Relates to the calculation of gross income for state income tax purposes.
TITLE OF BILL: An act to amend the tax law, in relation to the computation of gross income for state income tax purposes
GENERAL IDEA OF BILL: Relates to the calculation of gross income for state income tax purposes.
SUMMARY OF SPECIFIC PROVISIONS: Amends subsection (c) of section 612 of the tax law by adding a new paragraph 39 to read as follows: (38) Compensation, to the extent includable in gross income for federal income tax purposes, attributable to employer-provided benefits to domestic partners.
JUSTIFICATION: Currently, because of federal tax regulations, any domestic partner benefits are calculated as compensation and are taxed by the federal government. This legislation would allow individuals whose domestic partners are receiving, say health insurance benefits, to deduct the cost of that benefit from their taxable income for state tax purposes.
Married couples are not treated in this fashion. The cost of employer provided benefits for family members is not treated as compensation. This bill will level the playing field in this one area and remove this added tax for domestic partners. This only addresses state income tax, the federal inequity would remain.
PRIOR LEGISLATIVE HISTORY: 2009/2010: Died in Senate Committee on Investigations and Government Operations; Passed Assembly
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: To be determined.
EFFECTIVE DATE: This act shall take effect immediately and shall apply to taxable years commencing on or after January 1, 2013.
STATE OF NEW YORK ________________________________________________________________________ 70 2011-2012 Regular Sessions IN SENATE (PREFILED) January 5, 2011 ___________Introduced by Sen. MONTGOMERY -- 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 the computation of gross income for state income tax purposes 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) COMPENSATION, TO THE EXTENT INCLUDABLE IN GROSS INCOME FOR FEDER- AL INCOME TAX PURPOSES, ATTRIBUTABLE TO EMPLOYER-PROVIDED BENEFITS TO DOMESTIC PARTNERS. S 2. This act shall take effect immediately and shall apply to taxable years commencing on or after January 1, 2013.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD02376-01-1