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.
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Res. No. 122 ..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. ..Body 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 1
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