NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A10266
SPONSOR: Farrell
 
TITLE OF BILL: An act to amend the administrative code of the city of
New York, in relation to the taxation of unincorporated businesses
 
SUMMARY OF PROVISIONS:
Section one of the bill would amend Section 11-514 of the Administrative
Code to require that an unincorporated business income tax return be
made and filed, and the balance of any tax shown on the face of such
return that was not previously paid as installments of estimated tax be
paid, on or before the fifteenth day of the fourth month following the
close of a taxable year; except that an unincorporated business classi-
fied as a partnership for federal income tax purposes must, for taxable
years beginning on or after January 1, 2016, make and file such return
and pay such balance on or before the fifteenth day of the third month
following the close of a taxable year. Section one would also make the
due date of a final return of a decedent for a fractional part of a
year, the fifteenth day of the fourth month following the close of the
twelve-month period that began with the first day of such fractional
part of the year.
Section two would deem any tax prepaid by a taxpayer to have been paid
on the fifteenth day of the fourth month following the close of the
taxable year for which such prepaid amount constitutes a credit or
payment; except, in the case of a taxpayer classified as a partnership
for federal income tax purposes and for taxable years beginning on or
after January 1, 2016, such prepaid tax would be deemed paid on the
fifteenth day of the third month following the close of the taxable year
for which such prepaid amount constitutes a credit or payment.
Section three would make the bill effective immediately.
 
REASONS FOR SUPPORT:
Under current law, for taxable years beginning on or after January 1,
2016, the City of New York requires all unincorporated businesses,
whether a partnership or sole proprietor, to make and file a tax return,
and pay the unpaid balance of any tax shown on the face of such return,
on or before the fifteenth day of the third month following the close of
the taxable year for which the tax return and tax are due. Although this
deadline, which is March 15 for calendar year taxpayers, is consistent
with the new federal and New York State tax filing deadlines with
respect to partnerships, it is not consistent for sole proprietors.
This bill would amend the City's deadlines to provide for consistency
between local tax deadlines and federal and state tax deadlines for sole
proprietors that do business in the City, easing the filing burden on
these taxpayers. Partnerships would still be required to file and pay by
the fifteenth day of the third month following the close of the taxable
year for which a tax return and tax are due, consistent with their
federal and state tax deadlines, but all other unincorporated businesses
would be required to file returns with and pay taxes to the City by the
fifteenth day of the fourth month following the close of the taxable
year for which a tax return and tax are due.
Accordingly, the Mayor urges the earliest possible favorable consider-
ation of this proposal by the Legislature.
STATE OF NEW YORK
________________________________________________________________________
10266
IN ASSEMBLY
May 19, 2016
___________
Introduced by M. of A. FARRELL -- read once and referred to the Commit-
tee on Ways and Means
AN ACT to amend the administrative code of the city of New York, in
relation to the taxation of unincorporated businesses
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivisions (a) and (b) of section 11-514 of the adminis-
2 trative code of the city of New York, as amended by section 18 of part Q
3 of chapter 60 of the laws of 2016, are amended to read as follows:
4 (a) General. An unincorporated business income tax return shall be
5 made and filed, and the balance of any tax shown on the face of such
6 return, not previously paid as installments of estimated tax, shall be
7 paid, on or before the fifteenth day of the fourth month following the
8 close of a taxable year [for taxable years beginning before January
9 first, two thousand sixteen, and], except that in the case of an unin-
10 corporated business classified as a partnership for federal income tax
11 purposes, such return shall be made and filed and such balance shall be
12 paid on or before the fifteenth day of the third month following the
13 close of a taxable year for taxable years beginning on or after January
14 first, two thousand sixteen, by or for every:
15 (1) [by or for every] unincorporated business, for taxable years
16 beginning after nineteen hundred eighty-six but before nineteen hundred
17 ninety-seven, having unincorporated business gross income, determined
18 for purposes of this subdivision without any deduction for the cost of
19 goods sold or services performed, of more than ten thousand dollars, or
20 having any amount of unincorporated business taxable income;
21 (2) [by or for every] partnership, for taxable years beginning after
22 nineteen hundred ninety-six but before two thousand nine, having unin-
23 corporated business gross income, determined for purposes of this subdi-
24 vision without any deduction for the cost of goods sold or services
25 performed, of more than twenty-five thousand dollars, or having unincor-
26 porated business taxable income of more than fifteen thousand dollars;
27 (3) [by or for every] unincorporated business other than a partner-
28 ship, for taxable years beginning after nineteen hundred ninety-six but
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD15559-01-6
A. 10266 2
1 before two thousand nine, having unincorporated business gross income,
2 determined for purposes of this subdivision without any deduction for
3 the cost of goods sold or services performed, of more than seventy-five
4 thousand dollars, or having unincorporated business taxable income of
5 more than thirty-five thousand dollars; and
6 (4) [by or for every] unincorporated business, for taxable years
7 beginning after two thousand eight, having unincorporated business gross
8 income, determined for purposes of this subdivision without any
9 deduction for the cost of goods sold or services performed, of more than
10 ninety-five thousand dollars.
11 (b) Decedents. The return for any deceased individual shall be made
12 and filed by his or her executor, administrator, or other person charged
13 with his or her property. If a final return of a decedent is for a frac-
14 tional part of a year, the due date of such return shall be[, for taxa-
15 ble years beginning before January first, two thousand sixteen,] the
16 fifteenth day of the fourth month following the close of the twelve-
17 month period that began with the first day of such fractional part of
18 the year[, and, for taxable years beginning on or after January first,
19 two thousand sixteen, the fifteenth day of the third month following the
20 close of the twelve-month period that began with the first day of such
21 fractional part of the year].
22 § 2. Subdivision (i) of section 11-527 of the administrative code of
23 the city of New York, as amended by section 19 of part Q of chapter 60
24 of the laws of 2016, is amended to read as follows:
25 (i) Prepaid tax. For purposes of this section, any tax paid by the
26 taxpayer before the last day prescribed for its payment and any amount
27 paid by the taxpayer as estimated tax for a taxable year shall be deemed
28 to have been paid by the taxpayer[, for taxable years beginning before
29 January first, two thousand sixteen,] on the fifteenth day of the fourth
30 month following the close of his or her taxable year with respect to
31 which such amount constitutes a credit or payment, [and,] except that
32 for taxable years beginning on or after January first, two thousand
33 sixteen, in the case of a taxpayer classified as a partnership for
34 federal income tax purposes, such amount shall be deemed to have been
35 paid on the fifteenth day of the third month following the close of his
36 or her taxable year with respect to which such amount constitutes a
37 credit or payment.
38 § 3. This act shall take effect immediately.