STATE OF NEW YORK
________________________________________________________________________
9179
IN ASSEMBLY
February 2, 2016
___________
Introduced by M. of A. FARRELL, HEASTIE, MORELLE, HOOPER, AUBRY, PERRY,
MAGNARELLI, BENEDETTO -- Multi-Sponsored by -- M. of A. ABBATE,
ABINANTI, ARROYO, BARRON, BICHOTTE, BLAKE, BRAUNSTEIN, BRENNAN, BRIN-
DISI, BRONSON, CAHILL, CERETTO, CLARK, COLTON, COOK, CRESPO, CYMBROW-
ITZ, DAVILA, DenDEKKER, DILAN, DINOWITZ, FAHY, GLICK, GOTTFRIED,
HARRIS, HUNTER, HYNDMAN, JAFFEE, JEAN-PIERRE, JOYNER, KAVANAGH, KIM,
LAVINE, LENTOL, LIFTON, LINARES, LUPARDO, MARKEY, MILLER, MOSLEY,
MOYA, NOLAN, O'DONNELL, ORTIZ, PEOPLES-STOKES, PICHARDO, PRETLOW,
RAMOS, RICHARDSON, RIVERA, ROBINSON, RODRIGUEZ, ROSENTHAL, ROZIC,
RUSSELL, RYAN, SANTABARBARA, SCHIMEL, SEAWRIGHT, SEPULVEDA, SIMON,
SIMOTAS, SKARTADOS, SKOUFIS, SOLAGES, STECK, STIRPE, THIELE, TITUS,
WALKER, WEINSTEIN, WRIGHT -- read once and referred to the Committee
on Ways and Means
AN ACT to amend the tax law, in relation to the earned income credit
(Part A); and to amend the tax law, in relation to income tax rates;
and to repeal certain provisions of such law relating thereto (Part B)
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. This act enacts into law major components of legislation
2 relating to income tax. Each component is wholly contained within a Part
3 identified as Parts A through B. The effective date for each particular
4 provision contained within such Part is set forth in the last section of
5 such Part. Any provision in any section contained within a Part, includ-
6 ing the effective date of the Part, which makes a reference to a section
7 "of this act", when used in connection with that particular component,
8 shall be deemed to mean and refer to the corresponding section of the
9 Part in which it is found. Section three of this act sets forth the
10 general effective date of this act.
11 PART A
12 Section 1. Paragraph 1 of subsection (d) of section 606 of the tax
13 law, as amended by section 1 of part Q of chapter 63 of the laws of
14 2000, is amended to read as follows:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD13914-01-6
A. 9179 2
1 (1) General. A taxpayer shall be allowed a credit as provided herein
2 equal to (i) the applicable percentage of the earned income credit
3 allowed under section thirty-two of the internal revenue code for the
4 same taxable year, (ii) reduced by the credit permitted under subsection
5 (b) of this section.
6 The applicable percentage shall be (i) seven and one-half percent for
7 taxable years beginning in nineteen hundred ninety-four, (ii) ten
8 percent for taxable years beginning in nineteen hundred ninety-five,
9 (iii) twenty percent for taxable years beginning after nineteen hundred
10 ninety-five and before two thousand, (iv) twenty-two and one-half
11 percent for taxable years beginning in two thousand, (v) twenty-five
12 percent for taxable years beginning in two thousand one, (vi) twenty-
13 seven and one-half percent for taxable years beginning in two thousand
14 two, and (vii) thirty percent for taxable years beginning in two thou-
15 sand three, and (viii) thirty-two and one-half percent for the taxable
16 year beginning in two thousand eighteen, and (ix) thirty-five percent
17 for taxable years beginning in two thousand nineteen and thereafter.
18 Provided, however, that if the reversion event, as defined in this para-
19 graph, occurs, the applicable percentage shall be twenty percent for
20 taxable years ending on or after the date on which the reversion event
21 occurred. The reversion event shall be deemed to have occurred on the
22 date on which federal action, including but not limited to, administra-
23 tive, statutory or regulatory changes, materially reduces or eliminates
24 New York state's allocation of the federal temporary assistance for
25 needy families block grant, or materially reduces the ability of the
26 state to spend federal temporary assistance for needy families block
27 grant funds for the earned income credit or to apply state general fund
28 spending on the earned income credit toward the temporary assistance for
29 needy families block grant maintenance of effort requirement, and the
30 commissioner of the office of temporary and disability assistance shall
31 certify the date of such event to the commissioner of taxation and
32 finance, the director of the division of the budget, the speaker of the
33 assembly and the temporary president of the senate.
34 § 2. This act shall take effect immediately and shall apply to taxable
35 years beginning on or after 2018.
36 PART B
37 Section 1. Paragraph 1 of subsection (a) of section 601 of the tax
38 law, as amended by section 1 of part FF of chapter 59 of the laws of
39 2013, is amended to read as follows:
40 (1) (A) For taxable years beginning after two thousand seventeen, the
41 following brackets and dollar amounts shall apply, as adjusted by the
42 cost of living adjustment prescribed in section six hundred one-a of
43 this part for taxable years two thousand thirteen and thereafter:
44 If the New York taxable income is:The tax is:
45 Not over $16,0004% of taxable income
46 Over $16,000 but not over $22,000$640 plus 4.5% of excess over
47 $16,000
48 Over $22,000 but not over $26,000$910 plus 5.25% of excess over
49 $22,000
50 Over $26,000 but not over $40,000$1,120 plus 5.90% of excess over
51 $26,000
52 Over $40,000 but not over $150,000$1,946 plus 6.25% of excess over
A. 9179 3
1 $40,000
2 Over $150,000 but not over $300,000$8,821 plus 6.65% of excess over
3 $150,000
4 Over $300,000 but not over $1,000,000$18,796 plus 6.85% of excess over
5 $300,000
6 Over $1,000,000 but not over$66,746 plus 8.82% of excess over
7 $5,000,000$1,000,000
8 Over $5,000,000 but not over$419,546 plus 9.32% of excess over
9 $10,000,000$5,000,000
10 Over $10,000,000$885,546 plus 9.82% of excess over
11 $10,000,000
12 (B) For taxable years beginning after two thousand eleven and before two
13 thousand eighteen:
14 If the New York taxable income is: The tax is:
15 Not over $16,000 4% of taxable income
16 Over $16,000 but not over $22,000 $640 plus 4.5% of excess over
17 $16,000
18 Over $22,000 but not over $26,000 $910 plus 5.25% of excess over
19 $22,000
20 Over $26,000 but not over $40,000 $1,120 plus 5.90% of excess over
21 $26,000
22 Over $40,000 but not over $150,000 $1,946 plus 6.45% of excess over
23 $40,000
24 Over $150,000 but not over $300,000 $9,041 plus 6.65% of excess over
25 $150,000
26 Over $300,000 but not over $2,000,000 $19,016 plus 6.85% of excess over
27 $300,000
28 Over $2,000,000 $135,466 plus 8.82% of excess over
29 $2,000,000
30 [(B) For taxable years beginning after two thousand seventeen, the
31 following brackets and dollar amounts shall apply, as adjusted by the
32 cost of living adjustment prescribed in section six hundred one-a of
33 this part for tax years two thousand thirteen through two thousand
34 seventeen:
35 If the New York taxable income is: The tax is:
36 Not over $16,000 4% of taxable income
37 Over $16,000 but not over $22,000 $640 plus 4.5% of excess over
38 $16,000
39 Over $22,000 but not over $26,000 $910 plus 5.25% of excess over
40 $22,000
41 Over $26,000 but not over $40,000 $1,120 plus 5.90% of excess over
42 $26,000
43 Over $40,000 $1,946 plus 6.85% of excess over
44 $40,000]
45 § 2. Paragraph 1 of subsection (b) of section 601 of the tax law, as
46 amended by section 2 of part FF of chapter 59 of the laws of 2013, is
47 amended to read as follows:
48 (1) (A) For taxable years beginning after two thousand seventeen, the
49 following brackets and dollar amounts shall apply, as adjusted by the
50 cost of living adjustment prescribed in section six hundred one-a of
51 this part for taxable years two thousand thirteen and thereafter:
A. 9179 4
1 If the New York taxable income is:The tax is:
2 Not over $12,0004% of taxable income
3 Over $12,000 but not over $16,500$480 plus 4.5% of excess over
4 $12,000
5 Over $16,500 but not over $19,500$683 plus 5.25% of excess over
6 $16,500
7 Over $19,500 but not over $30,000$840 plus 5.90% of excess over
8 $19,500
9 Over $30,000 but not over $100,000$1,460 plus 6.25% of excess over
10 $30,000
11 Over $100,000 but not over $250,000$5,835 plus 6.65% of excess over
12 $100,000
13 Over $250,000 but not over $1,000,000$15,810 plus 6.85% of excess over
14 $250,000
15 Over $1,000,000 but not over$67,185 plus 8.82% of excess over
16 $5,000,000$1,000,000
17 Over $5,000,000 but not over$419,985 plus 9.32% of excess over
18 $10,000,000$5,000,000
19 Over $10,000,000$885,985 plus 9.82% of excess over
20 $10,000,000
21 (B) For taxable years beginning after two thousand eleven and before two
22 thousand eighteen:
23 If the New York taxable income is: The tax is:
24 Not over $12,000 4% of taxable income
25 Over $12,000 but not over $16,500 $480 plus 4.5% of excess over
26 $12,000
27 Over $16,500 but not over $19,500 $683 plus 5.25% of excess over
28 $16,500
29 Over $19,500 but not over $30,000 $840 plus 5.90% of excess over
30 $19,500
31 Over $30,000 but not over $100,000 $1,460 plus 6.45% of excess over
32 $30,000
33 Over $100,000 but not over $250,000 $5,975 plus 6.65% of excess over
34 $100,000
35 Over $250,000 but not over $1,500,000 $15,950 plus 6.85% of excess over
36 $250,000
37 Over $1,500,000 $101,575 plus 8.82% of excess over
38 $1,500,000
39 [(B) For taxable years beginning after two thousand seventeen, the
40 following brackets and dollars amounts shall apply, as adjusted by the
41 cost of living adjustment prescribed in section six hundred one-a of
42 this part for tax years two thousand thirteen through two thousand
43 seventeen:
44 If the New York taxable income is: The tax is:
45 Not over $12,000 4% of taxable income
46 Over $12,000 but not over $16,500 $480 plus 4.5% of excess over
47 $12,000
48 Over $16,500 but not over $19,500 $683 plus 5.25% of excess over
49 $16,500
50 Over $19,500 but not over $30,000 $840 plus 5.90% of excess over
A. 9179 5
1 $19,500
2 Over $30,000 $1,460 plus 6.85% of excess over
3 $30,000]
4 § 3. Paragraph 1 of subsection (c) of section 601 of the tax law, as
5 amended by section 3 of part FF of chapter 59 of the laws of 2013, is
6 amended to read as follows:
7 (1) (A) For taxable years beginning after two thousand seventeen, the
8 following brackets and dollar amounts shall apply, as adjusted by the
9 cost of living adjustment prescribed in section six hundred one-a of
10 this part for taxable years two thousand thirteen and thereafter:
11 If the New York taxable income is:The tax is:
12 Not over $8,0004% of taxable income
13 Over $8,000 but not over $11,000$320 plus 4.5% of excess over
14 $8,000
15 Over $11,000 but not over $13,000$455 plus 5.25% of excess over
16 $11,000
17 Over $13,000 but not over $20,000$560 plus 5.90% of excess over
18 $13,000
19 Over $20,000 but not over $75,000$973 plus 6.25% of excess over
20 $20,000
21 Over $75,000 but not over $200,000$4,411 plus 6.65% of excess over
22 $75,000
23 Over $200,000 but not over $1,000,000$12,723 plus 6.85% of excess over
24 $200,000
25 Over $1,000,000 but not over$67,523 plus 8.82% of excess over
26 $5,000,000$1,000,000
27 Over $5,000,000 but not over$420,323 plus 9.32% of excess over
28 $10,000,000$5,000,000
29 Over $10,000,000$886,323 plus 9.82% of excess over
30 $10,000,000
31 (B) For taxable years beginning after two thousand eleven and before
32 two thousand eighteen:
33 If the New York taxable income is: The tax is:
34 Not over $8,000 4% of taxable income
35 Over $8,000 but not over $11,000 $320 plus 4.5% of excess over
36 $8,000
37 Over $11,000 but not over $13,000 $455 plus 5.25% of excess over
38 $11,000
39 Over $13,000 but not over $20,000 $560 plus 5.90% of excess over
40 $13,000
41 Over $20,000 but not over $75,000 $973 plus 6.45% of excess over
42 $20,000
43 Over $75,000 but not over $200,000 $4,521 plus 6.65% of excess over
44 $75,000
45 Over $200,000 but not over $1,000,000 $12,833 plus 6.85% of excess over
46 $200,000
47 Over $1,000,000 $67,633 plus 8.82% of excess over
48 $1,000,000
49 [(B) For taxable years beginning after two thousand seventeen, the
50 following brackets and dollars amounts shall apply, as adjusted by the
51 cost of living adjustment prescribed in section six hundred one-a of
A. 9179 6
1 this part for tax years two thousand thirteen through two thousand
2 seventeen:
3 If the New York taxable income is: The tax is:
4 Not over $8,000 4% of taxable income
5 Over $8,000 but not over $11,000 $320 plus 4.5% of excess over
6 $8,000
7 Over $11,000 but not over $13,000 $455 plus 5.25% of excess over
8 $11,000
9 Over $13,000 but not over $20,000 $560 plus 5.90% of excess over
10 $13,000
11 Over $20,000 $973 plus 6.85% of excess over
12 $20,000]
13 § 4. Subsection (a) of section 601-a of the tax law, as amended by
14 section 10 of part FF of chapter 59 of the laws of 2013, is amended to
15 read as follows:
16 (a) For tax year two thousand thirteen, the commissioner, not later
17 than September first, two thousand twelve, shall multiply the amounts
18 specified in subsection (b) of this section for tax year two thousand
19 twelve by one plus the cost of living adjustment described in subsection
20 (c) of this section. For tax year two thousand fourteen, the commission-
21 er, not later than September first, two thousand thirteen, shall multi-
22 ply the amounts specified in subsection (b) of this section for tax year
23 two thousand thirteen by one plus the cost of living adjustment. For
24 each succeeding tax year after tax year two thousand fourteen and
25 [before tax year two thousand eighteen] thereafter, the commissioner,
26 not later than September first of such tax year, shall multiply the
27 amounts specified in subsection (b) of this section for such tax year by
28 one plus the cost of living adjustment described in subsection (c) of
29 this section for such tax year.
30 § 5. Subsection (d-2) of section 601 of the tax law is REPEALED and a
31 new section (d-2) is added to read as follows:
32 (d-2) Alternative tax table benefit recapture. Notwithstanding the
33 provisions of subsections (d) and (d-1) of this section, for taxable
34 years beginning after two thousand seventeen and thereafter, there is
35 hereby imposed a supplemental tax in addition to the tax imposed under
36 subsections (a), (b) and (c) of this section for the purpose of recap-
37 turing the benefit of the tax tables contained in such subsections.
38 During these taxable years, any reference in this chapter to subsection
39 (d) of this section shall be read as a reference to this subsection.
40 (1) For resident married individuals filing joint returns and resident
41 surviving spouses, the supplemental tax shall be an amount equal to the
42 sum of the tax table benefits described in subparagraphs (A), (B), (C),
43 (D), (E) and (F) of this paragraph multiplied by their respective frac-
44 tions in such subparagraphs.
45 (A) The tax table benefit is the difference between (i) the amount of
46 taxable income set forth in the tax table in paragraph one of subsection
47 (a) of this section not subject to the 6.25 percent rate of tax for the
48 taxable year multiplied by such rate and (ii) the dollar denominated tax
49 for such amount of taxable income set forth in the tax table applicable
50 to the taxable year in paragraph one of subsection (a) of this section.
51 The fraction for this subparagraph is computed as follows: the numerator
52 is the lesser of fifty thousand dollars or the excess of New York
53 adjusted gross income for the taxable year over one hundred thousand
54 dollars and the denominator is fifty thousand dollars.
A. 9179 7
1 (B) The tax table benefit is the difference between (i) the amount of
2 taxable income set forth in the tax table in paragraph one of subsection
3 (a) of this section not subject to the 6.65 percent rate of tax for the
4 taxable year multiplied by such rate and (ii) the dollar denominated tax
5 for such amount of taxable income set forth in the tax table applicable
6 to the taxable year in paragraph one of subsection (a) of this section
7 less the tax table benefit in subparagraph (A) of this paragraph. The
8 fraction for this subparagraph is computed as follows: the numerator is
9 the lesser of fifty thousand dollars or the excess of New York adjusted
10 gross income for the taxable year over one hundred fifty thousand
11 dollars and the denominator is fifty thousand dollars. Provided, howev-
12 er, this subparagraph shall not apply to taxpayers who are not subject
13 to the 6.65 percent tax rate.
14 (C) The tax table benefit is the difference between (i) the amount of
15 taxable income set forth in the tax table in paragraph one of subsection
16 (a) of this section not subject to the 6.85 percent rate of tax for the
17 taxable year multiplied by such rate and (ii) the dollar denominated tax
18 for such amount of taxable income set forth in the tax table applicable
19 to the taxable year in paragraph one of subsection (a) of this section
20 less the sum of the tax table benefit in subparagraphs (A) and (B) of
21 this paragraph. The fraction for this subparagraph is computed as
22 follows: the numerator is the lesser of fifty thousand dollars or the
23 excess of New York adjusted gross income for the taxable year over three
24 hundred thousand dollars and the denominator is fifty thousand dollars.
25 Provided, however, this subparagraph shall not apply to taxpayers who
26 are not subject to the 6.85 percent tax rate.
27 (D) The tax table benefit is the difference between (i) the amount of
28 taxable income set forth in the tax table in paragraph one of subsection
29 (a) of this section not subject to the 8.82 percent rate of tax for the
30 taxable year multiplied by such rate and (ii) the dollar denominated tax
31 for such amount of taxable income set forth in the tax table applicable
32 to the taxable year in paragraph one of subsection (a) of this section
33 less the sum of the tax table benefits in subparagraphs (A), (B) and (C)
34 of this paragraph. The fraction for this subparagraph is computed as
35 follows: the numerator is the lesser of fifty thousand dollars or the
36 excess of New York adjusted gross income for the taxable year over one
37 million dollars and the denominator is fifty thousand dollars.
38 (E) The tax table benefit is the difference between (i) the amount of
39 taxable income set forth in the tax table in paragraph one of subsection
40 (a) of this section not subject to the 9.32 percent rate of tax for the
41 taxable year multiplied by such rate and (ii) the dollar denominated tax
42 for such amount of taxable income set forth in the tax table applicable
43 to the taxable year in paragraph one of subsection (a) of this section
44 less the sum of the tax table benefits in subparagraphs (A), (B), (C)
45 and (D) of this paragraph. The fraction for this subparagraph is
46 computed as follows: the numerator is the lesser of fifty thousand
47 dollars or the excess of New York adjusted gross income for the taxable
48 year over five million dollars and the denominator is fifty thousand
49 dollars.
50 (F) The tax table benefit is the difference between (i) the amount of
51 taxable income set forth in the tax table in paragraph one of subsection
52 (a) of this section not subject to the 9.82 percent rate of tax for the
53 taxable year multiplied by such rate and (ii) the dollar denominated tax
54 for such amount of taxable income set forth in the tax table applicable
55 to the taxable year in paragraph one of subsection (a) of this section
56 less the sum of the tax table benefits in subparagraphs (A), (B), (C),
A. 9179 8
1 (D) and (E) of this paragraph. The fraction for this subparagraph is
2 computed as follows: the numerator is the lesser of fifty thousand
3 dollars or the excess of New York adjusted gross income for the taxable
4 year over ten million dollars and the denominator is fifty thousand
5 dollars.
6 (G) Provided, however, the total tax prior to the application of any
7 tax credits shall not exceed the highest rate of tax set forth in the
8 tax tables in subsection (a) of this section multiplied by the taxpay-
9 er's taxable income.
10 (2) For resident heads of households, the supplemental tax shall be an
11 amount equal to the sum of the tax table benefits described in subpara-
12 graphs (A), (B), (C), (D) and (E) of this paragraph multiplied by their
13 respective fractions in such subparagraphs.
14 (A) The tax table benefit is the difference between (i) the amount of
15 taxable income set forth in the tax table in paragraph one of subsection
16 (b) of this section not subject to the 6.65 percent rate of tax for the
17 taxable year multiplied by such rate and (ii) the dollar denominated tax
18 for such amount of taxable income set forth in the tax table applicable
19 to the taxable year in paragraph one of subsection (b) of this section.
20 The fraction for this subparagraph is computed as follows: the numerator
21 is the lesser of fifty thousand dollars or the excess of New York
22 adjusted gross income for the taxable year over one hundred thousand
23 dollars and the denominator is fifty thousand dollars.
24 (B) The tax table benefit is the difference between (i) the amount of
25 taxable income set forth in the tax table in paragraph one of subsection
26 (b) of this section not subject to the 6.85 percent rate of tax for the
27 taxable year multiplied by such rate and (ii) the dollar denominated tax
28 for such amount of taxable income set forth in the tax table applicable
29 to the taxable year in paragraph one of subsection (b) of this section
30 less the tax table benefit in subparagraph (A) of this paragraph. The
31 fraction for this subparagraph is computed as follows: the numerator is
32 the lesser of fifty thousand dollars or the excess of New York adjusted
33 gross income for the taxable year over two hundred fifty thousand
34 dollars and the denominator is fifty thousand dollars. Provided, howev-
35 er, this subparagraph shall not apply to taxpayers who are not subject
36 to the 6.85 percent tax rate.
37 (C) The tax table benefit is the difference between (i) the amount of
38 taxable income set forth in the tax table in paragraph one of subsection
39 (b) of this section not subject to the 8.82 percent rate of tax for the
40 taxable year multiplied by such rate and (ii) the dollar denominated tax
41 for such amount of taxable income set forth in the tax table applicable
42 to the taxable year in paragraph one of subsection (b) of this section
43 less the sum of the tax table benefits in subparagraphs (A) and (B) of
44 this paragraph. The fraction for this subparagraph is computed as
45 follows: the numerator is the lesser of fifty thousand dollars or the
46 excess of New York adjusted gross income for the taxable year over one
47 million dollars and the denominator is fifty thousand dollars.
48 (D) The tax table benefit is the difference between (i) the amount of
49 taxable income set forth in the tax table in paragraph one of subsection
50 (b) of this section not subject to the 9.32 percent rate of tax for the
51 taxable year multiplied by such rate and (ii) the dollar denominated tax
52 for such amount of taxable income set forth in the tax table applicable
53 to the taxable year in paragraph one of subsection (b) of this section
54 less the sum of the tax table benefits in subparagraphs (A), (B) and (C)
55 of this paragraph. The fraction for this subparagraph is computed as
56 follows: the numerator is the lesser of fifty thousand dollars or the
A. 9179 9
1 excess of New York adjusted gross income for the taxable year over five
2 million dollars and the denominator is fifty thousand dollars.
3 (E) The tax table benefit is the difference between (i) the amount of
4 taxable income set forth in the tax table in paragraph one of subsection
5 (b) of this section not subject to the 9.82 percent rate of tax for the
6 taxable year multiplied by such rate and (ii) the dollar denominated tax
7 for such amount of taxable income set forth in the tax table applicable
8 to the taxable year in paragraph one of subsection (b) of this section
9 less the sum of the tax table benefits in subparagraphs (A), (B), (C)
10 and (D) of this paragraph. The fraction for this subparagraph is
11 computed as follows: the numerator is the lesser of fifty thousand
12 dollars or the excess of New York adjusted gross income for the taxable
13 year over ten million dollars and the denominator is fifty thousand
14 dollars.
15 (F) Provided, however, the total tax prior to the application of any
16 tax credits shall not exceed the highest rate of tax set forth in the
17 tax tables in subsection (b) of this section multiplied by the taxpay-
18 er's taxable income.
19 (3) For resident unmarried individuals, resident married individuals
20 filing separate returns and resident estates and trusts, the supple-
21 mental tax shall be an amount equal to the sum of the tax table benefits
22 described in subparagraphs (A), (B), (C), (D) and (E) of this paragraph
23 multiplied by their respective fractions in such subparagraphs.
24 (A) The tax table benefit is the difference between (i) the amount of
25 taxable income set forth in the tax table in paragraph one of subsection
26 (c) of this section not subject to the 6.65 percent rate of tax for the
27 taxable year multiplied by such rate and (ii) the dollar denominated tax
28 for such amount of taxable income set forth in the tax table applicable
29 to the taxable year in paragraph one of subsection (c) of this section.
30 The fraction is computed as follows: the numerator is the lesser of
31 fifty thousand dollars or the excess of New York adjusted gross income
32 for the taxable year over one hundred thousand dollars and the denomina-
33 tor is fifty thousand dollars.
34 (B) The tax table benefit is the difference between (i) the amount of
35 taxable income set forth in the tax table in paragraph one of subsection
36 (c) of this section not subject to the 6.85 percent rate of tax for the
37 taxable year multiplied by such rate and (ii) the dollar denominated tax
38 for such amount of taxable income set forth in the tax table applicable
39 to the taxable year in paragraph one of subsection (c) of this section
40 less the tax table benefit in subparagraph (A) of this paragraph. The
41 fraction for this subparagraph is computed as follows: the numerator is
42 the lesser of fifty thousand dollars or the excess of New York adjusted
43 gross income for the taxable year over two hundred thousand dollars and
44 the denominator is fifty thousand dollars. Provided, however, this
45 subparagraph shall not apply to taxpayers who are not subject to the
46 6.85 percent tax rate.
47 (C) The tax table benefit is the difference between (i) the amount of
48 taxable income set forth in the tax table in paragraph one of subsection
49 (c) of this section not subject to the 8.82 percent rate of tax for the
50 taxable year multiplied by such rate and (ii) the dollar denominated tax
51 for such amount of taxable income set forth in the tax table applicable
52 to the taxable year in paragraph one of subsection (c) of this section
53 less the sum of the tax table benefits in subparagraphs (A) and (B) of
54 this paragraph. The fraction for this subparagraph is computed as
55 follows: the numerator is the lesser of fifty thousand dollars or the
A. 9179 10
1 excess of New York adjusted gross income for the taxable year over one
2 million dollars and the denominator is fifty thousand dollars.
3 (D) The tax table benefit is the difference between (i) the amount of
4 taxable income set forth in the tax table in paragraph one of subsection
5 (c) of this section not subject to the 9.32 percent rate of tax for the
6 taxable year multiplied by such rate and (ii) the dollar denominated tax
7 for such amount of taxable income set forth in the tax table applicable
8 to the taxable year in paragraph one of subsection (c) of this section
9 less the sum of the tax table benefits in subparagraphs (A), (B) and (C)
10 this paragraph. The fraction for this subparagraph is computed as
11 follows: the numerator is the lesser of fifty thousand dollars or the
12 excess of New York adjusted gross income for the taxable year over five
13 million dollars and the denominator is fifty thousand dollars.
14 (E) The tax table benefit is the difference between (i) the amount of
15 taxable income set forth in the tax table in paragraph one of subsection
16 (c) of this section not subject to the 9.82 percent rate of tax for the
17 taxable year multiplied by such rate and (ii) the dollar denominated tax
18 for such amount of taxable income set forth in the tax table applicable
19 to the taxable year in paragraph one of subsection (c) of this section
20 less the sum of the tax table benefits in subparagraphs (A), (B), (C)
21 and (D) of this paragraph. The fraction for this subparagraph is
22 computed as follows: the numerator is the lesser of fifty thousand
23 dollars or the excess of New York adjusted gross income for the taxable
24 year over ten million dollars and the denominator is fifty thousand
25 dollars.
26 (F) Provided, however, the total tax prior to the application of any
27 tax credits shall not exceed the highest rate of tax set forth in the
28 tax tables in subsection (c) of this section multiplied by the taxpay-
29 er's taxable income.
30 § 6. Subsection (f) of section 614 of the tax law, as amended by
31 section 11 of part FF of chapter 59 of the laws of 2013, is amended to
32 read as follows:
33 (f) Adjusted standard deduction. For taxable years beginning after two
34 thousand seventeen, the standard deductions set forth in this section
35 shall be the amounts set forth in this section adjusted by the cost of
36 living adjustment prescribed in section six hundred one-a of this part
37 for tax years two thousand thirteen [through two thousand seventeen] and
38 thereafter.
39 § 7. Notwithstanding any provision of law to the contrary, the method
40 of determining the amount to be deducted and withheld from wages on
41 account of taxes imposed by or pursuant to the authority of article 22
42 of the tax law in connection with the implementation of the provisions
43 of this act shall be prescribed by regulations of the commissioner of
44 taxation and finance with due consideration to the effect such withhold-
45 ing tables and methods would have on the receipt and amount of revenue.
46 The commissioner of taxation and finance shall adjust such withholding
47 tables and methods in regard to taxable years beginning in 2018 and
48 after in such manner as to result, so far as practicable, in withholding
49 from an employee's wages an amount substantially equivalent to the tax
50 reasonably estimated to be due for such taxable years as a result of the
51 provisions of this act. Any such regulations to implement a change in
52 withholding tables and methods for tax year 2018 shall be adopted and
53 effective as soon as practicable and the commissioner of taxation and
54 finance may adopt such regulations on an emergency basis notwithstanding
55 anything to the contrary in section 202 of the state administrative
56 procedure act. The commissioner of taxation and finance, in carrying out
A. 9179 11
1 the duties and responsibilities under this section, may accompany such a
2 rule making procedure with a similar procedure with respect to the taxes
3 required to be deducted and withheld by local laws imposing taxes pursu-
4 ant to the authority of articles 30, 30-A and 30-B of the tax law, the
5 provisions of any other law in relation to such a procedure to the
6 contrary notwithstanding.
7 § 8. This act shall take effect immediately and shall apply to taxable
8 years beginning on or after January 1, 2018.
9 § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
10 sion, section or part of this act shall be adjudged by any court of
11 competent jurisdiction to be invalid, such judgment shall not affect,
12 impair, or invalidate the remainder thereof, but shall be confined in
13 its operation to the clause, sentence, paragraph, subdivision, section
14 or part thereof directly involved in the controversy in which such judg-
15 ment shall have been rendered. It is hereby declared to be the intent of
16 the legislature that this act would have been enacted even if such
17 invalid provisions had not been included herein.
18 § 3. This act shall take effect immediately provided, however, that
19 the applicable effective date of Parts A through B of this act shall be
20 as specifically set forth in the last section of such Parts.
