Senate Bill S4745B

                                BILL NUMBER:S4745

TITLE OF BILL:  An act to amend the tax law, in relation to the family
tax relief credit

PURPOSE:

This bill provides a tax credit to New Yorkers who file a New York
State Tax Return.

SUMMARY OF PROVISIONS:

Section 1. Paragraph 4 of subsection (vv) of section 606 of the tax
law, as added by section 1 of part CC of chapter 59 of the laws of
2013, is amended to read as follows:

4. For each year this credit is allowed, on or before October 15th of
such year, the commissioner shall determine the taxpayer's eligibility
for this credit utilizing the information available to the
commissioner on the taxpayer's personal income tax return filed for
the taxable year in which the credit is allowed.

The section to be repealed is, (For those taxpayers whom the
commissioner has determined eligible for this credit, the commissioner
shall advance a payment of three hundred and fifty dollars.)

              

When a taxpayer files his or her return for the taxable year, such
taxpayer shall properly reconcile that payment on his or her return

EXISTING LAW:

Section 1. Paragraph 4 of subsection (vv) of section 606 of the tax
law, as added by section 1 of part CC of chapter 59 of the laws of
2013, is amended to read as follows:

4. For each year this credit is allowed, on or before October 15th of
such year, the commissioner shall determine the taxpayer's eligibility
for this credit utilizing the information available to the
commissioner on the taxpayer's personal income tax return filed for
the taxable year in which the credit is allowed. For those taxpayers
whom the commissioner has determined eligible for this credit, the
commissioner shall advance a payment of three hundred and fifty
dollars. When a taxpayer files his or her return for the taxable year,
such taxpayer shall properly reconcile that payment on his or her
return.

JUSTIFICATION:

Middle class families with children who have incomes between
$40,000.00 and $300,000.00 will be eligible to receive a credit of
$350.00 per year for three years beginning in 2014.

The budget language clearly states that 'for each year this credit is
allowed on or before October 15th of such year, the commissioner shall
determine the taxpayer's eligibility for this credit based on
available information to the commissioner on the taxpayer's personal
income tax return filed for the taxable year two years prior to the


taxable year in which the credit is allowed. For those taxpayers whom
the commissioner has determined eligible for this credit, the
commissioner shall advance a payment of $350.00. In other words, this
credit becomes a rebate check that the New York State Tax Department
prints and mails out.

This would seem to be the least efficient way of delivering a tax
credit to over one million New York State taxpayers, as opposed to
simply allowing them to claim it at tax time. If we deliver this so
called tax credit in the manner that it currently exists, the cost of
the program is estimated to be approximately $1.23 billion. Finally,
we must also consider the additional cost associated with
administering this so called tax credit program such as printing
expenses, postage, and the cost of staff time associated with managing
the program. New Yorkers should benefit from this program as a tax
credit when he/she files a tax return. It is the same benefit with no
additional cost to New York State. If not and we are simply going to
provide a $350.00 check. Although this program is intended to benefit
New Yorkers, we should reconsider how this program is administered.

LEGISLATIVE HISTORY:

None

FISCAL IMPLICATIONS:

To be determined

LOCAL FISCAL IMPLICATIONS:

To be determined

EFFECTIVE DATE:

This act shall take effect immediately.

                                BILL NUMBER:S4745A

TITLE OF BILL:  An act to amend the tax law, in relation to the family
tax relief credit and to repeal certain provisions of such law
relating thereto

PURPOSE:

This bill provides a tax credit to New Yorkers who file a New York
State Tax Return.

SUMMARY OF PROVISIONS:

Section 1. Paragraph 1 of subsection (vv) of section 606 of the tax
law, as added by section 1 of part CC of chapter 59 of the laws of
2013, is amended to read as follows:

1. An individual taxpayer who meets the eligibility standards in
paragraph two of this subsection shall be allowed a credit against the
taxes imposed by this article of three hundred and fifty dollars per
return for tax years two thousand thirteen, two thousand fourteen, and
two thousand fifteen.

2. Paragraph 4 of subsection (vv) of section 606 of the tax law is
repealed.

              

3. This act shall take effect immediately.

EXISTING LAW:

Section 1. Paragraph 4 of subsection (vv) of section 606 of the tax
law, as added by section 1 of part CC of chapter 59 of the laws of
2013, is amended to read as follows:

4. For each year this credit is allowed, on or before October 15th of
such year, the commissioner shall determine the taxpayer's eligibility
for this credit utilizing the information available to the
commissioner on the taxpayer's personal income tax return filed for
the taxable year in which the credit is allowed. For those taxpayers
whom the commissioner has determined eligible for this credit, the
commissioner shall advance a payment of three hundred and fifty
dollars. When a taxpayer files his or her return for the taxable year,
such taxpayer shall properly reconcile that payment on his or her
return.

JUSTIFICATION:

Middle class families with children who have incomes between
$40,000.00 and $300,000.00 will be eligible to receive a credit of
$350.00 per year for three years beginning in 2014.

The budget language clearly states that 'for each year this credit is
allowed on or before October 15th of such year, the commissioner shall
determine the taxpayer's eligibility for this credit based on
available information to the commissioner on the taxpayer's personal
income tax return filed for the taxable year two years prior to the
taxable year in which the credit is allowed. For those taxpayers whom


the commissioner has determined eligible for this credit, the
commissioner shall advance a payment of $350.00. In other words, this
credit becomes a rebate check that the New York State Tax Department
prints and mails out.

This would seem to be the least efficient way of delivering a tax
credit to over one million New York State taxpayers, as opposed to
simply allowing them to claim it at tax time. If we deliver this so
called tax credit in the manner that it currently exists, the cost of
the program is estimated to be approximately $1.23 billion. Finally,
we must also consider the additional cost associated with
administering this so called tax credit program such as printing
expenses, postage, and the cost of staff time associated with managing
the program. New Yorkers should benefit from this program as a tax
credit when he/she files a tax return. It is the same benefit with no
additional cost to New York State. If not and we are simply going to
provide a $350.00 check. Although this program is intended to benefit
New Yorkers, we should reconsider how this program is administered.

LEGISLATIVE HISTORY:

None

FISCAL IMPLICATIONS:

To be determined

LOCAL FISCAL IMPLICATIONS:

To be determined

EFFECTIVE DATE:

This act shall take effect immediately.