Bill Text: NY A07973 | 2023-2024 | General Assembly | Introduced

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Bill Title: Includes retirement plans in the exemption for pensions and annuities for certain persons; increases such exemption to one hundred thousand dollars as adjusted by the consumer price index annually.

Spectrum: Partisan Bill (Republican 20-0)

Status: (Introduced) 2024-01-03 - referred to ways and means [A07973 Detail]

Download: New_York-2023-A07973-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          7973

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                     August 18, 2023
                                       ___________

        Introduced by M. of A. SLATER -- read once and referred to the Committee
          on Ways and Means

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

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  Paragraph 3-a of subsection (c) of section 612 of the tax
     2  law, as amended by section 3 of part I of chapter  59  of  the  laws  of
     3  2015, is amended to read as follows:
     4    (3-a) Pensions [and], annuities and other retirement plans received by
     5  an  individual  who has attained the age of fifty-nine and one-half, not
     6  otherwise excluded pursuant to paragraph three of  this  subsection,  to
     7  the  extent  includible in gross income for federal income tax purposes,
     8  but not in excess of [twenty] forty thousand  dollars  for  any  taxable
     9  year  beginning on or after January  first,  two  thousand  twenty-five,
    10  sixty thousand dollars  for  any   taxable year beginning  on  or  after
    11  January  first, two thousand twenty-six, eighty thousand dollars for any
    12  taxable  year  beginning  on  or  after   January   first, two  thousand
    13  twenty-seven,  one  hundred thousand dollars for any taxable year begin-
    14  ning on or after January first, two thousand twenty-eight, multiplied by
    15  one plus the percentage by  which  the  consumer  price  index  for  the
    16  preceding calendar year exceeds the consumer price index for the taxable
    17  year  beginning  on  or  after January first, two thousand twenty-eight,
    18  which are periodic payments attributable to personal services  performed
    19  by  such individual prior to his retirement from employment, which arise
    20  (i) from an employer-employee relationship or (ii) from contributions to
    21  a retirement plan which are deductible for federal income tax  purposes.
    22  However,  the  term "pensions and annuities" shall also include distrib-
    23  utions received by an individual who has attained the age of  fifty-nine
    24  and  one-half  from  an  individual  retirement account or an individual

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11929-02-3
        A. 7973                             2

     1  retirement annuity, as defined in section  four  hundred  eight  of  the
     2  internal  revenue  code, and distributions received by an individual who
     3  has attained the age of fifty-nine and one-half from self-employed indi-
     4  vidual  and  owner-employee retirement plans which qualify under section
     5  four hundred one of the  internal  revenue  code,  whether  or  not  the
     6  payments  are  periodic  in nature. Nevertheless, the term "pensions and
     7  annuities" shall not include any lump sum distribution,  as  defined  in
     8  subparagraph  (D)  of  paragraph  four of subsection (e) of section four
     9  hundred two of the internal revenue code and  taxed  under  section  six
    10  hundred  three  of  this  article. Where a husband and wife file a joint
    11  state personal income tax return, the modification provided for in  this
    12  paragraph  shall  be  computed  as  if  they  were filing separate state
    13  personal income tax returns. Where a payment would otherwise come within
    14  the meaning of the term "pensions and annuities" as set  forth  in  this
    15  paragraph,  except that such individual is deceased, such payment shall,
    16  nevertheless, be treated as a pension or annuity for  purposes  of  this
    17  paragraph  if such payment is received by such individual's beneficiary.
    18  For purposes of this paragraph, "consumer price index" means the average
    19  of the consumer price index as of the close of the  twelve-month  period
    20  ending on August thirty-first of such taxable year for all-urban consum-
    21  ers published by the United States department of labor.
    22    § 2. This act shall take effect immediately.