The New York State Senate today passed legislation, (S.3047) sponsored by Senator Carl L. Marcellino (R, Syosset), that would ensure timely payment of state income tax refunds. The bill requires the state to pay tax refunds within 30 days of the receipt of a taxpayer’s return, unless there is a discrepancy in the return.
“If taxpayers who do the right thing and file on time, the state should do the right thing and get the refunds out the door in a timely fashion,” said Senator Marcellino. “It shouldn’t take up to eight weeks to get your money back. I think the state can do better and this legislation would make sure that they do.”
Traditionally, the state Department of Taxation and Finance has held returns requesting refunds for up to two months, starting from when taxpayers file their returns to when they may actually see the refund. New York State taxpayers deserve to see their hard-earned money back in their pockets within a reasonable amount of time.
If there is a discrepancy in the tax return, the state 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 to the taxpayer.
The bill will be sent to the Assembly.