Bill Text: NY S04885 | 2019-2020 | General Assembly | Introduced


Bill Title: Creates a tax surcharge to fund an omnibus education financing plan in New York city; also provides for a maintenance of effort requirement.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2019-03-28 - REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS [S04885 Detail]

Download: New_York-2019-S04885-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          4885
                               2019-2020 Regular Sessions
                    IN SENATE
                                     March 28, 2019
                                       ___________
        Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
          printed to be committed to the Committee on Investigations and Govern-
          ment Operations
        AN ACT to amend the tax law and the education law, in relation to educa-
          tion tax surcharge
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1.  Legislative  intent.  The  legislature  hereby  finds and
     2  declares that an omnibus education financing plan is essential to effec-
     3  tively and comprehensively provide a sound  basic  education  to  public
     4  school  students  in  the city of New York. The "emergency in education"
     5  surcharge tax, grounded in  the  need  to  provide  immediate,  adequate
     6  support  for  public  education in the city of New York, is such a plan.
     7  The plan recognizes and addresses several factors:  (1)  that  increased
     8  operating aid is necessary to ensure New York city students are prepared
     9  to  achieve the higher standards implemented by the New York state board
    10  of regents, (2) that the city of New York is  committed  to  shouldering
    11  its  "fair  share"  of  the  cost  of  educating  students in its public
    12  schools, and (3) that students currently attending public schools in the
    13  city of New York cannot afford to  wait  as  litigation  concerning  the
    14  state of New York's education financing system is decided by the courts.
    15  The  mayor  and  the city council have agreed that the financing program
    16  provided for in this act will provide the funds necessary  to  implement
    17  the  "emergency  in  education"  plan.  The state must authorize the new
    18  revenue sources requested by the city of New York to enable the city  to
    19  effectively educate public school students.
    20    §  2. The tax law is amended by adding a new section 1304-e to read as
    21  follows:
    22    § 1304-e. Emergency in education tax surcharge. (a) In addition to the
    23  taxes authorized by any other section of this article, any city imposing
    24  such taxes is hereby authorized and empowered to adopt and  amend  local
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10473-01-9

        S. 4885                             2
     1  laws  imposing  in any such city tax surcharges on (1) the New York city
     2  adjusted gross income, and  (2)  the  tax  due  under  section  thirteen
     3  hundred  four  of this article of every city resident individual, estate
     4  and  trust,  as set forth in subsections (b), (c), (d), (e), (f) and (g)
     5  of this section.
     6    (b) For taxable years beginning in  two  thousand  nineteen,  the  tax
     7  surcharges  imposed  pursuant  to the authority of this section shall be
     8  determined as follows: (1) a tax of one percent on the  portion  of  the
     9  New York city source adjusted gross income of every resident individual,
    10  estate  or trust and of every nonresident or part-year resident individ-
    11  ual, estate or trust, above one hundred thousand dollars, (2) a  tax  of
    12  one  percent  on  the  portion of such income above two hundred thousand
    13  dollars, and (3) a surcharge of  twelve  and  one-half  percent  on  the
    14  amount  of  tax due by every resident individual, estate or trust and of
    15  every nonresident or part-year  resident  individual,  estate  or  trust
    16  pursuant to section thirteen hundred four of this article.
    17    (c)  For  taxable  years  beginning  in  two  thousand twenty, the tax
    18  surcharges imposed pursuant to the authority of this  section  shall  be
    19  determined  as  follows:  (1) a tax of nine-tenths of one percent on the
    20  portion of the New York city source adjusted gross income of every resi-
    21  dent individual, estate or trust and of every nonresident  or  part-year
    22  resident  individual,  estate  or  trust,  above  one  hundred  thousand
    23  dollars, (2) a tax of nine-tenths of one percent on the portion of  such
    24  income above two hundred thousand dollars, and (3) a surcharge of eleven
    25  and one-quarter percent on the amount of tax due by every resident indi-
    26  vidual,  estate  or trust and of every nonresident or part-year resident
    27  individual, estate or trust pursuant to section thirteen hundred four of
    28  this article.
    29    (d) For taxable years beginning in two thousand  twenty-one,  the  tax
    30  surcharges  imposed  pursuant  to the authority of this section shall be
    31  determined as follows: (1) a tax of eight-tenths of one percent  on  the
    32  portion of the New York city source adjusted gross income of every resi-
    33  dent  individual,  estate or trust and of every nonresident or part-year
    34  resident  individual,  estate  or  trust,  above  one  hundred  thousand
    35  dollars, (2) a tax of eight-tenths of one percent on the portion of such
    36  income  above  two  hundred thousand dollars, and (3) a surcharge of ten
    37  percent on the amount of tax due by every resident individual, estate or
    38  trust and of every nonresident or part-year resident individual,  estate
    39  or trust pursuant to section thirteen hundred four of this article.
    40    (e)  For  taxable  years beginning in two thousand twenty-two, the tax
    41  surcharges imposed pursuant to the authority of this  section  shall  be
    42  determined  as  follows: (1) a tax of seven-tenths of one percent on the
    43  portion of the New York city source adjusted gross income of every resi-
    44  dent individual, estate or trust and of every nonresident  or  part-year
    45  resident  individual,  estate  or  trust,  above  one  hundred  thousand
    46  dollars, (2) a tax of seven-tenths of one percent on the portion of such
    47  income above two hundred thousand dollars, and (3) a surcharge of  eight
    48  and  three-quarters  percent  on the amount of tax due by every resident
    49  individual, estate or trust and of every nonresident or part-year  resi-
    50  dent  individual,  estate  or trust pursuant to section thirteen hundred
    51  four of this article.
    52    (f) For taxable years beginning in two thousand twenty-three, the  tax
    53  surcharges  imposed  pursuant  to the authority of this section shall be
    54  determined as follows: (1) a tax of six-tenths of  one  percent  on  the
    55  portion of the New York city source adjusted gross income of every resi-
    56  dent  individual,  estate or trust and of every nonresident or part-year

        S. 4885                             3
     1  resident  individual,  estate  or  trust,  above  one  hundred  thousand
     2  dollars,  (2)  a tax of six-tenths of one percent on the portion of such
     3  income above two hundred thousand dollars, and (3) a surcharge of  seven
     4  and one-half percent on the amount of tax due by every resident individ-
     5  ual,  estate  or  trust  and  of every nonresident or part-year resident
     6  individual, estate or trust pursuant to section thirteen hundred four of
     7  this article.
     8    (g) For taxable years beginning in two thousand twenty-four and there-
     9  after, the tax surcharges imposed pursuant  to  the  authority  of  this
    10  section  shall  be  determined  as follows: (1) a tax of one-half of one
    11  percent on the portion of the New York city source adjusted gross income
    12  of every resident individual, estate or trust and of  every  nonresident
    13  or  part-year  resident  individual,  estate or trust, above one hundred
    14  thousand dollars, (2) a tax of one-half of one percent on the portion of
    15  such income above two hundred thousand dollars, and (3) a  surcharge  of
    16  six  and  one-quarter percent on the amount of tax due by every resident
    17  individual, estate or trust and of every nonresident or part-year  resi-
    18  dent  individual,  estate  or trust pursuant to section thirteen hundred
    19  four of this article.
    20    (h) The commissioner in cooperation with the comptroller  shall  main-
    21  tain  such  records  as  are  necessary to determine what portion of the
    22  income tax revenues collected on behalf of a city imposing taxes  pursu-
    23  ant  to  this article are attributable to the emergency in education tax
    24  surcharge established by this section and shall transmit such  funds  to
    25  such  city  in  a manner that allows such funds to be clearly segregated
    26  from all other funds and accounted for separately. Such city shall main-
    27  tain such funds in a separate fund to be called the emergency in  educa-
    28  tion  tax surcharge revenue account and shall publish monthly reports on
    29  such fund's receipts, disbursements and balances in a manner  that  will
    30  allow  for a clear understanding of the financial condition of such fund
    31  and of the uses that have been made of the fund's resources.   Disburse-
    32  ments from this fund shall be in addition to the funds that such city is
    33  required to make for educational purposes pursuant to subdivision five-c
    34  of  section  twenty-five hundred seventy-six of the education law and no
    35  disbursements from this fund or other financial  transactions  involving
    36  this  fund shall be taken into consideration in any manner whatsoever in
    37  determining such city's compliance with the requirements of such  subdi-
    38  vision  five-c  of section twenty-five hundred seventy-six of the educa-
    39  tion law.
    40    (i) Any monies generated by this section  shall  be  used  for  public
    41  education purposes only, including hiring and retaining teachers, teach-
    42  er  training, decreasing class sizes, and equipping and building facili-
    43  ties.
    44    § 3. The education law is amended by adding a new section 2589 to read
    45  as follows:
    46    § 2589. Emergency in education operating aid. 1. In  addition  to  the
    47  general  operating  aid authorized by any other section of law, any city
    48  imposing an emergency in education tax  surcharge  pursuant  to  section
    49  thirteen  hundred  four-e of the tax law shall receive additional appor-
    50  tionments of public money for general  operating  aid  purposes,  to  be
    51  known as emergency in education operating aid, for school years commenc-
    52  ing  on and after July first, two thousand twenty as set forth in subdi-
    53  visions two, three, four, five, six and  seven  of  this  section.  Such
    54  apportionments shall be in addition to and not in lieu of the apportion-
    55  ments  of  public  money to such city for general operating aid purposes
    56  made available to such city  pursuant  to  other  sections  of  law  and

        S. 4885                             4
     1  provided  that  the amounts made available to such city pursuant to such
     2  other provisions of law shall not in any school year  commencing  on  or
     3  after  July  first,  two  thousand  twenty  be less than the amount made
     4  available  to such city for such purposes, with the categories of aid to
     5  be covered by this requirement to be  determined  by  the  commissioner,
     6  during  the  school year commencing on July first, two thousand nineteen
     7  times a number determined by dividing the consumer price index  for  all
     8  urban  consumers for the calendar year preceding the commencement of the
     9  school year for which  such  apportionment  is  being  provided  by  the
    10  consumer  price  index  for  all  urban  consumers  for the two thousand
    11  sixteen calendar year.
    12    2. For the school year commencing on July first, two thousand  twenty,
    13  such  emergency  in  education operating aid shall be an amount equal to
    14  twenty percent of the amount transmitted to  such  a  city  pursuant  to
    15  subsection  (h) of section thirteen hundred four-e of the tax law during
    16  the two thousand sixteen calendar year.
    17    3. For the school year commencing on July first, two thousand  twenty-
    18  one,  such emergency in education operating aid shall be an amount equal
    19  to twenty percent of the amount transmitted to such a city  pursuant  to
    20  subsection  (h) of section thirteen hundred four-e of the tax law during
    21  the two thousand seventeen calendar year.
    22    4.  For the school year commencing on July first, two  thousand  twen-
    23  ty-two,  such  emergency  in  education operating aid shall be an amount
    24  equal to forty percent of the amount transmitted to such a city pursuant
    25  to subsection (h) of section thirteen hundred  four-e  of  the  tax  law
    26  during the two thousand eighteen calendar year.
    27    5.  For the school year commencing on July first, two thousand twenty-
    28  three, such emergency in education operating  aid  shall  be  an  amount
    29  equal to sixty percent of the amount transmitted to such a city pursuant
    30  to  subsection  (h)  of  section  thirteen hundred four-e of the tax law
    31  during the two thousand nineteen calendar year.
    32    6. For the school year commencing on July first, two thousand  twenty-
    33  four, such emergency in education operating aid shall be an amount equal
    34  to  eighty  percent of the amount transmitted to such a city pursuant to
    35  subsection (h) of section thirteen hundred four-e of the tax law  during
    36  the two thousand twenty calendar year.
    37    7.  For  the school year commencing on and after July first, two thou-
    38  sand twenty-five, such emergency in education operating aid shall be  an
    39  amount  equal  to  the  amount  transmitted  to  such a city pursuant to
    40  subsection (h) of section thirteen hundred four-e of the tax law  during
    41  the preceding calendar year.
    42    8.  The  moneys  generated  by  this  section shall be used for public
    43  education purposes only, including hiring and retaining teachers, teach-
    44  er training, decreasing class sizes and equipping  and  building  class-
    45  rooms.
    46    §  4.  Section  2576  of  the education law is amended by adding a new
    47  subdivision 5-c to read as follows:
    48    5-c. a. If the total amount requested in such estimate is  not  appro-
    49  priated,  each  city having a population of one million or more inhabit-
    50  ants shall appropriate an amount not less than the greater of:
    51    (i) the product of the city share in  the  base  year  and  the  pupil
    52  change  index, as such terms are defined in paragraph c of this subdivi-
    53  sion, or
    54    (ii) an amount equal to the average proportion of  the  total  expense
    55  budget  of  such  city,  as  amended,  not including the portion of such
    56  expense budget equal to the total state and federal aid appropriated for

        S. 4885                             5
     1  education purposes, appropriated for the purposes of  such  city  school
     2  district  in  the  three fiscal years of such city immediately preceding
     3  the year for which said estimate is filed.
     4    b.  If  the total amount requested in the estimate exceeds the greater
     5  of the two amounts computed in paragraph a  of  this  subdivision,  such
     6  excess  shall  be  subject  to such consideration and such action by the
     7  appropriate city legislative body and/or city officer as that taken upon
     8  other departmental estimates.  The city is authorized to make additional
     9  appropriations for educational purposes authorized by this chapter.
    10    c. For the purposes of this subdivision, the terms:
    11    (i) "city share" shall mean:  the  total  appropriation  of  any  city
    12  having  a  population  of one million or more inhabitants for elementary
    13  and secondary education purposes as defined by  the  commissioner  minus
    14  the  total  amount  of federal and state aid appropriated for elementary
    15  and secondary education purposes;
    16    (ii) "base year" shall mean: the fiscal year immediately preceding the
    17  fiscal year for which the estimate is filed;
    18    (iii) "pupil change index" shall mean: the ratio computed by  dividing
    19  the  total public school enrollment of the city school district, includ-
    20  ing all students wholly or partially supported by such city's funds,  in
    21  the  year  in which the estimate is filed by the enrollment of such city
    22  school district in the year immediately preceding the year in which  the
    23  estimate is filed.
    24    § 5. This act shall take effect immediately.
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