What's happening
This bill limits the crediting of video lottery winnings to cases where the winnings are subject to federal income tax withholding for slot machines.
Why it matters
Narrows the scope of state tax "crediting". By only applying crediting of video lottery winnings when those winnings are also subject to federal tax withholding (which occurs only above a certain threshold), the bill effectively reduces the number of winnings that will be automatically credited against state tax liabilities.
Aligns state and federal tax reporting thresholds. The measure creates consistency between state and federal treatment of video lottery winnings, potentially reducing confusion for winners and simplifying compliance for operators and the tax department.
Impacts smaller winnings and lower-income players. Winnings below the federal withholding threshold will no longer be subject to automatic crediting, which means many smaller winners may not have their winnings intercepted for back taxes or debts, possibly reducing collections from those with smaller debts.
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Who cares
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Limit Lottery Winnings Crediting
Plain English, a few words. Used as the page title.
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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
4624
2017-2018 Regular Sessions
IN ASSEMBLY
February 3, 2017
Introduced by M. of A. PRETLOW -- read once and referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to the crediting of video lottery gaming winnings
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 1613-a of the tax law is amended by adding a new subdivision 11 to read as follows:
(11) Notwithstanding the foregoing provisions of this section, with respect to winnings realized in a video lottery game, the crediting as provided for therein shall be applied only if the winnings are subject to federal income tax withholding for slot machines.
§ 2. Section 1613-b of the tax law is amended by adding a new subdivision 9 to read as follows:
(9) Notwithstanding the foregoing provisions of this section, with respect to winnings realized in a video lottery game, the crediting as provided for therein shall be applied only if the winnings are subject to federal income tax withholding for slot machines.
§ 3. Section 1613-c of the tax law is amended by adding a new subdivision 11 to read as follows:
(11) Notwithstanding the foregoing provisions of this section, with respect to winnings realized in a video lottery game, the crediting as provided for therein shall be applied only if the winnings are subject to federal income tax withholding for slot machines.
§ 4. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09113-01-7
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.