S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4643
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 4, 2021
                                ___________
 
 Introduced  by M. of A. SOLAGES -- read once and referred to the Commit-
   tee on Ways and Means
 
 AN ACT to amend the tax law, in relation to creating a separate  tax  on
   inheritance income, creating a separate tax on gift income, the compu-
   tation of the estate tax, and creating a gift tax

   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 two new sections  604  and
 604-a to read as follows:
   §  604.  SEPARATE TAX ON INHERITANCE INCOME.  (A) DEFINITIONS. FOR THE
 PURPOSES OF THIS SECTION, THE FOLLOWING TERMS HAVE THE  FOLLOWING  MEAN-
 INGS:
   (1)  EXCEPT  AS  OTHERWISE PROVIDED IN SUBSECTION (C) OF THIS SECTION,
 "INHERITANCE INCOME" MEANS ANY INCOME EXCLUDED FOR FEDERAL TAX  PURPOSES
 FROM FEDERAL ADJUSTED GROSS INCOME PURSUANT TO SUBSECTION (A) OF SECTION
 ONE  HUNDRED  TWO OF THE INTERNAL REVENUE CODE THAT IS RECEIVED FROM ANY
 ESTATE, REGARDLESS OF THE RESIDENCE OF  THE  DECEDENT  OF  SUCH  ESTATE,
 AFTER THE FEDERAL ESTATE TAX HAS BEEN PAID ON SUCH INCOME.
   (2)  "FAMILY  MEMBER"  MEANS  "MEMBER  OF  THE FAMILY" AS SUCH TERM IS
 DEFINED IN PARAGRAPH (2) OF SUBSECTION (E) OF SECTION TWO THOUSAND THIR-
 TY-TWO-A OF THE INTERNAL REVENUE CODE.
   (B) IMPOSITION OF SEPARATE TAX. (1)  IN  ADDITION  TO  ANY  OTHER  TAX
 IMPOSED BY THIS ARTICLE, THERE IS HEREBY IMPOSED FOR EACH TAXABLE YEAR A
 SEPARATE TAX ON THE TOTAL AMOUNT OF INHERITANCE INCOME RECEIVED FROM ANY
 ESTATE  OF A DECEDENT DURING SUCH TAXABLE YEAR BY ANY INDIVIDUAL WHO WAS
 A NEW YORK RESIDENT ON THE DATE OF DEATH OF SUCH DECEDENT.
   (2) THE TAX IMPOSED BY THIS SUBSECTION SHALL BE COMPUTED  AS  PROVIDED
 IN  SECTION  SIX  HUNDRED  TWENTY-FOUR-A OF THIS ARTICLE WITH RESPECT TO
 RESIDENTS AND SECTION SIX HUNDRED THIRTY-SEVEN-A OF  THIS  ARTICLE  WITH
 RESPECT TO NONRESIDENTS AND PART-YEAR RESIDENTS.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08928-01-1
              

 A. 4643                             2
 
   (C)  EXCLUSIONS  FROM  INHERITANCE  INCOME. (1) EDUCATIONAL OR MEDICAL
 EXPENSES. A QUALIFIED TRANSFER, AS SUCH TERM IS DEFINED IN PARAGRAPH (2)
 OF SUBSECTION (E) OF SECTION TWO THOUSAND  FIVE  HUNDRED  THREE  OF  THE
 INTERNAL  REVENUE  CODE,  SHALL NOT BE CONSIDERED INHERITANCE INCOME FOR
 PURPOSES OF THIS SECTION.
   (2)  SPOUSAL  TRANSFERS. TRANSFERS OF PROPERTY FROM A SPOUSE SHALL NOT
 BE CONSIDERED INHERITANCE INCOME FOR PURPOSES OF THIS SECTION.
   (3) RETIREMENT ACCOUNTS. TRANSFERS OF PROPERTY CONSISTING OF PENSIONS,
 HEALTH SAVINGS ACCOUNTS, OR RETIREMENT ACCOUNTS ESTABLISHED PURSUANT  TO
 SECTION  FOUR  HUNDRED ONE, FOUR HUNDRED THREE, FOUR HUNDRED EIGHT, FOUR
 HUNDRED EIGHT-A, OR FOUR HUNDRED FIFTY-SEVEN  OF  THE  INTERNAL  REVENUE
 CODE  SHALL  NOT  BE  CONSIDERED INHERITANCE INCOME FOR PURPOSES OF THIS
 SECTION.
   (4) CERTAIN RESIDENCES. AN INDIVIDUAL SUBJECT TO THE  TAX  IMPOSED  BY
 THIS  SECTION  MAY  CLAIM  NOT MORE THAN ONE OF THE FOLLOWING EXCLUSIONS
 FROM INHERITANCE INCOME, AND MAY NOT CLAIM  EITHER  SUCH  EXCLUSION  FOR
 MORE THAN ONE TRANSFER OF REAL PROPERTY:
   (A)  PRIMARY  RESIDENCES. FOR REAL PROPERTY TRANSFERRED TO A RESIDENT,
 NONRESIDENT OR PART-YEAR RESIDENT INDIVIDUAL  THAT  (I)  SERVES  AS  THE
 PRIMARY RESIDENCE OF THE TRANSFEROR OF SUCH PROPERTY OR OF THE RESIDENT,
 NONRESIDENT,  OR  PART-YEAR  RESIDENT TRANSFEREE FOR THE TEN CONSECUTIVE
 YEARS PRECEDING SUCH TRANSFER OR (II) SERVES AS THE PRIMARY RESIDENCE OF
 SUCH TRANSFEREE FOR THE FIVE CONSECUTIVE YEARS FOLLOWING SUCH  TRANSFER,
 UP  TO  ONE MILLION SEVEN HUNDRED FIFTY THOUSAND DOLLARS OF THE VALUE OF
 SUCH PROPERTY SHALL NOT BE CONSIDERED INHERITANCE INCOME FOR PURPOSES OF
 THIS SECTION.
   (B) RESIDENTIAL HOMES PURCHASED WITH A FEDERAL HOUSING  ADMINISTRATION
 INSURED  MORTGAGE.  FOR  A  RESIDENTIAL  HOME TRANSFERRED TO A RESIDENT,
 NONRESIDENT OR PART-YEAR RESIDENT INDIVIDUAL THAT WAS PURCHASED  WITH  A
 FEDERAL  HOUSING  ADMINISTRATION  INSURED  MORTGAGE, UP TO SEVEN HUNDRED
 FIFTY THOUSAND DOLLARS OF THE VALUE OF SUCH HOME SHALL NOT BE CONSIDERED
 INHERITANCE INCOME FOR PURPOSES OF THIS SECTION.
   (5) FAMILY FARMS. A TRANSFER TO A RESIDENT, NONRESIDENT  OR  PART-YEAR
 RESIDENT INDIVIDUAL FROM THE ESTATE OF A DECEDENT WHO IS A FAMILY MEMBER
 OF  SUCH  INDIVIDUAL OF FARMLAND AND FARM EQUIPMENT SHALL NOT BE CONSID-
 ERED INHERITANCE INCOME FOR PURPOSES OF THIS SECTION PROVIDED  THAT  THE
 TOTAL  VALUE OF INHERITANCE INCOME (INCLUDING THE VALUE OF SUCH FARMLAND
 AND FARM EQUIPMENT) RECEIVED BY SUCH INDIVIDUAL FROM  SUCH  ESTATE  DOES
 NOT  EXCEED FIVE MILLION DOLLARS, AND PROVIDED FURTHER THAT THE VALUE OF
 SUCH FARMLAND AND EQUIPMENT CONSTITUTES OVER FIFTY PERCENT OF THE  TOTAL
 VALUE OF SUCH INHERITANCE INCOME RECEIVED FROM SUCH ESTATE.
   (D)  DEFERRALS.  (1) PRIMARY RESIDENCE LIQUIDITY DEFERRAL. A RESIDENT,
 NONRESIDENT OR PART-YEAR RESIDENT  INDIVIDUAL  WHO  IN  A  TAXABLE  YEAR
 RECEIVES FROM A SINGLE ESTATE INHERITANCE INCOME TOTALING LESS THAN FIVE
 MILLION DOLLARS, OVER FIFTY PERCENT OF THE TOTAL VALUE OF WHICH CONSISTS
 OF  REAL PROPERTY THAT WILL SERVE AS THE PRIMARY RESIDENCE OF SUCH INDI-
 VIDUAL, MAY ELECT TO DEFER PAYMENT OF THE TAX IMPOSED  BY  THIS  SECTION
 UNTIL  THE  TIME  AT  WHICH  SUCH INDIVIDUAL SELLS SUCH REAL PROPERTY OR
 CEASES USING SUCH PROPERTY AS A PRIMARY RESIDENCE.
   (2) FAMILY-OWNED BUSINESS LIQUIDITY DEFERRAL. (A) A RESIDENT, NONRESI-
 DENT OR PART-YEAR RESIDENT INDIVIDUAL WHO IN  A  TAXABLE  YEAR  RECEIVES
 FROM  THE ESTATE OF A DECEDENT WHO IS A FAMILY MEMBER OF SUCH INDIVIDUAL
 INHERITANCE INCOME TOTALING LESS THAN FIVE MILLION DOLLARS,  OVER  FIFTY
 PERCENT  OF  THE  TOTAL VALUE OF WHICH CONSISTS OF EQUITY INTERESTS IN A
 FAMILY-OWNED BUSINESS, MAY ELECT TO DEFER PAYMENT OF THE TAX IMPOSED  BY
 THIS  SECTION  UNTIL  THE TIME AT WHICH SUCH INDIVIDUAL SELLS SUCH BUSI-

 A. 4643                             3

 NESS, PROVIDED THAT DURING THE TIME OF DEFERRAL INTEREST WILL ACCRUE  ON
 THE AMOUNT OF SUCH TAX AT A RATE EQUAL TO THE FEDERAL SHORT-TERM RATE AS
 PROVIDED  UNDER PARAGRAPH THREE OF SUBSECTION (J) OF SECTION SIX HUNDRED
 NINETY-SEVEN OF THIS ARTICLE.
   (B)  FOR THE PURPOSES OF THIS PARAGRAPH, "FAMILY-OWNED BUSINESS" MEANS
 A BUSINESS FOR WHICH, AT THE TIME OWNERSHIP OF SUCH BUSINESS  IS  TRANS-
 FERRED  TO A RESIDENT, NONRESIDENT OR PART-YEAR RESIDENT INDIVIDUAL, THE
 TRANSFEROR OF SUCH BUSINESS OR FAMILY MEMBERS OF SUCH TRANSFEROR COLLEC-
 TIVELY HAVE RETAINED MAJORITY OWNERSHIP AND HAVE MATERIALLY PARTICIPATED
 IN THE OPERATION OF SUCH BUSINESS FOR THE TEN CONSECUTIVE YEARS  PRECED-
 ING SUCH TRANSFER.
   §  604-A.  SEPARATE  TAX  ON  GIFT  INCOME.  (A)  DEFINITIONS. FOR THE
 PURPOSES OF THIS SECTION, THE FOLLOWING TERMS HAVE THE  FOLLOWING  MEAN-
 INGS:
   (1)  "GIFT  INCOME" MEANS THE VALUE OF ANY TAXABLE GIFTS, AS SUCH TERM
 IS DEFINED IN SECTION ONE THOUSAND OF THIS CHAPTER, RECEIVED BY AN INDI-
 VIDUAL WHO IS A NEW YORK RESIDENT AT THE TIME OF RECEIVING SUCH GIFTS.
   (2) "FAMILY MEMBER" MEANS "MEMBER OF  THE  FAMILY"  AS  SUCH  TERM  IS
 DEFINED IN PARAGRAPH (2) OF SUBSECTION (E) OF SECTION TWO THOUSAND THIR-
 TY-TWO-A OF THE INTERNAL REVENUE CODE.
   (B)  IMPOSITION  OF  SEPARATE  TAX.  (1)  IN ADDITION TO ANY OTHER TAX
 IMPOSED BY THIS ARTICLE, THERE IS HEREBY IMPOSED FOR EACH TAXABLE YEAR A
 SEPARATE TAX ON GIFT INCOME RECEIVED DURING SUCH  TAXABLE  YEAR  BY  ANY
 RESIDENT OR PART-YEAR RESIDENT INDIVIDUAL.
   (2)  THE  TAX IMPOSED BY THIS SECTION SHALL BE COMPUTED AS PROVIDED IN
 SECTION SIX HUNDRED TWENTY-FOUR-B OF THIS ARTICLE WITH RESPECT TO  RESI-
 DENTS  AND  SECTION  SIX  HUNDRED  THIRTY-SEVEN-B  OF  THIS ARTICLE WITH
 RESPECT TO PART-YEAR RESIDENTS.
   (C) EXCLUSIONS FROM GIFT INCOME. (1) EDUCATIONAL OR MEDICAL  EXPENSES.
 A  QUALIFIED  TRANSFER,  AS  SUCH  TERM  IS  DEFINED IN PARAGRAPH (2) OF
 SUBSECTION (E) OF SECTION TWO THOUSAND THREE  OF  THE  INTERNAL  REVENUE
 CODE, SHALL NOT BE CONSIDERED GIFT INCOME FOR PURPOSES OF THIS SECTION.
   (2)  SPOUSAL  TRANSFERS. TRANSFERS OF PROPERTY FROM A SPOUSE SHALL NOT
 BE CONSIDERED GIFT INCOME FOR PURPOSES OF THIS SECTION.
   (3) RETIREMENT ACCOUNTS. TRANSFERS OF PROPERTY CONSISTING OF PENSIONS,
 HEALTH SAVINGS ACCOUNTS, OR RETIREMENT ACCOUNTS ESTABLISHED PURSUANT  TO
 SECTION  FOUR  HUNDRED ONE, FOUR HUNDRED THREE, FOUR HUNDRED EIGHT, FOUR
 HUNDRED EIGHT-A, OR FOUR HUNDRED FIFTY-SEVEN  OF  THE  INTERNAL  REVENUE
 CODE SHALL NOT BE CONSIDERED GIFT INCOME FOR PURPOSES OF THIS SECTION.
   (4) FAMILY FARMS. A TRANSFER TO A RESIDENT OR PART-YEAR RESIDENT INDI-
 VIDUAL  FROM  A DONOR WHO IS A FAMILY MEMBER OF SUCH INDIVIDUAL OF FARM-
 LAND AND FARM EQUIPMENT SHALL NOT BE CONSIDERED GIFT INCOME FOR PURPOSES
 OF THIS SECTION PROVIDED THAT THE TOTAL VALUE OF GIFT INCOME  (INCLUDING
 THE VALUE OF SUCH FARMLAND AND FARM EQUIPMENT) RECEIVED BY SUCH INDIVID-
 UAL FROM SUCH DONOR DOES NOT EXCEED ONE MILLION DOLLARS.
   (D)  FAMILY-OWNED BUSINESS LIQUIDITY DEFERRAL. (1) A RESIDENT OR PART-
 YEAR RESIDENT INDIVIDUAL WHO IN A TAXABLE YEAR RECEIVES FROM A DONOR WHO
 IS A FAMILY MEMBER OF SUCH INDIVIDUAL GIFT  INCOME  TOTALING  LESS  THAN
 FIVE  MILLION  DOLLARS,  OVER  FIFTY PERCENT OF THE TOTAL VALUE OF WHICH
 CONSISTS OF EQUITY INTERESTS IN A FAMILY-OWNED BUSINESS,  MAY  ELECT  TO
 DEFER PAYMENT OF THE TAX IMPOSED BY THIS SECTION UNTIL THE TIME AT WHICH
 SUCH  INDIVIDUAL  SELLS  SUCH EQUITY INTERESTS, PROVIDED THAT DURING THE
 TIME OF DEFERRAL INTEREST WILL ACCRUE ON THE AMOUNT OF  SUCH  TAX  AT  A
 RATE  EQUAL  TO  THE FEDERAL SHORT-TERM RATE AS PROVIDED UNDER PARAGRAPH
 THREE OF SUBSECTION (J) OF SECTION  SIX  HUNDRED  NINETY-SEVEN  OF  THIS
 ARTICLE.

 A. 4643                             4
 
   (2) FOR THE PURPOSES OF THIS SUBSECTION, "FAMILY-OWNED BUSINESS" MEANS
 A  BUSINESS  FOR WHICH, AT THE TIME OWNERSHIP OF SUCH BUSINESS IS TRANS-
 FERRED TO A RESIDENT OR PART-YEAR RESIDENT INDIVIDUAL, THE TRANSFEROR OF
 SUCH BUSINESS OR FAMILY MEMBERS OF  SUCH  TRANSFEROR  COLLECTIVELY  HAVE
 RETAINED  MAJORITY  OWNERSHIP  AND  HAVE  MATERIALLY PARTICIPATED IN THE
 OPERATION OF SUCH BUSINESS FOR THE TEN CONSECUTIVE YEARS PRECEDING  SUCH
 TRANSFER.
   §  2.  The tax law is amended by adding a new section 620-b to read as
 follows:
   § 620-B. CREDIT AGAINST SEPARATE TAX ON INHERITANCE INCOME. A RESIDENT
 SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY SECTION SIX HUNDRED
 FOUR OF THIS ARTICLE IN THE AMOUNT OF THE ESTATE TAX IMPOSED BY  ARTICLE
 TWENTY-SIX  OF  THIS CHAPTER OR ANY ESTATE OR INHERITANCE TAX IMPOSED BY
 ANOTHER STATE OF THE UNITED STATES,  A  POLITICAL  SUBDIVISION  OF  SUCH
 STATE, OR THE DISTRICT OF COLUMBIA, UPON ANY INHERITANCE INCOME, AS SUCH
 TERM IS DEFINED IN SECTION SIX HUNDRED FOUR OF THIS ARTICLE, RECEIVED BY
 SUCH  RESIDENT  IN  A TAXABLE YEAR. SUCH RESIDENT MAY ELECT TO CALCULATE
 THE AMOUNT OF SUCH CREDIT IN ACCORDANCE WITH EITHER  SUBSECTION  (A)  OR
 (B) OF THIS SECTION.
   (A)  THE  AMOUNT  OF  CREDIT  ALLOWED  PURSUANT TO THIS SECTION MAY BE
 CALCULATED BY MULTIPLYING THE TOTAL AMOUNT OF ESTATE OR INHERITANCE  TAX
 IMPOSED  BY  THIS STATE, ANOTHER STATE OF THE UNITED STATES, A POLITICAL
 SUBDIVISION OF SUCH STATE, OR THE DISTRICT OF  COLUMBIA  ON  THE  ESTATE
 FROM  WHICH SUCH RESIDENT HAS RECEIVED INHERITANCE INCOME BY A FRACTION,
 THE NUMERATOR OF WHICH IS THE AMOUNT OF INHERITANCE INCOME  RECEIVED  BY
 SUCH RESIDENT FROM SUCH ESTATE AND THE DENOMINATOR OF WHICH IS THE TOTAL
 VALUE  OF  SUCH  ESTATE  AFTER  THE FEDERAL ESTATE TAX HAS BEEN PAID BUT
 BEFORE THE ESTATE TAX OF THIS STATE, OR ANY ESTATE  OR  INHERITANCE  TAX
 IMPOSED  BY  ANOTHER STATE OF THE UNITED STATES, A POLITICAL SUBDIVISION
 OF SUCH STATE, OR THE DISTRICT OF COLUMBIA, HAS BEEN PAID. IN  ORDER  TO
 CALCULATE  THE  CREDIT IN ACCORDANCE WITH THIS SUBSECTION, SUCH RESIDENT
 MUST KNOW THE TOTAL AMOUNT OF ESTATE OR INHERITANCE TAX IMPOSED ON  SUCH
 ESTATE  BY  THIS  STATE, ANOTHER STATE OF THE UNITED STATES, A POLITICAL
 SUBDIVISION OF SUCH STATE, OR THE DISTRICT OF  COLUMBIA  AND  THE  TOTAL
 VALUE  OF  SUCH  ESTATE  AFTER  THE FEDERAL ESTATE TAX HAS BEEN PAID BUT
 BEFORE THE ESTATE OR INHERITANCE TAX OF THIS STATE, ANOTHER STATE OF THE
 UNITED STATES, A POLITICAL SUBDIVISION OF SUCH STATE, OR THE DISTRICT OF
 COLUMBIA, HAS BEEN PAID.
   (B) THE AMOUNT OF CREDIT ALLOWED  PURSUANT  TO  THIS  SECTION  MAY  BE
 CALCULATED  AS  EQUAL  TO THE AMOUNT OF ESTATE TAX OR INHERITANCE TAX OF
 THIS STATE, ANOTHER STATE OF THE UNITED STATES, A POLITICAL  SUBDIVISION
 OF SUCH STATE, OR THE DISTRICT OF COLUMBIA, THAT WOULD BE IMPOSED ON THE
 ESTATE  FROM  WHICH SUCH RESIDENT RECEIVES INHERITANCE INCOME AS IF SUCH
 INHERITANCE INCOME WERE EQUAL TO THE TOTAL VALUE OF SUCH ESTATE.
   § 3. The tax law is amended by adding two new sections 624-a and 624-b
 to read as follows:
   § 624-A. COMPUTATION OF SEPARATE TAX ON INHERITANCE INCOME RECEIVED BY
 A RESIDENT INDIVIDUAL. THE AMOUNT  OF  TAX  IMPOSED  UNDER  SECTION  SIX
 HUNDRED  FOUR  OF  THIS  ARTICLE  FOR  ANY TAXABLE YEAR, WITH RESPECT TO
 INHERITANCE INCOME RECEIVED BY A RESIDENT INDIVIDUAL,  SHALL  BE  DETER-
 MINED IN ACCORDANCE WITH THE FOLLOWING TABLE:
   FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND TWENTY:
 IF THE INHERITANCE INCOME IS:        THE TAX IS:
 NOT OVER $250,000                    0% OF INHERITANCE INCOME
 OVER $250,000 BUT NOT                $0 PLUS 5% OF EXCESS
 OVER $500,000                        OVER $250,000

 A. 4643                             5
 
 OVER $500,000 BUT NOT                $12,500 PLUS 15% OF EXCESS
 OVER $1,000,000                      OVER $500,000
 OVER $1,000,000 BUT NOT              $87,500 PLUS 30% OF EXCESS
 OVER $2,000,000                      OVER $1,000,000
 OVER $2,000,000 BUT NOT              $387,000 PLUS 40% OF EXCESS
 OVER $10,000,000                     OVER $2,000,000
 OVER $10,000,000                     $3,587,500 PLUS 50% OF EXCESS
                                      OVER $10,000,000
   §  624-B.  COMPUTATION  OF  SEPARATE  TAX ON GIFT INCOME RECEIVED BY A
 RESIDENT INDIVIDUAL. THE AMOUNT OF TAX IMPOSED UNDER SECTION SIX HUNDRED
 FOUR-A OF THIS ARTICLE FOR ANY TAXABLE YEAR, WITH RESPECT TO GIFT INCOME
 RECEIVED BY A RESIDENT INDIVIDUAL, SHALL  BE  DETERMINED  IN  ACCORDANCE
 WITH THE FOLLOWING TABLE:
 IF THE GIFT INCOME IS:               THE TAX IS:
 NOT OVER $50,000                     0% OF GIFT INCOME
 OVER $50,000 BUT NOT OVER $100,000   $0 PLUS 5% OF EXCESS OVER $50,000
 OVER $100,000 BUT NOT                $2,500 PLUS 15% OF EXCESS
 OVER $200,000                        OVER $100,000
 OVER $200,000 BUT NOT                $17,500 PLUS 30% OF EXCESS
 OVER $400,000                        OVER $200,000
 OVER $400,000 BUT NOT                $77,500 PLUS 40% OF EXCESS
 OVER $2,000,000                      OVER $400,000
 OVER $2,000,000                      $717,500 PLUS 50% OF EXCESS OVER
                                      $2,000,000
   §  4. The tax law is amended by adding three new sections 637-a, 637-b
 and 640 to read as follows:
   § 637-A. COMPUTATION OF SEPARATE TAX ON INHERITANCE INCOME RECEIVED BY
 NONRESIDENT OR PART-YEAR RESIDENT INDIVIDUALS. THE AMOUNT OF TAX IMPOSED
 UNDER SECTION SIX HUNDRED FOUR OF THIS ARTICLE  FOR  ANY  TAXABLE  YEAR,
 WITH  RESPECT  TO  INHERITANCE INCOME RECEIVED BY A NONRESIDENT OR PART-
 YEAR RESIDENT INDIVIDUAL, SHALL BE DETERMINED  IN  ACCORDANCE  WITH  THE
 FOLLOWING TABLE:
   FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND TWENTY:
 IF THE INHERITANCE INCOME IS:        THE TAX IS:
 NOT OVER $250,000                    0% OF INHERITANCE INCOME
 OVER $250,000 BUT NOT                $0 PLUS 5% OF EXCESS
 OVER $500,000                        OVER $250,000
 OVER $500,000 BUT NOT                $12,500 PLUS 15% OF EXCESS
 OVER $1,000,000                      OVER $500,000
 OVER $1,000,000 BUT NOT              $87,500 PLUS 30% OF EXCESS
 OVER $2,000,000                      OVER $1,000,000
 OVER $2,000,000 BUT NOT              $387,000 PLUS 40% OF EXCESS OVER
 OVER $10,000,000                     $2,000,000
 OVER $10,000,000                     $3,587,500 PLUS 50% OF EXCESS OVER
                                      $10,000,000
   §  637-B. COMPUTATION OF SEPARATE TAX ON GIFT INCOME RECEIVED BY PART-
 YEAR RESIDENT INDIVIDUALS. THE AMOUNT OF TAX IMPOSED UNDER  SECTION  SIX
 HUNDRED  FOUR-A  OF  THIS  ARTICLE FOR ANY TAXABLE YEAR, WITH RESPECT TO
 GIFT INCOME RECEIVED BY A PART-YEAR RESIDENT INDIVIDUAL, SHALL BE DETER-
 MINED IN ACCORDANCE WITH THE FOLLOWING TABLE:
 IF THE GIFT INCOME IS:               THE TAX IS:
 NOT OVER $50,000                     0% OF GIFT INCOME
 OVER $50,000 BUT NOT                 $0 PLUS 5% OF EXCESS
 OVER $100,000                        OVER $50,000
 OVER $100,000 BUT NOT                $2,500 PLUS 15% OF EXCESS
 OVER $200,000                        OVER $100,000

 A. 4643                             6
 
 OVER $200,000 BUT NOT                $17,500 PLUS 30% OF EXCESS
 OVER $400,000                        OVER $200,000
 OVER $400,000 BUT NOT                $77,500 PLUS 40% OF EXCESS
 OVER $2,000,000                      OVER $400,000
 OVER $2,000,000                      $717,500 PLUS 50% OF EXCESS OVER
                                      $2,000,000
   §  640. CREDITS AGAINST SEPARATE TAX ON INHERITANCE INCOME. A NONRESI-
 DENT OR PART-YEAR RESIDENT INDIVIDUAL SHALL BE ALLOWED A CREDIT  AGAINST
 THE  TAX  IMPOSED  BY  SECTION  SIX  HUNDRED FOUR OF THIS ARTICLE IN THE
 AMOUNT OF THE ESTATE TAX IMPOSED BY ARTICLE TWENTY-SIX OF THIS  CHAPTER,
 OR  OF  ANY  ESTATE  OR  INHERITANCE TAX IMPOSED BY ANOTHER STATE OF THE
 UNITED STATES, A POLITICAL SUBDIVISION OF SUCH STATE, OR THE DISTRICT OF
 COLUMBIA, UPON ANY INHERITANCE INCOME, AS SUCH TERM IS DEFINED  IN  SUCH
 SECTION,  RECEIVED BY SUCH INDIVIDUAL IN A TAXABLE YEAR. SUCH INDIVIDUAL
 MAY ELECT TO CALCULATE THE AMOUNT OF  SUCH  CREDIT  IN  ACCORDANCE  WITH
 EITHER SUBSECTION (A) OR (B) OF THIS SECTION.
   (A)  THE  AMOUNT  OF  CREDIT  ALLOWED  PURSUANT TO THIS SECTION MAY BE
 CALCULATED BY MULTIPLYING THE TOTAL AMOUNT OF ESTATE OR INHERITANCE  TAX
 IMPOSED  BY  THIS STATE, ANOTHER STATE OF THE UNITED STATES, A POLITICAL
 SUBDIVISION OF SUCH STATE, OR THE DISTRICT OF  COLUMBIA  ON  THE  ESTATE
 FROM  WHICH  SUCH  INDIVIDUAL HAS RECEIVED INHERITANCE INCOME BY A FRAC-
 TION, THE NUMERATOR  OF  WHICH  IS  THE  AMOUNT  OF  INHERITANCE  INCOME
 RECEIVED  BY  SUCH  INDIVIDUAL  FROM  SUCH ESTATE AND THE DENOMINATOR OF
 WHICH IS THE TOTAL VALUE OF SUCH ESTATE AFTER THE FEDERAL ESTATE TAX HAS
 BEEN PAID BUT BEFORE THE ESTATE TAX OF THIS  STATE,  OR  ANY  ESTATE  OR
 INHERITANCE  TAX  IMPOSED BY ANOTHER STATE OF THE UNITED STATES, A POLI-
 TICAL SUBDIVISION OF SUCH STATE, OR THE DISTRICT OF COLUMBIA,  HAS  BEEN
 PAID.  IN  ORDER  TO  CALCULATE  THE  CREDIT  IN  ACCORDANCE  WITH  THIS
 SUBSECTION, SUCH INDIVIDUAL MUST KNOW THE  TOTAL  AMOUNT  OF  ESTATE  OR
 INHERITANCE  TAX  IMPOSED ON SUCH ESTATE BY THIS STATE, ANOTHER STATE OF
 THE UNITED STATES,  A  POLITICAL  SUBDIVISION  OF  SUCH  STATE,  OR  THE
 DISTRICT OF COLUMBIA AND THE TOTAL VALUE OF SUCH ESTATE AFTER THE FEDER-
 AL  ESTATE TAX HAS BEEN PAID BUT BEFORE THE ESTATE OR INHERITANCE TAX OF
 THIS STATE, ANOTHER STATE OF THE UNITED STATES, A POLITICAL  SUBDIVISION
 OF SUCH STATE, OR THE DISTRICT OF COLUMBIA, HAS BEEN PAID.
   (B)  THE  AMOUNT  OF  CREDIT  ALLOWED  PURSUANT TO THIS SECTION MAY BE
 CALCULATED AS EQUAL TO THE AMOUNT OF ESTATE TAX OR  INHERITANCE  TAX  OF
 THIS  STATE, ANOTHER STATE OF THE UNITED STATES, A POLITICAL SUBDIVISION
 OF SUCH STATE, OR THE DISTRICT OF COLUMBIA THAT WOULD BE IMPOSED ON  THE
 ESTATE FROM WHICH SUCH INDIVIDUAL RECEIVES INHERITANCE INCOME AS IF SUCH
 INHERITANCE INCOME WERE EQUAL TO THE TOTAL VALUE OF SUCH ESTATE.
   §  5.  Section  951-a  of  the  tax  law  is  amended  by adding a new
 subsection (g) to read as follows:
   (G) THE TERM "NEW YORK TAXABLE GIFTS" HAS THE SAME MEANING AS PROVIDED
 IN SECTION ONE THOUSAND OF THIS CHAPTER.
   § 6. Section 952 of the tax law, as amended by section 2 of part X  of
 chapter  59  of the laws of 2014, subsection (b) as amended by section 1
 of part BB of chapter 59 of the laws of 2015,  is  amended  to  read  as
 follows:
   § 952. Tax imposed. (a) A tax is hereby 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.
   (b)  Computation  of  tax.  The  tax  imposed by this section shall be
 computed on the deceased resident's New York taxable estate as follows:
   (1) IN THE CASE OF DECEDENTS DYING BEFORE APRIL 1, 2021:

 A. 4643                             7
 
 If the New York taxable estate is:      The tax is:
 Not over $500,000                       3.06% of taxable estate
 Over $500,000 but not over $1,000,000   $15,300 plus 5.0% of excess over
                                         $500,000
 Over $1,000,000 but not over $1,500,000 $40,300 plus 5.5% of excess over
                                         $1,000,000
 Over $1,500,000 but not over $2,100,000 $67,800 plus 6.5% of excess over
                                         $1,500,000
 Over $2,100,000 but not over $2,600,000 $106,800 plus 8.0% of excess
                                         over $2,100,000
 Over $2,600,000 but not over $3,100,000 $146,800 plus 8.8% of excess over
                                         $2,600,000
 Over $3,100,000 but not over $3,600,000 $190,800 plus 9.6% of excess over
                                         $3,100,000
 Over $3,600,000 but not over $4,100,000 $238,800 plus 10.4% of excess
                                         over $3,600,000
 Over $4,100,000 but not over $5,100,000 $290,800 plus 11.2% of excess
                                         over $4,100,000
 Over $5,100,000 but not over $6,100,000 $402,800 plus 12.0% of excess
                                         over $5,100,000
 Over $6,100,000 but not over $7,100,000 $522,800 plus 12.8% of excess
                                         over $6,100,000
 Over $7,100,000 but not over $8,100,000 $650,800 plus 13.6% of excess
                                         over $7,100,000
 Over $8,100,000 but not over $9,100,000 $786,800 plus 14.4% of excess
                                         over $8,100,000
 Over $9,100,000 but not over            $930,800 plus 15.2% of excess over
 $10,100,000                             $9,100,000
 Over $10,100,000                        $1,082,800 plus 16.0% of excess
                                         over $10,100,000
   (2) IN THE CASE OF DECEDENTS DYING ON OR AFTER APRIL 1, 2021:
 IF THE NEW YORK TAXABLE ESTATE PLUS THE      THE TAX IS:
 LIFETIME AMOUNT OF NEW YORK TAXABLE GIFTS
 IS:
 NOT OVER $750,000                            0% OF TAXABLE ESTATE
 OVER $750,000 BUT NOT                        $0 PLUS 5% OF EXCESS
 OVER $1,500,000                              OVER $750,000
 OVER $1,500,000 BUT NOT                      $37,500 PLUS 15% OF EXCESS
 OVER $3,000,000                              OVER $1,500,000
 OVER $3,000,000 BUT NOT                      $262,500 PLUS 30% OF EXCESS
 OVER $6,000,000                              OVER $3,000,000
 OVER $6,000,000 BUT NOT                      $1,162,500 PLUS 40% OF EXCESS
 OVER $30,000,000                             OVER $6,000,000
 OVER $30,000,000                             $10,762,500 PLUS 50% OF EXCESS OVER
                                              30,000,000
   (c)  Applicable  credit  amount.  (1)  [A] IN THE CASE OF ANY DECEDENT
 DYING BEFORE APRIL FIRST, TWO  THOUSAND  TWENTY-ONE,  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 SUCH a dece-
 dent 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 SUCH 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  applica-
 ble  credit  amount  shall  be the amount of tax that would be due under

 A. 4643                             8
 
 subsection (b) of this section if the amount on which the tax is  to  be
 computed  were  equal  to  the  basic exclusion amount multiplied by one
 minus a fraction, the numerator 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:
 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     5,250,000
   (B)  In  the case of any decedent dying [in a calendar year beginning]
 on or after January first, two thousand nineteen AND BEFORE APRIL FIRST,
 TWO THOUSAND TWENTY-ONE, the basic exclusion amount shall be equal to:
   (i) five million 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.
   (D)  CREDIT  FOR  LIFETIME GIFT TAXES PAID.  IN THE CASE OF A DECEDENT
 DYING ON OR AFTER APRIL FIRST, TWO THOUSAND TWENTY-ONE, A  CREDIT  SHALL
 BE  ALLOWED  AGAINST  THE TAX IMPOSED BY THIS SECTION EQUAL TO THE TOTAL
 AMOUNT OF GIFT TAX IMPOSED BY SECTION ONE THOUSAND ONE OF  THIS  CHAPTER
 PAID BY SUCH DECEDENT DURING THE LIFETIME OF SUCH DECEDENT.
   § 7. Subsection (a) of section 954 of the tax law is amended by adding
 six new paragraphs 5, 6, 7, 8, 9 and 10 to read as follows:
   (5)  REDUCED  BY THE AMOUNT OF ANY QUALIFIED TRANSFER, AS SUCH TERM IS
 DEFINED IN PARAGRAPH (2) OF SUBSECTION (E) OF SECTION TWO THOUSAND  FIVE
 HUNDRED  THREE OF THE INTERNAL REVENUE CODE, TO THE EXTENT THE AMOUNT OF
 SUCH TRANSFER IS INCLUDED IN THE DECEDENT'S FEDERAL GROSS ESTATE.
   (6) REDUCED BY THE VALUE OF ANY TRANSFERS OF  PROPERTY  CONSISTING  OF
 PENSIONS,  HEALTH  SAVINGS  ACCOUNTS, OR RETIREMENT ACCOUNTS ESTABLISHED
 PURSUANT TO SECTION FOUR HUNDRED ONE, FOUR HUNDRED THREE,  FOUR  HUNDRED
 EIGHT, FOUR HUNDRED EIGHT-A, OR FOUR HUNDRED FIFTY-SEVEN OF THE INTERNAL
 REVENUE  CODE  TO THE EXTENT THE AMOUNT OF ANY SUCH TRANSFER IS INCLUDED
 IN THE DECEDENT'S FEDERAL GROSS ESTATE.
   (7) REDUCED BY ONE OF THE FOLLOWING, BUT NOT BOTH, WITH RESPECT TO NOT
 MORE THAN ONE TRANSFER OF REAL PROPERTY:
   (A) UP TO ONE MILLION SEVEN HUNDRED  FIFTY  THOUSAND  DOLLARS  OF  THE
 VALUE  OF  REAL PROPERTY TRANSFERRED TO AN INDIVIDUAL THAT (I) SERVED AS

 A. 4643                             9
 
 THE PRIMARY RESIDENCE OF THE DECEDENT OR OF SUCH INDIVIDUAL FOR THE  TEN
 CONSECUTIVE  YEARS PRECEDING SUCH TRANSFER OR (II) SERVES AS THE PRIMARY
 RESIDENCE OF SUCH INDIVIDUAL FOR THE FIVE  CONSECUTIVE  YEARS  FOLLOWING
 SUCH  TRANSFER TO THE EXTENT THE VALUE OF SUCH REAL PROPERTY IS INCLUDED
 IN THE DECEDENT'S FEDERAL GROSS ESTATE; OR
   (B) UP TO SEVEN HUNDRED FIFTY THOUSAND DOLLARS OF THE VALUE OF A RESI-
 DENTIAL HOME THAT WAS PURCHASED WITH A  FEDERAL  HOUSING  ADMINISTRATION
 INSURED  MORTGAGE  TO  THE  EXTENT THE VALUE OF SUCH RESIDENTIAL HOME IS
 INCLUDED IN THE DECEDENT'S FEDERAL GROSS ESTATE.
   (8) REDUCED BY THE VALUE OF FARMLAND AND FARM EQUIPMENT TRANSFERRED TO
 AN INDIVIDUAL FROM THE ESTATE OF A FAMILY MEMBER OF SUCH  INDIVIDUAL  TO
 THE  EXTENT  THE VALUE OF SUCH FARMLAND AND EQUIPMENT IS INCLUDED IN THE
 DECEDENT'S FEDERAL GROSS ESTATE, PROVIDED THAT THE TOTAL  VALUE  OF  ALL
 TRANSFERS  FROM SUCH ESTATE TO SUCH INDIVIDUAL IS LESS THAN FIVE MILLION
 DOLLARS, AND PROVIDED FURTHER THAT THE VALUE OF SUCH FARMLAND AND EQUIP-
 MENT CONSTITUTES OVER FIFTY PERCENT OF THE TOTAL VALUE  OF  SUCH  TRANS-
 FERS.   FOR THE PURPOSES OF THIS PARAGRAPH, "FAMILY MEMBER" HAS THE SAME
 MEANING AS PROVIDED IN SECTION SIX HUNDRED FOUR OF THIS CHAPTER.
   (9) REDUCED BY THE VALUE OF REAL PROPERTY TRANSFERRED BY THE ESTATE OF
 THE DECEDENT TO AN INDIVIDUAL WHO WAS A RESIDENT OF THIS  STATE  ON  THE
 DATE  OF DEATH OF SUCH DECEDENT THAT WILL SERVE AS THE PRIMARY RESIDENCE
 OF SUCH INDIVIDUAL, PROVIDED THAT THE TOTAL VALUE OF ALL TRANSFERS  FROM
 SUCH  ESTATE  TO  SUCH  INDIVIDUAL IS LESS THAN FIVE MILLION DOLLARS AND
 PROVIDED THAT THE VALUE OF SUCH REAL  PROPERTY  CONSTITUTES  OVER  FIFTY
 PERCENT  OF THE TOTAL VALUE OF SUCH TRANSFERS; AND PROVIDED FURTHER THAT
 SUCH ESTATE AND SUCH INDIVIDUAL AGREE IN WRITING AT THE TIME OF TRANSFER
 THAT SUCH INDIVIDUAL WILL BE LIABLE FOR ANY INHERITANCE TAX  IMPOSED  BY
 SECTION SIX HUNDRED FOUR OF THIS CHAPTER ON THE TRANSFER OF SUCH PROPER-
 TY  THAT  MAY  BE DEFERRED AND PAID UPON DISPOSITION OF SUCH PROPERTY AS
 PROVIDED IN PARAGRAPH ONE OF SUBSECTION (D) OF SUCH SECTION.
   (10) REDUCED BY THE VALUE OF A FAMILY-OWNED  BUSINESS  TRANSFERRED  BY
 THE  ESTATE  OF THE DECEDENT TO AN INDIVIDUAL WHO WAS A RESIDENT OF THIS
 STATE ON THE DATE OF DEATH OF SUCH DECEDENT,  PROVIDED  THAT  THE  TOTAL
 VALUE  OF ALL TRANSFERS FROM SUCH ESTATE TO SUCH INDIVIDUAL IS LESS THAN
 FIVE MILLION DOLLARS AND PROVIDED THAT THE VALUE  OF  SUCH  FAMILY-OWNED
 BUSINESS  CONSTITUTES  OVER  FIFTY  PERCENT  OF  THE TOTAL VALUE OF SUCH
 TRANSFERS; AND PROVIDED FURTHER THAT SUCH  ESTATE  AND  SUCH  INDIVIDUAL
 AGREE  IN  WRITING  AT THE TIME OF TRANSFER THAT SUCH INDIVIDUAL WILL BE
 LIABLE FOR ANY INHERITANCE TAX IMPOSED BY SECTION SIX  HUNDRED  FOUR  OF
 THIS  CHAPTER  ON THE TRANSFER OF SUCH FAMILY-OWNED BUSINESS THAT MAY BE
 DEFERRED AND PAID UPON DISPOSITION OF SUCH BUSINESS AS PROVIDED IN PARA-
 GRAPH TWO OF SUBSECTION (D) OF SUCH SECTION. FOR THE  PURPOSES  OF  THIS
 PARAGRAPH,  THE  TERM  "FAMILY-OWNED  BUSINESS"  HAS THE SAME MEANING AS
 PROVIDED IN SUBPARAGRAPH (B) OF  PARAGRAPH  TWO  OF  SUBSECTION  (D)  OF
 SECTION SIX HUNDRED FOUR OF THIS CHAPTER.
   § 8. Subsection (a) of section 955 of the tax law, as added by section
 4  of  part  X  of chapter 59 of the laws of 2014, is amended to read as
 follows:
   (a) General.--The taxable estate of a New York resident shall  be  his
 or  her New York gross estate, minus the deductions allowable for deter-
 mining his or her federal taxable estate under the internal revenue code
 (whether or not a federal estate tax return is required  to  be  filed),
 except  to  the  extent  that such deductions relate to real or tangible
 personal property sitused outside New York state, REDUCED BY THE  AMOUNT
 OF  FEDERAL  ESTATE TAX IMPOSED ON THE ESTATE OF SUCH RESIDENT, PROVIDED
 THAT WITH RESPECT TO THE ESTATE OF A DECEDENT WHO ON THE  DATE  OF  SUCH

 A. 4643                            10
 
 DECEDENT'S  DEATH  WAS  A NOT A RESIDENT OF NEW YORK, THE NEW YORK GROSS
 ESTATE SHALL BE REDUCED ONLY BY AN AMOUNT EQUAL TO THE TOTAL  AMOUNT  OF
 FEDERAL  ESTATE  TAX IMPOSED ON SUCH ESTATE MULTIPLIED BY A FRACTION THE
 NUMERATOR  OF  WHICH  IS  THE VALUE OF PROPERTY CONTAINED IN SUCH ESTATE
 THAT IS SUBJECT TO THE TAX IMPOSED BY SECTION NINE HUNDRED SIXTY OF THIS
 PART AND THE DENOMINATOR OF WHICH IS THE TOTAL VALUE OF SUCH ESTATE.
   § 9. The tax law is amended by adding a new article 26-A  to  read  as
 follows:
                               ARTICLE 26-A
                                 GIFT TAX
 SECTION 1000. DEFINITIONS.
         1001. TAX IMPOSED.
         1002. RATE OF TAX.
         1003. ADMINISTRATION.
   §  1000.  DEFINITIONS. (A) "TAXABLE GIFTS" MEANS THE TRANSFERS BY GIFT
 WHICH ARE INCLUDED IN TAXABLE GIFTS FOR FEDERAL GIFT TAX PURPOSES  UNDER
 SECTION  2503 AND SECTIONS 2511 TO 2514, INCLUSIVE, AND SECTIONS 2516 TO
 2519, INCLUSIVE, OF THE  INTERNAL  REVENUE  CODE,  LESS  THE  DEDUCTIONS
 ALLOWED IN SECTIONS 2522 TO 2524, INCLUSIVE, OF SUCH CODE.
   (B)  (1)  EXCEPT  AS  OTHERWISE  PROVIDED  IN  PARAGRAPH  TWO  OF THIS
 SUBSECTION, "NEW YORK TAXABLE GIFTS" MEANS TAXABLE GIFTS MADE  DURING  A
 TAXABLE  YEAR COMMENCING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-
 TWO, THAT ARE (I) FOR RESIDENTS, TAXABLE GIFTS, WHEREVER LOCATED, EXCEPT
 FOR GIFTS OF REAL ESTATE OR TANGIBLE PERSONAL PROPERTY  LOCATED  OUTSIDE
 NEW  YORK  AND (II) FOR NONRESIDENTS OF THIS STATE, GIFTS OF REAL ESTATE
 OR TANGIBLE PERSONAL PROPERTY LOCATED WITHIN NEW YORK.
   (2) GIFTS MADE TO ANY PERSON BY THE DONOR DURING THE CALENDAR YEAR FOR
 WHICH A TAX IS IMPOSED ON SUCH PERSON FOR THE RECEIPT OF  SUCH  GIFT  BY
 THIS  STATE, ANOTHER STATE OF THE UNITED STATES, A POLITICAL SUBDIVISION
 OF SUCH STATE, OR THE DISTRICT OF COLUMBIA, INCLUDING THE TAX IMPOSED BY
 SECTION SIX HUNDRED FOUR-A OF THIS CHAPTER, SHALL NOT FOR  THE  PURPOSES
 OF  PARAGRAPH  ONE OF THIS SUBSECTION BE INCLUDED IN THE TOTAL AMOUNT OF
 NEW YORK TAXABLE GIFTS MADE DURING SUCH YEAR.
   (C) IN THE ADMINISTRATION OF THE TAX UNDER THIS ARTICLE,  THE  COMMIS-
 SIONER  SHALL  APPLY THE PROVISIONS OF SECTIONS 2701 TO 2704, INCLUSIVE,
 OF THE INTERNAL REVENUE CODE, AND THE TERM "SECRETARY OR  HIS  DELEGATE"
 AS USED IN SUCH SECTIONS MEANS THE COMMISSIONER.
   §  1001.  TAX  IMPOSED.  FOR  THE  CALENDAR YEAR COMMENCING ON JANUARY
 FIRST, TWO THOUSAND TWENTY-TWO, AND FOR  EACH  YEAR  THEREAFTER,  A  TAX
 COMPUTED  AS  PROVIDED  IN  SECTION  ONE THOUSAND TWO OF THIS ARTICLE IS
 IMPOSED ON THE TRANSFER OF PROPERTY BY GIFT DURING A TAXABLE YEAR BY ANY
 RESIDENT OR NONRESIDENT INDIVIDUAL.
   § 1002. RATE OF TAX. WITH  RESPECT  TO  NEW  YORK  TAXABLE  GIFTS,  AS
 DEFINED  IN SECTION ONE THOUSAND OF THIS ARTICLE, MADE BY A DONOR DURING
 A CALENDAR YEAR COMMENCING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWEN-
 TY-TWO, INCLUDING THE AGGREGATE AMOUNT OF ALL  NEW  YORK  TAXABLE  GIFTS
 MADE BY THE DONOR DURING ALL CALENDAR YEARS COMMENCING ON OR AFTER JANU-
 ARY FIRST, TWO THOUSAND TWENTY-TWO, THE TAX IMPOSED BY SECTION ONE THOU-
 SAND  ONE OF THIS ARTICLE FOR THE CALENDAR YEAR SHALL BE AT THE RATE SET
 FORTH IN THE FOLLOWING SCHEDULE, WITH A CREDIT ALLOWED AGAINST SUCH  TAX
 FOR  ANY  TAX  PREVIOUSLY  PAID  TO THIS STATE PURSUANT TO THIS SECTION,
 PROVIDED SUCH CREDIT SHALL NOT EXCEED THE AMOUNT OF TAX IMPOSED BY  THIS
 SECTION:
 IF THE AMOUNT OF NEW YORK TAXABLE GIFTS IS:  THE TAX IS:
 NOT OVER $750,000                            0% OF TAXABLE GIFTS
 OVER $750,000 BUT NOT                        $0 PLUS 5% OF EXCESS

 A. 4643                            11
 
 OVER $1,500,000                              OVER $750,000
 OVER $1,500,000 BUT NOT                      $37,500 PLUS 15% OF EXCESS
 OVER $3,000,000                              OVER $1,500,000
 OVER $3,000,000 BUT NOT                      $262,500 PLUS 30% OF EXCESS
 OVER $6,000,000                              OVER $3,000,000
 OVER $6,000,000 BUT NOT                      $1,162,500 PLUS 40% OF
 OVER $30,000,000                             EXCESS OVER $6,000,000
 OVER $30,000,000                             $10,762,500 PLUS 50% OF
                                              EXCESS OVER $30,000,000
   §  1003.  ADMINISTRATION.  THE COMMISSIONER SHALL PROMULGATE RULES AND
 REGULATIONS NECESSARY AND APPROPRIATE TO EFFECTUATE  THE  PROVISIONS  OF
 THIS  ARTICLE,  INCLUDING  THE ESTABLISHMENT OF DEADLINES AND PROCEDURES
 FOR THE FILING OF GIFT TAX RETURNS BY ANY  RESIDENT  OR  NONRESIDENT  OF
 THIS STATE WHO GAVE NEW YORK TAXABLE GIFTS DURING A TAXABLE YEAR.
   § 10. This act shall take effect immediately.