Provides for a personal income tax deduction for school supplies paid for out-of-pocket by K-12 teachers in public and nonpublic schools, up to $450 per year.
BILL NUMBER:S5289A REVISED 06/07/12
TITLE OF BILL: An act to amend the tax law, in relation to authorizing a personal income tax deduction for elementary and secondary school teachers for certain expenses incurred for school supplies
PURPOSE: To provide a personal income tax deduction for school supplies paid for out of-pocket by K-12 teachers in public and non-public schools, up to $450 a year.
SUMMARY OF PROVISIONS: Section 1. Subsection c of section 612 of the tax law is amended by adding a new paragraph 39. Section 2. This act shall take effect immediately and shall apply to taxable year beginning on and after January 1, 2012.
JUSTIFICATION: Although a federal tax deduction exists for teacher's out-of-pocket school supplies expenses of up to $250, it simply is not enough. According to a survey by Quality Education Data, a market research firm, teachers spent an average of $521 of their own money on supplies in 2001, and an average of $448 in 1999. According to a 2001 survey by the National School Supply and Equipment Association, teachers paid an aver- age of $589 a year. This legislation will provide teachers much-needed relief from these out-of-pocket costs.
LEGISLATIVE HISTORY:; 2011: S.5289 Passed Senate/A.2567 - Referred to Ways & Means 2010: S.727 Reported to Finance/A.8274 - Referred to Ways & Means 2009: S.727 Reported to Finance/A.8274 - Referred to Ways & Means 2008: S.6792 Passed Senate/A.1312 - Referred to Ways & Means 2007: A.1312 Referred to Ways & Means 2006: A.1029 Referred to Ways & Means 2005: A.1029 Referred to Ways & Means
FISCAL IMPLICATIONS: The Department of Taxation and Finance estimates that the bill would result in a $1 million revenue loss during SFY 2012-13 and $3.9 million annually thereafter if the existing Federal deduction is extended beyond December 31, 2011. Alternatively, if the Federal deduction is not extended, the bill would result in a $1.7 million revenue loss during SFY 2012-13 and $6.9 million thereafter.
EFFECTIVE DATE: Immediately and shall apply to taxable year beginning on and after January 1, 2012.
STATE OF NEW YORK ________________________________________________________________________ 5289--A 2011-2012 Regular Sessions IN SENATE May 3, 2011 ___________Introduced by Sen. LANZA -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Govern- ment Operations -- recommitted to the Committee 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 authorizing a personal income tax deduction for elementary and secondary school teachers for certain expenses incurred for school supplies 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) EXPENSES NOT IN EXCESS OF FOUR HUNDRED FIFTY DOLLARS ACTUALLY INCURRED AND PAID BY AN ELIGIBLE EDUCATOR FOR SCHOOL SUPPLIES, ACTUALLY USED AND USEFUL, TO THE EXTENT NOT DEDUCTIBLE IN DETERMINING FEDERAL ADJUSTED GROSS INCOME AND NOT REIMBURSED. FOR THE PURPOSES OF THIS PARA- GRAPH, THE FOLLOWING TERMS HAVE THE FOLLOWING MEANINGS: (I) "ELIGIBLE EDUCATOR" MEANS A PERSON EMPLOYED AS A TEACHER, INSTRUC- TOR, COUNSELOR, PRINCIPAL OR AIDE IN A SCHOOL FOR AT LEAST NINE HUNDRED HOURS DURING A SCHOOL YEAR. (II) "NONPUBLIC SCHOOL" HAS THE SAME MEANING AS PROVIDED FOR SUCH TERM IN SUBPARAGRAPH (B) OF PARAGRAPH THREE OF SUBSECTION (J) OF THIS SECTION. (III) "SCHOOL" MEANS ANY PUBLIC OR NONPUBLIC SCHOOL PROVIDING EDUCA- TION IN ANY GRADE FROM KINDERGARTEN THROUGH TWELFTH. (IV) "SCHOOL SUPPLIES" INCLUDES BOOKS, SUPPLIES (OTHER THAN NON-ATH- LETIC SUPPLIES FOR COURSES OF INSTRUCTION IN HEALTH OR PHYSICAL EDUCA- TION), COMPUTER EQUIPMENT (INCLUDING RELATED SOFTWARE AND SERVICES), AND OTHER EQUIPMENT AND SUPPLEMENTAL MATERIALS USED BY THE ELIGIBLE EDUCATOR IN THE CLASSROOM. S 2. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2012.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD03659-02-1