Bill Text: NY S07007 | 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 INVESTIGATIONS AND GOVERNMENT OPERATIONS [S07007 Detail]

Download: New_York-2017-S07007-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          7007
                    IN SENATE
                                       (Prefiled)
                                     January 3, 2018
                                       ___________
        Introduced  by  Sen. KENNEDY -- read twice and ordered printed, and when
          printed to be committed to the Committee on Investigations and Govern-
          ment Operations
        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
    25  such  change of residence occurs, but subject to approval of the depart-
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00452-01-7
        S. 7007                             2
     1  ment shall be directed to repay that liability through  a  payment  plan
     2  approved by the department.
     3    (d)  At  the  end  of every tax year, the department shall notify each
     4  taxpayer who has deferred tax liability under subdivision  (a)  of  this
     5  section of the total amount of their deferred liability, the tax year in
     6  which  repayment will begin, and an estimate of the amount for which the
     7  taxpayer will be liable each year once the eligibility expires.
     8    (e) Nothing in this section shall prevent  a  taxpayer  from  repaying
     9  accumulated liability earlier than the schedule set forth in subdivision
    10  (b)  of  this  section,  or  taking less than the total amount allowable
    11  under subdivision (a) of this section in any given tax year.
    12    (f) The department may provide for the repayment  of  deferrals  under
    13  this  section  to be made through payroll withholding in accordance with
    14  section six hundred seventy-one  of  this  article,  and  shall  address
    15  repayment in cases of divorce.
    16    §  2.  This  act  shall take effect immediately and shall be deemed to
    17  have been in full force and effect on and after  January  first  of  the
    18  calendar  year  in  which  it  takes effect and shall apply to tax years
    19  commencing on and after such date.