senate Bill S770A

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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  • 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:
A2766B
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

Sponsor Memo

BILL NUMBER:S770A

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 40 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 transit benefit in 2011 commuters
saw both their state and federal benefits cut almost in half in 2012.

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 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 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.

Finally Congress did approve an extension of the transit benefit at
the eleventh hour in 2012 however they did not make it permanent and
it will expire at the end of 2013. 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 benefit in the event that Congress again
fails to extend this benefit as they did in 2011.

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.

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

                                 770--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  Sens.  FUSCHILLO,  AVELLA,  CARLUCCI,  GOLDEN,  LAVALLE,
  LITTLE, MARTINS, SAVINO, SERRANO, STAVISKY, ZELDIN -- 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

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 40 to read as follows:
  (40)  FOR ANY MONTH THE DOLLAR AMOUNT IN EFFECT UNDER SUBPARAGRAPH (A)
OF PARAGRAPH TWO OF SUBSECTION (F) OF SECTION ONE HUNDRED THIRTY-TWO  OF
THE  INTERNAL  REVENUE  CODE 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
AMOUNT  OF  QUALIFIED TRANSPORTATION FRINGE BENEFITS INCLUDED IN FEDERAL
ADJUSTED GROSS INCOME EQUAL TO THE DIFFERENCE BETWEEN THE DOLLAR AMOUNTS
IN EFFECT FOR SUBPARAGRAPHS (A) AND (B) OF PARAGRAPH TWO  OF  SUBSECTION
(F)  OF  SECTION  ONE  HUNDRED  THIRTY-TWO OF THE INTERNAL REVENUE CODE.
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 and shall apply to taxable
years beginning on or after January 1, 2013.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01333-04-3

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