Bill Text: NY S02830 | 2021-2022 | General Assembly | Introduced
Bill Title: Establishes the NYC under 3 act to impose a payroll tax on certain employers in the city of New York for the purposes of addressing child care affordability, accessibility, and quality for families with children under three years of age.
Spectrum: Partisan Bill (Democrat 4-0)
Status: (Introduced - Dead) 2022-01-05 - REFERRED TO BUDGET AND REVENUE [S02830 Detail]
Download: New_York-2021-S02830-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 2830 2021-2022 Regular Sessions IN SENATE January 25, 2021 ___________ Introduced by Sens. RAMOS, GOUNARDES, HOYLMAN, SALAZAR -- 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 establishing the NYC under 3 act The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. This act shall be known and may be cited as the "NYC under 2 3 act". 3 § 2. The tax law is amended by adding a new article 24-A to read as 4 follows: 5 ARTICLE 24-A 6 NYC UNDER 3 ACT 7 Section 860. Definitions. 8 861. Imposition of tax and rate. 9 862. Pass through of tax prohibited. 10 863. Exemption override. 11 864. Payment of tax. 12 865. Deposit and disposition of revenue. 13 866. Procedural provisions. 14 867. Enforcement with other taxes. 15 § 860. Definitions. For the purposes of this article: 16 (a) Employer. Employer means an employer required by section six 17 hundred seventy-one of this chapter to deduct and withhold tax from 18 wages, that has a payroll expense in excess of six hundred twenty-five 19 thousand dollars in any calendar quarter; other than: 20 (1) any agency or instrumentality of the United States; 21 (2) the United Nations; 22 (3) an interstate agency or public corporation created pursuant to an 23 agreement or compact with another state or the Dominion of Canada; or EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD06656-01-1S. 2830 2 1 (4) (i) any non-profit early childhood services provider which 2 receives funding from the federal or state government, or any municipal, 3 state or federal agency, or political subdivision. 4 (ii) As used in this section, the term "early childhood services" 5 shall mean services which include, but are not limited to, registered, 6 certified or licensed care in family day care homes; group family day 7 care homes; school-age child care programs; head start programs; day 8 care centers; child care which may be provided without a permit, certif- 9 icate or registration in accordance with this statute; early childhood 10 education programs approved by the state education department; and care 11 provided in a children's camp as defined in section fourteen hundred of 12 the public health law. 13 (b) Payroll expense. Payroll expense means wages and compensation as 14 defined in sections 3121 and 3231 of the internal revenue code (without 15 regard to section 3121(a)(1) and section 3231(e)(2)(A)(i)), paid to all 16 covered employees. 17 (c) Covered employee. Covered employee means an employee who is 18 employed in a city with a population of one million or more. 19 § 861. Imposition of tax and rate. For the purpose of providing an 20 additional stable and reliable dedicated funding source to address child 21 care affordability, accessibility, and quality for families with chil- 22 dren under three years of age in a city with a population of one million 23 or more, a tax is hereby imposed on employers and individuals as 24 follows: For employers who engage in business in a city with a popu- 25 lation of one million or more, the tax is imposed at a rate of (a) 26 fifteen hundredths (.15) percent of the payroll expense for employers 27 with payroll expense in excess of six hundred twenty-five thousand 28 dollars and not more than one million two hundred fifty thousand dollars 29 per calendar quarter, (b) eighteen hundredths (.18) percent of the 30 payroll expense for employers with payroll expense in excess of one 31 million two hundred fifty thousand dollars and not more than two million 32 five hundred thousand dollars per calendar quarter, and (c) twenty-two 33 hundredths (.22) percent of the payroll expense for employers with 34 payroll expense in excess of two million five hundred thousand dollars 35 per calendar quarter. If the employer is a professional employer organ- 36 ization, as defined in section nine hundred sixteen of the labor law, 37 the employer's tax shall be calculated by determining the payroll 38 expense attributable to each client who has entered into a professional 39 employer agreement with such organization and the payroll expense 40 attributable to such organization itself, multiplying each of those 41 payroll expense amounts by the applicable rate set forth in this para- 42 graph and adding those products together. 43 § 862. Pass through of tax prohibited. An employer cannot deduct from 44 the wages or compensation of an employee any amount that represents all 45 or any portion of the tax imposed on the employer under this article. 46 § 863. Exemption override. (a) Except as provided in subsection (b) of 47 this section, any exemption from tax specified in any other New York 48 state law will not apply to the tax imposed by this article. 49 (b) If a tax-free NY area approved pursuant to the provisions of arti- 50 cle twenty-one of the economic development law is located within a city 51 with a population of one million or more, the payroll expense in such 52 tax-free NY area of any employer that is located in such area and 53 accepted into the START-UP NY program shall be exempt from the tax 54 imposed under this article. 55 § 864. Payment of tax. Employers with payroll expense. The tax imposed 56 on the payroll expense of employers under section eight hundred sixty-S. 2830 3 1 one of this article must be paid at the same time the employer is 2 required to remit payments under section six hundred seventy-four of 3 this chapter; provided however, that employers subject to the provisions 4 in section nine of this chapter must pay the tax on the payroll expense 5 at the same time as the withholding tax remitted under the electronic 6 payment reporting system and the electronic funds transfer system 7 authorized by section nine of this chapter. 8 § 865. Deposit and disposition of revenue. (a) The taxes, interest, 9 and penalties imposed by this article and collected or received by the 10 commissioner shall be deposited daily with such responsible banks, bank- 11 ing houses or trust companies, as may be designated by the comptroller 12 of the city of New York, to the credit of such comptroller in trust for 13 the city of New York. Such deposits shall be kept separate and apart 14 from all other money in the possession of the comptroller of the city of 15 New York. The comptroller of the city of New York shall require adequate 16 security from all such depositories. Of the total revenue collected or 17 received under this article, the comptroller of the city of New York 18 shall retain such amount as the commissioner may determine to be neces- 19 sary for refunds under this article. The comptroller of the city of New 20 York is authorized and directed to deduct from the amounts it receives 21 under this article, before deposit into the trust accounts designated by 22 such comptroller, a reasonable amount necessary to effectuate refunds of 23 the department to reimburse the department for the costs incurred to 24 administer, collect and distribute the taxes imposed by this article. 25 (b) After reserving such amount for such refunds and deducting such 26 amounts for such costs, as provided for in subsection (a) of this 27 section, the commissioner shall certify to the comptroller of the city 28 of New York the amount of all revenues so received during the prior 29 month as a result of the taxes, interest and penalties so imposed. The 30 amount of revenues so certified shall be paid over by the fifteenth and 31 the final business day of each succeeding month from such account with- 32 out appropriation into the general fund of the city of New York. 33 § 866. Procedural provisions. (a) General. All provisions of article 34 twenty-two of this chapter shall apply to the provisions of this article 35 in the same manner and with the same force and effect as if the language 36 of article twenty-two of this chapter had been incorporated in full into 37 this article and had been specifically adjusted for and expressly 38 referred to the tax imposed by this article, except to the extent that 39 any provision is either inconsistent with a provision of this article or 40 is not relevant to this article. Notwithstanding the preceding sentence, 41 no credit against tax in article twenty-two of this chapter can be used 42 to offset the tax due under this article. 43 (b) Combined filings. Notwithstanding any other provisions of this 44 article: 45 (1) The commissioner may require the filing of a combined return which 46 may also include any of the returns required to be filed by a taxpayer 47 pursuant to the provisions of section six hundred fifty-one of this 48 chapter and which may be required to be filed by such taxpayer pursuant 49 to any local law enacted pursuant to the authority of article thirty, 50 thirty-A or thirty-B of this chapter. 51 (2) Where a combined return is required, and with respect to the 52 payment of estimated tax, the commissioner may also require the payment 53 to it of a single amount which shall equal the total of the amounts 54 (total taxes less any credits or refunds) which would have been required 55 to be paid with the returns or in payment of estimated tax pursuant to 56 the provisions of this article, the provisions of article twenty-two ofS. 2830 4 1 this chapter, and the provisions of local laws enacted under the author- 2 ity of article thirty, thirty-A or thirty-B of this chapter. 3 (3) Notwithstanding any other law to the contrary, the commissioner 4 may require that all filings of forms or returns under this article 5 shall be filed electronically and all payments of tax must be paid elec- 6 tronically. 7 § 867. Enforcement with other taxes. (a) Joint assessment. If there is 8 assessed a tax under this article and there is also assessed a tax 9 against the same taxpayer pursuant to article twenty-two of this chapter 10 or under a local law enacted pursuant to the authority of article thir- 11 ty, thirty-A, or thirty-B of this chapter, and payment of a single 12 amount is required under the provisions of this article, such payment 13 shall be deemed to have been made with respect to the taxes so assessed 14 in proportion to the amounts of such taxes due, including tax, penal- 15 ties, interest and additions to tax. 16 (b) Joint action. If the commissioner takes action under such article 17 twenty-two or under a local law enacted pursuant to the authority of 18 article thirty, thirty-A, or thirty-B of this chapter with respect to 19 the enforcement and collection of the tax or taxes assessed under such 20 articles, the commissioner shall, whenever possible and necessary, 21 accompany such action with a similar action under similar enforcement 22 and collection provisions of the tax imposed by this article. 23 (c) Apportionment of moneys collected by joint action. Any moneys 24 collected as a result of such joint action shall be deemed to have been 25 collected in proportion to the amounts due, including tax, penalties, 26 interest and additions to tax, under article twenty-two of this chapter 27 or under a local law enacted pursuant to the authority of article thir- 28 ty, thirty-A, or thirty-B of this chapter and the tax imposed by this 29 article. 30 (d) Joint deficiency action. Whenever the commissioner takes any 31 action with respect to a deficiency of income tax under article twenty- 32 two of this chapter or under a local law enacted pursuant to the author- 33 ity of article thirty, thirty-A, or thirty-B of this chapter, other than 34 the action set forth in subsection (a) of this section, the commissioner 35 may in his or her discretion accompany such action with a similar action 36 under this article. 37 § 3. This act shall take effect immediately.
