STATE OF NEW YORK
________________________________________________________________________
2162
2023-2024 Regular Sessions
IN SENATE
January 19, 2023
___________
Introduced by Sens. RIVERA, BRESLIN, BRISPORT, BROUK, CLEARE, COMRIE,
COONEY, GIANARIS, GOUNARDES, HOYLMAN-SIGAL, JACKSON, LIU, MAY, MYRIE,
PARKER, RAMOS, SALAZAR, SANDERS, SEPULVEDA, SERRANO -- read twice and
ordered printed, and when printed to be committed to the Committee on
Budget and Revenue
AN ACT to amend the tax law, in relation to imposing an additional tax
on income attributable to long-term capital gain
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 601-b to
2 read as follows:
3 § 601-b. Additional tax on low-taxed investment income. (a) There is
4 hereby imposed, in addition to the tax imposed under section six hundred
5 one of this article, an additional tax on low-taxed investment income.
6 (b) As used in this section, low-taxed investment income shall mean
7 the amount of an individual's New York taxable income attributable to
8 long-term capital gain, dividends, or any other type of income taxed
9 under the rates of section 1(h) of the internal revenue code, or any
10 successor provision thereto.
11 (c) The additional tax imposed under this section shall be equal to:
12 (1) in the case of a resident married individual who makes a single
13 return jointly with the individual's spouse under subsection (b) of
14 section six hundred fifty-one of this article, and in the case of every
15 resident surviving spouse:
16 (A) if New York taxable income is over five hundred thousand dollars,
17 seven and one-half percent of New York taxable income from long-term
18 capital gain, which tax shall be phased in proportionally over the first
19 fifty thousand dollars of New York taxable income in excess of five
20 hundred thousand dollars; and
21 (B) if New York taxable income is over one million dollars, fifteen
22 percent of New York taxable income from long-term capital gain, which
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD02435-02-3
S. 2162 2
1 tax shall be phased in proportionally, beginning with a phase-in frac-
2 tion of fifty percent, over the first one hundred thousand dollars of
3 New York taxable income in excess of one million dollars; and
4 (2) in the case of a resident head of household:
5 (A) if New York taxable income is over five hundred thousand dollars,
6 seven and one-half percent of New York taxable income from long-term
7 capital gain, which tax shall be phased in proportionally over the first
8 fifty thousand dollars of New York taxable income in excess of five
9 hundred thousand dollars; and
10 (B) if New York taxable income is over one million dollars, fifteen
11 percent of New York taxable income from long-term capital gain, which
12 tax shall be phased in proportionally, beginning with a phase-in frac-
13 tion of fifty percent, over the first one hundred thousand dollars of
14 New York taxable income in excess of one million dollars; and
15 (3) in the case of a residential individual who is not a married indi-
16 vidual or who makes a single return jointly with their spouse under
17 subsection (b) of section six hundred fifty-one of this article or a
18 resident head of household or a resident surviving spouse, and in the
19 case of a resident estate and trust:
20 (A) if New York taxable income is over four hundred thousand dollars,
21 seven and one-half percent of New York taxable income from long-term
22 capital gain, which tax shall be phased in proportionally over the first
23 fifty thousand dollars of New York taxable income in excess of four
24 hundred thousand dollars; and
25 (B) if New York taxable income is over eight hundred thousand dollars,
26 fifteen percent of New York taxable income from long-term capital gain,
27 which tax shall be phased in proportionally, beginning with a phase-in
28 fraction of fifty percent, over the first one hundred thousand dollars
29 of New York taxable income in excess of eight hundred thousand dollars.
30 (d) This section shall be administered, and penalties imposed, in the
31 same manner as the tax imposed under section six hundred one of this
32 article.
33 (e) The department may adopt rules and regulations as necessary to
34 implement the provisions of this section.
35 § 2. This act shall take effect immediately.
