S2661-2011 Actions

• Jan 27, 2011: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

S2661-2011 Memo

BILL NUMBER:S2661

TITLE OF BILL:
An act
to allow certain retired federal employees to apply for refunds from
personal income taxes for the years between 1985 and 1988

SUMMARY:
Permits any retired federal employee who retired before or on the
taxable years 1985 through 1988 who did not receive a formal notice
from the New York State Department of Taxation and Finance that they
were eligible to file a claim for a refund on their personal income
taxes paid during such taxable years for taxes paid on their federal
pension to be allowed to file for such a refund if they do so on or
before December 31, 2005.

JUSTIFICATION:
Currently, there is a provision in the tax law that states that an
amended return must be filed within three years. However, a 1989
Supreme Court decision stated that it is illegal for states to exempt
from taxes the pension income of retired State and local government
employees without giving the same exemption to retired federal
workers. The court decision stated that New York was among the
sixteen states that discriminated against federal retirees. Pursuant
to the court decision federal retirees in New York State have begun
to receive millions of dollars in refunds due to dollars the state
incorrectly collected over the course of several years. However, only
a share of retirees affected are getting their money back, because
thousands more had no idea that they had to file with the tax
department five years ago in order to secure a refund.
This legislation seeks to correct the inequity by requiring that
retirees who were not notified of the refund opportunity to now
receive notice from the New York State Department of Taxation and
Finance they are eligible to file for a refund. The time frame for
filing for refunds should be extended to include all retirees who
were illegally taxed.

FISCAL IMPLICATIONS:
To be determined.

EFFECTIVE DATE:
Immediately.

S2661-2011 Text

 S T A T E   O F   N E W   Y O R K
 
 
                                         2661
 2011-2012 Regular Sessions
 I N  SENATE
 January 27, 2011
 
 Introduced  by  Sen.  KRUGER -- read twice and ordered printed, and when
 printed to be committed to the Committee on Investigations and Govern
 ment Operations
 

AN ACT to allow certain retired federal employees to apply  for  refunds
 from personal income taxes for the years between 1985 and 1988
 

THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM
 BLY, DO ENACT AS FOLLOWS:

 

Section 1. Notwithstanding any other provision of law to the contrary,
 any retired federal employee who retired before or  during  the  taxable
 years 1985 through 1988 and who did not receive a formal notice from the
 department  of  taxation  and  finance that they were eligible to file a
 claim for a refund on their personal income taxes paid during such taxa
 ble years for taxes paid on their federal pension shall  be  allowed  to
 file  for  such refund to the department of taxation and finance if they
 do so on or before December 31, 2011.
 

S 2. This act shall take effect immediately.
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD06950-01-1

*By contributing or voting you agree to the Terms of Participation and Privacy Policy and verify you are over 13.

Discuss!