BILL NUMBER: S6532
SPONSOR: PALUMBO
 
TITLE OF BILL:
An act to amend the tax law, in relation to indexing taxes to inflation;
and to repeal certain provisions of such law relating thereto
 
PURPOSE:
To index personal income taxes to the cost of living adjustment in order
to provide taxpayers, families and businesses relief from record
inflation.
 
SUMMARY OF PROVISIONS:
Section 1. Repeals and replaces section 601a of the tax law so as to
index personal income tax brackets and the standard deduction to
inflation in the same manner as the federal government utilizing the3
consumer price index (CPI).
Section 2. Sets for the effective date.
 
JUSTIFICATION:
During a period of rampant inflation, taxpayers will face stealth tax
increases never approved by elected lawmakers. By indexing New York's
income tax brackets, standard deductions and dependent exemptions to
inflation, this legislation will help to combat "bracket creep" which
results in taxpayers moving into higher tax brackets where they will
face higher tax rates without any increase to their real income due to
inflation. Adjusting taxes in this manner would save New Yorkers roughly
$300 million annually in a time when they are in urgent need of relief
from soaring costs.
 
LEGISLATIVE HISTORY:
2022 S.9518
 
FISCAL IMPLICATIONS:
TBD
 
EFFECTIVE DATE:
Immediately

Statutes affected:
S6532: 601-a tax law