NY State Senate Bill 2021-S4355

Senate Bill S4355

2021-2022 Legislative Session

Excludes from state income tax certain pandemic relief funds

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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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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2022	referred to budget and revenue
Feb 03, 2021	referred to budget and revenue

co-Sponsors

2021-S4355 (ACTIVE) - Details

See Assembly Version of this Bill:: A6962
Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Add §622, Tax L

2021-S4355 (ACTIVE) - Summary

Excludes from state income tax pandemic relief funds received pursuant to Federal Pandemic Unemployment compensation benefits and the federal contribution portion of weekly relief payments under a wages assistance program that is provided as part of the CARES act.

2021-S4355 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S4355

SPONSOR: KAPLAN
 
TITLE OF BILL:

An act to amend the tax law, in relation to excluding from state income
tax certain pandemic relief funds

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 ads a new section 622 to the tax law to state that pandemic
relief funds received by a New York resident pursuant to the Federal
Pandemic Unemployment Compensation

(FPUC) shall be exempt from state taxation. This section further states
that the funds received pursuant to the Lost Wages Assistance Program
shall also be free from state income tax.

Section 2 is the effective date.

 
JUSTIFICATION:

To help address mass unemployment and assist individuals who lost their
jobs, the Federal government enacted various measures providing addi-
tional assistance beyond traditional unemployment. One such avenue
created was the Federal Pandemic Unemployment Compensation program, that
provided an amount of initially $600 a week per individual, which ended
on July 31, 2020.  Subsequent to that, the lost wage assistance program
was created that put $300 into New Yorkers pockets for a period of six
weeks. A new CARES Act passed in December which reauthorized an addi-
tional $300 a week under the FPUC.

These funds have proven to be invaluable to New Yorkers struggling to
make ends meet. However, there is a problem on the horizon. Under
current law, an individual who is receiving Unemployment is notified
they may choose to withhold state and/or federal taxes from their bene-
fit or may have it deducted. This is a personal decision, as some indi-
viduals need the maximum benefit up front, so they defer paying taxes on
them until they file their state tax return, while others withhold taxes
from each benefit amount to avoid being hit with a possibly large amount
when they file their taxes.

However, as structured the Federal Pandemic Unemployment Compensation,
and Lost Wage Assistance Program did not allow an individual to withhold
taxes, nor are recipients likely aware they will owe money on these
funds. What this means is that when filing their taxes in 2021 those
individuals who lost their job and can least afford a surprise on their
tax bill are likely to find a shocking unfortunate surprise in money
owed to New York. This legislation aims to provide tax relief to those
individuals most in need.

 
PRIOR LEGISLATIVE HISTORY:

New Bill.

 
FISCAL IMPACT:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2021-S4355 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4355
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             February 3, 2021
                                ___________
 
 Introduced  by  Sen.  KAPLAN -- 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 excluding from state  income
   tax certain pandemic relief funds
 
   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 622 to  read
 as follows:
   § 622. PANDEMIC RELIEF FUNDS RECEIVED EXEMPT FROM STATE INCOME TAX. 1.
 ANY  FUNDS  RECEIVED  BY  A  RESIDENT  OF  THE STATE PURSUANT TO FEDERAL
 PANDEMIC UNEMPLOYMENT COMPENSATION  BENEFITS  SHALL  NOT  BE  CONSIDERED
 INCOME  FOR  STATE  INCOME  TAX  PURPOSES AND SHALL BE EXEMPT FROM STATE
 TAXATION.
   2. IF A RESIDENT OF THE STATE SHALL  RECEIVE  A  FOUR  HUNDRED  DOLLAR
 WEEKLY  ASSISTANCE  PAYMENT  PURSUANT TO A LOST WAGES ASSISTANCE PROGRAM
 APPROVED BY THE SECRETARY OF HOMELAND SECURITY ACTING THROUGH THE FEDER-
 AL EMERGENCY MANAGEMENT AGENCY ADMINISTRATOR AS PART OF THE  CORONAVIRUS
 AID,  RELIEF,  AND  ECONOMIC SECURITY ACT (CARES ACT), THE THREE HUNDRED
 DOLLAR PORTION OF EACH PAYMENT REFLECTING A FEDERAL  CONTRIBUTION  SHALL
 NOT  BE  CONSIDERED  INCOME  FOR  STATE INCOME TAX PURPOSES AND SHALL BE
 EXEMPT FROM STATE TAXATION.
   § 2. This act shall take effect immediately.
 
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06323-02-1

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Senate Bill S4355

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Sponsored By

Anna M. Kaplan