NY State Senate Bill 2017-S7820

Senate Bill S7820

2017-2018 Legislative Session

Relates to increasing credits against taxes imposed on the transfer of the New York estate by every deceased individual who at his or her death was a resident of New York state

download bill text pdf

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Feb 28, 2018	referred to investigations and government operations

2017-S7820 (ACTIVE) - Details

See Assembly Version of this Bill:: A9658
Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §952, Tax L
Versions Introduced in Other Legislative Sessions:: 2019-2020: A6765
2021-2022: A5181
2023-2024: A2668

2017-S7820 (ACTIVE) - Summary

Increases credits against taxes imposed on the transfer of the New York estate by every deceased individual who at his or her death was a resident of New York state by setting the basic exclusion amount to $11,200,000.

2017-S7820 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S7820

SPONSOR: MARCELLINO
 
TITLE OF BILL:  An act to amend the tax law, in relation to increasing
credits against taxes imposed on the transfer of the New York estate by
every deceased individual who at his or her death was a resident of New
York state

 
PURPOSE:

This legislation would raise New York State's Estate Tax exclusion and
eliminate the 5% Estate Tax exclusion limitation also known as the
"Estate Tax Cliff."

 
SUMMARY OF PROVISIONS:

Section 1 eliminates the 5% Estate Tax exclusion limitation. Under this
bill, a deceased individual's estate tax would take into account the
established Estate Tax exclusion credit without a 5% limitation. This
section also raises the Estate Tax exclusion credit. Starting on January
1, 2018, the exclusion credit would increase from $5.3 million to $11.2

million.

Section 2 of this act shall take effect immediately.

 
JUSTIFICATION:

New York's Estate Tax penalizes family owned businesses throughout the
state for being successful, which has caused a statewide exodus of many
of our brightest business minds and the capital they possess to other
states within the country. The Estate Tax taxes property that has
already been taxed and in some cases been subject to an Estate Tax when
inherited from a prior decedent.

Under current law, a decedent whose estate does not exceed 5% of the
exclusion amount is allowed to receive the exclusion credit equal to the
current exclusion. This exclusion exempts the portion of the estate to
the current year exempt amount. The remaining value of the estate that
is above the exclusion and within the 5% limitation is then taxed.
However, any estate that is minimally above this 5% exclusion would be
ineligible for the exclusion credit and their estate subject to the full
16% estate tax. This bill would eliminate this inequity and raise the
exclusion credit threshold.

Increasing the exclusion amount from $5.3 million to $11.2 million would
align NYS Tax Law with the federal tax law, which would reduce confusion
and streamline the process.

 
LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2017-S7820 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7820
 
                             I N  S E N A T E
 
                             February 28, 2018
                                ___________
 
 Introduced  by  Sen.  MARCELLINO  -- read twice and ordered printed, and
   when printed to be committed to the Committee  on  Investigations  and
   Government Operations
 
 AN  ACT  to amend the tax law, in relation to increasing credits against
   taxes imposed on the transfer of the New York estate by every deceased
   individual who at his or her death was a resident of New York state

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subsection (c) of section 952 of the tax law, as added by
 section 2 of part X of chapter 59 of the laws of  2014,  is  amended  to
 read as follows:
   (c)  Applicable  credit  amount. (1) A credit of the applicable credit
 amount shall be allowed against the  tax  imposed  by  this  section  as
 provided  in  this  subsection. In the case of a decedent whose New York
 taxable estate is less than or equal to the basic exclusion amount,  the
 applicable  credit  amount  shall be the amount of tax that would be due
 under subsection (b) of this section on such decedent's New York taxable
 estate. In the case of a decedent whose New York taxable estate  exceeds
 the  basic  exclusion amount [by an amount that is less than or equal to
 five percent of such amount], the applicable credit amount shall be  the
 amount of tax that would be due under subsection (b) of this section [if
 the amount on which the tax is to be computed were] equal to the MAXIMUM
 basic  exclusion amount [multiplied by one minus a fraction, the numera-
 tor of which is the decedent's New York taxable estate minus  the  basic
 exclusion  amount,  and  the denominator of which is five percent of the
 basic exclusion amount]. Provided, however, that the credit  allowed  by
 this  subsection  shall not exceed the tax imposed by this section[, and
 no credit shall be allowed to the estate of any decedent whose New  York
 taxable  estate  exceeds one hundred five percent of the basic exclusion
 amount].
   (2) (A) For purposes of this section, the basic exclusion amount shall
 be as follows:
 In the case of decedents dying on or after: The basic  exclusion  amount
 is:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD14270-01-8

 S. 7820                             2
 
 April 1, 2014 and before April 1, 2015            $ 2,062,500
 April 1, 2015 and before April 1, 2016            3,125,000
 April 1, 2016 and before April 1, 2017            4,187,500
 April 1, 2017 and before January 1, [2019] 2018   5,250,000
 JANUARY 1, 2018 AND BEFORE JANUARY 1, 2019        11,200,000
   (B)  In the case of any decedent dying in a calendar year beginning on
 or after January first,  two  thousand  nineteen,  the  basic  exclusion
 amount shall be equal to:
   (i)  [five  million  dollars]  ELEVEN  MILLION  TWO  HUNDRED  THOUSAND
 DOLLARS, multiplied by
   (ii) one plus  the  cost-of-living  adjustment,  which  shall  be  the
 percentage  by which the consumer price index for the preceding calendar
 year exceeds the consumer price index for  calendar  year  two  thousand
 ten.
   (C)  (i)  For purposes of this paragraph, "consumer price index" means
 the most recent consumer price index for all-urban  consumers  published
 by the United States department of labor.
   (ii)  For  purposes  of  clause (ii) of subparagraph (B) of this para-
 graph, the consumer price index for any calendar year shall be the aver-
 age of the consumer price index as of  the  close  of  the  twelve-month
 period ending on August thirty-first of such calendar year.
   (iii) If any amount adjusted under this paragraph is not a multiple of
 ten thousand dollars, such amount shall be rounded to the nearest multi-
 ple of ten thousand dollars.
   § 2. This act shall take effect immediately.

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