NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A4770
SPONSOR: McGowan TITLE OF BILL:
An act to amend the tax law, in relation to establishing a tax credit
for tires that are blown out from potholes on state and local roads
PURPOSE OR GENERAL IDEA OF BILL:
To ensure New Yorkers are fairly compensated for damages to their vehi-
cle as a result of poorly maintained roads.
SUMMARY OF PROVISIONS:
Section I: Adds subsection(nnn)to section 606 of the tax law providing a
refundable tax credit for the sum of one thousand dollars to cover the
costs of blown out tires as a result of potholes on state and local
roads, and establishes that the commissioner may require a taxpayer to
provide proof to support their claim.
Section II: provides that this act shall take effect immediately and
shall apply to taxable years commencing on and after January 1, 2023.
JUSTIFICATION:
Wear and tear from poorly maintained roads cost the average New York
driver $632 per year. These conditions can also present a danger to
drivers, passengers, and pedestrians. New York ranks 10th in the nation
for potholes, with almost half of major local and state-owned roadways
considered to be in poor or mediocre condition. As the state works to
address this issue, we must also be-cognizant of the direct costs to
everyday New Yorkers. This legislation would fairly compensate taxpayers
for damages to their vehicles as a result of poorly maintained roads. It
would also allow the commissioner to request evidence to support their
claims, ensuring that this tax credit cannot be abused.
PRIOR LEGISLATIVE HISTORY:
2021-2022: A.9578
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
To be determined
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to taxable years
commencing on and after January 1, 2023
STATE OF NEW YORK
________________________________________________________________________
4770
2023-2024 Regular Sessions
IN ASSEMBLY
February 23, 2023
___________
Introduced by M. of A. MCGOWAN -- read once and referred to the Commit-
tee on Ways and Means
AN ACT to amend the tax law, in relation to establishing a tax credit
for tires that are blown out from potholes on state and local roads
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 606 of the tax law is amended by adding a new
2 subsection (ooo) to read as follows:
3 (ooo) Blown out tires tax credit. (1) Allowance of credit. A taxpayer
4 who has to replace blown out tires on their vehicle due to potholes on
5 state and local roads shall be allowed a credit as hereinafter provided,
6 against the tax imposed by this article. The amount of the credit shall
7 be one thousand dollars.
8 (2) Application of credit. If the amount of the credit allowed under
9 this subsection for any taxable year shall exceed the taxpayer's tax for
10 such year, the excess shall be treated as an overpayment of tax to be
11 credited or refunded in accordance with the provisions of section six
12 hundred eighty-six of this article, provided, however, that no interest
13 shall be paid thereon.
14 (3) Proof of claim. The commissioner may require a qualified taxpayer
15 to furnish proof of his or her blown out tires in support of his or her
16 claim for credit under this subsection.
17 § 2. This act shall take effect immediately and shall apply to taxable
18 years commencing on and after January 1, 2023.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD06750-01-3
