Amd §§601 & 171-a, Tax L; amd §92-c, add §78-c, St Fin L
Relates to extending the top state income tax rate for those that make $5,000,000 or more and with such additional funds provides for additional school aid for the general support of public schools and for additional operating support for SUNY and CUNY.
STATE OF NEW YORK
________________________________________________________________________
6648
2021-2022 Regular Sessions
IN ASSEMBLY
March 23, 2021
___________
Introduced by M. of A. GLICK, CARROLL, SIMON, DINOWITZ, REYES -- read
once and referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to extending the top state
income tax rate; to amend the state finance law, in relation to
providing additional funding for the general support of public
schools; and to amend the state finance law, in relation to creating
the supplemental public higher education fund
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Clauses (iii) and (iv) of subparagraph (B) of paragraph 1
2 of subsection (a) of section 601 of the tax law, as amended by section 1
3 of part P of chapter 59 of the laws of 2019, are amended to read as
4 follows:
5 (iii) For taxable years beginning in two thousand twenty the following
6 rates shall apply:
7 If the New York taxable income is: The tax is:
8 Not over $17,150 4% of the New York taxable income
9 Over $17,150 but not over $23,600 $686 plus 4.5% of excess over
10 $17,150
11 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over
12 $23,600
13 Over $27,900 but not over $43,000 $1,202 plus 5.9% of excess over
14 $27,900
15 Over $43,000 but not over $161,550 $2,093 plus 6.09% of excess over
16 $43,000
17 Over $161,550 but not over $323,200 $9,313 plus 6.41% of excess over
18 $161,550
19 Over $323,200 but not over $19,674 plus 6.85% of excess
20 $2,155,350 $323,200 over
21 Over $2,155,350 but not over $145,177 plus 8.82% of excess over
22 $5,000,000 $2,155,350
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD02672-03-1
A. 6648 2
1 Over $5,000,000$396,076 plus 10.9% of excess over
2 $5,000,000
3 (iv) For taxable years beginning in two thousand twenty-one the
4 following rates shall apply:
5 If the New York taxable income is: The tax is:
6 Not over $17,150 4% of the New York taxable income
7 Over $17,150 but not over $23,600 $686 plus 4.5% of excess over
8 $17,150
9 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over
10 $23,600
11 Over $27,900 but not over $43,000 $1,202 plus 5.9% of excess over
12 $27,900
13 Over $43,000 but not over $161,550 $2,093 plus 5.97% of excess over
14 $43,000
15 Over $161,550 but not over $323,200 $9,170 plus 6.33% of excess over
16 $161,550
17 Over $323,200 but not over $19,403 plus 6.85% of excess
18 $2,155,350 over $323,200
19 Over $2,155,350 but not over $144,905 plus 8.82% of excess over
20 $5,000,000 $2,155,350
21 Over $5,000,000$395,803 plus 10.9% of excess over
22 $5,000,000
23 § 2. Clauses (iii) and (iv) of subparagraph (B) of paragraph 1 of
24 subsection (b) of section 601 of the tax law, as amended by section 2 of
25 part P of chapter 59 of the laws of 2019, are amended to read as
26 follows:
27 (iii) For taxable years beginning in two thousand twenty the following
28 rates shall apply:
29 If the New York taxable income is: The tax is:
30 Not over $12,800 4% of the New York taxable income
31 Over $12,800 but not over $17,650 $512 plus 4.5% of excess over $12,800
32 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over
33 $17,650
34 Over $20,900 but not over $32,200 $901 plus 5.9% of excess over $20,900
35 Over $32,200 but not over $107,650 $1,568 plus 6.09% of excess over
36 $32,200
37 Over $107,650 but not over $269,300 $6,162 plus 6.41% of excess over
38 $107,650
39 Over $269,300 but not over $16,524 plus 6.85% of
40 $1,616,450 excess over $269,300
41 Over $1,616,450 but not over $108,804 plus 8.82% of excess over
42 $5,000,000 $1,616,450
43 Over $5,000,000$407,233 plus 10.9% of excess over
44 $5,000,000
45 (iv) For taxable years beginning in two thousand twenty-one the
46 following rates shall apply:
47 If the New York taxable income is: The tax is:
48 Not over $12,800 4% of the New York taxable income
49 Over $12,800 but not over $17,650 $512 plus 4.5% of excess over
50 $12,800
51 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over
52 $17,650
53 Over $20,900 but not over $32,200 $901 plus 5.9% of excess over
54 $20,900
55 Over $32,200 but not over $107,650 $1,568 plus 5.97% of excess over
A. 6648 3
1 $32,200
2 Over $107,650 but not over $269,300 $6,072 plus 6.33% of excess over
3 $107,650
4 Over $269,300 but not over $16,304 plus 6.85% of
5 $1,616,450 excess over $269,300
6 Over $1,616,450 but not over $108,584 plus 8.82% of excess over
7 $5,000,000 $1,616,450
8 Over $5,000,000$407,013 plus 10.9% of excess over
9 $5,000,000
10 § 3. Clauses (iii) and (iv) of subparagraph (B) of paragraph 1 of
11 subsection (c) of section 601 of the tax law, as amended by section 3 of
12 part P of chapter 59 of the laws of 2019, are amended to read as
13 follows:
14 (iii) For taxable years beginning in two thousand twenty the following
15 rates shall apply:
16 If the New York taxable income is: The tax is:
17 Not over $8,500 4% of the New York taxable income
18 Over $8,500 but not over $11,700 $340 plus 4.5% of excess over
19 $8,500
20 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over
21 $11,700
22 Over $13,900 but not over $21,400 $600 plus 5.9% of excess over
23 $13,900
24 Over $21,400 but not over $80,650 $1,042 plus 6.09% of excess over
25 $21,400
26 Over $80,650 but not over $215,400 $4,650 plus 6.41% of excess over
27 $80,650
28 Over $215,400 but not over $13,288 plus 6.85% of excess
29 $1,077,550 over $215,400
30 Over $1,077,550 but not over $72,345 plus 8.82% of excess over
31 $5,000,000 $1,077,550
32 Over $5,000,000$418,305 plus 10.9% of excess over
33 $5,000,000
34 (iv) For taxable years beginning in two thousand twenty-one the
35 following rates shall apply:
36 If the New York taxable income is: The tax is:
37 Not over $8,500 4% of the New York taxable income
38 Over $8,500 but not over $11,700 $340 plus 4.5% of excess over
39 $8,500
40 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over
41 $11,700
42 Over $13,900 but not over $21,400 $600 plus 5.9% of excess over
43 $13,900
44 Over $21,400 but not over $80,650 $1,042 plus 5.97% of excess over
45 $21,400
46 Over $80,650 but not over $215,400 $4,579 plus 6.33% of excess over
47 $80,650
48 Over $215,400 but not over $13,109 plus 6.85% of excess
49 $1,077,550 over $215,400
50 Over $1,077,550 but not over $72,166 plus 8.82% of excess over
51 $5,000,000 $1,077,550
52 Over $5,000,000$418,126 plus 10.9% of excess over
53 $5,000,000
54 § 4. Section 171-a of the tax law is amended by adding a new subdivi-
55 sion 3 to read as follows:
A. 6648 4
1 3. Notwithstanding subdivision one of this section or any other
2 provision of law to the contrary, eighty-five percent of any revenue
3 derived from an increase in the taxes imposed on income over five
4 million dollars pursuant to section six hundred one of this chapter
5 attributable to the difference in the rate of such taxes for taxable
6 year two thousand twenty and the rate of such taxes for taxable year two
7 thousand nineteen and the difference in the rate of such taxes for taxa-
8 ble year two thousand twenty-one and the rate of such taxes for taxable
9 year two thousand nineteen shall be deposited in the state lottery fund,
10 created pursuant to section ninety-two-c of the state finance law, as
11 such taxes are received. The remaining fifteen percent of such derived
12 revenue shall be deposited in the supplemental public higher education
13 fund, created pursuant to section seventy-eight-c of the state finance
14 law. The amount for administrative costs shall be determined by the
15 commissioner to represent reasonable costs of the department in adminis-
16 tering, collecting, determining and distributing such taxes. Of the
17 total revenue collected or received under such sections of this chapter,
18 the comptroller shall retain in his or her hands such amount as the
19 commissioner may determine to be necessary for refunds or reimbursements
20 under such sections of this chapter out of which amount the comptroller
21 shall pay any refunds or reimbursements to which taxpayers shall be
22 entitled under provisions of such sections. The commissioner and the
23 comptroller shall maintain a system of accounts showing the amount of
24 revenue collected or received from each of the taxes imposed by such
25 sections.
26 § 5. Section 601 of the tax law is amended by adding a new subsection
27 (d-2) to read as follows:
28 (d-2) Alternative tax table benefit recapture. For taxable years two
29 thousand twenty and two thousand twenty-one for a taxpayer whose New
30 York taxable income is over five million dollars, there is hereby
31 imposed a supplemental tax in addition to the tax imposed under
32 subsections (a), (b), (c) and (d-1) of this section for the purpose of
33 recapturing the benefit of the tax tables contained in such subsections.
34 During these taxable years, any reference in this chapter to subsection
35 (d) of this section shall be read as a reference to this subsection.
36 (1) For resident married individuals filing joint returns and resident
37 surviving spouses, the supplemental tax shall be an amount equal to the
38 sum of the tax table benefit in subparagraph (A) of this paragraph
39 multiplied by the respective fraction in such subparagraph.
40 (A) The tax table benefit is the difference between (i) the amount of
41 taxable income set forth in the tax table in paragraph one of subsection
42 (a) of this section not subject to the 10.9 percent rate of tax for the
43 taxable year multiplied by such rate and (ii) the dollar denominated tax
44 for such amount of taxable income set forth in the tax table applicable
45 to the taxable year in paragraph one of subsection (a) of this section
46 less the sum of the tax table benefits in subparagraphs (A), (B) and (C)
47 of paragraph one of subsection (d-1) of this section. The fraction for
48 this subparagraph is computed as follows: the numerator is the lesser of
49 fifty thousand dollars or the excess of New York adjusted gross income
50 for the taxable year over five million dollars and the denominator is
51 fifty thousand dollars. Provided, however, this subparagraph shall not
52 apply to taxpayers who are not subject to the 10.9 percent tax rate.
53 (B) Provided, however, the total tax prior to the application of any
54 tax credits shall not exceed the highest rate of tax set forth in the
55 tax tables in subsection (a) of this section multiplied by the taxpay-
56 er's taxable income.
A. 6648 5
1 (2) For resident heads of households, the supplemental tax shall be an
2 amount equal to the sum of the tax table benefit described in subpara-
3 graph (A) of this paragraph multiplied by the respective fraction in
4 such subparagraph.
5 (A) The tax table benefit is the difference between (i) the amount of
6 taxable income set forth in the tax table in paragraph one of subsection
7 (b) of this section not subject to the 10.9 percent rate of tax for the
8 taxable year multiplied by such rate and (ii) the dollar denominated tax
9 for such amount of taxable income set forth in the tax table applicable
10 to the taxable year in paragraph one of subsection (b) of this section
11 less the sum of the tax table benefits in subparagraphs (A) and (B) of
12 paragraph two of subsection (d-1) of this section. The fraction for this
13 subparagraph is computed as follows: the numerator is the lesser of
14 fifty thousand dollars or the excess of New York adjusted gross income
15 for the taxable year over five million dollars and the denominator is
16 fifty thousand dollars. Provided, however, this subparagraph shall not
17 apply to taxpayers who are not subject to the 10.9 percent tax rate.
18 (B) Provided, however, the total tax prior to the application of any
19 tax credits shall not exceed the highest rate of tax set forth in the
20 tax tables in subsection (b) of this section multiplied by the taxpay-
21 er's taxable income.
22 (3) For resident unmarried individuals, resident married individuals
23 filing separate returns and resident estates and trusts, the supple-
24 mental tax shall be an amount equal to the sum of the tax table benefits
25 described in subparagraph (A) of this paragraph multiplied by the
26 respective fractions in such subparagraph.
27 (A) 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 (c) of this section not subject to the 10.9 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 (c) of this section
33 less the sum of the tax table benefits in subparagraphs (A) and (B) of
34 paragraph three of subsection (d-1) of this section. The fraction for
35 this subparagraph is computed as follows: the numerator is the lesser of
36 fifty thousand dollars or the excess of New York adjusted gross income
37 for the taxable year over five million dollars and the denominator is
38 fifty thousand dollars. Provided, however, this subparagraph shall not
39 apply to taxpayers who are not subject to the 10.9 percent tax rate.
40 (B) Provided, however, the total tax prior to the application of any
41 tax credits shall not exceed the highest rate of tax set forth in the
42 tax tables in subsection (c) of this section multiplied by the taxpay-
43 er's taxable income.
44 § 6. Section 92-c of the state finance law is amended by adding a new
45 subdivision 3-a to read as follows:
46 3-a. Moneys in such fund deposited pursuant to the provisions of
47 subdivision three of section one hundred seventy-one-a of the tax law
48 shall be appropriated or transferred only for the general support of
49 public schools.
50 § 7. The state finance law is amended by adding a new section 78-c to
51 read as follows:
52 § 78-c. Supplemental public higher education fund. 1. There is hereby
53 established in the joint custody of the state comptroller and the
54 commissioner of taxation and finance a fund to be known as the "supple-
55 mental public higher education fund".
A. 6648 6
1 2. Such fund shall consist of the revenues received by the department
2 of taxation and finance, pursuant to the provisions of subdivision three
3 of section one hundred seventy-one-a of the tax law, and all other
4 moneys appropriated, credited, or transferred thereto from any other
5 fund or source pursuant to law. Nothing in this section shall prevent
6 the state from soliciting and receiving grants, gifts or bequests for
7 the purposes of the fund as defined in this section and depositing them
8 into the fund according to law.
9 3. Moneys of the fund shall be distributed equally to the state
10 university of New York and the city university of New York for addi-
11 tional operating support, as appropriated by the legislature.
12 § 8. Notwithstanding any law, rule or regulation to the contrary, any
13 moneys collected pursuant to subdivision 3 of section 171-a of the tax
14 law and appropriated for the general support of public schools shall not
15 diminish the amount of school aid appropriated for any given school
16 year. Such collected moneys shall be additional funding. For the
17 purposes of this section, "amount of school aid" shall mean the amount
18 appropriated pursuant to the state budget for the previous school year.
19 § 9. Notwithstanding any law, rule or regulation to the contrary, any
20 moneys collected pursuant to subdivision 3 of section 171-a of the tax
21 law and appropriated for additional operating support of the state
22 university of New York and the city university of New York shall not
23 diminish the amount of operating support for the state university of New
24 York and the city university of New York appropriated for any given
25 academic year. Such collected moneys shall be additional funding. For
26 the purposes of this section, "operating support" shall mean the amount
27 appropriated pursuant to the state budget for the previous academic
28 year.
29 § 10. This act shall take effect immediately and shall be deemed to
30 have been in full force and effect on and after January 1, 2020 and
31 shall apply to taxable years on and after such date.
