Santabarbara Bill to Provide Tax Exemption for Pension Payouts in New York

NY would join 15 others states that do tax retirement income

“With New York recent population loss highlighted by Comptroller DiNapoli my proposed tax exemptions for pension payouts represent a crucial step towards revitalizing the state's attractiveness and ensuring a brighter future for its residents,” Assemblyman Angelo Santabarbara

In response to Comptroller DiNapoli's report highlighting New York's population decline, Assemblyman Angelo Santabarbara introduced a new legislative initiative to enhance the state's appeal. The proposed bill, A.7995, introduces tax exemptions for pension payouts, marking a move towards revitalizing the state's allure and ensuring a more secure retirement landscape, as emphasized by Comptroller DiNapoli [ leaving-nyc].

Comptroller DiNapoli underscored the urgency of making New York an attractive, affordable place to work and live. The proposed tax exemptions for pension payouts represent a crucial step towards achieving this goal. "The pandemic upended everyone’s life and caused a big shift in the movement of New York taxpayers in 2020," DiNapoli said. "While patterns shifted closer to pre-pandemic trends in 2021, net out-migration rates remained higher, particularly for families. Policy makers need to ensure the state remains an attractive, affordable place to work and live, maintaining the state’s largest revenue source to ensure vital services continue for a high quality of life for all New Yorkers."

Assemblyman Santabarbara aims to position New York among the fifteen states, including Alaska, Florida, and Texas, already offering tax exemptions on pension distributions. The legislation enables retirees in New York to retain more of their well-deserved pension, establishing equitable tax policies on a national scale.

The bill simplifies the complex web of state tax regulations surrounding pension income, offering crucial financial relief for retirees facing economic strains during their retirement years.

In alignment with organizations like AARP, the legislation addresses evolving financial needs, advocating for fair and just pension tax policies. Assemblyman Santabarbara urges swift action from Governor Hochul and State Legislature colleagues in the upcoming session.

By championing this legislation, Assemblyman Santabarbara aims to underscore the state's commitment to its aging population and set a precedent for common-sense policies that resonate nationally and help people to keep more of their hard-earned money.