Bill Text: NY S03401 | 2019-2020 | General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relates to investment income and capital gains on investments deferred or excluded under 26 U.S.C. section 1400-z-2.

Spectrum: Partisan Bill (Democrat 10-0)

Status: (Introduced - Dead) 2020-02-13 - PRINT NUMBER 3401B [S03401 Detail]

Download: New_York-2019-S03401-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          3401
                               2019-2020 Regular Sessions
                    IN SENATE
                                    February 6, 2019
                                       ___________
        Introduced  by  Sens. GIANARIS, RAMOS -- read twice and ordered printed,
          and when printed to be committed to the Committee on Budget and Reven-
          ue
        AN ACT to amend the tax law and the administrative code of the  city  of
          New York, in relation to investment income
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Paragraph (a) of subdivision 6 of section 208  of  the  tax
     2  law,  as  amended  by  section  5 of part T of chapter 59 of the laws of
     3  2015, is amended to read as follows:
     4    (a) (i) The term "investment income" means income,  including  capital
     5  gains  in  excess  of  capital  losses,  from investment capital, to the
     6  extent included in  computing  entire  net  income,  less,  (A)  in  the
     7  discretion  of  the  commissioner,  any interest deductions allowable in
     8  computing entire net income which are directly or  indirectly  attribut-
     9  able  to  investment capital or investment income, (B) any capital gains
    10  deferred or excluded under 26 U.S.C. §1400-z-2, provided, however,  that
    11  in no case shall investment income exceed entire net income. (ii) If the
    12  amount  of interest deductions subtracted under subparagraph (i) of this
    13  paragraph exceeds investment income, the  excess  of  such  amount  over
    14  investment  income must be added back to entire net income. (iii) If the
    15  taxpayer's investment income determined without regard to  the  interest
    16  deductions subtracted under subparagraph (i) of this paragraph comprises
    17  more  than eight percent of the taxpayer's entire net income, investment
    18  income determined without regard  to  such  interest  deductions  cannot
    19  exceed eight percent of the taxpayer's entire net income.
    20    §  2. Paragraph (a) of subdivision 5 of section 11-652 of the adminis-
    21  trative code of the city of New York, as added by section 1 of part D of
    22  chapter 60 of the laws of 2015, is amended to read as follows:
    23    (a) (i) The term "investment income" means income,  including  capital
    24  gains  in  excess  of  capital  losses,  from investment capital, to the
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09591-01-9
        S. 3401                             2
     1  extent included in  computing  entire  net  income,  less,  (A)  in  the
     2  discretion  of  the  commissioner  of  finance,  any interest deductions
     3  allowable in computing entire net income which are directly or indirect-
     4  ly  attributable  to  investment  capital  or investment income, (B) any
     5  capital gains deferred or excluded under 26 U.S.C  §1400-z-2,  provided,
     6  however,  that  in  no  case  shall  investment income exceed entire net
     7  income.
     8    (ii) If the amount of interest deductions  subtracted  under  subpara-
     9  graph  (i)  of  this  paragraph exceeds investment income, the excess of
    10  such amount over investment income must be  added  back  to  entire  net
    11  income.
    12    (iii) If the taxpayer's investment income determined without regard to
    13  the  interest deductions subtracted under subparagraph (i) of this para-
    14  graph comprises more than eight percent of  the  taxpayer's  entire  net
    15  income,  investment  income  determined  without regard to such interest
    16  deductions cannot exceed eight percent  of  the  taxpayer's  entire  net
    17  income.
    18    § 3. This act shall take effect immediately and shall apply to taxable
    19  years beginning on and after January 1, 2018.