S T A T E O F N E W Y O R K
________________________________________________________________________
1001
2023-2024 Regular Sessions
I N A S S E M B L Y
January 12, 2023
___________
Introduced by M. of A. CONRAD -- read once and referred to the Committee
on Education
AN ACT to amend the education law and the tax law, in relation to the
amount of lottery winnings and prizes which are excluded from of a
school district's adjusted gross income
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraph h of subdivision 1 of section 3602 of the educa-
tion law, as amended by a chapter of the laws of 2022 amending the
education law relating to excluding certain lottery winnings from a
school district's adjusted gross income, as proposed in legislative
bills numbers S. 8701 and A. 9878, is amended to read as follows:
h. "Adjusted gross income" shall mean the adjusted gross income of a
school district for the calendar year three years prior to the calendar
year in which the current year commences. The income data shall be
computed in accordance with regulations adopted by the commissioner of
taxation and finance based upon personal income tax returns for the
calendar year three years prior to the calendar year in which the
current school year commences, as reported to the commissioner by
September of the base year, including the results of the permanent
computerized statewide school district address match and income verifi-
cation system. [Any] COMMENCING WITH CALENDAR YEAR TWO THOUSAND TWENTY-
TWO, NEW YORK STATE LOTTERY AND VIDEO lottery [winnings] GAMING INDIVID-
UAL PRIZES in excess of ONE MILLION DOLLARS THAT WHEN AGGREGATED EXCEEDS
twenty-five percent of a district's adjusted gross income shall be
excluded from such district's adjusted gross income for the year. THE
COMMISSIONER OF TAXATION AND FINANCE SHALL DETERMINE THE AMOUNT OF THIS
EXCLUSION BASED ON THE ANNUAL REPORT OF NEW YORK STATE LOTTERY AND VIDEO
LOTTERY GAMING INDIVIDUAL PRIZES IN EXCESS OF ONE MILLION DOLLARS
PRODUCED BY THE GAMING COMMISSION PURSUANT TO PARAGRAPH THREE OF SUBDI-
VISION C OF SECTION SIXTEEN HUNDRED FOUR OF THE TAX LAW. The adjusted
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04181-01-3
A. 1001 2
gross income of the city school district of the city of New York shall
be the sum of the adjusted gross income of the boroughs of the city. The
adjusted gross income of a central high school district shall equal the
sum of the adjusted gross income of each of its component school
districts. "Selected adjusted gross income" shall mean the lesser of
adjusted gross income calculated for aid payable in the current year or
the two-year average of the adjusted gross income calculated for aid
payable in the current year and the adjusted gross income calculated for
aid payable in the base year.
§ 2. Subparagraph 2 of paragraph a of subdivision 16 of section 3602
of the education law, as amended by a chapter of the laws of 2022 amend-
ing the education law relating to excluding certain lottery winnings
from a school district's adjusted gross income, as proposed in legisla-
tive bills numbers S. 8701 and A. 9878, is amended to read as follows:
(2) "Adjusted gross income" shall mean the adjusted gross income of a
school district as used in computation of the district's alternate pupil
wealth ratio pursuant to paragraph b of subdivision three of this
section, provided, however, that for the computation of apportionments
pursuant to this subdivision, the adjusted gross income of a central
high school district shall not equal the sum of the adjusted gross
income of each of its component school districts; and provided, further,
that [any] COMMENCING IN CALENDAR YEAR TWO THOUSAND TWENTY-TWO, NEW YORK
STATE lottery [winnings] AND VIDEO LOTTERY GAMING INDIVIDUAL PRIZES in
excess of ONE MILLION DOLLARS THAT WHEN AGGREGATED EXCEEDS twenty-five
percent of a district's adjusted gross income shall be excluded from a
district's adjusted gross income for the year. THE COMMISSIONER OF TAXA-
TION AND FINANCE SHALL DETERMINE THE AMOUNT OF THIS EXCLUSION BASED ON
THE ANNUAL REPORT OF NEW YORK STATE LOTTERY AND VIDEO LOTTERY GAMING
INDIVIDUAL PRIZES IN EXCESS OF ONE MILLION DOLLARS PRODUCED BY THE
GAMING COMMISSION PURSUANT TO PARAGRAPH THREE OF SUBDIVISION C OF
SECTION SIXTEEN HUNDRED FOUR OF THE TAX LAW.
§ 3. Subdivision c of section 1604 of the tax law, as added by chapter
92 of the laws of 1976, is amended to read as follows:
c. (1) The [division] COMMISSION shall make regular reports to the
commissioner, which reports shall include a full and complete statement
of lottery revenues, prize disbursements and other expenses, and any
other information the commissioner may require. (2) The [commissioner]
COMMISSION shall make an annual report to the governor and the legisla-
ture, which shall include a summary of lottery revenues, prize disburse-
ments and other expenses for the year preceding such report. (3) THE
COMMISSION SHALL, BY JANUARY THIRTY-FIRST OF EACH YEAR, PROVIDE THE
COMMISSIONER WITH A LIST OF THE LOTTERY PRIZE AMOUNTS, NAMES AND SOCIAL
SECURITY NUMBERS OF THE WINNERS OF NEW YORK STATE LOTTERY AND VIDEO
LOTTERY GAMING INDIVIDUAL PRIZES IN EXCESS OF ONE MILLION DOLLARS IN THE
PREVIOUS CALENDAR YEAR.
§ 4. This act shall take effect on the same date and in the same
manner as a chapter of the laws of 2022 relating to excluding certain
lottery winnings from a school district's adjusted gross income, as
proposed in legislative bills numbers S. 8701 and A. 9878, takes effect.