BILL NUMBER:S5352

TITLE OF BILL:  An act to amend chapter 479 of the laws of 2011 amending
the  tax law relating to establishing the taxpayer refund choice act and
affirming the right of state residents to receive  personal  income  tax
refunds  by  paper  check  and  requiring the department of taxation and
finance to fully describe any debit card or direct deposit  program,  in
relation to extending the effectiveness thereof

PURPOSE:

To  ensure that state taxpayers continue to have the option of receiving
their personal income tax refunds by paper  check  in  addition  to  any
other options that may be offered.

SUMMARY OF PROVISIONS:

This  bill  amends  the  effective date provisions of Chapter 479 of the
Laws of 2011. It extends, for another five years, the expiration date of
this 2011 law.

EXISTING LAW:

Section 3013 of the Tax Law -- which was enacted subject to a  five-year
sunset  date  -provides  that  taxpayers  may  continue to receive their
personal income tax refund by paper  check,  and  may  opt  out  of  any
              

prepaid debit card or direct deposit program.

Section  3013 also requires the Tax Department to provide taxpayers with
a clear written statement setting forth these rights. Income  tax  forms
must  indicate  that the taxpayer has the option of receiving his or her
refund by various methods, including by personal check. In  any  written
notice  regarding prepaid debit cards, the Tax Department is required to
describe all features of such program, including any fees for ATM  with-
drawals or point of sale purchases.

JUSTIFICATION:

Every  year  millions of New Yorkers overpay their state and local taxes
on the wages they receive. These  overpaid  funds  remain  the  rightful
property  of  the taxpayers. Taxpayers are entitled to the timely refund
of their overpayment and should be able to receive their  refunds  in  a
manner  that is most convenient, understandable and best suited to their
individual financial needs.

A few years ago, the Tax Department implemented  a  prepaid  debit  card
refund  program. At the time, the Department was considering discontinu-
ing the ability of taxpayers to receive their  refund  by  paper  check.
However,  many  people  are comfortable with paper checks, and prefer to
receive their refund in this manner.

To ensure that consumers would still have this choice,  the  Legislature
passed  a law (Chapter 479 of 2011) to allow consumers to choose whether
to receive their refund by direct deposit, debit card  or  paper  check.
That law was made subject to a five year sunset date.

This  bill  recognizes  that  many  people do not want to be forced into
using debit cards, and would extend for an  additional  five  years  the
right of taxpayers to choose how they want to receive their refund.

FISCAL IMPLICATIONS:

None. This bill simply continues the existing refund payment options for
taxpayers.

EFFECTIVE DATE:

Immediately