Bill Text: NY A10382 | 2011-2012 | General Assembly | Introduced

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Bill Title: Authorizes the creation of small business tax-deferred savings accounts.

Spectrum: Strong Partisan Bill (Republican 15-1)

Status: (Introduced - Dead) 2012-05-24 - referred to small business [A10382 Detail]

Download: New_York-2011-A10382-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         10382
                                 I N  A S S E M B L Y
                                     May 24, 2012
                                      ___________
       Introduced  by  M.  of  A. RA, GOODELL -- Multi-Sponsored by -- M. of A.
         SALADINO -- read once and referred to the Committee on Small Business
       AN ACT to amend the economic development law, the tax law and the  labor
         law, in relation to authorizing the creation of small business tax-de-
         ferred savings accounts
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. The economic development law is amended  by  adding  a  new
    2  section 139 to read as follows:
    3    S  139. SMALL BUSINESS TAX-DEFERRED SAVINGS ACCOUNTS. 1. (A) ANY SMALL
    4  BUSINESS SHALL BE AUTHORIZED TO ESTABLISH AND  DEPOSIT  PROFITS  INTO  A
    5  SMALL BUSINESS TAX-DEFERRED SAVINGS ACCOUNT.
    6    (B)  THE MONIES IN SUCH TAX-DEFERRED SAVINGS ACCOUNTS MAY BE WITHDRAWN
    7  TAX FREE ONLY WHEN THE COMMISSIONER OF LABOR DECLARES AN ECONOMIC  DOWN-
    8  TURN PURSUANT TO SUBDIVISION FOURTEEN OF SECTION TWENTY-ONE OF THE LABOR
    9  LAW.
   10    (C)  IF  A    SMALL  BUSINESS WITHDRAWS FUNDS FROM SUCH A TAX-DEFERRED
   11  SAVINGS ACCOUNT WHEN AN ECONOMIC DOWNTURN HAS NOT  BEEN  DECLARED,  SUCH
   12  FUNDS WITHDRAWN SHALL BE TAXABLE AS INCOME UNDER THE TAX LAW.
   13    S 2. Section 209 of the tax law is amended by adding a new subdivision
   14  11 to read as follows:
   15    11.  FOR  ANY  TAXABLE  YEAR  BEGINNING ON OR AFTER JANUARY FIRST, TWO
   16  THOUSAND THIRTEEN, ANY SMALL BUSINESS, AS SUCH TERM IS DEFINED  PURSUANT
   17  TO SECTION ONE HUNDRED THIRTY-ONE OF THE ECONOMIC DEVELOPMENT LAW, SHALL
   18  BE  EXEMPT FROM ALL TAXES IMPOSED PURSUANT TO THIS ARTICLE FOR ANY WITH-
   19  DRAWAL FROM A SMALL BUSINESS TAX-DEFERRED  SAVINGS  ACCOUNT  ESTABLISHED
   20  PURSUANT  TO SECTION ONE HUNDRED THIRTY-NINE OF THE ECONOMIC DEVELOPMENT
   21  LAW AND MADE DURING AN ECONOMIC DOWNTURN DECLARED BY THE COMMISSIONER OF
   22  LABOR PURSUANT TO SUBDIVISION FOURTEEN  OF  SECTION  TWENTY-ONE  OF  THE
   23  LABOR LAW.
   24    S 3. Subsection (c) of section 612 of the tax law is amended by adding
   25  a new paragraph 39 to read as follows:
   26    (39) ANY WITHDRAWAL FROM A SMALL BUSINESS TAX-DEFERRED SAVINGS ACCOUNT
   27  ESTABLISHED  PURSUANT TO SECTION ONE HUNDRED THIRTY-NINE OF THE ECONOMIC
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD15887-01-2
       A. 10382                            2
    1  DEVELOPMENT LAW MADE DURING AN ECONOMIC DOWNTURN DECLARED BY THE COMMIS-
    2  SIONER OF LABOR PURSUANT TO SUBDIVISION FOURTEEN OF  SECTION  TWENTY-ONE
    3  OF THE LABOR LAW.
    4    S  4.  Section 21 of the labor law is amended by adding a new subdivi-
    5  sion 14 to read as follows:
    6    14. SHALL CALCULATE AND PUBLISH, ON OR BEFORE  THE  FIFTEENTH  DAY  OF
    7  EACH  MONTH,  A COMPOSITE INDEX OF BUSINESS CYCLE INDICATORS. SUCH INDEX
    8  SHALL BE CALCULATED USING MONTHLY DATA ON  NEW  YORK  STATE  EMPLOYMENT,
    9  TOTAL  MANUFACTURING  HOURS  WORKED,  AND  UNEMPLOYMENT  PREPARED BY THE
   10  DEPARTMENT OR ITS SUCCESSOR AGENCY, AND TOTAL SALES TAX COLLECTED NET OF
   11  LAW CHANGES, PREPARED BY THE DEPARTMENT OF TAXATION AND FINANCE  OR  ITS
   12  SUCCESSOR AGENCY. SUCH INDEX SHALL BE CONSTRUCTED IN ACCORDANCE WITH THE
   13  PROCEDURES  FOR  CALCULATING  COMPOSITE INDEXES ISSUED BY THE CONFERENCE
   14  BOARD OR ITS SUCCESSOR ORGANIZATION, AND  ADJUSTED  FOR  SEASONAL  VARI-
   15  ATIONS  IN ACCORDANCE WITH THE PROCEDURES ISSUED BY THE CENSUS BUREAU OF
   16  THE UNITED STATES DEPARTMENT OF COMMERCE OR ITS SUCCESSOR AGENCY. IF THE
   17  COMPOSITE INDEX DECLINES FOR FIVE CONSECUTIVE MONTHS,  THE  COMMISSIONER
   18  OF  LABOR  SHALL  NOTIFY  THE GOVERNOR, THE SPEAKER OF THE ASSEMBLY, THE
   19  TEMPORARY PRESIDENT OF THE SENATE,  AND  THE  MINORITY  LEADERS  OF  THE
   20  ASSEMBLY AND THE SENATE THAT AN ECONOMIC DOWNTURN HAS BEEN DECLARED.
   21    S 5. This act shall take effect immediately.