Bill > S05850

This bill modifies the definition of income for the Enhanced STAR (School Tax Relief) exemption by specifically including distributions from a Thrift Savings Plan (TSP), which is a retirement savings and investment plan for federal employees and members of the uniformed services, in the calculation of income. Currently, the law reduces adjusted gross income by distributions from individual retirement accounts and individual retirement annuities, and this bill adds TSP distributions to that list, but only for plans established prior to January 1, 1984. The bill also updates language regarding income reporting requirements, replacing gendered language like "his or her" with more neutral terms like "the individual's". The changes apply to both the Real Property Tax Law and the Tax Law, ensuring that TSP distributions are treated similarly to other retirement account distributions when determining income eligibility for the Enhanced STAR property tax exemption. The bill will take effect on the first day of January following its enactment.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/S5850