senate Bill S3522

2011-2012 Legislative Session

Provides for a refund of any excess amount of tax paid after reduction of the credit

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 04, 2012 referred to investigations and government operations
Feb 24, 2011 referred to investigations and government operations

Co-Sponsors

S3522 - Bill Details

See Assembly Version of this Bill:
A2342
Current Committee:
Senate Investigations And Government Operations
Law Section:
Tax Law
Laws Affected:
Amd ยง606, Tax L
Versions Introduced in 2009-2010 Legislative Session:
S3520, A6780

S3522 - Bill Texts

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Provides for a refund of any excess amount of tax paid after reduction of other credits and the credit for long-term care insurance.

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BILL NUMBER:S3522

TITLE OF BILL:
An act
to amend the tax law, in relation to providing a refund for excess tax
paid after long-term insurance credit is applied

SUMMARY OF PROVISIONS:
This bill amends the tax law to provide that
residents of the state shall be entitled to a refund, rather than a
carry-over credit, for applicable payments made for long-term care
insurance premiums.

Section 1 amends subsection (aa) of section 606 of the Tax Law to
provide that the credit allowable under the subsection, if it exceeds
the tax as reduced by the credit, shall be refunded as an
overpayment, without interest. Nonresidents and part-year residents
will continue to be eligible for the credit, and will be entitled to
carry such credits forward to be deducted in future years.

Section 2 provides that this act shall take effect immediately and
shall apply to taxable years beginning on or after the first of
January next succeeding the date on which it shall have become law.

PURPOSE AND JUSTIFICATION:
Long term care is an ever-growing component
of the cost of Medicaid in New York State. It is important to
encourage citizens to make arrangements to cover the cost of nursing
home care through long-term care insurance, both to protect their
assets from the high cost of such care, and to control the cost to
the state for such care. Most people can expect that they will have
many years of retirement before they may find themselves in need
of long term care. However, retirement often brings reduced income and
reduced state taxes, so that many retirees may not be able to take
full advantage of the tax credit for long-term care insurance. This
bill will give greater encouragement for all taxpayers, and
particularly retired taxpayers, to obtain and maintain long-term care
insurance.

EXISTING LAW:
Currently, twenty percent of the cost
of long term care
insurance is allowed as a credit against state income taxes. If the
credit exceeds the amount of taxes due, the balance can be carried
forward to future tax years.

PRIOR LEGISLATIVE HISTORY:
2010 - S.3520/A.6780 -- INVESTIGATIONS/Ways & Means
2007-08 - S.4345/A.7681 -- INVESTIGATIONS/GOV'T OPS/Ways & Means
2006 - S.7260/A.10771 - RULES/Ways & Means

FISCAL IMPLICATIONS:
To be determined.

EFFECTIVE DATE:
This act shall take effect immediately, with provisions.


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

                                  3522

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            February 24, 2011
                               ___________

Introduced  by  Sens.  RANZENHOFER, DeFRANCISCO, JOHNSON, LARKIN -- read
  twice and ordered printed, and when printed to  be  committed  to  the
  Committee on Investigations and Government Operations

AN  ACT  to  amend  the  tax  law, in relation to providing a refund for
  excess tax paid after long-term insurance credit is applied

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

  Section  1.  Subsection (aa) of section 606 of the tax law, as amended
by section 1 of part P of chapter 61 of the laws of 2005, is amended  to
read as follows:
  (aa)  Long-term care insurance credit. (1) Residents. A taxpayer shall
be allowed a credit against the tax imposed by  this  article  equal  to
twenty percent of the premium paid during the taxable year for long-term
care  insurance.  In  order  to  qualify for such credit, the taxpayer's
premium payment must be for the purchase of or for  continuing  coverage
under  a  long-term care insurance policy that qualifies for such credit
pursuant to section one thousand one hundred seventeen of the  insurance
law.  [If  the  amount of the credit allowable under this subsection for
any taxable year shall exceed the taxpayer's  tax  for  such  year,  the
excess  may  be  carried  over to the following year or years and may be
deducted from the taxpayer's tax for such year  or  years.]  THE  CREDIT
UNDER THIS SUBSECTION SHALL BE ALLOWED AGAINST THE TAXES IMPOSED BY THIS
ARTICLE  FOR  THE  TAXABLE YEAR REDUCED BY THE CREDITS PERMITTED BY THIS
ARTICLE. IF THE CREDIT EXCEEDS THE TAX AS SO REDUCED, THE  TAXPAYER  MAY
RECEIVE,  AND  THE  COMPTROLLER, SUBJECT TO A CERTIFICATE OF THE COMMIS-
SIONER, SHALL REFUND AS AN OVERPAYMENT, WITHOUT INTEREST, THE AMOUNT  OF
SUCH EXCESS.
  (2) Nonresidents and part-year residents. In the case of a nonresident
taxpayer  or  a part-year resident taxpayer, the credit determined under
this subsection shall be limited to the amount determined by multiplying
the amount of such credit by the New York source fraction as  set  forth

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02577-01-1

S. 3522                             2

in  paragraph three of subsection (e) of section six hundred one of this
article. [The credit as so limited shall be applied as provided in para-
graph one of this subsection.] IF THE AMOUNT  OF  THE  CREDIT  ALLOWABLE
UNDER  THIS  SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S
TAX FOR SUCH YEAR, THE EXCESS MAY BE CARRIED OVER TO THE FOLLOWING  YEAR
OR  YEARS  AND  MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR
YEARS.
  S 2. This act shall take effect immediately and shall apply to taxable
years beginning on or after the first of  January  next  succeeding  the
date on which it shall have become a law.

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