S6060-B

                STATE OF NEW YORK
        ________________________________________________________________________

            S. 6060--B                                            A. 9560--B

                SENATE - ASSEMBLY

                                    January 21, 2004
                                       ___________

        IN  SENATE -- A BUDGET BILL, submitted by the Governor pursuant to arti-
          cle seven of the Constitution -- read twice and ordered  printed,  and
          when  printed to be committed to the Committee on Finance -- committee
          discharged, bill amended, ordered reprinted as amended and recommitted
          to said committee  --  committee  discharged,  bill  amended,  ordered
          reprinted as amended and recommitted to said committee

        IN  ASSEMBLY  --  A  BUDGET  BILL, submitted by the Governor pursuant to
          article seven of the Constitution -- read once  and  referred  to  the
          Committee  on  Ways  and  Means -- committee discharged, bill amended,
          ordered reprinted as amended and  recommitted  to  said  committee  --
          again  reported from said committee with amendments, ordered reprinted
          as amended and recommitted to said committee

        AN ACT to amend chapter 101 of the laws of 2004 relating to the  suspen-
          sion and the effectiveness of exemptions of certain clothing and foot-
          wear  from  sales and compensating use taxes imposed by or pursuant to
          the authority of article 28 or 29 of the tax law and to amend  chapter
          62  of  the  laws  of 2003 amending the general business law and other
          laws relating to implementing the state fiscal plan for the  2003-2004
          state  fiscal  year,  in relation to the effectiveness thereof, and to
          amend the tax law, in relation to exemptions from sales and compensat-
          ing use taxes for certain clothing and footwear  and  to  authorize  a
          county  or  city to repeal its election of the year-round clothing and
          footwear exemption from its sales and compensating  use  taxes  or  to
          elect  to  provide such exemption, effective June 1, 2005 (Part A); to
          amend the public housing  law,  in  relation  to  providing  a  credit
          against  income  tax  for  persons or entities investing in low-income
          housing (Part B); to amend the tax law, in  relation  to  certain  tax
          surcharges  (Part C); to amend the tax law and chapter 389 of the laws
          of 1997 amending the tax law, the banking law, and other laws relating
          to the 1997-1998 fiscal plan, in relation  to  extending  certain  tax
          credits  and  exemptions  for  alternative  fuel vehicles (Part D); to
          amend the tax law, in relation to changing the  fixed  dollar  minimum
          tax  for a taxpayer based on the taxpayer's gross payroll (Part E); to
          amend the tax law,  in  relation  to  modifying  hearing  rights  upon
          certain  notice  and demands for taxes due and owing and providing for
          notice and demand procedures  for  the  sales,  compensating  use  and

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD12134-03-4

        S. 6060--B                          2                         A. 9560--B

          miscellaneous taxes (Part F); to amend chapter 298 of the laws of 1985
          amending  the  tax law relating to the franchise tax on banking corpo-
          rations imposed by the tax law, authorized to be imposed by  any  city
          having  a population of one million or more by chapter 772 of the laws
          of 1966 and imposed by the administrative code of the city of New York
          and relating to other provisions of the tax law, chapter  883  of  the
          laws of 1975 and the administrative code of the city of New York which
          relates  to  such  franchise  tax, to amend chapter 817 of the laws of
          1987 amending the tax law  and  the  environmental  conservation  law,
          constituting  the  business tax reform and rate reduction act of 1987,
          and to amend chapter 525 of the laws of 1988 amending the tax law  and
          the  administrative code of the city of New York relating to the impo-
          sition of taxes in the city of New York, in relation to the effective-
          ness of certain provisions of such chapters; and to amend the tax law,
          in relation  to  permitting  certain  banking  corporations  otherwise
          subject  to tax under article 32 of the tax law to make an election to
          be taxed under article 9-A of such law; and to amend  the  administra-
          tive  code  of the city of New York, in relation to permitting certain
          banking corporations otherwise subject to tax under  subchapter  3  of
          chapter  6  of  title 11 of the administrative code of the city of New
          York to be taxed under subchapter 2 of such code (Part  G);  to  amend
          the  tax  law,  in  relation to the taxation of gains from the sale of
          shares in a cooperative housing corporation by a  nonresident  of  the
          state (Part H); to amend the tax law, in relation to changing the date
          interest  begins  to run under article 26 of such law for certain late
          estate tax payments, changing the calculation of the  estate  tax  for
          estates  with  property  both  in  New  York and in another state, and
          repealing article 10 of such law relating to taxable  transfers  (Part
          I);  to amend the tax law, in relation to reducing the tax on aviation
          fuel businesses under article 13-A thereof (Part J); and to amend  the
          alcoholic  beverage control law, in relation to sales for off-premises
          consumption; and to repeal certain provisions  of  such  law  relating
          thereto (Part K); to amend the tax law, in relation to exempting parts
          used  exclusively to maintain, repair, overhaul or rebuild aircraft or
          services associated therewith from the sales and compensating use tax;
          and providing for the repeal of such provisions  upon  the  expiration
          thereof  (Part  L);  to  amend  the  tax law, in relation to providing
          refunds and credits of sales and compensating  use  taxes  imposed  by
          article  28  of  such  law and pursuant to the authority of article 29
          thereof and paid with respect to certain vessels used to provide local
          transit service and certain related property and services (Part M); to
          amend the tax law, in relation to compliance with sales and compensat-
          ing use tax obligations by  certain  contractors,  subcontractors  and
          their  affiliates  (Part  N);  to  amend  the general municipal law in
          relation to extending the effectiveness of empire zones (Part  O);  to
          amend  the  tax  law, in relation to providing tax credits for certain
          costs incurred in film and television productions  and  providing  for
          the  repeal  of  such  provisions upon expiration thereof (Part P); to
          amend the tax law, in relation to  wraparound  mortgages  and  supple-
          mental  mortgages  in  the city of New York (Part Q); to amend the tax
          law and the administrative code of the city of New York,  in  relation
          to crediting tax overpayments against outstanding tax debt owed to the
          city  of  New  York  (Part R); to amend the administrative code of the
          city of New York, in relation to  disallowing,  for  purposes  of  the
          general  corporation  tax,  banking corporation tax and unincorporated
          business income tax, certain excess deductions with respect  to  sport

        S. 6060--B                          3                         A. 9560--B

          utility  vehicles  (Part  S);  to amend the administrative code of the
          city of New York, in relation to payment of  real  property  taxes  by
          electronic  funds  transfer (Part T); to amend the administrative code
          of  the  city  of  New York, in relation to setting interest rates for
          overpayments of the New York city unincorporated business tax and  the
          tax on foreign and alien insurers (Part U); to amend the real property
          tax  law,  in  relation  to a rebate of real property taxes on certain
          residential real property in a  city    having  a  population  of  one
          million  or  more and to amend the tax law, in relation to authorizing
          any city having a population of one million  or  more  to  provide  an
          earned  income tax credit against the personal income tax of such city
          (Part V); and to amend the general business law, in relation to rental
          vehicle protections and authorized charges that are in addition to the
          rental rate (Part W); to amend chapter 405 of the laws of 1999  amend-
          ing the real property tax law relating to improving the administration
          of the school tax relief (STAR) program and other laws, in relation to
          the  lottery  game of Quick Draw (Part X); and to amend chapter 349 of
          the laws of 1982 amending the multiple dwelling law  relating  to  the
          legalization  of  interim  multiple  dwellings  in  cities of over one
          million, in relation to extending provisions thereof and to amend  the
          multiple dwelling law, in relation to owner compliance (Part Y)

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. This act enacts into law major  components  of  legislation
     2  which are necessary to implement the state fiscal plan for the 2004-2005
     3  state  fiscal  year.    Each component is wholly contained within a Part
     4  identified as Parts A through Y. The effective date for each  particular
     5  provision contained within such Part is set forth in the last section of
     6  such Part. Any provision in any section contained within a Part, includ-
     7  ing  the  effective date of the Part, which makes reference to a section
     8  "of this act", when used in connection with that  particular  component,
     9  shall  be  deemed  to mean and refer to the corresponding section of the
    10  Part in which it is found. Section three of  this  act  sets  forth  the
    11  general effective date of this act.

    12                                   PART A

    13    Section  1.  Section  1  of  part A of chapter 101 of the laws of 2004
    14  relating to the  suspension  and  the  effectiveness  of  exemptions  of
    15  certain  clothing  and  footwear  from  sales and compensating use taxes
    16  imposed by or pursuant to the authority of article 28 or 29 of  the  tax
    17  law  and  to  amend  chapter 62 of the laws of 2003 amending the general
    18  business law and other laws relating to implementing  the  state  fiscal
    19  plan for the 2003-04 state fiscal year, in relation to the effectiveness
    20  thereof, as amended by section 1 of part F of chapter 120 of the laws of
    21  2004, is amended to read as follows:
    22    Section 1. Suspension of state and local year-round clothing and foot-
    23  wear exemptions.  Notwithstanding any provision of law to the contrary:
    24    (a)  During  the period commencing June 1, 2004, and ending [September
    25  30, 2004] May 31, 2005, the effectiveness of paragraph 30 of subdivision
    26  (a) of section 1115 and the provisions of sections 1107, 1109, 1110  and
    27  1210  of the tax law providing or authorizing exemptions of clothing and
    28  footwear, as such term is defined in paragraph 15 of subdivision (b)  of

        S. 6060--B                          4                         A. 9560--B

     1  section  1101  of  the  tax  law,  from sales and compensating use taxes
     2  imposed by or pursuant to the authority of article 28 or 29 of  the  tax
     3  law shall be suspended and such suspension of effectiveness shall tempo-
     4  rarily  stay  the  exemption of such clothing and footwear from any such
     5  taxes during such period other than exemptions provided in  or  pursuant
     6  to  section  three or four of part F of [the] chapter 120 of the laws of
     7  2004 [which amended this subdivision] and other than exemptions provided
     8  in or pursuant to section three or four of part A of the chapter of  the
     9  laws of 2004 which amended this subdivision.
    10    (b)  The  expiration  and  repeal of the provisions of paragraph 30 of
    11  subdivision (a) of section 1115 and of subdivision (k) of  section  1210
    12  of the tax law provided for in section 5 of part I3 of chapter 62 of the
    13  laws of 2003, as amended by section 2 of part [A] F of chapter [101] 120
    14  of  the  laws  of  2004,  shall take effect [September 30, 2004] May 31,
    15  2005.
    16    (c) During the period commencing June 1, 2004, and  ending  [September
    17  30,  2004]  May  31, 2005, the effectiveness of the portion of any local
    18  law, ordinance or resolution of a county, city or school district elect-
    19  ing to provide for the exemption described in paragraph 30  of  subdivi-
    20  sion  (a)  of  section  1115 of the tax law after May 31, 2004, shall be
    21  suspended, so that there shall not be any exemption of such clothing and
    22  footwear from the taxes imposed by such a local law, ordinance or resol-
    23  ution or by section 1107 of the tax law during such  period  other  than
    24  exemptions provided in or pursuant to section three or four of part F of
    25  [the]  chapter  120 of the laws of 2004 [which amended this subdivision]
    26  and other than exemptions provided in or pursuant to  section  three  or
    27  four  of  part  A  of the chapter of the laws of 2004 which amended this
    28  subdivision.
    29    § 2. Section 5 of part I3 of chapter 62 of the laws of  2003  amending
    30  the  general  business  law  and other laws relating to implementing the
    31  state fiscal plan for the 2003-2004 state fiscal  year,  as  amended  by
    32  section  2  of  part F of chapter 120 of the laws of 2004, is amended to
    33  read as follows:
    34    § 5. This act shall take effect immediately; provided,  however,  that
    35  section  one of this act shall take effect June 1, 2003, and shall apply
    36  in accordance with the applicable  transitional  provisions  of  section
    37  1106  of  the tax law; and provided further that the amendments to para-
    38  graph 30 of subdivision (a) of section 1115 and to  subdivision  (k)  of
    39  section  1210  of  the  tax law made by sections one and two of this act
    40  shall expire [September 30, 2004] May 31, 2005, when upon such date  the
    41  provisions  of  such  sections  one  and two of this act shall be deemed
    42  repealed and any local law, ordinance or resolution enacted pursuant  to
    43  section  three  of  this  act  shall be deemed to be repealed therewith,
    44  provided, however, a local law, ordinance or resolution which is enacted
    45  pursuant to subdivision (a) of such section three of this act to provide
    46  the exemption in paragraph 30 of subdivision (a) of section 1115 of  the
    47  tax  law  as amended by section one of this act shall or shall not apply
    48  as of the effective date of such section one of this act or pursuant  to
    49  subdivision  (b)  of  such section three of this act to provide for such
    50  amended exemption effective on such date and which explicitly elects  to
    51  continue  to grant such exemption effective immediately after [September
    52  30, 2004] May 31, 2005, shall not be deemed repealed.
    53    § 3. Paragraph 30 of subdivision (a) of section 1115 of the  tax  law,
    54  as amended by section 3 of part F of chapter 120 of the laws of 2004, is
    55  amended to read as follows:

        S. 6060--B                          5                         A. 9560--B

     1    (30)  During the seven-day [period] periods commencing on August thir-
     2  ty-first, two thousand four, and ending on September sixth, two thousand
     3  four, known as Labor day and commencing  on  January  thirty-first,  two
     4  thousand  five and ending on February sixth, two thousand five, clothing
     5  and  footwear for which the receipt or consideration given or contracted
     6  to be given is less than one hundred ten dollars per article  of  cloth-
     7  ing, per pair of shoes or other articles of footwear or per item used or
     8  consumed  to  make  or repair such clothing and which becomes a physical
     9  component part of such clothing.
    10    § 4. Local rejection or election of  one-week  clothing  and  footwear
    11  exemption  period.  Notwithstanding any provision of state or local law,
    12  ordinance or resolution to the contrary:
    13    (a)(1) Action by localities which provided the Fall,  2004,  temporary
    14  exemption.  A  county  or city imposing sales and compensating use taxes
    15  pursuant to the authority of subdivision (a) of  section  1210,  1210-A,
    16  1210-B or 1210-C of the tax law or in which the taxes imposed by section
    17  1107  of  the  tax  law  are  in effect, which had provided the one-week
    18  temporary clothing and footwear exemption period commencing  August  31,
    19  2004,  pursuant  to  chapter 120 of the laws of 2004, acting through its
    20  local legislative body, is hereby authorized and empowered  to  adopt  a
    21  resolution,  in the form set forth in paragraph two of this subdivision,
    22  to reject the  one-week  exemption  period  for  clothing  and  footwear
    23  commencing January 31, 2005, as described in paragraph 30 of subdivision
    24  (a)  of  section 1115 of the tax law as amended by section three of this
    25  act, from its sales and  compensating  use  taxes  or  from  such  taxes
    26  imposed  by  such  section  1107 of the tax law in a city having a popu-
    27  lation of one million or more.   Such a resolution  shall  be  effective
    28  only if it is adopted exactly as set forth in such paragraph two of this
    29  subdivision and such county or city adopts it by December 3, 2004, mails
    30  a  certified  copy  of it to the commissioner of taxation and finance by
    31  certified mail by such date and otherwise complies with the requirements
    32  of subdivisions (d) and (e) of section 1210  of  the  tax  law.  Such  a
    33  resolution  adopted  by  a  county or a city (other than a city having a
    34  population of one million or more) in compliance with this section shall
    35  be deemed to amend such county's  or  city's  local  law,  ordinance  or
    36  resolution  imposing  its sales and compensating use taxes. A resolution
    37  adopted by a city having a population of one million or more in  compli-
    38  ance  with this section shall be deemed to amend section 1107 of the tax
    39  law as if an act amending such section 1107 had been duly passed by  the
    40  state  legislature  and approved by the governor. If such county or city
    41  does not adopt the resolution provided for in this subdivision to reject
    42  such one-week exemption period, in the manner  prescribed  herein,  then
    43  such one-week exemption shall apply to such taxes imposed by such county
    44  or city or in such city having a population of one million or more.
    45    (2) Form of resolution.
    46    Be  it  enacted by the (county or city) of (insert locality's name) as
    47  follows:
    48    Section one. The (county or city) of (insert locality's  name)  hereby
    49  rejects the clothing and footwear exemption for the period commencing on
    50  January 31, 2005, and ending on February 6, 2005.
    51    Section 2. This resolution shall take effect December 3, 2004.
    52    (b)(1)  Action  by  localities  which  had not provided the Fall 2004,
    53  temporary exemption. A county or city imposing  sales  and  compensating
    54  use  taxes pursuant to the authority of subdivision (a) of section 1210,
    55  1210-A, 1210-B or 1210-C of the tax law,  which  had  not  provided  the
    56  one-week  temporary  clothing  and  footwear exemption period commencing

        S. 6060--B                          6                         A. 9560--B

     1  August 31, 2004, pursuant to chapter 120 of the  laws  of  2004,  acting
     2  through  its  local legislative body, is hereby authorized and empowered
     3  to adopt a resolution, in the form set forth in paragraph  two  of  this
     4  subdivision,  to  elect  the  one-week exemption period for clothing and
     5  footwear commencing January 31, 2005, as described in  paragraph  30  of
     6  subdivision  (a)  of  section  1115 of the tax law as amended by section
     7  three of this act from its sales and compensating use  taxes.    Such  a
     8  resolution shall be effective only if it is adopted exactly as set forth
     9  in such paragraph two of this subdivision and such county or city adopts
    10  it by December 3, 2004, mails a certified copy of it to the commissioner
    11  of  taxation  and  finance  by certified mail by such date and otherwise
    12  complies with the requirements of subdivisions (d) and  (e)  of  section
    13  1210  of the tax law. Such a resolution adopted by a county or a city in
    14  compliance with this section shall be deemed to amend such  county's  or
    15  city's local law, ordinance or resolution imposing its sales and compen-
    16  sating  use  taxes. If such county or city does not adopt the resolution
    17  provided for in this subdivision to elect such one-week exemption  peri-
    18  od,  in the manner prescribed herein, then such one-week exemption shall
    19  not apply to such taxes imposed by such county or city.
    20    (2) Form of resolution.
    21    Be it enacted by the (county or city) of (insert locality's  name)  as
    22  follows:
    23    Section  one.  The (county or city) of (insert locality's name) hereby
    24  elects the clothing and footwear exemption for the period commencing  on
    25  January 31, 2005, and ending on February 6, 2005.
    26    Section  2.  This  resolution  shall take effect December 3, 2004, and
    27  shall apply in accordance with applicable transitional provisions of the
    28  Tax Law.
    29    (c) Subdivision (g) of section 1109 of the tax law shall  apply  if  a
    30  county  or  city  located  in  the  metropolitan commuter transportation
    31  district provides the exemption authorized by this section or by section
    32  4 of part F of chapter 120 of the laws of 2004.
    33    § 5. The provisions of sections three and four of  this  act,  section
    34  1107  of  the tax law and paragraph 1 of subdivision (a) of section 1210
    35  of the tax law, and of any resolution enacted  pursuant  thereto,  taken
    36  separately  or  together,  shall  not  be construed by any person or any
    37  court or other entity as either (i) a failure or refusal to continue  to
    38  impose  the  taxes imposed by section 1107 of the tax law, as such taxes
    39  may from time to time be amended, or (ii) as a reduction in the rate  at
    40  which  such taxes are imposed. After sections three and four of this act
    41  shall have become a law, the taxes imposed by such section 1107  of  the
    42  tax  law  on  receipts  from  retail sales of and consideration given or
    43  contracted to be given for purchases  of  clothing  and  footwear  shall
    44  (except  as provided pursuant to section four of this act for any period
    45  set forth therein if  a  city  of  one  million  or  more  provides  the
    46  exemption  in  the  manner described in such section) continue to apply,
    47  persons liable for such taxes on purchases of such clothing and footwear
    48  shall continue to be liable for such taxes, persons required to  collect
    49  such  taxes  on such clothing and footwear shall continue to be required
    50  to collect and pay over such taxes to the commissioner of  taxation  and
    51  finance, such commissioner shall continue to be required to certify such
    52  taxes on such clothing and footwear as provided by article 28 of the tax
    53  law  and section 92-d of the state finance law and the state comptroller
    54  shall continue to be required to deposit, appropriate and pay over  such
    55  taxes  as required by such section 92-d of the state finance law, in the

        S. 6060--B                          7                         A. 9560--B

     1  manner and to the extent as if sections three and four of this  act  had
     2  not become a law.
     3    §  6. Local election or repeal of year-round exemption, effective June
     4  1, 2005. Notwithstanding any provision of state or local law,  ordinance
     5  or resolution to the contrary:
     6    (a)  Election.  A  county  or city imposing sales and compensating use
     7  taxes pursuant to the authority of  subdivision  (a)  of  section  1210,
     8  1210-A, 1210-B or 1210-C of the tax law, acting through its local legis-
     9  lative  body,  is  hereby  authorized  and empowered to adopt or amend a
    10  local law, ordinance or resolution,  and  a  city  in  which  the  taxes
    11  imposed by section 1107 of the tax law are in effect, acting through its
    12  local  legislative  body, is hereby authorized and empowered to adopt or
    13  amend a resolution, to elect, effective June  1,  2005,  the  year-round
    14  clothing  and  footwear exemption in effect on that date as described in
    15  paragraph 30 of subdivision (a) of section 1115 of the tax law from  its
    16  sales  and compensating use taxes or from taxes imposed in a city having
    17  a population of one million or more by such section 1107 of the tax law.
    18  Such a local law, ordinance or resolution shall be effective only if  it
    19  is  in  the  exact  form  prepared  by  the commissioner of taxation and
    20  finance and such county or city adopts it by  March  1,  2005,  mails  a
    21  certified  copy  of  it  to  the commissioner of taxation and finance by
    22  certified mail by such date and otherwise complies with the requirements
    23  of subdivisions (d) and (e) of section 1210 of the tax law. A resolution
    24  adopted by a city having a population of one million or more in  compli-
    25  ance with this section shall be deemed to amend such section 1107 of the
    26  tax  law as if an act amending such section 1107 had been duly passed by
    27  the state legislature and approved by the governor.
    28    (b) Repeal. A county or city imposing sales and compensating use taxes
    29  pursuant to the authority of subdivision (a) of  section  1210,  1210-A,
    30  1210-B  or  1210-C  of the tax law, acting through its local legislative
    31  body, is hereby authorized and empowered to adopt or amend a local  law,
    32  ordinance  or  resolution,  and  a  city  in  which the taxes imposed by
    33  section 1107 of the tax law are in  effect,  acting  through  its  local
    34  legislative body, is hereby authorized and empowered to adopt or amend a
    35  resolution,  to  repeal, effective June 1, 2005, the year-round clothing
    36  and footwear exemption in effect on that date as described in  paragraph
    37  30  of subdivision (a) of section 1115 of the tax law from its sales and
    38  compensating use taxes or from taxes imposed in a city  having  a  popu-
    39  lation of one million or more by such section 1107 of the tax law, which
    40  exemption it elected to have been effective on June 1, 2004, pursuant to
    41  the  authority  of  part  I3  of chapter 62 of the laws of 2003.  Such a
    42  local law, ordinance or resolution shall be effective only if it  is  in
    43  the  exact form prepared by the commissioner of taxation and finance and
    44  such county or city adopts it by March 1, 2005, mails a  certified  copy
    45  of  it  to the commissioner of taxation and finance by certified mail by
    46  such date and otherwise complies with the requirements  of  subdivisions
    47  (d)  and  (e)  of section 1210 of the tax law. A resolution adopted by a
    48  city having a population of one million or more in compliance with  this
    49  section  shall  be  deemed to amend section 1107 of the tax law as if an
    50  act amending such section 1107 had been duly passed by the state  legis-
    51  lature and approved by the governor.
    52    (c)  Nothing in this section shall be construed to require a county or
    53  city which had elected the year-round clothing  and  footwear  exemption
    54  effective  June 1, 2004, to take any action if it wants such "permanent"
    55  exemption to take effect on June 1, 2005.

        S. 6060--B                          8                         A. 9560--B

     1    § 7. This act shall take effect immediately and shall apply in accord-
     2  ance with the applicable transitional provisions of  sections  1106  and
     3  1217  of  the tax law, provided however that the amendments to paragraph
     4  30 of subdivision (a) of section 1115 of the tax  law  made  by  section
     5  three  of this act shall not affect the expiration of such paragraph and
     6  shall be deemed to expire therewith.

     7                                   PART B

     8    Section 1. Subdivision 4 of section 22 of the public housing  law,  as
     9  amended  by  section  1  of part M of chapter 85 of the laws of 2002, is
    10  amended to read as follows:
    11    4. Statewide limitation. The aggregate dollar amount of  credit  which
    12  the  commissioner  may  allocate  to eligible low-income buildings under
    13  this article  shall  be  [four]  six  million  dollars.  The  limitation
    14  provided by this subdivision applies only to allocation of the aggregate
    15  dollar  amount  of  credit  by  the  commissioner, and does not apply to
    16  allowance to a taxpayer of the credit with respect to an  eligible  low-
    17  income building for each year of the credit period.
    18    § 2. This act shall take effect immediately.

    19                                   PART C

    20    Section  1.  Subdivision 1 of section 183-a of the tax law, as amended
    21  by section 1 of part D of chapter 20 of the laws of 2001, is amended  to
    22  read as follows:
    23    1.  The  term  "corporation"  as used in this section shall include an
    24  association, within the meaning of paragraph three of subsection (a)  of
    25  section  seventy-seven hundred one of the internal revenue code (includ-
    26  ing a limited liability company), a publicly traded partnership  treated
    27  as  a  corporation for purposes of the internal revenue code pursuant to
    28  section seventy-seven hundred four thereof and any business conducted by
    29  a trustee or trustees wherein interest  or  ownership  is  evidenced  by
    30  certificates  or  other  written  instruments. Every corporation, joint-
    31  stock company or association formed for or principally  engaged  in  the
    32  conduct  of  canal,  steamboat,  ferry (except a ferry company operating
    33  between any of the boroughs of the city of New York under a lease grant-
    34  ed by the city),  express,  navigation,  pipe  line,  transfer,  baggage
    35  express,  omnibus,  taxicab, telegraph, or telephone business, or formed
    36  for or principally engaged in the conduct of  two  or  more  such  busi-
    37  nesses, and every corporation, joint-stock company or association formed
    38  for  or  principally  engaged  in the conduct of a railroad, palace car,
    39  sleeping car or trucking business or formed for or  principally  engaged
    40  in  the  conduct of two or more of such businesses and which has made an
    41  election pursuant to subdivision ten of section one hundred eighty-three
    42  of this article, and every other  corporation,  joint-stock  company  or
    43  association  principally  engaged  in the conduct of a transportation or
    44  transmission business, except  a  corporation,  joint-stock  company  or
    45  association  formed for or principally engaged in the conduct of a rail-
    46  road, palace car, sleeping car or trucking business  or  formed  for  or
    47  principally engaged in the conduct of two or more of such businesses and
    48  which  has  not  made  the  election  provided for in subdivision ten of
    49  section one hundred eighty-three of this article, and  except  a  corpo-
    50  ration,  joint-stock  company  or association principally engaged in the
    51  conduct of aviation (including air freight forwarders acting as  princi-
    52  pal and like indirect air carriers) and except a corporation principally

        S. 6060--B                          9                         A. 9560--B

     1  engaged  in  providing  telecommunication  services between aircraft and
     2  dispatcher, aircraft and air  traffic  control  or  ground  station  and
     3  ground  station  (or  any combination of the foregoing), at least ninety
     4  percent  of  the voting stock of which corporation is owned, directly or
     5  indirectly, by air carriers and which corporation's  principal  function
     6  is  to  fulfill  the  requirements  of (i) the federal aviation adminis-
     7  tration (or the successor  thereto)  or  (ii)  the  international  civil
     8  aviation organization (or the successor thereto), relating to the exist-
     9  ence of a communication system between aircraft and dispatcher, aircraft
    10  and  air  traffic  control  or ground station and ground station (or any
    11  combination of the foregoing) for the purposes of air safety and naviga-
    12  tion and except a corporation, joint-stock company or association  which
    13  is  liable  to  taxation  under  [section one hundred eighty-six of this
    14  article or] article thirty-two of this chapter, shall pay for the privi-
    15  lege of exercising its corporate franchise, or of doing business, or  of
    16  employing  capital, or of owning or leasing property in the metropolitan
    17  commuter transportation district in such corporate or organized  capaci-
    18  ty,  or  of  maintaining an office in such district, a tax surcharge for
    19  all or any part of its years commencing on or after January first, nine-
    20  teen hundred eighty-two but ending  before  December  thirty-first,  two
    21  thousand  [five]  nine,  which  tax  surcharge,  in  addition to the tax
    22  imposed by section one hundred eighty-three of this  article,  shall  be
    23  computed  at  the  rate  of eighteen per centum of the tax imposed under
    24  such section one hundred eighty-three for such years or any part of such
    25  years ending before December thirty-first, nineteen hundred eighty-three
    26  after the deduction of any credits otherwise allowable under this  arti-
    27  cle,  and  at  the rate of seventeen per centum of the tax imposed under
    28  such section for such years or any part of such years ending on or after
    29  December thirty-first, nineteen hundred eighty-three after the deduction
    30  of any credits otherwise allowable under this article; provided,  howev-
    31  er,  that  such  rates  of  tax  surcharge shall be applied only to that
    32  portion of the tax imposed under section  one  hundred  eighty-three  of
    33  this  article  after  the  deduction  of any credits otherwise allowable
    34  under this article which is  attributable  to  the  taxpayer's  business
    35  activity  carried  on  within  the  metropolitan commuter transportation
    36  district as so determined in the manner  prescribed  by  the  rules  and
    37  regulations promulgated by the commissioner; and provided, further, that
    38  the  tax surcharge imposed by this section shall not be imposed upon any
    39  taxpayer for more than [two hundred seventy-six] three  hundred  twenty-
    40  four months.
    41    §  2.  Subdivision  1  of  section 184-a of the tax law, as amended by
    42  section 2 of part D of chapter 20 of the laws of  2001,  is  amended  to
    43  read as follows:
    44    1.  The  term  "corporation"  as used in this section shall include an
    45  association, within the meaning of paragraph three of subsection (a)  of
    46  section  seventy-seven hundred one of the internal revenue code (includ-
    47  ing a limited liability company),  and  a  publicly  traded  partnership
    48  treated  as  a  corporation  for  purposes  of the internal revenue code
    49  pursuant to section seventy-seven hundred four thereof.    Every  corpo-
    50  ration,  joint-stock  company  or  association formed for or principally
    51  engaged in the conduct of canal, steamboat, ferry (except a ferry compa-
    52  ny operating between any of the boroughs of the city of New York under a
    53  lease granted by the city), express, navigation,  pipe  line,  transfer,
    54  baggage  express,  omnibus,  taxicab, telegraph or local telephone busi-
    55  ness, or formed for or principally engaged in the conduct of two or more
    56  such businesses, and every corporation, joint-stock company  or  associ-

        S. 6060--B                         10                         A. 9560--B

     1  ation  formed  for  or  principally  engaged in the conduct of a surface
     2  railroad, whether or not operated by steam,  subway  railroad,  elevated
     3  railroad,  palace  car, sleeping car or trucking business or principally
     4  engaged in the conduct of two or more such businesses and which has made
     5  an  election  pursuant to subdivision ten of section one hundred eighty-
     6  three of this article, and every other corporation, joint-stock  company
     7  or  association  formed  for  or principally engaged in the conduct of a
     8  transportation or transmission business (other than  a  telephone  busi-
     9  ness)  except  a  corporation, joint-stock company or association formed
    10  for or principally engaged in the conduct of a surface railroad, whether
    11  or not operated by steam, subway  railroad,  elevated  railroad,  palace
    12  car,  sleeping  car  or  trucking business or principally engaged in the
    13  conduct of two or more such  businesses  and  which  has  not  made  the
    14  election  provided for in subdivision ten of section one hundred eighty-
    15  three of this article, and except a corporation, joint-stock company  or
    16  association  principally  engaged  in the conduct of aviation (including
    17  air freight forwarders acting as principal and like indirect air  carri-
    18  ers)  and except a corporation principally engaged in providing telecom-
    19  munication services between aircraft and dispatcher,  aircraft  and  air
    20  traffic control or ground station and ground station (or any combination
    21  of  the foregoing), at least ninety percent of the voting stock of which
    22  corporation is owned, directly or indirectly, by air carriers and  which
    23  corporation's  principal  function is to fulfill the requirements of (i)
    24  the federal aviation administration (or the successor thereto)  or  (ii)
    25  the  international  civil aviation organization (or the successor there-
    26  to), relating  to  the  existence  of  a  communication  system  between
    27  aircraft  and  dispatcher,  aircraft  and  air traffic control or ground
    28  station and ground station (or any combination of the foregoing) for the
    29  purposes of air safety and navigation and except a  corporation,  joint-
    30  stock  company or association which is liable to taxation under [section
    31  one hundred eighty-six of this article or] article  thirty-two  of  this
    32  chapter,  shall  pay for the privilege of exercising its corporate fran-
    33  chise, or of doing business, or of employing capital, or  of  owning  or
    34  leasing property in the metropolitan commuter transportation district in
    35  such  corporate  or  organized  capacity, or of maintaining an office in
    36  such district, a tax surcharge for all or any part of its taxable  years
    37  commencing  on  or after January first, nineteen hundred eighty-two, but
    38  ending before December thirty-first, two thousand [five] nine, which tax
    39  surcharge, in addition to the tax imposed by section one hundred  eight-
    40  y-four  of  this  article, shall be computed at the rate of eighteen per
    41  centum of the tax imposed under such section one hundred eighty-four for
    42  such taxable years or any part  of  such  taxable  years  ending  before
    43  December thirty-first, nineteen hundred eighty-three after the deduction
    44  of  any  credits otherwise allowable under this article, and at the rate
    45  of seventeen per centum of the tax imposed under such section  for  such
    46  taxable  years  or  any  part  of  such taxable years ending on or after
    47  December thirty-first, nineteen hundred eighty-three after the deduction
    48  of any credits otherwise allowable under this article; provided,  howev-
    49  er,  that  such  rates  of  tax  surcharge shall be applied only to that
    50  portion of the tax imposed under section one hundred eighty-four of this
    51  article after the deduction of any  credits  otherwise  allowable  under
    52  this  article  which is attributable to the taxpayer's business activity
    53  carried on within the metropolitan commuter transportation district; and
    54  provided, further, that the tax surcharge imposed  by  this  section  on
    55  corporations, joint-stock companies and associations formed for or prin-
    56  cipally  engaged in the conduct of telephone or telegraph business shall

        S. 6060--B                         11                         A. 9560--B

     1  be computed in accordance with this subdivision  and  paragraph  (c)  of
     2  subdivision  two  of  this  section  as if the three-quarters of one per
     3  centum rate of tax provided  for  in  subdivision  one  of  section  one
     4  hundred  eighty-four  of  this article were applicable to such telephone
     5  and telegraph businesses for taxable years commencing on or after  Janu-
     6  ary first, nineteen hundred eighty-five and ending on or before December
     7  thirty-first,  nineteen hundred eighty-nine; and provided, further, that
     8  the tax surcharge imposed by this section shall not be imposed upon  any
     9  taxpayer  for  more than [two hundred seventy-six] three hundred twenty-
    10  four months.  Provided, however, that for taxable years beginning in two
    11  thousand and thereafter,  for  purposes  of  this  subdivision  the  tax
    12  imposed  under  section one hundred eighty-four of this article shall be
    13  deemed to have been  imposed  at  the  rate  of  three-quarters  of  one
    14  percent,  except  that in the case of a corporation, joint-stock company
    15  or association which has made an election pursuant to subdivision ten of
    16  section one hundred eighty-three of this article, for purposes  of  this
    17  subdivision  the  tax  imposed  under section one hundred eighty-four of
    18  this article shall be deemed to have been imposed at the  rate  of  six-
    19  tenths of one percent.
    20    The  term  "local  telephone  business" shall have the same meaning as
    21  such term is used in section one hundred eighty-four  of  this  article.
    22  The term "telecommunication services" shall have the meaning ascribed to
    23  such term in section one hundred eighty-six-e of this article.
    24    §  3.  Subdivision  1  of  section 186-c of the tax law, as amended by
    25  section 3 of part D of chapter 20 of the laws of 2001, paragraph (b)  as
    26  amended  by  section  1  of part S of chapter 85 of the laws of 2002, is
    27  amended to read as follows:
    28    1. (a) (1) Every utility doing business in the  metropolitan  commuter
    29  transportation  district  shall  pay a tax surcharge, in addition to the
    30  tax imposed by section one hundred eighty-six-a of this article, for all
    31  or any parts of its taxable years commencing on or after January  first,
    32  nineteen hundred eighty-two but ending before December thirty-first, two
    33  thousand  [five] nine, to be computed at the rate of eighteen per centum
    34  of the tax imposed under section one hundred eighty-six-a of this  arti-
    35  cle  for  such  taxable  years  or any part of such taxable years ending
    36  before December thirty-first, nineteen hundred  eighty-three  after  the
    37  deduction  of any credits otherwise allowable under this article, and at
    38  the rate of seventeen per centum of the tax imposed under  such  section
    39  for  such  taxable  years or any part of such taxable years ending on or
    40  after December thirty-first, nineteen  hundred  eighty-three  after  the
    41  deduction  of  credits otherwise allowable under this article except any
    42  utility credit provided for  by  article  thirteen-A  of  this  chapter;
    43  provided,  however,  that  such  rates of tax surcharge shall be applied
    44  only to that portion of the tax imposed under section one hundred eight-
    45  y-six-a of this article after the deduction of credits otherwise  allow-
    46  able under this article, except any utility credit provided for by arti-
    47  cle  thirteen-A of this chapter, which is attributable to the taxpayer's
    48  gross income or gross operating income from business activity carried on
    49  within the metropolitan commuter transportation district; and  provided,
    50  further,  that  the  tax  surcharge imposed by this section shall not be
    51  imposed upon any taxpayer for more than [two hundred seventy-six]  three
    52  hundred twenty-four months.
    53    (2)  Provided however, that commencing January first, two thousand, in
    54  the case of the tax imposed under paragraph (a) of  subdivision  one  of
    55  section  one hundred eighty-six-a of this article (relating to providers
    56  of telecommunications services) such tax surcharge shall  be  calculated

        S. 6060--B                         12                         A. 9560--B

     1  as  if  the  tax  imposed under section one hundred eighty-six-a of this
     2  article were imposed at a rate of three and one-half percent.
     3    (b)  In  addition  to the surcharge imposed by [subdivision] paragraph
     4  (a) of this [section] subdivision, there is hereby imposed  a  surcharge
     5  on  the  gross  receipts from telecommunication services relating to the
     6  metropolitan commuter transportation district at the rate  of  seventeen
     7  percent  of the state tax rate under section one hundred eighty-six-e of
     8  this article for all or part of taxable years commencing  on  and  after
     9  January  first,  nineteen hundred ninety-five but ending before December
    10  thirty-first, two thousand [five] nine.  All the definitions  and  other
    11  provisions  of  section  one  hundred eighty-six-e of this article shall
    12  apply to the tax imposed by this paragraph with  such  modification  and
    13  limitation as may be necessary (including substituting the words "metro-
    14  politan commuter transportation district" for "state" where appropriate)
    15  in  order to adapt the language of such section one hundred eighty-six-e
    16  of this article to the surcharge imposed by this paragraph  within  such
    17  metropolitan  commuter  transportation district so as to include (1) any
    18  intra-district telecommunication services, except any  telecommunication
    19  services the gross receipts from which are subject to tax under subpara-
    20  graph  four  of this paragraph, (2) any inter-district telecommunication
    21  services which originate or terminate in such district and  are  charged
    22  to a service address therein regardless of where the amounts charged for
    23  such  services  are  billed  or ultimately paid, except any telecommuni-
    24  cations services the gross receipts from which are subject to tax  under
    25  subparagraph  four  of  this  paragraph,  (3)  as  apportioned  to  such
    26  district, private telecommunication services,  except  any  telecommuni-
    27  cation  services  the gross receipts from which are subject to tax under
    28  subparagraph four of this paragraph, and (4)  mobile  telecommunications
    29  service  provided  by a home service provider where the place of primary
    30  use  is  within  such  metropolitan  commuter  transportation  district.
    31  Provided  however,  commencing  October  first, nineteen hundred ninety-
    32  eight such tax surcharge shall be calculated as if the tax imposed under
    33  section one hundred eighty-six-e of this article were imposed at a  rate
    34  of three and one-half percent.
    35    §  4.  Subdivision  1  of  section 209-B of the tax law, as amended by
    36  section 5 of part D of chapter 20 of the laws of  2001,  is  amended  to
    37  read as follows:
    38    1.  For  the  privilege  of  exercising its corporate franchise, or of
    39  doing business, or of employing capital, or of owning or leasing proper-
    40  ty in a corporate or organized capacity, or of maintaining an office  in
    41  the  metropolitan  commuter transportation district, for all or any part
    42  of its taxable year, there is hereby imposed on every corporation, other
    43  than a New York S corporation, subject to tax under section two  hundred
    44  nine  of  this  article,  or any receiver, referee, trustee, assignee or
    45  other fiduciary, or any officer or agent appointed  by  any  court,  who
    46  conducts  the  business  of  any such corporation, for the taxable years
    47  commencing on or after January first, nineteen  hundred  eighty-two  but
    48  ending  before  December  thirty-first,  two thousand [five] nine, a tax
    49  surcharge, in addition to the tax imposed under section two hundred nine
    50  of this article, to be computed at the rate of eighteen  per  centum  of
    51  the  tax  imposed  under  such section two hundred nine for such taxable
    52  years or any part of such taxable years ending before  December  thirty-
    53  first,  nineteen hundred eighty-three after the deduction of any credits
    54  otherwise allowable under this article, and at the rate of seventeen per
    55  centum of the tax imposed under such section for such taxable  years  or
    56  any part of such taxable years ending on or after December thirty-first,

        S. 6060--B                         13                         A. 9560--B

     1  nineteen  hundred eighty-three after the deduction of any credits other-
     2  wise allowable under this article; provided, however, that such rates of
     3  tax surcharge shall be applied only to that portion of the  tax  imposed
     4  under  section  two  hundred nine of this article after the deduction of
     5  any credits otherwise allowable under this article which is attributable
     6  to the taxpayer's business activity carried on within  the  metropolitan
     7  commuter  transportation  district;  and provided, further, that the tax
     8  surcharge imposed by this section shall not be imposed upon any taxpayer
     9  for more  than  [two  hundred  seventy-six]  three  hundred  twenty-four
    10  months.  Provided however, that for taxable years commencing on or after
    11  July first, nineteen  hundred  ninety-eight,  such  surcharge  shall  be
    12  calculated  as  if the tax imposed under section two hundred ten of this
    13  article were imposed under the law in effect for taxable years  commenc-
    14  ing  on  or  after  July first, nineteen hundred ninety-seven and before
    15  July first, nineteen hundred ninety-eight.
    16    § 5. Subsection 1 of section 1455-B of the  tax  law,  as  amended  by
    17  section  6  of  part  D of chapter 20 of the laws of 2001, is amended to
    18  read as follows:
    19    1. For the privilege of exercising its franchise or doing business  in
    20  the  metropolitan  commuter  transportation  district  in a corporate or
    21  organized capacity, there is hereby imposed on every taxpayer subject to
    22  tax under this article, other than a New York  S  corporation,  for  the
    23  taxable  years  commencing  on  or after January first, nineteen hundred
    24  eighty-two but ending before December thirty-first, two thousand  [five]
    25  nine,  a  tax  surcharge,  in  addition to the tax imposed under section
    26  fourteen hundred fifty-one of this article, at the rate of eighteen  per
    27  centum  of the tax imposed under such section fourteen hundred fifty-one
    28  of this article, for such taxable years or  any  part  of  such  taxable
    29  years ending before December thirty-first, nineteen hundred eighty-three
    30  after  the deduction of any credits otherwise allowable under this arti-
    31  cle, and at the rate of seventeen per centum of the  tax  imposed  under
    32  such  section  for  such taxable years or any part of such taxable years
    33  ending on or after December thirty-first, nineteen hundred  eighty-three
    34  after  the deduction of any credits otherwise allowable under this arti-
    35  cle; provided however, that such rates of tax surcharge shall be applied
    36  only to that portion of the tax imposed under section  fourteen  hundred
    37  fifty-one  of  this article after the deduction of any credits otherwise
    38  allowable under this article which is  attributable  to  the  taxpayer's
    39  business  activity carried on within the metropolitan commuter transpor-
    40  tation district; and provided, further, that the tax  surcharge  imposed
    41  by  this  section  shall  not be imposed upon any taxpayer for more than
    42  [two hundred seventy-six] three  hundred  twenty-four  months.  Provided
    43  however,  that  for taxable years commencing on or after July first, two
    44  thousand, such surcharge shall be calculated as if the rate of the basic
    45  tax computed under subsection (a) of section fourteen hundred fifty-five
    46  of this article was nine percent.
    47    § 6. Subdivision (a) of section 1505-a of the tax law, as  amended  by
    48  section  5  of part H3 of chapter 62 of the laws of 2003, paragraph 2 as
    49  amended by section 1 of part Z of chapter 686 of the laws  of  2003,  is
    50  amended to read as follows:
    51    (a)  (1)  Every  domestic  insurance  corporation and every foreign or
    52  alien  insurance  corporation,  and  every  life  insurance  corporation
    53  described  in  subdivision  (b)  of  section fifteen hundred one of this
    54  article, for the privilege of exercising its corporate franchise, or  of
    55  doing business, or of employing capital, or of owning or leasing proper-
    56  ty  in  the metropolitan commuter transportation district in a corporate

        S. 6060--B                         14                         A. 9560--B

     1  or organized capacity, or of maintaining an office in  the  metropolitan
     2  commuter  transportation  district,  for  all or any part of its taxable
     3  years commencing on or after January first, nineteen hundred eighty-two,
     4  but  ending  before  December  thirty-first,  two  thousand [five] nine,
     5  except corporations specified in  subdivision  (c)  of  section  fifteen
     6  hundred  twelve  of this article, shall annually pay, in addition to the
     7  taxes otherwise imposed by this article, a tax surcharge  on  the  taxes
     8  imposed  under this article after the deduction of any credits otherwise
     9  allowable under this article as allocated to such district.  Such  taxes
    10  shall  be  allocated to such district for purposes of computing such tax
    11  surcharge upon taxpayers subject to tax under subdivision (b) of section
    12  fifteen hundred ten of this article by applying the methodology,  proce-
    13  dures  and computations set forth in subdivisions (a) and (b) of section
    14  fifteen hundred four of this article, except that  references  to  terms
    15  denoting  New York premiums, and total wages, salaries, personal service
    16  compensation and commissions within New York shall be read  as  denoting
    17  within  the  metropolitan  commuter  transportation  district  and terms
    18  denoting total premiums and  total  wages,  salaries,  personal  service
    19  compensation and commissions shall be read as denoting within the state.
    20  If it shall appear to the commissioner that the application of the meth-
    21  odology,  procedures and computations set forth in such subdivisions (a)
    22  and (b) does not properly reflect the activity, business or income of  a
    23  taxpayer  within the metropolitan commuter transportation district, then
    24  the commissioner shall be authorized, in the commissioner's  discretion,
    25  to  adjust such methodology, procedures and computations for the purpose
    26  of allocating such taxes by:
    27    (A) excluding one or more factors therein;
    28    (B) including one or more other factors  therein,  such  as  expenses,
    29  purchases,  receipts  other  than  premiums,  real  property or tangible
    30  personal property; or
    31    (C) any other similar or different method which allocates  such  taxes
    32  by  attributing a fair and proper portion of such taxes to the metropol-
    33  itan commuter transportation district. The  commissioner  from  time  to
    34  time  shall  publish all rulings of general public interest with respect
    35  to any application of the provisions  of  the  preceding  sentence.  The
    36  commissioner  may  promulgate rules and regulations to further implement
    37  the provisions of this section.
    38    (2) Such taxes shall be allocated to such  district  for  purposes  of
    39  computing such tax surcharge upon taxpayers subject to tax under section
    40  fifteen hundred two-a of this article pursuant to a fraction, the denom-
    41  inator  of  which  shall  be  the  direct  premiums subject to tax under
    42  section fifteen hundred ten of this article, and the numerator of  which
    43  shall  be  the  direct  premiums  subject  to  tax under section fifteen
    44  hundred ten of this article that are written on risks located  or  resi-
    45  dent  in  the  metropolitan  commuter transportation district, including
    46  premiums written, procured or  received  in  the  metropolitan  commuter
    47  transportation district on business that cannot be specifically assigned
    48  as  located  or resident in an area of New York state outside the metro-
    49  politan commuter transportation district, or in another state or states;
    50  provided, however, in the case of special risk premiums,  the  numerator
    51  shall  include  only those premiums written, procured or received in the
    52  metropolitan commuter  transportation  district  on  property  or  risks
    53  located   or   resident  in  the  metropolitan  commuter  transportation
    54  district. If it shall appear to the commissioner that the application of
    55  the methodology, procedures and computations set forth in this paragraph
    56  does not properly reflect the activity, business or income of a taxpayer

        S. 6060--B                         15                         A. 9560--B

     1  within the  metropolitan  commuter  transportation  district,  then  the
     2  commissioner  shall  be authorized, in the commissioner's discretion, to
     3  adjust such methodology, procedures and computations for the purpose  of
     4  allocating such taxes by: (A) excluding the factor therein and including
     5  one  or  more  other factors such as expenses, purchases, receipts other
     6  than premiums, real property or tangible personal property; or  (B)  any
     7  other  similar  or different method which allocates such taxes by attri-
     8  buting a fair and proper portion  of  such  taxes  to  the  metropolitan
     9  commuter  transportation  district.  The  commissioner from time to time
    10  shall publish all rulings of general public interest with respect to any
    11  application of the provisions of the preceding sentence. The commission-
    12  er may  promulgate  rules  and  regulations  to  further  implement  the
    13  provisions of this section.
    14    (3)  Such  tax surcharge shall be computed at the rate of eighteen per
    15  centum of the taxes imposed  under  sections  fifteen  hundred  one  and
    16  fifteen  hundred  ten  of  this  article  as  limited by section fifteen
    17  hundred five of this article, as allocated to such  district,  for  such
    18  taxable  years  or any part of such taxable years ending before December
    19  thirty-first, nineteen hundred eighty-three after the deduction  of  any
    20  credits otherwise allowable under this article, at the rate of seventeen
    21  per  centum  of  the  taxes  imposed  under  such sections as limited by
    22  section fifteen hundred five of  this  article,  as  allocated  to  such
    23  district,  for  such  taxable  years  or  any part of such taxable years
    24  ending on or after December thirty-first, nineteen hundred  eighty-three
    25  and  before January first, two thousand three after the deduction of any
    26  credits otherwise allowable under this  article,  and  at  the  rate  of
    27  seventeen per centum of the taxes imposed under sections fifteen hundred
    28  one,  fifteen hundred two-a, and fifteen hundred ten of this article, as
    29  limited or otherwise determined by subdivision (a)  or  (b)  of  section
    30  fifteen hundred five of this article, as allocated to such district, for
    31  such taxable years or any part of such taxable years ending after Decem-
    32  ber  thirty-first,  two  thousand two after the deduction of any credits
    33  otherwise allowable under this article; provided, however, that the  tax
    34  surcharge imposed by this section shall not be imposed upon any taxpayer
    35  for  more  than  [two  hundred  seventy-six]  three  hundred twenty-four
    36  months. Provided however, that for taxable years commencing on or  after
    37  July  first,  two  thousand, and in the case of taxpayers subject to tax
    38  under section fifteen hundred two-a of this article, for  taxable  years
    39  of  such  taxpayers  beginning  on or after July first, two thousand and
    40  before January first, two thousand three, such surcharge shall be calcu-
    41  lated as if (i) the rate of the tax  computed  under  paragraph  one  of
    42  subdivision  (a) of section fifteen hundred two of this article was nine
    43  percent and (ii) the rate of the limitation on tax set forth in  section
    44  fifteen  hundred  five  of  this article for domestic, foreign and alien
    45  insurance corporations except life insurance corporations  was  two  and
    46  six-tenths percent.
    47    § 7. This act shall take effect immediately.

    48                                   PART D

    49    Section  1.  Subdivisions 3, 4, 5, 6 and 9 of section 187-b of the tax
    50  law, subdivisions 3, 4 and 6 as added by section 127 of part A of  chap-
    51  ter 389 of the laws of 1997, subdivision 5 and paragraph (e) of subdivi-
    52  sion  6  as  added,  subdivision  6  as  renumbered and subdivision 9 as
    53  amended by chapter 597 of the laws of  2002,  are  amended  to  read  as
    54  follows:

        S. 6060--B                         16                         A. 9560--B

     1    3.  Clean-fuel  vehicle  property.  The  credit under this section for
     2  clean-fuel vehicle property shall equal sixty percent of the cost of any
     3  such property
     4    (a)  for which a deduction is allowed under section one hundred seven-
     5  ty-nine-A of the internal revenue code (determined without regard to the
     6  limitations prescribed in  paragraph  one  of  subsection  (b)  of  such
     7  section  or  the  election referred to in subsection (e) of such section
     8  with respect to section one hundred seventy-nine of such code), but  not
     9  including  clean-fuel  vehicle  property  relating to a qualified hybrid
    10  vehicle as such vehicle is defined in subparagraph (E) of paragraph  six
    11  of subsection (p) of section six hundred six of this chapter, and
    12    (b)  which  is installed in or manufactured as part of a motor vehicle
    13  which is registered in this state,
    14    (c) provided, however, the credit with respect  to  any  such  vehicle
    15  shall  not  exceed five thousand dollars per vehicle for vehicles with a
    16  gross vehicle weight rating of fourteen thousand pounds or less and  ten
    17  thousand dollars per vehicle for all other vehicles.
    18    4.  Clean-fuel  vehicle  refueling  property.  The  credit  under this
    19  section for clean-fuel vehicle  refueling  property  shall  equal  fifty
    20  percent of the cost of any such property
    21    (a) which is located in this state and
    22    (b)  for which a deduction is allowed under section one hundred seven-
    23  ty-nine-A of the internal revenue code (determined without regard to the
    24  limitations prescribed in  paragraph  two  of  subsection  (b)  of  such
    25  section  or  the  election referred to in subsection (e) of such section
    26  with respect to section one hundred seventy-nine of such code), but  not
    27  including  clean-fuel  refueling property relating to a qualified hybrid
    28  vehicle as such vehicle is defined in subparagraph (E) of paragraph  six
    29  of subsection (p) of section six hundred six of this chapter.
    30    5. Qualified hybrid vehicles. The credit under this section for quali-
    31  fied hybrid vehicles shall equal two thousand dollars per vehicle regis-
    32  tered in this state[; provided, however, that such vehicle may not qual-
    33  ify  for  both  the  credit  under  this  subdivision and the clean-fuel
    34  vehicle property credit permitted by subdivision three of this section].
    35    6. Definitions. (a) The term  "electric  vehicle"  means  a  qualified
    36  electric  vehicle within the meaning of subsection (c) of section thirty
    37  of the internal revenue code.
    38    (b) The terms "clean-fuel vehicle property"  and  "clean-fuel  vehicle
    39  refueling property" mean any such property which is qualified within the
    40  meaning of subsections (c) and (d), respectively, of section one hundred
    41  seventy-nine-A  of  the  internal revenue code, but such terms shall not
    42  include clean-fuel vehicle  property  or  clean-fuel  vehicle  refueling
    43  property  relating  to  a  qualified  hybrid  vehicle as such vehicle is
    44  defined in subparagraph (E)  of  paragraph  six  of  subsection  (p)  of
    45  section six hundred six of this chapter.
    46    (c)  The term "clean-fuel" means natural gas, liquefied petroleum gas,
    47  hydrogen, electricity, and any other fuel which is at least [eight-five]
    48  eighty-five percent, singly or in combination,  methanol,  ethanol,  any
    49  other alcohol, or ether.
    50    (d)  The  term "incremental cost" shall mean the excess of the cost of
    51  an electric vehicle over the cost of a gasoline-powered vehicle which is
    52  similar in size and style.
    53    (e) The term "qualified hybrid vehicle" shall have the same meaning as
    54  provided for under subparagraph (E) of paragraph six of  subsection  (p)
    55  of section six hundred six of this chapter.

        S. 6060--B                         17                         A. 9560--B

     1    9.  Termination.  This  section  shall not apply to property placed in
     2  service in taxable years  beginning  after  December  thirty-first,  two
     3  thousand [three] four.
     4    §  2.  Subparagraph (ii) of paragraph (a) of subdivision 24 of section
     5  210 of the tax law, as amended by section 1 of part J of chapter  63  of
     6  the laws of 2000, is amended to read as follows:
     7    (ii)  For  purposes  of this subdivision, the term "governmental unit"
     8  means the United States, any state or political subdivision thereof, any
     9  possession of the United States, or any agency or instrumentality of any
    10  of the foregoing. For taxable years beginning in  two  thousand  through
    11  two  thousand  [three] four, in the case of electric vehicles, or clean-
    12  fuel vehicle property which is installed in or manufactured as part of a
    13  motor vehicle, where such vehicles are sold or first leased  during  the
    14  taxable  year  to  a governmental unit, a credit shall be allowed, to be
    15  computed as hereinafter provided, against the tax imposed by this  arti-
    16  cle,  provided  that  (A)  with  respect  to such vehicles first sold or
    17  leased to a governmental unit during  taxable  years  beginning  in  two
    18  thousand  and two thousand one, the taxpayer executes a written contract
    19  with such governmental unit on or before December thirty-first, nineteen
    20  hundred ninety-nine for such sale or lease of such vehicles, and (B)  as
    21  a  result  of  the  production,  manufacture  or installation activities
    22  relating to such vehicles, at  least  twenty-five  new  full-time  jobs,
    23  excluding  those  of  general  executive  officers,  are created in this
    24  state. The total amount of credit for both electric vehicles and  clean-
    25  fuel  vehicle  property  allowable to a taxpayer under this subparagraph
    26  for taxable years beginning in two thousand and two thousand one,  taken
    27  in  the  aggregate,  shall  not exceed two million five hundred thousand
    28  dollars, and with respect to such vehicles first sold  or  leased  to  a
    29  governmental  unit  during  taxable  years beginning in two thousand two
    30  [and], two thousand three and two thousand four, the  amount  of  credit
    31  for  both  electric  vehicles  and clean-fuel vehicle property shall not
    32  exceed two million five hundred thousand in the case  of  each  of  such
    33  years two thousand two [and], two thousand three and two thousand four.
    34    §  3.  Paragraphs  (c),  (d),  (e),  (f)  and (i) of subdivision 24 of
    35  section 210 of the tax law, paragraph (c) as amended  by  section  1  of
    36  part  R  of  chapter  407 of the laws of 1999, paragraph (d) as added by
    37  section 128 of part A of chapter 389 of the laws of 1997, paragraph  (e)
    38  and  subparagraph (v) of paragraph (f) as added, paragraph (f) as relet-
    39  tered and paragraph (i) as amended by chapter 597 of the laws  of  2002,
    40  and paragraph (f) as added by section 40 of part A of chapter 389 of the
    41  laws of 1997, are amended to read as follows:
    42    (c) Clean-fuel vehicle property. The credit under this subdivision for
    43  clean-fuel vehicle property shall equal sixty percent of the cost of any
    44  such property
    45    (i)  for which a deduction is allowed under section one hundred seven-
    46  ty-nine-A of the internal revenue code (determined without regard to the
    47  limitations prescribed in  paragraph  one  of  subsection  (b)  of  such
    48  section  or  the  election referred to in subsection (e) of such section
    49  with respect to section one hundred seventy-nine of such code or, in the
    50  case of clean-fuel vehicle property which is installed  in  or  manufac-
    51  tured  as part of a motor vehicle sold or leased to a governmental unit,
    52  without regard to paragraph five of subsection (e) of such section inso-
    53  far as it relates to property  used  by  governmental  units),  but  not
    54  including  clean-fuel  vehicle  property  relating to a qualified hybrid
    55  vehicle as such vehicle is defined in subparagraph (E) of paragraph  six
    56  of subsection (p) of section six hundred six of this chapter, and

        S. 6060--B                         18                         A. 9560--B

     1    (ii)  which is installed in or manufactured as part of a motor vehicle
     2  which is registered in this state or, in the case of clean-fuel  vehicle
     3  property  which is installed in or manufactured as part of a motor vehi-
     4  cle sold or leased to a governmental unit, the installation or  manufac-
     5  ture of which takes place in this state,
     6    (iii)  provided,  however, the credit with respect to any such vehicle
     7  shall not exceed five thousand dollars per vehicle for vehicles  with  a
     8  gross  vehicle weight rating of fourteen thousand pounds or less and ten
     9  thousand dollars per vehicle for all other vehicles.
    10    (d) Clean-fuel vehicle  refueling  property.  The  credit  under  this
    11  subdivision  for clean-fuel vehicle refueling property shall equal fifty
    12  percent of the cost of any such property
    13    (i) which is located in this state and
    14    (ii) for which a deduction is allowed under section one hundred seven-
    15  ty-nine-A of the internal revenue code (determined without regard to the
    16  limitations prescribed in  paragraph  two  of  subsection  (b)  of  such
    17  section  or  the  election referred to in subsection (e) of such section
    18  with respect to section one hundred seventy-nine of such code), but  not
    19  including  clean-fuel vehicle refueling property relating to a qualified
    20  hybrid vehicle as such vehicle is defined in subparagraph (E)  of  para-
    21  graph six of subsection (p) of section six hundred six of this chapter.
    22    (e)  Qualified  hybrid vehicles. The credit under this subdivision for
    23  qualified hybrid vehicles shall equal two thousand dollars  per  vehicle
    24  registered  in this state[; provided, however, that such vehicle may not
    25  qualify for both the credit under  this  paragraph  and  the  clean-fuel
    26  vehicle property credit permitted by paragraph (c) of this subdivision].
    27    (f)  Definitions.  (i)  The  term "electric vehicle" means a qualified
    28  electric vehicle within the meaning of subsection (c) of section  thirty
    29  of the internal revenue code.
    30    (ii)  The  terms "clean-fuel vehicle property" and "clean-fuel vehicle
    31  refueling property" mean any such property which is qualified within the
    32  meaning of subsections (c) and (d), respectively, of section one hundred
    33  seventy-nine-A of the internal revenue code, but such  terms  shall  not
    34  include  clean-fuel  vehicle  property  or  clean-fuel vehicle refueling
    35  property relating to a qualified  hybrid  vehicle  as  such  vehicle  is
    36  defined  in  subparagraph  (E)  of  paragraph  six  of subsection (p) of
    37  section six hundred six of this chapter.
    38    (iii) The  term "clean-fuel"  means natural gas,  liquefied  petroleum
    39  gas,  hydrogen,    electricity,  and any other   fuel which  is at least
    40  eighty-five percent, singly or in combination,  methanol,  ethanol,  any
    41  other alcohol, or ether.
    42    (iv)  The term "incremental cost" shall mean the excess of the cost of
    43  an electric vehicle over the cost of a gasoline-powered vehicle which is
    44  similar in size and style.
    45    (v) The term "qualified hybrid vehicle" shall have the same meaning as
    46  provided for under subparagraph (E) of paragraph six of  subsection  (p)
    47  of section six hundred six of this chapter.
    48    (i) Termination. Subparagraph (i) of paragraph (a) of this subdivision
    49  shall not apply to property placed in service in taxable years beginning
    50  after  December thirty-first, two thousand [three] four and subparagraph
    51  (ii) of paragraph (a) of this subdivision shall not  apply  to  property
    52  sold  or  first leased in taxable years beginning after December thirty-
    53  first, two thousand [three] four.
    54    § 4. Paragraphs 3, 4, 5, 6 and 9 of subsection (p) of section  606  of
    55  the  tax law, paragraphs 3, 4 and 6 as added by section 129 of part A of
    56  chapter 389 of the laws of 1997, paragraph 5  and  subparagraph  (E)  of

        S. 6060--B                         19                         A. 9560--B

     1  paragraph  6  as  added,  paragraph  6 as renumbered, and paragraph 9 as
     2  amended by chapter 597 of the laws of  2002,  are  amended  to  read  as
     3  follows:
     4    (3)  Clean-fuel vehicle property. The credit under this subsection for
     5  clean-fuel vehicle property shall equal sixty percent of the cost of any
     6  such property
     7    (A) for which a deduction is allowed under section one hundred  seven-
     8  ty-nine-A of the internal revenue code (determined without regard to the
     9  limitations  prescribed  in  paragraph  one  of  subsection  (b) of such
    10  section or the election referred to in subsection (e)  of  such  section
    11  with  respect to section one hundred seventy-nine of such code), but not
    12  including clean-fuel vehicle property relating  to  a  qualified  hybrid
    13  vehicle  as such vehicle is defined in subparagraph (E) of paragraph six
    14  of this subsection and
    15    (B) which is installed in or manufactured as part of a  motor  vehicle
    16  which is registered in this state,
    17    (C)  provided,  however,  the  credit with respect to any such vehicle
    18  shall not exceed five thousand dollars per vehicle for vehicles  with  a
    19  gross  vehicle weight rating of fourteen thousand pounds or less and ten
    20  thousand dollars per vehicle for all other vehicles.
    21    (4) Clean-fuel vehicle  refueling  property.  The  credit  under  this
    22  subsection  for  clean-fuel vehicle refueling property shall equal fifty
    23  percent of the cost of any such property
    24    (A) which is located in this state and
    25    (B) for which a deduction is allowed under section one hundred  seven-
    26  ty-nine-A of the internal revenue code (determined without regard to the
    27  limitations  prescribed  in  paragraph  two  of  subsection  (b) of such
    28  section or the election referred to in subsection (e)  of  such  section
    29  with  respect to section one hundred seventy-nine of such code), but not
    30  including clean-fuel vehicle refueling property relating to a  qualified
    31  hybrid  vehicle  as such vehicle is defined in subparagraph (E) of para-
    32  graph six of this subsection.
    33    (5) Qualified hybrid vehicle. The credit  under  this  subsection  for
    34  qualified  hybrid  vehicles shall equal two thousand dollars per vehicle
    35  registered in this state[; provided, however, that such vehicle may  not
    36  qualify  for  both  the  credit  under this paragraph and the clean-fuel
    37  vehicle  property  credit  permitted  by   paragraph   three   of   this
    38  subsection].
    39    (6)  Definitions.  (A)  The  term "electric vehicle" means a qualified
    40  electric vehicle within the meaning of subsection (c) of section  thirty
    41  of the internal revenue code.
    42    (B)  The  terms  "clean-fuel vehicle property" and "clean-fuel vehicle
    43  refueling property" mean any such property which is qualified within the
    44  meaning of subsections (c) and (d), respectively, of section one hundred
    45  seventy-nine-A of the internal revenue code, but such  terms  shall  not
    46  include  clean-fuel  vehicle  property  or  clean-fuel vehicle refueling
    47  property relating to a qualified  hybrid  vehicle  as  such  vehicle  is
    48  defined in subparagraph (E) of this paragraph.
    49    (C)  The term "clean-fuel" means natural gas, liquefied petroleum gas,
    50  hydrogen, electricity, and any other fuel which is at least  eighty-five
    51  percent, singly or in combination, methanol, ethanol, any other alcohol,
    52  or ether.
    53    (D)  The  term "incremental cost" shall mean the excess of the cost of
    54  an electric vehicle over the cost of a gasoline-powered vehicle which is
    55  similar in size and style.

        S. 6060--B                         20                         A. 9560--B

     1    (E) The term "qualified hybrid vehicle"  means  a  motor  vehicle,  as
     2  defined  in  section  one hundred twenty-five of the vehicle and traffic
     3  law, other than an electric vehicle (as such term is defined in subpara-
     4  graph (A) of this paragraph), that:
     5    (i) draws propulsion energy from both
     6    (a)  an internal combustion engine (or heat engine that uses combusti-
     7  ble fuel); and
     8    (b) an energy storage device; and
     9    (ii) employs a regenerative vehicle braking system that recovers waste
    10  energy to charge such energy storage device.
    11    (9) Termination. This subsection shall not apply to property placed in
    12  service in taxable years  beginning  after  December  thirty-first,  two
    13  thousand [three] four.
    14    § 5. Paragraph 1 of subdivision (p) of section 1115 of the tax law, as
    15  amended  by  chapter  597  of  the  laws  of 2002, is amended to read as
    16  follows:
    17    (1) That portion of the receipts from the retail sale of a new  alter-
    18  native  fuel  vehicle  which  is attributable to the incremental cost of
    19  such vehicle shall be exempt from the tax imposed under subdivision  (a)
    20  of  section  eleven hundred five of this article and that portion of the
    21  consideration given or contracted to be given for such a  vehicle  which
    22  is  attributable to the incremental cost of such vehicle shall be exempt
    23  from the compensating use tax imposed under section eleven  hundred  ten
    24  of this article, but only where the incremental cost is separately stat-
    25  ed  in  the  written  contract,  if  any, or on the bill rendered to the
    26  purchaser; provided that the incremental cost of a two thousand  through
    27  two  thousand  two  model  year  qualified hybrid vehicle need not be so
    28  separately stated; provided, further, that the  incremental  cost  of  a
    29  qualified  hybrid  vehicle  purchased  between March first, two thousand
    30  four, and the date the chapter of the laws of two  thousand  four  which
    31  amends this paragraph becomes a law need not be so separately stated.
    32    §  6.  Subparagraph  (iv) of paragraph 5 of subdivision (p) of section
    33  1115 of the tax law, as amended by chapter 597 of the laws of  2002,  is
    34  amended to read as follows:
    35    (iv)  "incremental cost" means the increased sale price of an alterna-
    36  tive fuel vehicle, above the sale price of a  comparable  motor  vehicle
    37  similar  in all other respects but for the equipment necessary to render
    38  it an alternative fuel vehicle, which increased sale price is  attribut-
    39  able  to  such  vehicle  being equipped to render it an alternative fuel
    40  vehicle. [If no such comparable motor vehicle exists with respect  to  a
    41  qualified  hybrid  vehicle,  the  incremental  cost] Notwithstanding the
    42  foregoing, the incremental cost of a qualified hybrid vehicle  shall  be
    43  three thousand dollars;
    44    §  7.  Subdivision  21  of section 219 of part A of chapter 389 of the
    45  laws of 1997, amending the tax law, the  banking  law,  and  other  laws
    46  relating  to the 1997-1998 fiscal plan, as amended by chapter 597 of the
    47  laws of 2002, is amended to read as follows:
    48    (21) sections one hundred twenty-seven through one hundred  thirty  of
    49  this  act  shall  apply  to  property placed in service in taxable years
    50  beginning on or after January 1, 1998, and section one  hundred  thirty-
    51  one  of  this act shall take effect March 1, 1998 and shall apply to the
    52  period commencing on such date and ending on  February  [29,  2004]  28,
    53  2005,  without  interruption, when upon such ending date subdivision (p)
    54  of section 1115 of the tax law shall be deemed REPEALED, provided howev-
    55  er, that the commissioner of taxation and finance may  take  any  action
    56  with  respect  to  the  adoption, amendment, suspension or repeal of any

        S. 6060--B                         21                         A. 9560--B

     1  rule or regulation relating to sections one hundred twenty-seven through
     2  one hundred thirty-two of this act,  and  may  establish  any  procedure
     3  necessary for the timely implementation thereof;
     4    §  8.  This act shall take effect immediately; provided, however, that
     5  sections one through four of this  act  shall  apply  to  taxable  years
     6  beginning  on or after January 1, 2004; provided, further, that sections
     7  five, six and seven of this act shall be deemed to  have  been  in  full
     8  force  and  effect  on and after March 1, 2004, and shall apply to sales
     9  made, services rendered and uses occurring after March 1, 2004, although
    10  made or occurring under a prior contract; and  provided,  further,  that
    11  the amendments to subdivision (p) of section 1115 of the tax law made by
    12  sections  five  and  six of this act shall not affect the repeal of such
    13  subdivision and  shall  be  deemed  repealed  therewith;  and  provided,
    14  further,  that the commissioner of taxation and finance shall be author-
    15  ized on and after the date this act shall have become a law to adopt and
    16  amend any rules or  regulations  and  issue  any  procedures,  forms  or
    17  instructions  necessary  to  implement the provisions of this act on its
    18  effective date.

    19                                   PART E

    20    Section 1. Subparagraph 1 of paragraph (d) of subdivision 1 of section
    21  210 of the tax law, as amended by section 12 of part A of chapter 56  of
    22  the laws of 1998, is amended to read as follows:
    23    (1)  The  amount  prescribed by this paragraph shall be for a taxpayer
    24  which during the taxable year has:
    25    (A) a gross payroll of twenty-five million dollars or more, ten  thou-
    26  sand dollars;
    27    (B) a gross payroll of less than twenty-five million dollars, but more
    28  than  six  million  two  hundred fifty thousand dollars [or more], [one]
    29  five thousand [five hundred] dollars;
    30    [(B)] (C) a gross payroll of [less than] no more than six million  two
    31  hundred  fifty  thousand dollars but more than one million dollars, four
    32  hundred twenty-five dollars;
    33    [(C)] (D) a gross payroll of no more than one million dollars but more
    34  than five hundred thousand dollars, three hundred twenty-five dollars;
    35    [(D)] (E) a gross payroll  of  no  more  than  five  hundred  thousand
    36  dollars  [but  more than two hundred fifty thousand dollars, two hundred
    37  twenty-five dollars;
    38    (E) a gross payroll of two hundred fifty  thousand  dollars  or  less]
    39  (except  as  prescribed in clause (F) of this subparagraph), one hundred
    40  dollars;
    41    (F) a gross payroll of  one  thousand  dollars  or  less,  with  total
    42  receipts  within and without this state of one thousand dollars or less,
    43  and the average value of the assets of which are one thousand dollars or
    44  less, eight hundred dollars.
    45    § 2. This act shall take effect immediately and apply to taxable years
    46  commencing in 2004 and 2005 and shall expire and  be  of  no  force  and
    47  effect for taxable years commencing on or after January 1, 2006.

    48                                   PART F

    49    Section  1.  The  tax  law is amended by adding a new section 173-a to
    50  read as follows:
    51    § 173-a. Hearing rights upon notice and demand. 1.  Applicability  and
    52  construction.  (a) Applicability.   Except as otherwise provided in this

        S. 6060--B                         22                         A. 9560--B

     1  section, this section shall apply with  respect  to  any  tax  which  is
     2  administered  by  the commissioner and which is imposed by or authorized
     3  to be imposed pursuant to this  chapter  or  any  other  law.  Unless  a
     4  different meaning is clearly required, any reference to "tax" or "taxes"
     5  in  this  section  shall be deemed also to refer to special assessments,
     6  fees, interest, additions to tax, penalties or other  impositions  which
     7  are administered by the commissioner.
     8    (b)  Exceptions  to applicability. This section shall not apply to any
     9  tax which is administered by the commissioner and which is imposed by or
    10  authorized to be imposed pursuant to:
    11    (i) Article ten of this chapter (taxable transfers - residents).
    12    (ii) Article eleven of this chapter (tax on mortgages).
    13    (iii) Article twelve of this chapter (tax on transfers  of  stock  and
    14  other corporate certificates).
    15    (c)  Construction.  The provisions of this section shall supplement or
    16  be in addition to the procedures  relating  to  collection  or  adminis-
    17  tration provided with respect to any tax covered by this section.  Where
    18  a provision of this section is inconsistent with any such provision with
    19  respect to such tax, the provisions of this section shall apply.
    20    2.  Corporate and personal income taxes. With respect to any tax which
    21  incorporates or otherwise utilizes the procedures set forth in  part  VI
    22  of   article   twenty-two  or  article  twenty-seven  of  this  chapter,
    23  provisions of law which authorize the issuance of a  notice  and  demand
    24  for  an  amount  without the issuance of a notice of deficiency for such
    25  amount, including any interest, additions to tax  or  penalties  related
    26  thereto,  in  cases of mathematical or clerical errors or failure to pay
    27  tax shown on a return, or authorize the issuance of a  notice  of  addi-
    28  tional  tax  due,  including any interest, additions to tax or penalties
    29  related thereto, shall be construed as specifically denying and  modify-
    30  ing the right to a hearing with respect to any such notice and demand or
    31  notice of additional tax due for purposes of subdivision four of section
    32  two  thousand six of this chapter.  Any such notice and demand or notice
    33  of additional tax due shall not be construed as a notice which  gives  a
    34  person the right to a hearing under article forty of this chapter.
    35    3. Sales and compensating use and miscellaneous taxes. With respect to
    36  any tax to which this section applies and which is not covered by subdi-
    37  vision two of this section:
    38    (a)  Final  determination.  The amount of tax which a return or report
    39  shows to be due, the amount of tax which a return or report  would  have
    40  shown  to  be  due  but for a mathematical or clerical error (including,
    41  with respect to a tax payable by the purchase of stamps, the  amount  of
    42  stamps  purchased)  or  the  amount  of penalty and any interest due for
    43  failing to file a return or report or to pay or pay over any tax (or  to
    44  pay  for  any  stamps  purchased)  to  the  commissioner within the time
    45  required by or pursuant to any such tax  (but  not  including  any  such
    46  penalty  or  interest  attributable to any amount of tax with respect to
    47  which a notice of determination is  required  to  be  issued)  shall  be
    48  deemed  to be finally determined to be due not later than on the date of
    49  the filing of such return or report (including  any  amended  return  or
    50  report  showing  an  increase  of  tax or in the case of the purchase of
    51  stamps, such date of purchase). Such amount of tax, penalty or  interest
    52  shall  be  paid  upon notice and demand and shall be assessed, collected
    53  and paid in the manner provided for in each of the several taxes covered
    54  under this subdivision and such notice and demand shall not  be  consid-
    55  ered  as  a  notice  of  determination for purposes of the taxes covered
    56  under this subdivision.  If a notice of determination  has  been  mailed

        S. 6060--B                         23                         A. 9560--B

     1  with  respect to a tax covered under this subdivision, the amount of the
     2  determination shall be deemed to be finally and irrevocably fixed on the
     3  date specified in any such tax if no petition to  the  division  of  tax
     4  appeals  is filed, or, if a petition is filed, then upon the date when a
     5  determination or decision rendered in the division of tax appeals estab-
     6  lishing the amount of the notice of determination becomes final pursuant
     7  to article forty of this chapter.
     8    (b) Notice and demand. (1) The commissioner shall, as soon as  practi-
     9  cable, give notice to each person liable for any amount of tax, addition
    10  to tax, penalty or interest, which has been finally determined to be due
    11  or which has been finally and irrevocably fixed, as the case may be, but
    12  remains  unpaid,  stating the amount and demanding payment thereof. Such
    13  notice shall be left at the dwelling or usual place of business of  such
    14  person  or  shall  be  sent by mail to such person's last known address.
    15  Except where the commissioner determines that collection would be  jeop-
    16  ardized  by delay and the applicable tax contains provisions authorizing
    17  a jeopardy procedure, if any tax is finally determined to be due  or  is
    18  finally and irrevocably fixed prior to the last date (including any date
    19  fixed  by extension) prescribed for payment of such tax, payment of such
    20  tax shall not be demanded until after such  date.  If  the  commissioner
    21  finds  that the determination, assessment or collection of tax, addition
    22  to tax, penalty or interest  is  in  jeopardy  and  the  applicable  tax
    23  contains  provisions  authorizing  procedures  regarding  early determi-
    24  nation, the commissioner may immediately determine the  amount  of  such
    25  tax,  addition  to tax, penalty or interest (whether before or after the
    26  due date of any return or report required to show such tax, addition  to
    27  tax, penalty or interest) and assess the same and give notice and demand
    28  for the payment thereof.
    29    (2)  If  notice  and  demand  is  made for payment of any amount under
    30  subparagraph one of this paragraph, and if such amount  is  paid  within
    31  twenty-one calendar days (ten business days if the amount for which such
    32  notice  and  demand  is  made  equals  or  exceeds  one hundred thousand
    33  dollars) after the date of such notice and demand,  interest  under  the
    34  applicable tax on the amount so paid shall not be imposed for the period
    35  after the date of such notice and demand.
    36    (c)  Hearing  rights  upon  notice and demand. Provisions of law which
    37  authorize the issuance of a notice and demand for an amount without  the
    38  issuance  of  a  notice  of determination for such amount, including any
    39  interest or penalties related thereto, shall  be  construed  as  specif-
    40  ically  denying and modifying the right to a hearing with respect to any
    41  such notice and demand for purposes of subdivision four of  section  two
    42  thousand six of this chapter in cases of mathematical or clerical errors
    43  or  failure  to  pay  the  tax due shown on the return or for any stamps
    44  purchased, and any interest or penalties  related  thereto.    Any  such
    45  notice  and  demand  shall  not  be  construed as a notice which gives a
    46  person the right to a hearing under article forty of this chapter.
    47    § 2. Subsection (d) of section 681 of the tax law, as amended by chap-
    48  ter 1011 of the laws of 1962, is amended to read as follows:
    49    (d) Exceptions for mathematical or clerical errors.--If a mathematical
    50  or clerical error appears on a return (including an overstatement of the
    51  credit for income tax withheld at the source, or of the amount  paid  as
    52  estimated  income  tax),  the [tax commission] commissioner shall notify
    53  the taxpayer that an amount of tax in excess  of  that  shown  upon  the
    54  return is due, and that such excess has been assessed. Such notice shall
    55  not  be  considered  as  a notice of deficiency for the purposes of this
    56  section, subsection (f) of section six  hundred  eighty-seven  (limiting

        S. 6060--B                         24                         A. 9560--B

     1  credits  or  refunds  after petition to the [tax commission] division of
     2  tax appeals), [or] subsection (b) of  section  six  hundred  eighty-nine
     3  (authorizing the filing of a petition with the [tax commission] division
     4  of  tax  appeals  based  on a notice of deficiency), or article forty of
     5  this chapter, nor shall such assessment or collection be  prohibited  by
     6  the provisions of subsection (c).
     7    § 3. Subsection (a) of section 682 of the tax law, as amended by chap-
     8  ter 690 of the laws of 1964, is amended to read as follows:
     9    (a)  Assessment  date.--The  amount  of tax which a return shows to be
    10  due, or the amount of tax which a return would have shown to be due  but
    11  for  a mathematical or clerical error, shall be deemed to be assessed on
    12  the date of filing of the return (including any amended  return  showing
    13  an  increase  of  tax).  In  the case of a return properly filed without
    14  computation of tax, the tax computed by the [tax commission] commission-
    15  er shall be deemed to be assessed on the date on which payment  is  due.
    16  If  a notice of deficiency has been mailed, the amount of the deficiency
    17  shall be deemed to be assessed on the date specified in  subsection  (b)
    18  of section six hundred eighty-one if no petition to the [tax commission]
    19  division  of  tax appeals is filed, or if a petition is filed, then upon
    20  the date when a determination or decision  [of]  rendered  in  the  [tax
    21  commission] division of tax appeals establishing the amount of the defi-
    22  ciency  becomes  final. If an amended return or report filed pursuant to
    23  section six hundred fifty-nine concedes the accuracy of a federal change
    24  or correction, any deficiency in tax under this article resulting there-
    25  from shall be deemed to be assessed on the date of filing such report or
    26  amended return, and such  assessment  shall  be  timely  notwithstanding
    27  section  six hundred eighty-three. If a notice of additional tax due, as
    28  prescribed in subsection (e) of section six hundred eighty-one, has been
    29  mailed, the amount of the deficiency shall be deemed to be  assessed  on
    30  the  date  specified  in such subsection unless within thirty days after
    31  the mailing of such notice a report of the federal change or  correction
    32  or  an  amended  return,  where  such return was required by section six
    33  hundred fifty-nine, is filed accompanied by a statement showing  wherein
    34  such  federal  determination  and  such notice of additional tax due are
    35  erroneous. Any amount paid as a tax or in respect of a tax,  other  than
    36  amounts withheld at the source or paid as estimated income tax, shall be
    37  deemed to be assessed upon the date of receipt of payment, notwithstand-
    38  ing any other provisions.
    39    § 4. Subsection (c) of section 684 of the tax law, as added by chapter
    40  1011 of the laws of 1962, is amended to read as follows:
    41    (c)  Exception  for mathematical or clerical error.--No interest shall
    42  be imposed on any underpayment of tax  due  solely  to  mathematical  or
    43  clerical error if the taxpayer files a return within the time prescribed
    44  in this article (including any extension of time) and pays the amount of
    45  underpayment  within  three months after the due date of such return, as
    46  it may be extended.
    47    § 5. Subsection (d) of section 1081 of the tax law, as added by  chap-
    48  ter 188 of the laws of 1964, is amended to read as follows:
    49    (d)  Exceptions  for mathematical or clerical errors.---If a mathemat-
    50  ical or clerical error appears on a return (including  an  overstatement
    51  of  the amount paid as estimated tax), the [tax commission] commissioner
    52  shall notify the taxpayer that an amount of tax in excess of that  shown
    53  upon  the  return  is  due, and that such excess has been assessed. Such
    54  notice shall not be  considered  as  a  notice  of  deficiency  for  the
    55  purposes  of this section, subsection (f) of section one thousand eight-
    56  y-seven (limiting credits or refunds after petition to the [tax  commis-

        S. 6060--B                         25                         A. 9560--B

     1  sion] division of tax appeals), [or] subsection (b) of section one thou-
     2  sand  eighty-nine  (authorizing  the  filing of a petition with the [tax
     3  commission] division of tax appeals based on a notice of deficiency), or
     4  article  forty  of this chapter, nor shall such assessment or collection
     5  be prohibited by the provisions of subsection (c).
     6    § 6. Paragraph 1 of subsection (a) of section 1082 of the tax law,  as
     7  amended  by  chapter  788  of  the  laws  of 1982, is amended to read as
     8  follows:
     9    (1) The amount of tax which a return shows to be due, or the amount of
    10  tax which a return would have shown to be due but for a mathematical  or
    11  clerical  error, shall be deemed to be assessed on the date of filing of
    12  the return (including any amended return showing an increase of tax). If
    13  a notice of deficiency has been mailed, the  amount  of  the  deficiency
    14  shall  be  deemed to be assessed on the date specified in subsection (b)
    15  of section one thousand eighty-one if no petition to  the  [tax  commis-
    16  sion]  division of tax appeals is filed, or if a petition is filed, then
    17  upon the date when a determination or decision [of] rendered in the [tax
    18  commission] division of tax appeals establishing the amount of the defi-
    19  ciency becomes final.
    20    § 7. Subsection (c) of section 1084 of the tax law, as added by  chap-
    21  ter 188 of the laws of 1964, is amended to read as follows:
    22    (c) Exception for mathematical or clerical error.--- No interest shall
    23  be  imposed  on  any  underpayment  of tax due solely to mathematical or
    24  clerical error if the taxpayer files a return within the time prescribed
    25  in article nine[, nine-a, nine-b or nine-c]  or  nine-A  (including  any
    26  extension  of  time)  and  pays  the amount of underpayment within three
    27  months after the due date of such return, as it may be extended.
    28    § 8. This act shall take effect immediately and shall apply to  notice
    29  and  demands and notices of additional tax due issued on or after Decem-
    30  ber 1, 2004.

    31                                   PART G

    32    Section 1. Section 51 of chapter 298 of the laws of 1985, amending the
    33  tax law relating to the franchise tax on banking corporations imposed by
    34  the tax law, authorized to be imposed by any city having a population of
    35  one million or more by chapter 772 of the laws of 1966  and  imposed  by
    36  the  administrative  code  of the city of New York and relating to other
    37  provisions of the tax law, chapter 883 of  the  laws  of  1975  and  the
    38  administrative  code of the city of New York which relates to such fran-
    39  chise tax, as amended by section 1 of part G3 of chapter 62 of the  laws
    40  of 2003, is amended to read as follows:
    41    §  51. This act shall take effect immediately and shall apply to taxa-
    42  ble years beginning on or after January 1, 1985, except that:
    43    (a) sections one through eight shall not apply to taxable years begin-
    44  ning on or after January 1, [2005] 2006;
    45    (b) sections nine, twelve,  the  amendment  made  to  paragraph  9  of
    46  subsection  (a)  of  section  1452  of  the tax law by section thirteen,
    47  sections fifteen, sixteen,  eighteen,  nineteen,  twenty,  twenty-three,
    48  twenty-seven,  thirty  and thirty-two, the amendment made to paragraph 9
    49  of subdivision (a) of section 11-640 of the administrative code  of  the
    50  city  of New York by section thirty-three, sections thirty-five, thirty-
    51  six, thirty-eight, thirty-nine, forty, and forty-five shall not apply to
    52  corporations other than savings banks and savings and loan  associations
    53  for taxable years beginning on or after January 1, [2005] 2006;

        S. 6060--B                         26                         A. 9560--B

     1    (c)   sections  twenty-one,  twenty-two,  twenty-four,  forty-one  and
     2  forty-two shall not apply to corporations other than savings  banks  and
     3  savings  and  loan  associations for taxable years beginning on or after
     4  January 1, [2005] 2006, provided, however, that the provisions  of  such
     5  sections which relate to the alternative minimum tax measured by taxable
     6  assets shall continue to apply to all taxpayers for taxable years begin-
     7  ning on or after January 1, [2005] 2006;
     8    (d)  the amendment to the section heading and the opening paragraph of
     9  section 11-643.3 of the administrative code of the city of New York made
    10  by section forty-three  shall  not  apply  to  corporations  other  than
    11  savings banks and savings and loan associations for taxable years begin-
    12  ning on or after January 1, [2005] 2006 with respect to those provisions
    13  of  such  section  11-643.3  which  relate  to the basic tax measured by
    14  entire net income; and
    15    (e) section twenty-eight, and the addition of new section 11-643.5  of
    16  the  administrative  code of the city of New York made by section forty-
    17  four shall not apply  to  corporations  other  than  savings  banks  and
    18  savings  and  loan  associations for taxable years beginning on or after
    19  January 1, [2005] 2006, provided, however, that the provisions  of  such
    20  sections  which  relate  to  the  alternative  minimum taxes measured by
    21  assets, issued capital stock and one hundred twenty-five  dollars  shall
    22  continue  to  apply  to  all taxpayers for taxable years beginning on or
    23  after January 1, [2005] 2006.
    24    § 2. Subdivisions (d) and (f) of section 110 of  chapter  817  of  the
    25  laws  of  1987,  amending the tax law and the environmental conservation
    26  law, constituting the business tax reform  and  rate  reduction  act  of
    27  1987,  as  amended  by section 2 of part G3 of chapter 62 of the laws of
    28  2003, are amended to read as follows:
    29    (d) The provisions of section sixty-seven except insofar as it  amends
    30  paragraph  10 of subsection (b) of section 1453 of the tax law, seventy-
    31  one and seventy-four shall apply to taxable years beginning after Decem-
    32  ber 31, 1986, provided, however,  that  new  paragraphs  11  and  12  of
    33  subsection  (b)  of  section  1453  of  the  tax law as added by section
    34  sixty-seven of this act, the amendments made by section  seventy-one  of
    35  this act, and new subsection (i) of section 1453 of the tax law as added
    36  by  section  seventy-four  of  this act shall not apply to taxable years
    37  beginning on or after January 1, [2005] 2006;
    38    (f) The provisions of section one hundred four of this act shall apply
    39  to taxable years beginning after December 31, 1986, and shall not  apply
    40  to  corporations  other  than savings banks and savings and loan associ-
    41  ations for taxable years beginning on or after January 1,  [2005]  2006,
    42  provided,  however,  that the provisions of such section which relate to
    43  the alternative minimum tax measured by taxable assets shall continue to
    44  apply to all taxpayers for taxable years beginning on or  after  January
    45  1, [2005] 2006.
    46    § 3. Subdivisions (c) and (d) of section 68 of chapter 525 of the laws
    47  of 1988, amending the tax law and the administrative code of the city of
    48  New York relating to the imposition of taxes in the city of New York, as
    49  amended  by  section 3 of part G3 of chapter 62 of the laws of 2003, are
    50  amended to read as follows:
    51    (c) The provisions of sections one,  thirty-one,  thirty-two,  thirty-
    52  three,  thirty-six,  thirty-seven, forty through forty-five, forty-seven
    53  and forty-eight shall apply to taxable years  beginning  after  December
    54  31,  1986, provided, however, that the amendments made by sections thir-
    55  ty-six and forty-one of this act, and new  subdivision  (i)  of  section
    56  11-641  of  the  administrative code of the city of New York as added by

        S. 6060--B                         27                         A. 9560--B

     1  section forty-four of this act shall not apply to taxable  years  begin-
     2  ning on or after January 1, [2005] 2006;
     3    (d)  The  provisions of section forty-six shall apply to taxable years
     4  beginning after December 31, 1986, and shall not apply  to  corporations
     5  other  than  savings banks and savings and loan associations for taxable
     6  years beginning on or after January 1, [2005] 2006,  provided,  however,
     7  that  the  provisions  of  such  section which relate to the alternative
     8  minimum tax measured by taxable assets shall continue to  apply  to  all
     9  taxpayers  for  taxable  years  beginning  on or after January 1, [2005]
    10  2006;
    11    § 4. Section 1452 of the tax law is amended by adding a new subsection
    12  (k) to read as follows:
    13    (k) Transitional provisions relating to the enactment and  implementa-
    14  tion of the federal Gramm-Leach-Bliley act. (1) Notwithstanding anything
    15  to  the  contrary  contained  in this section, a corporation that was in
    16  existence before January first, two thousand four and was subject to tax
    17  under article nine-A of this chapter for its last taxable year beginning
    18  before January first, two thousand four, shall continue  to  be  taxable
    19  under article nine-A for all taxable years beginning on or after January
    20  first, two thousand four and before January first, two thousand six. The
    21  preceding sentence shall not apply to any taxable year during which such
    22  corporation is a banking corporation described in paragraphs one through
    23  eight  of  subsection  (a) of this section.  Notwithstanding anything to
    24  the contrary contained in this section, a banking corporation  that  was
    25  in  existence before January first, two thousand four and was subject to
    26  tax under this article for its last taxable year beginning before  Janu-
    27  ary  first,  two  thousand four, shall continue to be taxable under this
    28  article for all taxable years beginning on or after January  first,  two
    29  thousand  four  and  before  January  first, two thousand six. Provided,
    30  however, that nothing in this subsection shall  prohibit  a  corporation
    31  that  elected  pursuant  to subsection (d) of this section to be taxable
    32  under article nine-A of this chapter  from  revoking  that  election  in
    33  accordance with such subsection (d).
    34    For  purposes  of this paragraph, a corporation shall be considered to
    35  be subject to tax under article nine-A of this  chapter  for  a  taxable
    36  year if such corporation was not a taxpayer but was properly included in
    37  a  combined  report filed pursuant to section two hundred eleven of this
    38  chapter for such taxable year and a corporation shall be  considered  to
    39  be  subject  to tax under this article for a taxable year if such corpo-
    40  ration was not a taxpayer but was properly included in a combined return
    41  filed pursuant to subsection (f) or  (g)  of  section  fourteen  hundred
    42  sixty-two  of this article for such taxable year. A corporation that was
    43  in existence before January first, two thousand four but first becomes a
    44  taxpayer in a taxable year beginning on  or  after  January  first,  two
    45  thousand  four  and  before  January  first,  two thousand six, shall be
    46  considered for purposes of this paragraph to have been  subject  to  tax
    47  under article nine-A of this chapter for its last taxable year beginning
    48  before  January first, two thousand four, if such corporation would have
    49  been subject to tax under such article for such taxable year if  it  had
    50  been  a  taxpayer  during  such  taxable year. A corporation that was in
    51  existence before January first, two thousand four, but first  becomes  a
    52  taxpayer  in  a  taxable  year  beginning on or after January first, two
    53  thousand four and before January  first,  two  thousand  six,  shall  be
    54  considered  for  purposes  of this paragraph to have been subject to tax
    55  under this article for its last taxable year  beginning  before  January
    56  first,  two thousand four if such corporation would have been subject to

        S. 6060--B                         28                         A. 9560--B

     1  tax under this article for such taxable year if it had been  a  taxpayer
     2  during such taxable year.
     3    (2)  Notwithstanding  anything  to  the  contrary  contained  in  this
     4  section, a corporation formed on or after January  first,  two  thousand
     5  four  and before January first, two thousand six may elect to be subject
     6  to tax under this article or under article nine-A of  this  chapter  for
     7  its first taxable year beginning on or after January first, two thousand
     8  four  and  before  January  first,  two thousand six in which either (i)
     9  sixty-five percent or more of its voting stock is owned  or  controlled,
    10  directly  or  indirectly  by  a  financial holding company, provided the
    11  corporation whose voting stock is so owned or controlled is  principally
    12  engaged  in  activities that are described in section 4(k)(4) or 4(k)(5)
    13  of the federal bank holding company act of nineteen  hundred  fifty-six,
    14  as  amended and the regulations promulgated pursuant to the authority of
    15  such section, or (ii) it is a financial subsidiary.
    16    An election under this paragraph may not  be  made  by  a  corporation
    17  described  in  paragraphs  one  through  eight of subsection (a) of this
    18  section or in subsection (e) of this section. In addition,  an  election
    19  under this paragraph may not be made by a corporation that is a party to
    20  a  reorganization, as defined in subsection (a) of section three hundred
    21  sixty-eight of the internal revenue  code  of  nineteen  eighty-six,  as
    22  amended,  of a corporation described in paragraph one of this subsection
    23  if  both  corporations  were  sixty-five  percent  or  more   owned   or
    24  controlled, directly or indirectly, by the same interests at the time of
    25  the reorganization. An election under this paragraph must be made by the
    26  taxpayer  on  or  before  the due date for filing its return (determined
    27  with regard to extensions of time for filing) for the applicable taxable
    28  year. The election to be taxed under  article  nine-A  of  this  chapter
    29  shall  be made by the taxpayer by filing the report required pursuant to
    30  section two hundred eleven of this chapter and the election to be  taxed
    31  under  this  article  shall be made by the taxpayer by filing the return
    32  required pursuant to section fourteen hundred sixty-two of this article.
    33  Any election made pursuant to this paragraph shall  be  irrevocable  and
    34  shall  apply to each subsequent taxable year beginning on or after Janu-
    35  ary first, two thousand four and before January first, two thousand six,
    36  provided that the stock ownership requirements described in subparagraph
    37  (i) of this paragraph are met or such corporation described in  subpara-
    38  graph (ii) of this paragraph continues as a financial subsidiary.
    39    (3)  For  purposes  of  this  section,  a financial subsidiary means a
    40  corporation (i) sixty-five percent or more  of  whose  voting  stock  is
    41  owned  or  controlled,  directly  or indirectly by a banking corporation
    42  described in paragraph one, two or  three  of  subsection  (a)  of  this
    43  section  and  (ii) is described in section 5136A(g) of the revised stat-
    44  utes of the United States or section forty-six of  the  federal  deposit
    45  insurance  act.  For  purposes of this article, the term "banking corpo-
    46  ration" shall include a corporation electing  to  be  taxed  under  this
    47  article pursuant to paragraph two of this subsection for so long as such
    48  election shall be in effect.
    49    §  5.  Subparagraph  (iv)  of paragraph 2 of subsection (f) of section
    50  1462 of the tax law, as amended by section 5 of part G3 of chapter 62 of
    51  the laws of 2003, is amended to read as follows:
    52    (iv) (A) Notwithstanding any provision of  this  paragraph,  any  bank
    53  holding  company exercising its corporate franchise or doing business in
    54  the state may make a return on a  combined  basis  without  seeking  the
    55  permission  of  the commissioner with any banking corporation exercising
    56  its corporate franchise or doing business in the state in a corporate or

        S. 6060--B                         29                         A. 9560--B

     1  organized capacity sixty-five percent or more of whose voting  stock  is
     2  owned or controlled, directly or indirectly, by such bank holding compa-
     3  ny,  for the first taxable year beginning on or after January first, two
     4  thousand  and before January first, two thousand [four] six during which
     5  such bank holding company registers for the first time under the federal
     6  bank holding company act, as amended, and also elects to be a  financial
     7  holding company. In addition, for each subsequent taxable year beginning
     8  after January first, two thousand and before January first, two thousand
     9  [four]  six,  any such bank holding company may file on a combined basis
    10  without seeking the permission of  the  commissioner  with  any  banking
    11  corporation that is exercising its corporate franchise or doing business
    12  in  the  state  and  sixty-five percent or more of whose voting stock is
    13  owned or controlled, directly or indirectly, by such bank holding compa-
    14  ny if either such banking corporation is exercising its corporate  fran-
    15  chise or doing business in the state in a corporate or organized capaci-
    16  ty for the first time during such subsequent taxable year, or sixty-five
    17  percent or more of the voting stock of such banking corporation is owned
    18  or  controlled, directly or indirectly, by such bank holding company for
    19  the first time during such subsequent taxable  year.  Provided  however,
    20  for  each  subsequent  taxable  year  beginning after January first, two
    21  thousand and before January first, two thousand [four]  six,  a  banking
    22  corporation  described  in  either  of the two preceding sentences which
    23  filed on a combined basis with any such bank holding company in a previ-
    24  ous taxable year, must continue to file on a combined  basis  with  such
    25  bank holding company if such banking corporation, during such subsequent
    26  taxable  year, continues to exercise its corporate franchise or do busi-
    27  ness in the state in a corporate or organized  capacity  and  sixty-five
    28  percent  or more of such banking corporation's voting stock continues to
    29  be owned or controlled, directly or indirectly,  by  such  bank  holding
    30  company,  unless the permission of the commissioner has been obtained to
    31  file on a separate basis for  such  subsequent  taxable  year.  Provided
    32  further, however, for each subsequent taxable year beginning after Janu-
    33  ary  first,  two  thousand and before January first, two thousand [four]
    34  six, a  banking  corporation  described  in  either  of  the  first  two
    35  sentences of this clause which did not file on a combined basis with any
    36  such  bank holding company in a previous taxable year, may not file on a
    37  combined basis with such bank holding company during any such subsequent
    38  taxable year unless the permission of the commissioner has been obtained
    39  to file on a combined basis for such subsequent taxable year.
    40    (B) Notwithstanding any provision of this paragraph other than  clause
    41  (A)  of this subparagraph, the commissioner may not require a bank hold-
    42  ing company which, during a taxable year beginning on or  after  January
    43  first,  two  thousand and before January first, two thousand [four] six,
    44  registers for the first time during such taxable year under the  federal
    45  bank  holding company act, as amended, and also elects to be a financial
    46  holding company, to make a return on a combined basis  for  any  taxable
    47  year  beginning on or after January first, two thousand and before Janu-
    48  ary first, two thousand [four] six with a banking corporation sixty-five
    49  percent or more of whose voting stock is owned or  controlled,  directly
    50  or indirectly, by such bank holding company.
    51    § 6. Section 11-640 of the administrative code of the city of New York
    52  is amended by adding a new subdivision (j) to read as follows:
    53    (j)  Transitional provisions relating to the enactment and implementa-
    54  tion of the federal Gramm-Leach-Bliley act. (1) Notwithstanding anything
    55  to the contrary contained in this section, a  corporation  that  was  in
    56  existence before January first, two thousand four and was subject to tax

        S. 6060--B                         30                         A. 9560--B

     1  under subchapter two of this chapter for its last taxable year beginning
     2  before  January  first,  two thousand four, shall continue to be taxable
     3  under subchapter two for all taxable years beginning on or after January
     4  first, two thousand four and before January first, two thousand six. The
     5  preceding sentence shall not apply to any taxable year during which such
     6  corporation is a banking corporation described in paragraphs one through
     7  eight  of  subdivision (a) of this section.  Notwithstanding anything to
     8  the contrary contained in this section, a banking corporation  that  was
     9  in  existence before January first, two thousand four and was subject to
    10  tax under this subchapter for its last  taxable  year  beginning  before
    11  January  first,  two  thousand  four, shall continue to be taxable under
    12  this subchapter for all taxable years  beginning  on  or  after  January
    13  first,  two  thousand  four  and before January first, two thousand six.
    14  Provided, however, that nothing in this  subdivision  shall  prohibit  a
    15  corporation  that elected pursuant to subdivision (d) of this section to
    16  be taxable under subchapter two  of  this  chapter  from  revoking  that
    17  election in accordance with subdivision (d) of this section.
    18    For  purposes  of this paragraph, a corporation shall be considered to
    19  be subject to tax under subchapter two of this  chapter  for  a  taxable
    20  year if such corporation was not a taxpayer but was properly included in
    21  a  combined  report filed pursuant to subdivision four of section 11-605
    22  of this chapter for such taxable year and a corporation shall be consid-
    23  ered to be subject to tax under this subchapter for a  taxable  year  if
    24  such  corporation  was  not  a  taxpayer  but was properly included in a
    25  combined report filed pursuant to subdivision  (f)  or  (g)  of  section
    26  11-646  of this chapter for such taxable year. A corporation that was in
    27  existence before January first, two thousand four but  first  becomes  a
    28  taxpayer  in  a  taxable  year  beginning on or after January first, two
    29  thousand four and before January  first,  two  thousand  six,  shall  be
    30  considered  for  purposes  of this paragraph to have been subject to tax
    31  under subchapter two of this chapter for its last taxable year beginning
    32  before January first, two thousand four if such corporation  would  have
    33  been  subject  to  tax under such subchapter for such taxable year if it
    34  had been a taxpayer during such taxable year. A corporation that was  in
    35  existence  before  January  first, two thousand four but first becomes a
    36  taxpayer in a taxable year beginning on  or  after  January  first,  two
    37  thousand  four  and  before  January  first,  two thousand six, shall be
    38  considered for purposes of this paragraph to have been  subject  to  tax
    39  under this subchapter for its last taxable year beginning before January
    40  first,  two thousand four if such corporation would have been subject to
    41  tax under this subchapter for such taxable year if it had been a taxpay-
    42  er during such taxable year.
    43    (2)  Notwithstanding  anything  to  the  contrary  contained  in  this
    44  section,  a  corporation  formed on or after January first, two thousand
    45  four and before January first, two thousand six may elect to be  subject
    46  to tax under this subchapter or under subchapter two of this chapter for
    47  its first taxable year beginning on or after January first, two thousand
    48  four  and  before  January  first,  two thousand six in which either (i)
    49  sixty-five percent or more of its voting stock is owned  or  controlled,
    50  directly  or  indirectly  by  a  financial holding company, provided the
    51  corporation whose voting stock is so owned or controlled is  principally
    52  engaged  in  activities that are described in section 4(k)(4) or 4(k)(5)
    53  of the federal bank holding company act of nineteen  hundred  fifty-six,
    54  as  amended and the regulations promulgated pursuant to the authority of
    55  such section or (ii) it is a financial  subsidiary.  An  election  under
    56  this  paragraph may not be made by a corporation described in paragraphs

        S. 6060--B                         31                         A. 9560--B

     1  one through eight of subdivision (a) of this section or  in  subdivision
     2  (e)  of  this section. In addition, an election under this paragraph may
     3  not be made by a corporation that is a party  to  a  reorganization,  as
     4  defined  in  subsection  (a) of section three hundred sixty-eight of the
     5  internal revenue code of nineteen hundred eighty-six, as amended,  of  a
     6  corporation  described  in  paragraph  one  of  this subdivision if both
     7  corporations were  sixty-five  percent  or  more  owned  or  controlled,
     8  directly or indirectly by the same interests at the time of the reorgan-
     9  ization.
    10    An  election  under  this paragraph must be made by the taxpayer on or
    11  before the due date for filing its return  (determined  with  regard  to
    12  extensions  of  time  for  filing)  for the applicable taxable year. The
    13  election to be taxed under subchapter two of this chapter shall be  made
    14  by  the  taxpayer  by filing the return required pursuant to subdivision
    15  one of section 11-605 of this chapter and the election to be taxed under
    16  this subchapter shall be made by  the  taxpayer  by  filing  the  return
    17  required  pursuant to subdivision (a) of section 11-646 of this chapter.
    18  Any election made pursuant to this paragraph shall  be  irrevocable  and
    19  shall  apply to each subsequent taxable year beginning on or after Janu-
    20  ary first, two thousand four and before January first, two thousand six,
    21  provided that the stock ownership requirements described in subparagraph
    22  (i) of this paragraph are met or such corporation described in  subpara-
    23  graph (ii) of this paragraph continues as a financial subsidiary.
    24    (3)  For  purposes  of  this  section,  a financial subsidiary means a
    25  corporation (i) sixty-five percent or more  of  whose  voting  stock  is
    26  owned  or  controlled,  directly  or indirectly by a banking corporation
    27  described in paragraph one, two or three  of  subdivision  (a)  of  this
    28  section  and  (ii) is described in section 5136A(g) of the revised stat-
    29  utes of the United States or section forty-six of  the  federal  deposit
    30  insurance act. For purposes of this subchapter, the term "banking corpo-
    31  ration"  shall  include  a  corporation  electing to be taxed under this
    32  subchapter pursuant to paragraph two of this subdivision for so long  as
    33  such election shall be in effect.
    34    §  7.  Subparagraph  (iv) of paragraph 2 of subdivision (f) of section
    35  11-646 of the administrative code of the city of New York, as amended by
    36  section 7 of part G3 of chapter 62 of the laws of 2003,  is  amended  to
    37  read as follows:
    38    (iv)  (A)  Notwithstanding  any  provision of this paragraph, any bank
    39  holding company exercising its corporate franchise or doing business  in
    40  the  city  may  make  a  return  on a combined basis without seeking the
    41  permission of the commissioner with any banking  corporation  exercising
    42  its  corporate franchise or doing business in the city in a corporate or
    43  organized capacity sixty-five percent or more of whose voting  stock  is
    44  owned or controlled, directly or indirectly, by such bank holding compa-
    45  ny,  for the first taxable year beginning on or after January first, two
    46  thousand and before January first, two thousand [four] six during  which
    47  such bank holding company registers for the first time under the federal
    48  bank  holding company act, as amended, and also elects to be a financial
    49  holding company. In addition, for each subsequent taxable year beginning
    50  after January first, two thousand and before January first, two thousand
    51  [four] six, any such bank holding company may file on a  combined  basis
    52  without  seeking  the  permission  of  the commissioner with any banking
    53  corporation that is exercising its corporate franchise or doing business
    54  in the city and sixty-five percent or more  of  whose  voting  stock  is
    55  owned or controlled, directly or indirectly, by such bank holding compa-
    56  ny  if either such banking corporation is exercising its corporate fran-

        S. 6060--B                         32                         A. 9560--B

     1  chise or doing business in the city in a corporate or organized capacity
     2  for the first time during such subsequent taxable  year,  or  sixty-five
     3  percent or more of the voting stock of such banking corporation is owned
     4  or  controlled, directly or indirectly, by such bank holding company for
     5  the first time during such subsequent taxable  year.  Provided  however,
     6  for  each  subsequent  taxable  year  beginning after January first, two
     7  thousand and before January first, two thousand [four]  six,  a  banking
     8  corporation  described  in  either  of the two preceding sentences which
     9  filed on a combined basis with any such bank holding company in a previ-
    10  ous taxable year, must continue to file on a combined  basis  with  such
    11  bank holding company if such banking corporation, during such subsequent
    12  taxable  year, continues to exercise its corporate franchise or do busi-
    13  ness in the city in a corporate or  organized  capacity  and  sixty-five
    14  percent  or more of such banking corporation's voting stock continues to
    15  be owned or controlled, directly or indirectly,  by  such  bank  holding
    16  company,  unless the permission of the commissioner has been obtained to
    17  file on a separate basis for  such  subsequent  taxable  year.  Provided
    18  further, however, for each subsequent taxable year beginning after Janu-
    19  ary  first,  two  thousand and before January first, two thousand [four]
    20  six, a  banking  corporation  described  in  either  of  the  first  two
    21  sentences of this clause which did not file on a combined basis with any
    22  such  bank holding company in a previous taxable year, may not file on a
    23  combined basis with such bank holding company during any such subsequent
    24  taxable year unless the permission of the commissioner has been obtained
    25  to file on a combined basis for such subsequent taxable year.
    26    (B) Notwithstanding any provision of this paragraph other than  clause
    27  (A)  of this subparagraph, the commissioner may not require a bank hold-
    28  ing company which, during a taxable year beginning on or  after  January
    29  first,  two  thousand and before January first, two thousand [four] six,
    30  registers for the first time during such taxable year under the  federal
    31  bank  holding company act, as amended, and also elects to be a financial
    32  holding company, to make a return on a combined basis  for  any  taxable
    33  year  beginning on or after January first, two thousand and before Janu-
    34  ary first, two thousand [four] six with a banking corporation sixty-five
    35  percent or more of whose voting stock is owned or  controlled,  directly
    36  or indirectly, by such bank holding company.
    37    §  8.  This  act  shall  take  effect  immediately;  provided however,
    38  sections four, five, six and seven of this act shall  apply  to  taxable
    39  years beginning on or after January 1, 2004.

    40                                   PART H

    41    Section  1.  Subparagraph  (D)  of  paragraph  1  of subsection (b) of
    42  section 631 of the tax law, as added by chapter 586 of the laws of 1999,
    43  is amended and a new subparagraph (E) is added to read as follows:
    44    (D) winnings from a wager placed in a lottery conducted by  the  divi-
    45  sion  of  the lottery, if the proceeds from such wager exceed five thou-
    46  sand dollars[.]; or
    47    (E) gains from the sale, conveyance or other disposition of shares  of
    48  stock  in a cooperative housing corporation in connection with the grant
    49  or transfer of a proprietary leasehold by the owner thereof and  subject
    50  to  the  provisions  of article thirty-one of this chapter, whether such
    51  shares are held by a partnership, trust or otherwise.
    52    § 2. Paragraph 2 of subsection (b) of section 631 of the tax  law,  as
    53  amended  by  chapter  586  of  the  laws  of 1999, is amended to read as
    54  follows:

        S. 6060--B                         33                         A. 9560--B

     1    (2) Income from intangible  personal  property,  including  annuities,
     2  dividends,  interest,  and  gains  from  the  disposition  of intangible
     3  personal property, shall constitute income derived from New York sources
     4  only to the extent that such income is from property employed in a busi-
     5  ness,  trade, profession, or occupation carried on in this state or from
     6  winnings from a wager placed in a lottery conducted by the  division  of
     7  the  lottery,  if  the  proceeds  from  such  wager exceed five thousand
     8  dollars.  Income from the disposition of  intangible  personal  property
     9  shall also constitute income derived from New York sources to the extent
    10  such  gains are from the sale, conveyance or other disposition of shares
    11  of stock in a cooperative housing corporation  in  connection  with  the
    12  grant  or  transfer  of a proprietary leasehold by the owner thereof and
    13  subject to the provisions of article thirty-one of this chapter, whether
    14  such shares are held by a partnership, trust or otherwise.
    15    § 3. Subsection (a) of section 663 of  the  tax  law,  as  amended  by
    16  section  1  of  part P of chapter 686 of the laws of 2003, is amended to
    17  read as follows:
    18    (a) Upon the sale of real property within the state by  a  nonresident
    19  taxpayer, the nonresident shall estimate the personal income tax liabil-
    20  ity  on the gain, if any, from such sale or transfer.  In addition, upon
    21  the sale, conveyance or other disposition of shares of stock in a  coop-
    22  erative housing corporation in connection with the transfer of a propri-
    23  etary  leasehold  by  the owner thereof and subject to the provisions of
    24  article thirty-one of this chapter, the nonresident shall  estimate  the
    25  personal  income  tax  liability  on  the  gain, if any, from such sale,
    26  conveyance or other disposition.
    27    § 4. Paragraph 3 of subsection (c) of section 663 of the tax  law,  as
    28  amended  by  section  1 of part P of chapter 686 of the laws of 2003, is
    29  amended and a new paragraph 4 is added to read as follows:
    30    (3) The transferor or transferee is an  agency  or  authority  of  the
    31  United  States  of  America,  an agency or authority of the state of New
    32  York, the Federal National Mortgage Association, the Federal  Home  Loan
    33  Mortgage  Corporation,  or the Government National Mortgage Association,
    34  or a private mortgage insurance company[.]; or
    35    (4) The proprietary leasehold being transferred in connection with the
    36  sale, conveyance or other disposition of the shares of stock in a  coop-
    37  erative  housing  corporation  is a principal residence of the seller or
    38  transferor within the meaning of section 121  of  the  Internal  Revenue
    39  Code;
    40    §  5. Section 663 of the tax law is amended by adding a new subsection
    41  (i) to read as follows:
    42    (i) The estimated personal income tax liability on the gain,  if  any,
    43  from  the  sale, conveyance or other disposition of shares of stock in a
    44  cooperative housing corporation shall be paid  to  the  commissioner  no
    45  later  than  the  fifteenth  day  after  the  delivery of the instrument
    46  affecting such sale, conveyance or other disposition.  For  purposes  of
    47  this section, the date of the instrument affecting such sale, conveyance
    48  or  other  disposition  shall  be presumed to be the date of delivery of
    49  such instrument.
    50    § 6. This act shall take effect immediately; provided,  however,  that
    51  sections  one and two of this act shall apply to taxable years beginning
    52  on or after January 1, 2004; and sections three through five of this act
    53  shall take effect on the ninetieth day after this act shall have  become
    54  a law and apply to sales, conveyances or other dispositions occurring on
    55  or after such date.

        S. 6060--B                         34                         A. 9560--B

     1                                   PART I

     2    Section 1. Article 10 of the tax law is REPEALED.
     3    § 2. Subsection (b) of section 976 of the tax law, as added by chapter
     4  190 of the laws 1990, is amended to read as follows:
     5    (b)  Whenever  the  commissioner [of taxation and finance] extends the
     6  time for the payment of tax under this section, that portion of the  tax
     7  as  to  which  an extension is granted shall bear interest from the date
     8  the tax is required to be paid, to the date of payment without regard to
     9  any extension of time for the payment  of  the  tax  or  filing  of  the
    10  return,  at the rate prescribed in subsection (a) of section six hundred
    11  eighty-four of this chapter. [If payment is not made within  the  period
    12  of  extension  or  is  not  made in accordance with the terms set by the
    13  commissioner, interest shall be charged  and  collected  on  the  unpaid
    14  amount  of  tax  at  the rate prescribed in such subsection (a) from the
    15  date of death of the decedent until the tax is paid.]
    16    § 3. Subsection (b) of section 952 of the tax law, as added by section
    17  9 of part A of chapter 389 of the laws of 1997, is amended  to  read  as
    18  follows:
    19    (b)  If  the transfer of any part of the estate of a deceased resident
    20  [is subject to a tax imposed by another state or states with respect  to
    21  which  credit  against  the  federal  estate  tax is allowed pursuant to
    22  section two thousand eleven of the internal revenue code] includes  real
    23  or  tangible  personal  property having an actual situs outside New York
    24  state, the tax imposed by  subsection  (a)  of  this  section  shall  be
    25  reduced by [the lesser of:
    26    (1) the amount of the death tax paid to the other state or states that
    27  is allowable as the federal credit for state death taxes; or
    28    (2)]  an  amount  determined  by multiplying the maximum amount of the
    29  federal credit for state death taxes by a  fraction,  the  numerator  of
    30  which  is  the decedent's federal gross estate reduced by his or her New
    31  York gross estate and the denominator of which is  his  or  her  federal
    32  gross estate.
    33    §  4.  Subsection  (b)  of  section  960 of the tax law, as amended by
    34  section 14 of part A of chapter 389 of the laws of 1997, is  amended  to
    35  read as follows:
    36    (b) Computation of tax.--The tax imposed under subsection (a) shall be
    37  the  same as the tax that would be due, if the decedent had died a resi-
    38  dent, under subsection (a) of section  nine  hundred  fifty-two,  except
    39  that  for purposes of allocating the tax under subsection (b) of section
    40  nine hundred fifty-two, "New York gross estate",  in  the  numerator  in
    41  [paragraph  two  of]  subsection  (b) of section nine hundred fifty-two,
    42  shall not include the value of any intangible personal  property  other-
    43  wise includible in the deceased individual's New York gross estate.
    44    § 5. This act shall take effect immediately and shall apply to estates
    45  of decedents dying after such date; provided, however, that:
    46    (a) The repeal of article 10 of the tax law by section one of this act
    47  shall  not  affect any estate seeking a refund of any payment made under
    48  such article and any such refund claim shall be allowable to the  extent
    49  any  such refund claim is allowable under the provisions of such article
    50  10, as if such article had not been repealed by section one of this act.
    51    (b) Section two of this act shall apply to estates of decedents  dying
    52  on or after February 1, 2000.
    53    (c)  Sections  three  and  four  of this act shall apply to estates of
    54  decedents dying on or after January 1, 2002.

        S. 6060--B                         35                         A. 9560--B

     1                                   PART J

     2    Section  1. Paragraph 2 of subdivision (e) of section 301-e of the tax
     3  law, as added by chapter 190 of the laws of 1990, is amended to read  as
     4  follows:
     5    (2)  kero-jet  fuel and aviation gasoline consumed in this state shall
     6  be presumed to mean[: (i) where both the points of departure and arrival
     7  of any flight or any leg of any flight are within this state,] all  such
     8  fuel consumed during [such a flight; (ii) where only the point of depar-
     9  ture  of  any  flight or any leg of any flight is within this state, all
    10  such fuel consumed during the takeoff of such a flight; and (iii)  where
    11  only  the  point  of  arrival  of any flight or any leg of any flight is
    12  within this state or where neither the point of arrival nor the point of
    13  departure of any flight or any leg of any flight is within  this  state,
    14  none  of the fuel consumed during such a flight] takeoffs from points in
    15  this state;
    16    § 2. Section 301-e of the tax law is amended by adding a new  subdivi-
    17  sion (f) to read as follows:
    18    (f)  An  aviation fuel business, which services four or more cities in
    19  the state with non-stop flights between such  cities,  shall  be  exempt
    20  from  the  tax imposed by this section and any surcharge imposed on such
    21  tax.
    22    § 3.  Severability clause. If any provision  of  this  part  shall  be
    23  adjudged  by  any  court  of  competent jurisdiction to be invalid, such
    24  judgment shall not affect, impair or invalidate the  remainder  thereof,
    25  but shall be confined in its operation to the provision thereof directly
    26  involved  in  the  controversy  in  which  such judgment shall have been
    27  rendered. It is hereby declared to be the intent of the legislature that
    28  this part would have been enacted even if such  invalid  provisions  had
    29  not  been included herein. Provided, more specifically, if the exemption
    30  from tax provided by subdivision (f) of section 301-e of the tax law, as
    31  added by section two of this act, shall  be  declared  unconstitutional,
    32  such  judgment  of  invalidity  shall not result in the extension of the
    33  exemption to all aviation fuel businesses, but shall,  as  of  the  date
    34  such  judicial  decision becomes final and no longer subject to judicial
    35  review, result only in the denial of such exemption to all aviation fuel
    36  businesses.
    37    § 4. This act shall take effect on the first  of  the  calendar  month
    38  next  succeeding  the sixtieth day after it shall have become a law, and
    39  shall apply to aviation fuel used or consumed on  or  after  such  date;
    40  provided,  however,  section  two  of this act shall take effect June 1,
    41  2005, and provided further, however, that effective immediately any rule
    42  or regulation necessary to implement the provisions of this act  may  be
    43  promulgated  and  any  procedures,  forms, or instructions necessary for
    44  such implementation may be adopted and issued on or before such date.

    45                                   PART K

    46    Section 1. Subdivision 17-a of section 3  of  the  alcoholic  beverage
    47  control  law, as added by section 6 of part W3 of chapter 62 of the laws
    48  of 2003, is amended to read as follows:
    49    17-a. "[Six] Seven day [option] license" means a license issued pursu-
    50  ant to this chapter and where the  off  premise  retail  license  holder
    51  [shall not] may remain open to the consumer all seven days of the week.

        S. 6060--B                         36                         A. 9560--B

     1    §  2.  Subdivision  4  of section 60 of the alcoholic beverage control
     2  law, as amended by section 1 of part W3 of chapter 62  of  the  laws  of
     3  2003, is amended to read as follows:
     4    4.  [Six]  Seven  day  [option]  license  to sell liquor at retail for
     5  consumption off the premises subject to  paragraph  (a)  of  subdivision
     6  fourteen of section one hundred five of this chapter.
     7    § 3. The section heading, subdivision 1 and subdivision 1-a of section
     8  63 of the alcoholic beverage control law, the section heading and subdi-
     9  vision  1 as amended and subdivision 1-a as added by section 1 of part U
    10  of chapter 686 of the laws of 2003, are amended to read as follows:
    11    [Six] Seven day [option] license to sell liquor at retail for consump-
    12  tion off the premises. 1. Any person may  make  an  application  to  the
    13  appropriate  board for a [six] seven day [option] license to sell liquor
    14  at retail not to be consumed upon the premises where sold. Such applica-
    15  tion shall be in such form and shall contain such information  as  shall
    16  be  required  by the rules of the liquor authority and shall be accompa-
    17  nied by a check or draft in the amount required by this article for such
    18  license.
    19    1-a. The liquor authority shall convert all current licenses  to  sell
    20  liquor  at  retail  for  consumption off the premises to [six] seven day
    21  [option] licenses to sell liquor at retail for consumption off the prem-
    22  ises pursuant to subdivision four of section sixty of this article.
    23    § 4. Subdivision 3 of section 75 of  the  alcoholic  beverage  control
    24  law,  as  amended  by  section 3 of part W3 of chapter 62 of the laws of
    25  2003, is amended to read as follows:
    26    3. [Six] Seven day  [option]  license  to  sell  wine  at  retail  for
    27  consumption  off  the  premises  subject to paragraph (a) of subdivision
    28  fourteen of section one hundred five of this chapter.
    29    § 5. The section heading, subdivision 1 and subdivision 1-a of section
    30  79 of the alcoholic beverage control law, the section heading and subdi-
    31  vision 1 as amended and subdivision 1-a as added by section 2 of part  U
    32  of chapter 686 of the laws of 2003, are amended to read as follows:
    33    [Six]  Seven  day [option] license to sell wine at retail for consump-
    34  tion off the premises. 1. The procedure set forth in section sixty-three
    35  [hereof] of this chapter shall apply so far as  applicable  to  applica-
    36  tions  for  [six] seven day [option] licenses to sell wine at retail for
    37  off-premise consumption. Such [six] seven day [option] license shall  in
    38  form  and  in substance be a license to the person specifically licensed
    39  to sell wine at retail for off-premise consumption.
    40    1-a. The liquor authority shall convert all current licenses  to  sell
    41  wine  at  retail  for  consumption  off  the premises to [six] seven day
    42  [option] licenses to sell wine at retail for consumption off  the  prem-
    43  ises pursuant to subdivision three of section seventy-five of this arti-
    44  cle.    However,  the  conversion  of the license to the [six] seven day
    45  [option] license shall not affect licenses other  than  licenses  issued
    46  pursuant  to  subdivision  three of section seventy-five of this article
    47  prior to the effective date of part W3 of [a] chapter 62 of the laws  of
    48  2003[,  amending  the  alcoholic beverage control law relating to imple-
    49  menting the state fiscal plan for the 2003-2004 state  fiscal  year,  as
    50  enacted by legislative bill numbers S.1406-B and A.2106-B].
    51    §  6.  Subdivisions  8  and  9 of section 63 of the alcoholic beverage
    52  control law are REPEALED.
    53    § 7. Subdivisions 5-a and 6 of section 79 of  the  alcoholic  beverage
    54  control law are REPEALED.
    55    § 8. This act shall take effect immediately, provided, however:

        S. 6060--B                         37                         A. 9560--B

     1    a.  the  amendments  to subdivision 17-a of section 3 of the alcoholic
     2  beverage control law, as amended by section one of this act,  shall  not
     3  affect the repeal of such subdivision and shall be deemed repealed ther-
     4  ewith;
     5    b.  the amendments to subdivision 4 of section 60 and subdivision 3 of
     6  section 75 of the alcoholic beverage control law, as amended by sections
     7  two and four of this act, shall not affect the expiration of such subdi-
     8  visions and shall be deemed to expire therewith.

     9                                   PART L

    10    Section 1. Section 1115 of the tax law is  amended  by  adding  a  new
    11  subdivision (dd) to read as follows:
    12    (dd)  (1) Services otherwise taxable under paragraph three of subdivi-
    13  sion (c) of section eleven hundred five or under section eleven  hundred
    14  ten  of  this article, and tangible personal property purchased and used
    15  by the person who sells such services in performing such services, where
    16  such property becomes a physical component part  of  the  property  upon
    17  which  the  services are performed or where such property is a lubricant
    18  applied to aircraft, shall be exempt from tax under this  article  where
    19  such services are performed on aircraft.
    20    (2)  The service of storing an aircraft provided by a person who sells
    21  a service exempt under paragraph one  of  this  subdivision,  when  such
    22  storing  is  rendered  in conjunction with, and during the rendering of,
    23  such service to such aircraft, shall be  exempt  from  the  tax  imposed
    24  under  paragraph  four of subdivision (c) of section eleven hundred five
    25  of this article.
    26    § 2. This act shall take effect December 1, 2004, and shall  apply  to
    27  sales  made,  services rendered and uses occurring on or after that date
    28  in accordance with the applicable transitional  provisions  of  sections
    29  1106  and  1217  of the tax law, and shall expire and be deemed repealed
    30  December 1, 2009; the commissioner of  taxation  and  finance  shall  be
    31  immediately  authorized  to adopt and amend any rules or regulations and
    32  issue any procedure, forms or instructions necessary to  implement  this
    33  act on its effective date; furthermore, the commissioner of taxation and
    34  finance,  in  conjunction with the commissioner of transportation, shall
    35  review and analyze all statistical data available for such  purposes  of
    36  determining  the  economic  and  revenue impact of the sales and use tax
    37  exemptions provided in this act; such report shall include, but  not  be
    38  limited to, any increases in aviation related employment, airplane main-
    39  tenance, and increases in hangaring in New York state; such report shall
    40  be  transmitted  to  the governor, senate majority leader and speaker of
    41  the assembly.

    42                                   PART M

    43    Section 1. Subdivision (b) of section 1119 of the tax law, as added by
    44  chapter 836 of the laws of 1974, is amended to read as follows:
    45    (b) Subject to the conditions and limitations  provided  for  in  this
    46  subdivision, a refund or credit shall be allowed for a tax paid pursuant
    47  to subdivision (a) [of section eleven hundred five,] and paragraph three
    48  of  subdivision  (c)  of  section eleven hundred five, or section eleven
    49  hundred ten of this article and any tax imposed pursuant to the authori-
    50  ty of article twenty-nine of this chapter on the sale to or  use  by  an
    51  omnibus  carrier  described  in  this subdivision of any omnibus, and of
    52  parts, equipment, lubricants, motor fuel,  diesel  motor  fuel,  mainte-

        S. 6060--B                         38                         A. 9560--B

     1  nance,  servicing  or  repair purchased and used in the operation of any
     2  such omnibus by such carrier or on the sale to or use by a vessel opera-
     3  tor described in this subdivision of a vessel with a seating capacity of
     4  more  than  twenty  passengers  used  for the transportation on water of
     5  passengers for hire, and of parts, equipment, lubricants,  diesel  motor
     6  fuel,  maintenance, servicing or repair purchased and used in the opera-
     7  tion of any such vessel by such operator.  Any such omnibus  carrier  or
     8  vessel  operator  must  provide  local transit service in this state and
     9  operate pursuant to a certificate of public  convenience  and  necessity
    10  issued  by  the  commissioner of transportation of this state or by [the
    11  interstate commerce commission] a like officer or agency of  the  United
    12  States  or  pursuant  to the contract, franchise or consent between such
    13  carrier or operator and a city having a  population  of  more  than  one
    14  million  inhabitants,  or  any  agency  of such city. The amount of such
    15  refund or credit shall be determined by first computing the local trans-
    16  it service percentage which shall be the proportion that, in the case of
    17  such a carrier, such carrier's vehicle mileage or, in the case  of  such
    18  an  operator,  such  operator's vessel hours in local transit service in
    19  this state in the calendar year immediately preceding  the  end  of  the
    20  quarterly return period, prescribed by section eleven hundred thirty-six
    21  of  this  article,  to which such refund or credit relates bears to such
    22  carrier's total mileage operated in this state  in  such  year  or  such
    23  operator's  total hours operated in this state in such year, as the case
    24  may be.  An omnibus carrier or vessel operator which was not engaged  in
    25  local  transit  service  in  the preceding calendar year shall determine
    26  such percentage with respect to its first four quarterly  returns  filed
    27  pursuant  to section eleven hundred thirty-six of this article, by using
    28  the proportion that such carrier's vehicle mileage  or  such  operator's
    29  vessel  hours  in local transit service in this state in the first three
    30  months of such operation bears to such carrier's total mileage  or  such
    31  operator's total hours operated in this state in such period. The amount
    32  of  the  refund  or credit allowable on the combined state and local tax
    33  paid on such purchases or uses then shall be  determined  in  accordance
    34  with the following table:
    35     If the local transit service percent-   The refund or credit is:
    36  age is:
    37  Less than 10 percent                       None
    38  10 percent                                 10 percent of such
    39                                             combined tax
    40  Greater than 10 percent but less           10 percent plus (the
    41                                             product of
    42  than 70 percent                            1.5 times each whole
    43                                             percent in excess
    44                                             of 10 percent) of such
    45                                             combined tax
    46  70 percent or more                         100 percent of such
    47                                             combined tax
    48  For purposes of this subdivision, local transit service, vehicle mileage
    49  [and],  vessel  hours,  total  mileage operated and total hours operated
    50  shall be defined by rule or regulation of  the  [state  tax  commission]
    51  commissioner  and  records  satisfactory to the [tax commission] commis-
    52  sioner shall be maintained by the carrier or operator.   An  application
    53  for  a  refund or credit pursuant to this subdivision must be filed with
    54  [such commission] the commissioner within the time provided by  subdivi-
    55  sion  (a)  of  section eleven hundred thirty-nine of this article.  Such
    56  application shall be in such form as the [tax  commission]  commissioner

        S. 6060--B                         39                         A. 9560--B

     1  may  prescribe.  Where  an  application  for  credit has been filed, the
     2  applicant may immediately take such credit on the return  which  is  due
     3  coincident  with  or  immediately  subsequent  to the time that [he] the
     4  applicant files [his] the application for credit. However, the taking of
     5  the  credit  on the return shall be deemed to be part of the application
     6  for credit and shall be subject to the provisions in respect to applica-
     7  tions for credit in section eleven hundred thirty-nine of  this  article
     8  as provided in subdivision (e) of such section.
     9    §  2.  This act shall take effect December 1, 2004, and shall apply to
    10  sales made, services rendered and uses occurring on or after  that  date
    11  in accordance with applicable transitional provisions of articles 28 and
    12  29  of  the  tax  law  provided,  that  the commissioner of taxation and
    13  finance shall be authorized on and after the date this  act  shall  have
    14  become  a  law to adopt and amend any rules or regulations and issue any
    15  procedure, forms or instructions necessary to implement this act on  its
    16  effective date.

    17                                   PART N

    18    Section  1. The tax law is amended by adding a new section 5-a to read
    19  as follows:
    20    § 5-a. Sales and compensating use tax obligations of certain  contrac-
    21  tors,  subcontractors  and  their  affiliates.  1.  For purposes of this
    22  section, the following terms shall have the specified meanings:
    23    (a) "Affiliate" means a person which, through stock ownership  or  any
    24  other affiliation, directly, indirectly or constructively
    25    (1) controls another person;
    26    (2) is controlled by another person; or
    27    (3)  is,  along  with  another  person,  under the control of a common
    28  parent.
    29    (b) "Commodities" means commodities as defined in  article  eleven  of
    30  the state finance law and tangible personal property.
    31    (c)  "Contract"  means an agreement between a contractor and a covered
    32  agency for the sale of commodities or services having a value in  excess
    33  of fifteen thousand dollars.
    34    (d) "Contractor" means a person awarded a contract.
    35    (e)  "Covered  agency"  includes  the  state,  any  department, board,
    36  bureau, commission, division, office, council or agency  of  the  state,
    37  and a public authority or a public benefit corporation.
    38    (f) "Sales and compensating use taxes" means state and local sales and
    39  compensating  use  taxes imposed by article twenty-eight and pursuant to
    40  the authority of article twenty-nine of this chapter, which are adminis-
    41  tered by the commissioner.
    42    (g) "Services" means services as defined  in  article  eleven  of  the
    43  state finance law and taxable services.
    44    (h) "Subcontractor" means a person providing commodities or performing
    45  services for a contractor or another subcontractor in the fulfillment of
    46  a contract.
    47    (i) "State" means the state of New York.
    48    (j)  "Taxable  services" means services, the receipts from the sale of
    49  which are taxable by article twenty-eight or article twenty-nine of this
    50  chapter.
    51    (k) The terms "person," "receipts," "sale," "tangible personal proper-
    52  ty" and "vendor" have the meanings given in article twenty-eight of this
    53  chapter.

        S. 6060--B                         40                         A. 9560--B

     1    2. (a) Notwithstanding  any  provision  of  law  to  the  contrary,  a
     2  contract  shall not be approved by the state comptroller or, in cases in
     3  which the state comptroller is not required to approve the contract,  by
     4  such  other  agency  or  unit  thereof  responsible  for approval of the
     5  contract,  and  shall  not  be  valid,  effective or binding against the
     6  covered agency, if the contractor, any affiliate of the contractor,  any
     7  subcontractor  or  any affiliate of the subcontractor makes sales deliv-
     8  ered by any means to locations within the  state  of  tangible  personal
     9  property  or  taxable services having a value in excess of three hundred
    10  thousand dollars, and is not registered for sales and  compensating  use
    11  tax  purposes  with the commissioner under sections eleven hundred thir-
    12  ty-four and twelve hundred fifty-three of this chapter.
    13    (b) Prior to the date a contract is to be submitted for approval,  the
    14  contractor shall certify in writing, under penalty of perjury, that:
    15    (1)  if the contractor makes sales delivered by any means to locations
    16  within the state of  tangible  personal  property  or  taxable  services
    17  having a value in excess of three hundred thousand dollars, the contrac-
    18  tor  holds  a valid certificate of authority. If the contractor does not
    19  make sales delivered by any means  to  locations  within  the  state  of
    20  tangible  personal property or taxable services having a value in excess
    21  of three hundred thousand dollars, then the contractor shall so certify;
    22    (2) if any affiliate of the contractor makes sales  delivered  by  any
    23  means  to  locations  within  the state of tangible personal property or
    24  taxable services having a value in  excess  of  three  hundred  thousand
    25  dollars,  to the best of the contractor's knowledge, each such affiliate
    26  holds a valid certificate of authority. If the contractor does not  have
    27  any  affiliates  making sales delivered by any means to locations within
    28  the state of tangible personal property or  taxable  services  having  a
    29  value  in  excess of three hundred thousand dollars, then the contractor
    30  shall so certify; and
    31    (3) if any subcontractor or any affiliate of the  subcontractor  makes
    32  sales  delivered  by any means to locations within the state of tangible
    33  personal property or taxable services having a value in excess of  three
    34  hundred  thousand  dollars,  to  the best of the contractor's knowledge,
    35  each such subcontractor and  affiliate  holds  a  valid  certificate  of
    36  authority.  If there is no subcontractor or affiliate of the subcontrac-
    37  tor making sales delivered by any means to locations within the state of
    38  tangible personal property or taxable services having a value in  excess
    39  of three hundred thousand dollars, then the contractor shall so certify.
    40    (c)  The contractor's certification, along with true copies, if appli-
    41  cable, of the certificate of authority held by the  contractor  and,  if
    42  applicable, by, each affiliate of the contractor, each subcontractor and
    43  each  affiliate of the subcontractor, shall be incorporated in, and made
    44  a part of, the contract.
    45    (d) A contractor, affiliate of the contractor, subcontractor or affil-
    46  iate of the subcontractor which registers for sales and compensating use
    47  tax purposes with the commissioner under sections eleven  hundred  thir-
    48  ty-four  and  twelve  hundred  fifty-three  of  this chapter in order to
    49  comply with the provisions of this subdivision shall file a  certificate
    50  of  registration with the commissioner at least twenty days prior to the
    51  date the contract is to be submitted for approval  to  the  state  comp-
    52  troller  or,  in cases in which the state comptroller is not required to
    53  approve the contract, to such other agency or unit  thereof  responsible
    54  for  approval  of the contract. Once registered, such contractor, affil-
    55  iate of the contractor, subcontractor or affiliate of the  subcontractor

        S. 6060--B                         41                         A. 9560--B

     1  shall be a vendor and shall comply with and be subject to the provisions
     2  of articles twenty-eight and twenty-nine of this chapter.
     3    (e)  The  registration  requirement  prescribed by this subdivision in
     4  order for a contract to be approved shall be in addition  to  any  other
     5  requirements  prescribed  by  law  for  approval of contracts to which a
     6  covered agency is a party.
     7    3. (a) During the term of a contract, the  contractor  shall,  at  the
     8  times  specified  in paragraph (b) of this subdivision, certify in writ-
     9  ing, under penalty of perjury, that:
    10    (1) if the contractor makes sales delivered by any means to  locations
    11  within  the  state  of  tangible  personal  property or taxable services
    12  having a value in excess of three hundred thousand dollars, the contrac-
    13  tor holds a valid certificate of authority. If the contractor  does  not
    14  make  sales  delivered  by  any  means  to locations within the state of
    15  tangible personal property or taxable services having a value in  excess
    16  of three hundred thousand dollars, then the contractor shall so certify;
    17  and
    18    (2)  if  any  affiliate of the contractor makes sales delivered by any
    19  means to locations within the state of  tangible  personal  property  or
    20  taxable  services  having  a  value  in excess of three hundred thousand
    21  dollars, to the best of the contractor's knowledge, each such  affiliate
    22  holds  a valid certificate of authority. If the contractor does not have
    23  any affiliates making sales delivered by any means to  locations  within
    24  the  state  of  tangible  personal property or taxable services having a
    25  value in excess of three hundred thousand dollars, then  the  contractor
    26  shall so certify; and
    27    (3)  if  any subcontractor or any affiliate of the subcontractor makes
    28  sales delivered by any means to locations within the state  of  tangible
    29  personal  property or taxable services having a value in excess of three
    30  hundred thousand dollars, to the best  of  the  contractor's  knowledge,
    31  each  such  subcontractor  and  affiliate  holds  a valid certificate of
    32  authority. If there is no subcontractor or affiliate of the  subcontrac-
    33  tor making sales delivered by any means to locations within the state of
    34  tangible  personal property or taxable services having a value in excess
    35  of three hundred thousand dollars, then the contractor shall so certify.
    36    (b) The contractor's certification shall be made:
    37    (1) in the case of an approved contract having a term of more than one
    38  year, annually, by the day prior to the commencement date  of  the  next
    39  succeeding year of the contract;
    40    (2) in the case of an approved contract which authorizes renewal ther-
    41  eof at the conclusion of an initial or subsequent term, by the day prior
    42  to the commencement date of the applicable renewal term.
    43    (c)  The contractor's certification, along with true copies, if appli-
    44  cable, of the certificate of authority held by the  contractor  and,  if
    45  applicable,  by each affiliate of the contractor, each subcontractor and
    46  each affiliate of the subcontractor making sales delivered by any  means
    47  to  locations  within the state of tangible personal property or taxable
    48  services having a value in excess of  three  hundred  thousand  dollars,
    49  shall be incorporated in, and made a part of, the contract.
    50    (d)  If,  at the times specified in paragraph (b) of this subdivision,
    51  the contractor fails to make the certification required by this subdivi-
    52  sion, or if, during the term of the contract, the covered agency discov-
    53  ers that such certification was false when made, then  such  failure  or
    54  false  certification shall be a material breach of the contract, and the
    55  contract shall be subject to termination if the  covered  agency  deter-
    56  mines that such action is in the best interests of such agency.

        S. 6060--B                         42                         A. 9560--B

     1    (e) A contractor, affiliate of the contractor, subcontractor or affil-
     2  iate of the subcontractor which registers for sales and compensating use
     3  tax  purposes  with the commissioner under sections eleven hundred thir-
     4  ty-four and twelve hundred fifty-three  of  this  chapter  in  order  to
     5  comply  with the provisions of this subdivision shall file a certificate
     6  of registration with the commissioner at  least  twenty  days  prior  to
     7  making  sales  delivered  by  any means to locations within the state of
     8  tangible personal property or taxable services having a value in  excess
     9  of  three  hundred thousand dollars.   Once registered, such contractor,
    10  affiliate of the contractor, subcontractor or affiliate of  the  subcon-
    11  tractor  shall  be  a vendor and shall comply with and be subject to the
    12  provisions of articles twenty-eight and twenty-nine of this chapter.
    13    4. The department shall create and  maintain  an  electronic  database
    14  containing information regarding persons registered with the commission-
    15  er  under  sections eleven hundred thirty-four and twelve hundred fifty-
    16  three of this chapter and persons whose certificates of authority issued
    17  under or pursuant to such provisions have been suspended, revoked or not
    18  renewed. Such database shall be made available to covered  agencies  for
    19  query  as  to  the sales and compensating use tax registration status of
    20  contractors and their affiliates  and  their  subcontractors  and  their
    21  affiliates.
    22    5. The provisions of this section shall not apply to a contract if:
    23    (a) the covered agency determines in writing that
    24    (1)  the  contract  is necessary to address an "emergency," within the
    25  meaning of article eleven of the state finance law, and  the  contractor
    26  is the only person capable of fulfilling the contract;
    27    (2)  the  contract  is  necessary to ensure the provision of essential
    28  services, and the contractor is the only person  capable  of  fulfilling
    29  the contract; or
    30    (3)  the contract is necessary to ensure the public health, safety and
    31  welfare, and the contractor is the only person capable of fulfilling the
    32  contract; and
    33    (b) the state comptroller or, in cases in which the state  comptroller
    34  is not required to approve the contract, such other agency or unit ther-
    35  eof responsible for approval of the contract, in writing:
    36    (1)  concurs, with the determination of the covered agency that one or
    37  more of the conditions specified in paragraph (a)  of  this  subdivision
    38  apply; and
    39    (2) explains, the reasons supporting such determination.
    40    §  2.  This  act  shall  take  effect  immediately, and shall apply to
    41  contracts, as defined in section 5-a of the tax law, as added by section
    42  one of this act, resulting from  solicitations  to  purchase  issued  by
    43  covered agencies on or after January 1, 2005.

    44                                   PART O

    45    Section  1.  Subdivision  (a)  of section 969 of the general municipal
    46  law, as amended by section 1 of part F of chapter 262  of  the  laws  of
    47  2004, is amended to read as follows:
    48    (a)  Except as provided in this section, any designation of an area as
    49  an empire zone shall remain in effect during the period beginning on the
    50  date  of   designation   and   ending   [September   thirteenth]   March
    51  thirty-first, two thousand [four] five.
    52    § 2. This act shall take effect immediately.

    53                                   PART P

        S. 6060--B                         43                         A. 9560--B

     1    Section  1.  The tax law is amended by adding a new section 24 to read
     2  as follows:
     3    § 24. Empire state film production credit. (a)(1) Allowance of credit.
     4  A  taxpayer  which is a qualified film production company, or which is a
     5  sole proprietor of a qualified film production company ,  and  which  is
     6  subject  to  tax  under  articles  nine-A or twenty-two of this chapter,
     7  shall be allowed a credit against such tax, pursuant to  the  provisions
     8  referenced in subdivision (c) of this section, to be computed as herein-
     9  after provided.
    10    (2)  The  amount of the credit shall be the product (or pro rata share
    11  of the product, in the case of a member of a partnership) of ten percent
    12  and the qualified production costs paid or incurred in the production of
    13  a qualified film, provided that the qualified production costs  (exclud-
    14  ing  post  production  costs) paid or incurred which are attributable to
    15  the use of tangible property or the performance of services at a  quali-
    16  fied  film  production facility in the production of such qualified film
    17  equal or exceed seventy-five percent of the production costs  (excluding
    18  post  production  costs)  paid or incurred which are attributable to the
    19  use of tangible property or the performance  of  services  at  any  film
    20  production  facility  within  and without the state in the production of
    21  such qualified film. However, if the qualified production costs (exclud-
    22  ing post production costs) which are attributable to the use of tangible
    23  property or the performance of services at a qualified  film  production
    24  facility  in  the  production  of such qualified film is less than three
    25  million dollars, then the portion of  the  qualified  productions  costs
    26  attributable  to  the  use  of  tangible  property or the performance of
    27  services in the production of such qualified film outside of a qualified
    28  film production facility shall be allowed  only  if  the  shooting  days
    29  spent  in  New  York  outside  of  a  film  production  facility  in the
    30  production of such qualified film equal or exceed  seventy-five  percent
    31  of  the total shooting days spent within and without New York outside of
    32  a film production facility in the production  of  such  qualified  film.
    33  The credit shall be allowed for the taxable year in which the production
    34  of such qualified film is completed.
    35    (3)  No  qualified  production  costs used by a taxpayer either as the
    36  basis for the allowance of the credit provided for under this section or
    37  used in the calculation of the credit provided for  under  this  section
    38  shall  be used by such taxpayer to claim any other credit allowed pursu-
    39  ant to this chapter.
    40    (b) Definitions. As used in this section, the  following  terms  shall
    41  have the following meanings:
    42    (1)  "Qualified  production  costs" means production costs only to the
    43  extent such costs are attributable to the use of  tangible  property  or
    44  the  performance of services within the state directly and predominantly
    45  in the production (including pre-production and post  production)  of  a
    46  qualified film.
    47    (2)  "Production costs" means any costs for tangible property used and
    48  services performed directly and predominantly in the production (includ-
    49  ing pre-production and post production) of a qualified film. "Production
    50  costs" shall not include (i) costs for a story, script or scenario to be
    51  used for a qualified film and (ii) wages or salaries  or  other  compen-
    52  sation  for writers, directors, including music directors, producers and
    53  performers (other  than  background  actors  with  no  scripted  lines).
    54  "Production  costs"  generally  include  technical  and  crew production
    55  costs, such as expenditures for film production facilities, or any  part

        S. 6060--B                         44                         A. 9560--B

     1  thereof, props, makeup, wardrobe, film processing, camera, sound record-
     2  ing, set construction, lighting, shooting, editing and meals.
     3    (3)  "Qualified  film"  means  a feature-length film, television film,
     4  television pilot and/or each episode of a television series,  regardless
     5  of the medium by means of which the film, pilot or episode is created or
     6  conveyed.  "Qualified  film"  shall  not include (i) a documentary film,
     7  news or current affairs program, interview  or  talk  program,  "how-to"
     8  (i.e., instructional) film or program, film or program consisting prima-
     9  rily  of  stock  footage, sporting event or sporting program, game show,
    10  award ceremony, film  or  program  intended  primarily  for  industrial,
    11  corporate  or  institutional  end-users,  fundraising  film  or program,
    12  daytime drama (i.e., daytime "soap opera"), commercials, music videos or
    13  "reality" program, or (ii) a production for which records  are  required
    14  under  section  2257  of  title 18, United States code, to be maintained
    15  with respect to any performer in such production  (reporting  of  books,
    16  films, etc. with respect to sexually explicit conduct).
    17    (4) "Film production facility" shall mean a building and/or complex of
    18  buildings  and  their improvements and associated back-lot facilities in
    19  which films are or are intended  to  be  regularly  produced  and  which
    20  contain at least one sound stage.
    21    (5)  "Qualified film production facility" shall mean a film production
    22  facility in the state, which contains at least one sound stage having  a
    23  minimum of seven thousand square feet of contiguous production space.
    24    (6) "Qualified film production company" is a corporation, partnership,
    25  limited partnership, or other entity or individual which or who is prin-
    26  cipally  engaged  in the production of a qualified film and controls the
    27  qualified film during production.
    28    (c) Cross-references. For application of the credit  provided  for  in
    29  this section, see the following provisions of this chapter:
    30    (1) article 9-A: section 210: subdivision 36.
    31    (2) article 22: section 606: subsection (gg).
    32    § 2. Section 210 of the tax law is amended by adding a new subdivision
    33  36 to read as follows:
    34    36.  Empire  state  film production credit. (a) Allowance of credit. A
    35  taxpayer who is eligible pursuant to section twenty-four of this chapter
    36  shall be allowed a credit to be computed as  provided  in  such  section
    37  twenty-four against the tax imposed by this article.
    38    (b)  Application  of credit. The credit allowed under this subdivision
    39  for any taxable year shall not reduce the tax due for such year to  less
    40  than  the  amount prescribed in paragraph (d) of subdivision one of this
    41  section. Provided, however, that if the amount of the  credit  allowable
    42  under  this  subdivision  for  any  taxable year reduces the tax to such
    43  amount, fifty percent of the excess shall be treated as  an  overpayment
    44  of  tax  to be credited or refunded in accordance with the provisions of
    45  section ten hundred eighty-six of this chapter.  Provided, however,  the
    46  provisions of subsection (c) of section ten hundred eighty-eight of this
    47  chapter  notwithstanding, no interest shall be paid thereon. The balance
    48  of such credit not credited or refunded in  such  taxable  year  may  be
    49  carried  over  to  the  immediately  succeeding  taxable year and may be
    50  deducted from the taxpayer's tax for such year. The excess, if  any,  of
    51  the  amount of the credit over the tax for such succeeding year shall be
    52  treated as an overpayment of tax to be credited or refunded  in  accord-
    53  ance with the provisions of section ten hundred eighty-six of this chap-
    54  ter.  Provided, however, the provisions of subsection (c) of section ten
    55  hundred  eighty-eight of this chapter notwithstanding, no interest shall
    56  be paid thereon.

        S. 6060--B                         45                         A. 9560--B

     1    § 3. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
     2  of the tax law, as separately amended by sections 4, 15 and 23 of part H
     3  of chapter 1 of the laws of 2003, is amended to read as follows:
     4    (B)  shall  be  treated as the owner of a new business with respect to
     5  such share if the corporation qualifies as a new  business  pursuant  to
     6  paragraph  (j)  of subdivision twelve of section two hundred ten of this
     7  chapter.

     8                                          The corporation's
     9  With respect to the                     credit base under
    10  following credit                        section two hundred ten
    11  under this section:                     or section fourteen
    12                                          hundred fifty-six of this
    13                                          chapter is:

    14  Investment tax credit                   Investment credit base
    15  under subsection (a)                    or qualified
    16                                          rehabilitation
    17                                          expenditures under
    18                                          subdivision twelve of
    19                                          section two hundred ten

    20  Empire zone                             Cost or other basis
    21  investment tax credit                   under subdivision
    22  under subsection (j)                    twelve-B
    23                                          of section two hundred
    24                                          ten

    25  Empire zone                             Eligible wages under
    26  wage tax credit                         subdivision nineteen of
    27  under subsection (k)                    section two hundred ten
    28                                          or subsection (e) of
    29                                          section fourteen hundred
    30                                          fifty-six

    31  Empire zone                             Qualified investments
    32  capital tax credit                      and contributions under
    33  under subsection (1)                    subdivision twenty of
    34                                          section two hundred ten
    35                                          or subsection (d) of
    36                                          section fourteen hundred
    37                                          fifty-six

    38  Agricultural property tax               Allowable school
    39  credit under subsection (n)             district property taxes under
    40                                          subdivision twenty-two of
    41                                          section two hundred ten

    42  Credit for employment                   Qualified first-year wages or
    43  of persons with dis-                    qualified second-year wages
    44  abilities under                         under subdivision
    45  subsection (o)                          twenty-three of section
    46                                          two hundred ten
    47                                          or subsection (f)
    48                                          of section fourteen
    49                                          hundred fifty-six

        S. 6060--B                         46                         A. 9560--B

     1  Employment incentive                    Applicable investment credit
     2  credit under subsec-                    base under subdivision
     3  tion (a-1)                              twelve-D of section two
     4                                          hundred ten

     5  Empire zone                             Applicable investment
     6  employment                              credit under sub-
     7  incentive credit under                  division twelve-C
     8  subsection (j-1)                        of section two hundred ten

     9  Alternative fuels credit                Cost under subdivision
    10  under subsection (p)                    twenty-four of section two
    11                                          hundred ten

    12  Qualified emerging                      Applicable credit base
    13  technology company                      under subdivision twelve-E
    14  employment credit                       of section two hundred ten
    15  under subsection (q)

    16  Qualified emerging                      Qualified investments under
    17  technology company                      subdivision twelve-F of
    18  capital tax credit                      section two hundred ten
    19  under subsection (r)

    20  Credit for purchase of an               Cost of an automated
    21  automated external defibrillator        external defibrillator under
    22  under subsection (s)                    subdivision twenty-five of
    23                                          section two hundred ten
    24                                          or subsection (j) of section
    25                                          fourteen hundred fifty-six

    26  Low-income housing                      Credit amount under
    27  credit under subsection (x)             subdivision thirty
    28                                          of section two hundred ten or
    29                                          subsection (1) of section
    30                                          fourteen hundred fifty-six

    31  Credit for transportation               Amount of credit under sub-
    32  improvement contributions               division thirty-two of section
    33  under subsection (z)                    two hundred ten or subsection
    34                                          (n) of section fourteen
    35                                          hundred fifty-six

    36  IMB credit for energy                   Amount of credit
    37  taxes under sub-                        under subdivision
    38  section (t-1)                           twenty-six-a of
    39                                          section two hundred ten

    40  QEZE credit for real property           Amount of credit under
    41  taxes under subsection (bb)             subdivision twenty-seven of
    42                                          section two hundred ten or
    43                                          subsection (o) of section
    44                                          fourteen hundred fifty-six

    45  QEZE tax reduction credit               Amount of benefit period
    46  under subsection (cc)                   factor, employment increase factor

        S. 6060--B                         47                         A. 9560--B

     1                                          and zone allocation
     2                                          factor (without regard
     3                                          to pro ration) under
     4                                          subdivision twenty-eight of
     5                                          section two hundred ten or
     6                                          subsection (p) of section
     7                                          fourteen hundred fifty-six
     8                                          and amount of tax factor
     9                                          as determined under
    10                                          subdivision (f) of section sixteen

    11  Green building credit                   Amount of green building credit
    12  under subsection (y)                    under subdivision thirty-one
    13                                          of section two hundred ten
    14                                          or subsection (m) of section
    15                                          fourteen hundred fifty-six

    16  Credit for long-term                    Qualified costs under
    17  care insurance premiums                 subdivision twenty-five-a of
    18  under subsection (aa)                   section two hundred ten
    19                                          or subsection (k) of section
    20                                          fourteen hundred fifty-six

    21  Brownfield redevelopment                Amount of credit
    22  credit under subsection                 under subdivision
    23  (dd)                                    thirty-three of section
    24                                          two hundred ten
    25                                          or subsection (q) of
    26                                          section fourteen hundred
    27                                          fifty-six

    28  Remediated brownfield                   Amount of credit under
    29  credit for real property                subdivision thirty-four
    30  taxes for qualified                     of section two hundred
    31  sites under subsection                  ten or subsection (r) of
    32  (ee)                                    section fourteen hundred
    33                                          fifty-six

    34  Environmental                           Amount of credit under
    35  remediation                             subdivision thirty-five of
    36  insurance credit under                  section two hundred
    37  subsection (ff)                         ten or subsection
    38                                          (s) of section
    39                                          fourteen hundred
    40                                          fifty-six

    41  Empire state film production            Amount of credit for qualified
    42  credit under subsection (gg)            production costs in production
    43                                          of a qualified film under
    44                                          subdivision thirty-six of
    45                                          section two hundred ten
    46    §  4. Section 606 of the tax law is amended by adding a new subsection
    47  (gg) to read as follows:
    48    (gg) Empire state film production credit. (1) Allowance of  credit.  A
    49  taxpayer who is eligible pursuant to section twenty-four of this chapter

        S. 6060--B                         48                         A. 9560--B

     1  shall  be  allowed  a  credit to be computed as provided in such section
     2  twenty-four against the tax imposed by this article.
     3    (2) Application of credit. If the amount of the credit allowable under
     4  this subsection for any taxable year exceeds the taxpayer's tax for such
     5  year,  fifty percent of the excess shall be treated as an overpayment of
     6  tax to be credited or refunded as provided in section six hundred eight-
     7  y-six of this article, provided, however, that no interest shall be paid
     8  thereon. The balance of such credit not credited  or  refunded  in  such
     9  taxable  year  may be carried over to the immediately succeeding taxable
    10  year and may be deducted from the taxpayer's  tax  for  such  year.  The
    11  excess,  if  any,  of  the  amount  of  the credit over the tax for such
    12  succeeding year shall be treated as an overpayment of tax to be credited
    13  or refunded as provided in section six hundred eighty-six of this  arti-
    14  cle, provided, however, that no interest shall be paid thereon.
    15    §  5. The opening paragraph of section 1201-a of the tax law is desig-
    16  nated subdivision (a) and a new subdivision (b)  is  added  to  read  as
    17  follows:
    18    (b) Empire state film production credit. Any city in this state having
    19  a  population  of one million or more, acting through its local legisla-
    20  tive body, is hereby authorized to adopt and amend local laws to allow a
    21  credit against the general  corporation  tax  imposed  pursuant  to  the
    22  authority  of  chapter seven hundred seventy-two of the laws of nineteen
    23  hundred sixty-six which shall be substantially identical to  the  credit
    24  allowed  under  section twenty-four of this chapter, except that (A) the
    25  percentage of qualified production costs used to calculate  such  credit
    26  shall  be five percent, and (B) whenever such section twenty-four refer-
    27  ences the state, such words shall be read as referencing the city.  Such
    28  credit shall be applied in a manner consistent with the  credit  allowed
    29  under subdivision thirty-six of section two hundred ten of this chapter.
    30    § 6. Section 1310 of the tax law is amended by adding a new subsection
    31  (f) to read as follows:
    32    (f) Empire state film production credit. Any city in this state having
    33  a  population  of one million or more, acting through its local legisla-
    34  tive body, is hereby authorized to adopt and amend local laws to allow a
    35  credit against the taxes, except for the taxes determined under sections
    36  thirteen hundred one-a and  thirteen  hundred  one-b  of  this  article,
    37  imposed  pursuant to the authority of this article which credit shall be
    38  substantially identical to the credit allowed under section  twenty-four
    39  of  this chapter, except that (A) the percentage of qualified production
    40  costs used to calculate such credit shall be five percent, and (B) when-
    41  ever such section twenty-four references the state, such words shall  be
    42  read  as  referencing the city. Such credit shall be applied in a manner
    43  consistent with the credit allowed under subsection (gg) of section  six
    44  hundred six of this chapter.
    45    §  7. Maximum amount of credits. (a) The aggregate amount of tax cred-
    46  its allowed  under  section  24,  subdivision  36  of  section  210  and
    47  subsection (gg) of section 606 of the tax law in any calendar year shall
    48  be  $25  million. Such aggregate amount of credits shall be allocated by
    49  the governor's office for  motion  picture  and  television  development
    50  among  taxpayers  in  order of priority based upon the date of filing an
    51  application for allocation of film production credit with  such  office.
    52  If  the  total amount of allocated credits applied for in any particular
    53  year exceeds the aggregate amount of tax credits allowed for  such  year
    54  under  this section, such excess shall be treated as having been applied
    55  for on the first day of the subsequent year.

        S. 6060--B                         49                         A. 9560--B

     1    (b) The aggregate amount  of  tax  credits  allowed  pursuant  to  the
     2  authority  of  subdivision  (b) of section 1201-a and subdivision (f) of
     3  section 1310 of the tax law in any calendar year shall be $12.5 million.
     4  Such aggregate amount of credits  shall  be  allocated  by  the  mayor's
     5  office  of  film,  theater  and broadcasting among taxpayers in order of
     6  priority based upon the date of filing an application for allocation  of
     7  film  production  credit  with such office. If the total amount of allo-
     8  cated credits applied for in any particular year exceeds  the  aggregate
     9  amount  of  tax  credits  allowed for such year under this section, such
    10  excess shall be treated as having been applied for on the first  day  of
    11  the subsequent year.
    12    (c)  The  New  York  state commissioner of economic development, after
    13  consulting with the New York state commissioner of taxation and finance,
    14  the New York city commissioner of finance  and  the  mayor's  office  of
    15  film,  theater and broadcasting, shall promulgate regulations by October
    16  31, 2004 to establish procedures for the allocation of  tax  credits  as
    17  required by subdivision (a) of this section. In addition, upon enactment
    18  of  a local law allowing tax credits pursuant to the authority of subdi-
    19  vision (b) of section 1201-a and subdivision (f) of section 1310 of  the
    20  tax  law,  the  mayor's  office  of film, theater and broadcasting shall
    21  promulgate as soon as practicable substantially similar rules to  estab-
    22  lish  procedures for the allocation of tax credits as required by subdi-
    23  vision (b) of this section. Such rules  and  regulations  shall  include
    24  provisions  describing  the  application process, the due dates for such
    25  applications, the standards which shall be used to evaluate the applica-
    26  tions, the documentation that will be provided to taxpayers to  substan-
    27  tiate  to  the  New York state department of taxation and finance or the
    28  New York city department of finance the amount of tax credits  allocated
    29  to  such  taxpayers,  and  such other provisions as deemed necessary and
    30  appropriate. Notwithstanding any other provisions to the contrary in the
    31  state administrative procedure act or the city administrative  procedure
    32  act,  such rules and regulations may be adopted on an emergency basis if
    33  necessary to meet such October 31, 2004 deadline.
    34    § 8. The commissioner of the department of taxation  and  finance,  in
    35  conjunction  with  the  director  of  the  governor's  office for motion
    36  picture and television development, shall submit to  the  governor,  the
    37  temporary  president  of the senate, and the speaker of the assembly, an
    38  annual report to be submitted in February of each  year  evaluating  the
    39  effectiveness  of the film production tax credit provided by this act in
    40  stimulating the growth of the film industry in the  state.  Such  report
    41  shall  include,  but  not be limited to, in total and by qualified film,
    42  the number of qualified  films,  the  qualified  production  costs,  the
    43  production  costs,  the  qualified  film  production facilities, and the
    44  credit amounts claimed by each qualified film, as well as the impact  on
    45  employment  and  the  economy  of  the  state and city of New York. Such
    46  report shall be based on data available from the application filed  with
    47  the  governor's office for motion picture and television development for
    48  allocation of film production credits. Notwithstanding any provision  of
    49  law  to  the  contrary, the information contained in the report shall be
    50  public information. The report may also include any recommendations  for
    51  changes  in  the  calculation  or  administration of the credit, and any
    52  other recommendation of the commissioner regarding continuing  modifica-
    53  tion,  or  repeal  of such act, and such other information regarding the
    54  act as the commissioner may feel useful and appropriate.
    55    § 9. This act shall take effect immediately and shall apply to taxable
    56  years beginning on or after January 1, 2004, with respect to  "qualified

        S. 6060--B                         50                         A. 9560--B

     1  production  costs"  paid  or  incurred  on or after such effective date,
     2  regardless of whether the production of  the  qualified  film  commenced
     3  before  such  date,  provided  further that this act shall expire and be
     4  deemed repealed 4 years after such date, provided further that the expi-
     5  ration  and  repeal  of  this act shall not affect the carry over of any
     6  credit allowed pursuant to this act and, subsequent  to  the  expiration
     7  and  repeal  of  this  act,  such carry over credits shall be allowed as
     8  provided by and pursuant to the provisions of  this  act,  and  provided
     9  further  that  the IMB credit for energy taxes under subsection (t-l) of
    10  section 606 of the tax law contained in section three of this act  shall
    11  expire  on the same date as provided in subdivision (a) of section 49 of
    12  part Y of chapter 63 of the laws of 2000.

    13                                   PART Q

    14    Section 1. Subdivision 2 of section 250 of the tax law, as amended  by
    15  chapter 760 of the laws of 1992, is amended to read as follows:
    16    2.  (a)  The  term  "mortgage"  as used in this article includes every
    17  mortgage or deed of trust which imposes a lien on or affects  the  title
    18  to  real property, notwithstanding that such property may form a part of
    19  the security for the debt or debts secured thereby.   An  assignment  of
    20  rents  to  accrue  from  tenancies, subtenancies, leases or subleases of
    21  real property, within any city in the state having a population  of  one
    22  million  or more, given as security for an indebtedness, shall be deemed
    23  a mortgage of real property for  purposes  of  this  article.  Executory
    24  contracts for the sale of real property under which the vendee has or is
    25  entitled  to possession shall be deemed to be mortgages for the purposes
    26  of this article and shall be  taxable  at  the  amount  unpaid  on  such
    27  contracts.  A contract or agreement by which the indebtedness secured by
    28  any mortgage is increased or added to, shall be  deemed  a  mortgage  of
    29  real  property  for the purpose of this article, and shall be taxable as
    30  such upon the amount  of  such  increase  or  addition.  Notwithstanding
    31  anything in this section or section two hundred fifty-five of this arti-
    32  cle to the contrary, a contract or agreement whereby the proceeds of any
    33  indebtedness  secured  by a mortgage of real property in any city in the
    34  state having a population of one million or more are used to reduce  all
    35  or  any part of a mortgagee's equity interest in a wraparound or similar
    36  mortgage of such real property shall be deemed a mortgage of real  prop-
    37  erty  for  the  purposes of this article and shall be taxable as such to
    38  the extent of the amount of such proceeds so  used,  without  regard  to
    39  whether  the  aggregate  amount  of indebtedness secured by mortgages of
    40  such real property is increased or added to.
    41    (b) Where all or part of the indebtedness secured  by  a  mortgage  of
    42  real  property  within  any city in the state having a population of one
    43  million or more has been paid and new funds are advanced or  re-advanced
    44  which  are  to be secured by such mortgage, the contract or agreement by
    45  which such funds are advanced or re-advanced shall be deemed a  mortgage
    46  of  real  property for purposes of this article, and shall be taxable as
    47  such upon the amount of such new funds, except as otherwise provided  in
    48  section two hundred fifty-three-b of this [chapter] article.
    49    §  2. Paragraph (a) of subdivision 1 of section 255 of the tax law, as
    50  amended by chapter 241 of the laws  of  1989,  is  amended  to  read  as
    51  follows:
    52    (a)  (i)  If  subsequent  to  the recording of a mortgage on which all
    53  taxes, if any, accrued under this article have been paid, a supplemental
    54  instrument or mortgage is recorded for  the  purpose  of  correcting  or

        S. 6060--B                         51                         A. 9560--B

     1  perfecting  any  recorded  mortgage,  or  pursuant  to some provision or
     2  covenant therein, or an additional mortgage  is  recorded  imposing  the
     3  lien thereof upon property not originally covered by or not described in
     4  such recorded primary mortgage for the purpose of securing the principal
     5  indebtedness  which  is  or under any contingency may be secured by such
     6  recorded primary mortgage, such additional instrument or mortgage  shall
     7  not  be  subject  to  taxation  under  this article, except as otherwise
     8  provided in paragraph (b) of this  subdivision,  unless  it  creates  or
     9  secures a new or further indebtedness or obligation other than the prin-
    10  cipal  indebtedness  or obligation secured by or which under any contin-
    11  gency may be secured by the recorded primary mortgage, in which case,  a
    12  tax  is  imposed  as  provided by section two hundred and fifty-three of
    13  this [chapter] article on such new  or  further  indebtedness  or  obli-
    14  gation.
    15    (ii) Notwithstanding any provision to the contrary in subparagraph (i)
    16  of  this paragraph, the taxes imposed by or pursuant to the authority of
    17  this article shall apply to the recording of a  spreading  agreement  or
    18  additional  mortgage  which  imposes the lien thereof upon real property
    19  located in any city in the state having a population of one  million  or
    20  more  and  not  originally covered by or described in a recorded primary
    21  mortgage, unless the real property that becomes subject to the  lien  of
    22  such  spreading agreement or additional mortgage is owned by the mortga-
    23  gor of the real property subject to the lien of  such  recorded  primary
    24  mortgage.  If the commissioner of taxation and finance finds that trans-
    25  fers of one or both of such properties in connection with the  recording
    26  of  the  spreading agreement or additional mortgage have been undertaken
    27  for the purpose of avoiding or evading the application of this paragraph
    28  rather than solely for an independent  business  or  financial  purpose,
    29  such  commissioner  may  disregard  such transfers. For purposes of this
    30  subparagraph, there shall be a presumption that all transfers of one  or
    31  both of such properties to related parties within the twelve-month peri-
    32  od  preceding  the  recording  of such spreading agreement or additional
    33  mortgage have been undertaken for tax avoidance or evasion purposes  and
    34  such presumption may be rebutted only with clear and convincing evidence
    35  to  the  contrary.  For  this purpose, the term "related" shall have the
    36  same meaning as in paragraph (b)  of  subdivision  two  of  section  two
    37  hundred  fifty-three-a  of this article except that references to "fifty
    38  percent" in such paragraph (b) shall be read as "twenty-five percent".
    39    § 3. This act shall take effect immediately and shall apply  to  mort-
    40  gages  recorded on or after the ninetieth day after it shall have become
    41  a law.

    42                                   PART R

    43    Section 1. Subdivision 1 of section 171-a of the tax law,  as  amended
    44  by chapter 1 of the laws of 1999, is amended to read as follows:
    45    1.  All  taxes,  interest, penalties and fees collected or received by
    46  the commissioner or the commissioner's duly authorized agent under arti-
    47  cles nine (except section one hundred eighty-two-a thereof and except as
    48  otherwise  provided  in  section  two  hundred  five  thereof),  nine-A,
    49  twelve-A  (except  as  otherwise provided in section two hundred eighty-
    50  four-d thereof), thirteen, thirteen-A (except as otherwise  provided  in
    51  section  three  hundred  twelve  thereof),  eighteen,  nineteen,  twenty
    52  (except as otherwise provided in section four hundred eighty-two  there-
    53  of),  twenty-one,  twenty-two,  twenty-six,  twenty-six-B,  twenty-eight
    54  (except as otherwise provided in section eleven hundred  two  or  eleven

        S. 6060--B                         52                         A. 9560--B

     1  hundred  three thereof), twenty-eight-A, thirty-one (except as otherwise
     2  provided in section fourteen hundred  twenty-one  thereof),  thirty-two,
     3  thirty-three and thirty-three-A of this chapter shall be deposited daily
     4  in  one  account  with  such  responsible banks, banking houses or trust
     5  companies as may be designated by the comptroller, to the credit of  the
     6  comptroller.  Such  an account may be established in one or more of such
     7  depositories. Such deposits shall be kept separate and  apart  from  all
     8  other  money in the possession of the comptroller. The comptroller shall
     9  require adequate security from  all  such  depositories.  Of  the  total
    10  revenue  collected  or received under such articles of this chapter, the
    11  comptroller shall retain in the comptroller's hands such amount  as  the
    12  commissioner may determine to be necessary for refunds or reimbursements
    13  under such articles of this chapter and article ten thereof out of which
    14  amount  the comptroller shall pay any refunds or reimbursements to which
    15  taxpayers shall be entitled under the provisions  of  such  articles  of
    16  this  chapter  and  article  ten thereof. The commissioner and the comp-
    17  troller shall maintain a system of accounts showing the amount of reven-
    18  ue collected or received from each of the taxes imposed  by  such  arti-
    19  cles. The comptroller, after reserving the amount to pay such refunds or
    20  reimbursements,  shall,  on  or  before the tenth day of each month, pay
    21  into the state treasury to the credit of the general  fund  all  revenue
    22  deposited  under  this  section  during the preceding calendar month and
    23  remaining to the comptroller's credit on the last day of such  preceding
    24  month, (i) except that the comptroller shall pay to the state department
    25  of social services that amount of overpayments of tax imposed by article
    26  twenty-two  of  this  chapter  and  the interest on such amount which is
    27  certified to the comptroller by the commissioner as  the  amount  to  be
    28  credited against past-due support pursuant to subdivision six of section
    29  one  hundred  seventy-one-c  of  this  chapter, (ii) and except that the
    30  comptroller shall pay to the New York state  higher  education  services
    31  corporation  and the state university of New York or the city university
    32  of New York respectively that amount of overpayments of tax  imposed  by
    33  article twenty-two of this chapter and the interest on such amount which
    34  is  certified to the comptroller by the commissioner as the amount to be
    35  credited against the amount  of  defaults  in  repayment  of  guaranteed
    36  student loans and state university loans or city university loans pursu-
    37  ant  to subdivision five of section one hundred seventy-one-d and subdi-
    38  vision six of section one hundred seventy-one-e of this  chapter,  (iii)
    39  and  except further that, notwithstanding any law, the comptroller shall
    40  credit  to  the  revenue  arrearage   account,   pursuant   to   section
    41  ninety-one-a of the state finance law, that amount of overpayment of tax
    42  imposed by article nine, nine-A, twenty-two, thirty, thirty-A, thirty-B,
    43  thirty-two  or  thirty-three  of this chapter, and any interest thereon,
    44  which is certified to the comptroller by the commissioner as the  amount
    45  to  be  credited  against  a past-due legally enforceable debt owed to a
    46  state agency pursuant to paragraph (a) of subdivision six of section one
    47  hundred seventy-one-f of this article, provided, however, he shall cred-
    48  it to the special offset fiduciary account, pursuant to section  ninety-
    49  one-c  of the state finance law, any such amount creditable as a liabil-
    50  ity as set forth in paragraph (b) of  subdivision  six  of  section  one
    51  hundred  seventy-one-f of this article, (iv) and except further that the
    52  comptroller shall pay to the city of New York that amount of overpayment
    53  of tax imposed by article nine, nine-A,  twenty-two,  thirty,  thirty-A,
    54  thirty-B,  thirty-two,  or thirty-three of this chapter and any interest
    55  thereon that is certified to the comptroller by the commissioner as  the
    56  amount to be credited against city of New York tax warrant judgment debt

        S. 6060--B                         53                         A. 9560--B

     1  pursuant  to  section one hundred seventy-one-1 of this article, (v) and
     2  except further that the comptroller shall pay to a non-obligated  spouse
     3  that  amount of overpayment of tax imposed by article twenty-two of this
     4  chapter and the interest on such amount which has been credited pursuant
     5  to  section  one  hundred  seventy-one-c, one hundred seventy-one-d, one
     6  hundred seventy-one-e [or], one hundred  seventy-one-f  or  one  hundred
     7  seventy-one-l  of this article and which is certified to the comptroller
     8  by the commissioner as the amount due such non-obligated spouse pursuant
     9  to paragraph six of subsection (b) of section six hundred  fifty-one  of
    10  this  chapter; and (vi) the comptroller shall deduct a like amount which
    11  the comptroller shall pay into the treasury to the credit of the general
    12  fund from amounts subsequently  payable  to  the  department  of  social
    13  services,  the  state university of New York, the city university of New
    14  York, or the higher  education  services  corporation,  or  the  revenue
    15  arrearage  account  or  special  offset  fiduciary  account  pursuant to
    16  section ninety-one-a or ninety-one-c of the state finance  law,  as  the
    17  case  may be, whichever had been credited the amount originally withheld
    18  from such overpayment, and (vii)  with  respect  to  amounts  originally
    19  withheld  from such overpayment pursuant to section one hundred seventy-
    20  one-l of this article and paid to the city of New York, the  comptroller
    21  shall collect a like amount from the city of New York.
    22    §  2. Paragraph (ii) of subdivision 5 of section 171-c of the tax law,
    23  as amended by chapter 55 of the laws of 1992,  is  amended  to  read  as
    24  follows:
    25    (ii) Only the balance remaining, after such overpayment and the inter-
    26  est  thereon  has  been  credited  as described in paragraph (i) of this
    27  subdivision, shall be certified as an overpayment plus any  interest  to
    28  be  credited against past-due support, with the remainder to be refunded
    29  to the taxpayer if such remainder is not required to satisfy the  amount
    30  of  a default in repayment of a state university loan or city university
    31  loan pursuant to section  one  hundred  seventy-one-e  of  this  article
    32  and/or  the  amount  of  a past-due legally enforceable debt pursuant to
    33  section one hundred seventy-one-f of this article and/or a city  of  New
    34  York  tax warrant judgment debt pursuant to section one hundred seventy-
    35  one-l of this article and/or the amount of a default in repayment  of  a
    36  guaranteed student loan pursuant to section one hundred seventy-one-d of
    37  this  article. In cases where the taxpayer owes past-due support to more
    38  than one person or entity, and the  total  amount  of  past-due  support
    39  certified  to  the  commissioner  of  taxation  and finance by the state
    40  department of social services exceeds the balance remaining,  each  such
    41  person  or  entity shall receive a pro rata share of the balance remain-
    42  ing, such share to be based on the amount of past-due  support  owed  to
    43  such  person  or entity as certified to the commissioner of taxation and
    44  finance by such department pursuant to this section. The  state  depart-
    45  ment  of  social  services  shall  be  responsible  for  determining and
    46  distributing each person's  or  entity's  pro  rata  share  of  past-due
    47  support pursuant to regulations of such department.
    48    §  3.   Paragraph (i) of subdivision 4 of section 171-d of the tax law
    49  is amended by adding a new subparagraph (G) to read as follows:
    50    (G) the amount of a city of New York tax warrant judgment debt owed to
    51  the city of New York pursuant to section one  hundred  seventy-one-l  of
    52  this article.
    53    §  4.  Paragraph (b) of subdivision 5 of section 171-e of the tax law,
    54  as amended by chapter 55 of the laws of 1992,  is  amended  to  read  as
    55  follows:

        S. 6060--B                         54                         A. 9560--B

     1    (b)  Only the balance remaining, after such overpayment and the inter-
     2  est thereon has been credited as described  in  paragraph  (a)  of  this
     3  subdivision,  shall  be certified as an overpayment plus any interest to
     4  be credited against the amount of a default  in  repayment  of  a  state
     5  university  loan  or  city  university  loan,  with  the remainder to be
     6  refunded to the taxpayer if such remainder is not  required  to  satisfy
     7  the  amount  of  a past-due legally enforceable debt pursuant to section
     8  one hundred seventy-one-f of this article, and/or a city of New York tax
     9  warrant judgment debt pursuant to section one hundred  seventy-one-l  of
    10  this article and/or the amount of a default in repayment of a guaranteed
    11  student loan pursuant to section one hundred seventy-one-d of this arti-
    12  cle.
    13    §  5.  Paragraph (b) of subdivision 5 of section 171-f of the tax law,
    14  as added by chapter 55 of the laws  of  1992,  is  amended  to  read  as
    15  follows:
    16    (b) Only the balance remaining, after the overpayment and the interest
    17  thereon has been credited as described in paragraph (a) of this subdivi-
    18  sion,  shall  be certified to the comptroller as an overpayment plus any
    19  interest to be credited, in accordance with paragraph (g) of subdivision
    20  three of section one hundred seventy-one-l of this  article,  against  a
    21  past-due legally enforceable debt [which] that has been certified to the
    22  commissioner  of  taxation  and  finance for collection pursuant to this
    23  section, and/or a city of New York tax warrant judgment  debt  that  has
    24  been   certified  to  the  commissioner  of  taxation  and  finance  for
    25  collection pursuant to section one hundred seventy-one-l of  this  arti-
    26  cle, with the remainder to be refunded to the taxpayer if such remainder
    27  is  not  required  to  satisfy the amount of a default in repayment of a
    28  guaranteed student loan pursuant to section one hundred seventy-one-d of
    29  this article.  If a taxpayer owes past-due legally enforceable debt that
    30  has been certified to the  commissioner  of  taxation  and  finance  for
    31  collection  pursuant  to  this  section and city of New York tax warrant
    32  judgment debt that has been certified to the  commissioner  of  taxation
    33  and finance for collection pursuant to section one hundred seventy-one-l
    34  of  this  article,  then  the  overpayment and interest thereon shall be
    35  credited against the debts in the order in which the debts accrued.
    36    § 6. The tax law is amended by adding a new section 171-1 to  read  as
    37  follows:
    38    §  171-1.  Certain  overpayments credited against outstanding tax debt
    39  owed to the city of New York. (1) For the purposes of this section:
    40    (a) "taxpayer" shall mean a corporation, association,  company,  part-
    41  nership,  estate,  trust, liquidator, fiduciary or other entity or indi-
    42  vidual who or which is liable for any tax or other imposition imposed by
    43  or pursuant to article nine, nine-A, twenty-two, thirty, thirty-A, thir-
    44  ty-B, thirty-two, or thirty-three of this chapter, which  tax  or  other
    45  imposition  is administered by the commissioner of taxation and finance,
    46  or who or which is under a duty to perform an act under or  pursuant  to
    47  such  tax  or  imposition,  excluding a state agency, a municipal corpo-
    48  ration or a district corporation;
    49    (b) "overpayment" shall mean an overpayment which has  been  requested
    50  or  determined  to be refunded, a refund or a reimbursement, of a tax or
    51  other imposition imposed by or pursuant to article nine,  nine-A,  twen-
    52  ty-two,  thirty, thirty-A, thirty-B, thirty-two, or thirty-three of this
    53  chapter, which is administered  by  the  commissioner  of  taxation  and
    54  finance; and
    55    (c)  "city of New York tax warrant judgment debt," shall mean tax debt
    56  owed to the city of New York that is the subject of a tax warrant issued

        S. 6060--B                         55                         A. 9560--B

     1  by the city of New York department of finance and docketed  pursuant  to
     2  the provisions of title eleven of the administrative code of the city of
     3  New York and that remains outstanding.
     4    (2)  The commissioner of taxation and finance shall enter into a writ-
     5  ten agreement with the commissioner of finance of the city of New  York,
     6  which  shall set forth the procedures for crediting any overpayment by a
     7  taxpayer and the interest thereon against city of New York  tax  warrant
     8  judgment  debt  owed by such taxpayer of which the commissioner of taxa-
     9  tion and finance has been notified by the city of New York  commissioner
    10  of finance pursuant to the provisions of such agreement.
    11    (3) Such agreement shall include:
    12    (a)  the  procedure  under  which the city of New York commissioner of
    13  finance shall notify the commissioner of taxation and finance of liabil-
    14  ity for city of New York tax warrant judgment debt, specifying when  the
    15  commissioner  of  taxation and finance will be notified, the information
    16  to be contained in such notification and the form and format to be  used
    17  for such notification;
    18    (b)  the  fee, if not waived, for reimbursement of the commissioner of
    19  taxation and finance by the city of New York department of  finance  for
    20  the full cost of carrying out the procedures authorized by this section;
    21    (c)  the  minimum  period  of  delinquency of the city of New York tax
    22  warrant judgment debt, and the minimum amount of the past  due  city  of
    23  New  York  tax  warrant  judgment debt against which the commissioner of
    24  taxation and finance shall, pursuant to this section, credit an overpay-
    25  ment;
    26    (d) the procedure for transferring the overpayments to the city of New
    27  York department of finance so the overpayments can be applied to  credit
    28  the past due city of New York tax warrant judgment debt;
    29    (e)  the procedure for reimbursement of the comptroller by the city of
    30  New York department of finance for any overpayment and interest  thereon
    31  which  has  been  credited against city of New York tax warrant judgment
    32  debt owed by a taxpayer, but which was paid by the taxpayer prior to the
    33  overpayment being applied;
    34    (f) the procedure for reimbursement of the comptroller by the city  of
    35  New  York department of finance for any overpayment and interest thereon
    36  which has been credited against city of New York  tax  warrant  judgment
    37  debt  owed  by  a  taxpayer  filing  a  joint return, but which has been
    38  refunded by the comptroller, pursuant to paragraph six of subsection (b)
    39  of section six hundred fifty-one of this chapter, to a spouse not liable
    40  for the city of New York tax warrant judgment debt owed by such  taxpay-
    41  er;
    42    (g) a provision to the effect that if a taxpayer owes past-due legally
    43  enforceable debt that has been certified to the commissioner of taxation
    44  and finance for collection pursuant to section one hundred seventy-one-f
    45  of  this article and city of New York tax warrant judgment debt that has
    46  been  certified  to  the  commissioner  of  taxation  and  finance   for
    47  collection  pursuant  to this section, then the overpayment and interest
    48  thereon shall be credited against the debts in the order  in  which  the
    49  debts  accrued.  The city of New York tax warrant judgment debt shall be
    50  deemed for purposes of this section to have accrued at the time of dock-
    51  eting of the tax warrant; and
    52    (h) such other matters as the parties to  such  agreement  shall  deem
    53  necessary  to  carry  out  the  provisions  of  this  section, including
    54  provisions relating to the notice to be given to the taxpayer.
    55    (4)(a) In calculating the amount of an overpayment and interest there-
    56  on that shall be credited against city of New York tax warrant  judgment

        S. 6060--B                         56                         A. 9560--B

     1  debt  owed  by a taxpayer that has been certified to the commissioner of
     2  taxation and finance  for  collection  pursuant  to  this  section,  the
     3  commissioner  of taxation and finance shall first credit the overpayment
     4  and interest thereon against any:
     5    (i)  liability of such taxpayer in respect of any tax or other imposi-
     6  tion imposed by this chapter and administered  by  the  commissioner  of
     7  taxation and finance;
     8    (ii)  liability  of  such taxpayer for any tax imposed pursuant to the
     9  authority of this chapter or any other law if such tax  is  administered
    10  by the commissioner of taxation and finance;
    11    (iii)  estimated  tax  for the succeeding taxable year if the taxpayer
    12  claims such overpayment or a portion thereof as a credit  against  esti-
    13  mated tax for such succeeding taxable year pursuant to subsection (e) of
    14  section six hundred eighty-six or subsection (b) of section one thousand
    15  eighty-six  of this chapter or subdivision (e) of section 11-1786 of the
    16  administrative code of the city of New  York  or  for  any  tax  imposed
    17  pursuant  to  the authority of this chapter or any other law if such tax
    18  is administered by the commissioner of taxation and finance;
    19    (iv) past-due support owed by the taxpayer  pursuant  to  section  one
    20  hundred seventy-one-c of this article;
    21    (v)  unreimbursed medical assistance paid on behalf of a child payable
    22  pursuant to section three hundred sixty-seven-a of the  social  services
    23  law; and
    24    (vi)  the  amount  of  a default in repayment of a state university or
    25  city university loan pursuant to section one  hundred  seventy-one-e  of
    26  this article.
    27    (b) Only the balance remaining, after the overpayment and the interest
    28  thereon has been credited as described in paragraph (a) of this subdivi-
    29  sion,  shall  be certified to the comptroller as an overpayment plus any
    30  interest to be credited, in accordance with paragraph (g) of subdivision
    31  three of this section, against city of New  York  tax  warrant  judgment
    32  debt that has been certified to the commissioner of taxation and finance
    33  for  collection  pursuant  to  this  section,  and/or  past-due  legally
    34  enforceable debt that has been certified to the commissioner of taxation
    35  and finance for collection pursuant to section one hundred seventy-one-f
    36  of this article, with the remainder to be refunded to  the  taxpayer  if
    37  such  remainder  is  not  required to satisfy the amount of a default in
    38  repayment of a guaranteed student loan pursuant to section  one  hundred
    39  seventy-one-d  of  this article. If a taxpayer owes city of New York tax
    40  warrant judgment debt that has been certified  to  the  commissioner  of
    41  taxation  and  finance for collection pursuant to this section and past-
    42  due legally enforceable debt that has been certified to the commissioner
    43  of taxation and finance for collection pursuant to section  one  hundred
    44  seventy-one-f of this article, then the overpayment and interest thereon
    45  shall  be  credited  against  the  debts in the order in which the debts
    46  accrued.
    47    (5) The commissioner of taxation and  finance  shall  certify  to  the
    48  comptroller  the  amount of each overpayment and the interest thereon to
    49  be credited against city of New York tax warrant judgment debt, and  the
    50  balance, if any, of each such overpayment and interest to be refunded to
    51  the taxpayer.
    52    (6) The commissioner of taxation and finance shall notify each taxpay-
    53  er  who makes an overpayment, in writing, of the amount of such overpay-
    54  ment and the interest thereon certified to the comptroller as the amount
    55  to be credited against city of New York tax warrant judgment debt.  Such
    56  notice shall include notification to any other person who may have filed

        S. 6060--B                         57                         A. 9560--B

     1  a joint return with the taxpayer of the steps such other person may take
     2  in order to secure his or her proper share of the refund.
     3    (7) From the time the commissioner of taxation and finance is notified
     4  by  the city of New York department of finance of a taxpayer's liability
     5  for city of New York tax  warrant  judgment  debt  under  the  agreement
     6  provided  for  in this section, the commissioner of taxation and finance
     7  shall be relieved from all liability  to  such  taxpayer,  its  assigns,
     8  successors,  heirs  or  representatives for the amount of an overpayment
     9  and interest thereon certified to the comptroller to be credited against
    10  city of New York tax warrant judgment debt and the taxpayer  shall  have
    11  no  right to commence a court action or proceeding or to any other legal
    12  recourse against the commissioner of taxation  and  finance  to  recover
    13  such  overpayment or interest thereon certified to the comptroller to be
    14  credited against city of New York tax warrant judgment  debt.  Provided,
    15  however,  nothing  herein  shall  be construed to prohibit such taxpayer
    16  from proceeding against the city of New York department  of  finance  to
    17  recover  that  part of such overpayment or interest thereon so certified
    18  to the comptroller to be credited against city of New York  tax  warrant
    19  judgment  debt  that  is greater than the amount of city of New York tax
    20  warrant judgment debt owed by such taxpayer on the date of such  certif-
    21  ication.
    22    (8)  The commissioner of taxation and finance and the city of New York
    23  department of finance may promulgate such rules and regulations as  they
    24  deem necessary to carry out the provisions of this section.
    25    §  7. Subdivision 1 of section 202 of the tax law, as amended by chap-
    26  ter 55 of the laws of 1992, is amended to read as follows:
    27    1.  Except in accordance with proper judicial order  or  as  otherwise
    28  provided  by  law,  it  shall  be unlawful for any tax commissioner, any
    29  officer or employee of the department of taxation and  finance,  or  any
    30  person  who,  pursuant  to  this  section,  is  permitted to inspect any
    31  report, or to whom any information contained in any report is furnished,
    32  or any person engaged or retained by such department on  an  independent
    33  contract basis, or any person who in any manner may acquire knowledge of
    34  the  contents  of a report filed pursuant to this article, to divulge or
    35  make known in any manner the amount of income  or  any  particulars  set
    36  forth  or  disclosed  in  any  report  under  this article. The officers
    37  charged with the custody of  such  reports  shall  not  be  required  to
    38  produce  any  of  them  or evidence of anything contained in them in any
    39  action or proceeding in any court, except on behalf of the state or  the
    40  commissioner  of  taxation  and finance in an action or proceeding under
    41  the provisions of this chapter or in  any  other  action  or  proceeding
    42  involving  the  collection  of a tax due under this chapter to which the
    43  state or the commissioner of taxation and finance is a party or a claim-
    44  ant, or on behalf of any party to any action  or  proceeding  under  the
    45  provisions  of  this article when the reports or facts shown thereby are
    46  directly involved in such action or proceeding, in any of  which  events
    47  the  court  may require the production of, and may admit in evidence, so
    48  much of said reports or of the facts shown thereby, as are pertinent  to
    49  the  action  or proceeding and no more. The commissioner of taxation and
    50  finance may, nevertheless, publish a copy or a summary of  any  determi-
    51  nation  or  decision  rendered  after the formal hearing provided for in
    52  [sections one hundred ninety-eight or] section one thousand  eighty-nine
    53  of  this  chapter.  Nothing  herein  shall  be construed to prohibit the
    54  delivery to a corporation or its duly  authorized  representative  of  a
    55  copy  of  any  report  filed  by  it, nor to prohibit the publication of
    56  statistics so classified as to prevent the identification of  particular

        S. 6060--B                         58                         A. 9560--B

     1  reports  and  the  items thereof, or the publication of delinquent lists
     2  showing the names of taxpayers who have failed to pay their taxes at the
     3  time and in the manner provided  by  section  one  hundred  ninety-seven
     4  together  with  any  relevant  information  which  in the opinion of the
     5  commissioner of taxation and finance may assist  in  the  collection  of
     6  such  delinquent  taxes;  or  the  inspection by the attorney-general or
     7  other legal representatives of the state of the  report  of  any  corpo-
     8  ration  which  shall  bring  action to set aside or review the tax based
     9  thereon, or against whom an action or proceeding under this chapter  has
    10  been  recommended  by  the  commissioner  of taxation and finance or the
    11  attorney-general or has  been  instituted;  or  the  inspection  of  the
    12  reports of any corporation by the comptroller or duly designated officer
    13  or  employee  of the state department of audit and control, for purposes
    14  of the audit of a refund of any tax paid by such corporation under  this
    15  article;  or  the  disclosing to a state agency, pursuant to section one
    16  [hundred-seventy-one-f] hundred seventy-one-f of this  chapter,  of  the
    17  name  and  taxpayer identification number of any taxpayer whose overpay-
    18  ment is certified to the comptroller to be credited against  a  past-due
    19  legally enforceable debt owed to such state agency and the amount of the
    20  overpayment  and  interest  thereon  certified  to the comptroller to be
    21  credited against a past-due legally enforceable debt; or the  disclosing
    22  to  the  commissioner  of  finance  of the city of New York, pursuant to
    23  section one hundred seventy-one-l of  this  chapter,  of  the  name  and
    24  taxpayer  identification  number  of  any  taxpayer whose overpayment is
    25  certified to the comptroller to be credited against a city of  New  York
    26  tax  warrant  judgment debt.  Provided, further, nothing herein shall be
    27  construed to prohibit  the  disclosure  of  the  names  of  corporations
    28  subject  to  tax  under section one hundred eighty-two[,] or one hundred
    29  eighty-two-a [or one hundred eighty-two-b] of this article,  or  to  any
    30  two or all of such taxes, for purposes of assisting corporations subject
    31  to  such  tax or taxes in determining whether a gross receipt or a gross
    32  receipt from sales of petroleum is an excludible gross receipt or exclu-
    33  dible gross receipt from sales of petroleum because it is derived from a
    34  sale for resale.
    35    § 8. Subdivision 11 of section 211 of the tax law, as added by chapter
    36  55 of the laws of 1992, is amended to read as follows:
    37    11. Notwithstanding  the  provisions  of  subdivision  eight  of  this
    38  section,  the commissioner may disclose to the head of any state agency,
    39  pursuant to section one hundred seventy-one-f of this chapter, the  name
    40  and  taxpayer identification number of any taxpayer whose overpayment is
    41  certified to the comptroller to be credited against a  past-due  legally
    42  enforceable  debt  owed to such agency and the amount of the overpayment
    43  and interest thereon certified to the comptroller to be credited against
    44  a past-due legally enforceable debt, and the commissioner  may  disclose
    45  to  the  commissioner  of  finance  of the city of New York, pursuant to
    46  section one hundred seventy-one-l of this chapter, the name and taxpayer
    47  identification number of any taxpayer whose overpayment is certified  to
    48  the  comptroller  to  be credited against a city of New York tax warrant
    49  judgment debt and the amount of the  overpayment  and  interest  thereon
    50  certified  to  the comptroller to be credited against a city of New York
    51  tax warrant judgment debt.
    52    § 9. Paragraph 6 of subsection (b) of section 651 of the tax  law,  as
    53  amended  by  chapter  55  of  the  laws  of  1992, is amended to read as
    54  follows:
    55    (6) If a joint return has been made under this subsection for a  taxa-
    56  ble  year and only one spouse is liable for past-due support, or a past-

        S. 6060--B                         59                         A. 9560--B

     1  due legally enforceable debt, or a city of New York tax warrant judgment
     2  debt, or an amount of a default in repayment of  a  guaranteed  student,
     3  state  university  or  city university loan of which the commissioner of
     4  taxation  and  finance has been notified pursuant to section one hundred
     5  seventy-one-c, one hundred  seventy-one-d,  one  hundred  seventy-one-e,
     6  [or]  one  hundred  seventy-one-f,  or one hundred seventy-one-l of this
     7  chapter, as the case may be, then an overpayment  and  interest  thereon
     8  shall  be  credited against such past-due support, or a past-due legally
     9  enforceable debt, or a city of New York tax warrant  judgment  debt,  or
    10  such  amount  of  a  default in repayment of a guaranteed student, state
    11  university or city university loan, unless the  spouse  not  liable  for
    12  such past-due support, or a past-due legally enforceable debt, or a city
    13  of  New  York  tax warrant judgment debt, or such amount of a default in
    14  repayment of a guaranteed student, state university or  city  university
    15  loan  demands  on  a  declaration made in accordance with regulations or
    16  instructions prescribed by the commissioner  of  taxation  and  finance,
    17  that  the  portion  of the overpayment and interest attributable to such
    18  spouse not be credited against  the  past-due  support,  or  a  past-due
    19  legally  enforceable  debt,  or  a city of New York tax warrant judgment
    20  debt, or amount of a default in repayment of a guaranteed student, state
    21  university or city university loan owed by the other spouse. Such demand
    22  may be filed (A) with the return of the spouse not liable  for  past-due
    23  support,  or  a past-due legally enforceable debt, or a city of New York
    24  tax warrant judgment debt, or  default  in  repayment  of  a  guaranteed
    25  student,  state  university,  or  city  university  loan or (B) with the
    26  commissioner of taxation and finance within ten days after  notification
    27  is  provided  such  spouse  by  the commissioner of taxation and finance
    28  pursuant to subdivision seven  of  section  one  hundred  seventy-one-c,
    29  subdivision  six of section one hundred seventy-one-d, subdivision seven
    30  of section one hundred seventy-one-e [or], subdivision seven of  section
    31  one  hundred  seventy-one-f  or  subdivision  six of section one hundred
    32  seventy-one-l of this chapter. Upon  such  demand  the  commissioner  of
    33  taxation  and  finance  shall  determine  the  amount of the overpayment
    34  attributable to each spouse in accordance with regulations prescribed by
    35  the commissioner of taxation and finance and credit only that portion of
    36  the overpayment and interest thereon attributable to the  spouse  liable
    37  for  past-due support, or a past-due legally enforceable debt, or a city
    38  of New York tax warrant judgment debt, or amount of a default in  repay-
    39  ment  of  a guaranteed student, state university or city university loan
    40  against such past-due support, or a past-due legally  enforceable  debt,
    41  or  a  city  of  New York tax warrant judgment debt, or such amount of a
    42  default in repayment of a guaranteed student, state university  or  city
    43  university loan.
    44    §  10.  Subsection  (a)  of  section 686 of the tax law, as amended by
    45  chapter 55 of the laws of 1992, is amended to read as follows:
    46    (a) General.-- The commissioner of taxation and  finance,  within  the
    47  applicable  period  of  limitations, may credit an overpayment of income
    48  tax and interest on such overpayment against any liability in respect of
    49  any tax imposed by this chapter on the person who made the  overpayment,
    50  against  any  liability  in  respect  of any tax imposed pursuant to the
    51  authority of this chapter or any other law on such person if such tax is
    52  administered by  the  commissioner  of  taxation  and  finance  and,  as
    53  provided   in   sections   one   hundred   seventy-one-c,   one  hundred
    54  seventy-one-d,   one   hundred   seventy-one-e   [and],   one    hundred
    55  seventy-one-f  and  one  hundred  seventy-one-l of this chapter, against
    56  past-due support, a past-due legally enforceable debt,  a  city  of  New

        S. 6060--B                         60                         A. 9560--B

     1  York  tax  warrant judgment debt, and against the amount of a default in
     2  repayment of a guaranteed student, state university or  city  university
     3  loan.  The  balance  shall  be  refunded  by  the comptroller out of the
     4  proceeds of the tax retained by him for such general purpose. Any refund
     5  under  this  section  shall be made only upon the filing of a return and
     6  upon a certificate of the commissioner of taxation and finance  approved
     7  by  the  comptroller.  The  comptroller, as a condition precedent to the
     8  approval of such a certificate, may examine into the facts as  disclosed
     9  by  the return of the person who made the overpayment and other informa-
    10  tion and data available in the files of the commissioner of taxation and
    11  finance.
    12    § 11. Subsection (f) of section 688 of the  tax  law,  as  amended  by
    13  chapter 55 of the laws of 1992, is amended to read as follows:
    14    (f)  Overpayment credited against past-due support, or against a past-
    15  due legally enforceable debt, or a city of New York tax warrant judgment
    16  debt, or defaulted guaranteed student, state university or city  univer-
    17  sity  loans.--If  interest  is  payable pursuant to this section on that
    18  portion of an overpayment of tax imposed by this article which is certi-
    19  fied by the commissioner of taxation and finance to the  comptroller  as
    20  the  amount  to be credited against past-due support, or against a past-
    21  due legally enforceable debt, or a city of New York tax warrant judgment
    22  debt, or the amount of a default in repayment of a  guaranteed  student,
    23  state  university  or city university loan, as the case may be, pursuant
    24  to the provisions of section  one  hundred  seventy-one-c,  section  one
    25  hundred  seventy-one-d,  section one hundred seventy-one-e, [or] section
    26  one hundred seventy-one-f or section one hundred seventy-one-l  of  this
    27  chapter,  such portion of such an overpayment shall cease to bear inter-
    28  est on the date of such certification.
    29    § 12. Paragraph 3 of subsection (e) of section 697 of the tax law,  as
    30  amended  by  section  3  of part M of chapter 63 of the laws of 2000, is
    31  amended to read as follows:
    32    (3) Nothing herein shall be construed to prohibit the department,  its
    33  officers  or  employees  from  furnishing  information  to the office of
    34  temporary and disability assistance relating to the payment of the cred-
    35  it for certain household and dependent care services necessary for gain-
    36  ful employment under subsection (c) of section six hundred six  of  this
    37  article and the earned income credit under subsection (d) of section six
    38  hundred  six  of this article, only to the extent necessary to calculate
    39  qualified state expenditures under paragraph seven of subdivision (a) of
    40  section four hundred nine of the federal social security act or to docu-
    41  ment the proper expenditure of federal temporary  assistance  for  needy
    42  families  funds under section four hundred three of such act. The office
    43  of temporary and disability assistance may redisclose  such  information
    44  to the United States department of health and human services only to the
    45  extent  necessary  to  calculate such qualified state expenditures or to
    46  document the proper expenditure of such federal temporary assistance for
    47  needy families funds. Nothing herein shall be construed to prohibit  the
    48  delivery  by  the  commissioner  to  a commissioner of jurors, appointed
    49  pursuant to section five hundred four of the judiciary law, or, in coun-
    50  ties within cities having a population of one million or  more,  to  the
    51  county  clerk  of  such county, of a mailing list of individuals to whom
    52  income tax forms are mailed by the commissioner for the sole purpose  of
    53  compiling a list of prospective jurors as provided in article sixteen of
    54  the  judiciary  law. Provided, however, such delivery shall only be made
    55  pursuant to an order of the chief administrator of the courts, appointed
    56  pursuant to section two hundred ten of the judiciary law. No such  order

        S. 6060--B                         61                         A. 9560--B

     1  may  be  issued  unless  such chief administrator is satisfied that such
     2  mailing list is needed to compile a proper list  of  prospective  jurors
     3  for  the  county for which such order is sought and that, in view of the
     4  responsibilities imposed by the various laws of the state on the depart-
     5  ment, it is reasonable to require the commissioner to furnish such list.
     6  Such  order  shall  provide  that  such  list shall be used for the sole
     7  purpose of compiling a list of prospective jurors and that such  commis-
     8  sioner  of  jurors, or such county clerk, shall take all necessary steps
     9  to insure that the list is kept confidential and that there is no  unau-
    10  thorized  use  or  disclosure  of such list. Furthermore, nothing herein
    11  shall be construed to prohibit the delivery to a taxpayer or his or  her
    12  duly  authorized  representative  of  a  certified copy of any return or
    13  report filed in connection with his or her tax or to prohibit the publi-
    14  cation of statistics so classified as to prevent the  identification  of
    15  particular  reports  or returns and the items thereof, or the inspection
    16  by the attorney general or other legal representatives of the  state  of
    17  the  report  or  return  of  any taxpayer or of any employer filed under
    18  section one hundred seventy-one-h of this chapter, where  such  taxpayer
    19  or  employer  shall  bring  action  to set aside or review the tax based
    20  thereon, or against whom an action or proceeding under this  chapter  or
    21  under this chapter and article eighteen of the labor law has been recom-
    22  mended  by  the  commissioner, the commissioner of labor with respect to
    23  unemployment insurance matters, or the  attorney  general  or  has  been
    24  instituted,  or  the inspection of the reports or returns required under
    25  this article by the comptroller or duly designated officer  or  employee
    26  of  the state department of audit and control, for purposes of the audit
    27  of a refund of any tax paid by a tax payer under this  article,  or  the
    28  furnishing  to  the  state department of labor of unemployment insurance
    29  information obtained or derived  from  quarterly  combined  withholding,
    30  wage  reporting  and unemployment insurance returns required to be filed
    31  by employers pursuant to paragraph four of subsection (a) of section six
    32  hundred seventy-four of this article, for purposes of administration  of
    33  such department's employment security programs, evaluation of employment
    34  and  training  programs  for  which  such department has administrative,
    35  reporting, monitoring or evaluating responsibilities,  and  redisclosure
    36  of  such  information when necessary to enable such department to comply
    37  with the provisions of section five hundred thirty-seven  of  the  labor
    38  law  or  any other applicable law, or the furnishing to the state office
    39  of temporary  and  disability  assistance  of  information  obtained  or
    40  derived  from New York state personal income tax returns as described in
    41  paragraph (b) of subdivision two of section one hundred seventy-one-g of
    42  this chapter for the purpose of reviewing support orders enforced pursu-
    43  ant to title six-A of article three of the social services law to aid in
    44  the determination of whether such orders  should  be  adjusted,  or  the
    45  furnishing  of  information  obtained  from  the  reports required to be
    46  submitted by employers  regarding  newly  hired  or  re-hired  employees
    47  pursuant  to  section  one  hundred seventy-one-h of this chapter to the
    48  state office of temporary and disability assistance, the  state  depart-
    49  ment  of  health, the state department of labor and the workers' compen-
    50  sation board  for  purposes  of  administration  of  the  child  support
    51  enforcement program, verification of individuals' eligibility for one or
    52  more  of  the  programs  specified  in  subsection (b) of section eleven
    53  hundred thirty-seven of the federal social security act  and  for  other
    54  public  assistance  programs authorized by state law, and administration
    55  of the state's employment security and workers'  compensation  programs,
    56  and  to  the  national  directory  of  new hires established pursuant to

        S. 6060--B                         62                         A. 9560--B

     1  section four hundred fifty-three-A of the federal  social  security  act
     2  for  the  purposes  specified  in such section, or the furnishing to the
     3  state office of temporary and disability assistance of the amount of  an
     4  overpayment  of  income  tax and interest thereon certified to the comp-
     5  troller to be credited against past-due support pursuant to section  one
     6  hundred seventy-one-c of this chapter and of the name and social securi-
     7  ty  number  of the taxpayer who made such overpayment, or the disclosing
     8  to the commissioner of finance of the city  of  New  York,  pursuant  to
     9  section  one  hundred seventy-one-l of this chapter, of the amount of an
    10  overpayment and interest thereon certified  to  the  comptroller  to  be
    11  credited against a city of New York tax warrant judgment debt and of the
    12  name  and  social security number of the taxpayer who made such overpay-
    13  ment, or the furnishing to the New York state higher education  services
    14  corporation  of  the amount of an overpayment of income tax and interest
    15  thereon certified to the comptroller to be credited against  the  amount
    16  of  a  default  in  repayment  of  a guaranteed student loan pursuant to
    17  section one hundred seventy-one-d of this chapter and of  the  name  and
    18  social security number of the taxpayer who made such overpayment, or the
    19  furnishing to the state department of health of the information required
    20  by  subdivision two-a of section two thousand five hundred eleven of the
    21  public health law, or the furnishing to the state university of New York
    22  or the city university of New York respectively or the attorney  general
    23  on  behalf of such state or city university the amount of an overpayment
    24  of income tax and interest thereon certified to the  comptroller  to  be
    25  credited against the amount of a default in repayment of a state univer-
    26  sity  loan pursuant to section one hundred seventy-one-e of this chapter
    27  and of the name and social security number of the taxpayer who made such
    28  overpayment, or the disclosing to a state agency,  pursuant  to  section
    29  one  hundred seventy-one-f of this chapter, of the amount of an overpay-
    30  ment and interest thereon certified to the comptroller  to  be  credited
    31  against  a  past-due legally enforceable debt owed to such agency and of
    32  the name and social security number of the taxpayer who made such  over-
    33  payment, or the furnishing of employee and employer information obtained
    34  through  the  wage  reporting  system,  pursuant  to section one hundred
    35  seventy-one-a of this chapter, to the  state  office  of  temporary  and
    36  disability  assistance  for the purpose of verifying eligibility for and
    37  entitlement to amounts of benefits under  the  social  services  law  or
    38  similar  law  of  another jurisdiction, locating absent parents or other
    39  persons legally responsible for the support of applicants for or recipi-
    40  ents of public assistance and care under the  social  services  law  and
    41  persons  legally  responsible for the support of a recipient of services
    42  under section one hundred eleven-g of the social services  law  and,  in
    43  appropriate  cases,  establishing  support  obligations  pursuant to the
    44  social services law and the family court act or similar provision of law
    45  of another jurisdiction for the purpose  of  evaluating  the  effect  on
    46  earnings  of  participation  in  employment,  training or other programs
    47  designed to promote self-sufficiency authorized pursuant to  the  social
    48  services  law by current recipients of public assistance and care and by
    49  former applicants and recipients of public assistance and care,  (except
    50  that  with  regard  to former recipients, information which relates to a
    51  particular former recipient shall be provided  with  client  identifying
    52  data  deleted),  and to the state department of labor, or other individ-
    53  uals designated by the commissioner of labor, for  the  purpose  of  the
    54  administration of such department's employment security programs, public
    55  assistance  work  programs,  or for other purposes deemed appropriate by
    56  the commissioner of labor consistent with the provisions  of  the  labor

        S. 6060--B                         63                         A. 9560--B

     1  law,  as well as for the evaluation of the effect on earnings of partic-
     2  ipation in training programs with respect to  which  the  department  of
     3  labor has reporting, monitoring, administration, or evaluation responsi-
     4  bilities,  or  the furnishing of information, which is obtained from the
     5  wage reporting system operated pursuant to section one hundred  seventy-
     6  one-a  of  this chapter, to the state office of temporary and disability
     7  assistance so that it may furnish such information to public agencies of
     8  other jurisdictions with which the state office of temporary  and  disa-
     9  bility  assistance  has an agreement pursuant to paragraph (h) or (i) of
    10  subdivision three of section twenty of the social services law,  and  to
    11  the  state office of temporary and disability assistance for the purpose
    12  of fulfilling obligations and responsibilities otherwise incumbent  upon
    13  the  state department of labor, under section one hundred twenty-four of
    14  the federal family support act  of  nineteen  hundred  eighty-eight,  by
    15  giving  the  federal  parent  locator service, maintained by the federal
    16  department of health and human services, prompt access to such  informa-
    17  tion  as  required  by such act, or to the state department of health to
    18  establish eligibility under the child health insurance plan pursuant  to
    19  subdivision  two-a  of  section  two thousand five hundred eleven of the
    20  public health law, or  to  the  office  of  vocational  and  educational
    21  services  for individuals with disabilities of the education department,
    22  the commission for the blind and  visually  handicapped  and  any  other
    23  state  vocational  rehabilitation  agency,  for  purposes  of  obtaining
    24  reimbursement  from  the  federal  social  security  administration  for
    25  expenditures  made  by  such  office,  commission or agency on behalf of
    26  disabled  individuals  who  have  achieved  economic   self-sufficiency.
    27  Provided,  however, that with respect to employee information the office
    28  of temporary and disability assistance shall only be furnished with  the
    29  names,  social security account numbers and gross wages of those employ-
    30  ees who are (A) applicants for  or  recipients  of  benefits  under  the
    31  social services law, or similar provision of law of another jurisdiction
    32  (pursuant  to  an agreement under subdivision three of section twenty of
    33  the social services law) or, (B) absent parents or other persons legally
    34  responsible for the support of applicants for or  recipients  of  public
    35  assistance  and  care under the social services law or similar provision
    36  of law of another jurisdiction (pursuant to an agreement under  subdivi-
    37  sion three of section twenty of the social services law), or (C) persons
    38  legally  responsible  for  the  support of a recipient of services under
    39  section one hundred eleven-g of  the  social  services  law  or  similar
    40  provision of law of another jurisdiction (pursuant to an agreement under
    41  subdivision  three of section twenty of the social services law), or (D)
    42  employees  about  whom  wage  reporting  system  information  is   being
    43  furnished  to  public  agencies  of  other jurisdictions, with which the
    44  state office of temporary and disability  assistance  has  an  agreement
    45  pursuant  to paragraph (h) or (i) of subdivision three of section twenty
    46  of the social services law, or (E) employees about whom  wage  reporting
    47  system  information  is  being  furnished  to the federal parent locator
    48  service, maintained by  the  federal  department  of  health  and  human
    49  services,  for the purpose of enabling the state office of temporary and
    50  disability assistance to fulfill obligations and responsibilities other-
    51  wise incumbent upon the state department of  labor,  under  section  one
    52  hundred  twenty-four  of  the  federal  family  support  act of nineteen
    53  hundred eighty-eight, and, only if, the office of temporary and disabil-
    54  ity assistance certifies to the commissioner that such persons are  such
    55  applicants,  recipients,  absent  parents or persons legally responsible
    56  for support or persons about whom information has been  requested  by  a

        S. 6060--B                         64                         A. 9560--B

     1  public  agency  of another jurisdiction or by the federal parent locator
     2  service and further certifies that in the case of information  requested
     3  under  agreements  with  other  jurisdictions  entered  into pursuant to
     4  subdivision  three  of  section  twenty of the social services law, that
     5  such request is in compliance with any applicable federal law. Provided,
     6  further, that where the office of temporary  and  disability  assistance
     7  requests  employee information for the purpose of evaluating the effects
     8  on earnings of participation in employment, training or  other  programs
     9  designed  to  promote self-sufficiency authorized pursuant to the social
    10  services law, the office of temporary and  disability  assistance  shall
    11  only  be  furnished with the quarterly gross wages (excluding any refer-
    12  ence to the name, social security number or any other information  which
    13  could  be  used  to  identify any employee or the name or identification
    14  number of any employer) paid to employees who are former applicants  for
    15  or  recipients of public assistance and care and who are so certified to
    16  the commissioner by the commissioner of  the  office  of  temporary  and
    17  disability  assistance. Provided, further, that with respect to employee
    18  information, the department of health shall only be furnished  with  the
    19  information  required pursuant to subdivision two-a of section two thou-
    20  sand five hundred eleven of the public health law with respect to  those
    21  children  whose  eligibility under the child health insurance plan is to
    22  be determined pursuant to such subdivision two-a  and  with  respect  to
    23  those  members  of  any such child's household whose income affects such
    24  child's eligibility and who are so certified to the commissioner  or  by
    25  the  department of health. Provided, further, that wage reporting infor-
    26  mation shall be furnished to the office of  vocational  and  educational
    27  services  for individuals with disabilities of the education department,
    28  the commission for the blind and  visually  handicapped  and  any  other
    29  state  vocational  rehabilitation agency only if such office, commission
    30  or agency, as applicable, certifies to the commissioner that such infor-
    31  mation is necessary to obtain  reimbursement  from  the  federal  social
    32  security  administration  for  expenditures  made  on behalf of disabled
    33  individuals who have achieved self-sufficiency.    Reports  and  returns
    34  shall be preserved for three years and thereafter until the commissioner
    35  orders them to be destroyed.
    36    §  13.  Subsection  (a)  of section 1086 of the tax law, as amended by
    37  chapter 55 of the laws of 1992, is amended to read as follows:
    38    (a) General.--The commissioner of taxation  and  finance,  within  the
    39  applicable  period  of limitations, may credit an overpayment of tax and
    40  interest on such overpayment against any liability in respect of any tax
    41  imposed by the tax law on the taxpayer  who  made  the  overpayment,  or
    42  against  any  liability for a past-due legally enforceable debt of which
    43  he is notified pursuant to section one  hundred  seventy-one-f  of  this
    44  chapter,  or  against  any city of New York tax warrant judgment debt of
    45  which he is notified pursuant to section one  hundred  seventy-one-l  of
    46  this  chapter,  and the balance shall be refunded by the comptroller out
    47  of the proceeds of the tax retained by him  for  such  general  purpose.
    48  Provided,  however, in the case of an overpayment claimed on a return or
    49  report, such refund shall be made only if application therefor  is  made
    50  on such return or report. In the absence of such application, the amount
    51  of  such  overpayment with respect to any taxable year shall be credited
    52  against, and considered as, a payment of tax liability with  respect  to
    53  such  tax  for the succeeding taxable year and shall be credited against
    54  the estimated tax, if any, for such year (whether or not  claimed  as  a
    55  credit  in  the declaration of estimated tax for such succeeding taxable
    56  year). The commissioner shall notify the taxpayer that such  overpayment

        S. 6060--B                         65                         A. 9560--B

     1  has been so credited, and the taxpayer may, prior to the due date (with-
     2  out  regard  to  extensions) of the taxpayer's return or report for such
     3  succeeding taxable year, claim a refund of such overpayment. Any  refund
     4  under  this  section  shall be made only upon the filing of a return and
     5  upon a certificate of the commissioner approved by the comptroller.  The
     6  comptroller,  as a condition precedent to the approval of such a certif-
     7  icate, may examine into the facts as disclosed  by  the  return  of  the
     8  taxpayer  who made the overpayment and other information and data avail-
     9  able in the files of the commissioner.
    10    § 14. Subsection (f) of section 1088 of the tax law, as added by chap-
    11  ter 55 of the laws of 1992, is amended to read as follows:
    12    (f) Overpayment credited against past-due legally enforceable debts.--
    13  If interest is payable pursuant to this section on that  portion  of  an
    14  overpayment  which  is  certified  by  the  commissioner of taxation and
    15  finance to the comptroller as the amount to be credited against a  past-
    16  due  legally  enforceable debt pursuant to the provisions of section one
    17  hundred seventy-one-f of this chapter, or a city of New York tax warrant
    18  judgment debt pursuant to the provisions of section one  hundred  seven-
    19  ty-one-l  of  this  chapter,  such  portion of such an overpayment shall
    20  cease to bear interest on the date of such certification.
    21    § 15. Section 1313 of the tax law, as amended by section 3 of  part  A
    22  of chapter 88 of the laws of 2000, is amended to read as follows:
    23    §  1313. Deposit and disposition of revenues. All revenue collected by
    24  the commissioner from the taxes imposed pursuant  to  the  authority  of
    25  this  article  or  former article two-E of the general city law shall be
    26  deposited daily with such responsible banks,  banking  houses  or  trust
    27  companies,  as may be designated by the state comptroller, to the credit
    28  of the comptroller, in trust for the city of New York or  the  New  York
    29  city  transitional  finance  authority,  as  their  interests may appear
    30  pursuant to this section. Such deposits shall be kept in trust and sepa-
    31  rate and apart from all other moneys in  the  possession  of  the  comp-
    32  troller.  The  comptroller shall require adequate security from all such
    33  depositories of such revenue collected by the  commissioner.  The  comp-
    34  troller  shall  retain  in his hands such amount as the commissioner may
    35  determine to be necessary for refunds in respect to  the  taxes  imposed
    36  pursuant to the authority of this article or former article two-E of the
    37  general  city law and for reasonable costs of the commissioner in admin-
    38  istering, collecting and distributing such taxes, out of which the comp-
    39  troller shall pay any refunds of such taxes to which taxpayers shall  be
    40  entitled under any law enacted pursuant to the authority of this article
    41  or  former article two-E of the general city law. The comptroller, after
    42  reserving such refund fund and such costs shall, commencing on or before
    43  the fifteenth day of each month, pay to the New York  city  transitional
    44  finance authority on a daily basis the balance of taxes imposed pursuant
    45  to  the authority of this article or former article two-E of the general
    46  city law to be applied by the  authority,  in  the  following  order  of
    47  priority:  first pursuant to the authority's contracts with bondholders,
    48  then to pay the authority's operating expenses  not  otherwise  provided
    49  for,  and  then  pursuant  to  the authority's agreements with the city,
    50  which agreements shall require the authority to transfer the balance  of
    51  such  taxes not required to meet contractual or other obligations of the
    52  authority to the city as frequently as practicable; except that he shall
    53  pay to the state department of social services that amount  of  overpay-
    54  ments  of the taxes imposed pursuant to the authority of this article or
    55  former article two-E of the general city law and the  interest  on  such
    56  amount which is certified to him by the commissioner as the amount to be

        S. 6060--B                         66                         A. 9560--B

     1  credited against past-due support pursuant to subdivision six of section
     2  one  hundred  seventy-one-c of this chapter and except that he shall pay
     3  to the New York state higher education services corporation that  amount
     4  of  overpayments  of the taxes imposed pursuant to the authority of this
     5  article or former article two-E of the general city law and the interest
     6  on such amount which is certified to him  by  the  commissioner  as  the
     7  amount  to  be  credited  against the amount of defaults in repayment of
     8  guaranteed student loans pursuant to subdivision  five  of  section  one
     9  hundred  seventy-one-d  of  this chapter and except that he shall pay to
    10  the state university of New York or the  city  university  of  New  York
    11  respectively  that  amount of overpayments of the taxes imposed pursuant
    12  to the authority of this article or former article two-E of the  general
    13  city  law  and  the interest on such amount which is certified to him by
    14  the commissioner as the amount to be  credited  against  the  amount  of
    15  defaults  in  repayment  of  state  or city university loans pursuant to
    16  subdivision six of section one hundred seventy-one-e of this chapter and
    17  except that, notwithstanding any provision of law, he  shall  credit  to
    18  the  revenue  arrearage account, pursuant to section ninety-one-a of the
    19  state finance law, that amount of  overpayments  of  the  taxes  imposed
    20  pursuant to the authority of this article or former article two-E of the
    21  general  city  law and the interest on such amount which is certified to
    22  him by the commissioner as the amount to be credited against a  past-due
    23  legally  enforceable  debt  owed to a state agency pursuant to paragraph
    24  (a) of subdivision six of section  one  hundred  seventy-one-f  of  this
    25  chapter,  provided, however, he shall credit to the special offset fidu-
    26  ciary account, pursuant to section ninety-one-c  of  the  state  finance
    27  law, any such amount creditable as a liability as set forth in paragraph
    28  (b)  of  subdivision  six  of  section one hundred seventy-one-f of this
    29  chapter, and except that he shall pay to  the  city  of  New  York  that
    30  amount  of overpayments of tax imposed pursuant to the authority of this
    31  article and the interest on such amount which is certified to him by the
    32  commissioner as the amount to be credited against city of New  York  tax
    33  warrant  judgment  debt pursuant to section one hundred seventy-one-l of
    34  this chapter, and except further that he shall pay  to  a  non-obligated
    35  spouse that amount of overpayment of tax imposed pursuant to the author-
    36  ity  of this article or former article two-E of the general city law and
    37  the interest on such amount which has been credited pursuant to  section
    38  one hundred seventy-one-c, one hundred seventy-one-d, one hundred seven-
    39  ty-one-e  [or  section], one hundred seventy-one-f or one hundred seven-
    40  ty-one-l of this chapter and which is certified to him  by  the  commis-
    41  sioner as the amount due such non-obligated spouse pursuant to paragraph
    42  six  of subsection (b) of section six hundred fifty-one of this chapter,
    43  and he shall deduct a like amount which he shall pay into  the  treasury
    44  to  the  credit of the general fund from amounts subsequently payable to
    45  the office of temporary and disability assistance, the state  university
    46  of  New  York,  the  city  university  of New York, the higher education
    47  services corporation, or the revenue arrearage account or special offset
    48  fiduciary account pursuant to section ninety-one-a  or  ninety-one-c  of
    49  the  state  finance law, as the case may be, whichever had been credited
    50  the  amount  originally  withheld  from  such  overpayment.  The  amount
    51  deducted  for  administering,  collecting  and  distributing  such taxes
    52  during such monthly period shall be paid by  the  comptroller  into  the
    53  general  fund  of the state treasury to the credit of the state purposes
    54  account therein. The first payment to such chief fiscal officer shall be
    55  made on or before March fifteenth, nineteen hundred  seventy-six,  which
    56  payment  shall  represent  the  balance  of  revenue after provision for

        S. 6060--B                         67                         A. 9560--B

     1  refund and such reasonable costs, with respect to taxes  collected  from
     2  January  first,  nineteen  hundred  seventy-six through February twenty-
     3  ninth, nineteen hundred seventy-six. Subsequent payments shall  be  made
     4  on  or  before  April fifteenth, nineteen hundred seventy-six, and on or
     5  before the fifteenth day of each succeeding month thereafter, and  shall
     6  represent  the  balance  of  revenue with respect to taxes collected the
     7  preceding calendar months. The amounts so payable shall be certified  to
     8  the  comptroller  by  the  commissioner  or his delegate, either of whom
     9  shall not be held liable for any inaccuracy in such  certificate.  Where
    10  the  amount  so  paid  over to such chief fiscal officer is more or less
    11  than the amount then due such city, the amount of overpayment or  under-
    12  payment shall be certified to the comptroller by the commissioner or his
    13  delegate,  either of whom shall not be held liable for any inaccuracy in
    14  such certificate. The amount of overpayment or underpayment shall be  so
    15  certified to the comptroller as soon after the discovery of the overpay-
    16  ment  or  underpayment as reasonably possible and subsequent payments by
    17  the comptroller to such  chief  fiscal  officer  shall  be  adjusted  by
    18  subtracting  the  amount  of any such overpayment from, or by adding the
    19  amount of any such underpayment to such number  of  subsequent  payments
    20  and distributions as the comptroller and the commissioner shall consider
    21  reasonable  in view of the amount of the overpayment or underpayment and
    22  all other facts and circumstances. The balance payable to the  New  York
    23  city  transitional  finance  authority  pursuant  to  this section shall
    24  instead be paid to the chief fiscal officer of  the  city  of  New  York
    25  unless  and  until  the  comptroller  has received from such authority a
    26  notice, which shall be conclusive and upon  which  the  comptroller  may
    27  rely  without  further  inquiry,  that such authority has incurred obli-
    28  gations payable by it, whether for borrowed money, operating expenses or
    29  otherwise. On and after the date of such notice and until such  date  as
    30  the authority shall have no obligations outstanding, the city shall have
    31  no  right,  title  or interest in or to the taxes, except as provided in
    32  the authority's agreements with the city.
    33    § 16. Paragraph 5 of subsection (b) of section 1326 of the tax law, as
    34  amended by chapter 55 of the  laws  of  1992,  is  amended  to  read  as
    35  follows:
    36    (5)  If a joint return has been made pursuant to this subsection for a
    37  taxable year and only one spouse is liable for past-due  support,  or  a
    38  past-due  legally  enforceable  debt,  or a city of New York tax warrant
    39  judgment debt, or an amount of a default in repayment  of  a  guaranteed
    40  student,  state  university or city university loan of which the commis-
    41  sioner of taxation and finance has been notified pursuant to section one
    42  hundred seventy-one-c, one hundred seventy-one-d, one  hundred  seventy-
    43  one-e,  [or]  one  hundred seventy-one-f or one hundred seventy-one-l of
    44  this chapter, as the case may be, then an overpayment and interest ther-
    45  eon shall be credited against  such  past-due  support,  or  a  past-due
    46  legally  enforceable  debt,  or  a city of New York tax warrant judgment
    47  debt, or such amount of a default in repayment of a guaranteed  student,
    48  state  university  or city university loan, unless the spouse not liable
    49  for such past-due support, or a past-due legally enforceable debt, or  a
    50  city  of New York tax warrant judgment debt, or such amount of a default
    51  in repayment of a guaranteed student, state university or city universi-
    52  ty loan demands, on a declaration made in accordance with regulations or
    53  instructions prescribed by the commissioner  of  taxation  and  finance,
    54  that  the  portion  of the overpayment and interest attributable to such
    55  spouse not be credited against  the  past-due  support,  or  a  past-due
    56  legally  enforceable  debt,  or  a city of New York tax warrant judgment

        S. 6060--B                         68                         A. 9560--B

     1  debt, or amount of a default in repayment of a guaranteed student, state
     2  university or city university loan owed by the other spouse.  Upon  such
     3  demand  the  commissioner  of  taxation  and finance shall determine the
     4  amount of the overpayment attributable to each spouse in accordance with
     5  regulations  prescribed  by the commissioner of taxation and finance and
     6  credit only that portion of the overpayment and interest thereon attrib-
     7  utable to the spouse liable for past-due support, or a past-due  legally
     8  enforceable  debt,  or  a city of New York tax warrant judgment debt, or
     9  amount of a default in repayment of a guaranteed student, state  univer-
    10  sity  or  city university loan against such past-due support, or a past-
    11  due legally enforceable debt, or a city of New York tax warrant judgment
    12  debt, or such amount of a default in repayment of a guaranteed  student,
    13  state university or city university loan.
    14    §  17.  Section  1333  of the tax law, as amended by chapter 81 of the
    15  laws of 1995, is amended to read as follows:
    16    § 1333. Deposit and disposition of revenues. All revenue collected  by
    17  the  commissioner  of  taxation  and finance from the tax imposed by any
    18  city pursuant to the authority of this article or  article  thirty-B  of
    19  this chapter shall be deposited daily with such responsible banks, bank-
    20  ing  houses  or trust companies, as may be designated by the state comp-
    21  troller, to the credit of the comptroller, in trust for such city.  Such
    22  deposits  shall  be  kept in trust and separate and apart from all other
    23  moneys in the possession  of  the  comptroller.  The  comptroller  shall
    24  require  adequate  security  from  all such depositories of such revenue
    25  collected by the commissioner of taxation and finance.  The  comptroller
    26  shall  retain  in  his hands such amount as the commissioner of taxation
    27  and finance may determine to be necessary for refunds in respect to  the
    28  tax  imposed  by  such city pursuant to the authority of this article or
    29  article thirty-B of this chapter and for reasonable costs of the commis-
    30  sioner of taxation and finance in administering, collecting and distrib-
    31  uting such taxes, out of which the comptroller shall pay any refunds  of
    32  such taxes to which the taxpayer shall be entitled under any law enacted
    33  by  such city pursuant to the authority of this article or article thir-
    34  ty-B of this chapter. The comptroller, after reserving such refund  fund
    35  and  such  cost shall, on or before the fifteenth day of each month, pay
    36  to the chief fiscal officer of such  city  the  balance  of  such  taxes
    37  collected,  to  be  paid into the treasury of such city to the credit of
    38  the general fund except that he shall pay to  the  state  department  of
    39  social  services  that amount of overpayments of the tax imposed by such
    40  city pursuant to the authority of this article or  article  thirty-B  of
    41  this  chapter  and the interest on such amount which is certified to him
    42  by the commissioner of taxation and finance as the amount to be credited
    43  against past-due support pursuant to  subdivision  six  of  section  one
    44  hundred  seventy-one-c  of  this chapter and except that he shall pay to
    45  the New York state higher education services corporation that amount  of
    46  overpayments  of  the tax imposed by such city pursuant to the authority
    47  of this article or article thirty-B of this chapter and the interest  on
    48  such  amount  which  is certified to him by the commissioner of taxation
    49  and finance as the amount to be credited against the amount of  defaults
    50  in repayment of guaranteed student loans pursuant to subdivision five of
    51  section  one  hundred  seventy-one-d  of this chapter and except that he
    52  shall pay to the state university of New York or the city university  of
    53  New  York respectively that amount of overpayments of the tax imposed by
    54  such city pursuant to the authority of this article or article  thirty-B
    55  of  this  chapter  and the interest on such amount which is certified to
    56  him by the commissioner of taxation and finance  as  the  amount  to  be

        S. 6060--B                         69                         A. 9560--B

     1  credited  against  the  amount of defaults in repayment of state or city
     2  university loans pursuant to subdivision  six  of  section  one  hundred
     3  seventy-one-e of this chapter and except that, notwithstanding any other
     4  provision  of  law,  he  shall  credit to the revenue arrearage account,
     5  pursuant to section ninety-one-a of the state finance law,  that  amount
     6  of  overpayments  of the taxes imposed pursuant to the authority of this
     7  article or article thirty-B of this chapter and  the  interest  on  such
     8  amount  which  is  certified  to him by the commissioner of taxation and
     9  finance as the amount to be credited against a past-due legally enforce-
    10  able debt owed to a state agency pursuant to paragraph (a)  of  subdivi-
    11  sion six of section one hundred seventy-one-f of this chapter, provided,
    12  however, he shall credit to the special offset fiduciary account, pursu-
    13  ant  to  section  ninety-one-c of the state finance law, any such amount
    14  creditable as a liability as set forth in paragraph (b)  of  subdivision
    15  six of section one hundred seventy-one-f of this chapter and except that
    16  he  shall pay to the city of New York that amount of overpayments of tax
    17  imposed pursuant to the authority of this article or article thirty-B of
    18  this chapter and the interest on such amount which is certified  to  him
    19  by the commissioner of taxation and finance as the amount to be credited
    20  against  city  of New York tax warrant judgment debt pursuant to section
    21  one hundred seventy-one-l of  this  chapter,  and  except  further  that
    22  he/she shall pay to a non-obligated spouse that amount of overpayment of
    23  tax  imposed  by  such city pursuant to the authority of this article or
    24  article thirty-B of this chapter and the interest on such  amount  which
    25  has  been  credited  pursuant  to section one hundred seventy-one-c, one
    26  hundred seventy-one-d,  one  hundred  seventy-one-e  [or],  one  hundred
    27  seventy-one-f  or one hundred seventy-one-l of this chapter and which is
    28  certified to him by the commissioner of  taxation  and  finance  as  the
    29  amount  due  such  non-obligated  spouse  pursuant  to  paragraph six of
    30  subsection (b) of section six hundred fifty-one of this chapter, and  he
    31  shall  deduct  a like amount which he shall pay into the treasury to the
    32  credit of the general fund from  amounts  subsequently  payable  to  the
    33  department  of  social  services,  the state university of New York, the
    34  city university of New York, or the  higher  education  services  corpo-
    35  ration  or  to the revenue arrearage account or special offset fiduciary
    36  account pursuant to section ninety-one-a or ninety-one-c  of  the  state
    37  finance  law, as the case may be, whichever had been credited the amount
    38  originally withheld from  such  overpayment.  The  amount  deducted  for
    39  administering, collecting and distributing such taxes during such month-
    40  ly  period shall be paid by the comptroller into the general fund of the
    41  state treasury to the credit of the state purposes account therein.  The
    42  first  payment  to  such chief fiscal officer shall be made on or before
    43  March fifteenth,  nineteen  hundred  eighty-five,  which  payment  shall
    44  represent  the  balance  of  revenue after provision for refund and such
    45  reasonable costs, with respect to taxes collected  in  nineteen  hundred
    46  eighty-four.  Subsequent  payments  shall  be  made  on  or before April
    47  fifteenth, nineteen hundred eighty-five, and on or before the  fifteenth
    48  day of each succeeding month thereafter, and shall represent the balance
    49  of  revenue  with  respect  to  taxes  collected  the preceding calendar
    50  months. The amounts so payable shall be certified to the comptroller  by
    51  the commissioner of taxation and finance or his delegate, either of whom
    52  shall  not  be held liable for any inaccuracy in such certificate. Where
    53  the amount so paid over to such chief fiscal officer  is  more  or  less
    54  than  the amount then due such city, the amount of overpayment or under-
    55  payment shall be certified to the comptroller  by  the  commissioner  of
    56  taxation  and  finance or his delegate, either of whom shall not be held

        S. 6060--B                         70                         A. 9560--B

     1  liable for any inaccuracy in such certificate. The amount of overpayment
     2  or underpayment shall be so certified to the comptroller as  soon  after
     3  the  discovery of the overpayment or underpayment as reasonably possible
     4  and  subsequent payments by the comptroller to such chief fiscal officer
     5  shall be adjusted by subtracting the  amount  of  any  such  overpayment
     6  from, or by adding the amount of any such underpayment to such number of
     7  subsequent payments and distributions as the comptroller and the commis-
     8  sioner  of taxation and finance shall consider reasonable in view of the
     9  amount of the overpayment  or  underpayment  and  all  other  facts  and
    10  circumstances.
    11    §  18.  Subsection  (a)  of section 1467 of the tax law, as amended by
    12  chapter 55 of the laws of 1992, is amended to read as follows:
    13    (a) Except in accordance with the proper judicial order or  as  other-
    14  wise provided by law, it shall be unlawful for the commissioner of taxa-
    15  tion  and finance, any officer or employee of the department of taxation
    16  and finance, or any person who, pursuant to this section,  is  permitted
    17  to inspect any return, or any person engaged or retained by such depart-
    18  ment  on  an independent contract basis, or any person who in any manner
    19  may acquire knowledge of the contents of a return filed pursuant to this
    20  article, to divulge or make known in any manner the amount of income  or
    21  any particulars set forth or disclosed in any return required under this
    22  article. The officers charged with the custody of such returns shall not
    23  be  required to produce any of them or evidence of anything contained in
    24  them in any action or proceedings in any court, except on behalf of  the
    25  state  or  the  commissioner  of  taxation  and  finance in an action or
    26  proceeding under the provisions of this chapter or in any  other  action
    27  or  proceeding  involving the collection of a tax due under this chapter
    28  to which the state or the commissioner of  taxation  and  finance  is  a
    29  party or a claimant or on behalf of any party in an action or proceeding
    30  under  the  provisions  of  this article when the returns or facts shown
    31  thereby are directly involved in such action or proceeding,  in  any  of
    32  which  events  the  court may require the production of and may admit in
    33  evidence so much of said returns or  the  facts  shown  thereby  as  are
    34  pertinent  to  the action or proceeding and no more. The commissioner of
    35  taxation and finance may, nevertheless, publish a copy or a  summary  of
    36  any determination or decision rendered after the hearing provided for in
    37  section  one  thousand eighty-nine of this chapter. Nothing herein shall
    38  be construed to prohibit the delivery to a taxpayer or its duly  author-
    39  ized  representative  of  a  certified  copy  of  any  return  filed  in
    40  connection with its tax nor to prohibit the publication of statistics so
    41  classified as to prevent the identification of  particular  returns  and
    42  the  items  thereof,  or the inspection by the attorney-general or other
    43  legal representatives of the state of the return of any  taxpayer  which
    44  shall  bring  action  to  set  aside or review the tax based thereon, or
    45  against which an action or proceeding under this chapter has been recom-
    46  mended by the commissioner of taxation and finance or the  attorney-gen-
    47  eral  or  has  been  instituted; or the inspection of the returns of any
    48  taxpayer by the comptroller or duly designated officer  or  employee  of
    49  the state department of audit and control for purposes of the audit of a
    50  refund  of  any  tax  paid  by  such taxpayer under this article, or the
    51  disclosing to a state agency, pursuant to section one  hundred  seventy-
    52  one-f  of  this  chapter,  of  the amount of an overpayment and interest
    53  thereon certified to the comptroller to be credited against  a  past-due
    54  legally  enforceable  debt owed to such agency and of the name and iden-
    55  tification number of the taxpayer who  made  such  overpayment,  or  the
    56  disclosing  to  the  commissioner  of  finance  of the city of New York,

        S. 6060--B                         71                         A. 9560--B

     1  pursuant to section one hundred seventy-one-l of this  chapter,  of  the
     2  amount  of  an  overpayment  and interest thereon certified to the comp-
     3  troller to be credited against a city of New York tax  warrant  judgment
     4  debt  and of the name and identification number of the taxpayer who made
     5  such overpayment.  Returns shall be preserved for three years and there-
     6  after until the commissioner of taxation and finance orders them  to  be
     7  destroyed.
     8    §  19.  Subdivision  (a) of section 1518 of the tax law, as amended by
     9  chapter 55 of the laws of 1992, is amended to read as follows:
    10    (a) Except in accordance with the proper judicial order or  as  other-
    11  wise provided by law, it shall be unlawful for the commissioner of taxa-
    12  tion  and  finance,  the  superintendent  of  insurance,  any officer or
    13  employee of the department of taxation and  finance,  or  the  insurance
    14  department  or any person who, pursuant to this section, is permitted to
    15  inspect any return, or any person engaged or retained by such department
    16  on an independent contract basis, or any person who in  any  manner  may
    17  acquire  knowledge  of  the  contents of a return filed pursuant to this
    18  article, to divulge or make known in any manner the amount of income  or
    19  any particulars set forth or disclosed in any return required under this
    20  article. The officers charged with the custody of such returns shall not
    21  be  required to produce any of them or evidence of anything contained in
    22  them in any action or proceeding in any court, except on behalf  of  the
    23  state  or  the  commissioner  of  taxation  and finance in any action or
    24  proceeding under the provisions of this chapter or in any  other  action
    25  or  proceeding  involving the collection of a tax due under this chapter
    26  to which the state or the commissioner of  taxation  and  finance  is  a
    27  party or a claimant or on behalf of any party in an action or proceeding
    28  under  the  provisions  of  this article when the returns or facts shown
    29  thereby are directly involved in such action or proceeding,  in  any  of
    30  which  events  the  court may require the production of and may admit in
    31  evidence so much of said returns or the fact shown thereby as are perti-
    32  nent to the action or proceeding and no more. The commissioner of  taxa-
    33  tion  and  finance may, nevertheless, publish a copy or a summary of any
    34  determination or decision rendered after the  hearing  provided  for  in
    35  section  one  thousand  eighty-nine of this chapter. Notwithstanding any
    36  provisions of this section, the commissioner of taxation and finance may
    37  permit the superintendent of insurance or his authorized  representative
    38  to  inspect  the  returns  filed  with  the commissioner of taxation and
    39  finance under this article, or may furnish to such superintendent or his
    40  authorized representative an abstract of any return or supply  him  with
    41  information  concerning an item contained in any return, or disclosed by
    42  an investigation of tax liability under  this  article.  Nothing  herein
    43  shall  be  construed  to prohibit the delivery to a taxpayer or its duly
    44  authorized representative of a certified copy of  any  return  filed  in
    45  connection with its tax nor to prohibit the publication of statistics so
    46  classified  as  to  prevent the identification of particular returns and
    47  the items thereof, or the inspection by the  attorney-general  or  other
    48  legal  representatives  of the state of the return of any taxpayer which
    49  shall bring action to set aside or review  the  tax  based  thereon,  or
    50  against which an action or proceeding under this chapter has been recom-
    51  mended  by the commissioner of taxation and finance or the attorney-gen-
    52  eral or has been instituted; or the inspection of  the  returns  of  any
    53  taxpayer  by  the  comptroller or duly designated officer or employee of
    54  the state department of audit and control for purposes of the audit of a
    55  refund of any tax paid by such  taxpayer  under  this  article,  or  the
    56  disclosing  to  a state agency, pursuant to section one hundred seventy-

        S. 6060--B                         72                         A. 9560--B

     1  one-f of this chapter, of the amount  of  an  overpayment  and  interest
     2  thereon  certified  to the comptroller to be credited against a past-due
     3  legally enforceable debt owed to such agency and of the name  and  iden-
     4  tification  number  of  the  taxpayer  who made such overpayment, or the
     5  disclosing to the commissioner of finance  of  the  city  of  New  York,
     6  pursuant  to  section  one hundred seventy-one-1 of this chapter, of the
     7  amount of an overpayment and interest thereon  certified  to  the  comp-
     8  troller  to  be credited against a city of New York tax warrant judgment
     9  debt and of the name and identification number of the taxpayer who  made
    10  such  overpayment. The provisions of this section shall not be construed
    11  to prohibit or limit the superintendent of insurance from  divulging  or
    12  making  known any information pursuant to the authority of the insurance
    13  law. Returns shall be preserved for three years and thereafter until the
    14  commissioner of taxation and finance orders them to be destroyed.
    15    § 20. Paragraph 5 of subdivision (b) of section 11-1751 of the  admin-
    16  istrative  code of the city of New York, as amended by chapter 55 of the
    17  laws of 1992, is amended to read as follows:
    18    (5) If a joint return has been made under this subdivision for a taxa-
    19  ble year and only one spouse is liable for past-due support, or a  past-
    20  due legally enforceable debt, or a city of New York tax warrant judgment
    21  debt,  or  an  amount of a default in repayment of a guaranteed student,
    22  state university or city university loan of which the state commissioner
    23  of taxation and finance  has  been  notified  pursuant  to  section  one
    24  hundred  seventy-one-c,  one hundred seventy-one-d, one hundred seventy-
    25  one-e, [or] one hundred seventy-one-f or one  hundred  seventy-one-1  of
    26  the tax law, as the case may be, then an overpayment and interest there-
    27  on shall be credited against such past-due support, or a past-due legal-
    28  ly enforceable debt, or a city of New York tax warrant judgment debt, or
    29  such  amount  of  a  default in repayment of a guaranteed student, state
    30  university or city university loan, unless the  spouse  not  liable  for
    31  such past-due support, or a past-due legally enforceable debt, or a city
    32  of  New  York  tax warrant judgment debt, or such amount of a default in
    33  repayment of a guaranteed student, state university or  city  university
    34  loan  demands,  on  a declaration made in accordance with regulations or
    35  instructions prescribed  by  the  state  commissioner  of  taxation  and
    36  finance,  that  the portion of the overpayment and interest attributable
    37  to such spouse not be credited against the past-due support, or a  past-
    38  due legally enforceable debt, or a city of New York tax warrant judgment
    39  debt, or amount of a default in repayment of a guaranteed student, state
    40  university  or  city university loan owed by the other spouse. Upon such
    41  demand, the state commissioner of taxation and finance  shall  determine
    42  the  amount of the overpayment attributable to each spouse in accordance
    43  with regulations prescribed by the state commissioner  of  taxation  and
    44  finance  and  credit  only  that portion of the overpayment and interest
    45  thereon attributable to the spouse liable for  past-due  support,  or  a
    46  past-due  legally  enforceable  debt,  or a city of New York tax warrant
    47  judgment debt, or amount of a  default  in  repayment  of  a  guaranteed
    48  student,  state university or city university loan against such past-due
    49  support, or a past-due legally enforceable debt, or a city of  New  York
    50  tax warrant judgment debt, or such amount of a default in repayment of a
    51  guaranteed  student,  state  university  or  city  university loan. Such
    52  demand may be filed (A) with the return of the  spouse  not  liable  for
    53  past-due  support or past-due legally enforceable debt, or a city of New
    54  York tax warrant judgment debt, or default in repayment of a  guaranteed
    55  student,  state  university,  or  city  university  loan or (B) with the
    56  commissioner of taxation and finance within ten days after  notification

        S. 6060--B                         73                         A. 9560--B

     1  is  provided  such  spouse  by  the commissioner of taxation and finance
     2  pursuant to subdivision seven  of  section  one  hundred  seventy-one-c,
     3  subdivision  six of section one hundred seventy-one-d, subdivision seven
     4  of  section one hundred seventy-one-e [or], subdivision seven of section
     5  one hundred seventy-one-f or subdivision  six  of  section  one  hundred
     6  seventy-one-1 of the New York state tax law.
     7    § 21. Subdivision (a) of section 11-1786 of the administrative code of
     8  the  city  of New York, as amended by chapter 55 of the laws of 1992, is
     9  amended to read as follows:
    10    (a) General. The state commissioner of taxation  and  finance,  within
    11  the  applicable  period  of  limitations,  may  credit an overpayment of
    12  income tax and interest on such overpayment  against  any  liability  in
    13  respect  of  any  tax  imposed by this chapter or by chapter nineteen of
    14  this title on the person who made  the  overpayment  or  any  other  tax
    15  imposed  on  such person pursuant to the authority of the tax law or any
    16  other law if such tax is administered by the state commissioner of taxa-
    17  tion and finance, against any liability in respect of any tax imposed on
    18  such person by the tax law and, as  provided  in  sections  one  hundred
    19  seventy-one-c,  one  hundred  seventy-one-d,  one  hundred seventy-one-e
    20  [and], one hundred seventy-one-f and one hundred  seventy-one-1  of  the
    21  tax  law, against past-due support, against a past-due legally enforcea-
    22  ble debt, against a city of New  York  tax  warrant  judgment  debt  and
    23  against  the  amount  of a default in repayment of a guaranteed student,
    24  state university or city university loan. The balance shall be  refunded
    25  by  the state comptroller out of the proceeds of the tax retained by him
    26  or her for such general purpose. Any refund under this section shall  be
    27  made  only  upon  the  filing  of a return and upon a certificate of the
    28  state commissioner of taxation and finance approved by the  state  comp-
    29  troller. The state comptroller, as a condition precedent to the approval
    30  of  such  a  certificate, may examine into the facts as disclosed by the
    31  return of the person who made the overpayment and other information  and
    32  data  available  in  the files of the state commissioner of taxation and
    33  finance.
    34    § 22. Subdivision (f) of section 11-1788 of the administrative code of
    35  the city of New York, as amended by chapter 55 of the laws of  1992,  is
    36  amended to read as follows:
    37    (f)  Overpayment credited against past-due support, or against a past-
    38  due legally enforceable debt, or a city of New York tax warrant judgment
    39  debt, or defaulted guaranteed student, state university or city  univer-
    40  sity  loans.  If  interest  is  payable pursuant to this section on that
    41  portion of an overpayment of tax imposed by this chapter which is certi-
    42  fied by the state commissioner of taxation  and  finance  to  the  state
    43  comptroller  as  the  amount to be credited against past-due support, or
    44  against a past-due legally enforceable debt, or a city of New  York  tax
    45  warrant  judgment  debt,  or  the  amount of a default in repayment of a
    46  guaranteed student, state university or city  university  loan,  as  the
    47  case  may be, pursuant to the provisions of section one hundred seventy-
    48  one-c, section one hundred seventy-one-d, section one  hundred  seventy-
    49  one-e,  [or]  one  hundred seventy-one-f or one hundred seventy-one-1 of
    50  the tax law, such portion of such an overpayment  shall  cease  to  bear
    51  interest on the date of such certification.
    52    §  23. Paragraph 3 of subdivision (e) of section 11-1797 of the admin-
    53  istrative code of the city of New York, as amended by chapter 55 of  the
    54  laws of 1992, is amended to read as follows:
    55    (3)  Nothing herein shall be construed to prohibit the delivery by the
    56  state commissioner of taxation and finance to  the  county  clerk  of  a

        S. 6060--B                         74                         A. 9560--B

     1  county  within  the city of New York of a mailing list of individuals to
     2  whom income tax forms are mailed by the state commissioner  of  taxation
     3  and  finance  for  the  sole  purpose of compiling a list of prospective
     4  jurors  as  provided  in article sixteen of the judiciary law. Provided,
     5  however, such delivery shall only be made pursuant to an  order  of  the
     6  chief  administrator  of  the  courts, appointed pursuant to section two
     7  hundred ten of such law. No such order may be issued unless  such  chief
     8  administrator is satisfied that such mailing list is needed to compile a
     9  proper list of prospective jurors for the county for which such order is
    10  sought  and that, in view of the responsibilities imposed by the various
    11  laws of the state on the department  of  taxation  and  finance,  it  is
    12  reasonable  to require the state commissioner of taxation and finance to
    13  furnish such list. Such order shall provide that such list shall be used
    14  for the sole purpose of compiling a list of prospective jurors and  that
    15  such county clerk shall take all necessary steps to insure that the list
    16  is kept confidential and that there is no unauthorized use or disclosure
    17  of such list. Furthermore, nothing herein shall be construed to prohibit
    18  the  delivery to a taxpayer or his or her duly authorized representative
    19  of a certified copy of any return or report filed in connection with his
    20  or her tax or to prohibit the publication of statistics so classified as
    21  to prevent the identification of particular reports or returns  and  the
    22  items  thereof, or the inspection by the attorney general or other legal
    23  representatives of the state or city of the  report  or  return  of  any
    24  taxpayer  who  shall  bring  action to set aside or review the tax based
    25  thereon, or against whom an action or proceeding under this chapter  has
    26  been recommended by the commissioner of taxation and finance, the corpo-
    27  ration  counsel  or  the attorney general or has been instituted, or the
    28  inspection of the reports or returns required under this chapter by  the
    29  comptroller  or duly designated officer or employee of the state depart-
    30  ment of audit and control, for purposes of the audit of a refund of  any
    31  tax  paid  by  a  taxpayer  under this chapter, or the furnishing to the
    32  state department of social services of the amount of an  overpayment  of
    33  tax  and  interest  thereon  certified to the comptroller to be credited
    34  against past-due support pursuant to section one  hundred  seventy-one-c
    35  of the tax law and of the name and social security number of the taxpay-
    36  er  who  made  such  overpayment or the furnishing to the New York state
    37  higher education services corporation of the amount of an overpayment of
    38  tax and interest thereon certified to the  comptroller  to  be  credited
    39  against  the  amount  of  a default in repayment of a guaranteed student
    40  loan pursuant to section one hundred seventy-one-d of the tax law and of
    41  the name and social security number of the taxpayer who made such  over-
    42  payment  or  the  furnishing  to the state university of New York or the
    43  city university of New York or the attorney general on  behalf  of  such
    44  state  or city university the amount of an overpayment of tax and inter-
    45  est thereon certified to the comptroller  to  be  credited  against  the
    46  amount  of  a  default  in  repayment of a state university loan or city
    47  university loan pursuant to section one hundred seventy-one-e of the tax
    48  law and of the name and social security number of the taxpayer who  made
    49  such  overpayment,  or  the  disclosing  to  a state agency, pursuant to
    50  section one hundred seventy-one-f of the tax law, of the  amount  of  an
    51  overpayment  and  interest  thereon  certified  to the comptroller to be
    52  credited against a past-due legally enforceable debt owed to such agency
    53  and of the name and social security number of the taxpayer who made such
    54  overpayment, or the disclosing to the commissioner  of  finance  of  the
    55  city  of  New York, pursuant to section one hundred seventy-one-1 of the
    56  tax law, of the amount of an overpayment and interest thereon  certified

        S. 6060--B                         75                         A. 9560--B

     1  to the comptroller to be credited against a city of New York tax warrant
     2  judgment debt and of the name and social security number of the taxpayer
     3  who  made  such  overpayment. Reports and returns shall be preserved for
     4  three  years and thereafter until the state commissioner of taxation and
     5  finance orders them to be destroyed.
     6    § 24. Section 11-1798 of the administrative code of the  city  of  New
     7  York,  as  amended by chapter 81 of the laws of 1995, is amended to read
     8  as follows:
     9    § 11-1798 Deposit and disposition of revenues. All  revenue  collected
    10  by the state commissioner of taxation and finance from the taxes imposed
    11  pursuant  to  this  chapter  or  chapter nineteen of this title shall be
    12  deposited daily with such responsible banks,  banking  houses  or  trust
    13  companies,  as may be designated by the state comptroller, to the credit
    14  of the comptroller, in trust for the city. Such deposits shall  be  kept
    15  in  trust and separate and apart from all other moneys in the possession
    16  of the comptroller. The state comptroller shall require adequate securi-
    17  ty from all such depositories of such revenue  collected  by  the  state
    18  commissioner of taxation and finance. The state comptroller shall retain
    19  in  his  or  her  hands such amounts as the commissioner of taxation and
    20  finance may determine to be necessary for  refunds  in  respect  to  the
    21  taxes  imposed by this chapter and such chapter nineteen and for reason-
    22  able costs of the state commissioner of taxation and finance in adminis-
    23  tering, collecting and distributing such taxes, out of which  the  comp-
    24  troller  shall pay any refunds of such taxes to which taxpayers shall be
    25  entitled under this chapter and such chapter nineteen and except further
    26  that he shall pay to a non-obligated spouse that amount  of  overpayment
    27  of  tax  imposed  pursuant to the authority of article thirty of the New
    28  York state tax law or former article two-E of the general city  law  and
    29  the  interest on such amount which has been credited pursuant to section
    30  one hundred seventy-one-c, one hundred seventy-one-d, one hundred seven-
    31  ty-one-e [or], one hundred seventy-one-f or one hundred seventy-one-l of
    32  the New York state tax law and which is certified to him by the  commis-
    33  sioner  of  taxation  and  finance  as the amount due such non-obligated
    34  spouse pursuant to paragraph  six  of  subsection  (b)  of  section  six
    35  hundred  fifty-one  of the New York state tax law, and he shall deduct a
    36  like amount which he shall pay into the treasury to the  credit  of  the
    37  general  fund  from  amounts  subsequently  payable to the department of
    38  social services, the state university of New York, the  city  university
    39  of New York, the higher education services corporation, or to the reven-
    40  ue  arrearage  account  or  special offset fiduciary account pursuant to
    41  section ninety-one-a or ninety-one-c of the state finance  law,  as  the
    42  case  may be, whichever had been credited the amount originally withheld
    43  from such overpayment and, with respect to amounts  originally  withheld
    44  from  such  overpayment pursuant to section one hundred seventy-one-l of
    45  the tax law and paid to the city of  New  York,  the  comptroller  shall
    46  collect  a like amount from the city of New York. The state comptroller,
    47  after reserving such refund fund and such costs shall, on or before  the
    48  fifteenth day of each month, pay to the chief fiscal officer of the city
    49  the balance of such taxes collected, to be paid into the treasury of the
    50  city  to  the credit of the general fund except that he shall pay to the
    51  state department of social services that amount of overpayments  of  the
    52  taxes imposed pursuant to this chapter or chapter nineteen of this title
    53  and  the  interest on such amount which is certified to him by the state
    54  commissioner of taxation and  finance  as  the  amount  to  be  credited
    55  against  past-due  support  pursuant  to  subdivision six of section one
    56  hundred seventy-one-c of the New York state tax law and except  that  he

        S. 6060--B                         76                         A. 9560--B

     1  shall  pay  to  the New York state higher education services corporation
     2  that amount of overpayments of the taxes imposed pursuant to this  chap-
     3  ter  or  chapter  nineteen of this title and the interest on such amount
     4  which  is  certified  to  him  by the state commissioner of taxation and
     5  finance as the amount to be credited against the amount of  defaults  in
     6  repayment  of  guaranteed  student loans pursuant to subdivision five of
     7  section one hundred seventy-one-d of the New  York  state  tax  law  and
     8  except that he shall pay to the state university of New York or the city
     9  university of New York, respectively, that amount of overpayments of the
    10  taxes imposed pursuant to this chapter or chapter nineteen of this title
    11  and  the  interest on such amount which is certified to him by the state
    12  commissioner of taxation and  finance  as  the  amount  to  be  credited
    13  against  the amount of defaults in repayment of state university or city
    14  university loans pursuant to subdivision  six  of  section  one  hundred
    15  seventy-one-e  of  the  New York state tax law, and except further that,
    16  notwithstanding any other provision of  law,  he  shall  credit  to  the
    17  revenue arrearage account, pursuant to section ninety-one-a of the state
    18  finance  law,  that amount of overpayments of the taxes imposed pursuant
    19  to this chapter or chapter nineteen of this title and  the  interest  on
    20  such amount which is certified to him by the state commissioner of taxa-
    21  tion and finance as the amount to be credited against a past-due legally
    22  enforceable  debt  owed  to  a state agency pursuant to paragraph (a) of
    23  subdivision six of section one hundred seventy-one-f  of  the  New  York
    24  state tax law , provided, however, he shall credit to the special offset
    25  fiduciary account, pursuant to section ninety-one-c of the state finance
    26  law, any such amount creditable as a liability as set forth in paragraph
    27  (b)  of  subdivision six of section one hundred seventy-one-f of the tax
    28  law, and except further that he shall pay to the city of New  York  that
    29  amount  of overpayments of tax imposed pursuant to this chapter or chap-
    30  ter nineteen of this title and the interest  on  such  amount  which  is
    31  certified  to  him  by the state commissioner of taxation and finance as
    32  the amount to be credited against city of New York tax warrant  judgment
    33  debt pursuant to section one hundred seventy-one-l of the New York state
    34  tax  law. The amount deducted for administering, collecting and distrib-
    35  uting such taxes during such monthly period shall be paid by  the  state
    36  comptroller into the general fund of the state treasury to the credit of
    37  the  state purposes fund therein. The first payment to such chief fiscal
    38  officer shall be made on or before  March  fifteenth,  nineteen  hundred
    39  seventy-six,  which payment shall represent the balance of revenue after
    40  provision for refund and such reasonable costs, with  respect  to  taxes
    41  collected  from  January  first,  nineteen  hundred  seventy-six through
    42  February twenty-ninth, nineteen hundred seventy-six. Subsequent payments
    43  shall be made on or before April fifteenth, nineteen hundred seventy-six
    44  and on or before the fifteenth day of each succeeding month  thereafter,
    45  and  shall  represent  the  balance  of  revenue  with  respect to taxes
    46  collected the preceding calendar month. The amounts so payable shall  be
    47  certified to the state comptroller by the state commissioner of taxation
    48  and  finance  or  his  or her delegate, either of whom shall not be held
    49  liable for any inaccuracy in such certificate. Where the amount so  paid
    50  over  to  such chief fiscal officer is more or less than the amount then
    51  due such city, the amount of overpayment or underpayment shall be certi-
    52  fied to the state comptroller by the state commissioner of taxation  and
    53  finance  or his or her delegate, either of whom shall not be held liable
    54  for any inaccuracy in such certificate. The  amount  of  overpayment  or
    55  underpayment  shall  be  so  certified  to the state comptroller as soon
    56  after the discovery of the overpayment  or  underpayment  as  reasonably

        S. 6060--B                         77                         A. 9560--B

     1  possible  and subsequent payments by the state comptroller to such chief
     2  fiscal officer shall be adjusted by subtracting the amount of  any  such
     3  overpayment  from,  or  by adding the amount of any such underpayment to
     4  such  number of subsequent payments and distributions as the state comp-
     5  troller and the state commissioner of taxation and finance shall consid-
     6  er reasonable in view of the amount of the overpayment  or  underpayment
     7  and all other facts and circumstances.
     8    § 25. This act shall take effect immediately.

     9                                   PART S

    10    Section  1.  Section  11-506 of the administrative code of the city of
    11  New York is amended by adding a new subdivision (g) to read as follows:
    12    (g) Upon the disposition of property  to  which  subdivisions  twenty-
    13  three  and  twenty-four  of  section  11-507  of this chapter apply, the
    14  amount of any gain or loss includible in unincorporated  business  gross
    15  income  shall  be adjusted to reflect the modifications provided in such
    16  subdivisions attributable to such property.
    17    § 2. Subdivision 21 of section 11-507 of the  administrative  code  of
    18  the city of New York, as added by local law number 17 of the city of New
    19  York for the year 2002, is amended to read as follows:
    20    (21) For taxable years ending after September tenth, two thousand one,
    21  in  the  case  of  qualified  property  described  in  paragraph  two of
    22  subsection k of section one hundred sixty-eight of the internal  revenue
    23  code other than qualified resurgence zone property described in subdivi-
    24  sion  twenty-two  of  this  section,  and  other than qualified New York
    25  Liberty Zone property described in paragraph  two  of  subsection  b  of
    26  section  fourteen hundred L of the internal revenue code (without regard
    27  to clause (i) of subparagraph (C) of such paragraph), a deduction  shall
    28  be  allowed  with  respect  to  such  property equal to the depreciation
    29  deduction allowable under section one hundred sixty-seven of the  inter-
    30  nal revenue code as such section would have applied to such property had
    31  it  been  acquired by the taxpayer on September tenth, two thousand one,
    32  provided, however, that for taxable years beginning on or after  January
    33  first,  two thousand four, in the case of a passenger motor vehicle or a
    34  sport utility vehicle subject to the provisions of  subdivision  twenty-
    35  four  of  this  section, the limitation under clause (i) of subparagraph
    36  (A) of paragraph one of subdivision (a) of section two hundred eighty  F
    37  of  the  internal  revenue  code  applicable  to the amount allowed as a
    38  deduction under this paragraph shall be determined as of the  date  such
    39  vehicle  was  placed in service and not as of September tenth, two thou-
    40  sand one.
    41    § 3. Section 11-507 of the administrative code of the city of New York
    42  is amended by adding two new subdivisions 23 and 24 to read as follows:
    43    (23) For taxable years beginning on or after January first, two  thou-
    44  sand  four,  in the case of a taxpayer that is not an eligible farmer as
    45  defined in subsection (n) of section six hundred six of the tax law,  no
    46  deduction  shall  be  allowed  for  the amounts allowable as a deduction
    47  under sections one hundred seventy-nine, one hundred sixty-seven and one
    48  hundred sixty-eight of the internal revenue code with respect to a sport
    49  utility vehicle that is not a passenger automobile as defined  in  para-
    50  graph  five  of  subsection  (d)  of section two hundred eighty F of the
    51  internal revenue code.
    52    (24) For taxable years beginning on or after January first, two  thou-
    53  sand  four,  in the case of a taxpayer that is not an eligible farmer as
    54  defined in subsection (n) of section six hundred six of the tax  law,  a

        S. 6060--B                         78                         A. 9560--B

     1  deduction  shall be allowed with respect to a sport utility vehicle that
     2  is not a passenger automobile as defined in paragraph five of subsection
     3  (d) of section two hundred eighty F of the internal revenue  code  equal
     4  to  the  amounts  allowable  as  a  deduction under sections one hundred
     5  seventy-nine, one hundred sixty-seven and one hundred sixty-eight of the
     6  internal revenue code, determined as if such sport utility vehicle  were
     7  a passenger automobile as defined in such paragraph five.
     8    §  4.  Subparagraph  12  of  paragraph (a) of subdivision 8 of section
     9  11-602 of the administrative code of the city of New York, as  added  by
    10  local  law  number  17  of  the  city  of New York for the year 2002, is
    11  amended to read as follows:
    12    (12) for taxable years ending after September tenth, two thousand one,
    13  the amount deductible pursuant to paragraph (k) of this  subdivision[.];
    14  and
    15    §  5. Paragraph (a) of subdivision 8 of section 11-602 of the adminis-
    16  trative code of the city of New York is amended by adding a new subpara-
    17  graph 13 to read as follows:
    18    (13) the amount deductible pursuant to paragraph (o) of this  subdivi-
    19  sion.
    20    §  6. Paragraph (b) of subdivision 8 of section 11-602 of the adminis-
    21  trative code of the city of New York is amended by adding a new subpara-
    22  graph 17 to read as follows:
    23    (17) for taxable years beginning on or after January first, two  thou-
    24  sand  four,  in the case of a taxpayer that is not an eligible farmer as
    25  defined in subsection (n) of section six hundred six of the tax law, the
    26  amount allowable as a deduction under sections one hundred seventy-nine,
    27  one hundred sixty-seven and one  hundred  sixty-eight  of  the  internal
    28  revenue  code  with  respect  to  a  sport utility vehicle that is not a
    29  passenger automobile as defined in paragraph five of subsection  (d)  of
    30  section two hundred eighty F of the internal revenue code.
    31    §  7. Paragraph (k) of subdivision 8 of section 11-602 of the adminis-
    32  trative code of the city of New York, as added by local law number 17 of
    33  the city of New York for the year 2002, is amended to read as follows:
    34    (k) for taxable years ending after September tenth, two thousand  one,
    35  in  the  case  of  qualified  property  described  in  paragraph  two of
    36  subsection k of section one hundred sixty-eight of the internal  revenue
    37  code,  other  than qualified resurgence zone property described in para-
    38  graph (m) of this subdivision, and other than qualified New York Liberty
    39  Zone property described in paragraph two  of  subsection  b  of  section
    40  fourteen  hundred  L  of  the  internal  revenue code (without regard to
    41  clause (i) of subparagraph (C)  of  such  paragraph),  the  depreciation
    42  deduction  allowable  under  section  one  hundred  sixty-seven  as such
    43  section would have applied to such property had it been acquired by  the
    44  taxpayer  on  September tenth, two thousand one, provided, however, that
    45  for taxable years beginning on or  after  January  first,  two  thousand
    46  four,  in the case of a passenger motor vehicle or a sport utility vehi-
    47  cle subject to the provisions of paragraph (o) of this subdivision,  the
    48  limitation  under  clause  (i)  of  subparagraph (A) of paragraph one of
    49  subdivision (a) of section two hundred eighty F of the internal  revenue
    50  code  applicable  to  the amount allowed as a deduction under this para-
    51  graph shall be determined as of the date  such  vehicle  was  placed  in
    52  service and not as of September tenth, two thousand one.
    53    § 8. Subdivision 8 of section 11-602 of the administrative code of the
    54  city  of New York is amended by adding two new paragraphs (o) and (p) to
    55  read as follows:

        S. 6060--B                         79                         A. 9560--B

     1    (o) For taxable years beginning on or after January first,  two  thou-
     2  sand  four,  in the case of a taxpayer that is not an eligible farmer as
     3  defined in subsection (n) of section six hundred six of the tax law, the
     4  deductions  allowable  under  sections  one  hundred  seventy-nine,  one
     5  hundred  sixty-seven and one hundred sixty-eight of the internal revenue
     6  code with respect to a sport utility vehicle that  is  not  a  passenger
     7  automobile as defined in paragraph five of subsection (d) of section two
     8  hundred  eighty  F  of  the internal revenue code, determined as if such
     9  sport utility vehicle were a passenger automobile  as  defined  in  such
    10  paragraph  five.  For purposes of paragraph (k) and subparagraph sixteen
    11  of paragraph (b) of subdivision eight of this section, the terms  quali-
    12  fied  resurgence zone property and qualified New York Liberty Zone prop-
    13  erty described in paragraph two of  subsection  b  of  section  fourteen
    14  hundred L of the internal revenue code shall not include any sport util-
    15  ity  vehicle  that is not a passenger automobile as defined in paragraph
    16  five of subsection (d) of section two hundred eighty F of  the  internal
    17  revenue code.
    18    (p)  Upon  the  disposition of property to which paragraph (o) of this
    19  subdivision applies, the amount of any gain or loss includible in entire
    20  net income shall be adjusted to reflect the  inclusions  and  exclusions
    21  from  entire  net  income pursuant to subparagraph thirteen of paragraph
    22  (a) and subparagraph seventeen of  paragraph  (b)  of  this  subdivision
    23  attributable to such property.
    24    §  9.  Subdivision (b) of section 11-641 of the administrative code of
    25  the city of New York is amended by adding a new paragraph 14 to read  as
    26  follows:
    27    (14)  for taxable years beginning on or after January first, two thou-
    28  sand four, in the case of a taxpayer that is not an eligible  farmer  as
    29  defined in subsection (n) of section six hundred six of the tax law, the
    30  amount allowable as a deduction under sections one hundred seventy-nine,
    31  one  hundred  sixty-seven  and  one  hundred sixty-eight of the internal
    32  revenue code with respect to a sport  utility  vehicle  that  is  not  a
    33  passenger  automobile  as defined in paragraph five of subsection (d) of
    34  section two hundred eighty F of the internal revenue code.
    35    § 10. Subdivision (n) of section 11-641 of the administrative code  of
    36  the city of New York, as added by local law number 17 of the city of New
    37  York for the year 2002, is amended to read as follows:
    38    (n)  for taxable years ending after September tenth, two thousand one,
    39  in the  case  of  qualified  property  described  in  paragraph  two  of
    40  subsection  k of section one hundred sixty-eight of the internal revenue
    41  code, other than qualified resurgence zone property described in  subdi-
    42  vision  (p)  of  this section, and other than qualified New York Liberty
    43  Zone property described in paragraph two  of  subsection  b  of  section
    44  fourteen  hundred  L  of  the  internal  revenue code (without regard to
    45  clause (i) of subparagraph (C) of such paragraph), a taxpayer  shall  be
    46  allowed  with respect to such property the depreciation deduction allow-
    47  able under section one hundred sixty-seven as such  section  would  have
    48  applied to such property had it been acquired by the taxpayer on Septem-
    49  ber  tenth,  two thousand one, provided, however, that for taxable years
    50  beginning on or after January first, two thousand four, in the case of a
    51  passenger motor vehicle or  a  sport  utility  vehicle  subject  to  the
    52  provisions  of  subdivision  (r)  of  this section, the limitation under
    53  clause (i) of subparagraph (A) of paragraph one of  subdivision  (a)  of
    54  section  two hundred eighty F of the internal revenue code applicable to
    55  the amount allowed as a deduction under this paragraph shall  be  deter-

        S. 6060--B                         80                         A. 9560--B

     1  mined  as  of  the date such vehicle was placed in service and not as of
     2  September tenth, two thousand one.
     3    §  11.  Section  11-641  of the administrative code of the city of New
     4  York is amended by adding two new subdivisions (r) and (s)  to  read  as
     5  follows:
     6    (r)  For  taxable years beginning on or after January first, two thou-
     7  sand four, in  the case of a taxpayer that is not an eligible farmer  as
     8  defined  in  subsection (n) of section six hundred six of the tax law, a
     9  taxpayer shall be allowed with respect to a sport utility  vehicle  that
    10  is not a passenger automobile as defined in paragraph five of subsection
    11  (d)  of  section  two hundred eighty F of the internal revenue code, the
    12  deductions  allowable  under  sections  one  hundred  seventy-nine,  one
    13  hundred  sixty-seven and one hundred sixty-eight of the internal revenue
    14  code, determined as if such sport utility vehicle were a passenger auto-
    15  mobile as defined in such paragraph five.
    16    (s) Upon the disposition of property to which subdivision (r) of  this
    17  section applies, the amount of any gain or loss includible in entire net
    18  income  shall  be  adjusted to reflect the modification provided in such
    19  subdivision attributable to such property.
    20    § 12. This act shall take effect immediately and shall  apply  to  tax
    21  years beginning on or after January 1, 2004.

    22                                   PART T

    23    Section  1. The administrative code of the city of New York is amended
    24  by adding a new section 11-128 to read as follows:
    25    § 11-128 Payment of real property taxes by electronic funds  transfer.
    26  a.  Definition.  "Electronic  funds transfer" shall mean any transfer of
    27  funds, other than a transaction originated by check,  draft  or  similar
    28  paper  instrument,  which  is  initiated through an electronic terminal,
    29  telephonic instrument or computer or  magnetic  tape  so  as  to  order,
    30  instruct  or  authorize  a  financial  institution to debit or credit an
    31  account.
    32    b. Authority. Notwithstanding any provision of law  to  the  contrary,
    33  the department of finance may accept and, as authorized by this section,
    34  require payment of real property taxes by electronic funds transfer, and
    35  may  authorize  a  designee  to  accept such payments. The department of
    36  finance, or its designee, may take all actions necessary to complete and
    37  administer such transactions, including but not  limited  to  requesting
    38  and  collecting  necessary  information  and  the  debiting of specified
    39  accounts as provided for by this section.
    40    c. Participation. Notwithstanding any provision of law to the  contra-
    41  ry,  the  commissioner may require the payment of real property taxes by
    42  electronic funds transfer for properties with annual real  property  tax
    43  liability  equal  to or greater than three hundred thousand dollars. The
    44  owner of any such real property, or the person or entity  authorized  by
    45  such  owner  to  pay real property taxes on such real property, shall be
    46  required to enroll  in  an  electronic  payment  program  to  make  such
    47  payments,  including  any  arrears  in  real property taxes on such real
    48  property, by electronic funds transfer, either by payment  initiated  by
    49  the  taxpayer  as  described  in  paragraph one of subdivision d of this
    50  section or by authorizing the department of finance to debit  the  rele-
    51  vant  account  as  described  in  paragraph two of subdivision d of this
    52  section.
    53    1. Notwithstanding any  other  provision  of  this  section,  where  a
    54  taxpayer pays real property taxes for more than one property by a single

        S. 6060--B                         81                         A. 9560--B

     1  payment, and the total annual real property tax liability for such prop-
     2  erties  is  equal to or greater than three hundred thousand dollars, the
     3  total annual real property tax liability for such  properties  shall  be
     4  used to determine whether the taxes for a property must be paid by elec-
     5  tronic funds transfer.
     6    2.  Where real property taxes are paid for more than one taxpayer by a
     7  single bill or paid by a single entity, including but not limited  to  a
     8  mortgage  escrow  agent as defined in paragraph c of subdivision four of
     9  section fifteen hundred nineteen of the charter of the city of New York,
    10  if the total amount paid is equal to or greater than three hundred thou-
    11  sand dollars annually, such amount shall be used  to  determine  whether
    12  the taxpayer or entity is required to participate in an electronic funds
    13  transfer program.
    14    d.  Electronic  payment  program. The owner of real property, or other
    15  person or entity authorized by such owner to pay real property taxes  on
    16  real  property for which payment must be made by electronic funds trans-
    17  fer under this section, may choose between participating in  a  taxpayer
    18  initiated payment program or an automatic debit program, as set forth in
    19  this  subdivision and described in rules promulgated by the commissioner
    20  of finance.
    21    1. Taxpayer initiated program. In such a program,  taxpayers  initiate
    22  payment by electric funds transfer, including payment by fedwire.
    23    2. Automatic debit program. In such a program, taxpayers authorize the
    24  department of finance, or the department's designee as determined by the
    25  commissioner of finance, to debit the taxpayer's account for the amounts
    26  due.
    27    e.  Notification of participation requirements. For taxpayers or enti-
    28  ties subject to this section,  the  department  of  finance  shall  mail
    29  notice  of such requirement to the property owner or other party who has
    30  been designated to receive real property tax bills on an owner's  regis-
    31  tration  card filed by such owner. Such notice shall include the date by
    32  which the owner or other party designated by  such  owner  to  pay  real
    33  property  taxes  on  the  property must enroll in the electronic payment
    34  program.
    35    f. Authorization. To administer the payment of real property taxes  by
    36  electronic  funds  transfer by automatic debit as described in paragraph
    37  two of subdivision d of this section,  the  department  of  finance  may
    38  require  that  the  party  responsible  for the payment of real property
    39  taxes:
    40    1. execute an electronic funds transfer agreement with the  department
    41  of  finance  or  its  designee,  on a form approved by the department of
    42  finance. Such form may be in a format designated  by  the  commissioner,
    43  including  an  electronic  format.  The agreement shall require that the
    44  taxpayer authorize the department of finance or its  designee  to  debit
    45  such  account  on  the last date by which the real property taxes may be
    46  paid without the accrual of interest in accordance with applicable  law;
    47  and
    48    2.  furnish the department of finance or its designee with information
    49  to enable the department of finance to  complete  the  electronic  funds
    50  transfer transaction. Such information shall include, but not be limited
    51  to,  the  name  and  address  of the bank from which an electronic funds
    52  transfer shall be authorized, the account number from which the  payment
    53  shall  be  authorized,  the  American  Bankers Association (ABA) routing
    54  number of the bank where the  taxpayer  maintains  an  account  and  the
    55  borough,  block and lot of the real property for which such payments are
    56  authorized.

        S. 6060--B                         82                         A. 9560--B

     1    g. Timely payment. Notwithstanding any provision of law to the contra-
     2  ry, where real property taxes are required  to  be  made  by  electronic
     3  funds  transfer  pursuant  to  subdivision c of this section, payment of
     4  real property tax by electronic funds transfer shall  be  deemed  timely
     5  and not subject to interest charges if:
     6    1.  for taxpayers enrolled in a taxpayer initiated program pursuant to
     7  paragraph one of subdivision d of this section, (i) the taxpayer proper-
     8  ly initiates payment on the statutory due date for such taxes; and  (ii)
     9  on  the  date  that the tax payment is due, such account contains suffi-
    10  cient funds to enable the successful completion of the electronic  funds
    11  transfer; or
    12    2.  for  taxpayers  enrolled in an automatic debit program pursuant to
    13  paragraph two of subdivision d of this section, (i)  the  department  of
    14  finance  or  its  designee  has  been authorized to debit the taxpayer's
    15  account on the last date by which the real property taxes  may  be  paid
    16  without  the accrual of interest in accordance with applicable law; (ii)
    17  such account is properly identified; and (iii) on the date such  payment
    18  is  due, such account contains sufficient funds to enable the successful
    19  completion of the electronic funds transfer.
    20    h. Charge on returned payments. Where the department of finance or its
    21  designee attempts to debit a taxpayer's  account  pursuant  to  a  valid
    22  electronic  funds  transfer  agreement  and  is  unable  to successfully
    23  complete the electronic funds transfer  due  to  insufficient  funds  or
    24  other  cause not attributable to the department of finance or its desig-
    25  nee, in addition to any interest accruing from the late payment of taxes
    26  in accordance with applicable law, the same fee that is  imposed  for  a
    27  dishonored  check pursuant to section eighty-five of the general munici-
    28  pal law shall be imposed on the affected real property, and such fee may
    29  be collected in the manner provided in such section.
    30    i. Hardship. If a taxpayer is  unable  to  enroll  in  the  electronic
    31  payment  program required by subdivision c of this section or subsequent
    32  to enrollment becomes unable to make payments by electronic funds trans-
    33  fer as required by this section, the taxpayer may seek a waiver by writ-
    34  ten application to the department of finance that sets forth the  reason
    35  for  such inability. Such waiver may be granted in the discretion of the
    36  commissioner of finance, who may consider such criteria as:
    37    1. the hardship, whether financial or practical,  created  by  partic-
    38  ipation  in the electronic funds transfer program for the taxpayer seek-
    39  ing the waiver;
    40    2. the length of time for which the waiver is requested; and
    41    3. any other factors that the commissioner may deem relevant.
    42    The commissioner shall issue a determination, in writing,  within  ten
    43  days of the department of finance's receipt of a waiver request pursuant
    44  to  this subdivision, but no waiver shall be granted with respect to the
    45  payment of any installment of real property taxes  that  is  due  within
    46  thirty days of the date of the request for a waiver.
    47    j.  Confidentiality. The department of finance shall assure the confi-
    48  dentiality of information supplied by taxpayers in effecting  electronic
    49  funds  transfers  in  accordance with applicable provisions of law.  The
    50  provisions of article six of the public officers law shall not apply  to
    51  any  such information furnished by taxpayers subject to the requirements
    52  of this section.
    53    k. Failure to pay by electronic funds transfer. 1. With respect to any
    54  real property as to which real property taxes are required to be paid by
    55  electronic funds transfer under this section, but for which an  install-
    56  ment of real property taxes is not paid by electronic funds transfer and

        S. 6060--B                         83                         A. 9560--B

     1  is  paid  instead  by  any other method, including payment by check, (i)
     2  with respect to the first installment that is paid by any other  method,
     3  including payment by check, the department of finance shall mail a warn-
     4  ing notice to the taxpayer setting forth the requirement to make payment
     5  by electronic funds transfer and the penalties for failure to do so; and
     6  (ii)  with respect to each and every subsequent installment that is paid
     7  by any other method, including  payment  by  check,  the  department  of
     8  finance  shall  impose  a penalty charge in the amount of one percent of
     9  the amount of the tax installment that was required under  this  section
    10  to be paid by electronic funds transfer.
    11    2.  Any  penalty charge imposed under this subdivision shall be a lien
    12  against the real property for  which  the  taxpayer  failed  to  make  a
    13  payment  in the manner required by this section, and shall accrue inter-
    14  est at the same rate as is imposed on a delinquent tax on real property,

    15  to be calculated to the date of payment from the  date  of  entry.  Such
    16  lien  shall  be  a  tax  lien  within the meaning of sections 11-319 and
    17  11-401 and may be sold, enforced or foreclosed in the manner provided in
    18  chapters three and four of this title.
    19    l. Rules. The commissioner may promulgate rules necessary to implement
    20  this section.
    21    § 2. This act shall take effect immediately.

    22                                   PART U

    23    Section 1. Paragraph 1 of subdivision (f) of  section  11-537  of  the
    24  administrative  code  of the city of New York, as amended by chapter 241
    25  of the laws of 1989, is amended to read as follows:
    26    (1) Authority to set interest rates. The commissioner of finance shall
    27  set the overpayment and underpayment rates of interest to be paid pursu-
    28  ant to sections 11-524, 11-525 and 11-528 of this  chapter,  but  if  no
    29  such  rate  or  rates  of  interest are set, such rate or rates shall be
    30  deemed to be set at six percent per annum. Such overpayment  and  under-
    31  payment  rates  shall  be  the rates prescribed in paragraph two of this
    32  subdivision, but the underpayment  rate  shall  not  be  less  than  six
    33  percent  per  annum.  Any  such rates set by the commissioner of finance
    34  shall apply to taxes, or any portion thereof, which remain or become due
    35  or overpaid on or after the date on which such  rates  become  effective
    36  and shall apply only with respect to interest computed or computable for
    37  periods or portions of periods occurring in the period during which such
    38  rates are in effect.
    39    §  2. Paragraph 1 of subdivision (g) of section 11-905 of the adminis-
    40  trative code of the city of New York, as amended by chapter 241  of  the
    41  laws of 1989, is amended to read as follows:
    42    (1) Authority to set interest rates. The commissioner of finance shall
    43  set the overpayment and underpayment rates of interest to be paid pursu-
    44  ant  to  subdivision  (a) of this section and subdivision (a) of section
    45  11-906 of this chapter, but if no such rate or  rates  of  interest  are
    46  set,  such  rate  or  rates shall be deemed to be set at six percent per
    47  annum. Such rates  shall  be  the  overpayment  and  underpayment  rates
    48  prescribed  in  paragraph  two  of this subdivision but the underpayment
    49  rate shall not be less than six percent per annum. Any such rates set by
    50  the commissioner of finance shall apply to taxes, or any portion  there-
    51  of, which remain or become due or overpaid on or after the date on which
    52  such  rates become effective and shall apply only with respect to inter-
    53  est computed or computable for periods or portions of periods  occurring
    54  in the period in which such rates are in effect.

        S. 6060--B                         84                         A. 9560--B

     1    §  3.  This  act  shall take effect immediately and shall apply to the
     2  interest chargeable or due on taxes or on  any  other  amounts,  or  any
     3  portion  thereof,  which remain or become due on or after such date. The
     4  interest rates set prior to amendment by this act shall apply up to  and
     5  including the day before the effective date of this act, to the interest
     6  chargeable or due on taxes or on any other amounts, or any portion ther-
     7  eof, for which interest rates are set under this act.

     8                                   PART V

     9    Section  1.  The  real  property  tax  law  is amended by adding a new
    10  section 467-e to read as follows:
    11    § 467-e. Rebate for owners or tenant-stockholders of one, two or three
    12  family residences or residential property held  in  the  condominium  or
    13  cooperative  form  of  ownership  in  a  city having a population of one
    14  million or more. 1. Generally.  Notwithstanding  any  provision  of  any
    15  general,  special  or local law to the contrary, any city having a popu-
    16  lation of one million or more is  hereby  authorized  and  empowered  to
    17  adopt  and  amend  local laws in accordance with this section to grant a
    18  rebate of real property taxes for fiscal years beginning  on  and  after
    19  the  first  of  July,  two thousand three in the amount of the lesser of
    20  four hundred dollars or the annual tax liability imposed on the  proper-
    21  ty.   No such local law may be adopted unless, as originally adopted, it
    22  authorizes such rebate to be granted in accordance with this section for
    23  three consecutive fiscal years beginning with the fiscal year  beginning
    24  on  the  first  of  July,  two thousand three.   No such rebate shall be
    25  granted by local law for any fiscal year beginning on or after the first
    26  of July, two thousand six, unless the council of such  city,  in  fixing
    27  the  annual  tax  rates  for  any such fiscal year, shall have uniformly
    28  reduced such rates for all classes of property in order to produce  real
    29  property tax relief among such classes of property in an amount not less
    30  than,  in  the  aggregate,  the  aggregate amount of rebate paid in such
    31  fiscal year.  Any rebate authorized by local law in accordance with this
    32  section shall be paid in the fiscal year following the fiscal  year  for
    33  which the rebate is granted. If, with respect to any fiscal year of such
    34  city during which such rebate is to be paid, an increase in average real
    35  property  tax  rates  would  otherwise be necessary in the resolution of
    36  such city council fixing real property tax rates for  such  fiscal  year
    37  pursuant to the charter of such city, then the rebate to be paid in such
    38  fiscal  year  shall  be reduced or eliminated to the extent necessary to
    39  reduce or eliminate such increase in average real  property  tax  rates.
    40  The  determination  of the reduction or elimination of such rebate shall
    41  be set forth in such resolution after consultation with  the  department
    42  of finance of such city and shall take effect upon the final adoption of
    43  such  resolution. Such rebate shall be paid to an owner or tenant-stock-
    44  holder who, as of the date the application provided for  in  subdivision
    45  four  of  this section is due, owns a one, two or three family residence
    46  or a dwelling unit in residential property held in  the  condominium  or
    47  cooperative  form of ownership that is the owner or tenant-stockholder's
    48  primary residence and meets all other eligibility requirements  of  this
    49  section.  Notwithstanding  anything  to  the  contrary  in sections four
    50  hundred twenty-one-a, four hundred twenty-one-b or four hundred  twenty-
    51  one-g  of  this  title, an owner or tenant-stockholder whose property is
    52  receiving benefits pursuant to such sections  shall  not  be  prohibited
    53  from  receiving  a  rebate  pursuant  to  this  section if such owner or
    54  tenant-stockholder  is  otherwise  eligible  to  receive  such   rebate.

        S. 6060--B                         85                         A. 9560--B

     1  Tenant-stockholders  of dwelling units in a cooperative apartment corpo-
     2  ration incorporated as a mutual company pursuant to article  two,  four,
     3  five  or eleven of the private housing finance law shall not be entitled
     4  to  the  rebate authorized by this section. Such rebate shall be paid by
     5  the commissioner of finance to eligible owners or tenant-stockholders in
     6  accordance with rules promulgated by the commissioner of finance.
     7    2. Eligibility requirements. a. To qualify for the rebate pursuant  to
     8  this  section  (1) the property must be a one, two or three family resi-
     9  dence or residential property held in  the  condominium  or  cooperative
    10  form of ownership;
    11    (2) the property must serve as the primary residence of one or more of
    12  the owners or tenant-stockholders thereof; and
    13    (3)  the  owner must not be in arrears in the payment of real property
    14  taxes in an amount in excess of twenty-five dollars for the fiscal  year
    15  for  which  the  rebate  is  claimed and all prior fiscal years, and for
    16  residential property held in the cooperative form  of  ownership,  there
    17  must be no arrears in the payment of real property taxes in an amount in
    18  excess  of  an  average of twenty-five dollars per dwelling unit in such
    19  cooperative apartment corporation for the  fiscal  year  for  which  the
    20  rebate is claimed and all prior fiscal years.
    21    b. If legal title to the property is held by one or more trustees, the
    22  beneficial  owner  or  owners  shall  be  deemed to own the property for
    23  purposes of this subdivision.
    24    3. Definitions. As used in this section:
    25    a. "Applicant" means the owner  or  owners  or  tenant-stockholder  or
    26  tenant-stockholders of the property.
    27    b.  "Commissioner  of  finance" means the commissioner of finance of a
    28  city having a population of one million or more, or his or her designee.
    29    c. "Property" means a one, two or three family residence or a dwelling
    30  unit in residential property held in the condominium or cooperative form
    31  of ownership.
    32    4. Application procedure. a. Generally. Notwithstanding any  provision
    33  of any general, special or local law to the contrary, an application for
    34  a  rebate  pursuant  to  this  section for the fiscal year beginning the
    35  first of July, two thousand three, shall be made no later than the  date
    36  published by the commissioner of finance in the city record and in other
    37  appropriate  general  notices  pursuant  to this subdivision, which date
    38  shall be no earlier than thirty days after the effective  date  of  this
    39  subdivision.  An  application  for a rebate pursuant to this section for
    40  fiscal years beginning on or after the first of July, two thousand four,
    41  shall be made no later than the fifteenth of March of  the  fiscal  year
    42  for  which  the  rebate is claimed. All owners or tenant-stockholders of
    43  property who primarily reside thereon must jointly file  an  application
    44  for the rebate on or before the application deadline, unless such owners
    45  or  tenant-stockholders  currently receive a real property tax exemption
    46  pursuant to section four hundred twenty-five of  this  title,  in  which
    47  case no separate application for a rebate pursuant to this section shall
    48  be  required. Such application may be filed by mail if it is enclosed in
    49  a postpaid envelope properly addressed to the commissioner  of  finance,
    50  deposited  in  a  post office or official depository under the exclusive
    51  care of the United States postal service, and postmarked by  the  United
    52  States  postal  service on or before the application deadline. Each such
    53  application shall be made on a form prescribed by  the  commissioner  of
    54  finance,  which  shall  require  the  applicant  to  agree to notify the
    55  commissioner of finance if his, her or their primary  residence  changes
    56  after  receiving the rebate pursuant to this section, or after filing an

        S. 6060--B                         86                         A. 9560--B

     1  application for such rebate, if his,  her  or  their  primary  residence
     2  changes after filing such application, but before receiving such rebate.
     3  The  commissioner of finance may request that proof of primary residence
     4  be  submitted  with  the application. No rebate pursuant to this section
     5  shall be granted unless the applicant, if required  to  do  so  by  this
     6  subdivision,  files an application within the time periods prescribed in
     7  this subdivision.
     8    b. Approval or denial of application. If the commissioner  of  finance
     9  determines that the applicant is entitled to the rebate pursuant to this
    10  section,  the  commissioner shall approve the application and such owner
    11  or tenant-stockholder shall thereafter be  entitled  to  the  rebate  as
    12  provided in this section. If the commissioner of finance determines that
    13  the  applicant  is  not entitled to the rebate pursuant to this section,
    14  the commissioner shall mail to each applicant not entitled to the rebate
    15  a notice of denial of that application for the rebate for that  year  in
    16  accordance  with  rules  for denial of applications to be promulgated by
    17  the commissioner of finance. The notice  of  denial  shall  specify  the
    18  reason  for  such  denial  and shall be sent on a form prescribed by the
    19  commissioner of finance. Failure to mail any such notice  of  denial  or
    20  the  failure  of  any applicant to receive such notice shall not prevent
    21  the levy, collection and enforcement of taxes on such applicant's  prop-
    22  erty.
    23    c.  Proof  of  residency. (1) Requests. From time to time, the commis-
    24  sioner of finance may request proof  of  residency  from  the  owner  or
    25  tenant-stockholder receiving a rebate pursuant to this section.
    26    (2)  Timing. A request for proof of residency shall be mailed at least
    27  sixty days prior to the  ensuing  application  deadline.  The  owner  or
    28  tenant-stockholder  shall submit proof of his, her or their residency in
    29  an application to the commissioner of finance on or before the  applica-
    30  tion deadline.
    31    d.  Review  of  submission.  The  burden  shall be on the applicant to
    32  establish that the property is his, her or their primary  residence  and
    33  that  any  other requirements to obtain the rebate are satisfied. If the
    34  applicant submits proof of residency on or before the application  dead-
    35  line,  and  the submission demonstrates to the commissioner of finance's
    36  satisfaction that the property is the primary residence  of  the  appli-
    37  cant,  and  if the requirements of this section are otherwise satisfied,
    38  the rebate shall be paid. Otherwise, the commissioner of  finance  shall
    39  discontinue  the rebate and, where appropriate, shall proceed as further
    40  provided herein.
    41    e. Oath. The commissioner of  finance  shall  have  the  authority  to
    42  require  that  statements  made in connection with any application filed
    43  pursuant to this section be made  under  oath.  Such  application  shall
    44  contain  the  following  declaration:  "I  certify  that all information
    45  contained in this application is true and correct  to  the  best  of  my
    46  knowledge  and  belief.  I  understand  that willful making of any false
    47  statement of material fact herein will subject me to the  provisions  of
    48  law  relevant  to  the  making  and filing of false instruments and will
    49  render this application null and  void."  Such  application  shall  also
    50  state  that  the  applicant  agrees to comply with and be subject to the
    51  rules promulgated from time to  time  by  the  commissioner  of  finance
    52  pursuant to this section.
    53    5. Discontinuance of rebate. a. Generally. The commissioner of finance
    54  shall discontinue any rebate paid or granted pursuant to this section if
    55  it  appears  that:  (1) the property may not be the primary residence of
    56  the owner or tenant-stockholder who received or applied for the  rebate,

        S. 6060--B                         87                         A. 9560--B

     1  (2)  title  to  the  property  has  been  transferred  to a new owner or
     2  tenant-stockholder, or (3) the property is otherwise no longer  eligible
     3  for  the rebate. For the purposes of this section, title to that portion
     4  of real property owned by a cooperative apartment corporation in which a
     5  tenant-stockholder of such corporation resides, and which is represented
     6  by his or her share or shares of stock in such corporation as determined
     7  by its or their proportional relationship to the total outstanding stock
     8  of  the  corporation,  including that owned by the corporation, shall be
     9  deemed to be vested in such tenant-stockholder.
    10    b. Rights of owners and tenant-stockholders. Upon determining  that  a
    11  rebate  paid or granted pursuant to this section should be discontinued,
    12  the commissioner of finance shall  mail  a  notice  so  stating  to  the
    13  affected owner or tenant-stockholder at the time and in the manner to be
    14  provided in rules promulgated by the commissioner of finance. Such owner
    15  or tenant-stockholder shall be entitled to seek administrative and judi-
    16  cial review of such action in the manner provided by law, provided, that
    17  the  burden  shall  be  on  the owner or tenant-stockholder to establish
    18  eligibility for the rebate.
    19    6. Recovery of prior rebate. If the commissioner of finance determines
    20  that the owner or tenant-stockholder was (a) not entitled  to  a  rebate
    21  under this section, or (b) that a rebate was paid or calculated in error
    22  under  this  section,  then the commissioner of finance shall recover or
    23  recalculate such rebate and the amount of the rebate or an amount  equal
    24  to  the  difference between the rebate originally paid and the amount to
    25  which the owner or tenant-stockholder was  entitled  shall  be  deducted
    26  from  any  refund  otherwise  payable,  and  any  balance of such amount
    27  remaining unpaid shall be paid to the  commissioner  of  finance  within
    28  thirty days from the date of mailing by the commissioner of finance of a
    29  notice of the amount payable. Such amount payable shall constitute a tax
    30  lien  on  the  property  as  of the date of such notice and, if not paid
    31  within such thirty-day period, penalty and interest at the rate applica-
    32  ble to delinquent taxes on such property shall be charged and  collected
    33  on  such  amount from the date of such notice to the day of payment, and
    34  such amount payable shall be enforceable as a  tax  lien  in  accordance
    35  with  provisions  of law relating to the enforcement of tax liens in any
    36  such city.
    37    7. Penalty for material misstatements. a. Generally.  If  the  commis-
    38  sioner  of  finance determines, within three years from the payment of a
    39  rebate pursuant to this section, that there was a material  misstatement
    40  in  an  application  filed pursuant to this section or in an application
    41  filed pursuant to section four hundred twenty-five  of  this  title  and
    42  that  such  misstatement  provided the basis for the payment of a rebate
    43  under this section, the commissioner of finance shall proceed to  impose
    44  a  penalty  tax against the property of one thousand dollars in addition
    45  to recovering the amount of any prior rebate under  subdivision  six  of
    46  this  section.  An  application  shall  be  deemed to contain a material
    47  misstatement for this purpose when either:
    48    (1) the applicant claimed the property was his, her or  their  primary
    49  residence, when it was not;
    50    (2)  the  applicant  claimed  the  property  was eligible for a rebate
    51  pursuant to this section, when it was not; or
    52    (3) the applicant claimed that the applicant owned the property,  when
    53  the applicant did not.
    54    b.  Procedure.  When  the  commissioner  of  finance determines that a
    55  penalty tax should be imposed, the penalty tax shall be entered  on  the
    56  next  ensuing  tentative or final assessment roll. Each owner or tenant-

        S. 6060--B                         88                         A. 9560--B

     1  stockholder shall be given notice of the possible imposition of a penal-
     2  ty tax, and shall be entitled to seek administrative and judicial review
     3  of such action in the manner provided by law.
     4    c.  Additional  consequences. A penalty tax may be imposed pursuant to
     5  this subdivision whether or not the improper rebate has been revoked  in
     6  the manner provided for by this section.
     7    8.  Rulemaking.  The  commissioner  of  finance shall be authorized to
     8  promulgate rules necessary to effectuate the purposes of this section.
     9    9. Non-disclosure. The information contained in applications or state-
    10  ments in connection therewith filed with  the  commissioner  of  finance
    11  pursuant  to  subdivision  four  of this section shall not be subject to
    12  disclosure under article six of the public officers law.
    13    § 2. Section 1310 of the tax law is amended by adding a new subsection
    14  (f) to read as follows:
    15    (f) Earned income tax credit. (1) Notwithstanding any other  provision
    16  of  law  to the contrary, any city having a population of one million or
    17  more, acting through its local legislative body,  is  hereby  authorized
    18  and  empowered  to adopt and amend local laws granting in any such city,
    19  for taxable years beginning after two thousand three, a  credit  against
    20  the  city personal income tax equal to five percent of the earned income
    21  credit allowed under section thirty-two of the internal revenue code for
    22  the same taxable year.
    23    (2) In the case of a resident taxpayer, the credit provided  by  local
    24  law  adopted  pursuant  to  this subsection shall be allowed against the
    25  taxes authorized by this article for the taxable  year  reduced  by  the
    26  credits  permitted  by this article. If the credit exceeds the tax as so
    27  reduced, the taxpayer may receive, and the  comptroller,  subject  to  a
    28  certificate  of  the  commissioner, shall pay as an overpayment, without
    29  interest, the amount of such excess.
    30    (3) If a taxpayer changes his or her status during  the  taxable  year
    31  from city resident to city nonresident, or from city nonresident to city
    32  resident,  the  credit determined under this subsection shall be limited
    33  to the amount determined by multiplying the amount of such credit  by  a
    34  fraction,  the numerator of which is such taxpayer's city adjusted gross
    35  income, as defined in chapter seventeen of title eleven of the  adminis-
    36  trative  code  of the city of New York, for the period of residence, and
    37  the denominator of which is such taxpayer's city adjusted  gross  income
    38  determined  as  if he or she were a city resident for the entire taxable
    39  year. City adjusted gross  income  shall  be  adjusted  as  provided  in
    40  section  11-1754 of the administrative code of the city of New York. The
    41  credit as so limited shall be applied as provided in  paragraph  two  of
    42  this subsection.
    43    (4)  Subject  to the provisions of paragraph three of this subsection,
    44  in the case of a husband and wife who file a joint return, but  who  are
    45  required  to  determine their city personal income taxes separately, the
    46  credit authorized pursuant to this subsection may be applied against the
    47  tax of either or divided between them as they may elect. In the case  of
    48  a  husband  and  wife who are not required to file a federal return, the
    49  credit under this subsection shall be allowed  only  if  such  taxpayers
    50  file a joint city personal income tax return.
    51    (5)  A local law enacted pursuant to this subsection shall be applica-
    52  ble with respect to any taxable year only if it has been enacted  on  or
    53  before the date that is forty-five days after the effective date of this
    54  subsection and for taxable years subsequent to taxable year two thousand
    55  four,  on  or before July thirty-first of such taxable year. A certified
    56  copy of such local law shall be mailed by registered mail to  the  state

        S. 6060--B                         89                         A. 9560--B

     1  department  of  taxation  and  finance  at  its  office in Albany within
     2  fifteen days of its enactment. However, the state department of taxation
     3  and finance may allow additional time for  such  certified  copy  to  be
     4  mailed  if  it  deems such action to be consistent with its duties under
     5  this article.
     6    § 3. Paragraphs 6 and 7 of subsection (d) of section 606  of  the  tax
     7  law, as added by chapter 170 of the laws of 1994, are amended to read as
     8  follows:
     9    (6)  Notification.  The  commissioner shall periodically, but not less
    10  than every three years, make efforts to  alert  taxpayers  that  may  be
    11  currently eligible to receive the credit provided under this subsection,
    12  and  the  credit  provided  under  any  local  law  enacted  pursuant to
    13  subsection (f) of section thirteen hundred ten of this  chapter,  as  to
    14  their  potential  eligibility.  In making the determination of whether a
    15  taxpayer may be eligible for such credit,  the  commissioner  shall  use
    16  such data as may be appropriate and available, including, but not limit-
    17  ed  to,  data  available  from the United States Department of Treasury,
    18  Internal Revenue Service and New  York  state  income  tax  returns  for
    19  preceding tax years.
    20    (7)  Reports.  The  commissioner  shall  prepare a preliminary written
    21  report after July thirty-first and a final written report after December
    22  thirty-first of each calendar  year,  which  shall  contain  statistical
    23  information  regarding the credits granted on or before such dates under
    24  this subsection, and under any local law enacted pursuant to  subsection
    25  (f)  of section thirteen hundred ten of this chapter, during such calen-
    26  dar year. Copies of these reports shall be submitted by such commission-
    27  er to the governor, the temporary president of the senate,  the  speaker
    28  of  the  assembly,  the chairman of the senate finance committee and the
    29  chairman of the assembly ways and means committee within sixty  days  of
    30  July  thirty-first  with  respect  to the preliminary report, and within
    31  forty-five days of December  thirty-first  with  respect  to  the  final
    32  report,  and  copies  of  such reports with respect to credits under any
    33  local law enacted pursuant to subsection (f) of section thirteen hundred
    34  ten of this chapter shall be submitted in addition to the mayor and  the
    35  speaker  of the council of the city where such a local law is in effect.
    36  Such reports shall contain, but need not be limited to,  the  number  of
    37  credits  and  the  average amount of such credits allowed; and of those,
    38  the number of credits and the average amount of such credits allowed  to
    39  taxpayers  in  each  county; and of those, the number of credits and the
    40  average amount of such credits allowed to taxpayers whose earned  income
    41  falls  within  ranges,  determined by the commissioner, of not more than
    42  four thousand dollars; and of those, the number of credits and the aver-
    43  age amount of such credits allowed  to  taxpayers  who  file  under  the
    44  different  statuses set forth in subsections (a), (b) and (c) of section
    45  six hundred one of this part; and of those, the number  of  credits  and
    46  the  average amount of such credits allowed to taxpayers whose number of
    47  qualifying children falls  within  the  categories  set  forth  in  such
    48  section thirty-two of the internal revenue code.
    49    §  4.  Paragraph 3 of subsection (e) of section 697 of the tax law, as
    50  amended by section 3 of part M of chapter 63 of the  laws  of  2000,  is
    51  amended to read as follows:
    52    (3)  Nothing herein shall be construed to prohibit the department, its
    53  officers or employees from  furnishing  information  to  the  office  of
    54  temporary and disability assistance relating to the payment of the cred-
    55  it for certain household and dependent care services necessary for gain-
    56  ful  employment  under subsection (c) of section six hundred six of this

        S. 6060--B                         90                         A. 9560--B

     1  article and the earned income credit under subsection (d) of section six
     2  hundred six of this article, or pursuant to a local  law  enacted  by  a
     3  city  having  a population of one million or more pursuant to subsection
     4  (f)  of section thirteen hundred ten of this chapter, only to the extent
     5  necessary to calculate  qualified  state  expenditures  under  paragraph
     6  seven  of  subdivision  (a)  of section four hundred nine of the federal
     7  social security act or to document the  proper  expenditure  of  federal
     8  temporary assistance for needy families funds under section four hundred
     9  three of such act. The office of temporary and disability assistance may
    10  redisclose  such  information  to the United States department of health
    11  and human services only to the extent necessary to calculate such quali-
    12  fied state expenditures or to document the proper  expenditure  of  such
    13  federal  temporary  assistance  for needy families funds. Nothing herein
    14  shall be construed to prohibit the delivery by  the  commissioner  to  a
    15  commissioner  of jurors, appointed pursuant to section five hundred four
    16  of the judiciary law, or, in counties within cities having a  population
    17  of one million or more, to the county clerk of such county, of a mailing
    18  list  of  individuals to whom income tax forms are mailed by the commis-
    19  sioner for the sole purpose of compiling a list of prospective jurors as
    20  provided in article sixteen of the  judiciary  law.  Provided,  however,
    21  such  delivery  shall  only  be  made  pursuant to an order of the chief
    22  administrator of the courts, appointed pursuant to section  two  hundred
    23  ten  of the judiciary law. No such order may be issued unless such chief
    24  administrator is satisfied that such mailing list is needed to compile a
    25  proper list of prospective jurors for the county for which such order is
    26  sought and that, in view of the responsibilities imposed by the  various
    27  laws  of  the  state  on the department, it is reasonable to require the
    28  commissioner to furnish such list. Such order shall  provide  that  such
    29  list  shall be used for the sole purpose of compiling a list of prospec-
    30  tive jurors and that such commissioner of jurors, or such county  clerk,
    31  shall take all necessary steps to insure that the list is kept confiden-
    32  tial  and  that there is no unauthorized use or disclosure of such list.
    33  Furthermore, nothing herein shall be construed to prohibit the  delivery
    34  to  a  taxpayer or his or her duly authorized representative of a certi-
    35  fied copy of any return or report filed in connection with  his  or  her
    36  tax  or  to  prohibit  the publication of statistics so classified as to
    37  prevent the identification of particular  reports  or  returns  and  the
    38  items  thereof, or the inspection by the attorney general or other legal
    39  representatives of the state of the report or return of any taxpayer  or
    40  of  any  employer  filed under section one hundred seventy-one-h of this
    41  chapter, where such taxpayer or employer shall bring action to set aside
    42  or review the tax based thereon, or against whom an action or proceeding
    43  under this chapter or under this chapter and  article  eighteen  of  the
    44  labor  law has been recommended by the commissioner, the commissioner of
    45  labor with respect to unemployment insurance matters,  or  the  attorney
    46  general  or  has  been  instituted,  or the inspection of the reports or
    47  returns required under this article by the comptroller  or  duly  desig-
    48  nated  officer or employee of the state department of audit and control,
    49  for purposes of the audit of a refund of any tax paid by a  [tax  payer]
    50  taxpayer  under  this article, or the furnishing to the state department
    51  of labor of unemployment insurance information obtained or derived  from
    52  quarterly  combined  withholding, wage reporting and unemployment insur-
    53  ance returns required to be filed by  employers  pursuant  to  paragraph
    54  four of subsection (a) of section six hundred seventy-four of this arti-
    55  cle,  for  purposes  of  administration  of such department's employment
    56  security programs, evaluation of employment and  training  programs  for

        S. 6060--B                         91                         A. 9560--B

     1  which such department has administrative, reporting, monitoring or eval-
     2  uating  responsibilities,  and  redisclosure  of  such  information when
     3  necessary to enable such department to comply  with  the  provisions  of
     4  section five hundred thirty-seven of the labor law or any other applica-
     5  ble law, or the furnishing to the state office of temporary and disabil-
     6  ity  assistance  of  information obtained or derived from New York state
     7  personal income tax returns as described in paragraph (b) of subdivision
     8  two of section one hundred seventy-one-g of this chapter for the purpose
     9  of reviewing support orders enforced pursuant to title six-A of  article
    10  three  of the social services law to aid in the determination of whether
    11  such orders  should  be  adjusted,  or  the  furnishing  of  information
    12  obtained  from the reports required to be submitted by employers regard-
    13  ing newly hired or re-hired employees pursuant to  section  one  hundred
    14  seventy-one-h of this chapter to the state office of temporary and disa-
    15  bility  assistance, the state department of health, the state department
    16  of labor and the workers' compensation board for  purposes  of  adminis-
    17  tration  of the child support enforcement program, verification of indi-
    18  viduals' eligibility for one  or  more  of  the  programs  specified  in
    19  subsection  (b)  of  section  eleven hundred thirty-seven of the federal
    20  social security act and for other public assistance programs  authorized
    21  by  state law, and administration of the state's employment security and
    22  workers' compensation programs, and to the  national  directory  of  new
    23  hires  established pursuant to section four hundred fifty-three-A of the
    24  federal social security act for the purposes specified in such  section,
    25  or  the  furnishing  to  the  state  office  of temporary and disability
    26  assistance of the amount of an overpayment of income  tax  and  interest
    27  thereon  certified  to  the  comptroller to be credited against past-due
    28  support pursuant to section one hundred seventy-one-c  of  this  chapter
    29  and of the name and social security number of the taxpayer who made such
    30  overpayment  or  the  furnishing  to the New York state higher education
    31  services corporation of the amount of an overpayment of income  tax  and
    32  interest thereon certified to the comptroller to be credited against the
    33  amount  of  a default in repayment of a guaranteed student loan pursuant
    34  to section one hundred seventy-one-d of this chapter and of the name and
    35  social security number of the taxpayer who made such overpayment, or the
    36  furnishing to the state department of health of the information required
    37  by subdivision two-a of section two thousand five hundred eleven of  the
    38  public health law, or the furnishing to the state university of New York
    39  or  the city university of New York respectively or the attorney general
    40  on behalf of such state or city university the amount of an  overpayment
    41  of  income  tax  and interest thereon certified to the comptroller to be
    42  credited against the amount of a default in repayment of a state univer-
    43  sity loan pursuant to section one hundred seventy-one-e of this  chapter
    44  and of the name and social security number of the taxpayer who made such
    45  overpayment,  or  the  disclosing to a state agency, pursuant to section
    46  one hundred seventy-one-f of this chapter, of the amount of an  overpay-
    47  ment  and  interest  thereon certified to the comptroller to be credited
    48  against a past-due legally enforceable debt owed to such agency  and  of
    49  the  name and social security number of the taxpayer who made such over-
    50  payment, or the furnishing of employee and employer information obtained
    51  through the wage reporting  system,  pursuant  to  section  one  hundred
    52  seventy-one-a  of  this  chapter,  to  the state office of temporary and
    53  disability assistance for the purpose of verifying eligibility  for  and
    54  entitlement  to  amounts  of  benefits  under the social services law or
    55  similar law of another jurisdiction, locating absent  parents  or  other
    56  persons legally responsible for the support of applicants for or recipi-

        S. 6060--B                         92                         A. 9560--B

     1  ents  of  public  assistance  and care under the social services law and
     2  persons legally responsible for the support of a recipient  of  services
     3  under  section  one  hundred eleven-g of the social services law and, in
     4  appropriate  cases,  establishing  support  obligations  pursuant to the
     5  social services law and the family court act or similar provision of law
     6  of another jurisdiction for the purpose  of  evaluating  the  effect  on
     7  earnings  of  participation  in  employment,  training or other programs
     8  designed to promote self-sufficiency authorized pursuant to  the  social
     9  services  law by current recipients of public assistance and care and by
    10  former applicants and recipients of public assistance and care,  (except
    11  that  with  regard  to former recipients, information which relates to a
    12  particular former recipient shall be provided  with  client  identifying
    13  data  deleted),  and to the state department of labor, or other individ-
    14  uals designated by the commissioner of labor, for  the  purpose  of  the
    15  administration of such department's employment security programs, public
    16  assistance  work  programs,  or for other purposes deemed appropriate by
    17  the commissioner of labor consistent with the provisions  of  the  labor
    18  law,  as well as for the evaluation of the effect on earnings of partic-
    19  ipation in training programs with respect to  which  the  department  of
    20  labor has reporting, monitoring, administration, or evaluation responsi-
    21  bilities,  or  the furnishing of information, which is obtained from the
    22  wage reporting system operated pursuant to section one hundred  seventy-
    23  one-a  of  this chapter, to the state office of temporary and disability
    24  assistance so that it may furnish such information to public agencies of
    25  other jurisdictions with which the state office of temporary  and  disa-
    26  bility  assistance  has an agreement pursuant to paragraph (h) or (i) of
    27  subdivision three of section twenty of the social services law,  and  to
    28  the  state office of temporary and disability assistance for the purpose
    29  of fulfilling obligations and responsibilities otherwise incumbent  upon
    30  the  state department of labor, under section one hundred twenty-four of
    31  the federal family support act  of  nineteen  hundred  eighty-eight,  by
    32  giving  the  federal  parent  locator service, maintained by the federal
    33  department of health and human services, prompt access to such  informa-
    34  tion  as  required  by such act, or to the state department of health to
    35  establish eligibility under the child health insurance plan pursuant  to
    36  subdivision  two-a  of  section  two thousand five hundred eleven of the
    37  public health law, or  to  the  office  of  vocational  and  educational
    38  services  for individuals with disabilities of the education department,
    39  the commission for the blind and  visually  handicapped  and  any  other
    40  state  vocational  rehabilitation  agency,  for  purposes  of  obtaining
    41  reimbursement  from  the  federal  social  security  administration  for
    42  expenditures  made  by  such  office,  commission or agency on behalf of
    43  disabled  individuals  who  have  achieved  economic   self-sufficiency.
    44  Provided,  however, that with respect to employee information the office
    45  of temporary and disability assistance shall only be furnished with  the
    46  names,  social security account numbers and gross wages of those employ-
    47  ees who are (A) applicants for  or  recipients  of  benefits  under  the
    48  social services law, or similar provision of law of another jurisdiction
    49  (pursuant  to  an agreement under subdivision three of section twenty of
    50  the social services law) or, (B) absent parents or other persons legally
    51  responsible for the support of applicants for or  recipients  of  public
    52  assistance  and  care under the social services law or similar provision
    53  of law of another jurisdiction (pursuant to an agreement under  subdivi-
    54  sion three of section twenty of the social services law), or (C) persons
    55  legally  responsible  for  the  support of a recipient of services under
    56  section one hundred eleven-g of  the  social  services  law  or  similar

        S. 6060--B                         93                         A. 9560--B

     1  provision of law of another jurisdiction (pursuant to an agreement under
     2  subdivision  three of section twenty of the social services law), or (D)
     3  employees  about  whom  wage  reporting  system  information  is   being
     4  furnished  to  public  agencies  of  other jurisdictions, with which the
     5  state office of temporary and disability  assistance  has  an  agreement
     6  pursuant  to paragraph (h) or (i) of subdivision three of section twenty
     7  of the social services law, or (E) employees about whom  wage  reporting
     8  system  information  is  being  furnished  to the federal parent locator
     9  service, maintained by  the  federal  department  of  health  and  human
    10  services,  for the purpose of enabling the state office of temporary and
    11  disability assistance to fulfill obligations and responsibilities other-
    12  wise incumbent upon the state department of  labor,  under  section  one
    13  hundred  twenty-four  of  the  federal  family  support  act of nineteen
    14  hundred eighty-eight, and, only if, the office of temporary and disabil-
    15  ity assistance certifies to the commissioner that such persons are  such
    16  applicants,  recipients,  absent  parents or persons legally responsible
    17  for support or persons about whom information has been  requested  by  a
    18  public  agency  of another jurisdiction or by the federal parent locator
    19  service and further certifies that in the case of information  requested
    20  under  agreements  with  other  jurisdictions  entered  into pursuant to
    21  subdivision three of section twenty of the  social  services  law,  that
    22  such request is in compliance with any applicable federal law. Provided,
    23  further,  that  where  the office of temporary and disability assistance
    24  requests employee information for the purpose of evaluating the  effects
    25  on  earnings  of participation in employment, training or other programs
    26  designed to promote self-sufficiency authorized pursuant to  the  social
    27  services  law,  the  office of temporary and disability assistance shall
    28  only be furnished with the quarterly gross wages (excluding  any  refer-
    29  ence  to the name, social security number or any other information which
    30  could be used to identify any employee or  the  name  or  identification
    31  number  of any employer) paid to employees who are former applicants for
    32  or recipients of public assistance and care and who are so certified  to
    33  the  commissioner  by  the  commissioner  of the office of temporary and
    34  disability assistance. Provided, further, that with respect to  employee
    35  information,  the  department of health shall only be furnished with the
    36  information required pursuant to subdivision two-a of section two  thou-
    37  sand  five hundred eleven of the public health law with respect to those
    38  children whose eligibility under the child health insurance plan  is  to
    39  be  determined  pursuant  to  such subdivision two-a and with respect to
    40  those members of any such child's household whose  income  affects  such
    41  child's  eligibility  and who are so certified to the commissioner or by
    42  the department of health. Provided, further, that wage reporting  infor-
    43  mation  shall  be  furnished to the office of vocational and educational
    44  services for individuals with disabilities of the education  department,
    45  the  commission  for  the  blind  and visually handicapped and any other
    46  state vocational rehabilitation agency only if such  office,  commission
    47  or agency, as applicable, certifies to the commissioner that such infor-
    48  mation  is  necessary  to  obtain  reimbursement from the federal social
    49  security administration for expenditures  made  on  behalf  of  disabled
    50  individuals  who  have  achieved self-sufficiency.   Reports and returns
    51  shall be preserved for three years and thereafter until the commissioner
    52  orders them to be destroyed.
    53    § 5. Notwithstanding any inconsistent provision of section 2 of  local
    54  law  number 39 of the city of New York for the year 2004, such local law
    55  shall take effect upon the effective date of this  act.  Notwithstanding
    56  any  inconsistent  provision  of section 2 of local law number 40 of the

        S. 6060--B                         94                         A. 9560--B

     1  city of New York for the year 2004, such local  law  shall  take  effect
     2  upon the effective date of this act.
     3    §  6.  This  act shall take effect immediately, provided that no local
     4  law adopted by a city having a population of one million or more  pursu-
     5  ant to section one of this act may provide for a rebate of real property
     6  taxes  for  any fiscal year of such city that begins on or after July 1,
     7  2006, and provided further that any actions, including but  not  limited
     8  to enactment of local laws or promulgation of rules, taken to effectuate
     9  the  purposes  of  any section of this act before the date when this act
    10  shall have become law shall be deemed valid as of the effective date  of
    11  this act.

    12                                   PART W

    13    Section  1.  Section  396-z of the general business law, as amended by
    14  chapter 656 of the laws of 2002, is amended to read as follows:
    15    § 396-z. Rental vehicle protections.  1.  For  the  purposes  of  this
    16  section:  (a) "Authorized driver" shall mean: (i) the person to whom the
    17  vehicle is rented if a licensed driver; (ii)  such  person's  spouse  if
    18  licensed  and at least eighteen years of age; (iii) any person who oper-
    19  ates the vehicle during an emergency situation to a medical facility; or
    20  (iv) any licensed driver expressly listed on the rental agreement as  an
    21  authorized driver.
    22    (b) "Rental agreement" means any written agreement setting forth terms
    23  and  conditions  governing the authorized driver's use of a rental vehi-
    24  cle, as defined in section one hundred thirty-seven-a of the vehicle and
    25  traffic law, for a period not to exceed thirty continuous days.
    26    (c) "Rental vehicle company" means any person or organization, or  any
    27  subsidiary  or  affiliate,  including  a  franchisee, in the business of
    28  providing rental vehicles to the public from locations in this state.
    29    (d) "Optional vehicle protection" means  a  rental  vehicle  company's
    30  agreement not to hold an authorized driver liable for all or part of any
    31  damage  or  loss  to  the  rented vehicle, any loss of use of the rented
    32  vehicle, or any storage, impound, towing or administrative  charges  for
    33  which  the  authorized  driver may be liable. The term "optional vehicle
    34  protection" shall encompass within its meaning other similar terms  that
    35  may  be  used  by  rental  vehicle companies, such as but not limited to
    36  "Collision Damage Waiver", "CDW", "Damage Waiver", "Loss Damage Waiver",
    37  "LDW", and "Physical Damage Waiver".
    38    (e) "Renter" means a person or  entity  that  obtains  the  use  of  a
    39  private passenger vehicle from a rental vehicle company under terms of a
    40  rental agreement.
    41    (f)  "Consolidated facility charge" means a fee required by an airport
    42  to be collected by a rental  vehicle  company  from  a  renter  for  the
    43  finance,  design  and  construction  of  consolidated airport car rental
    44  facilities and or the finance, design,  construction  and  operation  of
    45  common  use  transportation systems that move passengers between airport
    46  terminals and those consolidated  airport  car  rental  facilities.  The
    47  aggregate  amount to be collected shall not exceed the reasonable costs,
    48  as determined annually by an independent audit paid for by the  airport,
    49  to  finance,  design,  construct and operate those facilities and common
    50  use transportation systems.
    51    (g) "Concession recovery fee" means the allowable recovery by a rental
    52  vehicle company from its renters of those fees, including any taxes paid
    53  on such fees, which an airport imposes on  a  rental  vehicle  company's
    54  applicable  revenues,  as defined in a concession agreement that author-

        S. 6060--B                         95                         A. 9560--B

     1  izes a rental vehicle company to operate at an airport located  in  this
     2  state.
     3    (h)  "Business  program" means (i) a contract between a rental company
     4  and a business program sponsor that establishes the rental rate and  any
     5  other  material  term,  on  which the rental company will rent passenger
     6  vehicles to persons authorized by the sponsor and (ii) a  plan,  program
     7  or  other  arrangement established by a rental company at the request or
     8  with the knowledge and cooperation of a business program  sponsor  under
     9  which  the  rental  car  company  offers  to  rent passenger vehicles to
    10  persons authorized by the sponsor at rates, or on other material  terms,
    11  that  are  not  the  same  as  those generally offered by the rental car
    12  company to the public.
    13    (i) "Business program sponsor" means  a  legal  entity  other  than  a
    14  natural  person,  including  without  limitation  a corporation, limited
    15  liability company,  partnership,  government  or  municipality  and  for
    16  profit business being conducted in the form of a sole proprietorship.
    17    (j)  "Business  renter"  means,  for  any  business program sponsor, a
    18  person who is authorized by the sponsor  to  rent  under  the  sponsor's
    19  business  program,  but  the  term  shall not include (i) a non-employee
    20  member of a not for profit organization, (ii) the purchaser of a voucher
    21  or other prepaid rental arrangement from a person, including tour opera-
    22  tor, engaged in the selling or reselling of  such  vouchers  or  prepaid
    23  arrangements to the general public.
    24    2.  (a)  A  rental  vehicle  company  shall  not charge more than nine
    25  dollars per full or partial twenty-four hour  rental  day  for  optional
    26  vehicle  protection  if the manufacturer's suggested retail price of the
    27  rental vehicle is not greater than thirty  thousand  dollars.  A  rental
    28  vehicle  company  shall  not charge more than twelve dollars per full or
    29  partial twenty-four hour rental day for optional vehicle  protection  if
    30  the  manufacturer's  suggested  retail  price  of  the rental vehicle is
    31  greater than thirty thousand dollars.
    32    (b)  A  rental  vehicle  company  shall  not  sell  optional   vehicle
    33  protection  unless  the authorized driver agrees to the purchase of such
    34  protection in writing at or prior to the time the  rental  agreement  is
    35  executed.
    36    (c)   A  rental  vehicle  company  shall  not  void  optional  vehicle
    37  protection except for one or more of the following reasons:
    38    (i) The damage or loss is caused intentionally or as a result of will-
    39  ful, wanton, or reckless conduct of the driver.
    40    (ii) The damage or loss arises out of the driver's  operation  of  the
    41  vehicle while intoxicated or impaired by the use of alcohol or drugs.
    42    (iii)  The  rental vehicle company entered into the rental transaction
    43  based on fraudulent or materially  false  information  supplied  by  the
    44  renter or authorized driver.
    45    (iv)  The  damage  or  loss arises out of the use of the vehicle while
    46  engaged in the commission of a crime other than a traffic infraction.
    47    (v) The damage or loss arises out of the use of the vehicle  to  carry
    48  persons  or property for hire, to push or tow anything, while engaged in
    49  a speed contest, operating off road, or for driver's training.
    50    (vi) The damage or loss arises out of the use  of  the  vehicle  by  a
    51  person other than: an authorized driver; a duly licensed parent or child
    52  over  the  age  of  eighteen thereof who permanently resides in the same
    53  household; or a parking valet or parking garage  attendant  for  compen-
    54  sation and in the normal course of employment.

        S. 6060--B                         96                         A. 9560--B

     1    (vii)  The damage or loss arises out of the use of the vehicle outside
     2  of the continental United States  when  that  use  is  not  specifically
     3  authorized by the rental agreement.
     4    (viii)  The  authorized  driver has failed to comply with the require-
     5  ments for reporting damage or loss as set forth in subdivision  five  of
     6  this section.
     7    (d) A customer may void optional vehicle protection at no charge with-
     8  in  twenty-four  hours  of  purchase provided that the customer: (i) has
     9  rented the vehicle for two or more days, (ii) appears in person  at  any
    10  branch  of  the  vehicle  rental  company together with the vehicle that
    11  shall be subject to inspection, and  (iii)  signs  a  cancellation  form
    12  provided by the rental vehicle company.
    13    3.  Subject  to the provisions of subdivisions six, seven, and nine of
    14  this section, a rental vehicle company may  hold  an  authorized  driver
    15  liable  for  actual  damage  to,  or loss of, a rental vehicle, provided
    16  that: (a) any claim for such damage shall be based on a physical  survey
    17  and shall be made upon the return of the rental vehicle, unless returned
    18  by automation or after-hours which precludes such survey, in which event
    19  any  claim must be made within ten days after return; and (b) any charge
    20  for repair of such damage shall be  limited  to  actual  and  reasonable
    21  costs  and  shall  be  assessed and billed separately and apart from the
    22  rental agreement. For purposes of this subdivision, "returned  by  auto-
    23  mation"  means  a return acknowledged by machine receipt and where there
    24  is no interaction with rental  vehicle  company  personnel  and  "after-
    25  hours"  return  means  a return after normal business hours and in which
    26  the keys and rental agreement are deposited in the rental vehicle compa-
    27  ny office.
    28    4. (a) Any rental vehicle company which states or permits to be stated
    29  the rental costs of a rental vehicle in any  advertisement  shall  state
    30  conspicuously,  in plain language and in conjunction with the advertised
    31  rental cost of the vehicle, the daily rate of  the  applicable  optional
    32  vehicle protection, that the rate constitutes an additional daily charge
    33  to  the  renter,  that  the purchase of such protection is optional, and
    34  that prospective renters should examine their  credit  card  protections
    35  and automobile insurance policies for rental vehicle coverage.
    36    (b) Where a written advertisement, including all print media, contains
    37  the statement of the rental cost of the vehicle, the disclosure required
    38  by this section shall be printed in type no less than ten point type.
    39    (c) When the video presentation of a television or internet advertise-
    40  ment by the rental vehicle company contains the written statement of the
    41  rental  cost  of  a  vehicle,  the depiction of the cost of the optional
    42  vehicle protection shall be clear and conspicuous.
    43    (d) When a radio advertisement or the audio presentation  of  a  tele-
    44  vision  advertisement  contains  the statement of the rental cost of the
    45  motor vehicle, the oral statement of the rental cost  shall  immediately
    46  be  accompanied by an oral statement of the cost of the optional vehicle
    47  protection.
    48    (e) When a telephone inquiry for the rental cost of a vehicle is  made
    49  to  a  rental  vehicle company, the representative of the rental vehicle
    50  company shall, in response to an inquiry by the caller, provide the cost
    51  of the optional vehicle protection and state that the purchase  of  such
    52  protection  is optional and that the renter's personal automobile insur-
    53  ance or credit card may provide coverage.
    54    (f) Any rental vehicle company that offers optional vehicle protection
    55  to an authorized driver shall inform the  authorized  driver  in  posted
    56  signs or in pamphlets, written in plain language, of all of the informa-

        S. 6060--B                         97                         A. 9560--B

     1  tion  required to be disclosed by this section. The requirements of this
     2  paragraph shall be deemed to be satisfied if the rental vehicle  company
     3  places the posted signs or pamphlets prominently and conspicuously where
     4  they may be easily seen or reached by customers.
     5    (g)  The  following disclosure notice shall be made on the face of the
     6  rental agreement either by stamp,  label  or  as  part  of  the  written
     7  contract  or  on  any  other written document provided to the authorized
     8  driver at the time such driver takes possession of the vehicle, shall be
     9  set apart in boldface type and in no smaller print than ten point type:
    10    NOTICE: This contract offers, for an additional charge, optional vehi-
    11  cle protection to cover your financial responsibility for damage or loss
    12  to the rental vehicle. The purchase of optional  vehicle  protection  is
    13  optional  and  may  be  declined.  You are advised to carefully consider
    14  whether to purchase this protection if you have rental vehicle collision
    15  coverage provided by your credit card or  automobile  insurance  policy.
    16  Before deciding whether to purchase optional vehicle protection, you may
    17  wish  to  determine  whether  your credit card or your vehicle insurance
    18  affords you coverage for damage to the rental vehicle and the amount  of
    19  deductible under such coverage.
    20    (h) The contract shall also include in boldface type and in no smaller
    21  print  than  ten  point type, in plain language, any other conditions or
    22  exclusions applicable to the optional  vehicle  protection.  The  rental
    23  vehicle  company  shall  also inform the authorized driver of his or her
    24  right to inspect the vehicle pursuant to paragraph  (c)  of  subdivision
    25  five of this section.
    26    5. (a) Upon return of the vehicle, termination of the rental contract,
    27  or  within ten days if returned by automation or after-hours, the rental
    28  vehicle company shall furnish an incident  report  form  and  a  notice,
    29  pursuant  to  this  paragraph,  of the authorized driver's obligation to
    30  execute and return to the rental vehicle company a complete and accurate
    31  incident report describing any physical and/or mechanical damage. If the
    32  vehicle is returned by automation or after-hours, such  incident  report
    33  form  and notice shall be mailed by overnight delivery service or certi-
    34  fied mail, return receipt requested, and another copy of such  notifica-
    35  tion  shall  be  sent  by regular mail. The rental vehicle company shall
    36  retain for six years a copy of such notice and the certified mail return
    37  receipt.
    38    (b) Upon return of the vehicle, or within  seventy-two  hours  if  the
    39  return  is by automation or after-hours, the authorized driver or his or
    40  her insurer must notify the rental vehicle company  that  they  wish  to
    41  inspect  the  damaged  vehicle.  The inspection must be completed within
    42  seven days of the return date of the vehicle. If the  authorized  driver
    43  or his or her insurer does not request this inspection within the seven-
    44  ty-two  hour period, the authorized driver or his or her insurer will be
    45  deemed to have waived this right.
    46    (c) If the authorized driver declines or fails to complete and  return
    47  the  incident report required pursuant to paragraph (a) of this subdivi-
    48  sion, the rental vehicle company shall, no sooner than twenty days after
    49  the mailing of notification pursuant to such paragraph (a), mail another
    50  copy of the incident report together with  a  letter  stating  that  the
    51  authorized  driver  has  declined  or  otherwise  failed to complete and
    52  return the incident report. Such mailing shall be by overnight  delivery
    53  service or certified mail, return receipt requested, and another copy of
    54  such  notification  by regular mail, with proof of mailing by production
    55  of a certificate of mailing from the  post  office.  Within  seventy-two
    56  hours  of  return  of  the  vehicle, the authorized driver or his or her

        S. 6060--B                         98                         A. 9560--B

     1  insurer must notify the rental vehicle company that he or she wishes  to
     2  inspect  the  damaged  vehicle.  The inspection must be completed within
     3  seven days of the return date of the vehicle. If the  authorized  driver
     4  or his or her insurer does not request this inspection within the seven-
     5  ty-two  hour period, the authorized driver or his or her insurer will be
     6  deemed to have waived this right. If the rental vehicle  company  deter-
     7  mines  the  damaged  vehicle  to be a total loss and subject to salvage,
     8  such seventy-two hour period for notification or waiver of the  wish  to
     9  inspect  the  damaged vehicle shall not apply, and the authorized driver
    10  or his or her insurer shall have ten business days from  the  authorized
    11  driver's  receipt of notification from the rental vehicle company pursu-
    12  ant to paragraph (a) of this subdivision to inspect the damaged vehicle,
    13  unless the rental vehicle company  agrees  to  provide  access  to  such
    14  damaged vehicle beyond the ten business days provided herein. Within the
    15  limits  provided  in  this  paragraph,  the rental vehicle company shall
    16  identify the repairer of, and provide access to, the damaged vehicle, in
    17  order to verify the nature and extent of  damages,  repairs  and  repair
    18  costs, and/or repair estimates.
    19    (d)  All notices shall be mailed to the authorized driver's address as
    20  stated on his or her license, or other address as designated by  him  or
    21  her.
    22    (e)  The  authorized  driver  shall  complete  and return the incident
    23  report within ten days of the receipt of the notice.
    24    (f) The notice required by this  subdivision  shall  be  in  at  least
    25  twelve point bold face type and shall contain the statement: "Failure to
    26  completely  and accurately fill out and return an incident report within
    27  ten days of receipt of this notice may make the authorized driver liable
    28  for damages sustained to the rental vehicle. Except  where  the  damaged
    29  vehicle  is  determined  to  be a total loss and subject to salvage, the
    30  authorized driver or his or her insurer has seventy-two hours  from  the
    31  return  of  the  vehicle to notify the rental vehicle company that he or
    32  she wishes to inspect  the  damaged  vehicle.  The  inspection  must  be
    33  completed  within seven business days of the return date of the vehicle.
    34  If the authorized driver or his or her insurer  does  not  request  this
    35  inspection  within the seventy-two hour period, the authorized driver or
    36  his or her insurer will be deemed to have  waived  this  right.  If  the
    37  rental vehicle company determines the damaged vehicle to be a total loss
    38  and subject to salvage, such seventy-two hour period for notification or
    39  waiver  of  the wish to inspect the damaged vehicle shall not apply, and
    40  such right to inspect the damaged vehicle shall expire ten business days
    41  from the authorized driver's receipt of  this  notice  from  the  rental
    42  vehicle  company  at  the  return of the vehicle or receipt of the first
    43  mailing of this notice in the event of return of the  vehicle  by  auto-
    44  mation  or  after hours. Upon request of the authorized driver or his or
    45  her insurer, we will provide a copy of our  estimate  of  the  costs  of
    46  repairing the damaged motor vehicle."
    47    (g)  For  purposes  of this subdivision, an "incident report" shall be
    48  defined as a motor vehicle  accident  report  pursuant  to  section  six
    49  hundred  five  of the vehicle and traffic law or any similar appropriate
    50  form furnished by the rental vehicle company.
    51    (h) Provided, however, if the authorized driver is physically  incapa-
    52  ble of completing the report, the requirements of this subdivision shall
    53  lapse  until after he or she is able to complete the report and is noti-
    54  fied that he or she must complete and return the report as  required  by
    55  paragraph (b) of this subdivision.

        S. 6060--B                         99                         A. 9560--B

     1    (i)  Provided,  further,  twenty  days  prior  to commencing an action
     2  against the authorized driver, the rental vehicle company must prove the
     3  authorized driver had an additional opportunity to provide the  incident
     4  report  by  providing a second notice along with another incident report
     5  by  certified  mail,  return receipt requested, and another copy of such
     6  notice and report by regular mail, with proof of mailing  by  production
     7  of  a  certificate of mailing; and if the authorized driver provides the
     8  rental vehicle company with a completed incident report  within  fifteen
     9  days  of  the  receipt of the notice, the provisions of this subdivision
    10  shall be deemed satisfied.
    11    6. (a) A rental vehicle company may hold an authorized  driver  liable
    12  to  the  extent  permitted under this chapter for physical or mechanical
    13  damage to the rental vehicle that occurs  during  the  time  the  rental
    14  vehicle  is under the rental agreement; provided, however, that a renter
    15  shall not be liable for mechanical damage unrelated to an accident,  nor
    16  for  any  normal  wear  and  tear  or other mechanical damage that could
    17  reasonably be expected  from  normal  use  of  the  vehicle,  except  in
    18  instances  where  abuse  or  neglect  by  the  driver  is shown. For the
    19  purposes of this subdivision, "actual and reasonable costs"  shall  mean
    20  the  repair  price  reduced  by all discounts paid by the rental vehicle
    21  company to the repairer of the  vehicle,  including  costs  for  towing,
    22  storage, and impound fees.
    23    (b) The total liability of an authorized driver under paragraph (a) of
    24  this  subdivision  for  damage  to  a motor vehicle shall not exceed the
    25  lesser of:
    26    (i) the actual and reasonable costs that the  rental  vehicle  company
    27  incurred  to repair the motor vehicle or that the rental vehicle company
    28  would have incurred if the motor vehicle had been repaired, which  shall
    29  reflect any discounts, price reductions, or adjustments available to the
    30  rental vehicle company; or
    31    (ii) the fair market value of the motor vehicle immediately before the
    32  damage  occurred,  as determined in the applicable market for the retail
    33  sale of the motor vehicle, less any net disposal proceeds.
    34    (c) The total liability of an authorized driver under paragraph (a) of
    35  this subdivision for loss of a motor vehicle shall not exceed reasonable
    36  costs incurred by the rental vehicle company for the loss due  to  theft
    37  of  the rental vehicle up to its fair market value, as determined by the
    38  applicable market for the retail sale of that vehicle if  it  is  estab-
    39  lished  that  an authorized driver failed to exercise reasonable care or
    40  that an authorized driver committed, or aided or abetted in the  commis-
    41  sion of, the theft of the rental motor vehicle.
    42    (d)  Damages  incurred by rental vehicle companies for the loss of use
    43  of a rental vehicle and related administrative fees shall not be  recov-
    44  ered from authorized drivers.
    45    (e)  A  rental  vehicle  company  shall  not hold an authorized driver
    46  liable for any amounts that the rental vehicle company recovers from any
    47  other party.
    48    (f) A rental vehicle company shall not collect or attempt  to  collect
    49  the  amount  described  in  paragraph (b) of this subdivision unless the
    50  rental vehicle company:
    51    (i) obtains an estimate from a repair company or an appraiser  in  the
    52  business of providing such appraisals on the cost of repairing the motor
    53  vehicle;
    54    (ii)  provides  a  copy of the estimate and photographic evidence upon
    55  request to the authorized driver who may be liable under  paragraph  (a)
    56  of this subdivision, or the insurer of the authorized driver; and

        S. 6060--B                         100                        A. 9560--B

     1    (iii)  submits  a  copy  of the estimate with any claim to collect the
     2  amount described in paragraph (b) of this subdivision.
     3    (g) A claim against an authorized driver resulting from damage or loss
     4  to  a  rental  vehicle shall be reasonable and rationally related to the
     5  actual loss incurred. A rental vehicle company  shall  mitigate  damages
     6  where  possible  and  shall not assert or collect any claim for physical
     7  damage which exceeds the amount authorized under paragraph (b)  of  this
     8  subdivision.
     9    (h)  If insurance coverage exists under the authorized driver's appli-
    10  cable insurance policy, the  authorized  driver  may  require  that  the
    11  rental  vehicle  company  submit  any  claims to the authorized driver's
    12  insurance carrier. Upon the request of an authorized driver, the  rental
    13  vehicle  company  shall  submit  any  claims  to the authorized driver's
    14  insurance carrier and shall not make any written or oral representations
    15  to the contrary, nor shall it make any written or  oral  representations
    16  that it will not negotiate with the authorized driver's insurance carri-
    17  er.
    18    7.  (a) No rental vehicle company shall require any security, deposit,
    19  or charge for damage in any form, by credit card  or  otherwise,  during
    20  the term of the rental agreement or pending resolution of any dispute.
    21    (b)  No  rental  vehicle company shall require a deposit or an advance
    22  charge against the credit card of an authorized driver, in any form, for
    23  damages to  a  rental  vehicle  which  is  in  the  authorized  driver's
    24  possession or control.
    25    (c)  No rental vehicle company shall require any payment to the rental
    26  vehicle company, upon the authorized driver's return of the vehicle in a
    27  damaged condition, until after the cost of the damage to the vehicle and
    28  liability therefor is agreed to between the rental vehicle  company  and
    29  the authorized driver or is determined pursuant to law; provided, howev-
    30  er,  that  a  rental  vehicle company is not precluded from presenting a
    31  claim to the authorized driver pursuant  to  other  provisions  of  this
    32  section.
    33    (d)  Causes  of action concerning the existence of, liability for, and
    34  extent and cost of damage to the vehicle shall,  where  appropriate,  be
    35  commenced  by  a  rental  vehicle company in a commercial claims part in
    36  accordance with the limitations  and  jurisdiction  of  the  appropriate
    37  court act.
    38    8. No rental vehicle company shall advertise, quote or charge a rental
    39  rate  that  does not include all charges, except taxes or optional items
    40  and/or services or any mileage charge, which an authorized  driver  must
    41  pay to obtain a rental vehicle.  Provided, however, a rental car company
    42  shall be permitted to separately state and recover a concession recovery
    43  fee  and  consolidated  facility charge from its business renter under a
    44  business program sponsor as such terms are defined herein.
    45    9. No rental vehicle company shall hold any authorized  driver  liable
    46  for  any  damage  to,  or loss of, a rental vehicle, as provided by this
    47  section, unless the rental vehicle company prominently discloses, on the
    48  rental agreement, in at least ten point bold face  display,  the  nature
    49  and  extent  of such liability and such driver's rights and responsibil-
    50  ities under this section.
    51    10. (a) A rental vehicle company shall not charge in addition  to  the
    52  rental  rate,  taxes,  a  consolidated  facility charge and a concession
    53  recovery fee and mileage charge, if any, any fee which must be paid as a
    54  condition of renting the vehicle, such as, but not limited to,  required
    55  fuel  [or  airport]  surcharges,  [nor any fee for transportation to the
    56  location where the rental vehicle will be delivered] unless such  charge

        S. 6060--B                         101                        A. 9560--B

     1  is  applicable only to business renters under a business program sponsor
     2  program.
     3    (b)  In  addition  to  the  rental  rate, taxes, consolidated facility
     4  charge and concession recovery fee for business renters under a business
     5  sponsor program and mileage charge, if any, a rental vehicle company may
     6  charge for an item or service provided in connection with  a  particular
     7  rental transaction if the renter could have avoided incurring the charge
     8  by  not choosing to obtain or utilize the optional item or service, such
     9  as, but not limited to, optional accessories or  services  requested  by
    10  the  renter, service charges incident to the renter's optional return of
    11  the vehicle to a location other than the location where the vehicle  was
    12  rented,  and  charges for refueling the vehicle with as much fuel as was
    13  in the fuel tank at the beginning of the rental.
    14    (c) A rental vehicle company shall make available detachable or remov-
    15  able seats which meet the requirements of  subdivision  one  of  section
    16  twelve hundred twenty-nine-c of the vehicle and traffic law.
    17    (d)  Fees  for  additional  authorized  drivers shall not exceed three
    18  dollars per additional driver per rental day.
    19    (e) A rental vehicle company shall furnish with  each  rental  vehicle
    20  pursuant  to  an  agreement  either an owner's manual or a diagram which
    21  shall indicate the location and plain language description of the  func-
    22  tions  necessary  for  the  safe  and efficient operation of the vehicle
    23  which shall at a minimum include:
    24    (i) Headlights;
    25    (ii) Brakes and emergency brake;
    26    (iii) Turn signal indicators;
    27    (iv) Hazard lights;
    28    (v) Windshield wipers and washers;
    29    (vi) Horn;
    30    (vii) Cruise control;
    31    (viii) Heat control system including defrost systems;
    32    (ix) Car locking systems; and
    33    (x) Spare tire and car jack, tire wrench, and  jacking  locations.  In
    34  the event the rental vehicle company elects to include the owner's manu-
    35  al  pursuant to this section, if the owner's manual is not returned with
    36  the vehicle, the renter shall be liable to the  rental  vehicle  company
    37  for  the  actual replacement cost of the owner's manual plus an adminis-
    38  trative fee.
    39    11. Any clause or provision of a rental  agreement  inconsistent  with
    40  the  provisions  of  this section shall be deemed void as against public
    41  policy.
    42    12. Any rental vehicle company found by a court of competent jurisdic-
    43  tion to have violated a provision of this section shall be subject to  a
    44  penalty of not less than five hundred dollars nor more than one thousand
    45  dollars for each violation.
    46    13. (a) Whenever there shall be a violation of this section, an appli-
    47  cation  may be made by the attorney general in the name of the people of
    48  the state of New York to a court of competent jurisdiction by a  special
    49  proceeding for the imposition of a fine or the issuance of an injunction
    50  against any violation of this section, upon notice to the rental vehicle
    51  company  of  not less than five days, to enjoin and restrain the contin-
    52  uance of such violations.
    53    (b) If the court finds that the defendant has, in fact, violated  this
    54  section,  an  injunction  may  be  issued  by  such court, enjoining and
    55  restraining any further violation,  without  requiring  proof  that  any
    56  person has, in fact, been injured or damaged thereby.

        S. 6060--B                         102                        A. 9560--B

     1    (c)  In  any  proceeding  pursuant  to this subdivision, the court may
     2  direct restitution and  make  allowances  to  the  attorney  general  as
     3  provided in section sixty-three of the executive law.
     4    (d)  In  support  of any application pursuant to this subdivision, the
     5  attorney general is authorized to take proof, determine  relevant  facts
     6  and issue subpoenae in accordance with the civil practice law and rules.
     7    14.  An  authorized  driver shall provide notice to the rental vehicle
     8  company or law enforcement agency within twelve hours of learning of the
     9  theft of the rental vehicle.
    10    15. In accordance with any  applicable  federal  law  or  rule,  every
    11  rental  vehicle  company  shall  display  the following in a conspicuous
    12  location, with lettering that is legible and  that  shall  be  at  least
    13  three-quarters of an inch boldface type:
    14    NOTICE: New York State Law prohibits the following practices by rental
    15  vehicle companies based upon race, color, ethnic origin, religion, disa-
    16  bility,  sex, marital status, or age: (1) refusal to rent; (2) the impo-
    17  sition of any additional charge (except in certain instances  where  the
    18  renter  is  under  the  age  of 25). In addition, it is unlawful for any
    19  rental vehicle company to refuse to rent a vehicle to any person  solely
    20  on the requirement of ownership of a credit card.
    21    §  2.  This  act shall take effect on the ninetieth day after it shall
    22  have become a law, provided that the amendments to section 396-z of  the
    23  general  business  law  made by section one of this act shall not affect
    24  the expiration of such section and shall be deemed to expire therewith.

    25                                   PART X

    26    Section 1. Section 1 of part J of chapter 405 of  the  laws  of  1999,
    27  amending  the  real  property tax law relating to improving the adminis-
    28  tration of the school tax relief  (STAR)  program  and  other  laws,  as
    29  amended  by  section  1 of part C of chapter 262 of the laws of 2004, is
    30  amended to read as follows:
    31    Section 1. Notwithstanding the provisions of article 5 of the  general
    32  construction  law,  the  provisions  of  the tax law amended by sections
    33  94-a, 94-d and 94-g of chapter 2 of the laws of 1995 are hereby  revived
    34  and shall continue in full force and effect as they existed on March 31,
    35  1999 through [September 13, 2004] May 31, 2005, when upon such date they
    36  shall expire and be repealed.  Sections 1, 2, 3, 4, and 5, and such part
    37  of section 10 of chapter 336 of the laws of 1999 as relates to providing
    38  for  the effectiveness of such sections 1, 2, 3, 4 and 5 shall be nulli-
    39  fied in effect on the effective date of this section,  except  that  the
    40  amendments  made  to:  paragraph (2) of subdivision a of section 1612 of
    41  the tax law by such section 1; and subdivision b of section 1612 of  the
    42  tax  law by such section 2; and the repeal of section 152 of chapter 166
    43  of the laws of 1991 made by such section 5 shall continue to  remain  in
    44  effect.
    45    § 2. This act shall take effect immediately.

    46                                   PART Y

    47    Section  1.  Section 3 of chapter 349 of the laws of 1982 amending the
    48  multiple dwelling law relating to the legalization of  interim  multiple
    49  dwellings in cities of over one million, as amended by section 1 of part
    50  D of chapter 262 of the laws of 2004, is amended to read as follows:
    51    §  3. Effective date and termination. This act shall take effect imme-
    52  diately. The provisions of this act  and  all  regulations,  orders  and

        S. 6060--B                         103                        A. 9560--B

     1  requirements thereunder shall terminate at the close of the calendar day
     2  [September 13, 2004] May 31, 2005.
     3    §  2.  Paragraph  (v)  of subdivision 1 of section 284 of the multiple
     4  dwelling law, as amended by section 2 of part D of chapter  262  of  the
     5  laws of 2004, is amended to read as follows:
     6    (v) An owner of an interim multiple dwelling who has not complied with
     7  the  requirements of paragraph (i), (ii), (iii) or (iv) of this subdivi-
     8  sion by the effective date of this  paragraph  as  provided  in  chapter
     9  eighty-five of the laws of two thousand two shall hereafter be deemed in
    10  compliance  with  this  subdivision  provided  that  such owner filed an
    11  alteration application by September first, nineteen hundred ninety-nine,
    12  took all reasonable and necessary action to obtain  an  approved  alter-
    13  ation  permit by March first, two thousand, achieves compliance with the
    14  standards of safety and fire protection set forth in article seven-B  of
    15  this  chapter  for  the residential portions of the building by [August]
    16  May first, two thousand [four] five or within twelve months from obtain-
    17  ing an approved alteration permit whichever  is  later,  and  takes  all
    18  reasonable  and necessary action to obtain a certificate of occupancy as
    19  a class A multiple dwelling for the residential portions of the building
    20  or structure by [September thirteenth, two thousand  four]  May  thirty-
    21  first,  two  thousand five or within one month from achieving compliance
    22  with the aforementioned standards for the residential  portions  of  the
    23  building, whichever is later.
    24    §  3.  This  act shall take effect immediately; provided however, that
    25  the amendments to paragraph (v) of subdivision 1 of section 284  of  the
    26  multiple  dwelling  law made by section two of this act shall not affect
    27  the expiration of such section and shall expire therewith,  pursuant  to
    28  section 3 of chapter 349 of the laws of 1982, as amended.
    29    § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
    30  sion,  section  or  part  of  this act shall be adjudged by any court of
    31  competent jurisdiction to be invalid, such judgment  shall  not  affect,
    32  impair,  or  invalidate  the remainder thereof, but shall be confined in
    33  its operation to the clause, sentence, paragraph,  subdivision,  section
    34  or part thereof directly involved in the controversy in which such judg-
    35  ment shall have been rendered. It is hereby declared to be the intent of
    36  the  legislature  that  this  act  would  have been enacted even if such
    37  invalid provisions had not been included herein.
    38    § 3. This act shall take effect immediately  provided,  however,  that
    39  the  applicable effective date of Parts A through Y of this act shall be
    40  as specifically set forth in the last section of such Parts.