Excludes outside income of nonresident employees or their spouses from being included in New York city personal income tax.
TITLE OF BILL: An act to amend the New York city charter in relation to condition precedent to employment
PURPOSE OR GENERAL IDEA OF BILL: This bill Would exclude employees' outside income, as well as the income of their spouse, from the amount calculated upon which such employee is required to pay City taxes.
SUMMARY OF SPECIFIC PROVISIONS: Section One amends Section 1127 of the New York city charter to add language that City employees' outside income and their spouses' income shall not be included in the precedent to employment agreement, which subjects the employee's income to City taxation regardless of whether they move out of New York City. It also states that these law changes would not require reimbursement for taxes paid prior to the law Change. Section Two is the effective date.
JUSTIFICATION: Currently, city employees living outside New York City are subject to New York City personal income tax on their New York City wages. Additionally, persons accepting employment in New York City are required to sign a form as a condition precedent to accepting such employment subjecting them to taxation on all income as though they were a city resident, regardless of where they reside, and throughout the course of such employment. This agreement subjects the employee to New York City tax on income made outside of New York City, and for spouses filing jointly, includes the income of the spouse in the amount subject to New York City taxation.
This legislation provides that income earned outside of New York City shall not be included and also exempts the earnings of a spouse for the purposes of this section. This legislation would be proactive and does not alter the terms of any agreement signed as a condition precedent to employment prior to this bill's enactment.
PRIOR LEGISLATIVE HISTORY: 2002: A.9886 Held for consideration in Ways & Means/No same as 2003-04: A.2557 Held for consideration in Ways & Means/No same as 2007-08: A.4115 Referred to Ways & Means/No same as 2009-10: A.2646-A Held for consideration in Ways & Means/No same as
FISCAL IMPLICATION: None to the State.
This act shall take effect immediately and shall not apply to any agreement executed on or before such date.
STATE OF NEW YORK ________________________________________________________________________ 5359 2011-2012 Regular Sessions IN SENATE May 11, 2011 ___________Introduced by Sen. ZELDIN -- read twice and ordered printed, and when printed to be committed to the Committee on Cities AN ACT to amend the New York city charter in relation to condition precedent to employment THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subsection a of section 1127 of the New York city charter, as added by a vote of the people of the city of New York at the general election held in November of 1988, is amended to read as follows: a. Notwithstanding the provisions of any local law, rule or regulation to the contrary, every person seeking employment with the city of New York or any of its agencies regardless of civil service classification or status shall sign an agreement as a condition precedent to such employment to the effect that if such person is or becomes a nonresident individual as that term is defined in section 11-1706 of the administra- tive code of the city of New York or any similar provision of such code, during employment by the city, such person will pay to the city an amount by which a city personal income tax on residents computed and determined as if such person were a resident individual, as defined in such section, during such employment, exceeds the amount of any city earnings tax and city personal income tax imposed on such person for the same taxable period; PROVIDED, HOWEVER, ANY OUTSIDE INCOME OF ANY SUCH EMPLOYEE, EARNED OUTSIDE OF NEW YORK CITY, SHALL NOT BE INCLUDED. ANY INCOME EARNED OUTSIDE OF NEW YORK CITY BY SUCH EMPLOYEE'S SPOUSE SHALL NOT BE CONSIDERED FOR THE PROVISIONS OF THIS SECTION. THE PROVISIONS OF THIS SECTION SHALL NOT BE CONSTRUED TO REQUIRE ANY REIMBURSEMENT TO NON-RESIDENT EMPLOYEES OR THEIR SPOUSES FOR THE PERIOD OF TIME SUCH PAYMENT WAS IN FORCE AND EFFECT. S 2. This act shall take effect immediately and shall not apply to any agreement executed on or before such date.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD02892-03-1