Bill Text: NY S04310 | 2013-2014 | General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Makes a reduced rate of interest applicable to certain additions of tax resulting from discovery after filing an estate tax return of certain assets belonging to the decedent held by the state comptroller as abandoned property.

Sponsorship: Partisan Bill (Republican 1)

Status: (Introduced - Dead) 2013-06-20 - SUBSTITUTED BY A5960A [S04310 Detail]

Download: New_York-2013-S04310-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         4310
                              2013-2014 Regular Sessions
                                   I N  S E N A T E
                                    March 20, 2013
                                      ___________
       Introduced  by Sen. MARCELLINO -- (at request of the Department of Taxa-
         tion and Finance) -- read twice and ordered printed, and when  printed
         to  be  committed  to  the  Committee on Investigations and Government
         Operations
       AN ACT to amend the tax law, in relation to making  a  reduced  rate  of
         interest  applicable  to  certain  additions  to tax resulting from an
         executor's discovery after the date for filing an estate tax return of
         certain assets belonging to the decedent held by the state comptroller
         as abandoned property; and to amend chapter 389 of the  laws  of  1997
         amending  the  tax  law and other laws relating to the estate and gift
         tax, and chapter 190 of the laws of 1990 amending the tax law relating
         to certain taxes, fees, and other impositions, in relation to rates of
         interest for certain estates
         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 991 to read
    2  as follows:
    3    S 991. INTEREST ACCRUAL RELIEF  FOR  ADDITIONAL  TAX  ATTRIBUTABLE  TO
    4  NEWLY-DISCOVERED ABANDONED PROPERTY. NOTWITHSTANDING ANY OTHER PROVISION
    5  OF  LAW,  IN COMPUTING THE INTEREST DUE ON AN ADDITION TO TAX OWED BY AN
    6  ESTATE ATTRIBUTABLE TO THE  INCLUSION  IN  THE  ESTATE'S  FEDERAL  GROSS
    7  ESTATE  OF  AN  ASSET  HELD BY THE COMPTROLLER AS ABANDONED PROPERTY AND
    8  ACCRUING INTEREST PURSUANT TO SECTION FOURTEEN HUNDRED FIVE OF THE ABAN-
    9  DONED PROPERTY LAW, NO INTEREST SHALL ACCRUE FOR ANY PERIOD OF  TIME  IN
   10  WHICH  THE  COMPTROLLER  CEASED TO PAY INTEREST ON THE ASSET PURSUANT TO
   11  THE FIVE-YEAR LIMITATION IN SUBDIVISION ONE OF SECTION FOURTEEN  HUNDRED
   12  FIVE OF THE ABANDONED PROPERTY LAW IF, AS OF THE DATE PRESCRIBED FOR THE
   13  FILING  OF  A  RETURN REQUIRED BY THIS ARTICLE, INCLUDING ANY EXTENSIONS
   14  GRANTED FOR FILING, INFORMATION PERTAINING TO  THE  ASSET  HAD  NOT  YET
   15  APPEARED  IN  THE  PUBLIC  RECORDS  OF ABANDONED PROPERTY REQUIRED TO BE
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD09097-01-3
       S. 4310                             2
    1  MAINTAINED BY THE COMPTROLLER PURSUANT TO SECTION FOURTEEN  HUNDRED  ONE
    2  OF THE ABANDONED PROPERTY LAW.
    3    S  2. Section 35 of part A of chapter 389 of the laws of 1997 amending
    4  the tax law and other laws relating to  the  estate  and  gift  tax,  is
    5  amended to read as follows:
    6    S  35.    All  provisions  of  law repealed or deleted by sections one
    7  through thirty-four of this act, and of the regulations  adopted  there-
    8  under,  in respect to the assessment, payment, determination, collection
    9  and refund of taxes or other impositions imposed thereunder, the  filing
   10  of returns and preservation of records for the purposes of such taxes or
   11  impositions,  the  secrecy  of  returns, and the disposition of revenues
   12  shall continue in effect with respect to all such taxes  or  impositions
   13  accrued  up to the effective date of this section[.]; PROVIDED, HOWEVER,
   14  THAT, WITH REGARD TO AN ADDITION TO TAX OWNED BY AN ESTATE  ATTRIBUTABLE
   15  TO  THE  INCLUSION  IN THE ESTATE'S GROSS ESTATE OF AN ASSET HELD BY THE
   16  STATE COMPTROLLER AS ABANDONED PROPERTY, NO INTEREST  SHALL  ACCRUE  FOR
   17  ANY PERIOD OF TIME IN WHICH THE STATE COMPTROLLER CEASED TO PAY INTEREST
   18  ON  THE  ASSET  PURSUANT  TO  THE FIVE-YEAR LIMITATION ON THE PAYMENT OF
   19  INTEREST IN SUBDIVISION 1 OF SECTION 1405 OF THE ABANDONED PROPERTY LAW.
   20  THIS CAP ON THE PERIOD OF TIME DURING WHICH INTEREST WILL  ACCRUE  SHALL
   21  APPLY  ONLY  IF,  AS  OF THE DATE PRESCRIBED FOR THE FILING OF A RETURN,
   22  INCLUDING ANY EXTENSIONS GRANTED FOR FILING, INFORMATION  PERTAINING  TO
   23  THE  ASSET HAD NOT YET APPEARED IN THE PUBLIC RECORDS OF ABANDONED PROP-
   24  ERTY REQUIRED TO BE MAINTAINED BY  THE  STATE  COMPTROLLER  PURSUANT  TO
   25  SECTION 1401 OF THE ABANDONED PROPERTY LAW.
   26    S  3.  Paragraph 1 of subdivision (i) of section 385 of chapter 190 of
   27  the laws of 1990 amending the tax law relating to certain  taxes,  fees,
   28  and  other impositions, as amended by section 71 of part A of chapter 56
   29  of the laws of 1998, is amended to read as follows:
   30    (1) All provisions of articles 10-A, 10-B, 10-C and section 962 of the
   31  tax law (as repealed by section  one  hundred  eight  of  this  act)  in
   32  respect  to  the  imposition, rates, appraisal and valuation of estates,
   33  filing of tax, assessment, determination, payment, collection and refund
   34  of the taxes imposed or administered thereunder, the filing  of  reports
   35  and  returns,  the  final federal determinations, imposition of interest
   36  and penalties, the jurisdiction of surrogates' courts, provisions relat-
   37  ing to appeals and the disposition of revenues and fees  shall  continue
   38  in effect with respect to all such taxes accrued on or before the effec-
   39  tive  date  of  this  act,  except that (A) section 249-u of the tax law
   40  shall not be applicable after the effective date of this act,  (B)  with
   41  respect  to any of the provisions of article 10-C thereof relating to an
   42  appraiser, the appraiser shall  be  the  commissioner  of  taxation  and
   43  finance  or  his  designee on and after such date, and (C) the fee for a
   44  release of lien imposed by subdivision c of section  249-bb,  which  was
   45  applicable  to  estates  of decedents subject to tax under article 26 of
   46  the tax law by reason of section 962 thereof, shall not  be  applicable;
   47  PROVIDED  THAT,  WITH  REGARD  TO  AN  ADDITION TO TAX OWED BY AN ESTATE
   48  ATTRIBUTABLE TO THE INCLUSION IN THE ESTATE'S FEDERAL GROSS ESTATE OF AN
   49  ASSET HELD BY THE STATE COMPTROLLER AS ABANDONED PROPERTY,  NO  INTEREST
   50  SHALL  ACCRUE  FOR  ANY  PERIOD  OF  TIME IN WHICH THE STATE COMPTROLLER
   51  CEASED TO PAY INTEREST ON THE ASSET PURSUANT TO THE FIVE-YEAR LIMITATION
   52  ON THE PAYMENT OF INTEREST IN SUBDIVISION 1 OF SECTION 1405 OF THE ABAN-
   53  DONED PROPERTY LAW. THIS CAP ON THE PERIOD OF TIME DURING WHICH INTEREST
   54  WILL ACCRUE SHALL APPLY ONLY IF, AS  OF  THE  DATE  PRESCRIBED  FOR  THE
   55  FILING  OF A RETURN, INCLUDING ANY EXTENSIONS GRANTED FOR FILING, INFOR-
   56  MATION PERTAINING TO THE ASSET  HAD  NOT  YET  APPEARED  IN  THE  PUBLIC
       S. 4310                             3
    1  RECORDS  OF  ABANDONED  PROPERTY  REQUIRED TO BE MAINTAINED BY THE STATE
    2  COMPTROLLER PURSUANT TO SECTION 1401 OF THE ABANDONED PROPERTY LAW;
    3    S 4. This act shall take effect immediately and shall apply to estates
    4  of decedents dying on or after June 1, 1944, provided that no refunds or
    5  credit shall be granted as a result of any provision of this act.