NY State Senate Bill 2021-S1010

Senate Bill S1010

2021-2022 Legislative Session

Relates to state reimbursements for interest on federal tax liability resulting from real property tax law changes enacted in 2018

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Archive: Last Bill Status - In Senate Committee Finance 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

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2022	referred to finance
Jan 06, 2021	referred to finance

co-Sponsors

2021-S1010 (ACTIVE) - Details

See Assembly Version of this Bill:: A6018
Current Committee:: Senate Finance
Law Section:: Taxation
Laws Affected:: Amd Part EEE §1, Chap 59 of 2018
Versions Introduced in Other Legislative Sessions:: 2017-2018: A10543
2019-2020: S6878, A115
2023-2024: A2384

2021-S1010 (ACTIVE) - Summary

Relates to state reimbursements for interest on federal tax liability resulting from real property tax law changes enacted in 2018.

2021-S1010 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S1010

SPONSOR: GAUGHRAN
 
TITLE OF BILL:

An act to amend part EEE of chapter 59 of the laws of 2018, relating to
an online application system for taxpayers to submit claims for
reimbursements of certain payments, in relation to state reimbursements
for interest on federal tax liability resulting from real property tax
law changes enacted in 2018

 
PURPOSE:

To ensure that New York State property taxpayers do not bear the risk,
no matter how small, of interest charges on federal tax liabilities
resulting from real property tax changes enacted by the State of New
York in 2018.

 
SUMMARY OF PROVISIONS:

Section one of the bill expands to real property law changes (in partic-

ular the charitable deduction program that provides credits against
local property taxes) the new state program that has the Department of
Taxation and Finance reimburse New Yorkers' payments of interest on
underpayments of federal tax liability that arise from the taxpayer's
reliance on amendments to the tax law enacted in 2018.  The interest
liability coverage would begin for tax year 2018, the first year in
which the property tax credits are available.

Section two sets the effective date.

 
JUSTIFICATION:

As part of the 2018 state budget, New York established the ability for
New Yorkers to make charitable contributions to New York State as well
as to local governments and school districts, which would entitle the
donors to, respectively, state income tax credits or local property tax
credits. The legislation established that New York State would cover any
interest charged by the federal government as a result of state tax law
changes in 2018. However, this provision seemingly does not cover any
interest charged to New Yorkers by the federal government in connection
with the charitable funds established by local governments and school
districts. This bill addresses that omission.

 
IMPACT ON REGULATION OF BUSINESSES AND INDIVIDUALS:

None.

 
EFFECT ON FINES, TERMS OF IMPRISONMENT OR OTHER PENAL SANCTIONS:

None.

 
LEGISLATIVE HISTORY:

2018: A.10543 - Referred to Ways and Means 2019-20: S6878/A115

 
FISCAL IMPLICATIONS:


Expected to be none to the state, given the confidence we have in the
ability of New Yorkers to successfully claim federal tax deductions for
these donations to local governments and schools. Positive fiscal impli-
cations to local governments and school districts to the extent this
interest guarantee encourages property taxpayers to make these charita-
ble contributions.

 
EFFECTIVE DATE:
This bill shall take effect immediately, and shall be deemed to have
been in full force on and after April 1, 2018.

2021-S1010 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1010
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 6, 2021
                                ___________
 
 Introduced  by Sen. GAUGHRAN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Finance
 
 AN ACT to amend part EEE of chapter 59 of the laws of 2018, relating  to
   an  online  application  system  for  taxpayers  to  submit claims for
   reimbursements of certain payments, in relation  to  state  reimburse-
   ments  for interest on federal tax liability resulting from real prop-
   erty tax law changes enacted in 2018
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section  1 of part EEE of chapter 59 of the laws of 2018,
 relating to an online application system for taxpayers to submit  claims
 for reimbursements of certain payments, is amended to read as follows:
   Section  1.  The  tax department shall be required to set up an online
 application system for taxpayers to submit claims for reimbursements  of
 payments  of interest on fixed and final determinations of underpayments
 of federal tax liability for the 2018, 2019, 2020 and 2021 tax year that
 arise from the taxpayers' reliance on amendments to the tax law OR  REAL
 PROPERTY  TAX  LAW  enacted  in  the year 2018. In order to receive such
 reimbursement, taxpayers shall be required to submit their reimbursement
 claims to the department of taxation  and  finance  within  60  days  of
 making their payments of interest to the internal revenue service.
   §  2.  This  act shall take effect immediately, and shall be deemed to
 have been in full force and effect on and after April 1, 2018.
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03790-01-1

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Senate Bill S1010

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Sponsored By

James Gaughran