What's happening
This bill exempts certain active military service compensation from New York residents' taxable income starting in 2018.
Why it matters
Expands the military income tax exemption. The bill removes previous time and dollar limits, allowing qualifying active-duty military members to exempt all their active service pay from New York taxable income, not just a small monthly portion.
Targets New Yorkers serving away from home. The exemption applies specifically to residents who are stationed outside New York for at least 90 days, maintain a permanent home out-of-state for the whole year, or live in military housing while in active service—making the benefit more relevant to those genuinely serving away from their New York home.
Aims to ease financial stress for service members. By reducing state tax obligations, the bill could help military families manage financial challenges associated with deployments and frequent moves, potentially making military service less burdensome for New York residents.
Potentially impacts state revenue and military recruitment. The exemption could reduce state tax revenue but may also make New York a more attractive home state for military personnel, possibly aiding recruitment and retention of service members with ties to New York.
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Who cares
New York resident service members serving outside the state
Those maintaining a permanent New York residence and serving outside the state for at least 90 days during the taxable year could subtract active-duty compensation from their New York adjusted gross income.
Service members living away from their permanent address
The bill would also cover those maintaining an out-of-state abode throughout the taxable year while on active duty or a New York abode other than their permanent address, including barracks, bachelor's quarters or a naval vessel.
New York State Department of Taxation and Finance
The agency would administer the expanded military-pay subtraction for taxable years beginning on or after January 1, 2018, replacing the old date restrictions and $100 monthly cap.
Headline styles
Exclude Military Pay from Taxes
Plain English, a few words. Used as the page title.
Sponsors
History
- Held for consideration in ways and means
- Referred to ways and means
- Referred to ways and means
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1616
2017-2018 Regular Sessions
IN ASSEMBLY
January 12, 2017
Introduced by M. of A. HAWLEY, KOLB, BUTLER, BARCLAY, MONTESANO -- read once and referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to exempting compensation for active military service from inclusion in a resident's adjusted gross income
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph 8 of subsection (c) of section 612 of the tax law, as amended by chapter 528 of the laws of 1964, is amended to read as follows:
(8) Compensation received for active service in the armed forces of the United States [on or after October first, nineteen hundred sixtyone, and prior to September first, nineteen hundred sixty-two; provided, however, that the amount of such compensation to be deducted shall not exceed one hundred dollars for each month of the taxable year, subsequent to September, nineteen hundred sixty-one, during any part of which month the taxpayer was engaged in such service] if: (A) the taxpayer maintained a permanent residence in New York state and served in the active service in the armed forces of the United States outside of New York state for a period of at least ninety days during the taxable year; (B) the taxpayer maintained a permanent place of abode outside of New York state while in active service for the entire taxable year; or (C) the taxpayer maintained an abode in New York state other than such person's permanent address while in active service; including residence in a military barracks, bachelor's quarters or on board a naval vessel. For the purposes of this paragraph, the words "active service in the armed forces of the United States" shall mean active duty (other than for training) in the army, navy (including the marine corps), air force or coast guard of the United States as defined in title ten of the United States code.
§ 2. This act shall take effect immediately and shall apply to taxable years beginning on and after January 1, 2018.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01336-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.