S4309-2011 Actions

• Jan 4, 2012: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
• Mar 28, 2011: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

S4309-2011 Memo

BILL NUMBER:S4309

TITLE OF BILL:
An act
to amend the tax law, in relation to personal income tax rates;
and to repeal paragraph 1 of subsections (a), (b) and (c) of section 601
of the tax law, in relation thereto

PURPOSE:
This bill reduces the marginal personal income tax for taxable years
beginning after 2005 from 6.85% to 6.5%, alleviating a portion of the
tax burden for small businesses and individual taxpayers.

SUMMARY OF PROVISIONS:
�1 - Amends paragraph 1 of subsections (a), (b) and (c) and
subparagraph (A) of paragraph 1 of subsection (d) of section 601 of
the Tax Law. The lowest personal income tax rate of 6.85% is
decreased by 0.35% to 6.5%.

�2 - Effective date.

JUSTIFICATION:
In the 2005-2006 budget, provisions were included to reduce the
corporate franchise tax for many small incorporated businesses from
6.85% to 6.5%. However, this tax reduction does not apply to sole
proprietors, partnerships, subchapter S corporations or limited
liability companies that pay their taxes via personal income tax.
This legislation reduces the marginal personal income tax for taxable
years beginning after 2005 from 6.85% to 6.5% to allow these small
businesses and individual taxpayers to also experience some relief.

LEGISLATIVE HISTORY:
2009-2010: A.2814
2007-2008: A.3124
2005-2006: A.7950

FISCAL IMPLICATIONS:
Yet to be determined.

EFFECTIVE DATE:
This act shall take effect immediately.

S4309-2011 Text

 S T A T E   O F   N E W   Y O R K
 
 
                                         4309
 2011-2012 Regular Sessions
 I N  SENATE
 March 28, 2011
 
 Introduced  by  Sens.  DeFRANCISCO,  MAZIARZ,  SEWARD  -- read twice and
 ordered printed, and when printed to be committed to the Committee  on
 Investigations and Government Operations
 AN  ACT  to amend the tax law, in relation to personal income tax rates;
 and to repeal paragraph 1 of subsections (a), (b) and (c)  of  section
 of the tax law, in relation thereto
 

THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM
 BLY, DO ENACT AS FOLLOWS:

 

Section 1. Paragraph 1 of subsections (a), (b) and (c) of section  601
 of the tax law are REPEALED  and paragraphs 2, 3, 4, 5, 6, 7, 8 and 9 of
 subsections (a), (b) and (c) are renumbered paragraphs 1, 2, 3, 4, 5, 6,
 7 and 8.
 

S  2. Paragraph 1 of subsections (a), (b) and (c) and subparagraph (A)
 of paragraph 1 of subsection (d) of section 601 of the  tax  law,  para
 graph  1 of subsections (a), (b) and (c) as amended by section 1 of part
 Z1 of chapter 57 of the laws of 2009 and as renumbered by section  1  of
 this  act  and  subparagraph  (A)  of  paragraph  1 of subsection (d) as
 amended by section 1 of part R of chapter 63 of the laws  of  2003,  are
 amended to read as follows:

 (1)  For  taxable  years beginning after two thousand five [and before
 two thousand nine and after two thousand eleven]:

 If the New York taxable income is:    The tax is:

 Not over $16,000                      4% of the New York taxable
 income
 Over $16,000 but not over $22,000     $640 plus 4.5% of excess over
 $16,000
 Over $22,000 but not over $26,000     $910 plus 5.25% of excess over
 $22,000
 Over $26,000 but not over $40,000     $1,120 plus 5.9% of excess over
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD07271-01-1
 
       S. 4309                             2
 $26,000
 Over $40,000                          $1,946 plus [6.85%] 6.5%
 of excess over $40,000
 (1)  For  taxable  years beginning after two thousand five [and before
 two thousand nine and after two thousand eleven]:

 If the New York taxable income is:    The tax is:

 Not over $11,000                      4% of the New York taxable
 income
 Over $11,000 but not over $15,000     $440 plus 4.5% of excess over
 $11,000
 Over $15,000 but not over $17,000     $620 plus 5.25% of excess over
 $15,000
 Over $17,000 but not over $30,000     $725 plus 5.9% of excess over
 $17,000
 Over $30,000                          $1,492 plus [6.85%] 6.5%
 of excess over $30,000
 (1) For taxable years beginning after two thousand  five  [and  before
 two thousand nine and after two thousand eleven]:

 If the New York taxable income is:    The tax is:

 Not over $8,000                       4% of the New York taxable
 income
 Over $8,000 but not over $11,000      $320 plus 4.5% of excess over
 $8,000
 Over $11,000 but not over $13,000     $455 plus 5.25% of excess over
 $11,000
 Over $13,000 but not over $20,000     $560 plus 5.9% of excess over
 $13,000
 Over $20,000                          $973 plus [6.85%] 6.5%
 of excess over $20,000
 (A)  The tax table benefit is the difference between (i) the amount of
 taxable income set forth in the tax table in subsection (a), (b) or (c),
 of this section, as the case may be, or in section six  hundred  ninety
 nine,  as the case may be, not subject to the [6.85] 6.5 percent rate of
 tax for the taxable year multiplied by such rate  and  (ii)  the  dollar
 denominated  tax  for such amount of taxable income set forth in the tax
 table applicable to the taxable year in subsection (a), (b)  or  (c)  of
 this section, as the case may be, or section six hundred ninety-nine, as
 the case may be.
 

S 3. This act shall take effect immediately.

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