Senators Tax and Budget

The New York Senate has passed a resolution against delaying income tax refunds as a way to ease the state's financial pinch.

The measure Democrats and Republicans adopted by voice vote Tuesday follows Government suggestion to lower the cap on income-tax refunds paid out before March 31 from $1.75 billion to $1.25 billion. Budget officials say some refunds would be delayed by up to three weeks.

Normal refund processing takes 45 days, that money belongs to taxpayers and it's unacceptable for the state to keep it longer. Nonbinding Senate measure is meant to build support.

The Senate’s solution is to switch the obligation for paying the tax from buyers to sellers, technically transforming the “use tax” into a “sales tax.” Obviously, few online merchants are eager to increase the cost of what they sell by 8.25 percent, the state’s base rate, plus however much more local governments add to the rate where the buyers reside.