Bill Text: NY A05627 | 2011-2012 | General Assembly | Introduced

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Bill Title: Enacts a tax exemption for capital gains on the sales of new businesses and the initial public offerings of the stock of new businesses that are located in New York.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2012-01-04 - referred to ways and means [A05627 Detail]

Download: New_York-2011-A05627-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         5627
                              2011-2012 Regular Sessions
                                 I N  A S S E M B L Y
                                   February 24, 2011
                                      ___________
       Introduced by M. of A. MURRAY -- read once and referred to the Committee
         on Ways and Means
       AN  ACT  to  amend  the tax law, in relation to establishing the capital
         gains modification
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section  1.  Section  612  of  the  tax law is amended by adding a new
    2  subsection (w) to read as follows:
    3    (W) CAPITAL GAINS MODIFICATION.
    4    1. FOR THE PURPOSES OF  THIS  SUBSECTION,  THE  FOLLOWING  DEFINITIONS
    5  SHALL APPLY:
    6    (A) "CAPITAL GAIN" MEANS THE GAIN OR PROFITS REALIZED FROM THE SALE OF
    7  ANY  NEW  COMPANY,  AS  THAT TERM IS DEFINED BY SUBPARAGRAPH (C) OF THIS
    8  PARAGRAPH, OR THE GAIN FROM THE INITIAL  PUBLIC  OFFERING  OF  STOCK  BY
    9  EARLY-STAGE INVESTORS OR COMPANY FOUNDERS OF ANY NEW COMPANY.
   10    (B)  "LIQUIDITY  EVENT" MEANS THE SALE OF A NEW COMPANY OR THE INITIAL
   11  PUBLIC OFFERING OF STOCK OF ANY NEW COMPANY.
   12    (C) "NEW COMPANY" MEANS ANY CORPORATION OR  PARTNERSHIP  ORGANIZED  OR
   13  FORMED  UNDER  THE LAWS OF NEW YORK STATE AFTER JANUARY FIRST, TWO THOU-
   14  SAND TWELVE AND LOCATED THEREIN. ANY CORPORATION  OR  PARTNERSHIP  SHALL
   15  CEASE  TO  QUALIFY FOR THE EXEMPTION PROVIDED FOR IN THIS SUBSECTION IF,
   16  BEFORE THE LIQUIDITY EVENT, AS THAT TERM IS DEFINED BY SUBPARAGRAPH  (B)
   17  OF  THIS  PARAGRAPH, THE PRINCIPAL PLACE OF BUSINESS OF SUCH CORPORATION
   18  OR PARTNERSHIP MOVES OUT OF NEW YORK STATE.
   19    2. THE TAXPAYER MAY SUBTRACT FROM HIS OR HER  FEDERAL  ADJUSTED  GROSS
   20  INCOME ANY CAPITAL GAINS AS DEFINED BY SUBPARAGRAPH (A) OF PARAGRAPH ONE
   21  OF  THIS  SUBSECTION  (BUT NOT AN AMOUNT THAT WILL REDUCE THE PORTION OF
   22  SUCH GAIN INCLUDED IN HIS OR HER NEW YORK INCOME BELOW ZERO).
   23    S 2. This act shall take effect January  1,  2012,  provided,  however
   24  that  effective immediately, the department may prescribe such rules and
   25  regulations as may be necessary to carry out the purposes of this act.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD08382-01-1