S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8089
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               June 11, 2021
                                ___________
 
 Introduced by M. of A. MITAYNES -- read once and referred to the Commit-
   tee on Ways and Means
 
 AN  ACT  to  amend the tax law and part EEE of chapter 59 of the laws of
   2021 amending the tax law establishing the excluded  workers  fund  to
   provide  payments to workers who suffered a loss of work-related earn-
   ings or a major source of household income during a state of emergency
   declared by the governor and who are otherwise  ineligible  for  unem-
   ployment  insurance or other state or federal unemployment benefit, in
   relation to exempting benefits from the excluded worker fund from  New
   York state income taxes
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 3 of section 2 of part EEE of chapter 59 of the
 laws of 2021 amending the tax law establishing the excluded workers fund
 to provide payments to workers who suffered a loss of work-related earn-
 ings or a major source of household income during a state  of  emergency
 declared  by the governor and who are otherwise ineligible for unemploy-
 ment insurance or  other  state  or  federal  unemployment  benefit,  is
 amended to read as follows:
   3.  Benefit  computation.  The benefit of the excluded worker shall be
 computed as follows:
   (a) The benefit for each excluded worker who filed a  tax  return  for
 either tax years 2018, 2019, or 2020 with the department of taxation and
 finance  using  a valid United States individual taxpayer identification
 number (ITIN) and any other excluded worker who is  deemed  eligible  by
 the  commissioner  of  labor  for  benefits pursuant to paragraph (k) or
 paragraph (l) of subsection five of this section shall be fifteen  thou-
 sand  six hundred dollars [minus an automatic deduction of seven hundred
 eighty dollars, which shall be remitted to the  department  of  taxation
 and  finance  for the purposes of satisfying the provisions of part five
 of article twenty-two of the tax law. All such  deductions  received  by

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

                                                            LBD11514-01-1

 A. 8089                             2

 the  commissioner  of the department of taxation and finance pursuant to
 this paragraph shall be deposited and disposed of  pursuant  to  section
 one  hundred  seventy-one-a of the tax law applicable to article twenty-
 two of the tax law].
   (b)  The benefit for all other excluded workers deemed eligible by the
 commissioner of labor for benefits except those deemed eligible pursuant
 to paragraph (j), (k), or (l) of subsection five of this  section  shall
 be  three  thousand two hundred dollars [minus an automatic deduction of
 one hundred sixty dollars, which shall be remitted to the department  of
 taxation  and  finance  for the purposes of satisfying the provisions of
 part five of article twenty-two of the  tax  law.  All  such  deductions
 received  by  the commissioner of the department of taxation and finance
 pursuant to this paragraph shall be deposited and disposed  of  pursuant
 to  section one hundred seventy-one-a of the tax law applicable to arti-
 cle twenty-two of the tax law].
   (c)  [When an excluded worker files a New  York  personal  income  tax
 return  for  tax  year  2021,  the excluded worker may reconcile any tax
 liability for such tax year and claim any refund to which  the  excluded
 worker  is entitled] NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRA-
 RY, BENEFITS GRANTED TO AN EXCLUDED WORKER PURSUANT TO THE PROVISIONS OF
 THIS ACT SHALL BE EXEMPT FROM TAXATION PURSUANT TO ARTICLE TWENTY-TWO OF
 THE TAX LAW.
   § 2. Subsection (i) of section  601  of  the  tax  law  is  relettered
 subsection (j) and a new subsection (i) is added to read as follows:
   (I)  RECIPIENTS  OF EXCLUDED WORKER FUND BENEFITS. NOTWITHSTANDING THE
 PROVISIONS OF SUBSECTIONS (A), (B), (C) AND (D) OF THIS SECTION AND  ANY
 OTHER  PROVISION  OF  THIS  ARTICLE,  FOR TAXABLE YEARS BEGINNING ON AND
 AFTER JANUARY  FIRST,  TWO  THOUSAND  TWENTY-ONE,    BENEFITS  FROM  THE
 EXCLUDED  WORKER FUND ESTABLISHED PURSUANT TO PART EEE OF CHAPTER FIFTY-
 NINE OF THE LAWS OF TWO THOUSAND TWENTY-ONE SHALL  BE  EXEMPT  FROM  TAX
 UNDER  THIS  ARTICLE  REGARDLESS  OF  WHETHER  SUCH INCOME IS SUBJECT TO
 FEDERAL INCOME TAXATION.
   § 3. This act shall take effect immediately and shall be deemed to  be
 in full force and effect on and after April 19, 2021.