Jan 17, 2006
BY TAMI LUHBY
January 17, 2006, 10:13 PM EST
Gov. George Pataki's proposal to eliminate the state's estate tax could save some New Yorkers thousands, if not hundreds of thousands, of dollars. But it would also cost the state hundreds of millions of dollars.
In the budget unveiled Tuesday, Pataki proposed doubling the amount free from the state's estate tax to $2 million starting in 2007, bringing the exemption in line with federal rules. The exemption would rise to $3.5 million in 2009, and the tax would be eliminated in 2010. While federal law calls for the federal estate tax to be restored in 2011 with a $1 million exemption, New York's tax would disappear permanently."