Text of NY A 11479 (2010)

S T A T E O F N E W Y O R K ________________________________________________________________________ 11479--A I N A S S E M B L Y June 16, 2010 ___________ Introduced by COMMITTEE ON RULES -- (at request of M. of A. O'Donnell) -- read once and referred to the Committee on Ways and Means -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the tax law and the administrative code of the city of New York, in relation to allowing recognition of marriages performed outside New York state THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: 1 Section 1. Section 2 of the tax law is amended by adding two new 2 subdivisions 12 and 13 to read as follows: 3 12. AS USED IN THIS CHAPTER, A "STATE RECOGNIZED MARRIAGE" SHALL MEAN 4 A MARRIAGE RECOGNIZED BY NEW YORK STATE LAW, INCLUDING A MARRIAGE 5 OUTSIDE THE STATE RECOGNIZED UNDER PRINCIPLES OF COMITY. 6 13. AS USED IN THIS CHAPTER, "MARRIED," "SPOUSE," "HUSBAND," "WIFE," 7 "WIDOW," AND OTHER SIMILAR TERMS ENCOMPASS ANY INDIVIDUALS IN A STATE 8 RECOGNIZED MARRIAGE, NOTWITHSTANDING THE TREATMENT AFFORDED SUCH 9 MARRIAGE UNDER THE LAWS OF THE UNITED STATES. 10 S 2. The tax law is amended by adding a new section 31 to read as 11 follows: 12 S 31. TREATMENT OF INDIVIDUALS IN ANY STATE RECOGNIZED MARRIAGE. (A) 13 FOR PURPOSES OF THIS CHAPTER, INDIVIDUALS IN ANY STATE RECOGNIZED 14 MARRIAGE SHALL BE TREATED AS MARRIED, AND THEIR STATUS AS "HUSBAND," 15 "WIFE," "SPOUSE," "WIDOW" OR OTHER SIMILAR TERM INDICATING MARITAL 16 STATUS AS USED IN THIS CHAPTER SHALL BE THAT OF SIMILARLY-SITUATED INDI- 17 VIDUALS IN ANY OTHER MARRIAGE RECOGNIZED UNDER FEDERAL AND STATE TAX 18 LAW, NOTWITHSTANDING THE TREATMENT AFFORDED SUCH INDIVIDUALS UNDER THE 19 LAWS OF THE UNITED STATES. 20 (B) TAX LIABILITY UNDER ARTICLES TWENTY-TWO, TWENTY-SIX, TWENTY-SIX-B, 21 THIRTY, THIRTY-A, AND THIRTY-B OF THIS CHAPTER SHALL BE COMPUTED FOR ANY 22 STATE RECOGNIZED MARRIAGE IN THE SAME WAY LIABILITY WOULD BE COMPUTED IN 23 ANY OTHER MARRIAGE RECOGNIZED UNDER FEDERAL AND STATE TAX LAW. 24 S 3. Subsection (b) of section 607 of the tax law, as amended by chap- 25 ter 760 of the laws of 1992, is amended to read as follows: EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD17725-02-0 A. 11479--A 2 1 (b) Marital or other status. An individual's marital or other status 2 under section six hundred one, subsection (b) of section six hundred six 3 and section six hundred fourteen shall be the same as his OR HER marital 4 or other status for purposes of establishing the applicable federal 5 income tax rates; PROVIDED HOWEVER, THAT INDIVIDUALS IN ANY STATE RECOG- 6 NIZED MARRIAGE SHALL BE TREATED AS MARRIED AND AS "HUSBAND," "WIFE," 7 "SPOUSE," "WIDOW" OR OTHER SIMILAR TERM USED IN THIS ARTICLE TO INDICATE 8 MARITAL STATUS TO THE SAME EXTENT AND IN THE SAME WAY AS ARE INDIVIDUALS 9 IN ANY OTHER LEGALLY PERFORMED MARRIAGE. IN APPLYING RELEVANT PROVISIONS 10 OF THE LAWS OF THE UNITED STATES TO THIS ARTICLE, THE TERMS "MARRIED," 11 "HUSBAND," "WIFE," "SPOUSE," "WIDOW" OR OTHER SIMILAR TERM INDICATING 12 MARITAL STATUS AS USED IN THIS ARTICLE SHALL INCLUDE ANY STATE RECOG- 13 NIZED MARRIAGE, NOTWITHSTANDING THE TREATMENT AFFORDED SUCH INDIVIDUALS 14 UNDER THE LAWS OF THE UNITED STATES. 15 S 4. Subsection (b) of section 651 of the tax law is amended by adding 16 a new paragraph 8 to read as follows: 17 (8) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, AN INDIVIDUAL 18 IN A STATE RECOGNIZED MARRIAGE NOT RECOGNIZED BY FEDERAL LAW SHALL FILE 19 A STATE RETURN USING THE SAME FILING STATUS THAT WOULD HAVE BEEN AVAIL- 20 ABLE HAD SUCH MARRIAGE BEEN RECOGNIZED BY FEDERAL LAW. 21 S 5. Subsection (a) of section 951 of the tax law, as amended by 22 section 1 of part A of chapter 407 of the laws of 1999, is amended to 23 read as follows: 24 (a) Dates. For purposes of this article, any reference to the internal 25 revenue code means the United States Internal Revenue Code of 1986, with 26 all amendments enacted on or before July twenty-second, nineteen hundred 27 ninety-eight, and, unless specifically provided otherwise in this arti- 28 cle, any reference to December thirty-first, nineteen hundred seventy- 29 six or January first, nineteen hundred seventy-seven contained in the 30 provisions of such code which are applicable to the determination of the 31 tax imposed by this article shall be read as a reference to June thirti- 32 eth, nineteen hundred seventy-eight or July first, nineteen hundred 33 seventy-eight, respectively. Notwithstanding the foregoing, the unified 34 credit against the estate tax provided in section two thousand ten of 35 the internal revenue code shall, for purposes of this article, be the 36 amount allowed by such section under the applicable federal law in 37 effect on the decedent's date of death. Provided, however, the amount of 38 such credit allowable for purposes of this article shall not exceed the 39 amount allowable as if the federal unified credit did not exceed the tax 40 due under section two thousand one of the internal revenue code on a 41 federal taxable estate of one million dollars. PROVIDED, FURTHER, ANY 42 ELECTION TO TAKE A QUALIFIED TERMINABLE INTEREST PROPERTY DEDUCTION MADE 43 ON THE RETURN FILED UNDER THIS ARTICLE SHALL BE TREATED AS IF THE 44 ELECTION HAD BEEN MADE ON THE FEDERAL ESTATE TAX RETURN. 45 S 6. Section 1-112 of the administrative code of the city of New York 46 is amended by adding a new subdivision 22 to read as follows: 47 22. FOR PURPOSES OF CHAPTER SEVENTEEN OF TITLE ELEVEN OF THIS CODE, 48 "MARRIED," "SPOUSE," "HUSBAND," "WIFE," "WIDOW," AND OTHER SIMILAR TERMS 49 ENCOMPASS ANY STATE RECOGNIZED MARRIAGE NOTWITHSTANDING THE TREATMENT 50 AFFORDED SUCH INDIVIDUALS UNDER THE LAWS OF THE UNITED STATES. 51 S 7. Subdivision (b) of section 11-1707 of the administrative code of 52 the city of New York, as amended by chapter 333 of the laws of 1987, is 53 amended to read as follows: 54 (b) Marital or other status. An individual's marital or other status 55 under section 11-1701 and section 11-1714 shall be the same as his OR 56 HER marital or other status for purposes of establishing the applicable A. 11479--A 3 1 federal income tax rates; PROVIDED HOWEVER, THAT INDIVIDUALS IN ANY 2 STATE RECOGNIZED MARRIAGE SHALL BE TREATED AS MARRIED AND AS "HUSBAND," 3 "WIFE," "SPOUSE," "WIDOW" OR OTHER SIMILAR TERM INDICATING MARITAL 4 STATUS AS USED IN THIS CHAPTER TO THE SAME EXTENT AND IN THE SAME WAY AS 5 IN ANY OTHER MARRIAGE RECOGNIZED UNDER FEDERAL AND STATE TAX LAW. IN 6 APPLYING RELEVANT PROVISIONS OF THE LAWS OF THE UNITED STATES TO THIS 7 CHAPTER, THE TERMS "MARRIED," "HUSBAND," "WIFE," "SPOUSE," "WIDOW" AND 8 OTHER SIMILAR TERMS INDICATING MARITAL STATUS AS USED IN THIS CHAPTER 9 SHALL INCLUDE INDIVIDUALS IN ANY STATE RECOGNIZED MARRIAGE, NOTWITH- 10 STANDING THE TREATMENT AFFORDED SUCH INDIVIDUALS UNDER THE LAWS OF THE 11 UNITED STATES. 12 S 8. This act shall take effect immediately; provided however, that 13 sections three, four, six and seven of this act shall apply to taxable 14 years beginning on or after January 1, 2010.