S T A T E   O F   N E W   Y O R K
________________________________________________________________________
                                  5130
                       2009-2010 Regular Sessions
                            I N  S E N A T E
                             April 27, 2009
                               ___________
Introduced  by Sen. McDONALD -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations
AN ACT to amend the tax law, in relation to exempting  compensation  for
  active  military service from inclusion in a resident's adjusted gross
  income
  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:
  Section  1.  Paragraph  8  of subsection (c) of section 612 of the tax
law, as amended by chapter 528 of the laws of 1964, is amended  to  read
as follows:
  (8)  Compensation  received  for active service in the armed forces of
the United States [on or after October first,  nineteen  hundred  sixty-
one, and prior to September first, nineteen hundred sixty-two; provided,
however,  that  the amount of such compensation to be deducted shall not
exceed one hundred dollars for each month of the  taxable  year,  subse-
quent to September, nineteen hundred sixty-one, during any part of which
month  the  taxpayer  was engaged in such service] IF:  (A) THE TAXPAYER
MAINTAINED A PERMANENT RESIDENCE IN NEW YORK STATE  AND  SERVED  IN  THE
ACTIVE  SERVICE  IN THE ARMED FORCES OF THE UNITED STATES OUTSIDE OF NEW
YORK STATE FOR A PERIOD OF AT LEAST NINETY DAYS DURING THE TAXABLE YEAR;
(B) THE TAXPAYER MAINTAINED A PERMANENT PLACE OF ABODE  OUTSIDE  OF  NEW
YORK  STATE  WHILE IN ACTIVE SERVICE FOR THE ENTIRE TAXABLE YEAR; OR (C)
THE TAXPAYER MAINTAINED AN ABODE IN  NEW  YORK  STATE  OTHER  THAN  SUCH
PERSON'S  PERMANENT ADDRESS WHILE IN ACTIVE SERVICE; INCLUDING RESIDENCE
IN A MILITARY BARRACKS, BACHELOR'S QUARTERS OR ON BOARD A NAVAL  VESSEL.
For  the  purposes  of  this paragraph, the words "active service in the
armed forces of the United States" shall mean active  duty  (other  than
for  training) in the army, navy (including the marine corps), air force
or coast guard of the United States as  defined  in  title  ten  of  the
United States code.
  S  2.  This act shall take effect immediately and shall apply to taxa-
ble years beginning on and after January 1, 2010.
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              
             
                          
                                      [ ] is old law to be omitted.
                                                           LBD02673-01-9