S T A T E O F N E W Y O R K
2011-2012 Regular Sessions
I N S E N A T E
May 3, 2011
Introduced by Sens. FARLEY, DeFRANCISCO, GRIFFO, GRISANTI -- read twice
and ordered printed, and when printed to be committed to the Committee
on Investigations and Government Operations -- reported favorably from
said committee and committed to the Committee on Finance -- committee
discharged, bill amended, ordered reprinted as amended and recommitted
to said committee -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee
AN ACT to amend the tax law, in relation to establishing the taxpayer
refund choice act and affirming the right of state residents to
receive personal income tax refunds by paper check and requiring the
department of taxation and finance to fully describe any debit card or
direct deposit program; and providing for the repeal of such
provisions upon expiration thereof
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. This act shall be known and may be cited as the "taxpayer
refund choice act".
S 2. The tax law is amended by adding a new section 3013 to read as
S 3013. METHOD OF PAYMENT OF PERSONAL INCOME TAX REFUNDS; NOTICE. (A)
NOTWITHSTANDING THE ADOPTION BY THE COMMISSIONER OF ANY PREPAID DEBIT
CARD OR DIRECT DEPOSIT PROGRAM FOR PAYMENT OF PERSONAL INCOME TAX
REFUNDS, ALL TAXPAYERS ARE ENTITLED:
(1) TO RECEIVE PERSONAL INCOME TAX REFUNDS BY PAPER CHECK; AND
(2) TO OPT OUT OF ANY PREPAID DEBIT CARD OR DIRECT DEPOSIT PROGRAM FOR
PAYMENT OF TAX REFUNDS.
(B) THE DEPARTMENT SHALL PROVIDE TAXPAYERS WITH A CLEAR WRITTEN STATE-
MENT SETTING FORTH THE TAXPAYER'S RIGHT:
(1) TO RECEIVE TAX REFUND PAYMENTS BY PAPER CHECK; AND
(2) TO OPT OUT OF ANY PREPAID DEBIT CARD OR DIRECT DEPOSIT PROGRAM.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
S. 5140--B 2
(C) IN THE EVENT THAT THE COMMISSIONER ELECTS TO IMPLEMENT A PROGRAM
PROVIDING FOR PAYMENT OF PERSONAL INCOME TAX REFUNDS BY PREPAID DEBIT
CARD OR DIRECT DEPOSIT TO A DESIGNATED ACCOUNT OF THE TAXPAYER, THE
DEPARTMENT SHALL AMEND THE FORMS USED TO FILE PERSONAL INCOME TAX
RETURNS TO REFLECT, IN THE AREA DESIGNATED FOR SELECTION OF OPTIONS FOR
PROCESSING OF REFUNDS, THAT THE TAXPAYER HAS THE OPTION OF RECEIVING HIS
OR HER TAX REFUND BY PERSONAL CHECK AND SHALL PROVIDE A BOX WHICH THE
TAXPAYER MAY CHECK TO SELECT THAT OPTION.
(D) IN ANY WRITTEN NOTICE REGARDING A PREPAID DEBIT CARD PROGRAM FOR
THE PAYMENT OF TAX REFUNDS, THE DEPARTMENT SHALL DESCRIBE TO TAXPAYERS
ALL OF THE FEATURES OF THE DEBIT CARD PROGRAM (E.G., WITHDRAWAL AT ANY
ATM OR POINT-OF-SALE USE), INCLUDING ANY FEE OR FEES WHICH MAY BE
CHARGED TO THE TAXPAYER IN ACCESSING HIS OR HER TAX REFUND.
S 3. This act shall take effect on the ninetieth day after it shall
have become a law and shall expire and be deemed repealed five years
after such effective date.