senate Bill S6397A

2013-2014 Legislative Session

Subtracts from federal adjusted gross income qualified transportation fringe benefits

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Archive: Last Bill Status - Passed Senate


  • 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
Jun 12, 2014 referred to ways and means
delivered to assembly
passed senate
Jun 09, 2014 advanced to third reading
Jun 03, 2014 2nd report cal.
Jun 02, 2014 1st report cal.1079
May 02, 2014 print number 6397a
amend and recommit to finance
Apr 29, 2014 reported and committed to finance
Jan 21, 2014 referred to investigations and government operations

Votes

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Jun 2, 2014 - Finance committee Vote

S6397A
36
0
committee
36
Aye
0
Nay
1
Aye with Reservations
0
Absent
0
Excused
0
Abstained
show Finance committee vote details

Apr 29, 2014 - Investigations and Government Operations committee Vote

S6397
9
0
committee
9
Aye
0
Nay
0
Aye with Reservations
0
Absent
0
Excused
0
Abstained
show committee vote details

Committee Vote: Apr 29, 2014

Bill Amendments

Original
A (Active)
Original
A (Active)

S6397 - Bill Details

See Assembly Version of this Bill:
A2766D
Current Committee:
Law Section:
Tax Law
Laws Affected:
Amd §612, Tax L

S6397 - Bill Texts

view summary

Subtracts from federal adjusted gross income qualified transportation fringe benefits.

view sponsor memo
BILL NUMBER:S6397 REVISED 4/25/14

TITLE OF BILL: An act to amend the tax law, in relation to qualified
transportation fringe benefits

PURPOSE: To restore the New York State commuter pretax deduction
benefit.

SUMMARY OF PROVISIONS: Section 1. Amends subsection (c) of section 612
of the tax law by adding a new paragraph 41 to make permanent the New
York State pretax deduction benefit for commuting expenses for
employees.

Section 2. Effective date.

JUSTIFICATION: Federal law permits employers to allow their employees
to set aside a portion of their pre-tax wages to pay for transit,
vanpool fares, and parking. In 2009, Congress approved an increase in
the maximum transit benefit ($230/month), but required re-approval of
the increase on an annual basis. An extension was approved in 2010,
but Congress did not reauthorize another extension by the December 31,
2011 deadline. The result was that commuters' mass transit tax
benefits were cut from $230 to $125 a month.

New York State mirrors this benefit, thus with Congress' failure to
re-authorize the transit benefit in 2011, commuters saw both their
state and federal benefits cut almost in half in 2012. Congress did
finally approve an extension of the transit benefit at the eleventh
hour in 2012 but, once again, it expired at the end of 2013. To date,
Congress has not authorized a new extension of the transit benefit,
and it does not appear likely that they will do so.

Washington's lack of action not only raised costs for commuters, it
gave them new incentives to avoid mass transit all together.
Commuters who drive in a carpool are allowed a similar pre-tax benefit
to help offset parking costs under federal law. Unlike the pre-tax
transit benefit, that law is permanent and indexed to inflation. This
means that commuters who drive to work had their parking benefit
increase to $240 a month in 2012 while mass transit riders' benefits
were cut by nearly half. This disparity provided an incentive for
commuters to drive to work and not use mass transit, increasing
congestion and auto emissions.

This legislation is needed to protect commuters from losing their New
York State monthly pre-tax transit benefit and to create parity on the
state level between state pre-tax parking and transit benefits in the
event that Congress again fails to act.

LEGISLATIVE HISTORY: 2013: Passed the Senate (S.770-B) 2012: Passed
the Senate (S.2728C/A.6175B) 2011: Passed the Senate (S.2728B/A.6175A)

FISCAL IMPLICATIONS: Prior to December 31, 2011 this income was not
taxed by the State, therefore there is no cost to the State.

EFFECTIVE DATE: This act shall take effect immediately.


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

                                  6397

                            I N  S E N A T E

                            January 21, 2014
                               ___________

Introduced  by Sen. CARLUCCI -- 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  qualified  transportation
  fringe benefits

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

  Section 1. Subsection (c) of section 612 of the tax law is amended  by
adding a new paragraph 41 to read as follows:
  (41)  FOR  TAXABLE  YEARS  BEGINNING  AFTER DECEMBER THIRTY-FIRST, TWO
THOUSAND THIRTEEN THE AMOUNT OF QUALIFIED TRANSPORTATION FRINGE BENEFITS
INCLUDED IN FEDERAL ADJUSTED GROSS INCOME, TO THE EXTENT THAT SUCH QUAL-
IFIED TRANSPORTATION FRINGE BENEFITS WOULD HAVE BEEN EXCLUDED FROM GROSS
INCOME PURSUANT TO PARAGRAPH FIVE  OF  SUBSECTION  (A)  OF  SECTION  ONE
HUNDRED  THIRTY-TWO  OF THE INTERNAL REVENUE CODE HAD THE FLUSH SENTENCE
OF PARAGRAPH TWO OF SUBSECTION (F) OF SECTION ONE HUNDRED THIRTY-TWO  OF
THE  INTERNAL  REVENUE CODE THAT WAS IN EFFECT ON DECEMBER THIRTY-FIRST,
TWO THOUSAND ELEVEN CONTINUED IN EFFECT AFTER DECEMBER THIRTY-FIRST, TWO
THOUSAND ELEVEN; PROVIDED, HOWEVER, THAT IF SUBPARAGRAPH  (A)  OF  PARA-
GRAPH  TWO  OF  SUBSECTION  (F) OF SECTION ONE HUNDRED THIRTY-TWO OF THE
INTERNAL REVENUE CODE IS AMENDED SO THAT FOR ANY MONTH THE DOLLAR AMOUNT
IN EFFECT UNDER SUCH SUBPARAGRAPH (A) IS GREATER THAN THE DOLLAR  AMOUNT
IN  EFFECT  UNDER SUBPARAGRAPH (B) OF PARAGRAPH TWO OF SUBSECTION (F) OF
SECTION ONE HUNDRED THIRTY-TWO OF THE INTERNAL REVENUE CODE FOR THE SAME
MONTH, THE FLUSH SENTENCE OF PARAGRAPH TWO THAT WAS IN EFFECT ON  DECEM-
BER  THIRTY-FIRST,  TWO  THOUSAND ELEVEN SHALL BE DEEMED TO PROVIDE THAT
THE DOLLAR AMOUNT IN EFFECT FOR SUBPARAGRAPH (B) SHALL BE APPLIED AS  IF
THE  DOLLAR  AMOUNT THEREIN WERE THE SAME AS THE DOLLAR AMOUNT IN EFFECT
FOR SUCH MONTH UNDER SUBPARAGRAPH (A).  NOTWITHSTANDING  THE  FOREGOING,
IF,  PURSUANT  TO THIS PARAGRAPH, THE AMOUNT THAT WOULD BE IN EFFECT FOR
ANY MONTH UNDER SUBPARAGRAPH (A) OR (B) OF PARAGRAPH TWO  OF  SUBSECTION
(F)  OF  SECTION  ONE HUNDRED THIRTY-TWO OF THE INTERNAL REVENUE CODE IS
LESS THAN ONE HUNDRED SEVENTY-FIVE DOLLARS, SUBPARAGRAPHS  (A)  AND  (B)
SHALL  BE APPLIED AS IF THE DOLLAR AMOUNT IN EFFECT FOR SUCH MONTH UNDER
SUCH SUBPARAGRAPHS WAS ONE HUNDRED SEVENTY-FIVE DOLLARS.
  S 2. This act shall take effect immediately.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01333-08-4

Co-Sponsors

S6397A (ACTIVE) - Bill Details

See Assembly Version of this Bill:
A2766D
Current Committee:
Law Section:
Tax Law
Laws Affected:
Amd §612, Tax L

S6397A (ACTIVE) - Bill Texts

view summary

Subtracts from federal adjusted gross income qualified transportation fringe benefits.

view sponsor memo
BILL NUMBER:S6397A

TITLE OF BILL: An act to amend the tax law, in relation to qualified
transportation fringe benefits

PURPOSE: To restore the New York State commuter pretax deduction
benefit.

SUMMARY OF PROVISIONS: Section 1. Amends subsection (c) of section 612
of the tax law by adding a new paragraph 42 to make permanent the New
York State pretax deduction benefit for commuting expenses for
employees.

Section 2. Effective date.

JUSTIFICATION: Federal law permits employers to allow their employees
to set aside a portion of their pre-tax wages to pay for transit,
vanpool fares, and parking. In 2009, Congress approved an increase in
the maximum transit benefit ($230/month), but required re-approval of
the increase on an annual basis. An extension was approved in 2010,
but Congress did not reauthorize another extension by the December 31,
2011 deadline. The result was that commuters' mass transit tax
benefits were cut from $230 to $125 a month.

New York State mirrors this benefit, thus with Congress' failure to
re-authorize the transit benefit in 2011, commuters saw both their
state and federal benefits cut almost in half in 2012. Congress did
finally approve an extension of the transit benefit at the eleventh
hour in 2012 but, once again, it expired at the end of 2013. To date,
Congress has not authorized a new extension of the transit benefit,
and it does not appear likely that they will do so.

Washington's lack of action not only raised costs for commuters, it
gave them new incentives to avoid mass transit all together.
Commuters who drive in a carpool are allowed a similar pre-tax benefit
to help offset parking costs under federal law. Unlike the pre-tax
transit benefit, that law is permanent and indexed to inflation. This
means that commuters who drive to work had their parking benefit
increase to $240 a month in 2012 while mass transit riders' benefits
were cut by nearly half. This disparity provided an incentive for
commuters to drive to work and not use mass transit, increasing
congestion and auto emissions.

This legislation is needed to protect commuters from losing their New
York State monthly pre-tax transit benefit and to create parity on the
state level between state pre-tax parking and transit benefits in the
event that Congress again fails to act.

LEGISLATIVE HISTORY: 2013: Passed the Senate (S.770-B) 2012: Passed
the Senate (S.2728C/A.6175B) 2011: Passed the Senate (S.2728B/A.6175A)

FISCAL IMPLICATIONS: Prior to December 31, 2011 this income was not
taxed by the State, therefore there is no cost to the State.

EFFECTIVE DATE: This act shall take effect immediately.


view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 6397--A

                            I N  S E N A T E

                            January 21, 2014
                               ___________

Introduced  by Sen. CARLUCCI -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations -- reported favorably from said committee and  commit-
  ted to the Committee on Finance -- committee discharged, bill amended,
  ordered reprinted as amended and recommitted to said committee

AN  ACT  to  amend  the tax law, in relation to qualified transportation
  fringe benefits

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

  Section  1. Subsection (c) of section 612 of the tax law is amended by
adding a new paragraph 42 to read as follows:
  (42) FOR TAXABLE YEARS  BEGINNING  AFTER  DECEMBER  THIRTY-FIRST,  TWO
THOUSAND THIRTEEN THE AMOUNT OF QUALIFIED TRANSPORTATION FRINGE BENEFITS
INCLUDED IN FEDERAL ADJUSTED GROSS INCOME, TO THE EXTENT THAT SUCH QUAL-
IFIED TRANSPORTATION FRINGE BENEFITS WOULD HAVE BEEN EXCLUDED FROM GROSS
INCOME  PURSUANT  TO  PARAGRAPH  FIVE  OF  SUBSECTION (A) OF SECTION ONE
HUNDRED THIRTY-TWO OF THE INTERNAL REVENUE CODE HAD THE  FLUSH  SENTENCE
OF  PARAGRAPH TWO OF SUBSECTION (F) OF SECTION ONE HUNDRED THIRTY-TWO OF
THE INTERNAL REVENUE CODE THAT WAS IN EFFECT ON  DECEMBER  THIRTY-FIRST,
TWO  THOUSAND  THIRTEEN CONTINUED IN EFFECT AFTER DECEMBER THIRTY-FIRST,
TWO THOUSAND THIRTEEN; PROVIDED, HOWEVER, THAT IF  SUBPARAGRAPH  (A)  OF
PARAGRAPH TWO OF SUBSECTION (F) OF SECTION ONE HUNDRED THIRTY-TWO OF THE
INTERNAL REVENUE CODE IS AMENDED SO THAT FOR ANY MONTH THE DOLLAR AMOUNT
IN  EFFECT UNDER SUCH SUBPARAGRAPH (A) IS GREATER THAN THE DOLLAR AMOUNT
IN EFFECT UNDER SUBPARAGRAPH (B) OF PARAGRAPH TWO OF SUBSECTION  (F)  OF
SECTION ONE HUNDRED THIRTY-TWO OF THE INTERNAL REVENUE CODE FOR THE SAME
MONTH,  THE FLUSH SENTENCE OF PARAGRAPH TWO THAT WAS IN EFFECT ON DECEM-
BER THIRTY-FIRST, TWO THOUSAND THIRTEEN SHALL BE DEEMED TO PROVIDE  THAT
THE  DOLLAR AMOUNT IN EFFECT FOR SUBPARAGRAPH (B) SHALL BE APPLIED AS IF
THE DOLLAR AMOUNT THEREIN WERE THE SAME AS THE DOLLAR AMOUNT  IN  EFFECT
FOR  SUCH  MONTH  UNDER SUBPARAGRAPH (A). NOTWITHSTANDING THE FOREGOING,
IF, PURSUANT TO THIS PARAGRAPH, THE AMOUNT THAT WOULD BE IN  EFFECT  FOR
ANY  MONTH  UNDER SUBPARAGRAPH (A) OR (B) OF PARAGRAPH TWO OF SUBSECTION
(F) OF SECTION ONE HUNDRED THIRTY-TWO OF THE INTERNAL  REVENUE  CODE  IS

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01333-10-4

S. 6397--A                          2

LESS  THAN  ONE  HUNDRED SEVENTY-FIVE DOLLARS, SUBPARAGRAPHS (A) AND (B)
SHALL BE APPLIED AS IF THE DOLLAR AMOUNT IN EFFECT FOR SUCH MONTH  UNDER
SUCH SUBPARAGRAPHS WAS ONE HUNDRED SEVENTY-FIVE DOLLARS.
  S 2. This act shall take effect immediately.

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