S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    859
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              January 6, 2023
                                ___________
 
 Introduced  by  Sen.  RYAN  --  read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 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
              

 S. 859                              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.