S. 4171 2
TAXPAYER OR TAXPAYERS, AND SHARE ITS FURNISHINGS, FACILITIES AND ACCOM-
MODATIONS; PROVIDED THAT NO PERSON MAY BE A MEMBER OF MORE THAN ONE
HOUSEHOLD AT ONE TIME.
(C) "HOUSEHOLD GROSS INCOME" MEANS THE AGGREGATE ADJUSTED GROSS INCOME
OF ALL MEMBERS OF THE HOUSEHOLD FOR THE TAXABLE YEAR AS REPORTED FOR
FEDERAL INCOME TAX PURPOSES, OR WHICH WOULD BE REPORTED AS ADJUSTED
GROSS INCOME IF A FEDERAL INCOME TAX RETURN WERE REQUIRED TO BE FILED,
WITH THE MODIFICATIONS IN SUBSECTION (B) OF SECTION SIX HUNDRED TWELVE
OF THIS ARTICLE BUT WITHOUT THE MODIFICATIONS IN SUBSECTION (C) OF SUCH
SECTION, PLUS ANY PORTION OF THE GAIN FROM THE SALE OR EXCHANGE OF PROP-
ERTY OTHERWISE EXCLUDED FROM SUCH AMOUNT; EARNED INCOME FROM SOURCES
WITHOUT THE UNITED STATES EXCLUDABLE FROM FEDERAL GROSS INCOME BY
SECTION NINE HUNDRED ELEVEN OF THE INTERNAL REVENUE CODE; SUPPORT MONEY
NOT INCLUDED IN ADJUSTED GROSS INCOME; NONTAXABLE STRIKE BENEFITS;
SUPPLEMENTAL SECURITY INCOME PAYMENTS; THE GROSS AMOUNT OF ANY PENSION
OR ANNUITY BENEFITS TO THE EXTENT NOT INCLUDED IN SUCH ADJUSTED GROSS
INCOME (INCLUDING, BUT NOT LIMITED TO, RAILROAD RETIREMENT BENEFITS AND
ALL PAYMENTS RECEIVED UNDER THE FEDERAL SOCIAL SECURITY ACT AND VETER-
ANS' DISABILITY PENSIONS); NONTAXABLE INTEREST RECEIVED FROM THE STATE
OF NEW YORK, ITS AGENCIES, INSTRUMENTALITIES, PUBLIC CORPORATIONS, OR
POLITICAL SUBDIVISIONS (INCLUDING A PUBLIC CORPORATION CREATED PURSUANT
TO AGREEMENT OR COMPACT WITH ANOTHER STATE OR CANADA); WORKERS' COMPEN-
SATION; THE GROSS AMOUNT OF "LOSS-OF-TIME" INSURANCE; AND THE AMOUNT OF
CASH PUBLIC ASSISTANCE AND RELIEF, OTHER THAN MEDICAL ASSISTANCE FOR THE
NEEDY, PAID TO OR FOR THE BENEFIT OF THE QUALIFIED TAXPAYER OR MEMBERS
OF HIS OR HER HOUSEHOLD. HOUSEHOLD GROSS INCOME SHALL NOT INCLUDE
SURPLUS FOODS OR OTHER RELIEF IN KIND OR PAYMENTS MADE TO INDIVIDUALS
BECAUSE OF THEIR STATUS AS VICTIMS OF NAZI PERSECUTION AS DEFINED IN
PUBLIC LAW 103-286 OR ANY DISABILITY COMPENSATION RECEIVED BY VETERANS
ON ACCOUNT OF INJURY OR ILLNESS INCURRED OR AGGRAVATED DURING MILITARY
SERVICE IN THE WARS IN AFGHANISTAN AND IRAQ SINCE SEPTEMBER ELEVENTH,
TWO THOUSAND ONE. PROVIDED, FURTHER, HOUSEHOLD GROSS INCOME SHALL ONLY
INCLUDE ALL SUCH INCOME RECEIVED BY ALL MEMBERS OF THE HOUSEHOLD WHILE
MEMBERS OF SUCH HOUSEHOLD.
(D) "ADJUSTED RENT" MEANS RENT PAID FOR THE RIGHT OF OCCUPANCY OF A
RESIDENCE.
(E) "REAL PROPERTY TAX EQUIVALENT" MEANS FOR TAXABLE YEARS BEGINNING
IN TWO THOUSAND TWELVE AND THEREAFTER, TWENTY PERCENT OF THE ADJUSTED
RENT ACTUALLY PAID IN THE TAXABLE YEAR BY A HOUSEHOLD SOLELY FOR THE
RIGHT OF OCCUPANCY OF ITS NEW YORK RESIDENCE FOR THE TAXABLE YEAR. IF
(1) A RESIDENCE IS RENTED TO TWO OR MORE INDIVIDUALS AS COTENANTS, OR
SUCH INDIVIDUALS SHARE IN THE PAYMENT OF A SINGLE RENT FOR THE RIGHT OF
OCCUPANCY OF SUCH RESIDENCE, AND (2) EACH OF SUCH INDIVIDUALS IS A
MEMBER OF A DIFFERENT HOUSEHOLD, ONE OR MORE OF WHICH INDIVIDUALS SHARES
SUCH RESIDENCE, REAL PROPERTY TAX EQUIVALENT IS THAT PORTION OF TWENTY
PERCENT OF THE ADJUSTED RENT PAID IN THE TAXABLE YEAR WHICH REFLECTS
THAT PORTION OF THE RENT ATTRIBUTABLE TO THE QUALIFIED TAXPAYER AND THE
MEMBERS OF HIS OR HER HOUSEHOLD.
(F) "NET REAL PROPERTY TAX" MEANS THE REAL PROPERTY TAXES ASSESSED ON
THE RESIDENTIAL REAL PROPERTY OWNED AND OCCUPIED BY THE TAXPAYER OR
TAXPAYERS AFTER ANY EXEMPTION OR ABATEMENT RECEIVED PURSUANT TO THE REAL
PROPERTY TAX LAW.
(2) CREDIT. A QUALIFIED TAXPAYER FOR THE YEAR TWO THOUSAND TWELVE AND
THEREAFTER SHALL BE ALLOWED A CREDIT AGAINST THE TAXES IMPOSED BY THIS
ARTICLE EQUAL TO SEVENTY PERCENT, OF THE AMOUNT BY WHICH THE TAXPAYER'S
NET REAL PROPERTY TAX OR THE TAXPAYER'S REAL PROPERTY TAX EQUIVALENT
S. 4171 3
EXCEEDS THE TAXPAYER'S MAXIMUM REAL PROPERTY TAX, AS DETERMINED BY PARA-
GRAPH THREE OF THIS SUBSECTION. IF SUCH CREDIT EXCEEDS THE TAX FOR SUCH
TAXABLE YEAR, AS REDUCED BY THE OTHER CREDITS PERMITTED BY THIS ARTICLE,
THE QUALIFIED TAXPAYER MAY RECEIVE, AND THE COMPTROLLER, SUBJECT TO A
CERTIFICATE OF THE DEPARTMENT, SHALL PAY AS AN OVERPAYMENT, WITHOUT
INTEREST, ANY EXCESS BETWEEN SUCH TAX AS SO REDUCED AND THE AMOUNT OF
THE CREDIT. IF A QUALIFIED TAXPAYER IS NOT REQUIRED TO FILE A RETURN
PURSUANT TO SECTION SIX HUNDRED FIFTY-ONE OF THIS ARTICLE, A QUALIFIED
TAXPAYER MAY NEVERTHELESS RECEIVE AND THE COMPTROLLER, SUBJECT TO A
CERTIFICATE OF THE DEPARTMENT, SHALL PAY AS AN OVERPAYMENT THE FULL
AMOUNT OF THE CREDIT, WITHOUT INTEREST; PROVIDED, HOWEVER, THAT THERE
SHALL BE NO OBLIGATION OF THE COMPTROLLER TO PAY SUCH OVERPAYMENT UNTIL
THE REVENUE NECESSARY TO MAKE SUCH OVERPAYMENT IS IN THE ACCOUNT
PROVIDED FOR IN SECTION NINETY-NINE-T OF THE STATE FINANCE LAW.
(3) MAXIMUM REAL PROPERTY TAX. (A) A QUALIFIED TAXPAYER'S MAXIMUM REAL
PROPERTY TAX SHALL BE DETERMINED AS FOLLOWS:
FOR TAX YEARS BEGINNING IN TWO THOUSAND TWELVE AND THEREAFTER:
HOUSEHOLD GROSS INCOME MAXIMUM REAL PROPERTY TAX
ONE HUNDRED THOUSAND SIX PERCENT OF HOUSEHOLD GROSS
DOLLARS OR LESS INCOME
MORE THAN ONE HUNDRED THOUSAND SIX PERCENT OF ONE HUNDRED
DOLLARS, BUT LESS THAN OR EQUAL TO THOUSAND DOLLARS PLUS SEVEN
ONE HUNDRED FIFTY THOUSAND DOLLARS PERCENT OF HOUSEHOLD GROSS INCOME
ABOVE ONE HUNDRED THOUSAND DOLLARS
MORE THAN ONE HUNDRED FIFTY SIX PERCENT OF ONE HUNDRED THOUSAND
THOUSAND DOLLARS, BUT LESS THAN DOLLARS PLUS SEVEN
OR EQUAL TO TWO HUNDRED FIFTY PERCENT OF FIFTY THOUSAND DOLLARS
THOUSAND DOLLARS PLUS EIGHT AND ONE-HALF PERCENT OF
HOUSEHOLD GROSS INCOME ABOVE ONE
HUNDRED FIFTY THOUSAND DOLLARS
MORE THAN TWO HUNDRED FIFTY NO LIMITATION.
THOUSAND DOLLARS
(B) THE THRESHOLDS OF HOUSEHOLD GROSS INCOME ESTABLISHED BY SUBPARA-
GRAPH (A) OF THIS PARAGRAPH SHALL BE INDEXED FOR INFLATION FOR TAX YEARS
BEGINNING IN TWO THOUSAND FOURTEEN AND THEREAFTER.
(4) EXCLUSIONS FROM ELIGIBILITY. NO CREDIT SHALL BE GRANTED UNDER THIS
SUBSECTION IF THE QUALIFIED TAXPAYER CLAIMS THE REAL PROPERTY TAX
CIRCUIT BREAKER CREDIT, PURSUANT TO SUBSECTION (E) OF THIS SECTION,
DURING THE TAXABLE YEAR.
S 2. Paragraph 1 of subsection (a) of section 601 of the tax law is
renumbered paragraph 1-a and a new paragraph 1 is added to read as
follows:
(1) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND TWELVE AND BEFORE TWO
THOUSAND FOURTEEN:
IF THE NEW YORK TAXABLE INCOME IS: THE TAX IS:
NOT OVER $16,000 4% OF THE NEW YORK TAXABLE INCOME
OVER $16,000 BUT NOT OVER $22,000 $640 PLUS 4.5% OF EXCESS OVER
$16,000
OVER $22,000 BUT NOT OVER $26,000 $910 PLUS 5.25% OF EXCESS OVER
$22,000
OVER $26,000 BUT NOT OVER $40,000 $1,120 PLUS 5.9% OF EXCESS OVER
$26,000
OVER $40,000 BUT NOT OVER $1,000,000 $1,946 PLUS 6.85% OF EXCESS OVER
$40,000
OVER $1,000,000 $67,706 PLUS 8.97% OF EXCESS OVER
S. 4171 4
$1,000,000
S 3. Paragraph 1 of subsection (b) of section 601 of the tax law is
renumbered paragraph 1-a and a new paragraph 1 is added to read as
follows:
(1) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND TWELVE AND BEFORE TWO
THOUSAND FOURTEEN:
IF THE NEW YORK TAXABLE INCOME IS: THE TAX IS:
NOT OVER $11,000 4% OF THE NEW YORK TAXABLE INCOME
OVER $11,000 BUT NOT OVER $15,000 $440 PLUS 4.5% OF EXCESS OVER
$11,000
OVER $15,000 BUT NOT OVER $17,000 $620 PLUS 5.25% OF EXCESS OVER
$15,000
OVER $17,000 BUT NOT OVER $30,000 $725 PLUS 5.9% OF EXCESS OVER
$17,000
OVER $30,000 BUT NOT OVER $1,000,000 $1,492 PLUS 6.85% OF EXCESS OVER
$30,000
OVER $1,000,000 $67,937 PLUS 8.97% OF EXCESS OVER
$1,000,000
S 4. Paragraph 1 of subsection (c) of section 601 of the tax law is
renumbered paragraph 1-a and a new paragraph 1 is added to read as
follows:
(1) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND TWELVE AND BEFORE TWO
THOUSAND FOURTEEN:
IF THE NEW YORK TAXABLE INCOME IS: THE TAX IS:
NOT OVER $8,000 4% OF THE NEW YORK TAXABLE INCOME
OVER $8,000 BUT NOT OVER $11,000 $320 PLUS 4.5% OF EXCESS OVER
$8,000
OVER $11,000 BUT NOT OVER $13,000 $455 PLUS 5.25% OF EXCESS OVER
$11,000
OVER $13,000 BUT NOT OVER $20,000 $560 PLUS 5.9% OF EXCESS OVER
$13,000
OVER $20,000 BUT NOT OVER $1,000,000 $973 PLUS 6.85% OF EXCESS OVER
$20,000
OVER $1,000,000 $68,103 PLUS 8.97% OF EXCESS OVER
$1,000,000
S 5. Subparagraphs (B) and (C) of paragraph 2 of subsection (d) of
section 601 of the tax law, as amended by section 2 of part Z1 of chap-
ter 57 of the laws of 2009, are amended to read as follows:
(B) For taxable years beginning after two thousand two and before two
thousand six, the fraction is computed as follows: the numerator is the
lesser of fifty thousand dollars or the excess of New York adjusted
gross income for the taxable year over one hundred fifty thousand
dollars and the denominator is fifty thousand dollars. For taxable years
beginning after two thousand eight and before two thousand twelve, the
fraction is computed as follows: the numerator is the lesser of fifty
thousand dollars or the excess of New York adjusted gross income for the
taxable year over three hundred thousand dollars and the denominator is
fifty thousand dollars. FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND
ELEVEN AND BEFORE TWO THOUSAND FOURTEEN, THE FRACTION IS COMPUTED AS
FOLLOWS: THE NUMERATOR IS THE LESSER OF FIFTY THOUSAND DOLLARS OR THE
EXCESS OF NEW YORK ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR OVER ONE
MILLION DOLLARS AND THE DENOMINATOR IS FIFTY THOUSAND DOLLARS.
S. 4171 5
(C) This paragraph shall only apply to taxable years beginning after
two thousand two and before two thousand six and after two thousand
eight and before two thousand [twelve] FOURTEEN.
S 6. Subparagraphs (B) and (C) of paragraph 3 of subsection (d) of
section 601 of the tax law, as amended by section 3 of part Z1 of chap-
ter 57 of the laws of 2009, are amended to read as follows:
(B) For such taxpayers with adjusted gross income over five hundred
thousand dollars, for taxable years beginning after two thousand eight
and before two thousand twelve, the fraction is computed as follows: the
numerator is the lesser of fifty thousand dollars or the excess of New
York adjusted gross income for the taxable year over five hundred thou-
sand dollars and the denominator is fifty thousand dollars. FOR SUCH
TAXPAYERS WITH ADJUSTED GROSS INCOME OVER ONE MILLION DOLLARS, FOR TAXA-
BLE YEARS BEGINNING AFTER TWO THOUSAND ELEVEN AND BEFORE TWO THOUSAND
FOURTEEN, THE FRACTION IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE
LESSER OF FIFTY THOUSAND DOLLARS OR THE EXCESS OF NEW YORK ADJUSTED
GROSS INCOME FOR THE TAXABLE YEAR OVER ONE MILLION DOLLARS AND THE
DENOMINATOR IS FIFTY THOUSAND DOLLARS. Provided, however, that the total
tax prior to the application of any tax credits shall not exceed the
highest rate of tax set forth in the tax table in subsection (a) of this
section multiplied by the taxpayer's taxable income.
(C) This paragraph shall only apply to taxable years beginning after
two thousand two and before two thousand six and after two thousand
eight and before two thousand [twelve] FOURTEEN.
S 7. Notwithstanding any provision of law to the contrary, the method
of determining the amount to be deducted and withheld from wages on
account of taxes imposed by or pursuant to the authority of article 22
of the tax law in connection with the implementation of the provisions
of this act shall be prescribed by regulations of the commissioner of
taxation and finance with due consideration to the effect such withhold-
ing tables and methods would have on the receipt and amount of revenue.
The commissioner of taxation and finance shall adjust such withholding
tables and methods in regard to taxable years beginning in 2011 and
after in such manner as to result, so far as practicable, in withholding
from an employee's wages an amount substantially equivalent to the tax
reasonably estimated to be due for such taxable years as a result of the
provisions of this act. Provided, however, for tax year 2011 the with-
holding tables shall reflect as accurately as practicable the full
amount of tax year 2011 liability so that such amount is withheld by
December 31, 2011. Any such regulations to implement a change in with-
holding tables and methods for tax year 2011 shall be adopted and effec-
tive as soon as practicable and the commissioner of taxation and finance
may adopt such regulations on an emergency basis notwithstanding
anything to the contrary in section 202 of the state administrative
procedure act. In carrying out his or her duties and responsibilities
under this section, the commissioner of taxation and finance may accom-
pany such a rule making procedure with a similar procedure with respect
to the taxes required to be deducted and withheld by local laws imposing
taxes pursuant to the authority of articles 30, 30-A and 30-B of the tax
law, the provisions of any other law in relation to such a procedure to
the contrary notwithstanding.
S 8. 1. Notwithstanding any provision of law to the contrary, no addi-
tion to tax required shall be imposed for failure to pay the estimated
tax in subsection (c) of section 685 of the tax law with respect to any
underpayment of a required installment due prior to, or within thirty
days of, the effective date of this act to the extent that such under-
S. 4171 6
payment was created or increased by the amendments made by this act
provided, however, that the taxpayer remits the amount of the underpay-
ment with his or her next quarterly estimated tax payment.
2. The commissioner of taxation and finance shall take steps to publi-
cize the necessary adjustments to estimated tax and, to the extent
reasonably possible, to inform the taxpayer of the tax liability changes
made by this act.
S 9. The state finance law is amended by adding two new sections 99-t
and 99-u to read as follows:
S 99-T. REAL PROPERTY TAX CIRCUIT BREAKER ACCOUNT. 1. THERE IS HEREBY
ESTABLISHED IN THE JOINT CUSTODY OF THE STATE COMPTROLLER AND THE
COMMISSIONER OF TAXATION AND FINANCE AN ACCOUNT OF THE MISCELLANEOUS
SPECIAL REVENUE FUND TO BE KNOWN AS THE REAL PROPERTY TAX CIRCUIT BREAK-
ER ACCOUNT.
2. NOTWITHSTANDING ANY OTHER LAW, RULE OR REGULATION TO THE CONTRARY,
THE STATE COMPTROLLER IS HEREBY AUTHORIZED AND DIRECTED TO RECEIVE, ON
AND AFTER JANUARY FIRST, TWO THOUSAND TWELVE, FOR DEPOSIT TO THE CREDIT
OF THE REAL PROPERTY TAX CIRCUIT BREAKER ACCOUNT IN THE DEPARTMENT OF
TAXATION AND FINANCE, TO BE UTILIZED TO PAY ALL COSTS ASSOCIATED WITH
THE CREDIT ESTABLISHED BY SUBSECTION (SS) OF SECTION SIX HUNDRED SIX OF
THE TAX LAW, THAT PORTION OF PERSONAL INCOME TAX RECEIPTS WHICH RESULT
FROM THE TEMPORARY SURCHARGE ON TAXPAYERS WITH A NEW YORK STATE TAXABLE
INCOME IN EXCESS OF ONE MILLION DOLLARS WHICH ARE RECEIVED AFTER THE
COMMENCEMENT OF THE TWO THOUSAND TWELVE--TWO THOUSAND THIRTEEN STATE
FISCAL YEAR. SUCH SURCHARGE SHALL BE DEFINED AS THE DIFFERENCE WHICH
WOULD BE GENERATED BY TAXABLE INCOME OVER ONE MILLION DOLLARS WHEN THE
TAX RATE IS 8.97% AS COMPARED TO THE AMOUNT SUCH TAXABLE REVENUE WOULD
OTHERWISE GENERATE, AT THE RATE PROVIDED FOR BY LAW, EFFECTIVE JANUARY
FIRST, TWO THOUSAND FOURTEEN. SUCH FUNDS SHALL BE EXPENDED FOR THE
PURPOSE OF FUNDING A REAL PROPERTY TAX CIRCUIT BREAKER CREDIT, TO
PROVIDE A STATE FINANCED OFFSET TO SUCH RESIDENTIAL PROPERTY TAXES. IF
THE DIRECTOR OF THE DIVISION OF THE BUDGET CERTIFIES THAT THE RECEIPTS
WHICH RESULT FROM THE TEMPORARY SURCHARGE AS SET FORTH IN THIS SECTION
SHALL EXCEED THE AMOUNT NECESSARY FOR THE STATE TO MEET THE OBLIGATIONS
PROVIDED FOR UNDER SUBSECTION (SS) OF SECTION SIX HUNDRED SIX OF THE TAX
LAW, SUCH EXCESS AMOUNT AS DETERMINED BY THE DIRECTOR OF THE BUDGET, AND
AS OTHERWISE CERTIFIED TO BE AVAILABLE BY THE STATE COMPTROLLER, SHALL
BE ALLOCATED TO THE PUBLIC SCHOOLS OF THE STATE IN THE FORMULA UTILIZED
BY THE LEGISLATURE TO ESTABLISH THE TOTAL FOUNDATION BASE AID, AS
DEFINED BY SECTION THIRTY-SIX HUNDRED TWO OF THE EDUCATION LAW.
S 99-U. EDUCATION FINANCING ACCOUNT. 1. THERE IS HEREBY ESTABLISHED IN
THE JOINT CUSTODY OF THE STATE COMPTROLLER AND THE COMMISSIONER OF TAXA-
TION AND FINANCE AN ACCOUNT OF THE MISCELLANEOUS SPECIAL REVENUE FUND TO
BE KNOWN AS THE EDUCATION FINANCING ACCOUNT.
2. NOTWITHSTANDING ANY OTHER LAW, RULE OR REGULATION TO THE CONTRARY,
THE STATE COMPTROLLER IS HEREBY AUTHORIZED AND DIRECTED TO RECEIVE, ON
AND AFTER JANUARY FIRST, TWO THOUSAND TWELVE, FOR DEPOSIT TO THE CREDIT
OF THE EDUCATION FINANCING ACCOUNT IN THE STATE EDUCATION DEPARTMENT ANY
AMOUNT OF TAX RECEIPTS FROM THE REAL PROPERTY TAX CIRCUIT BREAKER
ACCOUNT UNDER SECTION NINETY-NINE-T OF THIS ARTICLE WHICH ARE DETERMINED
BY THE DIRECTOR OF THE BUDGET TO BE IN EXCESS OF THE AMOUNTS NECESSARY
FOR THE STATE TO MEET THE OBLIGATIONS PROVIDED FOR UNDER SUBSECTION (SS)
OF SECTION SIX HUNDRED SIX OF THE TAX LAW, AS SET FORTH IN SUBDIVISION
TWO OF SECTION NINETY-NINE-T OF THIS ARTICLE.
S 10. This act shall take effect immediately.