S2728C-2011 - NY Senate Open Legislation - Subtracts from federal adjusted gross income qualified transportation fringe benefits

Subtracts from federal adjusted gross income qualified transportation fringe benefits.

Sponsor: FUSCHILLO
Law Section: Tax Law / Law: Amd S612, Tax L

S2728C-2011 Actions

Feb 13, 2012: referred to ways and means
Feb 13, 2012: DELIVERED TO ASSEMBLY
Feb 13, 2012: PASSED SENATE
Feb 7, 2012: ADVANCED TO THIRD READING
Feb 6, 2012: 2ND REPORT CAL.
Jan 31, 2012: 1ST REPORT CAL.148
Jan 5, 2012: PRINT NUMBER 2728C
Jan 5, 2012: AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
Jan 4, 2012: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
Jan 4, 2012: returned to senate
Jan 4, 2012: died in assembly
Apr 11, 2011: referred to ways and means
Apr 11, 2011: DELIVERED TO ASSEMBLY
Apr 11, 2011: PASSED SENATE
Apr 4, 2011: AMENDED ON THIRD READING 2728B
Mar 10, 2011: ADVANCED TO THIRD READING
Mar 9, 2011: 2ND REPORT CAL.
Mar 8, 2011: 1ST REPORT CAL.183
Feb 15, 2011: PRINT NUMBER 2728A
Feb 15, 2011: AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
Jan 31, 2011: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

S2728C-2011 Meetings

Investigations and Government Operations: Jan 31, 2012

S2728C-2011 Calendars

Active List: Feb 13, 2012 , Floor Calendar: Feb 6, 2012 , Floor Calendar: Feb 7, 2012 , Floor Calendar: Feb 13, 2012

S2728C-2011 Votes

VOTE: COMMITTEE VOTE: - Investigations and Government Operations - Jan 31, 2012

Ayes (8): Marcellino, Alesi, Golden, Nozzolio, Zeldin, Squadron, Diaz, Peralta

VOTE: FLOOR VOTE: - Feb 13, 2012

Ayes (60): Adams, Addabbo, Alesi, Avella, Ball, Bonacic, Breslin, Carlucci, DeFrancisco, Diaz, Dilan, Duane, Espaillat, Farley, Flanagan, Fuschillo, Gallivan, Gianaris, Golden, Griffo, Grisanti, Hannon, Hassell-Thompson, Huntley, Johnson, Kennedy, Klein, Krueger, Lanza, Larkin, LaValle, Libous, Little, Marcellino, Martins, Maziarz, Montgomery, Nozzolio, O'Mara, Oppenheimer, Parker, Peralta, Perkins, Ranzenhofer, Ritchie, Rivera, Robach, Saland, Sampson, Savino, Serrano, Seward, Skelos, Smith, Squadron, Stavisky, Stewart-Cousins, Valesky, Young, Zeldin
Excused (1): McDonald

S2728C-2011 Memo

BILL NUMBER:S2728C               REVISED 01/25/12

TITLE OF BILL:
An act
to amend the tax law, in relation to qualified transportation fringe
benefits

PURPOSE:
To restore the New York State commuter pretax deduction
benefit.

SUMMARY OF PROVISIONS:
Section 1. Amends subsection (c) of section 612
of the tax law by adding a new paragraph 39 to make permanent the New
York State pretax deduction benefit for commuting expenses for
employees.

Section 2. Effective date.

JUSTIFICATION:
Federal law permits employers to allow their employees
to set aside a portion of their pre-tax wages to pay for transit,
vanpool fares, and parking. In 2009, Congress approved an increase in
the maximum transit benefit ($230/month), but required re-approval of
the increase on an annual basis. An extension was approved in 2010,
but Congress did not reauthorize another extension by the December
31, 2011 deadline. As a result, commuters' mass transit tax benefits
were cut from $230 to $125 a month. New York State mirrors this
benefit, thus with Congress' failure to re-authorize the current
transit benefit, commuters are seeing both their state and federal
benefits cut almost in half.

Washington's lack of action not only raises costs for commuters, it
gives them new incentives to avoid mass transit all together.
Commuters who drive in a car pool are allowed a similar pre-tax
benefit to help offset parking costs under federal law. Unlike the
pre-tax transit benefit, that law is permanent and indexed to
inflation. This means that commuters who drive to work had their
parking benefit increase to $240 a month while mass transit riders'
benefits were cut by nearly half. This disparity provides an
incentive for commuters to drive to work and not use mass transit,
increasing congestion and auto emissions.

This legislation would fully restore the state' monthly pre-tax
transit benefit which was cut when the federal government did not
approve an extension by the December 31, 2011 deadline. It would
also create parity between the current federal and state pre-tax
benefits which help offset parking costs for commuters who drive.
That benefit increased to $240 on January 1st.

LEGISLATIVE HISTORY:
2011: (S.2728-B/ A.6175-A) Passed the Senate

FISCAL IMPLICATIONS:
Prior to December 31, 2011 this income was not
taxed by the State, therefor there is no cost to the State.


EFFECTIVE DATE:
Immediately

S2728C-2011 Text

 S T A T E   O F   N E W   Y O R K
 
 2728--C
 2011-2012 Regular Sessions
 I N  SENATE
 January 31, 2011
 
 Introduced  by  Sens. FUSCHILLO, AVELLA, DILAN, GOLDEN, HANNON, JOHNSON,
 KLEIN, LAVALLE, LITTLE,  MARTINS,  OPPENHEIMER,  RANZENHOFER,  SAVINO,
 STAVISKY,  ZELDIN  -- read twice and ordered printed, and when printed
 to be committed to the  Committee  on  Investigations  and  Government
 Operations -- committee discharged, bill amended, ordered reprinted as
 amended  and  recommitted to said committee -- reported favorably from
 said committee, ordered to first and second report, ordered to a third
 reading, amended and ordered reprinted, retaining  its  place  in  the
 order  of  third  reading  -- recommitted to the Committee on Investi
 gations and Government Operations in accordance with  Senate  Rule  6,
 sec.  8  --  committee  discharged, bill amended, ordered reprinted as
 amended and recommitted to said committee
 

AN ACT to amend the tax law, in  relation  to  qualified  transportation
 fringe benefits
 

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

 

Section 1. Subsection (c) of section 612 of the tax law is amended  by
 adding a new paragraph 39 to read as follows:

 (39)  FOR  TAXABLE  YEARS  BEGINNING  AFTER DECEMBER THIRTY-FIRST, TWO
 THOUSAND ELEVEN THE AMOUNT OF QUALIFIED TRANSPORTATION  FRINGE  BENEFITS
 INCLUDED IN FEDERAL ADJUSTED GROSS INCOME, TO THE EXTENT THAT SUCH QUAL
 IFIED TRANSPORTATION FRINGE BENEFITS WOULD HAVE BEEN EXCLUDED FROM GROSS
 INCOME  PURSUANT  TO  PARAGRAPH  FIVE  OF  SUBSECTION (A) OF SECTION ONE
 HUNDRED THIRTY-TWO OF THE INTERNAL REVENUE CODE HAD THE  FLUSH  SENTENCE
 OF  PARAGRAPH TWO OF SUBSECTION (F) OF SECTION ONE HUNDRED THIRTY-TWO OF
 THE INTERNAL REVENUE CODE THAT WAS IN EFFECT ON  DECEMBER  THIRTY-FIRST,
 TWO THOUSAND ELEVEN CONTINUED IN EFFECT AFTER DECEMBER THIRTY-FIRST, TWO
 THOUSAND  ELEVEN;  PROVIDED,  HOWEVER, THAT IF SUBPARAGRAPH (A) OF PARA
 GRAPH TWO OF SUBSECTION (F) OF SECTION ONE  HUNDRED  THIRTY-TWO  OF  THE
 INTERNAL REVENUE CODE IS AMENDED SO THAT FOR ANY MONTH THE DOLLAR AMOUNT
 IN  EFFECT UNDER SUCH SUBPARAGRAPH (A) IS GREATER THAN THE DOLLAR AMOUNT
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD06311-12-2
        S. 2728--C                          2
 IN EFFECT UNDER SUBPARAGRAPH (B) OF PARAGRAPH TWO OF SUBSECTION  (F)  OF
 SECTION ONE HUNDRED THIRTY-TWO FOR THE SAME MONTH, THE FLUSH SENTENCE OF
 PARAGRAPH  TWO THAT WAS IN EFFECT ON DECEMBER THIRTY-FIRST, TWO THOUSAND
 ELEVEN  SHALL  BE DEEMED TO PROVIDE THAT THE DOLLAR AMOUNT IN EFFECT FOR
 SUBPARAGRAPH (B) SHALL BE APPLIED AS IF THE DOLLAR AMOUNT  THEREIN  WERE
 THE  SAME  AS  THE DOLLAR AMOUNT IN EFFECT FOR SUCH MONTH UNDER SUBPARA
 GRAPH (A). NOTWITHSTANDING THE FOREGOING, IF,  PURSUANT  TO  THIS  PARA
 GRAPH,  THE  AMOUNT THAT WOULD BE IN EFFECT FOR ANY MONTH UNDER SUBPARA
 GRAPH (A) OR (B) OF PARAGRAPH TWO  OF  SUBSECTION  (F)  OF  SECTION  ONE
 HUNDRED THIRTY-TWO OF THE INTERNAL REVENUE CODE IS LESS THAN ONE HUNDRED
 SEVENTY-FIVE  DOLLARS,  SUBPARAGRAPHS (A) AND (B) SHALL BE APPLIED AS IF
 THE DOLLAR AMOUNT IN EFFECT FOR SUCH MONTH UNDER SUCH SUBPARAGRAPHS  WAS
 ONE HUNDRED SEVENTY-FIVE DOLLARS.
 

S 2. This act shall take effect immediately.

S2728C-2011: Subtracts from federal adjusted gross income qualified transportation fringe benefits