Bill Text: NY S03943 | 2019-2020 | General Assembly | Introduced


Bill Title: Relates to personal income taxation of pensions and annuities; increases amount excluded from taxation.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2019-02-21 - REFERRED TO BUDGET AND REVENUE [S03943 Detail]

Download: New_York-2019-S03943-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          3943
                               2019-2020 Regular Sessions
                    IN SENATE
                                    February 21, 2019
                                       ___________
        Introduced by Sen. GOUNARDES -- read twice and ordered printed, and when
          printed to be committed to the Committee on Budget and Revenue
        AN  ACT to amend the tax law, in relation to personal income taxation of
          pensions and annuities
          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  received  by  an  individual  who has
     5  attained the age of fifty-nine  and  one-half,  not  otherwise  excluded
     6  pursuant to paragraph three of this subsection, to the extent includible
     7  in  gross  income  for federal income tax purposes, but not in excess of
     8  [twenty] thirty-five  thousand  dollars,  which  are  periodic  payments
     9  attributable  to personal services performed by such individual prior to
    10  his retirement from employment, which arise (i) from an employer-employ-
    11  ee relationship or (ii) from contributions to a  retirement  plan  which
    12  are  deductible  for  federal  income  tax  purposes.  However, the term
    13  "pensions and annuities" shall also include distributions received by an
    14  individual who has attained the age of fifty-nine and one-half  from  an
    15  individual  retirement  account  or an individual retirement annuity, as
    16  defined in section four hundred eight of the internal revenue code,  and
    17  distributions  received  by  an  individual  who has attained the age of
    18  fifty-nine and one-half from self-employed individual and owner-employee
    19  retirement plans which qualify under section four  hundred  one  of  the
    20  internal  revenue  code,  whether  or  not  the payments are periodic in
    21  nature. Nevertheless,  the  term  "pensions  and  annuities"  shall  not
    22  include  any  lump  sum  distribution, as defined in subparagraph (D) of
    23  paragraph four of subsection (e) of section  four  hundred  two  of  the
    24  internal  revenue code and taxed under section six hundred three of this
    25  article. Where a husband and wife file a joint state personal income tax
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09932-01-9

        S. 3943                             2
     1  return, the  modification  provided  for  in  this  paragraph  shall  be
     2  computed  as  if  they  were  filing  separate state personal income tax
     3  returns. Where a payment would otherwise come within the meaning of  the
     4  term  "pensions  and  annuities"  as set forth in this paragraph, except
     5  that such individual is deceased, such payment shall,  nevertheless,  be
     6  treated  as  a pension or annuity for purposes of this paragraph if such
     7  payment is received by such individual's beneficiary.
     8    § 2. This act shall take effect January 1, 2020  and  shall  apply  to
     9  taxable years beginning on and after such date.
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