senate Bill S2381

2013-2014 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 08, 2014 referred to investigations and government operations
Jan 17, 2013 referred to investigations and government operations

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S2381 - Bill Details

Current Committee:
Law Section:
Tax Law
Laws Affected:
Amd ยง606, Tax L
Versions Introduced in Previous Legislative Sessions:
2011-2012: S3522
2009-2010: S3520

S2381 - 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:S2381

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: 2011-12 - S.3522/A.2342 --
INVESTIGATIONS/Ways & Means 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 on the first of January
next succeeding the date on which it shall have become a law.

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

                                  2381

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 17, 2013
                               ___________

Introduced  by  Sens. RANZENHOFER, DeFRANCISCO, 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.] SHALL BE TREATED AS AN
OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED  IN  ACCORDANCE  WITH  THE
PROVISIONS  OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED,
HOWEVER, THAT NO INTEREST SHALL BE PAID THEREIN.
  (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
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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05260-01-3

S. 2381                             2

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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