S T A T E O F N E W Y O R K
________________________________________________________________________
10450
I N A S S E M B L Y
May 18, 2020
___________
Introduced by COMMITTEE ON RULES -- (at request of M. of A. Glick) --
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:
Section 1. Clauses (iii) and (iv) of subparagraph (B) of paragraph 1
of subsection (a) of section 601 of the tax law, as amended by section 1
of part P of chapter 59 of the laws of 2019, are amended to read as
follows:
(iii) For taxable years beginning in two thousand twenty the following
rates shall apply:
If the New York taxable income is: The tax is:
Not over $17,150 4% of the New York taxable income
Over $17,150 but not over $23,600 $686 plus 4.5% of excess over
$17,150
Over $23,600 but not over $27,900 $976 plus 5.25% of excess over
$23,600
Over $27,900 but not over $43,000 $1,202 plus 5.9% of excess over
$27,900
Over $43,000 but not over $161,550 $2,093 plus 6.09% of excess over
$43,000
Over $161,550 but not over $323,200 $9,313 plus 6.41% of excess over
$161,550
Over $323,200 but not over $19,674 plus 6.85% of excess
$2,155,350 $323,200 over
Over $2,155,350 BUT NOT OVER $145,177 plus 8.82% of excess over
$5,000,000 $2,155,350
OVER $5,000,000 $396,076 PLUS 10.9% OF EXCESS OVER
$5,000,000
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD16290-05-0
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(iv) For taxable years beginning in two thousand twenty-one the
following rates shall apply:
If the New York taxable income is: The tax is:
Not over $17,150 4% of the New York taxable income
Over $17,150 but not over $23,600 $686 plus 4.5% of excess over
$17,150
Over $23,600 but not over $27,900 $976 plus 5.25% of excess over
$23,600
Over $27,900 but not over $43,000 $1,202 plus 5.9% of excess over
$27,900
Over $43,000 but not over $161,550 $2,093 plus 5.97% of excess over
$43,000
Over $161,550 but not over $323,200 $9,170 plus 6.33% of excess over
$161,550
Over $323,200 but not over $19,403 plus 6.85% of excess
$2,155,350 over $323,200
Over $2,155,350 BUT NOT OVER $144,905 plus 8.82% of excess over
$5,000,000 $2,155,350
OVER $5,000,000 $395,803 PLUS 10.9% OF EXCESS OVER
$5,000,000
§ 2. Clauses (iii) and (iv) of subparagraph (B) of paragraph 1 of
subsection (b) of section 601 of the tax law, as amended by section 2 of
part P of chapter 59 of the laws of 2019, are amended to read as
follows:
(iii) For taxable years beginning in two thousand twenty the following
rates shall apply:
If the New York taxable income is: The tax is:
Not over $12,800 4% of the New York taxable income
Over $12,800 but not over $17,650 $512 plus 4.5% of excess over $12,800
Over $17,650 but not over $20,900 $730 plus 5.25% of excess over
$17,650
Over $20,900 but not over $32,200 $901 plus 5.9% of excess over $20,900
Over $32,200 but not over $107,650 $1,568 plus 6.09% of excess over
$32,200
Over $107,650 but not over $269,300 $6,162 plus 6.41% of excess over
$107,650
Over $269,300 but not over $16,524 plus 6.85% of
$1,616,450 excess over $269,300
Over $1,616,450 BUT NOT OVER $108,804 plus 8.82% of excess over
$5,000,000 $1,616,450
OVER $5,000,000 $407,233 PLUS 10.9% OF EXCESS OVER
$5,000,000
(iv) For taxable years beginning in two thousand twenty-one the
following rates shall apply:
If the New York taxable income is: The tax is:
Not over $12,800 4% of the New York taxable income
Over $12,800 but not over $17,650 $512 plus 4.5% of excess over
$12,800
Over $17,650 but not over $20,900 $730 plus 5.25% of excess over
$17,650
Over $20,900 but not over $32,200 $901 plus 5.9% of excess over
$20,900
Over $32,200 but not over $107,650 $1,568 plus 5.97% of excess over
$32,200
Over $107,650 but not over $269,300 $6,072 plus 6.33% of excess over
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$107,650
Over $269,300 but not over $16,304 plus 6.85% of
$1,616,450 excess over $269,300
Over $1,616,450 BUT NOT OVER $108,584 plus 8.82% of excess over
$5,000,000 $1,616,450
OVER $5,000,000 $407,013 PLUS 10.9% OF EXCESS OVER
$5,000,000
§ 3. Clauses (iii) and (iv) of subparagraph (B) of paragraph 1 of
subsection (c) of section 601 of the tax law, as amended by section 3 of
part P of chapter 59 of the laws of 2019, are amended to read as
follows:
(iii) For taxable years beginning in two thousand twenty the following
rates shall apply:
If the New York taxable income is: The tax is:
Not over $8,500 4% of the New York taxable income
Over $8,500 but not over $11,700 $340 plus 4.5% of excess over
$8,500
Over $11,700 but not over $13,900 $484 plus 5.25% of excess over
$11,700
Over $13,900 but not over $21,400 $600 plus 5.9% of excess over
$13,900
Over $21,400 but not over $80,650 $1,042 plus 6.09% of excess over
$21,400
Over $80,650 but not over $215,400 $4,650 plus 6.41% of excess over
$80,650
Over $215,400 but not over $13,288 plus 6.85% of excess
$1,077,550 over $215,400
Over $1,077,550 BUT NOT OVER $72,345 plus 8.82% of excess over
$5,000,000 $1,077,550
OVER $5,000,000 $418,305 PLUS 10.9% OF EXCESS OVER
$5,000,000
(iv) For taxable years beginning in two thousand twenty-one the
following rates shall apply:
If the New York taxable income is: The tax is:
Not over $8,500 4% of the New York taxable income
Over $8,500 but not over $11,700 $340 plus 4.5% of excess over
$8,500
Over $11,700 but not over $13,900 $484 plus 5.25% of excess over
$11,700
Over $13,900 but not over $21,400 $600 plus 5.9% of excess over
$13,900
Over $21,400 but not over $80,650 $1,042 plus 5.97% of excess over
$21,400
Over $80,650 but not over $215,400 $4,579 plus 6.33% of excess over
$80,650
Over $215,400 but not over $13,109 plus 6.85% of excess
$1,077,550 over $215,400
Over $1,077,550 BUT NOT OVER $72,166 plus 8.82% of excess over
$5,000,000 $1,077,550
OVER $5,000,000 $418,126 PLUS 10.9% OF EXCESS OVER
$5,000,000
§ 4. Section 171-a of the tax law is amended by adding a new subdivi-
sion 3 to read as follows:
3. NOTWITHSTANDING SUBDIVISION ONE OF THIS SECTION OR ANY OTHER
PROVISION OF LAW TO THE CONTRARY, EIGHTY-FIVE PERCENT OF ANY REVENUE
DERIVED FROM AN INCREASE IN THE TAXES IMPOSED ON INCOME OVER FIVE
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MILLION DOLLARS PURSUANT TO SECTION SIX HUNDRED ONE OF THIS CHAPTER
ATTRIBUTABLE TO THE DIFFERENCE IN THE RATE OF SUCH TAXES FOR TAXABLE
YEAR TWO THOUSAND TWENTY AND THE RATE OF SUCH TAXES FOR TAXABLE YEAR TWO
THOUSAND NINETEEN AND THE DIFFERENCE IN THE RATE OF SUCH TAXES FOR TAXA-
BLE YEAR TWO THOUSAND TWENTY-ONE AND THE RATE OF SUCH TAXES FOR TAXABLE
YEAR TWO THOUSAND NINETEEN SHALL BE DEPOSITED IN THE STATE LOTTERY FUND,
CREATED PURSUANT TO SECTION NINETY-TWO-C OF THE STATE FINANCE LAW, AS
SUCH TAXES ARE RECEIVED. THE REMAINING FIFTEEN PERCENT OF SUCH DERIVED
REVENUE SHALL BE DEPOSITED IN THE SUPPLEMENTAL PUBLIC HIGHER EDUCATION
FUND, CREATED PURSUANT TO SECTION SEVENTY-EIGHT-C OF THE STATE FINANCE
LAW. THE AMOUNT FOR ADMINISTRATIVE COSTS SHALL BE DETERMINED BY THE
COMMISSIONER TO REPRESENT REASONABLE COSTS OF THE DEPARTMENT IN ADMINIS-
TERING, COLLECTING, DETERMINING AND DISTRIBUTING SUCH TAXES. OF THE
TOTAL REVENUE COLLECTED OR RECEIVED UNDER SUCH SECTIONS OF THIS CHAPTER,
THE COMPTROLLER SHALL RETAIN IN HIS OR HER HANDS SUCH AMOUNT AS THE
COMMISSIONER MAY DETERMINE TO BE NECESSARY FOR REFUNDS OR REIMBURSEMENTS
UNDER SUCH SECTIONS OF THIS CHAPTER OUT OF WHICH AMOUNT THE COMPTROLLER
SHALL PAY ANY REFUNDS OR REIMBURSEMENTS TO WHICH TAXPAYERS SHALL BE
ENTITLED UNDER PROVISIONS OF SUCH SECTIONS. THE COMMISSIONER AND THE
COMPTROLLER SHALL MAINTAIN A SYSTEM OF ACCOUNTS SHOWING THE AMOUNT OF
REVENUE COLLECTED OR RECEIVED FROM EACH OF THE TAXES IMPOSED BY SUCH
SECTIONS.
§ 5. Section 601 of the tax law is amended by adding a new subsection
(d-2) to read as follows:
(D-2) ALTERNATIVE TAX TABLE BENEFIT RECAPTURE. FOR TAXABLE YEARS TWO
THOUSAND TWENTY AND TWO THOUSAND TWENTY-ONE FOR A TAXPAYER WHOSE NEW
YORK TAXABLE INCOME IS OVER $5,000,000, THERE IS HEREBY IMPOSED A
SUPPLEMENTAL TAX IN ADDITION TO THE TAX IMPOSED UNDER SUBSECTIONS (A),
(B), (C) AND (D-1) OF THIS SECTION FOR THE PURPOSE OF RECAPTURING THE
BENEFIT OF THE TAX TABLES CONTAINED IN SUCH SUBSECTIONS. DURING THESE
TAXABLE YEARS, ANY REFERENCE IN THIS CHAPTER TO SUBSECTION (D) OF THIS
SECTION SHALL BE READ AS A REFERENCE TO THIS SUBSECTION.
(1) FOR RESIDENT MARRIED INDIVIDUALS FILING JOINT RETURNS AND RESIDENT
SURVIVING SPOUSES, THE SUPPLEMENTAL TAX SHALL BE AN AMOUNT EQUAL TO THE
SUM OF THE TAX TABLE BENEFIT IN SUBPARAGRAPH (A) OF THIS PARAGRAPH
MULTIPLIED BY THE RESPECTIVE FRACTION IN SUCH SUBPARAGRAPH.
(A) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF
TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION
(A) OF THIS SECTION NOT SUBJECT TO THE 10.9 PERCENT RATE OF TAX FOR THE
TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX
FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE APPLICABLE
TO THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (A) OF THIS SECTION
LESS THE SUM OF THE TAX TABLE BENEFITS IN SUBPARAGRAPHS (A), (B) AND (C)
OF PARAGRAPH ONE OF SUBSECTION (D-1) OF THIS SECTION. THE FRACTION FOR
THIS SUBPARAGRAPH 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 MILLION DOLLARS AND THE DENOMINATOR IS
FIFTY THOUSAND DOLLARS. PROVIDED, HOWEVER, THIS SUBPARAGRAPH SHALL NOT
APPLY TO TAXPAYERS WHO ARE NOT SUBJECT TO THE 10.9 PERCENT TAX RATE.
(B) PROVIDED, HOWEVER, THE TOTAL TAX PRIOR TO THE APPLICATION OF ANY
TAX CREDITS SHALL NOT EXCEED THE HIGHEST RATE OF TAX SET FORTH IN THE
TAX TABLES IN SUBSECTION (A) OF THIS SECTION MULTIPLIED BY THE TAXPAY-
ER'S TAXABLE INCOME.
(2) FOR RESIDENT HEADS OF HOUSEHOLDS, THE SUPPLEMENTAL TAX SHALL BE AN
AMOUNT EQUAL TO THE SUM OF THE TAX TABLE BENEFIT DESCRIBED IN SUBPARA-
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GRAPH (A) OF THIS PARAGRAPH MULTIPLIED BY THE RESPECTIVE FRACTION IN
SUCH SUBPARAGRAPH.
(A) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF
TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION
(B) OF THIS SECTION NOT SUBJECT TO THE 10.9 PERCENT RATE OF TAX FOR THE
TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX
FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE APPLICABLE
TO THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (B) OF THIS SECTION
LESS THE SUM OF THE TAX TABLE BENEFITS IN SUBPARAGRAPHS (A) AND (B) OF
PARAGRAPH TWO OF SUBSECTION (D-1) OF THIS SECTION. THE FRACTION FOR THIS
SUBPARAGRAPH 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 MILLION DOLLARS AND THE DENOMINATOR IS
FIFTY THOUSAND DOLLARS. PROVIDED, HOWEVER, THIS SUBPARAGRAPH SHALL NOT
APPLY TO TAXPAYERS WHO ARE NOT SUBJECT TO THE 10.9 PERCENT TAX RATE.
(B) PROVIDED, HOWEVER, THE TOTAL TAX PRIOR TO THE APPLICATION OF ANY
TAX CREDITS SHALL NOT EXCEED THE HIGHEST RATE OF TAX SET FORTH IN THE
TAX TABLES IN SUBSECTION (B) OF THIS SECTION MULTIPLIED BY THE TAXPAY-
ER'S TAXABLE INCOME.
(3) FOR RESIDENT UNMARRIED INDIVIDUALS, RESIDENT MARRIED INDIVIDUALS
FILING SEPARATE RETURNS AND RESIDENT ESTATES AND TRUSTS, THE SUPPLE-
MENTAL TAX SHALL BE AN AMOUNT EQUAL TO THE SUM OF THE TAX TABLE BENEFITS
DESCRIBED IN SUBPARAGRAPH (A) OF THIS PARAGRAPH MULTIPLIED BY THE
RESPECTIVE FRACTIONS IN SUCH SUBPARAGRAPH.
(A) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF
TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION
(C) OF THIS SECTION NOT SUBJECT TO THE 10.9 PERCENT RATE OF TAX FOR THE
TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX
FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE APPLICABLE
TO THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (C) OF THIS SECTION
LESS THE SUM OF THE TAX TABLE BENEFITS IN SUBPARAGRAPHS (A) AND (B) OF
PARAGRAPH THREE OF SUBSECTION (D-1) OF THIS SECTION. THE FRACTION FOR
THIS SUBPARAGRAPH 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 MILLION DOLLARS AND THE DENOMINATOR IS
FIFTY THOUSAND DOLLARS. PROVIDED, HOWEVER, THIS SUBPARAGRAPH SHALL NOT
APPLY TO TAXPAYERS WHO ARE NOT SUBJECT TO THE 10.9 PERCENT TAX RATE.
(B) PROVIDED, HOWEVER, THE TOTAL TAX PRIOR TO THE APPLICATION OF ANY
TAX CREDITS SHALL NOT EXCEED THE HIGHEST RATE OF TAX SET FORTH IN THE
TAX TABLES IN SUBSECTION (C) OF THIS SECTION MULTIPLIED BY THE TAXPAY-
ER'S TAXABLE INCOME.
§ 6. Section 92-c of the state finance law is amended by adding a new
subdivision 3-a to read as follows:
3-A. MONEYS IN SUCH FUND DEPOSITED PURSUANT TO THE PROVISIONS OF
SUBDIVISION THREE OF SECTION ONE HUNDRED SEVENTY-ONE-A OF THE TAX LAW
SHALL BE APPROPRIATED OR TRANSFERRED ONLY FOR THE GENERAL SUPPORT OF
PUBLIC SCHOOLS.
§ 7. The state finance law is amended by adding a new section 78-c to
read as follows:
§ 78-C. SUPPLEMENTAL PUBLIC HIGHER EDUCATION FUND. 1. THERE IS HEREBY
ESTABLISHED IN THE JOINT CUSTODY OF THE STATE COMPTROLLER AND THE
COMMISSIONER OF TAXATION AND FINANCE A FUND TO BE KNOWN AS THE "SUPPLE-
MENTAL PUBLIC HIGHER EDUCATION FUND".
2. SUCH FUND SHALL CONSIST OF THE REVENUES RECEIVED BY THE DEPARTMENT
OF TAXATION AND FINANCE, PURSUANT TO THE PROVISIONS OF SUBDIVISION THREE
OF SECTION ONE HUNDRED SEVENTY-ONE-A OF THE TAX LAW, AND ALL OTHER
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MONEYS APPROPRIATED, CREDITED, OR TRANSFERRED THERETO FROM ANY OTHER
FUND OR SOURCE PURSUANT TO LAW. NOTHING IN THIS SECTION SHALL PREVENT
THE STATE FROM SOLICITING AND RECEIVING GRANTS, GIFTS OR BEQUESTS FOR
THE PURPOSES OF THE FUND AS DEFINED IN THIS SECTION AND DEPOSITING THEM
INTO THE FUND ACCORDING TO LAW.
3. MONEYS OF THE FUND SHALL BE DISTRIBUTED EQUALLY TO THE STATE
UNIVERSITY OF NEW YORK AND THE CITY UNIVERSITY OF NEW YORK FOR ADDI-
TIONAL OPERATING SUPPORT, AS APPROPRIATED BY THE LEGISLATURE.
§ 8. Notwithstanding any law, rule or regulation to the contrary, any
moneys collected pursuant to subdivision 3 of section 171-a of the tax
law and appropriated for the general support of public schools shall not
diminish the amount of school aid appropriated for any given school
year. Such collected moneys shall be additional funding. For the
purposes of this section, "amount of school aid" shall mean the amount
appropriated pursuant to the state budget for the previous school year.
§ 9. Notwithstanding any law, rule or regulation to the contrary, any
moneys collected pursuant to subdivision 3 of section 171-a of the tax
law and appropriated for additional operating support of the state
university of New York and the city university of New York shall not
diminish the amount of operating support for the state university of New
York and the city university of New York appropriated for any given
academic year. Such collected moneys shall be additional funding. For
the purposes of this section, "operating support" shall mean the amount
appropriated pursuant to the state budget for the previous academic
year.
§ 10. This act shall take effect immediately and shall be deemed to
have been in full force and effect on and after January 1, 2020 and
shall apply to taxable years on and after such date.