Bill Text: NY A08089 | 2021-2022 | General Assembly | Introduced

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Bill Title: Exempts benefits from the excluded worker fund from New York state income taxes.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2022-01-05 - referred to ways and means [A08089 Detail]

Download: New_York-2021-A08089-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          8089

                               2021-2022 Regular Sessions

                   IN ASSEMBLY

                                      June 11, 2021
                                       ___________

        Introduced by M. of A. MITAYNES -- read once and referred to the Commit-
          tee on Ways and Means

        AN  ACT  to  amend the tax law and part EEE of chapter 59 of the laws of
          2021 amending the tax law establishing the excluded  workers  fund  to
          provide  payments to workers who suffered a loss of work-related earn-
          ings or a major source of household income during a state of emergency
          declared by the governor and who are otherwise  ineligible  for  unem-
          ployment  insurance or other state or federal unemployment benefit, in
          relation to exempting benefits from the excluded worker fund from  New
          York state income taxes

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Subdivision 3 of section 2 of part EEE of chapter 59 of the
     2  laws of 2021 amending the tax law establishing the excluded workers fund
     3  to provide payments to workers who suffered a loss of work-related earn-
     4  ings or a major source of household income during a state  of  emergency
     5  declared  by the governor and who are otherwise ineligible for unemploy-
     6  ment insurance or  other  state  or  federal  unemployment  benefit,  is
     7  amended to read as follows:
     8    3.  Benefit  computation.  The benefit of the excluded worker shall be
     9  computed as follows:
    10    (a) The benefit for each excluded worker who filed a  tax  return  for
    11  either tax years 2018, 2019, or 2020 with the department of taxation and
    12  finance  using  a valid United States individual taxpayer identification
    13  number (ITIN) and any other excluded worker who is  deemed  eligible  by
    14  the  commissioner  of  labor  for  benefits pursuant to paragraph (k) or
    15  paragraph (l) of subsection five of this section shall be fifteen  thou-
    16  sand  six hundred dollars [minus an automatic deduction of seven hundred
    17  eighty dollars, which shall be remitted to the  department  of  taxation
    18  and  finance  for the purposes of satisfying the provisions of part five
    19  of article twenty-two of the tax law. All such  deductions  received  by

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11514-01-1
        A. 8089                             2

     1  the  commissioner  of the department of taxation and finance pursuant to
     2  this paragraph shall be deposited and disposed of  pursuant  to  section
     3  one  hundred  seventy-one-a of the tax law applicable to article twenty-
     4  two of the tax law].
     5    (b)  The benefit for all other excluded workers deemed eligible by the
     6  commissioner of labor for benefits except those deemed eligible pursuant
     7  to paragraph (j), (k), or (l) of subsection five of this  section  shall
     8  be  three  thousand two hundred dollars [minus an automatic deduction of
     9  one hundred sixty dollars, which shall be remitted to the department  of
    10  taxation  and  finance  for the purposes of satisfying the provisions of
    11  part five of article twenty-two of the  tax  law.  All  such  deductions
    12  received  by  the commissioner of the department of taxation and finance
    13  pursuant to this paragraph shall be deposited and disposed  of  pursuant
    14  to  section one hundred seventy-one-a of the tax law applicable to arti-
    15  cle twenty-two of the tax law].
    16    (c)  [When an excluded worker files a New  York  personal  income  tax
    17  return  for  tax  year  2021,  the excluded worker may reconcile any tax
    18  liability for such tax year and claim any refund to which  the  excluded
    19  worker  is entitled] Notwithstanding any provision of law to the contra-
    20  ry, benefits granted to an excluded worker pursuant to the provisions of
    21  this act shall be exempt from taxation pursuant to article twenty-two of
    22  the tax law.
    23    § 2. Subsection (i) of section  601  of  the  tax  law  is  relettered
    24  subsection (j) and a new subsection (i) is added to read as follows:
    25    (i)  Recipients  of excluded worker fund benefits. Notwithstanding the
    26  provisions of subsections (a), (b), (c) and (d) of this section and  any
    27  other  provision  of  this  article,  for taxable years beginning on and
    28  after January  first,  two  thousand  twenty-one,    benefits  from  the
    29  excluded  worker fund established pursuant to part EEE of chapter fifty-
    30  nine of the laws of two thousand twenty-one shall  be  exempt  from  tax
    31  under  this  article  regardless  of  whether  such income is subject to
    32  federal income taxation.
    33    § 3. This act shall take effect immediately and shall be deemed to  be
    34  in full force and effect on and after April 19, 2021.