Exempts proceeds from service award programs for volunteer firefighters and ambulance workers from personal income taxes.
Ayes (62): Adams, Addabbo, Avella, Ball, Bonacic, Boyle, Breslin, Carlucci, DeFrancisco, Diaz, Dilan, Espaillat, Farley, Felder, Flanagan, Fuschillo, Gallivan, Gianaris, Gipson, Golden, Griffo, Grisanti, Hannon, Hassell-Thomps, Hoylman, Kennedy, Klein, Krueger, Lanza, Larkin, Latimer, LaValle, Libous, Little, Marcellino, Marchione, Martins, Maziarz, Montgomery, Nozzolio, O'Brien, O'Mara, Parker, Peralta, Perkins, Ranzenhofer, Ritchie, Rivera, Robach, Sampson, Sanders, Savino, Serrano, Seward, Skelos, Smith, Stavisky, Stewart-Cousin, Tkaczyk, Valesky, Young, Zeldin
Excused (1): Squadron
TITLE OF BILL: An act to amend the tax law, in relation to exempting the proceeds from service award programs for volunteer firefighters and ambulance workers from personal income taxes
Render length of service award benefits for volunteer firefighters and volunteer ambulance workers exempt from NYS income taxes.
SUMMARY OF SPECIFIC PROVISIONS:
Adds a new paragraph, 39, to subsection (c) of section 612 of the Tax law to render length of service awards authorized under Articles eleven-A, eleven AA, eleven AAA and eleven AAAA of the General Municipal Law exempt from New York State income taxes.
A Length of Service Award Program (often referred to as LOSAP) is a valuable tool utilized by many fire companies and ambulance corps to recruit and retain volunteers. In essence, a LOSAP is a pension or annuity that volunteers with a certain amount of service can draw upon attaining a certain age. The plans differ throughout the state, but the earliest age that a volunteer can collect is 55.
Although the amounts are considerably lower, LOSAP benefits are no different than pensions that state and municipal workers receive upon retirement. Like these employees, volunteer firefighters and ambulance workers serve governmental entities (i.e.; fire districts, towns, villages, etc.) Yet, unlike state and municipal employees, their LOSAP benefits are not tax deductible_ This bill seeks to correct this inequity and is consistent with the NYS Department of Taxation and Finance position on this issue. It is the Department's position that service award proceeds are not taxable in certain circumstances and as the law stands now, does not properly recognize. The importance of this legislation is particularly acute today, by reason of the difficulties that volunteer fire companies and ambulance corps have in attracting and retaining volunteers. Since LOSAP programs are administered at the local level, there are no financial implications to the State.
2011-2012: S.4727 2009-2010: A.4450/S.5420 2007-2008: A.4895-B/S.2026-B 2005-2006: A.957-A/S.1908-A 2003-2004: A.2592/S.4109 2001-2002: A.8737/S.4841 1999-2000: A.11007/S.7642
This act shall take effect immediately and apply to taxable years beginning on and after January 1, 2014.
STATE OF NEW YORK ________________________________________________________________________ 4379 2013-2014 Regular Sessions IN SENATE March 25, 2013 ___________Introduced by Sen. BOYLE -- 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 exempting the proceeds from service award programs for volunteer firefighters and ambulance work- ers from personal income taxes THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subsection (c) of section 612 of the tax law is amended by adding a new paragraph 39 to read as follows: (39) THE AMOUNT OF ANY AWARD PAID TO A VOLUNTEER FIREFIGHTER OR VOLUN- TEER AMBULANCE WORKER FROM A LENGTH OF SERVICE DEFINED CONTRIBUTION PLAN OR DEFINED BENEFIT PLAN AS PROVIDED FOR IN ARTICLES ELEVEN-A, ELEVEN-AA, ELEVEN-AAA AND ELEVEN-AAAA OF THE GENERAL MUNICIPAL LAW, TO THE EXTENT THAT SUCH AWARD IS INCLUDABLE IN GROSS INCOME FOR FEDERAL INCOME TAX PURPOSES; PROVIDED, HOWEVER, THAT SUCH AWARD IS NOT DISTRIBUTED IN THE FORM OF A LUMP SUM. S 2. This act shall take effect immediately and shall apply to taxable years beginning on and after January 1, 2014.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD10031-01-3