S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    676
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 8, 2025
                                ___________
 
 Introduced  by  M. of A. KIM, GONZALEZ-ROJAS, SHRESTHA, LEVENBERG, RAGA,
   MAMDANI,  FORREST,  R. CARROLL,  ROSENTHAL,  JACKSON,  SIMONE,  REYES,
   SEAWRIGHT, BICHOTTE HERMELYN, MEEKS, SAYEGH, SHIMSKY, EPSTEIN, DAVILA,
   KELLES  --  Multi-Sponsored  by  --  M.  of  A. SIMON -- read once and
   referred to the Committee on Ways and Means
 
 AN ACT to amend the tax law, in relation to imposing an  additional  tax
   on income attributable to long-term capital gain
 
   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  601-b  to
 read as follows:
   §  601-B.  ADDITIONAL TAX ON LOW-TAXED INVESTMENT INCOME. (A) THERE IS
 HEREBY IMPOSED, IN ADDITION TO THE TAX IMPOSED UNDER SECTION SIX HUNDRED
 ONE OF THIS ARTICLE, AN ADDITIONAL TAX ON LOW-TAXED INVESTMENT INCOME.
   (B) AS USED IN THIS SECTION, LOW-TAXED INVESTMENT  INCOME  SHALL  MEAN
 THE  AMOUNT  OF  AN INDIVIDUAL'S NEW YORK TAXABLE INCOME ATTRIBUTABLE TO
 LONG-TERM CAPITAL GAIN, DIVIDENDS, OR ANY OTHER  TYPE  OF  INCOME  TAXED
 UNDER  THE  RATES  OF  SECTION 1(H) OF THE INTERNAL REVENUE CODE, OR ANY
 SUCCESSOR PROVISION THERETO.
   (C) THE ADDITIONAL TAX IMPOSED UNDER THIS SECTION SHALL BE EQUAL TO:
   (1) IN THE CASE OF A RESIDENT MARRIED INDIVIDUAL WHO  MAKES  A  SINGLE
 RETURN  JOINTLY  WITH  THE  INDIVIDUAL'S  SPOUSE UNDER SUBSECTION (B) OF
 SECTION SIX HUNDRED FIFTY-ONE OF THIS ARTICLE, AND IN THE CASE OF  EVERY
 RESIDENT SURVIVING SPOUSE:
   (A)  IF NEW YORK TAXABLE INCOME IS OVER FIVE HUNDRED THOUSAND DOLLARS,
 SEVEN AND ONE-HALF PERCENT OF NEW YORK  TAXABLE  INCOME  FROM  LONG-TERM
 CAPITAL GAIN, WHICH TAX SHALL BE PHASED IN PROPORTIONALLY OVER THE FIRST
 FIFTY  THOUSAND  DOLLARS  OF  NEW  YORK TAXABLE INCOME IN EXCESS OF FIVE
 HUNDRED THOUSAND DOLLARS; AND
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00237-01-5
              

 A. 676                              2
 
   (B) IF NEW YORK TAXABLE INCOME IS OVER ONE  MILLION  DOLLARS,  FIFTEEN
 PERCENT  OF  NEW  YORK TAXABLE INCOME FROM LONG-TERM CAPITAL GAIN, WHICH
 TAX SHALL BE PHASED IN PROPORTIONALLY, BEGINNING WITH A  PHASE-IN  FRAC-
 TION  OF  FIFTY  PERCENT, OVER THE FIRST ONE HUNDRED THOUSAND DOLLARS OF
 NEW YORK TAXABLE INCOME IN EXCESS OF ONE MILLION DOLLARS; AND
   (2) IN THE CASE OF A RESIDENT HEAD OF HOUSEHOLD:
   (A)  IF NEW YORK TAXABLE INCOME IS OVER FIVE HUNDRED THOUSAND DOLLARS,
 SEVEN AND ONE-HALF PERCENT OF NEW YORK  TAXABLE  INCOME  FROM  LONG-TERM
 CAPITAL GAIN, WHICH TAX SHALL BE PHASED IN PROPORTIONALLY OVER THE FIRST
 FIFTY  THOUSAND  DOLLARS  OF  NEW  YORK TAXABLE INCOME IN EXCESS OF FIVE
 HUNDRED THOUSAND DOLLARS; AND
   (B) IF NEW YORK TAXABLE INCOME IS OVER ONE  MILLION  DOLLARS,  FIFTEEN
 PERCENT  OF  NEW  YORK TAXABLE INCOME FROM LONG-TERM CAPITAL GAIN, WHICH
 TAX SHALL BE PHASED IN PROPORTIONALLY, BEGINNING WITH A  PHASE-IN  FRAC-
 TION  OF  FIFTY  PERCENT, OVER THE FIRST ONE HUNDRED THOUSAND DOLLARS OF
 NEW YORK TAXABLE INCOME IN EXCESS OF ONE MILLION DOLLARS; AND
   (3) IN THE CASE OF A RESIDENTIAL INDIVIDUAL WHO IS NOT A MARRIED INDI-
 VIDUAL OR WHO MAKES A SINGLE RETURN  JOINTLY  WITH  THEIR  SPOUSE  UNDER
 SUBSECTION  (B)  OF  SECTION  SIX HUNDRED FIFTY-ONE OF THIS ARTICLE OR A
 RESIDENT HEAD OF HOUSEHOLD OR A RESIDENT SURVIVING SPOUSE,  AND  IN  THE
 CASE OF A RESIDENT ESTATE AND TRUST:
   (A)  IF NEW YORK TAXABLE INCOME IS OVER FOUR HUNDRED THOUSAND DOLLARS,
 SEVEN AND ONE-HALF PERCENT OF NEW YORK  TAXABLE  INCOME  FROM  LONG-TERM
 CAPITAL GAIN, WHICH TAX SHALL BE PHASED IN PROPORTIONALLY OVER THE FIRST
 FIFTY  THOUSAND  DOLLARS  OF  NEW  YORK TAXABLE INCOME IN EXCESS OF FOUR
 HUNDRED THOUSAND DOLLARS; AND
   (B) IF NEW YORK TAXABLE INCOME IS OVER EIGHT HUNDRED THOUSAND DOLLARS,
 FIFTEEN PERCENT OF NEW YORK TAXABLE INCOME FROM LONG-TERM CAPITAL  GAIN,
 WHICH  TAX  SHALL BE PHASED IN PROPORTIONALLY, BEGINNING WITH A PHASE-IN
 FRACTION OF FIFTY PERCENT, OVER THE FIRST ONE HUNDRED  THOUSAND  DOLLARS
 OF NEW YORK TAXABLE INCOME IN EXCESS OF EIGHT HUNDRED THOUSAND DOLLARS.
   (D)  THIS SECTION SHALL BE ADMINISTERED, AND PENALTIES IMPOSED, IN THE
 SAME MANNER AS THE TAX IMPOSED UNDER SECTION SIX  HUNDRED  ONE  OF  THIS
 ARTICLE.
   (E)  THE  DEPARTMENT  MAY  ADOPT RULES AND REGULATIONS AS NECESSARY TO
 IMPLEMENT THE PROVISIONS OF THIS SECTION.
   § 2. This act shall take effect immediately.