What's happening
This bill allows New York residents to claim state itemized deductions, including real property taxes, even if they take the federal standard deduction.
Why it matters
Provides tax relief for homeowners. By allowing residents to deduct state and local real property taxes on their New York return even if they take the federal standard deduction, the bill could help offset the impact of recent federal tax law changes that limited these deductions.
Decouples state and federal tax rules. The bill gives New Yorkers more flexibility to optimize their state tax filings independently from federal rules, letting them choose itemized deductions at the state level regardless of their federal deduction choice.
Potentially increases state tax refunds or lowers liability. Taxpayers, especially those in high property tax areas, may see lower state income tax bills or larger refunds, which could make homeownership more affordable or attractive.
Addresses fairness concerns. The bill aims to ensure that residents who lost out on valuable itemized deductions due to federal changes—such as the SALT cap—are not doubly penalized at the state level, helping maintain equity in the state’s tax system.
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Who cares
Headline styles
Expand State Tax Deductions
Plain English, a few words. Used as the page title.
Sponsors
History
- Enacting clause stricken
- Referred to ways and means
- Referred to ways and means
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
478
2019-2020 Regular Sessions
IN ASSEMBLY (Prefiled)
January 9, 2019
Introduced by M. of A. PAULIN, BUCHWALD, DINOWITZ, GOTTFRIED, SCHIMMING- ER, ZEBROWSKI, GALEF, ABINANTI, THIELE, ENGLEBRIGHT, SEAWRIGHT, JAFFEE, D'URSO, COLTON, ORTIZ -- read once and referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to authorizing the deduction of the New York itemized deduction where the individual's federal taxable income is not determined by itemizing deductions
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subsection (a) of section 615 of the tax law, as amended by section 3 of part JJ of chapter 59 of the laws of 2018, is amended to read as follows:
(a) General. If federal taxable income of a resident individual is determined by itemizing deductions or claiming the federal standard deduction from his or her federal adjusted gross income, he or she may elect to deduct his or her New York itemized deduction or claim his or her New York standard deduction. If federal taxable income of a resident individual is not determined by itemizing deductions from his or her federal adjusted gross income, he or she may elect to deduct his or her New York itemized deduction in lieu of his or her New York standard deduction. The New York itemized deduction of a resident individual means the total amount of his or her deductions from federal adjusted gross income allowed, other than federal deductions for personal exemptions, as provided in the laws of the United States for the taxable year, as such deductions existed immediately prior to the enactment of Public Law 115-97 with the modifications specified in this section, except as provided for under subsections (f) and (g) of this section.
§ 2. Subsection (d) of section 615 of the tax law is amended by adding a new paragraph 6 to read as follows:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03790-01-9
A. 478 2
(6) the total amount of the state and local real property taxes paid during the taxable year, as such term is defined in paragraphs (1) and (2) of subsection (a) of section one hundred sixty-four of the Internal Revenue Code without regard to paragraph (6) of subsection (b) of such section to the extent such taxes paid were not entirely claimed during the taxable year, or for the taxpayer who filed the standard deduction during the taxable year, but elected to file the New York itemized deduction, the total amount of such real property taxes paid during the taxable year.
§ 3. This act shall take effect immediately.
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.