Relates to the modification and extension of a tax rate on income in excess of one million dollars; creates an educational assistance fund.
Sponsor: AVELLA
Law Section: Tax Law
Law: Amd SS601 & 685, Tax L; add S97-kkkk, St Fin L
Co-sponsor(s):
RIVERA, ADAMS, DILAN, GIANARIS, HASSELL-THOMPSON, KENNEDY, KRUEGER, MONTGOMERY, PARKER, PERALTA, SERRANO, SQUADRON, STAVISKY, STEWART-COUSINS
Committee: INVESTIGATIONS AND GOVERNMENT OPERATIONS
Law Section: Tax Law
Law: Amd SS601 & 685, Tax L; add S97-kkkk, St Fin L
S5453-2011 Actions
- Jan 4, 2012: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
- May 24, 2011: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
S5453-2011 Memo
BILL NUMBER:S5453
TITLE OF BILL:
An act
to amend the tax law, in relation to the modification and
extension of a
tax rate on income in excess of one million dollars
and to amend the state finance law, in relation to the creation of
an educational assistance fund
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. Lastly, the bill will
also dedicate 30 percent of revenues attributable to the higher rates
to education.
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 $22,000
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 $1,000,00
(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 creates the educational assistance fund. This fund will
receive 30 percent of revenues attributable to maintaining the current
rates on millionaires.
Section 7 provides an immediate effective date.
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/
S5453-2011 Text
S T A T E O F N E W Y O R K
________________________________________________________________________
5453
2011-2012 Regular Sessions
I N SENATE
May 24, 2011
___________
Introduced by Sens. AVELLA, RIVERA, PARKER, PERALTA, STEWART-COUSINS --
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 the modification and exten-
sion of a tax rate on income in excess of one million dollars and to
amend the state finance law, in relation to the creation of an educa-
tional assistance fund
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.
LBD10065-05-1
S. 5453 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. 5453 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. 5453 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. 5453 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. 5453 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. 5453 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. 5453 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. 5453 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. 5453 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. 5453 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 2011 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 2011 the with-
holding tables shall reflect as accurately as practicable the full
amount of tax year 2011 liability so that such amount is withheld by
December 31, 2011. Any such regulations to implement a change in with-
holding tables and methods for tax year 2011 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. 1. Notwithstanding any provision of law to the contrary, no addi-
tion to tax required shall be imposed for failure to pay the estimated
tax in subsection (c) of section 685 of the tax law with respect to any
underpayment of a required installment due prior to, or within thirty
days of, the effective date of this act to the extent that such under-
payment was created or increased by the amendments made by this act
provided, however, that the taxpayer remits the amount of the underpay-
ment with his or her next quarterly estimated tax payment.
2. The commissioner of taxation and finance shall take steps to publi-
cize 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. The state finance law is amended by adding a new section 97-kkkk
to read as follows:
S 97-KKKK. EDUCATIONAL ASSISTANCE FUND. 1. THERE IS HEREBY ESTAB-
LISHED IN THE JOINT CUSTODY OF THE COMPTROLLER AND THE COMMISSIONER OF
TAXATION AND FINANCE OF THE MISCELLANEOUS STATE SPECIAL REVENUE FUND TO
BE KNOWN AS THE EDUCATIONAL ASSISTANCE FUND.
2. SUCH ACCOUNT SHALL CONSIST OF THIRTY PERCENT OF RECEIPTS FROM THE
IMPOSITION OF THE SURCHARGE OF PERSONAL INCOME TAXES PURSUANT TO ARTICLE
TWENTY-TWO OF THE TAX LAW, ON NEW YORK TAXABLE INCOME WHEN SUCH INCOME
IS TAXED AT A RATE GREATER THAN 6.85 PERCENT ON OR AFTER JANUARY FIRST,
TWO THOUSAND TWELVE. ANY MONEYS IN SUCH ACCOUNT MAY BE INVESTED BY THE
COMPTROLLER PURSUANT TO SECTION NINETY-EIGHT-A OF THIS ARTICLE.
3. MONEYS IN THE ACCOUNT, FOLLOWING AN APPROPRIATION BY THE LEGISLA-
TURE, SHALL BE USED ONLY FOR THE PAYMENT OF EDUCATION AID TO SCHOOL
DISTRICTS AND BOARDS OF COOPERATIVE EDUCATIONAL SERVICES DURING THE
CALENDAR QUARTER BEGINNING ON APRIL FIRST OF EACH YEAR IN ACCORDANCE
WITH SECTION THIRTY-SIX HUNDRED NINE-A OF THE EDUCATION LAW, AS FROM
TIME TO TIME AMENDED.
S 7. This act shall take effect immediately.
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