Bill > A07761

This bill establishes the NYC Under 3 Act, which creates a new payroll tax for employers in New York City to fund child care services for families with children under three years old. The tax applies to employers with quarterly payroll expenses over $625,000, with graduated tax rates ranging from 0.15% to 0.22% based on the size of their payroll. Employers are prohibited from passing this tax onto employees, and most tax exemptions are overridden. The tax will specifically apply to businesses in New York City, with some exceptions like U.S. government agencies, the United Nations, and certain non-profit early childhood service providers. Revenue collected will be deposited into a special fund managed by the New York City Comptroller and used to support child care affordability, accessibility, and quality. The tax must be paid at the same time as other required tax payments, and the Department of Taxation and Finance will handle administration and enforcement. The bill includes provisions for electronic filing, combined tax returns, and coordination with other tax collection efforts. The act will take effect immediately upon passage.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A7761