NY State Senate Bill 2017-S4380A

Senate Bill S4380A

2017-2018 Legislative Session

Repeals subsection (i) of section 612 of the tax law relating to the elimination of the personal income tax deduction for percentage depletion; repealer

download bill text pdf

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Feb 14, 2018	print number 4380a
Feb 14, 2018	amend (t) and recommit to investigations and government operations
Jan 03, 2018	referred to investigations and government operations
Feb 10, 2017	referred to investigations and government operations

Bill Amendments

Original

A (Active)

2017-S4380 - Details

See Assembly Version of this Bill:: A1239
Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Rpld §612 sub§ (i), sub§ (b) ¶10, sub§ (c) ¶13, amd §618, Tax L; amd §11-1712, NYC Ad Cd
Versions Introduced in Other Legislative Sessions:: 2015-2016: A6803
2019-2020: S1579, A4886

2017-S4380 - Summary

Repeals provisions relating to the elimination of the personal income tax deduction for percentage depletion and makes technical corrections.

2017-S4380 - Sponsor Memo

2017-S4380 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4380
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             February 10, 2017
                                ___________
 
 Introduced  by Sen. GALLIVAN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Investigations and Govern-
   ment Operations
 
 AN ACT to repeal subsection (i) of section 612 of the tax  law  relating
   to the elimination of the personal income tax deduction for percentage
   depletion

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subsection (i) of section 612 of the tax law is REPEALED.
   § 2. This act shall take effect immediately and  shall  apply  to  all
 taxable  years  beginning on or after January first, two thousand seven-
 teen.
 
 
 
 
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00461-01-7

2017-S4380A (ACTIVE) - Details

See Assembly Version of this Bill:: A1239
Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Rpld §612 sub§ (i), sub§ (b) ¶10, sub§ (c) ¶13, amd §618, Tax L; amd §11-1712, NYC Ad Cd
Versions Introduced in Other Legislative Sessions:: 2015-2016: A6803
2019-2020: S1579, A4886

2017-S4380A (ACTIVE) - Summary

Repeals provisions relating to the elimination of the personal income tax deduction for percentage depletion and makes technical corrections.

2017-S4380A (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S4380A

SPONSOR: GALLIVAN
 
TITLE OF BILL:  An act to amend the tax law and the administrative
code of the city of New York, in relation to making technical
corrections thereto; to repeal subsection (i) of section 612 of the tax
law relating to the elimination of the personal income tax deduction for
percentage depletion; and to repeal certain provisions of the tax law
relating thereto

 
PURPOSE:

To eliminate the addback for purposes of the New York State income tax
for residents of the federal depletion allowance for mining-related
businesses.

 
SUMMARY OF PROVISIONS:

Section 1 of the bill would repeal subsection (i) of Section 612 of the
tax law.

Section 2 amends subdivision (i) of section 11-1712 of the administra-
tive code of the city of New York.

Section 3 would repeal paragraph 10 of subsection (b) of section 612 of
the tax law.

Section 4 would repeal paragraph 13 of subsection (c) of section 612 of
the tax law.

Section 5-6 amend subsection 4 of section 618 of the tax law.

Section 7 provides the effective date.

 
JUSTIFICATION:

Chapter 1 of the laws of 1972 enacted a series of revenue proposals to
address the State's fiscal crisis during an extraordinary session of the
Legislature called by Governor Rockefeller. Included in the enactments
was a provision to require the add-back for purposes of the New York
State personal income tax for residents the federal depletion allowance
for mining related businesses. The federal depletion allowance reflects
the capital-intensive nature of these businesses, and for over 40 years
this industry has been denied the benefit of this reduction at the State
level. Repeal would insure that those with mining operations would have
an incentive to continue to be headquartered within New York.

 
LEGISLATIVE HISTORY:

S4126/A6803A: referred to investigations and government operations/ways
and means

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take apply to all taxable years beginning on or after
January first, two thousand eighteen.

2017-S4380A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  4380--A
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             February 10, 2017
                                ___________
 
 Introduced  by Sen. GALLIVAN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Investigations and Govern-
   ment Operations -- recommitted to the Committee on Investigations  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 and the administrative code of the city of
   New York, in relation to  making  technical  corrections  thereto;  to
   repeal  subsection  (i)  of section 612 of the tax law relating to the
   elimination of  the  personal  income  tax  deduction  for  percentage
   depletion;  and  to  repeal certain provisions of the tax law relating
   thereto
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subsection (i) of section 612 of the tax law is REPEALED.
   §  2. Subdivision (i) of section 11-1712 of the administrative code of
 the city of New York, as amended by chapter 333 of the laws of 1987,  is
 amended to read as follows:
   (i)  In  the case of mines, oil and gas wells and other natural depos-
 its, any allowance for percentage  depletion  pursuant  to  section  six
 hundred  thirteen  or  section  six  hundred  thirteen A of the internal
 revenue code shall be added to federal adjusted gross  income.  However,
 with  respect  to  the  property  as  to  which such addition to federal
 adjusted gross income is required, an allowance for depletion  shall  be
 subtracted  from  federal adjusted gross income in the amount that would
 be deductible under section six hundred  eleven  of  such  code  if  the
 deduction for an allowance for depletion were computed without reference
 to  such section six hundred thirteen or section six hundred thirteen A.
 [With respect to the computation of depletion pursuant to this  subdivi-
 sion, the basis for such computation shall be the basis for state income
 tax  purposes  provided  for  in  subsection  (i) of section six hundred

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD00461-02-8

 S. 4380--A                          2

 twelve of the tax law.] The portion of any gain from the sale  or  other
 disposition  of  such  property  having a higher adjusted basis for city
 income tax purposes than for federal income tax purposes, that does  not
 exceed  such  difference  in  basis,  shall  be  subtracted from federal
 adjusted gross income.
   § 3. Paragraph 10 of subsection (b) of section 612 of the tax  law  is
 REPEALED.
   §  4.  Paragraph 13 of subsection (c) of section 612 of the tax law is
 REPEALED.
   § 5. Subsection 4 of section 618 of the tax law, as amended by section
 9 of part C of chapter 25 of the laws of 2009, is  amended  to  read  as
 follows:
   (4)  There  shall  be  added  or  subtracted  (as the case may be) the
 modifications described in paragraphs (6)[,  (10)],  (17),  (18),  (19),
 (20),  (21),  (22), (23), (24), (25), (26), (27), (29), (38) and (39) of
 subsection (b) and in paragraphs (11)[, (13)], (15), [(19),] (20), (21),
 (22), (23), (24), (25), (26) and (28) of subsection (c) of  section  six
 hundred twelve of this part.
   § 6. Subsection 4 of section 618 of the tax law, as separately amended
 by  section 5 of part HH-1 of chapter 57 of the laws of 2008 and section
 9 of part C of chapter 25 of the laws of 2009, is  amended  to  read  as
 follows:
   (4)  There  shall  be  added  or  subtracted  (as the case may be) the
 modifications described in paragraphs (6)[,  (10)],  (17),  (18),  (19),
 (20),  (21),  (22), (23), (24), (25), (26), (27), [(28),] (29), (38) and
 (39) of subsection (b) and in paragraphs  (11)[,  (13)],  (15),  [(19),]
 (20),  (21),  (22), (23), (24), (25), (26) and (28) of subsection (c) of
 section six hundred twelve of this part.
   § 7. This act shall take effect immediately and  shall  apply  to  all
 taxable  years  beginning on or after January 1, 2018; provided that the
 amendments to subsection 4 of section 618 of the tax law made by section
 five of this act shall be subject to the  expiration  and  reversion  of
 such  subdivision  pursuant  to  section 8 of chapter 782 of the laws of
 1988, as amended, when upon such date the provisions of section  six  of
 this act shall take effect.

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