senate Bill S770B

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:
A2766C
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:S770B

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.


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

                                 770--B
    Cal. No. 646

                       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 -- reported favorably from said  committee,  ordered
  to  first  and  second report, ordered to a third reading, amended and
  ordered reprinted, retaining its place in the order of third reading

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  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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01333-06-3

S. 770--B                           2

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.

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