Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
|
---|---|
Feb 01, 2016 |
print number 3431a |
Feb 01, 2016 |
amend and recommit to investigations and government operations |
Jan 06, 2016 |
referred to investigations and government operations |
Feb 09, 2015 |
referred to investigations and government operations |
Senate Bill S3431A
2015-2016 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
co-Sponsors
(D, WF) Senate District
2015-S3431 - Details
2015-S3431 - Sponsor Memo
BILL NUMBER:S3431 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 22 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
2015-S3431 - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 3431 2015-2016 Regular Sessions I N S E N A T E February 9, 2015 ___________ 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 a new subparagraph 22 to read as follows: (22) 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, 2016. EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD05462-01-5
co-Sponsors
(D, WF) Senate District
2015-S3431A (ACTIVE) - Details
2015-S3431A (ACTIVE) - Sponsor Memo
BILL NUMBER: S3431A 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 22 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
2015-S3431A (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 3431--A 2015-2016 Regular Sessions I N S E N A T E February 9, 2015 ___________ Introduced by Sens. KRUEGER, PERKINS -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations -- recommitted to the Committee on Investi- gations 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 22 to read as follows: (22) 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, 2017. EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD05462-02-6
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