What's happening
This bill exempts certain active military service compensation from New York residents' taxable income under specified conditions.
Why it matters
Broadens the exemption. The bill expands the previous narrow exemption for military income, allowing more service members to exclude their active duty pay from New York state taxable income if they meet certain residency and service location criteria.
Targets out-of-state service. It specifically benefits New York residents who serve outside the state—either by serving at least 90 days out of state, maintaining a permanent place of abode outside New York for the tax year, or living in non-permanent military housing—potentially reducing their tax burden significantly.
Modernizes outdated limitations. The bill removes outdated restrictions (such as the $100/month cap and specific Vietnam-era dates), making the tax code more relevant to today’s military service members and their families.
Potential recruitment and retention impact. By easing state tax burdens for active-duty personnel, especially those stationed away from home, New York could become more attractive for military families considering residency, which may have secondary effects on local economies and community ties.
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Headline styles
Exclude Military Pay from Taxes
Plain English, a few words. Used as the page title.
Sponsors
History
- Held for consideration in ways and means
- 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
1956
2019-2020 Regular Sessions
IN ASSEMBLY
January 18, 2019
Introduced by M. of A. HAWLEY, KOLB, BARCLAY, MONTESANO, STEC, BRABENEC, DiPIETRO, ASHBY -- read once and referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to exempting compensation for active military service from inclusion in a resident's adjusted gross income
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph 8 of subsection (c) of section 612 of the tax law, as amended by chapter 528 of the laws of 1964, is amended to read as follows:
(8) Compensation received for active service in the armed forces of the United States [on or after October first, nineteen hundred sixtyone, and prior to September first, nineteen hundred sixty-two; provided, however, that the amount of such compensation to be deducted shall not exceed one hundred dollars for each month of the taxable year, subsequent to September, nineteen hundred sixty-one, during any part of which month the taxpayer was engaged in such service] if: (A) the taxpayer maintained a permanent residence in New York state and served in the active service in the armed forces of the United States outside of New York state for a period of at least ninety days during the taxable year; (B) the taxpayer maintained a permanent place of abode outside of New York state while in active service for the entire taxable year; or (C) the taxpayer maintained an abode in New York state other than such person's permanent address while in active service; including residence in a military barracks, bachelor's quarters or on board a naval vessel. For the purposes of this paragraph, the words "active service in the armed forces of the United States" shall mean active duty (other than for training) in the army, navy (including the marine corps), air force or coast guard of the United States as defined in title ten of the United States code.
§ 2. This act shall take effect immediately and shall apply to taxable years beginning on and after January 1, 2020.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02097-01-9
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.