Creates an E-ZPass expense tax credit, not to exceed $500 each year; allows carry over from previous years if the amount exceeds the taxpayer's tax; only for expenses incurred in NYS.
TITLE OF BILL: An act to amend the tax law, in relation to the creation of an E-ZPass expense tax credit
PURPOSE AND JUSTIFICATION: This bill would allow taxpayers to claim up to $500 of E-ZPass expenses incurred in travel in New York State as a credit on their individual tax return in the year in which the expense was incurred. E-ZPass expenses could not be both used as a deduction elsewhere in a tax return and also claimed as a credit. If the full credit cannot be used in any year, it can be carried forward to credit against future tax liability. Although the bonding agreements that have been entered into by the New York Thruway Authority may not allow it to give relief to the residents of New York State who continue to pay high tolls, this bill would give these New York drivers alternate help in the form of a tax credit for tolls paid using an E-ZPass account of up to $500 per year.
SUMMARY OF SPECIFIC PROVISIONS: Section 1 amends section 606 of the New York Tax Law to add a new subsection (uu) which:
(a) allows a credit for E-ZPass expenses incurred in New York State not to exceed $500; (b) defines E-ZPass for the purposes of the subsection; and (c) provides that if the amount of credit shall exceed the taxpayer's tax for such year, the excess shall be carried forward, and that the credit cannot be claimed if the expense has been claimed as an expense or deduction on any tax return.
Section 2 provides that the act shall take effect the first of January next succeeding the date on which it shall have become law.
PRIOR LEGISLATIVE HISTORY: 2008 - S.7122 -- INVESTIGATIONS/GOV'T OPS 2010 - S.3016 -- INVESTIGATIONS/GOV'T OPS 2011 - S.3223 -- INVESTIGATIONS/GOV'T OPS
FISCAL IMPLICATIONS: To be determined.
EFFECTIVE DATE: This act shall take effect on the first of January next succeeding the date on which is shall have become law.
STATE OF NEW YORK ________________________________________________________________________ 3223--A 2011-2012 Regular Sessions IN SENATE February 14, 2011 ___________Introduced by Sens. RANZENHOFER, DeFRANCISCO, MAZIARZ -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations -- recommitted to the Commit- tee on Investigations 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 the creation of an E-ZPass expense tax credit THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 606 of the tax law is amended by adding a new subsection (uu) to read as follows: (UU) CREDIT FOR E-ZPASS EXPENSES. (1) ALLOWANCE AND AMOUNT OF CREDIT. A TAXPAYER, WHO HAS E-ZPASS EXPENSES INCURRED IN NEW YORK STATE, SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN THIS SUBSECTION, AGAINST THE TAX IMPOSED BY THIS ARTICLE. THE AMOUNT OF THE CREDIT SHALL BE EQUAL TO AN AMOUNT NOT TO EXCEED FIVE HUNDRED DOLLARS. (2) DEFINITION. THE TERM "E-ZPASS" SHALL, FOR THE PURPOSES OF THIS SUBSECTION, REFER TO A SYSTEM OF COLLECTING TOLLS OR CHARGES WHICH IS CAPABLE OF CHARGING AN ACCOUNT HOLDER THE APPROPRIATE TOLL OR CHARGE BY TRANSMISSION OF INFORMATION FROM AN ELECTRONIC DEVICE ON A MOTOR VEHICLE TO THE TOLL LANE, WHICH INFORMATION IS USED TO CHARGE THE ACCOUNT THE APPROPRIATE TOLL OR CHARGE. (3) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR THE EXCESS SHALL BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS, AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS. NO CREDIT SHALL BE ALLOWED UNDER THIS SECTION WHERE SUCH EXPENSE HAS BEEN CLAIMED AS AN EXPENSE OR DEDUCTION ON ANY TAX RETURN. S 2. This act shall take effect the first of January next succeeding the date on which it shall have become a law.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD02564-02-2