| Date of Action |
Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
|---|---|
| Feb 01, 2016 |
print number 3431a |
| Feb 01, 2016 |
amend and recommit to investigations and government operations |
| Jan 06, 2016 |
referred to investigations and government operations |
| Feb 09, 2015 |
referred to investigations and government operations |
Senate Bill S3431A
2015-2016 Legislative Session
Sponsored By
(D, WF) 28th Senate District
Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee
Actions
Bill Amendments
co-Sponsors
(D, WF) Senate District
2015-S3431 - Details
2015-S3431 - Sponsor Memo
BILL NUMBER:S3431
TITLE OF BILL: An act to amend the tax law, in relation to the
deduction for stock options
PURPOSE: This legislation would specify that the deduction can only
be based on the price of the stock at the time of issuance of the
option, not the price of the stock when sold.
SUMMARY OF PROVISIONS: The Tax Law is amended by adding a new
paragraph 22 to paragraph (b) of subdivision 9 of section 208.
JUSTIFICATION: Currently, there is a loophole in the Federal Tax Code
which allows for a corporation to take a tax deduction based on the
price of a previously given stock option when it is sold, rather than
the price when it was issued. Specifically, many corporations have
given stock options at a set value to executives within their company
instead of cash bonus payments. If the stock increased in value and
the compensated executives sold their stocks at a higher price than
the original value, the corporation would then be eligible for a tax
deduction based on the higher price rather than the lower original
price. As with many taxes, New York State is currently coupled with
the Federal Tax Code on this issue. It is unclear how much New York
State is currently losing because of the loophole.
The legislative solution to this loophole, is to specify at what term
2015-S3431 - Bill Text download pdf
S T A T E O F N E W Y O R K
________________________________________________________________________
3431
2015-2016 Regular Sessions
I N S E N A T E
February 9, 2015
___________
Introduced by Sen. KRUEGER -- 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 the deduction for stock
options
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraph (b) of subdivision 9 of section 208 of the tax
law is amended by adding a new subparagraph 22 to read as follows:
(22) IN THE CASE OF PROPERTY TRANSFERRED TO A PERSON IN CONNECTION
WITH THE PERFORMANCE OF SERVICES, ANY DEDUCTION RELATING TO STOCK
OPTIONS PURSUANT TO THE INTERNAL REVENUE CODE SECTION 83(H) FOR PROPERTY
DESCRIBED IN SUBSECTION (A) OF THAT SECTION, IN EXCESS OF THE AMOUNT THE
TAXPAYER WAS ALLOWED TO TREAT AS COMPENSATION COST WITH RESPECT TO THAT
PROPERTY IN THE YEAR THE STOCK OPTION WAS GRANTED UNDER GENERALLY
ACCEPTED ACCOUNTING PRINCIPLES FOR THE PURPOSE OF ASCERTAINING INCOME,
PROFIT, OR LOSS IN A REPORT OR STATEMENT TO SHAREHOLDERS, PARTNERS OR
OTHER PROPRIETORS (OR TO BENEFICIARIES).
S 2. This act shall take effect immediately and shall apply to taxable
years beginning on and after January 1, 2016.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05462-01-5
co-Sponsors
(D, WF) Senate District
2015-S3431A (ACTIVE) - Details
2015-S3431A (ACTIVE) - Sponsor Memo
BILL NUMBER: S3431A
TITLE OF BILL : An act to amend the tax law, in relation to the
deduction for stock options
PURPOSE :
This legislation would specify that the deduction can only be based on
the price of the stock at the time of issuance of the option, not the
price of the stock when sold.
SUMMARY OF PROVISIONS :
The Tax Law is amended by adding a new paragraph 22 to paragraph (b)
of subdivision 9 of section 208.
JUSTIFICATION :
Currently, there is a loophole in the Federal Tax Code which allows
for a corporation to take a tax deduction based on the price of a
previously given stock option when it is sold, rather than the price
when it was issued. Specifically, many corporations have given stock
options at a set value to executives within their company instead of
cash bonus payments. If the stock increased in value and the
compensated executives sold their stocks at a higher price than the
original value, the corporation would then be eligible for a tax
2015-S3431A (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K
________________________________________________________________________
3431--A
2015-2016 Regular Sessions
I N S E N A T E
February 9, 2015
___________
Introduced by Sens. KRUEGER, PERKINS -- read twice and ordered printed,
and when printed to be committed to the Committee on Investigations
and Government Operations -- recommitted to the Committee on Investi-
gations and Government Operations in accordance with Senate Rule 6,
sec. 8 -- committee discharged, bill amended, ordered reprinted as
amended and recommitted to said committee
AN ACT to amend the tax law, in relation to the deduction for stock
options
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraph (b) of subdivision 9 of section 208 of the tax
law is amended by adding a new subparagraph 22 to read as follows:
(22) IN THE CASE OF PROPERTY TRANSFERRED TO A PERSON IN CONNECTION
WITH THE PERFORMANCE OF SERVICES, ANY DEDUCTION RELATING TO STOCK
OPTIONS PURSUANT TO THE INTERNAL REVENUE CODE SECTION 83(H) FOR PROPERTY
DESCRIBED IN SUBSECTION (A) OF THAT SECTION, IN EXCESS OF THE AMOUNT THE
TAXPAYER WAS ALLOWED TO TREAT AS COMPENSATION COST WITH RESPECT TO THAT
PROPERTY IN THE YEAR THE STOCK OPTION WAS GRANTED UNDER GENERALLY
ACCEPTED ACCOUNTING PRINCIPLES FOR THE PURPOSE OF ASCERTAINING INCOME,
PROFIT, OR LOSS IN A REPORT OR STATEMENT TO SHAREHOLDERS, PARTNERS OR
OTHER PROPRIETORS (OR TO BENEFICIARIES).
S 2. This act shall take effect immediately and shall apply to taxable
years beginning on and after January 1, 2017.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05462-02-6
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