Excludes outside income of nonresident employees from being included in city personal income tax

BILL NUMBER:A2646A

Title of bill

An act to amend the New York city charter in relation to condition precedent to employment

Purpose or general idea of bill

To exclude employees' outside income and their spouse's income from the precedent to employment, which requires City employees to pay City taxes regardless of whether they reside in the City.

Summary of specific provisions

Section 1127 of the New York city charter is amended to add language that City employees' outside income and their spouses' income shall not be included in the precedent to employment agreement, which subjects the employee's income to City taxation regardless of whether they move out of New York City. It also states that these law changes would not require reimbursement for taxes paid prior to the law change.

Justification

Currently, City employees living outside New York City are subject to New York City personal income tax on their New York City wages and also earnings from any other employment. If they file joint taxes, they are also paying New York City taxes on their spouses' income. To tax income produced out of the City in addition to spouse's income is unfair to the taxpayers who work hard to support themselves and their families.

Prior legislative history

2002: A.9886 Held for consideration in Ways & Means 2003-04: A.2557 Held for consideration in Ways & Means 2007-08: A.4115 Referred to Ways & Means

Fiscal implications

Fiscal implication to New York City $55 million.

Effective date

This act shall take effect immediately