Enacts the "Empire State Windfall Profits Tax Act", establishing an excise tax on the quarterly receipts of a company experiencing a profit windfall.
This bill, titled the "Empire State Windfall Profits Tax Act," would create a new quarterly excise tax on certain businesses that are deemed to be "covered taxpayers" in New York. The tax is aimed at receipts from retail sales of tangible personal property, services, production, and manufacturing by businesses operating in the state, with the tax rate tied to profits above a baseline average from 2018 through 2022. In effect, the measure is designed to capture a portion of what the sponsor characterizes as windfall profits, particularly during periods of unusually high earnings.
The bill also establishes a new state fund, the "Protect New Yorkers from Surges Fund," into which the tax revenues would be deposited. Those funds would then be used to provide rebates and credits to eligible New York residents, with special rules for advance refunds, joint returns, income-based phaseouts, and administrative procedures for the commissioner of taxation and finance. The bill further authorizes municipalities to opt in to a similar local excise tax for the applicable period, making the proposal potentially broader than a state-only tax.
In addition to the tax and rebate structure, the bill amends the state finance law to create the dedicated fund and directs that money collected under the tax be administered through that fund. It also requires the tax department to issue regulations, maintain records, process returns, and conduct outreach so taxpayers can learn about and claim any available refunds or credits. The measure takes effect immediately and applies to calendar quarters beginning on or after enactment.
The overall sentiment reflected in the available materials is limited because there are no committee transcripts or recorded votes provided. Based on the bill text and caption, the measure appears to be framed as a consumer relief and revenue-raising proposal, with the stated purpose of offsetting surges in costs by taxing extraordinary corporate profits and returning money to residents. Because there is no recorded debate in the supplied context, no clear support or opposition can be attributed to specific lawmakers or stakeholders from the available record.
The main points of potential contention are likely to be the breadth of the tax base, the definition of covered taxpayers, and the administrative complexity of calculating profits, rebates, and advance refunds. Businesses subject to article 9, 9-A, or 13-A taxes would likely be the primary affected parties, while municipalities could also be drawn into the policy if they choose to adopt the local option. The bill’s design may raise questions about compliance burdens, revenue volatility, and whether the tax would be viewed as a targeted windfall levy or a broader business tax increase.
The bill would add a new section 1105-c to the Tax Law imposing a quarterly windfall profits excise tax on covered taxpayers and would add section 99-ss to the State Finance Law to create a dedicated fund for the proceeds. It would affect businesses operating in New York that are subject to the specified corporate tax articles, and it would also create a rebate/credit mechanism for eligible resident individuals. The Department of Taxation and Finance would be responsible for administering the tax, issuing regulations, collecting and depositing revenues, and distributing credits or refunds. Municipalities would be permitted, but not required, to impose a similar local tax by local law, ordinance, or resolution.
No committee transcript or vote record was provided, so there is no documented legislative debate or roll-call sentiment to summarize. From the bill’s structure and caption, the proposal appears intended as a populist revenue measure aimed at taxing extraordinary corporate profits and returning funds to residents, suggesting a pro-consumer framing. At the same time, the absence of recorded support or opposition means the available context does not show whether the bill was viewed favorably or skeptically by legislators or stakeholders.
Likely points of contention include whether the tax is a true windfall profits tax or an additional business excise tax, how broadly "covered taxpayer" is defined, and whether the profit baseline and quarterly calculation are workable in practice. Businesses subject to the tax would likely object to the added burden and uncertainty, while supporters would likely emphasize the rebate and anti-price-surge purpose. Administrative issues, including recordkeeping, refund timing, income-based phaseouts, and the local-option provision for municipalities, could also be disputed.