Exempts compensation for active military service from inclusion in a resident's adjusted gross income under certain circumstances.
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.
STATE OF NEW YORK ________________________________________________________________________ 1097 2013-2014 Regular Sessions IN 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