NY State Senate Bill 2023-S1591

Senate Bill S1591

2023-2024 Legislative Session

Authorizes a childhood education surcharge on the personal income tax for cities having a population of one million or more persons

download bill text pdf

Current Bill Status - In Senate Committee Investigations And Government Operations Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to investigations and government operations
Jan 12, 2023	referred to investigations and government operations

2023-S1591 (ACTIVE) - Details

Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Add §1304-E, Tax L
Versions Introduced in Other Legislative Sessions:: 2013-2014: S6471
2015-2016: S2223
2017-2018: S3799
2019-2020: S2581
2021-2022: S3394

2023-S1591 (ACTIVE) - Summary

Authorizes a childhood education surcharge on the personal income tax for cities having a population of one million or more persons.

2023-S1591 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S1591

SPONSOR: BAILEY
 
TITLE OF BILL:

An act to amend the tax law, in relation to authorizing a childhood
education surcharge on the personal income tax for cities having a popu-
lation of one million or more persons; and providing for the repeal of
such provisions upon expiration thereof

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill authorizes a city of one million or more to adopt local laws
providing for a city income tax surcharge for taxpayers making $500,000
or more for aid to early childhood education and after school programs.
This tax will sunset after 5 years.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1. This section amends the tax law by adding a new section,
1304-E. Subsection (a). This subsection empowers any city of one million
or more imposing a tax surcharge for early childhood education programs

to adopt and amend a tax surcharge for taxpayers making $500,000 or more
on the city taxable income of every city resident individual, estate,
-and trust for all taxable years after 2018. This tax will sunset after
5 years.

Subsection (1). This subsection sets the rate up to 4.3- a 0.424
percentage point increase of the tax upon which the surcharge is based.
Subsection (b). This subsection provides that any city imposing a tax
surcharge in accordance with this article may by local law impose such
surcharge at a lower rate than the percentages set forth in subsection
(1). The city may also impose the city income tax surcharge at more than
one rate depending upon the filing status and city taxable income of a
city resident.

Subsection (c). This subsection states that the city income tax
surcharge imposed by this article shall be administered, collected, and
distributed in the same manner as other taxes imposed pursuant to this
article. However, the provisions of section 1313 of this article which
directs payment of taxes to the New York City transitional finance
authority shall riot apply to the city income tax surcharge.

Subsection (d). This subsection states that the total revenue, including
interest and penalties from the city income tax surcharge, which the
state comptroller is required to pay to the chief fiscal officer of the
city imposing such surcharge shall be for payment into the city treasury
shall be credited to the general fund of such city and applied exclu-
sively to or in aid or in support of the early childhood education
programs of the city.

Subsection (e). This subsection states that the local law must he
enacted on or before December 31, 2017 in order to be applicable. A
certified copy of the local law shall be sent by registered mail to the
department's Albany office within 15 days of enactment.  Additional time
for a copy of the local law to be sent shall be allotted by the depart-
ment if deemed consistent with its duties under this article.

 
JUSTIFICATION:
The City's remarkable turnaround in crime-fighting in the mid-to-late
1990s was funded, in part, by a temporary surcharge in the personal
income tax. The surcharge ended in 1998. A similar surcharge is now
necessary to fund a turnaround in our City's early childhood education
programs.

 
PRIOR LEGISLATIVE HISTORY:

2017-18:S.3799- Referred to Investigations and Gov.Operations

2019-20:S.2581- Referred to Investigations and Gov.Operations

2021-22:S.3394- Referred to investigations and Gov.Operations

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2023-S1591 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1591
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 12, 2023
                                ___________
 
 Introduced  by  Sen.  BAILEY -- read twice and ordered printed, and when
   printed to be committed to the Committee on Investigations and Govern-
   ment Operations
 
 AN ACT to amend the tax law, in  relation  to  authorizing  a  childhood
   education  surcharge  on  the  personal income tax for cities having a
   population of one million or  more  persons;  and  providing  for  the
   repeal of such provisions upon expiration thereof
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The tax law is amended by adding a new  section  1304-E  to
 read as follows:
   § 1304-E. TAX SURCHARGE FOR EARLY CHILDHOOD EDUCATION. (A) IN ADDITION
 TO  THE  TAXES  AUTHORIZED BY SUBSECTION (A) OF SECTION THIRTEEN HUNDRED
 ONE OF THIS ARTICLE, ANY CITY HAVING A POPULATION OF ONE MILLION OR MORE
 PERSONS THAT IMPOSES SUCH TAXES IS HEREBY AUTHORIZED  AND  EMPOWERED  TO
 ADOPT  AND  AMEND  LOCAL  LAWS IMPOSING IN ANY SUCH CITY FOR ALL TAXABLE
 YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND  TWENTY-FOUR,  A
 TAX  SURCHARGE ON THE CITY TAXABLE INCOME OF EVERY CITY RESIDENT MARRIED
 INDIVIDUALS FILING JOINT RETURNS, RESIDENT  MARRIED  INDIVIDUALS  FILING
 SEPARATE  RETURNS,  RESIDENT SURVIVING SPOUSES, RESIDENT HEADS OF HOUSE-
 HOLDS, RESIDENT UNMARRIED INDIVIDUALS, AND RESIDENT ESTATES AND  TRUSTS,
 AT A RATE OF UP TO:
 IF THE CITY TAXABLE INCOME IS:          THE TAX SURCHARGE IS:
 
 NOT OVER $500,000                       0
 OVER $500,000                           4.3 % OF CITY TAXABLE INCOME
   (B)  A CITY IMPOSING A TAX SURCHARGE PURSUANT TO THE AUTHORITY OF THIS
 SECTION MAY, BY LOCAL LAW, IMPOSE SUCH SURCHARGE AT A RATE THAT IS  LESS
 THAN  THE  PERCENTAGES  SET FORTH IN SUBSECTION (A) OF THIS SECTION, AND
 MAY IMPOSE SUCH TAX AT MORE THAN ONE  RATE  DEPENDING  UPON  THE  FILING
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04519-01-3
 S. 1591                             2

 
 STATUS AND CITY TAXABLE INCOME OF SUCH CITY RESIDENT INDIVIDUAL, ESTATE,
 OR TRUST.
   (C)  A TAX SURCHARGE IMPOSED PURSUANT TO THE AUTHORITY OF THIS SECTION
 SHALL BE ADMINISTERED, COLLECTED, AND DISTRIBUTED BY THE COMMISSIONER IN
 THE SAME MANNER AS THE OTHER TAXES IMPOSED PURSUANT TO THE AUTHORITY  OF
 THIS  ARTICLE,  AND  ALL  OF  THE  PROVISIONS OF THIS ARTICLE, INCLUDING
 SECTION THIRTEEN HUNDRED TEN OF THIS ARTICLE, SHALL  APPLY  TO  THE  TAX
 SURCHARGE  AUTHORIZED  BY  THIS  SECTION;  PROVIDED,  HOWEVER,  THAT THE
 PROVISIONS OF SECTION THIRTEEN HUNDRED THIRTEEN OF THIS ARTICLE  DIRECT-
 ING PAYMENT OF TAXES TO THE NEW YORK CITY TRANSITIONAL FINANCE AUTHORITY
 SHALL NOT APPLY TO ANY SUCH SURCHARGE.
   (D)  NOTWITHSTANDING ANY PROVISION OF THIS SECTION OR OF SECTION THIR-
 TEEN HUNDRED THIRTEEN OF THIS ARTICLE TO THE CONTRARY, THE TOTAL REVENUE
 FROM THE TAX  SURCHARGE  IMPOSED  PURSUANT  TO  THE  AUTHORITY  OF  THIS
 SECTION,  INCLUDING  INTEREST AND PENALTIES, WHICH THE STATE COMPTROLLER
 IS REQUIRED TO PAY TO THE CHIEF FISCAL OFFICER OF THE CITY IMPOSING  THE
 TAX  SURCHARGE FOR PAYMENT INTO THE TREASURY OF SUCH CITY SHALL BE CRED-
 ITED TO THE GENERAL FUND OF SUCH CITY AND SHALL BE  APPLIED  EXCLUSIVELY
 TO  OR  IN  AID  OR SUPPORT OF THE EARLY CHILDHOOD EDUCATION PROGRAMS OF
 SUCH CITY.
   (E) A LOCAL LAW ENACTED PURSUANT TO THIS SECTION SHALL  BE  APPLICABLE
 ONLY  IF  IT  HAS  BEEN  ENACTED ON OR BEFORE DECEMBER THIRTY-FIRST, TWO
 THOUSAND TWENTY-THREE.   A CERTIFIED COPY OF SUCH  LOCAL  LAW  SHALL  BE
 MAILED  BY  REGISTERED  MAIL  TO  THE DEPARTMENT AT ITS OFFICE IN ALBANY
 WITHIN FIFTEEN DAYS OF ITS ENACTMENT. HOWEVER, THE DEPARTMENT MAY  ALLOW
 ADDITIONAL  TIME  FOR  SUCH CERTIFIED COPY TO BE MAILED IF IT DEEMS SUCH
 ACTION TO BE CONSISTENT WITH ITS DUTIES UNDER THIS ARTICLE.
   § 2. This act shall take effect immediately and shall apply to all tax
 years commencing on and after January 1, 2024; provided,  however,  that
 the  provisions of this act shall expire and be deemed repealed December
 31, 2028.

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