Skip to content
S5016Senate2011-2012 SessionSame asA8149

Includes New York exemptions of a resident individual within the cost of living adjustment and makes adjustment applicable to tax years beginning on or after 1/1/13

Sponsor John A. DeFranciscoSD-50+6 co-sponsorsAffects Finance
Status
In Senate Committee
Finance
Impact
Pending
Passage
Pending

Bill progress

Step 2 of 7

In committee · Finance

What's happening

Writing a plain-English summary… Track this bill to get it by email.

Why it matters

The daily · weekday mornings

Albany, before your first meeting.

Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.

Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.

Who cares

Headline styles

Sponsors

History

  1. Reported and committed to finance
  2. Print number 5016c
  3. Amend (t) and recommit to investigations and government operations
  4. Print number 5016b
  5. Amend and recommit to investigations and government operations
  6. Referred to investigations and government operations
  7. Reported and committed to finance
  8. Print number 5016a
  9. Amend and recommit to investigations and government operations
  10. Referred to investigations and government operations

Companion bill

Full text

The text isn't available here yet. Check nysenate.gov.

Sponsor's memo

BILL NUMBER:S5016C

Title of bill

An act to amend the tax law, in relation to including New York exemptions of a resident individual within the cost of living adjustment and making such adjustment applicable to tax years beginning on or after January 1, 2013

Purpose

To adjust the taxable income brackets, the standard deduction and the dependent exemption under the personal income tax to the rate of inflation.

Summary of provisions

Section 1 amends section 601 of the Tax Law to adjust the rate brackets for each personal income tax filing type for the rate of inflation.

Section 2 provides effective date.

Justification

The Federal Government provides for a cost of living adjustment in relation to the imposition of the personal income tax at the federal level. This cost of living adjustment applies to the taxable income levels to which the tax rates apply, the standard deduction and the personal exemption. By utilizing this cost of living adjustment, the "bracket creep" is eliminated which forces a taxpayer into a higher income tax bracket as a result of his income increasing due to inflation.

In December of 2011 the Tax Law was amended and indexed the income brackets and the standard deduction to the rate of inflation. However, this is only effective for 2 years. The dependent exemption, which is set at $1,000 per dependent, has not been changed since 1987. In comparison, the Federal Government exemption is equal to $3,650 per dependent.

Legislative history

New bill.

Fiscal implications

$100M in fiscal year 2013-14; $300M when fully effective.

Effective date

Applies to tax years beginning on or after January 1, 2013.

Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.