Exempts the amount of any service award paid to any volunteer firefighter or ambulance worker from personal income tax.
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
PURPOSE OF THE BILL: To correct an inequity with comparable benefits by providing that length of service award benefits for volunteer firefighters and volunteer ambulance workers be exempt from taxation.
SUMMARY OF SPECIFIC PROVISIONS: Article 22 of the tax law regarding personal income is amended by adding new paragraph 3-d to subsection (c) of section 612.
JUSTIFICATION: Service award programs were created, a means of aiding in the recruitment and especially the retention of volunteer firefighters and volunteer ambulance workers.
There is no question that the retention of volunteers has been aided by the service awards provided by the enactment of the length of service program law. Unfortunately, the benefits in both the individual and to fire safety (through retention) are now being called into question as it becomes known that income that will be derived will be treated as personal income for taxation purposes.
This bill seeks to correct what is essentially an inequity, both with respect to the spirit in which the law was created and as compared to certain other benefits generally available, such as disability income, social security benefits, and pensions and annuities.
PRIOR LEGISLATIVE HISTORY: 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
FISCAL IMPLICATIONS: None.
EFFECTIVE DATE: This act shall take effect immediately and apply to taxable years beginning on and after January 1, 2014.
STATE OF NEW YORK ________________________________________________________________________ 540 2013-2014 Regular Sessions IN SENATE (PREFILED) January 9, 2013 ___________Introduced by Sen. KENNEDY -- 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 3-d to read as follows: (3-D) THE AMOUNT OF ANY SERVICE AWARD PAID TO ANY VOLUNTEER FIREFIGHT- ER AND THE AMOUNT OF ANY SERVICE AWARD PAID TO ANY VOLUNTEER AMBULANCE WORKER FROM THE LENGTH OF SERVICE DEFINED CONTRIBUTION PLANS AND DEFINED BENEFIT PLANS APPLICABLE TO SUCH WORKERS, AS PROVIDED FOR IN ARTICLES ELEVEN-A, ELEVEN-AA, ELEVEN-AAA, AND ELEVEN-AAAA OF THE GENERAL MUNICI- PAL LAW; PROVIDED, HOWEVER THAT THE EXCLUSION PROVIDED IN THIS PARAGRAPH SHALL NOT APPLY TO A SERVICE AWARD THAT IS DISTRIBUTED IN THE FORM OF A LUMP SUM OR THAT IS DISTRIBUTED TO A TAXPAYER THAT HAS NOT ATTAINED THE AGE OF FIFTY-NINE AND ONE-HALF. 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. LBD02427-01-3