Reduces the marginal personal income tax for taxable years beginning after 2005 to 6.5%; repealer

4 Co-sponsors

• Kemp Hannon
• George D. Maziarz
• Michael H. Ranzenhofer
• James L. Seward

BILL NUMBER:S4309

Title of bill

An act to amend the tax law, in relation to personal income tax rates; and to repeal paragraph 1 of subsections (a), (b) and (c) of section 601 of the tax law, in relation thereto

Purpose

This bill reduces the marginal personal income tax for taxable years beginning after 2005 from 6.85% to 6.5%, alleviating a portion of the tax burden for small businesses and individual taxpayers.

Summary of provisions

§1 - Amends paragraph 1 of subsections (a), (b) and (c) and subparagraph (A) of paragraph 1 of subsection (d) of section 601 of the Tax Law. The lowest personal income tax rate of 6.85% is decreased by 0.35% to 6.5%.

§2 - Effective date.

Justification

In the 2005-2006 budget, provisions were included to reduce the corporate franchise tax for many small incorporated businesses from 6.85% to 6.5%. However, this tax reduction does not apply to sole proprietors, partnerships, subchapter S corporations or limited liability companies that pay their taxes via personal income tax. This legislation reduces the marginal personal income tax for taxable years beginning after 2005 from 6.85% to 6.5% to allow these small businesses and individual taxpayers to also experience some relief.

Legislative history

2009-2010: A.2814 2007-2008: A.3124 2005-2006: A.7950

Fiscal implications

Yet to be determined.

Effective date

This act shall take effect immediately.