senate Bill S2728C

Subtracts from federal adjusted gross income qualified transportation fringe benefits

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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

  • 31 / Jan / 2011
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 15 / Feb / 2011
    • AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 15 / Feb / 2011
    • PRINT NUMBER 2728A
  • 08 / Mar / 2011
    • 1ST REPORT CAL.183
  • 09 / Mar / 2011
    • 2ND REPORT CAL.
  • 10 / Mar / 2011
    • ADVANCED TO THIRD READING
  • 04 / Apr / 2011
    • AMENDED ON THIRD READING 2728B
  • 11 / Apr / 2011
    • PASSED SENATE
  • 11 / Apr / 2011
    • DELIVERED TO ASSEMBLY
  • 11 / Apr / 2011
    • REFERRED TO WAYS AND MEANS
  • 04 / Jan / 2012
    • DIED IN ASSEMBLY
  • 04 / Jan / 2012
    • RETURNED TO SENATE
  • 04 / Jan / 2012
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 05 / Jan / 2012
    • AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 05 / Jan / 2012
    • PRINT NUMBER 2728C
  • 31 / Jan / 2012
    • 1ST REPORT CAL.148
  • 06 / Feb / 2012
    • 2ND REPORT CAL.
  • 07 / Feb / 2012
    • ADVANCED TO THIRD READING
  • 13 / Feb / 2012
    • PASSED SENATE
  • 13 / Feb / 2012
    • DELIVERED TO ASSEMBLY
  • 13 / Feb / 2012
    • REFERRED TO WAYS AND MEANS

Summary

Subtracts from federal adjusted gross income qualified transportation fringe benefits.

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Bill Details

See Assembly Version of this Bill:
A6175B
Versions:
S2728
S2728A
S2728B
S2728C
Legislative Cycle:
2011-2012
Current Committee:
Law Section:
Tax Law
Laws Affected:
Amd §612, Tax L

Sponsor Memo

BILL NUMBER:S2728C REVISED 01/25/12

TITLE OF BILL:
An act
to amend the tax law, in relation to qualified transportation fringe
benefits

PURPOSE:
To restore the New York State commuter pretax deduction
benefit.

SUMMARY OF PROVISIONS:
Section 1. Amends subsection (c) of section 612
of the tax law by adding a new paragraph 39 to make permanent the New
York State pretax deduction benefit for commuting expenses for
employees.

Section 2. Effective date.

JUSTIFICATION:
Federal law permits employers to allow their employees
to set aside a portion of their pre-tax wages to pay for transit,
vanpool fares, and parking. In 2009, Congress approved an increase in
the maximum transit benefit ($230/month), but required re-approval of
the increase on an annual basis. An extension was approved in 2010,
but Congress did not reauthorize another extension by the December
31, 2011 deadline. As a result, commuters' mass transit tax benefits
were cut from $230 to $125 a month. New York State mirrors this
benefit, thus with Congress' failure to re-authorize the current
transit benefit, commuters are seeing both their state and federal
benefits cut almost in half.

Washington's lack of action not only raises costs for commuters, it
gives them new incentives to avoid mass transit all together.
Commuters who drive in a car pool are allowed a similar pre-tax
benefit to help offset parking costs under federal law. Unlike the
pre-tax transit benefit, that law is permanent and indexed to
inflation. This means that commuters who drive to work had their
parking benefit increase to $240 a month while mass transit riders'
benefits were cut by nearly half. This disparity provides an
incentive for commuters to drive to work and not use mass transit,
increasing congestion and auto emissions.

This legislation would fully restore the state' monthly pre-tax
transit benefit which was cut when the federal government did not
approve an extension by the December 31, 2011 deadline. It would
also create parity between the current federal and state pre-tax
benefits which help offset parking costs for commuters who drive.
That benefit increased to $240 on January 1st.

LEGISLATIVE HISTORY:
2011: (S.2728-B/ A.6175-A) Passed the Senate

FISCAL IMPLICATIONS:
Prior to December 31, 2011 this income was not
taxed by the State, therefor there is no cost to the State.


EFFECTIVE DATE:
Immediately

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

                                 2728--C

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            January 31, 2011
                               ___________

Introduced  by  Sens. FUSCHILLO, AVELLA, DILAN, GOLDEN, HANNON, JOHNSON,
  KLEIN, LAVALLE, LITTLE,  MARTINS,  OPPENHEIMER,  RANZENHOFER,  SAVINO,
  STAVISKY,  ZELDIN  -- read twice and ordered printed, and when printed
  to be committed to the  Committee  on  Investigations  and  Government
  Operations -- committee discharged, bill amended, ordered reprinted as
  amended  and  recommitted to said committee -- reported favorably from
  said committee, ordered to first and second report, ordered to a third
  reading, amended and ordered reprinted, retaining  its  place  in  the
  order  of  third  reading  -- recommitted to the Committee on Investi-
  gations and Government Operations in accordance with  Senate  Rule  6,
  sec.  8  --  committee  discharged, bill amended, ordered reprinted as
  amended and recommitted to said committee

AN ACT to amend the tax law, in  relation  to  qualified  transportation
  fringe benefits

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

  Section 1. Subsection (c) of section 612 of the tax law is amended  by
adding a new paragraph 39 to read as follows:
  (39)  FOR  TAXABLE  YEARS  BEGINNING  AFTER DECEMBER THIRTY-FIRST, TWO
THOUSAND ELEVEN THE AMOUNT OF QUALIFIED TRANSPORTATION  FRINGE  BENEFITS
INCLUDED IN FEDERAL ADJUSTED GROSS INCOME, TO THE EXTENT THAT SUCH QUAL-
IFIED TRANSPORTATION FRINGE BENEFITS WOULD HAVE BEEN EXCLUDED FROM GROSS
INCOME  PURSUANT  TO  PARAGRAPH  FIVE  OF  SUBSECTION (A) OF SECTION ONE
HUNDRED THIRTY-TWO OF THE INTERNAL REVENUE CODE HAD THE  FLUSH  SENTENCE
OF  PARAGRAPH TWO OF SUBSECTION (F) OF SECTION ONE HUNDRED THIRTY-TWO OF
THE INTERNAL REVENUE CODE THAT WAS IN EFFECT ON  DECEMBER  THIRTY-FIRST,
TWO THOUSAND ELEVEN CONTINUED IN EFFECT AFTER DECEMBER THIRTY-FIRST, TWO
THOUSAND  ELEVEN;  PROVIDED,  HOWEVER, THAT IF SUBPARAGRAPH (A) OF PARA-
GRAPH TWO OF SUBSECTION (F) OF SECTION ONE  HUNDRED  THIRTY-TWO  OF  THE
INTERNAL REVENUE CODE IS AMENDED SO THAT FOR ANY MONTH THE DOLLAR AMOUNT
IN  EFFECT UNDER SUCH SUBPARAGRAPH (A) IS GREATER THAN THE DOLLAR AMOUNT

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06311-12-2

S. 2728--C                          2

IN EFFECT UNDER SUBPARAGRAPH (B) OF PARAGRAPH TWO OF SUBSECTION  (F)  OF
SECTION ONE HUNDRED THIRTY-TWO FOR THE SAME MONTH, THE FLUSH SENTENCE OF
PARAGRAPH  TWO THAT WAS IN EFFECT ON DECEMBER THIRTY-FIRST, TWO THOUSAND
ELEVEN  SHALL  BE DEEMED TO PROVIDE THAT THE DOLLAR AMOUNT IN EFFECT FOR
SUBPARAGRAPH (B) SHALL BE APPLIED AS IF THE DOLLAR AMOUNT  THEREIN  WERE
THE  SAME  AS  THE DOLLAR AMOUNT IN EFFECT FOR SUCH MONTH UNDER SUBPARA-
GRAPH (A). NOTWITHSTANDING THE FOREGOING, IF,  PURSUANT  TO  THIS  PARA-
GRAPH,  THE  AMOUNT THAT WOULD BE IN EFFECT FOR ANY MONTH UNDER SUBPARA-
GRAPH (A) OR (B) OF PARAGRAPH TWO  OF  SUBSECTION  (F)  OF  SECTION  ONE
HUNDRED THIRTY-TWO OF THE INTERNAL REVENUE CODE IS LESS THAN ONE HUNDRED
SEVENTY-FIVE  DOLLARS,  SUBPARAGRAPHS (A) AND (B) SHALL BE APPLIED AS IF
THE DOLLAR AMOUNT IN EFFECT FOR SUCH MONTH UNDER SUCH SUBPARAGRAPHS  WAS
ONE HUNDRED SEVENTY-FIVE DOLLARS.
  S 2. This act shall take effect immediately.

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