Raises the threshold for estate tax under applicable internal revenue code provisions; increases to five million dollars over a period of five years.
Ayes (46): Addabbo, Alesi, Avella, Ball, Bonacic, Breslin, Carlucci, DeFrancisco, Diaz, Duane, Farley, Flanagan, Fuschillo, Gallivan, Golden, Griffo, Grisanti, Hannon, Johnson, Kennedy, Klein, Lanza, Larkin, LaValle, Libous, Little, Marcellino, Martins, Maziarz, McDonald, Nozzolio, O'Mara, Oppenheimer, Parker, Ranzenhofer, Ritchie, Robach, Saland, Sampson, Seward, Skelos, Smith, Storobin, Valesky, Young, Zeldin
Nays (14): Adams, Dilan, Gianaris, Hassell-Thomps, Krueger, Montgomery, Peralta, Perkins, Rivera, Savino, Serrano, Squadron, Stavisky, Stewart-Cousin
Excused (2): Espaillat, Huntley
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: New bill.
FISCAL IMPLICATIONS: $500M 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.
STATE OF NEW YORK ________________________________________________________________________ 6015--A IN SENATE (PREFILED) January 4, 2012 ___________Introduced by Sens. DeFRANCISCO, FLANAGAN, GALLIVAN, GOLDEN, MAZIARZ, RANZENHOFER, ZELDIN -- read twice and ordered printed, and when print- ed to be committed to the Committee on Investigations and Government Operations -- 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 2012; 2. TWO MILLION DOLLARS FOR THE TAXABLE YEAR 2012; 3. THREE MILLION DOLLARS FOR THE TAXABLE YEAR 2013; 4. FOUR MILLION DOLLARS FOR THE TAXABLE YEAR 2014; AND 5. FIVE MILLION DOLLARS FOR THE TAXABLE YEAR 2015 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. LBD13425-02-2