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A115Assembly2019-2020 SessionSame asS6878

Refund Interest on Tax Changes

Official title

“Relates to state reimbursements for interest on federal tax liability resulting from real property tax law changes enacted in 2018”

Sponsor David BuchwaldAD-93+1 co-sponsorAffects Finance
Status
In Assembly Committee
Ways And Means
Impact
6/10
Moderate
Passage
0%

Bill progress

Step 2 of 7

In committee · Ways And Means

What's happening

This bill expands eligibility for state reimbursement of interest on federal tax underpayments to include those caused by 2018 real property tax law changes.

Why it matters

  1. Expands financial relief to more taxpayers. By including those affected by 2018 real property tax law changes, the bill ensures that more New Yorkers who faced unexpected federal tax interest charges due to state law changes can qualify for state reimbursement.

  2. Addresses unintended financial hardship. The amendment acknowledges that changes in real property tax law may have caused taxpayers to underpay federal taxes unintentionally, offering retroactive relief for interest payments and helping to mitigate unforeseen financial burdens.

  3. Promotes fairness and trust in state tax policy. By correcting for the consequences of state-level legislative changes, the bill reinforces the principle that taxpayers should not bear the cost of state actions that inadvertently increase their federal tax liabilities, potentially increasing public confidence in government responsiveness.

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Who cares

  • Taxpayers who relied on 2018 real property tax law changes

    The bill would extend reimbursement eligibility to interest paid on final federal tax underpayment determinations arising from that reliance for tax years 2018 through 2021.

  • Taxpayers with 2018 federal tax underpayments

    The bill would add the 2018 tax year to the reimbursement program for interest arising from reliance on tax law or real property tax law changes enacted in 2018.

  • New York State Department of Taxation and Finance

    The department would administer the expanded eligibility through its required online claims system, with taxpayers required to file within 60 days of paying interest to the IRS.

Headline styles

Refund Interest on Tax Changes

Plain English, a few words. Used as the page title.

Sponsors

Primary sponsor
David Buchwald

Assembly Member · Assembly District 93

1 Co-sponsor

History

  1. Referred to ways and means
  2. Referred to ways and means

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.

S6878Senate

Refund Interest on Tax Changes

In Senate Committee · Finance · Sponsor Jim Gaughran

Impact 6 · Moderate0% to pass

Full text

1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗

STATE OF NEW YORK

115

2019-2020 Regular Sessions

IN ASSEMBLY (Prefiled)

January 9, 2019

Introduced by M. of A. BUCHWALD, PAULIN -- read once and referred to the Committee on Ways and Means

AN ACT to amend part EEE of chapter 59 of the laws of 2018, relating to an online application system for taxpayers to submit claims for reimbursements of certain payments, in relation to state reimbursements for interest on federal tax liability resulting from real property tax law changes enacted in 2018

The People of the State of New York, represented in Senate and Assembly, do enact as follows:

Section 1. Section 1 of part EEE of chapter 59 of the laws of 2018, relating to an online application system for taxpayers to submit claims for reimbursements of certain payments, is amended to read as follows:

Section 1. The tax department shall be required to set up an online application system for taxpayers to submit claims for reimbursements of payments of interest on fixed and final determinations of underpayments of federal tax liability for the 2018, 2019, 2020 and 2021 tax year that arise from the taxpayers' reliance on amendments to the tax law or real property tax law enacted in the year 2018. In order to receive such reimbursement, taxpayers shall be required to submit their reimbursement claims to the department of taxation and finance within 60 days of making their payments of interest to the internal revenue service.

§ 2. This act shall take effect immediately, and shall be deemed to have been in full force and effect on and after April 1, 2018.

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD01055-01-9

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.