Requires the commissioner of taxation and finance to provide for the payment by the department of taxation and finance of tax refunds within 30 days of the receipt of a taxpayer's tax return, unless there is a discrepancy in such return, in which case the department shall provide written notice to the taxpayer of such discrepancy and a date when the discrepancy will be resolved; failure to comply with such refund and notice requirement shall make the department of taxation and finance liable for interest on the refund due at a rate of 6% per annum.
Ayes (62): Adams, Addabbo, Avella, Ball, Bonacic, Boyle, Breslin, Carlucci, DeFrancisco, Diaz, Dilan, Espaillat, Farley, Felder, Flanagan, Fuschillo, Gallivan, Gianaris, Gipson, Golden, Griffo, Grisanti, Hannon, Hassell-Thomps, Hoylman, Kennedy, Klein, Krueger, Lanza, Larkin, Latimer, LaValle, Libous, Little, Marcellino, Marchione, Martins, Maziarz, Montgomery, Nozzolio, O'Brien, O'Mara, Parker, Peralta, Perkins, Ranzenhofer, Ritchie, Rivera, Robach, Sampson, Savino, Serrano, Seward, Skelos, Smith, Squadron, Stavisky, Stewart-Cousin, Tkaczyk, Valesky, Young, Zeldin
Excused (1): Sanders
TITLE OF BILL: An act to amend the tax law, in relation to requiring the commissioner of taxation and finance to provide for the timely payment of tax refunds to taxpayers
PURPOSE: To require that Department of Taxation and Finance to provide for the payment of refunds within 30 days of the receipt of a tax return.
SUMMARY OF PROVISIONS: Section one adds a new subdivision 29 requiring the Department of Taxation and Finance to pay every taxpayer's refund within thirty days upon receipt by the Department. If the Department is unable to pay a tax refund because of a discrepancy in the taxpayers return, the Department shall provide written notice to the taxpayer of the discrepancy and when it can be expected to be resolved. Upon the failure to provide a refund or written notice, the department shall pay the taxpayer interest on the refund owed at a rate of six percent per annum.
JUSTIFICATION: As the April 15 deadline approaches for filing tax returns with the State of New York, taxpayers who overpaid their state taxes should receive their refund in a timely fashion. There have been instances that the State has been withholding refunds which rightfully belong to taxpayers. Although many New Yorkers have in fact received their tax refunds in a timely fashion by the Department, all New Yorkers who are owed a refund are entitled to it in a reasonable time frame. This legislation would require the State to act immediately to put. this hard earned money back in the pockets of hard working New York taxpayers.
LEGISLATIVE HISTORY: 2005-2006: S. 3652/A. 6954 - Referred to Investigations/Referred to Ways and Means 2007-2008: S. 3658/A. 7986 - Referred to Investigations/Referred to Ways and Means 2009-2010: S. 3985/A. 5100 - Reported to Finance/Referred to Ways and Means 2011-2012: S. 2631/A. 6834 - Passed Senate/Referred to Ways and Means
FISCAL IMPLICATIONS: None.
EFFECTIVE DATE: This act shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 3047 2013-2014 Regular Sessions IN SENATE January 29, 2013 ___________Introduced by Sen. MARCELLINO -- 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 requiring the commissioner of taxation and finance to provide for the timely payment of tax refunds to taxpayers THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 171 of the tax law is amended by adding a new subdivision twenty-ninth to read as follows: TWENTY-NINTH. (A) PROVIDE FOR THE PAYMENT BY THE DEPARTMENT OF EVERY REFUND DUE A TAXPAYER PURSUANT TO ARTICLE TWENTY-TWO OF THIS CHAPTER WITHIN THIRTY DAYS OF THE RECEIPT BY THE DEPARTMENT OF THE TAX RETURN CLAIMING SUCH REFUND; PROVIDED THAT, IF THE DEPARTMENT IS UNABLE TO PAY A TAX REFUND BECAUSE OF A DISCREPANCY IN THE TAXPAYER'S TAX RETURN, THE DEPARTMENT SHALL, WITHIN SUCH THIRTY DAY PERIOD, PROVIDE WRITTEN NOTICE TO THE TAXPAYER OF THE SPECIFIC DISCREPANCY AND A DATE WHEN SUCH DISCREPANCY CAN BE EXPECTED TO BE RESOLVED. (B) UPON THE FAILURE TO PROVIDE A REFUND OR WRITTEN NOTICE TO A TAXPAYER PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION, THE DEPARTMENT SHALL PAY THE TAXPAYER INTEREST ON THE REFUND OWED AT A RATE OF SIX PERCENT PER ANNUM. S 2. This act shall take effect immediately.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD07848-01-3