Bill Text: NY A08956 | 2017-2018 | General Assembly | Amended
Bill Title: Authorizes the city of New York to impose a personal income surcharge on high income residents to fund transit improvements and reduced fares for low income residents.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2018-02-27 - print number 8956a [A08956 Detail]
Download: New_York-2017-A08956-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 8956--A IN ASSEMBLY January 9, 2018 ___________ Introduced by M. of A. O'DONNELL -- read once and referred to the Committee on Corporations, Authorities and Commissions -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the public authorities law, the tax law and the adminis- trative code of the city of New York, in relation to authorizing and imposing a tax surcharge on the personal income of certain high-income residents of such city in order to fund transit infrastructure improvements and reduced fares for low-income residents of such city The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 1205 of the public authorities law is amended by 2 adding a new subdivision 9 to read as follows: 3 9. Notwithstanding any other provision of law, the authority and any 4 of its subsidiary corporations shall establish and implement a half-fare 5 rate program for low-income residents of the city who are eighteen years 6 of age or older and younger than sixty-five years of age. For purposes 7 of this subdivision, the term "low-income" shall mean an annual income 8 that is below the federal poverty line as determined by the United 9 States department of health and human services pursuant to subdivision 2 10 of section 9902 of title 42 of the United States code. The half-fare 11 rate program established and implemented pursuant to this subdivision 12 shall include subway and bus service, exclusive of express bus service 13 during peak hours. Such half-rate program shall not be made available to 14 such low-income residents of the city eighteen years of age or older and 15 younger than sixty-five years of age who are eligible for the half-fare 16 rate programs available to seniors and people with disabilities pursuant 17 to subdivision two or eight of this section. Upon the written request of 18 the mayor and in accordance with such request, the authority or its 19 subsidiary corporations shall delegate authority to the city to assist 20 with the administration of such half-fare rate program, including the 21 eligibility of applicants. 22 § 2. The public authorities law is amended by adding a new section 23 1270-i to read as follows: EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD13277-11-8A. 8956--A 2 1 § 1270-i. New York city dedicated personal income tax surcharge fund. 2 1. The authority shall establish a fund to be known as the "New York 3 city dedicated personal income tax surcharge fund" which shall be kept 4 separate from and shall not be commingled with any other moneys of the 5 authority. The fund shall consist of a "transit infrastructure improve- 6 ment account" and a "low-income resident reduced fare account." 7 2. There shall be deposited into the New York city dedicated personal 8 income tax surcharge fund the moneys transferred to the metropolitan 9 transportation authority from the New York city transitional finance 10 authority pursuant to subsection (e) of section thirteen hundred four-E 11 of the tax law, and any other provision of law directing or permitting 12 the deposit of moneys in such fund, to be used exclusively for the 13 financing of transit infrastructure improvements and reduced fares for 14 low-income residents of the city of New York. 15 3. Moneys in the transit infrastructure improvement account (a) shall 16 be used to fund capital projects that satisfy the following criteria: 17 (i) defined as state of good repair, normal replacement, or an Americans 18 with Disabilities Act related system improvement within the capital 19 program of the authority; and (ii) included in any of the following 20 categories within the capital program of the authority: New York city 21 transit authority buses, subway cars, track, line equipment, line struc- 22 tures, signals and communications, traction power, shops and yards, 23 depots, service vehicles, passenger station projects, as needed to 24 comply with the Americans with Disabilities Act, Staten Island railway 25 and authority bus company projects; and (b) may be (i) pledged by the 26 authority as security for the payment of principal and interest on bonds 27 issued after July first, two thousand eighteen to finance capital 28 projects that meet the criteria identified in paragraph (a) of this 29 subdivision, including bonds issued to refund such bonds and (ii) used 30 for payment of principal and interest on such bonds, funding of reserves 31 required in connection with such bonds, and the payment of costs of 32 issuance related to such bonds. To the extent moneys in the transit 33 infrastructure improvement account have been pledged by the authority to 34 secure the payment of principal and interest on bonds as herein 35 provided, moneys deposited into the New York city dedicated personal 36 income tax surcharge fund shall first be deposited into the transit 37 infrastructure account to the extent necessary to make payments pursuant 38 to paragraph (b) of this subdivision. After making such payments, moneys 39 deposited in the transit infrastructure improvement account shall be 40 used to fund projects that meet the criteria identified in paragraph (a) 41 of this subdivision. 42 4. The state does hereby pledge and agree with the holders of any 43 issue of bonds secured by pledge described in paragraph (b) of subdivi- 44 sion three of this section that the state will not limit or alter the 45 rights hereby vested in the metropolitan transportation authority to 46 fulfill the terms of any agreements made with bondholders pursuant to 47 this title, or in any way impair the rights and remedies of such holders 48 or the security for such bonds until such bonds are fully paid and 49 discharged. Nothing contained in this section shall be deemed to 50 restrict the right of the state to amend, modify, repeal or otherwise 51 alter statutes imposing or relating to the taxes payable to the New York 52 city transitional finance authority pursuant to section thirteen hundred 53 thirteen of the tax law, but such taxes shall in all events continue to 54 be so payable so long as any such taxes are imposed. Nothing in this 55 section shall be deemed to obligate the state to make any additionalA. 8956--A 3 1 payments or impose any taxes to satisfy the debt service obligations of 2 the metropolitan transportation authority. 3 5. Moneys in the low-income resident reduced fare account shall be 4 used to fund the half-fare rate program for low-income residents of the 5 city of New York pursuant to subdivision nine of section twelve hundred 6 five of this article and may be used for payment of the reasonable oper- 7 ating costs incurred by the New York city transit authority for the 8 administration of the half-fare rate program, provided that no more than 9 one percent of the moneys deposited into the low-income resident reduced 10 fare account pursuant to subdivision six of this section shall be used 11 for such costs. 12 6. The moneys deposited into the fund from the New York city transi- 13 tional finance authority shall be equally divided between the transit 14 infrastructure improvement account and the low-income resident reduced 15 fare account. 16 7. Twice each calendar year, the mayor of the city of New York shall 17 conduct a review of the amount of moneys deposited in each of the two 18 accounts. To the extent such review indicates that: 19 a. the moneys in the transit infrastructure improvement account are 20 sufficient to satisfy the requirements of any debt service incurred in 21 such calendar year as a result of obligations issued and secured pursu- 22 ant to paragraph b of subdivision three of this section, and the moneys 23 in the low-income resident reduced fare account are insufficient to 24 satisfy the total needs of the low-income resident reduced fare program 25 established pursuant to subdivision nine of section twelve hundred five 26 of this article, the mayor of the city of New York, or such mayor's 27 designee, may direct the metropolitan transportation authority to trans- 28 fer a specified amount of moneys from the transit infrastructure 29 improvement account to the low-income resident reduced fare account; and 30 b. the moneys in the low-income resident reduced fare account are 31 sufficient to satisfy the needs of the half-fare rate program for low- 32 income residents of the city of New York established pursuant to subdi- 33 vision nine of section twelve hundred five of this article, in such 34 calendar year, the mayor of the city of New York, or such mayor's desig- 35 nee, may direct the metropolitan transportation authority to transfer a 36 specified amount of moneys from the low-income resident reduced fare 37 account to the transit infrastructure improvement account. 38 § 3. Subdivision 5 of section 2799-hh of the public authorities law, 39 as added by chapter 16 of the laws of 1997, is amended to read as 40 follows: 41 5. Tax revenues received by the authority pursuant to section thirteen 42 hundred thirteen of the tax law, together with any alternative revenues 43 received by the authority, shall be applied in the following order of 44 priority: first pursuant to the authority's contracts with bondholders, 45 then to pay the authority's operating expenses not otherwise provided 46 for, then to a dedicated personal income tax surcharge fund pursuant to 47 subsection (d) of section thirteen hundred four-E of the tax law in the 48 amount provided for in such section, and then pursuant to the authori- 49 ty's agreements with the city, which agreements shall require the 50 authority to transfer the balance of such taxes not required to meet 51 contractual or other obligations of the authority to the city as 52 frequently as practicable. 53 § 4. The tax law is amended by adding a new section 1304-E to read as 54 follows: 55 § 1304-E. Tax surcharge for transit infrastructure improvements and 56 reduced fares for low-income residents of the city of New York. (a) InA. 8956--A 4 1 addition to the taxes authorized by subsection (a) of section thirteen 2 hundred one of this article, any city imposing such taxes is hereby 3 authorized and empowered to adopt and amend local laws imposing in any 4 such city for each taxable year beginning after two thousand seventeen, 5 a tax surcharge on the city taxable income of certain city resident 6 individuals, estates and trusts. 7 (b) A tax surcharge imposed pursuant to the authority of this section 8 shall be determined as follows: 9 (1) Resident married individuals filing joint returns and resident 10 surviving spouses. The tax surcharge under this section on the city 11 taxable income of certain city resident married individuals who make a 12 single return jointly with his or her spouse under subsection (b) of 13 section thirteen hundred six of this article and on the city taxable 14 income of certain city resident surviving spouses shall be determined in 15 accordance with the following table: 16 For taxable years beginning after two thousand seventeen: 17 If the city taxable income is: The tax surcharge is: 18 Over $1,000,000 .534% of excess over $1,000,000 19 (2) Resident heads of households. The tax surcharge under this section 20 on the city taxable income of certain city resident heads of households 21 shall be determined in accordance with the following table: 22 For taxable years beginning after two thousand seventeen: 23 If the city taxable income is: The tax surcharge is: 24 Over $750,000 .534% of excess over $750,000 25 (3) Resident unmarried individuals, resident married individuals 26 filing separate returns and resident estates and trusts. The tax 27 surcharge under this section on the city taxable income of certain city 28 resident individuals who are not city resident married individuals who 29 make a single return jointly with his or her spouse under subsection (b) 30 of section thirteen hundred six of this article or city resident heads 31 of households or city resident surviving spouses, and on the city taxa- 32 ble income of certain city resident estates and trusts shall be deter- 33 mined in accordance with the following table: 34 For taxable years beginning after two thousand seventeen: 35 If the city taxable income is: The tax surcharge is: 36 Over $500,000 .534% of excess over $500,000 37 (c) A tax surcharge imposed pursuant to the authority of this section 38 shall be administered and collected in the same manner as the taxes 39 imposed pursuant to the authority of this article, and all of the 40 provisions of this article, including section thirteen hundred ten, 41 shall apply to the tax surcharge imposed pursuant to the authority of 42 this section. 43 (d) Subject to the priority of payments identified in section twenty- 44 seven hundred ninety-nine-hh of the public authorities law, the New York 45 city transitional finance authority shall transfer to the metropolitan 46 transportation authority the amount estimated by the mayor of the city 47 of New York to be the amount received by the New York city transitional 48 finance authority from the tax surcharge imposed pursuant to the author- 49 ity of this section, up to the total amount available after deducting 50 from revenues received by the New York city transitional finance author- 51 ity pursuant to this section and subsection (c) of section thirteen 52 hundred thirteen of this article amounts to be paid pursuant to the New 53 York city transitional finance authority's contracts with bondholders 54 and the New York city transitional finance authority's operating 55 expenses not otherwise provided for. After the mayor of the city of New 56 York has received data from the department allowing such mayor to deter-A. 8956--A 5 1 mine the actual amount of revenues received by the New York city transi- 2 tional finance authority that are attributable to the tax surcharge 3 imposed pursuant to the authority of this section, such mayor shall 4 inform the New York city transitional finance authority of such actual 5 amount, minus any actual operating costs assumed by the city of New York 6 attributable to the half-fare rate program pursuant to subdivision nine 7 of section twelve hundred five of the public authorities law, and the 8 New York city transitional finance authority shall adjust the next 9 payment to be made to the metropolitan transportation authority pursuant 10 to this section to reflect any difference between such actual amount 11 minus such operating costs and the estimate previously provided by such 12 mayor. 13 (e) Any revenues transferred to the metropolitan transportation 14 authority pursuant to subsection (d) of this section shall be paid into 15 a dedicated personal income tax surcharge fund to be used exclusively 16 for the financing of transit infrastructure improvements and reduced 17 fares for low-income residents of the city of New York in accordance 18 with the provisions of section twelve hundred seventy-i of the public 19 authorities law. Such revenues shall only supplement and shall not 20 supplant any federal, state, or local funds expended by the metropolitan 21 transportation authority for New York city transit authority, the metro- 22 politan transportation authority bus company or Staten Island rapid 23 transit operating authority projects, and shall not affect any payment 24 by the city of New York pursuant to agreements relating to the metropol- 25 itan transportation authority bus company and Staten Island rapid trans- 26 it operating authority. 27 § 5. Paragraphs 1 and 2 of subsection (e) of section 1310 of the tax 28 law, as added by chapter 481 of the laws of 1997, are amended to read as 29 follows: 30 (1) Notwithstanding any other provision of law to the contrary, any 31 city imposing a tax under this article is hereby authorized and 32 empowered to adopt and amend local laws for any taxable year beginning 33 after nineteen hundred ninety-seven, as specified in such local laws, 34 providing for a credit as provided in paragraph two of this subsection 35 against the taxes imposed pursuant to the authority granted by section 36 thirteen hundred one of this article on the city taxable income deter- 37 mined pursuant to sections thirteen hundred four, thirteen hundred 38 four-A [and], thirteen hundred four-B and thirteen hundred four-E of 39 this article and on the ordinary income portion of a lump sum distrib- 40 ution determined pursuant to section thirteen hundred one-B of this 41 article, to any city resident individual, estate or trust whose city 42 adjusted gross income includes income, gain, loss or deductions from one 43 or more unincorporated businesses conducted by such city resident indi- 44 vidual, estate or trust on which a tax is imposed by chapter five of 45 title eleven of the administrative code of the city of New York, or a 46 distributive share of income, gain, loss and deductions of, or guaran- 47 teed payments from, one or more partnerships on which a tax is imposed 48 by such chapter. Any such local laws may contain provisions to ensure 49 that such credit shall not reduce the tax paid by a city resident below 50 that which would be paid by such city resident if such city resident 51 were a city nonresident. 52 (2) (A) Subject to the limitation set forth in subparagraph (B) of 53 this paragraph, the credit allowed to a taxpayer for a taxable year 54 shall be equal to all or a portion of the amount determined in paragraph 55 three of this subsection, provided, however, such portion shall not be 56 less than:A. 8956--A 6 1 (i) If the city taxable income is forty-two thousand dollars or less, 2 sixty-five percent of the amount determined in paragraph three of this 3 subsection. 4 (ii) If the city taxable income is greater than forty-two thousand 5 dollars but not greater than one hundred forty-two thousand dollars, a 6 percentage of the amount determined in paragraph three of this 7 subsection to be determined by subtracting from sixty-five percent, one 8 tenth of a percentage point (.001) for every increment of two hundred 9 dollars, or fractional part thereof, of city taxable income in excess of 10 forty-two thousand dollars. 11 (iii) If the city taxable income is greater than one hundred forty-two 12 thousand dollars, fifteen percent of the amount determined in paragraph 13 three of this subsection. 14 (B) Notwithstanding anything to the contrary in subparagraph (A) of 15 this paragraph, the credit allowed to a taxpayer for a taxable year 16 under this subsection shall not exceed the sum of the taxes that would 17 otherwise be imposed on such taxpayer for such taxable year pursuant to 18 the authority granted by section thirteen hundred one of this article on 19 the city taxable income determined pursuant to sections thirteen hundred 20 four, thirteen hundred four-A [and], thirteen hundred four-B and thir- 21 teen hundred four-E of this article and on the ordinary income portion 22 of a lump sum distribution determined pursuant to section thirteen 23 hundred one-B of this article, reduced by the credits allowed to such 24 taxpayer pursuant to subsections (a), (c) and (d) of this section. 25 § 6. The opening paragraph of subsection (c) of section 1313 of the 26 tax law, as amended by section 8 of part C of chapter 58 of the laws of 27 2005, is amended to read as follows: 28 Subject to the provisions of subsection (g) of this section, the comp- 29 troller, after reserving such refund fund and such costs shall, commenc- 30 ing on or before the fifteenth day of each month, pay to the New York 31 city transitional finance authority on a daily basis the balance of 32 taxes imposed pursuant to the authority of this article or former arti- 33 cle two-E of the general city law to be applied by the authority, in the 34 following order of priority: first pursuant to the authority's contracts 35 with bondholders, then to pay the authority's operating expenses not 36 otherwise provided for, then to a dedicated personal income tax 37 surcharge fund pursuant to subsection (d) of section thirteen hundred 38 four-E of this article and then pursuant to the authority's agreements 39 with the city, which agreements shall require the authority to transfer 40 the balance of such taxes not required to meet contractual or other 41 obligations of the authority to the city as frequently as practicable; 42 except that the comptroller shall: 43 § 7. The administrative code of the city of New York is amended by 44 adding a new section 11-1704.2 to read as follows: 45 § 11-1704.2 Tax surcharge for transit infrastructure improvements and 46 reduced fares for low-income residents of the city. (a) In addition to 47 the taxes imposed by sections 11-1701, 11-1703, 11-1704 and 11-1704.1 of 48 this subchapter, there is hereby imposed for each taxable year beginning 49 after two thousand seventeen, a tax surcharge on the city taxable income 50 of certain city resident individuals, estates and trusts. 51 (b) The tax surcharge imposed pursuant to this section shall be deter- 52 mined as follows: 53 (1) Resident married individuals filing joint returns and resident 54 surviving spouses. The tax surcharge under this section on the city 55 taxable income of certain city resident married individuals who make a 56 single return jointly with his or her spouse under subdivision (b) ofA. 8956--A 7 1 section 11-1751 of this chapter and on the city taxable income of 2 certain city resident surviving spouses shall be determined in accord- 3 ance with the following table: 4 For taxable years beginning after two thousand seventeen: 5 If the city taxable income is: The tax surcharge is: 6 Over $1,000,000 .534% of excess over $1,000,000 7 (2) Resident heads of households. The tax surcharge under this section 8 on the city taxable income of certain city resident heads of households 9 shall be determined in accordance with the following table: 10 For taxable years beginning after two thousand seventeen: 11 If the city taxable income is: The tax surcharge is: 12 Over $750,000 .534% of excess over $750,000 13 (3) Resident unmarried individuals, resident married individuals 14 filing separate returns and resident estates and trusts. The tax 15 surcharge under this section on the city taxable income of certain city 16 resident individuals who are not city resident married individuals who 17 make a single return jointly with his or her spouse under subdivision 18 (b) of section 11-1751 of this chapter or city resident heads of house- 19 holds or city resident surviving spouses, and on the city taxable income 20 of certain city resident estates and trusts shall be determined in 21 accordance with the following table: 22 For taxable years beginning after two thousand seventeen: 23 If the city taxable income is: The tax surcharge is: 24 Over $500,000 .534% of excess over $500,000 25 (c) The tax surcharge imposed pursuant to this section shall be admin- 26 istered and collected in the same manner as the taxes imposed pursuant 27 to sections 11-1701, 11-1703, 11-1704 and 11-1704.1, and shall be 28 distributed in accordance with subsection (d) of section 1304-E of the 29 tax law, and all of the provisions of this chapter, including section 30 11-1706 of this subchapter, and sections 11-1721 and 11-1773 of this 31 chapter, shall apply to the tax surcharge imposed pursuant to this 32 section. 33 § 8. Paragraphs 1 and 2 of subdivision (c) of section 11-1706 of the 34 administrative code of the city of New York, as added by chapter 481 of 35 the laws of 1997, subparagraph (A) of paragraph 2 as amended by local 36 law number 35 of the city of New York for the year 2007, are amended to 37 read as follows: 38 (1) A city resident individual, estate or trust whose city adjusted 39 gross income includes income, gain, loss or deductions from one or more 40 unincorporated businesses conducted by such city resident individual, 41 estate or trust that are subject to the tax imposed by chapter five of 42 this title, or a distributive share of income, gain, loss and deductions 43 of, or guaranteed payments from, one or more partnerships that are 44 subject to the tax imposed by such chapter, shall be allowed a credit as 45 provided in paragraph two of this subdivision against the tax otherwise 46 due under sections 11-1701, 11-1703, 11-1704 [and], 11-1704.1 and 47 11-1704.2 of this [chapter] subchapter. 48 (2) (A) Subject to the limitation set forth in subparagraph (B) of 49 this paragraph, the credit allowed to a taxpayer for a taxable year 50 under this subdivision shall be determined as follows: 51 (i) For taxable years beginning on or after January first, nineteen 52 hundred ninety-seven and before January first, two thousand seven: 53 (I) If the city taxable income is forty-two thousand dollars or less, 54 the credit shall be sixty-five percent of the amount determined in para- 55 graph three of this subdivision.A. 8956--A 8 1 (II) If the city taxable income is greater than forty-two thousand 2 dollars but not greater than one hundred forty-two thousand dollars, the 3 amount of the credit shall be a percentage of the amount determined in 4 paragraph three of this subdivision, such percentage to be determined by 5 subtracting from sixty-five percent, one-tenth of a percentage point 6 (.001) for every increment of two hundred dollars, or fractional part 7 thereof, of city taxable income in excess of forty-two thousand dollars. 8 (III) If the city taxable income is greater than one hundred forty-two 9 thousand dollars, the credit shall be fifteen percent of the amount 10 determined in paragraph three of this subdivision. 11 (ii) For taxable years beginning on or after January first, two thou- 12 sand seven: 13 (I) If the city taxable income is forty-two thousand dollars or less, 14 the credit shall be one hundred percent of the amount determined in 15 paragraph three of this subdivision. 16 (II) If the city taxable income is greater than forty-two thousand 17 dollars but less than one hundred forty-two thousand dollars, the amount 18 of the credit shall be a percentage of the amount determined in para- 19 graph three of this subdivision, such percentage to be determined by 20 subtracting from one hundred percent, a percentage determined by 21 subtracting forty-two thousand dollars from city taxable income, divid- 22 ing the result by one hundred thousand dollars and multiplying by seven- 23 ty-seven percent. 24 (III) If the city taxable income is one hundred forty-two thousand 25 dollars or greater, the credit shall be twenty-three percent of the 26 amount determined in paragraph three of this subdivision. 27 (B) Notwithstanding anything to the contrary in subparagraph (A) of 28 this paragraph, the credit allowed to a taxpayer for a taxable year 29 under this subdivision shall not exceed the sum of the taxes that would 30 otherwise be imposed by sections 11-1701, 11-1703, 11-1704 [and], 31 11-1704.1 and 11-1704.2 of this [chapter] subchapter on such taxpayer 32 for such taxable year after the allowance of any other credits allowed 33 by this section or section 11-1721 of this chapter. 34 § 9. This act shall take effect immediately and shall be deemed to 35 have been in full force and effect on and after January 1, 2018; 36 provided that subdivision 9 of section 1205 of the public authorities 37 law, as added by section one of this act, shall take effect January 1, 38 2019.
