Bill > A02049

This bill introduces comprehensive changes to New York's tax law by creating new taxes on inheritance and gift income while modifying existing estate tax provisions. Specifically, the bill establishes a separate tax on inheritance income for New York residents, with graduated tax rates ranging from 0% to 50% depending on the amount of inheritance received. The tax includes several important exclusions, such as educational or medical expenses, spousal transfers, retirement accounts, and certain family farm transfers. The bill also provides liquidity deferrals for primary residences and family-owned businesses, allowing taxpayers to postpone tax payments under specific circumstances. Additionally, the legislation creates a new gift tax for New York residents and nonresidents, with similar graduated tax rates and exclusions, set to take effect on January 1, 2026. The bill modifies the existing estate tax calculation, increasing the basic exclusion amount and introducing a credit for lifetime gift taxes paid. These changes aim to create a more comprehensive and progressive tax system for wealth transfers in New York State, with provisions designed to provide some relief for family-owned businesses and primary residences.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A2049