senate Bill S22

Provides that the income level for the requirement to file a personal income tax return shall be set by regulation

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 05 / Jan / 2011
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 05 / Apr / 2011
    • NOTICE OF COMMITTEE CONSIDERATION - REQUESTED
  • 02 / Jun / 2011
    • REPORTED AND COMMITTED TO FINANCE
  • 04 / Jan / 2012
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 27 / Feb / 2012
    • NOTICE OF COMMITTEE CONSIDERATION - REQUESTED
  • 12 / Mar / 2012
    • COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • 12 / Jun / 2012
    • ORDERED TO THIRD READING CAL.1143
  • 12 / Jun / 2012
    • PASSED SENATE
  • 12 / Jun / 2012
    • DELIVERED TO ASSEMBLY
  • 12 / Jun / 2012
    • REFERRED TO WAYS AND MEANS

Summary

Provides that the income level for the requirement to file a personal income tax return shall be the dollar amount of the New York standard deduction.

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Bill Details

See Assembly Version of this Bill:
A5966
Versions:
S22
Legislative Cycle:
2011-2012
Current Committee:
Law Section:
Tax Law
Laws Affected:
Amd §651, Tax L
Versions Introduced in Previous Legislative Cycles:
2009-2010: S5283A, A661B
2007-2008: A10156

Sponsor Memo

BILL NUMBER:S22

TITLE OF BILL:
An act
to amend the tax law, in relation to the requirement to file a
personal income tax return

PURPOSE:
To set minimum personal income tax filing levels at the level of the
federal adjusted gross income for the taxable year plus state
addition modifications in excess of the New York standard deduction,
rather than the arbitrary $4,000 which is currently in statute. This
effectively means that most persons with no State personal income tax
liability or refundable credits will not have to file state tax
returns.

SUMMARY OF PROVISIONS:
Amends section 651 of the Tax Law to replace the statutory $4,000
filing minimum with a minimum equal to the federal adjusted gross
income for the taxable year plus state addition modifications in
excess of the New York standard deduction.

JUSTIFICATION:
The current $4,000 minimum filing limit has been in statute for many
years and forces persons who owe no taxes and who file no federal
returns to file State income tax returns. This is a burden for low
income persons, particularly senior citizens. It also adds
administrative costs for the Department of Taxation and Finance,
which must process numerous returns for which no tax is due. Persons
with incomes lower than the standard deduction owe no tax and this
will eliminate the patently unnecessary filing. The Department of
Taxation and Finance estimates that approximately 250,000 persons
with no tax liability and no refunds or refundable credits will be
removed from filing requirements, saving the department an estimated
$500,000 annually in processing and administrative costs.
Furthermore, many of the individuals who would no longer have to
file would be retirees with mostly exempt pension or annuity income.

LEGISLATIVE HISTORY:
2009: A.00661A (Kavanagh) - Ways and Means
2008: A.10156 (Kavanagh) - Ways and Means
2007-08: A.1309B (Aubertine) - Ways and Means
2003-04: S.979B - Passed Senate
2001-02: S.1601 - Passed Senate
2009-10: S5283A - Passed Senate

FISCAL IMPACT ON THE STATE:
Expected to reduce administrative costs of Department of Taxation and
Finance by $500,000 annually.

FISCAL IMPACT ON LOCALITIES:
None. The Department of Taxation and Finance has determined that the
change will not impact the allocation of state aid to school districts.

EFFECTIVE DATE:


This act shall take effect immediately and shall apply to all taxable
years beginning on or after the date on which this act shall have
become law.

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                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                   22

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 5, 2011
                               ___________

Introduced by Sens. SQUADRON, DIAZ, HASSELL-THOMPSON, MONTGOMERY, SERRA-
  NO -- read twice and ordered printed, and when printed to be committed
  to the Committee on Investigations and Government Operations

AN  ACT  to  amend the tax law, in relation to the requirement to file a
  personal income tax return

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Paragraph  1  of subsection (a) of section 651 of the tax
law, as amended by chapter 333 of the laws of 1987, is amended  to  read
as follows:
  (1)  every  resident individual (A) [required to file a federal income
tax return for the taxable year, or (B)] having federal  adjusted  gross
income  for  the  taxable  year,  increased  by  the modifications under
subsection (b) of section six hundred twelve OF THIS ARTICLE, in  excess
of [four thousand dollars, or in excess of] his OR HER New York standard
deduction,  [if  lower,]  or  [(C)] (B) subject to tax under section six
hundred two OF THIS ARTICLE, or [(D)] (C)  having  received  during  the
taxable  year a lump sum distribution any portion of which is subject to
tax under section six hundred three OF THIS ARTICLE;
  S 2. This act shall take effect immediately and  shall  apply  to  all
taxable  years  beginning  on  or after the date on which this act shall
have become a law.



 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00161-01-1

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