NY State Senate Bill 2019-S3018

Senate Bill S3018

2019-2020 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 Budget And Revenue 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

Please enter your contact information

First Name

Last Name

Email Address

A valid email address is required.

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2020	referred to budget and revenue
Jan 31, 2019	referred to budget and revenue

2019-S3018 (ACTIVE) - Details

Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Add §608, Tax L
Versions Introduced in 2017-2018 Legislative Session:: S7007

2019-S3018 (ACTIVE) - Summary

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

2019-S3018 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S3018

SPONSOR: KENNEDY
 
TITLE OF BILL:

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

 
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:

2017-18: S.7007 Referred to Investigations and Government Operations
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.

2019-S3018 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3018
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             January 31, 2019
                                ___________
 
 Introduced  by  Sen. KENNEDY -- read twice and ordered printed, and when
   printed to be committed to the Committee on Budget and Revenue
 
 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 SUBSECTION (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 SUBSECTION (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 APPLI-
 CABLE  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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD04124-01-9

 S. 3018                             2
 
 CHANGE  OF  RESIDENCE  OCCURS, BUT SUBJECT TO APPROVAL OF THE DEPARTMENT
 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  SUBSECTION  (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 SUBSECTION
 (B) OF THIS SECTION, OR TAKING LESS  THAN  THE  TOTAL  AMOUNT  ALLOWABLE
 UNDER SUBSECTION (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.

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.