NY State Senate Bill 2019-S1579

Senate Bill S1579

2019-2020 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
Jan 08, 2020	referred to investigations and government operations
Jan 15, 2019	referred to investigations and government operations

2019-S1579 (ACTIVE) - Details

See Assembly Version of this Bill:: A4886
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
2017-2018: S4380, A1239

2019-S1579 (ACTIVE) - Summary

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

2019-S1579 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S1579

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:

S4380a/A1239a: Referred to Investigations and Government
Operations/Referred to Ways and Means

S4126/A6803A: Referred to Investigations and Government
Operations/Referred to 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.

2019-S1579 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1579
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             January 15, 2019
                                ___________
 
 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 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
 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD00107-01-9

 S. 1579                             2
 
 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, 2019; 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 subsection 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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