Bill Text: NY A06017 | 2011-2012 | General Assembly | Introduced


Bill Title: Provides for subtraction from federal adjusted gross income 75 percent of net investment income so that New York state taxpayers would receive a tangible tax benefit.

Spectrum: Partisan Bill (Republican 4-0)

Status: (Introduced - Dead) 2012-06-19 - held for consideration in ways and means [A06017 Detail]

Download: New_York-2011-A06017-Introduced.html
                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         6017
                              2011-2012 Regular Sessions
                                 I N  A S S E M B L Y
                                     March 3, 2011
                                      ___________
       Introduced  by  M. of A. BURLING, FINCH, MONTESANO -- Multi-Sponsored by
         -- M. of A. KOLB -- read once and referred to the  Committee  on  Ways
         and Means
       AN ACT to amend the tax law, in relation to providing a subtraction from
         federal  adjusted gross income for seventy-five percent of net invest-
         ment income
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section  1. Subsection (c) of section 612 of the tax law is amended by
    2  adding a new paragraph 17 to read as follows:
    3    (17) FOR ANY TAXABLE YEAR, THE AMOUNT EQUAL TO SEVENTY-FIVE PERCENT OF
    4  A TAXPAYER'S NET INVESTMENT INCOME. A TAXPAYER'S NET  INVESTMENT  INCOME
    5  SHALL BE CALCULATED PURSUANT TO THE FOLLOWING DEFINITIONS:
    6    (A)  FOR  PURPOSES  OF THIS CHAPTER, THE TERM "INVESTMENT ASSET" MEANS
    7  PROPERTY HELD BY THE TAXPAYER (WHETHER OR NOT CONNECTED WITH HIS OR  HER
    8  TRADE OR BUSINESS), BUT DOES NOT INCLUDE:
    9    (I)  STOCK  IN TRADE OF THE TAXPAYER OR OTHER PROPERTY OF A KIND WHICH
   10  WOULD PROPERLY BE INCLUDED IN THE INVENTORY OF THE TAXPAYER IF  ON  HAND
   11  AT  THE  CLOSE  OF  THE  TAXABLE  YEAR, OR PROPERTY HELD BY THE TAXPAYER
   12  PRIMARILY FOR SALE TO CUSTOMERS IN THE ORDINARY COURSE  OF  HIS  OR  HER
   13  TRADE OR BUSINESS;
   14    (II)  PROPERTY,  USED  IN  HIS OR HER TRADE OR BUSINESS OF A CHARACTER
   15  WHICH IS SUBJECT TO THE ALLOWANCE FOR DEPRECIATION PROVIDED  IN  SECTION
   16  167  OF THE INTERNAL REVENUE CODE, OR REAL PROPERTY USED IN HIS TRADE OR
   17  BUSINESS;
   18    (III) A COPYRIGHT, A LITERARY, MUSICAL,  OR  ARTISTIC  COMPOSITION,  A
   19  LETTER OR MEMORANDUM, OR SIMILAR PROPERTY, HELD BY:
   20    (1) A TAXPAYER WHOSE PERSONAL EFFORTS CREATED SUCH PROPERTY,
   21    (2)  IN  THE  CASE  OF  A  LETTER,  MEMORANDUM, OR SIMILAR PROPERTY, A
   22  TAXPAYER FOR WHOM SUCH PROPERTY WAS PREPARED OR PRODUCED,
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD03189-01-1
       A. 6017                             2
    1    (3) A TAXPAYER IN WHOSE HANDS THE BASIS OF  SUCH  PROPERTY  IS  DETER-
    2  MINED,  FOR  PURPOSES  OF  DETERMINING  GAIN FROM A SALE OR EXCHANGE, IN
    3  WHOLE OR PART BY REFERENCE TO THE BASIS OF SUCH PROPERTY IN THE HANDS OF
    4  A TAXPAYER DESCRIBED IN SUBCLAUSE ONE OR TWO OF THIS CLAUSE; OR
    5    (IV)  ACCOUNTS  OR NOTES RECEIVABLE ACQUIRED IN THE ORDINARY COURSE OF
    6  TRADE OR BUSINESS FOR SERVICES RENDERED OR FROM  THE  SALE  OF  PROPERTY
    7  DESCRIBED IN CLAUSE (I) OF THIS SUBPARAGRAPH.
    8    (B) FOR PURPOSES OF THIS CHAPTER:
    9    (I)  SHORT-TERM  INVESTMENT  INCOME.  THE  TERM "SHORT-TERM INVESTMENT
   10  INCOME" MEANS GAIN FROM THE SALE OR EXCHANGE  OF  ANY  INVESTMENT  ASSET
   11  HELD FOR NOT MORE THAN ONE YEAR, IF AND TO THE EXTENT SUCH GAIN IS TAKEN
   12  INTO ACCOUNT IN COMPUTING TAXABLE INCOME.
   13    (II) SHORT-TERM INVESTMENT LOSS. THE TERM "SHORT-TERM INVESTMENT LOSS"
   14  MEANS LOSS FROM THE SALE OR EXCHANGE OF AN INVESTMENT ASSET HELD FOR NOT
   15  MORE  THAN  ONE  YEAR, IF AND TO THE EXTENT THAT SUCH LOSS IS TAKEN INTO
   16  ACCOUNT IN COMPUTING GROSS INCOME.
   17    (III) LONG-TERM INVESTMENT  INCOME.  THE  TERM  "LONG-TERM  INVESTMENT
   18  INCOME" MEANS GAIN FROM THE SALE OR EXCHANGE OF AN INVESTMENT ASSET HELD
   19  FOR  MORE  THAN  ONE  YEAR, IF AND TO THE EXTENT SUCH GAIN IS TAKEN INTO
   20  ACCOUNT IN COMPUTING GROSS INCOME.
   21    (IV) LONG-TERM INVESTMENT LOSS. THE TERM "LONG-TERM  INVESTMENT  LOSS"
   22  MEANS  LOSS  FROM  THE  SALE OR EXCHANGE OF AN INVESTMENT ASSET HELD FOR
   23  MORE THAN ONE YEAR, IF AND TO THE EXTENT THAT SUCH LOSS  IS  TAKEN  INTO
   24  ACCOUNT IN COMPUTING TAXABLE INCOME.
   25    (V) NET SHORT-TERM INVESTMENT INCOME. THE TERM "NET SHORT-TERM INVEST-
   26  MENT  INCOME"  MEANS  THE EXCESS OF SHORT-TERM INVESTMENT INCOME FOR THE
   27  TAXABLE YEAR OVER THE SHORT-TERM INVESTMENT LOSSES FOR SUCH YEAR.
   28    (VI) NET SHORT-TERM INVESTMENT LOSS. THE TERM "NET SHORT-TERM  INVEST-
   29  MENT  LOSS"  MEANS  THE  EXCESS  OF SHORT-TERM INVESTMENT LOSSES FOR THE
   30  TAXABLE YEAR OVER THE SHORT-TERM INVESTMENT INCOME FOR SUCH YEAR.
   31    (VII) NET LONG-TERM INVESTMENT INCOME. THE TERM "NET LONG-TERM INVEST-
   32  MENT INCOME" MEANS THE EXCESS OF LONG-TERM  INVESTMENT  INCOME  FOR  THE
   33  TAXABLE YEAR OVER THE LONG-TERM INVESTMENT LOSSES FOR SUCH YEAR.
   34    (VIII)  NET LONG-TERM INVESTMENT LOSS. THE TERM "NET LONG-TERM INVEST-
   35  MENT LOSS" MEANS THE EXCESS OF LONG-TERM INVESTMENT LOSSES FOR THE TAXA-
   36  BLE YEAR OVER THE LONG-TERM INVESTMENT INCOME FOR SUCH YEAR.
   37    (IX) INVESTMENT NET INCOME. THE TERM "INVESTMENT NET INCOME" MEANS THE
   38  EXCESS OF THE GAINS FROM SALES OR EXCHANGES OF  INVESTMENT  ASSETS  OVER
   39  THE LOSSES FROM SUCH SALES OR EXCHANGES.
   40    (X)  NET  INVESTMENT  LOSS.  THE  TERM "NET INVESTMENT LOSS" MEANS THE
   41  EXCESS OF THE LOSSES FROM SALES OR EXCHANGES OF INVESTMENT  ASSETS  OVER
   42  THE  SUM ALLOWED UNDER SECTION 1211 OF THE INTERNAL REVENUE CODE. IN THE
   43  CASE OF A CORPORATION, FOR THE PURPOSE OF DETERMINING LOSSES UNDER  THIS
   44  PARAGRAPH,  AMOUNTS WHICH ARE SHORT-TERM INVESTMENT LOSSES UNDER SECTION
   45  1212 OF THE INTERNAL REVENUE CODE SHALL BE EXCLUDED.
   46    (XI) NET INVESTMENT INCOME. THE TERM "NET INVESTMENT INCOME" MEANS THE
   47  EXCESS OF THE NET LONG-TERM INVESTMENT INCOME FOR THE TAXABLE YEAR  OVER
   48  THE NET SHORT-TERM INVESTMENT LOSS FOR SUCH YEAR.
   49    S  2. This act shall take effect on the first of January next succeed-
   50  ing the date on which it shall have become a law.
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