Increases the tax exemption for pensions and annuities for persons age fifty-nine and one-half or greater from $20,000 to $25,000 in 2017, $30,000 in 2018, $35,000 in 2019 and $40,000 for each subsequent year.
STATE OF NEW YORK
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2903--C
Cal. No. 909
2015-2016 Regular Sessions
IN SENATE
January 30, 2015
___________
Introduced by Sens. FARLEY, SERINO, AKSHAR, AMEDORE, AVELLA, BONACIC,
BOYLE, CARLUCCI, CROCI, DeFRANCISCO, FELDER, FLANAGAN, FUNKE, GALLI-
VAN, GOLDEN, GRIFFO, KLEIN, LANZA, LARKIN, LAVALLE, LITTLE, MARCELLI-
NO, MARCHIONE, MARTINS, MURPHY, NOZZOLIO, O'MARA, ORTT, RANZENHOFER,
RITCHIE, ROBACH, SAVINO, SEWARD, VALESKY, VENDITTO, YOUNG -- read
twice and ordered printed, and when printed to be committed to the
Committee on Investigations and Government Operations -- committee
discharged, bill amended, ordered reprinted as amended and recommitted
to said committee -- recommitted to the Committee on Investigations
and Government Operations in accordance with Senate Rule 6, sec. 8 --
committee discharged, bill amended, ordered reprinted as amended and
recommitted to said committee -- reported favorably from said commit-
tee and committed to the Committee on Finance -- reported favorably
from said committee, ordered to first and second report, amended on
second report, ordered to a third reading, and to be reprinted as
amended, retaining its place in the order of third reading
AN ACT to amend the tax law, in relation to increasing the exemption for
pensions and annuities for certain persons
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraph 3-a of subsection (c) of section 612 of the tax
2 law, as amended by section 3 of part I of chapter 59 of the laws of
3 2015, is amended to read as follows:
4 (3-a) Pensions and annuities received by an individual who has
5 attained the age of fifty-nine and one-half, not otherwise excluded
6 pursuant to paragraph three of this subsection, to the extent includible
7 in gross income for federal income tax purposes, but not in excess of
8 [twenty] twenty-five thousand dollars for any taxable year beginning on
9 or after January first, two thousand seventeen, thirty thousand dollars
10 for any taxable year beginning on or after January first, two thousand
11 eighteen, thirty-five thousand dollars for any taxable year beginning on
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD08412-06-6
S. 2903--C 2
1 or after January first, two thousand nineteen, and forty thousand
2 dollars in each subsequent year, which are periodic payments attribut-
3 able to personal services performed by such individual prior to his
4 retirement from employment, which arise (i) from an employer-employee
5 relationship or (ii) from contributions to a retirement plan which are
6 deductible for federal income tax purposes. However, the term "pensions
7 and annuities" shall also include distributions received by an individ-
8 ual who has attained the age of fifty-nine and one-half from an individ-
9 ual retirement account or an individual retirement annuity, as defined
10 in section four hundred eight of the internal revenue code, and distrib-
11 utions received by an individual who has attained the age of fifty-nine
12 and one-half from self-employed individual and owner-employee retirement
13 plans which qualify under section four hundred one of the internal
14 revenue code, whether or not the payments are periodic in nature. Never-
15 theless, the term "pensions and annuities" shall not include any lump
16 sum distribution, as defined in subparagraph (D) of paragraph four of
17 subsection (e) of section four hundred two of the internal revenue code
18 and taxed under section six hundred three of this article. Where a
19 husband and wife file a joint state personal income tax return, the
20 modification provided for in this paragraph shall be computed as if they
21 were filing separate state personal income tax returns. Where a payment
22 would otherwise come within the meaning of the term "pensions and annui-
23 ties" as set forth in this paragraph, except that such individual is
24 deceased, such payment shall, nevertheless, be treated as a pension or
25 annuity for purposes of this paragraph if such payment is received by
26 such individual's beneficiary.
27 § 2. This act shall take effect immediately.
