BILL NUMBER:  S4852

 TITLE OF BILL :

An act to amend the tax law, in relation to New York adjusted gross
income of a resident individual


 PURPOSE :

This bill would provide for a reduction in federal adjusted gross
income for income received by a member of a federally defined reserve
component by exempting income received by such member as compensation
for performing active service within the state of New York.

 SUMMARY OF SPECIFIC PROVISIONS :

Specifically, this bill would amend section 612 of the tax law to
exempt from federal adjusted gross income:

1. Income received by a member of a federally defined reserve
component as compensation for performing active service within the
state of New York.

2. "Reserve component" is defined pursuant to 10 U.S.C. 10101 as:

              

(a) National Guard, including Army National Guard and Air National
Guard; and

(b) Reserve enlistment, appointment, grade, or office held as a
Reserve of one of the armed forces.

 JUSTIFICATION :

Presently, section 612 of the tax law, exempts from federal adjusted
gross income, compensation received by a member of the New York State
organized militia for active service within the state.

This bill would extend that benefit to any member of the National
Guard or Reserves of the United States Armed Forces.

Military Service should be valued as public service at the highest
level.

Those who wish to provide such service in the National Guard,
Reserves, State Militia or Naval Militia, should not have the small
amount of compensation they earn in such endeavor taxed by the state
of New York.

This bill would recognize this, and extend the current exclusion
currently given to members of the state organized militia to members
of the National Guard and Reserves,

In doing so, this bill recognizes not only the importance of such
individuals, but also provides an added recruitment and retention
incentive for such service.

 PRIOR LEGISLATIVE HISTORY :

2008 - S.8327 - Passed Senate (60-0)

 FISCAL IMPLICATIONS :

Very Minimal.

 EFFECTIVE DATE :
This act would take effect immediately.