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.