- Associated Press - Saturday, June 4, 2016

ALBANY, N.Y. (AP) - New York’s Senate has passed legislation to increase the exemption of private pensions from state income taxes.

Seniors have been able to claim tax exemptions for the first $20,000 of pension or retirement income for 35 years. The bill would raise that to $25,000 for the 2017 tax year, rising in increments to $40,000 in 2020.

Sen. Hugh Farley, a Schenectady County Republican, says the exemption hasn’t kept up with the cost of living.

Senate Republicans say the adjustments will help more than 377,000 seniors save hundreds of dollars and address the inequity of private pensions compared to government pensions that are tax-exempt under the state constitution.

A companion bill with 17 sponsors is pending in the Assembly, where the legislation died last year after the Senate passed it.

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