Bill Text: NY A04943 | 2017-2018 | General Assembly | Introduced

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Bill Title: Establishes a childcare advance which enables certain taxpayers to defer payment of a portion of their tax liability.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2018-01-03 - referred to ways and means [A04943 Detail]

Download: New_York-2017-A04943-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          4943
                               2017-2018 Regular Sessions
                   IN ASSEMBLY
                                    February 6, 2017
                                       ___________
        Introduced  by  M.  of  A.  O'DONNELL  --  read once and referred to the
          Committee on Ways and Means
        AN ACT to amend the tax law, in relation  to  establishing  a  childcare
          advance  which enables certain taxpayers to defer payment of a portion
          of their tax liability
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1. The tax law is amended by adding a new section 608 to read
     2  as follows:
     3    § 608. Childcare advance. (a) Any resident taxpayer who, in a  taxable
     4  year,  has  "employment  related  expenses"  as  defined in the internal
     5  revenue code section 21(b)(2) for a dependent under age five  and  would
     6  be  eligible to use those expenses as the basis for calculating a credit
     7  under internal revenue code section 21 (without regard  to  whether  the
     8  taxpayer  in fact claimed the credit under such section for such taxable
     9  year), may defer payment of their tax liability for  that  taxable  year
    10  under this article by the amount of those expenses but not to exceed two
    11  thousand dollars.
    12    (b)  Any  taxpayer  who  defers tax liability under subdivision (a) of
    13  this section shall be liable: (i) once the taxpayer is no longer  taking
    14  the deferral, for the full amount previously deferred divided into equal
    15  payments  over  ten  years,  except  that  (ii)  in any future years the
    16  taxpayer takes the deferral, that taxpayer is liable only for  one-tenth
    17  of  each  deferral  taken  five  or more years prior until each of those
    18  deferrals is repaid. At no  point  shall  the  taxpayer  be  liable  for
    19  amounts previously repaid.  Repayment shall be made without interest.
    20    (c)  Any  taxpayer  who  defers tax liability under subdivision (a) of
    21  this section, and who moves to a residence outside the state of New York
    22  in a state, territory or country which does not maintain  effective  and
    23  applicable  reciprocity  with the state of New York, shall be liable for
    24  the entire amount deferred on the tax filing for the tax year  in  which
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00452-01-7
        A. 4943                             2
     1  such  change of residence occurs, but subject to approval of the depart-
     2  ment shall be directed to repay that liability through  a  payment  plan
     3  approved by the department.
     4    (d)  At  the  end  of every tax year, the department shall notify each
     5  taxpayer who has deferred tax liability under subdivision  (a)  of  this
     6  section of the total amount of their deferred liability, the tax year in
     7  which  repayment will begin, and an estimate of the amount for which the
     8  taxpayer will be liable each year once the eligibility expires.
     9    (e) Nothing in this section shall prevent  a  taxpayer  from  repaying
    10  accumulated liability earlier than the schedule set forth in subdivision
    11  (b)  of  this  section,  or  taking less than the total amount allowable
    12  under subdivision (a) of this section in any given tax year.
    13    (f) The department may provide for the repayment  of  deferrals  under
    14  this  section  to be made through payroll withholding in accordance with
    15  section six hundred seventy-one  of  this  article,  and  shall  address
    16  repayment in cases of divorce.
    17    §  2.  This  act  shall take effect immediately and shall be deemed to
    18  have been in full force and effect on and after  January  first  of  the
    19  calendar  year  in  which  it  takes effect and shall apply to tax years
    20  commencing on and after such date.