What's happening
This bill accelerates the implementation of lower personal income tax rates in New York, making them effective sooner than previously scheduled.
Why it matters
Faster tax relief for most New Yorkers. By moving up the schedule for lower income tax rates, individuals and families will see reductions in their state income tax bills sooner, potentially providing immediate financial relief.
Potential boost to consumer spending. With residents keeping more of their income earlier than planned, the bill could increase disposable income, encouraging higher consumer spending and possibly benefiting local businesses and the broader state economy.
Budget and fiscal planning implications. Accelerating rate cuts reduces state tax revenues ahead of previous projections, which may require lawmakers to adjust budget priorities, spending, or other sources of revenue to offset the shortfall.
Signal of tax policy direction. The bill underscores a legislative preference for lower personal income taxes, which could be relevant for attracting and retaining residents, especially those considering relocation based on tax climate.
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Who cares
Headline styles
Speed Up Tax Rate Changes
Plain English, a few words. Used as the page title.
Sponsors
History
- Notice of committee consideration - requested
- Referred to budget and revenue
Full text
6 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
7365
IN SENATE
January 22, 2020
Introduced by Sens. JORDAN, ORTT -- read twice and ordered printed, and when printed to be committed to the Committee on Budget and Revenue
AN ACT to amend the tax law, in relation to accelerating the change in personal income tax rates
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Clauses (iv), (v), (vi), (vii) and (viii) of subparagraph (B) of paragraph 1 of subsection (a) of section 601 of the tax law, clauses (iv), (v), (vi) and (vii) as amended by section 1 of part P of chapter 59 of the laws of 2019 and clause (viii) as added by section 1 of part R of chapter 59 of the laws of 2017, are amended to read as follows:
(iv) For taxable years beginning in two thousand twenty-one the following rates shall apply: [If the New York taxable income is: The tax is: Not over $17,150 4% of the New York taxable income Over $17,150 but not over $23,600 $686 plus 4.5% of excess over
$17,150 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over
$23,600 Over $27,900 but not over $43,000 $1,202 plus 5.9% of excess over
$27,900 Over $43,000 but not over $161,550 $2,093 plus 5.97% of excess over
$43,000 Over $161,550 but not over $323,200 $9,170 plus 6.33% of excess over
$161,550 Over $323,200 but not over $19,403 plus 6.85% of excess $2,155,350 over $323,200 Over $2,155,350 $144,905 plus 8.82% of excess over
$2,155,350
(v) For taxable years beginning in two thousand twenty-two the following rates shall apply:]
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14837-01-0
S. 7365 2
If the New York taxable income is: The tax is: Not over $17,150 4% of the New York taxable income Over $17,150 but not over $23,600 $686 plus 4.5% of excess over
$17,150 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over
$23,600 Over $27,900 but not over $161,550 $1,202 plus 5.85% of excess over
$27,900 Over $161,550 but not over $323,200 $9,021 plus 6.25% of excess over
$161,550 Over $323,200 but not over $2,155,350 $19,124 plus
6.85% of excess over $323,200 Over $2,155,350 $144,626 plus 8.82% of excess over
$2,155,350
[(vi)] (v) For taxable years beginning in two thousand [twenty-three] twenty-two the following rates shall apply: If the New York taxable income is: The tax is: Not over $17,150 4% of the New York taxable income Over $17,150 but not over $23,600 $686 plus 4.5% of excess over
$17,150 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over
$23,600 Over $27,900 but not over $161,550 $1,202 plus 5.73% of excess over
$27,900 Over $161,550 but not over $323,200 $8,860 plus 6.17% of excess over
$161,550 Over $323,200 but not over $18,834 plus 6.85% of $2,155,350 excess over $323,200 Over $2,155,350 $144,336 plus 8.82% of excess over
$2,155,350
[(vii)] (vi) For taxable years beginning in two thousand [twenty-four] twenty-three the following rates shall apply: If the New York taxable income is: The tax is: Not over $17,150 4% of the New York taxable income Over $17,150 but not over $23,600 $686 plus 4.5% of excess over
$17,150 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over
$23,600 Over $27,900 but not over $161,550 $1,202 plus 5.61% of excess over
$27,900 Over $161,550 but not over $323,200 $8,700 plus 6.09% of excess over
$161,550 Over $323,200 but not over $18,544 plus 6.85% of $2,155,350 excess over $323,200 Over $2,155,350 $144,047 plus 8.82% of excess over
$2,155,350
[(viii)] (vii) For taxable years beginning after two thousand [twenty-four] twenty-three the following rates shall apply: If the New York taxable income is: The tax is: Not over $17,150 4% of the New York taxable income Over $17,150 but not over $23,600 $686 plus 4.5% of excess over
$17,150 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over
$23,600 Over $27,900 but not over $161,550 $1,202 plus 5.5% of excess over
S. 7365 3
$27,900 Over $161,550 but not over $323,200 $8,553 plus 6.00% of excess over
$161,550 Over $323,200 $18,252 plus 6.85% of excess over
$323,200
§ 2. Clauses (iv), (v), (vi), (vii) and (viii) of subparagraph (B) of paragraph 1 of subsection (b) of section 601 of the tax law, clauses (iv), (v), (vi) and (vii) as amended by section 2 of part P of chapter 59 of the laws of 2019 and clause (viii) as added by section 2 of part R of chapter 59 of the laws of 2017, are amended to read as follows:
(iv) For taxable years beginning in two thousand twenty-one the following rates shall apply: [If the New York taxable income is: The tax is: Not over $12,800 4% of the New York taxable income Over $12,800 but not over $17,650 $512 plus 4.5% of excess over
$12,800 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over
$17,650 Over $20,900 but not over $32,200 $901 plus 5.9% of excess over
$20,900 Over $32,200 but not over $107,650 $1,568 plus 5.97% of excess over
$32,200 Over $107,650 but not over $269,300 $6,072 plus 6.33% of excess over
$107,650 Over $269,300 but not over $16,304 plus 6.85% of $1,616,450 excess over $269,300 Over $1,616,450 $108,584 plus 8.82% of excess over
$1,616,450
(v) For taxable years beginning in two thousand twenty-two the following rates shall apply:] If the New York taxable income is: The tax is: Not over $12,800 4% of the New York taxable income Over $12,800 but not over $17,650 $512 plus 4.5% of excess over
$12,800 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over
$17,650 Over $20,900 but not over $107,650 $901 plus 5.85% of excess over
$20,900 Over $107,650 but not over $269,300 $5,976 plus 6.25% of excess over
$107,650 Over $269,300 but not over $16,079 plus 6.85% of excess $1,616,450 over $269,300 Over $1,616,450 $108,359 plus 8.82% of excess over
$1,616,450
[(vi)] (v) For taxable years beginning in two thousand [twenty-three] twenty-two the following rates shall apply: If the New York taxable income is: The tax is: Not over $12,800 4% of the New York taxable income Over $12,800 but not over $17,650 $512 plus 4.5% of excess over
$12,800 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over
$17,650 Over $20,900 but not over $107,650 $901 plus 5.73% of excess over
$20,900 Over $107,650 but not over $269,300 $5,872 plus 6.17% of excess over
S. 7365 4
$107,650 Over $269,300 but not over $15,845 plus 6.85% of excess $1,616,450 over $269,300 Over $1,616,450 $108,125 plus 8.82% of excess over
$1,616,450
[(vii)] (vi) For taxable years beginning in two thousand [twenty-four] twenty-three the following rates shall apply: If the New York taxable income is: The tax is: Not over $12,800 4% of the New York taxable income Over $12,800 but not over $17,650 $512 plus 4.5% of excess over
$12,800 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over
$17,650 Over $20,900 but not over $107,650 $901 plus 5.61% of excess over
$20,900 Over $107,650 but not over $269,300 $5,768 plus 6.09% of excess over
$107,650 Over $269,300 but not over $15,612 plus 6.85% of excess $1,616,450 over $269,300 Over $1,616,450 $107,892 plus 8.82% of excess over
$1,616,450
[(viii)] (vii) For taxable years beginning after two thousand [twenty-four] twenty-three the following rates shall apply: If the New York taxable income is: The tax is: Not over $12,800 4% of the New York taxable income Over $12,800 but not over $17,650 $512 plus 4.5% of excess over
$12,800 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over
$17,650 Over $20,900 but not over $107,650 $901 plus 5.5% of excess over
$20,900 Over $107,650 but not over $269,300 $5,672 plus 6.00% of excess over
$107,650 Over $269,300 $15,371 plus 6.85% of excess over
$269,300
§ 3. Clauses (iv), (v), (vi), (vii) and (viii) of subparagraph (B) of paragraph 1 of subsection (c) of section 601 of the tax law, clauses (iv), (v), (vi) and (vii) as amended by section 3 of part P of chapter 59 of the laws of 2019 and clause (viii) as added by section 3 of part R of chapter 59 of the laws of 2017, are amended to read as follows:
(iv) For taxable years beginning in two thousand twenty-one the following rates shall apply: [If the New York taxable income is: The tax is: Not over $8,500 4% of the New York taxable income Over $8,500 but not over $11,700 $340 plus 4.5% of excess over
$8,500 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over
$11,700 Over $13,900 but not over $21,400 $600 plus 5.9% of excess over
$13,900 Over $21,400 but not over $80,650 $1,042 plus 5.97% of excess over
$21,400 Over $80,650 but not over $215,400 $4,579 plus 6.33% of excess over
$80,650 Over $215,400 but not over $13,109 plus 6.85% of excess
S. 7365 5
$1,077,550 over $215,400 Over $1,077,550 $72,166 plus 8.82% of excess over
$1,077,550
(v) For taxable years beginning in two thousand twenty-two the following rates shall apply:] If the New York taxable income is: The tax is: Not over $8,500 4% of the New York taxable income Over $8,500 but not over $11,700 $340 plus 4.5% of excess over
$8,500 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over
$11,700 Over $13,900 but not over $80,650 $600 plus 5.85% of excess over
$13,900 Over $80,650 but not over $215,400 $4,504 plus 6.25% of excess over
$80,650 Over $215,400 but not over $12,926 plus 6.85% of excess $1,077,550 over $215,400 Over $1,077,550 $71,984 plus 8.82% of excess over
$1,077,550
[(vi)] (v) For taxable years beginning in two thousand [twenty-three] twenty-two the following rates shall apply: If the New York taxable income is: The tax is: Not over $8,500 4% of the New York taxable income Over $8,500 but not over $11,700 $340 plus 4.5% of excess over
$8,500 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over
$11,700 Over $13,900 but not over $80,650 $600 plus 5.73% of excess over
$13,900 Over $80,650 but not over $215,400 $4,424 plus 6.17% of excess over
$80,650 Over $215,400 but not over $12,738 plus 6.85% of excess $1,077,550 over $215,400 Over $1,077,550 $71,796 plus 8.82% of excess over
$1,077,550
[(vii)] (vi) For taxable years beginning in two thousand [twenty-four] twenty-three the following rates shall apply: If the New York taxable income is: The tax is: Not over $8,500 4% of the New York taxable income Over $8,500 but not over $11,700 $340 plus 4.5% of excess over
$8,500 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over
$11,700 Over $13,900 but not over $80,650 $600 plus 5.61% of excess over
$13,900 Over $80,650 but not over $215,400 $4,344 plus 6.09% of excess over
$80,650 Over $215,400 but not over $12,550 plus 6.85% of excess $1,077,550 over $215,400 Over $1,077,550 $71,608 plus 8.82% of excess over
$1,077,550
[(viii)] (vii) For taxable years beginning after two thousand [twenty-four] twenty-three the following rates shall apply: If the New York taxable income is: The tax is: Not over $8,500 4% of the New York taxable income Over $8,500 but not over $11,700 $340 plus 4.5% of excess over
S. 7365 6
$8,500 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over
$11,700 Over $13,900 but not over $80,650 $600 plus 5.50% of excess over
$13,900 Over $80,650 but not over $215,400 $4,271 plus 6.00% of excess over
$80,650 Over $215,400 $12,356 plus 6.85% of excess over
$215,400
§ 4. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the tax law, in relation to accelerating the change in personal income tax rates
Summary of provisions
Sections 1, 2, and 3 amend the tax law to provide that reductions in income tax rates provided by a chapter of the laws of 2017 be expedited by one year for the three filing statuses: Married Filing Joint (MFJ); Head of Household (HoH) and Single/married filing separate (S).
Section 4 provides for the effective date.
Justification
In 2017, the New York State Legislature enacted landmark middle class tax cuts which, over the course of its entire implementation, will save taxpayers billions of dollars of their hard-earned money and help tens of thousands of small businesses grow, thrive, and create new jobs. This tax cut, part of Chapter 59 of 2017, was set to be phased in over the course of 2018 to 2024. This legislation will accelerate the rate of tax cuts by expediting its implementation by one year, implementing 2022 projected rates in 2021.
Legislative history
New bill.
Fiscal implications
Per Senate Minority Finance, this legislation is estimated to save taxpayers $438 million dollars.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.