What's happening
This bill expands state reimbursements for interest on federal tax underpayments to include those resulting from 2018 real property tax law changes.
Why it matters
Broadens eligibility for reimbursement. By including interest from federal tax underpayments due to 2018 real property tax law changes, more taxpayers—especially those affected by property tax policy shifts—can seek compensation for costs tied to these legislative changes.
Targets retroactive relief. The bill is retroactive to April 1, 2018, ensuring that taxpayers impacted by the 2018 changes aren’t excluded from relief simply because their interest payments predated this amendment.
Addresses administrative fairness. The state acknowledges that its own tax law changes may have caused federal tax penalties for residents, and takes responsibility by offering reimbursement—potentially fostering greater trust in state tax policy and responsiveness.
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Who cares
Headline styles
Refund Interest on Tax Changes
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to finance
- Referred to rules
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.
Refund Interest on Tax Changes
In Assembly Committee · Ways And Means · Sponsor David Buchwald
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6878
2019-2020 Regular Sessions
IN SENATE
November 27, 2019
Introduced by Sen. GAUGHRAN -- read twice and ordered printed, and when printed to be committed to the Committee on Rules
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.
Sponsor's memo
Title of bill
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
Purpose
To ensure that New York State property taxpayers do not bear the risk, no matter how small, of interest charges on federal tax liabilities resulting from real property tax changes enacted by the State of New York in 2018.
Summary of provisions
Section one of the bill expands to real property law changes (in partic- ular the charitable deduction program that provides credits against local property taxes) the new state program that has the Department of Taxation and Finance reimburse New Yorkers' payments of interest on underpayments of federal tax liability that arise from the taxpayer's reliance on amendments to the tax law enacted in 2018. The interest liability coverage would begin for tax year 2018, the first year in which the property tax credits are available.
Section two sets the effective date.
Justification
As part of the 2018 state budget, New York established the ability for New Yorkers to make charitable contributions to New York State as well as to local governments and school districts, which would entitle the donors to, respectively, state income tax credits or local property tax credits. The legislation established that New York State would cover any interest charged by the federal government as a result of state tax law changes in 2018. However, this provision seemingly does not cover any interest charged to New Yorkers by the federal government in connection with the charitable funds established by local governments and school districts. This bill addresses that omission.
Impact on regulation of businesses and individuals
None.
Effect on fines, terms of imprisonment or other penal sanctions
None.
Legislative history
2018: A.10543 - Referred to Ways and Means
Fiscal implications
Expected to be none to the state, given the confidence we have in the ability of New Yorkers to successfully claim federal tax deductions for these donations to local governments and schools. Positive fiscal impli- cations to local governments and school districts to the extent this interest guarantee encourages property taxpayers to make these charita- ble contributions.
Effective date
This bill shall take effect immediately, and shall be deemed to have been in full force on and after April 1, 2018.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.