What's happening
This bill allows pensions from other states to be subtracted from New York adjusted gross income for tax purposes.
Why it matters
Levels the tax playing field for retirees from other states. By allowing pensions from any other state to be subtracted from New York adjusted gross income, this bill removes a tax disadvantage for people who worked as public employees elsewhere but now live in New York, making the state more attractive for such retirees.
Potentially increases New York’s retiree population. The change could encourage more retired public employees from across the U.S. to move to or remain in New York, since their pensions would not be taxed by the state—this could have economic and demographic impacts, especially in communities seeking to attract residents.
Reduces tax liability for certain taxpayers. The bill would lower the state and New York City income tax owed by eligible retirees, resulting in higher after-tax income for those receiving qualifying out-of-state public pensions.
Addresses fairness and reciprocity concerns. The proposal addresses complaints that New York fully exempts its own public pensions from state taxes, but taxes similar pensions from other states, which some see as unfair or potentially in violation of the spirit of interstate equality.
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Who cares
Headline styles
Exclude Other States’ Pensions
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Held for consideration in ways and means
- Referred to ways and means
- Referred to ways and means
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1484
2017-2018 Regular Sessions
IN ASSEMBLY
January 12, 2017
Introduced by M. of A. CROUCH -- read once and referred to the Committee on Ways and Means
AN ACT to amend the tax law and the administrative code of the city of New York, in relation to subtracting certain pensions from other states from adjusted gross income
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph 3 of subsection (c) of section 612 of the tax law is amended by adding a new subparagraph (iii) to read as follows:
(iii) Pensions to officers and employees of any state of the United States, or any agency or instrumentality of any such state, to the extent includible in gross income for federal income tax purposes;
§ 2. Paragraph 3 of subdivision (c) of section 11-1712 of the administrative code of the city of New York is amended by adding a new subparagraph (iii) to read as follows:
(iii) Pensions to officers and employees of any state of the United States, or any agency or instrumentality of any such state, to the extent includible in gross income for federal income tax purposes;
§ 3. This act shall take effect immediately and shall apply to pension benefits of any state of the United States except for New York received in taxable years beginning on or after January 1, 2018.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04397-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.