senate Bill S188

2013-2014 Legislative Session

Provides that the income level for the requirement to file a personal income tax return shall be set by regulation

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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 08, 2014 referred to investigations and government operations
Jan 09, 2013 referred to investigations and government operations

Co-Sponsors

S188 - Bill Details

See Assembly Version of this Bill:
A229
Current Committee:
Law Section:
Tax Law
Laws Affected:
Amd §651, Tax L
Versions Introduced in Previous Legislative Sessions:
2011-2012: S22, A5966
2009-2010: S5283A, A661B

S188 - Bill Texts

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Provides that the income level for the requirement to file a personal income tax return shall be the dollar amount of the New York standard deduction.

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BILL NUMBER:S188

TITLE OF BILL:
An act
to amend the tax law, in relation to the requirement to file a
personal income tax return

PURPOSE:
To set minimum personal income tax filing levels at the level of the
federal adjusted gross income for the taxable year plus state
addition modifications in excess of the New York standard deduction,
rather than the arbitrary $4,000 which is currently in statute. This
effectively means that most persons with no State personal income tax
liability or refundable credits will not have to file state tax returns

SUMMARY OF PROVISIONS:
Amends section 651 of the Tax Law to replace the statutory $4,000
filing minimum with a minimum equal to the federal adjusted gross
income for the taxable year plus state addition modifications in
excess of the New York standard deduction.

JUSTIFICATION:
The current $4,000 minimum filing limit has been in statute for many
years and forces persons who owe no taxes and who file no federal
returns to file State income tax returns. This is a burden for low
income persons, particularly senior citizens. It also adds
administrative costs for the Department of Taxation and Finance,
which must process numerous returns for which no tax is due. Persons
with incomes lower than the standard deduction owe no tax and this
will eliminate the patently unnecessary filing. The Department of
Taxation and Finance estimates that approximately 250,000 persons
with no tax liability and no refunds or refundable credits will be
removed from filing requirements, saving the department an estimated
$500,000 annually in processing and administrative costs.
Furthermore, many of the individuals who would no longer have to file
would be retirees with mostly exempt pension or annuity income.

LEGISLATIVE HISTORY:
2009: A.00661A (Kavanagh) - Ways and Means
2008: A.10156 (Kavanagh) - Ways and Means
2007-08: A.1309B (Aubertine) - Ways and Means
2003-04: S.979B - Passed Senate
2001-02: S.1601 - Passed Senate
2009-10: S.5283A - Passed Senate
2012: Committee Discharged and Committed to Rules

FISCAL IMPACT ON THE STATE:
Expected to reduce administrative costs of Department of Taxation and
Finance by $500,000 annually.

FISCAL IMPACT ON LOCALITIES:
None" The Department of Taxation and Finance has determined that the
change will not impact the allocation of state aid to school districts"

EFFECTIVE DATE:


This act shall take effect immediately and shall apply to all taxable
years beginning on or after the date on which this act shall have
become law.

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

                                   188

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by Sen. SQUADRON -- 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 the requirement  to  file  a
  personal income tax return

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

  Section 1. Paragraph 1 of subsection (a) of section  651  of  the  tax
law,  as  amended by chapter 333 of the laws of 1987, is amended to read
as follows:
  (1) every resident individual (A) [required to file a  federal  income
tax  return  for the taxable year, or (B)] having federal adjusted gross
income for the  taxable  year,  increased  by  the  modifications  under
subsection  (b) of section six hundred twelve OF THIS ARTICLE, in excess
of [four thousand dollars, or in excess of] his OR HER New York standard
deduction, [if lower,] or [(C)] (B) subject to  tax  under  section  six
hundred  two  OF  THIS  ARTICLE, or [(D)] (C) having received during the
taxable year a lump sum distribution any portion of which is subject  to
tax under section six hundred three OF THIS ARTICLE;
  S  2.  This  act  shall take effect immediately and shall apply to all
taxable years beginning on or after the date on  which  this  act  shall
have become a law.



 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00301-01-3

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