What's happening
This bill creates a personal income tax credit for certain retired or retiring New York state managerial or confidential employees who had salary increases withheld.
Why it matters
Targets a specific group of state workers. The bill provides tax relief specifically for New York state employees in managerial or confidential roles who retired (or are retiring) between April 1, 2009, and March 31, 2020, acknowledging that their salary increases were withheld during the fiscal crises of 2009 and 2010.
Addresses past financial impact. By offering a $1,000 annual tax credit for five years, the legislation aims to partially compensate retirees for the long-term effects of missing out on authorized but withheld salary increases, which could have affected not just immediate income but also pension calculations.
Flexible benefit timing. The bill allows for the tax credit to be carried forward or backward for up to three years, providing flexibility for retirees whose tax situations might vary year to year, thus maximizing the benefit's practical value.
Formal state recognition. The requirement for the state comptroller to certify eligible individuals adds an official layer of validation, ensuring that only those who were truly affected by the salary freeze receive the credit, and potentially setting a precedent for addressing other groups impacted by similar fiscal decisions.
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Who cares
Headline styles
Tax Credit for State Retirees
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to investigations and government operations
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
892
2019-2020 Regular Sessions
IN SENATE
January 9, 2019
Introduced by Sens. YOUNG, BOYLE -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations
AN ACT to amend the tax law, in relation to establishing a personal income tax credit for certain employees who served in a position or positions in the classified service of the state of New York, designated managerial or confidential pursuant to article fourteen of the civil service law
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 606 of the tax law is amended by adding a new subsection (jjj) to read as follows:
(jjj) Management/confidential personal income tax credit. (1) A taxpayer who served in a position or positions in the classified service of the state of New York designated managerial or confidential pursuant to article fourteen of the civil service law and has retired or is retiring between April first, two thousand nine and March thirty-first, two thousand twenty and had a salary increase authorized under chapter ten of the laws of two thousand eight which was withheld for the fiscal years two thousand nine and/or two thousand ten shall be allowed a credit against the tax imposed by this article of up to one thousand dollars annually for five years. The comptroller shall certify to the department a listing of all such taxpayers deemed eligible as defined above.
(2) Any tax credit not used in the taxable year of retirement may be carried forward or backwards for three calendar years until the full credit has been allowed.
§ 2. This act shall take effect immediately and shall apply to taxable years beginning on and after January 1, 2019.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04141-01-9
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the tax law, in relation to establishing a personal income tax credit for certain employees who served in a position or positions in the classified service of the state of New York, designated managerial or confidential pursuant to article fourteen of the civil service law
Purpose or general idea of bill
This bill provides certain employees designated managerial or confiden- tial to receive a tax credit to partially replace the value of salary increases that were withheld in 2009 and /or 2010.
Summary of provisions
Amends section 606 of the tax law by adding a new subsection (ccc) to provide a tax credit to certain employees designated managerial or confidential and retired between April 1, 2009 and March 31, 2020.
Justification
This measure provides a tax credit to those management confidential employees that retired after having salary increases withheld for 2009 and/or 2010. New York State saved over $450 million in salaries and fringe benefits from the withholding of salary increase for 2009 and 2010. No more than 4,000 eligible retirees are expected to take advan- tage of this tax credit. The average total tax credits realized by the average eligible retiree would be $1,500, far less than the salary with- held. It is only fair to restore some of the lost value of the withheld salaries.
Prior legislative history
2018: S.3066-B/A.5211-C Referred to Investigations and Government Oper- ations 2017: S.3066-A/A.5211-13 Referred to Investigations and Government Oper- ations
Fiscal /implications for state and local governments
Annual tax revenue-decreased by $3.7 Million average over the 3-year life of this bill.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.