S T A T E O F N E W Y O R K
________________________________________________________________________
4310--A
2013-2014 Regular Sessions
I N S E N A T E
March 20, 2013
___________
Introduced by Sen. MARCELLINO -- read twice and ordered printed, and
when printed 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 making a reduced rate of
interest applicable to certain additions to tax resulting from an
executor's discovery after the date for filing an estate tax return of
certain assets belonging to the decedent held by the state comptroller
as abandoned property; and to amend chapter 389 of the laws of 1997
amending the tax law and other laws relating to the estate and gift
tax, and chapter 190 of the laws of 1990 amending the tax law relating
to certain taxes, fees, and other impositions, in relation to rates of
interest for certain estates
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 991 to read
as follows:
S 991. INTEREST ACCRUAL RELIEF FOR ADDITIONAL TAX ATTRIBUTABLE TO
NEWLY-DISCOVERED ABANDONED PROPERTY. NOTWITHSTANDING ANY OTHER PROVISION
OF LAW, IN COMPUTING THE INTEREST DUE ON AN ADDITION TO TAX OWED BY AN
ESTATE ATTRIBUTABLE TO THE INCLUSION IN THE ESTATE'S FEDERAL GROSS
ESTATE OF AN ASSET HELD BY THE COMPTROLLER AS ABANDONED PROPERTY, THE
COMMISSIONER SHALL APPLY THE INTEREST RATE USED BY THE COMPTROLLER,
PURSUANT TO SECTION FOURTEEN HUNDRED FIVE OF THE ABANDONED PROPERTY LAW,
IN COMPUTING THE INTEREST DUE ON SUCH ABANDONED PROPERTY WHILE IN THE
COMPTROLLER'S POSSESSION (INCLUDING A ZERO RATE IF THE COMPTROLLER DID
NOT PAY INTEREST ON SUCH PROPERTY) IF, AS OF THE DATE PRESCRIBED FOR THE
FILING OF A RETURN REQUIRED BY THIS ARTICLE, INCLUDING ANY EXTENSIONS
GRANTED FOR FILING, INFORMATION PERTAINING TO THE ASSET HAD NOT YET
APPEARED IN THE PUBLIC RECORDS OF ABANDONED PROPERTY REQUIRED TO BE
MAINTAINED BY THE COMPTROLLER PURSUANT TO SECTION FOURTEEN HUNDRED ONE
OF THE ABANDONED PROPERTY LAW.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09097-03-3
S. 4310--A 2
S 2. Section 35 of part A of chapter 389 of the laws of 1997 amending
the tax law and other laws relating to the estate and gift tax, is
amended to read as follows:
S 35. All provisions of law repealed or deleted by sections one
through thirty-four of this act, and of the regulations adopted there-
under, in respect to the assessment, payment, determination, collection
and refund of taxes or other impositions imposed thereunder, the filing
of returns and preservation of records for the purposes of such taxes or
impositions, the secrecy of returns, and the disposition of revenues
shall continue in effect with respect to all such taxes or impositions
accrued up to the effective date of this section[.]; PROVIDED, HOWEVER,
THAT, IN COMPUTING THE INTEREST DUE ON AN ADDITION TO TAX OWED BY AN
ESTATE ATTRIBUTABLE TO THE INCLUSION IN THE ESTATE'S GROSS ESTATE OF AN
ASSET HELD BY THE STATE COMPTROLLER AS ABANDONED PROPERTY, THE COMMIS-
SIONER OF TAXATION AND FINANCE SHALL APPLY THE INTEREST RATE USED BY THE
COMPTROLLER, PURSUANT TO SECTION 1405 OF THE ABANDONED PROPERTY LAW, IN
COMPUTING THE INTEREST DUE ON SUCH ABANDONED PROPERTY WHILE IN THE COMP-
TROLLER'S POSSESSION (INCLUDING A ZERO RATE IF THE COMPTROLLER DID NOT
PAY INTEREST ON SUCH PROPERTY) IF, AS OF THE DATE PRESCRIBED FOR THE
FILING OF A RETURN, INCLUDING ANY EXTENSIONS GRANTED FOR FILING, INFOR-
MATION PERTAINING TO THE ASSET HAD NOT YET APPEARED IN THE PUBLIC
RECORDS OF ABANDONED PROPERTY REQUIRED TO BE MAINTAINED BY THE STATE
COMPTROLLER PURSUANT TO SECTION 1401 OF THE ABANDONED PROPERTY LAW.
S 3. Paragraph 1 of subdivision (i) of section 385 of chapter 190 of
the laws of 1990 amending the tax law relating to certain taxes, fees,
and other impositions, as amended by section 71 of part A of chapter 56
of the laws of 1998, is amended to read as follows:
(1) All provisions of articles 10-A, 10-B, 10-C and section 962 of the
tax law (as repealed by section one hundred eight of this act) in
respect to the imposition, rates, appraisal and valuation of estates,
filing of tax, assessment, determination, payment, collection and refund
of the taxes imposed or administered thereunder, the filing of reports
and returns, the final federal determinations, imposition of interest
and penalties, the jurisdiction of surrogates' courts, provisions relat-
ing to appeals and the disposition of revenues and fees shall continue
in effect with respect to all such taxes accrued on or before the effec-
tive date of this act, except that (A) section 249-u of the tax law
shall not be applicable after the effective date of this act, (B) with
respect to any of the provisions of article 10-C thereof relating to an
appraiser, the appraiser shall be the commissioner of taxation and
finance or his designee on and after such date, and (C) the fee for a
release of lien imposed by subdivision c of section 249-bb, which was
applicable to estates of decedents subject to tax under article 26 of
the tax law by reason of section 962 thereof, shall not be applicable;
PROVIDED THAT, WITH REGARD TO AN ADDITION TO TAX OWED BY AN ESTATE
ATTRIBUTABLE TO THE INCLUSION IN THE ESTATE'S FEDERAL GROSS ESTATE OF AN
ASSET HELD BY THE STATE COMPTROLLER AS ABANDONED PROPERTY, NO INTEREST
SHALL ACCRUE FOR ANY PERIOD OF TIME IN WHICH THE STATE COMPTROLLER DID
NOT PAY INTEREST ON THE ASSET IF, AS OF THE DATE PRESCRIBED FOR THE
FILING OF A RETURN, INCLUDING ANY EXTENSIONS GRANTED FOR FILING, INFOR-
MATION PERTAINING TO THE ASSET HAD NOT YET APPEARED IN THE PUBLIC
RECORDS OF ABANDONED PROPERTY REQUIRED TO BE MAINTAINED BY THE STATE
COMPTROLLER PURSUANT TO SECTION 1401 OF THE ABANDONED PROPERTY LAW;
S 4. This act shall take effect immediately and shall apply to estates
of decedents dying on or after June 1, 1944, provided that no refunds or
credit shall be granted as a result of any provision of this act.