Bill > A02104

This bill places a comprehensive limit on personal income tax levies by New York state, starting from the fiscal year after 2025. The bill establishes a complex formula for calculating annual tax levy limits, which will be determined by multiplying the previous year's total tax levy by an "allowable levy growth factor" (the higher of 1.02 or the inflation rate plus 0.99) and potentially adding any available carryover from unused tax levy capacity. If the state's actual tax levy exceeds the limit by more than 1%, it must provide rebate checks to individual taxpayers for the excess amount, with each filer receiving an equal rebate that cannot exceed their paid income taxes. If the tax levy exceeds the limit by less than 1%, the excess amount will be placed in reserve and used to offset taxes in the following fiscal year. The bill defines several key terms, including "inflation factor," which is calculated using national consumer price indexes, and establishes a mechanism to prevent significant increases in state personal income tax collections. The goal appears to be providing taxpayers with protection against unexpected or rapid tax increases while giving the state some flexibility in managing its fiscal resources.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A2104