NY State Senate Bill 2021-S5470

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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2022	referred to budget and revenue
Mar 08, 2021	referred to budget and revenue

2021-S5470 (ACTIVE) - Details

Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Amd §§614 & 616, Tax L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S7622
2013-2014: S3201
2015-2016: S2785
2017-2018: S2703
2019-2020: S5004
2023-2024: S7188

2021-S5470 (ACTIVE) - Summary

Establishes the New York state foreign dependent children tax inclusion act authorizing a tax deduction for support provided to children outside of the United States; defines "dependent children"; provides an exemption of $1,000 for each foreign dependent child.

2021-S5470 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S5470

SPONSOR: PARKER
 
TITLE OF BILL:

An act to amend the tax law, in relation to establishing the New York
state foreign dependent children tax inclusion act

 
PURPOSE OR GENERAL IDEA OF BILL:

The purpose of the bill is to allow a resident taxpayer to receive a
state income tax standard deduction and tax exemption for the financial
support provided to a dependent child or children residing outside of
the United States.

 
SUMMARY OF SPECIFIC PROVISIONS:

Subsection (c) of section 614 of the tax law is amended by adding subdi-
vision (2) to allow:

(2) (A) For taxable years after 2015, an individual providing financial

support to a dependent child or children residing outside of the United
States to be considered as a head of household for purposes of this
section when the individual provides certain proof as specified in this
section.

(B) Provides the definition of "support" for the purposes of this
section.

(C) Provides the definition of "dependent child" for the purposes of
this section.

(D) Provides the penalty imposed for any taxpayer who submits a false or
fraudulent document.

(3) Section 616 of the tax law is amended by adding a new subsection to
allow, for taxable years after 2015, a resident taxpayer to receive a
New York tax exemption for the financial support provided to a dependent
child or children residing outside of the United States.

Section 4: Establishes the effective date and gives the commissioner of
taxation and finance the authorization to promulgate rules and regu-
lation necessary to implement this act.

 
JUSTIFICATION:

Currently, under the New York State Tax Law, resident taxpayers are
eligible for a standard deduction and tax exemption only when their
dependent children are legal residents or citizens of the United States
and currently live with them for more than half of the year.

Many resident taxpayers provide financial support to their children who
reside outside of the United States, which is a high expense for many
New Yorkers especially in these economic times. These residents are
taxed based on their total annual income without taking into consider-
ation the significant support they provide to their families in other
countries. This legislation does not provide a tax credit but a small
standard deduction and tax exemption that will help them save some money
and receive the same benefit ether taxpayers receive just because their
children reside in the United States and live with them. This bill will
not allow these taxpayers to receive an Earned Income Tax Credit (EITC)
for these dependent children.

 
PRIOR LEGISLATIVE HISTORY:

2019-20: S5004 - Referred to Budget and Revenue
2017-18: S2703 - REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
2015-16: S2785A - Amend and Recommit to Investigations and Government
Operations
2013-14: S3201 - Referred to Investigations and Government Operations
2011-12: S7622/10079A - Investigations & Gov't Operations

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2021-S5470 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5470
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                               March 8, 2021
                                ___________
 
 Introduced  by  Sen.  PARKER -- 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 establishing  the  New  York
   state foreign dependent children tax inclusion act
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Short title.  This act shall be known and may be  cited  as
 the "New York state foreign dependent children tax inclusion act".
   § 2. Subsection (c) of section 614 of the tax law, as amended by chap-
 ter 170 of the laws of 1994, is amended to read as follows:
   (c)  Head of household. (1) For taxable years beginning after nineteen
 hundred ninety-six, the New York standard deduction of an individual who
 is a head of household shall be ten thousand five hundred  dollars;  for
 taxable  years  beginning  in nineteen hundred ninety-six, such standard
 deduction shall be ten thousand dollars; for taxable years beginning  in
 nineteen  hundred  ninety-five,  such  standard deduction shall be eight
 thousand one hundred fifty dollars;  and  for  taxable  years  beginning
 after  nineteen  hundred eighty-nine and before nineteen hundred ninety-
 five, such standard deduction shall be seven thousand dollars.
   (2) (A) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND TWENTY-TWO,  AN
 INDIVIDUAL  PROVIDING  SUPPORT TO A DEPENDENT CHILD OR CHILDREN RESIDING
 OUTSIDE OF THE UNITED STATES SHALL  BE  DEEMED  HEAD  OF  HOUSEHOLD  FOR
 PURPOSES OF THIS SUBSECTION WHERE THE INDIVIDUAL PROVIDES PROOF OF:
   (I)  THE  LEGAL  RELATIONSHIP  BETWEEN  THE  INDIVIDUAL AND HIS OR HER
 DEPENDENT CHILD OR CHILDREN; AND
   (II) THE AMOUNT  OF  MONEY  WHICH  THE  DEPENDENT  CHILD  OR  CHILDREN
 RECEIVED FROM THE INDIVIDUAL.
   (B)  SUPPORT  PROVIDED  TO CHILDREN OUTSIDE OF THE UNITED STATES MEANS
 MONEY OR OTHER FINANCIAL SUPPORT WHICH IS SENT  OR  TRANSFERRED  OUTSIDE
 THE UNITED STATES TO A DEPENDENT CHILD OF THE INDIVIDUAL.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09404-01-1

 S. 5470                             2
 
   (C)  FOR  THE  PURPOSES OF THIS SUBSECTION, THE TERM "DEPENDENT CHILD"
 SHALL MEAN ANY CHILD OF THE INDIVIDUAL WHO IS AGE EIGHTEEN OR YOUNGER.
   (D)  ANY  TAXPAYER  WHO  SUBMITS A FALSE OR FRAUDULENT DOCUMENT TO THE
 DEPARTMENT REGARDING THE PROOF  REQUIRED  PURSUANT  TO  THIS  SUBSECTION
 SHALL  BE  SUBJECT TO THE PENALTY IMPOSED PURSUANT TO SUBSECTION (CC) OF
 SECTION SIX HUNDRED EIGHTY-FIVE OF THIS ARTICLE.
   § 3. Section 616 of the tax law is amended by adding a new  subsection
 (c) to read as follows:
   (C)  FOREIGN DEPENDENT CHILDREN. FOR TAXABLE YEARS BEGINNING AFTER TWO
 THOUSAND TWENTY-TWO, A RESIDENT INDIVIDUAL SHALL BE ALLOWED A  NEW  YORK
 EXEMPTION  OF  ONE  THOUSAND  DOLLARS  FOR EACH DEPENDENT CHILD RESIDING
 OUTSIDE OF THE UNITED STATES. SUCH INDIVIDUAL SHALL PROVIDE PROOF OF THE
 LEGAL RELATIONSHIP BETWEEN THE INDIVIDUAL AND HIS OR HER DEPENDENT CHILD
 OR CHILDREN AND THE AMOUNT OF  MONEY  THE  INDIVIDUAL  PROVIDES  TO  THE
 DEPENDENT  CHILD OR CHILDREN.  ANY TAXPAYER WHO SUBMITS A FALSE OR FRAU-
 DULENT DOCUMENT TO THE DEPARTMENT REGARDING THE PROOF REQUIRED  PURSUANT
 TO  THIS  SUBSECTION SHALL BE SUBJECT TO THE PENALTY IMPOSED PURSUANT TO
 SUBSECTION (CC) OF SECTION SIX HUNDRED EIGHTY-FIVE OF THIS ARTICLE.  FOR
 PURPOSES OF THIS SUBSECTION, THE TERM "DEPENDENT CHILD" SHALL  MEAN  ANY
 CHILD  OF  THE  RESIDENT  INDIVIDUAL  WHO IS AGE EIGHTEEN OR YOUNGER WHO
 RESIDES OUTSIDE OF THE UNITED STATES.
   § 4. This act shall take effect  immediately.    The  commissioner  of
 taxation  and  finance is authorized to promulgate any and all rules and
 regulations and take any other measures necessary to implement this  act
 on its effective date.

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Senate Bill S5470

Sponsored By

Archive: Last Bill Status - In Senate Committee Budget And Revenue Committee

2021-S5470 (ACTIVE) - Details

2021-S5470 (ACTIVE) - Summary

2021-S5470 (ACTIVE) - Sponsor Memo

2021-S5470 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S5470

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Sponsored By

Kevin S. Parker

Archive: Last Bill Status - In Senate Committee Budget And Revenue Committee

2021-S5470 (ACTIVE) - Details

2021-S5470 (ACTIVE) - Summary

2021-S5470 (ACTIVE) - Sponsor Memo

2021-S5470 (ACTIVE) - Bill Text download pdf

Comments