Provides that state taxes, fees, assessments and surcharges shall not be raised, extended, imposed or revived if there is surplus money in the general fund.
TITLE OF BILL: An act to amend the state finance law, in relation to restriction on raising, extending, imposing and revising state taxes, fees, assessments, surcharges and levies
PURPOSE: Provides that state taxes shall not be raised if the tax stabilization reserve fund is fully funded and there is surplus money in the general fund.
SUMMARY OF PROVISIONS: Section 1 - Amends subdivision 3 of section 92 of the state finance law.
JUSTIFICATION: This bill prevents New York State from raising taxes, fees, assessment or surcharges in the next State Fiscal Year when there is cash surplus remaining at the close of the State Fiscal Year (SFY).
It is unfair for taxpayers of New York State to pay more in taxes the following SFY while the State had a surplus in the previous SFY year ending March 31.
The Reserve Fund was created to be used to close budget shortfalls in a particular SFY. It should always be New York State's last resort to raise taxes. The state should not raise taxes when the state treasury is flush with cash. New York State is one of the highest taxed states in the country. This bill would provide tax relief to the hard working people of New York State by preventing the State from raising taxes when it is not necessary to do so.
LEGISLATIVE HISTORY: 2011: S.3549 - 3rd Reading Calendar/A.7051 - Referred to Ways & Means 2010: S.511 - Referred to Finance/A.7406 - Referred to Ways & Means 2009: S.511 - Referred to Finance/A.7406 - Referred to Ways & Means 2008: S.5613 - Referred to Finance/A.8474 - Referred to Ways & Means 2007: S.5613 - Referred to Finance/A.8474 - Referred to Ways & Means
FISCAL IMPLICATIONS: None.
EFFECTIVE DATE: This act shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 3549--B Cal. No. 333 2011-2012 Regular Sessions IN SENATE February 25, 2011 ___________Introduced by Sen. LANZA -- read twice and ordered printed, and when printed to be committed to the Committee on Finance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- recommitted to the Committee on Finance in accordance with Senate Rule 6, sec. 8 -- reported favorably from said committee, ordered to first and second report, ordered to a third reading, amended and ordered reprinted, retaining its place in the order of third reading AN ACT to amend the state finance law, in relation to restriction on raising, extending, imposing and revising state taxes, fees, assess- ments, surcharges and levies THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision 3 of section 92 of the state finance law, as separately amended by chapters 405 and 957 of the laws of 1981, is amended to read as follows: 3. At the close of each fiscal year any cash surplus remaining in the general fund over and above the norm for such fiscal year shall be transferred from or retained in such fund as hereinafter in this subdi- vision provided. There shall be transferred to the tax stabilization reserve fund all of such surplus moneys, up to and including an amount equivalent to two-tenths of one per centum of such norm, unless such transfer would increase such reserve fund to an amount in excess of two per centum of the amount of the norm for such fiscal year, in which event such transfer shall be limited to such amount as will increase such reserve fund to such two per centum limitation. Any balance of such surplus moneys, thereafter remaining in the general fund, shall be retained in such fund and be available for the reduction of state taxes. IF AT THE CLOSE OF ANY FISCAL YEAR THERE EXISTS ANY CASH SURPLUS REMAIN- ING IN THE GENERAL FUND OVER AND ABOVE THE NORM, IN THE FOLLOWING STATE FISCAL YEAR THERE SHALL NOT BE ENACTMENT OF ANY INCREASE, EXTENSION, IMPOSITION OR REVIVAL OF ANY STATE TAX, FEE, ASSESSMENT, SURCHARGE OR OTHER LEVY WHICH EFFECTS REVENUES IN SUCH FISCAL YEAR. S 2. This act shall take effect immediately.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD02721-04-2