The Senate passed legislation today that would require the state to pay tax refunds within 30 days of receiving a tax return. The Department of Taxation and Finance traditionally has held returns for up to two months after receiving tax returns, according to Sen. Carl Marcellino, R-Syosset, Nassau County, the bill’s sponsor.
If the state didn’t make the deadline, it would have to pay 6 percent interest on the refund, according to the legislation.
“If taxpayers who do the right thing and file on time, the state should do the right thing and get the refunds out the door in a timely fashion,” Marcellino said in a statement. “It shouldn’t take up to eight weeks to get your money back. I think the state can do better and this legislation would make sure that they do.”
There would be an exception to the 30-day deadline if there was a discrepancy in a tax return. In that case, the Department of Taxation and Finance would have to send written notice to the taxpayer and provide a date by which the discrepancy would be resolved.
The legislation now goes to the Assembly, where there currently is no companion bill.