|
Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
|
|---|---|
| Jan 24, 2014 |
print number 3276a |
| Jan 24, 2014 |
amend and recommit to investigations and government operations |
| Jan 08, 2014 |
referred to investigations and government operations |
| Jan 31, 2013 |
referred to investigations and government operations |
Senate Bill S3276A
2013-2014 Legislative Session
Sponsored By
(D, WF) 28th Senate District
Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee
- Introduced
-
- In Committee Assembly
- In Committee Senate
-
- On Floor Calendar Assembly
- On Floor Calendar Senate
-
- Passed Assembly
- Passed Senate
- Delivered to Governor
- Signed By Governor
Actions
Bill Amendments
2013-S3276 - Details
2013-S3276 - Sponsor Memo
BILL NUMBER:S3276
TITLE OF BILL: An act to amend the tax law, in relation to the
deduction for stock options
PURPOSE: This legislation would specify that the deduction can only
be based on the price of the stock at the time of issuance of the
option, not the price of the stock when sold.
SUMMARY OF PROVISIONS: The Tax Law is amended by adding a new
paragraph 21 to paragraph (b) of subdivision 9 of section 208.
JUSTIFICATION: Currently, there is a loophole in the Federal Tax Code
which allows for a corporation to take a tax deduction based on the
price of a previously given stock option when it is sold, rather than
the price when it was issued. Specifically, many corporations have
given stock options at a set value to executives within their company
instead of cash bonus payments. If the stock increased in value and
the compensated executives sold their stocks at a higher price than
the original value, the corporation would then be eligible for a tax
deduction based on the higher price rather than the lower original
price. As with. many taxes, New York State is currently coupled with
the Federal Tax Code on this issue. It is unclear how much New York
State is currently losing because of the loophole.
The legislative solution to this loophole, is to specify at what term
2013-S3276 - Bill Text download pdf
S T A T E O F N E W Y O R K
________________________________________________________________________
3276
2013-2014 Regular Sessions
I N S E N A T E
January 31, 2013
___________
Introduced by Sen. KRUEGER -- read twice and ordered printed, and when
printed to be committed to the Committee on Investigations and Govern-
ment Operations
AN ACT to amend the tax law, in relation to the deduction for stock
options
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraph (b) of subdivision 9 of section 208 of the tax
law is amended by adding new subparagraph 21 to read as follows:
(21) IN THE CASE OF PROPERTY TRANSFERRED TO A PERSON IN CONNECTION
WITH THE PERFORMANCE OF SERVICES, ANY DEDUCTION RELATING TO STOCK
OPTIONS PURSUANT TO THE INTERNAL REVENUE CODE SECTION 83(H) FOR PROPERTY
DESCRIBED IN SUBSECTION (A) OF THAT SECTION, IN EXCESS OF THE AMOUNT THE
TAXPAYER WAS ALLOWED TO TREAT AS COMPENSATION COST WITH RESPECT TO THAT
PROPERTY IN THE YEAR THE STOCK OPTION WAS GRANTED UNDER GENERALLY
ACCEPTED ACCOUNTING PRINCIPLES FOR THE PURPOSE OF ASCERTAINING INCOME,
PROFIT, OR LOSS IN A REPORT OR STATEMENT TO SHAREHOLDERS, PARTNERS OR
OTHER PROPRIETORS (OR TO BENEFICIARIES).
S 2. This act shall take effect immediately and shall apply to taxable
years beginning on and after January 1, 2013.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01846-01-3
2013-S3276A (ACTIVE) - Details
2013-S3276A (ACTIVE) - Sponsor Memo
BILL NUMBER:S3276A
TITLE OF BILL: An act to amend the tax law, in relation to the
deduction for stock options
PURPOSE:
This legislation would specify that the deduction can only be based on
the price of the stock at the time of issuance of the option, not the
price of the stock when sold.
SUMMARY OF PROVISIONS:
The Tax Law is amended by adding a new paragraph 21 to paragraph (b) of
subdivision 9 of section 208.
JUSTIFICATION:
Currently, there is a loophole in the Federal Tax Code which allows for
a corporation to take a tax deduction based on the price of a previously
given stock option when it is sold, rather than the price when it was
issued. Specifically, many corporations have given stock options at a
set value to executives within their company instead of cash bonus
payments. If the stock increased in value and the compensated executives
sold their stocks at a higher price than the original value, the corpo-
ration would then be eligible for a tax deduction based on the higher
2013-S3276A (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K
________________________________________________________________________
3276--A
2013-2014 Regular Sessions
I N S E N A T E
January 31, 2013
___________
Introduced by Sen. KRUEGER -- 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 the deduction for stock
options
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraph (b) of subdivision 9 of section 208 of the tax
law is amended by adding a new subparagraph 21 to read as follows:
(21) IN THE CASE OF PROPERTY TRANSFERRED TO A PERSON IN CONNECTION
WITH THE PERFORMANCE OF SERVICES, ANY DEDUCTION RELATING TO STOCK
OPTIONS PURSUANT TO THE INTERNAL REVENUE CODE SECTION 83(H) FOR PROPERTY
DESCRIBED IN SUBSECTION (A) OF THAT SECTION, IN EXCESS OF THE AMOUNT THE
TAXPAYER WAS ALLOWED TO TREAT AS COMPENSATION COST WITH RESPECT TO THAT
PROPERTY IN THE YEAR THE STOCK OPTION WAS GRANTED UNDER GENERALLY
ACCEPTED ACCOUNTING PRINCIPLES FOR THE PURPOSE OF ASCERTAINING INCOME,
PROFIT, OR LOSS IN A REPORT OR STATEMENT TO SHAREHOLDERS, PARTNERS OR
OTHER PROPRIETORS (OR TO BENEFICIARIES).
S 2. This act shall take effect immediately and shall apply to taxable
years beginning on and after January 1, 2014.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01846-03-4
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