senate Bill S3035A

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:
A5293A
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:S3035A

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 threshold 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 residents. When
assets and residences leave the state New York loses population 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 threshold.

EFFECTIVE DATE:

Immediately.

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

                                 3035--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 29, 2013
                               ___________

Introduced  by  Sens. DeFRANCISCO, GALLIVAN, GOLDEN, GRISANTI, NOZZOLIO,
  RANZENHOFER -- read twice and ordered printed, and when printed to  be
  committed to the Committee on Investigations and Government Operations
  -- recommitted to the Committee on Investigations and Government Oper-
  ations  in  accordance  with  Senate  Rule  6,  sec.  8  --  committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

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 2014;
  2. TWO MILLION DOLLARS FOR THE TAXABLE YEAR 2014;
  3. THREE MILLION DOLLARS FOR THE TAXABLE YEAR 2015;
  4. FOUR MILLION DOLLARS FOR THE TAXABLE YEAR 2016; AND

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07808-02-4

S. 3035--A                          2

  5. FIVE MILLION DOLLARS FOR THE TAXABLE YEAR 2017 AND THEREAFTER.
  S 2. This act shall take effect immediately.

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