S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3193
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 2, 2023
                                ___________
 
 Introduced by M. of A. SOLAGES, GONZALEZ-ROJAS, L. ROSENTHAL, SEAWRIGHT,
   BICHOTTE HERMELYN,  THIELE,  MITAYNES, EPSTEIN, BURGOS, FORREST, CRUZ,
   ANDERSON, SIMON, REYES, MAMDANI, CARROLL, KELLES, MEEKS, CLARK,  WALK-
   ER,  JACKSON,  KIM,  DAVILA,  BURKE  --  read once and referred to the
   Committee on Ways and Means

 AN ACT to amend the tax law, in relation to establishing separate  taxes
   on inheritance income and on gift income, amending the estate tax, and
   establishing 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 SHALL HAVE  THE  FOLLOWING
 MEANINGS:
   (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 STATE 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03717-01-3
              

 A. 3193                             2
 
 RESIDENTS AND SECTION SIX HUNDRED THIRTY-SEVEN-A OF  THIS  ARTICLE  WITH
 RESPECT TO NONRESIDENTS AND PART-YEAR RESIDENTS.
   (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
 SECTIONS 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
 A. 3193                             3

 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-
 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 PROCEED-
 ING SUCH TRANSFER.
   §  604-A.  SEPARATE  TAX  ON  GIFT  INCOME.  (A)  DEFINITIONS. FOR THE
 PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE  THE  FOLLOWING
 MEANINGS:
   (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 STATE 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
 SECTIONS 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
 A. 3193                             4
 
 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.
   (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 PROCEEDING 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 SUCH SECTION, 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 SUBSECTION (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 SUCH 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-TWO:
 IF THE INHERITANCE INCOME IS:        THE TAX IS:
 NOT OVER $250,000                    0% OF INHERITANCE INCOME
 A. 3193                             5
 
 OVER $250,000 BUT NOT OVER $500,000  $0 PLUS 5% OF EXCESS OVER $250,000
 OVER $500,000 BUT NOT OVER           $12,500 PLUS 15% OF EXCESS OVER
 $1,000,000                           $500,000
 OVER $1,000,000 BUT NOT OVER         $87,500 PLUS 30% OF EXCESS OVER
 $2,000,000                           $1,000,000
 OVER $2,000,000 BUT NOT OVER         $387,000 PLUS 40% OF EXCESS OVER
 $10,000,000                          $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 PART 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 OVER           $2,500 PLUS 15% OF EXCESS OVER
 $200,000                             $100,000
 OVER $200,000 BUT NOT OVER           $17,500 PLUS 30% OF EXCESS OVER
 $400,000                             $200,000
 OVER $400,000 BUT NOT OVER           $77,500 PLUS 40% OF EXCESS OVER
 $2,000,000                           $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:
   (A) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND TWENTY-TWO:
 IF THE INHERITANCE INCOME IS:        THE TAX IS:
 NOT OVER $250,000                    0% OF INHERITANCE INCOME
 OVER $250,000 BUT NOT OVER $500,000  $0 PLUS 5% OF EXCESS OVER $250,000
 OVER $500,000 BUT NOT OVER           $12,500 PLUS 15% OF EXCESS OVER
 $1,000,000                           $500,000
 OVER $1,000,000 BUT NOT OVER         $87,500 PLUS 30% OF EXCESS OVER
 $2,000,000                           $1,000,000
 OVER $2,000,000 BUT NOT OVER         $387,000 PLUS 40% OF EXCESS
 $10,000,000                          OVER $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 OVER $100,000   $0 PLUS 5% OF EXCESS OVER $50,000
 OVER $100,000 BUT NOT OVER $200,000  $2,500 PLUS 15% OF EXCESS OVER
                                      $100,000
 OVER $200,000 BUT NOT OVER           $17,500 PLUS 30% OF EXCESS OVER
 A. 3193                             6
 
 $400,000                             $200,000
 OVER $400,000 BUT NOT OVER           $77,500 PLUS 40% OF EXCESS OVER
 $2,000,000                           $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 SUBSECTION (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  SUCH  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, 2023:
 A. 3193                             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, 2023:
 IF THE NEW YORK TAXABLE ESTATE PLUS  THE TAX IS:
 THE LIFETIME AMOUNT OF NEW YORK
 TAXABLE GIFTS IS:
 NOT OVER $750,000                    0% OF TAXABLE ESTATE
 OVER $750,000 BUT NOT OVER           $0 PLUS 5% OF EXCESS OVER $750,000
 $1,500,000
 OVER $1,500,000 BUT NOT OVER         $37,500 PLUS 15% OF EXCESS OVER
 $3,000,000                           $1,500,000
 OVER $3,000,000 BUT NOT OVER         $262,500 PLUS 30% OF EXCESS OVER
 $6,000,000                           $3,000,000
 OVER $6,000,000 BUT NOT OVER         $1,162,500 PLUS 40% OF EXCESS
 $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-THREE,  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. 3193                             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-THREE, 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-THREE, 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 SECTIONS 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. 3193                             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. 3193                            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-
 FOUR, 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-FOUR,  AND FOR EACH YEAR THEREAFTER, A TAX
 COMPUTED AS PROVIDED IN SECTION ONE THOUSAND  TWO  OF  THIS  ARTICLE  IS
 HEREBY 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-FOUR,  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-FOUR, THE  TAX  IMPOSED  BY  SECTION  ONE
 THOUSAND  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
 A. 3193                            11
 
 OVER $750,000 BUT NOT OVER           $0 PLUS 5% OF EXCESS OVER $750,000
 $1,500,000
 OVER $1,500,000 BUT NOT OVER         $37,500 PLUS 15% OF EXCESS OVER
 $3,000,000                           $1,500,000
 OVER $3,000,000 BUT NOT OVER         $262,500 PLUS 30% OF EXCESS OVER
 $6,000,000                           $3,000,000
 OVER $6,000,000 BUT NOT OVER         $1,162,500 PLUS 40% OF EXCESS
 $30,000,000                          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.