senate Bill S6397

Amended

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

  • 21 / Jan / 2014
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 29 / Apr / 2014
    • REPORTED AND COMMITTED TO FINANCE
  • 02 / May / 2014
    • AMEND AND RECOMMIT TO FINANCE
  • 02 / May / 2014
    • PRINT NUMBER 6397A
  • 02 / Jun / 2014
    • 1ST REPORT CAL.1079
  • 03 / Jun / 2014
    • 2ND REPORT CAL.
  • 09 / Jun / 2014
    • ADVANCED TO THIRD READING
  • 12 / Jun / 2014
    • PASSED SENATE
  • 12 / Jun / 2014
    • DELIVERED TO ASSEMBLY
  • 12 / Jun / 2014
    • REFERRED TO WAYS AND MEANS

Summary

Subtracts from federal adjusted gross income qualified transportation fringe benefits.

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Bill Details

Versions:
S6397
S6397A
Legislative Cycle:
2013-2014
Current Committee:
Law Section:
Tax Law
Laws Affected:
Amd ยง612, Tax L

Votes

Sponsor Memo

BILL NUMBER:S6397 REVISED 4/25/14

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 41 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. The result was that 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 transit benefit in 2011, commuters saw both their
state and federal benefits cut almost in half in 2012. Congress did
finally approve an extension of the transit benefit at the eleventh
hour in 2012 but, once again, it expired at the end of 2013. To date,
Congress has not authorized a new extension of the transit benefit,
and it does not appear likely that they will do so.

Washington's lack of action not only raised costs for commuters, it
gave them new incentives to avoid mass transit all together.
Commuters who drive in a carpool 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 in 2012 while mass transit riders' benefits
were cut by nearly half. This disparity provided an incentive for
commuters to drive to work and not use mass transit, increasing
congestion and auto emissions.

This legislation is needed to protect commuters from losing their New
York State monthly pre-tax transit benefit and to create parity on the
state level between state pre-tax parking and transit benefits in the
event that Congress again fails to act.

LEGISLATIVE HISTORY: 2013: Passed the Senate (S.770-B) 2012: Passed
the Senate (S.2728C/A.6175B) 2011: Passed the Senate (S.2728B/A.6175A)

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

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
________________________________________________________________________

                                  6397

                            I N  S E N A T E

                            January 21, 2014
                               ___________

Introduced  by Sen. CARLUCCI -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations

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 41 to read as follows:
  (41)  FOR  TAXABLE  YEARS  BEGINNING  AFTER DECEMBER THIRTY-FIRST, TWO
THOUSAND THIRTEEN 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
IN  EFFECT  UNDER SUBPARAGRAPH (B) OF PARAGRAPH TWO OF SUBSECTION (F) OF
SECTION ONE HUNDRED THIRTY-TWO OF THE INTERNAL REVENUE CODE FOR THE SAME
MONTH, THE FLUSH SENTENCE OF PARAGRAPH TWO THAT WAS IN EFFECT ON  DECEM-
BER  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 SUBPARAGRAPH (A).  NOTWITHSTANDING  THE  FOREGOING,
IF,  PURSUANT  TO THIS PARAGRAPH, THE AMOUNT THAT WOULD BE IN EFFECT FOR
ANY MONTH UNDER SUBPARAGRAPH (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.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01333-08-4

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