Relates to raising the amount of the New York state estate tax exemption from one million to five million dollars.
TITLE OF BILL: An act to amend the tax law, in relation to raising the amount of the New York state estate tax exemption from one million dollars to five million dollars
PURPOSE OR GENERAL IDEA OF BILL:
The purpose of the bill is increase the amount of estate tax exemption from $1 million to $5 million in order to conform with the current federal applicable exclusion.
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 of the bill amends subsection (a) of section 951 of the tax law by increasing the estate tax exemption to match the federal applicable exclusion amount of $5 million.
Section 2 of the bill sets forth an immediate effective date.
The New York State estate tax law only conforms to the federal estate tax laws that were enacted before 1998. They have not changed since then, especially not after the Economic Growth and Tax Relief Reconciliation Act of 2001 was enacted.
The current New York State Estate Tax penalizes family owned and closely-held businesses throughout the state, which has caused a state exodus of many of our brightest business minds and the capital they possess to other states within the country. This is the very capital necessary to create new technologies, new businesses, and new jobs.
This legislation would increase the estate tax threshold from one million to five million dollars (the current Federal Estate Tax threshold).
Increasing the threshold of the estate tax will encourage residents/small businesses, to remain living and doing business in New York.
PRIOR LEGISLATIVE HISTORY:
To Be Determined.
This act shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 6153 IN SENATE (PREFILED) January 8, 2014 ___________Introduced by Sen. AVELLA -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Govern- ment Operations AN ACT to amend the tax law, in relation to raising the amount of the New York state estate tax exemption from one million dollars to five million dollars 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
[one]FIVE million dollars. S 2. This act shall take effect immediately and shall apply to all estates submitted to probate after this act shall have become a law.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD03167-01-3