STATE OF NEW YORK
________________________________________________________________________
2833
2021-2022 Regular Sessions
IN SENATE
January 25, 2021
___________
Introduced by Sen. HOYLMAN -- read twice and ordered printed, and when
printed to be committed to the Committee on Budget and Revenue
AN ACT to amend the tax law, in relation to the imposition of additional
tax on certain business income and on business income included in an
individual's New York taxable income
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 two new sections 209-N and
2 608 to read as follows:
3 § 209-N. Additional tax. 1. There is imposed an additional tax on a
4 taxpayer's business income base, as defined in section two hundred ten
5 of this article, at a rate equal to the difference between (i) the rate
6 of tax imposed in subparagraph (b) of paragraph one of section 11 of the
7 Internal Revenue Code (26 U.S. Code § 11(1)(b)), as in effect for the
8 year two thousand sixteen, and (ii) the current rate of tax imposed in
9 paragraph (b) of section 11 of the Internal Revenue Code (26 U.S. Code §
10 11(1)(b)).
11 2. The additional tax under this section shall be administered, and
12 penalties shall be imposed, under the same provisions of this article as
13 the tax imposed under section two hundred nine of this article.
14 § 608. Additional tax. 1. There is imposed an additional tax upon the
15 amount of an individual's New York taxable income that corresponds to
16 any deduction taken pursuant to section 199A of the Internal Revenue
17 Code (26 U.S. Code § 199A), or any successor provision thereto. This
18 section shall not apply to a taxpayer with a federal taxable income
19 below the threshold amount, as defined in section 199A(e) of the Inter-
20 nal Revenue Code, plus fifty thousand dollars for single filers or one
21 hundred thousand dollars in the case of a joint return.
22 2. The rate of such additional tax shall be equal to the highest
23 federal income tax rates in effect for the taxable year that would apply
24 to the amount deducted under section 199A of the Internal Revenue Code
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD07723-01-1
S. 2833 2
1 (26 U.S. Code § 199A), or any successor provision thereto, but for the
2 application of such section.
3 3. The amount of an individual's New York taxable income that corre-
4 sponds to the amount of any deduction taken pursuant to section 199A of
5 the Internal Revenue Code (26 U.S. Code § 199A) is the amount that bears
6 the same relationship to the taxpayer's total New York taxable income as
7 the amount deducted under section 199A of the Internal Revenue Code (26
8 U.S. Code § 199A) bears to the taxpayer's total federal taxable income
9 as determined without regard to such deduction.
10 4. The additional tax under this section shall be administered, and
11 penalties shall be imposed, in the same manner as the other taxes
12 imposed by this article.
13 § 2. This act shall take effect immediately and shall apply to tax
14 year 2021.
