Bill Text: NY S05954 | 2019-2020 | General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relates to the business income rate and expanding the small business subtraction modification.

Spectrum: Moderate Partisan Bill (Democrat 6-1)

Status: (Introduced - Dead) 2020-03-03 - REPORTED AND COMMITTED TO FINANCE [S05954 Detail]

Download: New_York-2019-S05954-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          5954

                               2019-2020 Regular Sessions

                    IN SENATE

                                      May 16, 2019
                                       ___________

        Introduced  by  Sen.  KAPLAN -- 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  the  business  income  base
          rate and expanding the small business subtraction modification

          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 twenty, if the business income base is not more  than  two  hundred
    18  ninety thousand dollars the amount shall be four percent of the business
    19  income base; if the business income base is more than two hundred ninety
    20  thousand  dollars but not over three hundred ninety thousand dollars the
    21  amount shall be the sum of (1) eleven thousand six hundred dollars,  (2)
    22  six  and one-half percent of the excess of the business income base over
    23  two hundred ninety thousand dollars but not over  three  hundred  ninety
    24  thousand dollars and (3) eighteen and thirteen hundredths percent of the

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08516-01-9
        S. 5954                             2

     1  excess  of  the  business  income base over three hundred fifty thousand
     2  dollars but not over three hundred ninety thousand dollars;
     3    §  2. Paragraph 39 of subsection (c) of section 612 of the tax law, as
     4  added by section 1 of part Y of chapter 59  of  the  laws  of  2013,  is
     5  amended to read as follows:
     6    (39)  (A)  In  the  case  of  a  taxpayer who is a small business or a
     7  taxpayer who is a member, partner, or shareholder of a limited liability
     8  company, partnership, or New York S corporation, respectively, that is a
     9  small business, who or which has business income and/or farm  income  as
    10  defined  in  the  laws  of the United States, an amount equal to [three]
    11  fifteen percent of the net items of income,  gain,  loss  and  deduction
    12  attributable  to  such  business  or farm entering into federal adjusted
    13  gross income, but not less than zero[, for taxable years beginning after
    14  two thousand thirteen, an  amount  equal  to  three  and  three-quarters
    15  percent  of  the net items of income, gain, loss and deduction attribut-
    16  able to such business or  farm  entering  into  federal  adjusted  gross
    17  income,  but  not  less than zero, for taxable years beginning after two
    18  thousand fourteen, and an amount equal to five percent of the net  items
    19  of  income,  gain,  loss  and deduction attributable to such business or
    20  farm entering into federal adjusted gross  income,  but  not  less  than
    21  zero, for taxable years beginning after two thousand fifteen].
    22    (B)  (i)  For  the purposes of this paragraph, the term small business
    23  shall mean: (I) a sole proprietor [or a farm business] who  employs  one
    24  or  more persons during the taxable year and who has net business income
    25  or net farm income of less than two hundred fifty thousand  dollars,  or
    26  (II)  a limited liability company, partnership or New York S corporation
    27  that during the taxable year employs one or more  persons  and  has  New
    28  York  gross  business income attributable to a non-farm business that is
    29  greater than zero but  less  than  one  million  five  hundred  thousand
    30  dollars  or  net  farm  income  attributable  to a farm business that is
    31  greater than zero but less than two hundred fifty thousand dollars.
    32    (ii) For purposes of this paragraph, the term New York gross  business
    33  income  shall  mean: (I) in the case of a limited liability company or a
    34  partnership New York source gross income as defined in subparagraph  (B)
    35  of  paragraph three of subsection (c) of section six hundred fifty-eight
    36  of this article, and, (II) in the case of a New York S corporation,  New
    37  York  receipts  included  in  the  numerator of the apportionment factor
    38  determined under section two hundred ten-A of this chapter for the taxa-
    39  ble year.
    40    (C) To qualify for this modification in relation to a  non-farm  small
    41  business  that is a limited liability company, partnership or New York S
    42  corporation, the taxpayer's income  attributable  to  the  net  business
    43  income from its ownership interests in non-farm limited liability compa-
    44  nies,  partnerships  or  New  York  S corporations must be less than two
    45  hundred fifty thousand dollars.
    46    § 3. This act shall take effect immediately and shall apply to taxable
    47  years beginning on or after January 1, 2020.