BILL NUMBER:S3635

TITLE OF BILL:
An act
to amend the tax law, in relation to including income received by
members of a reserve component of the armed forces of the United States
for reduction of such members' federal adjusted gross income

PURPOSE:
This bill would expand the existing subtraction modification contained
in Tax Law Section 612(c) (8-b) to include pay received by members of
the reserve components of the United States Armed Forces.

SUMMARY OF PROVISIONS:
Paragraph 8-b of subsection (c) of section 612 of the tax law, as
amended by section 1 of part D of chapter 62 of the laws of 2006, is
amended to read as follows:

(8-b) Income received by members of a reserve component of the armed
forces of the United States, as such term is defined in title 10 of
the United States code, as well as members of the New York State
organized militia, as such term is defined in subdivision one of
section two of the military law, as compensation for performing
active service within the state pursuant to either (i) state active
duty orders issued in accordance with subdivision one of section six
of the military law or (ii) active service of the United States
              

pursuant to federal active duty orders, for service other than
training, issued in accordance with title 10 of the United States code.

JUSTIFICATION:
Currently Section 612 (c) (8-b) of the NY Tax Law provides that income
received only by an individual who is a member of the NY State
organized militia, as such term is defined in subdivision one of
section two of the military law, as compensation for performing
active service (fig 1) within the state pursuant to either (i) state
active duty orders issued in accordance with subdivision one of
section six of the military law or (ii) active service of the United
States pursuant to federal active duty orders, for service other than
training, issued in accordance with title 10 of the United States code.

The New York State organized militia includes the New York Army
National Guard, the New York Air National Guard, the New York Naval
Militia and the New York Guard. The New York State organized militia
does not include members of the reserve components of the United
States Armed Forces are not included in the New York State organized
militia.

This bill would include income received by members of the reserve
component of the united States Armed Forces, in addition to members
of the New York State organized militia, for a reduction of such
members' federal adjusted gross income.

LEGISLATIVE HISTORY:
2010: S.2957A Held in Finance
S.7616 CONNOR No Same as
ON FILE: 04/18/08 Tax Law
TITLE:. ...Includes
income received by members of a reserve component of the armed forces
of the United States for reduction of such members' federal adjusted
gross income
04/17/08 REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

FISCAL IMPLICATIONS:
It is estimated that this bill would result in minimal revenue loss
during SFY 2008-09 and annually thereafter.

EFFECTIVE DATE:
This act shall take effect immediately and apply to taxable years
beginning January 1, 2013.