NY State Senate Bill 2017-S7007

Senate Bill S7007

2017-2018 Legislative Session

Establishes a childcare advance which enables certain taxpayers to defer payment of a portion of their tax liability

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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2018	referred to investigations and government operations

2017-S7007 (ACTIVE) - Details

See Assembly Version of this Bill:: A4943
Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Add §608, Tax L
Versions Introduced in Other Legislative Sessions:: 2015-2016: A9699
2019-2020: S3018

2017-S7007 (ACTIVE) - Summary

Establishes a childcare advance which enables certain taxpayers to defer payment of a portion of their tax liability.

2017-S7007 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S7007

SPONSOR: KENNEDY
 
TITLE OF BILL:  An act to amend the tax law, in relation to establish-
ing a childcare advance which enables certain taxpayers to defer payment
of a portion of their tax liability

 
PURPOSE:

Establishes the Childcare Advance, a deferral of state taxes to help
families afford the costs of childcare.

 
SUMMARY OF PROVISIONS:

New section 608 of the tax law establishes the Childcare Advance, a
deferral of state taxes to help families afford the costs of childcare.

Section 608(a) permits resident taxpayers with eligible "employment-re-
lated" expenses, as defined in Internal Revenue Code ("IRC") Section
21(b)(2) for care of a dependent under age 5 to defer payment of their
tax liability for that taxable year by the amount of those expenses, but

not to exceed two thousand dollars.

Section 608(b) provides for repayment of deferrals over a ten year peri-
od commencing when the taxpayer is no longer taking the deferral, and in
all cases requires repayment of each year's deferral over a ten-year
period starting not later than five years after that deferral. Repayment
is to be made without interest.

Section 608(c) provides for repayment in cases where a taxpayer moves to
a residence outside New York which does not maintain tax reciprocity
with New York.

Section 608(d) provides for notice from the Department to taxpayers who
have taken the deferral established in Section (a) above of their
deferred liability, tax year in which repayment will begin, and an esti-
mate of the amount for which taxpayer will be liable once eligibility
expires.

Section 608(f) directs regulations to permit the repayment of deferrals
through tax withholding and to address repayment in cases of divorce.

 
JUSTIFICATION:

Childcare costs are one of the greatest expenses for families with young
children in New York State. New York families face some of the highest
childcare costs in the nation, including average annual costs from
$10,556 to $14,144 per year for an infant and $9,776 to $11,700 for a
four-year-old.

Childcare costs exceed housing costs for many families and consume a
significant percentage of a family's income. And these costs come at a
critical time for families, when the care provided to children has the
greatest impact on their long-term development and when many young fami-
lies are just starting out and working to make other investments.

At the same time, affordable childcare is critical for working families,
and can have positive impacts on children's health and long-term devel-
opment and women's participation in the workforce, among other benefits.
By allowing families to defer up to $2,000 of their state tax liability
each year while young children are in childcare, the "Childcare Advance"
would make childcare substantially more affordable for thousands of New
York families and result in millions per year in savings and financial
returns.

 
LEGISLATIVE HISTORY:

2016: S6714/A9699 - REFERRED TO INVESTIGATIONS AND GOVERNMENT
OPERATIONS/referred to ways and means

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
Tax year for the year in which the legislation becomes law.

2017-S7007 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7007
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 3, 2018
                                ___________
 
 Introduced  by  Sen. KENNEDY -- read twice and ordered printed, and when
   printed to be committed to the Committee on Investigations and Govern-
   ment Operations
 
 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
 SUCH  CHANGE OF RESIDENCE OCCURS, BUT SUBJECT TO APPROVAL OF THE DEPART-

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00452-01-7

 S. 7007                             2
 
 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.

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