NY State Senate Bill 2023-S5088

Senate Bill S5088

2023-2024 Legislative Session

Provides that taxpayers in the city of New York with certain lower income levels shall not be subject to city personal income taxation

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
Feb 22, 2023	referred to investigations and government operations

2023-S5088 (ACTIVE) - Details

Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §§1304, 1304-B & 1304-D, Tax L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S615
2019-2020: S851
2021-2022: S1205, S8119

2023-S5088 (ACTIVE) - Summary

Provides that taxpayers in the city of New York with certain lower income levels shall not be subject to city personal income taxation.

2023-S5088 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S5088

SPONSOR: CLEARE
 
TITLE OF BILL:

An act to amend the tax law, in relation to making certain taxpayers
exempt from the city personal income tax of the city of New York

 
PURPOSE:

Provides that taxpayers in the city of New York with annual incomes not
more than $45,000 shall not be subject to city personal income taxation

 
SUMMARY OF PROVISIONS:

Section one amends paragraphs 1, 2 and 3 of subsection (b) of section
1304 of the tax law, as amended by chapter 338 of the laws of 2014 to
provide a tax rate of 0% on city taxable income levels of $45,000 or
less beginning in tax year 2017.

Section two amends paragraph 1 of subsection (a) of section 1304-B of
the tax law, as amended by chapter 338 of the laws of 2014 to provide,

further, that taxable income with a tax rate of zero percent shall not
be subject to any additional rate of taxation imposed by the city of New
York.

Section three amends subparagraph (A) of paragraph 1, subparagraph (A)
of paragraph 2 and subparagraph (A) of paragraph 3 of subsection (a) of
section 1304-D of the tax law, as added by section 1 of part B of chap-
ter 63 of the laws of 2003 to provide a tax rate of 0% on city taxable
income levels of $45,000 or less.

Section four is the effective date.

 
EXISTING LAW:

 
JUSTIFICATION:

New York is one of the most expensive places to live in the world.
However approximately 48.5% of New Yorkers earn less than $50,000 per
year. When combined with the high cost of living, many working class New
Yorkers have a hard time making ends meet and/affording basic necessi-
ties.

While New York State took an important step toward improving workers'
economic security through raising the hourly minimum wage to $15.00 by
2018, New York City minimum wage workers still face difficult economic
burdens. In 1966, New York City began collecting a Personal Income Tax
(PIT), which hits city residents on top of New York State and federal
income taxes.

So while the fight for $15 and property tax measures provided some
relief to middle and working-class families, the PIT continues to under-
mine these economic gains.

In order to truly allow low-and middle-income workers to benefit from
the minimum wage increase passed via the state budget, and to continue
addressing the growing income inequality gap, this legislation to create
a 0% New York City Personal Income Tax bracket for working class fami-
lies and individuals. With the elimination of the PIT for these income
bands, we can help nearly two million households build a better life and
pursue the American dream.

 
LEGISLATIVE HISTORY:

2017-18: S.615

 
FISCAL IMPLICATIONS:

None to the state

 
LOCAL FISCAL IMPLICATIONS:

Will affect NYC Personal Income Tax income

 
EFFECTIVE DATE:
Immediate

2023-S5088 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5088
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             February 22, 2023
                                ___________
 
 Introduced  by  Sen.  CLEARE -- 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  making  certain  taxpayers
   exempt from the city personal income tax of the city of New York

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraphs 1, 2 and 3 of subsection (b) of section 1304  of
 the tax law, as amended by section 3 of subpart G of part XXX of chapter
 58 of the laws of 2020, are amended to read as follows:
   (1)  Resident  married  individuals  filing joint returns and resident
 surviving spouses. The tax under this section for each taxable  year  on
 the  city  taxable  income of every city resident married individual who
 makes a single return jointly with his or her  spouse  under  subsection
 (b)  of  section  thirteen  hundred  six of this article and on the city
 taxable income of every city resident surviving spouse shall  be  deter-
 mined in accordance with the following table:
 
   For taxable years beginning after two thousand twenty-three:

 If the city taxable income is:         The tax is:
 Not over [$21,600                      1.18% of the city taxable income
 Over $21,600 but not                   $255 plus 1.435% of excess
 over] $45,000                            [over $21,600] 0% OF THE CITY
                                          TAXABLE INCOME
 Over $45,000 but not                   $591 plus 1.455% of excess
 over $90,000                             over $45,000
 Over $90,000                           $1,245 plus 1.48% of excess
                                          over $90,000
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09689-01-3
 S. 5088                             2

   (2)  Resident heads of households. The tax under this section for each
 taxable year on the city taxable income of every city resident head of a
 household shall be determined in accordance with the following table:
 
   For taxable years beginning after two thousand twenty-three:
 
 If the city taxable income is:         The tax is:
 Not over [$14,400                      1.18% of the city taxable income
 Over $14,400 but not                   $170 plus 1.435% of excess
 over $30,000] $32,500                    [over $14,400] 0% OF THE
                                          CITY TAXABLE INCOME
 Over [$30,000] $32,500                 $394 plus 1.455% of excess
 but not over $60,000                     over [$30,000] $32,500
 Over $60,000                           $830 plus 1.48% of excess
                                          over $60,000
 
   (3)  Resident  unmarried  individuals,  resident  married  individuals
 filing separate returns and resident estates and trusts. The  tax  under
 this  section  for each taxable year on the city taxable income of every
 city resident individual who is not a city resident  married  individual
 who  makes  a  single  return  jointly  with  his  or  her  spouse under
 subsection (b) of section thirteen hundred six of this article or a city
 resident head of household or a city resident surviving spouse,  and  on
 the city taxable income of every city resident estate and trust shall be
 determined in accordance with the following table:

   For taxable years beginning after two thousand twenty-three:
 
 If the city taxable income is:         The tax is:
 Not over [$12,000                      1.18% of the city taxable income
 Over $12,000 but not                   $142 plus 1.435% of excess
 over $25,000] $32,500                    [over $12,000] 0% OF THE
                                          CITY TAXABLE INCOME
 Over [$25,000] $32,500                 $328 plus 1.455% of excess
 but not over $50,000                     over [$25,000] $32,500
 Over $50,000                           $692 plus 1.48% of excess
                                          over $50,000
   §  2.  Paragraph 1 of subsection (a) of section 1304-B of the tax law,
 as amended by section 4 of subpart G of part XXX of chapter  58  of  the
 laws of 2020, is amended to read as follows:
   (1)  In  addition  to  any other taxes authorized by this article, any
 city imposing such taxes is hereby authorized and empowered to adopt and
 amend local laws imposing in any such city for each taxable year  begin-
 ning  after nineteen hundred ninety but before two thousand twenty-four,
 an additional tax on the city taxable  income  of  every  city  resident
 individual,  estate and trust, to be calculated for each taxable year as
 follows: (i) for each taxable  year  beginning  after  nineteen  hundred
 ninety  but before nineteen hundred ninety-nine, at the rate of fourteen
 percent of the sum of the taxes for each such  taxable  year  determined
 pursuant  to  section thirteen hundred four and section thirteen hundred
 four-A of this article; and (ii) for each taxable year  beginning  after
 nineteen  hundred  ninety-eight,  at the rate of fourteen percent of the
 tax for such taxable year determined pursuant to such  section  thirteen
 hundred four; PROVIDED, HOWEVER, THAT ANY TAXABLE INCOME WITH A TAX RATE
 OF  ZERO  PERCENT SHALL NOT BE SUBJECT TO ANY ADDITIONAL TAX PURSUANT TO
 THIS SECTION.
 S. 5088                             3
 
   § 3. Subparagraph (A) of paragraph 1, subparagraph (A) of paragraph  2
 and  subparagraph (A) of paragraph 3 of subsection (a) of section 1304-D
 of the tax law, as added by section 1 of part B of  chapter  63  of  the
 laws of 2003, are amended to read as follows:
   (A) For taxable years beginning in two thousand five:
 
 If the city taxable income is:         The tax is:
 Not over [$21,600                      2.907% of the city taxable income
 Over $21,600 but not                   $628 plus 3.534% of excess
 over] $45,000                            [over $21,600] 0% OF THE CITY
                                          TAXABLE INCOME
 Over $45,000 but not                   $1,455 plus 3.591% of excess
 over $90,000                             over $45,000
 Over $90,000 but not                   $3,071 plus 3.648% of excess
 over $150,000                            over $90,000
 Over $150,000 but not                  $5,260 plus 4.05% of excess
 over $500,000                            over $150,000
 Over $500,000                          $19,435 plus 4.45% of excess
                                          over $500,000
   (A) For taxable years beginning in two thousand five:

 If the city taxable income is:         The tax is:
 Not over [$14,400                      2.907% of the city taxable income
 Over $14,400 but not                   $419 plus 3.534% of excess
 over $30,000] $32,500                    [over $14,400] 0% OF THE
                                        CITY TAXABLE INCOME
 Over [$30,000] $32,500 but not         $970 plus 3.591% of excess
 over $60,000                             over [$30,000] $32,500
 Over $60,000 but not                   $2,047 plus 3.648% of excess
 over $125,000                          over $60,000
 Over $125,000 but not                  $4,418 plus 4.05% of excess
 over $500,000                            over $125,000
 Over $500,000                          $19,606 plus 4.45% of excess
                                          over $500,000
   (A) For taxable years beginning in two thousand five:
 
 If the city taxable income is:         The tax is:
 Not over [$12,000                      2.907% of the city taxable income
 Over $12,000 but not                   $349 plus 3.534% of excess
 over $25,000] $32,500                    [over $12,000] 0% OF THE
                                        CITY TAXABLE INCOME
 Over [$25,000] $32,500 but not         $808 plus 3.591% of excess
 over $50,000                             over [$25,000] $32,500
 Over $50,000 but not                   $1,706 plus 3.648% of excess
 over $100,000                            over $50,000
 Over $100,000 but not                  $3,530 plus 4.05% of excess
 over $500,000                            over $100,000
 Over $500,000                          $19,730 plus 4.45% of excess
                                          over $500,000
   § 4. This act shall take effect immediately.

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