senate Bill S22
(D) 26th Senate District
- In Committee
- On Floor Calendar
- Passed Senate
- Passed Assembly
- Delivered to Governor
- Signed/Vetoed by Governor
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.
TITLE OF BILL:
to amend the tax law, in relation to the requirement to file a
personal income tax return
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
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.
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.
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.
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
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