Senate Bill S2162

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2162
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 19, 2023
                                ___________
 
 Introduced  by  Sens.  RIVERA, BRESLIN, BRISPORT, BROUK, CLEARE, COMRIE,
   COONEY, GIANARIS, GOUNARDES, HOYLMAN-SIGAL, JACKSON, LIU, MAY,  MYRIE,
   PARKER,  RAMOS, SALAZAR, SANDERS, SEPULVEDA, SERRANO -- read twice and
   ordered printed, and when printed to be committed to the Committee  on
   Budget and Revenue

 AN  ACT  to amend the tax law, in relation to imposing an additional tax
   on income attributable to long-term capital gain
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The  tax  law is amended by adding a new section 601-b to
 read as follows:
   § 601-B. ADDITIONAL TAX ON LOW-TAXED INVESTMENT INCOME. (A)  THERE  IS
 HEREBY IMPOSED, IN ADDITION TO THE TAX IMPOSED UNDER SECTION SIX HUNDRED
 ONE OF THIS ARTICLE, AN ADDITIONAL TAX ON LOW-TAXED INVESTMENT INCOME.
   (B)  AS  USED  IN THIS SECTION, LOW-TAXED INVESTMENT INCOME SHALL MEAN
 THE AMOUNT OF AN INDIVIDUAL'S NEW YORK TAXABLE  INCOME  ATTRIBUTABLE  TO
 LONG-TERM  CAPITAL  GAIN,  DIVIDENDS,  OR ANY OTHER TYPE OF INCOME TAXED
 UNDER THE RATES OF SECTION 1(H) OF THE INTERNAL  REVENUE  CODE,  OR  ANY
 SUCCESSOR PROVISION THERETO.
   (C) THE ADDITIONAL TAX IMPOSED UNDER THIS SECTION SHALL BE EQUAL TO:
   (1)  IN  THE  CASE OF A RESIDENT MARRIED INDIVIDUAL WHO MAKES A SINGLE
 RETURN JOINTLY WITH THE INDIVIDUAL'S  SPOUSE  UNDER  SUBSECTION  (B)  OF
 SECTION  SIX HUNDRED FIFTY-ONE OF THIS ARTICLE, AND IN THE CASE OF EVERY
 RESIDENT SURVIVING SPOUSE:
   (A) IF NEW YORK TAXABLE INCOME IS OVER FIVE HUNDRED THOUSAND  DOLLARS,
 SEVEN  AND  ONE-HALF  PERCENT  OF NEW YORK TAXABLE INCOME FROM LONG-TERM
 CAPITAL GAIN, WHICH TAX SHALL BE PHASED IN PROPORTIONALLY OVER THE FIRST
 FIFTY THOUSAND DOLLARS OF NEW YORK TAXABLE  INCOME  IN  EXCESS  OF  FIVE
 HUNDRED THOUSAND DOLLARS; AND
   (B)  IF  NEW  YORK TAXABLE INCOME IS OVER ONE MILLION DOLLARS, FIFTEEN
 PERCENT OF NEW YORK TAXABLE INCOME FROM LONG-TERM  CAPITAL  GAIN,  WHICH
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02435-02-3
              

 S. 2162                             2
 
 TAX  SHALL  BE PHASED IN PROPORTIONALLY, BEGINNING WITH A PHASE-IN FRAC-
 TION OF FIFTY PERCENT, OVER THE FIRST ONE HUNDRED  THOUSAND  DOLLARS  OF
 NEW YORK TAXABLE INCOME IN EXCESS OF ONE MILLION DOLLARS; AND
   (2) IN THE CASE OF A RESIDENT HEAD OF HOUSEHOLD:
   (A)  IF NEW YORK TAXABLE INCOME IS OVER FIVE HUNDRED THOUSAND DOLLARS,
 SEVEN AND ONE-HALF PERCENT OF NEW YORK  TAXABLE  INCOME  FROM  LONG-TERM
 CAPITAL GAIN, WHICH TAX SHALL BE PHASED IN PROPORTIONALLY OVER THE FIRST
 FIFTY  THOUSAND  DOLLARS  OF  NEW  YORK TAXABLE INCOME IN EXCESS OF FIVE
 HUNDRED THOUSAND DOLLARS; AND
   (B) IF NEW YORK TAXABLE INCOME IS OVER ONE  MILLION  DOLLARS,  FIFTEEN
 PERCENT  OF  NEW  YORK TAXABLE INCOME FROM LONG-TERM CAPITAL GAIN, WHICH
 TAX SHALL BE PHASED IN PROPORTIONALLY, BEGINNING WITH A  PHASE-IN  FRAC-
 TION  OF  FIFTY  PERCENT, OVER THE FIRST ONE HUNDRED THOUSAND DOLLARS OF
 NEW YORK TAXABLE INCOME IN EXCESS OF ONE MILLION DOLLARS; AND
   (3) IN THE CASE OF A RESIDENTIAL INDIVIDUAL WHO IS NOT A MARRIED INDI-
 VIDUAL OR WHO MAKES A SINGLE RETURN  JOINTLY  WITH  THEIR  SPOUSE  UNDER
 SUBSECTION  (B)  OF  SECTION  SIX HUNDRED FIFTY-ONE OF THIS ARTICLE OR A
 RESIDENT HEAD OF HOUSEHOLD OR A RESIDENT SURVIVING SPOUSE,  AND  IN  THE
 CASE OF A RESIDENT ESTATE AND TRUST:
   (A)  IF NEW YORK TAXABLE INCOME IS OVER FOUR HUNDRED THOUSAND DOLLARS,
 SEVEN AND ONE-HALF PERCENT OF NEW YORK  TAXABLE  INCOME  FROM  LONG-TERM
 CAPITAL GAIN, WHICH TAX SHALL BE PHASED IN PROPORTIONALLY OVER THE FIRST
 FIFTY  THOUSAND  DOLLARS  OF  NEW  YORK TAXABLE INCOME IN EXCESS OF FOUR
 HUNDRED THOUSAND DOLLARS; AND
   (B) IF NEW YORK TAXABLE INCOME IS OVER EIGHT HUNDRED THOUSAND DOLLARS,
 FIFTEEN PERCENT OF NEW YORK TAXABLE INCOME FROM LONG-TERM CAPITAL  GAIN,
 WHICH  TAX  SHALL BE PHASED IN PROPORTIONALLY, BEGINNING WITH A PHASE-IN
 FRACTION OF FIFTY PERCENT, OVER THE FIRST ONE HUNDRED  THOUSAND  DOLLARS
 OF NEW YORK TAXABLE INCOME IN EXCESS OF EIGHT HUNDRED THOUSAND DOLLARS.
   (D)  THIS SECTION SHALL BE ADMINISTERED, AND PENALTIES IMPOSED, IN THE
 SAME MANNER AS THE TAX IMPOSED UNDER SECTION SIX  HUNDRED  ONE  OF  THIS
 ARTICLE.
   (E)  THE  DEPARTMENT  MAY  ADOPT RULES AND REGULATIONS AS NECESSARY TO
 IMPLEMENT THE PROVISIONS OF THIS SECTION.
   § 2. This act shall take effect immediately.