New York State Senate Passes Legislation Requiring Prompt Delivery of State Tax Refunds

Legislation Co-Sponsored by Senator Joe Robach

The New York State Senate recently passed legislation (S1782), co-sponsored by Senator Joe Robach, that would ensure timely payment of state income tax refunds. The bill requires the state Department of Taxation and Finance to pay tax refunds within 30 days of receiving a taxpayer’s return, unless there is a discrepancy in the return.

As the April 15 deadline for filing tax returns within New York State approaches, it is important that all New Yorkers who overpaid their state taxes receive their refunds in a reasonable amount of time. However, there have been many instances of taxpayers having to wait three months or more before they received their refunds from the state.

“New Yorkers, who do the right thing and file their tax returns on time, should not be punished by the state and should receive their refund in a timely manner,” said Robach. “I have received too many calls from residents who have had to wait excessive amounts of time, sometimes up to eight weeks, to receive their state tax refund. I think New York can do better than that, and our residents deserve better. This legislation will ensure a more timely refund process.”

Under this legislation, if the state is unable to pay a tax refund due to a discrepancy in the return, then the state Department of Taxation and Finance would have to provide written notice to the taxpayer and a date when the discrepancy would be resolved. If the state fails to take these steps, it would be liable to pay interest on the refund owed to the taxpayer.

The bill will be sent to the Assembly.