NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A3807
SPONSOR: Gunther TITLE OF BILL:
An act to amend the tax law, in relation to establishing an income tax
credit for certain metropolitan commuters
PURPOSE:
Establishes a tax credit for individuals who pay the metropolitan commu-
ter transportation district (MCTD) supplemental registration fee for
farm vehicles.
SUMMARY OF PROVISIONS:
Section one amends section 606 of the tax law by adding a new
subsection (jjj) which establishes the metropolitan commuter transporta-
tion district (MCTD) fee tax credit. This is applicable to any person
who pays the registration fee required by section 499-A of the vehicle
and traffic law for a farm vehicle registered pursuant to subdivision 13
of section 401 of the vehicle and traffic law. It sets the amount of the
credit at the cost equal to the MCTD supplemental registration fee and
provides for the credit to be one hundred percent refundable.
Section two amends subparagraph (B) of paragraph 1 of subsection (i)
of section 606 of the tax law by adding a new clause (xliv) relating to
the applicability of the tax credit to small corporations.
Section three amends section 210-B of the tax law by adding a new
subdivision (53) which establishes the corporations' credit base for the
MCTD fee tax credit.
Section four is the effective date.
JUSTIFICATION: Currently, registrants of farm vehicles who reside in
the Metropolitan Commuter Transportation District (City of New York and
the Counties of Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk and
Westchester) must pay to the Commissioner of Motor Vehicles a supple-
mental registration fee of $50 every two years. According to State law,
farm vehicles are only allowed to travel between points within New York
State on public highways connecting portions of a farm or farms, munici-
pal sanitary landfills and licensed motor vehicle repair shops, and may
travel only by the most direct route, but in no event further than 25
miles one-way. However, despite these tight restrictions, farm vehicles
must pay the supplemental fee like any other registered vehicle in the
MCTD. This fee places an undue burden on our downstate farmers, who by
virtue of where they live must pay the supplemental fee, though they
receive no supplemental services.
This bill seeks to reimburse registrants of farm vehicles while not
reducing revenue to the MTA.
LEGISLATIVE HISTORY:
2021-22: A223 referred to Ways & Means
2019-20: A3667 referred to Ways & Means
2017-18: A915 referred to Ways & Means
2015-16: A7290A referred to Ways & Means
FISCAL IMPLICATIONS:
Minimal to State.
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to taxable years
beginning on and after January 1, 2020.
STATE OF NEW YORK
________________________________________________________________________
3807
2023-2024 Regular Sessions
IN ASSEMBLY
February 8, 2023
___________
Introduced by M. of A. GUNTHER -- read once and referred to the Commit-
tee on Ways and Means
AN ACT to amend the tax law, in relation to establishing an income tax
credit for certain metropolitan commuters
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 606 of the tax law is amended by adding a new
2 subsection (ooo) to read as follows:
3 (ooo) Metropolitan commuter transportation district fee tax credit.
4 Any person who pays the registration fee required by section four
5 hundred ninety-nine-a of the vehicle and traffic law for a farm vehicle
6 registered pursuant to subdivision thirteen of section four hundred one
7 of the vehicle and traffic law shall be allowed a credit of one hundred
8 percent of such fee against the tax otherwise imposed by this article.
9 If the amount of credit allowed under this subsection for any taxable
10 year exceeds the taxpayer's tax for such year, the excess shall be
11 treated as an overpayment of tax to be credited or refunded in accord-
12 ance with the provisions of section six hundred eighty-six of this arti-
13 cle, provided, however, that no interest shall be paid thereon.
14 § 2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
15 of the tax law is amended by adding a new clause (l) to read as follows:
16 (l) Metropolitan commuterAmount of credit under
17 transportation district fee taxsubdivision fifty-nine of
18 credit under subsection (ooo)section two hundred ten-B
19 § 3. Section 210-B of the tax law is amended by adding a new subdivi-
20 sion 59 to read as follows:
21 59. Metropolitan commuter transportation district fee tax credit. (a)
22 Any taxpayer who pays the registration fee required by section four
23 hundred ninety-nine-a of the vehicle and traffic law for a farm vehicle
24 registered pursuant to subdivision thirteen of section four hundred one
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD07066-01-3
A. 3807 2
1 of the vehicle and traffic law shall be allowed a credit of one hundred
2 percent of such fee against the tax otherwise imposed by this article.
3 (b) Application of credit. The credit allowed under this subdivision
4 for any taxable year shall not reduce the tax due for such year to less
5 than the fixed dollar minimum amount prescribed in paragraph (d) of
6 subdivision one of section two hundred ten of this article. However, if
7 the amount of credit allowed under this subdivision for any taxable year
8 reduces the tax to such amount or if the taxpayer otherwise pays tax
9 based on the fixed dollar minimum amount, any amount of credit thus not
10 deductible in such taxable year shall be treated as an overpayment of
11 tax to be credited or refunded in accordance with the provisions of
12 section one thousand eighty-six of this chapter. Provided, however, the
13 provisions of subsection (c) of section one thousand eighty-eight of
14 this chapter notwithstanding, no interest shall be paid thereon.
15 § 4. This act shall take effect immediately and shall apply to taxable
16 years beginning on and after January 1, 2024.
