New York State Assemblyman Fred W. Thiele, Jr. (I, D, WF-Sag Harbor) today announced that the New York State Tax Relief Commission, appointed by Governor Andrew Cuomo, has endorsed legislation authored and sponsored by Assemblyman Thiele to increase the exemption amount under the State Estate Tax. Thiele introduced the legislation to benefit small businesses and farmers adversely impacted by the tax. Thiele introduced the legislation on February 22, 2013.

New York is only one of 17 states that still have an Estate Tax. Only two states have a lower exemption amount. The current New York exemption amount is $1 million. Thiele’s legislation would increase the exemption to $5 million. The Commission is recommending and exemption of $5.25 million and a reduction in the rate from 16% to 10%.

Thiele stated, “The estate tax has been a major disincentive to agriculture on the East End. Farmers have been often forced to sell farmland to developers in order to pay the tax. It has had a similar adverse impact on small businesses. In fact, because the exemption amount has not been adjusted to keep pace with home values, more and more middle income residents are finding themselves subject to the tax. I am hopeful that the full State Legislature will embrace this recommendation as part of the 2014 State Budget so this inequity is finally corrected.”