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 OR GENERAL IDEA OF BILL: Exempting active duty military personnel from state income tax as long as they are a permanent resident of New York State and served federal active duty outside New York for 90 days or longer during the tax year.
SUMMARY OF SPECIFIC PROVISIONS: This legislation will exempt military pay from New York State income tax as long as certain requirements are met. Must maintain permanent address in New York and served on federal active duty for more than 90 days or longer during the tax year. Maintained a permanent place of abode outside of New York for the entire tax year, maintained an abode in New York other than their permanent address while serving on federal active duty orders. Note: Barracks, bachelor quarters, and quarters assigned on board a vessel count as a permanent abode.
JUSTIFICATION: This legislation will exempt New York State income taxes for military personnel, this is necessary because they protect our freedoms both home and abroad, while being taxed as a permanent resident. This legislation will change this inequity in the tax law for military personnel.
PRIOR LEGISLATIVE HISTORY: New Bill.
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, 2012.
STATE OF NEW YORK ________________________________________________________________________ 2157 2011-2012 Regular Sessions IN SENATE January 18, 2011 ___________Introduced by Sen. McDONALD -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Govern- ment 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]IF: (A) 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 TAXABLE YEAR; (B) THE TAXPAYER MAINTAINED A PERMANENT PLACE OF ABODE OUTSIDE OF NEW YORK STATE WHILE IN ACTIVE SERVICE FOR THE ENTIRE TAXABLE YEAR; OR (C) THE TAXPAYER MAINTAINED AN ABODE IN NEW YORK STATE OTHER THAN SUCH PERSON'S PERMANENT ADDRESS WHILE IN ACTIVE SERVICE; INCLUDING RESIDENCE IN A MILITARY BARRACKS, BACHELOR'S QUARTERS OR ON BOARD A NAVAL VESSEL. 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, 2012.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD01435-01-1