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A00135 Summary:

BILL NOA00135
 
SAME ASNo Same As
 
SPONSORMagnarelli
 
COSPNSR
 
MLTSPNSR
 
Add Art 24-C §§880 - 887, Tax L
 
Establishes a payroll tax in the counties of Onondaga, Madison, Cortland, Oswego and Cayuga on certain employers for the purposes of addressing child care affordability, accessibility, and quality for families with children under three years of age.
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A00135 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                           135
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                       (Prefiled)
 
                                     January 4, 2023
                                       ___________
 
        Introduced  by  M.  of  A.  MAGNARELLI  -- read once and referred to the
          Committee on Ways and Means
 
        AN ACT to amend the tax law, in relation to establishing a  payroll  tax
          for  the  purpose of child care for families with children under three
          years of age within certain counties; and providing for the repeal  of
          such provisions upon expiration thereof
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. The tax law is amended by adding a new article 24-C to read
     2  as follows:
     3                                ARTICLE 24-C
     4                   CENTRAL NEW YORK CHILD CARE PAYROLL TAX
     5  Section 880. Definitions.
     6          881. Imposition of tax and rate.
     7          882. Pass through of tax prohibited.
     8          883. Exemption override.
     9          884. Payment of tax.
    10          885. Deposit and disposition of revenue.
    11          886. Procedural provisions.
    12          887. Enforcement with other taxes.
    13    § 880. Definitions. For the purposes of this article:
    14    (a) Employer. Employer means  an  employer  required  by  section  six
    15  hundred  seventy-one  of  this  chapter  to deduct and withhold tax from
    16  wages that have a payroll expense in excess of six  hundred  twenty-five
    17  thousand dollars in any calendar quarter; other than:
    18    (1) any agency or instrumentality of the United States;
    19    (2) the United Nations;
    20    (3)  an interstate agency or public corporation created pursuant to an
    21  agreement or compact with another state or the Dominion of Canada; or
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00325-01-3

        A. 135                              2
 
     1    (4)  (i)  any  non-profit  early  childhood  services  provider  which
     2  receives funding from the federal or state government, or any municipal,
     3  state or federal agency, or political subdivision.
     4    (ii)  as  used  in  this  section, the term "early childhood services"
     5  shall mean services which include, but are not limited  to,  registered,
     6  certified  or  licensed  care in family day care homes; group family day
     7  care homes; school-age child care programs;  head  start  programs;  day
     8  care centers; child care which may be provided without a permit, certif-
     9  icate  or  registration in accordance with this statute; early childhood
    10  education programs approved by the state education department; and  care
    11  provided  in a children's camp as defined in section fourteen hundred of
    12  the public health law.
    13    (b) Payroll expense. Payroll expense means wages and  compensation  as
    14  defined  in sections 3121 and 3231 of the internal revenue code (without
    15  regard to section 3121(a)(1) and section 3231(e)(2)(A)(i)), paid to  all
    16  covered employees.
    17    (c)  Covered  employee.  Covered  employee  means  an  employee who is
    18  employed in the counties of  Onondaga,  Madison,  Cayuga,  Cortland  and
    19  Oswego.
    20    §  881.  Imposition  of  tax and rate. For the purpose of providing an
    21  additional stable and reliable dedicated funding source to address child
    22  care affordability, accessibility, and quality for families  with  chil-
    23  dren  under three years of age, a tax is hereby imposed on employers who
    24  engage in business in the counties of Onondaga, Madison,  Cayuga,  Cort-
    25  land and Oswego and individuals as follows: The tax is imposed at a rate
    26  of  (a)  fifteen  hundredths  (.15)  percent  of the payroll expense for
    27  employers with payroll expense in  excess  of  six  hundred  twenty-five
    28  thousand  dollars  and not more than one million two hundred fifty thou-
    29  sand dollars per calendar quarter, (b) eighteen hundredths (.18) percent
    30  of the payroll expense for employers with payroll expense in  excess  of
    31  one  million  two  hundred  fifty thousand dollars and not more than two
    32  million five hundred thousand dollars  per  calendar  quarter,  and  (c)
    33  twenty-two hundredths (.22) percent of the payroll expense for employers
    34  with  payroll  expense  in  excess  of two million five hundred thousand
    35  dollars per calendar quarter. If the employer is a professional employer
    36  organization, as defined in section nine hundred sixteen  of  the  labor
    37  law,  the  employer's tax shall be calculated by determining the payroll
    38  expense attributable to each client who has entered into a  professional
    39  employer  agreement  with  such  organization  and  the  payroll expense
    40  attributable to such organization  itself,  multiplying  each  of  those
    41  payroll  expense  amounts by the applicable rate set forth in this para-
    42  graph and adding those products together.
    43    § 882. Pass through of tax prohibited. An employer cannot deduct  from
    44  the  wages or compensation of an employee any amount that represents all
    45  or any portion of the tax imposed on the employer under this article.
    46    § 883. Exemption override. (a) Except as provided in subsection (b) of
    47  this section, any exemption from tax specified in any  other  state  law
    48  will not apply to the tax imposed by this article.
    49    (b)  For  a  tax-free  NY  area approved pursuant to the provisions of
    50  article twenty-one of the economic development law, the payroll  expense
    51  in  such tax-free NY area of any employer and accepted into the START-UP
    52  NY program shall be exempt from the tax imposed under this article.
    53    § 884. Payment of tax. Employers with payroll expense. The tax imposed
    54  on the payroll expense of employers under section eight  hundred  sixty-
    55  one  of  this  article  must  be  paid  at the same time the employer is
    56  required to remit payments under section  six  hundred  seventy-four  of

        A. 135                              3
 
     1  this chapter; provided however, that employers subject to the provisions
     2  of  section nine of this chapter must pay the tax on the payroll expense
     3  at the same time as the withholding tax remitted  under  the  electronic
     4  payment  reporting  system  and  the  electronic  funds  transfer system
     5  authorized by section nine of this chapter.
     6    § 885. Deposit and disposition of revenue. (a)  The  taxes,  interest,
     7  and  penalties  imposed by this article and collected or received by the
     8  commissioner shall be deposited daily with such responsible banks, bank-
     9  ing houses or trust companies, as may be designated by the  comptroller,
    10  to  the credit of such comptroller in trust. Such deposits shall be kept
    11  separate and apart from all other money in the possession of  the  comp-
    12  troller.  The  comptroller shall require adequate security from all such
    13  depositories. Of the total revenue  collected  or  received  under  this
    14  article,  the  comptroller  shall retain such amount as the commissioner
    15  may determine to be necessary for refunds under this article. The  comp-
    16  troller  is  authorized  and  directed  to  deduct  from  the amounts it
    17  receives under this article, before  deposit  into  the  trust  accounts
    18  designated  by such comptroller, a reasonable amount necessary to effec-
    19  tuate refunds of the department to  reimburse  the  department  for  the
    20  costs  incurred  to administer, collect and distribute the taxes imposed
    21  by this article.
    22    (b) After reserving such amount for such refunds  and  deducting  such
    23  amounts  for  such  costs,  as  provided  for  in subsection (a) of this
    24  section, the commissioner shall certify to the comptroller the amount of
    25  all revenues so received during the prior  month  as  a  result  of  the
    26  taxes,  interest  and  penalties  so  imposed. The amount of revenues so
    27  certified shall be paid over by the fifteenth and the final business day
    28  of each succeeding month from such account  without  appropriation  into
    29  the general fund.
    30    §  886.  Procedural provisions. (a) General. All provisions of article
    31  twenty-two of this chapter shall apply to the provisions of this article
    32  in the same manner and with the same force and effect as if the language
    33  of article twenty-two of this chapter had been incorporated in full into
    34  this article and  had  been  specifically  adjusted  for  and  expressly
    35  referred  to  the tax imposed by this article, except to the extent that
    36  any provision is either inconsistent with a provision of this article or
    37  is  not  relevant  to  this  article.    Notwithstanding  the  preceding
    38  sentence,  no  credit  against tax in article twenty-two of this chapter
    39  can be used to offset the tax due under this article.
    40    (b) Combined filings. Notwithstanding any  other  provisions  of  this
    41  article:
    42    (1) The commissioner may require the filing of a combined return which
    43  may  also  include any of the returns required to be filed by a taxpayer
    44  pursuant to the provisions of section  six  hundred  fifty-one  of  this
    45  chapter  and which may be required to be filed by such taxpayer pursuant
    46  to any local law enacted pursuant to the authority  of  article  thirty,
    47  thirty-A or thirty-B of this chapter.
    48    (2)  Where  a  combined  return  is  required, and with respect to the
    49  payment of estimated tax, the commissioner may also require the  payment
    50  to  it  of  a  single  amount which shall equal the total of the amounts
    51  (total taxes less any credits or refunds) which would have been required
    52  to be paid with the returns or in payment of estimated tax  pursuant  to
    53  the  provisions of this article, the provisions of article twenty-two of
    54  this chapter, and the provisions of local laws enacted under the author-
    55  ity of article thirty, thirty-A or thirty-B of this chapter.

        A. 135                              4
 
     1    (3) Notwithstanding any other law to the  contrary,  the  commissioner
     2  may  require  that  all  filings  of forms or returns under this article
     3  shall be filed electronically and all payments of tax must be paid elec-
     4  tronically.
     5    § 887. Enforcement with other taxes. (a) Joint assessment. If there is
     6  assessed  a  tax  under  this  article  and there is also assessed a tax
     7  against the same taxpayer pursuant to article twenty-two of this chapter
     8  or under a local law enacted pursuant to the authority of article  thir-
     9  ty,  thirty-A,  or  thirty-B  of  this  chapter, and payment of a single
    10  amount is required under the provisions of this  article,  such  payment
    11  shall  be deemed to have been made with respect to the taxes so assessed
    12  in proportion to the amounts of such taxes due,  including  tax,  penal-
    13  ties, interest and additions to tax.
    14    (b)  Joint action. If the commissioner takes action under such article
    15  twenty-two or under a local law enacted pursuant  to  the  authority  of
    16  article  thirty,  thirty-A,  or thirty-B of this chapter with respect to
    17  the enforcement and collection of the tax or taxes assessed  under  such
    18  articles,  the  commissioner  shall,  whenever  possible  and necessary,
    19  accompany such action with a similar action  under  similar  enforcement
    20  and collection provisions of the tax imposed by this article.
    21    (c)  Apportionment  of  moneys  collected  by joint action. Any moneys
    22  collected as a result of such joint action shall be deemed to have  been
    23  collected  in  proportion  to the amounts due, including tax, penalties,
    24  interest and additions to tax, under article twenty-two of this  chapter
    25  or  under a local law enacted pursuant to the authority of article thir-
    26  ty, thirty-A, or thirty-B of this chapter and the tax  imposed  by  this
    27  article.
    28    (d)  Joint  deficiency  action.  Whenever  the  commissioner takes any
    29  action with respect to a deficiency of income tax under article  twenty-
    30  two of this chapter or under a local law enacted pursuant to the author-
    31  ity of article thirty, thirty-A, or thirty-B of this chapter, other than
    32  the action set forth in subsection (a) of this section, the commissioner
    33  may in his or her discretion accompany such action with a similar action
    34  under this article.
    35    §  2.  This act shall take effect immediately, and shall expire and be
    36  deemed repealed 5 years after such effective date.
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