CPAs Urge New York to Amend Estate Tax, Eliminating ‘Cliff’

Bloomberg BNA Daily Tax Report

The New York State Society of Certified Public Accountants urged state lawmakers to amend the state’s estate tax to eliminate a ‘‘cliff’’ that causes portions of certain estates to be taxed at a marginal rate of up to 164 percent. New York increased its basic estate tax exclusion from $1 million to the federal level, under a 2014 law, but the exclusion begins to be effectively phased out for estates valued at 100-105 percent of the basic exclusion amount, leaving a steep cliff in place. ‘‘This tax cliff goes against any rational hope of making New York state a more favorable environment for its residents planning the later stages of their life,’’ Joseph M. Falbo Jr., president of the group, said during a Feb. 2 hearing of the joint fiscal committees of the state Legislature.