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Sponsors
2 Co-sponsors
History
- Print number 6330c
- Amend and recommit to investigations and government operations
- Print number 6330b
- Amend (t) and recommit to investigations and government operations
- Print number 6330a
- Amend (t) 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.
Exempts the first $1,250,000 of earnings from self-employment during any tax year, from the metropolitan commuter transportation mobility tax
In Assembly Committee · Ways And Means · Sponsor Michael Cusick
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S6330C REVISED 06/01/12
Title of bill
An act to amend the tax law, in relation to exempting self-employment earnings of one million two hundred fifty thousand dollars or less from the metropolitan commuter transportation mobility tax
Purpose
Exempts the first $1,250,000 of earnings from self-employment during any tax year, from the Metropolitan Commuter Transportation Mobility Tax in any calendar quarter.
Summary of specific provisions
Section one amends subsection (a) of section 801 of the tax law, as amended by section 1 of part N of chapter 59 of the laws of 2012.
Section two is the effective date.
Justification
This measure would create parity for the self-employed, who still have to pay the Metropolitan Commuter Transportation Mobility Tax (MCTMT). Enactment of Chapter 56 of the Laws of 2011 eliminated this tax for employers with payroll expenses less than $312,500. This tax poses both a financial and administrative burden on New York's self-employed. Currently, the self-employed pay a rate of .34% for earnings exceeding $50,000.
Self-employed individuals pay their taxes as quarterly estimated taxes throughout the year. This includes the self-employment tax, social secu- rity and Medicare tax, at a rate of 15.3%. The year is divided into four payment periods with specific due dates and penalties if payments are made late. The MCTMT also has a quarterly tax due dates but they do not correspond to the already established ones. This creates a greater administrative burden for the individual and may cause high accounting fees for those who are able to afford an accountant.
This bill would level the playing field by treating the self-employed with those employers with payroll expenses less than $312,500 in any calendar quarter.
Legislative history
New bill.
Fiscal implications
The Department of Taxation and Finance estimates that this proposal will result in a $63 million revenue loss beginning in SFY 2013-14 and $90 million in SFY 2014-15.
Effective date
This act shall take effect April 1, 2013.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.