senate Bill S4745B

Relates to the issuance of family tax relief credit; repealer

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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

  • 22 / Apr / 2013
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 02 / May / 2013
    • AMEND (T) AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 02 / May / 2013
    • PRINT NUMBER 4745A
  • 08 / Jan / 2014
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 24 / Jan / 2014
    • AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 24 / Jan / 2014
    • PRINT NUMBER 4745B

Summary

Relates to the issuance of family tax relief credit.

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Bill Details

Versions:
S4745
S4745A
S4745B
Legislative Cycle:
2013-2014
Current Committee:
Senate Investigations And Government Operations
Law Section:
Tax Law
Laws Affected:
Amd §606, rpld sub§ (vv) ¶4, Tax L

Sponsor Memo

BILL NUMBER:S4745B

TITLE OF BILL: An act to amend the tax law, in relation to the family
tax relief credit and to repeal certain provisions of such law relating
thereto

PURPOSE:

This bill provides a tax credit to New Yorkers who file a New York State
Tax Return.

SUMMARY OF PROVISIONS:

Section 1. Paragraph 1 of section (vv) of section 606 of the tax law, as
added by section 1 of part CC of chapter 59 of the laws of 2013, is
amended to read as follows:

1. An individual taxpayer who meets the eligibility standards in para-
graph two of this subsection shall be allowed a credit against the taxes
imposed by this article of three hundred and fifty dollars per return
for tax years two thousand thirteen, two thousand fourteen, and two
thousand fifteen.

2. Paragraph 4 of subsection (vv) of section 606 of the tax law is
repealed and paragraph 5 is renumbered paragraph 4.

3. This act shall take effect immediately.

EXISTING LAW:

Section 1. Paragraph 4 of subsection (vv) of section 606 of the tax law,
as added by section 1 of part CC of chapter 59 of the laws of 2013, is
amended to read as follows:

4. For each year this credit is allowed, on or before October 15th of
such year, the commissioner shall determine the taxpayer's eligibility
for this credit utilizing the information available to the commissioner
on the taxpayer's personal income tax return filed for the taxable year
in which the credit is allowed. For those taxpayers whom the commission-
er has determined eligible for this credit, the commissioner shall
advance a payment of three hundred and fifty dollars. When a taxpayer
files his or her return for the taxable year, such taxpayer shall prop-
erly reconcile that payment on his or her return

JUSTIFICATION:

Middle class families with children who have incomes between $40,000.00
and $300,000.00 will be eligible to receive a credit of $350.00 per year
for three years beginning in 2014. The budget language clearly states
that for each year this credit is allowed on or before October 15th of
such year, the commissioner shall determine the taxpayer's eligibility
for this credit based on available information to the commissioner on

the taxpayer's personal income tax return filed for the taxable year two
years prior to the taxable year in which the credit is allowed. For
those taxpayers whom the commissioner has determined eligible for this
credit, the commissioner shall advance a payment of $350.00. In other
words, this credit becomes a rebate check that the New York State Tax
Department prints and mails out.

This would seem to be the least efficient way of delivering a tax credit
to over one million New York State taxpayers, as opposed to simply
allowing them to claim it at tax time. If we deliver this so called tax
credit in the manner that it currently exists, the cost of the program
is estimated to be approximately $1.23 billion. Finally, we must also
consider the additional cost associated with administering this so
called tax credit program such as printing expenses, postage, and the
cost of staff time associated with managing the program. New Yorkers
should benefit from this program as a tax credit when he/she files a tax
return. It is the same benefit with no additional cost to New York
State. If not and we are simply going to provide a $350.00 check.
Although this program is intended to benefit New Yorkers, we should
reconsider how this program is administered.

LEGISLATIVE HISTORY:

None

FISCAL IMPLICATIONS:

To be determined

LOCAL FISCAL IMPLICATIONS:

To be determined

EFFECTIVE DATE:

This act shall take effect immediately.

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

                                 4745--B

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                             April 22, 2013
                               ___________

Introduced  by  Sen. LATIMER -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment  Operations  --  committee  discharged,  bill  amended,   ordered
  reprinted  as amended and recommitted to said committee -- recommitted
  to the  Committee  on  Investigations  and  Government  Operations  in
  accordance  with  Senate  Rule 6, sec. 8 -- committee discharged, bill
  amended, ordered reprinted as amended and recommitted to said  commit-
  tee

AN ACT to amend the tax law, in relation to the family tax relief credit
  and to repeal certain provisions of such law relating thereto

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

  Section 1. Paragraph 1 of subsection (vv) of section 606  of  the  tax
law, as added by section 1 of part CC of chapter 59 of the laws of 2013,
is amended to read as follows:
  1. An individual taxpayer who meets the eligibility standards in para-
graph two of this subsection shall be allowed a credit against the taxes
imposed  by  this  article of three hundred fifty dollars per return for
tax years two thousand fourteen[,] AND two thousand  fifteen[,  and  two
thousand sixteen].
  S  2.  Paragraph 4 of subsection (vv) of section 606 of the tax law is
REPEALED and paragraph 5 is renumbered paragraph 4.
  S 3. This act shall take effect immediately.



 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10471-05-4

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