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A09462 Summary:

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A09462 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          9462
 
                   IN ASSEMBLY
 
                                     April 30, 2014
                                       ___________
 
        Introduced  by M. of A. SILVER, FARRELL -- read once and referred to the
          Committee on Ways and Means
 
        AN ACT to amend the tax law, the administrative code of the city of  New
          York, chapter 877 of the laws of 1975, chapter 884 of the laws of 1975
          and  chapter  882  of  the laws of 1977, relating to the imposition of
          certain taxes in the city of New York, in relation to  postponing  the

          expiration of certain tax rates and taxes in the city of New York
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Paragraph 3 of subdivision (a) of section 1212-A of the tax
     2  law, as amended by chapter 209 of the laws of 2011, is amended  to  read
     3  as follows:
     4    (3)  a tax, at the same uniform rate, but at a rate not to exceed four
     5  and one-half per centum, in multiples of one-half of one per centum,  on
     6  the  receipts from every sale of any or all of the following services in
     7  whole or in part: credit rating, credit reporting, credit adjustment and
     8  collection services, including,  but  not  limited  to,  those  services
     9  provided  by  mercantile and consumer credit rating or reporting bureaus
    10  or agencies and credit adjustment or  collection  bureaus  or  agencies,

    11  whether  rendered in written or oral form or in any other manner, except
    12  to the extent otherwise taxable under article twenty-eight of this chap-
    13  ter;  notwithstanding  the  foregoing,  collection  services  shall  not
    14  include those services performed by a law office or a law and collection
    15  office,  the maintenance or conduct of which constitutes the practice of
    16  law, if the services are performed by an attorney at law  who  has  been
    17  duly  licensed and admitted to practice law in this state. The local law
    18  imposing the taxes authorized by this paragraph may provide  for  exclu-
    19  sions  and  exemptions  in  addition to those provided for in such para-
    20  graph. Provided, however, that the tax hereby authorized  shall  not  be
    21  imposed after November thirtieth, two thousand [fourteen] seventeen.

    22    §  2.  Subsection  (a)  of  section 1301 of the tax law, as amended by
    23  chapter 209 of the laws of 2011 and paragraph 2 as amended by section 11
    24  of part J of chapter 59 of the laws of  2014,  is  amended  to  read  as
    25  follows:
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14958-01-4
        A. 9462                             2
 
     1    (a)  Notwithstanding  any  other provision of law to the contrary, any
     2  city in this state having a population of one million or  more  inhabit-
     3  ants,  acting  through  its local legislative body, is hereby authorized
     4  and empowered to adopt and amend local laws imposing in any  such  city,

     5  for taxable years beginning after nineteen hundred seventy-five:
     6    (1)  a  tax  on  the personal income of residents of such city, at the
     7  rates provided for under subsection (a) of section thirteen hundred four
     8  of  this  article  for  taxable  years  beginning  before  two  thousand
     9  [fifteen]  eighteen,  and at the rates provided for under subsection (b)
    10  of section thirteen hundred four  of  this  article  for  taxable  years
    11  beginning  after  two  thousand [fourteen] seventeen, provided, however,
    12  that if, for any taxable year beginning after  two  thousand  [fourteen]
    13  seventeen, the rates set forth in such subsection (b) are rendered inap-
    14  plicable  and  the  rates  set forth in such subsection (a) are rendered
    15  applicable, then the tax for such taxable year shall  be  at  the  rates

    16  provided under subparagraph (A) of paragraphs one, two and three of such
    17  subsection (a),
    18    (2)  for taxable years beginning after nineteen hundred seventy-six, a
    19  separate tax on the ordinary income portion of lump sum distributions of
    20  such residents, at the rates provided  for  herein,  such  taxes  to  be
    21  administered,  collected and distributed by the commissioner as provided
    22  for in this article.
    23    § 3. Subsection (b) of section 1304 of the  tax  law,  as  amended  by
    24  chapter 209 of the laws of 2011, is amended to read as follows:
    25    (b)  A  tax  other  than  the city separate tax on the ordinary income
    26  portion of lump sum distributions imposed pursuant to the  authority  of
    27  section  thirteen  hundred  one  of  this article shall be determined as
    28  follows:
    29    (1) Resident married individuals filing  joint  returns  and  resident

    30  surviving  spouses.  The tax under this section for each taxable year on
    31  the city taxable income of every city resident  married  individual  who
    32  makes  a  single  return jointly with his or her spouse under subsection
    33  (b) of section thirteen hundred six of this  article  and  on  the  city
    34  taxable  income  of every city resident surviving spouse shall be deter-
    35  mined in accordance with the following table:
 
    36    For taxable years beginning after two thousand [fourteen] seventeen:
 
    37  If the city taxable income is:         The tax is:
    38  Not over $21,600                       1.18% of the city taxable income
    39  Over $21,600 but not                   $255 plus 1.435% of excess
    40  over $45,000                             over $21,600
    41  Over $45,000 but not                   $591 plus 1.455% of excess
    42  over $90,000                             over $45,000

    43  Over $90,000                           $1,245 plus 1.48% of excess
    44                                           over $90,000
 
    45    (2) Resident heads of households. The tax under this section for  each
    46  taxable year on the city taxable income of every city resident head of a
    47  household shall be determined in accordance with the following table:
 
    48    For taxable years beginning after two thousand [fourteen] seventeen:
 
    49  If the city taxable income is:         The tax is:
    50  Not over $14,400                       1.18% of the city taxable income
    51  Over $14,400 but not                   $170 plus 1.435% of excess
        A. 9462                             3
 
     1  over $30,000                             over $14,400
     2  Over $30,000 but not                   $394 plus 1.455% of excess
     3  over $60,000                             over $30,000

     4  [over] Over $60,000                    $830 plus 1.48% of excess
     5                                           over $60,000
 
     6    (3)  Resident  unmarried  individuals,  resident  married  individuals
     7  filing separate returns and resident estates and trusts. The  tax  under
     8  this  section  for each taxable year on the city taxable income of every
     9  city resident individual who is not a city resident  married  individual
    10  who  makes  a  single  return  jointly  with  his  or  her  spouse under
    11  subsection (b) of section thirteen hundred six of this article or a city
    12  resident head of household or a city resident surviving spouse,  and  on
    13  the city taxable income of every city resident estate and trust shall be
    14  determined in accordance with the following table:
 
    15    For taxable years beginning after two thousand [fourteen] seventeen:
 

    16  If the city taxable income is:         The tax is:
    17  Not over $12,000                       1.18% of the city taxable income
    18  Over $12,000 but not                   $142 plus 1.435% of excess
    19  over $25,000                             over $12,000
    20  Over $25,000 but not                   $328 plus 1.455% of excess
    21  over $50,000                             over $25,000
    22  Over $50,000                           $692 plus 1.48% of excess
    23                                           over $50,000
    24    §  4.  Subsection  (a) of section 1304-B of the tax law, as amended by
    25  chapter 209 of the laws of 2011, is amended to read as follows:
    26    (a) (1) In addition to any other taxes authorized by this article, any
    27  city imposing such taxes is hereby authorized and empowered to adopt and
    28  amend local laws imposing in any such city for each taxable year  begin-

    29  ning  after  nineteen  hundred  ninety but before two thousand [fifteen]
    30  eighteen, an additional tax on the city taxable  income  of  every  city
    31  resident individual, estate and trust, to be calculated for each taxable
    32  year  as  follows:  (i)  for  each taxable year beginning after nineteen
    33  hundred ninety but before nineteen hundred ninety-nine, at the  rate  of
    34  fourteen  percent  of  the  sum  of the taxes for each such taxable year
    35  determined pursuant to section thirteen hundred four and  section  thir-
    36  teen  hundred  four-A  of  this  article; and (ii) for each taxable year
    37  beginning after nineteen hundred ninety-eight, at the rate  of  fourteen
    38  percent  of  the  tax  for such taxable year determined pursuant to such
    39  section thirteen hundred four.
    40    (2) Notwithstanding paragraph one of this subsection, for each taxable

    41  year beginning after nineteen hundred ninety-nine but before  two  thou-
    42  sand  [fifteen]  eighteen,  any city imposing such additional tax may by
    43  local law impose such tax at a rate that is less than  fourteen  percent
    44  and  may impose such tax at more than one rate depending upon the filing
    45  status and city taxable income of such city resident individual,  estate
    46  or trust.
    47    (3)  A  local law enacted pursuant to paragraph two of this subsection
    48  shall be applicable with respect to any taxable year only if it has been
    49  enacted on or before July thirty-first of such year. A certified copy of
    50  such local law shall be mailed by registered mail to the  department  at
    51  its  office in Albany within fifteen days of its enactment. However, the
    52  department may allow additional time  for  such  certified  copy  to  be

        A. 9462                             4
 
     1  mailed  if  it  deems such action to be consistent with its duties under
     2  this article.
     3    § 5. Paragraph E of subdivision 1 of section 11-604 of the administra-
     4  tive code of the city of New York, as amended by chapter 209 of the laws
     5  of 2011, is amended to read as follows:
     6    E.  For  taxable  years  beginning on or after January first, nineteen
     7  hundred seventy-eight but before January first, two  thousand  [fifteen]
     8  eighteen,  the  tax imposed by subdivision one of section 11-603 of this
     9  subchapter shall be, in the case of each taxpayer:
    10    (a) whichever of the following amounts is the greatest:
    11    (1) an amount computed, for taxable years  beginning  before  nineteen
    12  hundred  eighty-seven,  at  the rate of nine per centum, and for taxable

    13  years beginning after nineteen hundred eighty-six, at the rate of  eight
    14  and  eighty-five  one-hundredths per centum, of its entire net income or
    15  the portion of such entire net income allocated within the city as here-
    16  inafter provided, subject to any modification required by paragraphs (d)
    17  and (e) of subdivision three of this section,
    18    (2) an amount computed at one and one-half mills for  each  dollar  of
    19  its  total business and investment capital, or the portion thereof allo-
    20  cated within the city, as hereinafter provided, except that in the  case
    21  of  a cooperative housing corporation as defined in the internal revenue
    22  code, the applicable rate shall be four-tenths of one mill,
    23    (3) an amount computed, for taxable years  beginning  before  nineteen
    24  hundred  eighty-seven,  at  the rate of nine per centum, and for taxable

    25  years beginning after nineteen hundred eighty-six, at the rate of  eight
    26  and  eighty-five  one-hundredths per centum, on thirty per centum of the
    27  taxpayer's entire net income plus salaries and other  compensation  paid
    28  to the taxpayer's elected or appointed officers and to every stockholder
    29  owning  in  excess  of five per centum of its issued capital stock minus
    30  fifteen thousand dollars (subject to proration as hereinafter  provided)
    31  and  any  net  loss for the reported year, or on the portion of any such
    32  sum allocated within the city as hereinafter provided for the allocation
    33  of entire net income, subject to any modification required by paragraphs
    34  (d) and (e) of subdivision three of  this  section,  provided,  however,
    35  that  for  taxable  years  beginning  on  or  after July first, nineteen
    36  hundred ninety-six, the provisions of paragraph H  of  this  subdivision

    37  shall apply for purposes of the computation under this clause, or
    38    (4)  for  taxable  years  ending on or before June thirtieth, nineteen
    39  hundred eighty-nine, one hundred twenty-five dollars, for taxable  years
    40  ending  after June thirtieth, nineteen hundred eighty-nine and beginning
    41  before two thousand nine, three hundred dollars, and for  taxable  years
    42  beginning after two thousand eight:
    43      If New York city receipts are:          Fixed dollar minimum tax is:
    44    Not more than $100,000                              $25
    45    More than $100,000 but not over $250,000            $75
    46    More than $250,000 but not over $500,000            $175
    47    More than $500,000 but not over $1,000,000          $500
    48    More than $1,000,000 but not over $5,000,000        $1,500
    49    More than $5,000,000 but not over $25,000,000       $3,500
    50    Over $25,000,000                                    $5,000

    51  For  purposes  of  this  clause, New York city receipts are the receipts
    52  computed in accordance with subparagraph two of paragraph (a) of  subdi-
    53  vision  three  of  this  section for the taxable year. For taxable years
    54  beginning after two thousand eight, if the taxable  year  is  less  than
    55  twelve  months, the amount prescribed by this clause shall be reduced by
    56  twenty-five percent if the period for which the taxpayer is  subject  to
        A. 9462                             5
 
     1  tax  is  more than six months but not more than nine months and by fifty
     2  percent if the period for which the taxpayer is subject to  tax  is  not
     3  more  than  six  months. If the taxable year is less than twelve months,
     4  the  amount  of  New  York  city receipts for purposes of this clause is
     5  determined by dividing the amount of the receipts for the  taxable  year

     6  by  the  number of months in the taxable year and multiplying the result
     7  by twelve, plus;
     8    (b) an amount computed at the rate of three-quarters  of  a  mill  for
     9  each  dollar  of  the portion of its subsidiary capital allocated within
    10  the city as hereinafter provided.
    11    In the case of a taxpayer which is not subject to tax  for  an  entire
    12  year,  the exemption allowed in clause three of subparagraph (a) of this
    13  paragraph shall be prorated according to the period  such  taxpayer  was
    14  subject  to  tax. Provided, however, that this paragraph shall not apply
    15  to taxable years beginning after  December  thirty-first,  two  thousand
    16  [fourteen]  seventeen.  For the taxable years specified in the preceding
    17  sentence, the tax imposed by subdivision one of section 11-603  of  this
    18  subchapter  shall be, in the case of each taxpayer, determined as speci-

    19  fied in paragraph A of this subdivision,  provided,  however,  that  the
    20  provisions  of  paragraphs  G  and H of this subdivision shall apply for
    21  purposes of the computation under clause three of  subparagraph  (a)  of
    22  such paragraph A.
    23    §  6.  The  opening paragraph of section 11-1701 of the administrative
    24  code of the city of New York, as amended by chapter 209 of the  laws  of
    25  2011, is amended to read as follows:
    26    A tax is hereby imposed on the city taxable income of every city resi-
    27  dent  individual,  estate  and  trust  determined in accordance with the
    28  rates set forth in subdivision (a) of this  section  for  taxable  years
    29  beginning before two thousand [fifteen] eighteen, and in accordance with
    30  the rates set forth in subdivision (b) of this section for taxable years

    31  beginning  after  two thousand [fourteen] seventeen.  Provided, however,
    32  that if, for any taxable year beginning after  two  thousand  [fourteen]
    33  seventeen,  the  rates  set  forth  in such subdivision (b) are rendered
    34  inapplicable and the  rates  set  forth  in  such  subdivision  (a)  are
    35  rendered  applicable, then the tax for such taxable year shall be at the
    36  rates provided under subparagraph (A) of paragraphs one, two  and  three
    37  of such subdivision (a).
    38    §  7. Subdivision (b) of section 11-1701 of the administrative code of
    39  the city of New York, as amended by chapter 209 of the laws of 2011,  is
    40  amended to read as follows:
    41    (b)  Rate  of  tax.  A  tax  imposed pursuant to this section shall be
    42  determined as follows:
    43    (1) Resident married individuals filing  joint  returns  and  resident

    44  surviving  spouses.  The tax under this section for each taxable year on
    45  the city taxable income of every city resident  married  individual  who
    46  makes  a  single return jointly with his or her spouse under subdivision
    47  (b) of section 11-1751 of this title and on the city taxable  income  of
    48  every  city  resident surviving spouse shall be determined in accordance
    49  with the following table:
    50    For taxable years beginning after two thousand [fourteen] seventeen:
 
    51  If the city taxable income is:         The tax is:
    52  Not over $21,600                       1.18% of the city taxable income
    53  Over $21,600 but not                   $255 plus 1.435% of excess
    54  over $45,000                             over $21,600
    55  Over $45,000 but not                   $591 plus 1.455% of excess
        A. 9462                             6
 

     1  over $90,000                             over $45,000
     2  Over $90,000                           $1,245 plus 1.48% of excess
     3                                           over $90,000
     4    (2)  Resident heads of households. The tax under this section for each
     5  taxable year on the city taxable income of every city resident head of a
     6  household shall be determined in accordance with the following table:
     7    For taxable years beginning after two thousand [fourteen] seventeen:
 
     8  If the city taxable income is:         The tax is:
     9  Not over $14,400                       1.18% of the city taxable income
    10  Over $14,400 but not                   $170 plus 1.435% of excess
    11  over $30,000                             over $14,400
    12  Over $30,000 but not                   $394 plus 1.455% of excess
    13  over $60,000                             over $30,000

    14  Over $60,000                           $830 plus 1.48% of excess
    15                                           over $60,000
 
    16    (3)  Resident  unmarried  individuals,  resident  married  individuals
    17  filing  separate  returns and resident estates and trusts. The tax under
    18  this section for each taxable year on the city taxable income  of  every
    19  city  resident  individual  who  is not a married individual who makes a
    20  single return jointly with his or her spouse under  subdivision  (b)  of
    21  section  11-1751 of this title or a city resident head of a household or
    22  a city resident surviving spouse, and on  the  city  taxable  income  of
    23  every  city  resident estate and trust shall be determined in accordance
    24  with the following table:
    25    For taxable years beginning after two thousand [fourteen] seventeen:
 
    26  If the city taxable income is:         The tax is:

    27  Not over $12,000                       1.18% of the city taxable income
    28  Over $12,000 but not                   $142 plus 1.435% of excess
    29  over $25,000                             over $12,000
    30  Over $25,000 but not                   $328 plus 1.455% of excess
    31  over $50,000                             over $25,000
    32  Over $50,000                           $692 plus 1.48% of excess
    33                                           over $50,000
 
    34    § 8. Paragraph 1 of subdivision (a) of section 11-1704.1 of the admin-
    35  istrative code of the city of New York, as amended by chapter 209 of the
    36  laws of 2011, is amended to read as follows:
    37    (1) In addition to any other taxes imposed by this chapter,  there  is
    38  hereby  imposed  for  each taxable year beginning after nineteen hundred
    39  ninety but before two thousand [fifteen] eighteen, an additional tax  on

    40  the  city  taxable  income of every city resident individual, estate and
    41  trust, to be calculated for each taxable year as follows: (i)  for  each
    42  taxable year beginning after nineteen hundred ninety but before nineteen
    43  hundred  ninety-nine,  at the rate of fourteen percent of the sum of the
    44  taxes for each such taxable year determined pursuant to section  11-1701
    45  and  section  11-1704 of this subchapter; and (ii) for each taxable year
    46  beginning after nineteen hundred ninety-eight, at the rate  of  fourteen
    47  percent  of  the  tax  for such taxable year determined pursuant to such
    48  section 11-1701.
    49    § 9. Subdivision (a) of section 11-2002 of the administrative code  of
    50  the  city of New York, as amended by chapter 209 of the laws of 2011, is
    51  amended to read as follows:
        A. 9462                             7
 

     1    (a) There are hereby imposed and there shall be paid  sales  taxes  at
     2  the rate of four and one-half percent on receipts from every sale of the
     3  services  of  beauty, barbering, hair restoring, manicuring, pedicuring,
     4  electrolysis, massage services and similar services, and every  sale  of
     5  services  by  weight  control salons, health salons, gymnasiums, turkish
     6  and sauna bath and similar establishments and every charge for  the  use
     7  of  such  facilities,  whether  or not any tangible personal property is
     8  transferred in conjunction therewith; but excluding services rendered by
     9  a physician, osteopath, dentist, nurse,  physiotherapist,  chiropractor,
    10  podiatrist,  optometrist,  ophthalmic  dispenser  or a person performing
    11  similar services licensed under title eight of  the  education  law,  as
    12  amended,  and  excluding  such services when performed on pets and other

    13  animals, as authorized by subdivision  (a)  of  section  twelve  hundred
    14  twelve-A  of the tax law. Provided, however, that the tax hereby imposed
    15  shall not be imposed after November thirtieth, two  thousand  [fourteen]
    16  seventeen.
    17    §  10.  The opening paragraph of subdivision (a) of section 11-2040 of
    18  the administrative code of the city of New York, as amended  by  chapter
    19  209 of the laws of 2011, is amended to read as follows:
    20    There  is hereby imposed within the city and there shall be paid a tax
    21  at the rate of four and one-half percent upon the  receipts  from  every
    22  sale,  except  for resale, of the following services, provided, however,
    23  that the tax hereby imposed shall not be imposed after November  thirti-
    24  eth,  two  thousand  [fourteen] seventeen, on receipts from sales of the

    25  services specified in paragraph one of this subdivision:
    26    § 11. Section 4 of chapter 877 of the laws of 1975,  relating  to  the
    27  imposition of certain taxes in the city of New York, as amended by chap-
    28  ter 209 of the laws of 2011, is amended to read as follows:
    29    §  4.  This  act  shall  expire on December 31, [2014] 2017, provided,
    30  however, that it is hereby declared to be the express intention  of  the
    31  legislature  that  the provisions of sections two and three of this act,
    32  except with respect to the enforcement and collection of any tax arising
    33  thereunder, shall remain in full force and effect only until the date of
    34  such expiration, at which time the provisions of law amended by this act
    35  shall be continued in full force and effect as they existed prior to the
    36  enactment of this act.

    37    § 12. Section 6 of chapter 884 of the laws of 1975,  relating  to  the
    38  imposition of certain taxes in the city of New York, as amended by chap-
    39  ter 209 of the laws of 2011, is amended to read as follows:
    40    §  6.  This  act  shall  expire on December 31, [2014] 2017, provided,
    41  however, that it is hereby declared to be the express intention  of  the
    42  legislature  that the provisions of sections two, three and four of this
    43  act, except with respect to the enforcement and collection  of  any  tax
    44  arising thereunder, shall remain in full force and effect only until the
    45  date  of such expiration, at which time the provisions of law amended by
    46  this act shall be continued in full force and  effect  as  they  existed
    47  prior to the enactment of this act.
    48    §  13.  Section  2 of chapter 882 of the laws of 1977, relating to the

    49  imposition of certain taxes in the city of New York, as amended by chap-
    50  ter 209 of the laws of 2011, is amended to read as follows:
    51    § 2. This act shall expire on  December  31,  [2014]  2017,  provided,
    52  however,  that  it is hereby declared to be the express intention of the
    53  legislature that the provisions of section one of this act, except  with
    54  respect to the enforcement and collection of any tax arising thereunder,
    55  shall  remain in full force and effect only until the date of such expi-
    56  ration, at which time the provisions of law amended by this act shall be
        A. 9462                             8
 
     1  continued in full force and effect as they existed prior to  the  enact-
     2  ment of this act.
     3    § 14. This act shall take effect immediately.