S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  2743

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                              March 2, 2009
                               ___________

Introduced by Sens. GOLDEN, DeFRANCISCO, LANZA -- read twice and ordered
  printed, and when printed to be committed to the Committee on Investi-
  gations and Government Operations

AN  ACT  to amend the tax law and the administrative code of the city of
  New York, in relation to providing for a  modification  of  elementary
  and  secondary  school  tuition  for personal income tax purposes; and
  repealing certain provisions of such laws relating thereto

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Subsection  (j) of section 612 of the tax law is REPEALED
and a new subsection (j) is added to read as follows:
  (J) TUITION TAX DEDUCTION. (1) GENERAL. AN INDIVIDUAL SHALL  BE  ENTI-
TLED TO SUBTRACT FROM HIS OR HER FEDERAL ADJUSTED GROSS INCOME AN AMOUNT
NOT EXCEEDING THE AMOUNT SHOWN IN THE TABLE SET FORTH IN THIS PARAGRAPH,
MULTIPLIED  BY  THE  NUMBER  OF  DEPENDENTS  ATTENDING  AN ELEMENTARY OR
SECONDARY PUBLIC OR NONPUBLIC SCHOOL ON A FULL-TIME BASIS FOR  AT  LEAST
THREE  MONTHS  DURING  THE REGULAR SCHOOL YEAR FOR THE EDUCATION OF SUCH
DEPENDENT IN GRADES KINDERGARTEN THROUGH TWELVE, PROVIDED SUCH  INDIVID-
UAL  IS  ALLOWED  AN EXEMPTION UNDER SECTION SIX HUNDRED SIXTEEN OF THIS
PART FOR SUCH DEPENDENT. PROVIDED, FURTHER,  THAT  THE  DEDUCTION  UNDER
THIS  PARAGRAPH SHALL NOT EXCEED THE AMOUNT PAID FOR EACH SUCH DEPENDENT
IN TUITION TO SUCH ELEMENTARY OR SECONDARY PUBLIC  OR  NONPUBLIC  SCHOOL
FOR SUCH EDUCATION OF SUCH DEPENDENT.
  (A) FOR THE TAXABLE  YEAR BEGINNING JANUARY 1, 2009,
     IF THE FEDERAL           THE AMOUNT
     ADJUSTED GROSS           ALLOWABLE FOR EACH
     INCOME IS:               DEPENDENT IS:

     LESS THAN $115,000       $2,500
     115,000--119,999          2,150
     120,000--124,999          1,800

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06320-01-9
              

S. 2743                             2

     125,000--129,999          1,450
     130,000--134,999          1,100
     135,000--139,999            750
     140,000--144,999            400
     145,000--149,999             50
     150,000 AND OVER              0
  (B) FOR THE TAXABLE YEAR BEGINNING JANUARY 1, 2010,
     IF THE FEDERAL           THE AMOUNT
     ADJUSTED GROSS           ALLOWABLE FOR EACH
     INCOME IS:               DEPENDENT IS:

     LESS THAN $115,000       $5,000
     115,000--119,999          4,300
     120,000--124,999          3,600
     125,000--129,999          2,900
     130,000--134,999          2,200
     135,000--139,999          1,500
     140,000--144,999            800
     145,000--149,999            100
     150,000 AND OVER              0
  (C) FOR THE TAXABLE YEARS BEGINNING JANUARY 1, 2011,
     IF THE FEDERAL           THE AMOUNT
     ADJUSTED GROSS           ALLOWABLE FOR EACH
     INCOME IS:               DEPENDENT IS:

     LESS THAN $115,000       $7,500
     115,000--119,999          6,450
     120,000--124,999          5,400
     125,000--129,999          4,350
     130,000--134,999          3,300
     135,000--139,999          2,250
     140,000--144,999          1,200
     145,000--149,999            150
     150,000 AND OVER              0
  (D) FOR THE TAXABLE YEAR BEGINNING JANUARY 1, 2012 AND THEREAFTER,
     IF THE FEDERAL           THE AMOUNT
     ADJUSTED GROSS           ALLOWABLE FOR EACH
     INCOME IS:               DEPENDENT IS:

     LESS THAN $115,000       $10,000
     115,000--119,999           8,750
     120,000--124,999           7,500
     125,000--129,999           6,250
     130,000--134,999           5,000
     135,000--139,999           3,750
     140,000--144,999           2,500
     145,000--149,999           1,250
     150,000 AND OVER               0
  (2)  HUSBAND  AND WIFE. IN DETERMINING THE APPLICABLE FEDERAL ADJUSTED
GROSS  INCOME OF A HUSBAND AND WIFE WHO FILE JOINTLY  ON  THEIR  FEDERAL
TAX  RETURN,  WHETHER  OR NOT THEY FILE SEPARATE NEW YORK STATE RETURNS,
FOR PURPOSES  OF  THE  TABLE  SET  FORTH  IN    PARAGRAPH  ONE  OF  THIS
SUBSECTION,  THE  FEDERAL  ADJUSTED  GROSS  INCOME OF A HUSBAND AND WIFE
SHALL BE THE AGGREGATE OF THEIR FEDERAL ADJUSTED GROSS INCOMES  FOR  THE
TAXABLE  YEAR.  THE HUSBAND OR WIFE TAXPAYER WHO CLAIMS AN EXEMPTION FOR
THE DEPENDENT ON HIS OR HER NEW YORK STATE INCOME TAX  RETURN  SHALL  BE

S. 2743                             3

ALLOWED  TO  TAKE  THE  DEDUCTION  PRESCRIBED  IN  PARAGRAPH ONE OF THIS
SUBSECTION.
  (3) DEFINITIONS. (A) "TUITION", AS USED IN THIS SUBSECTION, SHALL MEAN
THE AMOUNT ACTUALLY PAID DURING THE TAXABLE YEAR BY THE TAXPAYER FOR THE
ENROLLMENT OF A DEPENDENT DURING THE REGULAR SCHOOL YEAR AT AN ELEMENTA-
RY OR SECONDARY PUBLIC OR NONPUBLIC SCHOOL.
  (B)  "NONPUBLIC  SCHOOL",  AS  USED IN THIS SUBSECTION, SHALL MEAN ANY
NON-PROFIT ELEMENTARY OR SECONDARY SCHOOL IN  THE  STATE  OF  NEW  YORK,
OTHER  THAN  A  PUBLIC  SCHOOL,  WHICH  (I)  IS PROVIDING INSTRUCTION IN
ACCORDANCE WITH ARTICLE SEVENTEEN AND SECTION THIRTY-TWO HUNDRED FOUR OF
THE EDUCATION LAW, (II) HAS NOT BEEN FOUND TO BE IN VIOLATION  OF  TITLE
VI  OF  THE  CIVIL  RIGHTS  ACT OF NINETEEN HUNDRED SIXTY-FOUR, 78 STAT.
252, 42 U.S.C. SEC. 2000 (D) AND  (III)  WHICH  IS  ENTITLED  TO  A  TAX
EXEMPTION  UNDER  SECTIONS FIVE HUNDRED ONE (A) AND FIVE HUNDRED ONE (C)
(3) OF THE INTERNAL REVENUE CODE. THE COMMISSIONER  OF  EDUCATION  SHALL
FURNISH  TO  THE COMMISSIONER BY JANUARY FIRST OF EACH YEAR, A CERTIFIED
LIST OF NONPUBLIC SCHOOLS WHICH COMPLY WITH CLAUSE (I) OF THIS  SUBPARA-
GRAPH  FOR  THE  PRECEDING  CALENDAR  YEAR  AND SHALL PROVIDE SUCH OTHER
ASSISTANCE WITH RESPECT TO WHETHER NONPUBLIC SCHOOLS  COME  WITHIN  SUCH
CLAUSE (I) AS THE COMMISSIONER MAY REQUIRE.
  (C)  "PUBLIC  SCHOOL",  AS  USED  IN  THIS  SUBSECTION, SHALL MEAN ANY
ELEMENTARY OR SECONDARY SCHOOL IN THE STATE OF NEW YORK THAT IS  SUBJECT
TO  THE SUPERVISION OF THE COMMISSIONER OF EDUCATION PURSUANT TO SECTION
THREE HUNDRED NINE OF THE EDUCATION LAW. PUBLIC SCHOOL SHALL INCLUDE ANY
CHARTER SCHOOL ORGANIZED PURSUANT TO ARTICLE  FIFTY-SIX OF THE EDUCATION
LAW.
  (D) "REGULAR SCHOOL YEAR", AS USED IN THIS SUBSECTION, SHALL MEAN  THE
MONTHS OF THE TAXABLE YEAR EXCLUSIVE OF JULY AND AUGUST.
  (4)  ADDITIONAL  INFORMATION.  ANY CLAIM FOR A MODIFICATION UNDER THIS
SUBSECTION  SHALL BE ACCOMPANIED BY SUCH INFORMATION AS THE COMMISSIONER
MAY REQUIRE.
  S 2. Subdivision (j) of section 11-1712 of the administrative code  of
the  city  of New York is REPEALED and a new subdivision (j) is added to
read as follows:
  (J) TUITION TAX DEDUCTION.  (1) GENERAL. AN INDIVIDUAL SHALL BE  ENTI-
TLED TO SUBTRACT FROM HIS OR HER FEDERAL ADJUSTED GROSS INCOME AN AMOUNT
NOT EXCEEDING THE AMOUNT SHOWN IN THE TABLE SET FORTH IN THIS PARAGRAPH,
MULTIPLIED  BY  THE  NUMBER  OF  DEPENDENTS  ATTENDING  AN ELEMENTARY OR
SECONDARY PUBLIC OR NONPUBLIC SCHOOL ON A FULL-TIME BASIS FOR  AT  LEAST
THREE  MONTHS  DURING  THE REGULAR SCHOOL YEAR FOR THE EDUCATION OF SUCH
DEPENDENT IN GRADES KINDERGARTEN THROUGH TWELVE, PROVIDED SUCH  INDIVID-
UAL IS ALLOWED AN EXEMPTION UNDER SECTION 11-1716 OF THIS SUBCHAPTER FOR
SUCH  DEPENDENT.  PROVIDED, FURTHER, THAT THE DEDUCTION UNDER THIS PARA-
GRAPH SHALL NOT EXCEED THE  AMOUNT  PAID  FOR  EACH  SUCH  DEPENDENT  IN
TUITION  TO  SUCH ELEMENTARY OR SECONDARY PUBLIC OR NONPUBLIC SCHOOL FOR
SUCH EDUCATION OF SUCH DEPENDENT.
  (A) FOR THE TAXABLE YEAR BEGINNING JANUARY 1, 2009,
     IF THE FEDERAL           THE AMOUNT
     ADJUSTED GROSS           ALLOWABLE FOR EACH
     INCOME IS:               DEPENDENT IS:

     LESS THAN $115,000       $2,500
     115,000--119,999          2,150
     120,000--124,999          1,800
     125,000--129,999          1,450
     130,000--134,999          1,100

S. 2743                             4

     135,000--139,999            750
     140,000--144,999            400
     145,000--149,999             50
     150,000 AND OVER              0
  (B) FOR THE TAXABLE YEAR BEGINNING JANUARY 1, 2010,
     IF THE FEDERAL           THE AMOUNT
     ADJUSTED GROSS           ALLOWABLE FOR EACH
     INCOME IS:               DEPENDENT IS:

     LESS THAN $115,000       $5,000
     115,000--119,999          4,300
     120,000--124,999          3,600
     125,000--129,999          2,900
     130,000--134,999          2,200
     135,000--139,999          1,500
     140,000--144,999            800
     145,000--149,999            100
     150,000 AND OVER              0
  (C) FOR THE TAXABLE YEARS BEGINNING JANUARY 1, 2011,
     IF THE FEDERAL           THE AMOUNT
     ADJUSTED GROSS           ALLOWABLE FOR EACH
     INCOME IS:               DEPENDENT IS:

     LESS THAN $115,000       $7,500
     115,000--119,999          6,450
     120,000--124,999          5,400
     125,000--129,999          4,350
     130,000--134,999          3,300
     135,000--139,999          2,250
     140,000--144,999          1,200
     145,000--149,999            150
     150,000 AND OVER              0
  (D) FOR THE TAXABLE YEAR BEGINNING JANUARY 1, 2012 AND THEREAFTER,
     IF THE FEDERAL           THE AMOUNT
     ADJUSTED GROSS           ALLOWABLE FOR EACH
     INCOME IS:               DEPENDENT IS:

     LESS THAN $115,000       $10,000
     115,000--119,999           8,750
     120,000--124,999           7,500
     125,000--129,999           6,250
     130,000--134,999           5,000
     135,000--139,999           3,750
     140,000--144,999           2,500
     145,000--149,999           1,250
     150,000 AND OVER               0
  (2)  HUSBAND  AND WIFE. IN DETERMINING THE APPLICABLE FEDERAL ADJUSTED
GROSS INCOME OF A HUSBAND AND WIFE WHO FILE JOINTLY ON THEIR FEDERAL TAX
RETURN, WHETHER OR NOT THEY FILE SEPARATE NEW YORK  STATE  RETURNS,  FOR
PURPOSES  OF  THE  TABLE SET FORTH IN PARAGRAPH ONE OF THIS SUBDIVISION,
THE FEDERAL ADJUSTED GROSS INCOME OF A HUSBAND AND  WIFE  SHALL  BE  THE
AGGREGATE  OF THEIR FEDERAL ADJUSTED GROSS INCOMES FOR THE TAXABLE YEAR.
THE HUSBAND OR WIFE TAXPAYER WHO CLAIMS AN EXEMPTION FOR THE   DEPENDENT
ON  HIS  OR HER NEW YORK CITY INCOME TAX RETURN SHALL BE ALLOWED TO TAKE
THE DEDUCTION PRESCRIBED IN PARAGRAPH ONE OF THIS SUBDIVISION.

S. 2743                             5

  (3) DEFINITIONS. (A) "TUITION", AS USED  IN  THIS  SUBDIVISION,  SHALL
MEAN  THE  AMOUNT  ACTUALLY PAID DURING THE TAXABLE YEAR BY THE TAXPAYER
FOR THE ENROLLMENT OF A DEPENDENT DURING THE REGULAR SCHOOL YEAR  AT  AN
ELEMENTARY OR SECONDARY PUBLIC OR NONPUBLIC SCHOOL.
  (B)  "NONPUBLIC  SCHOOL",  AS USED IN THIS SUBDIVISION, SHALL MEAN ANY
NON-PROFIT ELEMENTARY OR SECONDARY SCHOOL IN  THE  STATE  OF  NEW  YORK,
OTHER  THAN  A  PUBLIC  SCHOOL,  WHICH  (I)  IS PROVIDING INSTRUCTION IN
ACCORDANCE WITH ARTICLE SEVENTEEN AND SECTION   THIRTY-TWO HUNDRED  FOUR
OF  THE  EDUCATION  LAW,  (II)  HAS NOT BEEN FOUND TO BE IN VIOLATION OF
TITLE VI OF THE CIVIL RIGHTS ACT  OF  NINETEEN  HUNDRED  SIXTY-FOUR,  78
STAT.  252, 42 U.S.C. SEC. 2000 (D) AND (III) WHICH IS ENTITLED TO A TAX
EXEMPTION UNDER SECTIONS FIVE HUNDRED ONE (A) AND FIVE HUNDRED  ONE  (C)
(3)  OF  THE  INTERNAL REVENUE CODE. THE COMMISSIONER OF EDUCATION SHALL
FURNISH TO THE COMMISSIONER BY JANUARY FIRST OF EACH YEAR,  A  CERTIFIED
LIST  OF NONPUBLIC SCHOOLS WHICH COMPLY WITH CLAUSE (I) OF THIS SUBPARA-
GRAPH FOR THE PRECEDING CALENDAR  YEAR  AND  SHALL  PROVIDE  SUCH  OTHER
ASSISTANCE  WITH  RESPECT  TO WHETHER NONPUBLIC SCHOOLS COME WITHIN SUCH
CLAUSE (I) AS THE COMMISSIONER MAY REQUIRE.
  (C) "PUBLIC SCHOOL", AS USED  IN  THIS  SUBDIVISION,  SHALL  MEAN  ANY
ELEMENTARY  OR SECONDARY SCHOOL IN THE STATE OF NEW YORK THAT IS SUBJECT
TO THE SUPERVISION OF THE COMMISSIONER OF EDUCATION PURSUANT TO  SECTION
THREE HUNDRED NINE OF THE EDUCATION LAW. PUBLIC SCHOOL SHALL INCLUDE ANY
CHARTER  SCHOOL ORGANIZED PURSUANT TO ARTICLE FIFTY-SIX OF THE EDUCATION
LAW.
  (D) "REGULAR SCHOOL YEAR", AS USED IN THIS SUBDIVISION, SHALL MEAN THE
MONTHS OF THE TAXABLE YEAR EXCLUSIVE OF JULY AND AUGUST.
  (4) ADDITIONAL INFORMATION. ANY CLAIM FOR A  MODIFICATION  UNDER  THIS
SUBDIVISION SHALL BE ACCOMPANIED BY SUCH INFORMATION AS THE COMMISSIONER
MAY REQUIRE.
  S 3. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2009.