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History
- Reported and committed to finance
- Print number 5016c
- Amend (t) and recommit to investigations and government operations
- Print number 5016b
- Amend and recommit to investigations and government operations
- Referred to investigations and government operations
- Reported and committed to finance
- Print number 5016a
- Amend and recommit to investigations and government operations
- Referred to investigations and government operations
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
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
In Assembly Committee · Ways And Means · Sponsor Joseph Morelle
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.