Nozzolio Announces New Laws Taking Effect

Michael F. Nozzolio

January 02, 2007

Albany- New York State Senator Michael F. Nozzolio (R-Fayette) today announced that tax credits and reductions that will save New York families and businesses almost $1 billion highlight the list of new state laws that took effect on January 1, 2007.

“Throughout my tenure in the Legislature, I have worked to provide substantial relief to New York’s hardworking, overburdened taxpayers,” Senator Nozzolio said. “These new laws going into effect will save New York’s families and businesses almost a billion dollars in taxes and will help to protect jobs. As we move forward into a new legislative session, I remain committed to working to provide greater relief to the hardworking taxpayers of New York State.”

Senator Nozzolio recently announced a Senate plan to significantly expand a property tax relief program that would provide $2.6 billion in property tax relief this year and $3.4 billion in 2008. The plan would give voters greater input on local property tax rates and establish a Blue Ribbon Commission to make reforms to help reduce property taxes.

Other measures taking effect are:

Empire State Child Tax Credit
In 2007, a taxpayer will be allowed a personal income tax credit equal to one-third of the federal child tax credit for children between the ages of four and seventeen, saving New York parents $600 million in 2007.

Elimination of the Marriage Penalty
Beginning in 2007, married taxpayers will see an increase in their standard deduction to $15,000 for joint filers and $7,500 for separate filers, eliminating the “marriage penalty.” This tax reduction will save married taxpayers $41 million in 2007.

Volunteer Firefighters and Emergency Personnel
There are approximately 130,000 volunteer firefighter and emergency personnel in New York. Many counties in the state offer a partial exemption against their property taxes for service in these volunteer fire departments. In order to encourage more New York residents to join their local volunteer fire departments, the Legislature provided a $200 personal income tax credit for volunteer firefighters and emergency personnel not receiving the local property tax exemption, saving them $26 million.

Medicaid Inspector General
In 2006, the Legislature passed legislation establishing an independent Office of Medicaid Inspector General within the State Department of Health. Effective January 1, 2007, the law directs the Inspector to establish regulations requiring each Medicaid provider to implement Medicaid Provider Compliance Programs, in order to organize provider resources to resolve payment discrepancies and detect inaccurate billings as efficiently as possible, and to impose checks and balances on the system to prevent future recurrences.