This bill has been amended

Bill S4745A-2013

Relates to the issuance of family tax relief credit; repealer

Relates to the issuance of family tax relief credit.

Details

Actions

  • Jan 8, 2014: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • May 2, 2013: PRINT NUMBER 4745A
  • May 2, 2013: AMEND (T) AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • Apr 22, 2013: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Memo

BILL NUMBER:S4745A

TITLE OF BILL: An act to amend the tax law, in relation to the family tax relief credit and to repeal certain provisions of such law relating thereto

PURPOSE:

This bill provides a tax credit to New Yorkers who file a New York State Tax Return.

SUMMARY OF PROVISIONS:

Section 1. Paragraph 1 of subsection (vv) of section 606 of the tax law, as added by section 1 of part CC of chapter 59 of the laws of 2013, is amended to read as follows:

1. An individual taxpayer who meets the eligibility standards in paragraph two of this subsection shall be allowed a credit against the taxes imposed by this article of three hundred and fifty dollars per return for tax years two thousand thirteen, two thousand fourteen, and two thousand fifteen.

2. Paragraph 4 of subsection (vv) of section 606 of the tax law is repealed.

3. This act shall take effect immediately.

EXISTING LAW:

Section 1. Paragraph 4 of subsection (vv) of section 606 of the tax law, as added by section 1 of part CC of chapter 59 of the laws of 2013, is amended to read as follows:

4. For each year this credit is allowed, on or before October 15th of such year, the commissioner shall determine the taxpayer's eligibility for this credit utilizing the information available to the commissioner on the taxpayer's personal income tax return filed for the taxable year in which the credit is allowed. For those taxpayers whom the commissioner has determined eligible for this credit, the commissioner shall advance a payment of three hundred and fifty dollars. When a taxpayer files his or her return for the taxable year, such taxpayer shall properly reconcile that payment on his or her return.

JUSTIFICATION:

Middle class families with children who have incomes between $40,000.00 and $300,000.00 will be eligible to receive a credit of $350.00 per year for three years beginning in 2014.

The budget language clearly states that 'for each year this credit is allowed on or before October 15th of such year, the commissioner shall determine the taxpayer's eligibility for this credit based on available information to the commissioner on the taxpayer's personal income tax return filed for the taxable year two years prior to the taxable year in which the credit is allowed. For those taxpayers whom

the commissioner has determined eligible for this credit, the commissioner shall advance a payment of $350.00. In other words, this credit becomes a rebate check that the New York State Tax Department prints and mails out.

This would seem to be the least efficient way of delivering a tax credit to over one million New York State taxpayers, as opposed to simply allowing them to claim it at tax time. If we deliver this so called tax credit in the manner that it currently exists, the cost of the program is estimated to be approximately $1.23 billion. Finally, we must also consider the additional cost associated with administering this so called tax credit program such as printing expenses, postage, and the cost of staff time associated with managing the program. New Yorkers should benefit from this program as a tax credit when he/she files a tax return. It is the same benefit with no additional cost to New York State. If not and we are simply going to provide a $350.00 check. Although this program is intended to benefit New Yorkers, we should reconsider how this program is administered.

LEGISLATIVE HISTORY:

None

FISCAL IMPLICATIONS:

To be determined

LOCAL FISCAL IMPLICATIONS:

To be determined

EFFECTIVE DATE:

This act shall take effect immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 4745--A 2013-2014 Regular Sessions IN SENATE April 22, 2013 ___________
Introduced by Sen. LATIMER -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Govern- ment Operations -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the tax law, in relation to the family tax relief credit and to repeal certain provisions of such law relating thereto THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Paragraph 1 of subsection (vv) of section 606 of the tax law, as added by section 1 of part CC of chapter 59 of the laws of 2013, is amended to read as follows: 1. An individual taxpayer who meets the eligibility standards in para- graph two of this subsection shall be allowed a credit against the taxes imposed by this article of three hundred fifty dollars per return for tax years TWO THOUSAND THIRTEEN, two thousand fourteen, AND two thousand fifteen[, and two thousand sixteen]. S 2. Paragraph 4 of subsection (vv) of section 606 of the tax law is REPEALED and paragraph 5 is renumbered paragraph 4. S 3. This act shall take effect immediately.

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