BILL NUMBER: S7306
SPONSOR: CLEARE
 
TITLE OF BILL:
An act to amend the tax law, in relation to making certain taxpayers
exempt from the city personal income tax of the city of New York
 
PURPOSE:
Provides that taxpayers in the city of New York with annual incomes not
more than $45,000 shall not be subject to city personal income taxation
 
SUMMARY OF PROVISIONS:
Section one amends paragraphs 1, 2 and 3 of subsection (b) of section
1304 of the tax law, as amended by chapter 338 of the laws of 2014 to
provide a tax rate of 0% on city taxable income levels of $45,000 or
less beginning in tax year 2017.
Section two amends paragraph 1 of subsection (a) of section 1304-B of
the tax law, as amended by chapter 338 of the laws of 2014 to provide,
further, that taxable income with a tax rate of zero percent shall not
be subject to any additional rate of taxation imposed by the city of New
York.
Section three amends subparagraph (A) of paragraph 1, subparagraph (A)
of paragraph 2 and subparagraph (A) of paragraph 3 of subsection (a) of
section 1304-D of the tax law, as added by section 1 of part B of chap-
ter 63 of the laws of 2003 to provide a tax rate of 0% on city taxable
income levels of $45,000 or less.
Section four is the effective date.
 
JUSTIFICATION:
New York is one of the most expensive places to live in the world.
However approximately 48.5% of New Yorkers earn less than $50,000 per
year. When combined with the high cost of living, many working class New
Yorkers have a hard time making ends meet and/affording basic necessi-
ties.
While New York State took an important step toward improving workers'
economic security through raising the hourly minimum wage to $15.00 by
2018, New York City minimum wage workers still face difficult economic
burdens. In 1966, New York City began collecting a Personal Income Tax
(PIT), which hits city residents on top of New York State and federal
income taxes.
So while the fight for $15 and property tax measures provided some
relief to middle and working-class families, the PIT continues to under-
mine these economic gains.
In order to truly allow low-and middle-income workers to benefit from
the minimum wage increase passed via the state budget, and to continue
addressing the growing income inequality gap, this legislation to create
a 0% New York City-Personal income tax bracket for working -class fami-
lies and individuals. With the elimination of the PIT for these income
bands, we can help nearly two million households build a better life and
pursue the American dream.
 
LEGISLATIVE HISTORY:
2017-18: S.615
 
FISCAL IMPLICATIONS:
None to the state
 
LOCAL FISCAL IMPLICATIONS:
Will affect NYC Personal Income Tax income
 
EFFECTIVE DATE:
Immediate

Statutes affected:
S7306: 1304-B tax law, 1304-B(a) tax law