S1097-2013 Actions

• Jan 9, 2013: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

S1097-2013 Memo

BILL NUMBER:S1097

TITLE OF BILL:
An act
to amend the tax law, in relation to exempting compensation for active
military service from inclusion in a resident's adjusted gross income

PURPOSE:
Exempts compensation for active military service from inclusion in a
resident's adjusted gross income.

SUMMARY OF PROVISIONS:
Amends section 1, paragraph 8 of subsection c of section 612 of the
tax law to exempt compensation for military service from income
earned out of state by New York State residents in the armed forces.

JUSTIFICATION:
New York State currently requires residents who serve in the armed
forces and are stationed out of state to pay state taxes. Many of
these people will change their state of residence once they are
stationed in a state that does not require active duty military to
pay state income tax. Currently Minnesota, Montana, Oregon, Illinois
and Pennsylvania do not require residents who are active duty
military personnel and stationed out of state to pay state income
taxes. Many states, such as Arkansas, Indiana, Oklahoma and Virginia
give partial exemptions to active duty military from state income tax
requirements. Additionally, Florida, Texas, New Hampshire, South
Dakota, Wyoming, Tennessee and Alaska collect no state income tax.

New York State currently faces the loss of many young educated
residents to other states due to job opportunities elsewhere. It
would be a shame to also lose residents in the armed forces who might
leave New York to establish residency in states with tax laws more
appealing to their situation. The men and women of the US armed
forces endure the hardship of being stationed away from their homes
and families. In light of their absence from New York State during
the majority of the year, the income they earn should not be subject
to state income tax.

LEGISLATIVE HISTORY:
S.220B/A.3039B of 2011-12: Amend and Recommit to Senate
                          Investigations & Government Operations
                          Committee
S.3215/A.4689 of 2009-10: Referred to Senate Investigations &
                          Government Operations Committee
S.3102/A.8266 of 2007-08: Referred to Senate Investigations &
                          Government Operations Committee

FISCAL IMPLICATIONS:
To be determined.

EFFECTIVE DATE:
This act shall take effect immediately and shall apply to taxable
years beginning on and after January 1, 2013.

S1097-2013 Text

 S T A T E   O F   N E W   Y O R K
 
 
                                         1097
 2013-2014 Regular Sessions
 I N  SENATE
 (PREFILED)
 January 9, 2013
 
 Introduced  by  Sens.  MAZIARZ,  BONACIC, DeFRANCISCO, LARKIN, SEWARD -
 read twice and ordered printed, and when printed to  be  committed  to
 the Committee on Investigations and Government Operations
 AN  ACT  to amend the tax law, in relation to exempting compensation for
 active military service from inclusion in a resident's adjusted  gross
 income
 

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

 

Section 1. Paragraph 8 of subsection (c) of section  612  of  the  tax
 law,  as  amended by chapter 528 of the laws of 1964, is amended to read
 as follows:

 (8) Compensation received for active service in the  armed  forces  of
 the  United  States  [on or after October first, nineteen hundred sixty-
 one, and prior to September first, nineteen hundred sixty-two; provided,
 however, that the amount of such compensation to be deducted  shall  not
 exceed  one  hundred  dollars for each month of the taxable year, subse-
 quent to September, nineteen hundred sixty-one, during any part of which
 month the taxpayer was engaged in such service] TO THE EXTENT INCLUDIBLE
 IN GROSS INCOME FOR  FEDERAL  INCOME  TAX  PURPOSES  AND  NOT  OTHERWISE
 EXCLUDED  PURSUANT  TO  PARAGRAPH  EIGHT-C  OF  THIS  SUBSECTION, IF THE
 TAXPAYER MAINTAINED A PERMANENT RESIDENCE IN NEW YORK STATE  AND  SERVED
 IN  THE  ACTIVE SERVICE IN THE ARMED FORCES OF THE UNITED STATES OUTSIDE
 OF NEW YORK STATE FOR A PERIOD OF AT LEAST NINETY DAYS DURING THE  TAXA
 BLE  YEAR. For the purposes of this paragraph, the words "active service
 in the armed forces of the United States" shall mean active duty  (other
 than  for  training) in the army, navy (including the marine corps), air
 force or coast guard of the United States as defined in title ten of the
 United States code.
 

S 2.  This act shall take effect immediately and shall apply to  taxa
 ble years beginning on and after January 1, 2013.
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD02290-01-3

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

Discuss!