Bill Text: NY A06648 | 2021-2022 | 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 5-0)
Status: (Introduced - Dead) 2022-01-05 - referred to ways and means [A06648 Detail]
Download: New_York-2021-A06648-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 6648 2021-2022 Regular Sessions IN ASSEMBLY March 23, 2021 ___________ Introduced by M. of A. GLICK, CARROLL, SIMON, DINOWITZ, REYES -- read once and referred to the Committee on Ways and Means 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 EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD02672-03-1A. 6648 2 1 Over $5,000,000 $396,076 plus 10.9% of excess over 2 $5,000,000 3 (iv) For taxable years beginning in two thousand twenty-one the 4 following rates shall apply: 5 If the New York taxable income is: The tax is: 6 Not over $17,150 4% of the New York taxable income 7 Over $17,150 but not over $23,600 $686 plus 4.5% of excess over 8 $17,150 9 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over 10 $23,600 11 Over $27,900 but not over $43,000 $1,202 plus 5.9% of excess over 12 $27,900 13 Over $43,000 but not over $161,550 $2,093 plus 5.97% of excess over 14 $43,000 15 Over $161,550 but not over $323,200 $9,170 plus 6.33% of excess over 16 $161,550 17 Over $323,200 but not over $19,403 plus 6.85% of excess 18 $2,155,350 over $323,200 19 Over $2,155,350 but not over $144,905 plus 8.82% of excess over 20 $5,000,000 $2,155,350 21 Over $5,000,000 $395,803 plus 10.9% of excess over 22 $5,000,000 23 § 2. Clauses (iii) and (iv) of subparagraph (B) of paragraph 1 of 24 subsection (b) of section 601 of the tax law, as amended by section 2 of 25 part P of chapter 59 of the laws of 2019, are amended to read as 26 follows: 27 (iii) For taxable years beginning in two thousand twenty the following 28 rates shall apply: 29 If the New York taxable income is: The tax is: 30 Not over $12,800 4% of the New York taxable income 31 Over $12,800 but not over $17,650 $512 plus 4.5% of excess over $12,800 32 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over 33 $17,650 34 Over $20,900 but not over $32,200 $901 plus 5.9% of excess over $20,900 35 Over $32,200 but not over $107,650 $1,568 plus 6.09% of excess over 36 $32,200 37 Over $107,650 but not over $269,300 $6,162 plus 6.41% of excess over 38 $107,650 39 Over $269,300 but not over $16,524 plus 6.85% of 40 $1,616,450 excess over $269,300 41 Over $1,616,450 but not over $108,804 plus 8.82% of excess over 42 $5,000,000 $1,616,450 43 Over $5,000,000 $407,233 plus 10.9% of excess over 44 $5,000,000 45 (iv) For taxable years beginning in two thousand twenty-one the 46 following rates shall apply: 47 If the New York taxable income is: The tax is: 48 Not over $12,800 4% of the New York taxable income 49 Over $12,800 but not over $17,650 $512 plus 4.5% of excess over 50 $12,800 51 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over 52 $17,650 53 Over $20,900 but not over $32,200 $901 plus 5.9% of excess over 54 $20,900 55 Over $32,200 but not over $107,650 $1,568 plus 5.97% of excess overA. 6648 3 1 $32,200 2 Over $107,650 but not over $269,300 $6,072 plus 6.33% of excess over 3 $107,650 4 Over $269,300 but not over $16,304 plus 6.85% of 5 $1,616,450 excess over $269,300 6 Over $1,616,450 but not over $108,584 plus 8.82% of excess over 7 $5,000,000 $1,616,450 8 Over $5,000,000 $407,013 plus 10.9% of excess over 9 $5,000,000 10 § 3. Clauses (iii) and (iv) of subparagraph (B) of paragraph 1 of 11 subsection (c) of section 601 of the tax law, as amended by section 3 of 12 part P of chapter 59 of the laws of 2019, are amended to read as 13 follows: 14 (iii) For taxable years beginning in two thousand twenty the following 15 rates shall apply: 16 If the New York taxable income is: The tax is: 17 Not over $8,500 4% of the New York taxable income 18 Over $8,500 but not over $11,700 $340 plus 4.5% of excess over 19 $8,500 20 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over 21 $11,700 22 Over $13,900 but not over $21,400 $600 plus 5.9% of excess over 23 $13,900 24 Over $21,400 but not over $80,650 $1,042 plus 6.09% of excess over 25 $21,400 26 Over $80,650 but not over $215,400 $4,650 plus 6.41% of excess over 27 $80,650 28 Over $215,400 but not over $13,288 plus 6.85% of excess 29 $1,077,550 over $215,400 30 Over $1,077,550 but not over $72,345 plus 8.82% of excess over 31 $5,000,000 $1,077,550 32 Over $5,000,000 $418,305 plus 10.9% of excess over 33 $5,000,000 34 (iv) For taxable years beginning in two thousand twenty-one the 35 following rates shall apply: 36 If the New York taxable income is: The tax is: 37 Not over $8,500 4% of the New York taxable income 38 Over $8,500 but not over $11,700 $340 plus 4.5% of excess over 39 $8,500 40 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over 41 $11,700 42 Over $13,900 but not over $21,400 $600 plus 5.9% of excess over 43 $13,900 44 Over $21,400 but not over $80,650 $1,042 plus 5.97% of excess over 45 $21,400 46 Over $80,650 but not over $215,400 $4,579 plus 6.33% of excess over 47 $80,650 48 Over $215,400 but not over $13,109 plus 6.85% of excess 49 $1,077,550 over $215,400 50 Over $1,077,550 but not over $72,166 plus 8.82% of excess over 51 $5,000,000 $1,077,550 52 Over $5,000,000 $418,126 plus 10.9% of excess over 53 $5,000,000 54 § 4. Section 171-a of the tax law is amended by adding a new subdivi- 55 sion 3 to read as follows:A. 6648 4 1 3. Notwithstanding subdivision one of this section or any other 2 provision of law to the contrary, eighty-five percent of any revenue 3 derived from an increase in the taxes imposed on income over five 4 million dollars pursuant to section six hundred one of this chapter 5 attributable to the difference in the rate of such taxes for taxable 6 year two thousand twenty and the rate of such taxes for taxable year two 7 thousand nineteen and the difference in the rate of such taxes for taxa- 8 ble year two thousand twenty-one and the rate of such taxes for taxable 9 year two thousand nineteen shall be deposited in the state lottery fund, 10 created pursuant to section ninety-two-c of the state finance law, as 11 such taxes are received. The remaining fifteen percent of such derived 12 revenue shall be deposited in the supplemental public higher education 13 fund, created pursuant to section seventy-eight-c of the state finance 14 law. The amount for administrative costs shall be determined by the 15 commissioner to represent reasonable costs of the department in adminis- 16 tering, collecting, determining and distributing such taxes. Of the 17 total revenue collected or received under such sections of this chapter, 18 the comptroller shall retain in his or her hands such amount as the 19 commissioner may determine to be necessary for refunds or reimbursements 20 under such sections of this chapter out of which amount the comptroller 21 shall pay any refunds or reimbursements to which taxpayers shall be 22 entitled under provisions of such sections. The commissioner and the 23 comptroller shall maintain a system of accounts showing the amount of 24 revenue collected or received from each of the taxes imposed by such 25 sections. 26 § 5. Section 601 of the tax law is amended by adding a new subsection 27 (d-2) to read as follows: 28 (d-2) Alternative tax table benefit recapture. For taxable years two 29 thousand twenty and two thousand twenty-one for a taxpayer whose New 30 York taxable income is over five million dollars, there is hereby 31 imposed a supplemental tax in addition to the tax imposed under 32 subsections (a), (b), (c) and (d-1) of this section for the purpose of 33 recapturing the benefit of the tax tables contained in such subsections. 34 During these taxable years, any reference in this chapter to subsection 35 (d) of this section shall be read as a reference to this subsection. 36 (1) For resident married individuals filing joint returns and resident 37 surviving spouses, the supplemental tax shall be an amount equal to the 38 sum of the tax table benefit in subparagraph (A) of this paragraph 39 multiplied by the respective fraction in such subparagraph. 40 (A) The tax table benefit is the difference between (i) the amount of 41 taxable income set forth in the tax table in paragraph one of subsection 42 (a) of this section not subject to the 10.9 percent rate of tax for the 43 taxable year multiplied by such rate and (ii) the dollar denominated tax 44 for such amount of taxable income set forth in the tax table applicable 45 to the taxable year in paragraph one of subsection (a) of this section 46 less the sum of the tax table benefits in subparagraphs (A), (B) and (C) 47 of paragraph one of subsection (d-1) of this section. The fraction for 48 this subparagraph is computed as follows: the numerator is the lesser of 49 fifty thousand dollars or the excess of New York adjusted gross income 50 for the taxable year over five million dollars and the denominator is 51 fifty thousand dollars. Provided, however, this subparagraph shall not 52 apply to taxpayers who are not subject to the 10.9 percent tax rate. 53 (B) Provided, however, the total tax prior to the application of any 54 tax credits shall not exceed the highest rate of tax set forth in the 55 tax tables in subsection (a) of this section multiplied by the taxpay- 56 er's taxable income.A. 6648 5 1 (2) For resident heads of households, the supplemental tax shall be an 2 amount equal to the sum of the tax table benefit described in subpara- 3 graph (A) of this paragraph multiplied by the respective fraction in 4 such subparagraph. 5 (A) The tax table benefit is the difference between (i) the amount of 6 taxable income set forth in the tax table in paragraph one of subsection 7 (b) of this section not subject to the 10.9 percent rate of tax for the 8 taxable year multiplied by such rate and (ii) the dollar denominated tax 9 for such amount of taxable income set forth in the tax table applicable 10 to the taxable year in paragraph one of subsection (b) of this section 11 less the sum of the tax table benefits in subparagraphs (A) and (B) of 12 paragraph two of subsection (d-1) of this section. The fraction for this 13 subparagraph is computed as follows: the numerator is the lesser of 14 fifty thousand dollars or the excess of New York adjusted gross income 15 for the taxable year over five million dollars and the denominator is 16 fifty thousand dollars. Provided, however, this subparagraph shall not 17 apply to taxpayers who are not subject to the 10.9 percent tax rate. 18 (B) Provided, however, the total tax prior to the application of any 19 tax credits shall not exceed the highest rate of tax set forth in the 20 tax tables in subsection (b) of this section multiplied by the taxpay- 21 er's taxable income. 22 (3) For resident unmarried individuals, resident married individuals 23 filing separate returns and resident estates and trusts, the supple- 24 mental tax shall be an amount equal to the sum of the tax table benefits 25 described in subparagraph (A) of this paragraph multiplied by the 26 respective fractions in such subparagraph. 27 (A) The tax table benefit is the difference between (i) the amount of 28 taxable income set forth in the tax table in paragraph one of subsection 29 (c) of this section not subject to the 10.9 percent rate of tax for the 30 taxable year multiplied by such rate and (ii) the dollar denominated tax 31 for such amount of taxable income set forth in the tax table applicable 32 to the taxable year in paragraph one of subsection (c) of this section 33 less the sum of the tax table benefits in subparagraphs (A) and (B) of 34 paragraph three of subsection (d-1) of this section. The fraction for 35 this subparagraph is computed as follows: the numerator is the lesser of 36 fifty thousand dollars or the excess of New York adjusted gross income 37 for the taxable year over five million dollars and the denominator is 38 fifty thousand dollars. Provided, however, this subparagraph shall not 39 apply to taxpayers who are not subject to the 10.9 percent tax rate. 40 (B) 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 (c) of this section multiplied by the taxpay- 43 er's taxable income. 44 § 6. Section 92-c of the state finance law is amended by adding a new 45 subdivision 3-a to read as follows: 46 3-a. Moneys in such fund deposited pursuant to the provisions of 47 subdivision three of section one hundred seventy-one-a of the tax law 48 shall be appropriated or transferred only for the general support of 49 public schools. 50 § 7. The state finance law is amended by adding a new section 78-c to 51 read as follows: 52 § 78-c. Supplemental public higher education fund. 1. There is hereby 53 established in the joint custody of the state comptroller and the 54 commissioner of taxation and finance a fund to be known as the "supple- 55 mental public higher education fund".A. 6648 6 1 2. Such fund shall consist of the revenues received by the department 2 of taxation and finance, pursuant to the provisions of subdivision three 3 of section one hundred seventy-one-a of the tax law, and all other 4 moneys appropriated, credited, or transferred thereto from any other 5 fund or source pursuant to law. Nothing in this section shall prevent 6 the state from soliciting and receiving grants, gifts or bequests for 7 the purposes of the fund as defined in this section and depositing them 8 into the fund according to law. 9 3. Moneys of the fund shall be distributed equally to the state 10 university of New York and the city university of New York for addi- 11 tional operating support, as appropriated by the legislature. 12 § 8. Notwithstanding any law, rule or regulation to the contrary, any 13 moneys collected pursuant to subdivision 3 of section 171-a of the tax 14 law and appropriated for the general support of public schools shall not 15 diminish the amount of school aid appropriated for any given school 16 year. Such collected moneys shall be additional funding. For the 17 purposes of this section, "amount of school aid" shall mean the amount 18 appropriated pursuant to the state budget for the previous school year. 19 § 9. Notwithstanding any law, rule or regulation to the contrary, any 20 moneys collected pursuant to subdivision 3 of section 171-a of the tax 21 law and appropriated for additional operating support of the state 22 university of New York and the city university of New York shall not 23 diminish the amount of operating support for the state university of New 24 York and the city university of New York appropriated for any given 25 academic year. Such collected moneys shall be additional funding. For 26 the purposes of this section, "operating support" shall mean the amount 27 appropriated pursuant to the state budget for the previous academic 28 year. 29 § 10. This act shall take effect immediately and shall be deemed to 30 have been in full force and effect on and after January 1, 2020 and 31 shall apply to taxable years on and after such date.