Bill Text: NY S04511 | 2019-2020 | General Assembly | Introduced
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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 3-0)
Status: (Introduced - Dead) 2020-01-08 - REFERRED TO BUDGET AND REVENUE [S04511 Detail]
Download: New_York-2019-S04511-Introduced.html
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 3-0)
Status: (Introduced - Dead) 2020-01-08 - REFERRED TO BUDGET AND REVENUE [S04511 Detail]
Download: New_York-2019-S04511-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 4511 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 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 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: 20 If the New York taxable income is: The tax is: 21 Over $1,000,000 but not over $67,017 plus 8.82% of excess over 22 $5,000,000 $1,000,000 EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD09982-02-9S. 4511 2 1 Over $5,000,000 but not over $419,817 plus 9.32% of excess over 2 $10,000,000 $5,000,000 3 Over $10,000,000 but not over $885,817 plus 9.82% of excess over 4 $100,000,000 $10,000,000 5 Over $100,000,000 $9,723,817 plus 10.32% of excess 6 over $100,000,000 7 § 3. Subparagraph (B) of paragraph 1 of subsection (c) of section 601 8 of the tax law is amended by adding a new clause (ix) to read as 9 follows: 10 (ix) For taxable years beginning after two thousand nineteen, the 11 following rates shall apply: 12 If the New York taxable income is: The tax is: 13 Over $1,000,000 but not over $67,391 plus 8.82% of excess over 14 $5,000,000 $1,000,000 15 Over $5,000,000 but not over $420,191 plus 9.32% of excess over 16 $10,000,000 $5,000,000 17 Over $10,000,000 $886,191 plus 9.82% of excess over 18 $10,000,000 19 Over $100,000,000 $9,724,191 plus 10.32% of excess 20 over $100,000,000 21 § 4. Section 601 of the tax law is amended by adding a new subsection 22 (d-2) to read as follows: 23 (d-2) Alternative tax table benefit recapture. For taxable years 24 beginning after two thousand nineteen for a taxpayer whose New York 25 taxable income is over $1,000,000, there is hereby imposed a supple- 26 mental tax in addition to the tax imposed under subsections (a), (b) and 27 (c) of this section for the purpose of recapturing the benefit of the 28 tax tables contained in such subsections. During these taxable years, 29 any reference in this chapter to subsection (d) of this section shall be 30 read as a reference to this subsection. 31 (1) For resident married individuals filing joint returns and resident 32 surviving spouses, the supplemental tax shall be an amount equal to the 33 sum of the tax table benefits described in subparagraphs (A), (B), (C) 34 and (D) of this paragraph multiplied by their respective fractions in 35 such subparagraphs. 36 (A) The tax table benefit is the difference between (i) the amount of 37 taxable income set forth in the tax table in clause (ii) of subparagraph 38 (B) of paragraph one of subsection (a) of this section not subject to 39 the 8.82 percent rate of tax for the taxable year multiplied by such 40 rate and (ii) the dollar denominated tax for such amount of taxable 41 income set forth in the tax table applicable to the taxable year in 42 clause (ii) of subparagraph (B) of paragraph one of subsection (a) of 43 this section less the sum of tax table benefits in subparagraphs (A), 44 (B) and (C) of paragraph one of subsection (d-1) of this section. 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 one million dollars and the 48 denominator is fifty thousand dollars. 49 (B) 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 (a) of this section not subject to 52 the 9.32 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 (a) ofS. 4511 3 1 this section less the sum of the tax table benefits in subparagraphs 2 (A), (B) and (C) of paragraph one of subsection (d-1) of this section 3 and such tax table benefit in subparagraph (A) of this paragraph. The 4 fraction for this subparagraph is computed as follows: the numerator is 5 the lesser of fifty thousand dollars or the excess of New York adjusted 6 gross income for the taxable year over five million dollars and the 7 denominator is fifty thousand dollars. Provided, however, this subpara- 8 graph shall not apply to taxpayers who are not subject to the 9.32 9 percent tax rate. 10 (C) The tax table benefit is the difference between (i) the amount of 11 taxable income set forth in the tax table in clause (ii) of subparagraph 12 (B) of paragraph one of subsection (a) of this section not subject to 13 the 9.82 percent rate of tax for the taxable year multiplied by such 14 rate and (ii) the dollar denominated tax for such amount of taxable 15 income set forth in the tax table applicable to the taxable year in 16 clause (ii) of paragraph (B) of paragraph one of subsection (a) of this 17 section less the sum of the tax table benefits in subparagraphs (A), (B) 18 and (C) of paragraph one of subsection (d-1) of this section and such 19 tax table benefits in subparagraphs (A) and (B) of this paragraph. The 20 fraction for this subparagraph is computed as follows: the numerator is 21 the lesser of fifty thousand dollars or the excess of New York adjusted 22 gross income for the taxable year over ten million dollars and the 23 denominator is fifty thousand dollars. Provided, however, this subpara- 24 graph shall not apply to taxpayers who are not subject to the 9.82 25 percent tax rate. 26 (D) The tax table benefit is the difference between (i) the amount of 27 taxable income set forth in the tax table in clause (ii) of subparagraph 28 (B) of paragraph one of subsection (a) of this section not subject to 29 the 10.32 percent rate of tax for the taxable year multiplied by such 30 rate and (ii) the dollar denominated tax for such amount of taxable 31 income set forth in the tax table applicable to the taxable year in 32 clause (ii) of subparagraph (B) of paragraph one of subsection (a) of 33 this section less the sum of the tax table benefits in subparagraphs 34 (A), (B) and (C) of paragraph one of subsection (d-1) of this section 35 and such tax table benefits in subparagraphs (A), (B) and (C) of this 36 paragraph. The fraction for this subparagraph is computed as follows: 37 the numerator is the lesser of fifty thousand dollars or the excess of 38 New York adjusted gross income for the taxable year over one hundred 39 million dollars and the denominator is fifty thousand dollars. 40 (E) Provided, however, the total tax prior to the application of any 41 tax credits shall not exceed the highest rate of tax set forth in the 42 tax tables in subsection (a) of this section multiplied by the taxpay- 43 er's taxable income. 44 (2) For resident heads of households, the supplemental tax shall be an 45 amount equal to the sum of the tax table benefits described in subpara- 46 graphs (A), (B), (C) and (D) of this paragraph multiplied by their 47 respective fractions in such subparagraphs. 48 (A) The tax table benefit is the difference between (i) the amount of 49 taxable income set forth in the tax table in clause (ii) of subparagraph 50 (B) of paragraph one of subsection (b) of this section not subject to 51 the 8.82 percent rate of tax for the taxable year multiplied by such 52 rate and (ii) the dollar denominated tax for such amount of taxable 53 income set forth in the tax table applicable to the taxable year in 54 clause (ii) of subparagraph (B) of paragraph one of subsection (b) of 55 this section less the sum of the tax table benefits in subparagraphs (A) 56 and (B) of paragraph two of subsection (d-1) of this section. The frac-S. 4511 4 1 tion for this subparagraph is computed as follows: the numerator is the 2 lesser of fifty thousand dollars or the excess of New York adjusted 3 gross income for the taxable year over one million dollars and the 4 denominator is fifty thousand dollars. 5 (B) The tax table benefit is the difference between (i) the amount of 6 taxable income set forth in the tax table in clause (ii) of subparagraph 7 (B) of paragraph one of subsection (b) of this section not subject to 8 the 9.32 percent rate of tax for the taxable year multiplied by such 9 rate and (ii) the dollar denominated tax for such amount of taxable 10 income set forth in the tax table applicable to the taxable year in 11 clause (ii) of subparagraph (B) of paragraph one of subsection (b) of 12 this section less the sum of the tax table benefits in subparagraphs (A) 13 and (B) of paragraph two of subsection (d-1) of this section and such 14 tax table benefit in subparagraph (A) of this paragraph. The fraction 15 for this subparagraph is computed as follows: the numerator is the less- 16 er of fifty thousand dollars or the excess of New York adjusted gross 17 income for the taxable year over five million dollars and the denomina- 18 tor is fifty thousand dollars. Provided, however, this subparagraph 19 shall not apply to taxpayers who are not subject to the 9.32 percent tax 20 rate. 21 (C) The tax table benefit is the difference between (i) the amount of 22 taxable income set forth in the tax table in clause (ii) of subparagraph 23 (B) of paragraph one of subsection (b) of this section not subject to 24 the 9.82 percent rate of tax for the taxable year multiplied by such 25 rate and (ii) the dollar denominated tax for such amount of taxable 26 income set forth in the tax table applicable to the taxable year in 27 clause (ii) of subparagraph (B) of paragraph one of subsection (b) of 28 this section less the sum of the tax table benefits in subparagraphs (A) 29 and (B) of paragraph two of subsection (d-1) of this section and such 30 tax table benefits in subparagraphs (A) and (B) of this paragraph. The 31 fraction for this subparagraph is computed as follows: the numerator is 32 the lesser of fifty thousand dollars or the excess of New York adjusted 33 gross income for the taxable year over ten million dollars and the 34 denominator is fifty thousand dollars. 35 (D) 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 (b) of this section not subject to 38 the 10.32 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 (b) of 42 this section less the sum of the tax table benefits in subparagraphs (A) 43 and (B) of paragraph two of subsection (d-1) of this section and such 44 tax table benefits in subparagraphs (A), (B) and (C) of this paragraph. 45 The fraction for this subparagraph is computed as follows: the numerator 46 is the lesser of fifty thousand dollars or the excess of New York 47 adjusted gross income for the taxable year over one hundred million 48 dollars and the denominator is fifty thousand dollars. 49 (E) Provided, however, the total tax prior to the application of any 50 tax credits shall not exceed the highest rate of tax set forth in the 51 tax tables in subsection (b) of this section multiplied by the taxpay- 52 er's taxable income. 53 (3) For resident unmarried individuals, resident married individuals 54 filing separate returns and resident estates and trusts, the supple- 55 mental tax shall be an amount equal to the sum of the tax table benefitsS. 4511 5 1 described in subparagraphs (A), (B), (C) and (D) of this paragraph 2 multiplied by their respective fractions in such subparagraphs. 3 (A) The tax table benefit is the difference between (i) the amount of 4 taxable income set forth in the tax table in clause (ii) of subparagraph 5 (B) of paragraph one of subsection (c) of this section not subject to 6 the 8.82 percent rate of tax for the taxable year multiplied by such 7 rate and (ii) the dollar denominated tax for such amount of taxable 8 income set forth in the tax table applicable to the taxable year in 9 clause (ii) of subparagraph (B) of paragraph one of subsection (c) of 10 this section less the sum of tax table benefits in subparagraphs (A) and 11 (B) of paragraph three of subsection (d-1) of this section. The frac- 12 tion is computed as follows: the numerator is the lesser of fifty thou- 13 sand dollars or the excess of New York adjusted gross income for the 14 taxable year over one million dollars and the denominator is fifty thou- 15 sand dollars. 16 (B) The tax table benefit is the difference between (i) the amount of 17 taxable income set forth in the tax table in clause (ii) of subparagraph 18 (B) of paragraph one of subsection (c) of this section not subject to 19 the 9.32 percent rate of tax for the taxable year multiplied by such 20 rate and (ii) the dollar denominated tax for such amount of taxable 21 income set forth in the tax table applicable to the taxable year in 22 clause (ii) of subparagraph (B) of paragraph one of subsection (c) of 23 this section less the sum of the tax table benefits in subparagraphs (A) 24 and (B) of paragraph three of subsection (d-1) of this section and such 25 tax table benefit in subparagraph (A) of this paragraph. The fraction 26 for this subparagraph is computed as follows: the numerator is the less- 27 er of fifty thousand dollars or the excess of New York adjusted gross 28 income for the taxable year over five million dollars and the denomina- 29 tor is fifty thousand dollars. Provided, however, this subparagraph 30 shall not apply to taxpayers who are not subject to the 9.32 percent tax 31 rate. 32 (C) The tax table benefit is the difference between (i) the amount of 33 taxable income set forth in the tax table in clause (ii) of subparagraph 34 (B) of paragraph one of subsection (c) of this section not subject to 35 the 9.82 percent rate of tax for the taxable year multiplied by such 36 rate and (ii) the dollar denominated tax for such amount of taxable 37 income set forth in the tax table applicable to the taxable year in 38 clause (ii) of subparagraph (B) of paragraph one of subsection (c) of 39 this section less the sum of the tax table benefits in subparagraphs (A) 40 and (B) of paragraph three of subsection (d-1) of this section and such 41 tax table benefits in subparagraphs (A) and (B) of this paragraph. The 42 fraction for this subparagraph is computed as follows: the numerator is 43 the lesser of fifty thousand dollars or the excess of New York adjusted 44 gross income for the taxable year over ten million dollars and the 45 denominator is fifty thousand dollars. 46 (D) The tax table benefit is the difference between (i) the amount of 47 taxable income set forth in the tax table in clause (ii) of subparagraph 48 (B) of paragraph one of subsection (c) of this section not subject to 49 the 10.32 percent rate of tax for the taxable year multiplied by such 50 rate and (ii) the dollar denominated tax for such amount of taxable 51 income set forth in the tax table applicable to the taxable year in 52 clause (ii) of subparagraph (B) of paragraph one of subsection (c) of 53 this section less the sum of the tax table benefits in subparagraphs (A) 54 and (B) of paragraph three of subsection (d-1) of this section and such 55 tax table benefits in subparagraphs (A), (B) and (C) of this paragraph. 56 The fraction for this subparagraph is computed as follows: the numeratorS. 4511 6 1 is the lesser of fifty thousand dollars or the excess of New York 2 adjusted gross income for the taxable year over one hundred million 3 dollars and the denominator is fifty thousand dollars. 4 (E) Provided, however, the total tax prior to the application of any 5 tax credits shall not exceed the highest rate of tax set forth in the 6 tax tables in subsection (c) of this section multiplied by the taxpay- 7 er's taxable income. 8 § 5. Subsection (f) of section 614 of the tax law, as amended by 9 section 11 of part FF of chapter 59 of the laws of 2013, is amended to 10 read as follows: 11 (f) Adjusted standard deduction. For taxable years beginning after two 12 thousand [seventeen] nineteen, the standard deductions set forth in this 13 section shall be the amounts set forth in this section adjusted by the 14 cost of living adjustment prescribed in section six hundred one-a of 15 this part for tax years two thousand thirteen [through two thousand16seventeen] and thereafter. 17 § 6. Section 171-a of the tax law, as separately amended by chapters 18 481 and 484 of the laws of 1981, is amended by adding a new subdivision 19 3 to read as follows: 20 3. Notwithstanding subdivision one of this section or any other 21 provision of law to the contrary, the taxes imposed pursuant to clause 22 (ix) of subparagraph (B) of paragraph one of subsection (a), clause (ix) 23 of subparagraph (B) of paragraph one of subsection (b), and clause (ix) 24 of subparagraph (B) of paragraph one of subsection (c) of section six 25 hundred one of this chapter, reduced by an amount for administrative 26 costs, shall be deposited to the credit of the New York city housing 27 authority, as such taxes are received. The amount for administrative 28 costs shall be determined by the commissioner to represent reasonable 29 costs of the department of taxation and finance in administering, 30 collecting, determining and distributing such taxes. Of the total reven- 31 ue collected or received under such sections of this chapter, the comp- 32 troller shall retain in his hands such amount as the commissioner may 33 determine to be necessary for refunds or reimbursements under such 34 clauses of such section of this chapter out of which amount the comp- 35 troller shall pay any refunds or reimbursements to which taxpayers shall 36 be entitled under provisions of such sections. The commissioner and the 37 comptroller shall maintain a system of accounts showing the amount of 38 revenue collected or received from each of the taxes imposed by such 39 sections. 40 § 7. This act shall take effect immediately and shall apply to taxable 41 years beginning on or after January 1, 2020.
