BILL NUMBER: S670

SPONSOR: TEDISCO
 
TITLE OF BILL:

An act to amend the administrative code of the city of New York, in
relation to taxable estates; and to repeal article 26 of the tax law
relating thereto

 
PURPOSE OR GENERAL IDEA OF BILL:

The purpose of this bill is to repeal New York State's estate tax.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section one repeals Article 26 of the tax law.

§ 2. Subdivision (r) of section 11-1712 of the administrative code of
the city of New York, as re-lettered by section 60 of chapter 639 of the
laws of 1986 and such section as renumbered by section 43 of chapter 639
of the laws of 1986, is amended to read as follows:

              

(r) In the case of a sale or other disposition of property acquired from
a decedent and valued by the executor of the estate of such decedent
(for the purposes of the tax under article twenty-six of the tax law (i)
pursuant to paragraph two of subsection (b) of section nine hundred
fifty-four of the tax law, or (ii) pursuant to section nine hundred
fifty-four-a of the tax law, where such estate was insufficient to
require the filing of a federal estate tax return, the amount necessary
to properly reflect the gain or loss from such sale or other disposition
which would have been realized under this chapter, had, in the case of
clause (i) of this subdivision, a federal estate tax return been filed
similarly valuing such property pursuant to section two thousand thirty
two of the internal revenue code, or in the case of clause (ii) of this
subdivision, pursuant to section two thousand thirty-two-A of such code.

 
JUSTIFICATION:

New York's estate tax penalizes family owned and closely held businesses
throughout the state which has caused a statewide 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. In 2004, the National Bureau
of Economic Research revealed that a 1 percent differential in estate
tax rates was associated with a 4 percent reduction in the number of
residents in a given state. Eliminating the estate tax will encourage
residents to remain in New York and continue living and doing business
here in the Empire State.

 
PRIOR LEGISLATIVE HISTORY:

01/18/17: S.2884 REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

06/19/17: S.2884 COMMITTEE DISCHARGED AND COMMITTED TO RULES

06/19/17: S.2884 ORDERED TO THIRD READING CAL.1866

06/19/17: S.2884 PASSED SENATE

06/19/17: S.2884 DELIVERED TO ASSEMBLY

06/19/17: S.2884 referred to ways and means

01/03/18: S.2884 died in assembly

01/03/18: S.2884 returned to senate

01/03/18: S.2884 REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

02/01/18: S.2884 AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT
OPERATIONS

02/01/18: S.2884 PRINT NUMBER 2884A

01/11/19: S.1157 REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

01/08/20: S.1157 REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

01/12/21: S.1516 REFERRED TO BUDGET AND REVENUE

01/05/22: S.1516 REFERRED TO BUDGET AND REVENUE

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

Decrease of $577.2 million in State revenues, although mitigated by an
increase in economic activity and a more competitive business climate.

 
EFFECTIVE DATE:
This act shall take effect immediately.