S T A T E O F N E W Y O R K
________________________________________________________________________
3625
2013-2014 Regular Sessions
I N A S S E M B L Y
January 28, 2013
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Introduced by M. of A. RA, RAIA, GOODELL -- Multi-Sponsored by -- M. of
A. SALADINO -- read once and referred to the Committee on Small Busi-
ness
AN ACT to amend the economic development law, the tax law and the labor
law, in relation to authorizing the creation of small business tax-de-
ferred savings accounts
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The economic development law is amended by adding a new
section 139 to read as follows:
S 139. SMALL BUSINESS TAX-DEFERRED SAVINGS ACCOUNTS. 1. ANY SMALL
BUSINESS SHALL BE AUTHORIZED TO ESTABLISH AND DEPOSIT PROFITS INTO A
SMALL BUSINESS TAX-DEFERRED SAVINGS ACCOUNT.
2. THE MONIES IN SUCH TAX-DEFERRED SAVINGS ACCOUNTS MAY BE WITHDRAWN
TAX FREE ONLY WHEN THE COMMISSIONER OF LABOR DECLARES AN ECONOMIC DOWN-
TURN PURSUANT TO SUBDIVISION FOURTEEN OF SECTION TWENTY-ONE OF THE LABOR
LAW.
3. IF A SMALL BUSINESS WITHDRAWS FUNDS FROM SUCH A TAX-DEFERRED
SAVINGS ACCOUNT WHEN AN ECONOMIC DOWNTURN HAS NOT BEEN DECLARED, SUCH
FUNDS WITHDRAWN SHALL BE TAXABLE AS INCOME UNDER THE TAX LAW.
S 2. Section 209 of the tax law is amended by adding a new subdivision
11 to read as follows:
11. FOR ANY TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO
THOUSAND FOURTEEN, ANY SMALL BUSINESS, AS SUCH TERM IS DEFINED PURSUANT
TO SECTION ONE HUNDRED THIRTY-ONE OF THE ECONOMIC DEVELOPMENT LAW, SHALL
BE EXEMPT FROM ALL TAXES IMPOSED PURSUANT TO THIS ARTICLE FOR ANY WITH-
DRAWAL FROM A SMALL BUSINESS TAX-DEFERRED SAVINGS ACCOUNT ESTABLISHED
PURSUANT TO SECTION ONE HUNDRED THIRTY-NINE OF THE ECONOMIC DEVELOPMENT
LAW AND MADE DURING AN ECONOMIC DOWNTURN DECLARED BY THE COMMISSIONER OF
LABOR PURSUANT TO SUBDIVISION FOURTEEN OF SECTION TWENTY-ONE OF THE
LABOR LAW.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05927-01-3
A. 3625 2
S 3. Subsection (c) of section 612 of the tax law is amended by adding
a new paragraph 39 to read as follows:
(39) ANY WITHDRAWAL FROM A SMALL BUSINESS TAX-DEFERRED SAVINGS ACCOUNT
ESTABLISHED PURSUANT TO SECTION ONE HUNDRED THIRTY-NINE OF THE ECONOMIC
DEVELOPMENT LAW MADE DURING AN ECONOMIC DOWNTURN DECLARED BY THE COMMIS-
SIONER OF LABOR PURSUANT TO SUBDIVISION FOURTEEN OF SECTION TWENTY-ONE
OF THE LABOR LAW.
S 4. Section 21 of the labor law is amended by adding a new subdivi-
sion 14 to read as follows:
14. SHALL CALCULATE AND PUBLISH, ON OR BEFORE THE FIFTEENTH DAY OF
EACH MONTH, A COMPOSITE INDEX OF BUSINESS CYCLE INDICATORS. SUCH INDEX
SHALL BE CALCULATED USING MONTHLY DATA ON NEW YORK STATE EMPLOYMENT,
TOTAL MANUFACTURING HOURS WORKED, AND UNEMPLOYMENT PREPARED BY THE
DEPARTMENT OR ITS SUCCESSOR AGENCY, AND TOTAL SALES TAX COLLECTED NET OF
LAW CHANGES, PREPARED BY THE DEPARTMENT OF TAXATION AND FINANCE OR ITS
SUCCESSOR AGENCY. SUCH INDEX SHALL BE CONSTRUCTED IN ACCORDANCE WITH THE
PROCEDURES FOR CALCULATING COMPOSITE INDEXES ISSUED BY THE CONFERENCE
BOARD OR ITS SUCCESSOR ORGANIZATION, AND ADJUSTED FOR SEASONAL VARI-
ATIONS IN ACCORDANCE WITH THE PROCEDURES ISSUED BY THE CENSUS BUREAU OF
THE UNITED STATES DEPARTMENT OF COMMERCE OR ITS SUCCESSOR AGENCY. IF THE
COMPOSITE INDEX DECLINES FOR FIVE CONSECUTIVE MONTHS, THE COMMISSIONER
OF LABOR SHALL NOTIFY THE GOVERNOR, THE SPEAKER OF THE ASSEMBLY, THE
TEMPORARY PRESIDENT OF THE SENATE, AND THE MINORITY LEADERS OF THE
ASSEMBLY AND THE SENATE THAT AN ECONOMIC DOWNTURN HAS BEEN DECLARED.
S 5. This act shall take effect immediately.