New York S 914: Establishes separate taxes on inheritance income and on gift income

Bill Text

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S00914 Summary:

BILL NOS00914 

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SAME ASSAME AS A02049

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SPONSORBRISPORT

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COSPNSRBROUK, CLEARE, COONEY, FERNANDEZ, GIANARIS, GONZALEZ, HINCHEY, HOYLMAN-SIGAL, JACKSON, LIU, MAY,
 MYRIE, PARKER, RAMOS, RIVERA, SALAZAR, SANDERS, SEPULVEDA, SERRANO, SKOUFIS, WEBB

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MLTSPNSR

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Amd Tax L, generally

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Relates to creating a separate tax on inheritance income, creating a separate tax on gift income, the computation of the estate tax, and creating a gift tax.

Go to top S00914 Actions:

BILL NOS00914 

&nbsp

01/08/2025REFERRED TO BUDGET AND REVENUE

01/07/2026REFERRED TO BUDGET AND REVENUE

Go to topS00914 Committee&nbspVotes:

Go to topS00914 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topS00914 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 914

 2025-2026 Regular Sessions

 IN SENATE

 (Prefiled)

 January 8, 2025
 ___________

 Introduced by Sens. BRISPORT, BROUK, CLEARE, COMRIE, COONEY, FERNANDEZ,
 GIANARIS, GONZALEZ, HOYLMAN-SIGAL, JACKSON, LIU, MAY, MYRIE, PARKER,
 RAMOS, RIVERA, SALAZAR, SANDERS, SEPULVEDA, SERRANO, SKOUFIS -- read
 twice and ordered printed, and when printed to be committed to the
 Committee on Budget and Revenue

 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:

 1 Section 1. The tax law is amended by adding two new sections 604 and
 2 604-a to read as follows:
 3 § 604. Separate tax on inheritance income. (a) Definitions. For the
 4 purposes of this section, the following terms shall have the following
 5 meanings:
 6 (1) Except as otherwise provided in subsection (c) of this section,
 7 "inheritance income" means any income excluded for federal tax purposes
 8 from federal adjusted gross income pursuant to subsection (a) of section
 9 one hundred two of the internal revenue code that is received from any
 10 estate, regardless of the residence of the decedent of such estate,
 11 after the federal estate tax has been paid on such income.
 12 (2) "Family member" means "member of the family" as such term is
 13 defined in paragraph (2) of subsection (e) of section two thousand thir-
 14 ty-two-A of the internal revenue code.
 15 (b) Imposition of separate tax. (1) In addition to any other tax
 16 imposed by this article, there is hereby imposed for each taxable year a
 17 separate tax on the total amount of inheritance income received from any
 18 estate of a decedent during such taxable year by any individual who was
 19 a New York state resident on the date of death of such decedent.

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD01518-01-5

 S. 914 2

 1 (2) The tax imposed by this subsection shall be computed as provided
 2 in section six hundred twenty-four-a of this article with respect to
 3 residents and section six hundred thirty-seven-a of this article with
 4 respect to nonresidents and part-year residents.
 5 (c) Exclusions from inheritance income. (1) Educational or medical
 6 expenses. A qualified transfer, as such term is defined in paragraph (2)
 7 of subsection (e) of section two thousand five hundred three of the
 8 internal revenue code, shall not be considered inheritance income for
 9 purposes of this section.
 10 (2) Spousal transfers. Transfers of property from a spouse shall not
 11 be considered inheritance income for purposes of this section.
 12 (3) Retirement accounts. Transfers of property consisting of pensions,
 13 health savings accounts, or retirement accounts established pursuant to
 14 sections four hundred one, four hundred three, four hundred eight, four
 15 hundred eight-A, or four hundred fifty-seven of the internal revenue
 16 code shall not be considered inheritance income for purposes of this
 17 section.
 18 (4) Certain residences. An individual subject to the tax imposed by
 19 this section may claim not more than one of the following exclusions
 20 from inheritance income, and may not claim either such exclusion for
 21 more than one transfer of real property:
 22 (A) Primary residences. F