Bill Text: NY A07667 | 2023-2024 | General Assembly | Introduced
Bill Title: Extends certain provisions of law relating to tax rates and the imposition of income taxes in the city of New York.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2023-06-10 - substituted by s7386 [A07667 Detail]
Download: New_York-2023-A07667-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 7667 2023-2024 Regular Sessions IN ASSEMBLY May 31, 2023 ___________ Introduced by M. of A. BRAUNSTEIN -- read once and referred to the Committee on Ways and Means AN ACT to amend the tax law, the administrative code of the city of New York, chapter 877 of the laws of 1975, chapter 884 of the laws of 1975 and chapter 882 of the laws of 1977, relating to the imposition of certain taxes in the city of New York, in relation to postponing the expiration of certain tax rates and taxes in the city of New York The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Paragraph 3 of subdivision (a) of section 1212-a of the tax 2 law, as amended by section 1 of subpart G of part XXX of chapter 58 of 3 the laws of 2020, is amended to read as follows: 4 (3) a tax, at the same uniform rate, but at a rate not to exceed four 5 and one-half per centum, in multiples of one-half of one per centum, on 6 the receipts from every sale of any or all of the following services in 7 whole or in part: credit rating, credit reporting, credit adjustment and 8 collection services, including, but not limited to, those services 9 provided by mercantile and consumer credit rating or reporting bureaus 10 or agencies and credit adjustment or collection bureaus or agencies, 11 whether rendered in written or oral form or in any other manner, except 12 to the extent otherwise taxable under article twenty-eight of this chap- 13 ter; notwithstanding the foregoing, collection services shall not 14 include those services performed by a law office or a law and collection 15 office, the maintenance or conduct of which constitutes the practice of 16 law, if the services are performed by an attorney at law who has been 17 duly licensed and admitted to practice law in this state. The local law 18 imposing the taxes authorized by this paragraph may provide for exclu- 19 sions and exemptions in addition to those provided for in such para- 20 graph. Provided, however, that the tax hereby authorized shall not be 21 imposed after November thirtieth, two thousand [twenty-three] 22 twenty-six. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD11209-01-3A. 7667 2 1 § 2. Subsection (a) of section 1301 of the tax law, as amended by 2 section 2 of subpart G of part XXX of chapter 58 of the laws of 2020, is 3 amended to read as follows: 4 (a) Notwithstanding any other provision of law to the contrary, any 5 city in this state having a population of one million or more inhabit- 6 ants, acting through its local legislative body, is hereby authorized 7 and empowered to adopt and amend local laws imposing in any such city, 8 for taxable years beginning after nineteen hundred seventy-five: 9 (1) a tax on the personal income of residents of such city, at the 10 rates provided for under subsection (a) of section thirteen hundred four 11 of this article for taxable years beginning before two thousand [twen-12ty-four] twenty-seven, and at the rates provided for under subsection 13 (b) of section thirteen hundred four of this article for taxable years 14 beginning after two thousand [twenty-three] twenty-six, provided, howev- 15 er, that if, for any taxable year beginning after two thousand [twenty-16three] twenty-six, the rates set forth in such subsection (b) are 17 rendered inapplicable and the rates set forth in such subsection (a) are 18 rendered applicable, then the tax for such taxable year shall be at the 19 rates provided under subparagraphs (A) of paragraphs one, two and three 20 of such subsection (a), 21 (2) for taxable years beginning after nineteen hundred seventy-six, a 22 separate tax on the ordinary income portion of lump sum distributions of 23 such residents, at the rates provided for herein, such taxes to be 24 administered, collected and distributed by the commissioner as provided 25 for in this article. 26 § 3. Subsection (b) of section 1304 of the tax law, as amended by 27 section 3 of subpart G of part XXX of chapter 58 of the laws of 2020, is 28 amended to read as follows: 29 (b) A tax other than the city separate tax on the ordinary income 30 portion of lump sum distributions imposed pursuant to the authority of 31 section thirteen hundred one of this article shall be determined as 32 follows: 33 (1) Resident married individuals filing joint returns and resident 34 surviving spouses. The tax under this section for each taxable year on 35 the city taxable income of every city resident married individual who 36 makes a single return jointly with his or her spouse under subsection 37 (b) of section thirteen hundred six of this article and on the city 38 taxable income of every city resident surviving spouse shall be deter- 39 mined in accordance with the following table: 40 For taxable years beginning after two thousand [twenty-three] twenty- 41 six: 42 If the city taxable income is: The tax is: 43 Not over $21,600 1.18% of the city taxable income 44 Over $21,600 but not $255 plus 1.435% of excess 45 over $45,000 over $21,600 46 Over $45,000 but not $591 plus 1.455% of excess 47 over $90,000 over $45,000 48 Over $90,000 $1,245 plus 1.48% of excess 49 over $90,000 50 (2) Resident heads of households. The tax under this section for each 51 taxable year on the city taxable income of every city resident head of a 52 household shall be determined in accordance with the following table:A. 7667 3 1 For taxable years beginning after two thousand [twenty-three] twenty- 2 six: 3 If the city taxable income is: The tax is: 4 Not over $14,400 1.18% of the city taxable income 5 Over $14,400 but not $170 plus 1.435% of excess 6 over $30,000 over $14,400 7 Over $30,000 but not $394 plus 1.455% of excess 8 over $60,000 over $30,000 9 Over $60,000 $830 plus 1.48% of excess 10 over $60,000 11 (3) Resident unmarried individuals, resident married individuals 12 filing separate returns and resident estates and trusts. The tax under 13 this section for each taxable year on the city taxable income of every 14 city resident individual who is not a city resident married individual 15 who makes a single return jointly with his or her spouse under 16 subsection (b) of section thirteen hundred six of this article or a city 17 resident head of household or a city resident surviving spouse, and on 18 the city taxable income of every city resident estate and trust shall be 19 determined in accordance with the following table: 20 For taxable years beginning after two thousand [twenty-three] twenty- 21 six: 22 If the city taxable income is: The tax is: 23 Not over $12,000 1.18% of the city taxable income 24 Over $12,000 but not $142 plus 1.435% of excess 25 over $25,000 over $12,000 26 Over $25,000 but not $328 plus 1.455% of excess 27 over $50,000 over $25,000 28 Over $50,000 $692 plus 1.48% of excess 29 over $50,000 30 § 4. Subsection (a) of section 1304-B of the tax law, as amended by 31 section 4 of subpart G of part XXX of chapter 58 of the laws of 2020, is 32 amended to read as follows: 33 (a) (1) In addition to any other taxes authorized by this article, any 34 city imposing such taxes is hereby authorized and empowered to adopt and 35 amend local laws imposing in any such city for each taxable year begin- 36 ning after nineteen hundred ninety but before two thousand [twenty-four] 37 twenty-seven, an additional tax on the city taxable income of every city 38 resident individual, estate and trust, to be calculated for each taxable 39 year as follows: (i) for each taxable year beginning after nineteen 40 hundred ninety but before nineteen hundred ninety-nine, at the rate of 41 fourteen percent of the sum of the taxes for each such taxable year 42 determined pursuant to section thirteen hundred four and section thir- 43 teen hundred four-A of this article; and (ii) for each taxable year 44 beginning after nineteen hundred ninety-eight, at the rate of fourteen 45 percent of the tax for such taxable year determined pursuant to such 46 section thirteen hundred four. 47 (2) Notwithstanding paragraph one of this subsection, for each taxable 48 year beginning after nineteen hundred ninety-nine but before two thou- 49 sand [twenty-four] twenty-seven, any city imposing such additional tax 50 may by local law impose such tax at a rate that is less than fourteen 51 percent and may impose such tax at more than one rate depending upon theA. 7667 4 1 filing status and city taxable income of such city resident individual, 2 estate or trust. 3 (3) A local law enacted pursuant to paragraph two of this subsection 4 shall be applicable with respect to any taxable year only if it has been 5 enacted on or before July thirty-first of such year. A certified copy of 6 such local law shall be mailed by registered mail to the department at 7 its office in Albany within fifteen days of its enactment. However, the 8 department may allow additional time for such certified copy to be 9 mailed if it deems such action to be consistent with its duties under 10 this article. 11 § 5. Paragraph E of subdivision 1 of section 11-604 of the administra- 12 tive code of the city of New York, as amended by section 5 of subpart G 13 of part XXX of chapter 58 of the laws of 2020, is amended to read as 14 follows: 15 E. For taxable years beginning on or after January first, nineteen 16 hundred seventy-eight but before January first, two thousand [twenty-17four] twenty-seven, the tax imposed by subdivision one of section 11-603 18 of this subchapter shall be, in the case of each taxpayer: 19 (a) whichever of the following amounts is the greatest: 20 (1) an amount computed, for taxable years beginning before nineteen 21 hundred eighty-seven, at the rate of nine per centum, and for taxable 22 years beginning after nineteen hundred eighty-six, at the rate of eight 23 and eighty-five one-hundredths per centum, of its entire net income or 24 the portion of such entire net income allocated within the city as here- 25 inafter provided, subject to any modification required by paragraphs (d) 26 and (e) of subdivision three of this section, 27 (2) an amount computed at one and one-half mills for each dollar of 28 its total business and investment capital, or the portion thereof allo- 29 cated within the city, as hereinafter provided, except that in the case 30 of a cooperative housing corporation as defined in the internal revenue 31 code, the applicable rate shall be four-tenths of one mill, 32 (3) an amount computed, for taxable years beginning before nineteen 33 hundred eighty-seven, at the rate of nine per centum, and for taxable 34 years beginning after nineteen hundred eighty-six, at the rate of eight 35 and eighty-five one-hundredths per centum, on thirty per centum of the 36 taxpayer's entire net income plus salaries and other compensation paid 37 to the taxpayer's elected or appointed officers and to every stockholder 38 owning in excess of five per centum of its issued capital stock minus 39 fifteen thousand dollars (subject to proration as hereinafter provided) 40 and any net loss for the reported year, or on the portion of any such 41 sum allocated within the city as hereinafter provided for the allocation 42 of entire net income, subject to any modification required by paragraphs 43 (d) and (e) of subdivision three of this section, provided, however, 44 that for taxable years beginning on or after July first, nineteen 45 hundred ninety-six, the provisions of paragraph H of this subdivision 46 shall apply for purposes of the computation under this clause, or 47 (4) for taxable years ending on or before June thirtieth, nineteen 48 hundred eighty-nine, one hundred twenty-five dollars, for taxable years 49 ending after June thirtieth, nineteen hundred eighty-nine and beginning 50 before two thousand nine, three hundred dollars, and for taxable years 51 beginning after two thousand eight: 52 If New York city receipts are: Fixed dollar minimum tax is: 53 Not more than $100,000 $25 54 More than $100,000 but not over $250,000 $75 55 More than $250,000 but not over $500,000 $175 56 More than $500,000 but not over $1,000,000 $500A. 7667 5 1 More than $1,000,000 but not over $5,000,000 $1,500 2 More than $5,000,000 but not over $25,000,000 $3,500 3 Over $25,000,000 $5,000 4 For purposes of this clause, New York city receipts are the receipts 5 computed in accordance with subparagraph two of paragraph (a) of subdi- 6 vision three of this section for the taxable year. For taxable years 7 beginning after two thousand eight, if the taxable year is less than 8 twelve months, the amount prescribed by this clause shall be reduced by 9 twenty-five percent if the period for which the taxpayer is subject to 10 tax is more than six months but not more than nine months and by fifty 11 percent if the period for which the taxpayer is subject to tax is not 12 more than six months. If the taxable year is less than twelve months, 13 the amount of New York city receipts for purposes of this clause is 14 determined by dividing the amount of the receipts for the taxable year 15 by the number of months in the taxable year and multiplying the result 16 by twelve, plus; 17 (b) an amount computed at the rate of three-quarters of a mill for 18 each dollar of the portion of its subsidiary capital allocated within 19 the city as hereinafter provided. 20 In the case of a taxpayer which is not subject to tax for an entire 21 year, the exemption allowed in clause three of subparagraph (a) of this 22 paragraph shall be prorated according to the period such taxpayer was 23 subject to tax. Provided, however, that this paragraph shall not apply 24 to taxable years beginning after December thirty-first, two thousand 25 [twenty-three] twenty-six. For the taxable years specified in the 26 preceding sentence, the tax imposed by subdivision one of section 11-603 27 of this subchapter shall be, in the case of each taxpayer, determined as 28 specified in paragraph A of this subdivision, provided, however, that 29 the provisions of paragraphs G and H of this subdivision shall apply for 30 purposes of the computation under clause three of subparagraph (a) of 31 such paragraph A. 32 § 6. The opening paragraph of section 11-1701 of the administrative 33 code, as amended by section 6 of subpart G of part XXX of chapter 58 of 34 the laws of 2020, is amended to read as follows: 35 A tax is hereby imposed on the city taxable income of every city resi- 36 dent individual, estate and trust determined in accordance with the 37 rates set forth in subdivision (a) of this section for taxable years 38 beginning before two thousand [twenty-four] twenty-seven, and in accord- 39 ance with the rates set forth in subdivision (b) of this section for 40 taxable years beginning after two thousand [twenty-three] twenty-six. 41 Provided, however, that if, for any taxable year beginning after two 42 thousand [twenty-three] twenty-six, the rates set forth in such subdivi- 43 sion (b) are rendered inapplicable and the rates set forth in such 44 subdivision (a) are rendered applicable, then the tax for such taxable 45 year shall be at the rates provided under subparagraph (A) of paragraphs 46 one, two and three of such subdivision (a). 47 § 7. Subdivision (b) of section 11-1701 of the administrative code of 48 the city of New York, as amended by section 7 of subpart G of part XXX 49 of chapter 58 of the laws of 2020, is amended to read as follows: 50 (b) Rate of tax. A tax imposed pursuant to this section shall be 51 determined as follows: 52 (1) Resident married individuals filing joint returns and resident 53 surviving spouses. The tax under this section for each taxable year on 54 the city taxable income of every city resident married individual who 55 makes a single return jointly with his or her spouse under subdivision 56 (b) of section 11-1751 of this title and on the city taxable income ofA. 7667 6 1 every city resident surviving spouse shall be determined in accordance 2 with the following table: 3 For taxable years beginning after two thousand [twenty-three] twenty- 4 six: 5 If the city taxable income is: The tax is: 6 Not over $21,600 1.18% of the city taxable income 7 Over $21,600 but not $255 plus 1.435% of excess 8 over $45,000 over $21,600 9 Over $45,000 but not $591 plus 1.455% of excess 10 over $90,000 over $45,000 11 Over $90,000 $1,245 plus 1.48% of excess 12 over $90,000 13 (2) Resident heads of households. The tax under this section for each 14 taxable year on the city taxable income of every city resident head of a 15 household shall be determined in accordance with the following table: 16 For taxable years beginning after two thousand [twenty-three] twenty- 17 six: 18 If the city taxable income is: The tax is: 19 Not over $14,400 1.18% of the city taxable income 20 Over $14,400 but not $170 plus 1.435% of excess 21 over $30,000 over $14,400 22 Over $30,000 but not $394 plus 1.455% of excess 23 over $60,000 over $30,000 24 Over $60,000 $830 plus 1.48% of excess 25 over $60,000 26 (3) Resident unmarried individuals, resident married individuals 27 filing separate returns and resident estates and trusts. The tax under 28 this section for each taxable year on the city taxable income of every 29 city resident individual who is not a married individual who makes a 30 single return jointly with his or her spouse under subdivision (b) of 31 section 11-1751 of this title or a city resident head of a household or 32 a city resident surviving spouse, and on the city taxable income of 33 every city resident estate and trust shall be determined in accordance 34 with the following table: 35 For taxable years beginning after two thousand [twenty-three] twenty- 36 six: 37 If the city taxable income is: The tax is: 38 Not over $12,000 1.18% of the city taxable income 39 Over $12,000 but not $142 plus 1.435% of excess 40 over $25,000 over $12,000 41 Over $25,000 but not $328 plus 1.455% of excess 42 over $50,000 over $25,000 43 Over $50,000 $692 plus 1.48% of excess 44 over $50,000 45 § 8. Paragraph 1 of subdivision (a) of section 11-1704.1 of the admin- 46 istrative code of the city of New York, as amended by section 8 of 47 subpart G of part XXX of chapter 58 of the laws of 2020, is amended to 48 read as follows: 49 (1) In addition to any other taxes imposed by this chapter, there is 50 hereby imposed for each taxable year beginning after nineteen hundred 51 ninety but before two thousand [twenty-four] twenty-seven, an additionalA. 7667 7 1 tax on the city taxable income of every city resident individual, estate 2 and trust, to be calculated for each taxable year as follows: (i) for 3 each taxable year beginning after nineteen hundred ninety but before 4 nineteen hundred ninety-nine, at the rate of fourteen percent of the sum 5 of the taxes for each such taxable year determined pursuant to section 6 11-1701 and section 11-1704 of this subchapter; and (ii) for each taxa- 7 ble year beginning after nineteen hundred ninety-eight, at the rate of 8 fourteen percent of the tax for such taxable year determined pursuant to 9 such section 11-1701. 10 § 9. Subdivision (a) of section 11-2002 of the administrative code of 11 the city of New York, as amended by section 9 of subpart G of part XXX 12 of chapter 58 of the laws of 2020, is amended to read as follows: 13 (a) There are hereby imposed and there shall be paid sales taxes at 14 the rate of four and one-half percent on receipts from every sale of the 15 services of beauty, barbering, hair restoring, manicuring, pedicuring, 16 electrolysis, massage services and similar services, and every sale of 17 services by weight control salons, health salons, gymnasiums, turkish 18 and sauna bath and similar establishments and every charge for the use 19 of such facilities, whether or not any tangible personal property is 20 transferred in conjunction therewith; but excluding services rendered by 21 a physician, osteopath, dentist, nurse, physiotherapist, chiropractor, 22 podiatrist, optometrist, ophthalmic dispenser or a person performing 23 similar services licensed under title eight of the education law, as 24 amended, and excluding such services when performed on pets and other 25 animals, as authorized by subdivision (a) of section twelve hundred 26 twelve-A of the tax law. Provided, however, that the tax hereby imposed 27 shall not be imposed after November thirtieth, two thousand [twenty-28three] twenty-six. 29 § 10. The opening paragraph of subdivision (a) of section 11-2040 of 30 the administrative code of the city of New York, as amended by section 31 10 of subpart G of part XXX of chapter 58 of the laws of 2020, is 32 amended to read as follows: 33 There is hereby imposed within the city and there shall be paid a tax 34 at the rate of four and one-half percent upon the receipts from every 35 sale, except for resale, of the following services, provided, however, 36 that the tax hereby imposed shall not be imposed after November thirti- 37 eth, two thousand [twenty-three] twenty-six, on receipts from sales of 38 the services specified in paragraph one of this subdivision: 39 § 11. Section 4 of chapter 877 of the laws of 1975, relating to the 40 imposition of certain taxes in the city of New York, as amended by 41 section 11 of subpart G of part XXX of chapter 58 of the laws of 2020, 42 is amended to read as follows: 43 § 4. This act shall expire on December 31, [2023] 2026, provided, 44 however, that it is hereby declared to be the express intention of the 45 legislature that the provisions of sections two and three of this act, 46 except with respect to the enforcement and collection of any tax arising 47 thereunder, shall remain in full force and effect only until the date of 48 such expiration, at which time the provisions of law amended by this act 49 shall be continued in full force and effect as they existed prior to the 50 enactment of this act. 51 § 12. Section 6 of chapter 884 of the laws of 1975, relating to the 52 imposition of certain taxes in the city of New York, as amended by 53 section 12 of subpart G of part XXX of chapter 58 of the laws of 2020, 54 is amended to read as follows: 55 § 6. This act shall expire on December 31, [2023] 2026, provided, 56 however, that it is hereby declared to be the express intention of theA. 7667 8 1 legislature that the provisions of sections two, three and four of this 2 act, except with respect to the enforcement and collection of any tax 3 arising thereunder, shall remain in full force and effect only until the 4 date of such expiration, at which time the provisions of law amended by 5 this act shall be continued in full force and effect as they existed 6 prior to the enactment of this act. 7 § 13. Section 2 of chapter 882 of the laws of 1977, relating to the 8 imposition of certain taxes in the city of New York, as amended by 9 section 13 of subpart G of part XXX of chapter 58 of the laws of 2020, 10 is amended to read as follows: 11 § 2. This act shall expire on December 31, [2023] 2026, provided, 12 however, that it is hereby declared to be the express intention of the 13 legislature that the provisions of section one of this act, except with 14 respect to the enforcement and collection of any tax arising thereunder, 15 shall remain in full force and effect only until the date of such expi- 16 ration, at which time the provisions of law amended by this act shall be 17 continued in full force and effect as they existed prior to the enact- 18 ment of this act. 19 § 14. This act shall take effect immediately.
