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A10266 Summary:

BILL NOA10266
 
SAME ASSAME AS S08038
 
SPONSORFarrell
 
COSPNSR
 
MLTSPNSR
 
Amd 11-514 & 11-527, NYC Ad Cd
 
Relates to taxation of unincorporated businesses.
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A10266 Memo:

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.
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A10266 Text:



 
                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.
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