A 676: Imposes an additional tax on income attributable to long-term capital gain.

  
  STATE OF NEW YORK ________________________________________________________________________ 676 2025-2026 Regular Sessions  IN ASSEMBLY (Prefiled) January 8, 2025 ___________ Introduced by M. of A. KIM, GONZALEZ-ROJAS, SHRESTHA, LEVENBERG, RAGA, MAMDANI, FORREST, R. CARROLL, ROSENTHAL, JACKSON, SIMONE, REYES, SEAWRIGHT, BICHOTTE HERMELYN, MEEKS, SAYEGH, SHIMSKY, EPSTEIN, DAVILA, KELLES -- Multi-Sponsored by -- M. of A. SIMON -- read once and referred to the Committee on Ways and Means 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 EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD00237-01-5 
 A. 676 2 1 (B) if New York taxable income is over one million dollars, fifteen 2 percent of New York taxable income from long-term capital gain, which 3 tax shall be phased in proportionally, beginning with a phase-in frac- 4 tion of fifty percent, over the first one hundred thousand dollars of 5 New York taxable income in excess of one million dollars; and 6 (2) in the case of a resident head of household: 7 (A) if New York taxable income is over five hundred thousand dollars, 8 seven and one-half percent of New York taxable income from long-term 9 capital gain, which tax shall be phased in proportionally over the first 10 fifty thousand dollars of New York taxable income in excess of five 11 hundred thousand dollars; and 12 (B) if New York taxable income is over one million dollars, fifteen 13 percent of New York taxable income from long-term capital gain, which 14 tax shall be phased in proportionally, beginning with a phase-in frac- 15 tion of fifty percent, over the first one hundred thousand dollars of 16 New York taxable income in excess of one million dollars; and 17 (3) in the case of a residential individual who is not a married indi- 18 vidual or who makes a single return jointly with their spouse under 19 subsection (b) of section six hundred fifty-one of this article or a 20 resident head of household or a resident surviving spouse, and in the 21 case of a resident estate and trust: 22 (A) if New York taxable income is over four hundred thousand dollars, 23 seven and one-half percent of New York taxable income from long-term 24 capital gain, which tax shall be phased in proportionally over the first 25 fifty thousand dollars of New York taxable income in excess of four 26 hundred thousand dollars; and 27 (B) if New York taxable income is over eight hundred thousand dollars, 28 fifteen percent of New York taxable income from long-term capital gain, 29 which tax shall be phased in proportionally, beginning with a phase-in 30 fraction of fifty percent, over the first one hundred thousand dollars 31 of New York taxable income in excess of eight hundred thousand dollars. 32 (d) This section shall be administered, and penalties imposed, in the 33 same manner as the tax imposed under section six hundred one of this 34 article. 35 (e) The department may adopt rules and regulations as necessary to 36 implement the provisions of this section. 37 § 2. This act shall take effect immediately.