NY State Senate Bill 2021-S8671

Senate Bill S8671

2021-2022 Legislative Session

Provides a tax credit for certain utility bill payments and establishes a moratorium on certain surcharges thereon

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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

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Mar 29, 2022	referred to budget and revenue

co-Sponsors

2021-S8671 (ACTIVE) - Details

See Assembly Version of this Bill:: A9849
Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Amd §606, Tax L; add §18, Pub Serv L
Versions Introduced in 2023-2024 Legislative Session:: S4875, A4736

2021-S8671 (ACTIVE) - Summary

Provides a tax credit for utility bill payments made in taxable years 2022 and 2023 based on the difference of the average monthly utility bill payment in the year in which the credit is claimed and the average monthly utility bill payment in the preceding three taxable years; establishes a moratorium on certain utility bill surcharges until April 1, 2023; provides for the repeal of such moratorium upon expiration thereof.

2021-S8671 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S8671

SPONSOR: MARTUCCI
 
TITLE OF BILL:

An act to amend the tax law and the public service law, in relation to
providing a tax credit for certain utility bill payments and establish-
ing a moratorium on certain surcharges thereon; and providing for the
repeal of certain provisions upon expiration thereof

 
PURPOSE:

To reduce consumer utility bills

 
SUMMARY OF PROVISIONS:

Section 1: Amends the tax law to create a utility tax credit for 2022
and 2023 equal to the monthly difference between consumer's bills in
2022 and 2023 and the previous three-year monthly average.

Section 2. Creates a one-year moratorium on the collection of PSC taxes
and surcharges placed on and collected through utility bills.

Section 3. Sets forth the effective date

 
JUSTIFICATION:

Right now, the state of New York faces an affordability crisis and no
sector is more pernicious than the steep increases in costs on utility
bills. Currently More than 1.2 million New Yorkers are in arrears and
many more are struggling to make on-time payments. Relief is badly need-
ed.

This legislation would create a tax credit to cover the delta between
bills in 2022 and 2023 when compared with the previous three-year aver-
age. It also establishes a one-year moratorium on the taxes collected on
your bill, which total on average 25% of the total amount.

Consumers have seen bills double and triple these last few months and at
least one of the causes for that is government and therefore government
must be part of the solution.

 
LEGISLATIVE HISTORY:

This is a new bill.

 
FISCAL IMPLICATIONS:

To be determined

 
EFFECTIVE DATE:
Immediately

2021-S8671 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8671
 
                             I N  S E N A T E
 
                              March 29, 2022
                                ___________
 
 Introduced  by Sen. MARTUCCI -- 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 and the public service law, in  relation  to
   providing  a  tax  credit for certain utility bill payments and estab-
   lishing a moratorium on certain surcharges thereon; and providing  for
   the repeal of certain provisions upon expiration thereof

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 606 of the tax law  is  amended  by  adding  a  new
 subsection (nnn) to read as follows:
   (NNN) CREDIT FOR UTILITY CHARGES. (1) ALLOWANCE OF CREDIT. FOR TAXABLE
 YEARS  BEGINNING  ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-TWO AND
 ENDING DECEMBER THIRTY-FIRST, TWO  THOUSAND  TWENTY-THREE,  A  QUALIFIED
 TAXPAYER  SHALL  BE ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN PARA-
 GRAPH TWO OF THIS SUBSECTION AGAINST THE TAX IMPOSED BY THIS ARTICLE.
   (2) COMPUTATION OF CREDIT. THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS
 SUBSECTION SHALL BE THE DIFFERENCE OF THE TOTAL UTILITY CHARGES PAID  BY
 THE  TAXPAYER DURING THE TAXABLE YEAR IN WHICH THE CREDIT IS CLAIMED AND
 THE AVERAGE OF THE TAXPAYER'S TOTAL UTILITY PAYMENTS  DURING  THE  THREE
 TAXABLE YEARS IMMEDIATELY PRECEDING THE TAXABLE YEAR IN WHICH THE CREDIT
 IS CLAIMED.
   (3)  "UTILITY COSTS" SHALL MEAN CHARGES PAID FOR  HEAT, GAS, ELECTRIC-
 ITY AND OTHER SERVICES PROVIDED TO A TAXPAYER BY AN  ENTITY  SUBJECT  TO
 THE JURISDICTION OF THE PUBLIC SERVICE COMMISSION.
   (4)  CARRYOVER  OF CREDIT. IF THE AMOUNT OF THE CREDIT, AND CARRYOVERS
 OF SUCH CREDIT, ALLOWABLE UNDER THIS SUBSECTION  FOR  ANY  TAXABLE  YEAR
 SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, SUCH EXCESS AMOUNT MAY BE
 CARRIED  OVER  TO THE FIVE TAXABLE YEARS NEXT FOLLOWING THE TAXABLE YEAR
 WITH RESPECT TO WHICH THE CREDIT IS ALLOWED AND MAY BE DEDUCTED FROM THE
 TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
   (5) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT  ALLOWED  UNDER
 THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR
 SUCH  YEAR,  THE  EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE
 CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS  OF  SECTION  SIX
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD15210-01-2
 S. 8671                             2
 
 HUNDRED  EIGHTY-SIX OF THIS ARTICLE; PROVIDED, HOWEVER, THAT NO INTEREST
 SHALL BE PAID THEREON.
   (6)  ADMINISTRATION.  THE  COMMISSIONER  SHALL  HAVE  THE AUTHORITY TO
 PROMULGATE SUCH RULES AND REGULATIONS AS MAY BE NECESSARY FOR THE  PROC-
 ESSING, DETERMINATION AND GRANTING OF CREDITS UNDER THIS SUBSECTION.
   §  2.  The public service law is amended by adding a new section 18 to
 read as follows:
   § 18. MORATORIUM ON SURCHARGES. NOTWITHSTANDING THE PROVISIONS OF THIS
 CHAPTER OR OF ANY LAW, RULE, REGULATION OR ORDER TO  THE  CONTRARY,  THE
 COMMISSION  SHALL  NOT  IMPOSE OR COLLECT ANY SURCHARGES ASSOCIATED WITH
 THE SYSTEM BENEFIT CHARGE, OR THE RENEWABLE PORTFOLIO STANDARD,  OR  THE
 ENERGY  EFFICIENCY  PORTFOLIO  STANDARD, OR ANY SIMILAR FUND THAT MAY BE
 CREATED BY ORDER OF THE COMMISSION BEFORE THE  EFFECTIVE  DATE  OF  THIS
 SECTION,  WHETHER  SUCH  FUND  IS NEW OR IS A RESULT OF COMBINING ALL OR
 SOME OF THE SURCHARGES REFERENCED HEREIN.
   § 3. This act shall take effect immediately; provided that section two
 of this act shall  expire  April  1,  2023,  when  upon  such  date  the
 provisions of such section shall be deemed repealed.

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Senate Bill S8671

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Sponsored By

Mike Martucci