BILL NUMBER:S2631

TITLE OF BILL:
An act
to amend the tax law, in relation to requiring the commissioner of
taxation and finance to provide for the timely payment of tax refunds to
taxpayers

PURPOSE:
To require that Department of Taxation and Finance to provide
for the payment of refunds within 30 days of the receipt of a tax
return.

SUMMARY OF PROVISIONS:
Section 171 adds a new subdivision 29 requiring the
Department of Taxation and Finance to pay every taxpayer's refund
within thirty days upon receipt by the Department. If the Department
is unable to pay a tax refund because of a discrepancy in the
taxpayers return, the Department shall provide written notice to the
taxpayer of the discrepancy and when it can be expected to be
resolved. Upon the failure to provide a refund or written notice, the
department shall pay the taxpayer interest on the refund owed at a
rate of six percent per annum.

JUSTIFICATION:
As the April 15 deadline approaches
              

for filing tax
returns with the State of New York, taxpayers who overpaid their
state taxes should receive their refund in a timely fashion. There
have been instances that the State has been withholding refunds which
rightfully belong to taxpayers. Although many New Yorkers have in
fact received their tax refunds in a timely fashion by the
Department, all New Yorkers who are owed a refund are entitled to it
in a reasonable time frame. This legislation would require the State
to act immediately to put this hard earned money back in the pockets
of hard working New York taxpayers.

LEGISLATIVE HISTORY:
2006: S.3652/A.6954 - Referred to Investigations/Referred to Ways and
Means.
2007: S.3658/A.7986 - Referred to Investigations/Referred to Ways and
Means.
2008: S.3658/A.7986 - Referred to Investigations/Referred to
Ways and Means.
2009-2010 - S.3985 - Reported to Finance

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
This act shall take effect immediately.