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A08643 Summary:

A08643 Actions:

A08643 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
 submitted in accordance with Assembly Rule III, Sec 1(f)



 
BILL NUMBER: A8643A
 
SPONSOR: Tedisco (MS)

 
TITLE OF BILL:  An act to amend the tax law, in relation to establish-
ing tax credits for state and county sales tax paid by victims of trop-
ical storms Irene and Lee
 
 
PURPOSE: Establishes a credit against income tax for residents and
business owners who incurred damage to property as a result of Tropical
Storms Irene and Lee.
 
 
SUMMARY OF PROVISIONS:
 
Section 1: Amends606 of the tax law by adding new subsection (tt) stat-
ing that residential victims of Tropical Storms Irene and Lee, residents

residing in the disaster areas, are entitled to a credit against their
income taxes for 2011 and 2012. The amount of credit shall be equal to
the sales tax paid for expenses in replacing appliances, furniture,
building materials, moving expenses and storage costs.
 
Section 2: Amends 5 210 of the tax law by adding a new subsection 44
stating that business owners who are victims of Tropical Storms Irene in
the disaster areas are entitled to a credit against their income taxes
for 2011 and 2012. The amount of credit shall be equal to the sales tax
paid for the expenses in replacing appliances, furniture, building mate-
rials, moving expenses and storage costs.
 
Section 3: Amends Subparagraph (B) of paragraph 1 or subsection (i) of
section 606 adding a new clause, clause (xxxiii)to allow tax code to be
changed to establish the Tropical Storms Irene and Lee tax credit.
 
Section 4: Ads additional section to the tax law, section 1207, allowing

Counties affected by the Tropical Storms to option into this program at
the County level.
 
Section 5: Allows act to take effect immediately.
 
 
JUSTIFICATION:  The devastating impact of Tropical Storms Irene and
Lee on the lives of thousands of New Yorkers is heartbreaking. Too many
people have had their lives torn apart losing their homes and busi-
nesses. It's critical that our state continues to do everything in its
power to help our neighbors rebuild.
 
Eliminating sales taxes on the essentials for flood victims is one way
New York State can help our fellow New Yorkers get back on their feet.
 
The sales tax credits in this legislation are for moving expenses (rent-
ing a truck, placing belongings in storage) and for replacing sump
pumps, furnaces, refrigerators, washers, dryers, dehumidifiers, boilers,
furniture, construction materials and clothing.
 
Eligible recipients must reside in or own a business in any New York

county declared a federal disaster area and must show proof that they
are a flood victim by being certified by an insurer or state official.
 
This bill shall establish a tax credit that will be applicable to an
individuals' or business' 2011 and 2012 income taxes.
 
 
LEGISLATIVE HISTORY: This is a new bill.
 
FISCAL IMPLICATIONS: To be determined.
 
 
EFFECTIVE DATE: This act will take effect immediately.

A08643 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
            S. 5893--A                                            A. 8643--A
 
                               2011-2012 Regular Sessions
 
                SENATE - ASSEMBLY
 
                                   September 21, 2011
                                       ___________
 
        IN  SENATE -- Introduced by Sen. FARLEY -- read twice and ordered print-
          ed, and when printed to be committed to  the  Committee  on  Rules  --
          committee  discharged,  bill amended, ordered reprinted as amended and
          recommitted to said committee
 
        IN ASSEMBLY -- Introduced by M. of A. TEDISCO, CROUCH, TOBACCO,  GABRYS-

          ZAK, McLAUGHLIN, N. RIVERA, CALHOUN, RA, TITONE, BUTLER -- Multi-Spon-
          sored by -- M. of A. DUPREY -- read once and referred to the Committee
          on  Ways  and  Means  --  committee  discharged, bill amended, ordered
          reprinted as amended and recommitted to said committee
 
        AN ACT to amend the tax law, in relation to establishing tax credits for
          state and county sales tax paid by victims of  tropical  storms  Irene
          and Lee
 
          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 (tt) to read as follows:
     3    (tt)  Credit  for  state  sales tax paid by victims of tropical storms
     4  Irene and Lee. (1) General.  A  taxpayer  whose  residence  or  business

     5  incurred  damage  as  a  result  of tropical storm Irene of two thousand
     6  eleven, tropical storm Lee of two thousand eleven or both such  tropical
     7  storms  shall  be allowed a credit against the tax imposed by this arti-
     8  cle, to be computed as provided in paragraph two of this subsection.
     9    (2) Amount of credit. The amount of credit shall  be  equal  to  state
    10  sales  tax  paid  for expenses related to damage incurred as a result of
    11  flooding, high winds, rain and/or  mudslides  caused  by  such  tropical
    12  storms. Such expenses shall include, but not be limited to, expenses for
    13  moving  and  storage,  and  for the replacement of sump pumps, furnaces,
    14  refrigerators,  washers,  dryers,  dehumidifiers,  boilers,   furniture,

    15  construction materials, vehicles and clothing.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD13461-03-1
        S. 5893--A                          2                         A. 8643--A
 
     1    (3)  Eligibility.  To  be  eligible to receive such credit, a taxpayer
     2  shall reside or have a business within a county in this state which  was
     3  declared  a federal disaster area and is eligible to receive federal aid
     4  or assistance as a result of such tropical storms from the federal emer-
     5  gency management agency.
     6    (4)  Applicability.  Credit  allowed pursuant to this subsection shall

     7  apply to payments for services and expenses made during the two thousand
     8  eleven and two thousand twelve taxable years.
     9    § 2. Section 210 of the tax law is amended by adding a new subdivision
    10  44 to read as follows:
    11    44. Credit for state sales tax paid  by  victims  of  tropical  storms
    12  Irene and Lee. (a) General. A taxpayer whose business incurred damage as
    13  a  result of tropical storm Irene of two thousand eleven, tropical storm
    14  Lee of two thousand eleven or both such tropical storms shall be allowed
    15  a credit against the tax imposed by this  article,  to  be  computed  as
    16  provided in paragraph (b) of this subdivision.
    17    (b)  Amount  of  credit.  The amount of credit shall be equal to state

    18  sales tax paid for expenses related to damage incurred as  a  result  of
    19  flooding,  high  winds,  rain  and/or  mudslides caused by such tropical
    20  storms. Such expenses shall include, but not be limited to, expenses for
    21  moving and storage, and for the replacement  of  sump  pumps,  furnaces,
    22  refrigerators,   washers,  dryers,  dehumidifiers,  boilers,  furniture,
    23  construction materials, vehicles and clothing.
    24    (c) Eligibility. To be eligible to receive  such  credit,  a  taxpayer
    25  shall have a business within a county in this state which was declared a
    26  federal  disaster area and is eligible to receive federal aid or assist-
    27  ance as a result of such tropical  storms  from  the  federal  emergency
    28  management agency.

    29    (d)  Applicability.  Credit allowed pursuant to this subdivision shall
    30  apply to payments for services and expenses made during the two thousand
    31  eleven and two thousand twelve taxable years.
    32    § 3. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
    33  of  the  tax  law is amended by adding  a new clause (xxxiii) to read as
    34  follows:
    35  (xxxiii) Credit for state sales tax     Amount of credit under
    36  paid by victims of tropical storms      subdivision forty-four
    37  Irene and Lee under subsection (tt)     of section two hundred
    38                                          ten
    39    § 4.  The tax law is amended by adding a new section 1207 to  read  as
    40  follows:

    41    § 1207. Credit for county sales tax paid by victims of tropical storms
    42  Irene  and  Lee.  Any  county in this state which was declared a federal
    43  disaster area and is eligible to receive federal aid or assistance as  a
    44  result  of  tropical  storm Irene of two thousand eleven, tropical storm
    45  Lee of two thousand eleven or both such tropical storms, or  any  county
    46  which  borders  such  a county, may, after public hearing, adopt a local
    47  law, ordinance or resolution to provide a credit against  taxes  imposed
    48  by  articles  nine-A and twenty-two of this chapter for county sales tax
    49  paid by victims of such tropical storms. Such credit shall be allowed to
    50  taxpayers in the same manner as the credit  for  state  sales  tax  paid

    51  allowed  pursuant  to  subdivision  (tt)  of section six hundred six and
    52  subdivision forty-four of section two hundred ten of this chapter.
    53    § 5. This act shall take effect immediately.