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A06721 Summary:

BILL NOA06721
 
SAME ASSAME AS UNI. S05243
 
SPONSORMalliotakis
 
COSPNSR
 
MLTSPNSR
 
Amd 612, Tax L
 
Relates to excluding from federal adjusted gross income the amount of any money or the value of any medals awarded to olympians earning a maximum of three hundred thousand dollars annually.
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A06721 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A6721
 
SPONSOR: Malliotakis
  TITLE OF BILL: An act to amend the tax law, in relation to excluding from federal adjusted gross income the amount of any money or the value of medals awarded to olympians earning a maximum of three hundred thou- sand dollars annually   PURPOSE OR GENERAL IDEA OF BILL: The purpose of this bill is to eliminate taxation by the State of New York on the value of medals won at the Summer and Winter Olympic Games, as well as income earned as an award for winning those medals.   SUMMARY OF PROVISIONS: Section 1 adds subsection (42) to section 612 of the tax law, allowing an individual taxpayer with less than $300,000 in federal adjusted gross income subtract the value of his or her Olympic medal(s), and any income earned as an award for winning Olympic medal(s), from federal adjusted gross income when reporting income on state tax, returns.   JUSTIFICATION: The United States Olympic Committee (USOC) awards American athletes with $25,000 for each gold medal, $15,000 for silver, and $10,000 for bronze. Tax collectors at the federal and state level treat these awards as income and subject to taxation. Furthermore, gold and silver medalists are taxed for the value of the medals themselves-$564 and $305, respec- tively. The USOC is a non-profit 501(c)(3) organization that receives no direct government funding except for select Paralympic military programs, and is sustained primarily through private donations, broadcast rights, merchandise sales, and corporate sponsorship. Our Olympians bring much pride to our state and nation and they should be celebrated, not taxed for their achievements. Most of them do not get endorsement deals but, instead, survive on small stipends and sacrifice much to compete in the games. The income threshold will ensure that the deduction does not apply to high-income professional athletes. 18 New Yorkers came home with medals from the 2016 Summer Games, and the State of New York will now reward them with a larger tax bill. These athletes should be allowed to keep their hard-earned award money and exempt Olympic awards from income tax.   PRIOR LEGISLATIVE HISTORY: New Bill   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: To be determined.   EFFECTIVE DATE: This bill shall take effect immediately and shall be applicable to taxa- ble years beginning on and after January 1, 2017.
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