BILL NUMBER: S5243A

SPONSOR: BOYLE
 
TITLE OF BILL:  An act to amend the tax law, in relation to excluding
from federal adjusted gross income the amount of any money or the value
of medals awarded to olympians or paralympians earning a maximum of
three hundred thousand dollars annually

 
PURPOSE OR GENERAL IDEA OF BILL:

The purpose of this bill is to eliminate taxation by the State of New
York on the value of medals won at the Summer and Winter Olympic Games,
as well as income earned as an award for winning those medals.

 
SUMMARY OF PROVISIONS:

Section 1 adds subsection (42) to section 612 of the tax law, allowing
an individual taxpayer with less than $300,000 in federal adjusted gross
income subtract the value of his or her Olympic medal(s), and any income
earned as an award for winning Olympic medal(s), from federal adjusted
gross income when reporting income on state tax, returns.
              

 
JUSTIFICATION:

The United States Olympic Committee (USOC) awards American athletes with
$25,000 for each gold medal, $15,000 for silver, and $10,000 for bronze.
Tax collectors at the federal and state level treat these awards as
income and subject to taxation. Furthermore, gold and silver medalists
are taxed for the value of the medals themselves-$564 and $305, respec-
tively.

The USOC is a non-profit 501(c)(3) organization that receives no direct
government funding except for select Paralympic military programs, and
is sustained primarily through private donations, broadcast rights,
merchandise sales, and corporate sponsorship.

Our Olympians bring much pride to our state and nation and they should
be celebrated, not taxed for their achievements. Most of them do not get
endorsement deals but, instead, survive on small stipends and sacrifice
much to compete in the games. The income threshold will ensure that the
deduction does not apply to high-income professional athletes.

18 New Yorkers came home with medals from the 2016 Summer Games, and the
State of New York will now reward them with a larger tax bill.  These
athletes should be allowed to keep their hard-earned award money and
exempt Olympic awards from income tax.

 
PRIOR LEGISLATIVE HISTORY:

New Bill

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

To be determined.

 
EFFECTIVE DATE:
This bill shall take effect immediately and shall be applicable to taxa-
ble years beginning on and after January 1, 2018.