BILL NUMBER: S171
SPONSOR: RAMOS
 
TITLE OF BILL:
An act to amend the tax law, in relation to establishing a tax credit
for the payment of union dues
 
PURPOSE:
This bill allows taxpayers to claim their union dues as refundable tax
credit.
 
SUMMARY OF PROVISIONS:
Section 1 Amends section 606 of the tax law to allow a tax credit for
qualified union dues paid to a labor organization. The definitions of
"bargaining representative," "labor organization," and "qualified union
dues" are also added.
Section 2 Establishes the effective date.
 
JUSTIFICATION:
Unions provide a necessary support system for workers' rights, advocat-
ing for higher wages, safer working conditions, longer paid leave, and
expansive retirement benefits. They serve as a safeguard for their work-
ers, preventing employers from exploiting them at will.
However, the effort to unionize is often met with aggressive opposition.
One popular tactic used to undermine unions is employers claiming that
the money spent on union dues is wasteful and should deter workers from
joining. This legislation aims to challenge this narrative.
Prior to the 2017 federal "Tax Cuts and Jobs Act," workers were allowed
to deduct unreimbursed business expenses, including union dues, from
their taxes. However, the "Tax Cuts and Jobs Act" reversed this right.
With this legislation, New York State can once again provide a tax cred-
it for union dues paid. It is crucial for New Yorkers not to be discour-
aged by union dues when seeking proper representation of their rights in
the workforce.
 
LEGISLATIVE HISTORY:
2023-24: S7092 (Ramos) Referred to Budget and Revenue
 
FISCAL IMPACT:
To be Determined
 
EFFECTIVE DATE:
This act shall take effect immediately.

Statutes affected:
S171: 606 tax law