S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7063
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                               May 26, 2021
                                ___________
 
 Introduced  by  Sen. JACKSON -- 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 part EEE of chapter 59 of  the  laws  of
   2021  amending  the  tax law establishing the excluded workers fund to
   provide payments to workers who suffered a loss of work-related  earn-
   ings or a major source of household income during a state of emergency
   declared  by  the  governor and who are otherwise ineligible for unem-
   ployment insurance or other state or federal unemployment benefit,  in
   relation  to exempting benefits from the excluded worker fund from New
   York state income taxes
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 3 of section 2 of part EEE of chapter 59 of the
 laws of 2021 amending the tax law establishing the excluded workers fund
 to provide payments to workers who suffered a loss of work-related earn-
 ings  or  a major source of household income during a state of emergency
 declared by the governor and who are otherwise ineligible for  unemploy-
 ment  insurance  or  other  state  or  federal  unemployment benefit, is
 amended to read as follows:
   3. Benefit computation. The benefit of the excluded  worker  shall  be
 computed as follows:
   (a)  The  benefit  for each excluded worker who filed a tax return for
 either tax years 2018, 2019, or 2020 with the department of taxation and
 finance using a valid United States individual  taxpayer  identification
 number  (ITIN)  and  any other excluded worker who is deemed eligible by
 the commissioner of labor for benefits  pursuant  to  paragraph  (k)  or
 paragraph  (l) of subsection five of this section shall be fifteen thou-
 sand six hundred dollars [minus an automatic deduction of seven  hundred
 eighty  dollars,  which  shall be remitted to the department of taxation
 and finance for the purposes of satisfying the provisions of  part  five

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

                                                            LBD11514-01-1

 S. 7063                             2

 of  article  twenty-two  of the tax law. All such deductions received by
 the commissioner of the department of taxation and finance  pursuant  to
 this  paragraph  shall  be deposited and disposed of pursuant to section
 one  hundred  seventy-one-a of the tax law applicable to article twenty-
 two of the tax law].
   (b) The benefit for all other excluded workers deemed eligible by  the
 commissioner of labor for benefits except those deemed eligible pursuant
 to  paragraph  (j), (k), or (l) of subsection five of this section shall
 be three thousand two hundred dollars [minus an automatic  deduction  of
 one  hundred sixty dollars, which shall be remitted to the department of
 taxation and finance for the purposes of satisfying  the  provisions  of
 part  five  of  article  twenty-two  of the tax law. All such deductions
 received by the commissioner of the department of taxation  and  finance
 pursuant  to  this paragraph shall be deposited and disposed of pursuant
 to section one hundred seventy-one-a of the tax law applicable to  arti-
 cle twenty-two of the tax law].
   (c)    [When  an  excluded worker files a New York personal income tax
 return for tax year 2021, the excluded  worker  may  reconcile  any  tax
 liability  for  such tax year and claim any refund to which the excluded
 worker is entitled] NOTWITHSTANDING ANY PROVISION OF LAW TO THE  CONTRA-
 RY, BENEFITS GRANTED TO AN EXCLUDED WORKER PURSUANT TO THE PROVISIONS OF
 THIS ACT SHALL BE EXEMPT FROM TAXATION PURSUANT TO ARTICLE TWENTY-TWO OF
 THE TAX LAW.
   §  2.  Subsection  (i)  of  section  601  of the tax law is relettered
 subsection (j) and a new subsection (i) is added to read as follows:
   (I) RECIPIENTS OF EXCLUDED WORKER FUND BENEFITS.  NOTWITHSTANDING  THE
 PROVISIONS  OF SUBSECTIONS (A), (B), (C) AND (D) OF THIS SECTION AND ANY
 OTHER PROVISION OF THIS ARTICLE, FOR  TAXABLE  YEARS  BEGINNING  ON  AND
 AFTER  JANUARY  FIRST,  TWO  THOUSAND  TWENTY-ONE,    BENEFITS  FROM THE
 EXCLUDED WORKER FUND ESTABLISHED PURSUANT TO PART EEE OF CHAPTER  FIFTY-
 NINE  OF  THE  LAWS  OF TWO THOUSAND TWENTY-ONE SHALL BE EXEMPT FROM TAX
 UNDER THIS ARTICLE REGARDLESS OF  WHETHER  SUCH  INCOME  IS  SUBJECT  TO
 FEDERAL INCOME TAXATION.
   §  3. This act shall take effect immediately and shall be deemed to be
 in full force and effect on and after April 19, 2021.