NY State Senate Bill 2021-S2867

Senate Bill S2867

2021-2022 Legislative Session

Provides that the income level for the requirement to file a personal income tax return shall be set by regulation

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Archive: Last Bill Status - In Senate Committee Budget And Revenue 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 budget and revenue
Jan 26, 2021	referred to budget and revenue

co-Sponsors

2021-S2867 (ACTIVE) - Details

Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Amd §651, Tax L
Versions Introduced in Other Legislative Sessions:: 2009-2010: S5283
2011-2012: S22
2013-2014: S188
2015-2016: S4194
2017-2018: S2022, S7101
2019-2020: S2894
2023-2024: S621

2021-S2867 (ACTIVE) - Summary

Provides that the income level for the requirement to file a personal income tax return shall be the dollar amount of the New York standard deduction.

2021-S2867 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S2867

SPONSOR: KAVANAGH
 
TITLE OF BILL:

An act to amend the tax law, in relation to the requirement to file a
personal income tax return

 
PURPOSE:

To set minimum personal income tax filing levels at the level of the
federal adjusted gross income for the taxable year plus state addition
modifications in excess of the New York standard deduction, rather than
the arbitrary $4,000 which is currently in statute. This effectively
means that most persons with no State personal income tax liability or
refundable credits will not have to file state tax returns

 
SUMMARY OF PROVISIONS:

Amends section 651 of the Tax Law to replace the statutory $4,000 filing
minimum with a minimum equal to the federal adjusted gross income for

the taxable year plus state addition modifications in excess of the New
York standard deduction.

 
JUSTIFICATION:

The current $4,000 minimum filing limit has been in statute for many
years and forces persons who owe no taxes and who file no federal
returns to file State income tax returns. This is a burden for low
income persons, particularly senior citizens. It also adds administra-
tive costs for the Department of Taxation and Finance, which must proc-
ess numerous returns for which no tax is due. Persons with incomes lower
than the standard deduction owe no tax and this will eliminate the
patently unnecessary filing. The Department of Taxation and. Finance
estimates that approximately 250,000 persons with no tax liability and
no refunds or refundable credits will be removed from filing require-
ments, saving the department an estimated $500,000 annually in process-
ing and administrative costs. Furthermore, many of the individuals who
would no longer have to file would be retirees with mostly exempt
pension or annuity income.

 
LEGISLATIVE HISTORY:

2020: S2894 - REFERRED TO BUDGET AND REVENUE

2019: S2894 - REFERRED TO BUDGET AND REVENUE, REPORTED AND COMMITTED TO
FINANCE

2018: S7101 - REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

2017: S2022/A8597 - REFERRED TO INVESTIGATIONS AND GOVERNMENT OPER-
ATIONS/ stricken

2016: S4194/A6437 - REFERRED TO INVESTIGATIONS AND GOVERNMENT
OPERATIONS/referred to ways and means

2015: S4194/A6437 - REFERRED TO INVESTIGATIONS AND GOVERNMENT
OPERATIONS/referred to ways and means

 
FISCAL IMPACT ON LOCALITIES:

None "The Department of Taxation and Finance has determined that the
change will not impact the allocation of state aid to school districts"

 
FISCAL IMPACT ON THE STATE:

Expected to reduce administrative costs of Department of Taxation and
Finance by $500,000 annually.

 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to all taxable
years beginning on or after the date on which this act shall have become
law.

2021-S2867 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2867
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 26, 2021
                                ___________
 
 Introduced by Sens. KAVANAGH, MAY -- read twice and ordered printed, and
   when printed to be committed to the Committee on Budget and Revenue
 
 AN  ACT  to  amend the tax law, in relation to the requirement to file a
   personal income tax return
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Paragraph  1  of subsection (a) of section 651 of the tax
 law, as amended by section 6 of part J of chapter  59  of  the  laws  of
 2014, is amended to read as follows:
   (1)  every  resident individual (A) [required to file a federal income
 tax return for the taxable year, or (B)] having federal  adjusted  gross
 income  for  the  taxable  year,  increased  by  the modifications under
 subsection (b) of section six hundred twelve OF THIS ARTICLE, in  excess
 of [four thousand dollars, or in excess of] his OR HER New York standard
 deduction,  [if  lower,] or [(C)] (B) having received during the taxable
 year a lump sum distribution any portion of  which  is  subject  to  tax
 under section six hundred three OF THIS ARTICLE;
   §  2.  This  act  shall take effect immediately and shall apply to all
 taxable years beginning on or after the date on  which  this  act  shall
 have become a law.
 
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06314-01-1

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Senate Bill S2867

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Sponsored By

Brian Kavanagh