S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2104
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 15, 2025
                                ___________
 
 Introduced by M. of A. DiPIETRO -- read once and referred to the Commit-
   tee on Ways and Means
 
 AN  ACT  to  amend  the tax law, in relation to placing a limit upon the
   personal income tax by the state of New York
 
   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 608 to read
 as follows:
   §  608.  LIMIT  UPON  THE PERSONAL INCOME TAX LEVY BY THE STATE OF NEW
 YORK.
   1. UNLESS OTHERWISE PROVIDED BY LAW, THE  AMOUNT  OF  PERSONAL  INCOME
 TAXES  THAT MAY BE LEVIED BY OR ON BEHALF OF THE STATE OF NEW YORK SHALL
 NOT EXCEED THE TAX LEVY LIMIT ESTABLISHED PURSUANT TO THIS SECTION.
   2. WHEN USED IN THIS SECTION:
   (A) "ALLOWABLE LEVY GROWTH FACTOR" FOR ALL  FISCAL  YEARS  THAT  BEGIN
 AFTER  TWO  THOUSAND TWENTY-FIVE SHALL BE THE HIGHER OF: (I) ONE AND TWO
 ONE-HUNDREDTHS; OR (II) THE SUM OF NINETY-NINE ONE-HUNDREDTHS  PLUS  THE
 INFLATION FACTOR.
   (B)  "AVAILABLE  CARRYOVER" MEANS THE AMOUNT BY WHICH THE TAX LEVY FOR
 THE PRIOR FISCAL YEAR WAS BELOW THE TAX LEVY LIMIT FOR SUCH FISCAL YEAR,
 IF ANY, BUT NO MORE THAN AN AMOUNT THAT EQUALS ONE AND ONE-HALF  PERCENT
 OF THE TAX LEVY LIMIT FOR SUCH FISCAL YEAR.
   (C) "COMING FISCAL YEAR" MEANS THE FISCAL YEAR OF THE STATE GOVERNMENT
 FOR WHICH A TAX LEVY LIMIT SHALL BE DETERMINED PURSUANT TO THIS SECTION.
   (D)  "INFLATION  FACTOR" MEANS THE QUOTIENT OF: (I) THE AVERAGE OF THE
 NATIONAL CONSUMER PRICE INDEXES DETERMINED BY THE UNITED STATES  DEPART-
 MENT OF LABOR FOR THE TWELVE-MONTH PERIOD ENDING SIX MONTHS PRIOR TO THE
 START  OF  THE  COMING  FISCAL  YEAR  MINUS  THE AVERAGE OF THE NATIONAL
 CONSUMER PRICE INDEXES DETERMINED BY THE  UNITED  STATES  DEPARTMENT  OF
 LABOR  FOR  THE TWELVE-MONTH PERIOD ENDING SIX MONTHS PRIOR TO THE START
 OF THE PRIOR FISCAL YEAR, DIVIDED BY: (II) THE AVERAGE OF  THE  NATIONAL
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05694-01-5
              

 A. 2104                             2
 
 CONSUMER  PRICE  INDEXES  DETERMINED  BY THE UNITED STATES DEPARTMENT OF
 LABOR FOR THE TWELVE-MONTH PERIOD ENDING SIX MONTHS PRIOR TO  THE  START
 OF THE PRIOR FISCAL YEAR, WITH THE RESULT EXPRESSED AS A DECIMAL TO FOUR
 PLACES.
   (E) "PRIOR FISCAL YEAR" MEANS THE FISCAL YEAR OF THE STATE IMMEDIATELY
 PRECEDING THE COMING FISCAL YEAR.
   (F) "TAX LEVY LIMIT" MEANS THE AMOUNT OF TAXES AUTHORIZED TO BE LEVIED
 BY  OR  ON BEHALF OF THE STATE PURSUANT TO THIS SECTION FOR FISCAL YEARS
 BEGINNING AFTER TWO THOUSAND TWENTY-FIVE.
   (G) "TAX" OR "TAXES" MEANS PERSONAL  INCOME  TAXES  LEVIED  BY  OR  ON
 BEHALF OF THE STATE.
   3.  (A) SUBJECT TO THE PROVISIONS OF SUBDIVISION FIVE OF THIS SECTION,
 BEGINNING WITH THE FISCAL YEAR THAT BEGINS AFTER  TWO  THOUSAND  TWENTY-
 FIVE,  THE  STATE SHALL NOT ADOPT A BUDGET THAT REQUIRES A TAX LEVY THAT
 IS GREATER THAN THE TAX LEVY LIMIT FOR THE COMING FISCAL YEAR.
   (B) THE STATE SHALL CALCULATE THE TAX LEVY  LIMIT  APPLICABLE  TO  THE
 COMING FISCAL YEAR WHICH SHALL BE DETERMINED AS FOLLOWS:
   (I)  ASCERTAIN  THE  TOTAL AMOUNT OF TAXES LEVIED FOR THE PRIOR FISCAL
 YEAR.
   (II) MULTIPLY THE RESULT BY THE ALLOWABLE LEVY GROWTH FACTOR.
   (III) ADD THE AVAILABLE CARRYOVER, IF ANY.
   4. IN THE EVENT THE STATE'S ACTUAL TAX LEVY FOR A  GIVEN  FISCAL  YEAR
 EXCEEDS  THE  TAX  LEVY  LIMIT  BY MORE THAN ONE PERCENT OF THE TAX LEVY
 LIMIT, THE STATE SHALL REBATE THE TOTAL AMOUNT THAT THE ACTUAL TAX  LEVY
 EXCEEDS  THE  TAX  LEVY  LIMIT  SO THAT EACH INDIVIDUAL FILER RECEIVES A
 REBATE OF EQUAL AMOUNT ROUNDED DOWN TO THE NEAREST CENT,  PROVIDED  THAT
 NO INDIVIDUAL SHALL RECEIVE A REBATE OF A GREATER AMOUNT THAN THE INCOME
 TAXES  PAID  DURING THE SAME FISCAL YEAR.  THESE REBATES SHALL BE MAILED
 IN THE FORM OF CHECKS PAYABLE TO THE FILING INDIVIDUAL NO LATER THAN THE
 FIRST OF SEPTEMBER FOLLOWING THE END OF EACH FISCAL YEAR.
   5. IN THE EVENT THE STATE'S ACTUAL TAX LEVY FOR A  GIVEN  FISCAL  YEAR
 EXCEEDS  THE  TAX  LEVY LIMIT AS ESTABLISHED PURSUANT TO THIS SECTION BY
 LESS THAN ONE PERCENT OF THE TAX LEVY LIMIT, THE STATE SHALL  PLACE  THE
 EXCESS  AMOUNT  OF  THE LEVY IN RESERVE IN ACCORDANCE WITH SUCH REQUIRE-
 MENTS AS THE STATE COMPTROLLER MAY PRESCRIBE, AND SHALL USE  SUCH  FUNDS
 AND  ANY  INTEREST EARNED THEREON TO OFFSET THE TAX LEVY FOR THE ENSUING
 FISCAL YEAR.
   § 2. This act shall take effect immediately.