senate Bill S770B

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 13, 2013 referred to ways and means
delivered to assembly
passed senate
Jun 04, 2013 amended on third reading 770b
May 23, 2013 advanced to third reading
May 22, 2013 2nd report cal.
May 21, 2013 1st report cal.646
May 01, 2013 print number 770a
amend and recommit to finance
Apr 16, 2013 reported and committed to finance
Jan 09, 2013 referred to investigations and government operations

Votes

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Bill Amendments

Original
A
B (Active)
Original
A
B (Active)

Co-Sponsors

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S770 - Bill Details

See Assembly Version of this Bill:
A2766C
Current Committee:
Law Section:
Tax Law
Laws Affected:
Amd §612, Tax L
Versions Introduced in 2011-2012 Legislative Session:
S2728C, A6175

S770 - Bill Texts

view summary

Subtracts from federal adjusted gross income qualified transportation fringe benefits.

view sponsor memo
BILL NUMBER:S770

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 39 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. As a result, 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 current
transit benefit, commuters are seeing both their state and federal
benefits cut almost in half.

Washington's lack of action not only raises costs for commuters, it
gives them new incentives to avoid mass transit all together.
Commuters who drive in a car pool 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 while mass transit riders'
benefits were cut by nearly half. This disparity provides an
incentive for commuters to drive to work and not use mass transit,
increasing congestion and auto emissions.

This legislation would fully restore the state' monthly pre-tax
transit benefit which was cut when the federal government did not
approve an extension by the December 31, 2011 deadline. It would also
create parity between the current federal and state pre-tax benefits
which help offset parking costs for commuters who drive. That benefit
increased to $240 on January 1, 2012.

LEGISLATIVE HISTORY:
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:
Immediately.

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

                                   770

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by Sens. FUSCHILLO, GOLDEN, LAVALLE, LITTLE, MARTINS -- 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 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 39 to read as follows:
  (39) FOR TAXABLE YEARS  BEGINNING  AFTER  DECEMBER  THIRTY-FIRST,  TWO
THOUSAND  TWELVE  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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01333-02-3

S. 770                              2

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.

Co-Sponsors

view additional co-sponsors

S770A - Bill Details

See Assembly Version of this Bill:
A2766C
Current Committee:
Law Section:
Tax Law
Laws Affected:
Amd §612, Tax L
Versions Introduced in 2011-2012 Legislative Session:
S2728C, A6175

S770A - Bill Texts

view summary

Subtracts from federal adjusted gross income qualified transportation fringe benefits.

view sponsor memo
BILL NUMBER:S770A

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 40 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 transit benefit in 2011 commuters
saw both their state and federal benefits cut almost in half in 2012.

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 car pool 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.

Finally Congress did approve an extension of the transit benefit at
the eleventh hour in 2012 however they did not make it permanent and
it will expire at the end of 2013. 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 benefit in the event that Congress again
fails to extend this benefit as they did in 2011.

LEGISLATIVE HISTORY:

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:

Immediately.

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

                                 770--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  Sens.  FUSCHILLO,  AVELLA,  CARLUCCI,  GOLDEN,  LAVALLE,
  LITTLE, MARTINS, SAVINO, SERRANO, STAVISKY, ZELDIN -- read  twice  and
  ordered  printed, and when printed to be committed to the Committee on
  Investigations and Government Operations --  reported  favorably  from
  said  committee and committed 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 40 to read as follows:
  (40)  FOR ANY MONTH THE DOLLAR AMOUNT IN EFFECT UNDER SUBPARAGRAPH (A)
OF PARAGRAPH TWO OF SUBSECTION (F) OF SECTION ONE HUNDRED THIRTY-TWO  OF
THE  INTERNAL  REVENUE  CODE 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
AMOUNT  OF  QUALIFIED TRANSPORTATION FRINGE BENEFITS INCLUDED IN FEDERAL
ADJUSTED GROSS INCOME EQUAL TO THE DIFFERENCE BETWEEN THE DOLLAR AMOUNTS
IN EFFECT FOR SUBPARAGRAPHS (A) AND (B) OF PARAGRAPH TWO  OF  SUBSECTION
(F)  OF  SECTION  ONE  HUNDRED  THIRTY-TWO OF THE INTERNAL REVENUE CODE.
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 and shall apply to taxable
years beginning on or after January 1, 2013.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01333-04-3

Co-Sponsors

view additional co-sponsors

S770B (ACTIVE) - Bill Details

See Assembly Version of this Bill:
A2766C
Current Committee:
Law Section:
Tax Law
Laws Affected:
Amd §612, Tax L
Versions Introduced in 2011-2012 Legislative Session:
S2728C, A6175

S770B (ACTIVE) - Bill Texts

view summary

Subtracts from federal adjusted gross income qualified transportation fringe benefits.

view sponsor memo
BILL NUMBER:S770B

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 40 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 transit
benefit in 2011 commuters saw both their state and federal benefits
cut almost in half in 2012.

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 car pool 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.

Finally Congress did approve an extension of the transit benefit at
the eleventh hour in 2012 however they did not make it permanent and
it will expire at the end of 2013. 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 benefit in the event that Congress again
fails to extend this benefit as they did in 2011.

LEGISLATIVE HISTORY: 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: Immediately.


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

                                 770--B
    Cal. No. 646

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  Sens.  FUSCHILLO,  AVELLA,  CARLUCCI,  GOLDEN,  LAVALLE,
  LITTLE, MARTINS, SAVINO, SERRANO, STAVISKY, ZELDIN -- read  twice  and
  ordered  printed, and when printed to be committed to the Committee on
  Investigations and Government Operations --  reported  favorably  from
  said  committee and committed to the Committee on Finance -- committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee -- reported favorably from said  committee,  ordered
  to  first  and  second report, ordered to a third reading, amended and
  ordered reprinted, retaining its place in the order of third reading

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 40 to read as follows:
  (40)  FOR  TAXABLE  YEARS  BEGINNING  AFTER DECEMBER THIRTY-FIRST, TWO
THOUSAND TWELVE 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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01333-06-3

S. 770--B                           2

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.

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