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Senate Bill S10585

2025-2026 Legislative Session

Assesses a separate tax on distributions from designated settlement funds

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Current Bill Status - In Senate Committee Budget And Revenue Committee

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2025-S10585 (ACTIVE) - Details

Current Committee:
Senate Budget And Revenue
Law Section:
Tax Law
Laws Affected:
Add §603-a, Tax L

2025-S10585 (ACTIVE) - Summary

Assesses a 100% tax on distributions from the federal anti-weaponization fund; provides that such tax shall not be reduced pursuant to any deduction, exemption or credit.

2025-S10585 (ACTIVE) - Bill Text download pdf 

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10585
 
                             I N  S E N A T E
 
                               May 27, 2026
                                ___________
 
 Introduced  by Sen. GIANARIS -- 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 assessing a separate tax  on
   distributions from designated federal settlement funds
 
   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  603-a  to
 read as follows:
   § 603-A. SEPARATE TAX ON DISTRIBUTIONS FROM DESIGNATED FEDERAL SETTLE-
 MENT  FUNDS. (A) IN LIEU OF ANY OTHER TAX IMPOSED BY SECTION SIX HUNDRED
 ONE OF THIS PART, THERE IS HEREBY IMPOSED FOR EACH TAXABLE YEAR A  SEPA-
 RATE  TAX  ON DISTRIBUTIONS FROM A DESIGNATED FUND RECEIVED BY ANY RESI-
 DENT INDIVIDUAL, ESTATE OR TRUST DURING SUCH TAXABLE  YEAR.    SUCH  TAX
 SHALL  BE  EQUAL  TO  ONE  HUNDRED  PERCENT  OF THE GROSS AMOUNT OF SUCH
 DISTRIBUTIONS AND SHALL  NOT  BE  REDUCED  PURSUANT  TO  ANY  DEDUCTION,
 EXEMPTION, OR CREDIT OTHERWISE AUTHORIZED PURSUANT TO LAW.
   (B) FOR PURPOSES OF THIS SECTION:
   (I) "DESIGNATED FUND" MEANS THE FEDERAL ANTI-WEAPONIZATION FUND ESTAB-
 LISHED PURSUANT TO THE SETTLEMENT AGREEMENT IN TRUMP V. INTERNAL REVENUE
 SERVICE, NO. 1:26-CV-20609 (S.D. FLA.).
   (II)  "DISTRIBUTION"  MEANS  ANY  PAYMENT,  DISTRIBUTION,  OR MONETARY
 TRANSFER RECEIVED, EITHER DIRECTLY OR INDIRECTLY, BY A RESIDENT INDIVID-
 UAL, ESTATE OR TRUST.
   § 2. This act shall take effect immediately.
 
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD15964-01-6

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