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A06257 Summary:

BILL NOA06257
 
SAME ASSAME AS S04699
 
SPONSORMitaynes
 
COSPNSRDe La Rosa, Gottfried, Kim, Mamdani, Gallagher, Forrest, Barron, Reyes, Seawright
 
MLTSPNSR
 
Rpld Art 16 §3, Constn
 
Relates to the taxation of moneys, credits, securities and other intangible personal property in the state that is not employed in carrying on any business therein.
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A06257 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A6257
 
SPONSOR: Mitaynes
  TITLE OF BILL: CONCURRENT RESOLUTION OF THE SENATE AND ASSEMBLY repealing section 3 of article 16 of the constitution, relating to the taxation of moneys, credits, securities and other intangible personal property in the state that is not employed in carrying on any business therein   SUMMARY OF PROVISIONS: Section 1 amends section 3 of article XVI of the New York State Consti- tution, which currently prohibits taxation of intangible property, in order to permit the ad valorem taxation of moneys, credits, securities, undistributed profits, and other intangible personal property deemed to be domiciled within the state for the purposes of taxation.   JUSTIFICATION: New York is an exceptionally wealthy state. Treated as a separate coun- try, it would have one of the world's largest economies. With such a strong economy, all New Yorkers should have fundamental economic rights: access to high-quality education, affordable healthcare, guaranteed housing, and basic social services and social insurance. New York must also finance investments in green energy, green jobs, and green infras- tructure in order to mitigate the catastrophic risks of climate change. Unfortunately, New York is also the most unequal state in the nation. In part this is because our tax system has not kept pace with changes in the economy, leaving the many high-earning professionals and wealthy families in this state undertaxed. Economic growth from recent decades has overwhelmingly benefited a small segment of elites, while infla- tion-adjusted wages have stagnated for the vast majority of working people since the 1970s. The state government, lacking adequate tax revenues, has been unable to afford essential public investment and social spending, including upgrading our infrastructure, repairing public housing, protecting public education, and financing Medicaid. Today, New York is the most unequal state in the nation. Moreover, the state government has been unable to afford essential public investment and social spending, including updating our infrastructure, repairing public housing, protecting public education, and financing Medicaid. The New York State Constitution currently prohibits a comprehensive wealth tax that taxes ownership of intangible assets such as stocks and bonds. This is what we generally think of a tax on wealth: a tax that applies to a person's total net assets. It is important to realize that the real property tax is, in effect, a tax on just that part of a person's wealth that consists of real property. For many middle-income New Yorkers, homeownership is the primary form of wealth accumulation. Consequently, the real property tax is essentially a wealth tax that disproportionately impacts middle-income New Yorkers. For the wealthy, who accumulate vast amounts of financial assets, the property tax is in effect a tax on a very small portion of their wealth. We live in times of extreme economic inequality, in which a handful of families and individuals have accumulated previously unthinkable levels of wealth. A wealth tax, unlike an income tax, targets this accumulated wealth. It can be both a source of revenue and a means of reducing the economic inequality that threatens the stability of cur democracy and keeps millions of working people living near the poverty line, indebted just to pay for basic expenses and healthcare.   PRIOR LEGISLATIVE HISTORY: New bill   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: This bill will have no effect on revenue or spending.   EFFECTIVE DATE: This bill is effective immediately after passage in two consecutive legislative sessions and upon approval by the voters of the state of New York.
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A06257 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          6257
 
                               2021-2022 Regular Sessions
 
                   IN ASSEMBLY
 
                                     March 11, 2021
                                       ___________
 
        Introduced  by  M.  of A. MITAYNES, DE LA ROSA, GOTTFRIED, KIM, MAMDANI,
          GALLAGHER, FORREST -- read once and referred to the Committee on  Ways
          and Means
 
                    CONCURRENT RESOLUTION OF THE SENATE AND ASSEMBLY
 
        repealing  section  3 of article 16 of the constitution, relating to the
          taxation of moneys, credits, securities and other intangible  personal
          property in the state that is not employed in carrying on any business
          therein
 
     1    Section  1. Resolved (if the Senate concur), That section 3 of article
     2  16 of the constitution is  REPEALED.
     3    §  2.  Resolved (if the Senate concur), That the foregoing  amendments
     4  be referred to the first regular legislative session convening after the
     5  next  succeeding  general  election  of members of the assembly, and, in
     6  conformity with  section  1  of  article  19  of  the  constitution,  be
     7  published for 3 months previous to the time of such election.
 
 
 
 
 
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD89114-01-1
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