NY State Senate Bill 2011-S6317

Senate Bill S6317

2011-2012 Legislative Session

Increases the tax exemption for pensions and annuities for persons age fifty-nine and one half or greater

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Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 25, 2012	referred to investigations and government operations

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2011-S6317 (ACTIVE) - Details

Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §612, Tax L
Versions Introduced in 2013-2014 Legislative Session:: S1661

2011-S6317 (ACTIVE) - Summary

Increases the tax exemption for pensions and annuities for persons age fifty-nine and one half or greater from $20,000 to $50,000.

2011-S6317 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S6317

TITLE OF BILL:

An act
to amend the tax law, in relation to increasing the exemption for
pensions and annuities for certain persons

PURPOSE OR GENERAL IDEA OF BILL:

To ensure that the tax law regarding pensions and annuities is current
and reflects a more realistic exemption by raising the ceiling from
the first twenty-thousand to fifty- thousand dollars to be tax exempt.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1 amends section 612, paragraph 3-a of sub-section (c) of the
tax law by omitting twenty and adding fifty pensions and annuities
received by an individual who has attained the age of fifty-nine and
one-half, to the extent includible in gross income not in excess of
fifty thousand dollars.
Specifically periodic payments that come from a contribution to an
employment based retirement plan or an individual annuity plan which
are deductible for federal income tax purposes.

JUSTIFICATION:

This bill would update an antiquated tax ceiling established in 1981.
Since the enactment of this law the average Cost of Living Allowance
(COLA) increase to Social Security payments has been approximately 3
percent, according to the Bureau of Labor and statistics and the
Consumer price Index for Urban Wage Earners and Clerical workers
(CPI-W).

In the past several years many citizens have, out of necessity, had to
work past minimum retirement age in order to maintain their income
level and increase their retirement benefits. This bill will not only
modernize our tax code but allow retirement age citizens collecting
these payments to be more fiscally solvent and improve their quality
of life.

PRIOR LEGISLATIVE HISTORY:

None.

FISCAL IMPLICATIONS:

To be determined.

EFFECTIVE DATE:

This act shall take effect immediately and shall be deemed to have
been in full force and effect on and after the first of January of
the year in which it shall have become law.

2011-S6317 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  6317

                            I N  S E N A T E

                            January 25, 2012
                               ___________

Introduced  by Sen. GRISANTI -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations

AN ACT to amend the tax law, in relation to increasing the exemption for
  pensions and annuities for certain persons

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Paragraph 3-a of subsection (c) of section 612 of the tax
law, as amended by chapter 760 of the laws of 1992, is amended  to  read
as follows:
  (3-a)  Pensions  and  annuities  received  by  an  individual  who has
attained the age of fifty-nine  and  one-half,  not  otherwise  excluded
pursuant to paragraph three of this subsection, to the extent includible
in  gross  income  for federal income tax purposes, but not in excess of
[twenty] FIFTY thousand dollars, which are periodic  payments  attribut-
able  to  personal  services  performed  by such individual prior to his
retirement from employment, which arise (i)  from  an  employer-employee
relationship  or  (ii) from contributions to a retirement plan which are
deductible for federal income tax purposes. However, the term  "pensions
and  annuities" shall also include distributions received by an individ-
ual who has attained the age of fifty-nine and one-half from an individ-
ual retirement account or an individual retirement annuity,  as  defined
in section four hundred eight of the internal revenue code, and distrib-
utions  received by an individual who has attained the age of fifty-nine
and one-half from self-employed individual and owner-employee retirement
plans which qualify under section  four  hundred  one  of  the  internal
revenue code, whether or not the payments are periodic in nature. Never-
theless,  the  term  "pensions and annuities" shall not include any lump
sum distribution, as defined in subparagraph (A) of  paragraph  four  of
subsection  (e) of section four hundred two of the internal revenue code
and taxed under section six hundred  three  of  this  article.  Where  a
husband  and  wife  file  a  joint state personal income tax return, the
modification provided for in this paragraph shall be computed as if they
were filing separate state personal income tax returns. Where a  payment

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.

                                                           LBD14098-01-2

S. 6317                             2

would otherwise come within the meaning of the term "pensions and annui-
ties"  as  set  forth  in this paragraph, except that such individual is
deceased, such payment shall, nevertheless, be treated as a  pension  or
annuity  for  purposes  of this paragraph if such payment is received by
such individual's beneficiary.
  S 2. This act shall take effect immediately and  shall  be  deemed  to
have  been in full force and effect on and after the first of January of
the year in which it shall have become a law.

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Senate Bill S6317

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Sponsored By

Mark Grisanti