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Bill

Bill

S 10609

Relates to personal income taxes in the city of New York

2025 Regular Session Introduced by Erik Bottcher

Extends and aligns NYC personal income tax and local surcharges, delaying sunset to December 31, 2029 while preserving rates, brackets, and administration.

REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
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WeVote Research Nonpartisan
Bill Summary · S 10609

Overview

Bill S. 10609 (2025-2026 Session, New York) proposes to extend and modify several tax provisions for the City of New York, including personal income taxes and local surcharges, and to postpone the expiration dates of related tax authority. The measure is introduced by Sen. Bottcher at the request of NYC Finance and referred to the Investigations and Government Operations Committee.

Main purpose and intent

  • Extend the authorization to impose and adjust certain city taxes, including personal income taxes and local surcharges, and to postpone the expiration of taxes and tax rates currently set to lapse.
  • Align expiration dates with proposed extension, effectively delaying the sunset of several city tax authorities through December 31, 2029 (instead of 2026).
  • Maintain the framework for tiered tax rates and brackets for city residents, estates, trusts, and certain filing statuses, while enabling potential adjustments by local law.

Key provisions and changes

  • Personal income tax (local): The bill preserves and clarifies the city’s authority to impose a personal income tax on city residents, with rates as provided in the state tax structure, and outlines the transition between pre- and post-2029 rate structures. It maintains a mechanism for tiered tax brackets and the applicability of rates based on filing status (married filing jointly, head of household, single, etc.).
  • Lump-sum distributions: Creates a separate tax on the ordinary income portion of lump-sum distributions for residents beginning after 1976, to be administered by the NYC Commissioner.
  • Local surcharges and credits: References to local taxes and the administration of corresponding credits and harmonized tax treatment across relevant sections.
  • Tax rates and brackets: Updates and harmonizes tax rate tables for 29-state or post-2029 brackets, including:
    • Joint filers, heads of households, and single filers, with specified tax rate structures and brackets for taxable city income.
    • Detailed bracket thresholds and computed taxes for different filing statuses, including updates to phase-ins and top marginal rates.
  • Expiration and sunset: Several sections explicitly state that the taxes and authority expire on December 31, 2029, rather than 2026, with continued enforcement and collection provisions preserved as of expiration, and transitions back to prior law as needed.
  • Administrative code and tax law: Makes conforming amendments to multiple provisions (state tax law and NYC administrative code) to reflect the extended sunset and to ensure consistent application of the tax rates, bases, and administration.

Who would be affected

  • City residents, estates, and trusts subject to New York City personal income tax and related surcharges.
  • Taxpayers with lump-sum distributions subject to the new ordinary-income tax treatment.
  • Filers whose scenarios depend on filing status (married, head of household, single, etc.) and income thresholds.
  • Tax practitioners and NYC Department of Finance in terms of administration, collection, and enforcement of the extended tax landscape.

Procedural and timeline aspects

  • Effective date: Immediate upon enactment.
  • Sunset extension: Expiration of the affected taxes and authority moved from December 31, 2026 to December 31, 2029.
  • Certification/administration: Local law adjustments, if any, would be subject to the same mailings and enactment deadlines noted in existing statutes, with continued administration by the NYC Department of Finance.

If you’d like, I can provide a section-by-section comparison with current law to highlight every substantive delta.

Compiled from official sources — confirm details with the bill’s official record.

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