### A05442 Summary:

BILL NO | A05442 |

SAME AS | SAME AS S01513 |

SPONSOR | Taylor |

COSPNSR | |

MLTSPNSR | |

Amd §§601 & 171-a, Tax L | |

Establishes the millionaire's tax and economic equity act; extends the top state income tax rate to 11.82% for taxpayers whose New York taxable income is over $100,000,000 and establishes new brackets below such top rate. |

### A05442 Actions:

BILL NO | A05442 | |||||||||||||||||||||||||||||||||||||||||||||||||

02/16/2021 | referred to ways and means |

### A05442 Memo:

Go to topNEW YORK STATE ASSEMBLY

MEMORANDUM IN SUPPORT OF LEGISLATION

submitted in accordance with Assembly Rule III, Sec 1(f)A5442BILL NUMBER:TaylorSPONSOR:

: An act to amend the tax law, in relation to extending the top state income tax rate, and establishing the millionaire's tax and economic equity act of 2021TITLE OF BILL: Establishes the Millionaire's Tax and Economic Equity Act of 2020 that increases the state personal income tax rates for incomes over $1 million per taxable year for the purpose of promoting economic equity and avoiding cuts in spending to public education and Medicaid.PURPOSE OR GENERAL IDEA OF BILL: This legislation would amend the Tax Law by raising the personal income tax rates for those making over $1 million per taxable year. For incomes from $1 million up to $5 million, the tax rate increases from 6.8545/8.82% up to 9.62%. For incomes from $5 million to $10 million, the tax rate increases from 8.82% to 10.32%. For incomes from $10 million up to $100 million, the tax rate increases from 8.82% up to 11.32%. The top tax rate, which is for those with annual incomes over $100 million, increases from 8.82% to 11.82%. Half the revenue would go to public education and the other half would go to Medicaid for SFY 2020-21.SUMMARY OF PROVISIONS: This legislation would increase the state personal income tax rates for incomes over $1 million per taxable year for the purpose of promoting economic equity and avoiding cuts in spending to public education and Medicaid. Half the revenue would go to public education and the other half would go to Medicaid for SFY 2021-22.JUSTIFICATION: S.2020: S.7677 REFERRED TO BUDGET AND REVENUEPRIOR LEGISLATIVE HISTORY: This bill is estimated to increase state revenues over $4.5 billion annually.FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: This act shall take effect immediately, provided, however, that section five of this act shall take effect January 1, 2022 and shall apply to taxable years beginning on and after such date.EFFECTIVE DATE

### A05442 Text:

Go to topSTATE OF NEW YORK________________________________________________________________________ 5442 2021-2022 Regular SessionsIN ASSEMBLYFebruary 16, 2021 ___________ Introduced by M. of A. TAYLOR -- read once and referred to the Committee on Ways and Means AN ACT to amend the tax law, in relation to extending the top state income tax rate, and establishing the millionaire's tax and economic equity act of 2021The People of the State of New York, represented in Senate and Assem-1 Section 1. Short title. This act shall be known and cited as the 2 "millionaire's tax and economic equity act of 2021". 3 § 2. Clauses (iv), (v), (vi), (vii) and (viii) of subparagraph (B) of 4 paragraph 1 of subsection (a) of section 601 of the tax law, clauses 5 (iv), (v), (vi) and (vii) as amended by section 1 of part P of chapter 6 59 of the laws of 2019, and clause (viii) as added by section 1 of part 7 R of chapter 59 of the laws of 2017, are amended to read as follows: 8 (iv) For taxable years beginning in two thousand twenty-one the 9 following rates shall apply: 10 If the New York taxable income is: The tax is: 11 Not over $17,150 4% of the New York taxable income 12 Over $17,150 but not over $23,600 $686 plus 4.5% of excess over 13 $17,150 14 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over 15 $23,600 16 Over $27,900 but not over $43,000 $1,202 plus 5.9% of excess over 17 $27,900 18 Over $43,000 but not over $161,550 $2,093 plus 5.97% of excess over 19 $43,000 20 Over $161,550 but not over $323,200 $9,170 plus 6.33% of excess over 21 $161,550 22 Over $323,200 but not over $19,403 plus 6.85% of excess 23 [bly, do enact as follows:]~~$2,155,350~~over $323,200 EXPLANATION--Matter in$1,000,000(underscored) is new; matter in brackets [italics] is old law to be omitted. LBD06312-01-1A. 5442 2 1Over $1,000,000 but not over2$65,764 plus 9.62% of excess over$5,000,0003$1,000,000Over $5,000,000 but not over4$450,564 plus 10.32% of excess over$10,000,0005$5,000,000Over $10,000,000 but not over6$966,564 plus 11.32% of excess over$100,000,0007 Over [$10,000,0008~~$2,155,350 $144,905 plus 8.82% of excess over~~] 9~~$2,155,350~~$100,000,00010$11,154,564 plus 11.82% of excess11 (v) For taxable years beginning in two thousand twenty-two the follow- 12 ing rates shall apply: 13 If the New York taxable income is: The tax is: 14 Not over $17,150 4% of the New York taxable income 15 Over $17,150 but not over $23,600 $686 plus 4.5% of excess over 16 $17,150 17 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over 18 $23,600 19 Over $27,900 but not over $161,550 $1,202 plus 5.85% of excess over 20 $27,900 21 Over $161,550 but not over $323,200 $9,021 plus 6.25% of excess over 22 $161,550 23 Over $323,200 but not over $19,124 plus 24 [over $100,000,000]~~$2,155,350~~6.85% of excess over $323,200 25$1,000,000Over $1,000,000 but not over26$65,485 plus 9.62% of excess over$5,000,00027$1,000,000Over $5,000,000 but not over28$450,285 plus 10.32% of excess over$10,000,00029$5,000,000Over $10,000,000 but not over30$966,285 plus 11.32% of excess over$100,000,00031 Over [$10,000,00032~~$2,155,350 $144,626 plus 8.82% of excess over~~] 33~~$2,155,350~~$100,000,00034$11,154,285 plus 11.85% of35 (vi) For taxable years beginning in two thousand twenty-three the 36 following rates shall apply: 37 If the New York taxable income is: The tax is: 38 Not over $17,150 4% of the New York taxable income 39 Over $17,150 but not over $23,600 $686 plus 4.5% of excess over 40 $17,150 41 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over 42 $23,600 43 Over $27,900 but not over $161,550 $1,202 plus 5.73% of excess over 44 $27,900 45 Over $161,550 but not over $323,200 $8,860 plus 6.17% of excess over 46 $161,550 47 Over $323,200 but not over $18,834 plus 6.85% of 48 [excess over $100,000,000]~~$2,155,350~~excess over $323,200 49$1,000,000Over $1,000,000 but not over50$65,195 plus 9.62% of excess over$5,000,00051$1,000,000Over $5,000,000 but not over52$449,995 plus 10.32% of excess over$10,000,00053$5,000,000Over $10,000,000 but not over54$965,995 plus 11.32% of excess over$100,000,00055 Over [$10,000,00056~~$2,155,350 $144,336 plus 8.82% of excess over~~]~~$2,155,350~~A. 5442 3 1$100,000,0002$11,153,995 plus 11.82% of excess3 (vii) For taxable years beginning in two thousand twenty-four the 4 following rates shall apply: 5 If the New York taxable income is: The tax is: 6 Not over $17,150 4% of the New York taxable income 7 Over $17,150 but not over $23,600 $686 plus 4.5% of excess over 8 $17,150 9 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over 10 $23,600 11 Over $27,900 but not over $161,550 $1,202 plus 5.61% of excess over 12 $27,900 13 Over $161,550 but not over $323,200 $8,700 plus 6.09% of excess over 14 $161,550 15 Over $323,200 but not over $18,544 plus 6.85% of 16 [over $100,000,000]~~$2,155,350~~excess over $323,200 17$1,000,000Over $1,000,000 but not over18$64,905 plus 9.62% of excess over$5,000,00019$1,000,000Over $5,000,000 but not over20$449,705 plus 10.32% of excess over$10,000,00021$5,000,000Over $10,000,000 but not over22$965,705 plus 11.32% of excess over$100,000,00023 Over [$10,000,00024~~$2,155,350 $144,047 plus 8.82% of excess over~~] 25~~$2,155,350~~$100,000,00026$11,153,705 plus 11.82% of excess27 (viii) For taxable years beginning after two thousand twenty-four the 28 following rates shall apply: 29 If the New York taxable income is: The tax is: 30 Not over $17,150 4% of the New York taxable income 31 Over $17,150 but not over $23,600 $686 plus 4.5% of excess over 32 $17,150 33 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over 34 $23,600 35 Over $27,900 but not over $161,550 $1,202 plus 5.5% of excess over 36 $27,900 37 Over $161,550 but not over $323,200 $8,553 plus 6.00% of excess over 38 $161,550 39 Over $323,200over $100,000,000$18,252 plus 6.85% of 40but not overexcess over $323,200 41$1,000,000Over $1,000,000 but not over42$64,613 plus 9.62% of excess over$5,000,00043$1,000,000Over $5,000,000 but not over44$449,413 plus 10.32% of excess over$10,000,00045$5,000,000Over $10,000,000 but not over46$965,413 plus 11.32% of excess over$100,000,00047$10,000,000Over $100,000,00048$11,152,554 plus 11.82% of excess49 § 3. Clauses (iv), (v), (vi), (vii) and (viii) of subparagraph (B) of 50 paragraph 1 of subsection (b) of section 601 of the tax law, clauses 51 (iv), (v), (vi) and (vii) as amended by section 2 of part P of chapter 52 59 of the laws of 2019, and clause (viii) as added by section 2 of part 53 R of chapter 59 of the laws of 2017, are amended to read as follows: 54 (iv) For taxable years beginning in two thousand twenty-one the 55 following rates shall apply:over $100,000,000A. 5442 4 1 If the New York taxable income is: The tax is: 2 Not over $12,800 4% of the New York taxable income 3 Over $12,800 but not over $17,650 $512 plus 4.5% of excess over 4 $12,800 5 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over 6 $17,650 7 Over $20,900 but not over $32,200 $901 plus 5.9% of excess over 8 $20,900 9 Over $32,200 but not over $107,650 $1,568 plus 5.97% of excess over 10 $32,200 11 Over $107,650 but not over $269,300 $6,072 plus 6.33% of excess over 12 $107,650 13 Over $269,300 but not over $16,304 plus 6.85% of 14 []~~$1,616,450~~excess over $269,300 15$1,000,000Over $1,000,000 but not over16$66,357 plus 9.62% of excess over$5,000,00017$1,000,000Over $5,000,000 but not over18$451,157 plus 10.32% of excess over$10,000,00019$5,000,000Over $10,000,000 but not over20$967,157 plus 11.32% of excess over$100,000,00021 Over [$10,000,00022~~$1,616,450 $108,584 plus 8.82% of excess over~~] 23~~$1,616,450~~$100,000,00024$11,155,157 plus 11.82% of excess25 (v) For taxable years beginning in two thousand twenty-two the follow- 26 ing rates shall apply: 27 If the New York taxable income is: The tax is: 28 Not over $12,800 4% of the New York taxable income 29 Over $12,800 but not over $17,650 $512 plus 4.5% of excess over 30 $12,800 31 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over 32 $17,650 33 Over $20,900 but not over $107,650 $901 plus 5.85% of excess over 34 $20,900 35 Over $107,650 but not over $269,300 $5,976 plus 6.25% of excess over 36 $107,650 37 Over $269,300 but not over $16,079 plus 6.85% of excess 38 [over $100,000,000]~~$1,616,450~~over $269,300 39$1,000,000Over $1,000,000 but not over40$66,132 plus 9.62% of excess over$5,000,00041$1,000,000Over $5,000,000 but not over42$450,932 plus 10.32% of excess over$10,000,00043$5,000,000Over $10,000,000 but not over44$966,932 plus 11.32% of excess over$100,000,00045 Over [$10,000,00046~~$1,616,450 $108,359 plus 8.82% of excess over~~] 47~~$1,616,450~~$100,000,00048$11,154,932 plus 11.82% of excess49 (vi) For taxable years beginning in two thousand twenty-three the 50 following rates shall apply: 51 If the New York taxable income is: The tax is: 52 Not over $12,800 4% of the New York taxable income 53 Over $12,800 but not over $17,650 $512 plus 4.5% of excess over 54 $12,800 55 Over $17,650 but not over $20,900 $730 plus 5.25% of excess overover $100,000,000A. 5442 5 1 $17,650 2 Over $20,900 but not over $107,650 $901 plus 5.73% of excess over 3 $20,900 4 Over $107,650 but not over $269,300 $5,872 plus 6.17% of excess over 5 $107,650 6 Over $269,300 but not over $15,845 plus 6.85% of excess 7 []~~$1,616,450~~over $269,300 8$1,000,000Over $1,000,000 but not over9$65,898 plus 9.62% of excess over$5,000,00010$1,000,000Over $5,000,000 but not over11$450,698 plus 10.32% of excess over$10,000,00012$5,000,000Over $10,000,000 but not over13$966,698 plus 11.32% of excess over$100,000,00014 Over [$10,000,00015~~$1,616,450 $108,125 plus 8.82% of excess over~~] 16~~$1,616,450~~$100,000,00017$11,154,698 plus 11.82% of excess18 (vii) For taxable years beginning in two thousand twenty-four the 19 following rates shall apply: 20 If the New York taxable income is: The tax is: 21 Not over $12,800 4% of the New York taxable income 22 Over $12,800 but not over $17,650 $512 plus 4.5% of excess over 23 $12,800 24 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over 25 $17,650 26 Over $20,900 but not over $107,650 $901 plus 5.61% of excess over 27 $20,900 28 Over $107,650 but not over $269,300 $5,768 plus 6.09% of excess over 29 $107,650 30 Over $269,300 but not over $15,612 plus 6.85% of excess 31 [over $100,000,000]~~$1,616,450~~over $269,300 32$1,000,000Over $1,000,000 but not over33$65,665 plus 9.62% of excess over$5,000,00034$1,000,000Over $5,000,000 but not over35$450,465 plus 10.32% of excess over$10,000,00036$5,000,000Over $10,000,000 but not over37$966,465 plus 11.32% of excess over$100,000,00038 Over [$10,000,00039~~$1,616,450 $107,892 plus 8.82% of excess over~~] 40~~$1,616,450~~$100,000,00041$11,154,465 plus 11.82% of excess42 (viii) For taxable years beginning after two thousand twenty-four the 43 following rates shall apply: 44 If the New York taxable income is: The tax is: 45 Not over $12,800 4% of the New York taxable income 46 Over $12,800 but not over $17,650 $512 plus 4.5% of excess over 47 $12,800 48 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over 49 $17,650 50 Over $20,900 but not over $107,650 $901 plus 5.5% of excess over 51 $20,900 52 Over $107,650 but not over $269,300 $5,672 plus 6.00% of excess over 53 $107,650 54 Over $269,300over $100,000,000$15,371 plus 6.85% of 55but not overexcess over $269,300$1,000,000A. 5442 6 1Over $1,000,000 but not over2$65,424 plus 9.62% of excess over$5,000,0003$1,000,000Over $5,000,000 but not over4$ 450,224 plus 10.32% of excess over$10,000,0005$5,000,000Over $10,000,000 but not over6$966,224 plus 11.32% of excess over$100,000,0007$10,000,000Over $100,000,0008$11,154,224 plus 11.82% of excess9 § 4. Clauses (iv), (v), (vi), (vii) and (viii) of subparagraph (B) of 10 paragraph 1 of subsection (c) of section 601 of the tax law, clauses 11 (iv), (v), (vi) and (vii) as amended by section 3 of part P of chapter 12 59 of the laws of 2019, and clause (viii) as added by section 3 of part 13 R of chapter 59 of the laws of 2017, are amended to read as follows: 14 (iv) For taxable years beginning in two thousand twenty-one the 15 following rates shall apply: 16 If the New York taxable income is: The tax is: 17 Not over $8,500 4% of the New York taxable income 18 Over $8,500 but not over $11,700 $340 plus 4.5% of excess over 19 $8,500 20 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over 21 $11,700 22 Over $13,900 but not over $21,400 $600 plus 5.9% of excess over 23 $13,900 24 Over $21,400 but not over $80,650 $1,042 plus 5.97% of excess over 25 $21,400 26 Over $80,650 but not over $215,400 $4,579 plus 6.33% of excess over 27 $80,650 28 Over $215,400 but not over $13,109 plus 6.85% of excess 29 [over $100,000,000]~~$1,077,550~~over $215,400 30$1,000,000Over $1,000,000 but not over31$66,855 plus 9.62% of excess over$5,000,00032$1,000,000Over $5,000,000 but not over33$451,655 plus 10.32% of excess over$10,000,00034$5,000,000Over $10,000,000 but not over35$967,655 plus 11.32% of excess over$100,000,00036 Over [$10,000,00037~~$1,077,550 $72,166 plus 8.82% of excess over~~] 38~~$1,077,550~~$100,000,00039$11,155,655 plus 11.82% of excess40 (v) For taxable years beginning in two thousand twenty-two the follow- 41 ing rates shall apply: 42 If the New York taxable income is: The tax is: 43 Not over $8,500 4% of the New York taxable income 44 Over $8,500 but not over $11,700 $340 plus 4.5% of excess over 45 $8,500 46 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over 47 $11,700 48 Over $13,900 but not over $80,650 $600 plus 5.85% of excess over 49 $13,900 50 Over $80,650 but not over $215,400 $4,504 plus 6.25% of excess over 51 $80,650 52 Over $215,400 but not over $12,926 plus 6.85% of excess 53 [over $100,000,000]~~$1,077,550~~over $215,400 54$1,000,000Over $1,000,000 but not over55$66,672 plus 9.62% of excess over$5,000,00056$1,000,000Over $5,000,000 but not over$ 451,472 plus 10.32% of excess overA. 5442 7 1$10,000,0002$5,000,000Over $10,000,000 but not over3$967,472 plus 11.32% of excess over$100,000,0004 Over [$10,000,0005~~$1,077,550 $71,984 plus 8.82% of excess over~~] 6~~$1,077,550~~$100,000,0007$11,155,472 plus 11.82% of excess8 (vi) For taxable years beginning in two thousand twenty-three the 9 following rates shall apply: 10 If the New York taxable income is: The tax is: 11 Not over $8,500 4% of the New York taxable income 12 Over $8,500 but not over $11,700 $340 plus 4.5% of excess over 13 $8,500 14 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over 15 $11,700 16 Over $13,900 but not over $80,650 $600 plus 5.73% of excess over 17 $13,900 18 Over $80,650 but not over $215,400 $4,424 plus 6.17% of excess over 19 $80,650 20 Over $215,400 but not over $12,738 plus 6.85% of excess 21 [over $100,000,000]~~$1,077,550~~over $215,400 22$1,000,000Over $1,000,000 but not over23$66,484 plus 9.62% of excess over$5,000,00024$1,000,000Over $5,000,000 but not over25$ 451,284 plus 10.32% of excess over$10,000,00026$5,000,000Over $10,000,000 but not over27$967,284 plus 11.32% of excess over$100,000,00028 Over [$10,000,00029~~$1,077,550 $71,796 plus 8.82% of excess over~~] 30~~$1,077,550~~$100,000,00031$11,155,284 plus 11.82% of excess32 (vii) For taxable years beginning in two thousand twenty-four the 33 following rates shall apply: 34 If the New York taxable income is: The tax is: 35 Not over $8,500 4% of the New York taxable income 36 Over $8,500 but not over $11,700 $340 plus 4.5% of excess over 37 $8,500 38 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over 39 $11,700 40 Over $13,900 but not over $80,650 $600 plus 5.61% of excess over 41 $13,900 42 Over $80,650 but not over $215,400 $4,344 plus 6.09% of excess over 43 $80,650 44 Over $215,400 but not over $12,550 plus 6.85% of excess 45 [over $100,000,000]~~$1,077,550~~over $215,400 46$1,000,000Over $1,000,000 but not over47$66,296 plus 9.62% of excess over$5,000,00048$1,000,000Over $5,000,000 but not over49$ 451,096 plus 10.32% of excess over$10,000,00050$5,000,000Over $10,000,000 but not over51$967,096 plus 11.32% of excess over$100,000,00052 Over [$10,000,00053~~$1,077,550 $71,608 plus 8.82% of excess over~~] 54~~$1,077,550~~$100,000,00055$11,155,096 plus 11.82% of excessover $100,000,000A. 5442 8 1 (viii) For taxable years beginning after two thousand twenty-four the 2 following rates shall apply: 3 If the New York taxable income is: The tax is: 4 Not over $8,500 4% of the New York taxable income 5 Over $8,500 but not over $11,700 $340 plus 4.5% of excess over 6 $8,500 7 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over 8 $11,700 9 Over $13,900 but not over $80,650 $600 plus 5.50% of excess over 10 $13,900 11 Over $80,650 but not over $215,400 $4,271 plus 6.00% of excess over 12 $80,650 13 Over $215,400$12,356 plus 6.85% of 14but not overexcess over $215,400 15$1,000,000Over $1,000,000 but not over16$66,102 plus 9.62% of excess over$5,000,00017$1,000,000Over $5,000,000 but not over18$450,902 plus 10.32% of excess over$10,000,00019$5,000,000Over $10,000,000 but not over20$966,902 plus 11.32% of excess over$100,000,00021$10,000,000Over $100,000,00022$11,154,902 plus 11.82% of excess23 § 5. Section 171-a of the tax law, as separately amended by chapters 24 481 and 484 of the laws of 1981, is amended by adding a new subdivision 25 3 to read as follows: 26over $100,000,000273. Notwithstanding subdivision one of this section or any other28provision of law to the contrary, with regards to any increase in the29taxes imposed pursuant to section six hundred one of this chapter30attributable to the difference in the rate of such taxes for taxable31years beginning in and after two thousand twenty-one and the rate of32such taxes for taxable years beginning in two thousand twenty, fifty33percent shall be deposited in the state lottery fund, created pursuant34to section ninety-two-c of the state finance law, and fifty percent35shall be deposited with the New York state department of health for36medicaid expenses, as such taxes are received. The amount for adminis-37trative costs shall be determined by the commissioner to represent38reasonable costs of the department in administering, collecting, deter-39mining, and distributing such taxes. Of the total revenue collected or40received under such sections of this chapter, the comptroller shall41retain in his or her hands such amount as the commissioner may determine42to be necessary for refunds or reimbursements under such sections of43this chapter out of which amount the comptroller shall pay any refunds44or reimbursements to which taxpayers shall be entitled under provisions45of such sections. The commissioner and the comptroller shall maintain a46system of accounts showing the amount of revenue collected or received47 § 6. This act shall take effect immediately and shall apply to taxable 48 years beginning on and after such date.from each of the taxes imposed by such sections.