senate Bill S3035

Amended

Raises the threshold for estate tax under applicable internal revenue code provisions

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 29 / Jan / 2013
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 30 / Apr / 2013
    • REPORTED AND COMMITTED TO FINANCE
  • 04 / Jun / 2013
    • 1ST REPORT CAL.998
  • 05 / Jun / 2013
    • 2ND REPORT CAL.
  • 10 / Jun / 2013
    • ADVANCED TO THIRD READING
  • 20 / Jun / 2013
    • PASSED SENATE
  • 20 / Jun / 2013
    • DELIVERED TO ASSEMBLY
  • 21 / Jun / 2013
    • REFERRED TO WAYS AND MEANS
  • 08 / Jan / 2014
    • DIED IN ASSEMBLY
  • 08 / Jan / 2014
    • RETURNED TO SENATE
  • 08 / Jan / 2014
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 10 / Jan / 2014
    • AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 10 / Jan / 2014
    • PRINT NUMBER 3035A

Summary

Raises the threshold for estate tax under applicable internal revenue code provisions; increases to five million dollars over a period of five years.

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Bill Details

See Assembly Version of this Bill:
A5293
Versions:
S3035
S3035A
Legislative Cycle:
2013-2014
Current Committee:
Senate Investigations And Government Operations
Law Section:
Tax Law
Laws Affected:
Amd ยง951, Tax L
Versions Introduced in 2011-2012 Legislative Cycle:
S6015A, A8681A

Sponsor Memo

BILL NUMBER:S3035 REVISED 2/7/13

TITLE OF BILL: An act to amend the tax law, in relation to raising the
threshold for estate tax under applicable internal revenue code
provisions

PURPOSE: The purpose of this bill is to increase the estate tax thresh-
old over a period of four years beginning with $1 million estates.

SUMMARY OF PROVISIONS:

Section 1: amends Subsection (a) of section 951 of the tax law by
section 1 of part T of chapter 57 of the laws of 2010.

Section 2: Establishes the effective date.

JUSTIFICATION: The New York State estate tax creates a disincentive for
those with estates $1 million or over to remain New York State resi-
dents. When assets and residences leave the state New York loses popu-
lation and all of the tax revenue from such estates and incomes. Some
studies have demonstrated that states with lower or no estate taxes have
benefited from increased numbers of new residents compared to states
with high estate taxes. Changing the threshold for estate taxes will
encourage residents to remain in New York and continue living and doing
business in New York State.

LEGISLATIVE HISTORY: S.6015A/A8681A of 2011-2012

FISCAL IMPLICATIONS: $5M when fully phased in, however, this would
likely be offset by those individuals who might otherwise establish an
out of state domicile as a result of the current treshold.

EFFECTIVE DATE: Immediately.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  3035

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 29, 2013
                               ___________

Introduced by Sens. DeFRANCISCO, GALLIVAN, RANZENHOFER -- read twice and
  ordered  printed, and when printed to be committed to the Committee on
  Investigations and Government Operations

AN ACT to amend the tax law, in relation to raising  the  threshold  for
  estate tax under applicable internal revenue code provisions

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subsection (a) of section 951 of the tax law, as amended by
section 1 of part T of chapter 57 of the laws of  2010,  is  amended  to
read as follows:
  (a) Dates. For purposes of this article, any reference to the internal
revenue code means the United States Internal Revenue Code of 1986, with
all amendments enacted on or before July twenty-second, nineteen hundred
ninety-eight,  and, unless specifically provided otherwise in this arti-
cle, any reference to December thirty-first, nineteen  hundred  seventy-
six  or  January  first, nineteen hundred seventy-seven contained in the
provisions of such code which are applicable to the determination of the
tax imposed by this article shall be read as a reference to June thirti-
eth, nineteen hundred seventy-eight  or  July  first,  nineteen  hundred
seventy-eight,  respectively. Notwithstanding the foregoing, the unified
credit against the estate tax provided in section two  thousand  ten  of
the  internal  revenue  code shall, for purposes of this article, be the
amount allowable as if the federal applicable exclusion amount were:
  1. one million dollars FOR TAXABLE YEARS PRIOR TO 2013;
  2. TWO MILLION DOLLARS FOR THE TAXABLE YEAR 2013;
  3. THREE MILLION DOLLARS FOR THE TAXABLE YEAR 2014;
  4. FOUR MILLION DOLLARS FOR THE TAXABLE YEAR 2015; AND
  5. FIVE MILLION DOLLARS FOR THE TAXABLE YEAR 2016 AND THEREAFTER.
  S 2. This act shall take effect immediately.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07808-01-3

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