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

                                  5798

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            February 20, 2009
                               ___________

Introduced  by M. of A. HAYES, FINCH, HAWLEY, KOLB -- Multi-Sponsored by
  -- M. of A. SAYWARD -- read once and referred to the Committee on Ways
  and Means

AN ACT to amend the tax law, in relation to requiring  the  commissioner
  of  taxation  and finance to pay interest upon refunds of overpayments
  of personal income tax in certain cases

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

  Section 1. Subsection (c) of section 688 of the tax law, as amended by
chapter 377 of the laws of 1999, is amended to read as follows:
  (c)  Income  tax  refund  within [forty-five] THIRTY days of claim for
overpayment.--[If any] ANY overpayment of tax imposed  by  this  article
[is  credited  or]  SHALL  BE refunded within [forty-five days after the
last date prescribed (or permitted by extension of time) for filing  the
return  of  such  tax  on  which  such overpayment was claimed or within
forty-five days after such return was  filed,  whichever  is  later,  or
within  six  months after a demand is filed pursuant to paragraph six of
subsection (b) of section six hundred  fifty-one  of  this  chapter,  no
interest shall be allowed under this section on any such overpayment. In
regard  to  an  amended  return claiming such overpayment or a claim for
credit or refund on which such overpayment was claimed, if such overpay-
ment is refunded within forty-five days of filing such  return  or  such
claim,  no  interest  shall be allowed from the date such return or such
claim is filed until the day the refund is made. For  purposes  of  this
subsection,  any  amended  return  or  claim  for credit or refund filed
before the last day prescribed (or permitted by extension of  time)  for
the  filing  of  the  return of tax for such year shall be considered as
filed on such last day] THIRTY DAYS AFTER THE RETURN WAS FILED.  IF SUCH
RETURN IS SENT BY UNITED STATES CERTIFIED MAIL, RETURN RECEIPT REQUESTED
OR BY REGISTERED MAIL, SUCH RECEIPT OR REGISTRATION SHALL BE PRIMA FACIE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07578-01-9

              

A. 5798                             2

EVIDENCE THAT SUCH DOCUMENT OR PAYMENT WAS DELIVERED TO THE  COMMISSION-
ER, BUREAU, OFFICE, OFFICER OR PERSON TO WHICH OR TO WHOM ADDRESSED.
  S  2. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law and shall apply to  all
taxable years beginning on and after the first of January in the year in
which this act shall have become a law.