such  tax  table benefit in subparagraph (A) of this paragraph. The
     7  fraction for this subparagraph is computed as follows: the numerator  is
     8  the  lesser of fifty thousand dollars or the excess of New York adjusted
     9  gross income for the taxable year over  five  million  dollars  and  the
    10  denominator  is fifty thousand dollars. Provided, however, this subpara-
    11  graph shall not apply to taxpayers who  are  not  subject  to  the  9.32
    12  percent tax rate.
    13    (C)  The tax table benefit is the difference between (i) the amount of
    14  taxable income set forth in the tax table in clause (ii) of subparagraph
    15  (B) of paragraph one of subsection (a) of this section  not  subject  to
    16  the  9.82  percent  rate  of tax for the taxable year multiplied by such
    17  rate and (ii) the dollar denominated tax  for  such  amount  of  taxable
    18  income  set  forth  in  the  tax table applicable to the taxable year in
    19  clause (ii) of paragraph (B) of paragraph one of subsection (a) of  this
    20  section less the sum of the tax table benefits in subparagraphs (A), (B)
    21  and  (C)  of  paragraph one of subsection (d-1) of this section and such
    22  tax table benefits in subparagraphs (A) and (B) of this  paragraph.  The
    23  fraction  for this subparagraph is computed as follows: the numerator is
    24  the lesser of fifty thousand dollars or the excess of New York  adjusted
    25  gross  income  for  the  taxable  year  over ten million dollars and the
    26  denominator is fifty thousand dollars.  Provided, however, this subpara-
    27  graph shall not apply to taxpayers who  are  not  subject  to  the  9.82
    28  percent tax rate.
    29    (D)  The tax table benefit is the difference between (i) the amount of
    30  taxable income set forth in the tax table in clause (ii) of subparagraph
    31  (B) of paragraph one of subsection (a) of this section  not  subject  to
    32  the  10.32  percent  rate of tax for the taxable year multiplied by such
    33  rate and (ii) the dollar denominated tax  for  such  amount  of  taxable
    34  income  set  forth  in  the  tax table applicable to the taxable year in
    35  clause (ii) of subparagraph (B) of paragraph one of  subsection  (a)  of
    36  this  section  less  the  sum of the tax table benefits in subparagraphs
    37  (A), (B) and (C) of paragraph one of subsection (d-1)  of  this  section
    38  and  such  tax  table benefits in subparagraphs (A), (B) and (C) of this
    39  paragraph. The fraction for this subparagraph is  computed  as  follows:
    40  the  numerator  is the lesser of fifty thousand dollars or the excess of
    41  New York adjusted gross income for the taxable  year  over  one  hundred
    42  million dollars and the denominator is fifty thousand dollars.
    43    (E)  Provided,  however, the total tax prior to the application of any
    44  tax credits shall not exceed the highest rate of tax set  forth  in  the
    45  tax  tables  in subsection (a) of this section multiplied by the taxpay-
    46  er's taxable income.
    47    (2) For resident heads of households, the supplemental tax shall be an
    48  amount equal to the sum of the tax table benefits described in  subpara-
    49  graphs  (A),  (B),  (C)  and  (D)  of this paragraph multiplied by their
    50  respective fractions in such subparagraphs.
    51    (A) The tax table benefit is the difference between (i) the amount  of
    52  taxable income set forth in the tax table in clause (ii) of subparagraph
    53  (B)  of  paragraph  one of subsection (b) of this section not subject to
    54  the 8.82 percent rate of tax for the taxable  year  multiplied  by  such
    55  rate  and  (ii)  the  dollar  denominated tax for such amount of taxable
    56  income set forth in the tax table applicable  to  the  taxable  year  in

        S. 4511--A                          4
     1  clause  (ii)  of  subparagraph (B) of paragraph one of subsection (b) of
     2  this section less the sum of the tax table benefits in subparagraphs (A)
     3  and (B) of paragraph two of subsection (d-1) of this section.  The frac-
     4  tion  for this subparagraph is computed as follows: the numerator is the
     5  lesser of fifty thousand dollars or the  excess  of  New  York  adjusted
     6  gross  income  for  the  taxable  year  over one million dollars and the
     7  denominator is fifty thousand dollars.
     8    (B) The tax table benefit is the difference between (i) the amount  of
     9  taxable income set forth in the tax table in clause (ii) of subparagraph
    10  (B)  of  paragraph  one of subsection (b) of this section not subject to
    11  the 9.32 percent rate of tax for the taxable  year  multiplied  by  such
    12  rate  and  (ii)  the  dollar  denominated tax for such amount of taxable
    13  income set forth in the tax table applicable  to  the  taxable  year  in
    14  clause  (ii)  of  subparagraph (B) of paragraph one of subsection (b) of
    15  this section less the sum of the tax table benefits in subparagraphs (A)
    16  and (B) of paragraph two of subsection (d-1) of this  section  and  such
    17  tax  table  benefit  in subparagraph (A) of this paragraph. The fraction
    18  for this subparagraph is computed as follows: the numerator is the less-
    19  er of fifty thousand dollars or the excess of New  York  adjusted  gross
    20  income  for the taxable year over five million dollars and the denomina-
    21  tor is fifty thousand  dollars.  Provided,  however,  this  subparagraph
    22  shall not apply to taxpayers who are not subject to the 9.32 percent tax
    23  rate.
    24    (C)  The tax table benefit is the difference between (i) the amount of
    25  taxable income set forth in the tax table in clause (ii) of subparagraph
    26  (B) of paragraph one of subsection (b) of this section  not  subject  to
    27  the  9.82  percent  rate  of tax for the taxable year multiplied by such
    28  rate and (ii) the dollar denominated tax  for  such  amount  of  taxable
    29  income  set  forth  in  the  tax table applicable to the taxable year in
    30  clause (ii) of subparagraph (B) of paragraph one of  subsection  (b)  of
    31  this section less the sum of the tax table benefits in subparagraphs (A)
    32  and  (B)  of  paragraph two of subsection (d-1) of this section and such
    33  tax table benefits in subparagraphs (A) and (B) of this  paragraph.  The
    34  fraction  for this subparagraph is computed as follows: the numerator is
    35  the lesser of fifty thousand dollars or the excess of New York  adjusted
    36  gross  income  for  the  taxable  year  over ten million dollars and the
    37  denominator is fifty thousand dollars.
    38    (D) The tax table benefit is the difference between (i) the amount  of
    39  taxable income set forth in the tax table in clause (ii) of subparagraph
    40  (B)  of  paragraph  one of subsection (b) of this section not subject to
    41  the 10.32 percent rate of tax for the taxable year  multiplied  by  such
    42  rate  and  (ii)  the  dollar  denominated tax for such amount of taxable
    43  income set forth in the tax table applicable  to  the  taxable  year  in
    44  clause  (ii)  of  subparagraph (B) of paragraph one of subsection (b) of
    45  this section less the sum of the tax table benefits in subparagraphs (A)
    46  and (B) of paragraph two of subsection (d-1) of this  section  and  such
    47  tax  table benefits in subparagraphs (A), (B) and (C) of this paragraph.
    48  The fraction for this subparagraph is computed as follows: the numerator
    49  is the lesser of fifty thousand  dollars  or  the  excess  of  New  York
    50  adjusted  gross  income  for  the  taxable year over one hundred million
    51  dollars and the denominator is fifty thousand dollars.
    52    (E) Provided, however, the total tax prior to the application  of  any
    53  tax  credits  shall  not exceed the highest rate of tax set forth in the
    54  tax tables in subsection (b) of this section multiplied by  the  taxpay-
    55  er's taxable income.

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     1    (3)  For  resident unmarried individuals, resident married individuals
     2  filing separate returns and resident estates  and  trusts,  the  supple-
     3  mental tax shall be an amount equal to the sum of the tax table benefits
     4  described  in  subparagraphs  (A),  (B),  (C)  and (D) of this paragraph
     5  multiplied by their respective fractions in such subparagraphs.
     6    (A)  The tax table benefit is the difference between (i) the amount of
     7  taxable income set forth in the tax table in clause (ii) of subparagraph
     8  (B) of paragraph one of subsection (c) of this section  not  subject  to
     9  the  8.82  percent  rate  of tax for the taxable year multiplied by such
    10  rate and (ii) the dollar denominated tax  for  such  amount  of  taxable
    11  income  set  forth  in  the  tax table applicable to the taxable year in
    12  clause (ii) of subparagraph (B) of paragraph one of  subsection  (c)  of
    13  this section less the sum of tax table benefits in subparagraphs (A) and
    14  (B)  of  paragraph three of subsection (d-1) of this section.  The frac-
    15  tion is computed as follows: the numerator is the lesser of fifty  thou-
    16  sand  dollars  or  the  excess of New York adjusted gross income for the
    17  taxable year over one million dollars and the denominator is fifty thou-
    18  sand dollars.
    19    (B) The tax table benefit is the difference between (i) the amount  of
    20  taxable income set forth in the tax table in clause (ii) of subparagraph
    21  (B)  of  paragraph  one of subsection (c) of this section not subject to
    22  the 9.32 percent rate of tax for the taxable  year  multiplied  by  such
    23  rate  and  (ii)  the  dollar  denominated tax for such amount of taxable
    24  income set forth in the tax table applicable  to  the  taxable  year  in
    25  clause  (ii)  of  subparagraph (B) of paragraph one of subsection (c) of
    26  this section less the sum of the tax table benefits in subparagraphs (A)
    27  and (B) of paragraph three of subsection (d-1) of this section and  such
    28  tax  table  benefit  in subparagraph (A) of this paragraph. The fraction
    29  for this subparagraph is computed as follows: the numerator is the less-
    30  er of fifty thousand dollars or the excess of New  York  adjusted  gross
    31  income  for the taxable year over five million dollars and the denomina-
    32  tor is fifty thousand  dollars.  Provided,  however,  this  subparagraph
    33  shall not apply to taxpayers who are not subject to the 9.32 percent tax
    34  rate.
    35    (C)  The tax table benefit is the difference between (i) the amount of
    36  taxable income set forth in the tax table in clause (ii) of subparagraph
    37  (B) of paragraph one of subsection (c) of this section  not  subject  to
    38  the  9.82  percent  rate  of tax for the taxable year multiplied by such
    39  rate and (ii) the dollar denominated tax  for  such  amount  of  taxable
    40  income  set  forth  in  the  tax table applicable to the taxable year in
    41  clause (ii) of subparagraph (B) of paragraph one of  subsection  (c)  of
    42  this section less the sum of the tax table benefits in subparagraphs (A)
    43  and  (B) of paragraph three of subsection (d-1) of this section and such
    44  tax table benefits in subparagraphs (A) and (B) of this  paragraph.  The
    45  fraction  for this subparagraph is computed as follows: the numerator is
    46  the lesser of fifty thousand dollars or the excess of New York  adjusted
    47  gross  income  for  the  taxable  year  over ten million dollars and the
    48  denominator is fifty thousand dollars.
    49    (D) The tax table benefit is the difference between (i) the amount  of
    50  taxable income set forth in the tax table in clause (ii) of subparagraph
    51  (B)  of  paragraph  one of subsection (c) of this section not subject to
    52  the 10.32 percent rate of tax for the taxable year  multiplied  by  such
    53  rate  and  (ii)  the  dollar  denominated tax for such amount of taxable
    54  income set forth in the tax table applicable  to  the  taxable  year  in
    55  clause  (ii)  of  subparagraph (B) of paragraph one of subsection (c) of
    56  this section less the sum of the tax table benefits in subparagraphs (A)

        S. 4511--A                          6
     1  and (B) of paragraph three of subsection (d-1) of this section and  such
     2  tax  table benefits in subparagraphs (A), (B) and (C) of this paragraph.
     3  The fraction for this subparagraph is computed as follows: the numerator
     4  is  the  lesser  of  fifty  thousand  dollars  or the excess of New York
     5  adjusted gross income for the taxable  year  over  one  hundred  million
     6  dollars and the denominator is fifty thousand dollars.
     7    (E)  Provided,  however, the total tax prior to the application of any
     8  tax credits shall not exceed the highest rate of tax set  forth  in  the
     9  tax  tables  in subsection (c) of this section multiplied by the taxpay-
    10  er's taxable income.
    11    § 5. Subsection (f) of section 614 of  the  tax  law,  as  amended  by
    12  section  11  of part FF of chapter 59 of the laws of 2013, is amended to
    13  read as follows:
    14    (f) Adjusted standard deduction. For taxable years beginning after two
    15  thousand [seventeen] nineteen, the standard deductions set forth in this
    16  section shall be the amounts set forth in this section adjusted  by  the
    17  cost  of  living  adjustment  prescribed in section six hundred one-a of
    18  this part for tax years two  thousand  thirteen  [through  two  thousand
    19  seventeen] and thereafter.
    20    §  6.  Section 171-a of the tax law, as separately amended by chapters
    21  481 and 484 of the laws of 1981, is amended by adding a new  subdivision
    22  3 to read as follows:
    23    3.  Notwithstanding  subdivision  one  of  this  section  or any other
    24  provision of law to the contrary, the taxes imposed pursuant  to  clause
    25  (ix) of subparagraph (B) of paragraph one of subsection (a), clause (ix)
    26  of  subparagraph (B) of paragraph one of subsection (b), and clause (ix)
    27  of subparagraph (B) of paragraph one of subsection (c)  of  section  six
    28  hundred  one  of  this  chapter, reduced by an amount for administrative
    29  costs, shall be deposited, as such taxes are received, as  follows:  (a)
    30  eighty  percent  of  the revenue shall be deposited to the credit of the
    31  New York city housing authority; and (b) twenty percent of  the  revenue
    32  shall be deposited to the credit of the division of housing and communi-
    33  ty  renewal for the purposes of construction, improvement, and preserva-
    34  tion of public housing authorities outside the city  of  New  York.  The
    35  amount  for administrative costs shall be determined by the commissioner
    36  to represent reasonable costs of the department of taxation and  finance
    37  in  administering,  collecting, determining and distributing such taxes.
    38  Of the total revenue collected or received under such sections  of  this
    39  chapter,  the  comptroller  shall retain in his hands such amount as the
    40  commissioner may determine to be necessary for refunds or reimbursements
    41  under such clauses of such section of this chapter out of  which  amount
    42  the comptroller shall pay any refunds or reimbursements to which taxpay-
    43  ers  shall  be  entitled under provisions of such sections.  The commis-
    44  sioner and the comptroller shall maintain a system of  accounts  showing
    45  the  amount  of  revenue  collected  or  received from each of the taxes
    46  imposed by such sections.
    47    § 7. This act shall take effect immediately and shall apply to taxable
    48  years beginning on or after January 1, 2020.
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