Relates to increasing income tax rates on incomes over one million dollars.
Sponsor: AVELLA / Committee: INVESTIGATIONS AND GOVERNMENT OPERATIONS
Law Section: Tax Law / Law: Amd SS601 & 685, Tax L
Sponsor: AVELLA / Committee: INVESTIGATIONS AND GOVERNMENT OPERATIONS
Law Section: Tax Law / Law: Amd SS601 & 685, Tax L
S5277-2011 Actions
- Jan 4, 2012: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
- May 3, 2011: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
S5277-2011 Memo
BILL NUMBER:S5277
TITLE OF BILL:
An act
to amend the tax law, in relation to increases on income tax rates on
incomes over one million dollars
PURPOSE OR GENERAL IDEA OF BILL:
The legislation will extend the current income tax rates commonly
referred to as the "personal income tax surcharge" (or "PIT") through
the year 2012 and be amended to apply only to those individuals
earning in excess of $1,000,000 for the year 2012. This would apply
to all taxpayers filing as unmarried individuals, married individuals
filing separate returns and estates and trusts, heads of households
and married individuals filing joint returns.
SUMMARY OF PROVISIONS:
Section 1 of the bill amends subsections (a), (b), and (c) of section
601 of the tax law, as amended by section 1 of part Z-1 of chapter
57 of the laws of 2009 the tax rates imposed for the taxable years
beginning after 2011 and before 2013 are as follows:
(a) for married individuals filing joint returns and surviving spouses:
IF NEW YORK INCOME IS: THE TAX IS:
Not over $16,000 4%
Over $16,000/not over $22,000 $640 + 4.5% of excess over $16,000
Over $22,000/not over $16,000 $910 + 5.25% of excess over $22,00
Over $26,000/not over $40,000 $1,120 + 5.9% of excess over $26,000
Over $40,000/not over $1,000,000 $1,946 + 6.85% of excess over $40,000
Over $1,000,000 $67,706 + 8.97% of excess over
$1,000,000
(b) for heads of households:
IF NEW YORK TAXABLE INCOME IS: THE TAX IS:
Not over $11,000 4%
Over $11,000/not over $15,000 $440 + 4.5% of excess over $11,000
Over $15,000/not over $17,000 $620 + 5.25% of excess over $15,000
Over $17,000/not over $30,000 $725 + 5.9% of excess over $17,000
Over $30,000/not over $1,000,000 $1,492 + 6.85% of excess over $30,000
Over $1,000,000 $67,937 + 8.97% of excess over
$1,000,000
(c) for unmarried individuals, married individuals filing separate
returns and estates and trusts:
IF NEW YORK TAXABLE INCOME IS: THE TAX IS:
Not over $8,000 4%
Over $8,000/not over $11,000 $320 + 4.5% of excess over $8,000
Over $11,000/not over $13,000 $455 + 5.25% of excess over 11,000
Over $13,000/not over $20,000 $560 + 5.9% of excess over $13,000
Over $20,000/not over $1,000,000 $973 + 6.85% of excess over $20,000
Over $1,000,000 $68,103 + 8.97% of excess over
$1,000,000
Section 2 of the bill amends subparagraph (B) of paragraph 3 of
subsection (d) of section 601 of the tax law, as amended by section 3 of
part Z-1 of chapter 57 of the laws of 2009 providing that for the taxa-
ble years beginning after 2011 and before 2013 the fraction computed for
taxpayers with adjusted gross income over $500,000 is computed as
follows: the numerator is the lesser of $50,000 or the excess of New
York adjusted gross income for the taxable year over $1,000,000 and the
denominator is $50,000.
Section 3 of the bill amends clause (ii) of subparagraph (B) of para-
graph 3 of subsection (c) of section 685 of the tax law by adding a new
undesignated paragraph to provide that the tax shown on such return for
taxable year beginning in 2011 shall be calculated as if such year began
in 2012.
Sections 4 and 5 of the bill address the responsibilities of the Commis-
sioner of Taxation and Finance in determining the deductions and with-
holding amounts required to be adjusted as a result of the new tax
tables created by this act and of publicizing these changes to notify
taxpayers.
Section 6 provides for this act to take effect immediately and shall
apply to taxable years beginning on or after January 1, 2012.
JUSTIFICATION:
For the past several years New York has faced devastating budget defi-
cits each year with a current fiscal year deficit of nearly $10 billion.
Although the Governor and the Legislature were able to reach a budget
agreement on time, that budget will cause extreme hardship in the form
of dramatic cuts to schools, health care, energy and environmental
programs and a drastic reduction in the state workforce.
While these spending cuts were in some part necessary to address the
severe budget shortfall there must be a sense of shared sacrifices by
all sectors of our communities so that this burden does not fall on
those least able to bear it The legislature must look for ways to
increase revenue in a responsible and legitimate manner.
One such opportunity is to amend and continue what is often referred to
as the "Personal Income Tax Surcharge" or the "Millionaire's Tax".
These additional taxes were initially imposed to extend the responsibil-
ity for covering the costs of necessary services and benefits the state
provides beyond the lower and middle class to those individuals who are
fortunate enough to be making significant taxable incomes. The current
tax surcharges are set to expire at the end of this year and the legis-
lature must act to address what will be a significant loss in tax reven-
ue. While some have argued that the current tax is not a "Millionaire's
Tax", but instead a tax which harms small businesses, this legislation
will amend the current tax surcharge so that it does indeed only apply
to those fortunate taxpayers making in excess of $1,000,000.
Recent petitions and letters from "millionaires" across the country show
that these individuals are more than willing to pay additional taxes to
address the serious financial crises being faced by this state and this
nation.(1) Millionaires like Warren Buffet have argued in favor of high-
er income taxes for the wealthy stating that "tax hikes on the rich are
essential to an economic recovery".
Therefore, it is only reasonable that New York state amends its income
tax laws to require those wealthiest New Yorkers to help bridge the
budget gap so that responsibility does not fall solely on the shoulders
of our poor, our children and our seniors who have so little and are
losing even more with every state budget that cuts their services and
fails to come up with viable new sources of revenue.
PRIOR LEGISLATIVE HISTORY:
New Bill.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
To be determined.
EFFECTIVE DATE:
This act shall take effect immediately.
FOOTNOTE:
(1) http://biggovernment.com/publius/2010/11/25/left-millionaires- tax-
us-more/
S5277-2011 Text
S T A T E O F N E W Y O R K
5277 2011-2012 Regular Sessions I N SENATE May 3, 2011
Introduced by Sen. AVELLA -- 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, in relation to increases on income tax rates on incomes over one million dollars
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM BLY, DO ENACT AS FOLLOWS:
Section 1. Subsections (a), (b), and (c) of section 601 of the tax law, as amended by section 1 of part Z-1 of chapter 57 of the laws of 2009, are amended to read as follows:
(a) Resident married individuals filing joint returns and resident surviving spouses. There is hereby imposed for each taxable year on the New York taxable income of every resident married individual who makes a single return jointly with his spouse under subsection (b) of section six hundred fifty-one and on the New York taxable income of every resi dent surviving spouse a tax determined in accordance with the following tables:
(1) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND ELEVEN AND BEFORE TWO THOUSAND THIRTEEN:
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 $26,000 OVER $40,000 BUT NOT OVER $1,000,000 $1,946 PLUS 6.85% OF EXCESS OVER EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD10917-01-1
S. 5277 2 $40,000 OVER $1,000,000 $67,706 PLUS 8.97% OF EXCESS OVER $1,000,000 (2) For taxable years beginning after two thousand eight and before two thousand twelve:
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 $26,000 Over $40,000 but not over $300,000 $1,946 plus 6.85% of excess over $40,000 Over $300,000 but not over $500,000 $19,756 plus 7.85% of excess over $300,000 Over $500,000 $35,456 plus 8.97% of excess over $500,000 [(2)] (3) For taxable years beginning after two thousand five and before two thousand nine and after two thousand [eleven] TWELVE:
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 $26,000 Over $40,000 $1,946 plus 6.85% of excess over $40,000 [(3)] (4) For taxable years beginning in two thousand five:
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 $26,000 Over $40,000 but not over $150,000 $1,946 plus 6.85% of excess over $40,000 Over $150,000 but not over $500,000 $9,481 plus 7.25% of excess over $150,000 Over $500,000 $34,856 plus 7.7% of excess over $500,000 S. 5277 3 [(4)] (5) For taxable years beginning in two thousand four:
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 $26,000 Over $40,000 but not over $150,000 $1,946 plus 6.85% of excess over $40,000 Over $150,000 but not over $500,000 $9,481 plus 7.375% of excess over $150,000 Over $500,000 $35,294 plus 7.7% of excess over $500,000 [(5)] (6) For taxable years beginning in two thousand three:
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 $26,000 Over $40,000 but not over $150,000 $1,946 plus 6.85% of excess over $40,000 Over $150,000 but not over $500,000 $9,481 plus 7.5% of excess over $150,000 Over $500,000 $35,731 plus 7.7% of excess over $500,000 [(6)] (7) For taxable years beginning after nineteen hundred ninety six and before two thousand three:
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 $26,000 Over $40,000 $1,946 plus 6.85% of excess over $40,000 [(7)] (8) For taxable years beginning in nineteen hundred ninety-six:
If the New York taxable income is: The tax is:
Not over $11,000 4% of the New York taxable S. 5277 4 income Over $11,000 but not over $16,000 $440 plus 5% of excess over $11,000 Over $16,000 but not over $22,000 $690 plus 6% of excess over $16,000 Over $22,000 $1,050 plus 7% of excess over $22,000 [(8)] (9) For taxable years beginning in nineteen hundred ninety-five:
If the New York taxable income is: The tax is:
Not over $13,000 4.55% of the New York taxable income Over $13,000 but not over $19,000 $592 plus 5.55% of excess over $13,000 Over $19,000 but not over $25,000 $925 plus 6.55% of excess over $19,000 Over $25,000 $1,318 plus 7.5% of excess over $25,000 [(9)] (10) For taxable years beginning after nineteen hundred eighty nine and before nineteen hundred ninety-five:
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 $16,000 $440 plus 5% of excess over $11,000 Over $16,000 but not over $22,000 $690 plus 6% of excess over $16,000 Over $22,000 but not over $26,000 $1,050 plus 7% of excess over $22,000 Over $26,000 $1,330 plus 7.875% of excess over $26,000 (b) Resident heads of households. There is hereby imposed for each taxable year on the New York taxable income of every resident head of a household a tax determined in accordance with the following tables:
(1) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND ELEVEN AND BEFORE TWO THOUSAND THIRTEEN:
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 BUT NOT OVER $1,000,000 $1,492 PLUS 6.85% OF EXCESS OVER $30,000 OVER $1,000,000 $67,937 PLUS 8.97% OF EXCESS OVER $1,000,000 (2) For taxable years beginning after two thousand eight and before two thousand twelve:
S. 5277 5 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 but not over $250,000 $1,492 plus 6.85% of excess over $30,000 Over $250,000 but not over $500,000 $16,562 plus 7.85% of excess over $250,000 Over $500,000 $36,187 plus 8.97% of excess over $500,000 [(2)] (3) For taxable years beginning after two thousand five and before two thousand nine and after two thousand [eleven] TWELVE:
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% of excess over $30,000 [(3)] (4) For taxable years beginning in two thousand five:
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 but not over $125,000 $1,492 plus 6.85% of excess over $30,000 Over $125,000 but not over $500,000 $8,000 plus 7.25% of excess over $125,000 Over $500,000 $35,187 plus 7.7% of excess over $500,000 [(4)] (5) For taxable years beginning in two thousand four:
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 S. 5277 6 $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 but not over $125,000 $1,492 plus 6.85% of excess over $30,000 Over $125,000 but not over $500,000 $8,000 plus 7.375% of excess over $125,000 Over $500,000 $35,656 plus 7.7% of excess over $500,000 [(5)] (6) For taxable years beginning in two thousand three:
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 but not over $125,000 $1,492 plus 6.85% of excess over $30,000 Over $125,000 but not over $500,000 $8,000 plus 7.5% of excess over $125,000 Over $500,000 $36,125 plus 7.7% of excess over $500,000 [(6)] (7) For taxable years beginning after nineteen hundred ninety six and before two thousand three:
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% of excess over $30,000 [(7)] (8) For taxable years beginning in nineteen hundred ninety-six:
If the New York taxable income is: The tax is:
Not over $7,500 4% of the New York taxable income Over $7,500 but not over $11,000 $300 plus 5% of excess over $7,500 Over $11,000 but not over $15,000 $475 plus 6% of excess over $11,000 Over $15,000 $ 715 plus 7% of excess over $15,000 S. 5277 7 [(8)] (9) For taxable years beginning in nineteen hundred ninety-five:
If the New York taxable income is: The tax is:
Not over $9,000 4.55% of the New York taxable income Over $9,000 but not over $14,000 $410 plus 5.55% of excess over $9,000 Over $14,000 but not over $19,000 $687 plus 6.55% of excess over $14,000 Over $19,000 $1,015 plus 7.5% of excess over $19,000 [(9)] (10) For taxable years beginning after nineteen hundred eighty nine and before nineteen hundred ninety-five:
If the New York taxable income is: The tax is:
Not over $7,500 4% of the New York taxable income Over $7,500 but not over $11,000 $300 plus 5% of excess over $7,500 Over $11,000 but not over $15,000 $475 plus 6% of excess over $11,000 Over $15,000 but not over $17,000 $715 plus 7% of excess over $15,000 Over $17,000 $855 plus 7.875% of excess over $17,000 (c) Resident unmarried individuals, resident married individuals filing separate returns and resident estates and trusts. There is hereby imposed for each taxable year on the New York taxable income of every resident individual who is not a married individual who makes a single return jointly with his spouse under subsection (b) of section six hundred fifty-one or a resident head of a household or a resident surviving spouse, and on the New York taxable income of every resident estate and trust a tax determined in accordance with the following tables:
(1) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND ELEVEN AND BEFORE TWO THOUSAND THIRTEEN:
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 BUT NOT OVER $1,000,000 $973 PLUS 6.85% OF EXCESS OVER $20,000 OVER $1,000,000 $68,103 PLUS 8.97% OF EXCESS OVER $1,000,000 (2) For taxable years beginning after two thousand eight and before two thousand twelve:
S. 5277 8 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 but not over $200,000 $973 plus 6.85% of excess over $20,000 Over $200,000 but not over $500,000 $13,303 plus 7.85% of excess over $200,000 Over $500,000 $36,853 plus 8.97% of excess over $500,000 [(2)] (3) For taxable years beginning after two thousand five and before two thousand nine and after two thousand [eleven] TWELVE:
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% of excess over $20,000 [(3)] (4) For taxable years beginning in two thousand five:
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 but not over $100,000 $973 plus 6.85% of excess over $20,000 Over $100,000 but not over $500,000 $6,453 plus 7.25% of excess over $100,000 Over $500,000 $35,453 plus 7.7% of excess over $500,000 [(4)] (5) For taxable years beginning in two thousand four:
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 S. 5277 9 $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 but not over $100,000 $973 plus 6.85% of excess over $20,000 Over $100,000 but not over $500,000 $6,453 plus 7.375% of excess over $100,000 Over $500,000 $35,953 plus 7.7% of excess over $500,000 [(5)] (6) For taxable years beginning in two thousand three:
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 but not over $100,000 $973 plus 6.85% of excess over $20,000 Over $100,000 but not over $500,000 $6,453 plus 7.5% of excess over $100,000 Over $500,000 $36,453 plus 7.7% of excess over $500,000 [(6)] (7) For taxable years beginning after nineteen hundred ninety six and before two thousand three:
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% of excess over $20,000 [(7)] (8) For taxable years beginning in nineteen hundred ninety-six:
If the New York taxable income is: The tax is:
Not over $5,500 4% of the New York taxable income Over $5,500 but not over $8,000 $220 plus 5% of excess over $5,500 Over $8,000 but not over $11,000 $345 plus 6% of excess over $8,000 Over $11,000 $525 plus 7% of excess over $11,000 S. 5277 10 [(8)] (9) For taxable years beginning in nineteen hundred ninety-five:
If the New York taxable income is: The tax is:
Not over $6,500 4.55% of the New York taxable income Over $6,500 but not over $9,500 $296 plus 5.55% of excess over $6,500 Over $9,500 but not over $12,500 $462 plus 6.55% of excess over $9,500 Over $12,500 $659 plus 7.5% of excess over $12,500 [(9)] (10) For taxable years beginning after nineteen hundred eighty nine and before nineteen hundred ninety-five:
If the New York taxable income is: The tax is:
Not over $5,500 4% of the New York taxable income Over $5,500 but not over $8,000 $220 plus 5% of excess over $5,500 Over $8,000 but not over $11,000 $345 plus 6% of excess over $8,000 Over $11,000 but not over $13,000 $525 plus 7% of excess over $11,000 Over $13,000 $665 plus 7.875% of excess over $13,000
S 2. Subparagraph (B) of paragraph 3 of subsection (d) of section 601 of the tax law, as amended by section 3 of part Z-1 of chapter 57 of the laws of 2009, is amended to read as follows:
(B) For such taxpayers with adjusted gross income over five hundred thousand dollars, for taxable years beginning after two thousand eight and before two thousand twelve, the fraction is computed as follows: the numerator is the lesser of fifty thousand dollars or the excess of New York adjusted gross income for the taxable year over five hundred thou sand dollars and the denominator is fifty thousand dollars. FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND ELEVEN AND BEFORE TWO THOUSAND THIR TEEN, THE FRACTION IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE LESSER OF FIFTY THOUSAND DOLLARS OR THE EXCESS OF NEW YORK ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR OVER ONE MILLION DOLLARS AND THE DENOMINATOR IS FIFTY THOUSAND DOLLARS. Provided, however, that the total tax prior to the application of any tax credits shall not exceed the highest rate of tax set forth in the tax table in subsection (a) of this section multiplied by the taxpayer's taxable income.
S 3. Clause (ii) of subparagraph (B) of paragraph 3 of subsection (c) of section 685 of the tax law is amended by adding a new undesignated paragraph to read as follows:
FURTHER PROVIDED THAT THE TAX SHOWN ON SUCH RETURN FOR TAXABLE YEAR BEGINNING IN TWO THOUSAND ELEVEN SHALL BE CALCULATED AS IF SUCH YEAR BEGAN IN TWO THOUSAND TWELVE.
S 4. Notwithstanding any provision of law to the contrary, the method of determining the amount to be deducted and withheld from wages on account of taxes imposed by or pursuant to the authority of article 22 of the tax law in connection with the implementation of the provisions of this act shall be prescribed by regulations of the commissioner of S. 5277 11 taxation and finance with due consideration to the effect such withhold ing tables and methods would have on the receipt and amount of revenue. The commissioner of taxation and finance shall adjust such withholding tables and methods in regard to taxable years beginning in 2012 and after in such manner as to result, so far as practicable, in withholding from an employee's wages an amount substantially equivalent to the tax reasonably estimated to be due for such taxable years as a result of the provisions of this act. Provided, however, for tax year 2012 the with holding tables shall reflect as accurately as practicable the full amount of tax year 2012 liability so that such amount is withheld by December 31, 2012. Any such regulations to implement a change in with holding tables and methods for tax year 2012 shall be adopted and effec tive as soon as practicable and the commissioner of taxation and finance may adopt such regulations on an emergency basis notwithstanding anything to the contrary in section 202 of the state administrative procedure act. In carrying out his or her duties and responsibilities under this section, the commissioner of taxation and finance may accom pany such a rule making procedure with a similar procedure with respect to the taxes required to be deducted and withheld by local laws imposing taxes pursuant to the authority of articles 30, 30-A and 30-B of the tax law, the provisions of any other law in relation to such a procedure to the contrary notwithstanding.
S 5. The commissioner of taxation and finance shall take steps to publicize the necessary adjustments to estimated tax and, to the extent reasonably possible, to inform the taxpayer of the tax liability changes made by this act.
S 6. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2012.
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