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

                                  9699

                          I N  A S S E M B L Y

                              April 5, 2016
                               ___________

Introduced  by  M.  of  A.  O'DONNELL  --  read once and referred to the
  Committee on Ways and Means

AN ACT to amend the tax law, in relation  to  establishing  a  childcare
  advance  which enables certain taxpayers to defer payment of a portion
  of their tax liability

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

  Section  1. The tax law is amended by adding a new section 608 to read
as follows:
  S 608. CHILDCARE ADVANCE. (A) BEGINNING IN THE TAX YEAR  TWO  THOUSAND
SIXTEEN,  ANY  RESIDENT TAXPAYER WHO, IN A TAXABLE YEAR, HAS "EMPLOYMENT
RELATED EXPENSES" AS  DEFINED  IN  THE  INTERNAL  REVENUE  CODE  SECTION
21(B)(2)  FOR  A  DEPENDENT  UNDER AGE FIVE AND WOULD BE ELIGIBLE TO USE
THOSE EXPENSES AS THE BASIS FOR  CALCULATING  A  CREDIT  UNDER  INTERNAL
REVENUE  CODE SECTION 21 (WITHOUT REGARD TO WHETHER THE TAXPAYER IN FACT
CLAIMED THE CREDIT UNDER SUCH SECTION FOR SUCH TAXABLE YEAR), MAY  DEFER
PAYMENT  OF THEIR TAX LIABILITY FOR THAT TAXABLE YEAR UNDER THIS ARTICLE
BY THE AMOUNT OF THOSE EXPENSES BUT NOT TO EXCEED TWO THOUSAND DOLLARS.
  (B) ANY TAXPAYER WHO DEFERS TAX LIABILITY  UNDER  SUBDIVISION  (A)  OF
THIS  SECTION SHALL BE LIABLE: (I) ONCE THE TAXPAYER IS NO LONGER TAKING
THE DEFERRAL, FOR THE FULL AMOUNT PREVIOUSLY DEFERRED DIVIDED INTO EQUAL
PAYMENTS OVER TEN YEARS, EXCEPT  THAT  (II)  IN  ANY  FUTURE  YEARS  THE
TAXPAYER  TAKES THE DEFERRAL, THAT TAXPAYER IS LIABLE ONLY FOR ONE-TENTH
OF EACH DEFERRAL TAKEN FIVE OR MORE YEARS  PRIOR  UNTIL  EACH  OF  THOSE
DEFERRALS  IS  REPAID.  AT  NO  POINT  SHALL  THE TAXPAYER BE LIABLE FOR
AMOUNTS PREVIOUSLY REPAID.  REPAYMENT SHALL BE MADE WITHOUT INTEREST.
  (C) ANY TAXPAYER WHO DEFERS TAX LIABILITY  UNDER  SUBDIVISION  (A)  OF
THIS SECTION, AND WHO MOVES TO A RESIDENCE OUTSIDE THE STATE OF NEW YORK
IN  A  STATE, TERRITORY OR COUNTRY WHICH DOES NOT MAINTAIN EFFECTIVE AND
APPLICABLE RECIPROCITY WITH THE STATE OF NEW YORK, SHALL BE  LIABLE  FOR
THE  ENTIRE  AMOUNT DEFERRED ON THE TAX FILING FOR THE TAX YEAR IN WHICH
SUCH CHANGE OF RESIDENCE OCCURS, BUT SUBJECT TO APPROVAL OF THE  DEPART-
MENT  SHALL  BE  DIRECTED TO REPAY THAT LIABILITY THROUGH A PAYMENT PLAN
APPROVED BY THE DEPARTMENT.

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

                                                           LBD13881-01-6

A. 9699                             2

  (D) AT THE END OF EVERY TAX YEAR, THE  DEPARTMENT  SHALL  NOTIFY  EACH
TAXPAYER  WHO  HAS  DEFERRED TAX LIABILITY UNDER SUBDIVISION (A) OF THIS
SECTION OF THE TOTAL AMOUNT OF THEIR DEFERRED LIABILITY, THE TAX YEAR IN
WHICH REPAYMENT WILL BEGIN, AND AN ESTIMATE OF THE AMOUNT FOR WHICH  THE
TAXPAYER WILL BE LIABLE EACH YEAR ONCE THE ELIGIBILITY EXPIRES.
  (E)  NOTHING  IN  THIS  SECTION SHALL PREVENT A TAXPAYER FROM REPAYING
ACCUMULATED LIABILITY EARLIER THAN THE SCHEDULE SET FORTH IN SUBDIVISION
(B) OF THIS SECTION, OR TAKING LESS  THAN  THE  TOTAL  AMOUNT  ALLOWABLE
UNDER SUBDIVISION (A) OF THIS SECTION IN ANY GIVEN TAX YEAR.
  (F)  THE  DEPARTMENT  MAY PROVIDE FOR THE REPAYMENT OF DEFERRALS UNDER
THIS SECTION TO BE MADE THROUGH PAYROLL WITHHOLDING IN  ACCORDANCE  WITH
SECTION  SIX  HUNDRED  SEVENTY-ONE  OF  THIS  ARTICLE, AND SHALL ADDRESS
REPAYMENT IN CASES OF DIVORCE.
  S 2. This act shall take effect immediately and  shall  be  deemed  to
have  been  in  full  force  and effect on and after January 1, 2016 and
shall apply to tax years commencing on and after such date.