What's happening
This bill shortens the timeframe for issuing income tax refunds without interest from forty-five to thirty days after filing.
Why it matters
Accelerates taxpayer refunds. By reducing the no-interest period from 45 to 30 days, the bill pressures tax authorities to process and issue refunds faster, which could improve cash flow for taxpayers.
Increases potential for state-paid interest. If the state cannot issue a refund within the new 30-day window, it will owe interest on the overpayment sooner, potentially costing the state more in interest payments and incentivizing administrative efficiency.
Applies retroactively. The new rules would take effect immediately but also apply to taxable years starting January 1, 2016, potentially impacting refunds and interest calculations for prior years and requiring the state to reassess some older returns.
Simplifies and clarifies refund timing language. By removing complicated reference points and extensions, the bill aims to make the timing rules for interest on refunds clearer and easier for both taxpayers and the tax department to administer.
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Who cares
Headline styles
Faster Tax Refunds Required
Plain English, a few words. Used as the page title.
Sponsors
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History
- 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
2200
2017-2018 Regular Sessions
IN ASSEMBLY
January 17, 2017
Introduced by M. of A. PEOPLES-STOKES -- read once and referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to the payment of interest on overpayments
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subsection (c) of section 688 of the tax law, as amended by chapter 377 of the laws of 1999, is amended to read as follows:
(c) Income tax refund within [forty-five] thirty days of claim for overpayment.--If any overpayment of tax imposed by this article is credited or refunded within [forty-five] thirty days after [the last date prescribed (or permitted by extension of time) for filing the return of such tax on which such overpayment was claimed or within forty-five days after] such return was filed, [whichever is later,] or within six months after a demand is filed pursuant to paragraph six of subsection (b) of section six hundred fifty-one of this chapter, no interest shall be allowed under this section on any such overpayment. In regard to an amended return claiming such overpayment or a claim for credit or refund on which such overpayment was claimed, if such overpayment is refunded within [forty-five] thirty days of filing such return or such claim, no interest shall be allowed from the date such return or such claim is filed until the day the refund is made. [For purposes of this subsection, any amended return or claim for credit or refund filed before the last day prescribed (or permitted by extension of time) for the filing of the return of tax for such year shall be considered as filed on such last day.]
§ 2. This act shall take effect immediately and shall apply to taxable years commencing on and after January 1, 2016.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03609-01-7
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.