What's happening
This bill requires New York to provide a free online program for all taxpayers to file federal and state tax returns.
Why it matters
Levels the playing field for taxpayers. By requiring a free online filing option, the bill removes barriers for low- and middle-income individuals who previously may have had to pay for commercial tax software or professional help, ensuring everyone—regardless of income—can file federal and state returns without extra costs.
Challenges the commercial tax prep industry. The bill could significantly reduce dependence on private tax preparation companies, potentially saving New Yorkers millions in fees and limiting aggressive upselling or misleading “free” offers that often come with hidden charges.
Could simplify and speed up tax filing. A state-run system could be designed to be more user-friendly and integrated with state data, reducing errors, confusion, and delays that sometimes occur with third-party providers, and potentially making tax season less stressful for residents.
Increases government accountability and transparency. By shifting tax filing infrastructure into the public sector, the state takes direct responsibility for protecting sensitive taxpayer data, maintaining system security, and providing support, which could build trust and allow for more direct oversight than in privatized systems.
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Who cares
Headline styles
Free Online Tax Filing
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to investigations and government operations
- Referred to investigations and government operations
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Free Online Tax Filing
In Assembly Committee · Ways And Means · Sponsor Linda Rosenthal
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
70
2017-2018 Regular Sessions
IN SENATE (Prefiled)
January 4, 2017
Introduced by Sen. HOYLMAN -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations
AN ACT directing the department of taxation and finance to create and implement an online program which will enable each New York state taxpayer to prepare and electronically file his or her federal and state income tax returns free of charge
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The department of taxation and finance is authorized and directed to create and implement an online program which will enable each New York state taxpayer to prepare and electronically file his or her federal and state income tax returns free of charge, regardless of the taxpayer's income level. This program shall be made available to all New York state taxpayers on the department's website no later than one hundred eighty days following the effective date of this act.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05096-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act directing the department of taxation and finance to create and implement an online program which will enable each New York state taxpayer to prepare and electronically file his or her federal and state income tax returns free of charge
Summary of provisions
Section One of the bill states that the department of taxation and finance is authorized and directed to create and implement an online program which will enable each New York State taxpayer to prepare and electronically file his or her federal and state income tax returns free of charge, regardless of the taxpayer's income level. The program shall be made available to all New York State taxpayers in the department's website no later than one hundred eighty days following the effective date of this act.
Existing law
New law
Justification
This legislation shall direct the New York State Department of Taxation and Finance to create an online program for all New York State taxpayers to prepare and file their federal and state income tax returns for free. Currently, there are a number of different for-profit companies offering so-called "Free File," but they often include hidden fees, and only taxpayers within certain income ranges are eligible. Many years into the digital age, our government is entirely capable of offering free online tax preparation and electronic filing without forcing the taxpayer to be duped into using possibly dubious private online tax preparation services.
It is a solid and fundamental principal that taxes are what we pay for civilized society, and most New Yorkers are proud to help pay for essential government programs like public education and food safety regulation. Yet there is no justification for the fees charged by for-profit tax prep and e-filing companies, which serve as obsolete intermediaries in the digital age. Countless government services can be easily accessed on government websites-from registering to vote to applying for public benefits to making complaints about potholes-and there is no reason that filing tax returns should be any different. We don't force people making more than $57,000 to pay a private company for help registering with the Selective Service System, and the State of New York should not allow it for the filing of taxes either.
Government should be embracing technology, not using it as a way to direct people to the services of for-profit companies.
Legislative history
S.495 of 2015-2016 (Hoylman): Died in Investigations & Government Operations A.945 of 2015-2016 (Rosenthal): Died in Ways & Means S.4570 of 2013-2014 (Hoylman): Died in Investigations A.6766 of 2013-2014 (Rosenthal): Died in Ways & Means
Fiscal implications
To be determined
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.