Bill Text: NY S08329 | 2019-2020 | General Assembly | Introduced


Bill Title: Relates to extending the top state income tax rate for those that make $5,000,000 or more and with such additional funds provides for additional school aid for the general support of public schools and for additional operating support for SUNY and CUNY.

Spectrum: Partisan Bill (Democrat 12-0)

Status: (Introduced - Dead) 2020-05-11 - REFERRED TO BUDGET AND REVENUE [S08329 Detail]

Download: New_York-2019-S08329-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          8329

                    IN SENATE

                                      May 11, 2020
                                       ___________

        Introduced  by  Sens. MAYER, STAVISKY -- read twice and ordered printed,
          and when printed to be committed to the Committee on Budget and Reven-
          ue

        AN ACT to amend the tax law, in relation  to  extending  the  top  state
          income  tax  rate;  to  amend  the  state  finance law, in relation to
          providing  additional  funding  for  the  general  support  of  public
          schools;  and  to amend the state finance law, in relation to creating
          the supplemental public higher education fund

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  Clauses (iii) and (iv) of subparagraph (B) of paragraph 1
     2  of subsection (a) of section 601 of the tax law, as amended by section 1
     3  of part P of chapter 59 of the laws of 2019,  are  amended  to  read  as
     4  follows:
     5    (iii) For taxable years beginning in two thousand twenty the following
     6  rates shall apply:
     7  If the New York taxable income is:    The tax is:
     8  Not over $17,150                      4% of the New York taxable income
     9  Over $17,150 but not over $23,600     $686 plus 4.5% of excess over
    10                                        $17,150
    11  Over $23,600 but not over $27,900     $976 plus 5.25% of excess over
    12                                        $23,600
    13  Over $27,900 but not over $43,000     $1,202 plus 5.9% of excess over
    14                                        $27,900
    15  Over $43,000 but not over $161,550    $2,093 plus 6.09% of excess over
    16                                        $43,000
    17  Over $161,550 but not over $323,200   $9,313 plus 6.41% of excess over
    18                                        $161,550
    19  Over $323,200 but not over            $19,674 plus 6.85% of excess
    20  $2,155,350                            $323,200 over
    21  Over $2,155,350 but not over          $145,177 plus 8.82% of excess over
    22  $5,000,000                            $2,155,350
    23  Over $5,000,000                       $396,076 plus 10.9% of excess over
    24                                        $5,000,000

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD16290-05-0

        S. 8329                             2

     1    (iv)  For  taxable  years  beginning  in  two  thousand twenty-one the
     2  following rates shall apply:
     3  If the New York taxable income is:    The tax is:
     4  Not over $17,150                      4% of the New York taxable income
     5  Over $17,150 but not over $23,600     $686 plus 4.5% of excess over
     6                                        $17,150
     7  Over $23,600 but not over $27,900     $976 plus 5.25% of excess over
     8                                        $23,600
     9  Over $27,900 but not over $43,000     $1,202 plus 5.9% of excess over
    10                                        $27,900
    11  Over $43,000 but not over $161,550    $2,093 plus 5.97% of excess over
    12                                        $43,000
    13  Over $161,550 but not over $323,200   $9,170 plus 6.33% of excess over
    14                                        $161,550
    15  Over $323,200 but not over            $19,403 plus 6.85% of excess
    16  $2,155,350                            over  $323,200
    17  Over $2,155,350 but not over          $144,905 plus 8.82% of excess over
    18  $5,000,000                            $2,155,350
    19  Over $5,000,000                       $395,803 plus 10.9% of excess over
    20                                        $5,000,000
    21    §  2.  Clauses  (iii)  and  (iv) of subparagraph (B) of paragraph 1 of
    22  subsection (b) of section 601 of the tax law, as amended by section 2 of
    23  part P of chapter 59 of the  laws  of  2019,  are  amended  to  read  as
    24  follows:
    25    (iii) For taxable years beginning in two thousand twenty the following
    26  rates shall apply:
    27  If the New York taxable income is:    The tax is:
    28  Not over $12,800                      4% of the New York taxable income
    29  Over $12,800 but not over $17,650     $512 plus 4.5% of excess over $12,800
    30  Over $17,650 but not over $20,900     $730 plus 5.25% of excess over
    31                                        $17,650
    32  Over $20,900 but not over $32,200     $901 plus 5.9% of excess over $20,900
    33  Over $32,200 but not over $107,650    $1,568 plus 6.09% of excess over
    34                                        $32,200
    35  Over $107,650 but not over $269,300   $6,162 plus 6.41% of excess over
    36                                        $107,650
    37  Over $269,300 but not over            $16,524 plus 6.85% of
    38  $1,616,450                            excess over $269,300
    39  Over $1,616,450 but not over          $108,804 plus 8.82% of excess over
    40  $5,000,000                            $1,616,450
    41  Over $5,000,000                       $407,233 plus 10.9% of excess over
    42                                        $5,000,000
    43    (iv)  For  taxable  years  beginning  in  two  thousand twenty-one the
    44  following rates shall apply:
    45  If the New York taxable income is:    The tax is:
    46  Not over $12,800                      4% of the New York taxable income
    47  Over $12,800 but not over $17,650     $512 plus 4.5% of excess over
    48                                        $12,800
    49  Over $17,650 but not over $20,900     $730 plus 5.25% of excess over
    50                                        $17,650
    51  Over $20,900 but not over $32,200     $901 plus 5.9% of excess over
    52                                        $20,900
    53  Over $32,200 but not over $107,650    $1,568 plus 5.97% of excess over
    54                                        $32,200
    55  Over $107,650 but not over $269,300   $6,072 plus 6.33% of excess over

        S. 8329                             3

     1                                        $107,650
     2  Over $269,300 but not over             $16,304 plus 6.85% of
     3  $1,616,450                            excess over $269,300
     4  Over $1,616,450 but not over          $108,584 plus 8.82% of excess over
     5  $5,000,000                            $1,616,450
     6  Over $5,000,000                       $407,013 plus 10.9% of excess over
     7                                        $5,000,000
     8    §  3.  Clauses  (iii)  and  (iv) of subparagraph (B) of paragraph 1 of
     9  subsection (c) of section 601 of the tax law, as amended by section 3 of
    10  part P of chapter 59 of the  laws  of  2019,  are  amended  to  read  as
    11  follows:
    12    (iii) For taxable years beginning in two thousand twenty the following
    13  rates shall apply:
    14  If the New York taxable income is:    The tax is:
    15  Not over $8,500                       4% of the New York taxable income
    16  Over $8,500 but not over $11,700      $340 plus 4.5% of excess over
    17                                        $8,500
    18  Over $11,700 but not over $13,900     $484 plus 5.25% of excess over
    19                                        $11,700
    20  Over $13,900 but not over $21,400     $600 plus 5.9% of excess over
    21                                        $13,900
    22  Over $21,400 but not over $80,650     $1,042 plus 6.09% of excess over
    23                                        $21,400
    24  Over $80,650 but not over $215,400    $4,650 plus 6.41% of excess over
    25                                        $80,650
    26  Over $215,400 but not over            $13,288 plus 6.85% of excess
    27  $1,077,550                            over $215,400
    28  Over $1,077,550 but not over          $72,345 plus 8.82% of excess over
    29  $5,000,000                            $1,077,550
    30  Over $5,000,000                       $418,305 plus 10.9% of excess over
    31                                        $5,000,000
    32    (iv)  For  taxable  years  beginning  in  two  thousand twenty-one the
    33  following rates shall apply:
    34  If the New York taxable income is:    The tax is:
    35  Not over $8,500                       4% of the New York taxable income
    36  Over $8,500 but not over $11,700      $340 plus 4.5% of excess over
    37                                        $8,500
    38  Over $11,700 but not over $13,900     $484 plus 5.25% of excess over
    39                                        $11,700
    40  Over $13,900 but not over $21,400     $600 plus 5.9% of excess over
    41                                        $13,900
    42  Over $21,400 but not over $80,650     $1,042 plus 5.97% of excess over
    43                                        $21,400
    44  Over $80,650 but not over $215,400    $4,579 plus 6.33% of excess over
    45                                        $80,650
    46  Over $215,400 but not over            $13,109 plus 6.85% of excess
    47  $1,077,550                            over $215,400
    48  Over $1,077,550 but not over          $72,166 plus 8.82% of excess over
    49  $5,000,000                             $1,077,550
    50  Over $5,000,000                       $418,126 plus 10.9% of excess over
    51                                        $5,000,000
    52    § 4. Section 171-a of the tax law is amended by adding a new  subdivi-
    53  sion 3 to read as follows:
    54    3.  Notwithstanding  subdivision  one  of  this  section  or any other
    55  provision of law to the contrary, eighty-five  percent  of  any  revenue
    56  derived  from  an  increase  in  the  taxes  imposed on income over five

        S. 8329                             4

     1  million dollars pursuant to section six  hundred  one  of  this  chapter
     2  attributable  to  the  difference  in the rate of such taxes for taxable
     3  year two thousand twenty and the rate of such taxes for taxable year two
     4  thousand nineteen and the difference in the rate of such taxes for taxa-
     5  ble  year two thousand twenty-one and the rate of such taxes for taxable
     6  year two thousand nineteen shall be deposited in the state lottery fund,
     7  created pursuant to section ninety-two-c of the state  finance  law,  as
     8  such  taxes are received.  The remaining fifteen percent of such derived
     9  revenue shall be deposited in the supplemental public  higher  education
    10  fund,  created  pursuant to section seventy-eight-c of the state finance
    11  law.  The amount for administrative costs shall  be  determined  by  the
    12  commissioner to represent reasonable costs of the department in adminis-
    13  tering,  collecting,  determining  and  distributing  such taxes. Of the
    14  total revenue collected or received under such sections of this chapter,
    15  the comptroller shall retain in his or her  hands  such  amount  as  the
    16  commissioner may determine to be necessary for refunds or reimbursements
    17  under  such sections of this chapter out of which amount the comptroller
    18  shall pay any refunds or reimbursements  to  which  taxpayers  shall  be
    19  entitled  under  provisions  of  such sections. The commissioner and the
    20  comptroller shall maintain a system of accounts showing  the  amount  of
    21  revenue  collected  or  received  from each of the taxes imposed by such
    22  sections.
    23    § 5.  Section 601 of the tax law is amended by adding a new subsection
    24  (d-2) to read as follows:
    25    (d-2) Alternative tax table benefit recapture. For taxable  years  two
    26  thousand  twenty  and  two  thousand twenty-one for a taxpayer whose New
    27  York taxable income is  over  $5,000,000,  there  is  hereby  imposed  a
    28  supplemental  tax  in addition to the tax imposed under subsections (a),
    29  (b), (c) and (d-1) of this section for the purpose  of  recapturing  the
    30  benefit  of  the  tax tables contained in such subsections. During these
    31  taxable years, any reference in this chapter to subsection (d)  of  this
    32  section shall be read as a reference to this subsection.
    33    (1) For resident married individuals filing joint returns and resident
    34  surviving  spouses, the supplemental tax shall be an amount equal to the
    35  sum of the tax table benefit  in  subparagraph  (A)  of  this  paragraph
    36  multiplied by the respective fraction in such subparagraph.
    37    (A)  The tax table benefit is the difference between (i) the amount of
    38  taxable income set forth in the tax table in paragraph one of subsection
    39  (a) of this section not subject to the 10.9 percent rate of tax for  the
    40  taxable year multiplied by such rate and (ii) the dollar denominated tax
    41  for  such amount of taxable income set forth in the tax table applicable
    42  to the taxable year in paragraph one of subsection (a) of  this  section
    43  less the sum of the tax table benefits in subparagraphs (A), (B) and (C)
    44  of  paragraph one of subsection (d-1) of this section.  The fraction for
    45  this subparagraph is computed as follows: the numerator is the lesser of
    46  fifty thousand dollars or the excess of New York adjusted  gross  income
    47  for  the  taxable  year over five million dollars and the denominator is
    48  fifty thousand dollars. Provided, however, this subparagraph  shall  not
    49  apply to taxpayers who are not subject to the 10.9 percent tax rate.
    50    (B)  Provided,  however, the total tax prior to the application of any
    51  tax credits shall not exceed the highest rate of tax set  forth  in  the
    52  tax  tables  in subsection (a) of this section multiplied by the taxpay-
    53  er's taxable income.
    54    (2) For resident heads of households, the supplemental tax shall be an
    55  amount equal to the sum of the tax table benefit described  in  subpara-

        S. 8329                             5

     1  graph  (A)  of  this  paragraph multiplied by the respective fraction in
     2  such subparagraph.
     3    (A)  The tax table benefit is the difference between (i) the amount of
     4  taxable income set forth in the tax table in paragraph one of subsection
     5  (b) of this section not subject to the 10.9 percent rate of tax for  the
     6  taxable year multiplied by such rate and (ii) the dollar denominated tax
     7  for  such amount of taxable income set forth in the tax table applicable
     8  to the taxable year in paragraph one of subsection (b) of  this  section
     9  less  the  sum of the tax table benefits in subparagraphs (A) and (B) of
    10  paragraph two of subsection (d-1) of this section. The fraction for this
    11  subparagraph is computed as follows: the  numerator  is  the  lesser  of
    12  fifty  thousand  dollars or the excess of New York adjusted gross income
    13  for the taxable year over five million dollars and  the  denominator  is
    14  fifty  thousand  dollars. Provided, however, this subparagraph shall not
    15  apply to taxpayers who are not subject to the 10.9 percent tax rate.
    16    (B) Provided, however, the total tax prior to the application  of  any
    17  tax  credits  shall  not exceed the highest rate of tax set forth in the
    18  tax tables in subsection (b) of this section multiplied by  the  taxpay-
    19  er's taxable income.
    20    (3)  For  resident unmarried individuals, resident married individuals
    21  filing separate returns and resident estates  and  trusts,  the  supple-
    22  mental tax shall be an amount equal to the sum of the tax table benefits
    23  described  in  subparagraph  (A)  of  this  paragraph  multiplied by the
    24  respective fractions in such subparagraph.
    25    (A) The tax table benefit is the difference between (i) the amount  of
    26  taxable income set forth in the tax table in paragraph one of subsection
    27  (c)  of this section not subject to the 10.9 percent rate of tax for the
    28  taxable year multiplied by such rate and (ii) the dollar denominated tax
    29  for such amount of taxable income set forth in the tax table  applicable
    30  to  the  taxable year in paragraph one of subsection (c) of this section
    31  less the sum of the tax table benefits in subparagraphs (A) and  (B)  of
    32  paragraph  three  of  subsection (d-1) of this section. The fraction for
    33  this subparagraph is computed as follows: the numerator is the lesser of
    34  fifty thousand dollars or the excess of New York adjusted  gross  income
    35  for  the  taxable  year over five million dollars and the denominator is
    36  fifty thousand dollars. Provided, however, this subparagraph  shall  not
    37  apply to taxpayers who are not subject to the 10.9 percent tax rate.
    38    (B)  Provided,  however, the total tax prior to the application of any
    39  tax credits shall not exceed the highest rate of tax set  forth  in  the
    40  tax  tables  in subsection (c) of this section multiplied by the taxpay-
    41  er's taxable income.
    42    § 6.  Section 92-c of the state finance law is amended by adding a new
    43  subdivision 3-a to read as follows:
    44    3-a. Moneys in such fund  deposited  pursuant  to  the  provisions  of
    45  subdivision  three  of  section one hundred seventy-one-a of the tax law
    46  shall be appropriated or transferred only for  the  general  support  of
    47  public schools.
    48    §  7. The state finance law is amended by adding a new section 78-c to
    49  read as follows:
    50    § 78-c. Supplemental public higher education fund. 1. There is  hereby
    51  established  in  the  joint  custody  of  the  state comptroller and the
    52  commissioner of taxation and finance a fund to be known as the  "supple-
    53  mental public higher education fund".
    54    2.  Such fund shall consist of the revenues received by the department
    55  of taxation and finance, pursuant to the provisions of subdivision three
    56  of section one hundred seventy-one-a of  the  tax  law,  and  all  other

        S. 8329                             6

     1  moneys  appropriated,  credited,  or  transferred thereto from any other
     2  fund or source pursuant to law. Nothing in this  section  shall  prevent
     3  the  state  from  soliciting and receiving grants, gifts or bequests for
     4  the  purposes of the fund as defined in this section and depositing them
     5  into the fund according to law.
     6    3. Moneys of the fund  shall  be  distributed  equally  to  the  state
     7  university  of  New  York  and the city university of New York for addi-
     8  tional operating support, as appropriated by the legislature.
     9    § 8. Notwithstanding any law, rule or regulation to the contrary,  any
    10  moneys  collected  pursuant to subdivision 3 of section 171-a of the tax
    11  law and appropriated for the general support of public schools shall not
    12  diminish the amount of school aid  appropriated  for  any  given  school
    13  year.    Such  collected  moneys  shall  be  additional funding. For the
    14  purposes of this section, "amount of school aid" shall mean  the  amount
    15  appropriated pursuant to the state budget for the previous school year.
    16    §  9. Notwithstanding any law, rule or regulation to the contrary, any
    17  moneys collected pursuant to subdivision 3 of section 171-a of  the  tax
    18  law  and  appropriated  for  additional  operating  support of the state
    19  university of New York and the city university of  New  York  shall  not
    20  diminish the amount of operating support for the state university of New
    21  York  and  the  city  university  of New York appropriated for any given
    22  academic year.  Such collected moneys shall be additional  funding.  For
    23  the  purposes of this section, "operating support" shall mean the amount
    24  appropriated pursuant to the state  budget  for  the  previous  academic
    25  year.
    26    §  10.  This  act shall take effect immediately and shall be deemed to
    27  have been in full force and effect on and  after  January  1,  2020  and
    28  shall apply to taxable years on and after such date.
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