I received a state tax refund last year from New York. Must I include that amount as income on my New York return this year?

I received a state tax refund last year from New York. Must I include that amount as income on my New York return this year?
YES

Not necessarily.

If you itemized in your 2005 federal tax return, then, yes, the state tax refund is considered taxable income for 2006.

If you did NOT itemize, then the refund is NOT taxable income.