Provides that the income level for the requirement to file a personal income tax return shall be the dollar amount of the New York standard deduction.
Ayes (32): Kruger, Krueger, Stachowski, Montgomery, Duane, Parker, Stavisky, Dilan, Stewart-Cousins, Thompson, Breslin, Diaz, Espada, Klein, Perkins, Valesky, Peralta, DeFrancisco, Johnson O, Volker, Padavan, LaValle, Seward, Saland, Farley, Hannon, Larkin, Nozzolio, Leibell, Maziarz, Marcellino, Robach
Ayes W/R (1): Oppenheimer
Ayes (57): Adams, Addabbo, Alesi, Aubertine, Bonacic, Breslin, DeFrancisco, Diaz, Dilan, Espada, Farley, Flanagan, Foley, Fuschillo, Griffo, Hannon, Hassell-Thomps, Huntley, Johnson C, Johnson O, Klein, Krueger, Kruger, Lanza, Larkin, LaValle, Libous, Little, Marcellino, Maziarz, McDonald, Nozzolio, Onorato, Oppenheimer, Padavan, Parker, Peralta, Perkins, Ranzenhofer, Robach, Saland, Sampson, Savino, Schneiderman, Serrano, Seward, Skelos, Smith, Squadron, Stachowski, Stavisky, Stewart-Cousins, Thompson, Valesky, Volker, Winner, Young
Excused (5): Duane, Golden, Leibell, Montgomery, Morahan
BILL NUMBER: S5283 REVISED 04/30/09
TITLE OF BILL : An act to amend the tax law, in relation to the requirement to file a personal income tax return
PURPOSE : To set minimum personal income tax filing levels at the level of the standard deduction based upon New York adjusted gross income, rather than the arbitrary $4,000 based on federal adjusted gross income which is currently in statute. This effectively means that most persons with no State personal income tax liability or refundable credits will not have to file State tax returns.
SUMMARY OF PROVISIONS : Amends sec. 651 of the Tax Law to replace the statutory $4,000 filing minimum with a minimum equal to the standard deduction. Applies a base of New York adjusted gross income, rather than the federal adjusted gross income.
JUSTIFICATION : The current $4,000 minimum filing limit has been in statute for many years, and forces persons who owe no taxes and who file no federal returns to file State income tax returns. This is a burden for low income persons, particularly senior citizens. It also adds administrative costs for the Department of Taxation and Finance which must process numerous returns for which no tax is due. Persons with incomes lower than the standard deduction owe no tax and this will eliminate the patently unnecessary filing. Use of the New York adjusted gross income, instead of the federal adjusted gross income, will especially benefit senior citizens subject to New York's pension and annuity exemption. The Department of Taxation and Finance estimates that approximately 530,000 persons with no tax liability and no refunds or refundable credits will be removed from filing requirements. Many of these would be retirees with mostly exempt pension or annuity income.
LEGISLATIVE HISTORY : 2008: A.10156 (Kavanagh) - Ways and Means 2007-08: A.1309 (Aubertine) - Ways and Means 2003-04: S.979B - Passed Senate 2001-02: S.1601 - Passed Senate
FISCAL IMPACT ON THE STATE : Expected to reduce administrative costs of Department of Taxation and Finance by $1 million annually.
FISCAL IMPACT ON LOCALITIES : None. The Department of Taxation and Finance has determined that the change will not impact the allocation of State aid to school districts.
EFFECTIVE DATE : This act shall take effect immediately and shall apply to all taxable years beginning on or after the date on which this act shall have become a law.