NY State Senate Bill S3401B

Archive: Last Bill Status - In Senate Committee Budget And Revenue Committee

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

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Actions

view actions (11)

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Feb 13, 2020	print number 3401b
Feb 13, 2020	amend and recommit to budget and revenue
Jan 08, 2020	referred to budget and revenue
Jun 20, 2019	committed to rules
May 29, 2019	advanced to third reading
May 22, 2019	2nd report cal.
May 21, 2019	1st report cal.856
May 16, 2019	print number 3401a
May 16, 2019	amend and recommit to finance
May 07, 2019	reported and committed to finance
Feb 06, 2019	referred to budget and revenue

Votes

view votes

May 21, 2019 - Finance committee Vote

S3401A

committee

Aye

Nay

Aye with Reservations

Absent

Excused

Abstained

May 7, 2019 - committee Vote

S3401

committee

Aye

Nay

Aye with Reservations

Absent

Excused

Abstained

show committee vote details

Committee Vote: May 7, 2019

aye (3)

nay (2)

aye wr (2)

Bill Amendments

Original

B (Active)

Original

B (Active)

Co-Sponsors

S3401 - Details

See Assembly Version of this Bill:: A10443
Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Amd §208, Tax L; amd §11-652, NYC Ad Cd
Versions Introduced in Other Legislative Sessions:: 2021-2022: S1195, A5701
2023-2024: A1727

S3401 - Summary

Relates to investment income and capital gains on investments deferred or excluded under 26 U.S.C. section 1400-z-2.

S3401 - Sponsor Memo

 
BILL NUMBER: S3401

SPONSOR: GIANARIS
 
TITLE OF BILL:  An act to amend the tax law and the administrative
code of the city of New York, in relation to investment income

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 amends paragraph (a) of subdivision 6 of section 208 of the
tax law to include capital gains deferred or excluded under 26 U.S.C.
Section 1400z-2

Section 2 amends paragraph (a) of subdivision 5 of section 11-652 of the
administrative code of the city of New York to include capital gains
deferred or excluded under 26 U.S.C. Section 1400z-2

 
JUSTIFICATION:

The federal tax overhaul passed in 2017 included a provision aimed at
incentivizing investment in economically distressed areas. These areas,
"qualified opportunity zones" were designated by states in 2018. Inves-

tors who create opportunity funds to invest in these census tracts are
able to defer large capital gains on their federal taxes.

Though a laudable goal, the vague standards for states to designate
opportunity zones has allowed Empire State Development to designate many
areas with booming, over-developed real estate markets as opportunity
zones. These include New York City census tracts in Long Island City,
Astoria, East Village, and Harlem. Where in many places the program can
be used to incentivize investment where it would not otherwise exist, it
is simply being used as another giveaway to wealthy investors.

Investors are set to benefit on their federal taxes for years to come.
However, since much of New York's tax code is linked to the federal tax
code, the law would currently allow for huge state tax benefits as well.
In order to prevent another giveaway to the wealthy, New York must
de-link this section of federal law from our tax code.

 
PRIOR LEGISLATIVE HISTORY:

New Bill

 
FISCAL IMPLICATIONS:

The bill will prevent a loss in tax revenue to the state.

 
EFFECTIVE DATE:
Immediately and shall apply to taxable years beginning on and after
January 1, 2018.

S3401 - Bill Text download pdf


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

                                  3401

                       2019-2020 Regular Sessions

                            I N  S E N A T E

                            February 6, 2019
                               ___________

Introduced  by  Sens. GIANARIS, RAMOS -- read twice and ordered printed,
  and when printed to be committed to the Committee on Budget and Reven-
  ue

AN ACT to amend the tax law and the administrative code of the  city  of
  New York, in relation to investment income

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

  Section 1. Paragraph (a) of subdivision 6 of section 208  of  the  tax
law,  as  amended  by  section  5 of part T of chapter 59 of the laws of
2015, is amended to read as follows:
  (a) (i) The term "investment income" means income,  including  capital
gains  in  excess  of  capital  losses,  from investment capital, to the
extent included in  computing  entire  net  income,  less,  (A)  in  the
discretion  of  the  commissioner,  any interest deductions allowable in
computing entire net income which are directly or  indirectly  attribut-
able  to  investment capital or investment income, (B) ANY CAPITAL GAINS
DEFERRED OR EXCLUDED UNDER 26 U.S.C. §1400-Z-2, provided, however,  that
in no case shall investment income exceed entire net income. (ii) If the
amount  of interest deductions subtracted under subparagraph (i) of this
paragraph exceeds investment income, the  excess  of  such  amount  over
investment  income must be added back to entire net income. (iii) If the
taxpayer's investment income determined without regard to  the  interest
deductions subtracted under subparagraph (i) of this paragraph comprises
more  than eight percent of the taxpayer's entire net income, investment
income determined without regard  to  such  interest  deductions  cannot
exceed eight percent of the taxpayer's entire net income.
  §  2. Paragraph (a) of subdivision 5 of section 11-652 of the adminis-
trative code of the city of New York, as added by section 1 of part D of
chapter 60 of the laws of 2015, is amended to read as follows:
  (a) (i) The term "investment income" means income,  including  capital
gains  in  excess  of  capital  losses,  from investment capital, to the

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

                                                           LBD09591-01-9

S. 3401                             2

extent included in  computing  entire  net  income,  less,  (A)  in  the
discretion  of  the  commissioner  of  finance,  any interest deductions
allowable in computing entire net income which are directly or indirect-
ly  attributable  to  investment  capital  or investment income, (B) ANY
CAPITAL GAINS DEFERRED OR EXCLUDED UNDER 26 U.S.C  §1400-Z-2,  provided,
however,  that  in  no  case  shall  investment income exceed entire net
income.
  (ii) If the amount of interest deductions  subtracted  under  subpara-
graph  (i)  of  this  paragraph exceeds investment income, the excess of
such amount over investment income must be  added  back  to  entire  net
income.
  (iii) If the taxpayer's investment income determined without regard to
the  interest deductions subtracted under subparagraph (i) of this para-
graph comprises more than eight percent of  the  taxpayer's  entire  net
income,  investment  income  determined  without regard to such interest
deductions cannot exceed eight percent  of  the  taxpayer's  entire  net
income.
  § 3. This act shall take effect immediately and shall apply to taxable
years beginning on and after January 1, 2018.

Co-Sponsors

S3401A - Details

See Assembly Version of this Bill:: A10443
Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Amd §208, Tax L; amd §11-652, NYC Ad Cd
Versions Introduced in Other Legislative Sessions:: 2021-2022: S1195, A5701
2023-2024: A1727

S3401A - Summary

Relates to investment income and capital gains on investments deferred or excluded under 26 U.S.C. section 1400-z-2.

S3401A - Sponsor Memo

 
BILL NUMBER: S3401A

SPONSOR: GIANARIS
 
TITLE OF BILL:  An act to amend the tax law and the administrative
code of the city of New York, in relation to investment income

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 amends paragraph (a) of subdivision 6 of section 208 of the
tax law to include capital gains on investments located in a census
tract contiguous with a low income community deferred or excluded under
26 U.S.C. Section 1400z-2

Section 2 amends paragraph (a) of subdivision 5 of section 11-652 of the
administrative code of the city of New York to include capital gains on
investments located in a census tract contiguous with a low income
community deferred or excluded under 26 U.S.C. Section 1400z-2

 
JUSTIFICATION:

The federal tax overhaul passed in 2017 included a provision aimed at

incentivizing investment in economically distressed areas. These areas,
"qualified opportunity zones" were designated by states in 2018. Inves-
tors who create opportunity funds to invest in these census tracts are
able to defer large capital gains on their federal taxes.

Though a laudable goal, the vague standards for states to designate
opportunity zones has allowed Empire State Development to designate many
areas with booming, over-developed real estate markets as opportunity
zones. These include New York City census tracts in Long Island City,
Astoria, East Village, and Harlem. Where in many places the program can
be used to incentivize investment where it would not otherwise exist, it
is simply being used as another giveaway to wealthy investors.

Investors are set to benefit on their federal taxes for years to come.
However, since much of New York's tax code is linked to the federal tax
code, the law would currently allow for huge state tax benefits as well.
In order to prevent another giveaway to the wealthy, New York must
de-link this section of federal law from our tax code.

 
PRIOR LEGISLATIVE HISTORY:

New Bill

 
FISCAL IMPLICATIONS:

The bill will prevent a loss in tax revenue to the state.

 
EFFECTIVE DATE:
Immediately and shall apply to taxable years beginning on and after
January 1, 2019.

S3401A - Bill Text download pdf


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

                                 3401--A

                       2019-2020 Regular Sessions

                            I N  S E N A T E

                            February 6, 2019
                               ___________

Introduced  by  Sens. GIANARIS, RAMOS, KRUEGER -- read twice and ordered
  printed, and when printed to be committed to the Committee  on  Budget
  and Revenue -- reported favorably from said committee and committed to
  the  Committee  on  Finance  --  committee  discharged,  bill amended,
  ordered reprinted as amended and recommitted to said committee

AN ACT to amend the tax law and the administrative code of the  city  of
  New York, in relation to investment income

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

  Section 1. Paragraph (a) of subdivision 6 of section 208  of  the  tax
law,  as  amended  by  section  5 of part T of chapter 59 of the laws of
2015, is amended to read as follows:
  (a) (i) The term "investment income" means income,  including  capital
gains  in  excess  of  capital  losses,  from investment capital, to the
extent included in  computing  entire  net  income,  less,  (A)  in  the
discretion  of  the  commissioner,  any interest deductions allowable in
computing entire net income which are directly or  indirectly  attribut-
able  to  investment capital or investment income, (B) ANY CAPITAL GAINS
ON INVESTMENTS LOCATED IN A TRACT CONTIGUOUS WITH A LOW-INCOME COMMUNITY
AS DEFINED IN 26 U.S.C.  §1400-Z-1-E,  DEFERRED  OR  EXCLUDED  UNDER  26
U.S.C.  §1400-Z-2,  provided,  however, that in no case shall investment
income exceed  entire  net  income.  (ii)  If  the  amount  of  interest
deductions  subtracted  under subparagraph (i) of this paragraph exceeds
investment income, the excess of such amount over investment income must
be added back to entire net income. (iii) If the  taxpayer's  investment
income  determined  without regard to the interest deductions subtracted
under subparagraph (i) of  this  paragraph  comprises  more  than  eight
percent  of  the  taxpayer's entire net income, investment income deter-
mined without regard to such interest  deductions  cannot  exceed  eight
percent of the taxpayer's entire net income.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09591-02-9

S. 3401--A                          2

  §  2. Paragraph (a) of subdivision 5 of section 11-652 of the adminis-
trative code of the city of New York, as added by section 1 of part D of
chapter 60 of the laws of 2015, is amended to read as follows:
  (a)  (i)  The term "investment income" means income, including capital
gains in excess of capital  losses,  from  investment  capital,  to  the
extent  included  in  computing  entire  net  income,  less,  (A) in the
discretion of the  commissioner  of  finance,  any  interest  deductions
allowable in computing entire net income which are directly or indirect-
ly  attributable  to  investment  capital  or investment income, (B) ANY
CAPITAL GAINS ON INVESTMENTS LOCATED IN A TRACT CONTIGUOUS WITH  A  LOW-
INCOME  COMMUNITY  AS  DEFINED  IN  26  U.S.C.  §1400-Z-1-E, DEFERRED OR
EXCLUDED UNDER 26 U.S.C §1400-Z-2, provided, however, that  in  no  case
shall investment income exceed entire net income.
  (ii)  If  the  amount of interest deductions subtracted under subpara-
graph (i) of this paragraph exceeds investment  income,  the  excess  of
such  amount  over  investment  income  must be added back to entire net
income.
  (iii) If the taxpayer's investment income determined without regard to
the interest deductions subtracted under subparagraph (i) of this  para-
graph  comprises  more  than  eight percent of the taxpayer's entire net
income, investment income determined without  regard  to  such  interest
deductions  cannot  exceed  eight  percent  of the taxpayer's entire net
income.
  § 3. This act shall take effect immediately and shall apply to taxable
years beginning on and after January 1, 2019.

Co-Sponsors

view additional co-sponsors

S3401B (ACTIVE) - Details

See Assembly Version of this Bill:: A10443
Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Amd §208, Tax L; amd §11-652, NYC Ad Cd
Versions Introduced in Other Legislative Sessions:: 2021-2022: S1195, A5701
2023-2024: A1727

S3401B (ACTIVE) - Summary

Relates to investment income and capital gains on investments deferred or excluded under 26 U.S.C. section 1400-z-2.

S3401B (ACTIVE) - Sponsor Memo

 
BILL NUMBER: S3401B

SPONSOR: GIANARIS
 
TITLE OF BILL:

An act to amend the tax law and the administrative code of the city of
New York, in relation to investment income

 
PURPOSE:

 
SUMMARY OF PROVISIONS:

Section 1 amends paragraph (a) of subdivision 6 of section 208 of the
tax law to include capital gains on investments deferred or excluded
under 26 U.S.C. Section 1400z-2

Section 2 amends paragraph (a) of subdivision 5 of section 11-652 of the
administrative code of the city of New York to include capital gains on
investments deferred or excluded under 26 U.S.C. Section 1400z-2

EXISTING LAW:

 
JUSTIFICATION:

The federal tax overhaul passed in 2017 included a provision aimed at
incentivizing investment in economically distressed areas. These areas,
"qualified opportunity zones" were designated by states in 2018. Inves-
tors who create opportunity funds to invest in these census tracts are
able to defer large capital gains on their federal taxes.

Though a laudable goal, the vague standards for states to designate
opportunity zones has allowed Empire State Development to designate many
areas with booming, over-developed real estate markets as opportunity
zones. These include New York City census tracts in Long Island City,
Astoria, East Village, and Harlem. Where in many places the program can
be used to incentivize investment where it would not otherwise exist, it
is simply being used as another giveaway to wealthy investors.  Inves-
tors are set to benefit on their federal taxes for years to come.
However, since much of New York's tax code is linked to the federal tax
code, the law would currently allow for huge state tax benefits as well.
In order to prevent another giveaway to the wealthy, New York must
de-link this section of federal law from our tax code.

 
LEGISLATIVE HISTORY:

New Bill

 
FISCAL IMPLICATIONS:

The bill will prevent a loss in tax revenue to the state.

 
LOCAL FISCAL IMPLICATIONS:

 
EFFECTIVE DATE:
Immediately and shall apply to taxable years beginning on and after
January 1, 2020.

S3401B (ACTIVE) - Bill Text download pdf


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

                                 3401--B

                       2019-2020 Regular Sessions

                            I N  S E N A T E

                            February 6, 2019
                               ___________

Introduced  by  Sens. GIANARIS, RAMOS, KRUEGER -- read twice and ordered
  printed, and when printed to be committed to the Committee  on  Budget
  and Revenue -- reported favorably from said committee and committed to
  the  Committee  on  Finance  --  committee  discharged,  bill amended,
  ordered reprinted as amended and  recommitted  to  said  committee  --
  recommitted  to the Committee on Budget and Revenue 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 and the administrative code of the city of
  New York, in relation to investment income

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

  Section  1.  This act shall be known and may be cited as the "opportu-
nity zone tax break elimination act".
  § 2. Paragraph (a) of subdivision 6 of section 208 of the tax law,  as
amended  by  section  5  of part T of chapter 59 of the laws of 2015, is
amended to read as follows:
  (a) (i) The term "investment income" means income,  including  capital
gains  in  excess  of  capital  losses,  from investment capital, to the
extent included in  computing  entire  net  income,  less,  (A)  in  the
discretion  of  the  commissioner,  any interest deductions allowable in
computing entire net income which are directly or  indirectly  attribut-
able  to  investment capital or investment income, (B) ANY CAPITAL GAINS
DEFERRED OR EXCLUDED UNDER 26 U.S.C. §1400-Z-2, provided, however,  that
in no case shall investment income exceed entire net income. (ii) If the
amount  of interest deductions subtracted under subparagraph (i) of this
paragraph exceeds investment income, the  excess  of  such  amount  over
investment  income must be added back to entire net income. (iii) If the
taxpayer's investment income determined without regard to  the  interest
deductions subtracted under subparagraph (i) of this paragraph comprises
more  than eight percent of the taxpayer's entire net income, investment

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

                                                           LBD09591-05-0

S. 3401--B                          2

income determined without regard  to  such  interest  deductions  cannot
exceed eight percent of the taxpayer's entire net income.
  §  3. Paragraph (a) of subdivision 5 of section 11-652 of the adminis-
trative code of the city of New York, as added by section 1 of part D of
chapter 60 of the laws of 2015, is amended to read as follows:
  (a) (i) The term "investment income" means income,  including  capital
gains  in  excess  of  capital  losses,  from investment capital, to the
extent included in  computing  entire  net  income,  less,  (A)  in  the
discretion  of  the  commissioner  of  finance,  any interest deductions
allowable in computing entire net income which are directly or indirect-
ly attributable to investment capital  or  investment  income,  (B)  ANY
CAPITAL  GAINS  DEFERRED OR EXCLUDED UNDER 26 U.S.C §1400-Z-2, provided,
however, that in no case  shall  investment  income  exceed  entire  net
income.
  (ii)  If  the  amount of interest deductions subtracted under subpara-
graph (i) of this paragraph exceeds investment  income,  the  excess  of
such  amount  over  investment  income  must be added back to entire net
income.
  (iii) If the taxpayer's investment income determined without regard to
the interest deductions subtracted under subparagraph (i) of this  para-
graph  comprises  more  than  eight percent of the taxpayer's entire net
income, investment income determined without  regard  to  such  interest
deductions  cannot  exceed  eight  percent  of the taxpayer's entire net
income.
  § 4. This act shall take effect immediately and shall apply to taxable
years beginning on and after January 1, 2020.

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The New York State Senate

senate Bill S3401B

Sponsored By

Archive: Last Bill Status - In Senate Committee Budget And Revenue Committee

Your Voice

Actions

Votes

May 21, 2019 - Finance committee Vote

Committee Vote: May 21, 2019

May 7, 2019 - committee Vote

Committee Vote: May 7, 2019

Bill Amendments

Co-Sponsors

S3401 - Details

S3401 - Summary

S3401 - Sponsor Memo

S3401 - Bill Text download pdf

Co-Sponsors

S3401A - Details

S3401A - Summary

S3401A - Sponsor Memo

S3401A - Bill Text download pdf

Co-Sponsors

S3401B (ACTIVE) - Details

S3401B (ACTIVE) - Summary

S3401B (ACTIVE) - Sponsor Memo

S3401B (ACTIVE) - Bill Text download pdf

Comments

senate Bill S3401B

Share this bill

Sponsored By

Archive: Last Bill Status - In Senate Committee Budget And Revenue Committee

Your Voice

Actions

Votes

May 21, 2019 - Finance committee Vote

Committee Vote: May 21, 2019

May 7, 2019 - committee Vote

Committee Vote: May 7, 2019

Bill Amendments

Co-Sponsors

S3401 - Details

S3401 - Summary

S3401 - Sponsor Memo

S3401 - Bill Text download pdf

Co-Sponsors

S3401A - Details

S3401A - Summary

S3401A - Sponsor Memo

S3401A - Bill Text download pdf

Co-Sponsors

S3401B (ACTIVE) - Details

S3401B (ACTIVE) - Summary

S3401B (ACTIVE) - Sponsor Memo

S3401B (ACTIVE) - Bill Text download pdf

Comments