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 3-0)
Status: (Introduced - Dead) 2020-01-08 - REFERRED TO BUDGET AND REVENUE [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. LBD09982-03-9S. 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 suchS. 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 inS. 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.S. 4511--A 5 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 thousand19seventeen] 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.
