S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    697
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 9, 2019
                                ___________
 
 Introduced  by  Sen.  FELDER -- 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 section 3 of part I of chapter  59  of  the  laws  of
 2015, 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] TWENTY-FIVE THOUSAND DOLLARS FOR ANY TAXABLE YEAR BEGINNING  ON
 OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-ONE, THIRTY THOUSAND DOLLARS
 FOR  ANY  TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND
 TWENTY-TWO, THIRTY-FIVE THOUSAND DOLLARS FOR ANY TAXABLE YEAR  BEGINNING
 ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-THREE, AND FORTY thousand
 dollars  IN  EACH SUBSEQUENT YEAR, 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD01881-01-9

 S. 697                              2
 
 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 (D) 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 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.
   § 2. This act shall take effect immediately.