senate Bill S770

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

  • 09 / Jan / 2013
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 16 / Apr / 2013
    • REPORTED AND COMMITTED TO FINANCE
  • 01 / May / 2013
    • AMEND AND RECOMMIT TO FINANCE
  • 01 / May / 2013
    • PRINT NUMBER 770A
  • 21 / May / 2013
    • 1ST REPORT CAL.646
  • 22 / May / 2013
    • 2ND REPORT CAL.
  • 23 / May / 2013
    • ADVANCED TO THIRD READING
  • 04 / Jun / 2013
    • AMENDED ON THIRD READING 770B
  • 13 / Jun / 2013
    • PASSED SENATE
  • 13 / Jun / 2013
    • DELIVERED TO ASSEMBLY
  • 13 / Jun / 2013
    • 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:
A2766A
Versions:
S770
S770A
S770B
Legislative Cycle:
2013-2014
Current Committee:
Law Section:
Tax Law
Laws Affected:
Amd §612, Tax L
Versions Introduced in 2011-2012 Legislative Cycle:
S2728C, A6175

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Sponsor Memo

BILL NUMBER:S770

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 1, 2012.

LEGISLATIVE HISTORY:
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:
Immediately.

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

                                   770

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by Sens. FUSCHILLO, GOLDEN, LAVALLE, LITTLE, MARTINS -- read
  twice and ordered printed, and when printed to  be  committed  to  the
  Committee on Investigations and Government 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 39 to read as follows:
  (39) FOR TAXABLE YEARS  BEGINNING  AFTER  DECEMBER  THIRTY-FIRST,  TWO
THOUSAND  TWELVE  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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01333-02-3

S. 770                              2

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.

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