Includes income received by members of a reserve component of the armed forces of the United States for reduction of such members' federal adjusted gross income

Title of bill

An act to amend the tax law, in relation to including income received by members of a reserve component of the armed forces of the United States for reduction of such members' federal adjusted gross income

Purpose

This bill would expand the existing subtraction modification contained in Tax Law Section 612(c) (8-b) to include pay received by members of the reserve components of the United States Armed Forces.

Summary of provisions

Paragraph 8-b of subsection (c) of section 612 of the tax law, as amended by section 1 of part D of chapter 62 of the laws of 2006, is amended to read as follows:

(8-b) Income received by members of a reserve component of the armed forces of the United States, as such term is defined in title 10 of the United States code, as well as members of the New York State organized militia, as such term is defined in subdivision one of section two of the military law, as compensation for performing active service within the state pursuant to either (i) state active duty orders issued in accordance with subdivision one of section six of the military law or (ii) active service of the United States pursuant to federal active duty orders, for service other than training, issued in accordance with title 10 of the United States code.

Justification

Currently Section 612 (c) (8-b) of the NY Tax Law provides that income received only by an individual who is a member of the NY State organized militia, as such term is defined in subdivision one of section two of the military law, as compensation for performing active service (fig 1) within the state pursuant to either (i) state active duty orders issued in accordance with subdivision one of section six of the military law or (ii) active service of the United States pursuant to federal active duty orders, for service other than training, issued in accordance with title 10 of the United States code.

The New York State organized militia includes the New York Army National Guard, the New York Air National Guard, the New York Naval Militia and the New York Guard. The New York State organized militia does not include members of the reserve components of the United States Armed Forces are not included in the New York State organized militia.

This bill would include income received by members of the reserve component of the united States Armed Forces, in addition to members of the New York State organized militia, for a reduction of such members' federal adjusted gross income.

Legislative history

S.7616 CONNOR No Same as ON FILE: 04/18/08 Tax Law TITLE:. ...Includes income received by members of a reserve component of the armed forces of the United States for reduction of such members' federal adjusted gross income 04/17/08 REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Fiscal implications

It is estimated that this bill would result in minimal revenue loss during SFY 2008-09 and annually thereafter.

Effective date

This act shall take effect immediately and apply to taxable years beginning January 1, 2011.