S05954 Summary:

BILL NOS05954A
 
SAME ASSAME AS A06309-A
 
SPONSORKAPLAN
 
COSPNSRADDABBO, AKSHAR, BRESLIN, METZGER, RAMOS, SKOUFIS
 
MLTSPNSR
 
Amd §§210 & 612, Tax L
 
Relates to the business income rate and expanding the small business subtraction modification.
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S05954 Actions:

BILL NOS05954A
 
05/16/2019REFERRED TO BUDGET AND REVENUE
01/08/2020REFERRED TO BUDGET AND REVENUE
02/25/2020AMEND AND RECOMMIT TO BUDGET AND REVENUE
02/25/2020PRINT NUMBER 5954A
03/03/2020REPORTED AND COMMITTED TO FINANCE
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S05954 Committee Votes:

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S05954 Floor Votes:

There are no votes for this bill in this legislative session.
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S05954 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         5954--A
 
                               2019-2020 Regular Sessions
 
                    IN SENATE
 
                                      May 16, 2019
                                       ___________
 
        Introduced  by  Sens. KAPLAN, BRESLIN, SKOUFIS -- read twice and ordered
          printed, and when printed to be committed to the Committee  on  Budget
          and  Revenue  -- recommitted to the Committee on Budget and Revenue in
          accordance with Senate Rule 6, sec. 8 --  committee  discharged,  bill
          amended,  ordered reprinted as amended and recommitted to said commit-
          tee
 
        AN ACT to amend the tax law, in relation to  the  business  income  base
          rate and expanding the small business subtraction modification
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Subparagraph (iv) of paragraph  (a)  of  subdivision  1  of
     2  section  210 of the tax law, as amended by section 12 of part A of chap-
     3  ter 59 of the laws of 2014, is amended to read as follows:
     4    (iv) (A) for taxable years beginning before January first,  two  thou-
     5  sand  sixteen,  if the business income base is not more than two hundred
     6  ninety thousand dollars the amount shall be six and one-half percent  of
     7  the  business  income base; if the business income base is more than two
     8  hundred ninety thousand dollars but not over three hundred ninety  thou-
     9  sand  dollars the amount shall be the sum of (1) eighteen thousand eight
    10  hundred fifty dollars, (2) seven and one-tenth percent of the excess  of
    11  the  business  income  base over two hundred ninety thousand dollars but
    12  not over three hundred ninety thousand dollars and (3) four and  thirty-
    13  five  hundredths  percent of the excess of the business income base over
    14  three hundred fifty thousand dollars but not over three  hundred  ninety
    15  thousand dollars;
    16    (B)  for  taxable years beginning on or after January first, two thou-
    17  sand twenty-one, if the business  income  base  is  not  more  than  two
    18  hundred  ninety thousand dollars the amount shall be four percent of the
    19  business income base; if the business  income  base  is  more  than  two
    20  hundred  ninety thousand dollars but not over three hundred ninety thou-
    21  sand dollars the amount shall be the sum  of  (1)  eleven  thousand  six
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08516-02-0

        S. 5954--A                          2
 
     1  hundred dollars, (2) six and one-half percent of the excess of the busi-
     2  ness  income  base over two hundred ninety thousand dollars but not over
     3  three hundred ninety thousand dollars  and  (3)  eighteen  and  thirteen
     4  hundredths  percent of the excess of the business income base over three
     5  hundred fifty thousand dollars but not over three hundred  ninety  thou-
     6  sand dollars;
     7    §  2. Paragraph 39 of subsection (c) of section 612 of the tax law, as
     8  added by section 1 of part Y of chapter 59  of  the  laws  of  2013,  is
     9  amended to read as follows:
    10    (39)  (A)  In  the  case  of  a  taxpayer who is a small business or a
    11  taxpayer who is a member, partner, or shareholder of a limited liability
    12  company, partnership, or New York S corporation, respectively, that is a
    13  small business, who or which has business income and/or farm  income  as
    14  defined  in  the  laws  of the United States, an amount equal to [three]
    15  fifteen percent of the net items of income,  gain,  loss  and  deduction
    16  attributable  to  such  business  or farm entering into federal adjusted
    17  gross income, but not less than zero[, for taxable years beginning after
    18  two thousand thirteen, an  amount  equal  to  three  and  three-quarters
    19  percent  of  the net items of income, gain, loss and deduction attribut-
    20  able to such business or  farm  entering  into  federal  adjusted  gross
    21  income,  but  not  less than zero, for taxable years beginning after two
    22  thousand fourteen, and an amount equal to five percent of the net  items
    23  of  income,  gain,  loss  and deduction attributable to such business or
    24  farm entering into federal adjusted gross  income,  but  not  less  than
    25  zero, for taxable years beginning after two thousand fifteen].
    26    (B)  (i)  For  the purposes of this paragraph, the term small business
    27  shall mean: (I) a sole proprietor [or a farm business] who  employs  one
    28  or  more persons during the taxable year and who has net business income
    29  or net farm income of less than two hundred fifty thousand  dollars,  or
    30  (II)  a limited liability company, partnership or New York S corporation
    31  that during the taxable year employs one or more  persons  and  has  New
    32  York  gross  business income attributable to a non-farm business that is
    33  greater than zero but  less  than  one  million  five  hundred  thousand
    34  dollars  or  net  farm  income  attributable  to a farm business that is
    35  greater than zero but less than two hundred fifty thousand dollars.
    36    (ii) For purposes of this paragraph, the term New York gross  business
    37  income  shall  mean: (I) in the case of a limited liability company or a
    38  partnership New York source gross income as defined in subparagraph  (B)
    39  of  paragraph three of subsection (c) of section six hundred fifty-eight
    40  of this article, and, (II) in the case of a New York S corporation,  New
    41  York  receipts  included  in  the  numerator of the apportionment factor
    42  determined under section two hundred ten-A of this chapter for the taxa-
    43  ble year.
    44    (C) To qualify for this modification in relation to a  non-farm  small
    45  business  that is a limited liability company, partnership or New York S
    46  corporation, the taxpayer's income  attributable  to  the  net  business
    47  income from its ownership interests in non-farm limited liability compa-
    48  nies,  partnerships  or  New  York  S corporations must be less than two
    49  hundred fifty thousand dollars.
    50    § 3. This act shall take effect immediately and shall apply to taxable
    51  years beginning on or after January 1, 2021.
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