Establishes the NYC under 3 act to impose a payroll tax on certain employers in the city of New York for the purposes of addressing child care affordability, accessibility, and quality for families with children under three years of age.
Summary
A07761 would create a new article in the New York Tax Law called the “NYC under 3 act.” The bill imposes a payroll tax on certain employers doing business in New York City, with rates ranging from 0.15% to 0.22% of payroll expense depending on the size of the employer’s quarterly payroll. The stated purpose is to generate a dedicated, stable funding source for child care affordability, accessibility, and quality for families with children under age three in a city with a population of one million or more, which in practice means New York City.
The tax would apply to employers with quarterly payroll expense above $625,000, while exempting certain entities such as the federal government, the United Nations, some interstate agencies, and specified nonprofit early childhood services providers. The bill also bars employers from passing the tax through to employees by deducting it from wages, and it overrides most other state-law tax exemptions unless a specific START-UP NY tax-free area exception applies. Revenue would be deposited into city-controlled accounts and then paid into the New York City general fund, after reserving amounts for refunds and administrative costs.
Impact
The bill would add a new employer payroll tax regime to the Tax Law and create new administrative, filing, payment, enforcement, and revenue-disposition rules tied to New York City. It would interact with existing state income tax and local tax procedures by allowing combined filings, electronic filing and payment requirements, and coordinated enforcement with other state and local taxes. It would also direct the resulting revenue to the City of New York rather than the state, while limiting the use of existing tax credits to offset the new liability.
Sentiment
No committee transcript or recorded vote information was provided, so there is no documented legislative debate or roll-call sentiment to assess. Based on the bill text alone, the measure appears to be framed as a child care funding proposal intended to support families with very young children, suggesting a policy rationale centered on affordability and access. The absence of recorded opposition or support in the supplied materials means the overall sentiment cannot be measured from the available history.
Contention
The main likely point of contention is the creation of a new payroll tax on employers in New York City, especially because it applies only to businesses above a relatively low payroll threshold and cannot be passed through to workers. Employers, business groups, and professional employer organizations may object to the added labor cost and administrative complexity, while supporters are likely to emphasize the dedicated funding for child care. Another possible issue is the bill’s broad override of other tax exemptions, though it preserves a narrow exception for certain START-UP NY tax-free areas.
Establishes the NYC under 3 act to impose a payroll tax on certain employers in the city of New York for the purposes of addressing child care affordability, accessibility, and quality for families with children under three years of age.
Establishes a payroll tax in the counties of Onondaga, Madison, Cortland, Oswego and Cayuga on certain employers for the purposes of addressing child care affordability, accessibility, and quality for families with children under three years of age.
Establishes the Early Learning Child Care Act to impose a payroll tax on certain employers for the purposes of addressing child care affordability, accessibility, and quality for families with children under five years of age; establishes the early learning child care fund; establishes the early learning child care program to provide subsidies to covered children to attend early learning child care programs; establishes the New York state child care board.
Establishes the Early Learning Child Care Act to impose a payroll tax on certain employers for the purposes of addressing child care affordability, accessibility, and quality for families with children under five years of age; establishes the early learning child care fund; establishes the early learning child care program to provide subsidies to covered children to attend early learning child care programs; establishes the New York state child care board.
Provides child tax credit for taxpayers with children ages six to 11 and increases amount of credit for taxpayers with children under 12 over period of two years.
Provides child tax credit for taxpayers with children ages six to 11 and increases amount of credit for taxpayers with children under 12 over period of two years.
Establishes a prekindergarten seat finder to support families in accessing high quality early childhood education programs for three (3) and four (4) year old children.