Senate Bill S4570

                                BILL NUMBER:S4570

TITLE OF BILL:  An act directing the department of taxation and
finance to create and implement an online program which will enable
each New York state taxpayer to prepare and electronically file his or
her federal and state income tax returns free of charge

SUMMARY OF PROVISIONS:

Section One of the bill states that the department of taxation and
finance is authorized and directed to create and implement an online
program which will enable each New York State taxpayer to prepare and
electronically file his or her federal and state income tax returns
free of charge, regardless of the taxpayer's income level. The program
shall be made available to all New York State taxpayers in the
department's website no later than one hundred eighty days following
the effective date of this act.

EXISTING LAW: New law

JUSTIFICATION:  This legislation shall direct the New York State
Department of Taxation and Finance to create an online program for all
New York State taxpayers to prepare and file their federal and state
income tax returns for free. Currently, there are a number of
different for-profit companies offering so-called "Free File," but
they often include hidden fees, and only taxpayers within certain
              

income ranges are eligible. Many years into the digital age, our
government is entirely capable of offering free online tax preparation
and electronic filing without forcing the taxpayer to be duped into
using possibly dubious private online tax preparation services.

It is a solid and fundamental principal that taxes are what we pay for
civilized society, and most New Yorkers are proud to help pay for
essential government programs like public education and food safety
regulation. Yet there is no justification for the fees charged by
for-profit tax prep and e-filing companies, which serve as obsolete
intermediaries in the digital age. Countless government services can
be easily accessed on government websites-from registering to vote to
applying for public benefits to making complaints about potholes-and
there is no reason that filing tax returns should be any different.
We don't force people making more than $57,000 to pay a private
company for help registering with the Selective Service System, and
the State of New York should not allow it for the filing of taxes
either.

Government should be embracing technology, not using it as a way to
direct people to the services of for-profit companies.

LEGISLATIVE HISTORY: New bill

FISCAL IMPLICATIONS: To be determined

EFFECTIVE DATE:  This act shall take effect immediately.