Bill > S01662

This bill authorizes cities with a population of one million or more (effectively New York City) to impose a new tax surcharge specifically dedicated to funding early childhood education programs. The surcharge would be applied to city residents' taxable income, with a 4.3% rate for incomes over $500,000, starting in tax year 2026. Cities can choose to implement the surcharge at a lower rate or with multiple rates based on filing status and income level. The revenue generated must be exclusively used for early childhood education programs and will be collected and administered similarly to existing city taxes. The local law establishing the surcharge must be enacted by December 31, 2025, and a copy must be sent to the state department. The bill includes a sunset provision, meaning the tax surcharge authorization will automatically expire on December 31, 2030, unless renewed. This targeted tax measure aims to provide dedicated funding for early childhood education in large urban areas like New York City by creating a specific income tax surcharge for higher-income residents.

Government Affairs

https://www.nysenate.gov/legislation/bills/2025/S1662