Gov. Pataki Pledges To Eliminate New York Estate Tax
Category: Estate and Inheritance Tax
Pataki Pledges To Cut Taxes, Reliance on Oil - January 5, 2006 - The New York Sun - NY Newspaper: "Entering his final year in office, Governor Pataki yesterday pledged to cut an array of state taxes..."
Included in the proposed tax cuts will be the elimination of the the New York estate tax.
Currently, the New York estate tax is "de-coupled" from the federal estate tax tax. The federal estate tax allows a $2 million exemption per person, while New York only allows a $1 million exemption. The calculation of the New York estate tax is similar to the calculation of the federal estate tax, as the New York estate tax relies on the Federal estate tax laws in effect in 2002. Elimination of the New York estate tax would have a huge impact on the strucutre of estate plans of New York residents, and would also likely encourge New York retirees to remain New York residents instead of changing residence to Florida or another state that does not have a state level estate tax.