S T A T E   O F   N E W   Y O R K
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                                  6503

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                             March 21, 2011
                               ___________

Introduced  by  M. of A. KOLB, MOLINARO, McDONOUGH, FINCH -- Multi-Spon-
  sored by -- M. of A.  BARCLAY, DUPREY, JORDAN, SAYWARD, THIELE,  WEIS-
  ENBERG -- read once and referred to the Committee on Ways and Means

AN ACT to amend the tax law, in relation to making the first one hundred
  thousand dollars of an individuals' private pension non-taxable

  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]  ONE  HUNDRED  thousand  dollars,  which  are periodic payments
attributable to personal services performed by such individual prior  to
his retirement from employment, which arise (i) from an employer-employ-
ee  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
individual  who  has attained the age of fifty-nine and one-half from an
individual retirement account or an individual  retirement  annuity,  as
defined  in section four hundred eight of the internal revenue code, and
distributions 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.  Nevertheless,  the] 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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05411-01-1
              

A. 6503                             2

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 annuities" 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.