Bill Text: NY S02834 | 2017-2018 | General Assembly | Introduced
Bill Title: Creates a tax surcharge to fund an omnibus education financing plan in New York city; also provides for a maintenance of effort requirement.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2018-01-03 - REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS [S02834 Detail]
Download: New_York-2017-S02834-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 2834 2017-2018 Regular Sessions IN SENATE January 17, 2017 ___________ Introduced by Sen. PARKER -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Govern- ment Operations AN ACT to amend the tax law and the education law, in relation to educa- tion tax surcharge The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Legislative intent. The legislature hereby finds and 2 declares that an omnibus education financing plan is essential to effec- 3 tively and comprehensively provide a sound basic education to public 4 school students in the city of New York. The "emergency in education" 5 surcharge tax, grounded in the need to provide immediate, adequate 6 support for public education in the city of New York, is such a plan. 7 The plan recognizes and addresses several factors: (1) that increased 8 operating aid is necessary to ensure New York city students are prepared 9 to achieve the higher standards implemented by the New York state board 10 of regents, (2) that the city of New York is committed to shouldering 11 its "fair share" of the cost of educating students in its public 12 schools, and (3) that students currently attending public schools in the 13 city of New York cannot afford to wait as litigation concerning the 14 state of New York's education financing system is decided by the courts. 15 The mayor and the city council have agreed that the financing program 16 provided for in this act will provide the funds necessary to implement 17 the "emergency in education" plan. The state must authorize the new 18 revenue sources requested by the city of New York to enable the city to 19 effectively educate public school students. 20 § 2. The tax law is amended by adding a new section 1304-e to read as 21 follows: 22 § 1304-e. Emergency in education tax surcharge. (a) In addition to the 23 taxes authorized by any other section of this article, any city imposing 24 such taxes is hereby authorized and empowered to adopt and amend local EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD06276-01-7S. 2834 2 1 laws imposing in any such city tax surcharges on (1) the New York city 2 adjusted gross income, and (2) the tax due under section thirteen 3 hundred four of this article of every city resident individual, estate 4 and trust, as set forth in subsections (b), (c), (d), (e), (f) and (g) 5 of this section. 6 (b) For taxable years beginning in two thousand seventeen, the tax 7 surcharges imposed pursuant to the authority of this section shall be 8 determined as follows: (1) a tax of one percent on the portion of the 9 New York city source adjusted gross income of every resident individual, 10 estate or trust and of every nonresident or part-year resident individ- 11 ual, estate or trust, above one hundred thousand dollars, (2) a tax of 12 one percent on the portion of such income above two hundred thousand 13 dollars, and (3) a surcharge of twelve and one-half percent on the 14 amount of tax due by every resident individual, estate or trust and of 15 every nonresident or part-year resident individual, estate or trust 16 pursuant to section thirteen hundred four of this article. 17 (c) For taxable years beginning in two thousand eighteen, the tax 18 surcharges imposed pursuant to the authority of this section shall be 19 determined as follows: (1) a tax of nine-tenths of one percent on the 20 portion of the New York city source adjusted gross income of every resi- 21 dent individual, estate or trust and of every nonresident or part-year 22 resident individual, estate or trust, above one hundred thousand 23 dollars, (2) a tax of nine-tenths of one percent on the portion of such 24 income above two hundred thousand dollars, and (3) a surcharge of eleven 25 and one-quarter percent on the amount of tax due by every resident indi- 26 vidual, estate or trust and of every nonresident or part-year resident 27 individual, estate or trust pursuant to section thirteen hundred four of 28 this article. 29 (d) For taxable years beginning in two thousand nineteen, the tax 30 surcharges imposed pursuant to the authority of this section shall be 31 determined as follows: (1) a tax of eight-tenths of one percent on the 32 portion of the New York city source adjusted gross income of every resi- 33 dent individual, estate or trust and of every nonresident or part-year 34 resident individual, estate or trust, above one hundred thousand 35 dollars, (2) a tax of eight-tenths of one percent on the portion of such 36 income above two hundred thousand dollars, and (3) a surcharge of ten 37 percent on the amount of tax due by every resident individual, estate or 38 trust and of every nonresident or part-year resident individual, estate 39 or trust pursuant to section thirteen hundred four of this article. 40 (e) For taxable years beginning in two thousand twenty, the tax 41 surcharges imposed pursuant to the authority of this section shall be 42 determined as follows: (1) a tax of seven-tenths of one percent on the 43 portion of the New York city source adjusted gross income of every resi- 44 dent individual, estate or trust and of every nonresident or part-year 45 resident individual, estate or trust, above one hundred thousand 46 dollars, (2) a tax of seven-tenths of one percent on the portion of such 47 income above two hundred thousand dollars, and (3) a surcharge of eight 48 and three-quarters percent on the amount of tax due by every resident 49 individual, estate or trust and of every nonresident or part-year resi- 50 dent individual, estate or trust pursuant to section thirteen hundred 51 four of this article. 52 (f) For taxable years beginning in two thousand twenty-one, the tax 53 surcharges imposed pursuant to the authority of this section shall be 54 determined as follows: (1) a tax of six-tenths of one percent on the 55 portion of the New York city source adjusted gross income of every resi- 56 dent individual, estate or trust and of every nonresident or part-yearS. 2834 3 1 resident individual, estate or trust, above one hundred thousand 2 dollars, (2) a tax of six-tenths of one percent on the portion of such 3 income above two hundred thousand dollars, and (3) a surcharge of seven 4 and one-half percent on the amount of tax due by every resident individ- 5 ual, estate or trust and of every nonresident or part-year resident 6 individual, estate or trust pursuant to section thirteen hundred four of 7 this article. 8 (g) For taxable years beginning in two thousand twenty-two and there- 9 after, the tax surcharges imposed pursuant to the authority of this 10 section shall be determined as follows: (1) a tax of one-half of one 11 percent on the portion of the New York city source adjusted gross income 12 of every resident individual, estate or trust and of every nonresident 13 or part-year resident individual, estate or trust, above one hundred 14 thousand dollars, (2) a tax of one-half of one percent on the portion of 15 such income above two hundred thousand dollars, and (3) a surcharge of 16 six and one-quarter percent on the amount of tax due by every resident 17 individual, estate or trust and of every nonresident or part-year resi- 18 dent individual, estate or trust pursuant to section thirteen hundred 19 four of this article. 20 (h) The commissioner in cooperation with the comptroller shall main- 21 tain such records as are necessary to determine what portion of the 22 income tax revenues collected on behalf of a city imposing taxes pursu- 23 ant to this article are attributable to the emergency in education tax 24 surcharge established by this section and shall transmit such funds to 25 such city in a manner that allows such funds to be clearly segregated 26 from all other funds and accounted for separately. Such city shall main- 27 tain such funds in a separate fund to be called the emergency in educa- 28 tion tax surcharge revenue account and shall publish monthly reports on 29 such fund's receipts, disbursements and balances in a manner that will 30 allow for a clear understanding of the financial condition of such fund 31 and of the uses that have been made of the fund's resources. Disburse- 32 ments from this fund shall be in addition to the funds that such city is 33 required to make for educational purposes pursuant to subdivision five-c 34 of section twenty-five hundred seventy-six of the education law and no 35 disbursements from this fund or other financial transactions involving 36 this fund shall be taken into consideration in any manner whatsoever in 37 determining such city's compliance with the requirements of such subdi- 38 vision five-c of section twenty-five hundred seventy-six of the educa- 39 tion law. 40 (i) Any monies generated by this section shall be used for public 41 education purposes only, including hiring and retaining teachers, teach- 42 er training, decreasing class sizes, and equipping and building facili- 43 ties. 44 § 3. The education law is amended by adding a new section 2589 to read 45 as follows: 46 § 2589. Emergency in education operating aid. 1. In addition to the 47 general operating aid authorized by any other section of law, any city 48 imposing an emergency in education tax surcharge pursuant to section 49 thirteen hundred four-e of the tax law shall receive additional appor- 50 tionments of public money for general operating aid purposes, to be 51 known as emergency in education operating aid, for school years commenc- 52 ing on and after July first, two thousand eighteen as set forth in 53 subdivisions two, three, four, five, six and seven of this section. Such 54 apportionments shall be in addition to and not in lieu of the apportion- 55 ments of public money to such city for general operating aid purposes 56 made available to such city pursuant to other sections of law andS. 2834 4 1 provided that the amounts made available to such city pursuant to such 2 other provisions of law shall not in any school year commencing on or 3 after July first, two thousand eighteen be less than the amount made 4 available to such city for such purposes, with the categories of aid to 5 be covered by this requirement to be determined by the commissioner, 6 during the school year commencing on July first, two thousand seventeen 7 times a number determined by dividing the consumer price index for all 8 urban consumers for the calendar year preceding the commencement of the 9 school year for which such apportionment is being provided by the 10 consumer price index for all urban consumers for the two thousand four- 11 teen calendar year. 12 2. For the school year commencing on July first, two thousand eigh- 13 teen, such emergency in education operating aid shall be an amount equal 14 to twenty percent of the amount transmitted to such a city pursuant to 15 subsection (h) of section thirteen hundred four-e of the tax law during 16 the two thousand fourteen calendar year. 17 3. For the school year commencing on July first, two thousand nine- 18 teen, such emergency in education operating aid shall be an amount equal 19 to twenty percent of the amount transmitted to such a city pursuant to 20 subsection (h) of section thirteen hundred four-e of the tax law during 21 the two thousand fifteen calendar year. 22 4. For the school year commencing on July first, two thousand twenty, 23 such emergency in education operating aid shall be an amount equal to 24 forty percent of the amount transmitted to such a city pursuant to 25 subsection (h) of section thirteen hundred four-e of the tax law during 26 the two thousand sixteen calendar year. 27 5. For the school year commencing on July first, two thousand twenty- 28 one, such emergency in education operating aid shall be an amount equal 29 to sixty percent of the amount transmitted to such a city pursuant to 30 subsection (h) of section thirteen hundred four-e of the tax law during 31 the two thousand seventeen calendar year. 32 6. For the school year commencing on July first, two thousand twenty- 33 two, such emergency in education operating aid shall be an amount equal 34 to eighty percent of the amount transmitted to such a city pursuant to 35 subsection (h) of section thirteen hundred four-e of the tax law during 36 the two thousand eighteen calendar year. 37 7. For the school year commencing on and after July first, two thou- 38 sand twenty-three, such emergency in education operating aid shall be an 39 amount equal to the amount transmitted to such a city pursuant to 40 subsection (h) of section thirteen hundred four-e of the tax law during 41 the preceding calendar year. 42 8. The moneys generated by this section shall be used for public 43 education purposes only, including hiring and retaining teachers, teach- 44 er training, decreasing class sizes and equipping and building class- 45 rooms. 46 § 4. Section 2576 of the education law is amended by adding a new 47 subdivision 5-c to read as follows: 48 5-c. a. If the total amount requested in such estimate is not appro- 49 priated, each city having a population of one million or more inhabit- 50 ants shall appropriate an amount not less than the greater of: 51 (i) the product of the city share in the base year and the pupil 52 change index, as such terms are defined in paragraph c of this subdivi- 53 sion, or 54 (ii) an amount equal to the average proportion of the total expense 55 budget of such city, as amended, not including the portion of such 56 expense budget equal to the total state and federal aid appropriated forS. 2834 5 1 education purposes, appropriated for the purposes of such city school 2 district in the three fiscal years of such city immediately preceding 3 the year for which said estimate is filed. 4 b. If the total amount requested in the estimate exceeds the greater 5 of the two amounts computed in paragraph a of this subdivision, such 6 excess shall be subject to such consideration and such action by the 7 appropriate city legislative body and/or city officer as that taken upon 8 other departmental estimates. The city is authorized to make additional 9 appropriations for educational purposes authorized by this chapter. 10 c. For the purposes of this subdivision, the terms: 11 (i) "city share" shall mean: the total appropriation of any city 12 having a population of one million or more inhabitants for elementary 13 and secondary education purposes as defined by the commissioner minus 14 the total amount of federal and state aid appropriated for elementary 15 and secondary education purposes; 16 (ii) "base year" shall mean: the fiscal year immediately preceding the 17 fiscal year for which the estimate is filed; 18 (iii) "pupil change index" shall mean: the ratio computed by dividing 19 the total public school enrollment of the city school district, includ- 20 ing all students wholly or partially supported by such city's funds, in 21 the year in which the estimate is filed by the enrollment of such city 22 school district in the year immediately preceding the year in which the 23 estimate is filed. 24 § 5. This act shall take effect immediately.
