Bill Text: NY S02162 | 2023-2024 | General Assembly | Introduced

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Bill Title: Imposes an additional tax on income attributable to long-term capital gain.

Spectrum: Partisan Bill (Democrat 24-0)

Status: (Introduced) 2024-01-03 - REFERRED TO BUDGET AND REVENUE [S02162 Detail]

Download: New_York-2023-S02162-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          2162

                               2023-2024 Regular Sessions

                    IN SENATE

                                    January 19, 2023
                                       ___________

        Introduced  by  Sens.  RIVERA, BRESLIN, BRISPORT, BROUK, CLEARE, COMRIE,
          COONEY, GIANARIS, GOUNARDES, HOYLMAN-SIGAL, JACKSON, LIU, MAY,  MYRIE,
          PARKER,  RAMOS, SALAZAR, SANDERS, SEPULVEDA, SERRANO -- 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 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:

     1    Section  1.  The  tax  law is amended by adding a new section 601-b to
     2  read as follows:
     3    § 601-b. Additional tax on low-taxed investment income. (a)  There  is
     4  hereby imposed, in addition to the tax imposed under section six hundred
     5  one of this article, an additional tax on low-taxed investment income.
     6    (b)  As  used  in this section, low-taxed investment income shall mean
     7  the amount of an individual's New York taxable  income  attributable  to
     8  long-term  capital  gain,  dividends,  or any other type of income taxed
     9  under the rates of section 1(h) of the internal  revenue  code,  or  any
    10  successor provision thereto.
    11    (c) The additional tax imposed under this section shall be equal to:
    12    (1)  in  the  case of a resident married individual who makes a single
    13  return jointly with the individual's  spouse  under  subsection  (b)  of
    14  section  six hundred fifty-one of this article, and in the case of every
    15  resident surviving spouse:
    16    (A) if New York taxable income is over five hundred thousand  dollars,
    17  seven  and  one-half  percent  of New York taxable income from long-term
    18  capital gain, which tax shall be phased in proportionally over the first
    19  fifty thousand dollars of New York taxable  income  in  excess  of  five
    20  hundred thousand dollars; and
    21    (B)  if  New  York taxable income is over one million dollars, fifteen
    22  percent of New York taxable income from long-term  capital  gain,  which

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02435-02-3
        S. 2162                             2

     1  tax  shall  be phased in proportionally, beginning with a phase-in frac-
     2  tion of fifty percent, over the first one hundred  thousand  dollars  of
     3  New York taxable income in excess of one million dollars; and
     4    (2) in the case of a resident head of household:
     5    (A)  if New York taxable income is over five hundred thousand dollars,
     6  seven and one-half percent of New York  taxable  income  from  long-term
     7  capital gain, which tax shall be phased in proportionally over the first
     8  fifty  thousand  dollars  of  New  York taxable income in excess of five
     9  hundred thousand dollars; and
    10    (B) if New York taxable income is over one  million  dollars,  fifteen
    11  percent  of  New  York taxable income from long-term capital gain, which
    12  tax shall be phased in proportionally, beginning with a  phase-in  frac-
    13  tion  of  fifty  percent, over the first one hundred thousand dollars of
    14  New York taxable income in excess of one million dollars; and
    15    (3) in the case of a residential individual who is not a married indi-
    16  vidual or who makes a single return  jointly  with  their  spouse  under
    17  subsection  (b)  of  section  six hundred fifty-one of this article or a
    18  resident head of household or a resident surviving spouse,  and  in  the
    19  case of a resident estate and trust:
    20    (A)  if New York taxable income is over four hundred thousand dollars,
    21  seven and one-half percent of New York  taxable  income  from  long-term
    22  capital gain, which tax shall be phased in proportionally over the first
    23  fifty  thousand  dollars  of  New  York taxable income in excess of four
    24  hundred thousand dollars; and
    25    (B) if New York taxable income is over eight hundred thousand dollars,
    26  fifteen percent of New York taxable income from long-term capital  gain,
    27  which  tax  shall be phased in proportionally, beginning with a phase-in
    28  fraction of fifty percent, over the first one hundred  thousand  dollars
    29  of New York taxable income in excess of eight hundred thousand dollars.
    30    (d)  This section shall be administered, and penalties imposed, in the
    31  same manner as the tax imposed under section six  hundred  one  of  this
    32  article.
    33    (e)  The  department  may  adopt rules and regulations as necessary to
    34  implement the provisions of this section.
    35    § 2. This act shall take effect immediately.