New York 2025-2026 Regular Session

New York Senate Bill S00914

Introduced
1/8/25  
Refer
1/8/25  

Caption

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.

Summary

Bill S00914 proposes significant changes to New York's tax law by establishing separate taxes on inheritance income and gift income. It introduces a new framework for taxing these forms of income, which includes various exclusions and deferrals aimed at easing the financial burden on individuals receiving inheritances or gifts. The bill outlines specific definitions for inheritance and gift income, sets tax rates based on income brackets, and allows for credits against these taxes based on estate taxes already paid. This legislation aims to modernize the state's approach to taxation on wealth transfers, reflecting a shift towards a more progressive tax structure.

Impact

The implementation of this bill will alter the existing tax landscape in New York by introducing new tax obligations for individuals receiving inheritance and gift income. It will affect residents, non-residents, and part-year residents differently, with specific provisions designed to exempt certain transfers, such as those related to primary residences and family-owned businesses. The bill also modifies the estate tax computation, potentially impacting estate planning strategies for residents. Overall, it aims to ensure that wealth transfers are taxed more equitably while providing relief for specific circumstances.

Sentiment

The sentiment surrounding Bill S00914 appears to be mixed, with supporters advocating for a fairer taxation system that addresses wealth inequality, while opponents express concerns about the potential financial burden on families receiving inheritances and gifts. The lack of voting history and committee discussions indicates that the bill is still in the early stages of consideration, and further debate is expected as it moves through the legislative process.

Contention

Notable points of contention include the potential impact of the new taxes on middle-class families who may inherit property or receive gifts, as well as concerns about the complexity of the tax code introduced by the bill. Supporters argue that the exclusions and deferrals will mitigate these impacts, while critics worry that the new taxes could discourage wealth accumulation and transfer within families. The debate is likely to focus on the balance between generating state revenue and protecting family assets.

Companion Bills

NY A02049

Same As 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.

Previously Filed As

NY S02782

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.

NY A03193

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.

NY A02049

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.

NY SB376

Incomplete gift nongrantor trusts: Personal Income Tax Law.

NY HB3603

Revenue and taxation; income tax; taxable income; business entities; computation; effective date.

NY S2577

Expands eligibility under New Jersey earned income tax credit program to allow taxpayers who are victims of domestic abuse to claim credit with filing status of married filing separately.

NY A2243

Expands eligibility under New Jersey earned income tax credit program to allow taxpayers who are victims of domestic abuse to claim credit with filing status of married filing separately.

NY HB1040

Revenue and taxation; income tax; modifying certain dollar amount for income tax liability computation; joint filing; effective date.

NY HB06461

An Act Eliminating The Estate And Gift Taxes And The Qualifying Income Thresholds For Certain Personal Income Tax Deductions.

NY HB657

Income Taxes; to provide a one-time refundable income tax credit to qualified taxpayers

Similar Bills

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NJ A1315

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TX SB1559

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DE HB147

An Act To Amend Title 12, Title 18, Title 25, And Title 30 Of The Delaware Code Relating To The Uniform Real Property Transfer On Death Act.

NV AB62

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VA HB1871

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MS SB2344

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MS SB2226

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