Bill S5016C-2011

Includes New York exemptions of a resident individual within the cost of living adjustment and makes adjustment applicable to tax years beginning on or after 1/1/13

Includes New York exemptions of a resident individual within the cost of living adjustment; makes such adjustment applicable to tax years beginning on or after January 1, 2013.

Details

Actions

  • May 31, 2012: REPORTED AND COMMITTED TO FINANCE
  • May 4, 2012: PRINT NUMBER 5016C
  • May 4, 2012: AMEND (T) AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • Jan 5, 2012: PRINT NUMBER 5016B
  • Jan 5, 2012: AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • Jan 4, 2012: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • Jun 7, 2011: REPORTED AND COMMITTED TO FINANCE
  • May 20, 2011: PRINT NUMBER 5016A
  • May 20, 2011: AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • May 2, 2011: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Votes

VOTE: COMMITTEE VOTE: - Investigations and Government Operations - May 31, 2012
Ayes (5): Marcellino, Alesi, Golden, Nozzolio, Zeldin
Ayes W/R (2): Squadron, Peralta
Excused (1): Diaz

Memo

BILL NUMBER:S5016C

TITLE OF BILL:

An act to amend the tax law, in relation to including New York exemptions of a resident individual within the cost of living adjustment and making such adjustment applicable to tax years beginning on or after January 1, 2013

PURPOSE:

To adjust the taxable income brackets, the standard deduction and the dependent exemption under the personal income tax to the rate of inflation.

SUMMARY OF PROVISIONS:

Section 1 amends section 601 of the Tax Law to adjust the rate brackets for each personal income tax filing type for the rate of inflation.

Section 2 provides effective date.

JUSTIFICATION:

The Federal Government provides for a cost of living adjustment in relation to the imposition of the personal income tax at the federal level. This cost of living adjustment applies to the taxable income levels to which the tax rates apply, the standard deduction and the personal exemption. By utilizing this cost of living adjustment, the "bracket creep" is eliminated which forces a taxpayer into a higher income tax bracket as a result of his income increasing due to inflation.

In December of 2011 the Tax Law was amended and indexed the income brackets and the standard deduction to the rate of inflation. However, this is only effective for 2 years. The dependent exemption, which is set at $1,000 per dependent, has not been changed since 1987. In comparison, the Federal Government exemption is equal to $3,650 per dependent.

LEGISLATIVE HISTORY:

New bill.

FISCAL IMPLICATIONS:

$100M in fiscal year 2013-14; $300M when fully effective.

EFFECTIVE DATE:

Applies to tax years beginning on or after January 1, 2013.


Text

STATE OF NEW YORK ________________________________________________________________________ 5016--C 2011-2012 Regular Sessions IN SENATE May 2, 2011 ___________
Introduced by Sens. DeFRANCISCO, SKELOS, LARKIN, MAZIARZ, RANZENHOFER, SEWARD, ZELDIN -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Oper- ations -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- recommitted to the Committee on Investigations and Government Operations in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the tax law, in relation to including New York exemptions of a resident individual within the cost of living adjust- ment and making such adjustment applicable to tax years beginning on or after January 1, 2013 THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 601-a of the tax law, as added by section 9 of part A of chapter 56 of the laws of 2011, is amended to read as follows: S 601-a. Cost of living adjustment. (a) For tax [year] YEARS BEGINNING ON OR AFTER JANUARY FIRST, two thousand thirteen, the commissioner, not later than September first[, two thousand twelve,] OF EACH PRECEDING CALENDAR YEAR, shall multiply the amounts specified in subsection (b) of this section for tax year two thousand twelve by one plus the cost of living adjustment described in subsection (c) of this section. [For tax year two thousand fourteen, the commissioner, not later than September first, two thousand thirteen, shall multiply the amounts specified in subsection (b) of this section for tax year two thousand thirteen by one plus the cost of living adjustment.] (b) The following amounts shall be indexed by the cost of living adjustment.
(1) The dollar amounts in the tax tables set forth in paragraph one of subsection (a), paragraph one of subsection (b) and paragraph one of subsection (c) of section six hundred one of this part. (2) The dollar amount in the numerator of the fractions in subsection (d) of section six hundred one of this part that is not fifty thousand dollars. (3) The New York standard deduction of a resident individual in section six hundred fourteen of this article. (4) THE NEW YORK EXEMPTIONS OF A RESIDENT INDIVIDUAL IN SECTION SIX HUNDRED SIXTEEN OF THIS ARTICLE. (c) The cost of living adjustment for a tax year is the percentage if any, by which the average monthly value of the consumer price index for the twelve month period ending on June thirtieth of the year immediately preceding the tax year for which the adjustment is being made (referred to as the adjustment year) exceeds the average monthly value of the consumer price index for the twelve month period ending on June thirti- eth [of the year immediately preceding the adjustment year] TWO THOUSAND TWELVE. For purposes of this section, the consumer price index means the consumer price index for all urban consumers published by the United States department of labor. (d) If the product of the amounts in subsection (b) and subsection (c) of this section is not a multiple of [fifty] ONE HUNDRED dollars, such increase shall be rounded to the next [lowest] HIGHEST multiple of [fifty] ONE HUNDRED dollars. S 2. This act shall take effect immediately and shall apply to tax years beginning on or after January 2013.

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