NY State Senate Bill 2025-S4437

Current Bill Status - In Senate Committee Budget And Revenue 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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Feb 05, 2025	referred to budget and revenue

co-Sponsors

2025-S4437 (ACTIVE) - Details

See Assembly Version of this Bill:: A5435
Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Amd §601, Tax L

2025-S4437 (ACTIVE) - Summary

Amends high income personal income tax rates above $5,000,000.

2025-S4437 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S4437

SPONSOR: GOUNARDES
 
TITLE OF BILL:

An act to amend the tax law, in relation to top personal income tax
rates

 
PURPOSE OR GENERAL IDEA OF BILL:

To create a new permanent higher personal income tax rate for the high-
est personal income tax brackets in the state

 
SUMMARY OF PROVISIONS:

Section one of this bill amends subparagraph (B) of paragraph 1 of
subsection (a) of Section 601 of Tax Law to create a new, higher
personal income tax (PIT) rate of 10.8% for incomes of $5 million and
above and 11.4% for incomes of $25 million and above. This is the
subsection of Section 601 that contains the tax table for the married
filing jointly and surviving spouse tax statuses.

Section two of this bill amends subparagraph (B) of paragraph 1 of
subsection (b) of Section 601 of Tax Law to create a new, higher
personal income tax (PIT) rate of 10.8% for incomes of $5 million and
above and 11.4% for incomes of $25 million and above. This is the
subsection of Section 601 that contains the tax table for the head of
household tax status.

Section three of this bill amends subparagraph (B) of paragraph 1 of
subsection (c) of Section 601 of Tax Law to create a new, higher
personal income tax (PIT) rate of 10.8% for incomes of $5 million and
above and 11.4% for incomes of $25 million and above. This is the
subsection of Section 601 that contains the tax table for the single and
married filing separately tax statuses.

Section four of this bill makes a conforming change to subparagraph (B)
of paragraph (1) of subsection (d-4) of Section 601 of Tax Law to
include the higher 11.4% PIT rate in the existing benefit recapture
provisions of law for married filing jointly and surviving spouse tax
filers that have more than $25 million of income. "Benefit recapture"
means that the maximum tax rate is applied to all of a filer's income if
the income exceeds the top tax bracket of $25 million rather than only
to the portion of the income that exceeds $25 million.

Section five of this bill makes a conforming change to subparagraph (B)
of paragraph (2) of subsection (d-4) of Section 601 of Tax Law to
include the higher 11.4% PIT rate in the existing benefit recapture
provisions of law for head of household tax filers that have more than
$25 million of income.

Section six of this bill makes a conforming change to subparagraph (B)
of paragraph (3) of subsection (d-4) of Section 601 of Tax Law to
include the higher 11.4% PIT rate in the existing benefit recapture
provisions of law for single and married filing separately tax filers
that have more than $25 million of income.

Section seven sets the effective date.

 
JUSTIFICATION:

Increasing New York's top tax rates for those earning over $5 million
and over $25 million by 0.5% would generate up to $3 billion for the
state to invest in working-class New Yorkers' basic needs like child
care, education, healthcare, transportation and housing.

This bill, which is drawn directly from proposals in the FY25 Senate and
Assembly one-house budgets, would raise personal income tax rates on
those who can most afford it in order to ensure that New York is able to
fully fund critical public services. Our tax system has evolved to bene-
fit the very wealthy. America's billionaires - about 800 people -
control 57% more wealth ($5.8 trillion) than the entire poorer half of
U.S. society, roughly 65 million households ($3.7 trillion).

Majorities of all Americans support higher taxes on the very rich. In
New York, more than two-thirds of voters say the government should raise
taxes on corporations and the wealthiest people to improve services for
New Yorkers. After decades of being sold trickle-down economics, we now
see it is empty rhetoric. The very rich are getting richer at the
expense of working Americans, who feel like they are working harder than
ever. These changes to New York's tax laws would provide the resources
and programs to keep families and college graduates in the Empire State.

 
PRIOR LEGISLATIVE HISTORY:

None

 
FISCAL IMPLICATIONS:

TBD

 
EFFECTIVE DATE:
Immediate

2025-S4437 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4437
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             February 5, 2025
                                ___________
 
 Introduced by Sen. GOUNARDES -- read twice and ordered printed, and when
   printed to be committed to the Committee on Budget and Revenue
 
 AN  ACT  to  amend  the  tax law, in relation to top personal income tax
   rates
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1.  Clauses (vi) and (vii) of subparagraph (B) of paragraph 1
 of subsection (a) of section 601 of the tax law, as amended by section 1
 of subpart A of part A of chapter 59 of the laws of 2022, are amended to
 read as follows:
   (vi) For taxable years beginning in  two  thousand  twenty-three  [and
 before two thousand twenty-eight] 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 $161,550    $1,202 plus 5.5% of excess over
                                       $27,900
 Over $161,550 but not over $323,200   $8,553 plus 6.00% of excess over
                                       $161,550
 Over $323,200 but not over            $18,252 plus 6.85% of excess over
 $2,155,350                            $323,200
 Over $2,155,350 but not over          $143,754 plus 9.65% of excess over
 $5,000,000                            $2,155,350
 Over $5,000,000 but not over          $418,263 plus 10.30% of excess over
 $25,000,000                           $5,000,000
 Over $25,000,000                      $2,478,263 plus 10.90% of excess
                                       over $25,000,000
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08512-01-5
 S. 4437                             2

 
   (vii)  For  taxable  years beginning after two thousand [twenty-seven]
 TWENTY-FIVE 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 $161,550    $1,202 plus 5.5% of excess over
                                       $27,900
 Over $161,550 but not over $323,200   $8,553 plus 6.00% of excess
                                       over $161,550
 Over $323,200 but not over            $18,252 plus 6.85% of excess
 $2,155,350                            over $323,200
 Over $2,155,350 BUT NOT OVER          $143,754 plus [8.82]
 $5,000,000                            9.65% of the excess over
                                       $2,155,350
 OVER $5,000,000 BUT NOT OVER          $418,263 PLUS 10.80% OF EXCESS
 $25,000,000                           OVER $5,000,000
 OVER $25,000,000                      $2,578,263 PLUS 11.40% OF EXCESS
                                       OVER $25,000,000
   §  2.  Clauses  (vi)  and  (vii) of subparagraph (B) of paragraph 1 of
 subsection (b) of section 601 of the tax law, as amended by section 2 of
 subpart A of part A of chapter 59 of the laws of 2022,  are  amended  to
 read as follows:
   (vi)  For  taxable  years  beginning in two thousand twenty-three [and
 before two thousand twenty-eight] 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 $107,650    $901 plus 5.5% of excess over
                                       $20,900
 Over $107,650 but not over $269,300   $5,672 plus 6.00% of excess over
                                       $107,650
 Over $269,300 but not over            $15,371 plus 6.85% of excess over
 $1,616,450                            $269,300
 Over $1,616,450 but not over          $107,651 plus 9.65% of excess over
 $5,000,000                            $1,616,450
 Over $5,000,000 but not over          $434,163 plus 10.30% of excess over
 $25,000,000                           $5,000,000
 Over $25,000,000                      $2,494,163 plus 10.90% of excess over
                                       $25,000,000
 
   (vii) For taxable years beginning after  two  thousand  [twenty-seven]
 TWENTY-FIVE 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             $512 plus 4.5% of excess over
 $17,650                               $12,800
 Over $17,650 but not over             $730 plus 5.25% of excess over
 $20,900                               $17,650
 Over $20,900 but not over             $901 plus 5.5% of excess over
 $107,650                              $20,900
 S. 4437                             3
 
 Over $107,650 but not over            $5,672 plus 6.00% of excess
 $269,300                              over $107,650
 Over $269,300 but not over            $15,371 plus 6.85% of excess
 $1,616,450                            over $269,300
 Over $1,616,450 BUT NOT OVER          $107,651 plus [8.82%]
 $5,000,000                            9.65% of excess over
                                       $1,616,450
 OVER $5,000,000 BUT NOT OVER          $434,163 PLUS 10.80% OF EXCESS
 $25,000,000                           OVER $25,000,000
 OVER $25,000,000                      $2,594,163 PLUS 11.40% OF
                                       EXCESS OVER $25,000,000
   §  3.  Clauses  (vi)  and  (vii) of subparagraph (B) of paragraph 1 of
 subsection (c) of section 601 of the tax law, as amended by section 3 of
 subpart A of part A of chapter 59 of the laws of 2022,  are  amended  to
 read as follows:
   (vi)  For  taxable  years  beginning in two thousand twenty-three [and
 before two thousand twenty-eight] 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 $80,650     $600 plus 5.50% of excess over
                                       $13,900
 Over $80,650 but not over $215,400    $4,271 plus 6.00% of excess over
                                       $80,650
 Over $215,400 but not over            $12,356 plus 6.85% of excess over
 $1,077,550                            $215,400
 Over $1,077,550 but not over          $71,413 plus 9.65% of excess over
 $5,000,000                            $1,077,550
 Over $5,000,000 but not over          $449,929 plus 10.30% of excess over
 $25,000,000                           $5,000,000
 Over $25,000,000                      $2,509,929 plus 10.90% of excess over
                                       $25,000,000
   (vii) For taxable years beginning after  two  thousand  [twenty-seven]
 TWENTY-FIVE 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 $80,650     $600 plus 5.50% of excess over
                                       $13,900
 Over $80,650 but not over $215,400    $4,271 plus 6.00% of excess
                                       over $80,650
 Over $215,400 but not over            $12,356 plus 6.85% of excess
 $1,077,550                            over $215,400
 Over $1,077,550 BUT NOT OVER          $71,413 plus [8.82%]
 $5,000,000                            9.65% of excess over
                                       $1,077,550
 OVER $5,000,000 BUT NOT OVER          $449,929 PLUS 10.80% OF EXCESS
 $25,000,000                           OVER $25,000,000
 OVER $25,000,000                      $2,609,929 PLUS 11.40% OF EXCESS
                                       OVER $25,000,000
 S. 4437                             4
 
   §  4.  Subparagraph  (B) of paragraph 1 of subsection (d-4) of section
 601 of the tax law, as added by section 3 of subpart  B  of  part  A  of
 chapter 59 of the laws of 2022, is amended to read as follows:
   (B)  If  New  York  adjusted  gross income is greater than twenty-five
 million dollars, the supplemental tax due  shall  equal  the  difference
 between the product of [10.90] 11.40 percent and New York taxable income
 and  the  tax table computation on the New York taxable income set forth
 in paragraph one of subsection (a) of this section.
   § 5. Subparagraph (B) of paragraph 2 of subsection  (d-4)  of  section
 601  of  the  tax  law,  as added by section 3 of subpart B of part A of
 chapter 59 of the laws of 2022, is amended to read as follows:
   (B) If New York adjusted gross  income  is  greater  than  twenty-five
 million  dollars,  the  supplemental  tax due shall equal the difference
 between the product of [10.90] 11.40 percent and New York taxable income
 and the tax table computation on the New York taxable income  set  forth
 in paragraph one of subsection (b) of this section.
   §  6.  Subparagraph  (B) of paragraph 3 of subsection (d-4) of section
 601 of the tax law, as added by section 3 of subpart  B  of  part  A  of
 chapter 59 of the laws of 2022, is amended to read as follows:
   (B)  If  New  York  adjusted  gross income is greater than twenty-five
 million dollars, the supplemental tax due  shall  equal  the  difference
 between the product of [10.90] 11.40 percent and New York taxable income
 and  the  tax table computation on the New York taxable income set forth
 in paragraph one of subsection (c) of this section.
   § 7. This act shall take effect immediately.

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Senate Bill S4437

Sponsored By

Current Bill Status - In Senate Committee Budget And Revenue Committee

co-Sponsors

2025-S4437 (ACTIVE) - Details

2025-S4437 (ACTIVE) - Summary

2025-S4437 (ACTIVE) - Sponsor Memo

2025-S4437 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S4437

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Sponsored By

Andrew Gounardes

Current Bill Status - In Senate Committee Budget And Revenue Committee

co-Sponsors

Leroy Comrie

John C. Liu

2025-S4437 (ACTIVE) - Details

2025-S4437 (ACTIVE) - Summary

2025-S4437 (ACTIVE) - Sponsor Memo

2025-S4437 (ACTIVE) - Bill Text download pdf

Comments