Assembly Bill A4943

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4943
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 6, 2017
                                ___________
 
 Introduced  by  M.  of  A.  O'DONNELL  --  read once and referred to the
   Committee on Ways and Means
 
 AN ACT to amend the tax law, in relation  to  establishing  a  childcare
   advance  which enables certain taxpayers to defer payment of a portion
   of their tax liability

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. The tax law is amended by adding a new section 608 to read
 as follows:
   § 608. CHILDCARE ADVANCE. (A) ANY RESIDENT TAXPAYER WHO, IN A  TAXABLE
 YEAR,  HAS  "EMPLOYMENT  RELATED  EXPENSES"  AS  DEFINED IN THE INTERNAL
 REVENUE CODE SECTION 21(B)(2) FOR A DEPENDENT UNDER AGE FIVE  AND  WOULD
 BE  ELIGIBLE TO USE THOSE EXPENSES AS THE BASIS FOR CALCULATING A CREDIT
 UNDER INTERNAL REVENUE CODE SECTION 21 (WITHOUT REGARD  TO  WHETHER  THE
 TAXPAYER  IN FACT CLAIMED THE CREDIT UNDER SUCH SECTION FOR SUCH TAXABLE
 YEAR), MAY DEFER PAYMENT OF THEIR TAX LIABILITY FOR  THAT  TAXABLE  YEAR
 UNDER THIS ARTICLE BY THE AMOUNT OF THOSE EXPENSES BUT NOT TO EXCEED TWO
 THOUSAND DOLLARS.
   (B)  ANY  TAXPAYER  WHO  DEFERS TAX LIABILITY UNDER SUBDIVISION (A) OF
 THIS SECTION SHALL BE LIABLE: (I) ONCE THE TAXPAYER IS NO LONGER  TAKING
 THE DEFERRAL, FOR THE FULL AMOUNT PREVIOUSLY DEFERRED DIVIDED INTO EQUAL
 PAYMENTS  OVER  TEN  YEARS,  EXCEPT  THAT  (II)  IN ANY FUTURE YEARS THE
 TAXPAYER TAKES THE DEFERRAL, THAT TAXPAYER IS LIABLE ONLY FOR  ONE-TENTH
 OF  EACH  DEFERRAL  TAKEN  FIVE  OR MORE YEARS PRIOR UNTIL EACH OF THOSE
 DEFERRALS IS REPAID. AT NO  POINT  SHALL  THE  TAXPAYER  BE  LIABLE  FOR
 AMOUNTS PREVIOUSLY REPAID.  REPAYMENT SHALL BE MADE WITHOUT INTEREST.
   (C)  ANY  TAXPAYER  WHO  DEFERS TAX LIABILITY UNDER SUBDIVISION (A) OF
 THIS SECTION, AND WHO MOVES TO A RESIDENCE OUTSIDE THE STATE OF NEW YORK
 IN A STATE, TERRITORY OR COUNTRY WHICH DOES NOT MAINTAIN  EFFECTIVE  AND
 APPLICABLE  RECIPROCITY  WITH THE STATE OF NEW YORK, SHALL BE LIABLE FOR
 THE ENTIRE AMOUNT DEFERRED ON THE TAX FILING FOR THE TAX YEAR  IN  WHICH
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD00452-01-7

 A. 4943                             2
 
 SUCH  CHANGE OF RESIDENCE OCCURS, BUT SUBJECT TO APPROVAL OF THE DEPART-
 MENT SHALL BE DIRECTED TO REPAY THAT LIABILITY THROUGH  A  PAYMENT  PLAN
 APPROVED BY THE DEPARTMENT.
   (D)  AT  THE  END  OF EVERY TAX YEAR, THE DEPARTMENT SHALL NOTIFY EACH
 TAXPAYER WHO HAS DEFERRED TAX LIABILITY UNDER SUBDIVISION  (A)  OF  THIS
 SECTION OF THE TOTAL AMOUNT OF THEIR DEFERRED LIABILITY, THE TAX YEAR IN
 WHICH  REPAYMENT WILL BEGIN, AND AN ESTIMATE OF THE AMOUNT FOR WHICH THE
 TAXPAYER WILL BE LIABLE EACH YEAR ONCE THE ELIGIBILITY EXPIRES.
   (E) NOTHING IN THIS SECTION SHALL PREVENT  A  TAXPAYER  FROM  REPAYING
 ACCUMULATED LIABILITY EARLIER THAN THE SCHEDULE SET FORTH IN SUBDIVISION
 (B)  OF  THIS  SECTION,  OR  TAKING LESS THAN THE TOTAL AMOUNT ALLOWABLE
 UNDER SUBDIVISION (A) OF THIS SECTION IN ANY GIVEN TAX YEAR.
   (F) THE DEPARTMENT MAY PROVIDE FOR THE REPAYMENT  OF  DEFERRALS  UNDER
 THIS  SECTION  TO BE MADE THROUGH PAYROLL WITHHOLDING IN ACCORDANCE WITH
 SECTION SIX HUNDRED SEVENTY-ONE  OF  THIS  ARTICLE,  AND  SHALL  ADDRESS
 REPAYMENT IN CASES OF DIVORCE.
   §  2.  This  act  shall take effect immediately and shall be deemed to
 have been in full force and effect on and after  January  first  of  the
 calendar  year  in  which  it  takes effect and shall apply to tax years
 commencing on and after such date.