Senate Passes Bill Requiring Prompt Delivery of State Tax Refunds

The New York State Senate today passed legislation (S1782), sponsored by Senator Carl L. Marcellino (R, Syosset), that would ensure timely payment of state income tax refunds. The bill requires the state Department of Taxation and Finance to pay tax refunds within 30 days of receiving a taxpayer’s return, unless there is a discrepancy in the return.

Senator Marcellino said, “There is no legitimate reason for the state to hold on to New Yorkers’ money. If citizens do the right thing and file on time, the state has a responsibility to get the refunds out the door in a timely fashion. It shouldn’t take up to eight weeks to get these checks in the mail. I think the state can do better and this legislation will make sure it does.”

As the April 15 deadline for filing tax returns within New York State approaches, it is important that all New Yorkers who overpaid their state taxes receive their refunds in a reasonable amount of time. However, there have been many instances of taxpayers having to wait three months or more before they received their refunds from the state.

Under today’s bill, if the state is unable to pay a tax refund due to a discrepancy in the return, then the state Department of Taxation and Finance would have to provide written notice to the taxpayer and a date when the discrepancy would be resolved. If the state fails to take these steps, it would be liable to pay interest on the refund owed to the taxpayer.

The bill will be sent to the Assembly.