Exempts the amount of any service award paid to any volunteer firefighter or ambulance worker from personal income tax

1 Co-sponsor

• Phil Boyle

BILL NUMBER:S540

Title of bill

An act to amend the tax law, in relation to exempting the proceeds from service award programs for volunteer firefighters and ambulance workers from personal income taxes

Purpose of the bill

To correct an inequity with comparable benefits by providing that length of service award benefits for volunteer firefighters and volunteer ambulance workers be exempt from taxation.

Summary of specific provisions

Article 22 of the tax law regarding personal income is amended by adding new paragraph 3-d to subsection (c) of section 612.

Justification

Service award programs were created, a means of aiding in the recruitment and especially the retention of volunteer firefighters and volunteer ambulance workers.

There is no question that the retention of volunteers has been aided by the service awards provided by the enactment of the length of service program law. Unfortunately, the benefits in both the individual and to fire safety (through retention) are now being called into question as it becomes known that income that will be derived will be treated as personal income for taxation purposes.

This bill seeks to correct what is essentially an inequity, both with respect to the spirit in which the law was created and as compared to certain other benefits generally available, such as disability income, social security benefits, and pensions and annuities.

Prior legislative history

2011-2012: S.4727 2009-2010: A.4450/S.5420 2007-2008: A.4895-B/S.2026-B 2005-2006: A.957-A/S.1908-A 2003-2004: A.2592/S.4109 2001-2002: A.8737/S.4841 1999-2000: A.11007/S.7642

Fiscal implications

None.

Effective date

This act shall take effect immediately and apply to taxable years beginning on and after January 1, 2014.