Bill Text: NY S03215 | 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.
Sponsorship: Partisan Bill (Democrat 12)
Status: (Introduced - Dead) 2022-01-05 - REFERRED TO BUDGET AND REVENUE [S03215 Detail]
Download: New_York-2021-S03215-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 3215 2021-2022 Regular Sessions IN SENATE January 28, 2021 ___________ Introduced by Sens. MAYER, STAVISKY, BIAGGI, BRESLIN, GOUNARDES, HOYL- MAN, MYRIE, PARKER, RAMOS, SANDERS, SERRANO -- 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 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 EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD02672-03-1S. 3215 2 1 $2,155,350 $323,200 over 2 Over $2,155,350 but not over $145,177 plus 8.82% of excess over 3 $5,000,000 $2,155,350 4 Over $5,000,000 $396,076 plus 10.9% of excess over 5 $5,000,000 6 (iv) For taxable years beginning in two thousand twenty-one the 7 following rates shall apply: 8 If the New York taxable income is: The tax is: 9 Not over $17,150 4% of the New York taxable income 10 Over $17,150 but not over $23,600 $686 plus 4.5% of excess over 11 $17,150 12 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over 13 $23,600 14 Over $27,900 but not over $43,000 $1,202 plus 5.9% of excess over 15 $27,900 16 Over $43,000 but not over $161,550 $2,093 plus 5.97% of excess over 17 $43,000 18 Over $161,550 but not over $323,200 $9,170 plus 6.33% of excess over 19 $161,550 20 Over $323,200 but not over $19,403 plus 6.85% of excess 21 $2,155,350 over $323,200 22 Over $2,155,350 but not over $144,905 plus 8.82% of excess over 23 $5,000,000 $2,155,350 24 Over $5,000,000 $395,803 plus 10.9% of excess over 25 $5,000,000 26 § 2. Clauses (iii) and (iv) of subparagraph (B) of paragraph 1 of 27 subsection (b) of section 601 of the tax law, as amended by section 2 of 28 part P of chapter 59 of the laws of 2019, are amended to read as 29 follows: 30 (iii) For taxable years beginning in two thousand twenty the following 31 rates shall apply: 32 If the New York taxable income is: The tax is: 33 Not over $12,800 4% of the New York taxable income 34 Over $12,800 but not over $17,650 $512 plus 4.5% of excess over $12,800 35 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over 36 $17,650 37 Over $20,900 but not over $32,200 $901 plus 5.9% of excess over $20,900 38 Over $32,200 but not over $107,650 $1,568 plus 6.09% of excess over 39 $32,200 40 Over $107,650 but not over $269,300 $6,162 plus 6.41% of excess over 41 $107,650 42 Over $269,300 but not over $16,524 plus 6.85% of 43 $1,616,450 excess over $269,300 44 Over $1,616,450 but not over $108,804 plus 8.82% of excess over 45 $5,000,000 $1,616,450 46 Over $5,000,000 $407,233 plus 10.9% of excess over 47 $5,000,000 48 (iv) For taxable years beginning in two thousand twenty-one the 49 following rates shall apply: 50 If the New York taxable income is: The tax is: 51 Not over $12,800 4% of the New York taxable income 52 Over $12,800 but not over $17,650 $512 plus 4.5% of excess over 53 $12,800 54 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over 55 $17,650 56 Over $20,900 but not over $32,200 $901 plus 5.9% of excess overS. 3215 3 1 $20,900 2 Over $32,200 but not over $107,650 $1,568 plus 5.97% of excess over 3 $32,200 4 Over $107,650 but not over $269,300 $6,072 plus 6.33% of excess over 5 $107,650 6 Over $269,300 but not over $16,304 plus 6.85% of 7 $1,616,450 excess over $269,300 8 Over $1,616,450 but not over $108,584 plus 8.82% of excess over 9 $5,000,000 $1,616,450 10 Over $5,000,000 $407,013 plus 10.9% of excess over 11 $5,000,000 12 § 3. Clauses (iii) and (iv) of subparagraph (B) of paragraph 1 of 13 subsection (c) of section 601 of the tax law, as amended by section 3 of 14 part P of chapter 59 of the laws of 2019, are amended to read as 15 follows: 16 (iii) For taxable years beginning in two thousand twenty the following 17 rates shall apply: 18 If the New York taxable income is: The tax is: 19 Not over $8,500 4% of the New York taxable income 20 Over $8,500 but not over $11,700 $340 plus 4.5% of excess over 21 $8,500 22 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over 23 $11,700 24 Over $13,900 but not over $21,400 $600 plus 5.9% of excess over 25 $13,900 26 Over $21,400 but not over $80,650 $1,042 plus 6.09% of excess over 27 $21,400 28 Over $80,650 but not over $215,400 $4,650 plus 6.41% of excess over 29 $80,650 30 Over $215,400 but not over $13,288 plus 6.85% of excess 31 $1,077,550 over $215,400 32 Over $1,077,550 but not over $72,345 plus 8.82% of excess over 33 $5,000,000 $1,077,550 34 Over $5,000,000 $418,305 plus 10.9% of excess over 35 $5,000,000 36 (iv) For taxable years beginning in two thousand twenty-one the 37 following rates shall apply: 38 If the New York taxable income is: The tax is: 39 Not over $8,500 4% of the New York taxable income 40 Over $8,500 but not over $11,700 $340 plus 4.5% of excess over 41 $8,500 42 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over 43 $11,700 44 Over $13,900 but not over $21,400 $600 plus 5.9% of excess over 45 $13,900 46 Over $21,400 but not over $80,650 $1,042 plus 5.97% of excess over 47 $21,400 48 Over $80,650 but not over $215,400 $4,579 plus 6.33% of excess over 49 $80,650 50 Over $215,400 but not over $13,109 plus 6.85% of excess 51 $1,077,550 over $215,400 52 Over $1,077,550 but not over $72,166 plus 8.82% of excess over 53 $5,000,000 $1,077,550 54 Over $5,000,000 $418,126 plus 10.9% of excess over 55 $5,000,000S. 3215 4 1 § 4. Section 171-a of the tax law is amended by adding a new subdivi- 2 sion 3 to read as follows: 3 3. Notwithstanding subdivision one of this section or any other 4 provision of law to the contrary, eighty-five percent of any revenue 5 derived from an increase in the taxes imposed on income over five 6 million dollars pursuant to section six hundred one of this chapter 7 attributable to the difference in the rate of such taxes for taxable 8 year two thousand twenty and the rate of such taxes for taxable year two 9 thousand nineteen and the difference in the rate of such taxes for taxa- 10 ble year two thousand twenty-one and the rate of such taxes for taxable 11 year two thousand nineteen shall be deposited in the state lottery fund, 12 created pursuant to section ninety-two-c of the state finance law, as 13 such taxes are received. The remaining fifteen percent of such derived 14 revenue shall be deposited in the supplemental public higher education 15 fund, created pursuant to section seventy-eight-c of the state finance 16 law. The amount for administrative costs shall be determined by the 17 commissioner to represent reasonable costs of the department in adminis- 18 tering, collecting, determining and distributing such taxes. Of the 19 total revenue collected or received under such sections of this chapter, 20 the comptroller shall retain in his or her hands such amount as the 21 commissioner may determine to be necessary for refunds or reimbursements 22 under such sections of this chapter out of which amount the comptroller 23 shall pay any refunds or reimbursements to which taxpayers shall be 24 entitled under provisions of such sections. The commissioner and the 25 comptroller shall maintain a system of accounts showing the amount of 26 revenue collected or received from each of the taxes imposed by such 27 sections. 28 § 5. Section 601 of the tax law is amended by adding a new subsection 29 (d-2) to read as follows: 30 (d-2) Alternative tax table benefit recapture. For taxable years two 31 thousand twenty and two thousand twenty-one for a taxpayer whose New 32 York taxable income is over five million dollars, there is hereby 33 imposed a supplemental tax in addition to the tax imposed under 34 subsections (a), (b), (c) and (d-1) of this section for the purpose of 35 recapturing the benefit of the tax tables contained in such subsections. 36 During these taxable years, any reference in this chapter to subsection 37 (d) of this section shall be read as a reference to this subsection. 38 (1) For resident married individuals filing joint returns and resident 39 surviving spouses, the supplemental tax shall be an amount equal to the 40 sum of the tax table benefit in subparagraph (A) of this paragraph 41 multiplied by the respective fraction in such subparagraph. 42 (A) The tax table benefit is the difference between (i) the amount of 43 taxable income set forth in the tax table in paragraph one of subsection 44 (a) of this section not subject to the 10.9 percent rate of tax for the 45 taxable year multiplied by such rate and (ii) the dollar denominated tax 46 for such amount of taxable income set forth in the tax table applicable 47 to the taxable year in paragraph one of subsection (a) of this section 48 less the sum of the tax table benefits in subparagraphs (A), (B) and (C) 49 of paragraph one of subsection (d-1) of this section. The fraction for 50 this subparagraph is computed as follows: the numerator is the lesser of 51 fifty thousand dollars or the excess of New York adjusted gross income 52 for the taxable year over five million dollars and the denominator is 53 fifty thousand dollars. Provided, however, this subparagraph shall not 54 apply to taxpayers who are not subject to the 10.9 percent tax rate. 55 (B) Provided, however, the total tax prior to the application of any 56 tax credits shall not exceed the highest rate of tax set forth in theS. 3215 5 1 tax tables in subsection (a) of this section multiplied by the taxpay- 2 er's taxable income. 3 (2) For resident heads of households, the supplemental tax shall be an 4 amount equal to the sum of the tax table benefit described in subpara- 5 graph (A) of this paragraph multiplied by the respective fraction in 6 such subparagraph. 7 (A) The tax table benefit is the difference between (i) the amount of 8 taxable income set forth in the tax table in paragraph one of subsection 9 (b) of this section not subject to the 10.9 percent rate of tax for the 10 taxable year multiplied by such rate and (ii) the dollar denominated tax 11 for such amount of taxable income set forth in the tax table applicable 12 to the taxable year in paragraph one of subsection (b) of this section 13 less the sum of the tax table benefits in subparagraphs (A) and (B) of 14 paragraph two of subsection (d-1) of this section. The fraction for this 15 subparagraph is computed as follows: the numerator is the lesser of 16 fifty thousand dollars or the excess of New York adjusted gross income 17 for the taxable year over five million dollars and the denominator is 18 fifty thousand dollars. Provided, however, this subparagraph shall not 19 apply to taxpayers who are not subject to the 10.9 percent tax rate. 20 (B) Provided, however, the total tax prior to the application of any 21 tax credits shall not exceed the highest rate of tax set forth in the 22 tax tables in subsection (b) of this section multiplied by the taxpay- 23 er's taxable income. 24 (3) For resident unmarried individuals, resident married individuals 25 filing separate returns and resident estates and trusts, the supple- 26 mental tax shall be an amount equal to the sum of the tax table benefits 27 described in subparagraph (A) of this paragraph multiplied by the 28 respective fractions in such subparagraph. 29 (A) The tax table benefit is the difference between (i) the amount of 30 taxable income set forth in the tax table in paragraph one of subsection 31 (c) of this section not subject to the 10.9 percent rate of tax for the 32 taxable year multiplied by such rate and (ii) the dollar denominated tax 33 for such amount of taxable income set forth in the tax table applicable 34 to the taxable year in paragraph one of subsection (c) of this section 35 less the sum of the tax table benefits in subparagraphs (A) and (B) of 36 paragraph three of subsection (d-1) of this section. The fraction for 37 this subparagraph is computed as follows: the numerator is the lesser of 38 fifty thousand dollars or the excess of New York adjusted gross income 39 for the taxable year over five million dollars and the denominator is 40 fifty thousand dollars. Provided, however, this subparagraph shall not 41 apply to taxpayers who are not subject to the 10.9 percent tax rate. 42 (B) Provided, however, the total tax prior to the application of any 43 tax credits shall not exceed the highest rate of tax set forth in the 44 tax tables in subsection (c) of this section multiplied by the taxpay- 45 er's taxable income. 46 § 6. Section 92-c of the state finance law is amended by adding a new 47 subdivision 3-a to read as follows: 48 3-a. Moneys in such fund deposited pursuant to the provisions of 49 subdivision three of section one hundred seventy-one-a of the tax law 50 shall be appropriated or transferred only for the general support of 51 public schools. 52 § 7. The state finance law is amended by adding a new section 78-c to 53 read as follows: 54 § 78-c. Supplemental public higher education fund. 1. There is hereby 55 established in the joint custody of the state comptroller and theS. 3215 6 1 commissioner of taxation and finance a fund to be known as the "supple- 2 mental public higher education fund". 3 2. Such fund shall consist of the revenues received by the department 4 of taxation and finance, pursuant to the provisions of subdivision three 5 of section one hundred seventy-one-a of the tax law, and all other 6 moneys appropriated, credited, or transferred thereto from any other 7 fund or source pursuant to law. Nothing in this section shall prevent 8 the state from soliciting and receiving grants, gifts or bequests for 9 the purposes of the fund as defined in this section and depositing them 10 into the fund according to law. 11 3. Moneys of the fund shall be distributed equally to the state 12 university of New York and the city university of New York for addi- 13 tional operating support, as appropriated by the legislature. 14 § 8. Notwithstanding any law, rule or regulation to the contrary, any 15 moneys collected pursuant to subdivision 3 of section 171-a of the tax 16 law and appropriated for the general support of public schools shall not 17 diminish the amount of school aid appropriated for any given school 18 year. Such collected moneys shall be additional funding. For the 19 purposes of this section, "amount of school aid" shall mean the amount 20 appropriated pursuant to the state budget for the previous school year. 21 § 9. Notwithstanding any law, rule or regulation to the contrary, any 22 moneys collected pursuant to subdivision 3 of section 171-a of the tax 23 law and appropriated for additional operating support of the state 24 university of New York and the city university of New York shall not 25 diminish the amount of operating support for the state university of New 26 York and the city university of New York appropriated for any given 27 academic year. Such collected moneys shall be additional funding. For 28 the purposes of this section, "operating support" shall mean the amount 29 appropriated pursuant to the state budget for the previous academic 30 year. 31 § 10. This act shall take effect immediately and shall be deemed to 32 have been in full force and effect on and after January 1, 2020 and 33 shall apply to taxable years on and after such date.
