NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A6013
SPONSOR: Oaks (MS)
 
TITLE OF BILL:
An act creating a tax simplification and fairness study to look at the
personal income tax brackets and the corporate franchise tax
 
PURPOSE OR GENERAL IDEA OF BILL:
To examine the current tax system to see if there would be a benefit to
simplifying the entire system by eliminating all of the various tax
credits and taxing all individuals and businesses at the same, lower
rate
 
SUMMARY OF SPECIFIC PROVISIONS:
Section 1. Directs the commissioner of Taxation and Finance to conduct a
study to examine how income tax brackets and corresponding dollar
amounts could be proportionately reduced if all of the personal income
tax credits were eliminated and personal income tax receipts were fore-
casted to be revenue neutral
Section 2. Directs the Commissioner of Taxation and Finance to conduct a
study to examine how the corporate franchise tax could be proportionate-
ly reduced if all of the tax credits were eliminated and the corporate
franchise tax receipts were forecasted to be revenue neutral.
Section 3. Requires the commissioner to report on the results of the
studies within 180 days of the bill becoming law
Section 4. Effective date
 
JUSTIFICATION:
The New York State tax system has been further complicated by the numer-
ous tax credits available to certain categories of taxpayers. By direct-
ing the Department of Taxation & Finance to put together figures outlin-
ing what the tax rates would be without all of the credits, this bill
would explore the possibility of removing these tax credits, and moving
towards a flat tax.
 
PRIOR LEGISLATIVE HISTORY:
A7614 of 2015-16-Held for consideration in Ways & Means
 
FISCAL IMPLICATIONS:
None
 
EFFECTIVE DATE:
Immediately
STATE OF NEW YORK
________________________________________________________________________
6013
2017-2018 Regular Sessions
IN ASSEMBLY
February 21, 2017
___________
Introduced by M. of A. OAKS -- Multi-Sponsored by -- M. of A. BARCLAY,
GIGLIO -- read once and referred to the Committee on Ways and Means
AN ACT creating a tax simplification and fairness study to look at the
personal income tax brackets and the corporate franchise tax
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The commissioner of taxation and finance shall conduct a
2 study to examine the corresponding income tax brackets and dollar
3 amounts that could be enacted if a proportionate reduction in the
4 personal income tax bracket and dollar amounts as provided in section
5 601 of the tax law for taxable years beginning after 2011 and before
6 2020 and for taxable years beginning after 2019, if all of the personal
7 income tax credits provided in section 606 of the tax law were elimi-
8 nated and personal income tax receipts were forecasted to be revenue
9 neutral based on current law.
10 § 2. The commissioner of taxation and finance shall conduct a study to
11 examine the corresponding reduction in the imposition of the corporate
12 franchise tax that could be enacted if a proportionate reduction in the
13 imposition of the corporate franchise tax as provided by sections 209
14 and 210 of the tax law, if all the credits provided in section 210-B of
15 the tax law were eliminated and the corporate franchise tax receipts
16 were forecasted to be revenue neutral based on current law.
17 § 3. The commissioner of taxation and finance shall report on the
18 results of the studies in section one and section two within one hundred
19 eighty days after this act shall have become a law.
20 § 4. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD08429-01-7