Senate Bill S6010

                                BILL NUMBER:S6010

TITLE OF BILL:

An act
to amend the tax law, in relation to directing the commissioner of
taxation and finance to require taxation only on an individual's net
gambling winnings

PURPOSE:

To alleviate tax burden and comply with Federal Income Tax Code in
reference to gambling winnings language.

SUMMARY OF PROVISIONS:

Section 1: An amendment is made to Section 171 of the Tax law,
creating new subdivision seven, to state required taxation only on an
individual's net gambling winnings for purposes of allowing one to
offset an individual's gambling winnings during that same period for
personal income tax purposes.

Section 2: Effective date of bill.

JUSTIFICATION:

              

New York State taxpayers should not have to endure additional tax
burdens when they play and help raise revenues for the state through
racino gambling and commercial casino gambling. As current tax law is
structured, an individual who has an offset of gambling losses to
gambling winnings can incur a tax liability to New York State. In
addition, taxpayers that have a combination of less gambling income
with other taxable income can incur a tax liability.

Currently, NYS disallows a varying percentage of itemized deductions
depending on the taxpayers adjusted gross income range. To correct
this problem, gambling losses should either be netted with gambling
income on Line 15 of the IT 201 or entered as a New York Subtraction
on Line 31 Other Identify: Gambling Losses. Having and allowing for
New York State to include
net gambling winnings as part of taxable income will have no negative
effect on tax returns. Similar to the treatment of gambling winnings
under the Federal Income Tax Code, losses from gambling incurred
during the same period as the winnings should be applicable and
legislated for New York State so as to allow for an offset of
winnings and reduction of incurred tax liabilities.

LEGISLATIVE HISTORY:

New bill.

FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:


This act shall take effect immediately.