Bill Text: NY A03352 | 2021-2022 | General Assembly | Introduced
Bill Title: Relates to extending the top state income tax rate; provides for an additional tax to be imposed on certain resident's low-taxed investment income.
Spectrum: Partisan Bill (Democrat 30-0)
Status: (Introduced - Dead) 2022-01-05 - referred to ways and means [A03352 Detail]
Download: New_York-2021-A03352-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 3352 2021-2022 Regular Sessions IN ASSEMBLY January 22, 2021 ___________ Introduced by M. of A. KIM -- 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 The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The tax law is amended by adding a new section 601-b to 2 read as follows: 3 § 601-b. Additional tax on low-taxed investment income. (a) There is 4 hereby imposed, in addition to the tax imposed under section six hundred 5 one of this article, an additional tax on a New York resident's low- 6 taxed investment income. 7 (b) Low-taxed investment income shall mean the amount of an individ- 8 ual's New York taxable income attributable to long-term capital gain, 9 dividends, or any other type of income taxed under the preferential 10 rates of section 1(h) of the internal revenue code, or any successor 11 provision thereto. 12 (c)(1) The additional tax imposed under this section shall be equal to 13 (i) the difference between (A) the applicable federal income tax rate 14 that would be imposed on an individual's low-taxed investment income if 15 it were subject to the federal income tax rates imposed on ordinary 16 income under section 1 of the internal revenue code and (B) the applica- 17 ble federal income tax rate imposed at the preferential rates under 18 section 1(h) of the internal revenue code, multiplied by (ii) the amount 19 of an individual's low-taxed investment income, as defined in subsection 20 (b) of this section. 21 (2) The additional tax under paragraph one of this subsection shall be 22 multiplied by the phase-in fraction to determine the amount due under 23 this section. The phase-in fraction is computed as follows: the numera- 24 tor is the lesser of (i) an individual's New York taxable income in 25 excess of the applicable amount defined in subsection (d) of this EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD07937-02-1A. 3352 2 1 section or (ii) fifty thousand dollars, and the denominator is fifty 2 thousand dollars. 3 (d) This section shall not apply to the following persons: 4 (1) In the case of resident married individuals filing joint returns, 5 if New York taxable income is not more than two hundred fifty thousand 6 dollars. 7 (2) In the case of a resident head of household, an individual whose 8 New York taxable income is not more than two hundred thousand dollars. 9 (3) In the case of resident unmarried individuals, resident married 10 individuals filing separate returns, and resident estates and trusts, if 11 New York taxable income is not more than one hundred fifty thousand 12 dollars. 13 (e) This section shall be administered, and penalties imposed, in the 14 same manner as the tax imposed under section six hundred one of this 15 article. 16 (f) The department may adopt rules and regulations as necessary to 17 implement the provisions of this section. 18 § 2. This act shall take effect immediately.
