File #: Res 0122-2022    Version: * Name: Exclude from State income tax up to $10,200 of unemployment compensation benefits earned by a resident of the State. (A.6584A/S.5125A)
Type: Resolution Status: Committee
Committee: Committee on State and Federal Legislation
On agenda: 4/14/2022
Enactment date: Law number:
Title: Resolution calling upon the New York State Legislature to pass, and the Governor to sign, A.6584A/S.5125A, which would exclude from State income tax up to $10,200 of unemployment compensation benefits earned by a resident of the State.
Sponsors: Kalman Yeger , Althea V. Stevens, Shahana K. Hanif
Council Member Sponsors: 3
Attachments: 1. Res. No. 122, 2. April 14, 2022 - Stated Meeting Agenda, 3. Hearing Transcript - Stated Meeting 4-14-22

Res. No. 122

 

Resolution calling upon the New York State Legislature to pass, and the Governor to sign, A.6584A/S.5125A, which would exclude from State income tax up to $10,200 of unemployment compensation benefits earned by a resident of the State.

 

By Council Members Yeger, Stevens and Hanif

 

Whereas, Almost 3.9 million New Yorkers lost their jobs and collected unemployment in 2020; and

Whereas, From the start of the COVID-19 pandemic in March 2020, no other large American city has been hit as hard, or has struggled as much to replenish its labor force, as New York City (“NYC” or “City”); and

Whereas, According to the New York State (“State”) Department of Labor, the City’s current unemployment rate of 7.6 percent is nearly double the national average of 4 percent; and

Whereas, While the country as a whole has regained more than 90 percent of lost jobs since the pandemic began, NYC has regained roughly 7 of every 10 jobs; and

Whereas, The federal American Rescue Plan Act, which was signed into law in March 2021, includes a retroactive provision making the first $10,200 per taxpayer of 2020 unemployment benefits nontaxable for individuals with modified federal Adjusted Gross Income of less than $150,000; and

Whereas, The federal exclusion of unemployment compensation from federal tax does not also apply to State tax; and

Whereas, Of the states that tax income, California, New Jersey, Oregon, Pennsylvania and Virginia already fully exempt unemployment benefits, while Delaware recently exempted unemployment benefits from state taxes; and

Whereas, A.6584A, sponsored by State Assembly Member Peter Abbate, and S.5125A, sponsored by State Senator Simcha Felder, would remove the State income tax requirement on the first $10,200 of unemployment benefits in 2020; now, therefore, be it

Resolved, That the Council of the City of New York calls upon the New York State Legislature to pass, and the Governor to sign, A.6584A/S.5125A, which would exclude from State income tax up to $10,200 of unemployment compensation benefits earned by a resident of the State.

CGR

LS #6071

03/24/2022