Authorizes a tax credit for individuals who are not otherwise eligible for STAR benefits

3 Co-sponsors

• Ellen C. Jaffee
• Michelle Schimel
• Mike Spano

1 Multi-sponsor

• Harvey Weisenberg

BILL NUMBER:A230A

Title of bill

An act to amend the tax law, in relation to providing tax credits for certain individuals

Purpose or general idea of bill

To provide a State Personal Income Tax Credit for those individuals not currently eligible for STAR benefits (renters) who live outside the City of New York.

Summary of specific provisions

Section 1 amends the tax law by adding a new subdivision which provides tax payers who do not already qualify for STAR benefits, live outside the City of New York and who does not reside with a person who is eligible to receive STAR benefits to receive a tax credit against their personal income tax as follows;

For married individuals filing joint returns and surviving spouses:

For taxable years beginning in: The amount of credit shall be:

2007 $690 2008 and thereafter $920

Unmarried individuals, a head of household, or a married individual filing a separate return:

For taxable years beginning in: The amount of credit shall be:

2007 $345 2008 and thereafter $460

Tax payers who have attained the age of 65, who reside outside the City of New York and who is not eligible for STAR benefits otherwise, does not reside with a person who is eligible to receive STAR. benefits shall be allowed a credit against the personal income tax. The tax payer must be a resident of New York for the entire year in which the tax payer is claiming the credit. The amount of the credit for married individuals filing jointly and surviving spouses shall be $690. For unmarried individuals, a head of household or a married individual filing separate return, the amount of the credit shall be 5345.

Justification

This measure rectifies a glaring oversight of Chapter 105 of the Laws of 2006 which increased the New York City STAR credit against the NYC Personal Income Tax. Beginning in tax year 2006, the refundable credit was raised from $125 to $230 for married couples and $62.50 to $115 for all others. Unfortunately, last year's legislation neglected to directly support non-New York City residents who do not receive STAR benefits. This legislation corrects that omission.

Prior legislative history

2007-08: A.7809-A - (Latimer) Referred to Ways and Means S.5285-A - (Stewart-Cousins) Referred to Investigations and Government Operations

Fiscal implications

Eight million dollars for the 2007-2008 State Fiscal Year. To be determined thereafter.

Effective date

Shall be retroactive to January 1, 2010.