BILL NUMBER:  S6229

 TITLE OF BILL :  An act to amend the tax law, in relation to
designated accounts for personal income tax refunds

 PURPOSE :

To provide a mechanism that would permit New York State tax filers to
split their State tax refund between several accounts including the
New York State College Savings Program.

 SUMMARY OF PROVISIONS :

Section 1 amends subdivision (c) of section 3013 of the tax law, as
added by chapter 479 of the laws of 2011 to allow New York State tax
filers to direct deposit personal income tax refunds into up to three
accounts with financial institutions.

Section 2 is the effective date.

 JUSTIFICATION :

Currently in New York State individuals who are receiving a personal
income tax refund from the State of New York only have the option of
receiving this refund by prepaid debit card or direct deposit to a
designated account of the taxpayer.
              

This legislation would allow for personal income tax refunds to be
deposited into up to three accounts, including New York State College
Savings Program accounts that are held in the names of the taxpayer,
the taxpayer's spouse or joint accounts.

Furthermore, New York State has been a leader in enacting key programs
and initiatives to address both the costs and the academic supports
that are crucial to the future economic security of New York's youth.
By increase the number of people going to college New York State can
position itself as a global leader in having the best and brightest
minds to compete in the global market. To accomplish this, we need
ensure that youth, particularly low income youth, have 529 college
savings accounts established to help offset the huge financial burden
of obtaining a college education. Implementation of this proposal
would benefit both students and the State. For Students especially
those from low or moderate-income houses, the impact of a dedicated
college savings can be significant. Research has shown that having
even a small amount of college savings can foster a child's college
bond identity and can make the reality of his or her going to college.
Recent studies have shown that low and moderate income students
entering college with as little as $500 saved are almost 2.5 times
more likely to graduate from college those without any savings.

 LEGISLATIVE HISTORY :

New Bill.

 FISCAL IMPLICATIONS :

None to the State.

 EFFECTIVE DATE :
This act shall take effect on the ninetieth day after it shall have
become law.