Bill > A04643

This bill creates a separate tax on inheritance income and gift income, modifies the computation of the estate tax, and creates a new gift tax. Specifically, the bill imposes a separate tax on inheritance income received by New York residents, with graduated rates ranging from 0% to 50% depending on the amount of inheritance income. There are certain exclusions from inheritance income, such as for transfers to family members, primary residences, and family farms. The bill also allows for deferrals of the inheritance income tax in certain circumstances, such as when the inheritance includes a primary residence or a family-owned business. For gift income received by New York residents, the bill imposes a separate tax, also with graduated rates ranging from 0% to 50% depending on the amount of gift income. Similar exclusions and deferrals apply. The bill also modifies the computation of the estate tax, including by changing the rates and brackets, and allowing a credit against the estate tax for any lifetime gift taxes paid. Finally, the bill creates a new gift tax, with rates ranging from 0% to 50% depending on the amount of taxable gifts made by a donor.