Senate Bill S1095

2017-2018 Legislative Session

Relates to lump sum distributions used for the payment of post-secondary education loans

download bill text pdf

Sponsored By

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

Do you support this bill?

Please enter your contact information

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.
Actions

2017-S1095 (ACTIVE) - Details

Current Committee:
Senate Investigations And Government Operations
Law Section:
Tax Law
Laws Affected:
Amd §§603 & 612, Tax L
Versions Introduced in 2015-2016 Legislative Session:
S4827

2017-S1095 (ACTIVE) - Summary

Relates to lump sum distributions used for the payment of post-secondary education loans; provides an exemption from the imposition of a separate tax.

2017-S1095 (ACTIVE) - Sponsor Memo

2017-S1095 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1095
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                              January 6, 2017
                                ___________
 
 Introduced  by  Sen. VALESKY -- 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 lump sum distributions  used
   for the payment of post-secondary education loans

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 603 of the tax law  is  amended  by  adding  a  new
 subsection (c) to read as follows:
   (C)  EXEMPTION.  LUMP  SUM DISTRIBUTIONS, AS TAXED UNDER THIS SECTION,
 USED FOR PAYMENTS TO AN INSTITUTION  RECEIVING  ANY  SCHEDULED  PERIODIC
 PAYMENTS  FROM  A  BORROWER  PURSUANT TO THE TERMS OF ANY POST-SECONDARY
 EDUCATION LOAN, AND MAKING THE PAYMENTS OF PRINCIPAL  AND  INTEREST  AND
 OTHER  AMOUNTS WITH RESPECT TO THE AMOUNTS RECEIVED FROM THE BORROWER AS
 MAY BE REQUIRED PURSUANT TO THE TERMS OF  THE  POST-SECONDARY  EDUCATION
 LOAN  OR  OF  THE  CONTRACT GOVERNING THE SERVICING; OR, DURING A PERIOD
 WHEN PAYMENT ON A POST-SECONDARY EDUCATION LOAN IS DEFERRED, MAINTAINING
 ACCOUNT RECORDS FOR THE LOAN AND COMMUNICATING WITH THE BORROWER REGARD-
 ING THE LOAN, ON BEHALF OF THE LOAN'S HOLDER SHALL NOT BE SUBJECT TO THE
 SEPARATE TAX IMPOSED IN SUBSECTION (A) OF THIS SECTION.
   § 2. Subsection (c) of section 612 of the tax law is amended by adding
 a new paragraph 3-d to read as follows:
   (3-D) PENSIONS AND ANNUITIES RECEIVED BY AN INDIVIDUAL OF ANY AGE, NOT
 OTHERWISE EXCLUDED PURSUANT TO PARAGRAPH THREE OF  THIS  SUBSECTION,  TO
 THE  EXTENT  INCLUDIBLE  IN GROSS INCOME FOR FEDERAL TAX PURPOSES, WHICH
 ARISE (I) FROM AN EMPLOYER-EMPLOYEE RELATIONSHIP OR (II)  FROM  CONTRIB-
 UTIONS  TO A RETIREMENT PLAN WHICH ARE DEDUCTIBLE FOR FEDERAL INCOME TAX
 PURPOSES WHICH ARE USED FOR PAYMENTS TO  AN  INSTITUTION  RECEIVING  ANY
 SCHEDULED PERIODIC PAYMENTS FROM A BORROWER PURSUANT TO THE TERMS OF ANY
 POST-SECONDARY  EDUCATION LOAN, AND MAKING THE PAYMENTS OF PRINCIPAL AND
 INTEREST AND OTHER AMOUNTS WITH RESPECT TO THE AMOUNTS RECEIVED FROM THE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.