Places a limit on the personal income tax levy by New York state.
Summary
This bill would add a new section to the New York Tax Law establishing a cap on the state’s personal income tax levy beginning with fiscal years after 2025. The cap would be calculated using the prior year’s levy, an allowable growth factor tied to inflation, and any limited carryover from unused levy capacity in the prior year. In practical terms, the bill is designed to constrain how much the state can raise through personal income taxes from year to year.
If the state’s actual personal income tax levy exceeds the limit by more than 1 percent, the bill requires the excess to be rebated to individual filers in equal amounts, subject to each filer’s tax paid for that year. If the overage is less than 1 percent, the excess must be placed in reserve and used to reduce the following year’s levy. The bill also directs that rebates be issued by check no later than September 1 following the end of the fiscal year.
Impact
The bill would create a new statutory limit on state personal income tax collections and add a formula-based levy cap to the Tax Law. It would affect state budget planning, revenue forecasting, and the timing and amount of personal income tax receipts, while also creating new rebate and reserve procedures administered with oversight from the state comptroller. Taxpayers, especially individual income tax filers, would be directly affected by any required rebates if the state exceeds the cap.
Sentiment
Based on the bill text and the absence of committee discussion or recorded votes, the available context suggests a straightforward policy proposal rather than a contested measure in the record provided. The bill’s structure indicates support for tax limitation and taxpayer relief, with an emphasis on restraining revenue growth and returning excess collections to filers. No contrary viewpoints are documented in the supplied materials.
Contention
The main policy tension is between limiting state revenue growth and preserving budget flexibility. Supporters would likely favor the cap as a taxpayer protection and inflation-adjusted restraint on government growth, while opponents could argue that tying revenue to a levy limit and mandatory rebates may reduce the state’s ability to respond to fiscal needs, economic downturns, or unexpected costs. The bill also raises administrative questions about calculating the cap, managing reserves, and distributing rebates fairly and efficiently.
Establishes a personal income tax credit for not more than one thousand dollars for certain tolls paid by a taxpayer in the course of commuting on toll roads in the state of New York.