Establishes a taxpayer abuse sanction to be imposed against the income of a public officer who commits a felony related to his or her service as a public officer

2 Co-sponsors

• Frank Skartados
• Joan Millman

BILL NUMBER:A9960A

Title of bill

An act to amend the tax law, in relation to creating a taxpayer abuse sanction, and to amend the state finance law, in relation to establishing the education taxpayer abuse penalty fund and the taxpayer abuse penalty fund

Purpose or general idea of bill

To establish a taxpayer abuse sanction to be imposed against the income of a public employee who commits a felony related to his or her service as a public employee.

Summary of specific provisions

Section 1. Amends the tax law by creat- ing a new section 608 which establishes the taxpayer abuse sanction to be levied against any member of the public retirement system of the state who was convicted of grand larceny in the first degree, grand larceny in the second degree or scheme to defraud in the first degree where such conviction resulted from acts committed which related to the nature of such member's public service.

Section 2. Amends the state finance law by establishing the Education Taxpayer Abuse Penalty Fund and the Taxpayer Abuse Fund both of which are hereby established in the joint custody of the commissioner of taxa- tion and finance and the comptroller. These funds shall serve the purpose of distributing money to a school district of municipality, of which a convicted person was employed, equal to the dollar amount of the sanction imposed upon a convicted person.

Section 3. Effective Date.

Justification

It is a privilege and an honor to be a member of the New York State Retirement System, and thus, its members must be held to the highest ethical standards. It is the belief of this legislation's spon- sor, or sponsors, as well as a great many residents across New York State, that those who violate the public trust by using their positions to unlawfully enrich themselves with taxpayer money, or scheme to defraud the taxpayers they are supposed to serve, should not continue to receive benefits from the State of New York. This measure will achieve this goal, as well as provide additional protections to taxpayers by offering this stiff deterrent to those seek to abuse the system.

Prior legislative history

New Bill.

Fiscal implications

Potential increased revenue to the state resulting from any future sanction fees.

Effective date

This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2010.