Assembly Bill A9515

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

                                  9515

                          I N  A S S E M B L Y

                             January 8, 2010
                               ___________

Introduced by M. of A. DelMONTE -- read once and referred to the Commit-
  tee on Ways and Means

AN  ACT  to  amend the tax law, in relation to increasing amounts of tax
  exemptions with respect to pensions and annuities

  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] THIRTY 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
would otherwise come within the meaning of the term "pensions and annui-

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

                                                           LBD14680-01-9

A. 9515                             2

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. Paragraph 3-b of subsection (c) of section 612 of the tax law, as
added  by chapter 961 of the laws of 1984, subparagraphs (i) and (ii) as
amended by chapter 28 of the  laws  of  1987,  is  amended  to  read  as
follows:
  (3-b)  (i)  Disability income included in federal gross income, to the
extent that such disability income would have been excluded from federal
gross income pursuant to the provisions of subsection (d) of section one
hundred five of the internal revenue code of nineteen hundred fifty-four
had such provisions continued in effect  for  taxable  years  commencing
after  December thirty-first, nineteen hundred eighty-three as they were
in effect immediately prior to the repeal of such subsection.   Notwith-
standing  the  foregoing, the sum of disability income excluded pursuant
to this paragraph, and pension and annuity income excluded  pursuant  to
paragraph  three-a  of this subsection, shall not exceed [twenty] THIRTY
thousand dollars.
  (ii) Notwithstanding subsection (f) of this section, if a husband  and
wife  determine  their  federal  income  tax  on  a joint return but are
required to determine  their  New  York  income  taxes  separately,  the
amounts  of  exclusion  allowed under subparagraph (i) of this paragraph
shall be determined in the same joint manner as such amounts would  have
been determined under the provisions of paragraph five of subsection (d)
of  section  one  hundred  five  of  the  internal  revenue code as such
provisions were in effect  immediately  prior  to  the  repeal  of  such
subsection,  but shall be attributed for New York income tax purposes to
the spouse who would have been required to report  any  such  amount  as
income  if  the  spouses had determined their federal income taxes sepa-
rately.
  (iii) Where a husband and wife file a joint state income  tax  return,
the  [twenty] THIRTY thousand dollar limitation provided in subparagraph
(i) of this paragraph shall be applied as if they were  filing  separate
state income tax returns.
  S  3.  This  act  shall take effect immediately and shall apply to all
taxable years commencing on or after January 1, 2010.