senate Bill S1661

2013-2014 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 Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 08, 2014 referred to investigations and government operations
Jan 09, 2013 referred to investigations and government operations

S1661 - Bill Details

Current Committee:
Law Section:
Tax Law
Laws Affected:
Amd ยง612, Tax L
Versions Introduced in 2011-2012 Legislative Session:
S6317

S1661 - Bill Texts

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

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BILL NUMBER:S1661

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

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 cur tax code but allow retirement age citizens collecting
these payments to be more fiscally solvent and improve their quality
of life.

PRIOR LEGISLATIVE HISTORY:
S. 6317 of 2011-12; referred to Investigations and Government Operations

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.

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

                                  1661

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04750-01-3

S. 1661                             2

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-
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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