Summary of Bill S 3047

Bill Number: S 3047

Title: Repeals section 3 of article 16 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

Status: Opinion Referred to Judiciary

Introduced: January 23, 2025

Classification: Bill

Purpose and Intent

Bill S 3047 aims to repeal a specific provision in the state’s tax code that currently imposes taxes on moneys, credits, securities, and other intangible personal property that are not actively used in conducting business within the state. The intent behind this repeal is to alleviate the tax burden on individuals and entities holding such assets, potentially encouraging investment and financial activity within the state.

Key Provisions

• Repeal of Taxation: The bill specifically targets section 3 of article 16, which outlines the taxation framework for intangible personal property. By repealing this section, the bill eliminates the tax obligations associated with holding moneys, credits, and securities that are not employed in business operations.

• Impact on Taxpayers: The repeal is expected to benefit individuals and businesses that possess intangible assets but do not utilize them in active business operations. This could lead to increased financial flexibility for these taxpayers.

Who Would Be Affected

• Individuals and Businesses: The primary beneficiaries of this bill would be individuals and businesses that hold intangible assets but do not use them for business purposes. This includes investors and financial institutions that manage portfolios of securities and other financial instruments.

• State Revenue: The repeal may have implications for state revenue, as it would reduce the tax base associated with intangible personal property. This could lead to a decrease in tax revenue from this sector, which may need to be addressed through other means.

Procedural Aspects

• Legislative Timeline:

  • January 23, 2025: The bill was introduced and referred to the Judiciary Committee.
  • February 5, 2025: The bill was referred to the Judiciary for an opinion, indicating that further legal review is required before it can proceed.

• Related Legislation: The bill is related to prior-session bills S 4699 and S 2893, as well as companion bill A 3715, which may address similar issues or provide additional context for the current legislative effort.

Conclusion

Bill S 3047 represents a significant change in the taxation of intangible personal property within the state. By repealing the existing tax on such assets not used in business, the bill seeks to enhance economic activity and provide relief to taxpayers. As it moves through the legislative process, stakeholders will be closely monitoring its implications for state revenue and taxpayer behavior.