BILL NUMBER:  S6465

 TITLE OF BILL :  An act to amend the tax law, in relation to not
extending collection period after assessment as a result of
hospitalization for members of the armed forces, astronauts and
victims of certain terrorist attacks

 PURPOSE :

This bill would conform the Tax Law to recently enacted Internal
Revenue Code provisions.

 SUMMARY OF PROVISIONS :

Section one of this bill amends section 696 of the Tax Law by adding a
new subsection (i) to provide that the continuous hospitalization plus
one hundred eighty days thereafter provisions of subsection (a) do not
apply to the collection of personal income tax liability.

Section two of this bill provides that this act shall take effect
immediately and shall apply to taxes assessed before, on, or after the
date of the enactment of this act for which there is an outstanding
tax liability.

 CURRENT LAW :

              

When a member of the armed forces or a person serving in support of
the armed forces in a combat zone is injured and hospitalized, the
limitations period for collections is tolled for the hospitalization
period plus one hundred eighty days thereafter.

 JUSTIFICATION :

On December 18, 2015, the President signed H.R. 2029, which became
Public Law 114-113. Included in Division Q of this law, which is
entitled Protecting Americans from Tax Hikes Act of 2015, is the
Wounded Warrior Tax Equity Act. Previously, the Internal Revenue
Service had an extended period of time to collect tax arrears from
members of the armed forces who were hospitalized as the result of a
combat injury. This extended period of time equaled the period of
hospitalization plus 180 days thereafter. The Wounded Warrior Tax
Equity Act changed this rule by eliminating this extended period of
time.

In this State, we conform to the Internal Revenue Code. However,
conformity in this instance requires a statutory change. Because this
amendment to the Tax Law levels the playing field for our wounded
warriors and no longer places them at a disadvantage, it needs to be
enacted this year so that the disparate treatment of our wounded
warriors can end.

 LEGISLATIVE HISTORY :

New bill

 FISCAL IMPLICATIONS :

To be determined

 EFFECTIVE DATE :
This act shall take effect immediately.