Bill > A03632

This bill establishes a new "billionaire mark-to-market tax" in New York that would require individual taxpayers with net assets of one billion dollars or more to recognize gains or losses as if they had sold all their assets at fair market value on December 31, 2024, with the resulting net gains to be included in their 2025 tax year income. The tax applies to a wide range of assets including real and personal property, investments, and assets owned by spouses, minor children, and trusts, and uses a "phase-in cap" where only a quarter of the net assets over one billion dollars would be subject to taxation. Taxpayers can choose to pay the entire tax with their 2025 return or spread the payment over ten annual installments with a non-deductible deferral charge. The bill includes provisions for credits if gains were previously taxed in other jurisdictions, detailed reporting requirements for different asset categories, and safeguards to prevent tax avoidance. The fair market value of assets would be determined by what a willing buyer and seller would agree to, disregarding any intentional value-reduction features. The tax is designed to apply to billionaire residents of New York, with specific identification methods including published billionaire lists and high-income taxpayers, and includes provisions to ensure the tax's implementation even if parts of the law are challenged.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A3632