Signed by Governor David Paterson

Vote Smart's Synopsis:

Vote to pass a bill that amends various existing laws to implement the state fiscal plan, including, but not limited to, the following highlights.

Highlights:

-Restructures the top income tax brackets and tax rates for singles, married individuals filing separate returns, and estates and trusts, as follows (Part Z-1):

-Existing law:
-$973 plus 6.85 percent of income over $20,000 for incomes over $20,000;
-New law:
-$973 plus 6.85 percent of income over $20,000 for incomes over $20,000 but not over $200,000; -$13,303 plus 7.85 percent of income over $200,000 for incomes over $200,000 but not over $500,000; and -$36,853 plus 8.97 percent of income over $500,000 for incomes over $500,000.

-Restructures the top income tax brackets and tax rates for married individuals filing joint returns and surviving spouses as follows (Part Z-1):

-Existing law:
-$1,946 plus 6.85 percent of income over $40,000 for incomes over $40,000;
-New law:
-$1,946 plus 6.85 percent of income over $40,000 for incomes over $40,000 but not over $300,000; -$19,756 plus 7.85 percent of income over $300,000 for incomes over $300,000 but not over $500,000; and -$35,456 plus 8.97 percent of income over $500,000 for incomes over $500,000.

-Restructures the top income tax brackets and tax rates for heads of households as follows (Part Z-1):

-Existing law:
-$1,492 plus 6.85 percent of income over $30,000 for incomes over $30,000;
-New law:
-$1,492 plus 6.85 percent of income over $30,000 for incomes over $30,000 but not over $250,000; -$16,562 plus 7.85 percent of income over $250,000 for incomes over $250,000 but not over $500,000; and -$36,187 plus 8.97 percent of income over $500,000 for incomes over $500,000.

-Increases the minimum annual underpayment rate for income tax, corporate tax, and franchise tax from 6 percent to 7.5 percent of the amount of underpayment (Part V-1). -Establishes the following penalties for violations related to mandatory tax records (Part V-1):

-A fine of up to $1,000 for the first quarterly period in which an individual fails to make available these records to the Commissioner of the Department of Taxation, and a fine of up to $5,000 for each quarterly period thereafter; -A fine of up to $1,000 for each quarterly period in which an individual fails to make available these records to the Commissioner in an auditable form; and -A fine of up to $5,000 for each quarterly period in which an individual who elects to maintain an electronic format of a portion or all of these records fails to make such records available to the Commissioner in an electronic format.

-Requires nonresidents to include as a source of income for taxation purposes any interest in a partnership, limited liability corporation, S corporation, or non-publicly traded C corporation with 100 or fewer shareholders that owns property in the State of New York and has a fair market value that is equaled to at least 50 percent of the all the assets of the entity on the date of sale or exchange of the individual's interest in the entity (Part F-1). -Increases the tax on the sale of all tobacco products other than snuff from 37 percent to 46 percent of the wholesale price (Part M-1). -Increases the rate of the prepaid sales tax on cigarettes paid by cigarette agents from 7 percent to 8 percent of the base retail price (rounded to the nearest whole percent) (Part M-1). -Increases the tax on the sale of beer from $0.11 to $0.14 per gallon (Part X-1). -Increases the tax on the sale of wine, except for cider containing more than 3.2 percent alcohol by volume, from $0.1893 to $0.30 per gallon (Part X-1). -Increases the tax on on passenger car rentals from 5 percent to 6 percent of the sales price (Part R-1). -Eliminates the tax credit for fuel cell electric generating equipment expenditures, equal to the total expenditures for business and 20 percent of expenditures for individuals, provided that the credit does not exceed $1,500 per generating unit (Part C-1). -Eliminates the tax credit for contributions of $10 million or more to a qualified transportation improvement project, equal to 6 percent of the individual's increased qualified business facility payroll, provided that such credit does not exceed the contribution amount (Part C-1). -Reduces the State School Tax Reduction Credit as follows (Part M):

-For married individuals filing separate returns and heads of households, the credit is reduced from $155 in 2009 and $167.50 each year thereafter to $62.50 in 2009 and each year thereafter; and -For married individuals filing joint returns and surviving spouses, the credit is reduced from $310 in 2009 and $335 for each year thereafter to $125 in 2009 and each year thereafter.

-Amends the Empire State Film Production Credit as follows (Part Y-1):

-Increases the aggregate amount of tax credits allowable by $350 million; -Require any tax credit that is at least $1 million but not over $5 million to be claimed over a two year period; and -Requires any tax credit that is at least $5 million to be claimed over a 3 year period.

-Expands the definition of "insurance corporation," with respect to the franchise tax on insurance corporations, to include Health Maintenance Organizations that are required to receive a certificate of authority (Part B-1). -Establishes the Continental Airlines Flight 3407 Memorial Scholarship in which children, spouses and financial dependents of individual's who died as a result of the crash of Continental Airlines flight 3407 in Clarence, New York on February 12, 2009 shall be eligible for a scholarship equal to an amount determined in accordance with the World Trade Center Memorial Scholarship (Part EE). -Establishes the New York Higher Education Loan Program to provide education loans to U.S. citizens, documented immigrants, and refugees paroled by the U.S. Attorney General, with a preference being given to individuals that demonstrate financial need based on their family's gross income, with the following eligibility requirements (Part V):

-Apply for and exhaust the maximum eligibility of loans under the Federal Family Education Loan Program, Federal Direct Student Loan Program (excluding PLUS loans), and any other aid provided by the federal government (excluding HEAL loans) or state government; -Complete a financial literacy course; -Apply for loans under this program with an eligible co-signer; -Not be in default on a separate education loan under this program, the Federal Family Education Loan Program or Williams D. Ford program; and -Participation agreement between the program and the education institution, lending institution, and other participants.

-Expands the definition of "income" for the purposes of determining financial need for education awards to include all income from pensions of New York state, local governments and the federal government (Part F). -Allocates revenue generated by the tuition increase to the city university and state university respectively as follows (Part GG):

-20 percent for the 2009-2010 academic year; -30 percent for the 2010-2011 academic year; -40 percent for the 2011-2012 academic year; and -50 percent for the 2012-2013 academic year.

-Authorizes the Office of Children and Family Services to close the following facilities for the purposes of aligning their capacity with their facility and service needs any time during the period of April 1, 2009 through March 31, 2010 (Part W):

-Great Valley Residential Center; -Cattaraugus Residential Center; -Adirondack Residential Center; -Rochester Community Residential Home; -Syracuse Community Residential Home; -Albany Evening Reporting Center; -Syracuse Evening Reporting Center; -Buffalo Evening Reporting Center; and -Pyramid Reception Center.

-Authorizes the Office of Children and Family Services to downsize the Tryon Residential Center and Allen Residential Center for the purposes of aligning their capacity with their facility and service needs any time during the period of April 1, 2009 through March 31, 2010 (Part W). -Increases the standards of monthly need for monthly grants and allowances of public assistance to households, which serves as both a maximum monthly income level for households to be eligible for the assistance and the amount of assistance that will be provided by the state (Part Y):

-Existing law:
-$112 per month for households consisting of one individual; -$179 per month for households consisting of two individuals; -$238 per month for households consisting of three individuals; -$307 per month for households consisting of four individuals; -$379 per month for households consisting of five individuals; -$438 per month for households consisting of six individuals; and -For each additional individual in the household, supplement $60 per individual;
-New law, beginning July 1, 2009:
-$126 per month for households consisting of one individual; -$201 per month for households consisting of two individuals; -$268 per month for households consisting of three individuals; -$345 per month for households consisting of four individuals; -$426 per month for households consisting of five individuals; -$492 per month for households consisting of six individuals; and -For each additional individual in the household, supplement $67 per individual;
-New law, beginning July 1, 2010:
-$141 per month for households consisting of one individual; -$225 per month for households consisting of two individuals; -$300 per month for households consisting of three individuals; -$386 per month for households consisting of four individuals; -$477 per month for households consisting of five individuals; -$551 per month for households consisting of six individuals; and -For each additional individual in the household, supplement $75 per individual;
-New law, beginning July 1, 2011:
-$158 per month for households consisting of one individual; -$252 per month for households consisting of two individuals; -$335 per month for households consisting of three individuals; -$432 per month for households consisting of four individuals; -$533 per month for households consisting of five individuals; -$616 per month for households consisting of six individuals; and -For each additional individual in the household, supplement $84 per individual.

-Increases the base amounts of monthly personal allowances, not including cost of living adjustments, granted to individuals receiving family care, residential care or school care for the mentally retarded, or enhanced residential care as follows (Part U):

-Increases the base amount for individual's receiving family care from $123 to $130 per month; -Increases the base amount for individual's receiving residential care from $142 to $150 per month; and -Increases the base amount for individual's receiving enhanced residential care from $159 to $178 per month.

-Increases the maximum monthly income levels for individuals and couples that are blind, disabled, or aged 65 and older to be eligible for additional state payments to individuals (Part U):

-Increases the amount for individuals living alone from $724 to $761 per month; -Increases the amount for couples living alone $1060 to $1057 per month; -Increases the amount for individuals living with others or without in-kind income from $660 to $697 per month; -Increases the amount for couples living with others or without in-kind income from $1002 to $1057 per month; -Increases the amount for individuals receiving family care in New York City or the counties of Nassau, Suffolk, Westchester or Rockland from $903.48 to $940.48 per month; -Increases the amount for couples receiving family care in New York City or the counties of Nassau, Suffolk, Westchester or Rockland from $1,806.96 to $1880.96 per month; -Increases the amount for individuals receiving family care outside of New York City or the counties of Nassau, Suffolk, Westchester or Rockland from $865.48 to $902.48 per month; -Increases the amount for couples receiving family care outside of New York City or the counties of Nassau, Suffolk, Westchester or Rockland from $1,730.96 to $1,804.96 per month; -Increases the amount for individuals receiving residential care in New York City or the counties of Nassau, Suffolk, Westchester or Rockland from $1,072 to $1,109 per month; -Increases the amount for couples receiving residential care in New York City or the counties of Nassau, Suffolk, Westchester or Rockland from $2,144 to $2,218 per month; -Increases the amount for individuals receiving residential care outside of New York City or the counties of Nassau, Suffolk, Westchester or Rockland from $1,042 to $1,079 per month; -Increases the amount for couples receiving residential care outside of New York City or the counties of Nassau, Suffolk, Westchester or Rockland from $2,084 to $2,158 per month; -Increases the amount of individuals receiving enhanced residential care from $1,293 to $1,368 per month; and -Increases the amount of couples receiving enhanced residential care from $2,568 to $2,736 per month.

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that amends various existing laws to implement the state fiscal plan, including, but not limited to, the following highlights.

Highlights:

-Restructures the top income tax brackets and tax rates for singles, married individuals filing separate returns, and estates and trusts, as follows (Part Z-1):

-Existing law:
-$973 plus 6.85 percent of income over $20,000 for incomes over $20,000;
-New law:
-$973 plus 6.85 percent of income over $20,000 for incomes over $20,000 but not over $200,000; -$13,303 plus 7.85 percent of income over $200,000 for incomes over $200,000 but not over $500,000; and -$36,853 plus 8.97 percent of income over $500,000 for incomes over $500,000.

-Restructures the top income tax brackets and tax rates for married individuals filing joint returns and surviving spouses as follows (Part Z-1):

-Existing law:
-$1,946 plus 6.85 percent of income over $40,000 for incomes over $40,000;
-New law:
-$1,946 plus 6.85 percent of income over $40,000 for incomes over $40,000 but not over $300,000; -$19,756 plus 7.85 percent of income over $300,000 for incomes over $300,000 but not over $500,000; and -$35,456 plus 8.97 percent of income over $500,000 for incomes over $500,000.

-Restructures the top income tax brackets and tax rates for heads of households as follows (Part Z-1):

-Existing law:
-$1,492 plus 6.85 percent of income over $30,000 for incomes over $30,000;
-New law:
-$1,492 plus 6.85 percent of income over $30,000 for incomes over $30,000 but not over $250,000; -$16,562 plus 7.85 percent of income over $250,000 for incomes over $250,000 but not over $500,000; and -$36,187 plus 8.97 percent of income over $500,000 for incomes over $500,000.

-Increases the minimum annual underpayment rate for income tax, corporate tax, and franchise tax from 6 percent to 7.5 percent of the amount of underpayment (Part V-1). -Establishes the following penalties for violations related to mandatory tax records (Part V-1):

-A fine of up to $1,000 for the first quarterly period in which an individual fails to make available these records to the Commissioner of the Department of Taxation, and a fine of up to $5,000 for each quarterly period thereafter; -A fine of up to $1,000 for each quarterly period in which an individual fails to make available these records to the Commissioner in an auditable form; and -A fine of up to $5,000 for each quarterly period in which an individual who elects to maintain an electronic format of a portion or all of these records fails to make such records available to the Commissioner in an electronic format.

-Requires nonresidents to include as a source of income for taxation purposes any interest in a partnership, limited liability corporation, S corporation, or non-publicly traded C corporation with 100 or fewer shareholders that owns property in the State of New York and has a fair market value that is equaled to at least 50 percent of the all the assets of the entity on the date of sale or exchange of the individual's interest in the entity (Part F-1). -Increases the tax on the sale of all tobacco products other than snuff from 37 percent to 46 percent of the wholesale price (Part M-1). -Increases the rate of the prepaid sales tax on cigarettes paid by cigarette agents from 7 percent to 8 percent of the base retail price (rounded to the nearest whole percent) (Part M-1). -Increases the tax on the sale of beer from $0.11 to $0.14 per gallon (Part X-1). -Increases the tax on the sale of wine, except for cider containing more than 3.2 percent alcohol by volume, from $0.1893 to $0.30 per gallon (Part X-1). -Increases the tax on on passenger car rentals from 5 percent to 6 percent of the sales price (Part R-1). -Eliminates the tax credit for fuel cell electric generating equipment expenditures, equal to the total expenditures for business and 20 percent of expenditures for individuals, provided that the credit does not exceed $1,500 per generating unit (Part C-1). -Eliminates the tax credit for contributions of $10 million or more to a qualified transportation improvement project, equal to 6 percent of the individual's increased qualified business facility payroll, provided that such credit does not exceed the contribution amount (Part C-1). -Reduces the State School Tax Reduction Credit as follows (Part M):

-For married individuals filing separate returns and heads of households, the credit is reduced from $155 in 2009 and $167.50 each year thereafter to $62.50 in 2009 and each year thereafter; and -For married individuals filing joint returns and surviving spouses, the credit is reduced from $310 in 2009 and $335 for each year thereafter to $125 in 2009 and each year thereafter.

-Amends the Empire State Film Production Credit as follows (Part Y-1):

-Increases the aggregate amount of tax credits allowable by $350 million; -Require any tax credit that is at least $1 million but not over $5 million to be claimed over a two year period; and -Requires any tax credit that is at least $5 million to be claimed over a 3 year period.

-Expands the definition of "insurance corporation," with respect to the franchise tax on insurance corporations, to include Health Maintenance Organizations that are required to receive a certificate of authority (Part B-1). -Establishes the Continental Airlines Flight 3407 Memorial Scholarship in which children, spouses and financial dependents of individual's who died as a result of the crash of Continental Airlines flight 3407 in Clarence, New York on February 12, 2009 shall be eligible for a scholarship equal to an amount determined in accordance with the World Trade Center Memorial Scholarship (Part EE). -Establishes the New York Higher Education Loan Program to provide education loans to U.S. citizens, documented immigrants, and refugees paroled by the U.S. Attorney General, with a preference being given to individuals that demonstrate financial need based on their family's gross income, with the following eligibility requirements (Part V):

-Apply for and exhaust the maximum eligibility of loans under the Federal Family Education Loan Program, Federal Direct Student Loan Program (excluding PLUS loans), and any other aid provided by the federal government (excluding HEAL loans) or state government; -Complete a financial literacy course; -Apply for loans under this program with an eligible co-signer; -Not be in default on a separate education loan under this program, the Federal Family Education Loan Program or Williams D. Ford program; and -Participation agreement between the program and the education institution, lending institution, and other participants.

-Expands the definition of "income" for the purposes of determining financial need for education awards to include all income from pensions of New York state, local governments and the federal government (Part F). -Allocates revenue generated by the tuition increase to the city university and state university respectively as follows (Part GG):

-20 percent for the 2009-2010 academic year; -30 percent for the 2010-2011 academic year; -40 percent for the 2011-2012 academic year; and -50 percent for the 2012-2013 academic year.

-Authorizes the Office of Children and Family Services to close the following facilities for the purposes of aligning their capacity with their facility and service needs any time during the period of April 1, 2009 through March 31, 2010 (Part W):

-Great Valley Residential Center; -Cattaraugus Residential Center; -Adirondack Residential Center; -Rochester Community Residential Home; -Syracuse Community Residential Home; -Albany Evening Reporting Center; -Syracuse Evening Reporting Center; -Buffalo Evening Reporting Center; and -Pyramid Reception Center.

-Authorizes the Office of Children and Family Services to downsize the Tryon Residential Center and Allen Residential Center for the purposes of aligning their capacity with their facility and service needs any time during the period of April 1, 2009 through March 31, 2010 (Part W). -Increases the standards of monthly need for monthly grants and allowances of public assistance to households, which serves as both a maximum monthly income level for households to be eligible for the assistance and the amount of assistance that will be provided by the state (Part Y):

-Existing law:
-$112 per month for households consisting of one individual; -$179 per month for households consisting of two individuals; -$238 per month for households consisting of three individuals; -$307 per month for households consisting of four individuals; -$379 per month for households consisting of five individuals; -$438 per month for households consisting of six individuals; and -For each additional individual in the household, supplement $60 per individual;
-New law, beginning July 1, 2009:
-$126 per month for households consisting of one individual; -$201 per month for households consisting of two individuals; -$268 per month for households consisting of three individuals; -$345 per month for households consisting of four individuals; -$426 per month for households consisting of five individuals; -$492 per month for households consisting of six individuals; and -For each additional individual in the household, supplement $67 per individual;
-New law, beginning July 1, 2010:
-$141 per month for households consisting of one individual; -$225 per month for households consisting of two individuals; -$300 per month for households consisting of three individuals; -$386 per month for households consisting of four individuals; -$477 per month for households consisting of five individuals; -$551 per month for households consisting of six individuals; and -For each additional individual in the household, supplement $75 per individual;
-New law, beginning July 1, 2011:
-$158 per month for households consisting of one individual; -$252 per month for households consisting of two individuals; -$335 per month for households consisting of three individuals; -$432 per month for households consisting of four individuals; -$533 per month for households consisting of five individuals; -$616 per month for households consisting of six individuals; and -For each additional individual in the household, supplement $84 per individual.

-Increases the base amounts of monthly personal allowances, not including cost of living adjustments, granted to individuals receiving family care, residential care or school care for the mentally retarded, or enhanced residential care as follows (Part U):

-Increases the base amount for individual's receiving family care from $123 to $130 per month; -Increases the base amount for individual's receiving residential care from $142 to $150 per month; and -Increases the base amount for individual's receiving enhanced residential care from $159 to $178 per month.

-Increases the maximum monthly income levels for individuals and couples that are blind, disabled, or aged 65 and older to be eligible for additional state payments to individuals (Part U):

-Increases the amount for individuals living alone from $724 to $761 per month; -Increases the amount for couples living alone $1060 to $1057 per month; -Increases the amount for individuals living with others or without in-kind income from $660 to $697 per month; -Increases the amount for couples living with others or without in-kind income from $1002 to $1057 per month; -Increases the amount for individuals receiving family care in New York City or the counties of Nassau, Suffolk, Westchester or Rockland from $903.48 to $940.48 per month; -Increases the amount for couples receiving family care in New York City or the counties of Nassau, Suffolk, Westchester or Rockland from $1,806.96 to $1880.96 per month; -Increases the amount for individuals receiving family care outside of New York City or the counties of Nassau, Suffolk, Westchester or Rockland from $865.48 to $902.48 per month; -Increases the amount for couples receiving family care outside of New York City or the counties of Nassau, Suffolk, Westchester or Rockland from $1,730.96 to $1,804.96 per month; -Increases the amount for individuals receiving residential care in New York City or the counties of Nassau, Suffolk, Westchester or Rockland from $1,072 to $1,109 per month; -Increases the amount for couples receiving residential care in New York City or the counties of Nassau, Suffolk, Westchester or Rockland from $2,144 to $2,218 per month; -Increases the amount for individuals receiving residential care outside of New York City or the counties of Nassau, Suffolk, Westchester or Rockland from $1,042 to $1,079 per month; -Increases the amount for couples receiving residential care outside of New York City or the counties of Nassau, Suffolk, Westchester or Rockland from $2,084 to $2,158 per month; -Increases the amount of individuals receiving enhanced residential care from $1,293 to $1,368 per month; and -Increases the amount of couples receiving enhanced residential care from $2,568 to $2,736 per month.

Full Bill Text