Bill S7165A-2011

Limits imposition of metropolitan commuter transportation tax on self-employment earnings to annual earnings over $250,000

Limits imposition of the metropolitan commuter transportation tax on self-employment earnings to annual earnings over $250,000, and establishes tax rates for the taxation of such earnings.

Details

Actions

  • Jun 20, 2012: referred to ways and means
  • Jun 20, 2012: DELIVERED TO ASSEMBLY
  • Jun 20, 2012: PASSED SENATE
  • Jun 20, 2012: ORDERED TO THIRD READING CAL.1415
  • Jun 20, 2012: COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • May 14, 2012: PRINT NUMBER 7165A
  • May 14, 2012: AMEND (T) AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • May 1, 2012: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Meetings

Votes

VOTE: COMMITTEE VOTE: - Rules - Jun 20, 2012
Ayes (19): Skelos, Alesi, Farley, Fuschillo, Hannon, LaValle, Libous, Marcellino, Maziarz, Nozzolio, Saland, Seward, Sampson, Breslin, Hassell-Thompson, Montgomery, Parker, Smith, Stewart-Cousins
Ayes W/R (4): Johnson, Dilan, Duane, Perkins
Nays (1): Krueger

Memo

BILL NUMBER:S7165A

TITLE OF BILL: An act to amend the tax law, in relation to the metropolitan commuter transportation mobility tax rates on earnings from self-employment

PURPOSE: This legislation would repeal the imposition of the metropolitan commuter transportation tax on earnings from self-employment.

SUMMARY OF PROVISIONS: Section One - amends paragraph 2 of subsection (a) of section 801 of the tax law, as amended by section 1 of part N of chapter 59 of the laws of 2012 to state that for individuals with net earnings that are attributable to the MCTD from self-employment of individuals if such earnings attributable to the MCTD exceed two hundred and fifty thousand dollars for the tax year, the tax is imposed at a rate of (A) eleven hundredths (.11) percent of the net earnings from self-employment if such earnings attributable to the MCTD are greater than two hundred and fifty thousand dollars but do not exceed three hundred thousand dollars in any tax year, (B) twenty-three hundredths (.23) percent of the net earnings from self-employment if such earnings attributable to the MCTD are greater than three hundred thousand dollars but do not exceed three hundred and fifty thousand dollars in any tax year, and (C) thirty-four hundredths (.34) percent of the net earnings from self-employment if such earnings attributable to the MCTD are greater than three hundred and fifty thousand dollars in any tax year.

Section - Two states this act shall take effect on the first of July next succeeding the date on which it shall have become law.

JUSTIFICATION: In 2011, the metropolitan commuter transportation tax was repealed for approximately 289,000 businesses with annual payrolls below $1.25 million. More than 6,000 businesses with payrolls between $1.25 and $1.75 had their payroll tax cut by as much as two-thirds.

Under the current law, self-employed individuals who earn over $50,000 a year are still paying the metropolitan commuter transportation tax. This legislation will repeal the metropolitan commuter transportation tax for self-employed individuals who earn less than $250,000 annually.

This legislation will also reduce the amount that self-employed individuals who earn from $250,000 to $300,000 to .11 percent, and self employed individuals who earn from $300,000 to $350,000 to .23 percent.

LEGISLATIVE HISTORY: New bill.

FISCAL IMPLICATIONS: To be determined.

EFFECTIVE DATE:

This act shall take effect on the first of July next succeeding the date on which it shall have become law.


Text

STATE OF NEW YORK ________________________________________________________________________ 7165--A IN SENATE May 1, 2012 ___________
Introduced by Sen. BALL -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Govern- ment Operations -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the tax law, in relation to the metropolitan commuter transportation mobility tax rates on earnings from self-employment THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Paragraph 2 of subsection (a) of section 801 of the tax law, as amended by section 1 of part N of chapter 59 of the laws of 2012, is amended to read as follows: (2) For individuals[, the tax is imposed at a rate of thirty-four hundredths (.34) percent of the] WITH net earnings THAT ARE ATTRIBUTABLE TO THE MCTD from self-employment of individuals [that are attributable to the MCTD] if such earnings attributable to the MCTD exceed TWO HUNDRED fifty thousand dollars for the tax year, THE TAX IS IMPOSED AT A RATE OF (A) ELEVEN HUNDREDTHS (.11) PERCENT OF THE NET EARNINGS FROM SELF-EMPLOYMENT IF SUCH EARNINGS ATTRIBUTABLE TO THE MCTD ARE GREATER THAN TWO HUNDRED FIFTY THOUSAND DOLLARS BUT DO NOT EXCEED THREE HUNDRED THOUSAND DOLLARS IN ANY TAX YEAR, (B) TWENTY-THREE HUNDREDTHS (.23) PERCENT OF THE NET EARNINGS FROM SELF-EMPLOYMENT IF SUCH EARNINGS ATTRIBUTABLE TO THE MCTD ARE GREATER THAN THREE HUNDRED THOUSAND DOLLARS BUT DO NOT EXCEED THREE HUNDRED FIFTY THOUSAND DOLLARS IN ANY TAX YEAR, AND (C) THIRTY-FOUR HUNDREDTHS (.34) PERCENT OF THE NET EARNINGS FROM SELF-EMPLOYMENT IF SUCH EARNINGS ATTRIBUTABLE TO THE MCTD ARE GREATER THAN THREE HUNDRED FIFTY THOUSAND DOLLARS IN ANY TAX YEAR. S 2. This act shall take effect on the first of July next succeeding the date on which it shall have become a law.

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