Authorizes a childhood education surcharge on the personal income tax for cities having a population of one million or more persons.
TITLE OF BILL: An act to amend the tax law, in relation to authorizing a childhood education surcharge on the personal income tax for cities having a population of one million or more persons; and providing for the repeal of such provisions upon expiration thereof
PURPOSE OR GENERAL IDEA OF BILL:
This bill authorizes a city of one million or more to adopt local laws providing for a city income tax surcharge for taxpayers making $500,000 or more for aid to early childhood education and after school programs. This tax will sunset after 5 years.
SUMMARY OF SPECIFIC PROVISIONS:
Section 1. This section amends the tax law by adding a new section, 1304-E.
Subsection (a). This subsection empowers any city of one million or more imposing a tax surcharge for early childhood education programs to adopt and amend a tax surcharge for taxpayers making $500,000 or more on the city taxable income of every city resident individual, estate, and trust for all taxable years after 2013. This tax will sunset after 5 years.
Subsection (1). This subsection sets the rate up to 4.3%- a 0.424 percentage point increase of the tax upon which the surcharge is based.
Subsection (b). This subsection provides that any city imposing a tax surcharge in accordance with this article may by local law impose such surcharge at a lower rate than the percentages set forth in subsection (1). The city may also impose the city income tax surcharge at more than one rate depending upon the filing status and city taxable income of a city resident.
Subsection (c). This subsection states that the city income tax surcharge imposed by this article shall be administered, collected, and distributed in the same manner as other taxes imposed pursuant to this article. However, the provisions of section 1313 of this article which directs payment of taxes to the New York City transitional finance authority shall not apply to the city income tax surcharge.
Subsection (d). This subsection states that the total revenue, including interest and penalties from the city income tax surcharge, which the state comptroller is required to pay to the chief fiscal officer of the city imposing such surcharge shall be for payment into the city treasury shall be credited to the general fund of such city and applied exclusively to or in aid or in support of the early childhood education programs of the city.
Subsection (e). This subsection states that the local law must be enacted on or before December 31, 2013 in order to be applicable. A certified copy of the local law shall be sent by registered mail to the department's Albany office within 15 days of enactment. Additional time for a copy of the local law to be sent shall be
allotted by the department if deemed consistent with its duties under this article.
The City's remarkable turnaround in crime-fighting in the mid-to-late 1990s was funded, in part, by a temporary surcharge in the personal income tax. The surcharge ended in 1998. A similar surcharge is now necessary to fund a turnaround in our City's early childhood education programs.
PRIOR LEGISLATIVE HISTORY:
This act shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 6471 IN SENATE January 28, 2014 ___________Introduced by Sen. HASSELL-THOMPSON -- 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 authorizing a childhood education surcharge on the personal income tax for cities having a population of one million or more persons; and providing for the repeal of such provisions upon expiration thereof THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The tax law is amended by adding a new section 1304-E to read as follows: S 1304-E. TAX SURCHARGE FOR EARLY CHILDHOOD EDUCATION. (A) IN ADDITION TO THE TAXES AUTHORIZED BY SUBSECTION (A) OF SECTION THIRTEEN HUNDRED ONE OF THIS ARTICLE, ANY CITY HAVING A POPULATION OF ONE MILLION OR MORE PERSONS THAT IMPOSES SUCH TAXES IS HEREBY AUTHORIZED AND EMPOWERED TO ADOPT AND AMEND LOCAL LAWS IMPOSING IN ANY SUCH CITY FOR ALL TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND FIFTEEN, A TAX SURCHARGE ON THE CITY TAXABLE INCOME OF EVERY CITY RESIDENT MARRIED INDIVIDUALS FILING JOINT RETURNS, RESIDENT MARRIED INDIVIDUALS FILING SEPARATE RETURNS, RESIDENT SURVIVING SPOUSES, RESIDENT HEADS OF HOUSE- HOLDS, RESIDENT UNMARRIED INDIVIDUALS, AND RESIDENT ESTATES AND TRUSTS, AT A RATE OF UP TO: IF THE CITY TAXABLE INCOME IS: THE TAX SURCHARGE IS: NOT OVER $500,000 0 OVER $500,000 4.3 % OF CITY TAXABLE INCOME (B) A CITY IMPOSING A TAX SURCHARGE PURSUANT TO THE AUTHORITY OF THIS SECTION MAY, BY LOCAL LAW, IMPOSE SUCH SURCHARGE AT A RATE THAT IS LESS THAN THE PERCENTAGES SET FORTH IN SUBSECTION (A) OF THIS SECTION, AND MAY IMPOSE SUCH TAX AT MORE THAN ONE RATE DEPENDING UPON THE FILING STATUS AND CITY TAXABLE INCOME OF SUCH CITY RESIDENT INDIVIDUAL, ESTATE, OR TRUST. (C) A TAX SURCHARGE IMPOSED PURSUANT TO THE AUTHORITY OF THIS SECTION SHALL BE ADMINISTERED, COLLECTED, AND DISTRIBUTED BY THE COMMISSIONER INEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD11195-02-4 S. 6471 2
THE SAME MANNER AS THE OTHER TAXES IMPOSED PURSUANT TO THE AUTHORITY OF THIS ARTICLE, AND ALL OF THE PROVISIONS OF THIS ARTICLE, INCLUDING SECTION THIRTEEN HUNDRED TEN OF THIS ARTICLE, SHALL APPLY TO THE TAX SURCHARGE AUTHORIZED BY THIS SECTION; PROVIDED, HOWEVER, THAT THE PROVISIONS OF SECTION THIRTEEN HUNDRED THIRTEEN OF THIS ARTICLE DIRECT- ING PAYMENT OF TAXES TO THE NEW YORK CITY TRANSITIONAL FINANCE AUTHORITY SHALL NOT APPLY TO ANY SUCH SURCHARGE. (D) NOTWITHSTANDING ANY PROVISION OF THIS SECTION OR OF SECTION THIR- TEEN HUNDRED THIRTEEN OF THIS ARTICLE TO THE CONTRARY, THE TOTAL REVENUE FROM THE TAX SURCHARGE IMPOSED PURSUANT TO THE AUTHORITY OF THIS SECTION, INCLUDING INTEREST AND PENALTIES, WHICH THE STATE COMPTROLLER IS REQUIRED TO PAY TO THE CHIEF FISCAL OFFICER OF THE CITY IMPOSING THE TAX SURCHARGE FOR PAYMENT INTO THE TREASURY OF SUCH CITY SHALL BE CRED- ITED TO THE GENERAL FUND OF SUCH CITY AND SHALL BE APPLIED EXCLUSIVELY TO OR IN AID OR SUPPORT OF THE EARLY CHILDHOOD EDUCATION PROGRAMS OF SUCH CITY. (E) A LOCAL LAW ENACTED PURSUANT TO THIS SECTION SHALL BE APPLICABLE ONLY IF IT HAS BEEN ENACTED ON OR BEFORE DECEMBER THIRTY-FIRST, TWO THOUSAND FOURTEEN. A CERTIFIED COPY OF SUCH LOCAL LAW SHALL BE MAILED BY REGISTERED MAIL TO THE DEPARTMENT AT ITS OFFICE IN ALBANY WITHIN FIFTEEN DAYS OF ITS ENACTMENT. HOWEVER, THE DEPARTMENT MAY ALLOW ADDI- TIONAL TIME FOR SUCH CERTIFIED COPY TO BE MAILED IF IT DEEMS SUCH ACTION TO BE CONSISTENT WITH ITS DUTIES UNDER THIS ARTICLE. S 2. This act shall take effect immediately and shall apply to all tax years commencing on and after January 1, 2015; provided, however, that the provisions of this act shall expire and be deemed repealed December 31, 2019.