What's happening
This bill allows military members to reacquire New York residency and exempts their active duty pay from New York state income tax.
Why it matters
Supports military mobility and family stability. By making it easier for service members to reacquire New York residency—even without physically living in the state—the bill helps military families maintain ties to New York, which can impact voting rights, in-state tuition, and other residency-based benefits.
Provides targeted tax relief for active-duty personnel. Exempting active-duty military pay from state income tax recognizes the unique sacrifices of service members and could reduce financial stress, making New York a more attractive “home state” for military personnel.
Streamlines tax filing and withholding for eligible service members. The bill removes the requirement to file a state tax return if a military member's only income is exempt active-duty pay, and it allows employers to skip state tax withholding in these cases, reducing administrative burdens for both employees and employers.
Encourages formal ties to New York. The law lays out specific ways military members can demonstrate intent to reclaim residency (such as registering to vote or buying property), providing clear guidance and reducing ambiguity around state residency status for military personnel.
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Who cares
Headline styles
Tax Break for Returning Military
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to veterans, homeland security and military affairs
- Referred to veterans, homeland security and military affairs
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6251
2017-2018 Regular Sessions
IN SENATE
May 11, 2017
Introduced by Sen. COMRIE -- read twice and ordered printed, and when printed to be committed to the Committee on Veterans, Homeland Security and Military Affairs
AN ACT to amend the tax law, in relation to establishing the "New York is Honoring Our Military Exemption Act"
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Short title. This act shall be known as the "New York is Honoring Our Military Exemption Act".
§ 2. The tax law is amended by adding a new section 696-a to read as follows:
§ 696-a. Reacquisition of residency during active duty military service. (a) An individual serving in the armed forces of the United States, or serving in support of such armed forces, whose home of record is New York and whose state of legal residence commencing on or after January first, two thousand eighteen, is a state other than New York may reacquire legal residence in this state, regardless of whether the individual has a physical presence in this state, if the individual intends to make New York his or her state of legal residence. For purposes of this subdivision, evidence of an intent to make this state an individual's state of legal residence must include one or more of the following:
(1) registering to vote in this state;
(2) purchasing residential property or an unimproved residential lot in this state;
(3) titling and registering a motor vehicle in this state;
(4) notifying the state of the individual's previous legal residence of the intent to make New York the individual's state of legal residence; or
(5) preparing a new last will and testament that indicates New York as the individual's state of legal residence.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09737-01-7
S. 6251 2
(b) There shall be subtracted from federal taxable income, for income tax years commencing on or after January first, two thousand eighteen, an amount equal to any compensation received for active duty service in the armed forces of the United States by an individual who has reacquired residency in this state pursuant to subdivision (a) of this section, to the extent that the compensation is included in federal taxable income.
(c) For purposes of this paragraph, an individual whose only source of income is compensation that is subtracted from federal taxable income under subdivision (b) of this section need not file a return.
(d) No amount is required to be deducted and withheld from an employee's wages pursuant to this section for income tax due to this state if the employee's withholding certificate indicates that the compensation is eligible to be subtracted from federal taxable income pursuant to subdivision (b) of this section.
§ 3. This act shall take effect on the ninetieth day after it shall have become a law and shall apply to the taxable years beginning on or after January 1, 2018.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the tax law, in relation to establishing the "New York is Honoring Our Military Exemption Act"
Summary of provisions
Presently, the New York State tax law does not allow for individuals serving in the armed forces whose home of record is New York to require residence in New York. This bill will add a section 696-a to the tax code entitled "New York is Honoring Our Military Exemption Act," which will allow an individual serving in the military to reacquire legal residence in New York, regardless of whether the individual has a physical presence in New York. The military service personnel need show intent to make New York that individual's state of legal residence.
Justification
Active-duty military members are provided with a list of the 30 states that either don't have income tax or exempt military members from paying it and asked where they'd like to declare their residency. New York residents who join the military are picking Texas or Florida as their states of residence to save thousands of dollars in income tax. Even those stationed at Fort Drum who are longtime New York natives have declared residency in other states.
For virtually all soldiers and military members the choice is simple, essentially a "no brainer" because they save money on the income taxes by declaring in one the states that don't have income tax or exempt military members from paying it.
For those service member who want to keep their right to vote in their home state and register their cars in New York there is effectively no opportunity to do so.
This bill doesn't cost the taxpayers anything because it's unlikely active-duty members are paying New York income tax because they have either claimed another state they've lived in or continue to claim nonresident. Also, NYS would most likely notice an increase revenue by having those who reclaim NY residency register their cars in state.
Legislative history
None.
Fiscal implications
None
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.