Amd §101, §2 of Chap 772 of 1966; amd §§11-503, 11-604, 11-643.5, 11-643.8 & 11-654, NYC Ad Cd
Increases tax rates imposed on unincorporated businesses and corporations in New York city upon adoption of a local law by the local legislative body of the city of New York.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A10340A
SPONSOR: Moreno TITLE OF BILL:
An act to amend chapter 772 of the laws of 1966, relating to enabling
any city having a population of one million or more to raise tax reven-
ue; and to amend the administrative code of the city of New York, in
relation to increasing tax rates imposed on unincorporated businesses
and corporations in New York city for taxable years beginning on or
after January first, two thousand twenty-six, upon adoption of a local
law by the local legislative body of the city of New York
PURPOSE:
The purpose of this bill is to authorize New York City to increase tax
rates on unincorporated businesses with incomes greater than $5 million
and corporations.
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 amends the general tax for a city with a population of a
million people or more to increase the tax rate for unincorporated busi-
nesses from 4% to 4.4% on taxable income greater than $5 million.
Section 2 amends the administrative code of the city of New York to
update the tax rate for unincorporated businesses.
Sections 3 - 13 amend the administrative code of the city of New York to
increase the corporate tax rate on financial sector firms from 9% to
10.8%, and to increase the corporate tax rate for non-finance sectors
from 8.85% to 10.62%.
Section 14 provides that this shall be ratified by the local legislative
body of the city of New York.
Section 15 provides the effective date.
JUSTIFICATION:
Across the country large economic drivers like Amazon, Alphabet, Meta,
and Tesla have reported $315 billion in record profits for 2025, accord-
ing to a report from the Institute on Taxation and Economic Policy.
These companies collectively paid just 4.9% of that amount in federal
corporate income taxes-with Tesla paying exactly zero. Millions of New
Yorkers paid more in federal income tax than Tesla did in 2025.
A 2025 study from the Roosevelt Institute' found that low corporate
taxes can lead to market consolidation among large corporations, creat-
ing lower wages and higher costs. They estimate the market consolidation
from low taxes could cost a typical household $5,000 per year.
New York City is home to dozens of Fortune 500 companies. Yet, for
corporations with over $5 million in annual profits, the corporate tax
rate is only 7.25%, significantly lower than neighboring states like New
Jersey, which is set at 11.5%.
At the same time, the city faces an affordability crisis, with many
families leaving the city due to the cost of living and growing income
inequality. Revenues generated from a corporate tax could contribute to
addressing the affordability crisis and strong public services for resi-
dents of the city.
This legislation would authorize New York City to increase tax rates for
unincorporated businesses with incomes greater than $5 million and
corporations, should the Mayor and City Council deem this necessary and
appropriate.
LEGISLATIVE HISTORY:
New bill.
FISCAL IMPLICATIONS:
To be determined,
EFFECTIVE DATE:
This act shall take effect immediately.
