What's happening
Writing a plain-English summary… Track this bill to get it by email.
Why it matters
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Headline styles
Sponsors
No co-sponsors yet.
History
- Print number 3310a
- Amend and recommit to investigations and government operations
- Referred to investigations and government operations
- Referred to investigations and government operations
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to amend the tax law, in relation to increasing a pension exemption
Purpose
This bill updates the law regarding pensions and annuities. It increases the amount that private-sector pensions and annuities are exempt from the Personal Income Tax to $75,000.
Summary of provisions
Section 1 amends paragraph 3-a of sub-section (c) of section 612 of the Tax Law. It increases to $75,000 the amount from pensions and annuities received by an individual who has attained the age of fifty-nine and one-half that can be excluded from the calculation of gross income. Specifically, the funds to be excluded must be periodic payments attributable to personal services performed by the individual prior to their retirement. The funds must come from an employer-employee relationship or from contributions to a retirement plan which are deductible for federal income tax purposes.
Section 2 provides the effective date.
Justification
This bill updates the tax ceiling for retirement income derived from pensions and annuities. The current law is out of date and does not reflect the growth in retirement income that has occurred since its enactment in 1982. Since that time the Consumer Price index has increased by 135 percent. This legislation is necessary to ensure that the recipients of income received from private-sector pensions and annuities are treated in a similar fashion as the recipients of income received from public-sector or government pensions.
Currently, only the first $20,000 of income from private-sector pensions and annuities is exempt from the Personal Income Tax, but income from government pensions is completely exempt from the Personal Income Tax. This bill seeks to level that playing field by treating recipients of private-sector pensions and annuities in a more equitable manner.
Under this legislation, up to $75,000 of the income individuals receive from private-sector pensions and annuities for the purposes of personal Income Tax is exempted. By increasing the income ceiling for Personal Income Tax calculations, New Yorkers become more fiscally solvent. Retirement income should be treated equitably and this legislation achieves that objective.
Legislative history
2013-2014: S.6573 - referred to investigations and government operations.
Fiscal implications
To be determined.
Effective date
This act shall take effect on the first of January next succeeding.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.