Eliminates entirely the NYC STAR PIT rate reduction benefit for taxpayers with incomes above $500,000 (Part B); converts current STAR delinquency/offset program into a tax clearance program by rejecting offset and making taxpayers pay the tax liability (Part C); relates to recouping improperly granted STAR exemptions 3 year look back (Part E); allows homeowners who registered for the STAR exemption with the department of taxation and finance to receive certain exemptions (Part F); creates a real property tax relief credit for owners and renters (Part G); makes permanent the limitation on charitable contribution deductions for high income New York state and New York city personal income taxpayers (Part H); amends the personal income tax and MTA mobility tax statutes for technical changes (Part I); requires commercial production tax credit economic impact report (Part J); amends the excelsior tax credit by making entertainment industry an eligible business provided that taxpayer must meet threshold requirements (Part K); reforms the investment tax credit provided for master tapes (Part L); expands the youth tax credit and renames it to the urban youth jobs program tax credit (Part M); reduces the net income tax on small businesses for those making below $390,000 (Part N); creates the employee training incentive program tax credit through DED for provider approved program (Part O); levies taxes on wireless telecommunications businesses (Part P); imposes sales tax refund requirements on article 9 taxpayers unless such refund is paid to consumers and is separately stated (Part Q); extends brownfield cleanup program for 10 years (Part R); combines the department of state biennial information statement and tax return filings (Part S); amends corporate tax reform statute for technical changes (Part T); extends the wine tasting sales and use tax exemption to other alcoholic beverages when offered for fee at producer's premise (Part U); imposes local sales tax on prepaid wireless based on retail location (Part V); expands sales tax collection requirements for marketplace providers, making providers subject to sales tax collection requirement on behalf of out of state sellers (Part X); closes certain sales and use tax avoidance strategies (Part Y); exempts solar power purchase agreements from state and local sales tax (Part Z); allows petroleum business tax refunds for farm use of highway diesel motor fuel (Part AA); amends the estate tax to implement technical changes and making certain provisions permanent (Part BB); enhances motor fuel tax enforcement by creating wholesaler registrations (Part CC); makes warrantless wage garnishment permanent without filing with county clerk (Part DD); extends the video lottery gaming vendor's capital awards program for one year (Part MM); extends certain tax rates and certain simulcasting provisions for one year (Part NN); expands electronic gaming offerings at video lottery gaming facilities (Part OO); extends the term of the reorganization board of the New York Racing Association, Inc. for an additional year (Part PP); implements New York city corporate tax reform (Part QQ); makes technical changes to alternative fuel refuel property tax credit (Part RR); makes NYC circuit breaker of 2014 permanent with enhanced benefit (Part SS); enhances college tuition credit with additional credit if claimed American Opportunity Tax Credit for those making $40,000 or less (Part TT); makes resident PIT taxpayer's all source income eligible to compute QEZE tax reduction credit (Part UU); exempts vessels worth $230,000 or more from sales and compensating use tax (Part VV); relates to the empire music production credit (Part WW); relates to the MAT mobility tax library exemption (Part XX); extends the Montecello capital award (Part ZZ); relates to the jockey fund (Part AAA); relates to the NYC and lower Manhattan REAP, energy saving sales tax extender (Part BBB).
STATE OF NEW YORK
________________________________________________________________________
6009
2015-2016 Regular Sessions
IN ASSEMBLY
March 9, 2015
___________
Introduced by COMMITTEE ON RULES -- read once and referred to the
Committee on Ways and Means
AN ACT intentionally omitted (Part A); to amend the state finance law,
the tax law and the administrative code of the city of New York, in
relation to the New York city personal income tax rates (Part B); to
amend the real property tax law and section 3 of part B of chapter 59
of the laws of 2012 amending the real property tax law and the tax law
relating to the suspension of STAR exemptions of property owned by
persons with outstanding tax liabilities, in relation to the suspen-
sion of STAR exemptions of property owned by persons with outstanding
tax liabilities (Part C); intentionally omitted (Part D); to amend the
real property tax law, in relation to establishing a state-adminis-
tered recoupment provision to the STAR exemption program (Part E); to
amend the state finance law, in relation to making technical
corrections to the school tax relief fund; and to provide one-time
relief to STAR registrants who failed to file timely STAR exemption
applications (Part F); to amend the tax law, in relation to the real
property tax relief credit (Part G); to amend the tax law and the
administrative code of the city of New York, in relation to making the
limitation on charitable contribution deductions for certain taxpayers
permanent (Part H); to amend the tax law, the administrative code of
the city of New York and the labor law, in relation to making certain
technical corrections (Part I); to amend the tax law, in relation to a
report regarding the empire state commercial production tax credit;
and to repeal section 9 of part V of chapter 62 of the laws of 2006,
amending the tax law relating to the empire state commercial
production tax credit, relating thereto (Part J); to amend the econom-
ic development law, in relation to the eligibility of entertainment
companies for the excelsior jobs program (Part K); to amend the tax
law, in relation to costs includible in the investment credit base for
the investment tax credit on masters for films, television shows and
commercials (Part L); to amend the labor law and the tax law, in
relation to a program to provide tax incentives for employers employ-
ing at risk youth (Part M); to amend the tax law, in relation to the
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD20007-01-5
A. 6009 2
business income base rate (Part N); to amend the economic development
law and the tax law, in relation to establishing a tax credit for
employers who procure skills training for employees necessary to
cultivate a talented workforce (Part O); to amend the tax law, in
relation to imposing tax on wireless telecommunications businesses
pursuant to sections 184 and 184-a of such law (Part P); to amend the
tax law, in relation to corporation tax refunds or credits (Part Q);
to amend part H of chapter 1 of the laws of 2003, amending the tax law
relating to brownfield redevelopment tax credits, remediated brown-
field credit for real property taxes for qualified sites and environ-
mental remediation insurance credits, in relation to tax credits for
certain sites; to amend the public authorities law and the environ-
mental conservation law, in relation to the environmental restoration
program (Part R); to amend the business corporation law, the limited
liability company law, the partnership law and the tax law, in
relation to the biennial statements filed with the secretary of state
(Part S); to amend the tax law, in relation to making corrections to
the corporate tax reform provisions; and repealing certain provisions
of such law relating thereto (Part T); to amend the tax law, in
relation to exempting certain items of tangible personal property
furnished to customers by certain cider producers, breweries, and
distilleries at tastings (Part U); to amend the tax law, in relation
to the imposition of the sales and compensating use tax on prepaid
mobile calling services (Part V); intentionally omitted (Part W); to
amend the tax law, in relation to requiring marketplace providers
collect sales tax (Part X); to amend the tax law, in relation to clos-
ing certain sales and compensating use tax avoidance strategies with
regard to taxes imposed by and pursuant to the authority of articles
28 and 29 of the tax law (Part Y); to amend the tax law, in relation
to exempting electricity provided by certain sources from the sales
tax imposed by article 28 of the tax law and omitting such exemption
from the taxes imposed pursuant to the authority of article 29 of the
tax law, unless a locality elects otherwise; and to repeal subdivi-
sions (n) and (p) of section 1210 of such law relating to tax
exemptions imposed by resolution in cities having a population of one
million or more persons (Part Z); to amend the tax law, in relation to
allowing a reimbursement of the petroleum business tax for highway
diesel motor fuel used in farm production (Part AA); to amend the tax
law, in relation to the computation of the estate tax (Part BB); to
amend the tax law, in relation to requiring wholesalers of motor fuel
to register and file returns (Part CC); to amend part Q of chapter 59
of the laws of 2013 amending the tax law relating to serving an income
execution with respect to individual tax debtors without filing a
warrant, in relation to the effectiveness thereof (Part DD); inten-
tionally omitted (Part EE); intentionally omitted (Part FF); inten-
tionally omitted (Part GG); intentionally omitted (Part HH); inten-
tionally omitted (Part II); intentionally omitted (Part JJ);
intentionally omitted (Part KK); intentionally omitted (Part LL); to
amend the tax law, in relation to capital awards to vendor tracks
(Part MM); to amend the racing, pari-mutuel wagering and breeding law,
in relation to licenses for simulcast facilities, sums relating to
track simulcast, simulcast of out-of-state thoroughbred races, simul-
casting of races run by out-of-state harness tracks and distributions
of wagers; to amend chapter 281 of the laws of 1994 amending the
racing, pari-mutuel wagering and breeding law and other laws relating
to simulcasting and chapter 346 of the laws of 1990 amending the
A. 6009 3
racing, pari-mutuel wagering and breeding law and other laws relating
to simulcasting and the imposition of certain taxes, in relation to
extending certain provisions thereof; and to amend the racing, pari-
mutuel wagering and breeding law, in relation to extending certain
provisions thereof (Part NN); to amend the tax law and the penal law,
in relation to video lottery gaming (Part OO); to amend the racing,
pari-mutuel wagering and breeding law, in relation to a franchised
corporation (Part PP); to amend the administrative code of the city of
New York, in relation to the taxation of business corporations (Part
QQ); to amend the tax law, in relation to the credit for certain
alternative fuel vehicle refueling property and electric vehicle
recharging property (Part RR); to amend the tax law, in relation to
the enhanced real property tax circuit breaker credit; and to amend
part K of chapter 59 of the laws of 2014, amending the tax law, relat-
ing to establishing an enhanced real property tax circuit breaker, in
relation to making such provisions permanent (Part SS); to amend the
tax law, in relation to a higher education tuition tax credit (Part
TT); to amend the tax law, in relation to QEZE tax reduction credits
(Part UU); to amend the tax law, in relation to a tax exemption for
certain receipts relating to vessels (Part VV); to amend the tax law,
in relation to the creation of the empire state music production cred-
it (Part WW); to amend the tax law, in relation to the exemption of
libraries from the imposition of the metropolitan commuter transporta-
tion mobility tax (Part XX); to amend the tax law, in relation to
vendor fees at vendor tracks (Part YY); to amend the racing, pari-mu-
tuel wagering and breeding law, in relation to eligibility for the New
York Jockey Injury Compensation Fund, Inc. benefits (Part ZZ); and to
amend the tax law, in relation to the temporary exemption from sales
and use taxes for premises used for commercial office space in Lower
Manhattan; and to amend part C of chapter 2 of the laws of 2005 amend-
ing the tax law relating to exemptions from sales and use taxes, in
relation to the effectiveness thereof (Subpart A); to amend the gener-
al city law and the administrative code of the city of New York, in
relation to extending the relocation and employment assistance program
and the Lower Manhattan relocation and employment assistance program
(Subpart B); to amend the general city law and the administrative code
of the city of New York, in relation to extending the special rebates
and discounts provided pursuant to the energy cost savings program and
the Lower Manhattan energy program (Subpart C); and to amend the
administrative code of the city of New York, in relation to the amount
of special reduction allowed (Subpart D) (Part AAA)
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 2015-2016
3 state fiscal year. Each component is wholly contained within a Part
4 identified as Parts A through AAA. The effective date for each partic-
5 ular provision contained within such Part is set forth in the last
6 section of such Part. Any provision in any section contained within a
7 Part, including the effective date of the Part, which makes a reference
8 to a section "of this act", when used in connection with that particular
9 component, shall be deemed to mean and refer to the corresponding
A. 6009 4
1 section of the Part in which it is found. Section three of this act sets
2 forth the general effective date of this act.
3 PART A
4 Intentionally Omitted
5 PART B
6 Section 1. Subdivision 1 of section 54-f of the state finance law, as
7 amended by section 1 of part EE of chapter 57 of the laws of 2010, is
8 amended to read as follows:
9 1. Except as otherwise provided by law, the provisions of this section
10 shall be utilized by the state to calculate the annual amount due to be
11 paid to the city of New York by the state to reimburse such city for tax
12 receipts foregone (a) as a result of [a] chapter three hundred eighty-
13 nine of the laws of nineteen hundred ninety-seven [that reduced the
14 rates of tax imposed pursuant to authority granted under section thir-
15 teen hundred one of the tax law and that created a new "state school tax
16 reduction credit" against liabilities imposed pursuant to the authority
17 granted the city by such section and other statutes authorizing the
18 imposition of a personal income tax on the residents of such city], and
19 (b) as a result of the tax rate adjustments made by [a] chapter fifty-
20 seven of the laws of two thousand ten and by a chapter of the laws of
21 two thousand fifteen, which amended this subdivision.
22 § 2. Paragraphs 1, 2 and 3 of subsection (a) of section 1304 of the
23 tax law, as amended by section 2 of part EE of chapter 57 of the laws of
24 2010, are amended to read as follows:
25 (1) Resident married individuals filing joint returns and resident
26 surviving spouses. The tax under this section for each taxable year on
27 the city taxable income of every city resident married individual who
28 makes a single return jointly with his or her spouse under subsection
29 (b) of section thirteen hundred six of this article and on the city
30 taxable income of every city resident surviving spouse shall be deter-
31 mined in accordance with the following tables:
32 (A) For taxable years beginning after two thousand fourteen:
33 If the city taxable income is:The tax is:
34 Not over $21,6002.55% of the city taxable income
35 Over $21,600 but not$551 plus 3.1% of excess
36 over $45,000over $21,600
37 Over $45,000 but not$1,276 plus 3.15% of excess
38 over $90,000over $45,000
39 Over $90,000 but not$2,694 plus 3.2% of excess
40 over $500,000over $90,000
41 Over $500,000$16,803 plus 3.4% of excess
42 over $500,000
43 (B) For taxable years beginning after two thousand nine and before two
44 thousand fifteen:
45 If the city taxable income is: The tax is:
46 Not over $21,600 2.55% of the city taxable income
47 Over $21,600 but not $551 plus 3.1% of excess
48 over $45,000 over $21,600
A. 6009 5
1 Over $45,000 but not $1,276 plus 3.15% of excess
2 over $90,000 over $45,000
3 Over $90,000 but not $2,694 plus 3.2% of excess
4 over $500,000 over $90,000
5 Over $500,000 $15,814 plus 3.4% of excess
6 over $500,000
7 [(B) For taxable years beginning in two thousand one and two thousand
8 two and for taxable years beginning after two thousand five and before
9 two thousand ten:
10 If the city taxable income is: The tax is:
11 Not over $21,600 2.55% of the city taxable income
12 Over $21,600 but not $551 plus 3.1% of excess
13 over $45,000 over $21,600
14 Over $45,000 but not $1,276 plus 3.15% of excess
15 over $90,000 over $45,000
16 Over $90,000 $2,694 plus 3.2% of excess
17 over $90,000]
18 (2) Resident heads of households. The tax under this section for each
19 taxable year on the city taxable income of every city resident head of a
20 household shall be determined in accordance with the following tables:
21 (A) For taxable years beginning after two thousand fourteen:
22 If the city taxable income is:The tax is:
23 Not over $14,4002.55% of the city taxable income
24 Over $14,400 but not$367 plus 3.1% of excess
25 over $30,000over $14,400
26 Over $30,000 but not$851 plus 3.15% of excess
27 over $60,000over $30,000
28 Over $60,000 but not$1,796 plus 3.2% of excess
29 over $500,000over $60,000
30 Over $500,000$16,869 plus 3.4% of excess
31 over $500,000
32 (B) For taxable years beginning after two thousand nine and before two
33 thousand fifteen:
34 If the city taxable income is: The tax is:
35 Not over $14,400 2.55% of the city taxable income
36 Over $14,400 but not $367 plus 3.1% of excess
37 over $30,000 over $14,400
38 Over $30,000 but not $851 plus 3.15% of excess
39 over $60,000 over $30,000
40 Over $60,000 but not $1,796 plus 3.2% of excess
41 over $500,000 over $60,000
42 Over $500,000 $15,876 plus 3.4% of excess
43 Over $500,000
44 [(B) For taxable years beginning in two thousand one and two thousand
45 two and for taxable years beginning after two thousand five and before
46 two thousand ten:
47 If the city taxable income is: The tax is:
48 Not over $14,400 2.55% of the city taxable income
A. 6009 6
1 Over $14,400 but not $367 plus 3.1% of excess
2 over $30,000 over $14,400
3 Over $30,000 but not $851 plus 3.15% of excess
4 over $60,000 over $30,000
5 Over $60,000 $1,796 plus 3.2% of excess
6 over $60,000]
7 (3) Resident unmarried individuals, resident married individuals
8 filing separate returns and resident estates and trusts. The tax under
9 this section for each taxable year on the city taxable income of every
10 city resident individual who is not a city resident married individual
11 who makes a single return jointly with his or her spouse under
12 subsection (b) of section thirteen hundred six of this article or a city
13 resident head of household or a city resident surviving spouse, and on
14 the city taxable income of every city resident estate and trust shall be
15 determined in accordance with the following tables:
16 (A) For taxable years beginning after two thousand fourteen:
17 If the city taxable income is:The tax is:
18 Not over $12,0002.55% of the city taxable income
19 Over $12,000 but not$306 plus 3.1% of excess
20 over $25,000over $12,000
21 Over $25,000 but not$709 plus 3.15% of excess
22 over $50,000over $25,000
23 Over $50,000 but not$1,497 plus 3.2% of excess
24 over $500,000over $50,000
25 Over $500,000$16,891 plus 3.4%
26 of excess over $500,000
27 (B) For taxable years beginning after two thousand nine and before two
28 thousand fifteen:
29 If the city taxable income is: The tax is:
30 Not over $12,000 2.55% of the city taxable income
31 Over $12,000 but not $306 plus 3.1% of excess
32 over $25,000 over $12,000
33 Over $25,000 but not $709 plus 3.15% of excess
34 over $50,000 over $25,000
35 Over $50,000 but not $1,497 plus 3.2% of excess
36 over $500,000 over $50,000
37 Over $500,000 $15,897 plus 3.4%
38 of excess over $500,000
39 [(B) For taxable years beginning in two thousand one and two thousand
40 two and for taxable years beginning after two thousand five and before
41 two thousand ten:
42 If the city taxable income is: The tax is:
43 Not over $12,000 2.55% of the city taxable income
44 Over $12,000 but not $306 plus 3.1% of excess
45 over $25,000 over $12,000
46 Over $25,000 but not $709 plus 3.15% of excess
47 over $50,000 over $25,000
48 Over $50,000 $1,497 plus 3.2% of excess
49 over $50,000]
A. 6009 7
1 § 3. Paragraphs 1, 2 and 3 of subdivision (a) of section 11-1701 of
2 the administrative code of the city of New York, as amended by section 3
3 of part EE of chapter 57 of the laws of 2010, are amended to read as
4 follows:
5 (1) Resident married individuals filing joint returns and resident
6 surviving spouses. The tax under this section for each taxable year on
7 the city taxable income of every city resident married individual who
8 makes a single return jointly with his or her spouse under subdivision
9 (b) of section 11-1751 of this chapter and on the city taxable income of
10 every city resident surviving spouse shall be determined in accordance
11 with the following tables:
12 (A) For taxable years beginning after two thousand fourteen:
13 If the city taxable income is:The tax is:
14 Not over $21,6002.55% of the city taxable income
15 Over $21,600 but not$551 plus 3.1% of excess
16 over $45,000over $21,600
17 Over $45,000 but not$1,276 plus 3.15% of excess
18 over $90,000over $45,000
19 Over $90,000 but not$2,694 plus 3.2% of excess
20 over $500,000over $90,000
21 Over $500,000$16,803 plus 3.4% of excess
22 over $500,000
23 (B) For taxable years beginning after two thousand nine and before two
24 thousand fifteen:
25 If the city taxable income is: The tax is:
26 Not over $21,600 2.55% of the city taxable income
27 Over $21,600 but not $551 plus 3.1% of excess
28 over $45,000 over $21,600
29 Over $45,000 but not $1,276 plus 3.15% of excess
30 over $90,000 over $45,000
31 Over $90,000 but not $2,694 plus 3.2% of excess
32 over $500,000 over $90,000
33 Over $500,000 $15,814 plus 3.4% of excess
34 over $500,000
35 [(B) For taxable years beginning in two thousand one and two thousand
36 two and for taxable years beginning after two thousand five and before
37 two thousand ten:
38 If the city taxable income is: The tax is:
39 Not over $21,600 2.55% of the city taxable income
40 Over $21,600 but not $551 plus 3.1% of excess
41 over $45,000 over $21,600
42 Over $45,000 but not $1,276 plus 3.15% of excess
43 over $90,000 over $45,000
44 Over $90,000 $2,694 plus 3.2% of excess
45 over $90,000]
46 (2) Resident heads of households. The tax under this section for each
47 taxable year on the city taxable income of every city resident head of a
48 household shall be determined in accordance with the following tables:
49 (A) For taxable years beginning after two thousand fourteen:
A. 6009 8
1 If the city taxable income is:The tax is:
2 Not over $14,4002.55% of the city taxable income
3 Over $14,400 but not $367 plus 3.1% of excess
4 over $30,000over $14,400
5 Over $30,000 but not $851 plus 3.15% of excess
6 over $60,000over $30,000
7 Over $60,000 but not$1,796 plus 3.2% of excess
8 over $500,000over $60,000
9 Over $500,000$16,869 plus 3.4% of excess
10 over $500,000
11 (B) For taxable years beginning after two thousand nine and before two
12 thousand fifteen:
13 If the city taxable income is: The tax is:
14 Not over $14,400 2.55% of the city taxable income
15 Over $14,400 but not $367 plus 3.1% of excess
16 over $30,000 over $14,400
17 Over $30,000 but not $851 plus 3.15% of excess
18 over $60,000 over $30,000
19 Over $60,000 but not $1,796 plus 3.2% of excess
20 over $500,000 over $60,000
21 Over $500,000 $15,876 plus 3.4% of excess
22 over $500,000
23 [(B) For taxable years beginning in two thousand one and two thousand
24 two and for taxable years beginning after two thousand five and before
25 two thousand ten:
26 If the city taxable income is: The tax is:
27 Not over $14,400 2.55% of the city taxable income
28 Over $14,400 but not $367 plus 3.1% of excess
29 over $30,000 over $14,400
30 Over $30,000 but not $851 plus 3.15% of excess
31 over $60,000 over $30,000
32 Over $60,000 $1,796
33 plus 3.2% of excess
34 over $60,000]
35 (3) Resident unmarried individuals, resident married individuals
36 filing separate returns and resident estates and trusts. The tax under
37 this section for each taxable year on the city taxable income of every
38 city resident individual who is not a married individual who makes a
39 single return jointly with his or her spouse under subdivision (b) of
40 section 11-1751 of this chapter or a city resident head of a household
41 or a city resident surviving spouse, and on the city taxable income of
42 every city resident estate and trust shall be determined in accordance
43 with the following tables:
44 (A) For taxable years beginning after two thousand fourteen:
45 If the city taxable income is:The tax is:
46 Not over $12,0002.55% of the city taxable income
47 Over $12,000 but not$306 plus 3.1% of excess
48 over $25,000over $12,000
49 Over $25,000 but not$709 plus 3.15% of excess
A. 6009 9
1 over $50,000over $25,000
2 Over $50,000 but not$1,497 plus 3.2% of excess
3 over $500,000over $50,000
4 Over $500,000$16,891 plus 3.4% of excess
5 over $500,000
6 (B) For taxable years beginning after two thousand nine and before two
7 thousand fifteen:
8 If the city taxable income is: The tax is:
9 Not over $12,000 2.55% of the city taxable income
10 Over $12,000 but not $306 plus 3.1% of excess
11 over $25,000 over $12,000
12 Over $25,000 but not $709 plus 3.15% of excess
13 over $50,000 over $25,000
14 Over $50,000 but not $1,497 plus 3.2% of excess
15 over $500,000 over $50,000
16 Over $500,000 $15,897 plus 3.4% of excess
17 over $500,000
18 [(B) For taxable years beginning in two thousand one and two thousand
19 two and for taxable years beginning after two thousand five and before
20 two thousand ten:
21 If the city taxable income is: The tax is:
22 Not over $12,000 2.55% of the city taxable income
23 Over $12,000 but not $306 plus 3.1% of excess
24 over $25,000 over $12,000
25 Over $25,000 but not $709 plus 3.15% of excess
26 over $50,000 over $25,000
27 Over $50,000 $1,497 plus 3.2% of excess
28 over $50,000]
29 § 4. Notwithstanding any provision of law to the contrary, the method
30 of determining the amount to be deducted and withheld from wages on
31 account of taxes imposed by or pursuant to the authority of article 30
32 of the tax law in connection with the implementation of the provisions
33 of this act shall be prescribed by regulations of the commissioner of
34 taxation and finance with due consideration to the effect such withhold-
35 ing tables and methods would have on the receipt and amount of revenue.
36 The commissioner of taxation and finance shall adjust such withholding
37 tables and methods in regard to taxable years beginning in 2015 and
38 after in such manner as to result, so far as practicable, in withholding
39 from an employee's wages an amount substantially equivalent to the tax
40 reasonably estimated to be due for such taxable years as a result of the
41 provisions of this act. Provided, however, for tax year 2015 the with-
42 holding tables shall reflect as accurately as practicable the full
43 amount of tax year 2015 liability so that such amount is withheld by
44 December 31, 2015. Any such regulations to implement a change in with-
45 holding tables and methods for tax year 2015 shall be adopted and effec-
46 tive as soon as practicable and the commissioner may adopt such regu-
47 lations on an emergency basis notwithstanding anything to the contrary
48 in section 202 of the state administrative procedure act. In carrying
49 out his or her duties and responsibilities under this section, the
50 commissioner of taxation and finance may accompany such a rule making
51 procedure with a similar procedure with respect to the taxes required to
52 be deducted and withheld by local laws imposing taxes pursuant to the
A. 6009 10
1 authority of articles 30, 30-A and 30-B of the tax law, the provisions
2 of any other law in relation to such a procedure to the contrary
3 notwithstanding.
4 § 5. 1. Notwithstanding any provision of law to the contrary, no addi-
5 tion to tax shall be imposed for failure to pay the estimated tax in
6 subsection (c) of section 685 of the tax law and subdivision (c) of
7 section 11-1785 of the administrative code of the city of New York with
8 respect to any underpayment of a required installment due prior to, or
9 within thirty days of, the effective date of this act to the extent that
10 such underpayment was created or increased by the amendments made by
11 this act, provided, however, that the taxpayer remits the amount of any
12 underpayment prior to or with his or her next quarterly estimated tax
13 payment.
14 2. The commissioner of taxation and finance shall take steps to publi-
15 cize the necessary adjustments to estimated tax and, to the extent
16 reasonably possible, to inform the taxpayer of the tax liability changes
17 made by this act.
18 § 6. This act shall take effect immediately.
19 PART C
20 Section 1. The opening paragraph of paragraph (f) of subdivision 3 of
21 section 425 of the real property tax law, as added by section 1 of part
22 B of chapter 59 of the laws of 2012, is amended to read as follows:
23 Compliance with state tax obligations. [The] A property shall not be
24 eligible [property's eligibility] for the STAR exemption [must not be]
25 if the property's eligibility has been suspended pursuant to section one
26 hundred seventy-one-y of the tax law due to the past-due state tax
27 liabilities of one or more of its owners. Notwithstanding any provision
28 of law to the contrary, where a property's eligibility for a STAR
29 exemption has been suspended pursuant to such section, the following
30 provisions shall be applicable:
31 § 2. Intentionally omitted.
32 § 3. Section 3 of part B of chapter 59 of the laws of 2012, amending
33 the real property tax law and the tax law relating to suspension of STAR
34 exemptions of property owned by persons with outstanding tax liabil-
35 ities, is amended to read as follows:
36 § 3. This act shall take effect immediately [and shall apply to the
37 administration of the STAR exemption authorized by section 425 of the
38 real property tax law for the 2013-2014, 2014-2015 and 2015-2016 school
39 years].
40 § 4. This act shall take effect immediately.
41 PART D
42 Intentionally omitted
43 PART E
44 Section 1. Section 425 of the real property tax law is amended by
45 adding a new subdivision 15 to read as follows:
46 15. Recoupment of exemptions by commissioner. (a) Generally. If the
47 commissioner should determine, based upon data collected under the STAR
48 registration program, that property improperly received the basic STAR
49 exemption on one or more of the six preceding assessment rolls, the
50 commissioner shall treat the exemption as an improperly granted
A. 6009 11
1 exemption and proceed in the manner provided by this subdivision;
2 provided that final assessment rolls that were filed prior to April
3 first, two thousand eleven shall not be subject to the provisions of
4 this subdivision.
5 (b) Procedure. The tax savings attributable to each such improperly
6 granted exemption shall be collected from the owners whose property
7 improperly received the exemption for the applicable year with interest
8 as specified in this subdivision, by utilizing any of the procedures for
9 collection, levy, and lien of personal income tax set forth in article
10 twenty-two of the tax law, any other relevant procedures referenced
11 within the provisions of that article, and any other law as may be
12 applicable, so far as practicable when recouping the exemption amount
13 pursuant to this subdivision, except that:
14 (i) prior to directing that an improperly granted exemption be
15 recouped pursuant to this subdivision, the commissioner shall provide
16 the owners with notice and an opportunity to show the commissioner that
17 the exemption was properly granted. If the owners fail to respond to
18 such notice within forty-five days from the mailing thereof, or if their
19 response does not show to the commissioner's satisfaction that the
20 eligibility requirements were in fact satisfied, the commissioner shall
21 proceed with the recoupment of the improperly granted exemption in
22 accordance with the provisions of this subdivision; and
23 (ii) notwithstanding the provisions of paragraph (b) of subdivision
24 six of this section, neither an assessor nor a board of assessment
25 review has the authority to consider an objection to the recoupment of
26 an exemption pursuant to this subdivision, nor may such an action be
27 reviewed in a proceeding to review an assessment pursuant to title one
28 or one-A of article seven of this chapter. Such an action may only be
29 challenged before the department. If an owner is dissatisfied with the
30 department's final determination, the owner may appeal that determi-
31 nation to the board in a form and manner to be prescribed by the commis-
32 sioner. Such appeal shall be filed within forty-five days from the issu-
33 ance of the department's final determination. If dissatisfied with the
34 board's determination, the owner may seek judicial review thereof pursu-
35 ant to article seventy-eight of the civil practice law and rules. The
36 owner shall otherwise have no right to challenge such final determi-
37 nation in a court action, administrative proceeding, including but not
38 limited to an administrative proceeding pursuant to article forty of the
39 tax law, or any other form of legal recourse against the commissioner,
40 the department, the board, the assessor, or any other person, state
41 agency, or local government.
42 (c) The amount to be recouped for each improperly received exemption
43 shall have interest added at the rate prescribed by section nine hundred
44 twenty-four-a of this chapter or such other law as may be applicable for
45 each month or portion thereof since the levy of school taxes upon such
46 assessment roll.
47 (d) In the event that a revocation of prior exemption pursuant to
48 subdivision twelve of this section or a voluntary renunciation of the
49 STAR exemption pursuant to section four hundred ninety-six of this chap-
50 ter has occurred, the provisions of this subdivision shall not be appli-
51 cable to the exemptions so revoked or voluntarily renounced.
52 § 2. This act shall take effect immediately.
53 PART F
A. 6009 12
1 Section 1. Subdivision 3 of section 97-rrr of the state finance law,
2 as amended by section 8 of part F of chapter 109 of the laws of 2006, is
3 amended to read as follows:
4 3. The monies in such fund shall be appropriated for school property
5 tax exemptions [and local property tax rebates] granted pursuant to the
6 real property tax law [and the tax law] and payable pursuant to section
7 [thirty-six hundred nine] thirty-six hundred nine-e of the education
8 law, and for payments to the city of New York pursuant to section
9 fifty-four-f of this chapter[, and pursuant to section one hundred
10 seventy-eight of the tax law].
11 § 2. One-time relief for unenrolled registrants. (1) As used in this
12 section, the term "unenrolled registrant" means a person who purchased
13 or otherwise acquired a primary residence after the taxable status date
14 for the 2013 assessment roll and who registered that property with the
15 commissioner of taxation and finance in accordance with subdivision 14
16 of section 425 of the real property tax law on or before the taxable
17 status date for the 2014 assessment roll, but who failed to file an
18 application for the STAR exemption for that property in accordance with
19 subdivision 6 of section 425 of the real property tax law on or before
20 the taxable status date for the 2014 assessment roll.
21 (2) If the commissioner of taxation and finance is informed on or
22 before October 1, 2015, that an owner of property is an unenrolled
23 registrant, and if such commissioner finds that the unenrolled regis-
24 trant's property would have qualified for the STAR exemption authorized
25 by section 425 of the real property tax law on the 2014 assessment roll
26 if a completed application had been filed with the appropriate assessor
27 in a timely manner, then the commissioner of taxation and finance is
28 authorized to remit directly to the property owner or owners the tax
29 savings that the STAR exemption would have yielded if the STAR exemption
30 had been granted on the 2014 assessment roll. When remitting such
31 amount, the commissioner of taxation and finance shall advise the prop-
32 erty owner or owners that such payment is subject to recovery by such
33 commissioner if the property owner or owners do not apply for and quali-
34 fy for the STAR exemption on the 2015 assessment roll, or if it should
35 otherwise be found to have been erroneously remitted to such property
36 owner or owners.
37 (3) The amounts payable under this act shall be paid from the account
38 established for the payment of STAR benefits to late registrants pursu-
39 ant to subparagraph (iii) of paragraph (a) of subdivision 14 of section
40 425 of the real property tax law.
41 (4) The provisions of part 6 of article 22 of the tax law relating to
42 the collection of a tax imposed by such article that has been assessed
43 and remains unpaid shall apply to the recovery authorized by subdivision
44 two of this section of a payment found to have been erroneously made
45 pursuant to this act to an ineligible property owner or owners in the
46 same manner and with the same force and effect as if the language of
47 such article had been incorporated in full into this act except to the
48 extent that any provision of such article is either inconsistent with a
49 provision of this act or is not relevant to this act as determined by
50 the commissioner of taxation and finance. Furthermore, for purposes of
51 applying the provisions of part 6 of article 22 of the tax law, where
52 the terms "tax" and "taxes" appear in such article, such terms shall be
53 construed to mean "a payment or payments erroneously made pursuant to
54 this act to an ineligible property owner or owners".
55 § 3. This act shall take effect immediately.
A. 6009 13
1 PART G
2 Section 1. Section 606 of the tax law is amended by adding a new
3 subsection (e-3) to read as follows:
4 (e-3) Real property tax relief credit. (1) For purposes of this
5 subsection:
6 (A) "Qualified taxpayer" means a resident individual of the state who
7 has occupied the same residence for six months or more of the taxable
8 year as his or her primary residence, and is required or chooses to file
9 a return under this article.
10 (B) "Qualified gross income" means the adjusted gross income of the
11 qualified taxpayer for the taxable year as reported for federal income
12 tax purposes, or which would be reported as adjusted gross income if a
13 federal income tax return were required to be filed. In computing quali-
14 fied gross income, the net amount of loss reported on Federal Schedule
15 C, D, E, or F shall not exceed three thousand dollars per schedule. In
16 addition, the net amount of any other separate category of loss shall
17 not exceed three thousand dollars. The aggregate amount of all losses
18 included in computing qualified gross income shall not exceed fifteen
19 thousand dollars.
20 (C) "Residence" means a dwelling in this state owned or rented by the
21 taxpayer and used by the taxpayer as his or her primary residence, and
22 so much of the land abutting it, not exceeding one acre, as is reason-
23 ably necessary for use of the dwelling as a home, and may consist of a
24 part of a multi-dwelling or multi-purpose building including a cooper-
25 ative or condominium, and rental units within a single dwelling. Resi-
26 dence includes a trailer or mobile home, used exclusively for residen-
27 tial purposes and defined as real property pursuant to paragraph (g) of
28 subdivision twelve of section one hundred two of the real property tax
29 law.
30 (D) "Qualifying real property taxes" means all real property taxes,
31 special ad valorem levies and special assessments, exclusive of penal-
32 ties and interest, levied by a taxing jurisdiction on the residence
33 owned and occupied by a qualified taxpayer and paid by the qualified
34 taxpayer during the taxable year, provided that to the extent the total
35 amount of real property taxes so paid includes school district taxes,
36 the amount of the school tax relief (STAR) credit claimed pursuant to
37 subsection (ccc) of this section, if any, shall be deducted from such
38 amount.
39 (i) For tax year two thousand fifteen: (a) only real property taxes
40 levied by school districts shall constitute qualifying real property
41 taxes; and (b) for property owners with a qualifying residence located
42 in a city containing a school district which is subject to article
43 fifty-two of the education law to account for the fact that the school
44 district is fiscally dependent upon the city, real property taxes levied
45 by such school districts shall be determined by multiplying total real
46 property taxes levied by a taxing jurisdiction and paid during the taxa-
47 ble year by sixty-seven percent, or, in a city with a population of one
48 million or more, by fifty percent.
49 (ii) However, real property taxes, special ad valorem levies, and
50 special assessments levied by a city with a population of one million or
51 more shall constitute qualifying real property taxes only if taxes
52 levied in the state outside such city are required for purposes of this
53 credit to be levied by taxing jurisdictions.
54 A qualified taxpayer may elect to include any additional amount that
55 would have been levied by a taxing jurisdiction and paid by the quali-
A. 6009 14
1 fied taxpayer in the absence of an exemption from real property taxation
2 pursuant to section four hundred sixty-seven of the real property tax
3 law. If tenant-stockholders in a cooperative housing corporation have
4 met the requirements of section two hundred sixteen of the internal
5 revenue code by which they are allowed a deduction for real estate
6 taxes, the amount of taxes so allowable, or which would be allowable if
7 the taxpayer had filed returns on a cash basis, shall be qualifying real
8 property taxes. If a residence is an integral part of a larger unit,
9 qualifying real property taxes shall be limited to that amount of such
10 taxes paid as may be reasonably apportioned to such residence. If a
11 taxpayer owns and occupies two residences during different periods in
12 the same taxable year, qualifying real property taxes shall be the sum
13 of the prorated qualifying real property taxes attributable to the
14 taxpayer during the periods such taxpayer occupies each of such resi-
15 dences. If the taxpayer owns and occupies a residence for part of the
16 taxable year and rents a residence for part of the same taxable year, it
17 may include the proration of qualifying real property taxes on the resi-
18 dence owned. Provided, however, for purposes of the credit allowed under
19 this subsection, qualifying real property taxes may be included by a
20 qualified taxpayer only to the extent that such taxpayer or the spouse
21 of such taxpayer, occupying such residence for one hundred eighty-three
22 days or more of the taxable year, owns or has owned the residence and
23 paid such taxes.
24 (E) "Real property tax equivalent" means thirteen and three-quarters
25 percent of the adjusted rent actually paid in the taxable year by a
26 taxpayer solely for the right of occupancy of its New York residence for
27 the taxable year. If a residence is rented to two or more individuals as
28 cotenants, or such individuals share in the payment of a single rent for
29 the right of occupancy of such residence, one or more of which individ-
30 uals shares such residence, real property tax equivalent is that portion
31 of thirteen and three-quarters percent of the adjusted rent paid in the
32 taxable year that reflects that portion of the rent attributable to the
33 qualified taxpayer. For taxable years beginning on or after January
34 first, two thousand fifteen and before January first, two thousand
35 sixteen, the real property tax equivalent shall be equal to sixty-six
36 percent of the real property tax equivalent as otherwise defined in this
37 paragraph.
38 (F) "Adjusted rent" means rental paid for the right of occupancy of a
39 residence, excluding charges for heat, gas, electricity, furnishings and
40 board. Where charges for heat, gas, electricity, furnishings or board
41 are included in rental but where such charges and the amount thereof are
42 not separately set forth in a written rental agreement, for purposes of
43 determining adjusted rent the qualified taxpayer shall reduce rental
44 paid as follows:
45 (i) For heat, or heat and gas, deduct six percent of rental paid.
46 (ii) For heat, gas and electricity, deduct eight percent of rental
47 paid.
48 (iii) For heat, gas, electricity and furnishings, deduct ten percent
49 of rental paid.
50 (iv) For heat, gas, electricity, furnishings and board, deduct twenty
51 percent of rental paid.
52 (G) "Excess real property tax" means the excess of qualifying real
53 property taxes or the excess of real property tax equivalent over the
54 following percentage of qualified gross income:
55 For the years beginning in:Percentage:
56 20153.75%
A. 6009 15
1 2016 and after6.0%
2 (2) A qualified taxpayer shall be allowed a credit as provided in
3 paragraph three of this subsection against the taxes imposed by this
4 article. If the credit exceeds the tax for such year under this article,
5 the excess shall be treated as an overpayment, to be credited or
6 refunded, without interest. If a qualified taxpayer is not required to
7 file a return pursuant to section six hundred fifty-one of this article,
8 a qualified taxpayer may nevertheless receive the full amount of the
9 credit to be credited or repaid as an overpayment, without interest.
10 (3) Determination of credit. (A) For taxable years beginning on or
11 after January first, two thousand fifteen and before January first, two
12 thousand sixteen, the credit amount allowed under this subsection shall
13 equal the applicable percentage of the excess real property tax, calcu-
14 lated as follows:
15 (i) For qualified taxpayers whose qualified gross income is seventy-
16 five thousand dollars or less, the applicable percentage shall be four-
17 teen percent.
18 (ii) For qualified taxpayers whose qualified gross income is greater
19 than seventy-five thousand dollars but less than or equal to one hundred
20 fifty thousand dollars, the applicable percentage shall be the differ-
21 ence between (a) fourteen percent and (b) five percent multiplied by a
22 fraction, the numerator of which is the difference between the qualified
23 taxpayer's qualified gross income as defined by this subsection and
24 seventy-five thousand dollars, and the denominator of which is seventy-
25 five thousand dollars.
26 (iii) For qualified taxpayers whose qualified gross income is greater
27 than one hundred fifty thousand dollars but less than or equal to two
28 hundred fifty thousand dollars, the applicable percentage shall be the
29 difference between (a) nine percent and (b) six percent multiplied by a
30 fraction, the numerator of which is the difference between the qualified
31 taxpayer's qualified gross income and one hundred fifty thousand
32 dollars, and the denominator of which is one hundred thousand dollars.
33 (B) For taxable years beginning on or after January first, two thou-
34 sand sixteen and before January first, two thousand seventeen, the cred-
35 it amount allowed under this subsection shall equal the applicable
36 percentage of the excess real property tax, calculated as follows:
37 (i) For qualified taxpayers whose qualified gross income equals seven-
38 ty-five thousand dollars or less, the applicable percentage shall be
39 twenty-three percent.
40 (ii) For qualified taxpayers whose qualified gross income is greater
41 than seventy-five thousand dollars but less than or equal to one hundred
42 fifty thousand dollars, the applicable percentage shall be the differ-
43 ence between (a) twenty-three percent and (b) ten percent multiplied by
44 a fraction, the numerator of which is the difference between the quali-
45 fied taxpayer's qualified gross income and seventy-five thousand
46 dollars, and the denominator of which is seventy-five thousand dollars.
47 (iii) For qualified taxpayers whose qualified gross income is greater
48 than one hundred fifty thousand dollars but less than or equal to two
49 hundred fifty thousand dollars, the applicable percentage shall be the
50 difference between (a) thirteen percent and (b) six percent multiplied
51 by a fraction, the numerator of which is the difference between the
52 qualified taxpayer's qualified gross income and one hundred fifty thou-
53 sand dollars, and the denominator of which is one hundred thousand
54 dollars.
55 (C) For taxable years beginning on or after January first, two thou-
56 sand seventeen and before January first, two thousand eighteen, the
A. 6009 16
1 credit amount allowed under this subsection shall equal the applicable
2 percentage of the excess real property tax, calculated as follows:
3 (i) For qualified taxpayers whose qualified gross income is seventy-
4 five thousand dollars or less, the applicable percentage shall be thir-
5 ty-six percent.
6 (ii) For qualified taxpayers whose qualified gross income is greater
7 than seventy-five thousand dollars but less than or equal to one hundred
8 fifty thousand dollars, the applicable percentage shall be the differ-
9 ence between (a) thirty-six percent and (b) nine percent multiplied by a
10 fraction, the numerator of which is the difference between the qualified
11 taxpayer's qualified gross income and seventy-five thousand dollars, and
12 the denominator of which is seventy-five thousand dollars.
13 (iii) For qualified taxpayers whose qualified gross income is greater
14 than one hundred fifty thousand dollars but less than or equal to two
15 hundred fifty thousand dollars, the applicable percentage shall be the
16 difference between (a) twenty-seven percent and (b) seventeen percent
17 multiplied by a fraction, the numerator of which is the difference
18 between the qualified taxpayer's qualified gross income and one hundred
19 fifty thousand dollars, and the denominator of which is one hundred
20 thousand dollars.
21 (D) For taxable years beginning on or after January first, two thou-
22 sand eighteen, the credit amount allowed under this subsection shall
23 equal the applicable percentage of the excess real property tax, calcu-
24 lated as follows:
25 (i) For qualified taxpayers whose qualified gross income is seventy-
26 five thousand dollars or less, the applicable percentage shall be fifty
27 percent.
28 (ii) For qualified taxpayers whose qualified gross income is greater
29 than seventy-five thousand dollars but less than or equal to one hundred
30 fifty thousand dollars, the applicable percentage shall be the differ-
31 ence between (a) fifty percent and (b) ten percent multiplied by a frac-
32 tion, the numerator of which is the difference between the qualified
33 taxpayer's qualified gross income and seventy-five thousand dollars, and
34 the denominator of which is seventy-five thousand dollars.
35 (iii) For qualified taxpayers whose qualified gross income is greater
36 than one hundred fifty thousand dollars but less than or equal to two
37 hundred fifty thousand dollars, the applicable percentage shall be the
38 difference between (a) forty percent and (b) twenty-five percent multi-
39 plied by a fraction, the numerator of which is the difference between
40 the qualified taxpayer's qualified gross income and one hundred fifty
41 thousand dollars, and the denominator of which is one hundred thousand
42 dollars.
43 (4) Maximum credit for property owners. Notwithstanding the provisions
44 of paragraph three of this subsection, the maximum credit determined
45 under such paragraph, and thereby allowed under this subsection, shall
46 not exceed the amount calculated under this paragraph, for each respec-
47 tive year as indicated.
48 (A) For taxable years beginning on or after January first, two thou-
49 sand fifteen and before January first, two thousand sixteen, the maximum
50 credit amount allowed under this subsection shall be calculated as
51 follows:
52 (i) For qualified taxpayers whose qualified gross income is seventy-
53 five thousand dollars or less, the maximum credit allowed shall be five
54 hundred dollars.
55 (ii) For qualified taxpayers whose qualified gross income is greater
56 than seventy-five thousand dollars but less than or equal to one hundred
A. 6009 17
1 fifty thousand dollars, the maximum credit allowed shall be the differ-
2 ence between (a) five hundred dollars and (b) one hundred fifty dollars
3 multiplied by a fraction, the numerator of which is the difference
4 between the qualified taxpayer's qualified gross income and seventy-five
5 thousand dollars, and the denominator of which is seventy-five thousand
6 dollars.
7 (iii) For qualified taxpayers whose qualified gross income is greater
8 than one hundred fifty thousand dollars but less than or equal to two
9 hundred fifty thousand dollars, the maximum credit allowed shall be the
10 difference between (a) three hundred fifty dollars and (b) one hundred
11 fifty dollars multiplied by a fraction, the numerator of which is the
12 difference between the qualified taxpayer's qualified gross income and
13 one hundred fifty thousand dollars, and the denominator of which is one
14 hundred thousand dollars.
15 (B) For taxable years beginning on or after January first, two thou-
16 sand sixteen and before January first, two thousand seventeen, the maxi-
17 mum credit amount allowed under this subsection shall be calculated as
18 follows:
19 (i) For qualified taxpayers whose qualified gross income is seventy-
20 five thousand dollars or less, the maximum credit allowed shall be one
21 thousand dollars.
22 (ii) For qualified taxpayers whose qualified gross income is greater
23 than seventy-five thousand dollars but less than or equal to one hundred
24 fifty thousand dollars, the maximum credit allowed shall be the differ-
25 ence between (a) one thousand dollars and (b) two hundred fifty dollars
26 multiplied by a fraction, the numerator of which is the difference
27 between the qualified taxpayer's qualified gross income and seventy-five
28 thousand dollars, and the denominator of which is seventy-five thousand
29 dollars.
30 (iii) For qualified taxpayers whose qualified gross income is greater
31 than one hundred fifty thousand dollars but less than or equal to two
32 hundred fifty thousand dollars, the maximum credit allowed shall be the
33 difference between (a) seven hundred fifty dollars and (b) two hundred
34 fifty dollars multiplied by a fraction, the numerator of which is the
35 difference between the qualified taxpayer's qualified gross income and
36 one hundred fifty thousand dollars, and the denominator of which is one
37 hundred thousand dollars.
38 (C) For taxable years beginning on or after January first, two thou-
39 sand seventeen and before January first, two thousand eighteen, the
40 maximum credit amount allowed under this subsection shall be calculated
41 as follows:
42 (i) For qualified taxpayers whose qualified gross income is seventy-
43 five thousand dollars or less, the maximum credit allowed shall be one
44 thousand six hundred dollars.
45 (ii) For qualified taxpayers whose qualified gross income is greater
46 than seventy-five thousand dollars but less than or equal to one hundred
47 fifty thousand dollars, the maximum credit allowed shall be the differ-
48 ence between (a) one thousand six hundred dollars and (b) four hundred
49 dollars multiplied by a fraction, the numerator of which is the differ-
50 ence between the qualified taxpayer's qualified gross income and seven-
51 ty-five thousand dollars, and the denominator of which is seventy-five
52 thousand dollars.
53 (iii) For qualified taxpayers whose qualified gross income is greater
54 than one hundred fifty thousand dollars but less than or equal to two
55 hundred fifty thousand dollars, the maximum credit allowed shall be the
56 difference between (a) one thousand two hundred dollars and (b) four
A. 6009 18
1 hundred dollars multiplied by a fraction, the numerator of which is the
2 difference between the qualified taxpayer's qualified gross income and
3 one hundred fifty thousand dollars, and the denominator of which is one
4 hundred thousand dollars.
5 (D) For taxable years beginning on or after January first, two thou-
6 sand eighteen, the maximum credit amount allowed under this subsection
7 shall be calculated as follows:
8 (i) For qualified taxpayers whose qualified gross income equals seven-
9 ty-five thousand dollars or less, the maximum credit allowed shall be
10 two thousand dollars.
11 (ii) For qualified taxpayers whose qualified gross income is greater
12 than seventy-five thousand dollars but less than or equal to one hundred
13 fifty thousand dollars, the maximum credit allowed shall be the differ-
14 ence between (a) two thousand dollars and (b) five hundred dollars
15 multiplied by a fraction, the numerator of which is the difference
16 between the qualified taxpayer's qualified gross income and seventy-five
17 thousand dollars, and the denominator of which is seventy-five thousand
18 dollars.
19 (iii) For qualified taxpayers whose qualified gross income is greater
20 than one hundred fifty thousand dollars but less than or equal to two
21 hundred fifty thousand dollars, the maximum credit allowed shall be the
22 difference between (a) one thousand five hundred dollars and (b) five
23 hundred dollars multiplied by a fraction, the numerator of which is the
24 difference between the qualified taxpayer's qualified gross income and
25 one hundred fifty thousand dollars, and the denominator of which is one
26 hundred thousand dollars.
27 (5) Maximum credit for tenants. Notwithstanding the provisions of
28 paragraph three of this subsection, for a qualified taxpayer who paid
29 rent on his or her qualifying residence the maximum credit determined
30 under paragraph three of this subsection, and thereby allowed under this
31 subsection, shall not exceed the amount calculated under this paragraph,
32 for each respective year as indicated.
33 (A) For taxable years beginning on or after January first, two thou-
34 sand fifteen and before January first, two thousand sixteen and qualify-
35 ing residences located in:
36 (i) the city of New York, and the counties of Nassau, Suffolk, Rock-
37 land, Westchester, Putnam, Orange and Dutchess, the maximum credit
38 allowed shall be two hundred dollars;
39 (ii) all other counties in the state, the maximum credit allowed shall
40 be one hundred fifty dollars.
41 (B) For taxable years beginning on or after January first, two thou-
42 sand sixteen and before January first, two thousand seventeen and quali-
43 fying residences located in:
44 (i) the city of New York, and the counties of Nassau, Suffolk, Rock-
45 land, Westchester, Putnam, Orange and Dutchess, the maximum credit
46 allowed shall be five hundred dollars;
47 (ii) all other counties in the state, the maximum credit allowed shall
48 be three hundred seventy-five dollars.
49 (C) For taxable years beginning on or after January first, two thou-
50 sand seventeen and before January first, two thousand eighteen and qual-
51 ifying residences located in:
52 (i) the city of New York, and the counties of Nassau, Suffolk, Rock-
53 land, Westchester, Putnam, Orange and Dutchess, the maximum credit
54 allowed shall be six hundred fifty dollars;
55 (ii) all other counties in the state, the maximum credit allowed shall
56 be four hundred fifty dollars.
A. 6009 19
1 (D) For taxable years beginning on or after January first, two thou-
2 sand eighteen and qualifying residences located in:
3 (i) the city of New York, and the counties of Nassau, Suffolk, Rock-
4 land, Westchester, Putnam, Orange and Dutchess, the maximum credit
5 allowed shall be seven hundred fifty dollars;
6 (ii) all other counties in the state, the maximum credit shall be five
7 hundred dollars.
8 (6) If a qualified taxpayer occupies a residence for a period of less
9 than twelve months during the taxable year or occupies two residences
10 during different periods in such taxable year, the credit allowed pursu-
11 ant to this subsection shall be computed in such manner as the commis-
12 sioner may, by regulation, prescribe in order to properly reflect the
13 credit or portion thereof attributable to such residence or residences
14 and such period or periods.
15 (7) The commissioner may prescribe that the credit under this
16 subsection shall be determined in whole or in part by the use of tables
17 prescribed by such commissioner. Such tables shall set forth the credit
18 to the nearest dollar.
19 (8) No credit shall be granted under this subsection:
20 (A) To a property owner if qualified gross income for the taxable year
21 exceeds two hundred fifty thousand dollars.
22 (B) To a tenant if qualified gross income for the taxable year exceeds
23 one hundred fifty thousand dollars.
24 (C) To a property owner unless: (i) the property is used for residen-
25 tial purposes; (ii) not more than twenty percent of the rental income,
26 if any, from the property is from rental for nonresidential purposes;
27 and (iii) the property is occupied as a residence in whole or in part by
28 one or more of the owners of the property.
29 (D) To an individual with respect to whom a deduction under subsection
30 (c) of section one hundred fifty-one of the internal revenue code is
31 allowable to another taxpayer for the taxable year.
32 (E) With respect to a residence that is wholly exempted from real
33 property taxation.
34 (F) To an individual who is not a resident individual of the state for
35 the entire taxable year.
36 (9) The right to claim a credit or the portion of a credit, where such
37 credit has been divided under this subsection, shall be personal to the
38 qualified taxpayer and shall not survive his or her death, but such
39 right may be exercised on behalf of a claimant by his or her legal guar-
40 dian or attorney in fact during his or her lifetime.
41 (10) If a qualified taxpayer is not required to file a return pursuant
42 to section six hundred fifty-one of this article, a claim for a credit
43 may be taken on a return filed with the commissioner within three years
44 from the time it would have been required that a return be filed pursu-
45 ant to such section had the qualified taxpayer had a taxable year ending
46 on December thirty-first. Returns under this paragraph shall be in such
47 form as shall be prescribed by the commissioner, who shall make avail-
48 able such forms and instructions for filing such returns.
49 (11) The commissioner may require a qualified taxpayer to furnish the
50 following information in support of his or her claim for credit under
51 this subsection: qualified gross income; real property taxes levied or
52 that would have been levied in the absence of an exemption from real
53 property tax pursuant to section four hundred sixty-seven of the real
54 property tax law; and all other information which may be required by the
55 commissioner to determine the credit.
A. 6009 20
1 (12) The provisions of this article, including the provisions of
2 sections six hundred fifty-three, six hundred fifty-eight, and six
3 hundred fifty-nine of this article and the provisions of part six of
4 this article relating to procedure and administration, including the
5 judicial review of the decisions of the commissioner, except so much of
6 section six hundred eighty-seven of this article which permits a claim
7 for credit or refund to be filed after the period provided for in para-
8 graph nine of this subsection and except sections six hundred fifty-sev-
9 en, six hundred eighty-eight and six hundred ninety-six of this article,
10 shall apply to the provisions of this subsection in the same manner and
11 with the same force and effect as if the language of those provisions
12 had been incorporated in full into this subsection and had expressly
13 referred to the credit allowed or returns filed under this subsection,
14 except to the extent that any such provision is either inconsistent with
15 a provision of this subsection or is not relevant to this subsection. As
16 used in such sections and such part, the term "taxpayer" shall include a
17 qualified taxpayer under this subsection and, notwithstanding the
18 provisions of subsection (e) of section six hundred ninety-seven of this
19 article, where a qualified taxpayer has protested the denial of a claim
20 for credit under this subsection and the time to file a petition for
21 redetermination of a deficiency or for refund has not expired, he or she
22 shall, subject to such conditions as may be set by the commissioner,
23 receive such information which the commissioner finds is relevant and
24 material to the issue of whether such claim was properly denied.
25 (13) The commissioner shall prepare on an annual basis a tax credit
26 report for posting on the department's website. The first report will be
27 due June thirtieth, two thousand sixteen, and every twelve months there-
28 after. Such report shall include, but not be limited to the number of
29 credits and the average amount of such credits allowed; and of those,
30 the number of credits and the average amount of such credits allowed to
31 qualified taxpayers in each county; and of those, the number of credits
32 and the average amount of such credits allowed to qualified taxpayers
33 whose qualified gross income falls within each of the qualified gross
34 income ranges set forth in this subsection.
35 (14) In the case of a taxpayer who has itemized deductions from feder-
36 al adjusted gross income, and whose federal itemized deductions include
37 an amount for real estate taxes paid, the New York itemized deduction
38 otherwise allowable under section six hundred fifteen of this chapter
39 shall be reduced by the amount of the credit claimed under this
40 subsection.
41 § 2. This act shall take effect immediately and shall apply to taxable
42 years beginning on or after January 1, 2015.
43 PART H
44 Section 1. Subsection (g) of section 615 of the tax law, as amended by
45 section 1 of part D of chapter 59 of the laws of 2013, is amended to
46 read as follows:
47 (g)(1) With respect to an individual whose New York adjusted gross
48 income is over one million dollars and no more than ten million dollars,
49 the New York itemized deduction shall be an amount equal to fifty
50 percent of any charitable contribution deduction allowed under section
51 one hundred seventy of the internal revenue code for taxable years
52 beginning after two thousand nine [and before two thousand sixteen].
53 With respect to an individual whose New York adjusted gross income is
54 over one million dollars, the New York itemized deduction shall be an
A. 6009 21
1 amount equal to fifty percent of any charitable contribution deduction
2 allowed under section one hundred seventy of the internal revenue code
3 for taxable years beginning in two thousand nine [or after two thousand
4 fifteen].
5 (2) With respect to an individual whose New York adjusted gross income
6 is over ten million dollars, the New York itemized deduction shall be an
7 amount equal to twenty-five percent of any charitable contribution
8 deduction allowed under section one hundred seventy of the internal
9 revenue code for taxable years beginning after two thousand nine [and
10 ending before two thousand sixteen].
11 § 2. Subdivision (g) of section 11-1715 of the administrative code of
12 the city of New York, as added by section 2 of part D of chapter 59 of
13 the laws of 2013, is amended to read as follows:
14 (g) (1) With respect to an individual whose New York adjusted gross
15 income is over one million dollars but no more than ten million dollars,
16 the New York itemized deduction shall be an amount equal to fifty
17 percent of any charitable contribution deduction allowed under section
18 one hundred seventy of the internal revenue code for taxable years
19 beginning after two thousand nine [and before two thousand sixteen].
20 With respect to an individual whose New York adjusted gross income is
21 over one million dollars, the New York itemized deduction shall be an
22 amount equal to fifty percent of any charitable contribution deduction
23 allowed under section one hundred seventy of the internal revenue code
24 for taxable years beginning in two thousand nine [or after two thousand
25 fifteen].
26 (2) With respect to an individual whose New York adjusted gross income
27 is over ten million dollars, the New York itemized deduction shall be an
28 amount equal to twenty-five percent of any charitable contribution
29 deduction allowed under section one hundred seventy of the internal
30 revenue code for taxable years beginning after two thousand nine [and
31 ending before two thousand sixteen].
32 § 3. This act shall take effect immediately.
33 PART I
34 Section 1. Paragraph 41 of subsection (c) of section 612 of the tax
35 law, as added by section 1 of part KK of chapter 59 of the laws of 2014,
36 is amended to read as follows:
37 (41) The amount of any award paid to a volunteer firefighter or volun-
38 teer ambulance worker from a length of service defined contribution plan
39 or defined benefit plan as provided for in articles eleven-A, eleven-AA,
40 eleven-AAA and eleven-AAAA of the general municipal law, to the extent
41 that such award is includable in gross income for federal income tax
42 purposes; provided, however, that such award is not distributed in the
43 form of a lump sum distribution, as defined in subparagraph [(A)] (D) of
44 paragraph four of subsection (e) of section four hundred two of the
45 internal revenue code and taxed under section six hundred three of this
46 article; and provided, further, that such award is not distributed to a
47 taxpayer who has not attained the age of fifty-nine and one-half years.
48 § 2. Paragraph 37 of subdivision (c) of section 11-1712 of the admin-
49 istrative code of the city of New York, as added by section 2 of part KK
50 of chapter 59 of the laws of 2014, is amended to read as follows:
51 (37) The amount of any award paid to a volunteer firefighter or volun-
52 teer ambulance worker from a length of service defined contribution plan
53 or defined benefit plan as provided for in articles eleven-A, eleven-AA,
54 eleven-AAA and eleven-AAAA of the general municipal law, to the extent
A. 6009 22
1 that such award is includable in gross income for federal income tax
2 purposes; provided, however, that such award is not distributed in the
3 form of a lump sum distribution, as defined in subparagraph [(A)] (D) of
4 paragraph four of subsection (e) of section four hundred two of the
5 internal revenue code and taxed under section six hundred three of the
6 tax law; and provided, further, that such award is not distributed to a
7 taxpayer who has not attained the age of fifty-nine and one-half years.
8 § 3. Paragraph 3-a of subsection (c) of section 612 of the tax law, as
9 amended by chapter 760 of the laws of 1992, is amended to read as
10 follows:
11 (3-a) Pensions and annuities received by an individual who has
12 attained the age of fifty-nine and one-half, not otherwise excluded
13 pursuant to paragraph three of this subsection, to the extent includible
14 in gross income for federal income tax purposes, but not in excess of
15 twenty thousand dollars, which are periodic payments attributable to
16 personal services performed by such individual prior to his retirement
17 from employment, which arise (i) from an employer-employee relationship
18 or (ii) from contributions to a retirement plan which are deductible for
19 federal income tax purposes. However, the term "pensions and annuities"
20 shall also include distributions received by an individual who has
21 attained the age of fifty-nine and one-half from an individual retire-
22 ment account or an individual retirement annuity, as defined in section
23 four hundred eight of the internal revenue code, and distributions
24 received by an individual who has attained the age of fifty-nine and
25 one-half from self-employed individual and owner-employee retirement
26 plans which qualify under section four hundred one of the internal
27 revenue code, whether or not the payments are periodic in nature. Never-
28 theless, the term "pensions and annuities" shall not include any lump
29 sum distribution, as defined in subparagraph [(A)] (D) of paragraph four
30 of subsection (e) of section four hundred two of the internal revenue
31 code and taxed under section six hundred three of this article. Where a
32 husband and wife file a joint state personal income tax return, the
33 modification provided for in this paragraph shall be computed as if they
34 were filing separate state personal income tax returns. Where a payment
35 would otherwise come within the meaning of the term "pensions and annui-
36 ties" as set forth in this paragraph, except that such individual is
37 deceased, such payment shall, nevertheless, be treated as a pension or
38 annuity for purposes of this paragraph if such payment is received by
39 such individual's beneficiary.
40 § 4. Subparagraph (B) of paragraph 1 of subsection (e-1) of section
41 606 of the tax law, as added by section 2 of part K of chapter 59 of the
42 laws of 2014, is amended to read as follows:
43 (B) "Household" or "members of the household" means a qualified
44 taxpayer and all other persons, not necessarily related, who have the
45 same residence and share its furnishings, facilities and accommodations.
46 Such terms shall not include a tenant, subtenant, roomer or boarder who
47 is not related to the qualified taxpayer in any degree specified in
48 [paragraphs one through eight of subsection (a)] subparagraphs (A)
49 through (G) of paragraph two of subsection (d) of section one hundred
50 fifty-two of the internal revenue code. Provided, however, no person may
51 be a member of more than one household at one time.
52 § 5. Subparagraph (D) of paragraph 1 of subsection (e-1) of section
53 606 of the tax law, as added by section 2 of part K of chapter 59 of the
54 laws of 2014, is amended to read as follows:
55 (D) "Residence" means a dwelling in this state, in a city with a popu-
56 lation of over one million, owned or rented by the taxpayer, and so much
A. 6009 23
1 of the land abutting it, not exceeding one acre, as is reasonably neces-
2 sary for use of the dwelling as a home, and may consist of a part of a
3 multi-dwelling or multi-purpose building including a cooperative or
4 condominium, and rental units within a single dwelling. Residence
5 includes a trailer or mobile home, used exclusively for residential
6 purposes and defined as real property pursuant to paragraph (g) of
7 subdivision twelve of section one hundred two of the real property tax
8 law.
9 § 6. Subparagraph (B) of paragraph 1 of subsection (e) of section 606
10 of the tax law, as amended by chapter 28 of the laws of 1987, is amended
11 to read as follows:
12 (B) "Household" or "members of the household" means a qualified
13 taxpayer and all other persons, not necessarily related, who have the
14 same residence and share its furnishings, facilities and accommodations.
15 Such terms shall not include a tenant, subtenant, roomer or boarder who
16 is not related to the qualified taxpayer in any degree specified in
17 [paragraphs one through eight of subsection (a)] subparagraphs (A)
18 through (G) of paragraph two of subsection (d) of section one hundred
19 fifty-two of the internal revenue code. Provided, however, no person may
20 be a member of more than one household at one time.
21 § 7. Paragraph 1 of subsection (b) of section 806 of the tax law, as
22 added by section 2 of part DD of chapter 59 of the laws of 2014, is
23 amended to read as follows:
24 (1) The commissioner may require the filing of a combined return
25 which, in addition to the return provided for in subsection (b) of
26 section eight hundred four of this article, may also include any of the
27 returns required to be filed by a [resident individual of New York
28 state] taxpayer pursuant to the provisions of section six hundred
29 fifty-one of this chapter and which may be required to be filed by such
30 [individual] taxpayer pursuant to any local law enacted pursuant to the
31 authority of article thirty, thirty-A or thirty-B of this chapter.
32 § 8. Paragraph 1 and clause (ii) of subparagraph (B) of paragraph 2 of
33 subsection (xx) of section 606 of the tax law, as added by section 4 of
34 part R of chapter 59 of the laws of 2014, are amended to read as
35 follows:
36 (1) A qualified New York manufacturer will be allowed a credit equal
37 to twenty percent of the real property tax it paid during the taxable
38 year for real property owned by such manufacturer in New York which was
39 principally used during the taxable year for manufacturing to the extent
40 not deducted in computing [federal] New York adjusted gross income. This
41 credit will not be allowed if the real property taxes that are the basis
42 for this credit are included in the calculation of another credit
43 claimed by the taxpayer.
44 (ii) In addition, the term real property tax includes taxes paid by
45 the taxpayer upon real property principally used during the taxable year
46 by the taxpayer in manufacturing where the taxpayer leases such real
47 property from an unrelated third party if the following conditions are
48 satisfied: (I) the tax must be paid by the taxpayer as lessee pursuant
49 to explicit requirements in a written lease, and (II) the taxpayer as
50 lessee has paid such taxes directly to the taxing authority and has
51 received a written receipt for payment of taxes from the taxing authori-
52 ty. [In the case of a combined group that constitutes a qualified New
53 York manufacturer, the conditions in the preceding sentence are satis-
54 fied if one corporation in the combined group is the lessee and another
55 corporation in the combined group makes the payments to the taxing
56 authority.]
A. 6009 24
1 § 9. Subsection (yy) of section 606 of the tax law, as added by
2 section 4 of part T of chapter 59 of the laws of 2014, is amended to
3 read as follows:
4 (yy) The tax-free NY area excise tax on telecommunication services
5 credit. A taxpayer that is a business or owner of a business that is
6 located in a tax-free NY area approved pursuant to article twenty-one of
7 the economic development law shall be allowed a credit equal to the
8 excise tax on telecommunication services imposed by section one hundred
9 eighty-six-e of this chapter and passed through to such business during
10 the taxable year to the extent not otherwise deducted in computing
11 [federal] New York adjusted gross income. This credit may be claimed
12 only where any tax imposed by such section one hundred eighty-six-e has
13 been separately stated on a bill from the provider of telecommunication
14 services and paid by such taxpayer with respect to such services
15 rendered within a tax-free NY area during the taxable year. If the
16 amount of the credit allowed under this subsection for any taxable year
17 exceeds the taxpayer's tax for such year, the excess will be treated as
18 an overpayment to be credited or refunded in accordance with the
19 provisions of section six hundred eighty-six of this article, provided,
20 however, that no interest will be paid thereon.
21 § 10. Subparagraph (i) of paragraph 2 of subdivision (b) and subdivi-
22 sion (d) of section 25-b of the labor law, as added by section 1 of part
23 MM of chapter 59 of the laws of 2014, are amended to read as follows:
24 (i) who is deemed to have a developmental disability, as that term is
25 defined in subdivision twenty-two of section 1.03 of the mental hygiene
26 law and who is certified by the education department or the office for
27 people with developmental disabilities[:
28 (A)] as a person with a disability which constitutes or results in a
29 substantial handicap to employment; and
30 [(B) as a person having completed or as receiving services under an
31 individualized written rehabilitation plan approved by the education
32 department or other state agency responsible for providing vocational
33 rehabilitation services to such individual; and]
34 (d) To participate in the [developmentally disabled works] workers
35 with disabilities tax credit program, an employer must submit an appli-
36 cation (in a form prescribed by the commissioner) to the commissioner
37 [no later than November thirtieth of the prior year]. The commissioner
38 shall establish guidelines that specify requirements for employers to
39 participate in the program including criteria for certifying qualified
40 employees. Any regulations that the commissioner determines are neces-
41 sary may be adopted on an emergency basis notwithstanding anything to
42 the contrary in section two hundred two of the state administrative
43 procedure act. Such requirements may include the types of industries
44 that the employers are engaged in.
45 § 11. This act shall take effect immediately, provided, however that:
46 (i) sections one and two of this act shall be deemed to have been in
47 full force and effect on and after the effective date of part KK of
48 chapter 59 of the laws of 2014;
49 (ii) sections four and five of this act shall be deemed to have been
50 in full force and effect on and after the effective date of part K of
51 chapter 59 of the laws of 2014, provided, however, that amendments to
52 subsection (e-1) of section 606 of the tax law made by sections four and
53 five of this act shall not affect the repeal of such subsection and
54 shall be deemed repealed therewith;
A. 6009 25
1 (iii) section seven of this act shall be deemed to have been in full
2 force and effect on and after the effective date of part DD of chapter
3 59 of the laws of 2014;
4 (iv) section eight of this act shall be deemed to have been in full
5 force and effect on and after the effective date of part R of chapter 59
6 of the laws of 2014;
7 (v) section nine of this act shall be deemed to have been in full
8 force and effect on and after the effective date of part T of chapter 59
9 of the laws of 2014;
10 (vi) section ten of this act shall be deemed to have been in full
11 force and effect on and after the effective date of part MM of chapter
12 59 of the laws of 2014; and
13 (vii) the amendments to section 25-b of the labor law made by section
14 ten of this act, shall not affect the repeal of such section and shall
15 be deemed repealed therewith.
16 PART J
17 Section 1. Section 9 of part V of chapter 62 of the laws of 2006,
18 amending the tax law relating to the empire state commercial production
19 tax credit, is REPEALED.
20 § 2. Subdivision (c) of section 28 of the tax law, as amended by
21 section 45 of part A of chapter 59 of the laws of 2014, is relettered
22 subdivision (d) and a new subdivision (c) is added to read as follows:
23 (c) The department of economic development shall submit, on or before
24 December first of each year, to the governor, the director of the divi-
25 sion of the budget, the temporary president of the senate, and the
26 speaker of the assembly an annual report including, but not limited to,
27 the following information regarding the previous calendar year:
28 (1) the total dollar amount of credits allocated, the name and address
29 of each qualified commercial production company allocated credits under
30 this section, the total amount of credits allocated to each qualified
31 commercial production company, the total amount of qualified production
32 costs and production costs for each qualified commercial production
33 company, and the estimated number of employees, credit-eligible man
34 hours, and credit-eligible wages associated with each qualified commer-
35 cial production company allocated credits under this section;
36 (2) for qualified commercial production companies that were allocated
37 credit pursuant to subparagraph (ii) of paragraph two of subdivision (a)
38 of this section: the name and address of each qualified commercial
39 production company, the total dollar amount of credits allocated, the
40 total amount of credits allocated to each qualified commercial
41 production company, total qualified production costs and production
42 costs for each qualified production company, and the estimated number of
43 employees, credit-eligible man hours, and credit-eligible wages associ-
44 ated with each qualified commercial production company that filmed or
45 recorded a qualified commercial within the district;
46 (3) for qualified commercial production companies that were allocated
47 credit pursuant to subparagraph (iii) of paragraph two of subdivision
48 (a) of this section: the name and address of each qualified commercial
49 production company, the total dollar amount of credits allocated, the
50 total amount of credits allocated to each qualified commercial
51 production company, total qualified production costs and production
52 costs for each qualified production company, and the estimated number of
53 employees, credit-eligible man hours, and credit-eligible wages associ-
A. 6009 26
1 ated with each qualified commercial production company that filmed or
2 recorded a qualified commercial outside the district; and
3 (4) the amount of credits reallocated to all eligible qualified
4 commercial production companies pursuant to subparagraph (iii) of para-
5 graph two of subdivision (a) of this section.
6 (5) The report may also include any recommendations for changes in the
7 calculation or administration of the credit, recommendations regarding
8 continuing modification or repeal of this credit, and any other informa-
9 tion regarding this credit as may be useful and appropriate.
10 § 3. This act shall take effect immediately with the first report
11 being due December 1, 2016, with regard to credits allocated in calendar
12 year 2015.
13 PART K
14 Section 1. Subdivisions 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18,
15 and 19 of section 352 of the economic development law, as added by
16 section 1 of part MM of chapter 59 of the laws of 2010, subdivision 12
17 as amended by section 1 of part G of chapter 61 of the laws of 2011, are
18 amended to read as follows:
19 7. "Entertainment company" means a corporation, partnership, limited
20 partnership, or other entity principally engaged in the production or
21 post production of (i) motion pictures, which shall include feature-
22 length films and television films, (ii) instructional videos, (iii)
23 televised commercial advertisements, (iv) animated films or cartoons,
24 (v) music videos, (vi) television programs, which shall include, but not
25 be limited to, television series, television pilots, and single tele-
26 vision episodes, (vii) video games, other than those embedded and used
27 exclusively in advertising, promotional websites or microsites, or
28 (viii) programs primarily intended for radio broadcast. "Entertainment
29 company" shall not include an entity (i) principally engaged in the live
30 performance of events, including, but not limited to, theatrical
31 productions, concerts, circuses, and sporting events, (ii) principally
32 engaged in the production of content intended primarily for industrial,
33 corporate or institutional end-users, (iii) principally engaged in the
34 production of fundraising films or programs, or (iv) engaged in the
35 production of content for which records are required under section 2257
36 of title 18, United States code, to be maintained with respect to any
37 performer in such production.
38 8. "Financial services data centers or financial services customer
39 back office operations" means operations that manage the data or
40 accounts of existing customers or provide product or service information
41 and support to customers of financial services companies, including
42 banks, other lenders, securities and commodities brokers and dealers,
43 investment banks, portfolio managers, trust offices, and insurance
44 companies.
45 [8.] 9. "Investment zone" shall mean an area within the state that had
46 been designated under paragraph (i) of subdivision (a) and subdivision
47 (d) of section nine hundred fifty-eight of the general municipal law
48 that was wholly contained within up to four distinct and separate
49 contiguous areas as of the date immediately preceding the date the
50 designation of such area expired pursuant to section nine hundred
51 sixty-nine of the general municipal law.
52 [9.] 10. "Manufacturing" means the process of working raw materials
53 into products suitable for use or which gives new shapes, new quality or
54 new combinations to matter which has already gone through some artifi-
A. 6009 27
1 cial process by the use of machinery, tools, appliances, or other simi-
2 lar equipment. "Manufacturing" does not include an operation that
3 involves only the assembly of components, provided, however, the assem-
4 bly of motor vehicles or other high value-added products shall be
5 considered manufacturing.
6 [10.] 11. "Net new jobs" means [jobs created in this state that]:
7 (a) jobs created in this state that (i) are new to the state[;],
8 [(b)] (ii) have not been transferred from employment with another
9 business located in this state including from a related person in this
10 state[;],
11 [(c)] (iii) are either full-time wage-paying jobs or equivalent to a
12 full-time wage-paying job requiring at least thirty-five hours per
13 week[;], and
14 [(d)] (iv) are filled for more than six months[.]; or
15 (b) jobs obtained by an entertainment company in this state (i) as a
16 result of the termination of a licensing agreement with another enter-
17 tainment company, (ii) that the commissioner determines to be at risk of
18 leaving the state as a direct result of the termination, (iii) that are
19 either full-time wage-paying jobs or equivalent to a full-time wage-pay-
20 ing job requiring at least thirty-five hours per week, and (iv) that are
21 filled for more than six months.
22 [11.] 12. "Participant" means a business entity that:
23 (a) has completed an application prescribed by the department to be
24 admitted into the program;
25 (b) has been issued a certificate of eligibility by the department;
26 (c) has demonstrated that it meets the eligibility criteria in section
27 three hundred fifty-three and subdivision two of section three hundred
28 fifty-four of this article; and
29 (d) has been certified as a participant by the commissioner.
30 [12.] 13. "Preliminary schedule of benefits" means the maximum aggre-
31 gate amount of each component of the tax credit that a participant in
32 the excelsior jobs program is eligible to receive pursuant to this arti-
33 cle. The schedule shall indicate the annual amount of each component of
34 the credit a participant may claim in each of its ten years of eligibil-
35 ity. The preliminary schedule of benefits shall be issued by the
36 department when the department approves the application for admission
37 into the program. The commissioner may amend that schedule, provided
38 that the commissioner complies with the credit caps in section three
39 hundred fifty-nine of this article.
40 [13.] 14. "Qualified investment" means an investment in tangible prop-
41 erty (including a building or a structural component of a building)
42 owned by a business enterprise which:
43 (a) is depreciable pursuant to section one hundred sixty-seven of the
44 internal revenue code;
45 (b) has a useful life of four years or more;
46 (c) is acquired by purchase as defined in section one hundred seven-
47 ty-nine (d) of the internal revenue code;
48 (d) has a situs in this state; and
49 (e) is placed in service in the state on or after the date the certif-
50 icate of eligibility is issued to the business enterprise.
51 [14.] 15. "Regionally significant project" means (a) a manufacturer
52 creating at least fifty net new jobs in the state and making significant
53 capital investment in the state; (b) a business creating at least twenty
54 net new jobs in agriculture in the state and making significant capital
55 investment in the state, (c) a financial services firm, distribution
56 center, or back office operation creating at least three hundred net new
A. 6009 28
1 jobs in the state and making significant capital investment in the
2 state, [or] (d) a scientific research and development firm creating at
3 least twenty net new jobs in the state, and making significant capital
4 investment in the state or (e) an entertainment company creating or
5 obtaining at least two hundred net new jobs in the state and making
6 significant capital investment in the state. Other businesses creating
7 three hundred or more net new jobs in the state and making significant
8 capital investment in the state may be considered eligible as a
9 regionally significant project by the commissioner as well. The commis-
10 sioner shall promulgate regulations pursuant to section three hundred
11 fifty-six of this article to determine what constitutes significant
12 capital investment for each of the project categories indicated in this
13 subdivision and what additional criteria a business must meet to be
14 eligible as a regionally significant project, including, but not limited
15 to, whether a business exports a substantial portion of its products or
16 services outside of the state or outside of a metropolitan statistical
17 area or county within the state.
18 [15.] 16. "Related person" means a "related person" pursuant to
19 subparagraph (c) of paragraph three of subsection (b) of section four
20 hundred sixty-five of the internal revenue code.
21 [16.] 17. "Remuneration" means wages and benefits paid to an employee
22 by a participant in the excelsior jobs program.
23 [17.] 18. "Research and development expenditures" mean the expenses of
24 the business enterprise that are qualified research expenses under the
25 federal research and development credit under section forty-one of the
26 internal revenue code and are attributable to activities conducted in
27 the state. If the federal research and development credit has expired,
28 then the research and development expenditures shall be calculated as if
29 the federal research and development credit structure and definition in
30 effect in federal tax year two thousand nine were still in effect.
31 [18.] 19. "Scientific research and development" means conducting
32 research and experimental development in the physical, engineering, and
33 life sciences, including but not limited to agriculture, electronics,
34 environmental, biology, botany, biotechnology, computers, chemistry,
35 food, fisheries, forests, geology, health, mathematics, medicine, ocean-
36 ography, pharmacy, physics, veterinary, and other allied subjects. For
37 the purposes of this article, scientific research and development does
38 not include medical or veterinary laboratory testing facilities.
39 [19.] 20. "Software development" means the creation of coded computer
40 instructions and includes new media as defined by the commissioner in
41 regulations.
42 § 2. Subdivisions 1, 3, and 5 of section 353 of the economic develop-
43 ment law, subdivisions 1 and 5 as amended by section 2 of part G of
44 chapter 61 of the laws of 2011 and subdivision 3 as amended by section 1
45 of part C of chapter 68 of the laws of 2013, are amended to read as
46 follows:
47 1. To be a participant in the excelsior jobs program, a business enti-
48 ty shall operate in New York state predominantly:
49 (a) as a financial services data center or a financial services back
50 office operation;
51 (b) in manufacturing;
52 (c) in software development and new media;
53 (d) in scientific research and development;
54 (e) in agriculture;
55 (f) in the creation or expansion of back office operations in the
56 state;
A. 6009 29
1 (g) in a distribution center; [or]
2 (h) in an industry with significant potential for private-sector
3 economic growth and development in this state as established by the
4 commissioner in regulations promulgated pursuant to this article. In
5 promulgating such regulations the commissioner shall include job and
6 investment criteria; or
7 (i) as an entertainment company.
8 3. For the purposes of this article, in order to participate in the
9 excelsior jobs program, a business entity operating predominantly in
10 manufacturing must create at least ten net new jobs; a business entity
11 operating predominately in agriculture must create at least five net new
12 jobs; a business entity operating predominantly as a financial service
13 data center or financial services customer back office operation must
14 create at least fifty net new jobs; a business entity operating predomi-
15 nantly in scientific research and development must create at least five
16 net new jobs; a business entity operating predominantly in software
17 development must create at least five net new jobs; a business entity
18 creating or expanding back office operations must create at least fifty
19 net new jobs; a business entity operating predominantly as an enter-
20 tainment company must create or obtain at least one hundred net new
21 jobs; or a business entity operating predominantly as a distribution
22 center in the state must create at least seventy-five net new jobs,
23 notwithstanding subdivision five of this section; or a business entity
24 must be a regionally significant project as defined in this article; or
25 5. A not-for-profit business entity, a business entity whose primary
26 function is the provision of services including personal services, busi-
27 ness services, or the provision of utilities, and a business entity
28 engaged predominantly in the retail or entertainment industry, other
29 than a business operating as an entertainment company as defined in this
30 article, and a company engaged in the generation or distribution of
31 electricity, the distribution of natural gas, or the production of steam
32 associated with the generation of electricity are not eligible to
33 receive the tax credit described in this article.
34 § 3. Subdivision 1 of section 354 of the economic development law, as
35 amended by section 3 of part G of chapter 61 of the laws of 2011, is
36 amended as follows:
37 1. A business enterprise must submit a completed application as
38 prescribed by the commissioner. An application made by an entertainment
39 company must be submitted by June first, two thousand fifteen. An appli-
40 cation may be recommended by entities, including but not limited to,
41 those created pursuant to subdivision (e) of section nine hundred
42 fifty-seven of the general municipal law.
43 § 4. Subdivision 6 of section 355 of the economic development law, as
44 amended by section 4 of part G of chapter 61 of the laws of 2011, is
45 amended to read as follows:
46 6. Claim of tax credit. The business enterprise shall be allowed to
47 claim the credit as prescribed in section thirty-one of the tax law. No
48 costs used by an entertainment company as the basis for the allowance of
49 a tax credit described in this section shall be used by such enter-
50 tainment company to claim any other credit allowed pursuant to the tax
51 law.
52 § 5. This act shall take effect immediately.
53 PART L
A. 6009 30
1 Section 1. Paragraph (a) of subdivision 1 of section 210-B of the tax
2 law, as added by section 17 of part A of chapter 59 of the laws of 2014,
3 is amended to read as follows:
4 (a) A taxpayer shall be allowed a credit, to be computed as hereinaft-
5 er provided, against the tax imposed by this article. The amount of the
6 credit shall be the percent provided for hereinbelow of the investment
7 credit base. The investment credit base is the cost or other basis for
8 federal income tax purposes of tangible personal property and other
9 tangible property, including buildings and structural components of
10 buildings, described in paragraph (b) of this subdivision, less the
11 amount of the nonqualified nonrecourse financing with respect to such
12 property to the extent such financing would be excludible from the cred-
13 it base pursuant to section 46(c)(8) of the internal revenue code
14 (treating such property as section thirty-eight property irrespective of
15 whether or not it in fact constitutes section thirty-eight property).
16 If, at the close of a taxable year following the taxable year in which
17 such property was placed in service, there is a net decrease in the
18 amount of nonqualified nonrecourse financing with respect to such prop-
19 erty, such net decrease shall be treated as if it were the cost or other
20 basis of property described in paragraph (b) of this subdivision
21 acquired, constructed, reconstructed or erected during the year of the
22 decrease in the amount of nonqualified nonrecourse financing. Provided,
23 however, that the investment credit base of a master of a film, tele-
24 vision show or commercial shall only include those costs associated with
25 the creation, production or reproduction of such film, television show
26 or commercial incurred within the state; provided, further, that the
27 investment credit base of a master shall not include those costs used by
28 the taxpayer or another taxpayer in the calculation of any other tax
29 credit allowed under this chapter. In the case of a combined report the
30 term investment credit base shall mean the sum of the investment credit
31 base of each corporation included on such report. The percentage to be
32 used to compute the credit allowed pursuant to this subdivision shall be
33 five percent with respect to the first three hundred fifty million
34 dollars of the investment credit base, and four percent with respect to
35 the investment credit base in excess of three hundred fifty million
36 dollars, except that in the case of research and development property at
37 the option of the taxpayer the applicable percentage shall be nine.
38 § 2. Section 211 of the tax law is amended by adding a new subdivision
39 15 to read as follows:
40 15. Notwithstanding the provisions of subdivision eight of this
41 section, in order to administer the limitation in subdivision one of
42 section two hundred ten-B of this article regarding the investment cred-
43 it base of a master of a film, television show or commercial, the
44 commissioner may disclose to a taxpayer claiming the investment credit
45 for costs associated with the creation, production or reproduction of a
46 film, television show or commercial pursuant to such section information
47 included in a report or a return of another taxpayer filed pursuant to
48 this chapter claiming a tax credit under this chapter relating to costs
49 associated with the creation, production or reproduction of such film,
50 television show or commercial.
51 § 3. Paragraph 1 of subsection (a) of section 606 of the tax law, as
52 amended by chapter 170 of the laws of 1994, is amended to read as
53 follows:
54 (1) A taxpayer shall be allowed a credit, to be computed as hereinaft-
55 er provided, against the tax imposed by this article. The amount of the
56 credit shall be the per cent provided for hereinbelow of the investment
A. 6009 31
1 credit base. The investment credit base is the cost or other basis, for
2 federal income tax purposes, of tangible personal property and other
3 tangible property, including buildings and structural components of
4 buildings, described in paragraph two of this subsection, less the
5 amount of the nonqualified nonrecourse financing with respect to such
6 property to the extent such financing would be excludible from the cred-
7 it base pursuant to section 46(c)(8) of the internal revenue code
8 (treating such property as section thirty-eight property irrespective of
9 whether or not it in fact constitutes section thirty-eight property).
10 If, at the close of a taxable year following the taxable year in which
11 such property was placed in service, there is a net decrease in the
12 amount of nonqualified nonrecourse financing with respect to such prop-
13 erty, such net decrease shall be treated as if it were the cost or other
14 basis of property described in paragraph two of this subsection
15 acquired, constructed, reconstructed or erected during the year of the
16 decrease in the amount of nonqualified nonrecourse financing. Provided,
17 however, that the investment credit base of a master of a film, tele-
18 vision show or commercial shall only include those costs associated with
19 the creation, production or reproduction of such film, television show
20 or commercial incurred within the state; provided, further, that the
21 investment credit base of a master shall not include those costs used by
22 the taxpayer or another taxpayer in the calculation of any other tax
23 credit allowed under this chapter. The percentage to be used to compute
24 the credit allowed pursuant to this subsection shall be that percentage
25 appearing in column two which is opposite the appropriate period in
26 column one in which the tangible personal property was acquired,
27 constructed, reconstructed or erected, as the case may be:
28 Column 1 Column 2
29 After December 31, 1968 and
30 prior to January 1, 1974 one per cent
31 After December 31, 1973 and
32 prior to January 1, 1978 two per cent
33 After December 31, 1977 and
34 prior to January 1, 1979 three per cent
35 After December 31, 1978 and
36 prior to June 1, 1981 four per cent
37 After May 31, 1981 and
38 prior to July 1, 1982 five per cent
39 After June 30, 1982 and
40 before January 1, 1987 six per cent
41 After December 31, 1986 four per cent, except that in the
42 case of research and development
43 property the applicable percentage
44 shall be seven
45 Provided, however, that in the case of an acquisition, construction,
46 reconstruction or erection which was commenced in any one period and
47 continued or completed in any subsequent period the credit shall be the
48 sum of the portions of the investment credit base attributable to each
49 such period, which portion with respect to each such period shall be
50 ascertained by multiplying such investment credit base by a fraction the
51 numerator of which shall be the expenditures paid or incurred during
52 such period for such purposes and the denominator of which shall be the
53 total of all expenditures paid or incurred for such acquisition,
A. 6009 32
1 construction, reconstruction or erection, multiplied by the allowable
2 percentage for each such period.
3 § 4. Subsection (e) of section 697 of the tax law is amended by adding
4 a new paragraph 3-b to read as follows:
5 (3-b) Notwithstanding the provisions of paragraph one of this
6 subsection, in order to administer the limitation in paragraph one of
7 subsection (a) of section six hundred six of this article regarding the
8 investment credit base of a master of a film, television show or commer-
9 cial, the commissioner may disclose to a taxpayer claiming the invest-
10 ment credit for costs associated with the creation, production or
11 reproduction of a film, television show or commercial pursuant to such
12 section information included in a report or a return of another taxpayer
13 filed pursuant to this chapter claiming a tax credit under this chapter
14 relating to costs associated with the creation, production or reprod-
15 uction of such film, television show or commercial.
16 § 5. Subparagraph (vi) of paragraph (a) of subdivision 1 of section
17 210 of the tax law, as amended by section 12 of part A of chapter 59 of
18 the laws of 2014, is amended to read as follows:
19 (vi) for taxable years beginning on or after January first, two thou-
20 sand fourteen, the amount prescribed by this paragraph for a taxpayer
21 which is a qualified New York manufacturer, shall be computed at the
22 rate of zero percent of the taxpayer's business income base. The term
23 "manufacturer" shall mean a taxpayer which during the taxable year is
24 principally engaged in the production of goods by manufacturing, proc-
25 essing, assembling, refining, mining, extracting, farming, agriculture,
26 horticulture, floriculture, viticulture or commercial fishing. However,
27 the generation and distribution of electricity, the distribution of
28 natural gas, and the production of steam associated with the generation
29 of electricity shall not be qualifying activities for a manufacturer
30 under this subparagraph. Moreover, the combined group shall be consid-
31 ered a "manufacturer" for purposes of this subparagraph only if the
32 combined group during the taxable year is principally engaged in the
33 activities set forth in this paragraph, or any combination thereof. A
34 taxpayer or a combined group shall be "principally engaged" in activ-
35 ities described above if, during the taxable year, more than fifty
36 percent of the gross receipts of the taxpayer or combined group, respec-
37 tively, are derived from receipts from the sale of goods produced by
38 such activities. However, the license of a master of a film, television
39 show or commercial shall not constitute the sale of a good under this
40 subparagraph. In computing a combined group's gross receipts, intercor-
41 porate receipts shall be eliminated. A "qualified New York manufacturer"
42 is a manufacturer which has property in New York which is described in
43 subdivision one of section two hundred ten-B of this article and either
44 (I) the adjusted basis of such property for federal income tax purposes
45 at the close of the taxable year is at least one million dollars or (II)
46 all of its real and personal property is located in New York. A taxpayer
47 or, in the case of a combined report, a combined group, that does not
48 satisfy the principally engaged test may be a qualified New York
49 manufacturer if the taxpayer or the combined group employs during the
50 taxable year at least two thousand five hundred employees in manufactur-
51 ing in New York and the taxpayer or the combined group has property in
52 the state used in manufacturing, the adjusted basis of which for federal
53 income tax purposes at the close of the taxable year is at least one
54 hundred million dollars.
55 § 6. This act shall take effect immediately and shall apply to taxable
56 years beginning on or after January 1, 2016.
A. 6009 33
1 PART M
2 Section 1. Section 25-a of the labor law, as added by section 1 of
3 part D of chapter 56 of the laws of 2011, subdivision (a) as amended by
4 section 3, subdivision (c) as amended by section 4 and subdivision (f)
5 as amended by section 5 of part U of chapter 59 of the laws of 2014, and
6 subdivision (b) as amended by section 1 and subdivision (d) as amended
7 by section 2 of part DD of chapter 59 of the laws of 2013, is amended to
8 read as follows:
9 § 25-a. Power to administer the [New York] urban youth [works] jobs
10 program tax credit [program]. (a) The commissioner is authorized to
11 establish and administer the [New York youth works tax credit] program
12 established under this section to provide tax incentives to employers
13 for employing at risk youth in part-time and full-time positions. There
14 will be five distinct pools of tax incentives. Program one will cover
15 tax incentives allocated for two thousand twelve and two thousand thir-
16 teen. Program two will cover tax incentives allocated in two thousand
17 fourteen [to be used in two thousand fourteen and fifteen]. Program
18 three will cover tax incentives allocated in two thousand fifteen [to be
19 used in two thousand fifteen and sixteen]. Program four will cover tax
20 incentives allocated in two thousand sixteen [to be used in two thousand
21 sixteen and seventeen]. Program five will cover tax incentives allocated
22 in two thousand seventeen [to be used in two thousand seventeen and
23 eighteen]. The commissioner is authorized to allocate up to twenty-five
24 million dollars of tax credits under program one, ten million dollars of
25 tax credits under program two, and ten million dollars of tax credits
26 for a base credit allocation and an additional ten million dollars of
27 tax credits for an incremental allocation under [program] each of
28 programs three, [ten million dollars of tax credits under program] four,
29 [ten million dollars of tax credits under program] and five.
30 (b) Definitions. (1) The term "qualified employer" means an employer
31 that has been certified by the commissioner to participate in the [New
32 York youth works tax credit] program established under this section and
33 that employs one or more qualified employees.
34 (2) The term "qualified employee" means an individual:
35 (i) who is between the age of sixteen and twenty-four;
36 (ii) who resides in a [city with a population of fifty-five thousand
37 or more or a town with a population of four hundred eighty thousand or
38 more] targeted locality;
39 (iii) who is low-income or at-risk, as those terms are defined by the
40 commissioner;
41 (iv) who is unemployed prior to being hired by the qualified employer;
42 and
43 (v) who will be working for the qualified employer in a full-time or
44 part-time position that pays wages that are equivalent to the wages paid
45 for similar jobs, with appropriate adjustments for experience and train-
46 ing, and for which no other employee has been terminated, or where the
47 employer has not otherwise reduced its workforce by involuntary termi-
48 nations with the intention of filling the vacancy by creating a new
49 hire.
50 (3) The term "locality" means a city with a population of fifty-five
51 thousand or more or a town with a population of four hundred eighty
52 thousand or more.
53 (4) The term "locality with high unemployment" means a locality that
54 is located in one or more counties that are ranked among the top six
55 counties containing a locality for the twelve-month annual average unem-
A. 6009 34
1 ployment rate, as determined by the commissioner using the most current
2 available data, provided, however, that multiple counties that comprise
3 a single locality shall not be separately ranked and shall be considered
4 as one for purposes of determining the top six.
5 (5) The term "locality with high youth poverty" means a locality that
6 is ranked among the top six in New York state for individuals between
7 the ages of eighteen and twenty-four living below the poverty line, as
8 determined by the United States Census Bureau 5-year American Community
9 Survey, using the most current data available.
10 (6) The term "targeted locality" means a locality, provided, however,
11 that for purposes of the incremental allocations in programs three,
12 four, and five, such term shall be limited to a locality with high unem-
13 ployment that is also a locality with high youth poverty.
14 (c) A qualified employer shall be entitled to a tax credit equal to
15 (1) five hundred dollars per month for up to six months for each quali-
16 fied employee the employer employs in a full-time job or two hundred
17 fifty dollars per month for up to six months for each qualified employee
18 the employer employs in a part-time job of at least twenty hours per
19 week or ten hours per week when the qualified employee is enrolled in
20 high school full-time, (2) one thousand dollars for each qualified
21 employee who is employed for at least an additional six months by the
22 qualified employer in a full-time job or five hundred dollars for each
23 qualified employee who is employed for at least an additional six months
24 by the qualified employer in a part-time job of at least twenty hours
25 per week or ten hours per week when the qualified employee is enrolled
26 in high school full-time, and (3) an additional one thousand dollars for
27 each qualified employee who is employed for at least an additional year
28 after the first year of the employee's employment by the qualified
29 employer in a full-time job or five hundred dollars for each qualified
30 employee who is employed for at least an additional year after the first
31 year of the employee's employment by the qualified employer in a part-
32 time job of at least twenty hours per week or ten hours per week when
33 the qualified employee is enrolled in high school full time. The tax
34 credits shall be claimed by the qualified employer as specified in
35 subdivision [forty-four] thirty-six of section two hundred [ten] ten-B
36 and subsection (tt) of section six hundred six of the tax law.
37 (d) To participate in the [New York youth works tax credit] program
38 established under this section, an employer must submit an application
39 (in a form prescribed by the commissioner) to the commissioner after
40 January first, two thousand twelve but no later than November thirtieth,
41 two thousand twelve for program one, after January first, two thousand
42 fourteen but no later than November thirtieth, two thousand fourteen for
43 program two, after January first, two thousand fifteen but no later than
44 November thirtieth, two thousand fifteen for program three, after Janu-
45 ary first, two thousand sixteen but no later than November thirtieth,
46 two thousand sixteen for program four, and after January first, two
47 thousand seventeen but no later than November thirtieth, two thousand
48 seventeen for program five. The qualified employees must start their
49 employment on or after January first, two thousand twelve but no later
50 than December thirty-first, two thousand twelve for program one, on or
51 after January first, two thousand fourteen but no later than December
52 thirty-first, two thousand fourteen for program two, on or after January
53 first, two thousand fifteen but no later than December thirty-first, two
54 thousand fifteen for program three, on or after January first, two thou-
55 sand sixteen but no later than December thirty-first, two thousand
56 sixteen for program four, and on or after January first, two thousand
A. 6009 35
1 seventeen but no later than December thirty-first, two thousand seven-
2 teen for program five. The commissioner shall establish guidelines and
3 criteria that specify requirements for employers to participate in the
4 program including criteria for certifying qualified employees. Any regu-
5 lations that the commissioner determines are necessary may be adopted on
6 an emergency basis notwithstanding anything to the contrary in section
7 two hundred two of the state administrative procedure act. Such require-
8 ments may include the types of industries that the employers are engaged
9 in. The commissioner may give preference to employers that are engaged
10 in demand occupations or industries, or in regional growth sectors,
11 including those identified by the regional economic development coun-
12 cils, such as clean energy, healthcare, advanced manufacturing and
13 conservation. In addition, the commissioner shall give preference to
14 employers who offer advancement and employee benefit packages to the
15 qualified individuals.
16 (e) If, after reviewing the application submitted by an employer, the
17 commissioner determines that such employer is eligible to participate in
18 the [New York youth works tax credit] program established under this
19 section, the commissioner shall issue the employer a certificate of
20 eligibility that establishes the employer as a qualified employer. The
21 certificate of eligibility shall specify the maximum amount of [New York
22 youth works] tax credit that the employer will be allowed to claim.
23 (f) The commissioner shall annually publish a report. Such report must
24 contain the names and addresses of any employer issued a certificate of
25 eligibility under this section, and the maximum amount of New York youth
26 works tax credit allowed to the employer as specified on such certif-
27 icate of eligibility.
28 § 2. The subdivision heading and paragraph (a) of subdivision 36 of
29 section 210-B of the tax law, as added by section 17 of part A of chap-
30 ter 59 of the laws of 2014, is amended to read as follows:
31 [New York] Urban youth [works] jobs program tax credit. (a) A taxpayer
32 that has been certified by the commissioner of labor as a qualified
33 employer pursuant to section twenty-five-a of the labor law shall be
34 allowed a credit against the tax imposed by this article equal to (i)
35 five hundred dollars per month for up to six months for each qualified
36 employee the employer employs in a full-time job or two hundred fifty
37 dollars per month for up to six months for each qualified employee the
38 employer employs in a part-time job of at least twenty hours per week or
39 ten hours per week when the qualified employee is enrolled in high
40 school full-time, (ii) one thousand dollars for each qualified employee
41 who is employed for at least an additional six months by the qualified
42 employer in a full-time job or five hundred dollars for each qualified
43 employee who is employed for at least an additional six months by the
44 qualified employer in a part-time job of at least twenty hours per week
45 or ten hours per week when the qualified employee is enrolled in high
46 school full-time, and (iii) an additional one thousand dollars for each
47 qualified employee who is employed for at least an additional year after
48 the first year of the employee's employment by the qualified employer in
49 a full-time job or five hundred dollars for each qualified employee who
50 is employed for at least an additional year after the first year of the
51 employee's employment by the qualified employer in a part-time job of at
52 least twenty hours per week or ten hours per week when the qualified
53 employee is enrolled in high school full-time. For purposes of this
54 subdivision, the term "qualified employee" shall have the same meaning
55 as set forth in subdivision (b) of section twenty-five-a of the labor
56 law. The portion of the credit described in subparagraph (i) of this
A. 6009 36
1 paragraph shall be allowed for the taxable year in which the wages are
2 paid to the qualified employee, [and] the portion of the credit
3 described in subparagraph (ii) of this paragraph shall be allowed in the
4 taxable year in which the additional six month period ends, and the
5 portion of the credit described in subparagraph (iii) of this paragraph
6 shall be allowed in the taxable year in which the additional year after
7 the first year of employment ends.
8 § 3. The subdivision heading and paragraph 1 of subsection (tt) of
9 section 606 of the tax law, the subdivision heading as added by section
10 3 of part D of chapter 56 of the laws of 2011 and paragraph 1 as amended
11 by section 2 of part U of chapter 59 of the laws of 2014, are amended to
12 read as follows:
13 [New York] Urban youth [works] jobs program tax credit. (1) A taxpay-
14 er that has been certified by the commissioner of labor as a qualified
15 employer pursuant to section twenty-five-a of the labor law shall be
16 allowed a credit against the tax imposed by this article equal to (A)
17 five hundred dollars per month for up to six months for each qualified
18 employee the employer employs in a full-time job or two hundred fifty
19 dollars per month for up to six months for each qualified employee the
20 employer employs in a part-time job of at least twenty hours per week or
21 ten hours per week when the qualified employee is enrolled in high
22 school full-time, and (B) one thousand dollars for each qualified
23 employee who is employed for at least an additional six months by the
24 qualified employer in a full-time job or five hundred dollars for each
25 qualified employee who is employed for at least an additional six months
26 by the qualified employer in a part-time job of at least twenty hours
27 per week or ten hours per week when the qualified employee is enrolled
28 in high school full-time, and (C) an additional one thousand dollars for
29 each qualified employee who is employed for at least an additional year
30 after the first year of the employee's employment by the qualified
31 employer in a full-time job or five hundred dollars for each qualified
32 employee who is employed for at least an additional year after the first
33 year of the employee's employment by the qualified employer in a part-
34 time job of at least twenty hours per week or ten hours per week when
35 the qualified employee is enrolled in high school full-time. A taxpayer
36 that is a partner in a partnership, member of a limited liability compa-
37 ny or shareholder in an S corporation that has been certified by the
38 commissioner of labor as a qualified employer pursuant to section twen-
39 ty-five-a of the labor law shall be allowed its pro rata share of the
40 credit earned by the partnership, limited liability company or S corpo-
41 ration. For purposes of this subsection, the term "qualified employee"
42 shall have the same meaning as set forth in subdivision (b) of section
43 twenty-five-a of the labor law. The portion of the credit described in
44 subparagraph (A) of this paragraph shall be allowed for the taxable year
45 in which the wages are paid to the qualified employee, [and] the portion
46 of the credit described in subparagraph (B) of this paragraph shall be
47 allowed in the taxable year in which the additional six month period
48 ends, and the portion of the credit described in subparagraph (C) of
49 this paragraph shall be allowed in the taxable year in which the addi-
50 tional year after the first year of employment ends.
51 § 4. Clause (xxxiii) of subparagraph (B) of paragraph 1 of subsection
52 (i) of section 606 of the tax law, as amended by section 68 of part A of
53 chapter 59 of the laws of 2014, is amended to read as follows:
54 (xxxiii) [New York] Urban youth Amount of credit under
55 [works] jobs program subdivision thirty-six
A. 6009 37
1 tax credit of section two hundred ten-B
2 § 5. This act shall take effect immediately.
3 PART N
4 Section 1. Subparagraph (iv) of paragraph (a) of subdivision 1 of
5 section 210 of the tax law, as amended by section 12 of part A of chap-
6 ter 59 of the laws of 2014, is amended to read as follows:
7 (iv) (A) for taxable years beginning before January first, two thou-
8 sand sixteen, if the business income base is not more than two hundred
9 ninety thousand dollars the amount shall be six and one-half percent of
10 the business income base; if the business income base is more than two
11 hundred ninety thousand dollars but not over three hundred ninety thou-
12 sand dollars the amount shall be the sum of (1) eighteen thousand eight
13 hundred fifty dollars, (2) seven and one-tenth percent of the excess of
14 the business income base over two hundred ninety thousand dollars but
15 not over three hundred ninety thousand dollars and (3) four and thirty-
16 five hundredths percent of the excess of the business income base over
17 three hundred fifty thousand dollars but not over three hundred ninety
18 thousand dollars;
19 (B) for taxable years beginning on or after January first, two thou-
20 sand sixteen and before January first, two thousand seventeen, if the
21 business income base is not more than two hundred ninety thousand
22 dollars the amount shall be three and one-quarter percent of the busi-
23 ness income base; if the business income base is more than two hundred
24 ninety thousand dollars but not over three hundred ninety thousand
25 dollars the amount shall be the sum of (1) nine thousand four hundred
26 twenty five dollars, (2) six and one-half percent of the excess of the
27 business income base over two hundred ninety thousand dollars but not
28 over three hundred ninety thousand dollars and (3) twenty-three and
29 fifty-six hundredths percent of the excess of the business income base
30 over three hundred fifty thousand dollars but not over three hundred
31 ninety thousand dollars;
32 (C) for taxable years beginning on or after January first, two thou-
33 sand seventeen and before January first, two thousand eighteen, if the
34 business income base is not more than two hundred ninety thousand
35 dollars the amount shall be two and nine-tenths percent of the business
36 income base; if the business income base is more than two hundred ninety
37 thousand dollars but not over three hundred ninety thousand dollars the
38 amount shall be the sum of (1) eight thousand four hundred ten dollars,
39 (2) six and one-half percent of the excess of the business income base
40 over two hundred ninety thousand dollars but not over three hundred
41 ninety thousand dollars and (3) twenty-six and one-tenth percent of the
42 excess of the business income base over three hundred fifty thousand
43 dollars but not over three hundred ninety thousand dollars;
44 (D) for taxable years beginning on or after January first, two thou-
45 sand eighteen, if the business income base is not more than two hundred
46 ninety thousand dollars the amount shall be two and one-half percent of
47 the business income base; if the business income base is more than two
48 hundred ninety thousand dollars but not over three hundred ninety thou-
49 sand dollars the amount shall be the sum of (1) seven thousand two
50 hundred fifty dollars, (2) six and one-half percent of the excess of the
51 business income base over two hundred ninety thousand dollars but not
52 over three hundred ninety thousand dollars and (3) twenty-nine percent
A. 6009 38
1 of the excess of the business income base over three hundred fifty thou-
2 sand dollars but not over three hundred ninety thousand dollars;
3 § 2. This act shall take effect immediately.
4 PART O
5 Section 1. The economic development law is amended by adding a new
6 article 22 to read as follows:
7 ARTICLE 22
8 EMPLOYEE TRAINING INCENTIVE PROGRAM
9 Section 441. Definitions.
10 442. Eligibility criteria.
11 443. Application and approval process.
12 444. Powers and duties of the commissioner.
13 445. Recordkeeping requirements.
14 446. Cap on tax credit.
15 § 441. Definitions. As used in this article, the following terms shall
16 have the following meanings:
17 1. "Approved provider" means an entity meeting such criteria as shall
18 be established by the commissioner in regulations promulgated pursuant
19 to this article, that may provide eligible training to employees of a
20 business entity participating in the employee training incentive
21 program. Such criteria shall ensure that any approved provider possess
22 adequate credentials to provide the training described in an application
23 by a business entity to the commissioner to participate in the employee
24 training incentive program.
25 2. "Commissioner" means the commissioner of economic development.
26 3. "Eligible training" means training provided by an approved provider
27 that is:
28 (a) to upgrade, retrain or improve the productivity of employees;
29 (b) provided to employees filling net new jobs, or to existing employ-
30 ees in connection with a significant capital investment by a participat-
31 ing business entity;
32 (c) determined by the commissioner to satisfy a business need on the
33 part of a participating business entity;
34 (d) not designed to train or upgrade skills as required by a federal
35 or state entity;
36 (e) not training the completion of which may result in the awarding of
37 a license or certificate required by law in order to perform a job func-
38 tion; and
39 (f) not culturally focused training.
40 4. "Net new job" means a job created in this state that:
41 (a) is new to the state;
42 (b) has not been transferred from employment with another business
43 located in this state through an acquisition, merger, consolidation or
44 other reorganization of businesses or the acquisition of assets of
45 another business, and has not been transferred from employment with a
46 related person in this state;
47 (c) is either a full-time wage-paying job or equivalent to a full-time
48 wage-paying job requiring at least thirty-five hours per week;
49 (d) is filled for more than six months;
50 (e) is filled by a person who has received eligible training; and
A. 6009 39
1 (f) is comprised of tasks the performance of which required the person
2 filling the job to undergo eligible training.
3 5. "Significant capital investment" means a capital investment of at
4 least one million dollars in new business processes or equipment.
5 6. "Strategic industry" means an industry in this state, as estab-
6 lished by the commissioner in regulations promulgated pursuant to this
7 article, based upon the following criteria:
8 (a) shortages of workers trained to work within the industry;
9 (b) technological disruption in the industry, requiring significant
10 capital investment for existing businesses to remain competitive;
11 (c) the ability of businesses in the industry to relocate outside of
12 the state in order to attract talent;
13 (d) the potential to recruit minorities or women to be trained to work
14 in the industry in which they are traditionally underrepresented;
15 (e) the potential to create jobs in economically distressed areas,
16 which shall be based on criteria indicative of economic distress,
17 including poverty rates, numbers of persons receiving public assistance,
18 and unemployment rates; and
19 (f) such other criteria as shall be developed by the commissioner in
20 consultation with the commissioner of labor.
21 § 442. Eligibility criteria. 1. In order to participate in the employ-
22 ee training incentive program, a business entity must satisfy all of the
23 following criteria:
24 (a) The business entity must operate in the state predominantly in a
25 strategic industry;
26 (b) The business entity must demonstrate that it is obtaining eligible
27 training from an approved provider;
28 (c) The business entity must create at least ten net new jobs or make
29 a significant capital investment in connection with the eligible train-
30 ing; and
31 (d) The business entity must be in compliance with all worker
32 protection and environmental laws and regulations. In addition, the
33 business entity may not owe past due state taxes or local property
34 taxes.
35 § 443. Application and approval process. 1. A business entity must
36 submit a completed application in such form and with such information as
37 prescribed by the commissioner.
38 2. As part of such application, each business entity must:
39 (a) provide such documentation as the commissioner may require in
40 order for the commissioner to determine that the business entity intends
41 to procure eligible training for its employees from an approved provid-
42 er;
43 (b) agree to allow the department of taxation and finance to share its
44 tax information with the department. However, any information shared as
45 a result of this agreement shall not be available for disclosure or
46 inspection under the state freedom of information law;
47 (c) agree to allow the department of labor to share its tax and
48 employer information with the department. However, any information
49 shared as a result of this agreement shall not be available for disclo-
50 sure or inspection under the state freedom of information law;
51 (d) allow the department and its agents access to any and all books
52 and records the department may require to monitor compliance;
53 (e) provide a clear and detailed presentation of all related persons
54 to the applicant to assure the department that jobs are not being shift-
55 ed within the state; and
A. 6009 40
1 (f) certify, under penalty of perjury, that it is in substantial
2 compliance with all environmental, worker protection, and local, state,
3 and federal tax laws.
4 3. The commissioner may approve an application from a business entity
5 upon determining that such business entity meets the eligibility crite-
6 ria established in section four hundred forty-two of this article.
7 Following approval by the commissioner of an application by a business
8 entity to participate in the employee training incentive program, the
9 commissioner shall issue a certificate of tax credit to the business
10 entity upon its demonstrating successful completion of such eligible
11 training to the satisfaction of the commissioner. The amount of the
12 credit shall be equal to fifty percent of eligible training costs, up to
13 ten thousand dollars per employee receiving eligible training. The tax
14 credits shall be claimed by the qualified employer as specified in
15 subdivision fifty of section two hundred ten-B and subsection (ddd) of
16 section six hundred six of the tax law.
17 § 444. Powers and duties of the commissioner. 1. The commissioner
18 shall, in consultation with the commissioner of labor, promulgate regu-
19 lations consistent with the purposes of this article that, notwithstand-
20 ing any provisions to the contrary in the state administrative procedure
21 act, may be adopted on an emergency basis. Such regulations shall
22 include, but not be limited to, eligibility criteria for business enti-
23 ties desiring to participate in the employee training incentive program,
24 procedures for the receipt and evaluation of applications from business
25 entities to participate in the program, and such other provisions as the
26 commissioner deems to be appropriate in order to implement the
27 provisions of this article.
28 2. The commissioner shall, in consultation with the department of
29 taxation and finance, develop a certificate of tax credit that shall be
30 issued by the commissioner to participating business entities. Partic-
31 ipants may be required by the commissioner of taxation and finance to
32 include the certificate of tax credit with their tax return to receive
33 any tax benefits under this article.
34 3. The commissioner shall solely determine the eligibility of any
35 applicant applying for entry into the program and shall remove any
36 participant from the program for failing to meet any of the requirements
37 set forth in subdivision one of section four hundred forty-two of this
38 article or for making a material misrepresentation with respect to its
39 participation in the employee training incentive program.
40 § 445. Recordkeeping requirements. Each business entity participating
41 in the employee training incentive program shall maintain all relevant
42 records for the duration of its program participation plus three years.
43 § 446. Cap on tax credit. The total amount of tax credits listed on
44 certificates of tax credit issued by the commissioner for any taxable
45 year may not exceed five million dollars, and shall be allotted from the
46 funds available for tax credits under the excelsior jobs program act
47 pursuant to section three hundred fifty-nine of this chapter.
48 § 2. Section 210-B of the tax law is amended by adding a new subdivi-
49 sion 50 to read as follows:
50 50. Employee training incentive program tax credit. (a) A taxpayer
51 that has been approved by the commissioner of economic development to
52 participate in the employee training incentive program and has been
53 issued a certificate of tax credit pursuant to section four hundred
54 forty-three of the economic development law shall be allowed to claim a
55 credit against the tax imposed by this article. The credit shall equal
56 fifty percent of a taxpayer's eligible training costs, up to ten thou-
A. 6009 41
1 sand dollars per employee receiving eligible training. In no event shall
2 a taxpayer be allowed a credit greater than the amount of credit listed
3 on the certificate of tax credit issued by the commissioner of economic
4 development. The credit will be allowed in the taxable year in which the
5 eligible training for all employees is completed.
6 (b) The credit allowed under this subdivision for any taxable year may
7 not reduce the tax due for that year to less than the amount prescribed
8 in paragraph (d) of subdivision one of section two hundred ten of this
9 article. However, if the amount of credit allowed under this subdivi-
10 sion for any taxable year reduces the tax to such amount, or if the
11 taxpayer otherwise pays tax based on the fixed dollar minimum amount,
12 any amount of credit thus not deductible in that taxable year will be
13 treated as an overpayment of tax to be credited or refunded in accord-
14 ance with the provisions of section one thousand eighty-six of this
15 chapter. Provided, however, the provisions of subsection (c) of section
16 one thousand eighty-eight of this chapter notwithstanding, no interest
17 will be paid thereon.
18 (c) The taxpayer may be required to attach to its tax return its
19 certificate of tax credit issued by the commissioner of economic devel-
20 opment pursuant to section four hundred forty-three of the economic
21 development law. In no event shall the taxpayer be allowed a credit
22 greater than the amount of the credit listed in the certificate of tax
23 credit, or in the case of a taxpayer who is a partner in a partnership
24 or a member of a limited liability company, its pro rata share of the
25 amount of credit listed in the certificate of tax credit issued to the
26 partnership or limited liability company.
27 § 3. Section 606 of the tax law is amended to add a new subsection
28 (ddd) to read as follows:
29 (ddd) Employee training incentive program tax credit. (1) A taxpayer
30 that has been approved by the commissioner of economic development to
31 participate in the employee training incentive program and has been
32 issued a certificate of tax credit pursuant to section four hundred
33 forty-three of the economic development law shall be allowed to claim a
34 credit against the tax imposed by this article. The credit shall equal
35 fifty percent of a taxpayer's eligible training costs, up to ten thou-
36 sand dollars per employee receiving eligible training. In no event shall
37 a taxpayer be allowed a credit greater than the amount listed on the
38 certificate of tax credit issued by the commissioner of economic devel-
39 opment. In the case of a taxpayer who is a partner in a partnership,
40 member of a limited liability company or shareholder in an S corpo-
41 ration, the taxpayer shall be allowed its pro rata share of the credit
42 earned by the partnership, limited liability company or S corporation.
43 The credit will be allowed in the taxable year in which the eligible
44 training for all employees is completed.
45 (2) If the amount of the credit allowed under this subsection for any
46 taxable year exceeds the taxpayer's tax for the taxable year, the excess
47 shall be treated as an overpayment of tax to be credited or refunded in
48 accordance with the provisions of section six hundred eighty-six of this
49 article, provided, however, no interest will be paid thereon.
50 § 4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
51 of the tax law is amended by adding a new clause (xlii) to read as
52 follows:
53 (xlii) Employee training incentive Amount of credit under
54 program credit under subdivision fifty of
55 subsection (ddd) section two hundred ten-B
A. 6009 42
1 § 5. This act shall take effect immediately and apply to taxable years
2 beginning on or after January 1, 2015.
3 PART P
4 Section 1. Subdivision 1 of section 184 of the tax law, as amended by
5 section 62 of part A of chapter 59 of the laws of 2014, is amended to
6 read as follows:
7 1. The term "corporation" as used in this section shall include an
8 association, within the meaning of paragraph three of subsection (a) of
9 section seventy-seven hundred one of the internal revenue code (includ-
10 ing a limited liability company), a publicly traded partnership treated
11 as a corporation for purposes of the internal revenue code pursuant to
12 section seventy-seven hundred four thereof.
13 Every corporation, joint-stock company or association formed for or
14 principally engaged in the conduct of canal, steamboat, ferry (except a
15 ferry company operating between any of the boroughs of the city of New
16 York under a lease granted by the city), express, navigation, pipe line,
17 transfer, baggage express, omnibus, taxicab, telegraph, mobile telecom-
18 munications or local telephone business, or formed for or principally
19 engaged in the conduct of two or more of such businesses, and every
20 corporation, joint-stock company or association formed for or principal-
21 ly engaged in the conduct of surface railroad, whether or not operated
22 by steam, subway railroad, elevated railroad, palace car, sleeping car
23 or trucking business or formed for or principally engaged in the conduct
24 of two or more such businesses and which has made an election pursuant
25 to subdivision ten of section one hundred eighty-three of this article,
26 and every other corporation, joint-stock company or association formed
27 for or principally engaged in the conduct of a transportation or trans-
28 mission business (other than a telephone business), except a corpo-
29 ration, joint-stock company or association formed for or principally
30 engaged in the conduct of a surface railroad, whether or not operated by
31 steam, subway railroad, elevated railroad, palace car, sleeping car or
32 trucking business or formed for or principally engaged in the conduct of
33 two or more of such businesses and which has not made the election
34 provided for in subdivision ten of section one hundred eighty-three of
35 this article, and, except a corporation, joint-stock company or associ-
36 ation principally engaged in the conduct of aviation (including air
37 freight forwarders acting as principal and like indirect air carriers)
38 and except a corporation principally engaged in providing telecommuni-
39 cation services between aircraft and dispatcher, aircraft and air traf-
40 fic control or ground station and ground station (or any combination of
41 the foregoing), at least ninety percent of the voting stock of which
42 corporation is owned, directly or indirectly, by air carriers and which
43 corporation's principal function is to fulfill the requirements of (i)
44 the federal aviation administration (or the successor thereto) or (ii)
45 the international civil aviation organization (or the successor there-
46 to), relating to the existence of a communication system between
47 aircraft and dispatcher, aircraft and air traffic control or ground
48 station and ground station (or any combination of the foregoing) for the
49 purposes of air safety and navigation and for the privilege of exercis-
50 ing its corporate franchise, or of doing business, or of employing capi-
51 tal, or of owning or leasing property in this state in a corporate or
52 organized capacity, or maintaining an office in this state, shall pay a
53 franchise tax which shall be equal to three-eighths of one percent for
54 taxable years commencing after two thousand, upon its gross earnings
A. 6009 43
1 from all sources within this state; except that, for taxable years
2 commencing on or after January first, nineteen hundred ninety, every
3 corporation, joint-stock company or association formed for or principal-
4 ly engaged in the conduct of a mobile telecommunications business, local
5 telephone business, or telegraph business shall pay a franchise tax
6 which shall be equal to three-eighths of one percent for taxable years
7 commencing after two thousand, upon its gross earnings from all sources
8 within this state, except that a corporation, joint-stock company or
9 association formed for or principally engaged in the conduct of a local
10 telephone business shall exclude the following earnings (but not in any
11 event earnings derived by such taxpayer from the provision of carrier
12 access services) derived by such taxpayer from sales for ultimate
13 consumption of telecommunications service to its customers (i) thirty
14 percent of separately charged intra-LATA toll service (which shall also
15 include interregion regional calling plan service) and (ii) one hundred
16 percent of separately charged inter-LATA, interstate or international
17 telecommunications service; and except that corporations, joint-stock
18 companies or associations formed for or principally engaged in the
19 conduct of canal, steamboat, ferry (except a ferry company operating
20 between any of the boroughs of the city of New York under a lease grant-
21 ed by the city), navigation or any corporation formed for or principally
22 engaged in the operation of vessels, shall pay a franchise tax which
23 shall be equal to three-quarters of one per centum upon its gross earn-
24 ings from all sources within this state, excluding earnings derived from
25 business of an interstate or foreign character; except that for taxable
26 years beginning in nineteen hundred ninety-seven or thereafter, in the
27 case of a corporation, joint-stock company or association which, with
28 respect to taxable years beginning after nineteen hundred ninety-seven,
29 has made an election pursuant to subdivision ten of section one hundred
30 eighty-three of this article and which is formed for or principally
31 engaged in the conduct of surface railroad, whether or not operated by
32 steam, subway railroad, elevated railroad, palace car, sleeping car or
33 trucking business or formed for or principally engaged in the conduct of
34 two or more of such businesses, such corporation, joint-stock company or
35 association shall pay a franchise tax which shall be equal to three-
36 eighths of one percent for taxable years commencing after two thousand,
37 upon its gross earnings from all sources within this state, provided
38 that in the case of a corporation, joint-stock company or association
39 formed for or principally engaged in the conduct of surface railroad,
40 whether or not operated by steam, subway railroad, elevated railroad,
41 palace car or sleeping car business, or formed for or principally
42 engaged in the conduct of two or more of such businesses, such gross
43 earnings shall not include earnings derived from business of an inter-
44 state or foreign character.
45 Provided, however, with respect to railroad, elevated railroad, palace
46 car or sleeping car business or any other corporation formed for or
47 principally engaged in the conduct of a railroad business and canal,
48 steamboat, ferry (except a ferry company operating between any of the
49 boroughs of the city of New York under a lease granted by the city),
50 navigation or any corporation formed for or principally engaged in the
51 operation of vessels where the gross earnings from such transportation
52 business both originating and terminating within this state and travers-
53 ing both this state and another state or states or country shall be
54 subject to the franchise tax imposed by this section (except where such
55 corporation, joint-stock company or association is formed for or princi-
56 pally engaged in the conduct of a railroad (including surface railroad,
A. 6009 44
1 whether or not operated by steam, subway railroad or elevated railroad),
2 palace car or sleeping car business or formed for or principally engaged
3 in the conduct of two or more of such businesses, and has not made the
4 election provided for under subdivision ten of section one hundred
5 eighty-three of this article) and such earnings shall be allocated to
6 this state in the same ratio that the mileage within the state bears to
7 the total mileage of such business. Provided, further, a corporation,
8 joint-stock company or association formed for or principally engaged in
9 the transportation, transmission or distribution of gas, electricity or
10 steam shall not be subject to tax under this section or section one
11 hundred eighty-three of this article.
12 The term "local telephone business" means the provision or furnishing
13 of telecommunication services for hire wherein the service furnished by
14 the provider thereof consists of carrier access service or the service
15 originates and terminates within the same local access and transport
16 area ("LATA"), a local access and transport area being that geographic
17 area as established and approved, and as so set and in existence on July
18 first, nineteen hundred ninety-four, pursuant to the modification of
19 final judgment in United States v. Western Electric Company (civil
20 action no. 82-0192) in the United States district court for the District
21 of Columbia or within the LATA-like Rochester non-associated independent
22 area.
23 The term "mobile telecommunications business" means the provision or
24 furnishing of "mobile telecommunications service" as such term is
25 defined in paragraph twenty-four of subdivision (b) of section eleven
26 hundred one of this chapter.
27 The term "telecommunication services" shall have the meaning ascribed
28 to such term in section one hundred eighty-six-e of this article.
29 § 2. Subdivision 1 of section 184-a of the tax law, as amended by
30 section 2 of part C of chapter 60 of the laws of 2004, the opening para-
31 graph as amended by section 63 of part A of chapter 59 of the laws of
32 2014, is amended to read as follows:
33 1. The term "corporation" as used in this section shall include an
34 association, within the meaning of paragraph three of subsection (a) of
35 section seventy-seven hundred one of the internal revenue code (includ-
36 ing a limited liability company), and a publicly traded partnership
37 treated as a corporation for purposes of the internal revenue code
38 pursuant to section seventy-seven hundred four thereof. Every corpo-
39 ration, joint-stock company or association formed for or principally
40 engaged in the conduct of canal, steamboat, ferry (except a ferry compa-
41 ny operating between any of the boroughs of the city of New York under a
42 lease granted by the city), express, navigation, pipe line, transfer,
43 baggage express, omnibus, taxicab, telegraph, mobile telecommunications
44 or local telephone business, or formed for or principally engaged in the
45 conduct of two or more such businesses, and every corporation, joint-
46 stock company or association formed for or principally engaged in the
47 conduct of a surface railroad, whether or not operated by steam, subway
48 railroad, elevated railroad, palace car, sleeping car or trucking busi-
49 ness or principally engaged in the conduct of two or more such busi-
50 nesses and which has made an election pursuant to subdivision ten of
51 section one hundred eighty-three of this article, and every other corpo-
52 ration, joint-stock company or association formed for or principally
53 engaged in the conduct of a transportation or transmission business
54 (other than a telephone business) except a corporation, joint-stock
55 company or association formed for or principally engaged in the conduct
56 of a surface railroad, whether or not operated by steam, subway rail-
A. 6009 45
1 road, elevated railroad, palace car, sleeping car or trucking business
2 or principally engaged in the conduct of two or more such businesses and
3 which has not made the election provided for in subdivision ten of
4 section one hundred eighty-three of this article, and except a corpo-
5 ration, joint-stock company or association principally engaged in the
6 conduct of aviation (including air freight forwarders acting as princi-
7 pal and like indirect air carriers) and except a corporation principally
8 engaged in providing telecommunication services between aircraft and
9 dispatcher, aircraft and air traffic control or ground station and
10 ground station (or any combination of the foregoing), at least ninety
11 percent of the voting stock of which corporation is owned, directly or
12 indirectly, by air carriers and which corporation's principal function
13 is to fulfill the requirements of (i) the federal aviation adminis-
14 tration (or the successor thereto) or (ii) the international civil
15 aviation organization (or the successor thereto), relating to the exist-
16 ence of a communication system between aircraft and dispatcher, aircraft
17 and air traffic control or ground station and ground station (or any
18 combination of the foregoing) for the purposes of air safety and naviga-
19 tion, shall pay for the privilege of exercising its corporate franchise,
20 or of doing business, or of employing capital, or of owning or leasing
21 property in the metropolitan commuter transportation district in such
22 corporate or organized capacity, or of maintaining an office in such
23 district, a tax surcharge, which tax surcharge, in addition to the tax
24 imposed by section one hundred eighty-four of this article, shall be
25 computed at the rate of seventeen percent of the tax imposed under such
26 section for such taxable years or any part of such taxable years after
27 the deduction of any credits otherwise allowable under this article;
28 provided, however, that such rates of tax surcharge shall be applied
29 only to that portion of the tax imposed under section one hundred eight-
30 y-four of this article after the deduction of any credits otherwise
31 allowable under this article which is attributable to the taxpayer's
32 business activity carried on within the metropolitan commuter transpor-
33 tation district. Provided, however, that for taxable years beginning in
34 two thousand and thereafter, for purposes of this subdivision the tax
35 imposed under section one hundred eighty-four of this article shall be
36 deemed to have been imposed at the rate of three-quarters of one
37 percent, except that in the case of a corporation, joint-stock company
38 or association which has made an election pursuant to subdivision ten of
39 section one hundred eighty-three of this article, for purposes of this
40 subdivision the tax imposed under section one hundred eighty-four of
41 this article shall be deemed to have been imposed at the rate of six-
42 tenths of one percent.
43 The term "local telephone business" shall have the same meaning as
44 such term is used in section one hundred eighty-four of this article.
45 The term "telecommunication services" shall have the meaning ascribed to
46 such term in section one hundred eighty-six-e of this article.
47 The term "mobile telecommunications business" means the provision or
48 furnishing of "mobile telecommunications service" as such term is
49 defined in paragraph twenty-four of subdivision (b) of section eleven
50 hundred one of this chapter.
51 § 3. This act shall take effect immediately and shall apply to taxable
52 years beginning on and after January 1, 2015.
53 PART Q
A. 6009 46
1 Section 1. The tax law is amended by adding a new section 195 to read
2 as follows:
3 § 195. Limitation on refunds or credits. Where any person subject to
4 tax under this article passes through the economic incidence of any tax
5 imposed by this article as a separately stated amount on a bill or
6 invoice furnished to its customer, no refund or credit shall be made to
7 such person of any such amount unless such person shall first establish
8 to the satisfaction of the commissioner that such amount had been repaid
9 to such customer. For purposes of this section, the term "person" shall
10 have the same meaning that is ascribed to it in paragraph (c) of subdi-
11 vision one of section one hundred eighty-six-e of this article.
12 § 2. This act shall take effect immediately and shall apply to any
13 amended return or claim for refund submitted on and after January 1,
14 2015.
15 PART R
16 Section 1. Section 31 of part H of chapter 1 of the laws of 2003,
17 amending the tax law relating to brownfield redevelopment tax credits,
18 remediated brownfield credit for real property taxes for qualified sites
19 and environmental remediation insurance credits, as amended by chapter
20 474 of the laws of 2012, is amended to read as follows:
21 § 31. The tax credits allowed under section 21, 22 or 23 of the tax
22 law and the corresponding provisions in articles 9, 9-A, 22, 32 and 33
23 of the tax law, as added by the provisions of sections one through twen-
24 ty-nine of this act, shall not be applicable if the [remediation]
25 certificate of completion required to qualify for any of such credits is
26 issued after [December 31, 2015] March 31, 2025.
27 § 2. Subdivisions 1 and 3 of section 1285-q of the public authorities
28 law, as added by section 6 of part I of chapter 1 of the laws of 2003,
29 are amended to read as follows:
30 1. Subject to chapter fifty-nine of the laws of two thousand, but
31 notwithstanding any other provisions of law to the contrary, in order to
32 assist the corporation in undertaking the administration and the financ-
33 ing of hazardous waste site remediation projects for payment of the
34 state's share of the costs of the remediation of hazardous waste sites,
35 in accordance with title thirteen of article twenty-seven of the envi-
36 ronmental conservation law and section ninety-seven-b of the state
37 finance law, and for payment of state costs associated with the remedi-
38 ation of offsite contamination at significant threat sites as provided
39 in section 27-1411 of the environmental conservation law, and beginning
40 in state fiscal year two thousand fifteen--two thousand sixteen, for
41 environmental restoration projects pursuant to title five of article
42 fifty-six of the environmental conservation law provided that funding
43 for such project shall not exceed ten percent of the funding appropri-
44 ated for the purposes of financing hazardous waste site remediation
45 projects, pursuant to title thirteen of article twenty-seven of the
46 environmental conservation law, in any state fiscal year pursuant to
47 capital appropriations made to the department of environmental conserva-
48 tion, the director of the division of budget and the corporation are
49 each authorized to enter into one or more service contracts, none of
50 which shall exceed twenty years in duration, upon such terms and condi-
51 tions as the director and the corporation may agree, so as to annually
52 provide to the corporation in the aggregate, a sum not to exceed the
53 annual debt service payments and related expenses required for any bonds
54 and notes authorized pursuant to section twelve hundred ninety of this
A. 6009 47
1 title. Any service contract entered into pursuant to this section shall
2 provide that the obligation of the state to fund or to pay the amounts
3 therein provided for shall not constitute a debt of the state within the
4 meaning of any constitutional or statutory provision and shall be deemed
5 executory only to the extent of moneys available for such purposes,
6 subject to annual appropriation by the legislature. Any such service
7 contract or any payments made or to be made thereunder may be assigned
8 and pledged by the corporation as security for its bonds and notes, as
9 authorized pursuant to section twelve hundred ninety of this title.
10 3. The maximum amount of bonds that may be issued for the purpose of
11 financing hazardous waste site remediation projects and environmental
12 restoration projects authorized by this section shall not exceed [one]
13 two billion two hundred million dollars and shall not exceed one hundred
14 [twenty] million dollars for appropriations enacted for any state fiscal
15 year, provided that the bonds not issued for such appropriations may be
16 issued pursuant to reappropriation in subsequent fiscal years. No bonds
17 shall be issued for the repayment of any new appropriation enacted after
18 March thirty-first, two thousand [thirteen] twenty-five for hazardous
19 waste site remediation projects authorized by this section. Amounts
20 authorized to be issued by this section shall be exclusive of bonds
21 issued to fund any debt service reserve funds, pay costs of issuance of
22 such bonds, and bonds or notes issued to refund or otherwise repay bonds
23 or notes previously issued. Such bonds and notes of the corporation
24 shall not be a debt of the state, and the state shall not be liable
25 thereon, nor shall they be payable out of any funds other than those
26 appropriated by this state to the corporation for debt service and
27 related expenses pursuant to any service contracts executed pursuant to
28 subdivision one of this section, and such bonds and notes shall contain
29 on the face thereof a statement to such effect.
30 § 3. Section 56-0501 of the environmental conservation law, as added
31 by chapter 413 of the laws of 1996, is amended to read as follows:
32 § 56-0501. Allocation of moneys.
33 1. Of the moneys received by the state from the sale of bonds pursuant
34 to the Clean Water/Clean Air Bond Act of 1996, two hundred million
35 dollars ($200,000,000) shall be available for disbursements for environ-
36 mental restoration projects.
37 2. Beginning in state fiscal year two thousand fifteen--two thousand
38 sixteen environmental restoration projects may be funded using the
39 proceeds of bonds issued pursuant to section twelve hundred
40 eighty-five-q of the public authorities law provided that funding for
41 such projects shall conform to the limitations provided in subdivision
42 one of such section.
43 § 4. This act shall take effect immediately and shall be deemed to
44 have been in full force and effect on and after April 1, 2015.
45 PART S
46 Section 1. Paragraph (r) of section 104-A of the business corporation
47 law, as amended by chapter 172 of the laws of 2000, is amended to read
48 as follows:
49 (r) For filing a statement or amendment pursuant to section four
50 hundred eight of this chapter with the department of state, nine
51 dollars.
52 § 2. Paragraphs (b) and (c) of section 306-A of the business corpo-
53 ration law, as added by chapter 469 of the laws of 1997, are amended to
54 read as follows:
A. 6009 48
1 (b) Upon the failure of the designating corporation to file a certif-
2 icate of amendment or change providing for the designation by the corpo-
3 ration of the new address after the filing of a certificate of resigna-
4 tion for receipt of process with the secretary of state, its authority
5 to do business in this state shall be suspended unless the corporation
6 has previously filed a statement [of addresses and directors] under
7 section four hundred eight of this chapter, in which case the address of
8 the principal executive office stated in the last filed statement [of
9 addresses and directors], shall constitute the new address for process
10 of the corporation provided such address is different from the previous
11 address for process, and the corporation shall not be deemed suspended.
12 (c) The filing by the department of state of a certificate of amend-
13 ment or change or statement under section four hundred eight of this
14 chapter providing for a new address by a designating corporation shall
15 annul the suspension and its authority to do business in this state
16 shall be restored and continue as if no suspension had occurred.
17 § 3. Section 408 of the business corporation law, as added by chapter
18 55 of the laws of 1992, the section heading as amended by chapter 375 of
19 the laws of 1998, subparagraph (a) of paragraph 1 and paragraph 2 as
20 amended by chapter 172 of the laws of 1999, subparagraph (b) of para-
21 graph 3 as amended by chapter 170 of the laws of 1994, paragraph 6 as
22 added by chapter 469 of the laws of 1997, and paragraph 7 as added by
23 chapter 172 of the laws of 2000, is amended to read as follows:
24 § 408. [Biennial statement] Statement; filing.
25 1. [Each] Except as provided in paragraph eight of this section, each
26 domestic corporation, and each foreign corporation authorized to do
27 business in this state, shall, during the applicable filing period as
28 determined by subdivision three of this section, file a statement
29 setting forth:
30 (a) The name and business address of its chief executive officer.
31 (b) The street address of its principal executive office.
32 (c) The post office address within or without this state to which the
33 secretary of state shall mail a copy of any process against it served
34 upon him or her. Such address shall supersede any previous address on
35 file with the department of state for this purpose.
36 2. [Such] Except as provided in paragraph eight of this section, such
37 statement shall be made on forms prescribed by the secretary of state,
38 and the information therein contained shall be given as of the date of
39 the execution of the statement. Such statement shall only request
40 reporting of information required under paragraph one of this section.
41 It shall be signed and delivered to the department of state.
42 3. [For] Except as provided in paragraph eight of this section, for
43 the purpose of this section the applicable filing period for a corpo-
44 ration shall be the calendar month during which its original certificate
45 of incorporation or application for authority were filed or the effec-
46 tive date thereof if stated. The applicable filing period shall only
47 occur: (a) annually, during the period starting on April 1, 1992 and
48 ending on March 31, 1994; and (b) biennially, during a period starting
49 on April 1 and ending on March 31 thereafter. Those corporations that
50 filed between April 1, 1992 and June 30, 1994 shall not be required to
51 file such statements again until such time as they would have filed, had
52 this subdivision not been amended.
53 4. The provisions of [subdivision eleven of section ninety-six of the
54 executive law and] paragraph (g) of section one hundred four of this
55 chapter shall not be applicable to filings pursuant to this section.
A. 6009 49
1 5. The provisions of this section and section 409 of this article
2 shall not apply to a farm corporation. For the purposes of this subdivi-
3 sion, the term "farm corporation" shall mean any domestic corporation or
4 foreign corporation authorized to do business in this state under this
5 chapter engaged in the production of crops, livestock and livestock
6 products on land used in agricultural production, as defined in section
7 301 of the agriculture and markets law. However, this exception for farm
8 corporations shall not be applicable if an agreement is made pursuant to
9 paragraph eight of this section so that these statements will be filed
10 with the department of taxation and finance.
11 6. No such statement shall be accepted for filing when a certificate
12 of resignation for receipt of process has been filed under section three
13 hundred six-A of this chapter unless the corporation has stated a
14 different address for process which does not include the name of the
15 party previously designated in the address for process in such certif-
16 icate.
17 7. A domestic corporation or foreign corporation may amend its state-
18 ment to change the information required by [subdivisions] subparagraphs
19 (a) and (b) of paragraph one of this section. Such amendment shall be
20 made on forms prescribed by the secretary of state. It shall be signed
21 and delivered to the department of state.
22 8. (a) The commissioner of taxation and finance and the secretary of
23 state may agree to allow corporations to provide the statement specified
24 in paragraph one of this section on tax reports filed with the depart-
25 ment of taxation and finance in lieu of biennial reports. This agreement
26 may apply to tax reports due for tax years starting on or after January
27 first, two thousand sixteen.
28 (b) If the agreement described in subparagraph (a) of this paragraph
29 is made, each corporation required to file the statement specified in
30 paragraph one of this section that is also subject to tax under article
31 nine or nine-A of the tax law shall include such statement annually on
32 its tax report filed with the department of taxation and finance in lieu
33 of filing a statement under this section with the department of state
34 and in a manner prescribed by the commissioner of taxation and finance.
35 However, each corporation required to file a statement under this
36 section must continue to file the biennial statement required by this
37 section with the department of state until the corporation in fact has
38 filed a tax report with the department of taxation and finance that
39 includes all required information. After that time, the corporation
40 shall continue to deliver annually the statement specified in paragraph
41 one of this section on its tax report in lieu of the biennial statement
42 required by this section.
43 (c) If the agreement described in subparagraph (a) of this paragraph
44 is made, the department of taxation and finance shall deliver to the
45 department of state for filing the statement specified in paragraph one
46 of this section for each corporation that files a tax report containing
47 such statement. The department of taxation and finance must, to the
48 extent feasible, also include the current name of the corporation,
49 department of state identification number for such corporation, the
50 name, signature and capacity of the signer of the statement, name and
51 street address of the filer of the statement, and the email address, if
52 any, of the filer of the statement.
53 § 4. Section 409 of the business corporation law is amended by adding
54 a new paragraph 4 to read as follows:
A. 6009 50
1 4. This section shall not apply to a failure to file a statement for
2 any situation for which a penalty under subdivision (v) of section one
3 thousand eighty-five of the tax law is applicable.
4 § 5. Subdivision (e) of section 301 of the limited liability company
5 law, as amended by chapter 643 of the laws of 1995, is amended to read
6 as follows:
7 (e) [Every] (1) Except as otherwise provided in this subdivision,
8 every limited liability company to which this chapter applies, shall
9 biennially in the calendar month during which its articles of organiza-
10 tion or application for authority were filed, or effective date thereof
11 if stated, file on forms prescribed by the secretary of state, a state-
12 ment setting forth the post office address within or without this state
13 to which the secretary of state shall mail a copy of any process
14 accepted against it served upon him or her. Such address shall supersede
15 any previous address on file with the department of state for this
16 purpose.
17 (2) The commissioner of taxation and finance and the secretary of
18 state may agree to allow limited liability companies to include the
19 statement specified in paragraph one of this subdivision on tax reports
20 filed with the department of taxation and finance in lieu of biennial
21 reports and in a manner prescribed by the commissioner of taxation and
22 finance. If this agreement is made, starting with taxable years begin-
23 ning on or after January first, two thousand sixteen, each limited
24 liability company required to file the statement specified in paragraph
25 one of this subdivision that is subject to the filing fee imposed by
26 paragraph three of subsection (c) of section six hundred fifty-eight of
27 the tax law shall provide such statement annually on its filing fee
28 payment form filed with the department of taxation and finance in lieu
29 of filing a statement under this section with the department of state.
30 However, each limited liability company required to file a statement
31 under this section must continue to file the biennial statement required
32 by this section with the department of state until the limited liability
33 company in fact has filed a filing fee payment form with the department
34 of taxation and finance that includes all required information. After
35 that time, the limited liability company shall continue to provide annu-
36 ally the statement specified in paragraph one of this subdivision on its
37 filing fee payment form in lieu of the biennial statement required by
38 this subdivision.
39 (3) If the agreement described in paragraph two of this subdivision is
40 made, the department of taxation and finance shall deliver to the
41 department of state the statement specified in paragraph one of this
42 subdivision contained on filing fee payment forms. The department of
43 taxation and finance must, to the extent feasible, also include the
44 current name of the limited liability company, department of state iden-
45 tification number for such limited liability company, the name, signa-
46 ture and capacity of the signer of the statement, name and street
47 address of the filer of the statement, and the email address, if any, of
48 the filer of the statement.
49 § 6. Subdivision (c) of section 301-A of the limited liability company
50 law, as added by chapter 448 of the laws of 1998, is amended to read as
51 follows:
52 (c) The filing by the department of state of a certificate of amend-
53 ment or certificate of change or the filing of a statement under section
54 three hundred one of this article providing for a new address by a
55 designating limited liability company shall annul the suspension and its
A. 6009 51
1 authority to do business in this state shall be restored and continued
2 as if no suspension had occurred.
3 § 7. Subdivision (c) of section 1101 of the limited liability company
4 law is amended to read as follows:
5 (c) For the statement of address of the post office address to which
6 the secretary of state shall mail a copy of any process against the
7 limited liability company served upon him or her pursuant to section
8 three hundred one of this chapter, nine dollars. This fee shall not
9 apply if this statement is filed directly with the department of taxa-
10 tion and finance.
11 § 8. Subdivision (g) of section 121-1500 of the partnership law, as
12 amended by chapter 643 of the laws of 1995, is amended to read as
13 follows:
14 (g) Each registered limited liability partnership shall, within sixty
15 days prior to the fifth anniversary of the effective date of its regis-
16 tration and every five years thereafter, furnish a statement to the
17 department of state setting forth: (i) the name of the registered limit-
18 ed liability partnership, (ii) the address of the principal office of
19 the registered limited liability partnership, (iii) the post office
20 address within or without this state to which the secretary of state
21 shall mail a copy of any process accepted against it served upon him or
22 her, which address shall supersede any previous address on file with the
23 department of state for this purpose, and (iv) a statement that it is
24 eligible to register as a registered limited liability partnership
25 pursuant to subdivision (a) of this section. The statement shall be
26 executed by one or more partners of the registered limited liability
27 partnership. The statement shall be accompanied by a fee of twenty
28 dollars if submitted directly to the department of state. The commis-
29 sioner of taxation and finance and the secretary of state may agree to
30 allow registered limited liability partnerships to provide the statement
31 specified in this subdivision on tax reports filed with the department
32 of taxation and finance in lieu of statements filed directly with the
33 secretary of state and in a manner prescribed by the commissioner of
34 taxation and finance. If this agreement is made, starting with taxable
35 years beginning on or after January first, two thousand sixteen, each
36 limited liability partnership required to file the statement specified
37 in this subdivision that is subject to the filing fee imposed by para-
38 graph three of subsection (c) of section six hundred fifty-eight of the
39 tax law shall provide such statement annually on its filing fee payment
40 form filed with the department of taxation and finance in lieu of filing
41 a statement under this subdivision with the department of state. Howev-
42 er, each registered limited liability partnership required to file a
43 statement under this section must continue to file a statement with the
44 department of state as required by this section until the registered
45 limited liability partnership in fact has filed a filing fee payment
46 form with the department of taxation and finance that includes all
47 required information. After that time, the limited liability partnership
48 shall continue to provide annually the statement specified in this
49 subdivision on its filing fee payment form in lieu of the statement
50 required by this subdivision. The commissioner of taxation and finance
51 shall deliver the completed statement specified in this subdivision to
52 the department of state for filing. The department of taxation and
53 finance must, to the extent feasible, also include in such delivery the
54 current name of the registered limited liability partnership, department
55 of state identification number for such registered limited liability
56 partnership, the name, signature and capacity of the signer of the
A. 6009 52
1 statement, name and street address of the filer of the statement, and
2 the email address, if any, of the filer of the statement. If a regis-
3 tered limited liability partnership shall not timely file the statement
4 required by this subdivision, the department of state may, upon sixty
5 days' notice mailed to the address of such registered limited liability
6 partnership as shown in the last registration or statement or certif-
7 icate of amendment filed by such registered limited liability partner-
8 ship, make a proclamation declaring the registration of such registered
9 limited liability partnership to be revoked pursuant to this subdivi-
10 sion. The department of state shall file the original proclamation in
11 its office and shall publish a copy thereof in the state register no
12 later than three months following the date of such proclamation. Upon
13 the publication of such proclamation in the manner aforesaid, the regis-
14 tration of each registered limited liability partnership named in such
15 proclamation shall be deemed revoked without further legal proceedings.
16 Any registered limited liability partnership whose registration was so
17 revoked may file in the department of state a [certificate of consent
18 certifying that either a] statement required by this subdivision [has
19 been filed or accompanies the certificate of consent and all fees
20 imposed under this chapter on the registered limited liability partner-
21 ship have been paid]. The filing of such [certificate of consent] state-
22 ment shall have the effect of annulling all of the proceedings thereto-
23 fore taken for the revocation of the registration of such registered
24 limited liability partnership under this subdivision and (1) the regis-
25 tered limited liability partnership shall thereupon have such powers,
26 rights, duties and obligations as it had on the date of the publication
27 of the proclamation, with the same force and effect as if such proclama-
28 tion had not been made or published and (2) such publication shall not
29 affect the applicability of the provisions of subdivision (b) of section
30 twenty-six of this chapter to any debt, obligation or liability
31 incurred, created or assumed from the date of publication of the procla-
32 mation through the date of the filing of the [certificate of consent.
33 The filing of a certificate of consent shall be accompanied by a fee of
34 fifty dollars and if accompanied by a statement, the fee required by
35 this subdivision] statement with the department of state. If, after the
36 publication of such proclamation, it shall be determined by the depart-
37 ment of state that the name of any registered limited liability partner-
38 ship was erroneously included in such proclamation, the department of
39 state shall make appropriate entry on its records, which entry shall
40 have the effect of annulling all of the proceedings theretofore taken
41 for the revocation of the registration of such registered limited
42 liability partnership under this subdivision and (A) such registered
43 limited liability partnership shall have such powers, rights, duties and
44 obligations as it had on the date of the publication of the proclama-
45 tion, with the same force and effect as if such proclamation had not
46 been made or published and (B) such publication shall not affect the
47 applicability of the provisions of subdivision (b) of section twenty-six
48 of this chapter to any debt, obligation or liability incurred, created
49 or assumed from the date of publication of the proclamation through the
50 date of the making of the entry on the records of the department of
51 state. Whenever a registered limited liability partnership whose regis-
52 tration was revoked shall have filed a [certificate of consent] state-
53 ment pursuant to this subdivision or if the name of a registered limited
54 liability partnership was erroneously included in a proclamation and
55 such proclamation was annulled, the department of state shall publish a
56 notice thereof in the state register.
A. 6009 53
1 § 9. Paragraph (I) of subdivision (f) of section 121-1502 of the part-
2 nership law, as amended by chapter 643 of the laws of 1995 and as desig-
3 nated by chapter 767 of the laws of 2005, is amended to read as follows:
4 (I) Each New York registered foreign limited liability partnership
5 shall, within sixty days prior to the fifth anniversary of the effective
6 date of its notice and every five years thereafter, furnish a statement
7 to the department of state setting forth:
8 (i) the name under which the New York registered foreign limited
9 liability partnership is carrying on or conducting or transacting busi-
10 ness or activities in this state, (ii) the address of the principal
11 office of the New York registered foreign limited liability partnership,
12 (iii) the post office address within or without this state to which the
13 secretary of state shall mail a copy of any process accepted against it
14 served upon him or her, which address shall supersede any previous
15 address on file with the department of state for this purpose, and (iv)
16 a statement that it is a foreign limited liability partnership. The
17 statement shall be executed by one or more partners of the New York
18 registered foreign limited liability partnership. The statement shall be
19 accompanied by a fee of fifty dollars if submitted directly to the
20 department of state. The commissioner of taxation and finance and the
21 secretary of state may agree to allow New York registered foreign limit-
22 ed liability partnerships to provide the statement specified in this
23 paragraph on tax reports filed with the department of taxation and
24 finance in lieu of statements filed directly with the secretary of state
25 and in a manner prescribed by the commissioner of taxation and finance.
26 If this agreement is made, starting with taxable years beginning on or
27 after January first, two thousand sixteen, each New York registered
28 foreign limited liability partnership required to file the statement
29 specified in this paragraph that is subject to the filing fee imposed by
30 paragraph three of subsection (c) of section six hundred fifty-eight of
31 the tax law shall provide such statement annually on its filing fee
32 payment form filed with the department of taxation and finance in lieu
33 of filing a statement under this paragraph directly with the department
34 of state. However, each New York registered foreign limited liability
35 partnership required to file a statement under this section must contin-
36 ue to file a statement with the department of state as required by this
37 section until the New York registered foreign limited liability partner-
38 ship in fact has filed a filing fee payment form with the department of
39 taxation and finance that includes all required information. After that
40 time, the New York registered foreign limited liability partnership
41 shall continue to provide annually the statement specified in this para-
42 graph on its filing fee payment form in lieu of filing the statement
43 required by this paragraph directly with the department of state. The
44 commissioner of taxation and finance shall deliver the completed state-
45 ment specified in this paragraph to the department of state for filing.
46 The department of taxation and finance must, to the extent feasible,
47 also include in such delivery the current name of the New York regis-
48 tered foreign limited liability partnership, department of state iden-
49 tification number for such New York registered foreign limited liability
50 partnership, the name, signature and capacity of the signer of the
51 statement, name and street address of the filer of the statement, and
52 the email address, if any, of the filer of the statement. If a New York
53 registered foreign limited liability partnership shall not timely file
54 the statement required by this subdivision, the department of state may,
55 upon sixty days' notice mailed to the address of such New York regis-
56 tered foreign limited liability partnership as shown in the last notice
A. 6009 54
1 or statement or certificate of amendment filed by such New York regis-
2 tered foreign limited liability partnership, make a proclamation declar-
3 ing the status of such New York registered foreign limited liability
4 partnership to be revoked pursuant to this subdivision. The department
5 of state shall file the original proclamation in its office and shall
6 publish a copy thereof in the state register no later than three months
7 following the date of such proclamation. Upon the publication of such
8 proclamation in the manner aforesaid, the status of each New York regis-
9 tered foreign limited liability partnership named in such proclamation
10 shall be deemed revoked without further legal proceedings. Any New York
11 registered foreign limited liability partnership whose status was so
12 revoked may file in the department of state a [certificate of consent
13 certifying that either a] statement required by this subdivision [has
14 been filed or accompanies the certificate of consent and all fees
15 imposed under this chapter on the New York registered foreign limited
16 liability partnership have been paid]. The filing of such [certificate
17 of consent] statement shall have the effect of annulling all of the
18 proceedings theretofore taken for the revocation of the status of such
19 New York registered foreign limited liability partnership under this
20 subdivision and (1) the New York registered foreign limited liability
21 partnership shall thereupon have such powers, rights, duties and obli-
22 gations as it had on the date of the publication of the proclamation,
23 with the same force and effect as if such proclamation had not been made
24 or published and (2) such publication shall not affect the applicability
25 of the laws of the jurisdiction governing the agreement under which such
26 New York registered foreign limited liability partnership is operating
27 (including laws governing the liability of partners) to any debt, obli-
28 gation or liability incurred, created or assumed from the date of publi-
29 cation of the proclamation through the date of the filing of the
30 [certificate of consent. The filing of a certificate of consent shall be
31 accompanied by a fee of fifty dollars and if accompanied by a statement,
32 the fee required by this subdivision] statement with the department of
33 state. If, after the publication of such proclamation, it shall be
34 determined by the department of state that the name of any New York
35 registered foreign limited liability partnership was erroneously
36 included in such proclamation, the department of state shall make appro-
37 priate entry on its records, which entry shall have the effect of
38 annulling all of the proceedings theretofore taken for the revocation of
39 the status of such New York registered foreign limited liability part-
40 nership under this subdivision and (1) such New York registered foreign
41 limited liability partnership shall have such powers, rights, duties and
42 obligations as it had on the date of the publication of the proclama-
43 tion, with the same force and effect as if such proclamation had not
44 been made or published and (2) such publication shall not affect the
45 applicability of the laws of the jurisdiction governing the agreement
46 under which such New York registered foreign limited liability partner-
47 ship is operating (including laws governing the liability of partners)
48 to any debt, obligation or liability incurred, created or assumed from
49 the date of publication of the proclamation through the date of the
50 making of the entry on the records of the department of state. Whenever
51 a New York registered foreign limited liability partnership whose status
52 was revoked shall have filed a [certificate of consent] statement pursu-
53 ant to this subdivision or if the name of a New York registered foreign
54 limited liability partnership was erroneously included in a proclamation
55 and such proclamation was annulled, the department of state shall
56 publish a notice thereof in the state register.
A. 6009 55
1 § 10. Subdivision (d) of section 121-1506 of the partnership law, as
2 amended by chapter 172 of the laws of 1999, is amended to read as
3 follows:
4 (d) The filing by the department of state of a certificate of amend-
5 ment or the filing of a statement providing for a new address by a
6 designating limited liability partnership shall annul the suspension and
7 its authority to do business in this state shall be restored and contin-
8 ued as if no suspension had occurred.
9 § 11. Section 192 of the tax law is amended by adding a new subdivi-
10 sion 5 to read as follows:
11 5. Notwithstanding the provisions of section two hundred two of this
12 article, the commissioner shall provide the statements and other
13 required information requested on tax reports under section four hundred
14 eight of the business corporation law to the secretary of state for
15 filing. Such provision may also include a copy or image of that portion
16 of the report solely pertinent to such information to the extent feasi-
17 ble. The commissioner may also provide information on noncompliance.
18 § 12. Section 211 of the tax law is amended by adding a new subdivi-
19 sion 15 to read as follows:
20 15. Notwithstanding the provisions of subdivision eight of this
21 section, the commissioner shall provide the statements and other
22 required information requested on tax reports under section four hundred
23 eight of the business corporation law to the secretary of state for
24 filing. Such provision may also include a copy or image of that portion
25 of the report solely pertinent to such information to the extent feasi-
26 ble. The commissioner any also provide information on noncompliance.
27 § 13. Paragraph 3 of subsection (c) of section 658 of the tax law is
28 amended by adding a new subparagraph (E) to read as follows:
29 (E) Notwithstanding the provisions of subsection (e) of section six
30 hundred ninety-seven of this article, the commissioner shall provide the
31 statements and other required information included on the filing fee
32 payment form under section three hundred one of the limited liability
33 company law, subdivision (f) of section 121-1502 of the partnership law,
34 and subdivision (d) of section 121-1506 of the partnership law to the
35 secretary of state for filing. Such provision may also include a copy
36 or image of that portion of the report solely pertinent to such informa-
37 tion to the extent feasible. The commissioner may also provide informa-
38 tion on noncompliance.
39 § 14. Section 1085 of the tax law is amended by adding a new
40 subsection (v) to read as follows:
41 (v) Failure to supply all the information required or to provide
42 correct information in secretary of state statements. Unless it is shown
43 that such failure to provide the statement and information required by
44 section four hundred eight of the business corporation law is due to
45 reasonable cause and not to willful neglect, there shall, upon notice
46 and demand by the commissioner and in the same manner as tax, be paid by
47 the taxpayer failing to supply complete and correct information, a
48 penalty of two hundred fifty dollars per taxpayer required to provide
49 such information.
50 § 15. Section 685 of the tax law is amended by adding a new subsection
51 (dd) to read as follows:
52 (dd) Failure to supply all the information required or to provide
53 correct information in secretary of state statements. Unless it is shown
54 that such failure to provide the statement and information required by
55 subdivision (e) of section three hundred one of the limited liability
56 company law, subdivision (f) of section 121-1502 of the partnership law,
A. 6009 56
1 or subdivision (d) of section 121-1506 of the partnership law is due to
2 reasonable cause and not to willful neglect, there shall, upon notice
3 and demand by the commissioner and in the same manner as tax, be paid by
4 the taxpayer failing to supply complete and correct information, a
5 penalty of two hundred and fifty dollars per limited liability company
6 required to provide such information on its filing fee payment form.
7 § 16. This act shall take effect immediately.
8 PART T
9 Section 1. Paragraph (a) of subdivision 5 of section 208 of the tax
10 law, as amended by section 4 of part A of chapter 59 of the laws of
11 2014, is amended to read as follows:
12 (a) The term "investment capital" means investments in stocks that are
13 held by the taxpayer for more than six consecutive months but are not
14 [held for sale to customers] and have never been used by the taxpayer in
15 the regular course of business, or, if the taxpayer makes the election
16 provided for in subparagraph one of paragraph (a) of subdivision five of
17 section two hundred ten-A of this article, are not qualified financial
18 instruments as described in subdivision five of section two hundred
19 ten-A of this article. Stock in a corporation that is conducting a
20 unitary business with the taxpayer, stock in a corporation that is
21 included in a combined report with the taxpayer pursuant to the commonly
22 owned group election in subdivision three of section two hundred ten-C
23 of this article, and stock issued by the taxpayer shall not constitute
24 investment capital. For purposes of this subdivision, if the taxpayer
25 owns or controls, directly or indirectly, less than twenty percent of
26 the voting power of the stock of a corporation, that corporation will be
27 presumed to be conducting a business that is not unitary with the busi-
28 ness of the taxpayer.
29 § 2. Paragraph (d) of subdivision 5 of section 208 of the tax law, as
30 added by section 4 of part A of chapter 59 of the laws of 2014, is
31 amended to read as follows:
32 (d) If a taxpayer acquires stock during the second half of its taxable
33 year and owns that stock on the last day of the taxable year, it will be
34 presumed, solely for purposes of determining whether that stock should
35 be classified as investment capital after it is acquired, that the
36 taxpayer held that stock for more than six consecutive months during the
37 taxable year. This presumption shall apply only if the taxpayer in fact
38 owns the stock at the time it files its original report for the taxable
39 year in which it acquires the stock. However, if the taxpayer does not
40 in fact hold that stock as investment capital for more than six consec-
41 utive months, the taxpayer must increase its total business capital in
42 the immediately succeeding taxable year by the amount included in
43 investment capital for that stock, net of any liabilities attributable
44 to that stock computed as provided in paragraph (b) of this subdivision
45 and must increase its business income in the immediately succeeding
46 taxable year by the amount of income and net gains (but not less than
47 zero) from that stock included in investment income, less any interest
48 deductions directly or indirectly attributable to that stock, as
49 provided in subdivision six of this section.
50 § 3. Paragraph (e) of subdivision 5 of section 208 of the tax law, as
51 added by section 4 of part A of chapter 59 of the laws of 2014, is
52 amended to read as follows:
53 (e) When income or gain from a debt obligation or other security
54 cannot be apportioned to the state using the [business allocation
A. 6009 57
1 percentage] apportionment factor determined under section two hundred
2 ten-A of this article as a result of United States constitutional prin-
3 ciples, the debt obligation or other security will be included in
4 investment capital.
5 § 4. Paragraph (f) of subdivision 5 of section 208 of the tax law is
6 REPEALED.
7 § 5. Paragraph (a) of subdivision 6 of section 208 of the tax law, as
8 amended by section 4 of part A of chapter 59 of the laws of 2014, is
9 amended to read as follows:
10 (a) The term "investment income" means income, including capital gains
11 in excess of capital losses, from investment capital, to the extent
12 included in computing entire net income, less, (i) in the discretion of
13 the commissioner, any interest deductions allowable in computing entire
14 net income which are directly or indirectly attributable to investment
15 capital or investment income, [and (ii) the taxpayer's loss, deduction
16 and/or expense attributable to any transaction, or series of trans-
17 actions, entered into to manage the risk of price changes or currency
18 fluctuations with respect to any item of investment capital that is held
19 or to be held by the taxpayer, or the aggregate investment capital that
20 is held or to be held by the taxpayer, if all of the risk, or all but a
21 de minimis amount of the risk, is with respect to investment capital,]
22 provided, however, that in no case shall investment income exceed entire
23 net income. (ii) If the amount of interest deductions subtracted under
24 [subparagraph (i) or subparagraph (ii) of this paragraph or under both
25 of those subparagraphs] subparagraph (i) of this paragraph exceeds
26 investment income, the excess of such amount over investment income must
27 be added back to entire net income.
28 § 6. Subclause (ii) of clause (B) of subparagraph 1 of paragraph (r)
29 of subdivision 9 of section 208 of the tax law, as added by section 4 of
30 part A of chapter 59 of the laws of 2014, is amended to read as follows:
31 (ii) Measurement of assets. For purposes of this paragraph: (I) Total
32 assets are those assets that are properly reflected on a balance sheet,
33 computed in the same manner as is required by the banking regulator of
34 the taxpayers included in the combined return.
35 (II) Assets will only be included if the income or expenses of which
36 are properly reflected (or would have been properly reflected if not
37 fully depreciated or expensed, or depreciated or expensed to a nominal
38 amount) in the computation of the combined group's entire net income for
39 the taxable year. Assets will not include deferred tax assets and intan-
40 gible assets identified as "goodwill".
41 (III) Tangible real and personal property, such as buildings, land,
42 machinery, and equipment shall be valued at cost. Leased assets will be
43 valued at the annual lease payment multiplied by eight. Intangible prop-
44 erty, such as loans and investments, shall be valued at book value
45 exclusive of reserves.
46 (IV) Intercorporate stockholdings and bills, notes and accounts
47 receivable, and other intercorporate indebtedness between the corpo-
48 rations included in the combined report shall be eliminated.
49 (V) Average assets are computed using the assets measured on the first
50 day of the taxable year, and on the last day of each subsequent quarter
51 of the taxable year or month or day during the taxable year.
52 § 7. Clause (B) of subparagraph 2 and clause (B) of subparagraph 2-a
53 of paragraph (s) of subdivision 9 of section 208 of the tax law, as
54 added by section 4 of part A of chapter 59 of the laws of 2014, are
55 amended to read as follows:
A. 6009 58
1 (B) The average value during the taxable year of the assets of the
2 taxpayer, or, if the taxpayer is included in a combined report, the
3 assets of the combined reporting group of the taxpayer under section two
4 hundred ten-C of this article, must not exceed eight billion dollars.
5 (B) The average value during the taxable year of the assets of the
6 taxpayer, or, if the taxpayer is included in a combined report, the
7 assets of the combined reporting group of the taxpayer under section two
8 hundred ten-C of this article, must not exceed eight billion dollars.
9 § 8. Paragraph (d) of subdivision 1 of section 209 of the tax law, as
10 added by section 5 of part A of chapter 59 of the laws of 2014, is
11 amended to read as follows:
12 (d)(i) A corporation with less than one million dollars but at least
13 ten thousand dollars of receipts within this state in a taxable year
14 that is part of a [combined reporting] unitary group that meets the
15 ownership test under section two hundred ten-C of this article is deriv-
16 ing receipts from activity in this state if the receipts within this
17 state of the members of the [combined reporting] unitary group that have
18 at least ten thousand dollars of receipts within this state in the
19 aggregate meet the threshold set forth in paragraph (b) of this subdivi-
20 sion.
21 (ii) A corporation that does not meet any of the thresholds set forth
22 in paragraph (c) of this subdivision but has at least ten customers, or
23 locations, or customers and locations, as described in paragraph (c) of
24 this subdivision, and is part of a [combined reporting] unitary group
25 that meets the ownership test under section two hundred ten-C of this
26 article [that] is doing business in this state if the number of custom-
27 ers, locations, or customers and locations, within this state of the
28 members of the [combined reporting] unitary group that have at least ten
29 customers, locations, or customers and locations, within this state in
30 the aggregate meets any of the thresholds set forth in paragraph (c) of
31 this subdivision.
32 § 9. Paragraph (d) of subdivision 1 of section 209-B of the tax law,
33 as added by section 7 of part A of chapter 59 of the laws of 2014, is
34 amended to read as follows:
35 (d)(i) A corporation with less than one million dollars but at least
36 ten thousand dollars of receipts within the metropolitan commuter trans-
37 portation district in a taxable year that is part of a [combined report-
38 ing] unitary group that meets the ownership test under section two
39 hundred ten-C of this article is deriving receipts from activity in the
40 metropolitan commuter transportation district if the receipts within the
41 metropolitan commuter transportation district of the members of the
42 [combined reporting] unitary group that have at least ten thousand
43 dollars of receipts within the metropolitan commuter transportation
44 district in the aggregate meet the threshold set forth in paragraph (b)
45 of this subdivision.
46 (ii) A corporation that does not meet any of the thresholds set forth
47 in paragraph (c) of this subdivision but has at least ten customers, or
48 locations, or customers and locations, as described in paragraph (c),
49 and is part of a [combined reporting] unitary group that meets the
50 ownership test under section two hundred ten-C of this article [that] is
51 doing business in the metropolitan commuter transportation district if
52 the number of customers, locations, or customers and locations, within
53 the metropolitan commuter transportation district of the members of the
54 [combined reporting] unitary group that have at least ten customers,
55 locations, or customers and locations, within the metropolitan commuter
A. 6009 59
1 transportation district in the aggregate meets any of the thresholds set
2 forth in paragraph (c) of this subdivision.
3 § 10. The opening paragraph of paragraph (a) of subdivision 1 of
4 section 210 of the tax law, as amended by section 12 of part A of chap-
5 ter 59 of the laws of 2014, is amended to read as follows:
6 For taxable years beginning before January first, two thousand
7 sixteen, the amount prescribed by this paragraph shall be computed at
8 the rate of seven and one-tenth percent of the taxpayer's business
9 income base. For taxable years beginning on or after January first, two
10 thousand sixteen, the amount prescribed by this paragraph shall be six
11 and one-half percent of the taxpayer's business income base. The taxpay-
12 er's business income base shall mean the portion of the taxpayer's busi-
13 ness income allocated within the state as hereinafter provided. However,
14 in the case of a small business taxpayer, as defined in paragraph (f) of
15 this subdivision, the amount prescribed by this paragraph shall be
16 computed pursuant to subparagraph (iv) of this paragraph and in the case
17 of a manufacturer, as defined in subparagraph (vi) of this paragraph,
18 the amount prescribed by this paragraph shall be computed pursuant to
19 subparagraph (vi) of this paragraph, and, in the case of a qualified
20 emerging technology company, as defined in subparagraph (vii) of this
21 paragraph, the amount prescribed by this paragraph shall be computed
22 pursuant to subparagraph (vii) of this paragraph.
23 § 11. Subparagraph (vi) of paragraph (a) of subdivision 1 of section
24 210 of the tax law, as amended by section 12 of part A of chapter 59 of
25 the laws of 2014, is amended to read as follows:
26 (vi) for taxable years beginning on or after January first, two thou-
27 sand fourteen, the amount prescribed by this paragraph for a taxpayer
28 which is a qualified New York manufacturer, shall be computed at the
29 rate of zero percent of the taxpayer's business income base. The term
30 "manufacturer" shall mean a taxpayer which during the taxable year is
31 principally engaged in the production of goods by manufacturing, proc-
32 essing, assembling, refining, mining, extracting, farming, agriculture,
33 horticulture, floriculture, viticulture or commercial fishing. However,
34 the generation and distribution of electricity, the distribution of
35 natural gas, and the production of steam associated with the generation
36 of electricity shall not be qualifying activities for a manufacturer
37 under this subparagraph. Moreover, in the case of a combined report, the
38 combined group shall be considered a "manufacturer" for purposes of this
39 subparagraph only if the combined group during the taxable year is prin-
40 cipally engaged in the activities set forth in this paragraph, or any
41 combination thereof. A taxpayer or, in the case of a combined report, a
42 combined group shall be "principally engaged" in activities described
43 above if, during the taxable year, more than fifty percent of the gross
44 receipts of the taxpayer or combined group, respectively, are derived
45 from receipts from the sale of goods produced by such activities. In
46 computing a combined group's gross receipts, intercorporate receipts
47 shall be eliminated. A "qualified New York manufacturer" is a manufac-
48 turer which has property in New York which is described in clause (A) of
49 subparagraph (i) of paragraph (b) of subdivision one of section two
50 hundred ten-B of this article and either (I) the adjusted basis of such
51 property for federal income tax purposes at the close of the taxable
52 year is at least one million dollars or (II) all of its real and
53 personal property is located in New York. A taxpayer or, in the case of
54 a combined report, a combined group, that does not satisfy the princi-
55 pally engaged test may be a qualified New York manufacturer if the
56 taxpayer or the combined group employs during the taxable year at least
A. 6009 60
1 two thousand five hundred employees in manufacturing in New York and the
2 taxpayer or the combined group has property in the state used in manu-
3 facturing, the adjusted basis of which for federal income tax purposes
4 at the close of the taxable year is at least one hundred million
5 dollars.
6 § 12. Subparagraph (vii) of paragraph (a) of subdivision 1 of section
7 210 of the tax law, as amended by section 12 of part A of chapter 59 of
8 the laws of 2014, is amended to read as follows:
9 (vii) For a taxpayer that is defined as a qualified emerging technolo-
10 gy company under paragraph (c) of subdivision one of section thirty-one
11 hundred two-e of the public authorities law regardless of the ten
12 million dollar limitation expressed in subparagraph one of such para-
13 graph (c) the amount prescribed by this paragraph shall be computed at
14 the rate [at which the tax is computed in effect for taxable years
15 beginning on or after January first, two thousand thirteen and before
16 January first, two thousand fourteen for such qualified emerging tech-
17 nology companies shall be reduced by nine and two-tenths percent for
18 taxable years commencing on or after January first, two thousand four-
19 teen and before January first, two thousand fifteen, twelve and three-
20 tenths percent for taxable years commencing on or after January first,
21 two thousand fifteen and before January first, two thousand sixteen,
22 fifteen and four-tenths percent for taxable years commencing on or after
23 January first, two thousand sixteen and before January first, two thou-
24 sand eighteen, and twenty-five percent for taxable years beginning on or
25 after January first, two thousand eighteen] of 5.7 percent for taxable
26 years beginning on or after January first, two thousand fifteen and
27 before January first, two thousand sixteen, 5.5 percent for taxable
28 years beginning on or after January first two thousand sixteen and
29 before January first, two thousand eighteen, and 4.875 percent for taxa-
30 ble years beginning on or after January first, two thousand eighteen. In
31 the case of a combined report, each corporation included in the combined
32 report must qualify as a qualified emerging technology company in order
33 for the tax rates provided by this subparagraph to apply.
34 § 13. Item (IV) of subclause 2 of clause (B) of subparagraph (viii) of
35 paragraph (a) of subdivision 1 of section 210 of the tax law, as added
36 by section 12 of part A of chapter 59 of the laws of 2014, is amended to
37 read as follows:
38 (IV) In lieu of the subtraction described in item (III) of this
39 subclause, if the taxpayer so elects, the taxpayer's prior net operating
40 loss conversion subtraction for the tax years beginning on or after
41 January first, two thousand fifteen and before January first, two thou-
42 sand seventeen shall equal in each year, not more than one-half of its
43 net operating loss conversion subtraction pool until the pool is
44 exhausted. If the pool is not exhausted at the end of such time period,
45 the remainder of the pool shall be forfeited. The taxpayer shall make
46 such election on its first return for the tax year beginning on or after
47 January first, two thousand fifteen and before January first, two thou-
48 sand sixteen by the due date for such return (determined with regard to
49 extensions).
50 § 14. Subclause 4 of clause (B) of subparagraph (viii) of paragraph
51 (a) of subdivision 1 of section 210 of the tax law, as added by section
52 12 of part A of chapter 59 of the laws of 2014, is amended to read as
53 follows:
54 (4) The prior net operating loss conversion subtraction may be used to
55 reduce the taxpayer's tax on allocated business income to the higher of
56 the tax on the capital base under paragraph (b) of this subdivision or
A. 6009 61
1 the fixed dollar minimum under paragraph (d) of this subdivision. [Any]
2 Unless the taxpayer has made the election provided for in item (IV) of
3 subclause two of this clause, any amount of unused subtraction shall be
4 carried forward to subsequent tax year or years until [tax] the prior
5 net operating loss conversion subtraction pool is exhausted, but for no
6 longer than twenty taxable years or the taxable year beginning on or
7 after January first, two thousand thirty-five but before January first,
8 two thousand thirty-six, whichever comes first. Such amount carried
9 forward shall not be subject to the one-tenth limitation for the subse-
10 quent tax year or years. However, if the taxpayer elects to compute its
11 prior net operating loss conversion subtraction pursuant to item (IV) of
12 subclause two of this clause, the taxpayer shall not carry forward any
13 unused amount of such subtraction [beyond its] to any tax year beginning
14 on or after [January first, two thousand sixteen and before] January
15 first, two thousand seventeen.
16 § 15. The opening paragraph of subparagraph (ix) of paragraph (a) of
17 subdivision 1 of section 210 of the tax law, as added by section 12 of
18 part A of chapter 59 of the laws of 2014, is amended to read as follows:
19 In computing the business income base, a net operating loss deduction
20 shall be allowed. A net operating loss deduction is the amount of net
21 operating loss or losses from one or more taxable years that are carried
22 forward or carried back to a particular [income] taxable year. A net
23 operating loss is the amount of a business loss incurred in a particular
24 tax year multiplied by the apportionment factor for that year as deter-
25 mined under section two hundred ten-A of this article. The maximum net
26 operating loss deduction that is allowed in a taxable year is the amount
27 that reduces the taxpayer's tax on [allocated] apportioned business
28 income to the higher of the tax on the capital base or the fixed dollar
29 minimum. Such deduction and loss are determined in accordance with the
30 following:
31 § 16. Clauses 4 and 6 of subparagraph (ix) of paragraph (a) of subdi-
32 vision 1 or section 210 of the tax law, as added by section 12 of part A
33 of chapter 59 of the laws of 2014, are amended to read as follows:
34 (4) [A net operating loss may be carried forward to each of the twenty
35 taxable years following the taxable year of the loss. A net operating
36 loss may be carried back to each of the three taxable years preceding
37 the taxable year of the loss; provided, however no loss can be carried
38 back to a tax year prior to a tax year beginning on or after January,
39 first, two thousand fifteen. A taxpayer must apply both of these limita-
40 tions in computing such net operating loss deduction.] A net operating
41 loss may be carried back three taxable years preceding the taxable year
42 of the loss. However no loss can be carried back to a taxable year
43 beginning before January first, two thousand fifteen. The loss is first
44 carried to the earliest of the three taxable years. If it is not entire-
45 ly used in that year, it is carried to the second taxable year preceding
46 the loss year, and any remaining amount is carried to the taxable year
47 immediately preceding the loss year. Any unused amount of loss then
48 remaining may be carried forward for as many as twenty taxable years
49 following the loss year. Losses carried forward are carried forward
50 first to the taxable year immediately following the loss year, then to
51 the second taxable year following the loss year, and then to the next
52 immediately subsequent taxable year or years until the loss is used up
53 or the twentieth taxable year following the loss year, whichever comes
54 first.
55 (6) Where there are two or more allocated net operating losses, or
56 portions thereof, carried back or carried forward to be deducted in one
A. 6009 62
1 particular tax year from allocated business income, the earliest allo-
2 cated loss incurred must be applied first.
3 § 17. Subparagraph (ix) of paragraph (a) of subdivision 1 of section
4 210 of the tax law is amended by adding a new clause 7 to read as
5 follows:
6 (7) A taxpayer may elect to waive the entire carryback period with
7 respect to a net operating loss. Such election must be made on the
8 taxpayer's original timely filed return (determined with regard to
9 extensions) for the taxable year of the net operating loss for which the
10 election is to be in effect. Once an election is made for a taxable
11 year, it shall be irrevocable for that taxable year. A separate election
12 must be made for each loss year. This election applies to all members of
13 a combined group.
14 § 18. Paragraph (b) of subdivision 1 of section 210 of the tax law, as
15 amended by section 12 of part A of chapter 59 of the laws of 2014, is
16 amended to read as follows:
17 (b) Capital base. (1) The amount prescribed by this paragraph shall be
18 computed at .15 percent for each dollar of the taxpayer's total business
19 capital, or the portion thereof allocated within the state as hereinaft-
20 er provided for taxable years beginning before January first, two thou-
21 sand sixteen. However, in the case of a cooperative housing corporation
22 as defined in the internal revenue code, the applicable rate shall be
23 .04 percent until taxable years beginning on or after January first, two
24 thousand twenty. The rate of tax for subsequent tax years shall be as
25 follows: .125 percent for taxable years beginning on or after January
26 first, two thousand sixteen and before January first, two thousand
27 seventeen; .100 percent for taxable years beginning on or after January
28 first, two thousand seventeen and before January first, two thousand
29 eighteen; .075 percent for taxable years beginning on or after January
30 first, two thousand eighteen and before January first, two thousand
31 nineteen; .050 percent for taxable years beginning on or after January
32 first, two thousand nineteen and before January first, two thousand
33 twenty; .025 percent for taxable years beginning on or after January
34 first, two thousand twenty and before January first, two thousand twen-
35 ty-one; and zero percent for years beginning on or after January first,
36 two thousand twenty-one. The rate of tax for a qualified New York
37 manufacturer [for tax years subsequent to taxable years beginning on or
38 after January first, two thousand fifteen and before January first, two
39 thousand sixteen] shall be .132 percent for taxable years beginning on
40 or after January first, two thousand fifteen and before January first,
41 two thousand sixteen, .106 percent for taxable years beginning on or
42 after January first, two thousand sixteen and before January first, two
43 thousand seventeen, .085 percent for taxable years beginning on or after
44 January first, two thousand seventeen and before January first, two
45 thousand eighteen; .056 percent for taxable years beginning on or after
46 January first, two thousand eighteen and before January first, two thou-
47 sand nineteen; .038 percent for taxable years beginning on or after
48 January first, two thousand nineteen and before January first, thousand
49 twenty; .019 percent for taxable years beginning on or after January
50 first, two thousand twenty and before January first, two thousand twen-
51 ty-one; and zero percent for years beginning on or after January first,
52 two thousand twenty-one. In no event shall the amount prescribed by this
53 paragraph exceed three hundred fifty thousand dollars for qualified New
54 York manufacturers and for all other taxpayers five million dollars.
55 (2) For purposes of subparagraph one of this paragraph, the term
56 "manufacturer" shall mean a taxpayer which during the taxable year is
A. 6009 63
1 principally engaged in the production of goods by manufacturing, proc-
2 essing, assembling, refining, mining, extracting, farming, agriculture,
3 horticulture, floriculture, viticulture or commercial fishing. Moreover,
4 for purposes of computing the capital base in a combined report, the
5 combined group shall be considered a "manufacturer" for purposes of this
6 subparagraph only if the combined group during the taxable year is prin-
7 cipally engaged in the activities set forth in this subparagraph, or any
8 combination thereof. A taxpayer or, in the case of a combined report, a
9 combined group shall be "principally engaged" in activities described
10 above if, during the taxable year, more than fifty percent of the gross
11 receipts of the taxpayer or combined group, respectively, are derived
12 from receipts from the sale of goods produced by such activities. In
13 computing a combined group's gross receipts, intercorporate receipts
14 shall be eliminated. A "qualified New York manufacturer" is a manufac-
15 turer that has property in New York that is described in subdivision one
16 of section [210-B] two hundred ten-B of this article and either (i) the
17 adjusted basis of that property for federal income tax purposes at the
18 close of the taxable year is at least one million dollars or (ii) all of
19 its real and personal property is located in New York. In addition, a
20 "qualified New York manufacturer" means a taxpayer that is defined as a
21 qualified emerging technology company under paragraph (c) of subdivision
22 one of section thirty-one hundred two-e of the public authorities law
23 regardless of the ten million dollar limitation expressed in subpara-
24 graph one of such paragraph. In the case of a combined report, each
25 corporation included in the combined report must qualify as a qualified
26 emerging technology company in order for the preferential tax rates
27 provided by this paragraph to apply. A taxpayer or, in the case of a
28 combined report, a combined group, that does not satisfy the principally
29 engaged test may be a qualified New York manufacturer if the taxpayer or
30 the combined group employs during the taxable year at least two thousand
31 five hundred employees in manufacturing in New York and the taxpayer or
32 the combined group has property in the state used in manufacturing, the
33 adjusted basis of which for federal income tax purposes at the close of
34 the taxable year is at least one hundred million dollars.
35 § 19. Subparagraph 1 of paragraph (d) of subdivision 1 of section 210
36 of the tax law, as amended by section 12 of part A of chapter 59 of the
37 laws of 2014, is amended to read as follows:
38 (1) (A) The amount prescribed by this paragraph for New York S corpo-
39 rations, other than New York S corporations that are qualified New York
40 manufacturers or qualified emerging technology companies, will be deter-
41 mined in accordance with the following table:
42 If New York receipts are: The fixed dollar minimum tax is:
43 not more than $100,000 $ 25
44 more than $100,000 but not over $250,000 $ 50
45 more than $250,000 but not over $500,000 $ 175
46 more than $500,000 but not over $1,000,000 $ 300
47 more than $1,000,000 but not over $5,000,000 $1,000
48 more than $5,000,000 but not over $25,000,000 $3,000
49 Over $25,000,000 $4,500
50 (B) Provided further, the amount prescribed by this paragraph for New
51 York S corporations that are qualified New York manufactures, as defined
52 in subparagraph (vi) of paragraph (a) of this subdivision, and for New
53 York S corporations that are qualified emerging technology companies
54 under paragraph (c) of subdivision one of section thirty-one hundred
A. 6009 64
1 two-e of the public authorities law regardless of the ten million dollar
2 limitation expressed in subparagraph one of such paragraph (c), will be
3 determined in accordance with the following tables.
4 For taxable years beginning on or after January 1, 2015 and before Janu-
5 ary 1, 2016:
6 If New York receipts are:The fixed dollar minimum tax is:
7 not more than $100,000$ 22
8 more than $100,000 but not over $250,000$ 44
9 more than $250,000 but not over $500,000$ 153
10 more than $500,000 but not over $1,000,000$ 263
11 more than $1,000,000 but not over $5,000,000$ 877
12 more than $5,000,000 but not over $25,000,000$2,631
13 Over $25,000,000$3,947
14 For taxable years beginning on or after January 1, 2016 and before Janu-
15 ary 1, 2018:
16 If New York receipts are:The fixed dollar minimum tax is:
17 not more than $100,000$ 21
18 more than $100,000 but not over $250,000$ 42
19 more than $250,000 but not over $500,000$ 148
20 more than $500,000 but not over $1,000,000$ 254
21 more than $1,000,000 but not over $5,000,000$ 846
22 more than $5,000,000 but not over $25,000,000$2,538
23 Over $25,000,000$3,807
24 For taxable years beginning on or after January 1, 2018:
25 If New York receipts are:The fixed dollar minimum tax is:
26 not more than $100,000$ 19
27 more than $100,000 but not over $250,000$ 38
28 more than $250,000 but not over $500,000$ 131
29 more than $500,000 but not over $1,000,000$ 225
30 more than $1,000,000 but not over $5,000,000$ 750
31 more than $5,000,000 but not over $25,000,000$2,250
32 Over $25,000,000$3,375
33 (C) Provided further, the amount prescribed by this paragraph for a
34 qualified New York manufacturer, as defined in subparagraph (vi) of
35 paragraph (a) of this subdivision, and a qualified emerging technology
36 company under paragraph (c) of subdivision one of section thirty-one
37 hundred two-e of the public authorities law regardless of the ten
38 million dollar limitation expressed in subparagraph one of such para-
39 graph (c), that is not a New York S corporation, will be determined in
40 accordance with the following tables[:]. However, with respect to quali-
41 fied New York manufacturers, the amounts in these tables will apply in
42 the case of a combined report only if the combined group satisfies the
43 requirements to be a qualified New York manufacturer as set forth in
44 such subparagraph (vi). With respect to qualified emerging technology
45 companies, the amounts in these tables will apply in the case of a
46 combined report only if each corporation included in the combined report
47 qualifies as a qualified emerging technology company.
48 [For tax years beginning on or after January 1, 2014 and before January
49 1, 2015:
A. 6009 65
1 If New York receipts are: The fixed dollar minimum tax is:
2 not more than $100,000 $ 23
3 more than $100,000 but not over $250,000 $ 68
4 more than $250,000 but not over $500,000 $ 159
5 more than $500,000 but not over $1,000,000 $ 454
6 more than $1,000,000 but not over $5,000,000 $1,362
7 more than $5,000,000 but not over $25,000,000 $3,178
8 Over $25,000,000 $4,500]
9 For tax years beginning on or after January 1, 2015 and before January
10 1, 2016:
11 If New York receipts are: The fixed dollar minimum tax is:
12 not more than $100,000 $ 22
13 more than $100,000 but not over $250,000 $ 66
14 more than $250,000 but not over $500,000 $ 153
15 more than $500,000 but not over $1,000,000 $ 439
16 more than $1,000,000 but not over $5,000,000 $1,316
17 more than $5,000,000 but not over $25,000,000 $3,070
18 Over $25,000,000 $4,385
19 For tax years beginning on or after January 1, 2016 and before January
20 1, 2018:
21 If New York receipts are: The fixed dollar minimum tax is:
22 not more than $100,000 $ 21
23 more than $100,000 but not over $250,000 $ 63
24 more than $250,000 but not over $500,000 $ 148
25 more than $500,000 but not over $1,000,000 $ 423
26 more than $1,000,000 but not over $5,000,000 $1,269
27 more than $5,000,000 but not over $25,000,000 $2,961
28 Over $25,000,000 $4,230
29 For tax years beginning on or after January 1, 2018:
30 If New York receipts are: The fixed dollar minimum tax is:
31 not more than $100,000 $ 19
32 more than $100,000 but not over $250,000 $ 56
33 more than $250,000 but not over $500,000 $ 131
34 more than $500,000 but not over $1,000,000 $ 375
35 more than $1,000,000 but not over $5,000,000 $1,125
36 more than $5,000,000 but not over $25,000,000 $2,625
37 Over $25,000,000 $3,750
38 (D) Otherwise, for all other taxpayers not covered by clauses (A), (B)
39 and (C) of this subparagraph, the amount prescribed by this paragraph
40 will be determined in accordance with the following table:
41 If New York receipts are: The fixed dollar minimum tax is:
42 not more than $100,000 $ 25
43 more than $100,000 but not over $250,000 $ 75
44 more than $250,000 but not over $500,000 $ 175
45 more than $500,000 but not over $1,000,000 $ 500
46 more than $1,000,000 but not over $5,000,000 $1,500
47 more than $5,000,000 but not over $25,000,000 $3,500
48 more than $25,000,000 but not over $50,000,000 $5,000
A. 6009 66
1 more than $50,000,000 but not over $100,000,000 $10,000
2 more than $100,000,000 but not over $250,000,000 $20,000
3 more than $250,000,000 but not over $500,000,000 $50,000
4 more than $500,000,000 but not over $1,000,000,000 $100,000
5 Over $1,000,000,000 $200,000
6 (E) For purposes of this paragraph, New York receipts are the receipts
7 included in the numerator of the apportionment factor determined under
8 section two hundred ten-A for the taxable year.
9 § 20. Paragraph (f) of subdivision 1 of section 210 of the tax law, as
10 amended by section 12 of part A of chapter 59 of the laws of 2014, is
11 amended to read as follows:
12 (f) For purposes of this section, the term "small business taxpayer"
13 shall mean a taxpayer (i) which has an entire net income of not more
14 than three hundred ninety thousand dollars for the taxable year; (ii)
15 the aggregate amount of money and other property received by the corpo-
16 ration for stock, as a contribution to capital, and as paid-in surplus,
17 does not exceed one million dollars; (iii) which is not part of an
18 affiliated group, as defined in section 1504 of the internal revenue
19 code, unless such group, if it had filed a report under this article on
20 a combined basis, would have itself qualified as a "small business
21 taxpayer" pursuant to this subdivision; and (iv) which has an average
22 number of individuals, excluding general executive officers, employed
23 full-time in the state during the taxable year of one hundred or fewer.
24 If the taxable period to which subparagraph (i) of this paragraph
25 applies is less than twelve months, entire net income under such subpar-
26 agraph shall be placed on an annual basis by multiplying the entire net
27 income by twelve and dividing the result by the number of months in the
28 period. For purposes of subparagraph (ii) of this paragraph, the amount
29 taken into account with respect to any property other than money shall
30 be the amount equal to the adjusted basis to the corporation of such
31 property for determining gain, reduced by any liability to which the
32 property was subject or which was assumed by the corporation. The deter-
33 mination under the preceding sentence shall be made as of the time the
34 property was received by the corporation. For purposes of subparagraph
35 [(iii)] (iv) of this [section] paragraph, "average number of individ-
36 uals, excluding general executive officers, employed full-time" shall be
37 computed by ascertaining the number of such individuals employed by the
38 taxpayer on the thirty-first day of March, the thirtieth day of June,
39 the thirtieth day of September and the thirty-first day of December
40 during each taxable year or other applicable period, by adding together
41 the number of such individuals ascertained on each of such dates and
42 dividing the sum so obtained by the number of such dates occurring with-
43 in such taxable year or other applicable period. An individual employed
44 full-time means an employee in a job consisting of at least thirty-five
45 hours per week, or two or more employees who are in jobs that together
46 constitute the equivalent of a job at least thirty-five hours per week
47 (full-time equivalent). Full-time equivalent employees in the state
48 [includes] include all employees regularly connected with or working out
49 of an office or place of business of the taxpayer within the state.
50 § 21. Subdivision 1 of section 210-A of the tax law, as added by
51 section 16 of part A of chapter 59 of the laws of 2014, is amended to
52 read as follows:
53 1. General. Business income and capital shall be apportioned to the
54 state by the apportionment factor determined pursuant to this section.
55 The apportionment factor is a fraction, determined by including only
A. 6009 67
1 those receipts, net income, net gains, and other items described in this
2 section that are included in the computation of the taxpayer's business
3 income (determined without regard to the modification provided in
4 subparagraph nineteen of paragraph (a) of subdivision nine of section
5 two hundred eight of this article) for the taxable year. The numerator
6 of the apportionment fraction shall be equal to the sum of all the
7 amounts required to be included in the numerator pursuant to the
8 provisions of this section and the denominator of the apportionment
9 fraction shall be equal to the sum of all the amounts required to be
10 included in the denominator pursuant to the provisions of this section.
11 § 22. Paragraph (c) of subdivision 2 of section 210-A of the tax law,
12 as added by section 16 of part A of chapter 59 of the laws of 2014, is
13 amended to read as follows:
14 (c) Receipts from sales of tangible personal property and electricity
15 that are traded as commodities, as [described] the term "commodity" is
16 defined in section 475 of the internal revenue code, are included in the
17 apportionment fraction in accordance with clause (I) of subparagraph two
18 of paragraph (a) of subdivision five of this section.
19 § 23. The opening paragraph and paragraph 1 of paragraph (a) of subdi-
20 vision 5 of section 210-A of the tax law, as added by section 16 of part
21 A of chapter 59 of the laws of 2014, are amended to read as follows:
22 A financial instrument is a "qualified financial instrument" if it is
23 eligible or required to be marked to market under section 475 or section
24 1256 of the internal revenue code, provided that loans secured by real
25 property shall not be qualified financial instruments. A financial
26 instrument is a "nonqualified financial instrument" if it is not a qual-
27 ified financial instrument.
28 (1) Fixed percentage method for qualified financial instruments. In
29 determining the inclusion of receipts and net gains from qualified
30 financial instruments in the apportionment fraction, taxpayers may elect
31 to use the fixed percentage method described in this subparagraph for
32 qualified financial instruments. The election is irrevocable, applies to
33 all qualified financial instruments, and must be made on an annual basis
34 on the taxpayer's original, timely filed return. If the taxpayer elects
35 the fixed percentage method, then all income, gain or loss, including
36 marked to market net gains as defined in clause (J) of subparagraph two
37 of this paragraph, from qualified financial instruments constitutes
38 business income, gain or loss. If the taxpayer does not elect to use the
39 fixed percentage method, then receipts and net gains are included in the
40 apportionment fraction in accordance with the customer sourcing method
41 described in subparagraph two of this paragraph. Under the fixed
42 percentage method, eight percent of all net income (not less than zero)
43 from qualified financial instruments is included in the numerator of the
44 apportionment fraction. All net income (not less than zero) from quali-
45 fied financial instruments is included in the denominator of the appor-
46 tionment fraction.
47 § 24. Subclause (iv) of clause (A) of subparagraph 2 of paragraph (a)
48 of subdivision 5 of section 210-A of the tax law, as added by section 16
49 of part A of chapter 59 of the laws of 2014, is amended to read as
50 follows:
51 (iv) Net gains (not less than zero) from sales of loans not secured by
52 real property are included in the numerator of the apportionment frac-
53 tion as provided in this subclause. The amount of net gains from the
54 sale of loans not secured by real property included in the numerator of
55 the apportionment fraction is determined by multiplying the net gains by
56 a fraction, the numerator of which is the amount of gross proceeds from
A. 6009 68
1 sales of loans not secured by real property to purchasers located within
2 the state and the denominator of which is the amount of gross [receipts]
3 proceeds from sales of loans not secured by real property to purchasers
4 located within and without the state. Gross proceeds shall be determined
5 after the deduction of any cost incurred to acquire the loans but shall
6 not be less than zero. Net gains (not less than zero) from sales of
7 loans not secured by real property are included in the denominator of
8 the apportionment fraction.
9 § 25. Clause (A) of subparagraph 2 of paragraph (a) of subdivision 5
10 of section 210-A of the tax law is amended by adding a new subclause (v)
11 to read as follows:
12 (v) For purposes of this subdivision, a loan is secured by real prop-
13 erty if fifty percent or more of the value of the collateral used to
14 secure the loan, when valued at fair market value as of the time the
15 loan was entered into, consists of real property.
16 § 26. Subparagraph 2 of paragraph (a) of subdivision 5 of section
17 210-A of the tax law is amended by adding a new clause (J) to read as
18 follows:
19 (J) Marked to market net gains. (i) For purposes of this clause,
20 "marked to market" mean that a financial instrument is, under section
21 475 or section 1256 of the internal revenue code, treated by the taxpay-
22 er as sold for its fair market value on the last business day of the
23 taxpayer's taxable year. "Marked to market gain or loss" means the gain
24 or loss recognized by the taxpayer under section 475 or section 1256 of
25 the internal revenue code because the financial instrument is treated as
26 sold for its fair market value on the last business day of the taxable
27 year.
28 (ii) The amount of marked to market net gains (not less than zero)
29 from each type of financial instrument that is marked to market included
30 in the numerator of the apportionment fraction is determined by multi-
31 plying the marked to market net gains (but not less than zero) from such
32 type of the financial instrument by a fraction, the numerator of which
33 is the numerator of the apportionment fraction for the net gains from
34 that type of financial instrument determined under the applicable clause
35 of this subparagraph and the denominator of which is the denominator of
36 the apportionment fraction for the net gains for that type of financial
37 instrument determined under the applicable clause of this subparagraph.
38 Marked to market net gains (not less than zero) from financial instru-
39 ments for which the numerator of the apportionment fraction is deter-
40 mined under the immediately preceding sentence are included in the
41 denominator of the apportionment fraction.
42 (iii) If the type of financial instrument that is marked to market is
43 not otherwise sourced by the taxpayer under this subparagraph, or if the
44 taxpayer has a net loss from the sales of that type of financial instru-
45 ment under the applicable clause of this subparagraph, the amount of
46 marked to market net gains (not less than zero) from that type of finan-
47 cial instrument included in the numerator of the apportionment fraction
48 is determined by multiplying the marked to market net gains (but not
49 less than zero) from that type of financial instrument by a fraction,
50 the numerator of which is the sum of the amount of receipts included in
51 the numerator of the apportionment fraction under clauses (A), (B), (C),
52 (D), (E), (F), (G), (H) or (I) of this subparagraph and subclause (ii)
53 of this clause, and the denominator of which is the sum of the amount of
54 reciepts included in the denominator of the apportionment fraction under
55 clauses (A), (B), (C), (D), (E), (F), (G), (H) or (I) and subclause (ii)
56 of this clause. Marked to market net gains (not less than zero) for
A. 6009 69
1 which the amount to be included in the numerator of the apportionment
2 fraction is determined under the immediately preceding sentence are
3 included in the denominator of the apportionment fraction.
4 § 27. Paragraph (e) of subdivision 5 of section 210-A of the tax law,
5 as added by section 16 of part A of chapter 59 of the laws of 2014, is
6 amended to read as follows:
7 (e) For purposes of this subdivision, a taxpayer shall use the follow-
8 ing hierarchy to determine the commercial domicile of a business entity,
9 based on the information known to the taxpayer or information that would
10 be known upon reasonable inquiry: (i) [the location of the treasury
11 function of the business entity; (ii)] the seat of management and
12 control of the business entity; and [(iii)] (ii) the billing address of
13 the business entity in the taxpayer's records. The taxpayer must exer-
14 cise due diligence before rejecting [a] the first method in this hierar-
15 chy and proceeding to the next method.
16 § 28. Section 210-A of the tax law is amended by adding a new subdivi-
17 sion 6-a to read as follows:
18 6-a. Receipts from the operation of vessels. Receipts from the opera-
19 tion of vessels are included in the numerator of the apportionment frac-
20 tion as follows. The amount of receipts from the operation of vessels
21 included in the numerator of the apportionment fraction is determined by
22 multiplying the amount of such receipts by a fraction, the numerator of
23 which is the aggregate number of working days of the vessels owned or
24 leased by the taxpayer in territorial waters of the state during the
25 period covered by the taxpayer's report and the denominator of which is
26 the aggregate number of working days of all vessels owned or leased by
27 the taxpayer during such period.
28 § 29. The opening paragraph of clause (A) of subparagraph 1 of para-
29 graph (b) of subdivision 7 of section 210-A of the tax law, as added by
30 section 16 of part A of chapter 59 of the laws of 2014, is amended to
31 read as follows:
32 The portion of receipts of a taxpayer from aviation services (other
33 than services described in paragraph (a) of this subdivision, but
34 including the receipts of a qualified air freight forwarder) to be
35 included in the numerator of the apportionment fraction shall be deter-
36 mined by multiplying its receipts from such aviation services by a
37 percentage which is equal to the arithmetic average of the following
38 three percentages:
39 § 30. Paragraph (b) of subdivision 7 of section 210-A of the tax law
40 is amended by adding a new subparagraph 3 to read as follows:
41 (3) A corporation is a qualified air freight forwarder with respect to
42 another corporation:
43 (A) if it owns or controls either directly or indirectly all of the
44 capital stock of such other corporation, or if all of its capital stock
45 is owned or controlled either directly or indirectly by such other
46 corporation, or if all of the capital stock of both corporations is
47 owned or controlled either directly or indirectly by the same interests,
48 (B) if it is principally engaged in the business of air freight
49 forwarding, and
50 (C) if its air freight forwarding business is carried on principally
51 with the airline or airlines operated by such other corporation.
52 § 31. Subparagraph (i) of paragraph (b) and paragraph (d) of subdivi-
53 sion 1 of section 210-B of the tax law, as added by section 17 of part A
54 of chapter 59 of the laws of 2014, are amended to read as follows:
55 (i) A credit shall be allowed under this subdivision with respect to
56 tangible personal property and other tangible property, including build-
A. 6009 70
1 ings and structural components of buildings, which are: depreciable
2 pursuant to section one hundred sixty-seven of the internal revenue
3 code, have a useful life of four years or more, are acquired by purchase
4 as defined in section one hundred seventy-nine (d) of the internal
5 revenue code, have a situs in this state and are (A) principally used by
6 the taxpayer in the production of goods by manufacturing, processing,
7 assembling, refining, mining, extracting, farming, agriculture, horti-
8 culture, floriculture, viticulture or commercial fishing, (B) industrial
9 waste treatment facilities or air pollution control facilities, used in
10 the taxpayer's trade or business, (C) research and development property,
11 or (D) principally used in the ordinary course of the taxpayer's trade
12 or business as a broker or dealer in connection with the purchase or
13 sale (which shall include but not be limited to the issuance, entering
14 into, assumption, offset, assignment, termination, or transfer) of
15 stocks, bonds or other securities as defined in section four hundred
16 seventy-five (c)(2) of the Internal Revenue Code, or of commodities as
17 defined in section four hundred seventy-five (e) of the Internal Revenue
18 Code, (E) principally used in the ordinary course of the taxpayer's
19 trade or business of providing investment advisory services for a regu-
20 lated investment company as defined in section eight hundred fifty-one
21 of the Internal Revenue Code, or lending, loan arrangement or loan orig-
22 ination services to customers in connection with the purchase or sale
23 (which shall include but not be limited to the issuance, entering into,
24 assumption, offset, assignment, termination, or transfer) of securities
25 as defined in section four hundred seventy-five (c)(2) of the Internal
26 Revenue Code, (F) [originally] principally used in the ordinary course
27 of the taxpayer's business as an exchange registered as a national secu-
28 rities exchange within the meaning of sections 3(a)(1) and 6(a) of the
29 Securities Exchange Act of 1934 or a board of trade as defined in
30 [section 1410(a)(1) of the New York Not-for-Profit Corporation Law]
31 subparagraph one of paragraph (a) of section fourteen hundred ten of the
32 not-for-profit corporation law or as an entity that is wholly owned by
33 one or more such national securities exchanges or boards of trade and
34 that provides automation or technical services thereto, or (G) princi-
35 pally used as a qualified film production facility including qualified
36 film production facilities having a situs in an empire zone designated
37 as such pursuant to article eighteen-B of the general municipal law,
38 where the taxpayer is providing three or more services to any qualified
39 film production company using the facility, including such services as a
40 studio lighting grid, lighting and grip equipment, multi-line phone
41 service, broadband information technology access, industrial scale elec-
42 trical capacity, food services, security services, and heating, venti-
43 lation and air conditioning. For purposes of clauses (D), (E) and (F) of
44 this subparagraph, property purchased by a taxpayer affiliated with a
45 regulated broker, dealer, registered investment advisor, national secu-
46 rities exchange or board of trade, is allowed a credit under this subdi-
47 vision if the property is used by its affiliated regulated broker, deal-
48 er, registered investment advisor, national securities exchange or board
49 of trade in accordance with this subdivision. For purposes of determin-
50 ing if the property is principally used in qualifying uses, the uses by
51 the taxpayer described in clauses (D) and (E) of this subparagraph may
52 be aggregated. In addition, the uses by the taxpayer, its affiliated
53 regulated broker, dealer and registered investment advisor under either
54 or both of those clauses may be aggregated. Provided, however, a taxpay-
55 er shall not be allowed the credit provided by clauses (D), (E) and (F)
56 of this subparagraph unless the property is first placed in service
A. 6009 71
1 before October first, two thousand fifteen and (i) eighty percent or
2 more of the employees performing the administrative and support func-
3 tions resulting from or related to the qualifying uses of such equipment
4 are located in this state or (ii) the average number of employees that
5 perform the administrative and support functions resulting from or
6 related to the qualifying uses of such equipment and are located in this
7 state during the taxable year for which the credit is claimed is equal
8 to or greater than ninety-five percent of the average number of employ-
9 ees that perform these functions and are located in this state during
10 the thirty-six months immediately preceding the year for which the cred-
11 it is claimed, or (iii) the number of employees located in this state
12 during the taxable year for which the credit is claimed is equal to or
13 greater than ninety percent of the number of employees located in this
14 state on December thirty-first, nineteen hundred ninety-eight or, if the
15 taxpayer was not a calendar year taxpayer in nineteen hundred ninety-
16 eight, the last day of its first taxable year ending after December
17 thirty-first, nineteen hundred ninety-eight. If the taxpayer becomes
18 subject to tax in this state after the taxable year beginning in nine-
19 teen hundred ninety-eight, then the taxpayer is not required to satisfy
20 the employment test provided in the preceding sentence of this subpara-
21 graph for its first taxable year. For purposes of clause (iii) of this
22 subparagraph the employment test will be based on the number of employ-
23 ees located in this state on the last day of the first taxable year the
24 taxpayer is subject to tax in this state. If the uses of the property
25 must be aggregated to determine whether the property is principally used
26 in qualifying uses, then either each affiliate using the property must
27 satisfy this employment test or this employment test must be satisfied
28 through the aggregation of the employees of the taxpayer, its affiliated
29 regulated broker, dealer, and registered investment adviser using the
30 property. For purposes of this subdivision, the term "goods" shall not
31 include electricity.
32 (d) Except as otherwise provided in this paragraph, the credit allowed
33 under this subdivision for any taxable year shall not reduce the tax due
34 for such year to less than the [higher of the amounts prescribed in
35 paragraphs (c) and] fixed dollar minimum amount prescribed in paragraph
36 (d) of subdivision one of [this] section two hundred ten of this
37 article. However, if the amount of credit allowable under this subdivi-
38 sion for any taxable year reduces the tax to such amount or if the
39 taxpayer otherwise pays tax based on the fixed dollar minimum amount,
40 any amount of credit allowed for a taxable year commencing prior to
41 January first, nineteen hundred eighty-seven and not deductible in such
42 taxable year may be carried over to the following year or years and may
43 be deducted from the taxpayer's tax for such year or years but in no
44 event shall such credit be carried over to taxable years commencing on
45 or after January first, two thousand two, and any amount of credit
46 allowed for a taxable year commencing on or after January first, nine-
47 teen hundred eighty-seven and not deductible in such year may be carried
48 over to the fifteen taxable years next following such taxable year and
49 may be deducted from the taxpayer's tax for such year or years. In lieu
50 of such carryover, any such taxpayer which qualifies as a new business
51 under paragraph [(j)] (f) of this subdivision may elect to treat the
52 amount of such carryover as an overpayment of tax to be credited or
53 refunded in accordance with the provisions of section ten hundred eight-
54 y-six of this chapter, provided, however, the provisions of subsection
55 (c) of section ten hundred eighty-eight of this chapter notwithstanding,
56 no interest shall be paid thereon.
A. 6009 72
1 § 32. Subdivision 27 of section 210-B of the tax law, as added by
2 section 17 of part A of chapter 59 of the laws of 2014, is amended to
3 read as follows:
4 27. Credits of New York S corporations. (a) General. Notwithstanding
5 the provisions of this section, no carryover of credit allowable in a
6 New York C year shall be deducted from the tax otherwise due under this
7 article in a New York S year, and no credit allowable in a New York S
8 year, or carryover of such credit, shall be deducted from the tax
9 imposed by this article. However, a New York S year shall be treated as
10 a taxable year for purposes of determining the number of taxable years
11 to which a credit may be carried over under this section. Notwithstand-
12 ing the first sentence of this subdivision, however, the credit for the
13 special additional mortgage recording tax shall be allowed as provided
14 in subdivision [fifteen] nine of this section, and the carryover of any
15 such credit shall be determined without regard to whether the credit is
16 carried from a New York C year to a New York S year or vice-versa.
17 § 33. Subdivision 1, subparagraphs (i) and (ii) of paragraph (d) and
18 paragraphs (d-1) and (e) of subdivision 4, and subdivision 7 of section
19 210-C of the tax law, as added by section 18 of part A of chapter 59 of
20 the laws of 2014, are amended to read as follows:
21 1. Tax. (a) The tax on a combined report shall be the highest of (i)
22 the combined business income base multiplied by the tax rate specified
23 in paragraph (a) of subdivision one of section two hundred ten of this
24 article; (ii) the combined capital base multiplied by the tax rate spec-
25 ified in paragraph (b) of subdivision one of section two hundred ten of
26 this article, but not exceeding the limitation provided for in that
27 paragraph (b); or (iii) the fixed dollar minimum that is attributable to
28 the designated agent of the combined group. In addition, the tax on a
29 combined report shall include the fixed dollar minimum tax specified in
30 paragraph (d) of subdivision one of section two hundred ten of this
31 article for each member of the combined group, other than the designated
32 agent, that is a taxpayer.
33 (b) The combined business income base is the amount of the combined
34 business income of the combined group that is apportioned to the state,
35 reduced by any prior net operating loss conversion subtraction and any
36 net operating loss deduction for the combined group. The combined capi-
37 tal base is the amount of the combined capital of the combined group
38 that is apportioned to the state.
39 (i) A net operating loss deduction is allowed in computing the
40 combined business income base. Such deduction may reduce the tax on the
41 combined business income base to the higher of the tax on the combined
42 capital base or the fixed dollar minimum amount that is attributable to
43 the designated agent of the combined group. A combined net operating
44 loss deduction is equal to the amount of combined net operating loss or
45 losses from one or more taxable years that are carried forward or
46 carried back to a particular [income] taxable year. A combined net oper-
47 ating loss is the combined business loss incurred in a particular taxa-
48 ble year multiplied by the combined apportionment factor for that year
49 determined as provided in subdivision five of this section.
50 (ii) The combined net operating loss deduction and combined net oper-
51 ating loss are also subject to the provisions contained in clauses one
52 through [six] seven of subparagraph (ix) of paragraph (a) of subdivision
53 one of section two hundred ten of this article.
54 (d-1) A prior net operating loss conversion subtraction is allowed in
55 computing the combined business income base, as provided in subparagraph
56 (viii) of paragraph (a) of subdivision one of section two hundred ten of
A. 6009 73
1 this article. Such subtraction may reduce the tax on the combined busi-
2 ness income base to the higher of the tax on the combined capital base
3 or the fixed dollar minimum amount that is attributable to the desig-
4 nated agent of the combined group.
5 (e) Any election made pursuant to paragraph (b) of subdivision six,
6 [and] paragraphs (b) and (c) of subdivision six-a of section two hundred
7 eight, and item (IV) of subclause two of clause (B) of subparagraph
8 (viii) and clause seven of subparagraph (ix) of paragraph (a) of subdi-
9 vision one of section two hundred ten of this article shall apply to all
10 members of the combined group.
11 7. Designated agent. Each combined group shall have one designated
12 agent for the combined group, which shall be a taxpayer. [The designated
13 agent is the parent corporation of the combined group. If there is no
14 such parent corporation, or the parent corporation is not a taxpayer,
15 then another member of the combined group that is a taxpayer may be
16 appointed as the designated agent.] Only the designated agent may act on
17 behalf of the members of the combined group for matters relating to the
18 combined report.
19 § 34. Paragraph 1 of subdivision (c) of section 40 of the tax law, as
20 added by section 4 of part A of chapter 68 of the laws of 2013, is
21 amended to read as follows:
22 (1) ascertaining the percentage that the average value of the busi-
23 ness's real and tangible personal property, whether owned or rented to
24 it, in the tax-free NY area in which the business was located during the
25 period covered by the taxpayer's report or return bears to the average
26 value of the business's real and tangible personal property, whether
27 owned or rented to it, within the state during such period; provided
28 that the term "value of the business's real and tangible personal prop-
29 erty" shall have the same meaning as such term has in [subparagraph one
30 of] paragraph (a) of subdivision [three] two of section [two hundred
31 ten] two hundred nine-B of this chapter; and
32 § 35. Clause (ii) of subparagraph (B) of paragraph 2 of subdivision
33 (d) of section 40 of the tax law, as added by section 4 of part A of
34 chapter 68 of the laws of 2013, is amended to read as follows:
35 (ii) For purposes of article nine-A of this chapter, the term "part-
36 ner's income from the partnership" means partnership items of income,
37 gain, loss and deduction, and New York modifications thereto, entering
38 into [entire net] business income [or minimum taxable income] and the
39 term "partner's entire income" means [entire net] business income [or
40 minimum taxable income], allocated within the state. For purposes of
41 article twenty-two of this chapter, the term "partner's income from the
42 partnership" means partnership items of income, gain, loss and
43 deduction, and New York modifications thereto, entering into New York
44 adjusted gross income, and the term "partner's entire income" means New
45 York adjusted gross income.
46 § 36. Subparagraph (C) of paragraph 2 of subdivision (d) of section 40
47 of the tax law, as added by section 4 of part A of chapter 68 of the
48 laws of 2013, is amended to read as follows:
49 (C) (i) Where the taxpayer is a shareholder of a New York S corpo-
50 ration that is a business located in a tax-free NY area, the sharehold-
51 er's tax factor shall be that portion of the amount determined in para-
52 graph one of this subdivision that is attributable to the income of the
53 S corporation. Such attribution shall be made in accordance with the
54 ratio of the shareholder's income from the S corporation allocated with-
55 in the state, entering into New York adjusted gross income, to the
56 shareholder's New York adjusted gross income, or in accordance with such
A. 6009 74
1 other methods as the commissioner may prescribe as providing an appor-
2 tionment that reasonably reflects the portion of the shareholder's tax
3 attributable to the income of such business. The income of the S corpo-
4 ration allocated within the state shall be determined by multiplying the
5 income of the S corporation by [the] a business allocation factor
6 [computed under paragraph (a) of subdivision three of section two
7 hundred ten of this article without regard to subparagraph ten of such
8 paragraph (a)] that shall be determined in clause (ii) of this subpara-
9 graph. In no event may the ratio so determined exceed 1.0.
10 (ii) The business allocation factor for purposes of this subparagraph
11 shall be computed by adding together the property factor specified in
12 subclause (I) of this clause, the wage factor specified in subclause
13 (II) of this clause and the apportionment factor determined under
14 section two hundred ten-A of this chapter and dividing by three.
15 (I) The property factor shall be determined by ascertaining the
16 percentage that the average value of the business's real and tangible
17 personal property, whether owned or rented to it, within the state
18 during the period covered by the taxpayer's report or return bears to
19 the average value of the business's real and tangible personal property,
20 whether owned or rented to it, within and without the state during such
21 period; provided that the term "value of the business's real and tangi-
22 ble personal property" shall have the same meaning as such term has in
23 paragraph (a) of subdivision two of section two hundred nine-B of this
24 chapter.
25 (II) The wage factor shall be determined by ascertaining the percent-
26 age that the total wages, salaries and other personal service compen-
27 sation, similarly computed, during such period of employees, except
28 general executive officers, employed at the business's location or
29 locations within the state, bears to the total wages, salaries and other
30 personal service compensation, similarly computed, during such period,
31 of all the business's employees within and without the state, except
32 general executive officers.
33 § 37. Subparagraph (B) of paragraph 3 of subdivision (d) of section 40
34 of the tax law, as added by section 4 of part A of chapter 68 of the
35 laws of 2013, is amended to read as follows:
36 (B) The term "income of the business located in a tax-free NY area"
37 means [entire net] business income [or minimum taxable income] calcu-
38 lated as if the taxpayer was filing separately and the term "combined
39 group's income" means [entire net] business income [or minimum taxable
40 income] as shown on the combined report, allocated within the state.
41 § 38. Paragraph 1 of subdivision (e) of section 40 of the tax law, as
42 added by section 4 of part A of chapter 68 of the laws of 2013, is
43 amended to read as follows:
44 (1) Article 9-A: section [210] 210-B, subdivision [47] 41.
45 § 39. Paragraph 1 of subsection (i) of section 660 of the tax law, as
46 amended by section 74 of part A of chapter 59 of the laws of 2014, is
47 amended to read as follows:
48 (1) Notwithstanding the provisions in subsection (a) of this section,
49 in the case of an eligible S corporation for which the election under
50 subsection (a) of this section is not in effect for the current taxable
51 year, the shareholders of an eligible S corporation are deemed to have
52 made that election effective for the eligible S corporation's entire
53 current taxable year, if the eligible S corporation's investment income
54 for the current taxable year is more than fifty percent of its federal
55 gross income for such year. In determining whether an eligible S [corpo-
56 ration's investment income] corporation is deemed to have made that
A. 6009 75
1 election, the [investment] income of a qualified subchapter S subsidiary
2 owned directly or indirectly by the eligible S corporation shall be
3 included with the income of the eligible S corporation.
4 § 40. This act shall take effect immediately and shall be deemed to be
5 in full force and effect on the same date as part A of chapter 59 of the
6 laws of 2014.
7 PART U
8 Section 1. Paragraph 33 of subdivision (a) of section 1115 of the tax
9 law, as added by section 99 of part A of chapter 389 of the laws of
10 1997, is amended to read as follows:
11 (33) Wine or wine product, and the bottles, corks, caps, and labels
12 used to package such wine or wine product, furnished by the official
13 agent of a farm winery, winery, wholesaler, or importer at a wine tast-
14 ing held in accordance with [section eighty of] the alcoholic beverage
15 control law to a customer or prospective customer who consumes such wine
16 at such wine tasting.
17 § 2. Section 1118 of the tax law is amended by adding a new subdivi-
18 sion (13) to read as follows:
19 (13) In respect to the use of the following items at a tasting held by
20 a licensed brewery, farm brewery, cider producer, farm cidery, distil-
21 lery or farm distillery in accordance with the alcoholic beverage
22 control law: (i) the alcoholic beverage or beverages authorized by the
23 alcoholic beverage control law to be furnished at no charge to a custom-
24 er or prospective customer at such tasting for consumption at such tast-
25 ing; and (ii) bottles, corks, caps and labels used to package such alco-
26 holic beverages.
27 § 3. This act shall take effect immediately, provided, however,
28 section two of this act shall take effect June 1, 2015 and shall apply
29 in accordance with the transition provisions of section 1106 and 1217 of
30 the tax law.
31 PART V
32 Section 1. Paragraph 22 of subdivision (b) of section 1101 of the tax
33 law, as amended by chapter 651 of the laws of 1999, is amended to read
34 as follows:
35 (22) (A) "Prepaid telephone calling service" means the right to exclu-
36 sively purchase telecommunication services, that must be paid for in
37 advance and enable the origination of one or more intrastate, interstate
38 or international telephone calls using an access number (such as a toll
39 free network access number) and/or authorization code, whether manually
40 or electronically dialed, for which payment to a vendor must be made in
41 advance, whether or not that right is represented by the transfer by the
42 vendor to the purchaser of an item of tangible personal property. Such
43 term includes a prepaid mobile calling service. In no event shall a
44 credit card constitute a prepaid telephone calling service. If the sale
45 or recharge of a prepaid telephone calling service does not take place
46 at the vendor's place of business, it shall be conclusively determined
47 to take place at the purchaser's shipping address or, if there is no
48 item shipped, at the purchaser's billing address or the location associ-
49 ated with the purchaser's mobile telephone number, or, if the vendor
50 does not have the address or the location associated with the customer's
51 mobile telephone number, at such address, as approved by the commission-
A. 6009 76
1 er, that reasonably reflects the customer's location at the time of the
2 sale or recharge.
3 (B) "Prepaid mobile calling service" means the right to use a commer-
4 cial mobile radio service, whether or not sold with other property or
5 services, that must be paid for in advance and is sold in predetermined
6 units or dollars that decline with use in a known amount, whether or not
7 that right is represented by or includes the transfer to the purchaser
8 of an item of tangible personal property.
9 § 2. This act shall take effect immediately.
10 PART W
11 Intentionally Omitted
12 PART X
13 Section 1. Section 1101 of the tax law is amended by adding a new
14 subdivision (e) to read as follows:
15 (e) When used in this article for the purposes of the taxes imposed
16 under subdivisions (a) through (f) of section eleven hundred five of
17 this article and by section eleven hundred ten of this article, the
18 following terms shall mean:
19 (1) Marketplace provider. A person who, pursuant to an agreement with
20 a marketplace seller, facilitates a sale, occupancy, or admission by
21 such marketplace seller. A person "facilitates a sale, occupancy, or
22 admission" for purposes of this paragraph when the person meets both of
23 the following conditions: (i) such person, or an affiliated person,
24 collects the receipts, rent, or amusement charge paid by a customer,
25 occupant or patron to a marketplace seller; and (ii) such person
26 performs either of the following activities: (A) provides the forum in
27 which, or by means of which, the sale takes place or the offer of occu-
28 pancy or admission is accepted, including a shop, store, or booth, or an
29 internet website, catalog, or a similar forum; or (B) arranges for the
30 exchange of information or messages between the customer, occupant, or
31 patron, as the case may be, and the marketplace seller. A person who
32 voluntarily registers to collect tax as a marketplace provider under
33 section eleven hundred thirty-four of this article shall also qualify as
34 a marketplace provider. For purposes of this paragraph, two persons are
35 affiliated if one person has an ownership interest of more than five
36 percent, whether direct or indirect, in the other, or where an ownership
37 interest of more than five percent, whether direct or indirect, is held
38 in each of such persons by another person or by a group of other persons
39 which are affiliated persons with respect to each other.
40 (2) Marketplace seller. Any person, whether or not such person is
41 required to register to collect tax under section eleven hundred thir-
42 ty-four of this article, who (i) has an agreement with a marketplace
43 provider under which the marketplace provider will facilitate sales,
44 occupancies or admissions for such person within the meaning of para-
45 graph one of this subdivision; and (ii) satisfies at least one of the
46 following conditions: (A) sells tangible personal property or the
47 services described in subdivisions (a), (b) and (c) of section eleven
48 hundred five of this article; (B) operates a restaurant, tavern or other
49 establishment, or acts as a caterer, who sells food and drink or makes
50 other charges taxable under subdivision (d) of such section eleven
51 hundred five of this article; (C) is an operator of a hotel; or (D) is a
A. 6009 77
1 recipient as defined by paragraph eleven of subdivision (d) of this
2 section.
3 § 2. Subdivision 1 of section 1131 of the tax law, as amended by chap-
4 ter 576 of the laws of 1994, is amended to read as follows:
5 (1) "Persons required to collect tax" or "person required to collect
6 any tax imposed by this article" shall include: every vendor of tangible
7 personal property or services; every recipient of amusement charges;
8 [and] every operator of a hotel, and every marketplace provider with
9 respect to sales, occupancies, or admissions facilitated by it as
10 described in paragraph one of subdivision (e) of section eleven hundred
11 one of this article. Said terms shall also include any officer, direc-
12 tor or employee of a corporation or of a dissolved corporation, any
13 employee of a partnership, any employee or manager of a limited liabil-
14 ity company, or any employee of an individual proprietorship who as such
15 officer, director, employee or manager is under a duty to act for such
16 corporation, partnership, limited liability company or individual
17 proprietorship in complying with any requirement of this article; and
18 any member of a partnership or limited liability company. Provided,
19 however, that any person who is a vendor solely by reason of clause (D)
20 or (E) of subparagraph (i) of paragraph (8) of subdivision (b) of
21 section eleven hundred one shall not be a "person required to collect
22 any tax imposed by this article" until twenty days after the date by
23 which such person is required to file a certificate of registration
24 pursuant to section eleven hundred thirty-four.
25 § 3. Section 1132 of the tax law is amended by adding a new subdivi-
26 sion (l) to read as follows:
27 (l)(1) A marketplace provider: (i) shall comply with all the
28 provisions of this article and article twenty-nine of this chapter and
29 of any regulations adopted pursuant thereto, and to all the requirements
30 and obligations thereof, including the right to accept a certificate or
31 other documentation from a customer substantiating an exemption or
32 exclusion from tax, and have all the duties, benefits and entitlements
33 of a person required to collect tax under this article and pursuant to
34 the authority of such article twenty-nine with respect to such sale,
35 occupancy, or admission, and such tax required to be collected, as if
36 such marketplace provider were the vendor, operator, or recipient with
37 respect to such sale, occupancy, or admission, including the right to
38 receive the refund authorized by subdivision (e) of this section and the
39 credit allowed by subdivision (f) of section eleven hundred thirty-seven
40 of this part; and (ii) shall keep such records and information and coop-
41 erate with the commissioner to ensure the proper collection and remit-
42 tance of tax imposed, collected or required to be collected under this
43 article and such article twenty-nine.
44 (2) A marketplace seller is not a person required to collect tax for
45 purposes of this section in regard to a particular sale, occupancy, or
46 admission subject to tax under subdivisions (a) through (e) or paragraph
47 one of subdivision (f) of section eleven hundred five of this article
48 if, in regard to such sale, occupancy or admission: (i) the marketplace
49 seller can show that such sale, occupancy, or admission was facilitated,
50 as described in paragraph one of subdivision (e) of section eleven
51 hundred one of this article, by a marketplace provider from whom such
52 seller has received in good faith a properly completed certificate of
53 collection in a form prescribed by the commissioner certifying that the
54 marketplace provider is registered to collect sales tax and will collect
55 sales tax on all taxable sales, occupancies or admissions by the market-
56 place seller and with such other information as the commissioner may
A. 6009 78
1 prescribe; and (ii) any failure of the marketplace provider to collect
2 the proper amount of tax in regard to such sale, occupancy, or admission
3 was not the result of such marketplace seller providing the marketplace
4 provider with incorrect information. This provision shall be adminis-
5 tered in a manner consistent with subparagraph (i) of paragraph one of
6 subdivision (c) of this section as if a certificate of collection were a
7 resale or exemption certificate for purposes of such subparagraph,
8 including with regard to the completeness of such certificate of
9 collection and the timing of its acceptance by the marketplace seller.
10 Provided that, with regard to any sales, occupancies, or admissions sold
11 by a marketplace seller that are facilitated by a marketplace provider
12 who is affiliated with such marketplace seller within the meaning of
13 paragraph one of subdivision (e) of section eleven hundred one of this
14 article, the marketplace seller shall be deemed liable as a person under
15 a duty to act for such marketplace provider for purposes of subdivision
16 one of section eleven hundred thirty-one of this part.
17 (3) The commissioner may, in his or her discretion: (i) develop stand-
18 ard language, or approve language developed by a marketplace provider,
19 in which the marketplace provider obligates itself to collect the tax on
20 behalf of all the marketplace sellers for whom the marketplace provider
21 facilitates sales, occupancies, or admissions, as described in paragraph
22 one of subdivision (e) of section eleven hundred one of this article;
23 and (ii) provide by regulation or otherwise that the inclusion of such
24 language in the marketplace provider's agreement with a marketplace
25 seller that is publicly available will have the same effect as a market-
26 place seller's acceptance of a certificate of collection from such
27 marketplace provider under subparagraph two of this paragraph.
28 § 4. Section 1133 of the tax law is amended by adding a new subdivi-
29 sion (f) to read as follows:
30 (f) A marketplace provider is relieved of liability under this section
31 for failure to collect the correct amount of tax to the extent that the
32 marketplace provider can show that the error was due to incorrect infor-
33 mation given to the marketplace provider by the marketplace seller.
34 Provided, however, this subdivision shall not apply if the marketplace
35 seller and marketplace provider are affiliated within the meaning of
36 paragraph one of subdivision (e) of section eleven hundred one of this
37 article.
38 § 5. This act shall take effect March 1, 2016, and shall apply in
39 accordance with the transition provisions in sections 1106 and 1217 of
40 the tax law.
41 PART Y
42 Section 1. The tax law is amended by adding a new section 1118-A to
43 read as follows:
44 § 1118-A. Limitations on tax avoidance strategies. Notwithstanding
45 the provisions of this article or other law to the contrary:
46 (a) The exclusion in subdivision two of section eleven hundred eigh-
47 teen of this part for property or services purchased by a nonresident of
48 this state shall not apply when a person (other than an individual)
49 brings such property or service into this state for use here, unless
50 such person has been doing business outside this state for at least six
51 months prior to the date such person brought such property or service
52 into this state.
53 (b) A single member limited liability company and the member of that
54 limited liability company shall be deemed to be one person, and, among
A. 6009 79
1 other things, a purchase or sale by one shall be deemed to be the
2 purchase or sale by the other and neither of them can make a purchase
3 for resale to the other.
4 (c) A lease of any tangible personal property between related entities
5 shall be subject to the provisions of subdivision (i) of section eleven
6 hundred eleven of this article, including the provisions, among others,
7 relating to leases entered into outside this state where the property
8 subject to the lease is then brought into this state, as if such subdi-
9 vision (i) referred to the lease described in this subdivision, with
10 such changes as are necessary to make such provisions apply to this
11 subdivision; provided that any payments due under such a lease under
12 this subdivision shall be due at the inception of the lease regardless
13 of the length of the term of such lease, including any option to renew
14 or similar provision, or combination of them; and provided further that,
15 if the commissioner finds that the sum of all such payments due under
16 such lease do not reflect the true value or cost of the property subject
17 to such lease, the commissioner shall be authorized to estimate such
18 true value or cost from such information as may be available, including
19 by means of external indices, and assess tax due under this subdivision
20 based on such estimate. For purposes of this subdivision:
21 (1) "lease" means and includes a lease, rental agreement, or right to
22 use or other agreement in the nature of a lease, rental agreement, or
23 right to use;
24 (2) "related entities" means two or more persons that bear a relation-
25 ship to each other as described in subparagraphs (ii) through (vi) of
26 paragraph (b) of subdivision three of section five hundred four of this
27 chapter.
28 § 2. Subdivision (q) of section 1111 of the tax law, as added by
29 section 3 of subpart B of part S of chapter 57 of the laws of 2010, is
30 amended to read as follows:
31 (q) (1) The exclusions from the definition of retail sale in subpara-
32 graph (iv) of paragraph four of subdivision (b) of section eleven
33 hundred one of this article shall not apply to transfers, distributions,
34 or contributions of [an aircraft or vessel] tangible personal property,
35 except where, in the case of the exclusion in subclause (I) of clause
36 (A) of such subparagraph (iv), the two corporations to be merged or
37 consolidated are not affiliated persons with respect to each other. For
38 purposes of this subdivision, corporations are affiliated persons with
39 respect to each other where (i) more than five percent of their combined
40 shares are owned by members of the same family, as defined by paragraph
41 four of subsection (c) of section two hundred sixty-seven of the inter-
42 nal revenue code of nineteen hundred eighty-six; (ii) one of the corpo-
43 rations has an ownership interest of more than five percent, whether
44 direct or indirect, in the other; or (iii) another person or a group of
45 other persons that are affiliated persons with respect to each other
46 hold an ownership interest of more than five percent, whether direct or
47 indirect, in each of the corporations.
48 (2) Notwithstanding any contrary provision of law, in relation to any
49 transfer, distribution, or contribution of [an aircraft or vessel]
50 tangible personal property that qualifies as a retail sale as a result
51 of paragraph one of this subdivision, the sales tax imposed by subdivi-
52 sion (a) of section eleven hundred five of this part shall be computed
53 based on the price at which the seller purchased the tangible personal
54 property, provided that where the seller or purchaser affirmatively
55 shows that the seller owned the property for six months prior to making
56 the transfer, distribution or contribution covered by paragraph one of
A. 6009 80
1 this subdivision, such [aircraft or vessel] tangible personal property
2 shall be taxed on the basis of the current market value of the [aircraft
3 or vessel] tangible personal property at the time of that transfer,
4 distribution, or contribution. For the purposes of the prior sentence,
5 "current market value" shall not exceed the cost of the [aircraft or
6 vessel] tangible personal property. See subdivision (b) of this section
7 for a similar rule on the computation of any compensating use tax due
8 under section eleven hundred ten of this part on such transfers,
9 distributions, or contributions.
10 (3) A purchaser of [an aircraft or vessel] tangible personal property
11 covered by paragraph one of this subdivision will be entitled to a
12 refund or credit against the sales or compensating use tax due as a
13 result of a transfer, distribution, or contribution of such [aircraft or
14 vessel] tangible personal property in the amount of any sales or use tax
15 paid to this state or any other state on the seller's purchase or use of
16 the [aircraft or vessel] tangible personal property so transferred,
17 distributed or contributed, but not to exceed the tax due on the trans-
18 fer, distribution, or contribution of the [aircraft or vessel] tangible
19 personal property or on the purchaser's use in the state of the
20 [aircraft or vessel] tangible personal property so transferred, distrib-
21 uted or contributed. An application for a refund or credit under this
22 subdivision must be filed and shall be in such form as the commissioner
23 may prescribe. Where an application for credit has been filed, the
24 applicant may immediately take such credit on the return which is due
25 coincident with or immediately subsequent to the time the application
26 for credit is filed. However, the taking of the credit on the return
27 shall be deemed to be part of the application for credit. Provided that
28 the commissioner may, in his or her discretion and notwithstanding any
29 other law, waive the application requirement for any or all classes of
30 persons where the amount of the credit or refund is equal to the amount
31 of the tax due from the purchaser. The provisions of subdivisions (a),
32 (b), and (c) of section eleven hundred thirty-nine of this article shall
33 apply to applications for refund or credit under this subdivision. No
34 interest shall be allowed or paid on any refund made or credit allowed
35 under this subdivision. If a refund is granted or a credit allowed under
36 this paragraph, the seller or purchaser shall not be eligible for a
37 refund or credit pursuant to subdivision seven of section eleven hundred
38 eighteen of this article with regard to the same purchase or use.
39 § 3. This act shall take effect immediately and shall apply in accord-
40 ance with applicable transitional provisions of sections 1106 and 1217
41 of the tax law.
42 PART Z
43 Section 1. Subdivision (ee) of section 1115 of the tax law, as added
44 by chapter 306 of the laws of 2005, is amended to read as follows:
45 (ee) The following shall be exempt from tax under this article: (1)
46 Receipts from the retail sale of, and consideration given or contracted
47 to be given for, or for the use of, residential solar energy systems
48 equipment and [of] the service of installing such systems [shall be
49 exempt from tax under this article]. For the purposes of this subdivi-
50 sion, "residential solar energy systems equipment" shall mean an
51 arrangement or combination of components installed in a residence that
52 utilizes solar radiation to produce energy designed to provide heating,
53 cooling, hot water and/or electricity. Such arrangement or components
54 shall not include equipment that is part of a non-solar energy system or
A. 6009 81
1 which uses any sort of recreational facility or equipment as a storage
2 medium.
3 (2) Receipts from the sale of electricity by a person primarily
4 engaged in the sale of solar energy system equipment and/or electricity
5 generated by such equipment pursuant to a written agreement under which
6 such electricity is generated by residential solar energy system equip-
7 ment that is: (A) owned by a person other than the purchaser of such
8 electricity; (B) installed on residential property of the purchaser of
9 such electricity; and (C) used to provide heating, cooling, hot water or
10 electricity to such property.
11 § 2. Subdivision (ii) of section 1115 of the tax law, as amended by
12 chapter 13 of the laws of 2013, is amended to read as follows:
13 (ii) The following shall be exempt from tax under this article: (1)
14 Receipts from the retail sale of, and consideration given or contracted
15 to be given for, or for the use of, commercial solar energy systems
16 equipment and [of] the service of installing such systems [shall be
17 exempt from taxes imposed by sections eleven hundred five and eleven
18 hundred ten of this article]. For the purposes of this subdivision,
19 "commercial solar energy systems equipment" shall mean an arrangement or
20 combination of components installed upon non-residential premises that
21 utilize solar radiation to produce energy designed to provide heating,
22 cooling, hot water and/or electricity. Such arrangement or components
23 shall not include equipment that is part of a non-solar energy system.
24 (2) Receipts from the sale of electricity by a person primarily
25 engaged in the sale of solar energy system equipment and/or electricity
26 generated by such equipment pursuant to a written agreement under which
27 the electricity is generated by commercial solar energy system equipment
28 that is: (A) owned by a person other than the purchaser of such elec-
29 tricity; (B) installed on the non-residential premises of the purchaser
30 of such electricity; and (C) used to provide heating, cooling, hot water
31 or electricity to such premises.
32 § 3. Paragraphs 1 and 4 of subdivision (a) of section 1210 of the tax
33 law, paragraph 1 as amended by chapter 13 of the laws of 2012, and para-
34 graph 4 as amended by chapter 200 of the laws of 2009, are amended to
35 read as follows:
36 (1) Either, all of the taxes described in article twenty-eight of this
37 chapter, at the same uniform rate, as to which taxes all provisions of
38 the local laws, ordinances or resolutions imposing such taxes shall be
39 identical, except as to rate and except as otherwise provided, with the
40 corresponding provisions in such article twenty-eight, including the
41 definition and exemption provisions of such article, so far as the
42 provisions of such article twenty-eight can be made applicable to the
43 taxes imposed by such city or county and with such limitations and
44 special provisions as are set forth in this article. The taxes author-
45 ized under this subdivision may not be imposed by a city or county
46 unless the local law, ordinance or resolution imposes such taxes so as
47 to include all portions and all types of receipts, charges or rents,
48 subject to state tax under sections eleven hundred five and eleven
49 hundred ten of this chapter, except as otherwise provided. (i) Any local
50 law, ordinance or resolution enacted by any city of less than one
51 million or by any county or school district, imposing the taxes author-
52 ized by this subdivision, shall, notwithstanding any provision of law to
53 the contrary, exclude from the operation of such local taxes all sales
54 of tangible personal property for use or consumption directly and
55 predominantly in the production of tangible personal property, gas,
56 electricity, refrigeration or steam, for sale, by manufacturing, proc-
A. 6009 82
1 essing, generating, assembly, refining, mining or extracting; and all
2 sales of tangible personal property for use or consumption predominantly
3 either in the production of tangible personal property, for sale, by
4 farming or in a commercial horse boarding operation, or in both; and,
5 unless such city, county or school district elects otherwise, shall omit
6 the provision for credit or refund contained in clause six of subdivi-
7 sion (a) or subdivision (d) of section eleven hundred nineteen of this
8 chapter. (ii) Any local law, ordinance or resolution enacted by any
9 city, county or school district, imposing the taxes authorized by this
10 subdivision, shall omit the residential solar energy systems equipment
11 and electricity exemption provided for in subdivision (ee), the commer-
12 cial solar energy systems equipment and electricity exemption provided
13 for in subdivision (ii) and the clothing and footwear exemption provided
14 for in paragraph thirty of subdivision (a) of section eleven hundred
15 fifteen of this chapter, unless such city, county or school district
16 elects otherwise as to either such residential solar energy systems
17 equipment and electricity exemption, such commercial solar energy
18 systems equipment and electricity exemption or such clothing and foot-
19 wear exemption.
20 (4) Notwithstanding any other provision of law to the contrary, any
21 local law enacted by any city of one million or more that imposes the
22 taxes authorized by this subdivision (i) may omit the exception provided
23 in subparagraph (ii) of paragraph three of subdivision (c) of section
24 eleven hundred five of this chapter for receipts from laundering, dry-
25 cleaning, tailoring, weaving, pressing, shoe repairing and shoe shining;
26 (ii) may impose the tax described in paragraph six of subdivision (c) of
27 section eleven hundred five of this chapter at a rate in addition to the
28 rate prescribed by this section not to exceed two percent in multiples
29 of one-half of one percent; (iii) shall provide that the tax described
30 in paragraph six of subdivision (c) of section eleven hundred five of
31 this chapter does not apply to facilities owned and operated by the city
32 or an agency or instrumentality of the city or a public corporation the
33 majority of whose members are appointed by the chief executive officer
34 of the city or the legislative body of the city or both of them; (iv)
35 shall not include any tax on receipts from, or the use of, the services
36 described in paragraph seven of subdivision (c) of section eleven
37 hundred five of this chapter; (v) shall provide that, for purposes of
38 the tax described in subdivision (e) of section eleven hundred five of
39 this chapter, "permanent resident" means any occupant of any room or
40 rooms in a hotel for at least one hundred eighty consecutive days with
41 regard to the period of such occupancy; (vi) may omit the exception
42 provided in paragraph one of subdivision (f) of section eleven hundred
43 five of this chapter for charges to a patron for admission to, or use
44 of, facilities for sporting activities in which the patron is to be a
45 participant, such as bowling alleys and swimming pools; (vii) may
46 provide the clothing and footwear exemption in paragraph thirty of
47 subdivision (a) of section eleven hundred fifteen of this chapter, and,
48 notwithstanding any provision of subdivision (d) of this section to the
49 contrary, any local law providing for such exemption or repealing such
50 exemption, may go into effect on any one of the following dates: March
51 first, June first, September first or December first; (viii) shall omit
52 the exemption provided in paragraph forty-one of subdivision (a) of
53 section eleven hundred fifteen of this chapter; (ix) shall omit the
54 exemption provided in subdivision (c) of section eleven hundred fifteen
55 of this chapter insofar as it applies to fuel, gas, electricity, refrig-
56 eration and steam, and gas, electric, refrigeration and steam service of
A. 6009 83
1 whatever nature for use or consumption directly and exclusively in the
2 production of gas, electricity, refrigeration or steam; (x) shall omit,
3 unless such city elects otherwise, the provision for refund or credit
4 contained in clause six of subdivision (a) or in subdivision (d) of
5 section eleven hundred nineteen of this chapter; [and] (xi) shall
6 provide that section eleven hundred five-C of this chapter does not
7 apply to such taxes, and shall tax receipts from every sale, other than
8 sales for resale, of gas service or electric service of whatever nature,
9 including the transportation, transmission or distribution of gas or
10 electricity, even if sold separately, at the rate set forth in clause
11 one of subparagraph (i) of the opening paragraph of this section; (xii)
12 shall omit, unless such city elects otherwise, the exemption for resi-
13 dential solar energy systems equipment and electricity provided in
14 subdivision (ee) of section eleven hundred fifteen of this chapter; and
15 (xiii) shall omit, unless such city elects otherwise, the exemption for
16 commercial solar energy systems equipment and electricity provided in
17 subdivision (ii) of section eleven hundred fifteen of this chapter. Any
18 reference in this chapter or in any local law, ordinance or resolution
19 enacted pursuant to the authority of this article to former subdivisions
20 (n) or (p) of this section shall be deemed to be a reference to clauses
21 (xii) or (xiii) of this paragraph, respectively, and any such local law,
22 ordinance or resolution that provides the exemptions provided in such
23 former subdivisions (n) and/or (p) shall be deemed instead to provide
24 the exemptions provided in clauses (xii) and/or (xiii) of this
25 paragraph.
26 § 4. Paragraph 1 and subparagraph (i) of paragraph 3 of subdivision
27 (b) of section 1210 of the tax law, paragraph 1 as amended by section 36
28 of part S-1 of chapter 57 of the laws of 2009, and subparagraph (i) of
29 paragraph 3 as amended by section 3 of part B of chapter 35 of the laws
30 of 2006, are amended to read as follows:
31 (1) Or, one or more of the taxes described in subdivisions (b), (d),
32 (e) and (f) of section eleven hundred five of this chapter, at the same
33 uniform rate, including the transitional provisions in section eleven
34 hundred six of this chapter covering such taxes, but not the taxes
35 described in subdivisions (a) and (c) of section eleven hundred five of
36 this chapter. Provided, further, that where the tax described in subdi-
37 vision (b) of section eleven hundred five of this chapter is imposed,
38 the compensating use taxes described in clauses (E), (G) and (H) of
39 subdivision (a) of section eleven hundred ten of this chapter shall also
40 be imposed. Provided, further, that where the taxes described in subdi-
41 vision (b) of section eleven hundred five are imposed, such taxes shall
42 omit: (A) the provision for refund or credit contained in subdivision
43 (d) of section eleven hundred nineteen of this chapter with respect to
44 such taxes described in such subdivision (b) of section eleven hundred
45 five unless such city or county elects to provide such provision or, if
46 so elected, to repeal such provision; (B) the exemption provided in
47 paragraph two of subdivision (ee) of section eleven hundred fifteen of
48 this chapter unless such county or city elects otherwise; and (C) the
49 exemption provided in paragraph two of subdivision (ii) of section elev-
50 en hundred fifteen of this chapter, unless such county or city elects
51 otherwise.
52 (i) Notwithstanding any other provision of law to the contrary but not
53 with respect to cities subject to the provisions of section eleven
54 hundred eight of this chapter, any city or county, except a county whol-
55 ly contained within a city, may provide that the tax imposed, pursuant
56 to this subdivision, by such city or county on the sale, other than for
A. 6009 84
1 resale, of propane (except when sold in containers of less than one
2 hundred pounds), natural gas, electricity, steam and gas, electric and
3 steam services of whatever nature used for residential purposes and on
4 the use of gas or electricity used for residential purposes may be
5 imposed at a lower rate than the uniform local rate imposed pursuant to
6 the opening paragraph of this section, as long as such rate is one of
7 the rates authorized by such paragraph or such sale or use may be
8 exempted from such taxes. Provided, however, such lower rate must apply
9 to all such energy sources and services and at the same rate and no such
10 exemption, other than the exemption provided for in subdivision (ee) of
11 section eleven hundred fifteen of this chapter, if such exemption is
12 elected by such city or county, may be enacted unless such exemption
13 applies to all such energy sources and services.
14 § 4-a. Subdivision (d) of section 1210 of the tax law, as amended by
15 section 37 of part S-1 of chapter 57 of the laws of 2009, is amended to
16 read as follows:
17 (d) A local law, ordinance or resolution imposing any tax pursuant to
18 this section, increasing or decreasing the rate of such tax, repealing
19 or suspending such tax, exempting from such tax the energy sources and
20 services described in paragraph three of subdivision (a) or of subdivi-
21 sion (b) of this section or changing the rate of tax imposed on such
22 energy sources and services or providing for the credit or refund
23 described in clause six of subdivision (a) of section eleven hundred
24 nineteen of this chapter, or electing or repealing the exemption for
25 residential solar equipment and electricity in subdivision (ee) of
26 section eleven hundred fifteen of this article, or the exemption for
27 commercial solar equipment and electricity in subdivision (ii) of
28 section eleven hundred fifteen of this article must go into effect only
29 on one of the following dates: March first, June first, September first
30 or December first; provided, that a local law, ordinance or resolution
31 providing for the exemption described in paragraph thirty of subdivision
32 (a) of section eleven hundred fifteen of this chapter or repealing any
33 such exemption or a local law, ordinance or resolution providing for a
34 refund or credit described in subdivision (d) of section eleven hundred
35 nineteen of this chapter or repealing such provision so provided must go
36 into effect only on March first. No such local law, ordinance or resol-
37 ution shall be effective unless a certified copy of such law, ordinance
38 or resolution is mailed by registered or certified mail to the commis-
39 sioner at the commissioner's office in Albany at least ninety days prior
40 to the date it is to become effective. However, the commissioner may
41 waive and reduce such ninety-day minimum notice requirement to a mailing
42 of such certified copy by registered or certified mail within a period
43 of not less than thirty days prior to such effective date if the commis-
44 sioner deems such action to be consistent with the commissioner's duties
45 under section twelve hundred fifty of this article and the commissioner
46 acts by resolution. Where the restriction provided for in section twelve
47 hundred twenty-three of this article as to the effective date of a tax
48 and the notice requirement provided for therein are applicable and have
49 not been waived, the restriction and notice requirement in section
50 twelve hundred twenty-three of this article shall also apply.
51 § 5. Subdivisions (n) and (p) of section 1210 of the tax law are
52 REPEALED.
53 § 6. Subdivision (a) of section 1212 of the tax law, as amended by
54 section 40 of part S-1 of chapter 57 of the laws of 2009, is amended to
55 read as follows:
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1 (a) Any school district which is coterminous with, partly within or
2 wholly within a city having a population of less than one hundred twen-
3 ty-five thousand, is hereby authorized and empowered, by majority vote
4 of the whole number of its school authorities, to impose for school
5 district purposes, within the territorial limits of such school district
6 and without discrimination between residents and nonresidents thereof,
7 the taxes described in subdivision (b) of section eleven hundred five
8 (but excluding the tax on prepaid telephone calling services) and the
9 taxes described in clauses (E) and (H) of subdivision (a) of section
10 eleven hundred ten, including the transitional provisions in subdivision
11 (b) of section eleven hundred six of this chapter, so far as such
12 provisions can be made applicable to the taxes imposed by such school
13 district and with such limitations and special provisions as are set
14 forth in this article, such taxes to be imposed at the rate of one-half,
15 one, one and one-half, two, two and one-half or three percent which rate
16 shall be uniform for all portions and all types of receipts and uses
17 subject to such taxes. In respect to such taxes, all provisions of the
18 resolution imposing them, except as to rate and except as otherwise
19 provided herein, shall be identical with the corresponding provisions in
20 such article twenty-eight of this chapter, including the applicable
21 definition and exemption provisions of such article, so far as the
22 provisions of such article twenty-eight of this chapter can be made
23 applicable to the taxes imposed by such school district and with such
24 limitations and special provisions as are set forth in this article. The
25 taxes described in subdivision (b) of section eleven hundred five (but
26 excluding the tax on prepaid telephone calling service) and clauses (E)
27 and (H) of subdivision (a) of section eleven hundred ten, including the
28 transitional provision in subdivision (b) of such section eleven hundred
29 six of this chapter, may not be imposed by such school district unless
30 the resolution imposes such taxes so as to include all portions and all
31 types of receipts and uses subject to tax under such subdivision (but
32 excluding the tax on prepaid telephone calling service) and clauses.
33 Provided, however, that, where a school district imposes such taxes,
34 such taxes shall omit the provision for refund or credit contained in
35 subdivision (d) of section eleven hundred nineteen of this chapter with
36 respect to such taxes described in such subdivision (b) of section elev-
37 en hundred five unless such school district elects to provide such
38 provision or, if so elected, to repeal such provision, and shall omit
39 the exemption provided in paragraph two of either subdivision (ee) or
40 subdivision (ii) of section eleven hundred fifteen of this chapter
41 unless such school district elects otherwise.
42 § 7. Section 1224 of the tax law is amended by adding a new subdivi-
43 sion (c-1) to read as follows:
44 (c-1) Notwithstanding any other provision of law: (1) Where a county
45 containing one or more cities with a population of less than one million
46 has elected the exemption for residential solar energy systems equipment
47 and electricity provided in subdivision (ee) of section eleven hundred
48 fifteen of this chapter, the exemption for commercial solar energy
49 systems equipment and electricity provided in subdivision (ii) of such
50 section eleven hundred fifteen, or both such exemptions, a city within
51 such county shall have the prior right to impose tax on such exempt
52 equipment and/or electricity to the extent of one half of the maximum
53 rates authorized under subdivision (a) of section twelve hundred ten of
54 this article;
55 (2) Where a city of less than one million has elected the exemption
56 for residential solar energy systems equipment and electricity provided
A. 6009 86
1 in subdivision (ee) of section eleven hundred fifteen of this chapter,
2 the exemption for commercial solar energy systems equipment and elec-
3 tricity provided in subdivision (ii) of such section eleven hundred
4 fifteen, or both such exemptions, the county in which such city is
5 located shall have the prior right to impose tax on such exempt equip-
6 ment and/or electricity to the extent of one half of the maximum rates
7 authorized under subdivision (a) of section twelve hundred ten of this
8 article.
9 § 8. This act shall take effect December 1, 2015 and shall apply in
10 accordance with the applicable transitional provisions in sections 1106
11 and 1217 of the tax law.
12 PART AA
13 Section 1. Subdivision (f) of section 301-c of the tax law, as amended
14 by section 23 of part K of chapter 61 of the laws of 2011, is amended to
15 read as follows:
16 (f) Motor fuel and highway diesel motor fuel used for farm production.
17 No more than one thousand five hundred gallons of motor fuel and no more
18 than four thousand five hundred gallons of highway diesel motor fuel
19 purchased in this state in a thirty-day period or a greater amount which
20 has been given prior clearance by the commissioner, by a consumer for
21 use or consumption directly and exclusively in the production for sale
22 of tangible personal property by farming, but only if all of such motor
23 fuel or highway diesel motor fuel is delivered on the farm site and is
24 consumed other than on the public highways of this state (except for the
25 use of the public highway to reach adjacent farmlands). This reimburse-
26 ment to such purchaser who used such motor fuel or highway diesel motor
27 fuel in the manner specified in this subdivision may be claimed only
28 where, (i) the tax imposed pursuant to this article has been paid with
29 respect to such motor fuel or highway diesel motor fuel and the entire
30 amount of such tax has been absorbed by such purchaser, and (ii) such
31 purchaser possesses documentary proof satisfactory to the commissioner
32 evidencing the absorption by it of the entire amount of the tax imposed
33 pursuant to this article. Provided, however, that the commissioner shall
34 require such documentary proof to qualify for any reimbursement of tax
35 provided by this subdivision as the commissioner deems appropriate. The
36 commissioner is hereby empowered to make such provisions as deemed
37 necessary to define the procedures for granting prior clearance for
38 purchases of more than one thousand five hundred gallons of motor fuel
39 or four thousand five hundred gallons of highway diesel motor fuel in a
40 thirty-day period.
41 § 2. This act shall take effect immediately.
42 PART BB
43 Section 1. Subsections (b) and (c) of section 952 of the tax law,
44 subsection (b) as amended and subsection (c) as added by section 2 of
45 part X of chapter 59 of the laws of 2014, are amended to read as
46 follows:
47 (b) Computation of tax. The tax imposed by this section shall be
48 computed on the deceased resident's New York taxable estate as follows:
49 [In the case of decedents dying on or after April 1, 2014 and before
50 April 1, 2015]
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1 If the New York taxable estate is: The tax is:
2 Not over $500,000 3.06% of taxable estate
3 Over $500,000 but not over $1,000,000 $15,300 plus 5.0% of excess over
4 $500,000
5 Over $1,000,000 but not over $1,500,000 $40,300 plus 5.5% of excess over
6 $1,000,000
7 Over $1,500,000 but not over $2,100,000 $67,800 plus 6.5% of excess over
8 $1,500,000
9 Over $2,100,000 but not over $2,600,000 $106,800 plus 8.0% of excess
10 over $2,100,000
11 Over $2,600,000 but not over $3,100,000 $146,800 plus 8.8% of excess over
12 $2,600,000
13 Over $3,100,000 but not over $3,600,000 $190,800 plus 9.6% of excess over
14 $3,100,000
15 Over $3,600,000 but not over $4,100,000 $238,800 plus 10.4% of excess
16 over $3,600,000
17 Over $4,100,000 but not over $5,100,000 $290,800 plus 11.2% of excess
18 over $4,100,000
19 Over $5,100,000 but not over $6,100,000 $402,800 plus 12.0% of excess
20 over $5,100,000
21 Over $6,100,000 but not over $7,100,000 $522,800 plus 12.8% of excess
22 over $6,100,000
23 Over $7,100,000 but not over $8,100,000 $650,800 plus 13.6% of excess
24 over $7,100,000
25 Over $8,100,000 but not over $9,100,000 $786,800 plus 14.4% of excess
26 over $8,100,000
27 Over $9,100,000 but not over $930,800 plus 15.2% of excess over
28 $10,100,000 $9,100,000
29 Over $10,100,000 $1,082,800 plus 16.0% of excess
30 over $10,100,000
31 (c) Applicable credit amount. (1) A credit of the applicable credit
32 amount shall be allowed against the tax imposed by this section as
33 provided in this subsection. In the case of a decedent whose New York
34 taxable estate is less than or equal to the basic exclusion amount, the
35 applicable credit amount shall be the amount of tax that would be due
36 under subsection (b) of this section on such decedent's New York taxable
37 estate. In the case of a decedent whose New York taxable estate exceeds
38 the basic exclusion amount by an amount that is less than or equal to
39 five percent of such amount, the applicable credit amount shall be the
40 amount of tax that would be due under subsection (b) of this section if
41 the amount on which the tax is to be computed were equal to the basic
42 exclusion amount multiplied by one minus a fraction, the numerator of
43 which is the decedent's New York taxable estate minus the basic exclu-
44 sion amount, and the denominator of which is five percent of the basic
45 exclusion amount. Provided, however, that the credit allowed by this
46 subsection shall not exceed the tax imposed by this section, and no
47 credit shall be allowed to the estate of any decedent whose New York
48 taxable estate exceeds one hundred five percent of the basic exclusion
49 amount. Provided, further, that the credit allowed by this subsection
50 shall be increased by an amount equal to the unused exclusion amount of
51 the descendent's last deceased spouse.
52 (2) (A) For purposes of this section, the basic exclusion amount shall
53 be as follows:
54 In the case of decedents dying on or after: The basic exclusion amount
55 is:
A. 6009 88
1 April 1, 2014 and before April 1, 2015 $ 2,062,500
2 April 1, 2015 and before April 1, 2016 3,125,000
3 April 1, 2016 and before April 1, 2017 4,187,500
4 April 1, 2017 and before January 1, 2019 5,250,000
5 (B) In the case of any decedent dying in a calendar year beginning on
6 or after January first, two thousand nineteen, the basic exclusion
7 amount shall be equal to:
8 (i) five million dollars, multiplied by
9 (ii) one plus the cost-of-living adjustment, which shall be the
10 percentage by which the consumer price index for the preceding calendar
11 year exceeds the consumer price index for calendar year two thousand
12 ten.
13 (C) (i) For purposes of this paragraph, "consumer price index" means
14 the most recent consumer price index for all-urban consumers published
15 by the United States department of labor.
16 (ii) For purposes of clause (ii) of subparagraph (B) of this para-
17 graph, the consumer price index for any calendar year shall be the aver-
18 age of the consumer price index as of the close of the twelve-month
19 period ending on August thirty-first of such calendar year.
20 (iii) If any amount adjusted under this paragraph is not a multiple of
21 ten thousand dollars, such amount shall be rounded to the nearest multi-
22 ple of ten thousand dollars.
23 (3)(A) For decedents dying on or after April first, two thousand
24 fifteen, the credit allowed by this subsection shall be increased by an
25 amount equal to the unused exclusion amount of the decedent's last
26 deceased spouse.
27 (B) For purposes of this subsection, the unused exclusion amount of
28 the decedent's last deceased spouse is the basic exclusion amount of the
29 last such deceased spouse of such surviving spouse minus the amount with
30 respect to which the tax is determined and imposed by this subsection on
31 the estate of such deceased spouse.
32 (C) Provided, however, that no credit amount of the decedent's last
33 deceased spouse shall be allowed if the New York taxable estate of the
34 decedent's last deceased spouse was equal to or greater than the basic
35 exclusion amount allowable at the date of death of such last deceased
36 spouse. The credit amount of the decedent's last deceased spouse, as
37 referenced in the immediately preceding sentence of this subparagraph,
38 shall take into account such adjustments as may be warranted pursuant to
39 paragraph one of this subsection.
40 (D) Any election made under this paragraph shall be irrevocable. No
41 election may be made under this paragraph if such return is filed after
42 the time prescribed by law (including extensions) for filing the return.
43 § 2. Paragraph 3 of subsection (a) of section 954 of the tax law, as
44 added by section 3 of part X of chapter 59 of the laws of 2014, is
45 amended to read as follows:
46 (3) Increased by the amount of any taxable gift under section 2503 of
47 the internal revenue code not otherwise included in the decedent's
48 federal gross estate, made during the three year period ending on the
49 decedent's date of death, but not including any gift made: [(1)] (A)
50 when the decedent was not a resident of New York state; [(2)] or (B)
51 before April first, two thousand fourteen; or [(3)] (C) that is real or
52 tangible personal property having an actual situs outside New York
53 state, at the time such gift was made. Provided, however, that this
54 paragraph shall not apply to the estate of a decedent dying on or after
55 January first, two thousand nineteen.
A. 6009 89
1 § 3. Subsection (c) of section 955 of the tax law, as added by section
2 4 of part X of chapter 59 of the laws of 2014, is amended to read as
3 follows:
4 (c) Qualified terminable interest property election.-- Except as
5 otherwise provided in this subsection, the election referred to in para-
6 graph (7) of subsection (b) of section 2056 of the internal revenue code
7 shall not be allowed under this article unless such election was made
8 with respect to the federal estate tax return required to be filed under
9 the provisions of the internal revenue code. If such election was made
10 for the purposes of the federal estate tax, then such election must also
11 be made by the executor on the return of the tax imposed by this arti-
12 cle. Where no federal estate tax return is required to be filed and a
13 federal estate tax return is filed solely to elect the deceased spousal
14 unused exclusion amount under paragraphs (4) and (5) of subsection (c)
15 of section 2010 of the internal revenue code, the executor may make the
16 election referred to in such paragraph (7) with respect to the tax
17 imposed by this article on the return of the tax imposed by this arti-
18 cle. Any election made under this subsection shall be irrevocable.
19 § 4. Subsection (b) of section 960 of the tax law, as amended by
20 section 5 of part X of chapter 59 of the laws of 2014, is amended to
21 read as follows:
22 (b) Computation of tax.--The tax imposed under subsection (a) shall be
23 the same as the tax that would be due, if the decedent had died a resi-
24 dent, under subsection (a) of section nine hundred fifty-two, except
25 that for purposes of computing the tax under subsection (b) of section
26 nine hundred fifty-two, "New York taxable estate" shall not include the
27 value of, or any deduction allowable under the Internal Revenue Code
28 related to, any intangible personal property otherwise includible in the
29 deceased individual's New York gross estate, and shall not include the
30 amount of any gift unless such gift consists of real or tangible
31 personal property having an actual situs in New York state or intangible
32 personal property employed in a business, trade or profession carried on
33 in this state.
34 § 5. This act shall take effect immediately and shall be deemed to
35 have been in full force and effect on and after April 1, 2015.
36 PART CC
37 Section 1. Section 282 of the tax law is amended by adding a new
38 subdivision 27 to read as follows:
39 27. "Wholesaler of motor fuel" means any person, firm, association or
40 corporation who or which is not a distributor of motor fuel, and makes a
41 sale of motor fuel in this state other than a retail sale not in bulk.
42 For the purposes of this article when used with respect to motor fuel, a
43 "retail sale not in bulk" means the making or offering to make any sale
44 of motor fuel to a consumer of such fuel which is delivered directly
45 into a motor vehicle for use in the operation of such vehicle. A "retail
46 sale in bulk" means the making or offering to make any sale of motor
47 fuel to a consumer which is other than a "retail sale not in bulk".
48 § 2. The tax law is amended by adding a new section 283-d to read as
49 follows:
50 § 283-d. Registration of wholesalers of motor fuel. (a) Registration
51 required. Each wholesaler of motor fuel must be registered with the
52 department under this section. No wholesaler of motor fuel shall make a
53 sale of motor fuel in this state other than a retail sale not in bulk
54 unless such wholesaler is so registered. The department, upon the
A. 6009 90
1 application of a person, shall register such person as a wholesaler of
2 motor fuel except that the commissioner may refuse to register an appli-
3 cant for any of the grounds specified in subdivision two or five of
4 section two hundred eighty-three of this article or in subdivision (c)
5 of this section. The application shall be in such form and contain such
6 information as the commissioner shall prescribe. All of the provisions
7 of subdivisions two, four, five, six, seven, eight, nine and ten of
8 section two hundred eighty-three of this article relating to registra-
9 tion of distributors shall be applicable to the registration of whole-
10 salers of motor fuel under this section with the same force and effect
11 as if the language of such subdivisions had been incorporated in full in
12 this section and had expressly referred to the registration of whole-
13 salers of motor fuel, with such modification as may be necessary in
14 order to adapt the language of such provisions to the provisions of this
15 section, provided, specifically, that the term "distributor" shall be
16 read as "wholesaler of motor fuel." Provided, however, that if the
17 commissioner is satisfied that the requirements of such provisions for
18 registration are not necessary in order to protect tax revenues, the
19 commissioner may limit or modify such requirements with respect to any
20 person not required to be registered as a distributor of motor fuel.
21 (b) Bond or other security. The commissioner may require a wholesaler
22 of motor fuel seeking a registration to file with the department a bond
23 issued by a surety company approved by the superintendent of financial
24 services as to solvency and responsibility and authorized to transact
25 business in this state or other security acceptable to the commissioner,
26 in such amount as the commissioner may fix to secure the performance by
27 such wholesaler of motor fuel of the duties and responsibilities
28 required (i) pursuant to this article and (ii) pursuant to articles
29 twenty-eight and twenty-nine of this chapter with respect to motor fuel.
30 The commissioner may require that such a bond or other security be filed
31 before a wholesaler of motor fuel is registered, and the amount thereof
32 may be increased at any time when in the commissioner's judgment the
33 same is necessary. If securities are deposited as security under this
34 subdivision, such securities shall be kept in the joint custody of the
35 comptroller and the commissioner and may be sold by the commissioner if
36 it becomes necessary so to do in order to recover against such whole-
37 saler of motor fuel but no such sale shall be had until after such
38 wholesaler of motor fuel shall have had opportunity to litigate the
39 validity of the liability if it elects to do so. Upon any such sale the
40 surplus, if any, above the sums due shall be returned to such wholesaler
41 of motor fuel. The department, when authorized by the wholesaler of
42 motor fuel, shall furnish information regarding the registration of the
43 wholesaler of motor fuel and any other information which the wholesaler
44 of motor fuel authorizes it to disclose.
45 (c) Refusal to register. For the purposes of determining whether to
46 refuse an application for registration under this section, the refer-
47 ences in subdivision two of section two hundred eighty-three of this
48 article to employees or shareholders under a duty to file a return under
49 or pursuant to the authority of this article or pay the taxes imposed by
50 or pursuant to the authority of this article on behalf of the applicant
51 or another person shall be deemed to also include an employee under a
52 duty to file a return or pay taxes under or pursuant to the authority of
53 this article on behalf of such applicant or other person. In addition to
54 the grounds specified in section two hundred eighty-three of this arti-
55 cle, the commissioner may refuse to register an applicant where the
56 commissioner ascertains that the applicant, an officer, director or
A. 6009 91
1 partner of the applicant, a shareholder directly or indirectly owning
2 more than ten percent of the number of shares of stock of such applicant
3 (where such applicant is a corporation) entitling the holder thereof to
4 vote for the election of directors or trustees, or an employee or share-
5 holder of such applicant who, as such employee or shareholder is under a
6 duty to file a return under or pursuant to the authority of this article
7 or to pay the taxes imposed by or pursuant to the authority of this
8 article on behalf of the applicant; (1) has committed any of the acts or
9 omissions which are, or was convicted as, specified in subdivision (d)
10 of this section within the preceding five years; or (2) was an officer,
11 director or partner of another person, or who directly or indirectly
12 owned more than ten percent of the shares of stock of another person
13 (where such other person is a corporation) entitling the holder thereof
14 to vote for the election of directors or trustees, or who was an employ-
15 ee or shareholder of another person under a duty to file a return under
16 or pursuant to the authority of this article or pay the taxes imposed by
17 or pursuant to the authority of this article on behalf of such other
18 person at the time such other person committed any of the acts or omis-
19 sions which are, or was convicted as, specified in subdivision (d) of
20 this section within the preceding five years.
21 (d) Cancellation or suspension of registration. The grounds for a
22 cancellation or suspension of a registration under this section as a
23 wholesaler of motor fuel are the same as those grounds specified in
24 section two hundred eighty-three of this article and, in addition to
25 such grounds, the following grounds relating to this article shall
26 apply:
27 (1) A registration as a wholesaler of motor fuel may be cancelled or
28 suspended if the commissioner determines that a registrant or an offi-
29 cer, director or partner of the registrant, a shareholder directly or
30 indirectly owning more than ten percent of the number of shares of stock
31 of such registrant (where such registrant is a corporation) entitling
32 the holder thereof to vote for the election of directors or trustees, or
33 an employee or shareholder of such registrant under a duty to file a
34 return under or pursuant to the authority of this article or to pay the
35 taxes imposed by or pursuant to the authority of this article on behalf
36 of the registrant
37 (A) fails to file or maintain in full force and effect a bond or other
38 security when required pursuant to subdivision (b) of this section or
39 when the amount thereof is increased,
40 (B) fails to comply with any of the provisions of this article or any
41 rule or regulation adopted pursuant to this article by the commissioner,
42 (C) knowingly aids and abets another person in violating any of the
43 provisions of this article or any rule or regulation adopted pursuant to
44 this article by the commissioner,
45 (D) transfers its registration as a wholesaler of motor fuel without
46 the prior written approval of the commissioner,
47 (E) with respect to a wholesaler of motor fuel which is a corporation,
48 has been dissolved pursuant to section two hundred three-a and subdivi-
49 sion (d) of section three hundred ten of this chapter,
50 (F) commits fraud or deceit in his, her or its operations as a whole-
51 saler of motor fuel or has committed fraud or deceit in procuring his,
52 her or its registration,
53 (G) has impersonated any person represented to be a wholesaler of
54 motor fuel under this article but not in fact registered as a wholesaler
55 of motor fuel, or
A. 6009 92
1 (H) has knowingly aided and abetted the distribution of motor fuel, by
2 any person which such registrant or such other person knows has not been
3 registered by the commissioner as required under this article.
4 (2) A registration as a wholesaler of motor fuel may be cancelled or
5 suspended if the commissioner determines that a registrant or an offi-
6 cer, director or partner of the registrant, a shareholder directly or
7 indirectly owning more than ten percent of the number of shares of stock
8 of such registrant (where such registrant is a corporation) entitling
9 the holder thereof to vote for the election of directors or trustees, or
10 an employee or shareholder of such registrant under a duty to file a
11 return under or pursuant to the authority of this article or to pay the
12 taxes imposed by or pursuant to the authority of this article on behalf
13 of the registrant, was an officer, director or partner of another person
14 or was a shareholder directly or indirectly owning more than ten percent
15 of the number of shares of stock of another person (where such other
16 person is a corporation) entitling the holder thereof to vote for the
17 election of directors or trustees, or was an employee or shareholder of
18 another person under a duty to file a return under or pursuant to the
19 authority of this article or to pay the taxes imposed by or pursuant to
20 the authority of this article on behalf of such other person at the time
21 such other person committed any of the acts specified in paragraph one
22 of this subdivision within the preceding five years.
23 (e) Cancellation or suspension of registration prior to a hearing.
24 The grounds for cancelling or suspending a registration as a wholesaler
25 of motor fuel prior to a hearing shall be the same as those specified in
26 subdivision five of section two hundred eighty-three of this article
27 and, in addition to such grounds, the following grounds relating to this
28 article shall apply:
29 (1) the failure to file a return within ten days of the date
30 prescribed for filing a return under this article if the registrant
31 shall have failed to file such return within ten days after the date the
32 demand therefor is sent by registered or certified mail to the address
33 of the wholesaler of motor fuel given in its application, or an address
34 substituted therefor as provided in subdivision five of section two
35 hundred eighty-three of this article,
36 (2) the failure to continue to maintain in full force and effect at
37 all times the bond or other security required to be filed pursuant to
38 subdivision (b) of this section, provided, however, that if a surety
39 bond is cancelled prior to expiration, the commissioner may after
40 considering all the relevant circumstances make such other arrangements,
41 and may require the filing of such other bond or other security as it
42 deems appropriate,
43 (3) the transfer of a registration as a wholesaler of motor fuel with-
44 out the prior written approval of the commissioner, or
45 (4) with respect to a wholesaler of motor fuel which is a corporation,
46 the dissolution or annulment of such corporation pursuant to section
47 three hundred ten of this chapter.
48 § 3. Section 287 of the tax law is amended by adding a new subdivision
49 3 to read as follows:
50 3. Every wholesaler of motor fuel shall, on or before the twentieth
51 day of each month, file with the department a return, on forms
52 prescribed by the commissioner stating the number of gallons of motor
53 fuel purchased and sold by such wholesaler in the state during the
54 preceding calendar month. For each purchase and sale, the date, number
55 of gallons of motor fuel purchased or sold, and the name of the seller
56 or purchaser shall be set forth on the return. Such returns shall
A. 6009 93
1 contain such further information as the commissioner shall require. The
2 fact that a wholesaler's name is signed to a filed return shall be prima
3 facie evidence for all purposes that the return was actually signed by
4 such wholesaler of motor fuel.
5 § 4. Section 1102 of the tax law is amended by adding a new subdivi-
6 sion (f) to read as follows:
7 (f) Every wholesaler of motor fuel, as such term is defined by subdi-
8 vision twenty-seven of section two hundred eighty-two of this chapter,
9 shall pay or be entitled to a credit or refund of the tax imposed by
10 this section on gallons of motor fuel under the circumstances set forth
11 in paragraph three of subdivision (e) of section eleven hundred eleven
12 of this article.
13 § 5. Subdivision (e) of section 1111 of the tax law is amended by
14 adding a new paragraph 3 to read as follows:
15 (3) When a wholesaler of motor fuel sells motor fuel in a region, as
16 defined in paragraph one of this subdivision, different from the region
17 in which such motor fuel was purchased:
18 (i) if the region in which it sells the motor fuel has a higher
19 prepaid rate as set forth in this subdivision than the region in which
20 the wholesaler purchased the motor fuel in, the wholesaler shall pay to
21 the department the difference in the rates for the gallonage sold.
22 (ii) if the region in which it sells the motor fuel has a lower
23 prepaid rate as set forth in this subdivision than the region in which
24 the wholesaler purchased the motor fuel, the wholesaler shall be enti-
25 tled to a credit or refund for the difference in the rates for the
26 gallonage sold.
27 § 6. The tax law is amended by adding a new section 1812-g to read as
28 follows:
29 § 1812-g. Person not registered as a wholesaler of motor fuel. Any
30 person who, while not registered as a wholesaler of motor fuel pursuant
31 to the provisions of article twelve-A of this chapter, makes a sale of
32 motor fuel in this state other than a retail sale not in bulk, shall be
33 guilty of a class E felony.
34 § 7. This act shall take effect September 1, 2015.
35 PART DD
36 Section 1. Section 2 of part Q of chapter 59 of the laws of 2013,
37 amending the tax law relating to serving an income execution with
38 respect to individual tax debtors without filing a warrant, is amended
39 to read as follows:
40 § 2. This act shall take effect immediately [and shall expire and be
41 deemed repealed on and after April 1, 2015].
42 § 2. This act shall take effect immediately.
43 PART EE
44 Intentionally Omitted
45 PART FF
46 Intentionally Omitted
47 PART GG
A. 6009 94
1 Intentionally Omitted
2 PART HH
3 Intentionally Omitted
4 PART II
5 Intentionally Omitted
6 PART JJ
7 Intentionally Omitted
8 PART KK
9 Intentionally Omitted
10 PART LL
11 Intentionally Omitted
12 PART MM
13 Section 1. Clause (H) of subparagraph (ii) of paragraph 1 of subdivi-
14 sion b of section 1612 of the tax law, as amended by section 1 of part
15 BB of chapter 59 of the laws of 2014, is amended to read as follows:
16 (H) notwithstanding clauses (A), (B), (C), (D), (E), (F) and (G) of
17 this subparagraph, the track operator of a vendor track shall be eligi-
18 ble for a vendor's capital award of up to four percent of the total
19 revenue wagered at the vendor track after payout for prizes pursuant to
20 this chapter, which shall be used exclusively for capital project
21 investments to improve the facilities of the vendor track which promote
22 or encourage increased attendance at the video lottery gaming facility
23 including, but not limited to hotels, other lodging facilities, enter-
24 tainment facilities, retail facilities, dining facilities, events
25 arenas, parking garages and other improvements that enhance facility
26 amenities; provided that such capital investments shall be approved by
27 the division, in consultation with the state racing and wagering board,
28 and that such vendor track demonstrates that such capital expenditures
29 will increase patronage at such vendor track's facilities and increase
30 the amount of revenue generated to support state education programs. The
31 annual amount of such vendor's capital awards that a vendor track shall
32 be eligible to receive shall be limited to two million five hundred
33 thousand dollars, except for Aqueduct racetrack, for which there shall
34 be no vendor's capital awards. Except for tracks having less than one
35 thousand one hundred video gaming machines, and except for a vendor
36 track located west of State Route 14 from Sodus Point to the Pennsylva-
37 nia border within New York, each track operator shall be required to
38 co-invest an amount of capital expenditure equal to its cumulative
A. 6009 95
1 vendor's capital award. For all tracks, except for Aqueduct racetrack,
2 the amount of any vendor's capital award that is not used during any one
3 year period may be carried over into subsequent years ending before
4 April first, two thousand [fifteen] sixteen. Any amount attributable to
5 a capital expenditure approved prior to April first, two thousand
6 [fifteen] sixteen and completed before April first, two thousand [seven-
7 teen] eighteen; or approved prior to April first, two thousand [nine-
8 teen] twenty and completed before April first, two thousand [twenty-one]
9 twenty-two for a vendor track located west of State Route 14 from Sodus
10 Point to the Pennsylvania border within New York, shall be eligible to
11 receive the vendor's capital award. In the event that a vendor track's
12 capital expenditures, approved by the division prior to April first, two
13 thousand [fifteen] sixteen and completed prior to April first, two thou-
14 sand [seventeen] eighteen, exceed the vendor track's cumulative capital
15 award during the five year period ending April first, two thousand
16 [fifteen] sixteen, the vendor shall continue to receive the capital
17 award after April first, two thousand [fifteen] sixteen until such
18 approved capital expenditures are paid to the vendor track subject to
19 any required co-investment. In no event shall any vendor track that
20 receives a vendor fee pursuant to clause (F) or (G) of this subparagraph
21 be eligible for a vendor's capital award under this section. Any opera-
22 tor of a vendor track which has received a vendor's capital award,
23 choosing to divest the capital improvement toward which the award was
24 applied, prior to the full depreciation of the capital improvement in
25 accordance with generally accepted accounting principles, shall reim-
26 burse the state in amounts equal to the total of any such awards. Any
27 capital award not approved for a capital expenditure at a video lottery
28 gaming facility by April first, two thousand [fifteen] sixteen shall be
29 deposited into the state lottery fund for education aid; and
30 § 2. This act shall take effect immediately.
31 PART NN
32 Section 1. Paragraph (a) of subdivision 1 of section 1003 of the
33 racing, pari-mutuel wagering and breeding law, as amended by section 1
34 of part AA of chapter 59 of the laws of 2014, is amended to read as
35 follows:
36 (a) Any racing association or corporation or regional off-track
37 betting corporation, authorized to conduct pari-mutuel wagering under
38 this chapter, desiring to display the simulcast of horse races on which
39 pari-mutuel betting shall be permitted in the manner and subject to the
40 conditions provided for in this article may apply to the commission for
41 a license so to do. Applications for licenses shall be in such form as
42 may be prescribed by the commission and shall contain such information
43 or other material or evidence as the commission may require. No license
44 shall be issued by the commission authorizing the simulcast transmission
45 of thoroughbred races from a track located in Suffolk county. The fee
46 for such licenses shall be five hundred dollars per simulcast facility
47 and for account wagering licensees that do not operate either a simul-
48 cast facility that is open to the public within the state of New York or
49 a licensed racetrack within the state, twenty thousand dollars per year
50 payable by the licensee to the commission for deposit into the general
51 fund. Except as provided in this section, the commission shall not
52 approve any application to conduct simulcasting into individual or group
53 residences, homes or other areas for the purposes of or in connection
54 with pari-mutuel wagering. The commission may approve simulcasting into
A. 6009 96
1 residences, homes or other areas to be conducted jointly by one or more
2 regional off-track betting corporations and one or more of the follow-
3 ing: a franchised corporation, thoroughbred racing corporation or a
4 harness racing corporation or association; provided (i) the simulcasting
5 consists only of those races on which pari-mutuel betting is authorized
6 by this chapter at one or more simulcast facilities for each of the
7 contracting off-track betting corporations which shall include wagers
8 made in accordance with section one thousand fifteen, one thousand
9 sixteen and one thousand seventeen of this article; provided further
10 that the contract provisions or other simulcast arrangements for such
11 simulcast facility shall be no less favorable than those in effect on
12 January first, two thousand five; (ii) that each off-track betting
13 corporation having within its geographic boundaries such residences,
14 homes or other areas technically capable of receiving the simulcast
15 signal shall be a contracting party; (iii) the distribution of revenues
16 shall be subject to contractual agreement of the parties except that
17 statutory payments to non-contracting parties, if any, may not be
18 reduced; provided, however, that nothing herein to the contrary shall
19 prevent a track from televising its races on an irregular basis primari-
20 ly for promotional or marketing purposes as found by the commission. For
21 purposes of this paragraph, the provisions of section one thousand thir-
22 teen of this article shall not apply. Any agreement authorizing an
23 in-home simulcasting experiment commencing prior to May fifteenth, nine-
24 teen hundred ninety-five, may, and all its terms, be extended until June
25 thirtieth, two thousand [fifteen] sixteen; provided, however, that any
26 party to such agreement may elect to terminate such agreement upon
27 conveying written notice to all other parties of such agreement at least
28 forty-five days prior to the effective date of the termination, via
29 registered mail. Any party to an agreement receiving such notice of an
30 intent to terminate, may request the commission to mediate between the
31 parties new terms and conditions in a replacement agreement between the
32 parties as will permit continuation of an in-home experiment until June
33 thirtieth, two thousand [fifteen] sixteen; and (iv) no in-home simul-
34 casting in the thoroughbred special betting district shall occur without
35 the approval of the regional thoroughbred track.
36 § 2. Subparagraph (iii) of paragraph d of subdivision 3 of section
37 1007 of the racing, pari-mutuel wagering and breeding law, as amended by
38 section 2 of part AA of chapter 59 of the laws of 2014, is amended to
39 read as follows:
40 (iii) Of the sums retained by a receiving track located in Westchester
41 county on races received from a franchised corporation, for the period
42 commencing January first, two thousand eight and continuing through June
43 thirtieth, two thousand [fifteen] sixteen, the amount used exclusively
44 for purses to be awarded at races conducted by such receiving track
45 shall be computed as follows: of the sums so retained, two and one-half
46 percent of the total pools. Such amount shall be increased or decreased
47 in the amount of fifty percent of the difference in total commissions
48 determined by comparing the total commissions available after July twen-
49 ty-first, nineteen hundred ninety-five to the total commissions that
50 would have been available to such track prior to July twenty-first,
51 nineteen hundred ninety-five.
52 § 3. The opening paragraph of subdivision 1 of section 1014 of the
53 racing, pari-mutuel wagering and breeding law, as amended by section 3
54 of part AA of chapter 59 of the laws of 2014, is amended to read as
55 follows:
A. 6009 97
1 The provisions of this section shall govern the simulcasting of races
2 conducted at thoroughbred tracks located in another state or country on
3 any day during which a franchised corporation is conducting a race meet-
4 ing in Saratoga county at Saratoga thoroughbred racetrack until June
5 thirtieth, two thousand [fifteen] sixteen and on any day regardless of
6 whether or not a franchised corporation is conducting a race meeting in
7 Saratoga county at Saratoga thoroughbred racetrack after June thirtieth,
8 two thousand [fifteen] sixteen. On any day on which a franchised corpo-
9 ration has not scheduled a racing program but a thoroughbred racing
10 corporation located within the state is conducting racing, every off-
11 track betting corporation branch office and every simulcasting facility
12 licensed in accordance with section one thousand seven (that have
13 entered into a written agreement with such facility's representative
14 horsemen's organization, as approved by the commission), one thousand
15 eight, or one thousand nine of this article shall be authorized to
16 accept wagers and display the live simulcast signal from thoroughbred
17 tracks located in another state or foreign country subject to the
18 following provisions:
19 § 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering
20 and breeding law, as amended by section 4 of part AA of chapter 59 of
21 the laws of 2014, is amended to read as follows:
22 1. The provisions of this section shall govern the simulcasting of
23 races conducted at harness tracks located in another state or country
24 during the period July first, nineteen hundred ninety-four through June
25 thirtieth, two thousand [fifteen] sixteen. This section shall supersede
26 all inconsistent provisions of this chapter.
27 § 5. The opening paragraph of subdivision 1 of section 1016 of the
28 racing, pari-mutuel wagering and breeding law, as amended by section 5
29 of part AA of chapter 59 of the laws of 2014, is amended to read as
30 follows:
31 The provisions of this section shall govern the simulcasting of races
32 conducted at thoroughbred tracks located in another state or country on
33 any day during which a franchised corporation is not conducting a race
34 meeting in Saratoga county at Saratoga thoroughbred racetrack until June
35 thirtieth, two thousand [fifteen] sixteen. Every off-track betting
36 corporation branch office and every simulcasting facility licensed in
37 accordance with section one thousand seven that have entered into a
38 written agreement with such facility's representative horsemen's organ-
39 ization as approved by the commission, one thousand eight or one thou-
40 sand nine of this article shall be authorized to accept wagers and
41 display the live full-card simulcast signal of thoroughbred tracks
42 (which may include quarter horse or mixed meetings provided that all
43 such wagering on such races shall be construed to be thoroughbred races)
44 located in another state or foreign country, subject to the following
45 provisions; provided, however, no such written agreement shall be
46 required of a franchised corporation licensed in accordance with section
47 one thousand seven of this article:
48 § 6. The opening paragraph of section 1018 of the racing, pari-mutuel
49 wagering and breeding law, as amended by section 6 of part AA of chapter
50 59 of the laws of 2014, is amended to read as follows:
51 Notwithstanding any other provision of this chapter, for the period
52 July twenty-fifth, two thousand one through September eighth, two thou-
53 sand [fourteen] fifteen, when a franchised corporation is conducting a
54 race meeting within the state at Saratoga Race Course, every off-track
55 betting corporation branch office and every simulcasting facility
56 licensed in accordance with section one thousand seven (that has entered
A. 6009 98
1 into a written agreement with such facility's representative horsemen's
2 organization as approved by the commission), one thousand eight or one
3 thousand nine of this article shall be authorized to accept wagers and
4 display the live simulcast signal from thoroughbred tracks located in
5 another state, provided that such facility shall accept wagers on races
6 run at all in-state thoroughbred tracks which are conducting racing
7 programs subject to the following provisions; provided, however, no such
8 written agreement shall be required of a franchised corporation licensed
9 in accordance with section one thousand seven of this article.
10 § 7. Section 32 of chapter 281 of the laws of 1994, amending the
11 racing, pari-mutuel wagering and breeding law and other laws relating
12 to simulcasting, as amended by section 7 of part AA of chapter 59 of the
13 laws of 2014, is amended to read as follows:
14 § 32. This act shall take effect immediately and the pari-mutuel tax
15 reductions in section six of this act shall expire and be deemed
16 repealed on July 1, [2015] 2016; provided, however, that nothing
17 contained herein shall be deemed to affect the application, qualifica-
18 tion, expiration, or repeal of any provision of law amended by any
19 section of this act, and such provisions shall be applied or qualified
20 or shall expire or be deemed repealed in the same manner, to the same
21 extent and on the same date as the case may be as otherwise provided by
22 law; provided further, however, that sections twenty-three and twenty-
23 five of this act shall remain in full force and effect only until May 1,
24 1997 and at such time shall be deemed to be repealed.
25 § 8. Section 54 of chapter 346 of the laws of 1990, amending the
26 racing, pari-mutuel wagering and breeding law and other laws relating to
27 simulcasting and the imposition of certain taxes, as amended by section
28 8 of part AA of chapter 59 of the laws of 2014, is amended to read as
29 follows:
30 § 54. This act shall take effect immediately; provided, however,
31 sections three through twelve of this act shall take effect on January
32 1, 1991, and section 1013 of the racing, pari-mutuel wagering and breed-
33 ing law, as added by section thirty-eight of this act, shall expire and
34 be deemed repealed on July 1, [2015] 2016; and section eighteen of this
35 act shall take effect on July 1, 2008 and sections fifty-one and fifty-
36 two of this act shall take effect as of the same date as chapter 772 of
37 the laws of 1989 took effect.
38 § 9. Paragraph (a) of subdivision 1 of section 238 of the racing,
39 pari-mutuel wagering and breeding law, as amended by section 9 of part
40 AA of chapter 59 of the laws of 2014, is amended to read as follows:
41 (a) The franchised corporation authorized under this chapter to
42 conduct pari-mutuel betting at a race meeting or races run thereat shall
43 distribute all sums deposited in any pari-mutuel pool to the holders of
44 winning tickets therein, provided such tickets be presented for payment
45 before April first of the year following the year of their purchase,
46 less an amount which shall be established and retained by such fran-
47 chised corporation of between twelve to seventeen per centum of the
48 total deposits in pools resulting from on-track regular bets, and four-
49 teen to twenty-one per centum of the total deposits in pools resulting
50 from on-track multiple bets and fifteen to twenty-five per centum of the
51 total deposits in pools resulting from on-track exotic bets and fifteen
52 to thirty-six per centum of the total deposits in pools resulting from
53 on-track super exotic bets, plus the breaks. The retention rate to be
54 established is subject to the prior approval of the gaming commission.
55 Such rate may not be changed more than once per calendar quarter to be
56 effective on the first day of the calendar quarter. "Exotic bets" and
A. 6009 99
1 "multiple bets" shall have the meanings set forth in section five
2 hundred nineteen of this chapter. "Super exotic bets" shall have the
3 meaning set forth in section three hundred one of this chapter. For
4 purposes of this section, a "pick six bet" shall mean a single bet or
5 wager on the outcomes of six races. The breaks are hereby defined as the
6 odd cents over any multiple of five for payoffs greater than one dollar
7 five cents but less than five dollars, over any multiple of ten for
8 payoffs greater than five dollars but less than twenty-five dollars,
9 over any multiple of twenty-five for payoffs greater than twenty-five
10 dollars but less than two hundred fifty dollars, or over any multiple of
11 fifty for payoffs over two hundred fifty dollars. Out of the amount so
12 retained there shall be paid by such franchised corporation to the
13 commissioner of taxation and finance, as a reasonable tax by the state
14 for the privilege of conducting pari-mutuel betting on the races run at
15 the race meetings held by such franchised corporation, the following
16 percentages of the total pool for regular and multiple bets five per
17 centum of regular bets and four per centum of multiple bets plus twenty
18 per centum of the breaks; for exotic wagers seven and one-half per
19 centum plus twenty per centum of the breaks, and for super exotic bets
20 seven and one-half per centum plus fifty per centum of the breaks. For
21 the period June first, nineteen hundred ninety-five through September
22 ninth, nineteen hundred ninety-nine, such tax on regular wagers shall be
23 three per centum and such tax on multiple wagers shall be two and one-
24 half per centum, plus twenty per centum of the breaks. For the period
25 September tenth, nineteen hundred ninety-nine through March thirty-
26 first, two thousand one, such tax on all wagers shall be two and six-
27 tenths per centum and for the period April first, two thousand one
28 through December thirty-first, two thousand [fifteen] sixteen, such tax
29 on all wagers shall be one and six-tenths per centum, plus, in each such
30 period, twenty per centum of the breaks. Payment to the New York state
31 thoroughbred breeding and development fund by such franchised corpo-
32 ration shall be one-half of one per centum of total daily on-track pari-
33 mutuel pools resulting from regular, multiple and exotic bets and three
34 per centum of super exotic bets provided, however, that for the period
35 September tenth, nineteen hundred ninety-nine through March thirty-
36 first, two thousand one, such payment shall be six-tenths of one per
37 centum of regular, multiple and exotic pools and for the period April
38 first, two thousand one through December thirty-first, two thousand
39 [fifteen] sixteen, such payment shall be seven-tenths of one per centum
40 of such pools.
41 § 10. This act shall take effect immediately.
42 PART OO
43 Section 1. Section 1602 of the tax law is amended by adding a new
44 subdivision 6 to read as follows:
45 6. "Video lottery gaming" means any lottery game played on a video
46 lottery terminal that issues electronic tickets, allows multiple players
47 to participate in the same game and determines winners to a material
48 degree upon the element of chance, notwithstanding that the skill of a
49 player may influence such player's chance of winning a game. Video
50 lottery gaming may include elements of player interaction after a player
51 receives an initial chance.
52 § 2. Subdivision 28 of section 225.00 of the penal law, as added by
53 chapter 174 of the laws of 2013, is amended to read as follows:
A. 6009 100
1 28. "Video lottery gaming" [means any lottery game played on a video
2 lottery terminal, which consists of multiple players competing for a
3 chance to win a random drawn prize pursuant to section sixteen hundred
4 seventeen-a and paragraph five of subdivision a of section sixteen
5 hundred twelve of the tax law, as amended and implemented] has the mean-
6 ing set forth in subdivision six of section sixteen hundred two of the
7 tax law.
8 § 3. This act shall take effect on the thirtieth day after it shall
9 have become a law.
10 PART PP
11 Section 1. Paragraph d of subdivision 1 of section 207 of the racing,
12 pari-mutuel wagering and breeding law, as added by chapter 457 of the
13 laws of 2012, is amended to read as follows:
14 d. The board, which shall become effective upon appointment of a
15 majority of public members, shall terminate [three] four years from its
16 date of creation. The board shall propose, no less than one hundred
17 eighty days prior to its termination, recommendations to the governor
18 and the state legislature representing a statutory plan for the prospec-
19 tive not-for-profit governing structure of The New York Racing Associ-
20 ation, Inc.
21 § 2. This act shall take effect June 18, 2015.
22 PART QQ
23 Section 1. Chapter 6 of title 11 of the administrative code of the
24 city of New York is amended by adding a new subchapter 3-A to read as
25 follows:
26 SUBCHAPTER 3-A
27 CORPORATE TAX OF 2015
28 Section 11-651 Applicability.
29 11-652 Definitions.
30 11-653 Imposition of tax; exemptions.
31 11-654 Computation of tax.
32 11-654.1 Net operating loss.
33 11-654.2 Receipts apportionment.
34 11-654.3 Combined reports.
35 11-655 Reports.
36 11-656 Payment and lien of tax.
37 11-657 Declaration of estimated tax.
38 11-658 Payments on account of estimated tax.
39 11-659 Collection of taxes.
40 11-660 Limitations of time.
41 § 11-651 Applicability. 1. Notwithstanding anything to the contrary
42 in this chapter, this subchapter shall apply to corporations for tax
43 years commencing on or after January first, two thousand fifteen, except
44 that it shall not apply to any corporation that (a) has an election in
45 effect under subsection (a) of section thirteen hundred sixty-two of the
46 internal revenue code of 1986, as amended, or (b) is a qualified
47 subchapter S subsidiary within the meaning of paragraph three of
48 subsection (b) of section thirteen hundred sixty-one of the internal
49 revenue code of 1986, as amended, in any tax year after such date.
50 Subchapters two and three of this chapter shall not apply to corpo-
51 rations to which this subchapter applies for tax years commencing on or
52 after January first, two thousand fifteen, except to the extent provided
A. 6009 101
1 in this subchapter and to the extent that the effect of the application
2 of subchapters two and three to tax years commencing prior to January
3 first, two thousand fifteen carries over to tax years commencing on or
4 after January first, two thousand fifteen.
5 2. Each reference in this code to subchapters two or three of this
6 chapter, or any of the provisions thereof, shall be deemed a reference
7 also to this subchapter, and any of the applicable provisions thereof,
8 where appropriate and with all necessary modifications.
9 § 11-652 Definitions. 1. (a) The term "corporation" includes (1) an
10 association within the meaning of paragraph three of subsection (a) of
11 section seventy-seven hundred one of the internal revenue code (includ-
12 ing, when applicable, a limited liability company), (2) a joint-stock
13 company or association, (3) a publicly traded partnership treated as a
14 corporation for purposes of the internal revenue code pursuant to
15 section seventy-seven hundred four thereof and (4) any business
16 conducted by a trustee or trustees wherein interest or ownership is
17 evidenced by certificate or other written instrument;
18 (b) (1) Notwithstanding paragraph (a) of this subdivision, an unincor-
19 porated organization that (i) is described in subparagraph one or three
20 of such paragraph (a) of this subdivision, (ii) was subject to the
21 provisions of chapter five of this title for its taxable year beginning
22 in nineteen hundred ninety-five, and (iii) made a one-time election not
23 to be treated as a corporation and, instead, to continue to be subject
24 to the provisions of chapter five of this title for its taxable years
25 beginning in nineteen hundred ninety-six and thereafter, shall continue
26 to be subject to the provisions of chapter five of this title for its
27 taxable years beginning in nineteen hundred ninety-six.
28 (2) An election under this paragraph shall continue to be in effect
29 until revoked by the unincorporated organization. An election under this
30 paragraph shall be revoked by the filing of a return under this subchap-
31 ter for the first taxable year with respect to which such revocation is
32 to be effective. Such return shall be filed on or before the due date
33 (determined with regard to extensions) for filing such return. In no
34 event shall such election or revocation be for a part of a taxable year.
35 (c) Notwithstanding paragraph (a) of this subdivision, a corporation
36 shall not include an entity classified as a partnership for federal
37 income tax purposes.
38 2. The term "subsidiary" means a corporation of which over fifty per
39 centum of the number of shares of stock entitling the holders thereof to
40 vote for the election of directors or trustees is owned by the taxpayer.
41 2-a. The term "taxpayer" means any corporation subject to tax under
42 this subchapter.
43 3. Intentionally omitted.
44 3-a. The term "stock" means an interest in a corporation that is
45 treated as equity for federal income tax purposes.
46 4. (a) The term "investment capital" means investments in stocks that
47 are held by the taxpayer for more than six consecutive months but are
48 not and have never been used by the taxpayer in the regular course of
49 business, or, if the taxpayer makes the election provided for in subpar-
50 agraph one of paragraph (a) of subdivision five of section 11-654.2 of
51 this subchapter, are not qualified financial instruments as described in
52 subdivision five of section 11-654.2 of this subchapter. Stock in a
53 corporation that is conducting a unitary business with the taxpayer,
54 stock in a corporation that is included in a combined report with the
55 taxpayer pursuant to the commonly owned group election in subdivision
56 three of section 11-654.3 of this subchapter, and stock issued by the
A. 6009 102
1 taxpayer shall not constitute investment capital. For purposes of this
2 subdivision, if the taxpayer owns or controls, directly or indirectly,
3 less than twenty percent of the voting power of the stock of a corpo-
4 ration, that corporation will be presumed to be conducting a business
5 that is not unitary with the business of the taxpayer.
6 (b) There shall be deducted from investment capital any liabilities
7 which are directly or indirectly attributable to investment capital. If
8 the amount of those liabilities exceeds the amount of investment capi-
9 tal, the amount of investment capital will be zero.
10 (c) Investment capital shall not include any such investments the
11 income from which is excluded from entire net income pursuant to the
12 provisions of paragraph (c-1) of subdivision eight of this section, and
13 that investment capital shall be computed without regard to liabilities
14 directly or indirectly attributable to such investments, but only if air
15 carriers organized in the United States and operating in the foreign
16 country or countries in which the taxpayer has its major base of oper-
17 ations and in which it is organized, resident or headquartered (if not
18 in the same country as its major base of operations) are not subject to
19 any tax based on or measured by capital imposed by such foreign country
20 or countries or any political subdivision thereof, or if taxed, are
21 provided an exemption, equivalent to that provided for herein, from any
22 tax based on or measured by capital imposed by such foreign country or
23 countries and from any such tax imposed by any political subdivision
24 thereof.
25 (d) If a taxpayer acquires stock during the second half of its taxable
26 year and owns that stock on the last day of the taxable year, it will be
27 presumed, solely for the purposes of determining whether that stock
28 should be classified as investment capital after it is acquired, that
29 the taxpayer held that stock for more than six consecutive months during
30 the taxable year. This presumption shall apply only if the taxpayer in
31 fact owns the stock at the time it files its original report for the
32 taxable year in which it acquires the stock. However, if the taxpayer
33 does not in fact hold that stock as investment capital for more than six
34 consecutive months, the taxpayer must increase its business capital in
35 the immediately succeeding taxable year by the amount included in
36 investment capital for that stock, net of any liabilities attributable
37 to that stock computed as provided in paragraph (b) of this subdivision
38 and must increase its business income in the immediately succeeding
39 taxable year by the amount of income and net gains (but not less than
40 zero) from that stock included in investment income, less any interest
41 deductions directly or indirectly attributable to that stock, as
42 provided in subdivision five of this section.
43 (e) When income or gain from a debt obligation or other security
44 cannot be allocated to the city using the business allocation percentage
45 as a result of the United States constitutional principles, the debt
46 obligation or other security will be included in investment capital.
47 5. (a) The term "investment income" means income, including capital
48 gains in excess of capital losses, from investment capital, to the
49 extent included in computing entire net income, less, in the discretion
50 of the commissioner of finance, any interest deductions allowable in
51 computing entire net income which are directly or indirectly attribut-
52 able to investment capital or investment income, provided, however, that
53 in no case shall investment income exceed entire net income. If the
54 amount of interest deductions subtracted under the preceding sentence
55 exceeds investment income, the excess of such amount over investment
56 income must be added back to entire net income.
A. 6009 103
1 (b) In lieu of subtracting from investment income the amount of those
2 interest deductions, the taxpayer may elect to reduce its total invest-
3 ment income by forty percent. If the taxpayer makes this election, the
4 taxpayer must also make the elections provided for in paragraphs (b) and
5 (c) of subdivision five-a of this section. A taxpayer which does not
6 make this election because it has no investment capital will not be
7 precluded from making those other elections.
8 (c) Investment income shall not include any amount treated as divi-
9 dends pursuant to section seventy-eight of the internal revenue code.
10 5-a. (a) The term "other exempt income" means the sum of exempt CFC
11 income and exempt unitary corporation dividends.
12 (b) "Exempt CFC income" means the income required to be included in
13 the taxpayer's federal gross income pursuant to subsection (a) of
14 section nine hundred fifty-one of the internal revenue code, received
15 from a corporation that is conducting a unitary business with the
16 taxpayer but is not included in a combined report with the taxpayer,
17 less, in the discretion of the commissioner of finance, any interest
18 deductions directly or indirectly attributable to that income. In lieu
19 of subtracting from its exempt CFC income the amount of those interest
20 deductions, the taxpayer may elect to reduce its total exempt CFC income
21 by forty percent. If the taxpayer makes this election, the taxpayer must
22 also make the elections provided for in paragraph (b) of subdivision
23 five of this section and paragraph (c) of this subdivision. A taxpayer
24 which does not make this election because it has no exempt CFC income
25 will not be precluded from making those other elections.
26 (c) "Exempt unitary corporate dividends" means those dividends from a
27 corporation that is conducting a unitary business with the taxpayer but
28 is not included in a combined report with the taxpayer, less, in the
29 discretion of the commissioner of finance, any interest deductions
30 directly or indirectly attributable to such income. Other than dividend
31 income received from corporations that are taxable under chapter eleven
32 of this title (except for vendors of utility services that are also
33 taxable under this subchapter) or would be taxable under chapter eleven
34 of this title (except for vendors of utility services that are also
35 taxable under this subchapter) if subject to tax, in lieu of subtracting
36 from this dividend income those interest deductions, the taxpayer may
37 elect to reduce the total amount of this dividend income by forty
38 percent. If the taxpayer makes this election, the taxpayer must also
39 make the elections provided for in paragraph (b) of subdivision five of
40 this section and paragraph (b) of this subdivision. A taxpayer that does
41 not make this election because it has not received any exempt unitary
42 corporation dividends or is precluded from making this election for
43 dividends received from corporations that are taxable under chapter
44 eleven of this title (except for vendors of utility services that are
45 also taxable under this subchapter) or would be taxable under chapter
46 eleven of this title if subject to tax (except for vendors of utility
47 services that are also taxable under this subchapter) will not be
48 precluded from making those other elections.
49 (d) If the taxpayer attributes interest deductions to other exempt
50 income and the amount deducted exceeds other exempt income, the excess
51 of the interest deductions over other exempt income must be added back
52 to entire net income. In no case shall other exempt income exceed entire
53 net income.
54 (e) Other exempt income shall not include any amount treated as divi-
55 dends pursuant to section seventy-eight of the internal revenue code.
A. 6009 104
1 6. (a) The term "business capital" means all assets, other than
2 investment capital and stock issued by the taxpayer, less liabilities
3 not deducted from investment capital; provided, however, business capi-
4 tal shall include only those assets the income, loss or expense of which
5 are properly reflected (or would have been properly reflected if not
6 fully depreciated or expensed or depreciated or expensed to a nominal
7 amount) in the computation of entire net income for the taxable year.
8 (b) Provided, further, "business capital" shall not include assets to
9 the extent employed for the purpose of generating income which is
10 excluded from entire net income pursuant to the provisions of paragraph
11 (c-1) of subdivision eight of this section and shall be computed without
12 regard to liabilities directly or indirectly attributable to such
13 assets, but only if air carriers organized in the United States and
14 operating in the foreign country or countries in which the taxpayer has
15 its major base of operations and in which it is organized, resident or
16 headquartered (if not in the same country as its major base of oper-
17 ations) are not subject to any tax based on or measured by capital
18 imposed by such foreign country or countries or any political subdivi-
19 sion thereof, or if taxed, are provided an exemption, equivalent to that
20 provided for herein, from any tax based on or measured by capital
21 imposed by such foreign country or countries and from any such tax
22 imposed by any political subdivision thereof.
23 7. The term "business income" means entire net income minus investment
24 income and other exempt income. In no event shall the sum of investment
25 income and other exempt income exceed entire net income. If the taxpayer
26 makes the election provided for in subparagraph one of paragraph (a) of
27 subdivision five of section 11-654.2 of this subchapter, then all income
28 from qualified financial instruments shall constitute business income.
29 8. The term "entire net income" means total net income from all sourc-
30 es, which shall be presumably the same as the entire taxable income (but
31 not alternative minimum taxable income), which except as hereafter
32 provided in this subdivision.
33 1. the taxpayer is required to report to the United States treasury
34 department, or
35 2. the taxpayer, in the case of a corporation that is exempt from
36 federal income tax (other than the tax on unrelated business taxable
37 income imposed under section five hundred eleven of the internal revenue
38 code) but which is subject to tax under this subchapter, would have been
39 required to report to the United States treasury department but for such
40 exemption, or
41 3. in the case of an alien corporation that under any provision of the
42 internal revenue code is not treated as a "domestic corporation" as
43 defined in section seven thousand seven hundred one of such code, is
44 effectively connected with the conduct of a trade or business within the
45 United States as determined under section eight hundred eighty-two of
46 the internal revenue code.
47 (a) Entire net income shall not include:
48 (1) Intentionally omitted;
49 (2) Intentionally omitted;
50 (2-a) any amounts treated as dividends pursuant to section seventy-
51 eight of the internal revenue code and not otherwise deductible under
52 subparagraphs one and two of this paragraph;
53 (3) bona fide gifts;
54 (4) income and deductions with respect to amounts received from school
55 districts and from corporations and associations, organized and operated
56 exclusively for religious, charitable or educational purposes, no part
A. 6009 105
1 of the net earnings of which inures to the benefit of any private share-
2 holder or individual, for the operation of school buses;
3 (5) any refund or credit of a tax imposed under this chapter, or
4 imposed by article nine, nine-A, twenty-three, or former article thir-
5 ty-two of the tax law, for which tax no exclusion or deduction was
6 allowed in determining the taxpayer's entire net income under this
7 subchapter, subchapter two, or subchapter three of this chapter for any
8 prior year;
9 (6) Intentionally omitted;
10 (7) that portion of wages and salaries paid or incurred for the taxa-
11 ble year for which a deduction is not allowed pursuant to the provisions
12 of section two hundred eighty-C of the internal revenue code;
13 (8) except with respect to property which is a qualified mass commut-
14 ing vehicle described in subparagraph (D) of paragraph eight of
15 subsection (f) of section one hundred sixty-eight of the internal reven-
16 ue code (relating to qualified mass commuting vehicles) and property of
17 a taxpayer principally engaged in the conduct of an aviation, steamboat,
18 ferry or navigation business, or two or more of such businesses, which
19 is placed in service before taxable years beginning in nineteen hundred
20 eighty-nine, any amount which is included in the taxpayer's federal
21 taxable income solely as a result of an election made pursuant to the
22 provisions of such paragraph eight as it was in effect for agreements
23 entered into prior to January first, nineteen hundred eighty-four;
24 (9) except with respect to property which is a qualified mass commut-
25 ing vehicle described in subparagraph (D) of paragraph eight of
26 subsection (f) of section one hundred sixty-eight of the internal reven-
27 ue code (relating to qualified mass commuting vehicles) and property of
28 a taxpayer principally engaged in the conduct of an aviation, steamboat,
29 ferry or navigation business, or two or more of such businesses, which
30 is placed in service before taxable years beginning in nineteen hundred
31 eighty-nine, any amount which the taxpayer could have excluded from
32 federal taxable income had it not made the election provided for in such
33 paragraph eight as it was in effect for agreements entered into prior to
34 January first, nineteen hundred eighty-four;
35 (10) the amount deductible pursuant to paragraph (j) of this subdivi-
36 sion;
37 (11) upon the disposition of property to which paragraph (j) of this
38 subdivision applies, the amount, if any, by which the aggregate of the
39 amounts described in subparagraph eleven of paragraph (b) of this subdi-
40 vision attributable to such property exceeds the aggregate of the
41 amounts described in paragraph (j) of this subdivision attributable to
42 such property;
43 (12) the amount deductible pursuant to paragraph (k) of this subdivi-
44 sion;
45 (13) the amount deductible pursuant to paragraph (o) of this subdivi-
46 sion; and
47 (14) the amount computed pursuant to paragraph (q), (r) or (s) of this
48 subdivision, but only the amount determined pursuant to one of such
49 paragraphs.
50 (a-1) Notwithstanding any other provision of this subchapter, in the
51 case of a taxpayer that is a partner in a partnership subject to the tax
52 imposed by chapter eleven of this title as a utility, as defined in
53 subdivision six of section 11-1101 of such chapter, entire net income
54 shall not include the taxpayer's distributive or pro rata share for
55 federal income tax purposes of any item of income, gain, loss or
56 deduction of such partnership, or any item of income, gain, loss or
A. 6009 106
1 deduction of such partnership that the taxpayer is required to take into
2 account separately for federal income tax purposes.
3 (b) Entire net income shall be determined without the exclusion,
4 deduction or credit of:
5 (1) in the case of an alien corporation that under any provision of
6 the internal revenue code is not treated as a "domestic corporation" as
7 defined in section seven thousand seven hundred one of such code, (i)
8 any part of any income from dividends or interest on any kind of stock,
9 securities or indebtedness, but only if such income is treated as effec-
10 tively connected with the conduct of a trade or business in the United
11 States pursuant to section eight hundred sixty-four of the internal
12 revenue code, (ii) any income exempt from federal taxable income under
13 any treaty obligation of the United States, but only if such income
14 would be treated as effectively connected in the absence of such
15 exemption provided that such treaty obligation does not preclude the
16 taxation of such income by a state, or (iii) any income which would be
17 treated as effectively connected if such income were not excluded from
18 gross income pursuant to subsection (a) of section one hundred three or
19 the internal revenue code;
20 (2) any part of any income from dividends or interest on any kind of
21 stock, securities, or indebtedness;
22 (3) taxes on or measured by profits or income paid or accrued to the
23 United States, any of its possessions, territories or commonwealths,
24 including taxes in lieu of any of the foregoing taxes otherwise general-
25 ly imposed by any possession, territory or commonwealth of the United
26 States, or taxes paid or accrued to the state under article nine,
27 nine-A, thirteen-A or thirty-two of the tax law as in effect on December
28 thirty-first, two thousand fourteen;
29 (3-a) taxes on or measured by profits or income, or which include
30 profits or income as a measure, paid or accrued to any other state of
31 the United States, or any political subdivision thereof, or to the
32 District of Columbia, including taxes expressly in lieu of any of the
33 foregoing taxes otherwise generally imposed by any other state of the
34 United States, or any political subdivision thereof, or the District of
35 Columbia;
36 (4) taxes imposed under this chapter;
37 (4-a) Intentionally omitted;
38 (4-b) the amount allowed as an exclusion or a deduction imposed by the
39 tax law in determining the entire taxable income for a relocation
40 described in subdivision thirteen of section 11-654 of this subchapter
41 which the taxpayer is required to report to the United States treasury
42 department but only such portion of such exclusion or deduction which is
43 not in excess of the amount of the credit allowed pursuant to subdivi-
44 sion thirteen of section 11-654 of this subchapter;
45 (4-c) the amount allowed as an exclusion or a deduction imposed by the
46 tax law for a relocation described in subdivision fourteen of section
47 11-654 of this subchapter in determining the entire taxable income which
48 the taxpayer is required to report to the United States treasury depart-
49 ment but only such portion of such exclusion or deduction which is not
50 in excess of the amount of the credit allowed pursuant to subdivision
51 fourteen of section 11-654 of this subchapter;
52 (4-d) Intentionally omitted;
53 (4-e) Intentionally omitted;
54 (5) Intentionally omitted;
A. 6009 107
1 (6) any amount allowed as a deduction for the taxable year under
2 section one hundred seventy-two of the internal revenue code, including
3 carryovers of deductions from prior taxable years;
4 (7) any amount by reason of the granting, issuing or assuming of a
5 restricted stock option, as defined in the internal revenue code of
6 nineteen hundred fifty-four, or by reason of the transfer of the share
7 of stock upon the exercise of the option, unless such share is disposed
8 of by the grantee of the option within two years from the date of the
9 granting of the option or within six months after the transfer of such
10 share to the grantee;
11 (8) Intentionally omitted;
12 (9) except with respect to property which is a qualified mass commut-
13 ing vehicle described in subparagraph (D) of paragraph eight of
14 subsection (f) of section one hundred sixty-eight of the internal reven-
15 ue code (relating to qualified mass commuting vehicles) and property of
16 a taxpayer principally engaged in the conduct of an aviation, steamboat,
17 ferry or navigation business, or two or more of such businesses, which
18 is placed in service before taxable years beginning in nineteen hundred
19 eighty-nine, any amount which the taxpayer claimed as a deduction in
20 computing its federal taxable income solely as a result of an election
21 made pursuant to the provisions of such paragraph eight as it was in
22 effect for agreements entered into prior to January first, nineteen
23 hundred eighty-four;
24 (10) except with respect to property which is a qualified mass commut-
25 ing vehicle described in subparagraph (D) of paragraph eight of
26 subsection (f) of section one hundred sixty-eight of the internal reven-
27 ue code (relating to qualified mass commuting vehicles) and property of
28 a taxpayer principally engaged in the conduct of an aviation, steamboat,
29 ferry or navigation business, or two or more of such businesses, which
30 is placed in service before taxable years beginning in nineteen hundred
31 eighty-nine, any amount which the taxpayer would have been required to
32 include in the computation of its federal taxable income had it not made
33 the election permitted pursuant to such paragraph eight as it was in
34 effect for agreements entered into prior to January first, nineteen
35 hundred eighty-four;
36 (11) in the case of property placed in service in taxable years begin-
37 ning before nineteen hundred ninety-four, for taxable years beginning
38 after December thirty-first, nineteen hundred eighty-one, except with
39 respect to property subject to the provisions of section two hundred
40 eighty-F of the internal revenue code, property subject to the
41 provisions of section one hundred sixty-eight of the internal revenue
42 code which is placed in service in this state in taxable years beginning
43 after December thirty-first, nineteen hundred eighty-four and property
44 of a taxpayer principally engaged in the conduct of an aviation, steam-
45 boat, ferry or navigation business, or two or more of such businesses,
46 which is placed in service before taxable years beginning in nineteen
47 hundred eighty-nine, the amount allowable as a deduction determined
48 under section one hundred sixty-eight of the internal revenue code;
49 (12) upon the disposition of property to which paragraph (j) of this
50 subdivision applies, the amount, if any, by which the aggregate of the
51 amounts described in such paragraph (j) attributable to such property
52 exceeds the aggregate of the amounts described in subparagraph eleven of
53 this paragraph attributable to such property;
54 (13) Intentionally omitted;
55 (14) Intentionally omitted;
56 (15) Intentionally omitted;
A. 6009 108
1 (16) in the case of qualified property described in paragraph two of
2 subsection (k) of section one hundred sixty-eight of the internal reven-
3 ue code, other than qualified resurgence zone property described in
4 paragraph (m) of this subdivision, and other than qualified New York
5 Liberty Zone property described in paragraph two of subsection (b) of
6 section fourteen hundred-L of the internal revenue code (without regard
7 to clause (i) of subparagraph (C) of such paragraph), the amount allow-
8 able as a deduction under section one hundred sixty-seven of the inter-
9 nal revenue code;
10 (17) in the case of a taxpayer that is not an eligible farmer as
11 defined in subsection (n) of section six hundred six of the tax law, the
12 amount allowable as a deduction under sections one hundred seventy-nine,
13 one hundred sixty-seven and one hundred sixty-eight of the internal
14 revenue code with respect to a sport utility vehicle that is not a
15 passenger automobile as defined in paragraph five of subsection (d) of
16 section two hundred eighty-F of the internal revenue code;
17 (18) the amount of any deduction allowed pursuant to section one
18 hundred ninety-nine of the internal revenue code;
19 (19) the amount of any federal deduction for taxes imposed under arti-
20 cle twenty-three of the tax law;
21 (c) Intentionally omitted;
22 (c-1)(1) Notwithstanding any other provision of this subchapter, in
23 the case of a taxpayer which is a foreign air carrier holding a foreign
24 air carrier permit issued by the United States department of transporta-
25 tion pursuant to section four hundred two of the federal aviation act of
26 nineteen hundred fifty-eight, as amended, and which is qualified under
27 subparagraph two of this paragraph, entire net income shall not include,
28 and shall be computed without the deduction of, amounts directly or
29 indirectly attributable to, (i) any income derived from the interna-
30 tional operation of aircraft as described in and subject to the
31 provisions of section eight hundred eighty-three of the internal revenue
32 code, (ii) income without the United States which is derived from the
33 operation of aircraft, and (iii) income without the United States which
34 is of a type described in subdivision (a) of section eight hundred
35 eighty-one of the internal revenue code except that it is derived from
36 sources without the United States. Entire net income shall include
37 income described in clauses (i), (ii) and (iii) of this subparagraph in
38 the case of taxpayers not described in the previous sentence;
39 (2) A taxpayer is qualified under this subparagraph if air carriers
40 organized in the United States and operating in the foreign country or
41 countries in which the taxpayer has its major base of operations and in
42 which it is organized, resident or headquartered (if not in the same
43 country as its major base of operations) are not subject to any income
44 tax or other tax based on or measured by income or receipts imposed by
45 such foreign country or countries or any political subdivision thereof,
46 or if so subject to such tax, are provided an exemption from such tax
47 equivalent to that provided for herein;
48 (d) The commissioner of finance may, whenever necessary in order prop-
49 erly to reflect the entire net income of any taxpayer, determine the
50 year or period in which any item of income or deduction shall be
51 included, without regard to the method of accounting employed by the
52 taxpayer;
53 (e) The entire net income of any bridge commission created by act of
54 congress to construct a bridge across an international boundary means
55 its gross income less the expense of maintaining and operating its prop-
56 erties, the annual interest upon its bonds and other obligations, and
A. 6009 109
1 the annual charge for the retirement of such bonds or obligations at
2 maturity;
3 (f) Intentionally omitted;
4 (g) At the election of the taxpayer, a deduction shall be allowed for
5 expenditures paid or incurred during the taxable year for the
6 construction, reconstruction, erection or improvement of industrial
7 waste treatment facilities and air pollution control facilities.
8 (1)(i) The term "industrial waste treatment facilities" shall mean
9 facilities for the treatment, neutralization or stabilization of indus-
10 trial waste (as the term "industrial waste" is defined in section
11 17-0105 of the environmental conservation law) from a point immediately
12 preceding the point of such treatment, neutralization or stabilization
13 to the point of disposal, including the necessary pumping and transmit-
14 ting facilities, but excluding such facilities installed for the primary
15 purpose of salvaging materials which are usable in the manufacturing
16 process or are marketable.
17 (ii) The term "air pollution control facilities" shall mean facilities
18 which remove, reduce, or render less noxious air contaminants emitted
19 from an air contamination source (as the terms "air contaminant" and
20 "air contamination source" are defined in section 19-0107 of the envi-
21 ronmental conservation law) from a point immediately preceding the point
22 of such removal, reduction or rendering to the point of discharge of
23 air, meeting emission standards as established by the air pollution
24 control board, but excluding such facilities installed for the primary
25 purpose of salvaging materials which are usable in the manufacturing
26 process or are marketable and excluding those facilities which rely for
27 their efficacy on dilution, dispersion or assimilation of air contam-
28 inants in the ambient air after emission.
29 (2) However, such deduction shall be allowed only (i) with respect to
30 tangible property which is depreciable, pursuant to section one hundred
31 sixty-seven of the internal revenue code, having a situs in the city and
32 used in the taxpayer's trade or business, the construction, recon-
33 struction, erection or improvement of which, in the case of industrial
34 waste treatment facilities, is initiated on or after January first,
35 nineteen hundred sixty-six, and only for expenditures paid or incurred
36 prior to January first, nineteen hundred seventy-two, or which, in the
37 case of air pollution control facilities, is initiated on or after Janu-
38 ary first, nineteen hundred sixty-six, and
39 (ii) on condition that such facilities have been certified by the
40 state commissioner of environmental conservation or the state commis-
41 sioner's designated representative, in the same manner as provided for
42 in section 17-0707 or 19-0309 of the environmental conservation law, as
43 applicable, as complying with applicable provisions of the environmental
44 conservation law, the state sanitary code and regulations, permits or
45 orders issued pursuant thereto, and
46 (iii) on condition that entire net income for the taxable year and all
47 succeeding taxable years be computed without any deductions for such
48 expenditures or for depreciation of the same property other than the
49 deductions allowed by this paragraph except to the extent that the basis
50 of the property may be attributable to factors other than such expendi-
51 tures, or in case a deduction is allowable pursuant to this paragraph
52 for only a part of such expenditures, on condition that any deduction
53 allowed for federal income tax purposes for such expenditures or for
54 depreciation of the same property be proportionately reduced in comput-
55 ing entire net income for the taxable year and all succeeding taxable
56 years, and
A. 6009 110
1 (iv) where the election provided for in paragraph (d) of subdivision
2 three of section 11-604 of this chapter or the election provided for in
3 subdivision (k) of section 11-641 of this chapter has not been exercised
4 in respect to the same property.
5 (3)(i) If expenditures in respect to an industrial waste treatment
6 facility or an air pollution control facility have been deducted as
7 provided herein and if within ten years from the end of the taxable year
8 in which such deduction was allowed such property or any part thereof is
9 used for the primary purpose of salvaging materials which are usable in
10 the manufacturing process or are marketable, the taxpayer shall report
11 such change of use in its report for the first taxable year during which
12 it occurs, and the commissioner of finance may recompute the tax for the
13 year or years for which such deduction was allowed and any carryback or
14 carryover year, and may assess any additional tax resulting from such
15 recomputation within the time fixed by paragraph (h) of subdivision
16 three of section 11-674 of this chapter.
17 (ii) If a deduction is allowed as herein provided for expenditures
18 paid or incurred during any taxable year on the basis of a temporary
19 certificate of compliance issued pursuant to the environmental conserva-
20 tion law and if the taxpayer fails to obtain a permanent certificate of
21 compliance upon completion of the facilities with respect to which such
22 temporary certificate was issued, the taxpayer shall report such failure
23 in its report for the taxable year during which such facilities are
24 completed, and the commissioner of finance may recompute the tax for the
25 year or years for which such deduction was allowed and any carryback or
26 carryover year, and may assess any additional tax resulting from such
27 recomputation within the time fixed by paragraph (h) of subdivision
28 three of section 11-674 of this chapter.
29 (4) In any taxable year when property is sold or otherwise disposed
30 of, with respect to which a deduction has been allowed pursuant to this
31 paragraph, such deduction shall be disregarded in computing gain or
32 loss, and the gain or loss on the sale or other disposition of such
33 property shall be the gain or loss entering into the computation of
34 entire taxable income which the taxpayer is required to report to the
35 United States treasury for such taxable year;
36 (h) With respect to gain derived from the sale or other disposition of
37 any property acquired prior to January first, nineteen hundred sixty-
38 six; which had a federal adjusted basis on such date (or on the date of
39 its sale or other disposition prior to January first, nineteen hundred
40 sixty-six) lower than its fair market value on January first, nineteen
41 hundred sixty-six or the date of its sale or other disposition prior
42 thereto, except property described in subsections one and four of
43 section twelve hundred twenty-one of the internal revenue code, there
44 shall be deducted from entire net income, the difference between (1) the
45 amount of the taxpayer's federal taxable income, and (2) the amount of
46 the taxpayer's federal taxable income (if smaller than the amount
47 described in subparagraph one of this paragraph) computed as if the
48 federal adjusted basis of each such property (on the sale or other
49 disposition of which gain was derived) on the date of the sale or other
50 disposition had been equal to either (i) its fair market value on Janu-
51 ary first, nineteen hundred sixty-six or the date of its sale or other
52 disposition prior to January first, nineteen hundred sixty-six, plus or
53 minus all adjustments to basis made with respect to such property for
54 federal income tax purposes for periods on and after January first,
55 nineteen hundred sixty-six or (ii) the amount realized from its sale or
56 disposition, whichever is lower; provided, however, that the total
A. 6009 111
1 modification provided by this paragraph shall not exceed the amount of
2 the taxpayer's net gain from the sale or other disposition of all such
3 property.
4 (i) If the period covered by a report under this subchapter is other
5 than the period covered by the report of the United States treasury
6 department, entire net income shall be determined by multiplying the
7 federal taxable income (as adjusted pursuant to the provisions of this
8 subchapter) by the number of calendar months or major parts thereof
9 covered by the report under this subchapter and dividing by the number
10 of calendar months or major parts thereof covered by the report to such
11 department. If it shall appear that such method of determining entire
12 net income does not properly reflect the taxpayer's income during the
13 period covered by the report under this subchapter, the commissioner of
14 finance shall be authorized in his or her discretion to determine such
15 entire net income solely on the basis of the taxpayer's income during
16 the period covered by its report under this subchapter.
17 (j) In the case of property placed in service in taxable years begin-
18 ning before nineteen hundred ninety-four, for taxable years beginning
19 after December thirty-first, nineteen hundred eighty-one, except with
20 respect to property subject to the provisions of section two hundred
21 eighty-F of the internal revenue code and property subject to the
22 provisions of section one hundred sixty-eight of the internal revenue
23 code which is placed in service in this state in taxable years beginning
24 after December thirty-first, nineteen hundred eighty-four, and provided
25 a deduction has not been excluded from entire net income pursuant to
26 subparagraph nine of paragraph (b) of this subdivision, a taxpayer shall
27 be allowed with respect to property which is subject to the provisions
28 of section one hundred sixty-eight of the internal revenue code the
29 depreciation deduction allowable under section one hundred sixty-seven
30 of the internal revenue code as such section would have applied to prop-
31 erty placed in service on December thirty-first, nineteen hundred
32 eighty. This paragraph shall not apply to property of a taxpayer princi-
33 pally engaged in the conduct of an aviation, steamboat, ferry or naviga-
34 tion business, or two or more of such businesses, which is placed in
35 service before taxable years beginning in nineteen hundred eighty-nine.
36 (k) In the case of qualified property described in paragraph two of
37 subsection (k) of section one hundred sixty-eight of the internal reven-
38 ue code, other than qualified resurgence zone property described in
39 paragraph (m) of this subdivision, and other than qualified New York
40 Liberty Zone property described in paragraph two of subsection (b) of
41 section fourteen hundred L of the internal revenue code (without regard
42 to clause (i) of subparagraph (C) of such paragraph), the depreciation
43 deduction allowable under section one hundred sixty-seven as such
44 section would have applied to such property had it been acquired by the
45 taxpayer on September tenth, two thousand one, provided, however, that
46 for taxable years beginning on or after January first, two thousand
47 four, in the case of a passenger motor vehicle or a sport utility vehi-
48 cle subject to the provisions of paragraph (o) of this subdivision, the
49 limitation under clause (i) of subparagraph (A) of paragraph one of
50 subdivision (a) of section two hundred eighty-F of the internal revenue
51 code applicable to the amount allowed as a deduction under this para-
52 graph shall be determined as of the date such vehicle was placed in
53 service and not as of September tenth, two thousand one.
54 (l) Upon the disposition of property to which paragraph (k) of this
55 subdivision applies, the amount of any gain or loss includible in entire
56 net income shall be adjusted to reflect the inclusions and exclusions
A. 6009 112
1 from entire net income pursuant to subparagraph twelve of paragraph (a)
2 and subparagraph sixteen of paragraph (b) of this subdivision attribut-
3 able to such property.
4 (m) For purposes of this paragraph and paragraph (l) of this subdivi-
5 sion, qualified resurgence zone property shall mean qualified property
6 described in paragraph two of subsection (k) of section one hundred
7 sixty-eight of the internal revenue code substantially all of the use of
8 which is in the resurgence zone, as defined below, and is in the active
9 conduct of a trade or business by the taxpayer in such zone, and the
10 original use of which in the resurgence zone commences with the taxpayer
11 after September tenth, two thousand one. The resurgence zone shall mean
12 the area of New York county bounded on the south by a line running from
13 the intersection of the Hudson River with the Holland Tunnel, and
14 running thence east to Canal Street, then running along the centerline
15 of Canal Street to the intersection of the Bowery and Canal Street,
16 running thence in a southeasterly direction diagonally across Manhattan
17 Bridge Plaza, to the Manhattan Bridge, and thence along the centerline
18 of the Manhattan Bridge to the point where the centerline of the Manhat-
19 tan Bridge would intersect with the easterly bank of the East River, and
20 bounded on the north by a line running from the intersection of the
21 Hudson River with the Holland Tunnel and running thence north along West
22 Avenue to the intersection of Clarkson Street then running east along
23 the centerline of Clarkson Street to the intersection of Washington
24 Avenue, then running south along the centerline of Washington Avenue to
25 the intersection of West Houston Street, then east along the centerline
26 of West Houston Street, then at the intersection of the Avenue of the
27 Americas continuing east along the centerline of East Houston Street to
28 the easterly bank of the East River.
29 (n) Related members expense add back. (1) For purposes of this para-
30 graph: (i) "Related member" means a related person as defined in subpar-
31 agraph (c) of paragraph three of subsection (b) of section four hundred
32 sixty-five of the internal revenue code, except that "fifty percent"
33 shall be substituted for "ten percent".
34 (ii) "Effective rate of tax" means, as to any city, the maximum statu-
35 tory rate of tax imposed by the city on or measured by a related
36 member's net income multiplied by the apportionment percentage, if any,
37 applicable to the related member under the laws of said jurisdiction.
38 For purposes of this definition, the effective rate of tax as to any
39 city is zero where the related member's net income tax liability in said
40 city is reported on a combined or consolidated return including both the
41 taxpayer and the related member where the reported transactions between
42 the taxpayer and the related member are eliminated or offset. Also, for
43 purposes of this definition, when computing the effective rate of tax
44 for a city in which a related member's net income is eliminated or
45 offset by a credit or similar adjustment that is dependent upon the
46 related member either maintaining or managing intangible property or
47 collecting interest income in that city, the maximum statutory rate of
48 tax imposed by said city shall be decreased to reflect the statutory
49 rate of tax that applies to the related member as effectively reduced by
50 such credit or similar adjustment.
51 (iii) Royalty payments are payments directly connected to the acquisi-
52 tion, use, maintenance or management, ownership, sale, exchange, or any
53 other disposition of licenses, trademarks, copyrights, trade names,
54 trade dress, service marks, mask works, trade secrets, patents and any
55 other similar types of intangible assets as determined by the commis-
56 sioner of finance, and include amounts allowable as interest deductions
A. 6009 113
1 under section one hundred sixty-three of the internal revenue code to
2 the extent such amounts are directly or indirectly for, related to or in
3 connection with the acquisition, use, maintenance or management, owner-
4 ship, sale, exchange or disposition of such intangible assets.
5 (iv) A valid business purpose is one or more business purposes, other
6 than the avoidance or reduction of taxation, which alone or in combina-
7 tion constitute the primary motivation for some business activity or
8 transaction, which activity or transaction changes in a meaningful way,
9 apart from tax effects, the economic position of the taxpayer. The
10 economic position of the taxpayer includes an increase in the market
11 share of the taxpayer, or the entry by the taxpayer into new business
12 markets.
13 (2) Royalty expense add backs. (i) Except where a taxpayer is included
14 in a combined report pursuant to section 11-654.3 of this subchapter
15 with the applicable related member, for the purpose of computing entire
16 net income or other applicable taxable basis, a taxpayer must add back
17 royalty payments directly or indirectly paid, accrued, or incurred in
18 connection with one or more direct or indirect transactions with one or
19 more related members during the taxable year to the extent deductible in
20 calculating federal taxable income.
21 (ii) Exceptions. (A) The adjustment required in this paragraph shall
22 not apply to the portion of the royalty payment that the taxpayer estab-
23 lishes, by clear and convincing evidence of the type and in the form
24 specified by the commissioner of finance, meets all of the following
25 requirements: (I) the related member was subject to tax in this city or
26 another city within the United States or a foreign nation or some combi-
27 nation thereof on a tax base that included the royalty payment paid,
28 accrued or incurred by the taxpayer; (II) the related member during the
29 same taxable year directly or indirectly paid, accrued or incurred such
30 portion to a person that is not a related member; and (III) the trans-
31 action giving rise to the royalty payment between the taxpayer and the
32 related member was undertaken for a valid business purpose.
33 (B) The adjustment required in this paragraph shall not apply if the
34 taxpayer establishes, by clear and convincing evidence of the type and
35 in the form specified by the commissioner of finance, that: (I) the
36 related member was subject to tax on or measured by its net income in
37 this city or another city within the United States, or some combination
38 thereof; (II) the tax base for said tax included the royalty payment
39 paid, accrued or incurred by the taxpayer; and (III) the aggregate
40 effective rate of tax applied to the related member in those jurisdic-
41 tions is no less than eighty percent of the statutory rate of tax that
42 applied to the taxpayer under section 11-604 of this chapter for the
43 taxable year.
44 (C) The adjustment required in this paragraph shall not apply if the
45 taxpayer establishes, by clear and convincing evidence of the type and
46 in the form specified by the commissioner of finance, that: (I) the
47 royalty payment was paid, accrued or incurred to a related member organ-
48 ized under the laws of a country other than the United States; (II) the
49 related member's income from the transaction was subject to a comprehen-
50 sive income tax treaty between such country and the United States; (III)
51 the related member was subject to tax in a foreign nation on a tax base
52 that included the royalty payment paid, accrued or incurred by the
53 taxpayer; (IV) the related member's income from the transaction was
54 taxed in such country at an effective rate of tax at least equal to that
55 imposed by this city; and (V) the royalty payment was paid, accrued or
A. 6009 114
1 incurred pursuant to a transaction that was undertaken for a valid busi-
2 ness purpose and using terms that reflect an arm's length relationship.
3 (D) The adjustment required in this paragraph shall not apply if the
4 taxpayer and the commissioner of finance agree in writing to the appli-
5 cation or use of alternative adjustments or computations. The commis-
6 sioner of finance may, in his or her discretion, agree to the applica-
7 tion or use of alternative adjustments or computations when he or she
8 concludes that in the absence of such agreement the income of the
9 taxpayer would not be properly reflected.
10 (o) In the case of a taxpayer that is not an eligible farmer as
11 defined in subsection (n) of section six hundred six of the tax law, 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 with respect to a sport utility vehicle that is not a passenger
15 automobile as defined in paragraph five of subsection (d) of section two
16 hundred eighty-F of the internal revenue code, determined as if such
17 sport utility vehicle were a passenger automobile as defined in such
18 paragraph five. For purposes of subparagraph sixteen of paragraph (b)
19 and paragraph (k) of this subdivision, the terms qualified resurgence
20 zone property and qualified New York Liberty Zone property described in
21 paragraph two of subsection b of section fourteen hundred-L of the
22 internal revenue code shall not include any sport utility vehicle that
23 is not a passenger automobile as defined in paragraph five of subsection
24 (d) of section two hundred eighty-F of the internal revenue code.
25 (p) Upon the disposition of property to which paragraph (o) of this
26 subdivision applies, the amount of any gain or loss includible in entire
27 net income shall be adjusted to reflect the inclusions and exclusions
28 from entire net income pursuant to subparagraph thirteen of paragraph
29 (a) and subparagraph seventeen of paragraph (b) of this subdivision
30 attributable to such property.
31 (q) Subtraction modification for community banks and small thrifts.
32 (1) A taxpayer that is a qualified community bank as defined in subpara-
33 graph two of this paragraph or a small thrift institution as defined in
34 subparagraph two-a of this paragraph shall be allowed a deduction in
35 computing entire net income equal to the amount computed under subpara-
36 graph three of this paragraph.
37 (2) To be a qualified community bank, a taxpayer must satisfy the
38 following conditions:
39 (i) It is a bank or trust company organized under or subject to the
40 provisions of article three of the banking law or a comparable provision
41 of the laws of another state, or a national banking association.
42 (ii) The average value during the taxable year of the assets of the
43 taxpayer, or, if the taxpayer is included in a combined report, the
44 assets of the combined reporting group of the taxpayer under section
45 11-654.3 of this subchapter, must not exceed eight billion dollars.
46 (2-a) To be a small thrift institution, a taxpayer must satisfy the
47 following conditions:
48 (i) It is a savings bank, a savings and loan association, or other
49 savings institution chartered and supervised as such under federal or
50 state law.
51 (ii) The average value during the taxable year of the assets of the
52 taxpayer, or, if the taxpayer is included in a combined report, the
53 assets of the combined reporting group of the taxpayer under section
54 11-654.3 of this subchapter, must not exceed eight billion dollars.
55 (3)(i) The subtraction modification shall be computed as follows:
A. 6009 115
1 (A) Multiply the taxpayer's net interest income from loans during the
2 taxable year by a fraction, the numerator of which is the gross interest
3 income during the taxable year from qualifying loans and the denominator
4 of which is the gross interest income during the taxable year from all
5 loans.
6 (B) Multiply the amount determined in subclause (A) of this clause by
7 fifty percent. This product is the amount of the deduction allowed under
8 this paragraph.
9 (ii)(A) Net interest income from loans shall mean gross interest
10 income from loans less gross interest expense from loans. Gross interest
11 expense from loans is determined by multiplying gross interest expense
12 by a fraction, the numerator of which is the average total value of
13 loans owned by the thrift institution or community bank during the taxa-
14 ble year and the denominator of which is the average total assets of the
15 thrift institution or community bank during the taxable year.
16 (B) Measurement of assets. For purposes of this clause: (I) Total
17 assets are those assets that are properly reflected on a balance sheet,
18 computed in the same manner as is required by the banking regulator of
19 the taxpayers included in the combined return.
20 (II) Assets will only be included if the income or expenses of which
21 are properly reflected (or would have been properly reflected if not
22 fully depreciated or expensed, or depreciated or expensed to a nominal
23 amount) in the computation of the taxpayer's entire net income for the
24 taxable year. Assets will not include deferred tax assets and intangible
25 assets identified as "goodwill".
26 (III) Tangible real and personal property, such as buildings, land,
27 machinery, and equipment, shall be valued at cost. Leased assets will be
28 valued at the annual lease payment multiplied by eight. Intangible prop-
29 erty, such as loans and investments, shall be valued at book value
30 exclusive of reserves.
31 (IV) Average assets are computed using the assets measured on the
32 first day of the taxable year, and on the last day of each subsequent
33 quarter of the taxable year or month or day during the taxable year.
34 (iii) A qualifying loan is a loan that meets the conditions specified
35 in subclause (A) of this clause and subclause (B) of this clause.
36 (A) The loan is originated by the qualified community bank or small
37 thrift institution or purchased by the qualified community bank or small
38 thrift institution immediately after its origination in connection with
39 a commitment to purchase made by the bank or thrift institution prior to
40 the loan's origination.
41 (B) The loan is a small business loan or a residential mortgage loan,
42 the principal amount of which loan is five million dollars or less, and
43 either the borrower is located in this city as determined under section
44 11-654.2 of this subchapter and the loan is not secured by real proper-
45 ty, or the loan is secured by real property located in the city.
46 (C) A loan that meets the definition of a qualifying loan in a prior
47 taxable year (including years prior to the effective date of this para-
48 graph) remains a qualifying loan in taxable years during and after which
49 such loan is acquired by another corporation in the taxpayer's combined
50 reporting group under section 11-654.3 of this subchapter.
51 (r) A small thrift institution or a qualified community bank, as
52 defined in paragraph (q) of this subdivision, that maintained a captive
53 REIT on April first, two thousand fourteen shall utilize a REIT
54 subtraction equal to one hundred sixty percent of the dividends paid
55 deductions allowed to that captive REIT for the taxable year for federal
56 income tax purposes and shall not be allowed to utilize the subtraction
A. 6009 116
1 modification for community banks and small thrifts under paragraph (q)
2 of this subdivision or the subtraction modification for qualified resi-
3 dential loan portfolios under paragraph (s) of this subdivision in any
4 tax year in which such thrift institution or community bank maintains
5 that captive REIT.
6 (s) Subtraction modification for qualified residential loan portfo-
7 lios. (1)(i) A taxpayer that is either a thrift institution as defined
8 in subparagraph three of this paragraph or a qualified community bank as
9 defined in subparagraph two of paragraph (q) of this subdivision and
10 maintains a qualified residential loan portfolio as defined in subpara-
11 graph two of this paragraph shall be allowed as a deduction in computing
12 entire net income the amount, if any, by which (A) thirty-two percent of
13 its entire net income determined without regard to this paragraph
14 exceeds (B) the amounts deducted by the taxpayer pursuant to sections
15 166 and 585 of the internal revenue code less any amounts included in
16 federal taxable income as a result of a recovery of a loan.
17 (ii)(A) If the taxpayer is in a combined report under section 11-654.3
18 of this subchapter, this deduction will be computed on a combined basis.
19 In that instance, the entire net income of the combined reporting group
20 for purposes of this paragraph shall be multiplied by a fraction, the
21 numerator of which is the average total assets of all the thrift insti-
22 tutions and qualified community banks included in the combined report
23 and the denominator of which is the average total assets of all the
24 corporations included in the combined report.
25 (B) Measurement of assets. (I) Total assets are those assets that are
26 properly reflected on a balance sheet, computed in the same manner as is
27 required by the banking regulator of the taxpayers included in the
28 combined return.
29 (II) Assets will only be included if the income or expenses of which
30 are properly reflected (or would have been properly reflected if not
31 fully depreciated or expensed, or depreciated or expensed to a nominal
32 amount) in the computation of the combined group's entire net income for
33 the taxable year. Assets will not include deferred tax assets and intan-
34 gible assets identified as "goodwill".
35 (III) Tangible real and personal property, such as buildings, land,
36 machinery, and equipment shall be valued at cost. Leased assets will be
37 valued at the annual lease payment multiplied by eight. Intangible prop-
38 erty, such as loans and investments, shall be valued at book value
39 exclusive of reserves.
40 (IV) Intercorporate stockholdings and bills, notes and accounts
41 receivable, and other intercorporate indebtedness between the corpo-
42 rations included in the combined report shall be eliminated.
43 (V) Average assets are computed using the assets measured on the first
44 day of the taxable year, and on the last day of each subsequent quarter
45 of the taxable year or month or day during the taxable year.
46 (2) Qualified residential loan portfolio. (i) A taxpayer maintains a
47 qualified residential loan portfolio if at least sixty percent of the
48 amount of the total assets at the close of the taxable year of the
49 thrift institution or qualified community bank consists of the assets
50 described in subclauses (A) through (L) of this clause, with the appli-
51 cation of the rule in the last undesignated subclause of this clause. If
52 the taxpayer is a member of a combined group, the determination of
53 whether there is a qualified residential loan portfolio will be made by
54 aggregating the assets of the thrift institutions and qualified communi-
55 ty banks that are members of the combined group. Assets: (A) cash,
56 which includes cash and cash equivalents including cash items in the
A. 6009 117
1 process of collection, deposits with other financial institutions,
2 including corporate credit unions, balances with federal reserve banks
3 and federal home loan banks, federal funds sold, and cash and cash
4 equivalents on hand. Cash shall not include any balances serving as
5 collateral for securities lending transactions; (B) obligations of the
6 United States or of a state or political subdivision thereof, and stock
7 or obligations of a corporation which is an instrumentality or a govern-
8 ment sponsored enterprise of the United States or of a state or poli-
9 tical subdivision thereof; (C) loans secured by a deposit or share of a
10 member; (D) loans secured by an interest in real property which is (or,
11 from the proceeds of the loan, will become) residential real property or
12 real property used primarily for church purposes, loans made for the
13 improvement of residential real property or real property used primarily
14 for church purposes, provided that for purposes of this subclause, resi-
15 dential real property shall include single or multi-family dwellings,
16 facilities in residential developments dedicated to public use or prop-
17 erty used on a nonprofit basis for residents, and mobile homes not used
18 on a transient basis; (E) property acquired through the liquidation of
19 defaulted loans described in subclause (D) of this clause; (F) any regu-
20 lar or residual interest in a REMIC, as such term is defined in section
21 860D of the internal revenue code, but only in the proportion which the
22 assets of such REMIC consist of property described in any of the preced-
23 ing subclauses of this clause, except that if ninety-five percent or
24 more of the assets of such REMIC are assets described in subclauses (A)
25 through (E) of this clause, the entire interest in the REMIC shall qual-
26 ify; (G) any mortgage-backed security which represents ownership of a
27 fractional undivided interest in a trust, the assets of which consist
28 primarily of mortgage loans, provided that the real property which
29 serves as security for the loans is (or from the proceeds of the loan,
30 will become) the type of property described in subclause (D) of this
31 clause and any collateralized mortgage obligation, the security for
32 which consists primarily of mortgage loans that maintain as security the
33 type of property described in subclause (D) of this clause; (H) certif-
34 icates of deposit in, or obligations of, a corporation organized under a
35 state law which specifically authorizes such corporation to insure the
36 deposits or share accounts of member associations; (I) loans secured by
37 an interest in educational, health, or welfare institutions or facili-
38 ties, including structures designed or used primarily for residential
39 purposes for students, residents, and persons undercare, employees, or
40 members of the staff of such institutions or facilities; (J) loans made
41 for the payment of expenses of college or university education or voca-
42 tional training; (K) property used by the taxpayer in support of busi-
43 ness which consists principally of acquiring the savings of the public
44 and investing in loans; and (L) loans for which the taxpayer is the
45 creditor and which are wholly secured by loans described in subclause
46 (D) of this clause.
47 The value of accrued interest receivable and any loss-sharing commit-
48 ment or other loan guaranty by a governmental agency will be considered
49 part of the basis in the loans to which the accrued interest or loss
50 protection applies.
51 (ii) At the election of the taxpayer, the percentage specified in
52 clause (i) of this subparagraph shall be applied on the basis of the
53 average assets outstanding during the taxable year, in lieu of the close
54 of the taxable year. The taxpayer can elect to compute an average using
55 the assets measured on the first day of the taxable year and on the last
A. 6009 118
1 day of each subsequent quarter, or month or day during the taxable year.
2 This election may be made annually.
3 (iii) For purposes of subclause (D) of clause (i) of this subpara-
4 graph, if a multifamily structure securing a loan is used in part for
5 nonresidential use purposes, the entire loan is deemed a residential
6 real property loan if the planned residential use exceeds eighty percent
7 of the property's planned use (measured, at the taxpayer's election, by
8 using square footage or gross rental revenue, and determined as of the
9 time the loan is made).
10 (iv) For purposes of subclause (D) of clause (i) of this subparagraph,
11 loans made to finance the acquisition or development of land shall be
12 deemed to be loans secured by an interest in residential real property
13 if there is a reasonable assurance that the property will become resi-
14 dential real property within a period of three years from the date of
15 acquisition of such land; but this sentence shall not apply for any
16 taxable year unless, within such three year period, such land becomes
17 residential real property. For purposes of determining whether any
18 interest in a REMIC qualifies under subclause (F) of clause (i) of this
19 subparagraph, any regular interest in another REMIC held by such REMIC
20 shall be treated as a loan described in a preceding subclause under
21 principles similar to the principle of such subclause (F), except that
22 if such REMICs are part of a tiered structure, they shall be treated as
23 one REMIC for purposes of such subclause (F).
24 (3) For purposes of this paragraph, a "thrift institution" is a
25 savings bank, a savings and loan association, or other savings institu-
26 tion chartered and supervised as such under federal or state law.
27 9. (a) The term "calendar year" means a period of twelve calendar
28 months (or any shorter period beginning on the date the taxpayer becomes
29 subject to the tax imposed by this subchapter) ending on the thirty-
30 first day of December, provided the taxpayer keeps its books on the
31 basis of such period or on the basis of any period ending on any day
32 other than the last day of a calendar month, or provided the taxpayer
33 does not keep books, and includes, in case the taxpayer changes the
34 period on the basis of which it keeps its books from a fiscal year to a
35 calendar year, the period from the close of its last old fiscal year up
36 to and including the following December thirty-first.
37 (b) The term "fiscal year" means a period of twelve calendar months
38 (or any shorter period beginning on the date the taxpayer becomes
39 subject to the tax imposed by this subchapter) ending on the last day of
40 any month other than December, provided the taxpayer keeps its books on
41 the basis of such period, and includes, in case the taxpayer changes the
42 period on the basis of which it keeps its books from a calendar year to
43 a fiscal year or from one fiscal year to another fiscal year, the period
44 from the close of its last old calendar or fiscal year up to the date
45 designated as the close of its new fiscal year.
46 10. The term "tangible personal property" means corporeal personal
47 property, such as machinery, tools, implements, goods, wares and
48 merchandise, and does not mean money, deposits in banks, shares of
49 stock, bonds, notes, credits or evidences of an interest property and
50 evidences of debt.
51 11. The term "internal revenue code" means, unless otherwise specif-
52 ically stated in this subchapter, the internal revenue code of 1986, as
53 amended.
54 12. The term "combinable captive insurance company" means an entity
55 that is treated as an association taxable as a corporation under the
56 internal revenue code: (a) more than fifty percent of the voting stock
A. 6009 119
1 of which is owned or controlled, directly or indirectly, by a single
2 entity that is treated as an association taxable as a corporation under
3 the internal revenue code and not exempt from federal income tax;
4 (b) that is licensed as a captive insurance company under the laws of
5 this state or another jurisdiction;
6 (c) whose business includes providing, directly and indirectly, insur-
7 ance or reinsurance covering the risks of its parent and/or members of
8 its affiliated group; and
9 (d) fifty percent or less of whose gross receipts for the taxable year
10 consist of premiums from arrangements that constitute insurance for
11 federal income tax purposes.
12 For purposes of this subdivision, "affiliated group" has the same
13 meaning as that term is given in section fifteen hundred four of the
14 internal revenue code, except that the term "common parent corporation"
15 in that section is deemed to mean any person, as defined in section
16 seven thousand seven hundred one of the internal revenue code and refer-
17 ences to "at least eighty percent" in section fifteen hundred four of
18 the internal revenue code are to be read as "fifty percent or more;"
19 section fifteen hundred four of the internal revenue code is to be read
20 without regard to the exclusions provided for in subsection (b) of that
21 section; "premiums" has the same meaning as that term is given in para-
22 graph one of subdivision (c) of section fifteen hundred ten of the tax
23 law, except that it includes consideration for annuity contracts and
24 excludes any part of the consideration for insurance, reinsurance or
25 annuity contracts that do not provide bona fide insurance, reinsurance
26 or annuity benefits; and "gross receipts" includes the amounts included
27 in gross receipts for purposes of paragraph fifteen of subsection (c) of
28 section five hundred one of the internal revenue code, except that those
29 amounts also include all premiums as defined in this subdivision.
30 13. The term "partnership" includes a syndicate, group, pool, joint
31 venture, or other unincorporated organization, through or by means of
32 which any business, financial operation, or venture is carried on, and
33 which is not a corporation as defined by subdivision one of this
34 section, or a trust or estate that is separate from its owner under part
35 one of subchapter J of chapter one of subtitle A of the internal revenue
36 code; and the term "partner" includes a member in such syndicate, group,
37 pool, joint venture, or organization.
38 § 11-653 Imposition of tax; exemptions. 1. (a) For the privilege of
39 doing business, or of employing capital, or of owning or leasing proper-
40 ty in the city in a corporate or organized capacity, or of maintaining
41 an office in the city, or of deriving receipts from activity in the
42 city, for all or any part of each of its fiscal or calendar years, every
43 domestic or foreign corporation, except corporations specified in subdi-
44 vision four of this section, shall annually pay a tax, upon the basis of
45 its business income, or upon such other basis as may be applicable as
46 hereinafter provided, for such fiscal or calendar year or part thereof,
47 on a report which shall be filed, except as hereinafter provided, on or
48 before the fifteenth day of March next succeeding the close of each such
49 year, or, in the case of a taxpayer which reports on the basis of a
50 fiscal year, within two and one-half months after the close of such
51 fiscal year, and shall be paid as hereinafter provided.
52 (b) A corporation is deriving receipts from activity in the city if it
53 has receipts within the city of one million dollars or more in the taxa-
54 ble year. For purposes of this section, the term "receipts" means the
55 receipts that are subject to the apportionment rules set forth in
56 section 11-654.2 of this subchapter, and the term "receipts within the
A. 6009 120
1 city" means the receipts included in the numerator of the receipts
2 percentage determined under section 11-654.2 of this subchapter. For
3 purposes of this paragraph, receipts from processing credit card trans-
4 actions for merchants include merchant discount fees received by the
5 corporation.
6 (c) A corporation is doing business in the city if (1) it has issued
7 credit cards to one thousand or more customers who have a mailing
8 address within the city as of the last day of its taxable year, (2) it
9 has merchant customer contracts with merchants and the total number of
10 locations covered by those contracts equals one thousand or more
11 locations in the city to whom the corporation remitted payments for
12 credit card transactions during the taxable year, or (3) the sum of the
13 number of customers described in subparagraph one of this paragraph plus
14 the number of locations covered by its contracts described in subpara-
15 graph two of this paragraph equals one thousand or more. As used in this
16 subdivision, the term "credit card" includes bank, credit, travel and
17 entertainment cards.
18 (d)(1) A corporation with less than one million dollars but at least
19 ten thousand dollars of receipts within the city in a taxable year that
20 is part of a unitary group under section 11-654.3 of this subchapter is
21 deriving receipts from activity in the city if the receipts within the
22 city of the members of the unitary group that have at least ten thousand
23 dollars of receipts within the city in the aggregate meet the threshold
24 set forth in paragraph (b) of this subdivision.
25 (2) A corporation that does not meet any of the thresholds set forth
26 in paragraph (c) of this subdivision but has at least ten customers, or
27 locations, or customers and locations, as described in paragraph (c) of
28 this subdivision, and is part of a unitary group that meets the owner-
29 ship test under section 11-654.3 of this subchapter is doing business in
30 the city if the number of customers, locations, or customers and
31 locations, within the city of the members of the unitary group that have
32 at least ten customers, locations, or customers and locations, within
33 the city in the aggregate meets any of the thresholds set forth in para-
34 graph (c) of this subdivision.
35 (e) At the end of each year, the commissioner of finance shall review
36 the cumulative percentage change in the consumer price index. The
37 commissioner of finance shall adjust the receipt thresholds set forth in
38 this subdivision if the consumer price index has changed by ten percent
39 or more since January first, two thousand fifteen, or since the date
40 that the thresholds were last adjusted under this subdivision. The
41 thresholds shall be adjusted to reflect that cumulative percentage
42 change in the consumer price index. The adjusted thresholds shall be
43 rounded to the nearest one thousand dollars. As used in this paragraph,
44 "consumer price index" means the consumer price index for all urban
45 consumers (CPI-U) available from the bureau of labor statistics of the
46 United States department of labor. Any adjustment shall apply to tax
47 periods that begin after the adjustment is made.
48 (f) If a partnership is doing business, employing capital, owning or
49 leasing property in the city, maintaining an office in the city, or
50 deriving receipts from activity in the city, any corporation that is a
51 partner in such partnership shall be subject to tax under this subchap-
52 ter as described in the regulations of the commissioner of finance.
53 2. A corporation shall not be deemed to be doing business, employing
54 capital, owning or leasing property, or maintaining an office in the
55 city, or deriving receipts from activity in the city, for the purposes
56 of this subchapter, by reason of
A. 6009 121
1 (a) the maintenance of cash balances with banks or trust companies in
2 the city, or
3 (b) the ownership of shares of stock or securities kept in the city,
4 if kept in a safe deposit box, safe, vault or other receptacle rented
5 for the purpose, or if pledged as collateral security, or if deposited
6 with one or more banks or trust companies, or brokers who are members of
7 a recognized security exchange, in safekeeping or custody accounts, or
8 (c) the taking of any action by any such bank or trust company or
9 broker, which is incidental to the rendering of safekeeping or custodian
10 service to such corporation, or
11 (d) the maintenance of an office in the city by one or more officers
12 or directors of the corporation who are not employees of the corporation
13 if the corporation otherwise is not doing business in the city, and does
14 not employ capital or own or lease property in the city, or
15 (e) the keeping of books or records of a corporation in the city if
16 such books or records are not kept by employees of such corporation and
17 such corporation does not otherwise do business, employ capital, own or
18 lease property or maintain an office in the city, or
19 (f) any combination of the foregoing activities.
20 2-a. An alien corporation shall not be deemed to be doing business,
21 employing capital, owning or leasing property, or maintaining an office
22 in the city, for the purposes of this subchapter, if its activities in
23 the city are limited solely to
24 (a) investing or trading in stocks and securities for its own account
25 within the meaning of clause (ii) of subparagraph (A) of paragraph (2)
26 of subsection (b) of section eight hundred sixty-four of the internal
27 revenue code, or
28 (b) investing or trading in commodities for its own account within the
29 meaning of clause (ii) of subparagraph (B) of paragraph (2) of
30 subsection (b) of section eight hundred sixty-four of the internal
31 revenue code, or
32 (c) any combination of activities described in paragraphs (a) and (b)
33 of this subdivision.
34 An alien corporation that under any provision of the internal revenue
35 code is not treated as a "domestic corporation" as defined in section
36 seven thousand seven hundred one of such code and has no effectively
37 connected income for the taxable year pursuant to clause three of the
38 opening paragraph of subdivision eight of section 11-652 of this
39 subchapter shall not be subject to tax under this subchapter for that
40 taxable year. For purposes of this subchapter, an alien corporation is a
41 corporation organized under the laws of a country, or any political
42 subdivision thereof, other than the United States, or organized under
43 the laws of a possession, territory or commonwealth of the United
44 States.
45 3. Any receiver, referee, trustee, assignee or other fiduciary, or any
46 officer or agent appointed by any court, who conducts the business of
47 any corporation, shall be subject to the tax imposed by this subchapter
48 in the same manner and to the same extent as if the business were
49 conducted by the agents or officers of such corporation. A dissolved
50 corporation which continues to conduct business shall also be subject to
51 the tax imposed by this subchapter.
52 4. (a) Corporations subject to tax under chapter eleven of this title,
53 any trust company organized under a law of this state all of the stock
54 of which is owned by not less than twenty savings banks organized under
55 a law of this state, housing companies organized and operating pursuant
56 to the provisions of article two of the private housing finance law,
A. 6009 122
1 housing development fund companies organized pursuant to the provisions
2 of article eleven of the private housing finance law, corporations
3 described in section three of the tax law, a corporation principally
4 engaged in the operation of marine vessels whose activities in the city
5 are limited exclusively to the use of property in interstate or foreign
6 commerce, provided, however, such a corporation will not be subject to
7 tax under this subchapter solely because it maintains an office in the
8 city, or employs capital in the city, in connection with such use of
9 property, a corporation principally engaged in the conduct of a ferry
10 business and operating between any of the boroughs of the city under a
11 lease granted by the city and a corporation principally engaged in the
12 conduct of an aviation, steamboat, ferry or navigation business, or two
13 or more of such businesses, all of the capital stock of which is owned
14 by a municipal corporation of this state, shall not be subject to tax
15 under this subchapter; provided, however, that any corporation, other
16 than (1) a utility corporation subject to the supervision of the state
17 department of public service, and (2) for taxable years beginning on or
18 after August first, two thousand two, a utility as defined in subdivi-
19 sion six of section 11-1101 of this title, which is subject to tax under
20 chapter eleven of this title as a vendor of utility services shall be
21 subject to tax under this subchapter, but in computing the tax imposed
22 by this section pursuant to the provisions of clause (i) of subparagraph
23 one of paragraph (e) of subdivision one of section 11-654 of this
24 subchapter, business income allocated to the city pursuant to paragraph
25 (a) of subdivision three of such section shall be reduced by the
26 percentage which such corporation's gross operating income subject to
27 tax under chapter eleven of this title is of its gross operating income.
28 (b) The term "gross operating income", when used in paragraph (a) of
29 this subdivision, means receipts received in or by reason of any trans-
30 action had and consummated in the city, including cash, credits and
31 property of any kind or nature (whether or not such transaction is made
32 for profit), without any deduction therefrom on account of the cost of
33 the property sold, the cost of materials used, labor or other services,
34 delivery costs or any other costs whatsoever, interest or discount paid
35 or any other expenses whatsoever.
36 (c) If it shall appear to the commissioner of finance that the appli-
37 cation of the proviso of paragraph (a) of this subdivision, does not
38 fairly and equitably reflect the portion of the taxpayer's business
39 income allocable to the city which is attributable to its city activ-
40 ities which are not taxable under subchapter two of chapter eleven of
41 this title, the commissioner of finance may prescribe other means or
42 methods of determining such portion, including the use of the books and
43 records of the taxpayer, if the commissioner of finance finds that such
44 means or methods used in keeping them fairly and equitably reflect such
45 portion.
46 5. Intentionally omitted.
47 6. Intentionally omitted.
48 7. For any taxable year of a real estate investment trust, as defined
49 in section eight hundred fifty-six of the internal revenue code, in
50 which such trust is subject to federal income taxation under section
51 eight hundred fifty-seven of such code, such trust shall be subject to a
52 tax computed under either clause (i) of subparagraph one of paragraph
53 (e) subdivision one of section 11-654 of this subchapter, or clause
54 (iv), whichever is greater. In the case of such a real estate investment
55 trust, including a captive REIT as defined in section 11-601 of this
56 chapter, the term "entire net income" means "real estate investment
A. 6009 123
1 trust taxable income" as defined in paragraph two of subdivision (b) of
2 section eight hundred fifty-seven (as modified by section eight hundred
3 fifty-eight) of the internal revenue code plus the amount taxable under
4 paragraph three of subdivision (b) of section eight hundred fifty-seven
5 of such code, subject to the modifications required by subdivision eight
6 of section 11-652 of this subchapter including the modifications
7 required by paragraphs (d) and (e) of subdivision three of section
8 11-654 of this subchapter.
9 8. For any taxable year of a regulated investment company, as defined
10 in section eight hundred fifty-one of the internal revenue code, in
11 which such company is subject to federal income taxation under section
12 eight hundred fifty-two of such code, such company shall be subject to a
13 tax computed under either clause one or four of subparagraph (a) of
14 paragraph E of subdivision one of section 11-654 of this subchapter,
15 whichever is greater. In the case of such a regulated investment compa-
16 ny, including a captive RIC as defined in section 11-601 of this chap-
17 ter, the term "entire net income" used in subdivision one of this
18 section means "investment company taxable income" as defined in para-
19 graph two of subdivision (b) of section eight hundred fifty-two, as
20 modified by section eight hundred fifty-five, of the internal revenue
21 code plus the amount taxable under paragraph three of subdivision (b) of
22 section eight hundred fifty-two of such code subject to the modifica-
23 tions required by subdivision eight of section 11-652 of this subchap-
24 ter, including the modification required by paragraphs (d) and (e) of
25 subdivision three of section 11-654 of this subchapter.
26 9. An organization described in paragraph two or twenty-five of subdi-
27 vision (c) of section five hundred one of the internal revenue code
28 shall be exempt from all taxes imposed by this subchapter.
29 § 11-654 Computation of tax. 1. (a) Intentionally omitted.
30 (b) Intentionally omitted.
31 (c) Intentionally omitted.
32 (d) Intentionally omitted.
33 (e) The tax imposed by subdivision one of section 11-653 of this
34 subchapter shall be, in the case of each taxpayer:
35 (1) whichever of the following amounts is the greatest:
36 (i) an amount computed at the rate of eight and eighty-five one-hun-
37 dredths per centum, of its business income or the portion of such busi-
38 ness income allocated within the city as hereinafter provided, subject
39 to the application of paragraphs (j) and (k) of this subdivision and any
40 modification required by paragraphs (d) and (e) of subdivision three of
41 this section,
42 (ii) an amount computed by multiplying its total business capital, or
43 the portion thereof allocated within the city, as hereinafter provided,
44 by fifteen one-hundredths per centum and subtracting ten thousand
45 dollars from the total, except that in the case of a cooperative housing
46 corporation as defined in the internal revenue code, such amount shall
47 be computed by multiplying its total business capital, or the portion
48 thereof allocated within the city, as hereinafter provided, by four
49 one-hundredths per centum and subtracting ten thousand dollars from the
50 total, provided that if such amount is less than zero it shall be deemed
51 to be zero, and provided further that in no event shall the amount of
52 tax computed on the taxpayer's business capital, or the portion of ther-
53 eof allocated within the city, exceed ten million dollars, or
54 (iii) Intentionally omitted
55 (iv) If New York city receipts are:Fixed dollar minimum
A. 6009 124
1 tax is:
2 Not more than $100,000$25
3 More than $100,000 but not over $250,000$75
4 More than $250,000 but not over $500,000$175
5 More than $500,000 but not over $1,000,000$500
6 More than $1,000,000 but not over $5,000,000$1,500
7 More than $5,000,000 but not over $25,000,000$3,500
8 More than $25,000,000 but not over $50,000,000$5,000
9 More than $50,000,000 but not over $100,000,000$10,000
10 More than $100,000,000 but not over $250,000,000$20,000
11 More than $250,000,000 but not over $500,000,000$50,000
12 More than $500,000,000 but not over $1,000,000,000$100,000
13 Over $1,000,000,000$200,000
14 For purposes of this clause, New York city receipts are the receipts
15 computed in accordance with section 11-654.2 of this subchapter for the
16 taxable year. If the taxable year is less than twelve months, the amount
17 prescribed by this clause shall be reduced by twenty-five percent if the
18 period for which the taxpayer is subject to tax is more than six months
19 but not more than nine months and by fifty percent if the period for
20 which the taxpayer is subject to tax is not more than six months. If the
21 taxable year is less than twelve months, the amount of New York city
22 receipts for purposes of this clause is determined by dividing the
23 amount of the receipts for the taxable year by the number of months in
24 the taxable year and multiplying the result by twelve.
25 (f) Intentionally omitted.
26 (g) Intentionally omitted.
27 (h) Intentionally omitted.
28 (i) Intentionally omitted.
29 (j) (1) If the amount of business income computed without taking into
30 account the prior net operation loss conversion subtraction provided for
31 in subdivision two of section 11-654.1 of this subchapter allocated
32 within the city as hereinafter provided is less than one million
33 dollars, the amount computed in clause (i) of subparagraph one of para-
34 graph (e) of this subdivision shall be at the rate of six and five-
35 tenths per centum of the amount of business income allocated within the
36 city as hereinafter provided, subject to any modification required by
37 paragraphs (d) and (e) of subdivision three of this section;
38 (2) Subject to subparagraph three of this paragraph, if the amount of
39 business income computed without taking into account the prior net oper-
40 ating loss conversion subtraction provided for in subdivision two of
41 section 11-654.1 of this subchapter allocated within the city as herein-
42 after provided is one million dollars or greater but less than one
43 million dollars but less than one million five hundred thousand dollars,
44 the amount computed in clause (i) of subparagraph one of paragraph (e)
45 of this subdivision shall be at the rate of (i) six and five-tenths per
46 centum, plus (ii) two and thirty-five one-hundredths per centum multi-
47 plied by a fraction the numerator of which is allocated business income
48 computed without taking into account the prior net operating loss
49 conversion subtraction provided for in subdivision two of section
50 11-654.1 of this subchapter less one million dollars and the denominator
51 of which is five hundred thousand dollars, of the amount of business
52 income allocated within the city as hereinafter provided, subject to any
53 modification required by paragraphs (d) and (e) of subdivision three of
54 this section;
55 (3) Provided, however, notwithstanding anything to the contrary, if
56 the amount of unallocated business income computed without taking into
A. 6009 125
1 account the prior net operating loss conversion subtraction provided for
2 in subdivision two of section 11-654.1 of this subchapter is two million
3 dollars or greater but less than three million dollars, the rate of tax
4 provided for in this paragraph shall not be less than (i) six and five-
5 tenths per centum, plus (ii) two and thirty-five one-hundredths per
6 centum multiplied by a fraction the numerator of which is unallocated
7 business income computed without taking into account the prior net oper-
8 ating loss conversion subtraction provided for in subdivision two of
9 section 11-654.1 of this subchapter less two million dollars and the
10 denominator of which is one million dollars, and provided, however,
11 notwithstanding anything to the contrary, if the amount of unallocated
12 business income computed without taking into account the prior net oper-
13 ating loss conversion subtraction provided for in subdivision two of
14 section 11-654.1 of this subchapter is three million dollars or greater,
15 the rate of tax shall be eight and eighty-five one hundredths percentum.
16 (k)(1) For qualified New York city manufacturing corporations as
17 defined in subparagraph four of this paragraph, if the amount of busi-
18 ness income computed without taking into account the prior net operating
19 loss conversion subtraction provided for in subdivision two of section
20 11-654.1 of this subchapter allocated within the city as hereinafter
21 provided is less than ten million dollars, the amount computed in clause
22 (i) of subparagraph one of paragraph (e) of this subdivision shall be at
23 the rate of four and four hundred twenty-five one thousandths per
24 centum, of its business income allocated within the city as hereinafter
25 provided, subject to any modification required by paragraphs (d) and (e)
26 of subdivision three of this section;
27 (2) Subject to subparagraph three of this paragraph for qualified New
28 York city manufacturing corporations as defined in subparagraph four of
29 this paragraph, if the amount of business income computed without taking
30 into account the prior net operating loss conversion subtraction
31 provided for in subdivision two of section 11-654.1 of this subchapter
32 allocated within the city as hereinafter provided is ten million dollars
33 or greater but less than twenty million dollars, the amount computed in
34 clause (i) of subparagraph one of paragraph (e) of this subdivision
35 shall be at the rate of (i) four and four hundred twenty-five one-thous-
36 andths per centum, plus (ii) four and four hundred twenty-five one-
37 thousandths per centum multiplied by a fraction the numerator of which
38 is allocated business income computed without taking into account the
39 prior net operating loss conversion subtraction provided for in subdivi-
40 sion two of section 11-654.1 of this subchapter less ten million dollars
41 and the denominator of which is ten million dollars, of its business
42 income or the portion of such business income allocated within the city
43 as hereinafter provided, subject to any modification required by para-
44 graphs (d) and (e) of subdivision three of this section;
45 (3) Notwithstanding anything to the contrary, if the amount of unallo-
46 cated business income computed without taking into account the prior net
47 operating loss conversion subtraction provided for in subdivision two of
48 section 11-654.1 of this subchapter is twenty million dollars or greater
49 but less than forty million dollars, the rate of tax provided for in
50 this paragraph shall not be less than (i) four and four hundred twenty-
51 five one thousandths percentum, plus (ii) four and four hundred twenty-
52 five one thousandths percentum multiplied by a fraction the numerator of
53 which is unallocated business income computed without taking into
54 account the prior net operating loss conversion subtraction provided for
55 in subdivision two of section 11-654.1 of this subchapter less twenty
56 million dollars and the denominator of which is twenty million dollars,
A. 6009 126
1 and provided, however, notwithstanding anything to the contrary, if the
2 amount of unallocated business income computed without taking into
3 account the prior net operating loss conversion subtraction provided for
4 in subdivision two of section 11-654.1 of this subchapter is forty
5 million dollars or greater, the rate of tax shall be eight and eighty-
6 five one-hundredths per centum.
7 (4)(i) As used in this subparagraph, the term "manufacturing corpo-
8 ration" means a corporation principally engaged in the manufacturing and
9 sale thereof of tangible personal property; and the term "manufacturing"
10 includes the process (including the assembly process) (A) of working raw
11 materials into wares suitable for use or (B) which gives new shapes, new
12 qualities or new combinations to matter which already has gone through
13 some artificial process, by the use of machinery, tools, appliances and
14 other similar equipment. Moreover, in the case of a combined report, a
15 combined group shall be considered a "manufacturing corporation" for
16 purposes of this subparagraph only if the combined group during the
17 taxable year is principally engaged in the activities set forth in this
18 paragraph, or any combination thereof. A taxpayer or, in the case of a
19 combined report, a combined group, shall be "principally engaged" in
20 activities described above if, during the taxable year, more than fifty
21 percent of the gross receipts of the taxpayer or combined group, respec-
22 tively, are derived from receipts from the sale of goods produced by
23 such activities. In computing a combined group's gross receipts, inter-
24 corporate receipts shall be eliminated.
25 (ii) A "qualified New York city manufacturing corporation" is a manu-
26 facturing corporation that has property in the city which is described
27 in subparagraph five of this paragraph and either (A) the adjusted basis
28 of such property for federal income tax purposes at the close of the
29 taxable year is at least one million dollars or (B) more than fifty
30 percentum of its real and personal property is located in the city.
31 (5) For purposes of subclause (A) of clause (ii) of subparagraph four
32 of this paragraph, property includes tangible personal property and
33 other tangible property, including buildings and structural components
34 of buildings, which are: depreciable pursuant to section one hundred
35 sixty-seven of the internal revenue code, have a useful life of four
36 years or more, are acquired by purchase as defined in subsection (d) of
37 section one hundred seventy-nine of the internal revenue code, have a
38 situs in this city and are principally used by the taxpayer in the
39 production of goods by manufacturing. Property used in the production of
40 goods shall include machinery, equipment or other tangible property
41 which is principally used in the repair and service of other machinery,
42 equipment or other tangible property used principally in the production
43 of goods and shall include all facilities used in the production opera-
44 tion, including storage of material to be used in production and of the
45 products that are produced.
46 2. The amount of business capital shall be determined by taking the
47 average value of the gross assets included therein (less liabilities
48 deductible therefrom pursuant to the provisions of subdivisions four and
49 six of section 11-652 of this subchapter), and, if the period covered by
50 the report is other than a period of twelve calendar months, by multi-
51 plying such value by the number of calendar months or major parts there-
52 of included in such period, and dividing the product thus obtained by
53 twelve. For purposes of this subdivision, real property and marketable
54 securities shall be valued at fair market value and the value of
55 personal property other than marketable securities shall be the value
A. 6009 127
1 thereof shown on the books and records of the taxpayer in accordance
2 with generally accepted accounting principles.
3 3. The portion of the business income of a taxpayer to be allocated to
4 the city shall be determined as follows:
5 (a) multiply its business income by a business allocation percentage
6 to be determined by:
7 (1) ascertaining the percentage which the average value of the taxpay-
8 er's real and tangible personal property, whether owned or rented to it,
9 within the city during the period covered by its report bears to the
10 average value of all the taxpayer's real and tangible personal property,
11 whether owned or rented to it, wherever situated during such period. For
12 the purpose of this subparagraph, the term "value of the taxpayer's real
13 and tangible personal property" shall mean the adjusted bases of such
14 properties for federal income tax purposes (except that in the case of
15 rented property such value shall mean the product of (i) eight and (ii)
16 the gross rents payable for the rental of such property during the taxa-
17 ble year); provided, however, that the taxpayer may make a one-time,
18 revocable election, pursuant to regulations promulgated by the commis-
19 sioner of finance to use fair market value as the value of all of its
20 real and tangible personal property, provided that such election is made
21 on or before the due date for filing a report under section 11-655 of
22 this subchapter for the taxpayer's first taxable year commencing on or
23 after January first, two thousand fifteen and provided that such
24 election shall not apply to any taxable year with respect to which the
25 taxpayer is included on a combined report unless each of the taxpayers
26 included on such report has made such an election which remains in
27 effect for such year or to any taxpayer that was subject to tax under
28 subchapter two of this chapter and did not have an election in effect
29 under subparagraph one of paragraph (a) of subdivision three of section
30 11-604 of this chapter on December thirty-first, two thousand fourteen;
31 (2) ascertaining the percentage determined under section 11-654.2 of
32 this subchapter;
33 (3) ascertaining the percentage of the total wages, salaries and other
34 personal service compensation, similarly computed, during such period of
35 employees within the city, except general executive officers, to the
36 total wages, salaries and other personal service compensation, similarly
37 computed, during such period of all the taxpayer's employees within and
38 without the city, except general executive officers; and
39 (4) adding together the percentages so determined and dividing the
40 result by the number of percentages.
41 (5) Intentionally omitted.
42 (6) Intentionally omitted.
43 (7) Intentionally omitted.
44 (8) Intentionally omitted.
45 (9) Intentionally omitted.
46 (10) Notwithstanding subparagraphs one through four of this paragraph,
47 the business allocation percentage, to the extent that it is computed by
48 reference to the percentages determined under subparagraphs one, two and
49 three of this paragraph, shall be computed in the manner set forth in
50 this subparagraph.
51 (i) Intentionally omitted.
52 (ii) Intentionally omitted.
53 (iii) Intentionally omitted.
54 (iv) Intentionally omitted.
55 (v) Intentionally omitted.
56 (vi) Intentionally omitted.
A. 6009 128
1 (vii) For taxable years beginning in two thousand fifteen, the busi-
2 ness allocation percentage shall be determined by adding together the
3 following percentages:
4 (A) the product of ten percent and the percentage determined under
5 subparagraph one of this paragraph;
6 (B) the product of eighty percent and the percentage determined under
7 subparagraph two of this paragraph; and
8 (C) the product of ten percent and the percentage determined under
9 subparagraph three of this paragraph.
10 (viii) For taxable years beginning in two thousand sixteen, the busi-
11 ness allocation percentage shall be determined by adding together the
12 following percentages:
13 (A) the product of six and one-half percent and the percentage deter-
14 mined under subparagraph one of this paragraph;
15 (B) the product of eighty-seven percent and the percentage determined
16 under subparagraph two of this paragraph; and
17 (C) the product of six and one-half percent and the percentage deter-
18 mined under subparagraph three of this paragraph.
19 (ix) For taxable years beginning in two thousand seventeen, the busi-
20 ness allocation percentage shall be determined by adding together the
21 following percentages:
22 (A) the product of three and one-half percent and the percentage
23 determined under subparagraph one of this paragraph;
24 (B) the product of ninety-three percent and the percentage determined
25 under subparagraph two of this paragraph; and
26 (C) the product of three and one-half percent and the percentage
27 determined under subparagraph three of this paragraph.
28 (x) For taxable years beginning after two thousand seventeen, the
29 business allocation percentage shall be the percentage determined under
30 subparagraph two of this paragraph.
31 (xi) The commissioner of finance shall promulgate rules necessary to
32 implement the provisions of this subparagraph under such circumstances
33 where any of the percentages to be determined under subparagraph one,
34 two or three of this paragraph cannot be determined because the taxpayer
35 has no property, receipts or wages within or without the city.
36 (b) Intentionally omitted.
37 (c) Intentionally omitted.
38 (d) In any taxable year when property is sold or otherwise disposed
39 of, with respect to which a deduction has been allowed pursuant to
40 subparagraph one or two of paragraph (d) of subdivision three of section
41 11-604 of this chapter or subdivision (k) of section 11-641 of this
42 chapter in any period in which the taxpayer was subject to tax under
43 subchapter two of this chapter, the gain or loss thereon entering into
44 the computation of federal taxable income shall be disregarded in
45 computing entire net income, and there shall be added to or subtracted
46 from the portion of entire net income allocated within the city the gain
47 or loss upon such sale or other disposition. In computing such gain or
48 loss the basis of the property sold or disposed of shall be adjusted to
49 reflect the deduction allowed with respect to such property pursuant to
50 subparagraph one or two of paragraph (d) of subdivision three of section
51 11-604 of this chapter. Provided, however, that no loss shall be recog-
52 nized for the purposes of this subparagraph with respect to a sale or
53 other disposition of property to a person whose acquisition thereof is
54 not a purchase as defined in subsection (d) of section one hundred
55 seventy-nine of the internal revenue code.
A. 6009 129
1 (e) In any taxable year when property is sold or otherwise disposed
2 of, with respect to which a deduction has been allowed pursuant to
3 subparagraph one or two of paragraph (e) of subdivision three of section
4 11-604 of this chapter in any period the taxpayer was subject to tax
5 under subchapter two of this chapter, the gain or loss thereon entering
6 into the computation of federal taxable income shall be disregarded in
7 computing entire net income, and there shall be added to or subtracted
8 from the portion of entire net income allocated within the city the gain
9 or loss upon such sale or other disposition. In computing such gain or
10 loss the basis of the property sold or disposed of shall be adjusted to
11 reflect the deduction allowed with respect to such property pursuant to
12 subparagraph one or two of paragraph (e) of subdivision three of section
13 11-604 of this chapter. Provided, however, that no loss shall be recog-
14 nized for the purposes of this subparagraph with respect to a sale or
15 other disposition of property to a person whose acquisition thereof is
16 not a purchase as defined in subsection (d) of section one hundred
17 seventy-nine of the internal revenue code.
18 4. The portion of the business capital of a taxpayer to be allocated
19 within the city shall be determined by multiplying the amount thereof by
20 the business allocation percentage determined as hereinabove provided.
21 4-a. A corporation that is a partner in a partnership shall compute
22 tax under this subchapter using any method required or permitted in
23 regulations of the commissioner of finance.
24 5. Intentionally omitted.
25 6. Intentionally omitted.
26 7. Intentionally omitted.
27 8. Intentionally omitted.
28 9. If it shall appear to the commissioner of finance that any business
29 allocation percentage determined as hereinabove provided does not prop-
30 erly reflect the activity, business, income or capital of a taxpayer
31 within the city, the commissioner of finance shall be authorized in his
32 or her discretion to adjust it, or the taxpayer may request that the
33 commissioner of finance adjust it, by (a) excluding one or more of the
34 factors therein, (b) including one or more other factors, such as
35 expenses, purchases, contract values (minus subcontract values), (c)
36 excluding one or more assets in computing such allocation percentage,
37 provided the income therefrom, is also excluded in determining entire
38 net income, or (d) any other similar or different method calculated to
39 effect a fair and proper allocation of the income and capital reasonably
40 attributable to the city. The commissioner of finance from time to time
41 shall publish all rulings of general public interest with respect to any
42 application of the provisions of this subdivision.
43 10. Intentionally omitted.
44 11. Intentionally omitted.
45 12. Intentionally omitted.
46 13. (a) In addition to any other credit allowed by this section, a
47 taxpayer shall be allowed a credit against the tax imposed by this
48 subchapter to be credited or refunded without interest, in the manner
49 hereinafter provided in this section.
50 (1)(i) Where a taxpayer shall have relocated to the city from a
51 location outside the state, and by such relocation shall have created a
52 minimum of one hundred industrial or commercial employment opportu-
53 nities; and where such taxpayer shall have entered into a written lease
54 for the relocation premises, the terms of which lease provide for
55 increased additional payments to the landlord which are based solely and
56 directly upon any increase or addition in real estate taxes imposed on
A. 6009 130
1 the leased premises, the taxpayer upon approval and certification by the
2 industrial and commercial incentive board as hereinafter provided shall
3 be entitled to a credit against the tax imposed by this subchapter. The
4 amount of such credit shall be an amount equal to the annual increased
5 payments actually made by the taxpayer to the landlord which are solely
6 and directly attributable to an increase or addition to the real estate
7 tax imposed upon the leased premises. Such credit shall be allowed only
8 to the extent that the taxpayer has not otherwise claimed said amount as
9 a deduction against the tax imposed by this subchapter.
10 (ii) The industrial and commercial incentive board in approving and
11 certifying to the qualifications of the taxpayer to receive the tax
12 credit provided for herein shall first determine that the applicant has
13 met the requirements of this section, and further, that the granting of
14 the tax credit to the applicant is in the "public interest". In deter-
15 mining that the granting of the tax credit is in the public interest,
16 the board shall make affirmative findings that: the granting of the tax
17 credit to the applicant will not effect an undue hardship on similar
18 taxpayers already located within the city; the existence of this tax
19 incentive has been instrumental in bringing about the relocation of the
20 applicant to the city; and the granting of the tax credit will foster
21 the economic recovery and economic development of the city.
22 (iii) The tax credit, if approved and certified by the industrial and
23 commercial incentive board, must be utilized annually by the taxpayer
24 for the length of the term of the lease or for a period not to exceed
25 ten years from the date of relocation whichever period is shorter.
26 (2) When used in this subdivision:
27 (i) "Employment opportunity" means the creation of a full time posi-
28 tion of gainful employment for an industrial or commercial employee and
29 the actual hiring of such employee for the said position.
30 (ii) "Industrial employee" means one engaged in the manufacture or
31 assembling of tangible goods or the processing of raw materials.
32 (iii) "Commercial employee" means one engaged in the buying, selling
33 or otherwise providing of goods or services other than on a retail
34 basis.
35 (iv) "Retail" means the selling or otherwise disposing or furnishing
36 of tangible goods or services directly to the ultimate user or consumer.
37 (v) "Full time position" means the hiring of an industrial or commer-
38 cial employee in a position of gainful employment where the number of
39 hours worked by such employees is not less than thirty hours during any
40 given work week.
41 (vi) "Industrial and commercial incentive board" means the board
42 created pursuant to part three of subchapter two of chapter two of this
43 title.
44 (b) The credit allowed under this subdivision for any taxable year
45 shall be deemed to be an overpayment of tax by the taxpayer to be cred-
46 ited or refunded, without interest, in accordance with the provisions of
47 section 11-677 of this chapter.
48 14. (a) In addition to any other credit allowed by this section, a
49 taxpayer shall be allowed a credit against the tax imposed by this
50 subchapter to be credited or refunded without interest, in the manner
51 hereinafter provided in this section. The amount of such credit shall
52 be:
53 (1) A maximum of three hundred dollars for each commercial employment
54 opportunity and a maximum of five hundred dollars for each industrial
55 employment opportunity relocated to the city from an area outside the
56 state. Such credit shall be allowed to a taxpayer who relocates a mini-
A. 6009 131
1 mum of ten employment opportunities. The credit shall be allowed against
2 employment opportunity relocation costs incurred by the taxpayer. Such
3 credit shall be allowed only to the extent that the taxpayer has not
4 claimed a deduction for allowable employment opportunity relocation
5 costs. The credit allowed hereunder may be taken by the taxpayer in
6 whole or in part in the year in which the employment opportunity is
7 relocated by such taxpayer or either of the two years succeeding such
8 event, provided, however, no credit shall be allowed under this subdivi-
9 sion to a taxpayer for industrial employment opportunities relocated to
10 premises (i) that are within an industrial business zone established
11 pursuant to section 22-626 of this code and (ii) for which a binding
12 contract to purchase or lease was first entered into by the taxpayer on
13 or after July first, two thousand five.
14 The commissioner of finance is empowered to promulgate rules and regu-
15 lations and to prescribe the form of application to be used by a taxpay-
16 er seeking the credit provided hereunder.
17 (2) When used in this subdivision:
18 (i) "Employment opportunity" means the creation of a full time posi-
19 tion of gainful employment for an industrial or commercial employee and
20 the actual hiring of such employee for the said position.
21 (ii) "Industrial employee" means one engaged in the manufacture or
22 assembling of tangible goods or the processing of raw materials.
23 (iii) "Commercial employee" means one engaged in the buying, selling
24 or otherwise providing of goods or services other than on a retail
25 basis.
26 (iv) "Retail" means the selling or otherwise disposing of tangible
27 goods directly to the ultimate user or consumer.
28 (v) "Full time position" means the hiring of an industrial or commer-
29 cial employee in a position of gainful employment where the number of
30 hours worked by such employee is not less than thirty hours during any
31 given work week.
32 (vi) "Employment opportunity relocation costs" means the costs
33 incurred by the taxpayer in moving furniture, files, papers and office
34 equipment into the city from a location outside the state; the costs
35 incurred by the taxpayer in the moving and installation of machinery and
36 equipment into the city from a location outside the state; the costs of
37 installation of telephones and other communications equipment required
38 as a result of the relocation to the city from a location outside the
39 state; the cost incurred in the purchase of office furniture and
40 fixtures required as a result of the relocation to the city from a
41 location outside the state; and the cost of renovation of the premises
42 to be occupied as a result of the relocation; provided, however, that
43 such renovation costs shall be allowable only to the extent that they do
44 not exceed seventy-five cents per square foot of the total area utilized
45 by the taxpayer in the occupied premises.
46 (b) The credit allowed under this section for any taxable year shall
47 be deemed to be an overpayment of tax by the taxpayer to be credited or
48 refunded without interest in accordance with the provisions of section
49 11-677 of this chapter.
50 (c) Notwithstanding any other provision of this subdivision to the
51 contrary, in the case of a taxpayer that has received, in a taxable year
52 beginning before January first, two thousand fifteen, the credit set
53 forth in subdivision fourteen of section 11-604 of this chapter for an
54 eligible employment relocation, a credit shall be allowed to the taxpay-
55 er under this subdivision for any tax year beginning on or after January
56 first, two thousand fifteen, in the same amount and to the same extent
A. 6009 132
1 that a credit, or the unused portion thereof, would have been allowed
2 under subdivision fourteen of section 11-604 of this chapter, as in
3 effect on December thirty-first, two thousand fourteen, if such subdivi-
4 sion continued to apply to the taxpayer for such taxable year.
5 15. Intentionally omitted.
6 16. Intentionally omitted.
7 17. (a) In addition to any other credit allowed by this section, a
8 taxpayer that has obtained the certifications required by chapter six-B
9 of title twenty-two of this code shall be allowed a credit against the
10 tax imposed by this subchapter. The amount of the credit shall be the
11 amount determined by multiplying five hundred dollars or, in the case of
12 a taxpayer that has obtained pursuant to chapter six-B of such title
13 twenty-two a certification of eligibility dated on or after July first,
14 nineteen hundred ninety-five, one thousand dollars or, in the case of an
15 eligible business that has obtained pursuant to chapter six-B of such
16 title twenty-two a certification of eligibility dated on or after July
17 first, two thousand, for a relocation to eligible premises located with-
18 in a revitalization area defined in subdivision (n) of section 22-621 of
19 this code, three thousand dollars, by the number of eligible aggregate
20 employment shares maintained by the taxpayer during the taxable year
21 with respect to particular premises to which the taxpayer has relocated;
22 provided, however, with respect to a relocation for which no application
23 for a certificate of eligibility is submitted prior to July first, two
24 thousand three, to eligible premises that are not within a revitaliza-
25 tion area, if the date of such relocation as determined pursuant to
26 subdivision (j) of section 22-621 of this code is before July first,
27 nineteen hundred ninety-five, the amount to be multiplied by the number
28 of eligible aggregate employment shares shall be five hundred dollars,
29 and with respect to a relocation for which no application for a certif-
30 icate of eligibility is submitted prior to July first, two thousand
31 three, to eligible premises that are within a revitalization area, if
32 the date of such relocation as determined pursuant to subdivision (j) of
33 such section is before July first, nineteen hundred ninety-five, the
34 amount to be multiplied by the number of eligible aggregate employment
35 shares shall be five hundred dollars, and if the date of such relocation
36 as determined pursuant to subdivision (j) of such section is on or after
37 July first, nineteen hundred ninety-five, and before July first, two
38 thousand, one thousand dollars; provided, however, that no credit shall
39 be allowed for the relocation of any retail activity or hotel services;
40 provided, further, that no credit shall be allowed under this subdivi-
41 sion to any taxpayer that has elected pursuant to subdivision (d) of
42 section 22-622 of this code to take such credit against a gross receipts
43 tax imposed by chapter eleven of this title; and provided that in the
44 case of an eligible business that has obtained pursuant to chapter six-B
45 of such title twenty-two certifications of eligibility for more than one
46 relocation, the portion of the total amount of eligible aggregate
47 employment shares to be multiplied by the dollar amount specified in
48 this subdivision for each such certification of a relocation shall be
49 the number of total attributed eligible aggregate employment shares
50 determined with respect to such relocation pursuant to subdivision (o)
51 of section 22-621 of this code. For purposes of this subdivision, the
52 terms "eligible aggregate employment shares," "relocate," "retail activ-
53 ity" and "hotel services" shall have the meanings ascribed by section
54 22-621 of this code.
55 (b) The credit allowed under this subdivision with respect to eligible
56 aggregate employment shares maintained with respect to particular prem-
A. 6009 133
1 ises to which the taxpayer has relocated shall be allowed for the first
2 taxable year during which such eligible aggregate employment shares are
3 maintained with respect to such premises and for any of the twelve
4 succeeding taxable years during which eligible aggregate employment
5 shares are maintained with respect to such premises; provided that the
6 credit allowed for the twelfth succeeding taxable year shall be calcu-
7 lated by multiplying the number of eligible aggregate employment shares
8 maintained with respect to such premises in the twelfth succeeding taxa-
9 ble year by the lesser of one and a fraction the numerator of which is
10 such number of days in the taxable year of relocation less the number of
11 days the eligible business maintained employment shares in the eligible
12 premises in the taxable year of relocation and the denominator of which
13 is the number of days in such twelfth succeeding taxable year during
14 which such eligible aggregate employment shares are maintained with
15 respect to such premises. Except as provided in paragraph (d) of this
16 subdivision, if the amount of the credit allowable under this subdivi-
17 sion for any taxable year exceeds the tax imposed for such year, the
18 excess may be carried over, in order, to the five immediately succeeding
19 taxable years and, to the extent not previously deductible, may be
20 deducted from the taxpayer's tax for such years.
21 (c) The credit allowable under this subdivision shall be deducted
22 after the credit allowed by subdivision eighteen of this section, but
23 prior to the deduction of any other credit allowed by this section.
24 (d) In the case of a taxpayer that has obtained a certification of
25 eligibility pursuant to chapter six-B of title twenty-two of this code
26 dated on or after July first, two thousand for a relocation to eligible
27 premises located within the revitalization area defined in subdivision
28 (n) of section 22-621 of this code, the credits allowed under this
29 subdivision, or in the case of a taxpayer that has relocated more than
30 once, the portion of such credits attributed to such certification of
31 eligibility pursuant to paragraph (a) of this subdivision, against the
32 tax imposed by this chapter for the taxable year of such relocation and
33 for the four taxable years immediately succeeding the taxable year of
34 such relocation, shall be deemed to be overpayments of tax by the
35 taxpayer to be credited or refunded, without interest, in accordance
36 with the provisions of section 11-677 of this chapter. For such taxable
37 years, such credits or portions thereof may not be carried over to any
38 succeeding taxable year; provided, however, that this paragraph shall
39 not apply to any relocation for which an application for a certification
40 of eligibility was not submitted prior to July first, two thousand
41 three, unless the date of such relocation is on or after July first, two
42 thousand.
43 (e) Notwithstanding any other provision of this subdivision to the
44 contrary, in the case of a taxpayer that has obtained, pursuant to chap-
45 ter six-B of title twenty-two of this code, a certification of eligibil-
46 ity and has received, in a taxable year beginning before January first,
47 two thousand fifteen, the credit set forth in subdivision seventeen of
48 section 11-604 of this chapter or section 11-643.7 of this chapter for
49 the relocation of an eligible business, a credit shall be allowed under
50 this subdivision to the taxpayer for any taxable year beginning on or
51 after January first, two thousand fifteen in the same amount and to the
52 same extent that a credit would have been allowed under subdivision
53 seventeen of section 11-604 of this chapter or section 11-643.7 of this
54 chapter, as in effect on December thirty-first, two thousand fourteen,
55 if such subdivision continued to apply to the taxpayer for such taxable
56 year.
A. 6009 134
1 17-a. Intentionally omitted.
2 17-b. (a) In addition to any other credit allowed by this section, an
3 eligible business that first enters into a binding contract on or after
4 July first, two thousand five to purchase or lease eligible premises to
5 which it relocates shall be allowed a one-time credit against the tax
6 imposed by this subchapter to be credited or refunded in the manner
7 hereinafter provided in this subdivision. The amount of such credit
8 shall be one thousand dollars per full-time employee; provided, however,
9 that the amount of such credit shall not exceed the lesser of actual
10 relocation costs or one hundred thousand dollars.
11 (b) When used in this subdivision, the following terms shall have the
12 following meanings:
13 (1) "Eligible business" means any business subject to tax under this
14 subchapter that (i) has been conducting substantial business operations
15 and engaging primarily in industrial and manufacturing activities at one
16 or more locations within the city of New York or outside the state of
17 New York continuously during the twenty-four consecutive full months
18 immediately preceding relocation, (ii) has leased the premises from
19 which it relocates continuously during the twenty-four consecutive full
20 months immediately preceding relocation, (iii) first enters into a bind-
21 ing contract on or after July first, two thousand five to purchase or
22 lease eligible premises to which such business will relocate, and (iv)
23 will be engaged primarily in industrial and manufacturing activities at
24 such eligible premises.
25 (2) "Eligible premises" means premises located entirely within an
26 industrial business zone. For any eligible business, an industrial busi-
27 ness zone tax credit shall not be granted with respect to more than one
28 eligible premises.
29 (3) "Full-time employee" means (i) one person gainfully employed in an
30 eligible premises by an eligible business where the number of hours
31 required to be worked by such person is not less than thirty-five hours
32 per week; or (ii) two persons gainfully employed in an eligible premises
33 by an eligible business where the number of hours required to be worked
34 by each such person is more than fifteen hours per week but less than
35 thirty-five hours per week.
36 (4) "Industrial business zone" means an area within the city of New
37 York established pursuant to section 22-626 of this code.
38 (5) "Industrial business zone tax credit" means a credit, as provided
39 for in this subdivision, against a tax imposed under this subchapter.
40 (6) "Industrial and manufacturing activities" means activities involv-
41 ing the assembly of goods to create a different article, or the process-
42 ing, fabrication, or packaging of goods. Industrial and manufacturing
43 activities shall not include waste management or utility services.
44 (7) "Relocation" means the physical relocation of furniture, fixtures,
45 equipment, machinery and supplies directly to an eligible premises, from
46 one or more locations of an eligible business, including at least one
47 location at which such business conducts substantial business operations
48 and engages primarily in industrial and manufacturing activities. For
49 purposes of this subdivision, the date of relocation shall be (i) the
50 date of the completion of the relocation to the eligible premises or
51 (ii) ninety days from the commencement of the relocation to the eligible
52 premises, whichever is earlier.
53 (8) "Relocation costs" means costs incurred in the relocation of such
54 furniture, fixtures, equipment, machinery and supplies, including, but
55 not limited to, the cost of dismantling and reassembling equipment and
56 the cost of floor preparation necessary for the reassembly of the equip-
A. 6009 135
1 ment. Relocation costs shall include only such costs that are incurred
2 during the ninety-day period immediately following the commencement of
3 the relocation to an eligible premises. Relocation costs shall not
4 include costs for structural or capital improvements or items purchased
5 in connection with the relocation.
6 (c) The credit allowed under this subdivision for any taxable year
7 shall be deemed to be an overpayment of tax by the taxpayer to be cred-
8 ited or refunded without interest, in accordance with the provisions of
9 section 11-677 of this chapter.
10 (d) The number of full-time employees for the purposes of calculating
11 an industrial business tax credit shall be the average number of full-
12 time employees, calculated on a weekly basis, employed in the eligible
13 premises by the eligible business in the fifty-two week period imme-
14 diately following the earlier of (1) the date of the completion of the
15 relocation to eligible premises or (2) ninety days from the commencement
16 of the relocation to the eligible premises.
17 (e) The credit allowed under this subdivision must be taken by the
18 taxpayer in the taxable year in which such twelve month period selected
19 by the taxpayer ends.
20 (f) For the purposes of calculating entire net income in the taxable
21 year that an industrial business tax credit is allowed, a taxpayer must
22 add back the amount of the credit allowed under this subdivision, to the
23 extent of any relocation costs deducted in the current taxable year or a
24 prior taxable year in calculating federal taxable income.
25 (g) The credit allowed under this subdivision shall not be granted for
26 an eligible business for more than one relocation. Notwithstanding the
27 foregoing, an industrial business tax credit shall not be granted if the
28 eligible business receives benefits pursuant to chapter six-B or six-C
29 of title twenty-two of this code, through a grant program administered
30 by the business relocation assistance corporation, or through the New
31 York city printers relocation fund grant.
32 (h) The commissioner of finance is authorized to promulgate rules and
33 regulations and to prescribe forms necessary to effectuate the purposes
34 of this subdivision.
35 18. (a) If a corporation is a partner in an unincorporated business
36 taxable under chapter five of this title, and is required to include in
37 entire net income its distributive share of income, gain, loss and
38 deductions of, or guaranteed payments from, such unincorporated busi-
39 ness, such corporation shall be allowed a credit against the tax imposed
40 by this subchapter equal to the lesser of the amounts determined in
41 subparagraphs one and two of this paragraph:
42 (1) The amount determined in this subparagraph is the product of (i)
43 the sum of (A) the tax imposed by chapter five of this title on the
44 unincorporated business for its taxable year ending within or with the
45 taxable year of the corporation and paid by the unincorporated business
46 and (B) the amount of any credit or credits taken by the unincorporated
47 business under section 11-503 of this title (except the credit allowed
48 by subdivision (b) of section 11-503 of this title) for its taxable year
49 ending within or with the taxable year of the corporation, to the extent
50 that such credits do not reduce such unincorporated business's tax below
51 zero, and (ii) a fraction, the numerator of which is the net total of
52 the corporation's distributive share of income, gain, loss and
53 deductions of, and guaranteed payments from, the unincorporated business
54 for such taxable year, and the denominator of which is the sum, for such
55 taxable year, of the net total distributive shares of income, gain, loss
56 and deductions of, and guaranteed payments to, all partners in the unin-
A. 6009 136
1 corporated business for whom or which such net total (as separately
2 determined for each partner) is greater than zero.
3 (2) The amount determined in this subparagraph is the product of (i)
4 the excess of (A) the tax computed under clause (i) of subparagraph one
5 of paragraph (e) of subdivision one of this section, without allowance
6 of any credits allowed by this section, over (B) the tax so computed,
7 determined as if the corporation had no such distributive share or guar-
8 anteed payments with respect to the unincorporated business, and (ii) a
9 fraction, the numerator of which is four and the denominator of which is
10 eight and eighty-five one hundredths, provided however, in the case of a
11 taxpayer that is subject to paragraph (j) or (k) of subdivision one of
12 this section, such denominator shall be the rate of tax as determined by
13 such paragraph (j) or (k) for the taxable year and, provided, however,
14 that the amounts computed in subclauses (A) and (B) of clause (i) of
15 this subparagraph shall be computed with the following modifications:
16 (A) such amounts shall be computed without taking into account any
17 carryforward or carryback by the partner of a net operating loss or a
18 prior net operation loss conversion subtraction;
19 (B) if, prior to taking into account any distributive share or guaran-
20 teed payments from any unincorporated business or any net operating loss
21 carryforward or carryback, the entire net income of the partner is less
22 than zero, such entire net income shall be treated as zero; and
23 (C) if such partner's net total distributive share of income, gain,
24 loss and deductions of, and guaranteed payments from, any unincorporated
25 business is less than zero, such net total shall be treated as zero. The
26 amount determined in this subparagraph shall not be less than zero.
27 (b)(1) Notwithstanding anything to the contrary in paragraph (a) of
28 this subdivision, in the case of a corporation that, before the applica-
29 tion of this subdivision or any other credit allowed by this section, is
30 liable for the tax on business income under clause (i) of subparagraph
31 one of paragraph (e) of subdivision one of this section, the credit or
32 the sum of the credits that may be taken by such corporation for a taxa-
33 ble year under this subdivision with respect to an unincorporated busi-
34 ness or unincorporated businesses in which it is a partner shall not
35 exceed the tax so computed, without allowance of any credits allowed by
36 this section, multiplied by a fraction the numerator of which is four
37 and the denominator of which is eight and eighty-five one-hundredths
38 provided however, in the case of a taxpayer that is subject to paragraph
39 (j) or (k) of subdivision one of this section, such denominator shall be
40 the rate of tax as determined by such paragraph (j) or (k) for the taxa-
41 ble year. If the credit allowed under this subdivision or the sum of
42 such credits exceeds the product of such tax and such fraction, the
43 amount of the excess may be carried forward, in order, to each of the
44 seven immediately succeeding taxable years and, to the extent not previ-
45 ously taken, shall be allowed as a credit in each of such years. In
46 applying the provisions of the preceding sentence, the credit determined
47 for the taxable year under paragraph (a) of this subdivision shall be
48 taken before taking any credit carryforward pursuant to this paragraph
49 and the credit carryforward attributable to the earliest taxable year
50 shall be taken before taking a credit carryforward attributable to a
51 subsequent taxable year.
52 (2) Intentionally omitted.
53 (2-a) Notwithstanding any other provision of this subdivision to the
54 contrary, in the case of a taxpayer that has received, in a taxable year
55 beginning before January first, two thousand fifteen, the credit set
56 forth in subdivision eighteen of section 11-604 of this chapter or
A. 6009 137
1 section 11-643.8 of this chapter for a tax paid under chapter five of
2 this title in a taxable year beginning before January first, two thou-
3 sand fifteen, the taxpayer may carry forward the unused portion of such
4 credit under this subdivision to any taxable year beginning on or after
5 January first, two thousand fifteen in the same amount and to the same
6 extent, including the same limitations, that the credit, or the unused
7 portion thereof, would have been allowed to be carried forward under
8 subparagraph one of paragraph (b) of subdivision eighteen of section
9 11-604 of this chapter or paragraph one of subdivision (b) of section
10 11-643.8 of this chapter, as in effect on December thirty-first, two
11 thousand fourteen, if such subdivision continued to apply to the taxpay-
12 er for such taxable year.
13 (3) No credit allowed under this subdivision may be taken in a taxable
14 year by a taxpayer that, in the absence of such credit, would be liable
15 for the tax computed on the basis of business capital under clause (ii)
16 of subparagraph one of paragraph (e) of subdivision one of this section
17 or the fixed-dollar minimum tax under clause (iv) of subparagraph one of
18 paragraph (e) of subdivision one of this section.
19 (c) For corporations that file a report on a combined basis pursuant
20 to section 11-654.3 of this subchapter, the credit allowed by this
21 subdivision shall be computed as if the combined group were the partner
22 in each unincorporated business from which any of the members of such
23 group had a distributive share or guaranteed payments, provided, howev-
24 er, if more than one member of the combined group is a partner in the
25 same unincorporated business, for purposes of the calculation required
26 in subparagraph one of paragraph (a) of this subdivision, the numerator
27 of the fraction described in clause (ii) of such subparagraph one shall
28 be the sum of the net total distributive shares of income, gain, loss
29 and deductions of, and guaranteed payments from, the unincorporated
30 business of all of the partners of the unincorporated business within
31 the combined group for which such net total (as separately determined
32 for each partner) is greater than zero, and the denominator of such
33 fraction shall be the sum of the net total distributive shares of
34 income, gain, loss and deductions of, and guaranteed payments from, the
35 unincorporated business of all partners in the unincorporated business
36 for whom or which such net total (as separately determined for each
37 partner) is greater than zero.
38 (d) Notwithstanding any other provision of this subchapter, the credit
39 allowable under this subdivision shall be taken prior to the taking of
40 any other credit allowed by this section. Notwithstanding any other
41 provision of this subchapter, the application of this subdivision shall
42 not change the basis on which the taxpayer's tax is computed under para-
43 graph (e) of subdivision one of this section.
44 19. Lower Manhattan relocation and employment assistance credit. (a)
45 In addition to any other credit allowed by this section, a taxpayer that
46 has obtained the certifications required by chapter six-C of title twen-
47 ty-two of this code shall be allowed a credit against the tax imposed by
48 this subchapter. The amount of the credit shall be the amount determined
49 by multiplying three thousand dollars by the number of eligible aggre-
50 gate employment shares maintained by the taxpayer during the taxable
51 year with respect to eligible premises to which the taxpayer has relo-
52 cated; provided, however, that no credit shall be allowed for the relo-
53 cation of any retail activity or hotel services; provided, further, that
54 no credit shall be allowed under this subdivision to any taxpayer that
55 has elected pursuant to subdivision (d) of section 22-624 of this code
56 to take such credit against a gross receipts tax imposed under chapter
A. 6009 138
1 eleven of this title. For purposes of this subdivision, the terms
2 "eligible aggregate employment shares," "eligible premises," "relocate,"
3 "retail activity" and "hotel services" shall have the meanings ascribed
4 by section 22-623 of this code.
5 (b) The credit allowed under this subdivision with respect to eligible
6 aggregate employment shares maintained with respect to eligible premises
7 to which the taxpayer has relocated shall be allowed for the taxable
8 year of the relocation and for any of the twelve succeeding taxable
9 years during which eligible aggregate employment shares are maintained
10 with respect to eligible premises; provided that the credit allowed for
11 the twelfth succeeding taxable year shall be calculated by multiplying
12 the number of eligible aggregate employment shares maintained with
13 respect to eligible premises in the twelfth succeeding taxable year by
14 the lesser of one and a fraction the numerator of which is such number
15 of days in the taxable year of relocation less the number of days the
16 taxpayer maintained employment shares in eligible premises in the taxa-
17 ble year of relocation and the denominator of which is the number of
18 days in such twelfth taxable year during which such eligible aggregate
19 employment shares are maintained with respect to such premises.
20 (c) Except as provided in paragraph (d) of this subdivision, if the
21 amount of the credit allowable under this subdivision for any taxable
22 year exceeds the tax imposed for such year, the excess may be carried
23 over, in order, to the five immediately succeeding taxable years and, to
24 the extent not previously deductible, may be deducted from the taxpay-
25 er's tax for such years.
26 (d) The credits allowed under this subdivision, against the tax
27 imposed by this chapter for the taxable year of the relocation and for
28 the four taxable years immediately succeeding the taxable year of such
29 relocation, shall be deemed to be overpayments of tax by the taxpayer to
30 be credited or refunded, without interest, in accordance with the
31 provisions of section 11-677 of this chapter. For such taxable years,
32 such credits or portions thereof may not be carried over to any succeed-
33 ing taxable year.
34 (e) The credit allowable under this subdivision shall be deducted
35 after the credits allowed by subdivisions seventeen and eighteen of this
36 section, but prior to the deduction of any other credit allowed by this
37 section.
38 (f) Notwithstanding any other provision of this subdivision to the
39 contrary, in the case of a taxpayer that has obtained, pursuant to chap-
40 ter six-C of title twenty-two of this code, a certification of eligibil-
41 ity and has received, in a taxable year beginning before January first,
42 two thousand fifteen, the credit set forth in subdivision nineteen of
43 section 11-604 of this chapter or section 11-643.9 of this chapter for
44 the relocation of an eligible business, a credit shall be allowed under
45 this subdivision to the taxpayer for any taxable year beginning on or
46 after January first, two thousand fifteen in the same amount and to the
47 same extent that a credit would have been allowed under subdivision
48 nineteen of section 11-604 of this chapter or section 11-643.9 of this
49 chapter, as in effect on December thirty-first, two thousand fourteen,
50 if such subdivision continued to apply to the taxpayer for such taxable
51 year.
52 20. Intentionally omitted.
53 21. Biotechnology credit. (a) (1) A taxpayer that is a qualified
54 emerging technology company, engages in biotechnologies, and meets the
55 eligibility requirements of this subdivision, shall be allowed a credit
56 against the tax imposed by this subchapter. The amount of credit shall
A. 6009 139
1 be equal to the sum of the amounts specified in subparagraphs three,
2 four and five of this paragraph, subject to the limitations in subpara-
3 graph seven of this paragraph and paragraph (b) of this subdivision. For
4 the purposes of this subdivision, "qualified emerging technology compa-
5 ny" shall mean a company located in the city: (i) whose primary products
6 or services are classified as emerging technologies and whose total
7 annual product sales are ten million dollars or less; or (ii) a company
8 that has research and development activities in the city and whose ratio
9 of research and development funds to net sales equals or exceeds the
10 average ratio for all surveyed companies classified as determined by the
11 National Science Foundation in the most recent published results from
12 its Survey of Industry Research and Development, or any comparable
13 successor survey as determined by the department of finance, and whose
14 total annual product sales are ten million dollars or less. For the
15 purposes of this subdivision, the definition of research and development
16 funds shall be the same as that used by the National Science Foundation
17 in the aforementioned survey. For the purposes of this subdivision,
18 "biotechnologies" shall mean the technologies involving the scientific
19 manipulation of living organisms, especially at the molecular and/or the
20 sub-molecular genetic level, to produce products conducive to improving
21 the lives and health of plants, animals, and humans; and the associated
22 scientific research, pharmacological, mechanical, and computational
23 applications and services connected with these improvements. Activities
24 included with such applications and services shall include, but not be
25 limited to, alternative mRNA splicing, DNA sequence amplification, anti-
26 genetic switching bioaugmentation, bioenrichment, bioremediation, chro-
27 mosome walking, cytogenetic engineering, DNA diagnosis, fingerprinting,
28 and sequencing, electroporation, gene translocation, genetic mapping,
29 site-directed mutagenesis, bio-transduction, bio-mechanical and bio-e-
30 lectrical engineering, and bio-informatics.
31 (2) An eligible taxpayer shall (i) have no more than one hundred full-
32 time employees, of which at least seventy-five percent are employed in
33 the city, (ii) have a ratio of research and development funds to net
34 sales, as referred to in section thirty-one hundred two-e of the public
35 authorities law, which equals or exceeds six percent during the calendar
36 year ending with or within the taxable year for which the credit is
37 claimed, and (iii) have gross revenues, along with the gross revenues of
38 its "affiliates" and "related members" not exceeding twenty million
39 dollars for the calendar year immediately preceding the calendar year
40 ending with or within the taxable year for which the credit is claimed.
41 For the purposes of this subdivision, "affiliates" shall mean those
42 corporations that are members of the same affiliated group (as defined
43 in section fifteen hundred four of the internal revenue code) as the
44 taxpayer. For the purposes of this subdivision, the term "related
45 members" shall mean a person, corporation, or other entity, including an
46 entity that is treated as a partnership or other pass-through vehicle
47 for purposes of federal taxation, whether such person, corporation or
48 entity is a taxpayer or not, where one such person, corporation or enti-
49 ty, or set of related persons, corporations or entities, directly or
50 indirectly owns or controls a controlling interest in another entity.
51 Such entity or entities may include all taxpayers under chapters five,
52 eleven and seventeen of this title, and subchapters two and three of
53 this chapter. A controlling interest shall mean, in the case of a corpo-
54 ration, either thirty percent or more of the total combined voting power
55 of all classes of stock of such corporation, or thirty percent or more
56 of the capital, profits or beneficial interest in such voting stock of
A. 6009 140
1 such corporation; and in the case of a partnership, association, trust
2 or other entity, thirty percent or more of the capital, profits or bene-
3 ficial interest in such partnership, association, trust or other entity.
4 (3) An eligible taxpayer shall be allowed a credit for eighteen per
5 centum of the cost or other basis for federal income tax purposes of
6 research and development property that is acquired by the taxpayer by
7 purchase as defined in subsection (d) of section one hundred seventy-
8 nine of the internal revenue code and placed in service during the
9 calendar year that ends with or within the taxable year for which the
10 credit is claimed. Provided, however, for the purposes of this para-
11 graph only, an eligible taxpayer shall be allowed a credit for such
12 percentage of the (i) cost or other basis for federal income tax
13 purposes for property used in the testing or inspection of materials and
14 products, (ii) the costs or expenses associated with quality control of
15 the research and development, (iii) fees for use of sophisticated tech-
16 nology facilities and processes, and (iv) fees for the production or
17 eventual commercial distribution of materials and products resulting
18 from the activities of an eligible taxpayer as long as such activities
19 fall under activities relating to biotechnologies. The costs, expenses
20 and other amounts for which a credit is allowed and claimed under this
21 paragraph shall not be used in the calculation of any other credit
22 allowed under this subchapter. For the purposes of this subdivision,
23 "research and development property" shall mean property that is used for
24 purposes of research and development in the experimental or laboratory
25 sense. Such purposes shall not be deemed to include the ordinary testing
26 or inspection of materials or products for quality control, efficiency
27 surveys, management studies, consumer surveys, advertising, promotions,
28 or research in connection with literary, historical or similar projects.
29 (4) An eligible taxpayer shall be allowed a credit for nine per centum
30 of qualified research expenses paid or incurred by the taxpayer in the
31 calendar year that ends with or within the taxable year for which the
32 credit is claimed. For the purposes of this subdivision, "qualified
33 research expenses" shall mean expenses associated with in-house research
34 and processes, and costs associated with the dissemination of the
35 results of the products that directly result from such research and
36 development activities; provided, however, that such costs shall not
37 include advertising or promotion through media. In addition, costs asso-
38 ciated with the preparation of patent applications, patent application
39 filing fees, patent research fees, patent examinations fees, patent post
40 allowance fees, patent maintenance fees, and grant application expenses
41 and fees shall qualify as qualified research expenses. In no case shall
42 the credit allowed under this subparagraph apply to expenses for liti-
43 gation or the challenge of another entity's intellectual property
44 rights, or for contract expenses involving outside paid consultants.
45 (5) An eligible taxpayer shall be allowed a credit for qualified high-
46 technology training expenditures as described in this subparagraph paid
47 or incurred by the taxpayer during the calendar year that ends with or
48 within the taxable year for which the credit is claimed.
49 (i) The amount of credit shall be one hundred percent of the training
50 expenses described in clause (iii) of this subparagraph, subject to a
51 limitation of no more than four thousand dollars per employee per calen-
52 dar year for such training expenses.
53 (ii) Qualified high-technology training shall include a course or
54 courses taken and satisfactorily completed by an employee of the taxpay-
55 er at an accredited, degree granting post-secondary college or universi-
56 ty in the city that (A) directly relates to biotechnology activities,
A. 6009 141
1 and (B) is intended to upgrade, retrain or improve the productivity or
2 theoretical awareness of the employee. Such course or courses may
3 include, but are not limited to, instruction or research relating to
4 techniques, meta, macro, or micro-theoretical or practical knowledge
5 bases or frontiers, or ethical concerns related to such activities. Such
6 course or courses shall not include classes in the disciplines of
7 management, accounting or the law or any class designed to fulfill the
8 discipline specific requirements of a degree program at the associate,
9 baccalaureate, graduate or professional level of these disciplines.
10 Satisfactory completion of a course or courses shall mean the earning
11 and granting of credit or equivalent unit, with the attainment of a
12 grade of "B" or higher in a graduate level course or courses, a grade of
13 "C" or higher in an undergraduate level course or courses, or a similar
14 measure of competency for a course that is not measured according to a
15 standard grade formula.
16 (iii) Qualified high-technology training expenditures shall include
17 expenses for tuition and mandatory fees, software required by the insti-
18 tution, fees for textbooks or other literature required by the institu-
19 tion offering the course or courses, minus applicable scholarships and
20 tuition or fee waivers not granted by the taxpayer or any affiliates of
21 the taxpayer, that are paid or reimbursed by the taxpayer. Qualified
22 high-technology expenditures do not include room and board, computer
23 hardware or software not specifically assigned for such course or cours-
24 es, late-charges, fines or membership dues and similar expenses. Such
25 qualified expenditures shall not be eligible for the credit provided by
26 this section unless the employee for whom the expenditures are disbursed
27 is continuously employed by the taxpayer in a full-time, full-year posi-
28 tion primarily located at a qualified site during the period of such
29 coursework and lasting through at least one hundred eighty days after
30 the satisfactory completion of the qualifying course-work. Qualified
31 high-technology training expenditures shall not include expenses for
32 in-house or shared training outside of a city higher education institu-
33 tion or the use of consultants outside of credit granting courses,
34 whether such consultants function inside of such higher education insti-
35 tution or not.
36 (iv) If a taxpayer relocates from an academic business incubator
37 facility partnered with an accredited post-secondary education institu-
38 tion located within the city, which provides space and business support
39 services to taxpayers, to another site, the credit provided in this
40 subdivision shall be allowed for all expenditures referenced in clause
41 (iii) of this subparagraph paid or incurred in the two preceding calen-
42 dar years that the taxpayer was located in such an incubator facility
43 for employees of the taxpayer who also relocate from said incubator
44 facility to such city site and are employed and primarily located by the
45 taxpayer in the city. Such expenditures in the two preceding years
46 shall be added to the amounts otherwise qualifying for the credit
47 provided by this subdivision that were paid or incurred in the calendar
48 year that the taxpayer relocates from such a facility. Such expenditures
49 shall include expenses paid for an eligible employee who is a full-time,
50 full-year employee of said taxpayer during the calendar year that the
51 taxpayer relocated from an incubator facility notwithstanding (A) that
52 such employee was employed full or part-time as an officer, staff-person
53 or paid intern of the taxpayer when such taxpayer was located at such
54 incubator facility or (B) that such employee was not continuously
55 employed when such taxpayer was located at the incubator facility during
56 the one hundred eighty day period referred to in clause (iii) of this
A. 6009 142
1 subparagraph, provided such employee received wages or equivalent income
2 for at least seven hundred fifty hours during any twenty-four month
3 period when the taxpayer was located at the incubator facility. Such
4 expenditures shall include payments made to such employee after the
5 taxpayer has relocated from the incubator facility for qualified expend-
6 itures if such payments are made to reimburse an employee for expendi-
7 tures paid by the employee during such two preceding years. The credit
8 provided under this paragraph shall be allowed in any taxable year that
9 the taxpayer qualifies as an eligible taxpayer.
10 (v) For purposes of this subdivision the term "academic year" shall
11 mean the annual period of sessions of a post-secondary college or
12 university.
13 (vi) For the purposes of this subdivision the term "academic incubator
14 facility" shall mean a facility providing low-cost space, technical
15 assistance, support services and educational opportunities, including
16 but not limited to central services provided by the manager of the
17 facility to the tenants of the facility, to an entity located in the
18 city. Such entity's primary activity must be in biotechnologies, and
19 such entity must be in the formative stage of development. The academic
20 incubator facility and the entity must act in partnership with an
21 accredited post-secondary college or university located in the city. An
22 academic incubator facility's mission shall be to promote job creation,
23 entrepreneurship, technology transfer, and provide support services to
24 incubator tenants, including, but not limited to, business planning,
25 management assistance, financial-packaging, linkages to financing
26 services, and coordinating with other sources of assistance.
27 (6) An eligible taxpayer may claim credits under this subdivision for
28 three consecutive years. In no case shall the credit allowed by this
29 subdivision to a taxpayer exceed two hundred fifty thousand dollars per
30 calendar year for eligible expenditures made during such calendar year.
31 (7) The credit allowed under this subdivision for any taxable year
32 shall not reduce the tax due for such year to less than the amount
33 prescribed in clause (iv) of subparagraph one of paragraph (e) of subdi-
34 vision one of this section. Provided, however, if the amount of credit
35 allowed under this subdivision for any taxable year reduces the tax to
36 such amount, any amount of credit not deductible in such taxable year
37 shall be treated as an overpayment of tax to be credited or refunded in
38 accordance with the provisions of section 11-677 of this chapter;
39 provided, however, that notwithstanding the provisions of section 11-679
40 of this chapter, no interest shall be paid thereon.
41 (8) The credit allowed under this subdivision shall only be allowed
42 for taxable years beginning before January first, two thousand sixteen.
43 (b) (1) The percentage of the credit allowed to a taxpayer under this
44 subdivision in any calendar year shall be:
45 (i) If the average number of individuals employed full time by a
46 taxpayer in the city during the calendar year that ends with or within
47 the taxable year for which the credit is claimed is at least one hundred
48 five percent of the taxpayer's base year employment, one hundred
49 percent, except that in no case shall the credit allowed under this
50 clause exceed two hundred fifty thousand dollars per calendar year.
51 Provided, however, the increase in base year employment shall not apply
52 to a taxpayer allowed a credit under this subdivision that was, (A)
53 located outside of the city, (B) not doing business, or (C) did not have
54 any employees, in the year preceding the first year that the credit is
55 claimed. Any such taxpayer shall be eligible for one hundred percent of
56 the credit for the first calendar year that ends with or within the
A. 6009 143
1 taxable year for which the credit is claimed, provided that such taxpay-
2 er locates in the city, begins doing business in the city or hires
3 employees in the city during such calendar year and is otherwise eligi-
4 ble for the credit pursuant to the provisions of this subdivision.
5 (ii) If the average number of individuals employed full time by a
6 taxpayer in the city during the calendar year that ends with or within
7 the taxable year for which the credit is claimed is less than one
8 hundred five percent of the taxpayer's base year employment, fifty
9 percent, except that in no case shall the credit allowed under this
10 clause exceed one hundred twenty-five thousand dollars per calendar
11 year. In the case of an entity located in the city receiving space and
12 business support services by an academic incubator facility, if the
13 average number of individuals employed full time by such entity in the
14 city during the calendar year in which the credit allowed under this
15 subdivision is claimed is less than one hundred five percent of the
16 taxpayer's base year employment, the credit shall be zero.
17 (2) For the purposes of this subdivision, "base year employment" means
18 the average number of individuals employed full-time by the taxpayer in
19 the city in the year preceding the first calendar year that ends with or
20 within the taxable year for which the credit is claimed.
21 (3) For the purposes of this subdivision, average number of individ-
22 uals employed full-time shall be computed by adding the number of such
23 individuals employed by the taxpayer at the end of each quarter during
24 each calendar year or other applicable period and dividing the sum so
25 obtained by the number of such quarters occurring within such calendar
26 year or other applicable period.
27 (4) Notwithstanding anything contained in this section to the contra-
28 ry, the credit provided by this subdivision shall be allowed against the
29 taxes authorized by this chapter for the taxable year after reduction by
30 all other credits permitted by this chapter.
31 (c) Notwithstanding any other provision of this subdivision to the
32 contrary, in the case of a taxpayer that has received, in a taxable year
33 beginning before January first, two thousand fifteen, the credit set
34 forth in subdivision twenty-one of section 11-604 of this chapter for an
35 eligible acquisition of property and/or expense paid or incurred, a
36 credit shall be allowed to the taxpayer under this subdivision for any
37 tax year beginning on or after January first, two thousand fifteen in
38 the same amount and to the same extent that a credit would have been
39 allowed under subdivision twenty-one of section 11-604 of this chapter,
40 as in effect on December thirty-first, two thousand fourteen, if such
41 subdivision continued to apply to the taxpayer for such taxable year.
42 § 11-654.1 Net operating loss. 1. In computing the business income
43 subject to tax, taxpayers shall be allowed both a prior net operating
44 loss conversion subtraction under subdivision two of this section and a
45 net operating loss deduction under subdivision three of this section.
46 The prior net operating loss conversion subtraction computed under
47 subdivision two of this section shall be applied against business income
48 before the net operating loss deduction computed under subdivision three
49 of this section.
50 2. Prior net operating loss conversion subtraction. (a) Definitions.
51 (1) "Base year" means the last taxable year beginning on or after Janu-
52 ary first, two thousand fourteen and before January first, two thousand
53 fifteen.
54 (2) "Unabsorbed net operating loss" means the unabsorbed portion of
55 net operating loss as calculated under paragraph (f) of subdivision
56 eight of section 11-602 of this chapter or subdivision (k-1) of section
A. 6009 144
1 11-641 of this chapter as such sections were in effect on December thir-
2 ty-first, two thousand fourteen, that was not deductible in previous
3 taxable years and was eligible for carryover on the last day of the base
4 year subject to the limitations for deduction under such sections,
5 including any net operating loss sustained by the taxpayer during the
6 base year.
7 (3) "Base year BAP" means the taxpayer's business allocation percent-
8 age as calculated under paragraph (a) of subdivision three of section
9 11-604 of this chapter for the base year, or the taxpayer's allocation
10 percentage as calculated under section 11-642 of this chapter for
11 purposes of calculating entire net income for the base year, as such
12 sections were in effect on December thirty-first, two thousand fourteen.
13 (4) "Base year tax rate" means the taxpayer's tax rate for the base
14 year as calculated under subdivision one of section 11-604 of this chap-
15 ter or section 11-643.5 of this chapter, as such provisions were in
16 effect on December thirty-first, two thousand fourteen.
17 (b) The prior net operating loss conversion subtraction shall be
18 calculated as follows:
19 (1) The taxpayer shall first calculate the tax value of its unabsorbed
20 net operating loss for the base year. The value is equal to the product
21 of (i) the amount of the taxpayer's unabsorbed net operating loss, (ii)
22 the taxpayer's base year BAP, and (iii) the taxpayer's base year tax
23 rate.
24 (2) The product determined under subparagraph one of this paragraph
25 shall then be divided by eight and eighty-five one hundredths per
26 centum. This result shall equal the taxpayer's prior net operating loss
27 conversion subtraction pool.
28 (3) The taxpayer's prior net operating loss conversion subtraction for
29 the taxable year shall equal one-tenth of its prior net operating loss
30 conversion subtraction pool, plus any amount of unused prior net operat-
31 ing loss conversion subtraction from preceding taxable years.
32 (4) In lieu of the prior net operating loss conversion subtraction
33 described in subparagraph three of this paragraph, if the taxpayer so
34 elects, the taxpayer's prior net operating loss conversion subtraction
35 for its taxable years beginning on or after January first, two thousand
36 fifteen and before January first, two thousand seventeen shall equal, in
37 each year, not more than one-half of its prior net operating loss
38 conversion subtraction pool until the pool is exhausted. If the pool is
39 not exhausted at the end of such time period, the remainder of the pool
40 shall be forfeited. The taxpayer shall make such election on its first
41 return for the tax year beginning on or after January first, two thou-
42 sand fifteen and before January first, two thousand sixteen by the due
43 date for such return (determined with regard to extensions).
44 (c) (1) Where a taxpayer was properly included or required to be
45 included in a combined report for the base year pursuant to subdivision
46 four of section 11-605 of this chapter or a combined return for the base
47 year under subdivision (f) of section 11-646 of this chapter, as such
48 sections were in effect on December thirty-first, two thousand fourteen,
49 and the members of the combined group for the base year are the same as
50 the members of the combined group for the taxable year immediately
51 succeeding the base year, the combined group shall calculate its prior
52 net operating loss conversion subtraction pool using the combined
53 group's total unabsorbed net operating loss, base year BAP, and base
54 year tax rate.
55 (2) If a combined group includes additional members in the taxable
56 year immediately succeeding the base year that were not included in the
A. 6009 145
1 combined group during the base year, each base year combined group and
2 each taxpayer that filed separately for the base year but is included in
3 the combined group in the taxable year succeeding the base year shall
4 calculate its prior net operating loss conversion subtraction pool, and
5 the sum of the pools shall be the combined prior net operating loss
6 conversion subtraction pool of the combined group.
7 (3) If a taxpayer was properly included in a combined report for the
8 base year and files a separate report for a subsequent taxable year,
9 then the amount of remaining prior net operating loss conversion
10 subtraction allowed to the taxpayer filing such separate report shall be
11 proportionate to the amount that such taxpayer contributed to the prior
12 net operating loss conversion subtraction pool on a combined basis, and
13 the remaining prior net operating loss conversion subtraction allowed to
14 the remaining members of the combined group shall be reduced according-
15 ly.
16 (4) If a taxpayer filed a separate report for the base year and is
17 properly included in a combined report for a subsequent taxable year,
18 then the prior net operating loss conversion subtraction pool of the
19 combined group shall be increased by the amount of the remaining prior
20 net operating loss conversion subtraction allowed to the taxpayer at the
21 time the taxpayer is properly included in the combined group.
22 (d) The prior net operating loss conversion subtraction may be used to
23 reduce the taxpayer's tax on allocated business income to the higher of
24 the tax on capital under clause (ii) of subparagraph one of paragraph
25 (e) of subdivision one of section 11-654 of this subchapter or the fixed
26 dollar minimum under clause (iv) of subparagraph one of paragraph (e) of
27 subdivision one of section 11-654 of this subchapter. Unless the taxpay-
28 er has made the election provided for in subparagraph four of paragraph
29 (b) of this subdivision, any amount of unused prior net operating loss
30 conversion subtraction shall be carried forward to a subsequent tax year
31 or subsequent tax years until the prior net operating loss conversion
32 subtraction pool is exhausted, but for no longer than twenty taxable
33 years or not after the taxable year beginning on or after January first,
34 two thousand thirty-five but before January first, two thousand thirty-
35 six, whichever comes first. Such amount carried forward shall not be
36 subject to the one-tenth limitation for the subsequent tax year or years
37 under subparagraph three of paragraph (b) of this subdivision. However,
38 if the taxpayer elects to compute its prior net operating loss conver-
39 sion subtraction pursuant to subparagraph four of paragraph (b) of this
40 subdivision, the taxpayer shall not carry forward any unused amount of
41 such prior net operating loss conversion subtraction to any tax year
42 beginning on or after January first, two thousand seventeen.
43 3. In computing business income, a net operating loss deduction shall
44 be allowed. A net operating loss deduction shall be the amount of net
45 operating loss or losses from one or more taxable years that are carried
46 forward or carried back to a particular taxable year. A net operating
47 loss shall be the amount of a business loss incurred in a particular tax
48 year multiplied by the business allocation percentage for that year as
49 determined under subdivision three of section 11-654 of this subchapter.
50 The maximum net operating loss deduction that is allowed in a taxable
51 year shall be the amount that reduces the taxpayer's tax on allocated
52 business income to the higher of the tax on capital or the fixed dollar
53 minimum amount. Such net operating loss deduction and net operating loss
54 shall be determined in accordance with the following:
55 (a) Such net operating loss deduction shall not be limited to the
56 amount allowed under section one hundred seventy-two of the internal
A. 6009 146
1 revenue code or the amount that would have been allowed if the taxpayer
2 did not have an election under subchapter S of chapter one of the inter-
3 nal revenue code in effect for the applicable tax year.
4 (b) Such net operating loss deduction shall not include any net oper-
5 ating loss incurred during any taxable year beginning prior to January
6 first, two thousand fifteen, or during any taxable year in which the
7 taxpayer was not subject to the tax imposed by this subchapter.
8 (c) A taxpayer that files as part of a federal consolidated return but
9 on a separate basis for purposes of this subchapter shall compute its
10 deduction and loss as if it were filing on a separate basis for federal
11 income tax purposes.
12 (d) A net operating loss may be carried back three taxable years
13 preceding the taxable year of the loss except that no loss may be
14 carried back to a taxable year beginning before January first, two thou-
15 sand fifteen. The loss first shall be carried to the earliest of the
16 three taxable years preceding the taxable year of the loss. If it is not
17 entirely used in that year, it shall be carried to the second taxable
18 year preceding the taxable year of the loss, and any remaining amount
19 shall be carried to the taxable year immediately preceding the taxable
20 year of the loss. Any unused amount of loss then remaining may be
21 carried forward for as many as twenty taxable years following the taxa-
22 ble year of the loss. Losses carried forward are carried forward first
23 to the taxable year immediately following the taxable year of the loss,
24 then to the second taxable year following the taxable year of the loss,
25 and then to the next immediately subsequent taxable year or years until
26 the loss is used up or the twentieth taxable year following the loss
27 year, whichever comes first.
28 (e) Such net operating loss deduction shall not include any net oper-
29 ating loss incurred during any year commencing after January first, two
30 thousand fifteen if the taxpayer was subject to tax under subchapter two
31 or three of this chapter in that year; provided, however, any year
32 commencing after January first, two thousand fifteen that the taxpayer
33 was subject to tax under subchapter two or three of this chapter in that
34 year must be treated as a taxable year for purposes of determining the
35 number of taxable years to which a net operating loss may be carried
36 forward.
37 (f) Where there are two or more allocated net operating losses, or
38 portions thereof, carried back or carried forward to be deducted in one
39 particular tax year from allocated business income, the earliest allo-
40 cated loss incurred must be applied first.
41 (g) A taxpayer may elect to waive the entire carryback period with
42 respect to a net operating loss. Such election must be made on the
43 taxpayer's original timely filed return (determined with regard to
44 extensions) for the taxable year of the net operating loss for which the
45 election is to be in effect. Once an election is made for a taxable
46 year, it shall be irrevocable for that taxable year. A separate election
47 must be made for each taxable year of the loss. This election applies to
48 all members of a combined group.
49 § 11-654.2 Receipts apportionment. 1. The percentage of receipts of
50 the taxpayer to be allocated to the city for purposes of subparagraph
51 two of paragraph (a) of subdivision three of section 11-654 of this
52 subchapter shall be equal to the receipts fraction determined pursuant
53 to this section. The receipts fraction is a fraction, determined by
54 including only those receipts, net income, net gains, and other items
55 described in this section that are included in the computation of the
56 taxpayer's business income (determined without regard to the modifica-
A. 6009 147
1 tion provided in subparagraph fourteen of paragraph (a) of subdivision
2 eight of section 11-652 of this subchapter) for the taxable year. The
3 numerator of the receipts fraction shall be equal to the sum of all the
4 amounts required to be included in the numerator pursuant to the
5 provisions of this section and the denominator of the receipts fraction
6 shall be equal to the sum of all the amounts required to be included in
7 the denominator pursuant to the provisions of this section.
8 2. (a) Receipts from sales of tangible personal property where ship-
9 ments are made to points within the city or the destination of the prop-
10 erty is a point within the city shall be included in the numerator of
11 the receipts fraction. Receipts from sales of tangible personal property
12 where shipments are made to points within and without the city or the
13 destination is within and without the city shall be included in the
14 denominator of the receipts fraction.
15 (b) Receipts from sales of electricity delivered to points within the
16 city shall be included in the numerator of the receipts fraction.
17 Receipts from sales of electricity delivered to points within and with-
18 out the city shall be included in the denominator of the receipts frac-
19 tion.
20 (c) Receipts from sales of tangible personal property and electricity
21 that are traded as commodities as the term "commodity" is defined in
22 section four hundred seventy-five of the internal revenue code shall be
23 included in the receipts fraction in accordance with clause (i) of
24 subparagraph two of paragraph (a) of subdivision five of this section.
25 (d) Net gains (not less than zero) from the sales of real property
26 located within the city shall be included in the numerator of the
27 receipts fraction. Net gains (not less than zero) from the sales of real
28 property located within and without the city shall be included in the
29 denominator of the receipts fraction.
30 3. (a) Receipts from rentals of real and tangible personal property
31 located within the city shall be included in the numerator of the
32 receipts fraction. Receipts from rentals of real and tangible personal
33 property located within and without the city shall be included in the
34 denominator of the receipts fraction.
35 (b) Receipts of royalties from the use of patents, copyrights, trade-
36 marks, and similar intangible personal property within the city shall be
37 included in the numerator of the receipts fraction. Receipts of royal-
38 ties from the use of patents, copyrights, trademarks, and similar intan-
39 gible personal property within and without the city shall be included in
40 the denominator of the receipts fraction. A patent, copyright, trade-
41 mark, or similar intangible personal property is used within the city to
42 the extent that the activities thereunder are carried on within the
43 city.
44 (c) Receipts from the sales of rights for closed-circuit and cable
45 television transmissions of an event (other than events occurring on a
46 regularly scheduled basis) taking place within the city as a result of
47 the rendition of services by employees of the corporation, as athletes,
48 entertainers or performing artists, shall be included in the numerator
49 of the receipts fraction to the extent that such receipts are attribut-
50 able to such transmissions received or exhibited within the city.
51 Receipts from all sales of rights for closed-circuit and cable tele-
52 vision transmissions of an event shall be included in the denominator of
53 the receipts fraction.
54 4. (a) For purposes of determining the receipts fraction under this
55 section, the term "digital product" means any property or service, or
56 combination thereof, of whatever nature delivered to the purchaser
A. 6009 148
1 through the use of wire, cable, fiber-optic, laser, microwave, radio
2 wave, satellite or similar successor media, or any combination thereof.
3 Digital product includes, but is not limited to, an audio work, audi-
4 ovisual work, visual work, book or literary work, graphic work, game,
5 information or entertainment service, storage of digital products and
6 computer software by whatever means delivered. The term "delivered to"
7 includes furnished or provided to or accessed by. A digital product
8 shall not include legal, medical, accounting, architectural, research,
9 analytical, engineering or consulting services provided by the taxpayer.
10 (b) Receipts from the sale of, license to use, or granting of remote
11 access to digital products within the city, determined according to the
12 hierarchy of methods set forth in subparagraphs one through four of
13 paragraph (c) of this subdivision, shall be included in the numerator of
14 the receipts fraction. Receipts from the sale of, license to use, or
15 granting of remote access to digital products within and without the
16 city shall be included in the denominator of the receipts fraction. The
17 taxpayer must exercise due diligence under each method described in
18 paragraph (c) of this subdivision before rejecting it and proceeding to
19 the next method in the hierarchy, and must base its determination on
20 information known to the taxpayer or information that would be known to
21 the taxpayer upon reasonable inquiry. If the receipt for a digital prod-
22 uct is comprised of a combination of property and services, it cannot be
23 divided into separate components and shall be considered to be one
24 receipt regardless of whether it is separately stated for billing
25 purposes. The entire receipt must be allocated by this hierarchy.
26 (c) The hierarchy of sourcing methods is as follows: (1) the custom-
27 er's primary use location of the digital product; (2) the location where
28 the digital product is received by the customer, or is received by a
29 person designated for receipt by the customer; (3) the receipts fraction
30 determined pursuant to this subdivision for the preceding taxable year
31 for such digital product; or (4) the receipts fraction in the current
32 taxable year for those digital products that can be sourced using the
33 hierarchy of sourcing methods in subparagraphs one and two of this para-
34 graph.
35 5. (a) A financial instrument is a "qualified financial instrument" if
36 it is eligible or required to be marked to market under section four
37 hundred seventy-five or section twelve hundred fifty-six of the internal
38 revenue code, provided that loans secured by real property shall not be
39 qualified financial instruments. A financial instrument is a "nonquali-
40 fied financial instrument" if it is not a qualified financial instru-
41 ment.
42 (1) In determining the inclusion of receipts and net gains from quali-
43 fied financial instruments in the receipts fraction, taxpayers may elect
44 to use the fixed percentage method described in this subparagraph for
45 qualified financial instruments. The election is irrevocable, applies to
46 all qualified financial instruments, and must be made on an annual basis
47 on the taxpayer's original, timely filed return. If the taxpayer elects
48 the fixed percentage method, then all income, gain or loss, including
49 marked to market net gains as defined in clause (x) of subparagraph two
50 of this paragraph from qualified financial instruments constitute busi-
51 ness income, gain or loss. If the taxpayer does not elect to use the
52 fixed percentage method, then receipts and net gains are included in the
53 receipts fraction in accordance with the customer sourcing method
54 described in subparagraph two of this paragraph. Under the fixed
55 percentage method, eight percent of all net income (not less than zero)
56 from qualified financial instruments shall be included in the numerator
A. 6009 149
1 of the receipts fraction. All net income (not less than zero) from qual-
2 ified financial instruments shall be included in the denominator of the
3 receipts fraction.
4 (2) Receipts and net gains from qualified financial instruments, in
5 cases where the taxpayer did not elect to use the fixed percentage meth-
6 od described in subparagraph one of this paragraph, and from nonquali-
7 fied financial instruments shall be included in the receipts fraction in
8 accordance with this subparagraph. For purposes of this paragraph, an
9 individual is deemed to be located within the city if his or her billing
10 address is within the city. A business entity is deemed to be located
11 within the city if its commercial domicile is located within the city.
12 (i)(A) Receipts constituting interest from loans secured by real prop-
13 erty located within the city shall be included in the numerator of the
14 receipts fraction. Receipts constituting interest from loans secured by
15 real property located within and without the city shall be included in
16 the denominator of the receipts fraction.
17 (B) Receipts constituting interest from loans not secured by real
18 property shall be included in the numerator of the receipts fraction if
19 the borrower is located within the city. Receipts constituting interest
20 from loans not secured by real property, whether the borrower is located
21 within or without the city, shall be included in the denominator of the
22 receipts fraction.
23 (C) Net gains (not less than zero) from sales of loans secured by real
24 property shall be included in the numerator of the receipts fraction as
25 provided in this subclause. The amount of net gains from the sales of
26 loans secured by real property included in the numerator of the receipts
27 fraction shall be determined by multiplying the net gains by a fraction,
28 the numerator of which shall be the amount of gross proceeds from sales
29 of loans secured by real property located within the city and the denom-
30 inator of which shall be the gross proceeds from sales of loans secured
31 by real property located within and without the city. Gross proceeds
32 shall be determined after the deduction of any cost incurred to acquire
33 the loans but shall not be less than zero. Net gains (not less than
34 zero) from sales of loans secured by real property located within and
35 without the city shall be included in the denominator of the receipts
36 fraction.
37 (D) Net gains (not less than zero) from sales of loans not secured by
38 real property shall be included in the numerator of the receipts frac-
39 tion as provided in this subclause. The amount of net gains from the
40 sales of loans not secured by real property included in the numerator of
41 the receipts fraction shall be determined by multiplying the net gains
42 by a fraction, the numerator of which shall be the amount of gross
43 proceeds from sales of loans not secured by real property to purchasers
44 located within the city and the denominator of which shall be the amount
45 of gross proceeds from sales of loans not secured by real property to
46 purchasers located within and without the city. Gross proceeds shall be
47 determined after the deduction of any cost incurred to acquire the loans
48 but shall not be less than zero. Net gains (not less than zero) from
49 sales of loans not secured by real property shall be included in the
50 denominator of the receipts fraction.
51 (E) For purposes of this subdivision, a loan is secured by real prop-
52 erty if fifty percent or more of the value of the collateral used to
53 secure the loan, when valued at fair market value as of the time the
54 loan was entered into, consists of real property.
55 (ii) Federal, state, and municipal debt. Receipts constituting inter-
56 est and net gains from sales of debt instruments issued by the United
A. 6009 150
1 States, any state, or political subdivision of a state shall not be
2 included in the numerator of the receipts fraction. Receipts constitut-
3 ing interest and net gains (not less than zero) from sales of debt
4 instruments issued by the United States and the state of New York or its
5 political subdivisions, including the city, shall be included in the
6 denominator of the receipts fraction. Fifty percent of the receipts
7 constituting interest and net gains (not less than zero) from sales of
8 debt instruments issued by other states or their political subdivisions
9 shall be included in the denominator of the receipts fraction.
10 (iii) Asset backed securities and other government agency debt. Eight
11 percent of the interest income from asset backed securities or other
12 securities issued by government agencies, including but not limited to
13 securities issued by the government national mortgage association
14 (GNMA), the federal national mortgage association (FNMA), the federal
15 home loan mortgage corporation (FHLMC), or the small business adminis-
16 tration, or eight percent of the interest income from asset backed secu-
17 rities issued by other entities shall be included in the numerator of
18 the receipts fraction. Eight percent of the net gains (not less than
19 zero) from (A) sales of asset backed securities or other securities
20 issued by government agencies, including but not limited to securities
21 issued by GNMA, FNMA, FHLMC, or the small business administration, or
22 (B) sales of other asset backed securities that are sold through a
23 registered securities broker or dealer or through a licensed exchange,
24 shall be included in the numerator of the receipts fraction. The amount
25 of net gains (not less than zero) from sales of other asset backed secu-
26 rities not referenced in subclause (A) or (B) of this clause included in
27 the numerator of the receipts fraction shall be determined by multiply-
28 ing such net gains by a fraction, the numerator of which shall be the
29 amount of gross proceeds from such sales to purchasers located in the
30 city and the denominator of which shall be the amount of gross proceeds
31 from such sales to purchasers located within and without the city.
32 Receipts constituting interest income from asset backed securities and
33 other securities referenced in this clause and net gains (not less than
34 zero) from sales of asset backed securities and other securities refer-
35 enced in this clause shall be included in the denominator of the
36 receipts fraction. Gross proceeds shall be determined after the
37 deduction of any cost to acquire the securities but shall not be less
38 than zero.
39 (iv) Receipts constituting interest from corporate bonds shall be
40 included in the numerator of the receipts fraction if the commercial
41 domicile of the issuing corporation is within the city. Eight percent of
42 the net gains (not less than zero) from sales of corporate bonds sold
43 through a registered securities broker or dealer or through a licensed
44 exchange shall be included in the numerator of the receipts fraction.
45 The amount of net gains (not less than zero) from other sales of corpo-
46 rate bonds included in the numerator of the receipts fraction shall be
47 determined by multiplying such net gains by a fraction, the numerator of
48 which is the amount of gross proceeds from such sales to purchasers
49 located within the city and the denominator of which is the amount of
50 gross proceeds from sales to purchasers located within and without the
51 city. Receipts constituting interest from corporate bonds, whether the
52 issuing corporation's commercial domicile is within or without the city,
53 and net gains (not less than zero) from sales of corporate bonds to
54 purchasers within and without the city shall be included in the denomi-
55 nator of the receipts fraction. Gross proceeds shall be determined after
A. 6009 151
1 the deduction of any cost to acquire the bonds but shall not be less
2 than zero.
3 (v) Eight percent of net interest income (not less than zero) from
4 reverse repurchase agreements and securities borrowing agreements shall
5 be included in the numerator of the receipts fraction. Net interest
6 income (not less than zero) from reverse repurchase agreements and secu-
7 rities borrowing agreements shall be included in the denominator of the
8 receipts fraction. Net interest income from reverse repurchase agree-
9 ments and securities borrowing agreements shall be determined for
10 purposes of this subdivision after the deduction of the interest expense
11 from the taxpayer's repurchase agreements and securities lending agree-
12 ments but shall not be less than zero. For this calculation, the amount
13 of such interest expense shall be the interest expense associated with
14 the sum of the value of the taxpayer's repurchase agreements where it is
15 the seller/borrower plus the value of the taxpayer's securities lending
16 agreements where it is the securities lender, provided such sum is
17 limited to the sum of the value of the taxpayer's reverse repurchase
18 agreements where it is the purchaser/lender plus the value of the
19 taxpayer's securities lending agreements where it is the securities
20 borrower.
21 (vi) Eight percent of the net interest (not less than zero) from
22 federal funds shall be included in the numerator of the receipts frac-
23 tion. The net interest (not less than zero) from federal funds shall be
24 included in the denominator of the receipts fraction. Net interest from
25 federal funds shall be determined after deduction of interest expense
26 from federal funds.
27 (vii) Dividends from stock, net gains (not less than zero) from sales
28 of stock and net gains (not less than zero) from sales of partnership
29 interests shall not be included in either the numerator or denominator
30 of the receipts fraction unless the commissioner of finance determines
31 pursuant to subdivision eleven of this section that inclusion of such
32 dividends and net gains (not less than zero) is necessary to properly
33 reflect the business income or capital of the taxpayer.
34 (viii)(A) Receipts constituting interest from other financial instru-
35 ments shall be included in the numerator of the receipts fraction if the
36 payor is located within the city. Receipts constituting interest from
37 other financial instruments, whether the payor is within or without the
38 city, shall be included in the denominator of the receipts fraction.
39 (B) Net gains (not less than zero) from sales of other financial
40 instruments and other income (not less than zero) from other financial
41 instruments where the purchaser or payor is located within the city
42 shall be included in the numerator of the receipts fraction, provided
43 that, if the purchaser or payor is a registered securities broker or
44 dealer or the transaction is made through a licensed exchange, then
45 eight percent of the net gains (not less than zero) or other income (not
46 less than zero) shall be included in the numerator of the receipts frac-
47 tion. Net gains (not less than zero) from sales of other financial
48 instruments and other income (not less than zero) from other financial
49 instruments shall be included in the denominator of the receipts frac-
50 tion.
51 (ix) Net income (not less than zero) from sales of physical commod-
52 ities shall be included in the numerator of the receipts fraction as
53 provided in this clause. The amount of net income from sales of phys-
54 ical commodities included in the numerator of the receipts fraction
55 shall be determined by multiplying the net income from sales of physical
56 commodities by a fraction, the numerator of which shall be the amount of
A. 6009 152
1 receipts from sales of physical commodities actually delivered to points
2 within the city or, if there is no actual delivery of the physical
3 commodity, sold to purchasers located within the city, and the denomina-
4 tor of which shall be the amount of receipts from sales of physical
5 commodities actually delivered to points within and without the city or,
6 if there is no actual delivery of the physical commodity, sold to
7 purchasers located within and without the city. Net income (not less
8 than zero) from sales of physical commodities shall be included in the
9 denominator of the receipts fraction. Net income (not less than zero)
10 from sales of physical commodities shall be determined after the
11 deduction of the cost to acquire or produce the physical commodities.
12 (x)(A) For purposes of this subdivision, "marked to market" means that
13 a financial instrument is, under section four hundred seventy-five or
14 section twelve hundred fifty-six of the internal revenue code, treated
15 by the taxpayer as sold for its fair market value on the last business
16 day of the taxpayer's taxable year. "Marked to market gain or loss"
17 means the gain or loss recognized by the taxpayer under section four
18 hundred seventy-five or section twelve hundred fifty-six of the internal
19 revenue code because the financial instrument is treated as sold for its
20 fair market value on the last business day of the taxpayer's taxable
21 year.
22 (B) The amount of marked to market net gains (not less than zero) from
23 each type of financial instrument that is marked to market included in
24 the numerator of the receipts fraction shall be determined by multiply-
25 ing the marked to market net gains (not less than zero) from such type
26 of financial instrument by a fraction, the numerator of which shall be
27 the numerator of the receipts fraction for that type of financial
28 instrument determined under the applicable clause of this subparagraph
29 and the denominator of which shall be the denominator of the receipts
30 fraction for net gains from that type of financial instrument determined
31 under the applicable clause of this subparagraph. Marked to market net
32 gains (not less than zero) from financial instruments for which the
33 numerator of the receipts fraction for net gains is determined under the
34 immediately preceding sentence shall be included in the denominator of
35 the receipts fraction.
36 (C) If the type of financial instrument that is marked to market is
37 not otherwise sourced by the taxpayer under this subparagraph, or if the
38 taxpayer has a net loss from the sales of that type of financial instru-
39 ment under the applicable clause of this subparagraph, the amount of
40 marked to market net gains (not less than zero) from that type of finan-
41 cial instrument included in the numerator of the receipts fraction shall
42 be determined by multiplying the marked to market net gains (but not
43 less than zero) from that type of financial instrument by a fraction,
44 the numerator of which shall be the sum of the amount of receipts
45 included in the numerator of the receipts fraction under clauses (i)
46 through (ix) of this subparagraph and subclause (B) of this clause, and
47 the denominator of which shall be the sum of the amount of receipts
48 included in the denominator of the receipts fraction under clauses (i)
49 through (ix) of this subparagraph and subclause (B) of this clause.
50 Marked to market net gains (not less than zero) for which the amount to
51 be included in the numerator of the receipts fraction is determined
52 under the immediately preceding sentence shall be included in the denom-
53 inator of the receipts fraction.
54 (b) Receipts of a registered securities broker or dealer from securi-
55 ties or commodities broker or dealer activities described in this para-
56 graph shall be deemed to be generated within the city as described in
A. 6009 153
1 subparagraphs one through eight of this paragraph. Receipts from such
2 activities generated within the city shall be included in the numerator
3 of the receipts fraction. Receipts from such activities generated within
4 and without the city shall be included in the denominator of the
5 receipts fraction. For the purposes of this paragraph, the term "securi-
6 ties" shall have the same meaning as in paragraph two of subsection (c)
7 of section four hundred seventy-five of the internal revenue code and
8 the term "commodities" shall have the same meaning as in paragraph two
9 of subsection (e) of section four hundred seventy-five of the internal
10 revenue code.
11 (1) Receipts constituting brokerage commissions derived from the
12 execution of securities or commodities purchase or sales orders for the
13 accounts of customers shall be deemed to be generated within the city if
14 the mailing address in the records of the taxpayer of the customer who
15 is responsible for paying such commissions is within the city.
16 (2) Receipts constituting margin interest earned on behalf of broker-
17 age accounts shall be deemed to be generated within the city if the
18 mailing address in the records of the taxpayer of the customer who is
19 responsible for paying such margin interest is within the city.
20 (3) (i) Receipts constituting fees earned by the taxpayer for advisory
21 services to a customer in connection with the underwriting of securities
22 for such customer (such customer being the entity that is contemplating
23 issuing or is issuing securities) or fees earned by the taxpayer for
24 managing an underwriting shall be deemed to be generated within the city
25 if the mailing address in the records of the taxpayer of such customer
26 who is responsible for paying such fees is within the city.
27 (ii) Receipts constituting the primary spread of selling concession
28 from underwritten securities shall be deemed to be generated within the
29 city if the customer is located within the city.
30 (iii) The term "primary spread" means the difference between the price
31 paid by the taxpayer to the issuer of the securities being marketed and
32 the price received from the subsequent sale of the underwritten securi-
33 ties at the initial public offering price, less any selling concession
34 and any fees paid to the taxpayer for advisory services or any manager's
35 fees, if such fees are not paid by the customer to the taxpayer sepa-
36 rately. The term "public offering price" means the price agreed upon by
37 the taxpayer and the issuer at which the securities are to be offered to
38 the public. The term "selling concession" means the amount paid to the
39 taxpayer for participating in the underwriting of a security where the
40 taxpayer is not the lead underwriter.
41 (4) Receipts constituting account maintenance fees shall be deemed to
42 be generated within the city if the mailing address in the record of the
43 taxpayer of the customer who is responsible for paying such account
44 maintenance fees is within the city.
45 (5) Receipts constituting fees for management or advisory services,
46 including fees for advisory services in relation to merger or acquisi-
47 tion activities, but excluding fees paid for services described in para-
48 graph (d) of this subdivision, shall be deemed to be generated within
49 the city if the mailing address in the records of the taxpayer of the
50 customer who is responsible for paying such fees is within the city.
51 (6) Receipts constituting interest earned by the taxpayer on loans and
52 advances made by the taxpayer to a corporation affiliated with the
53 taxpayer but with which the taxpayer is not permitted or required to
54 file a combined report pursuant to section 11-654.3 of this subchapter
55 shall be deemed to arise from services performed at the principal place
56 of business of such affiliated corporation.
A. 6009 154
1 (7) If the taxpayer receives any of the receipts enumerated in subpar-
2 agraphs one through four of this paragraph as a result of a securities
3 correspondent relationship such taxpayer has with another broker or
4 dealer with the taxpayer acting in this relationship as the clearing
5 firm, such receipts shall be deemed to be generated within the city to
6 the extent set forth in each of such subparagraphs. The amount of such
7 receipts shall exclude the amount the taxpayer is required to pay to the
8 correspondent firm for such correspondent relationship. If the taxpayer
9 receives any of the receipts enumerated in subparagraphs one through
10 four of this paragraph as result of a securities correspondent relation-
11 ship such taxpayer has with another broker or dealer with the taxpayer
12 acting in this relationship as the introducing firm, such receipts shall
13 be deemed to be generated within the city to the extent set forth in
14 each of such subparagraphs.
15 (8) If, for the purposes of subparagraph one, subparagraph two, clause
16 (i) of subparagraph three, subparagraph four, or subparagraph five of
17 this paragraph the taxpayer is unable from its records to determine the
18 mailing address of the customer, eight percent of the receipts shall be
19 included in the numerator of the receipts fraction.
20 (c) Receipts relating to the bank, credit, travel, and entertainment
21 card activities described in this paragraph shall be deemed to be gener-
22 ated within the city as described in subparagraphs one through four of
23 this paragraph. Receipts from such activities generated within the city
24 shall be included in the numerator of the receipts fraction. Receipts
25 from such activities generated within and without the city shall be
26 included in the denominator of the receipts fraction.
27 (1) Receipts constituting interest, and fees and penalties in the
28 nature of interest, from bank, credit, travel and entertainment card
29 receivables shall be deemed to be generated within the city if the mail-
30 ing address of the card holder in the records of the taxpayer is within
31 the city;
32 (2) Receipts from service charges and fees from such cards shall be
33 deemed to be generated within the city if the mailing address of the
34 card holder in the records of the taxpayer is within the city;
35 (3) Receipts from merchant discounts shall be deemed to be generated
36 within the city if the merchant is located within the city. In the case
37 of a merchant with locations both within and without the city, only
38 receipts from merchant discounts attributable to sales made from
39 locations within the city are allocated to the city. It shall be
40 presumed that the location of the merchant is the address of the
41 merchant shown on the invoice submitted by the merchant to the taxpayer;
42 and
43 (4) Receipts from credit card authorization processing, and clearing
44 and settlement processing received by a credit card processor shall be
45 deemed to be generated within the city if the location where the credit
46 card processor's customer accesses the credit card processor's network
47 is located within the city. The amount of all other receipts received by
48 a credit card processor not specifically addressed in subdivisions one
49 through nine or subdivision twelve of this section deemed to be gener-
50 ated within the city shall be determined by multiplying the total amount
51 of such other receipts by the average of (i) eight percent and (ii) the
52 percent of New York city access points. The percent of New York city
53 access points shall be the number of locations in New York city from
54 which the credit card processor's customers access the credit card
55 processor's network divided by the total number of locations in the
A. 6009 155
1 United States where the credit card processor's customers access the
2 credit card processor's network.
3 (d) Receipts received from an investment company arising from the sale
4 of management, administration or distribution services to such invest-
5 ment company shall be included in the denominator of the receipts frac-
6 tion. The portion of such receipts included in the numerator of the
7 receipts fraction (such portion referred to herein as the New York city
8 portion) shall be determined as provided in this paragraph.
9 (1) The New York city portion shall be the product of the total of
10 such receipts from the sale of such services and a fraction. The numera-
11 tor of that fraction shall be the sum of the monthly percentages (as
12 defined hereinafter) determined for each month of the investment compa-
13 ny's taxable year for federal income tax purposes which taxable year
14 ends within the taxable year of the taxpayer (but excluding any month
15 during which the investment company had no outstanding shares). The
16 monthly percentage for each such month shall be determined by dividing
17 the number of shares in the investment company that are owned on the
18 last day of the month by shareholders that are located in the city by
19 the total number of shares in the investment company outstanding on that
20 date. The denominator of the fraction shall be the number of such month-
21 ly percentages.
22 (2)(i) For purposes of this paragraph, an individual, estate or trust
23 shall be deemed to be located within the city if his, her or its mailing
24 address in the records of the investment company is located within the
25 city. A business entity is deemed to be located within the city if its
26 commercial domicile is located within the city.
27 (ii) For purposes of this paragraph, the term "investment company"
28 means a regulated investment company, as defined in section eight
29 hundred fifty-one of the internal revenue code, and a partnership to
30 which subsection (a) of section seven thousand seven hundred four of the
31 internal revenue code applies (by virtue of paragraph three of
32 subsection (c) of section seven thousand seven hundred four of such
33 code) and that meets the requirements of subsection (b) of section eight
34 hundred fifty-one of such code. The preceding sentence shall be applied
35 to the taxable year for federal income tax purposes of the business
36 entity that is asserted to constitute an investment company that ends
37 within the taxable year of the taxpayer.
38 (iii) For purposes of this paragraph, the term "receipts received from
39 an investment company" includes amounts received directly from an
40 investment company as well as amounts received from the shareholders in
41 such investment company, in their capacity as such.
42 (iv) For purposes of this paragraph, the term "management services"
43 means the rendering of investment advice to an investment company,
44 making determinations as to when sales and purchases of securities are
45 to be made on behalf of an investment company, or the selling or
46 purchasing of securities constituting assets of an investment company,
47 and related activities, but only where such activity or activities are
48 performed pursuant to a contract with the investment company entered
49 into pursuant to subsection (a) of section fifteen of the federal
50 investment company act of nineteen hundred forty, as amended.
51 (v) For purposes of this paragraph, the term "distribution services"
52 means the services of advertising, servicing investor accounts (includ-
53 ing redemptions), marketing shares or selling shares of an investment
54 company, but, in the case of advertising, servicing investor accounts
55 (including redemptions) or marketing shares, only where such service is
56 performed by a person who is (or was, in the case of a closed end compa-
A. 6009 156
1 ny) also engaged in the service of selling such shares. In the case of
2 an open end company, such service of selling shares must be performed
3 pursuant to a contract entered into pursuant to subsection (b) of
4 section fifteen of the federal investment company act of nineteen
5 hundred forty, as amended.
6 (vi) For purposes of this paragraph, the term "administration
7 services" includes clerical, accounting, bookkeeping, data processing,
8 internal auditing, legal and tax services performed for an investment
9 company but only if the provider of such service or services during the
10 taxable year in which such service or services are sold also sells
11 management or distribution services, as defined hereinabove, to such
12 investment company.
13 (e) For purposes of this subdivision, a taxpayer shall use the follow-
14 ing hierarchy to determine the commercial domicile of a business entity,
15 based on the information known to the taxpayer or information that would
16 be known upon reasonable inquiry: (1) the seat of management and control
17 of the business entity; and (2) the billing address of the business
18 entity in the taxpayer's records. The taxpayer must exercise due dili-
19 gence before rejecting the first method in this hierarchy and proceeding
20 to the next method.
21 (f) For purposes of this subdivision, the term "registered securities
22 broker or dealer" means a broker or dealer registered as such by the
23 securities and exchange commission or a broker or dealer registered as
24 such by the commodities futures trading commission, and shall include an
25 OTC derivatives dealer as defined under regulations of the securities
26 and exchange commission at title 17, part 240, section 3b-12 of the code
27 of federal regulations (17 CFR 240.3b-12).
28 6. Receipts from the conduct of a railroad business (including surface
29 railroad, whether or not operated by steam, subway railroad, elevated
30 railroad, palace car or sleeping car business) or a trucking business
31 shall be included in the numerator of the receipts fraction as follows.
32 The amount of receipts from the conduct of a railroad business or a
33 trucking business included in the numerator of the receipts fraction
34 shall be determined by multiplying the amount of receipts from such
35 business by a fraction, the numerator of which shall be the miles in
36 such business within the city during the period covered by the taxpay-
37 er's report and the denominator of which shall be the miles in such
38 business within and without the city during such period. Receipts from
39 the conduct of the railroad business or a trucking business shall be
40 included in the denominator of the receipts fraction.
41 7. (a) Receipts of a taxpayer acting as principal from the activity of
42 air freight forwarding and like indirect air carrier receipts arising
43 from such activity shall be included in the numerator of the receipts
44 fraction as follows: one hundred percent of such receipts if both the
45 pickup and delivery associated with such receipts are made within the
46 city and fifty percent of such receipts if either the pickup or delivery
47 associated with such receipts is made within this city. Such receipts,
48 whether the pickup or delivery associated with the receipts is within or
49 without the city, shall be included in the denominator of the receipts
50 fraction.
51 (b)(1)(i) The portion of receipts of a taxpayer from aviation services
52 (other than services described in paragraph (a) of this subdivision, but
53 including the receipts of a qualified air freight forwarder) to be
54 included in the numerator of the receipts fraction shall be determined
55 by multiplying its receipts from such aviation services by a percentage
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1 which is equal to the arithmetic average of the following three percent-
2 ages:
3 (A) the percentage determined by dividing the aircraft arrivals and
4 departures within the city by the taxpayer during the period covered by
5 its report by the total aircraft arrivals and departures within and
6 without the city during such period; provided, however, arrivals and
7 departures solely for maintenance or repair, refueling (where no debar-
8 kation or embarkation of traffic occurs), arrivals and departures of
9 ferry and personnel training flights or arrivals and departures in the
10 event of emergency situations shall not be included in computing such
11 arrival and departure percentage; provided, further, the commissioner of
12 finance may also exempt from such percentage aircraft arrivals and
13 departures of all non-revenue flights including flights involving the
14 transportation of officers or employees receiving air transportation to
15 perform maintenance or repair services or where such officers or employ-
16 ees are transported in conjunction with an emergency situation or the
17 investigation of an air disaster (other than on a scheduled flight);
18 provided, however, that arrivals and departures of flights transporting
19 officers and employees receiving air transportation for purposes other
20 than specified above (without regard to remuneration) shall be included
21 in computing such arrival and departure percentage;
22 (B) the percentage determined by dividing the revenue tons handled by
23 the taxpayer at airports within the city during such period by the total
24 revenue tons handled by it at airports within and without the city
25 during such period; and
26 (C) the percentage determined by dividing the taxpayer's originating
27 revenue within the city for such period by its total originating revenue
28 within and without the city for such period.
29 (ii) As used herein the term "aircraft arrivals and departures" means
30 the number of landings and takeoffs of the aircraft of the taxpayer and
31 the number of air pickups and deliveries by the aircraft of such taxpay-
32 er; the term "originating revenue" means revenue to the taxpayer from
33 the transportation of revenue passengers and revenue property first
34 received by the taxpayer either as originating or connecting traffic at
35 airports; and the term "revenue tons handled by the taxpayer at
36 airports" means the weight in tons of revenue passengers (at two hundred
37 pounds per passenger) and revenue cargo first received either as origi-
38 nating or connecting traffic or finally discharged by the taxpayer at
39 airports.
40 (2) All such receipts of a taxpayer from aviation services described
41 in this paragraph shall be included in the denominator of the receipts
42 fraction.
43 (3) A corporation is a qualified air freight forwarder with respect to
44 another corporation:
45 (i) if it owns or controls either directly or indirectly all of the
46 capital stock of such other corporation, or if all of its capital stock
47 is owned or controlled either directly or indirectly by such other
48 corporation, or if all of the capital stock of both corporations is
49 owned or controlled either directly or indirectly by the same interests;
50 (ii) if it is principally engaged in the business of air freight
51 forwarding; and
52 (iii) if its air freight forwarding business is carried on principally
53 with the airline or airlines operated by such other corporation.
54 8. (a) The amount of receipts from sales of advertising in newspapers
55 or periodicals included in the numerator of the receipts fraction shall
56 be determined by multiplying the total of such receipts by a fraction,
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1 the numerator of which shall be the number of newspapers and periodicals
2 delivered to points within the city and the denominator of which shall
3 be the number of newspapers and periodicals delivered to points within
4 and without the city. The total of such receipts from sales of advertis-
5 ing in newspapers or periodicals shall be included in the denominator of
6 the receipts fraction.
7 (b) The amount of receipts from sales of advertising on television or
8 radio included in the receipts fraction shall be determined by multiply-
9 ing the total of such receipts by a fraction, the numerator of which
10 shall be the number of viewers or listeners within the city and the
11 denominator of which shall be the number of viewers or listeners within
12 and without the city. The total of such receipts from sales of adver-
13 tising on television or radio shall be included in the denominator of
14 the receipts fraction.
15 (c) The amount of receipts from sales of advertising not described in
16 paragraph (a) or (b) of this subdivision that is furnished, provided or
17 delivered to, or accessed by the viewer or listener through the use of
18 wire, cable, fiber-optic, laser, microwave, radio wave, satellite or
19 similar successor media or any combination thereof, included in the
20 numerator of the receipts fraction shall be determined by multiplying
21 the total of such receipts by a fraction, the numerator of which shall
22 be the number of viewers or listeners within the city and the denomina-
23 tor of which shall be the number of viewers or listeners within and
24 without the city. The total of such receipts from sales of advertising
25 described in this paragraph shall be included in the denominator of the
26 receipts fraction.
27 9. Receipts from the transportation or transmission of gas through
28 pipes shall be included in the numerator of the receipts fraction as
29 follows. The amount of receipts from the transportation or transmission
30 of gas through pipes included in the numerator of the receipts fraction
31 shall be determined by multiplying the total amount of such receipts by
32 a fraction, the numerator of which shall be the taxpayer's transporta-
33 tion units within the city and the denominator of which shall be the
34 taxpayer's transportation units within and without the city. A transpor-
35 tation unit is the transportation of one cubic foot of gas over a
36 distance of one mile. The total amount of receipts from the transporta-
37 tion or transmission of gas through pipes shall be included in the
38 denominator of the receipts fraction.
39 10. (a) Receipts from services not addressed in subdivisions one
40 through nine or subdivision twelve of this section and other business
41 receipts not addressed in such subdivisions shall be included in the
42 numerator of the receipts fraction if the location of the customer is
43 within the city. Such receipts from customers within and without the
44 city shall be included in the denominator of the receipts fraction.
45 Whether the receipts are included in the numerator of the receipts frac-
46 tion shall be determined according to the hierarchy of methods set forth
47 in paragraph (b) of this subdivision. The taxpayer must exercise due
48 diligence under each method described in such paragraph before rejecting
49 it and proceeding to the next method in the hierarchy, and must base its
50 determination on information known to the taxpayer or information that
51 would be known to the taxpayer upon reasonable inquiry.
52 (b) The hierarchy of methods is as follows: (1) the benefit is
53 received in the city; (2) delivery destination; (3) the receipts frac-
54 tion for such receipts within the city determined pursuant to this
55 subdivision for the preceding taxable year; or (4) the receipts fraction
56 in the current taxable year determined pursuant to this subdivision for
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1 those receipts that can be sourced using the hierarchy of sourcing meth-
2 ods in subparagraphs one and two of this paragraph.
3 11. If it shall appear that the receipts fraction determined pursuant
4 to this section does not result in a proper reflection of the taxpayer's
5 business income or capital within the city, the commissioner of finance
6 is authorized in his or her discretion to adjust it, or the taxpayer may
7 request that the commissioner of finance adjust it, by (a) excluding one
8 or more items in such determination, (b) including one or more other
9 items in such determination, or (c) any other similar or different meth-
10 od calculated to effect a fair and proper apportionment of the business
11 income and capital reasonably attributed to the city. The party seeking
12 the adjustment shall bear the burden of proof to demonstrate that the
13 receipts fraction determined pursuant to this section does not result in
14 a proper reflection of the taxpayer's business income or capital within
15 the city and that the proposed adjustment is appropriate.
16 12. Receipts from the operation of vessels shall be included in the
17 numerator of the receipts fraction as follows. The amount of receipts
18 from the operation of vessels included in the numerator of the receipts
19 fraction shall be determined by multiplying the amount of such receipts
20 by a fraction, the numerator of which shall be the aggregate number of
21 working days of the vessels owned or leased by the taxpayer in territo-
22 rial waters of the city during the period covered by the taxpayer's
23 report and the denominator of which shall be the aggregate number of
24 working days of all vessels owned or leased by the taxpayer during such
25 period. Receipts from the operation of vessels shall be included in the
26 denominator of the receipts fraction.
27 § 11-654.3 Combined reports. 1. (a) The tax on a combined report shall
28 be the highest of (1) the combined business income multiplied by the tax
29 rate specified in clause (i) of subparagraph one of paragraph (e) of
30 subdivision one of section 11-654 of this subchapter; (2) the combined
31 capital multiplied by the tax rate specified in clause (ii) of subpara-
32 graph one of paragraph (e) of subdivision one of section 11-654 of this
33 subchapter, but not exceeding the limitation provided for in such clause
34 (ii); or (3) the fixed dollar minimum that is attributable to the desig-
35 nated agent of the combined group. In addition, the tax on a combined
36 report shall include the fixed dollar minimum tax specified in clause
37 (iv) of subparagraph one of paragraph (e) of subdivision one of section
38 11-654 of this subchapter for each member of the combined group, other
39 than the designated agent, that is a taxpayer.
40 (b) The combined business income base is the amount of the combined
41 business income of the combined group that is allocated to the city,
42 reduced by any prior net operating loss conversion subtraction and any
43 net operating loss deduction for the combined group. The combined capi-
44 tal base is the amount of the combined capital of the combined group
45 that is allocated to the city.
46 2. (a) Except as provided in paragraph (c) of this subdivision, any
47 taxpayer (1) which owns or controls either directly or indirectly more
48 than fifty percent of the voting power of the capital stock of one or
49 more other corporations, or (2) more than fifty percent of the voting
50 power of the capital stock of which is owned or controlled either
51 directly or indirectly by one or more other corporations, or (3) more
52 than fifty percent of the voting power of the capital stock of which and
53 the capital stock of one or more other corporations, is owned or
54 controlled, directly or indirectly, by the same interests, and (4) that
55 is engaged in a unitary business with those corporations (hereinafter
A. 6009 160
1 referred to as "related corporations"), shall make a combined report
2 with those other corporations.
3 (b) A corporation required to make a combined report within the mean-
4 ing of this section shall also include (1) a captive REIT and a captive
5 RIC; (2) a combinable captive insurance company; and (3) an alien corpo-
6 ration that satisfies the conditions in paragraph (a) of this subdivi-
7 sion if (i) under any provision of the internal revenue code, that
8 corporation is treated as a "domestic corporation" as defined in section
9 seven thousand seven hundred one of the internal revenue code, or (ii)
10 it has effectively connected income for the taxable year pursuant to
11 clause three of the opening paragraph of subdivision eight of section
12 11-652 of this subchapter.
13 (c) A corporation required or permitted to make a combined report
14 under this section does not include (1) a corporation that is taxable
15 under a tax imposed by subchapter two of this chapter or chapter eleven
16 of this title (except for a vendor of utility services that is taxable
17 under both chapter eleven of this title and this subchapter), or would
18 be taxable under a tax imposed by subchapter two of this chapter or
19 chapter eleven of this title (except for a vendor of utility services
20 that is taxable under both chapter eleven of this title and this
21 subchapter), or would have been taxable as an insurance corporation
22 under the former part IV, title R, chapter forty-six of the administra-
23 tive code as in effect on June thirtieth, nineteen hundred seventy-four;
24 (2) a REIT that is not a captive REIT, and a RIC that is not a captive
25 RIC; or (3) an alien corporation that under any provision of the inter-
26 nal revenue code is not treated as a "domestic corporation" as defined
27 in section seven thousand seven hundred one of such code and has no
28 effectively connected income for the taxable year pursuant to clause
29 three of the opening paragraph of subdivision eight of section 11-652 of
30 this subchapter. If a corporation is subject to tax under this subchap-
31 ter solely as a result of its ownership of a limited partner interest in
32 a limited partnership that is doing business, employing capital, owning
33 or leasing property, maintaining an office in this state, or deriving
34 receipts from activity in this state, and none of the corporation's
35 related corporations are subject to tax under this subchapter, such
36 corporation shall not be required or permitted to file a combined report
37 under this section with such related corporations.
38 (d) A combined report shall be filed by the designated agent of the
39 combined group as determined under subdivision seven of this section.
40 3. (a) Subject to the provisions of paragraph (c) of subdivision two
41 of this section, a taxpayer may elect to treat as its combined group all
42 corporations that meet the ownership requirements described in paragraph
43 (a) of subdivision two of this section (such corporations collectively
44 referred to in this subdivision as the "commonly owned group"). If that
45 election is made, the commonly owned group shall calculate the combined
46 business income, combined capital, and fixed dollar minimum amount of
47 all members of the group in accordance with paragraph four of this
48 subdivision, whether or not that business income or business capital is
49 from a single unitary business.
50 (b) The election under this subdivision shall be made on an original,
51 timely filed return of the combined group. Any corporation entering a
52 commonly owned group subsequent to the year of election shall be
53 included in the combined group and is considered to have waived any
54 objection to its inclusion in the combined group.
55 (c) The election shall be irrevocable, and binding for and applicable
56 to the taxable year for which it is made and for the next six taxable
A. 6009 161
1 years. The election will automatically be renewed for another seven
2 taxable years after it has been in effect for seven taxable years unless
3 it is affirmatively revoked. The revocation shall be made on an
4 original, timely filed return for the first taxable year after the
5 completion of a seven year period for which an election under this
6 subdivision was in place. In the case of a revocation, a new election
7 under this subdivision shall not be permitted in any of the immediately
8 following three taxable years. In determining the seven and three year
9 periods described in this paragraph, short taxable years shall not be
10 considered or counted.
11 4. (a) In computing the tax bases for a combined report, the combined
12 group shall generally be treated as a single corporation, except as
13 otherwise provided, and subject to any regulations or guidance issued by
14 the commissioner of finance or the department of finance.
15 (b)(1) In computing combined business income, all intercorporate divi-
16 dends shall be eliminated, and all other intercorporate transactions
17 shall be deferred in a manner similar to the United States Treasury
18 regulations relating to intercompany transactions under section fifteen
19 hundred two of the internal revenue code.
20 (2) In computing combined capital, all intercorporate stockholdings,
21 intercorporate bills, intercorporate notes receivable and payable,
22 intercorporate accounts receivable and payable, and other intercorporate
23 indebtedness, shall be eliminated.
24 (c) Qualification for credits, including any limitations thereon,
25 shall be determined separately for each of the members of the combined
26 group, and shall not be determined on a combined group basis, except as
27 otherwise provided. However, the credits shall be applied against the
28 combined tax of the group. To the extent that a provision of section
29 11-654 of this subchapter, or any other applicable section of this
30 subchapter, limits a credit to the fixed dollar minimum amount
31 prescribed in clause (iv) of subparagraph one of paragraph (e) of subdi-
32 vision one of section 11-654 of this subchapter, such fixed dollar mini-
33 mum amount shall be the fixed dollar minimum amount that is attributable
34 to the designated agent of the combined group.
35 (d)(1) A net operating loss deduction is allowed in computing the
36 combined business income base. Such deduction may reduce the tax on the
37 combined business income base to the higher of the tax on the combined
38 capital or the fixed dollar minimum amount that is attributable to the
39 designated agent of the combined group and the members of the combined
40 group. A combined net operating loss deduction is equal to the amount of
41 combined net operating loss or losses from one or more taxable years
42 that are carried forward or carried back to a particular taxable year. A
43 combined net operating loss is the combined business loss incurred in a
44 particular taxable year multiplied by the combined business allocation
45 percentage for that year determined as provided in subdivision five of
46 this section.
47 (2) The combined net operating loss deduction and combined net operat-
48 ing loss are also subject to the provisions contained in paragraphs (a)
49 through (g) of subdivision three of section 11-654.1 of this subchapter.
50 (3) In the case of a corporation that files a combined report, either
51 in the year the net operating loss is incurred or in the year in which a
52 deduction is claimed on account of the loss, the combined net operating
53 loss deduction is determined as if the combined group is a single corpo-
54 ration and, to the extent possible and not otherwise inconsistent with
55 this subdivision, is subject to the same limitations that would apply
56 for federal income tax purposes under the internal revenue code and the
A. 6009 162
1 code of federal regulations as if such corporation had filed for such
2 taxable year a consolidated federal income tax return with the same
3 corporations included in the combined report. If a corporation files a
4 combined report, regardless of whether it filed a separate return or
5 consolidated return for federal income tax purposes, the net operating
6 loss and net operating loss deduction for the combined group must be
7 computed as if the corporation had filed a consolidated return for the
8 same corporations for federal income tax purposes.
9 (4) In general, any net operating loss carryover from a year in which
10 a combined report was filed shall be based on the combined net operating
11 loss of the group of corporations filing such report. The portion of the
12 combined loss attributable to any member of the group that files a sepa-
13 rate report for a succeeding taxable year will be an amount bearing the
14 same relation to the combined loss as the net operating loss of such
15 corporation bears to the total net operating loss of all members of the
16 group having such losses to the extent that they are taken into account
17 in computing the combined net operating loss.
18 (d-1) A prior net operating loss conversion subtraction is allowed in
19 computing the combined business income base, as provided in subdivisions
20 one and two of section 11-654.1 of this subchapter. Such subtraction may
21 reduce the tax on combined business income to the higher of the tax on
22 combined capital or the fixed dollar minimum amount that is attributable
23 to the designated agent of the combined group and the members of the
24 combined group.
25 (e) Any election made pursuant to paragraph (b) of subdivision five,
26 paragraphs (b) and (c) of subdivision five-a of section 11-652 of this
27 subchapter, and paragraph (d) of subdivision three of section 11-654.1
28 of this subchapter shall apply to all members of the combined group.
29 (f)(1) In the case of a captive REIT or captive RIC required under
30 this section to be included in a combined report, entire net income
31 shall be computed as required under subdivision seven (in the case of a
32 captive REIT) or subdivision eight (in the case of a captive RIC) of
33 section 11-653 of this subchapter. However, the deduction under the
34 internal revenue code for dividends paid by the captive REIT or captive
35 RIC to any member of the affiliated group that includes the corporation
36 that directly or indirectly owns over fifty percent of the voting stock
37 of the captive REIT or captive RIC shall not be allowed. For purposes
38 of this subparagraph, the term "affiliated group" means "affiliated
39 group" as defined in section fifteen hundred four of the internal reven-
40 ue code, but without regard to the exceptions provided for in subsection
41 (b) of that section.
42 (2) In the case of a combinable captive insurance company required
43 under this section to be included in a combined report, entire net
44 income shall be computed as required by subdivision eight of section
45 11-652 of this subchapter.
46 (g) If more than one member of a combined group is eligible for any of
47 the modifications described in paragraphs (q), (r) or (s) of subdivision
48 eight of section 11-652 of this subchapter, all such members must
49 utilize the same modification.
50 5. (a) In determining the business allocation percentage for a
51 combined report, the receipts, net income, net gains and other items of
52 each member of the combined group, whether or not they are a taxpayer,
53 are included and intercorporate receipts, income and gains are elimi-
54 nated. Receipts, net income, net gains and other items are sourced, and
55 the amounts allowed in the receipts fraction are determined, as provided
56 in section 11-654.2 of this subchapter.
A. 6009 163
1 (b) An election made to allocate income and gains from qualifying
2 financial instruments pursuant to subparagraph one of paragraph (a) of
3 subdivision five of section 11-654.2 of this subchapter shall apply to
4 all members of the combined group.
5 6. Every member of the combined group that is subject to tax under
6 this article shall be jointly and severally liable for the tax due
7 pursuant to a combined report.
8 7. Each combined group shall appoint a designated agent for the
9 combined group, which shall be a taxpayer. Only the designated agent may
10 act on behalf of the members of the combined group for matters relating
11 to the combined report.
12 § 11-655 Reports. 1. Every corporation having an officer, agent or
13 representative within the city, shall annually on or before March
14 fifteenth, transmit to the commissioner of finance a report in a form
15 prescribed by the commissioner of finance (except that a corporation
16 which reports on the basis of a fiscal year shall transmit its report
17 within two and one-half months after the close of its fiscal year),
18 setting forth such information as the commissioner of finance may
19 prescribe and every taxpayer which ceases to do business in the city or
20 to be subject to the tax imposed by this subchapter shall transmit to
21 the commissioner of finance a report on the date of such cessation or at
22 such other time as the commissioner of finance may require covering each
23 year or period for which no report was theretofore filed. Every taxpayer
24 shall also transmit such other reports and such facts and information as
25 the commissioner of finance may require in the administration of this
26 subchapter. The commissioner of finance may grant a reasonable extension
27 of time for filing reports whenever good cause exists.
28 An automatic extension of six months for the filing of its annual
29 report shall be allowed any taxpayer if, within the time prescribed by
30 either of the preceding paragraphs, whichever is applicable, such
31 taxpayer files with the commissioner of finance an application for
32 extension in such form as the commissioner of finance may prescribe by
33 regulation and pays on or before the date of such filing the amount
34 properly estimated as its tax.
35 2. Every report shall have annexed thereto a certification by the
36 president, vice-president, treasurer, assistant treasurer, chief
37 accounting officer or another officer of the taxpayer duly authorized so
38 to act to the effect that the statements contained therein are true. In
39 the case of an association, within the meaning of paragraph three of
40 section (a) of section seventy-seven hundred one of the internal revenue
41 code, a publicly-traded partnership treated as a corporation for
42 purposes of the internal revenue code pursuant to section seventy-seven
43 hundred four thereof and any business conducted by a trustee or trustees
44 wherein interest or ownership is evidenced by certificates or other
45 written instruments, such certification shall be made by any person duly
46 authorized so to act on behalf of such association, publicly-traded
47 partnership or business. The fact that an individual's name is signed on
48 a certification of the report shall be prima facie evidence that such
49 individual is authorized to sign and certify the report on behalf of the
50 corporation. Blank forms of reports shall be furnished by the commis-
51 sioner of finance, on application, but failure to secure such a blank
52 shall not release any corporation from the obligation of making any
53 report required by this subchapter.
54 2-a. The commissioner of finance may prescribe regulations and
55 instructions requiring returns of information to be made and filed in
56 conjunction with the reports required to be filed pursuant to this
A. 6009 164
1 section, relating to payments made to shareholders owning, directly or
2 indirectly, individually or in the aggregate, more than fifty percent of
3 the issued capital stock of the taxpayer, where such payments are treat-
4 ed as payments of interest in the computation of entire net income
5 reported on such reports.
6 3. If the amount of taxable income or other basis of tax for any year
7 of any taxpayer as returned to the United States treasury department or
8 the New York state commissioner of taxation and finance is changed or
9 corrected by the commissioner of internal revenue or other officer of
10 the United States or the New York state commissioner of taxation and
11 finance or other competent authority, or where a renegotiation of a
12 contract or subcontract with the United States or the state of New York
13 results in a change in taxable income or other basis of tax, or where a
14 recovery of a war loss results in a computation or recomputation of any
15 tax imposed by the United States or the state of New York, or if a
16 taxpayer, pursuant to subsection (d) of section sixty-two hundred thir-
17 teen of the internal revenue code, executes a notice of waiver of the
18 restrictions provided in subsection (a) of said section, or if a taxpay-
19 er, pursuant to subsection (f) of section one thousand eighty-one of the
20 tax law, executes a notice of waiver of the restrictions provided in
21 subsection (c) of said section, such taxpayer shall report such changed
22 or corrected taxable income or other basis of tax, or the results of
23 such renegotiation, or such computation, or recomputation, or such
24 execution of such notice of waiver and the changes or corrections of the
25 taxpayer's federal or New York state taxable income or other basis of
26 tax on which it is based, within ninety days (or one hundred twenty
27 days, in the case of a taxpayer making a combined report under this
28 subchapter for such year) after such execution or the final determi-
29 nation of such change or correction or renegotiation, or such computa-
30 tion, or recomputation, or as required by the commissioner of finance,
31 and shall concede the accuracy of such determination or state wherein it
32 is erroneous. The allowance of a tentative carryback adjustment based
33 upon a net operating loss carryback or net capital loss carryback pursu-
34 ant to section sixty-four hundred eleven of the internal revenue code
35 shall be treated as a final determination for purposes of this subdivi-
36 sion. Any taxpayer filing an amended return with such department shall
37 also file within ninety days (or one hundred twenty days, in the case of
38 a taxpayer making a combined report under this subchapter for such year)
39 thereafter an amended report with the commissioner of finance.
40 4. The provisions of section 11-654.3 of this subchapter shall apply
41 to combined reports.
42 5. In case it shall appear to the commissioner of finance that any
43 agreement, understanding or arrangement exists between the taxpayer and
44 any other corporation or any person or firm, whereby the activity, busi-
45 ness, income or capital of the taxpayer within the city is improperly or
46 inaccurately reflected, the commissioner of finance is authorized and
47 empowered, in its discretion and in such manner as it may determine, to
48 adjust items of income, deductions and capital, and to eliminate assets
49 in computing any allocation percentage provided only that any income
50 directly traceable thereto be also excluded from entire net income, so
51 as equitably to determine the tax. Where (a) any taxpayer conducts its
52 activity or business under any agreement, arrangement or understanding
53 in such manner as either directly or indirectly to benefit its members
54 or stockholders, or any of them, or any person or persons directly or
55 indirectly interested in such activity or business, by entering into any
56 transaction at more or less than a fair price which, but for such agree-
A. 6009 165
1 ment, arrangement or understanding, might have been paid or received
2 therefor, or (b) any taxpayer, a substantial portion of whose capital
3 stock is owned either directly or indirectly by another corporation,
4 enters into any transaction with such other corporation on such terms as
5 to create an improper loss or net income, the commissioner of finance
6 may include in the entire net income of the taxpayer the fair profits,
7 which, but for such agreement, arrangement or understanding, the taxpay-
8 er might have derived from such transaction. Where any taxpayer owns,
9 directly or indirectly, more than fifty percent of the capital stock of
10 another corporation subject to tax under section fifteen hundred two-a
11 of the tax law and fifty percent or less of whose gross receipts for the
12 taxable year consist of premiums, the commissioner of finance may
13 include in the entire net income of the taxpayer, as a deemed distrib-
14 ution, the amount of the net income of the other corporation that is in
15 excess of its net premium income.
16 6. An action may be brought at any time by the corporation counsel at
17 the instance of the commissioner of finance to compel the filing of
18 reports due under this subchapter.
19 7. Reports shall be preserved for five years, and thereafter until the
20 commissioner of finance orders them to be destroyed.
21 8. Where the state tax commission changes or corrects a taxpayer's
22 sales and compensating use tax liability with respect to the purchase or
23 use of items for which a sales or compensating use tax credit against
24 the tax imposed by this subchapter was claimed, the taxpayer shall
25 report such change or correction to the commissioner of finance within
26 ninety days of the final determination of such change or correction, or
27 as required by the commissioner of finance, and shall concede the accu-
28 racy of such determination or state wherein it is erroneous. Any taxpay-
29 er filing an amended return or report relating to the purchase or use of
30 such items shall also file within ninety days thereafter a copy of such
31 amended return or report with the commissioner of finance.
32 § 11-656 Payment and lien of tax. 1. To the extent the tax imposed by
33 section 11-653 of this subchapter shall not have been previously paid
34 pursuant to section 11-658 of this subchapter:
35 (a) such tax, or the balance thereof, shall be payable to the commis-
36 sioner of finance in full at the time the report is required to be
37 filed; and
38 (b) such tax, or the balance thereof, imposed on any taxpayer which
39 ceases to do business in the city or to be subject to the tax imposed by
40 this subchapter shall be payable to the commissioner of finance at the
41 time the report is required to be filed; all other taxes of any such
42 taxpayer, which pursuant to the foregoing provisions of this section
43 would otherwise be payable subsequent to the time such report is
44 required to be filed, shall nevertheless be payable at such time.
45 If the taxpayer, within the time prescribed by section 11-655 of this
46 subchapter, shall have applied for an automatic extension of time to
47 file its annual report and shall have paid to the commissioner of
48 finance on or before the date such application is filed an amount prop-
49 erly estimated as provided by said section, the only amount payable in
50 addition to the tax shall be interest at the underpayment rate set by
51 the commissioner of finance pursuant to section 11-687 of this chapter,
52 or, if no rate is set, at the rate of seven and one-half percent per
53 annum upon the amount by which the tax, or the portion thereof payable
54 on or before the date the report was required to be filed, exceeds the
55 amount so paid. For purposes of the preceding sentence:
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1 (1) an amount so paid shall be deemed properly estimated if it is
2 either: (i) not less than ninety percent of the tax as finally deter-
3 mined, or (ii) not less than the tax shown on the taxpayer's report for
4 the preceding taxable year, if such preceding year was a taxable year of
5 twelve months; and
6 (2) the time when a report is required to be filed shall be determined
7 without regard to any extension of time for filing such report.
8 2. The commissioner of finance may grant a reasonable extension of
9 time for payment of any tax imposed by this subchapter under such condi-
10 tions as the commissioner of finance deems just and proper.
11 3. Intentionally omitted.
12 § 11-657 Declaration of estimated tax. 1. Every taxpayer subject to
13 the tax imposed by section 11-653 of this subchapter shall make a decla-
14 ration of its estimated tax for the current privilege period, containing
15 such information as the commissioner of finance may prescribe by regu-
16 lations or instructions, if such estimated tax can reasonably be
17 expected to exceed one thousand dollars.
18 2. The term "estimated tax" means the amount which a taxpayer esti-
19 mates to be the tax imposed by section 11-653 of this subchapter for the
20 current privilege period, less the amount which it estimates to be the
21 sum of any credits allowable against the tax.
22 3. In the case of a taxpayer which reports on the basis of a calendar
23 year, a declaration of estimated tax shall be filed on or before June
24 fifteenth of the current privilege period, except that if the require-
25 ments of subdivision one of this section are first met:
26 (a) after May thirty-first and before September first of such current
27 privilege period, the declaration shall be filed on or before September
28 fifteenth; or
29 (b) after August thirty-first and before December first of such
30 current privilege period, the declaration shall be filed on or before
31 December fifteenth.
32 4. A taxpayer may amend a declaration under regulations of the commis-
33 sioner of finance.
34 5. If, on or before February fifteenth of the succeeding year in the
35 case of a taxpayer which reports on the basis of a calendar year, a
36 taxpayer files its report for the year for which the declaration is
37 required, and pays therewith the balance, if any, of the full amount of
38 the tax shown to be due on the report:
39 (a) such report shall be considered as its declaration if no declara-
40 tion is required to be filed during the calendar or fiscal year for
41 which the tax was imposed, but is otherwise required to be filed on or
42 before December fifteenth pursuant to subdivision three of this section;
43 and
44 (b) such report shall be considered as the amendment permitted by
45 subdivision four of this section to be filed on or before December
46 fifteenth if the tax shown on the report is greater than the estimated
47 tax shown on a declaration previously made.
48 6. This section shall apply to privilege periods of twelve months
49 other than a calendar year by the substitution of the months of such
50 fiscal year for the corresponding months specified in this section.
51 7. If the privilege period for which a tax is imposed by section
52 11-653 of this subchapter is less than twelve months, every taxpayer
53 required to make a declaration of estimated tax for such privilege peri-
54 od shall make such a declaration in accordance with regulations of the
55 commissioner of finance.
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1 8. The commissioner of finance may grant a reasonable extension of
2 time, not to exceed three months, for the filing of any declaration
3 required pursuant to this section, on such terms and conditions as it
4 may require.
5 § 11-658 Payments on account of estimated tax. 1. Every taxpayer
6 subject to the tax imposed by section 11-653 of this subchapter shall
7 pay with the report required to be filed for the preceding privilege
8 period, if any, or with an application for extension of the time and
9 filing such report, an amount equal to twenty-five per centum of the
10 preceding year's tax if such preceding year's tax exceeded one thousand
11 dollars.
12 2. The estimated tax with respect to which a declaration for such
13 privilege period is required shall be paid, in the case of a taxpayer
14 which reports on the basis of a calendar year, as follows:
15 (a) If the declaration is filed on or before June fifteenth, the esti-
16 mated tax shown thereon, after applying thereto the amount, if any, paid
17 during the same privilege period pursuant to subdivision one of this
18 section, shall be paid in three equal installments. One of such install-
19 ments shall be paid at the time of the filing of the declaration, one
20 shall be paid on the following September fifteenth, and one on the
21 following December fifteenth.
22 (b) If the declaration is filed after June fifteenth and not after
23 September fifteenth of such privilege period, and is not required to be
24 filed on or before June fifteenth of such period, the estimated tax
25 shown on such declaration, after applying thereto the amount, if any,
26 paid during the same privilege period pursuant to subdivision one of
27 this section, shall be paid in two equal installments. One of such
28 installments shall be paid at the time of the filing of the declaration
29 and one shall be paid on the following December fifteenth.
30 (c) If the declaration is filed after September fifteenth of such
31 privilege period, and is not required to be filed on or before September
32 fifteenth of such privilege period, the estimated tax shown on such
33 declaration, after applying thereto the amount, if any, paid in respect
34 to such privilege period pursuant to subdivision one of this section,
35 shall be paid in full at the time of the filing of the declaration.
36 (d) If the declaration is filed after the time prescribed therefor, or
37 after the expiration of any extension of time therefor, paragraphs (b)
38 and (c) of this subdivision shall not apply, and there shall be paid at
39 the time of such filing all installments of estimated tax payable at or
40 before such time, and the remaining installments shall be paid at the
41 times at which, and in the amounts in which, they would have been paya-
42 ble if the declaration had been filed when due.
43 3. If any amendment of a declaration is filed, the remaining install-
44 ments, if any, shall be ratably increased or decreased (as the case may
45 be) to reflect any increase or decrease in the estimated tax by reason
46 of such amendment, and if any amendment is made after September
47 fifteenth of the privilege period, any increase in the estimated tax by
48 reason thereof shall be paid at the time of making such amendment.
49 4. Any amount paid shall be applied after payment as a first install-
50 ment against the estimated tax of the taxpayer for the current privilege
51 period shown on the declaration required to be filed pursuant to section
52 11-657 of this subchapter or, if no declaration of estimated tax is
53 required to be filed by the taxpayer pursuant to such section, any such
54 amount shall be considered a payment on account of the tax shown on the
55 report required to be filed by the taxpayer for such privilege period.
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1 5. Notwithstanding the provisions of section 11-679 of this chapter or
2 of section three-a of the general municipal law, if an amount paid
3 pursuant to subdivision one of this section exceeds the tax shown on the
4 report required to be filed by the taxpayer for the privilege period
5 during which the amount was paid, interest shall be allowed and paid on
6 the amount by which the amount so paid pursuant to such subdivision
7 exceeds such tax, at the overpayment rate set by the commissioner of
8 finance pursuant to section 11-687 of this chapter, or, if no rate is
9 set, at the rate of four percent per annum from the date of payment of
10 the amount so paid pursuant to such subdivision to the fifteenth day of
11 the third month following the close of the privilege period, provided,
12 however, that no interest shall be allowed or paid under this subdivi-
13 sion if the amount thereof is less than one dollar or if such interest
14 becomes payable solely because of a carryback of a net operating loss in
15 a subsequent privilege period.
16 6. As used in this section, "the preceding year's tax" means the tax
17 imposed upon the taxpayer by section 11-653 of this subchapter for the
18 preceding calendar or fiscal year, or, for purposes of computing the
19 first installment of estimated tax when an application has been filed
20 for extension of the time for filing the report required to be filed for
21 such preceding calendar or fiscal year, the amount properly estimated
22 pursuant to section 11-657 of this subchapter as the tax imposed upon
23 the taxpayer for such calendar or fiscal year.
24 7. This section shall apply to a privilege period of less than twelve
25 months in accordance with regulations of the commissioner of finance.
26 8. The provisions of this section shall apply to privilege periods of
27 twelve months other than a calendar year by the substitution of the
28 months of such fiscal year for the corresponding months specified in
29 such provisions.
30 9. The commissioner of finance may grant a reasonable extension of
31 time, not to exceed six months, for payment of any installment of esti-
32 mated tax required pursuant to this section, on such terms and condi-
33 tions as the commissioner of finance may require including the furnish-
34 ing of a bond or other security by the taxpayer in an amount not
35 exceeding twice the amount for which any extension of time for payment
36 is granted, provided however that interest at the underpayment rate set
37 by the commissioner of finance pursuant to section 11-687 of this
38 subchapter, or, if no rate is set, at the rate of seven and one-half
39 percent per annum for the period of the extension shall be charged and
40 collected on the amount for which any extension of time for payment is
41 granted under this subdivision.
42 10. A taxpayer may elect to pay any installment of estimated tax prior
43 to the date prescribed in this section for payment thereof.
44 11. Intentionally omitted.
45 § 11-659 Collection of taxes. Every foreign corporation (other than a
46 moneyed corporation) subject to the provisions of this subchapter,
47 except a corporation having authority to do business by virtue of
48 section thirteen hundred five of the business corporation law, shall
49 file in the department of state a certificate of designation in its
50 corporate name, signed and acknowledged by its president or a vice-pre-
51 sident or its secretary or treasurer, under its corporate seal, desig-
52 nating the secretary of state as its agent upon whom process in any
53 action provided for by this subchapter may be served within this state,
54 and setting forth an address to which the secretary of state shall mail
55 a copy of any such process against the corporation which may be served
56 upon the secretary of state. In case any such corporation shall have
A. 6009 169
1 failed to file such certificate of designation, it shall be deemed to
2 have designated the secretary of state as its agent upon whom such proc-
3 ess against it may be served; and until a certificate of designation
4 shall have been filed the corporation shall be deemed to have directed
5 the secretary of state to mail copies of process served upon him or her
6 to the corporation at its last known office address within or without
7 the state. When a certificate of designation has been filed by such
8 corporation the secretary of state shall mail copies of process there-
9 after served upon the secretary of state to the address set forth in
10 such certificate. Any such corporation, from time to time, may change
11 the address to which the secretary of state is directed to mail copies
12 of process, by filing a certificate to that effect executed, signed and
13 acknowledged in like manner as a certificate of designation as herein
14 provided. Service of process upon any such corporation or upon any
15 corporation having a certificate of authority under section eight
16 hundred five of the limited liability company law or having authority to
17 do business by virtue of section thirteen hundred five of the business
18 corporation law, in any action commenced at any time pursuant to the
19 provisions of this subchapter, may be made by either: (a) personally
20 delivering to and leaving with the secretary of state, a deputy secre-
21 tary of state or with any person authorized by the secretary of state to
22 receive such service duplicate copies thereof at the office of the
23 department of state in the city of Albany, in which event the secretary
24 of state shall forthwith send by registered mail, return receipt
25 requested, one of such copies to the corporation at the address desig-
26 nated by it or at its last known office address within or without the
27 state, or (b) personally delivering to and leaving with the secretary of
28 state, a deputy secretary of state or with any person authorized by the
29 secretary of state to receive such service, a copy thereof at the office
30 of the department of state in the city of Albany and by delivering a
31 copy thereof to, and leaving such copy with, the president, vice-presi-
32 dent, secretary, assistant secretary, treasurer, assistant treasurer, or
33 cashier of such corporation, or the officer performing corresponding
34 functions under another name, or a director or managing agent of such
35 corporation, personally without the state. Proof of such personal
36 service without the state shall be filed with the clerk of the court in
37 which the action is pending within thirty days after such service, and
38 such service shall be complete ten days after proof thereof is filed.
39 § 11-660 Limitations of time. The provisions of the civil practice law
40 and rules relative to the limitation of time enforcing a civil remedy
41 shall not apply to any proceeding or action taken to levy, appraise,
42 assess, determine or enforce the collection of any tax or penalty
43 prescribed by this subchapter, provided, however, that as to real estate
44 in the hands of persons who are owners thereof who would be purchasers
45 in good faith but for such tax or penalty and as to the lien on real
46 estate of mortgages held by persons who would be holders thereof in good
47 faith but for such tax or penalty, all such taxes and penalties shall
48 cease to be a lien on such real estate as against such purchasers or
49 holders after the expiration of ten years from the date such taxes
50 became due and payable. The limitations herein provided for shall not
51 apply to any transfer from a corporation to a person or corporation with
52 intent to avoid payment of any taxes, or where with like intent the
53 transfer is made to a grantee corporation, or any subsequent grantee
54 corporation, controlled by such grantor or which has any community of
55 interest with it, either through stock ownership or otherwise.
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1 § 2. Subparagraph (A) of paragraph 2 of subdivision (f) of section
2 11-508 of the administrative code of the city of New York, as added by
3 chapter 485 of the laws of 1994, is amended to read as follows:
4 (A) In the case of an issuer or obligor subject to tax under subchap-
5 ter two or three-A of chapter six of this title, or subject to tax as a
6 utility corporation under chapter eleven of this title, the issuer's
7 allocation percentage shall be the percentage of the appropriate measure
8 (as defined hereinafter) which is required to be allocated within the
9 city on the report or reports, if any, required of the issuer or obligor
10 under chapter six or eleven of this title for the preceding year. The
11 appropriate measure referred to in the preceding sentence shall be: in
12 the case of an issuer or obligor subject to subchapter two or three-A of
13 chapter six of this title, entire capital; and in the case of an issuer
14 or obligor subject to chapter eleven of this title as a utility corpo-
15 ration, gross income.
16 § 3. The administrative code of the city of New York is amended by
17 adding a new section 11-602.1 to read as follows:
18 § 11-602.1 Application of this subchapter. 1. For taxable years begin-
19 ning on or after January first, two thousand fifteen, the tax imposed
20 under this subchapter shall only apply to a corporation that (a) has an
21 election in effect under subsection (a) of section thirteen hundred
22 sixty-two of the internal revenue code of 1986, as amended, or (b) is a
23 qualified subchapter S subsidiary within the meaning of paragraph three
24 of subsection (b) of section thirteen hundred sixty-one of the internal
25 revenue code of 1986, as amended.
26 2. For taxable years beginning on or after January first, two thousand
27 fifteen, the tax imposed under this subchapter shall not apply to a
28 corporation that is not described in subdivision one of this section
29 except to the extent provided in subchapter three-A of this chapter.
30 3. Cross-Reference. For the taxation of corporations that are not
31 described in subdivision one of this section, that were taxable under
32 this subchapter for tax years beginning before January first, two thou-
33 sand fifteen, see subchapter three-A of this chapter.
34 § 4. Subdivision (a) of section 11-639 of the administrative code of
35 the city of New York is amended to read as follows:
36 (a) (1) For the privilege of doing business in the city in a corporate
37 or organized capacity, a tax, computed under section 11-643 of this
38 part, is hereby annually imposed on every banking corporation for each
39 of its taxable years, or any part thereof, beginning on or after January
40 first, nineteen hundred seventy-three and ending December thirty-first,
41 two thousand fourteen.
42 (2) For the privilege of doing business in the city in a corporate or
43 organized capacity, a tax, computed under section 11-643 of this part,
44 is hereby annually imposed on every banking corporation for each taxable
45 year, or any part thereof, commencing on or after January first, two
46 thousand fifteen, where such banking corporation (i) has an election in
47 effect under subsection (a) of section thirteen hundred sixty-two of the
48 internal revenue code of 1986, as amended, or (ii) is a qualified
49 subchapter S subsidiary within the meaning of paragraph three of
50 subsection (b) of section thirteen hundred sixty-one of the internal
51 revenue code of 1986, as amended.
52 § 5. Section 11-639 of the administrative code of the city of New York
53 is amended by adding a new subdivision (d) to read as follows:
54 (d) Cross-Reference. For the taxation of corporations that are not
55 described in paragraph two of subdivision (a) of this section, that were
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1 taxable under this subchapter for tax years beginning before January
2 first, two thousand fifteen, see subchapter three-A of this chapter.
3 § 6. Paragraph 2 of subdivision (b) of section 11-641 of the adminis-
4 trative code of the city of New York, as amended by chapter 525 of the
5 laws of 1988, is amended to read as follows:
6 (2) taxes on or measured by income or profits paid or accrued within
7 the taxable year to the United States, or any of its possessions or to
8 any foreign country and taxes imposed under article nine, nine-A, thir-
9 teen-A or thirty-two of the tax law as in effect on December thirty-
10 first, two thousand fourteen and any tax imposed under this part or
11 subchapter two or three-A of this chapter;
12 § 7. Subdivision 1 and paragraph (a) of subdivision 2 of section
13 11-671 of the administrative code of the city of New York are amended to
14 read as follows:
15 1. General. The provisions of this subchapter shall apply to the
16 administration of and the procedures with respect to the taxes imposed
17 by subchapters two, three, three-A and four of this chapter.
18 (a) the term "named subchapters" means subchapters two, threeor
19 three-A and four of this chapter;
20 § 8. Paragraph (a) of subdivision 5 and subdivisions 7, 8 and 9 of
21 section 11-672 of the administrative code of the city of New York, para-
22 graph (a) of subdivision 5 as amended by chapter 525 of the laws of
23 1988, and paragraph (b) of subdivision 9 as amended by chapter 808 of
24 the laws of 1992, are amended to read as follows:
25 (a) If the taxpayer fails to comply with subchapter two [or], three or
26 three-A of this chapter in not reporting a change or correction or rene-
27 gotiation, or computation or recomputation of tax, increasing or
28 decreasing its federal or New York state taxable income, alternative
29 minimum taxable income or other basis of tax as reported on its federal
30 or New York state income tax return or in not reporting a change or
31 correction or renegotiation, or computation or recomputation of tax,
32 which is treated in the same manner as if it were a deficiency for
33 federal or New York state income tax purposes or in not filing an
34 amended return or in not reporting the execution of a notice of waiver
35 executed pursuant to subsection (d) of section six thousand two hundred
36 thirteen of the internal revenue code or pursuant to subdivision (f) of
37 section one thousand eighty-one of the tax law, instead of the mode and
38 time of assessment provided for in subdivision two of this section, the
39 commissioner of finance may assess a deficiency based upon such
40 increased or decreased federal or New York state taxable income, alter-
41 native minimum taxable income or other basis of tax by mailing to the
42 taxpayer a notice of additional tax due specifying the amount of the
43 deficiency, and such deficiency, together with the interest, additions
44 to tax and penalties stated in such notice, shall be deemed assessed on
45 the date such notice is mailed unless within thirty days after the mail-
46 ing of such notice a report of the federal or New York state change or
47 correction or renegotiation, or computation or recomputation of tax, or
48 an amended return, where such return was required by subchapter two
49 [or], three or three-A, is filed accompanied by a statement showing
50 wherein such federal or New York state determination and such notice of
51 additional tax due are erroneous.
52 7. Two or more corporations. In case of a combined return under
53 subchapter two or three-A or a consolidated return under subchapter
54 three of two or more corporations, the commissioner of finance may
55 determine a deficiency of tax under subchapter two [or subchapter],
56 three or three-A of this chapter with respect to the entire tax due upon
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1 such return against any taxpayer included therein. In the case of a
2 taxpayer which might have been included in such a return under subchap-
3 ter two [or subchapter], three or three-A of this chapter when the tax
4 was originally reported, the commissioner of finance may determine a
5 deficiency of tax under subchapter two [or], three or three-A of this
6 chapter against such taxpayer and against any other taxpayers which
7 might have been included in such a return.
8 8. Deficiency defined. For the purposes of this subchapter, a defi-
9 ciency means the amount of the tax imposed by the named subchapters, or
10 any of them, less: (a) the amount shown as the tax upon the taxpayer's
11 return (whether the return was made or the tax computed by it or by the
12 commissioner of finance), and less (b) the amounts previously assessed
13 (or collected without assessment) as a deficiency and plus (c) the
14 amount of any rebates. For the purpose of this definition, the tax
15 imposed by subchapter two [or], three or three-A of this chapter and the
16 tax shown on the return shall both be determined without regard to any
17 payment of estimated tax; and a rebate means so much of an abatement,
18 credit, refund or other repayment (whether or not erroneous) as was made
19 on the ground that the amounts entering into the definition of a defi-
20 ciency showed a balance in favor of the taxpayer.
21 9. Exception where change or correction of sales and compensating use
22 tax liability is not reported.
23 (a) If a taxpayer fails to comply with subchapter two or three-A of
24 this chapter in not reporting a change or correction of its sales and
25 compensating use tax liability or in not filing a copy of an amended
26 return or report relating to its sales and compensating use tax liabil-
27 ity, instead of the mode and time of assessment provided for in subdivi-
28 sion two of this section, the commissioner of finance may assess a defi-
29 ciency based upon such changed or corrected sales and compensating use
30 tax liability, as same relates to credits claimed under subchapter two
31 or three-A of this chapter, by mailing to the taxpayer a notice of addi-
32 tional tax due specifying the amount of the deficiency, and such defi-
33 ciency, together with the interest, additions to tax and penalties stat-
34 ed in such notice, shall be deemed assessed on the date such notice is
35 mailed unless within thirty days after the mailing of such notice a
36 report of the state change or correction or a copy of an amended return
37 or report, where such copy was required by subchapter two or three-A, is
38 filed accompanied by a statement showing wherein such state determi-
39 nation and such notice of additional tax due are erroneous.
40 (b) Such notice shall not be considered as a notice of deficiency for
41 the purposes of this section, subdivision six of section 11-678 (limit-
42 ing credits or refunds after petition to the tax appeals tribunal), or
43 subdivision two of section 11-680 (authorizing the filing of a petition
44 with the tax appeals tribunal based on a notice of deficiency), nor
45 shall such assessment or the collection thereof be prohibited by the
46 provisions of subdivision three of this section.
47 (c) If the taxpayer has terminated its existence, a notice of addi-
48 tional tax due may be mailed to its last known address in or out of the
49 city, and such notice shall be sufficient for purposes of this subchap-
50 ter. If the commissioner of finance has received notice that a person is
51 acting for the taxpayer in a fiduciary capacity, a copy of such notice
52 shall also be mailed to the fiduciary named in such notice.
53 § 9. Subdivisions 1 and 3 of section 11-673 of the administrative code
54 of the city of New York, the first undesignated paragraph of subdivision
55 1 as amended by chapter 808 of the laws of 1992, are amended to read as
56 follows:
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1 1. Assessment date. The amount of tax which a return shows to be due,
2 or the amount of tax which a return would have shown to be due but for a
3 mathematical error, shall be deemed to be assessed on the date of filing
4 of the return (including any amended return showing an increase of tax).
5 If a notice of deficiency has been mailed, the amount of the deficiency
6 shall be deemed to be assessed on the date specified in subdivision two
7 of section 11-672 of this subchapter if no petition is both served on
8 the commissioner of finance and filed with the tax appeals tribunal, or
9 if a petition is so served and filed, then upon the date when a decision
10 of the tax appeals tribunal establishing the amount of the deficiency
11 becomes final. If a report or an amended return filed pursuant to
12 subchapter two [or], three or three-A of this chapter concedes the accu-
13 racy of a federal or New York state adjustment or change or correction
14 or renegotiation or computation or recomputation of tax, any deficiency
15 in tax under subchapter two [or], three or three-A of this chapter
16 resulting therefrom shall be deemed to be assessed on the date of filing
17 such report or amended return, and such assessment shall be timely
18 notwithstanding section 11-674 of this chapter.
19 If a report filed pursuant to subchapter two or three-A of this chap-
20 ter concedes the accuracy of a state change or correction of sales and
21 compensating use tax liability, any deficiency in tax under subchapter
22 two or three-A of this chapter resulting therefrom shall be deemed
23 assessed on the date of filing such report, and such assessment shall be
24 timely notwithstanding section 11-674 of this chapter.
25 If a notice of additional tax due, as prescribed in subdivision five
26 of section 11-672 of this chapter, has been mailed, the amount of the
27 deficiency shall be deemed to be assessed on the date specified in such
28 subdivision unless within thirty days after the mailing of such notice a
29 report of the federal or New York state adjustment or change or
30 correction or renegotiation or computation or recomputation of tax, or
31 an amended return, where such return was required by subchapter two
32 [or], three or three-A of this chapter, is filed accompanied by a state-
33 ment showing wherein such federal or New York state determination and
34 such notice of additional tax due are erroneous.
35 If a notice of additional tax due, as prescribed in subdivision nine
36 of section 11-672 of this subchapter, has been mailed, the amount of the
37 deficiency shall be deemed to be assessed on the date specified in such
38 subdivision unless within thirty days after the mailing of such notice a
39 report of the state change or correction, or a copy of an amended return
40 or report, where such copy was required by subchapter two or three-A of
41 this chapter, is filed accompanied by a statement showing wherein such
42 state determination and such notice of additional tax due are erroneous.
43 Any amount paid as a tax or in respect of a tax, other than amounts
44 paid as estimated tax, shall be deemed to be assessed upon the date of
45 receipt of payment notwithstanding any other provisions.
46 3. Estimated tax. No unpaid amount of estimated tax under subchapter
47 two [or], three or three-A of this chapter shall be assessed.
48 § 10. Subdivisions 3 and 4 of section 11-674 of the administrative
49 code of the city of New York, subparagraph 3 of paragraph (a) and para-
50 graph (c) of subdivision 3 as amended by chapter 525 of the laws of 1988
51 and paragraph (d) of subdivision 3 as amended by local law number 57 of
52 the city of New York for the year 2001, are amended to read as follows:
53 3. Exceptions.
54 (a) Assessment at any time. The tax may be assessed at any time if:
55 (1) no return is filed,
56 (2) a false or fraudulent return is filed with intent to evade tax,
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1 (3) in the case of the tax imposed under subchapter two [or], three or
2 three-A of this chapter, the taxpayer fails to file a report or amended
3 return required thereunder, in respect of an increase or decrease in
4 federal or New York state taxable income, alternative minimum taxable
5 income or other basis of tax or federal or New York state tax, or in
6 respect of a change or correction or renegotiation or in respect of the
7 execution of a notice of waiver report of which is required thereunder,
8 or computation or recomputation of tax, which is treated in the same
9 manner as if it were a deficiency for federal or New York state income
10 tax purposes, or
11 (4) in the case of the tax imposed under subchapter two or three-A of
12 this chapter, the taxpayer fails to file a report or amended return or
13 report required thereunder, in respect of a change or correction of
14 sales and compensating use tax liability, relating to the purchase or
15 use of items for which a sales or compensating use tax credit against
16 the tax imposed by subchapter two or three-A was claimed.
17 (b) Extension by agreement. Where, before the expiration of the time
18 prescribed in this section for the assessment of tax, both the commis-
19 sioner of finance and the taxpayer have consented in writing to its
20 assessment after such time, the tax may be assessed at any time prior to
21 the expiration of the period agreed upon. The period so agreed upon may
22 be extended by subsequent agreements in writing made before the expira-
23 tion of the period previously agreed upon.
24 (c) Report of federal or New York state change or correction. In the
25 case of the tax imposed under subchapter two [or], three or three-A of
26 this chapter, if the taxpayer files a report or amended return required
27 thereunder, in respect of an increase or decrease in federal or New York
28 state taxable income, alternative minimum taxable income or other basis
29 of tax or federal or New York state tax, or in respect of a change or
30 correction or renegotiation, or in respect of the execution of a notice
31 of waiver report of which is required thereunder, or computation or
32 recomputation of tax, which is treated in the same manner as if it were
33 a deficiency for federal or New York state income tax purposes, the
34 assessment (if not deemed to have been made upon the filing of the
35 report or amended return) may be made at any time within two years after
36 such report or amended return was filed. The amount of such assessment
37 of tax shall not exceed the amount of the increase in city tax attribut-
38 able to such federal or New York state change or correction or renegoti-
39 ation, or computation or recomputation of tax. The provisions of this
40 paragraph shall not affect the time within which or the amount for which
41 an assessment may otherwise be made.
42 (d) Deficiency attributable to carry back. If a deficiency of tax
43 under subchapter two or three-A of this chapter is attributable to the
44 application to taxpayer of a net operating loss carry back or a capital
45 loss carry back, it may be assessed at any time that a deficiency for
46 the taxable year of the loss may be assessed.
47 (e) Recovery of erroneous refund. An erroneous refund shall be consid-
48 ered an underpayment of tax on the date made, and an assessment of a
49 deficiency arising out of an erroneous refund may be made at any time
50 within two years from the making of the refund, except that the assess-
51 ment may be made within five years from the making of the refund if it
52 appears that any part of the refund was induced by fraud or misrepresen-
53 tation of a material fact.
54 (f) Request for prompt assessment. The tax shall be assessed within
55 eighteen months after written request therefor (made after the return is
56 filed) by the taxpayer or by a fiduciary representing the taxpayer, but
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1 not more than three years after the return was filed, except as other-
2 wise provided in this subdivision and subdivision four. This subdivision
3 shall not apply unless:
4 (1) (A) such written request notifies the commissioner of finance that
5 the taxpayer contemplates dissolution at or before the expiration of
6 such eighteen-month period, (B) the dissolution is in good faith begun
7 before the expiration of such eighteen-month period, (C) the dissolution
8 is completed;
9 (2) (A) such written request notifies the commissioner of finance that
10 a dissolution has in good faith been begun, and (B) the dissolution is
11 completed; or
12 (3) a dissolution has been completed at the time such written request
13 is made.
14 (g) Change of the allocation of taxpayer's income or capital. [No]
15 (1) With regard to taxable years beginning before January first, two
16 thousand fifteen, no change of the allocation of income or capital upon
17 which the taxpayer's return (or any additional assessment) was based
18 shall be made where an assessment of tax is made during the additional
19 period of limitation under subparagraph three or four of paragraph (a),
20 or under paragraph (c), (d) or (i); and where any such assessment has
21 been made, or where a notice of deficiency has been mailed to the
22 taxpayer on the basis of any such proposed assessment, no change of the
23 allocation of income or capital shall be made in a proceeding on the
24 taxpayer's claim for refund of such assessment or on the taxpayer's
25 petition for redetermination of such deficiency.
26 (2) With regard to taxable years beginning on or after January first,
27 two thousand fifteen, no change of the allocation of income or capital
28 upon which the taxpayer's return (or any additional assessment) was
29 based shall be made where an assessment of tax is made during the addi-
30 tional period of limitation under subparagraph three or four of para-
31 graph (a) or under paragraph (c), (d) or (i), except to the extent such
32 assessment is based on an increase or decrease in New York state taxable
33 income or other basis of tax or New York state tax, or based on a
34 change, correction or renegotiation of tax, or based on the execution of
35 a notice of waiver report which is required thereunder, or computation
36 or recomputation of tax, which is treated in the same manner as if it
37 were a deficiency for New York state income tax purposes; and where any
38 such assessment has been made, or where a notice of deficiency has been
39 mailed to the taxpayer on the basis of any such proposed assessment, no
40 change of the allocation of income or capital shall be made in a
41 proceeding on the taxpayer's claim for refund of such assessment or on
42 the taxpayer's petition for redetermination of such deficiency, except
43 to the extent such assessment is based on an increase or decrease in New
44 York state taxable income or other basis of tax or New York state tax,
45 or based on a change or correction or renegotiation of tax, or based on
46 the execution of a notice of waiver report which is required thereunder,
47 or computation or recomputation of tax, which is treated in the same
48 manner as if it were an overpayment for New York state income tax
49 purposes.
50 (h) Report concerning waste treatment facility. Under the circum-
51 stances described in subparagraph three of paragraph (g) of subdivision
52 eight of section 11-602 of this chapter or in subparagraph three of
53 paragraph (g) of subdivision eight of section 11-652 of this chapter,
54 the tax may be assessed within three years after the filing of the
55 report containing the information required by such paragraph.
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1 (i) Report of changed or corrected sales and compensating use tax
2 liability. In the case of a tax imposed under subchapter two or three-A
3 of this chapter, if the taxpayer files a report or amended return or
4 report required thereunder, in respect of a change or correction of
5 sales and compensating use tax liability, the assessment (if not deemed
6 to have been made upon the filing of the report) may be made at any time
7 within two years after such report or amended return or report was
8 filed. The amount of such assessment of tax shall not exceed the amount
9 of the increase in city tax attributable to such state change or
10 correction. The provisions of this paragraph shall not affect the time
11 within which or the amount for which an assessment may otherwise be
12 made.
13 4. Omission of income on return. The tax may be assessed at any time
14 within six years after the return was filed if a taxpayer omits from
15 gross income required to be reported on a return under any of the named
16 subchapters an amount properly includable therein which is in excess of
17 twenty-five per centum of the amount of gross income stated in the
18 return.
19 For the purposes of this subdivision:
20 (a) the term "gross income" means gross income for federal income tax
21 purposes as reportable on a return under subchapter two or three-A of
22 this chapter and "gross earnings", "gross income," "gross operating
23 income" and "gross direct premiums less return premiums," as those terms
24 are used in whichever of the named subchapters is applicable;
25 (b) there shall not be taken into account any amount which is omitted
26 in the return if such amount is disclosed in the return, or in a state-
27 ment attached to the return, in a manner adequate to apprise the commis-
28 sioner of finance of the nature and amount of such item.
29 § 11. Subdivisions 2 and 5 of section 11-675 of the administrative
30 code of the city of New York, subdivision 5 as amended by local law
31 number 57 of the city of New York for the year 2001, are amended to read
32 as follows:
33 2. Exception as to estimated tax. This section shall not apply to any
34 failure to pay estimated tax under subchapter two [or subchapter], three
35 or three-A of this chapter.
36 5. Tax reduced by carry back. If the amount of tax under subchapter
37 two or three-A for any taxable year is reduced by reason of a carryback
38 of a net operating loss or a capital loss, such reduction in tax shall
39 not affect the computation of interest under this section for the period
40 ending with the filing date for the taxable year in which the net oper-
41 ating loss or capital loss arises. Such filing date shall be determined
42 without regard to extensions of time to file.
43 § 12. Subdivision 3 of section 11-676 of the administrative code of
44 the city of New York, as amended by chapter 201 of the laws of 2009, is
45 amended to read as follows:
46 3. Failure to file declaration or underpayment of estimated tax. If
47 any taxpayer fails to file a declaration of estimated tax under subchap-
48 ter two [or], three or three-A of this chapter, or fails to pay all or
49 any part of an amount which is applied as an installment against such
50 estimated tax, it shall be deemed to have made an underpayment of esti-
51 mated tax. There shall be added to the tax for the taxable year an
52 amount at the underpayment rate set by the commissioner of finance
53 pursuant to section 11-687 of this subchapter, or, if no rate is set, at
54 the rate of seven and one-half percent per annum upon the amount of the
55 underpayment for the period of the underpayment but not beyond the
56 fifteenth day of the third month following the close of the taxable
A. 6009 177
1 year. The amount of the underpayment shall be, with respect to any
2 installment of estimated tax computed on the basis of the preceding
3 year's tax, the excess of the amount required to be paid over the
4 amount, if any, paid on or before the last day prescribed for such
5 payment or, with respect to any other installment of estimated tax, the
6 excess of the amount of the installment which would be required to be
7 paid if the estimated tax were equal to ninety percent of the tax shown
8 on the return for the taxable year (or if no return was filed, ninety
9 percent of the tax for such year) over the amount, if any, of the
10 installment paid on or before the last day prescribed for such payment.
11 In any case in which there would be no underpayment if "eighty percent"
12 were substituted for "ninety percent" each place it appears in this
13 subdivision, the addition to the tax shall be equal to seventy-five
14 percent of the amount otherwise determined. No underpayment shall be
15 deemed to exist with respect to a declaration or installment otherwise
16 due on or after the termination of existence of the taxpayer.
17 § 13. The opening paragraph of subdivision 4 of section 11-676 of the
18 administrative code of the city of New York is amended to read as
19 follows:
20 Exception to addition for underpayment of estimated tax. The addition
21 to tax under subdivision three with respect to any underpayment of any
22 amount which is applied as an installment against estimated tax under
23 subchapter two [or], three or three-A of this chapter shall not be
24 imposed if the total amount of all payments of estimated tax made on or
25 before the last date prescribed for the payment of any such amount
26 equals or exceeds the amount which would have been required to be paid
27 on or before such date if the estimated tax were whichever of the
28 following is the least:
29 § 14. Subdivision 13 of section 11-676 of the administrative code of
30 the city of New York, as added by chapter 525 of the laws of 1988, is
31 amended to read as follows:
32 13. Failure to file report of information relating to certain interest
33 payments. In case of failure to file the report of information required
34 under either subdivision two-a of section 11-605 of this chapter or
35 subdivision two-a of section 11-655 of this chapter, unless it is shown
36 that such failure is due to reasonable cause and not due to willful
37 neglect, there shall be added to the tax a penalty of five hundred
38 dollars.
39 § 15. Subdivision 2 of section 11-677 of the administrative code of
40 the city of New York is amended to read as follows:
41 2. Credits against estimated tax. The commissioner of finance may
42 prescribe regulations providing for the crediting against the estimated
43 tax under subchapter two [or], three or three-A of this chapter for any
44 taxable year of the amount determined to be an overpayment of tax under
45 any such subchapter for a preceding taxable year. If any overpayment of
46 tax is so claimed as a credit against estimated tax for the succeeding
47 taxable year, such amount shall be considered as a payment of the tax
48 under subchapter two [or], three or three-A of this chapter for the
49 succeeding taxable year (whether or not claimed as a credit in the
50 declaration of estimated tax for such succeeding taxable year), and no
51 claim for credit or refund of such overpayment shall be allowed for the
52 taxable year for which the overpayment arises.
53 § 16. Subdivisions 3, 4, 9 and 11 of section 11-678 of the administra-
54 tive code of the city of New York, subdivision 3 as amended by chapter
55 241 of the laws of 1989 and subdivision 4 as amended by local law number
A. 6009 178
1 57 of the city of New York for the year 2001, are amended to read as
2 follows:
3 3. Notice of change or correction of federal or New York state income
4 or other basis of tax. If a taxpayer is required by subchapter two [or],
5 three or three-A of this chapter to file a report or amended return in
6 respect of (a) a decrease or increase in federal or New York state taxa-
7 ble income, alternative minimum taxable income or other basis of tax or
8 federal or New York state tax, (b) a federal or New York state change or
9 correction or renegotiation, or computation or recomputation of tax,
10 which is treated in the same manner as if it were an overpayment for
11 federal or New York state income tax purposes, claim for credit or
12 refund of any resulting overpayment of tax shall be filed by the taxpay-
13 er within two years from the time such report or amended return was
14 required to be filed with the commissioner of finance. If the report or
15 amended return required by subchapter two [or], three or three-A of this
16 chapter is not filed within the ninety day period therein specified, no
17 interest shall be payable on any claim for credit or refund of the over-
18 payment attributable to the federal or New York state change or
19 correction. The amount of such credit or refund:
20 (c) shall, (i) for taxable years beginning before January first, two
21 thousand fifteen, be computed without change of the allocation of income
22 or capital upon which the taxpayer's return (or any additional assess-
23 ment) was based, and, (ii) for taxable years beginning on or after Janu-
24 ary first, two thousand fifteen, be computed without change of the allo-
25 cation of income or capital upon which the taxpayer's return (or any
26 additional assessment) was based to the extent that the claim for refund
27 arises from a decrease or increase in federal taxable income or other
28 basis of tax or federal tax, or from a federal change, correction, rene-
29 gotiation, computation or recomputation of tax, which is treated in the
30 same manner as if it were an overpayment for federal income tax
31 purposes, and
32 (d) shall not exceed the amount of the reduction in tax attributable
33 to such decrease or increase in federal or New York state taxable
34 income, alternative minimum taxable income or other basis of tax or
35 federal or New York state tax or to such federal or New York state
36 change or correction or renegotiation, or computation or recomputation
37 of tax.
38 This subdivision shall not affect the time within which or the amount
39 for which a claim for credit or refund may be filed apart from this
40 subdivision.
41 4. Overpayment attributable to net operating loss carry back or capi-
42 tal loss carry back. A claim for credit or refund of so much of an over-
43 payment under subchapter two or three-A of this chapter as is attribut-
44 able to the application to the taxpayer of a net operating loss carry
45 back or a capital loss carry back shall be filed within three years from
46 the time the return was due (including extensions thereof) for the taxa-
47 ble year of the loss, or within the period prescribed in subdivision two
48 in respect of such taxable year, or within the period prescribed in
49 subdivision three, where applicable, in respect to the taxable year to
50 which the net operating loss or capital loss is carried back, whichever
51 expires the latest. Where such claim for credit or refund is filed after
52 the expiration of the period prescribed in subdivision one or in subdi-
53 vision two where applicable, in respect to the taxable year to which the
54 net operating loss or capital loss is carried back, the amount of such
55 credit or refund shall be computed without change of the allocation of
A. 6009 179
1 income or capital upon which the taxpayer's return (or any additional
2 assessment) was based.
3 9. Prepaid tax. For purposes of this section, any tax paid by the
4 taxpayer before the last day prescribed for its payment (including any
5 amount paid by the taxpayer as estimated tax for a taxable year) shall
6 be deemed to have been paid by it on the fifteenth day of the third
7 month following the close of the taxable year the income of which is the
8 basis for tax under subchapter two [or], three or three-A of this chap-
9 ter, or on the last day prescribed in part one of subchapter three or
10 subchapter four for the filing of a final return for such taxable year,
11 or portion thereof, determined in all cases without regard to any exten-
12 sion of time granted the taxpayer.
13 11. Notice of change or correction of sales and compensating use tax
14 liability. (a) If a taxpayer is required by subchapter two or three-A of
15 this chapter to file a report or amended return in respect of a change
16 or correction of its sales and compensating use tax liability, claim for
17 credit or refund of any resulting overpayment of tax shall be filed by
18 the taxpayer within two years from the time such report or amended
19 return was required to be filed with the commissioner of finance. The
20 amount of such credit or refund shall be computed without change of the
21 allocation of income or capital upon which the taxpayer's return (or any
22 additional assessment) was based, and shall not exceed the amount of the
23 reduction in tax attributable to such change or correction of sales and
24 compensating use tax liability.
25 (b) This subdivision shall not affect the time within which or the
26 amount for which a claim for credit or refund may be filed apart from
27 this subdivision.
28 § 17. Subdivisions 4 and 6 of section 11-679 of the administrative
29 code of the city of New York, subdivision 4 as amended by local law
30 number 57 of the city of New York for the year 2001 and subdivision 6 as
31 amended by chapter 241 of the laws of 1989, are amended to read as
32 follows:
33 4. Refund of tax caused by carryback. For purposes of this section, if
34 any overpayment of tax imposed by subchapter two or three-A of this
35 chapter results from a carryback of a net operating loss or a net capi-
36 tal loss, such overpayment shall be deemed not to have been made prior
37 to the filing date for the taxable year in which such net operating loss
38 or net capital loss arises. Such filing date shall be determined without
39 regard to extensions of time to file. For purposes of subdivision three
40 of this section any overpayment described herein shall be treated as an
41 overpayment for the loss year and such subdivision shall be applied with
42 respect to such overpayment by treating the return for the loss year as
43 not filed before claim for such overpayment is filed. The term "loss
44 year" means the taxable year in which such loss arises.
45 6. Cross reference. For provision with respect to interest after fail-
46 ure to file a report of federal or New York state change or correction
47 or amended return under subchapter two [or], three or three-A, see
48 subdivision three of section 11-678 of this subchapter.
49 § 18. Paragraph (d) of subdivision 4 of section 11-680 of the adminis-
50 trative code of the city of New York, as amended by chapter 808 of the
51 laws of 1992, is amended to read as follows:
52 (d) Restriction on further notices of deficiency. If the taxpayer
53 files a petition with the tax appeals tribunal under this section, no
54 notice of deficiency under section 11-672 of this subchapter may there-
55 after be issued by the commissioner of finance for the same taxable
56 year, except in case of fraud or with respect to an increase or decrease
A. 6009 180
1 in federal or New York state taxable income, alternative minimum taxable
2 income or other basis of tax or federal or New York state tax or a
3 federal or New York state change or correction or renegotiation, or
4 computation or recomputation of tax, which is treated in the same manner
5 as if it were a deficiency for federal or New York state income tax
6 purposes, required to be reported under subchapter two [or], three or
7 three-A of this chapter or with respect to a state change or correction
8 of sales and compensating use tax liability required to be reported
9 under subchapter two or three-A of this chapter.
10 § 19. Paragraph (c) of subdivision 5 of section 11-680 of the adminis-
11 trative code of the city of New York, as amended by chapter 808 of the
12 laws of 1992, is amended to read as follows:
13 (c) whether the petitioner is liable for any increase in a deficiency
14 where such increase is asserted initially after a notice of deficiency
15 was mailed and a petition under this section filed, unless such increase
16 in deficiency is the result of an increase or decrease in federal or New
17 York state taxable income, alternative minimum taxable income or other
18 basis of tax or federal or New York state tax or a federal or New York
19 state change or correction or renegotiation, or computation or recompu-
20 tation of tax, which is treated in the same manner as if it were a defi-
21 ciency for federal or New York state income tax purposes, required to be
22 reported under subchapter two [or], three or three-A of this chapter,
23 and of which increase, decrease, change or correction or renegotiation,
24 or computation or recomputation, the commissioner of finance had no
25 notice at the time he or she mailed the notice of deficiency or unless
26 such increase in deficiency is the result of a change or correction of
27 sales and compensating use tax liability required to be reported under
28 subchapter two or three-A of this chapter, and of which change or
29 correction the commissioner of finance had no notice at the time he or
30 she mailed the notice of deficiency; and
31 § 20. Paragraph (a) of subdivision 5 of section 11-687 of the adminis-
32 trative code of the city of New York, as amended by chapter 201 of the
33 laws of 2009, is amended to read as follows:
34 (a) Authority to set interest rates. The commissioner of finance shall
35 set the overpayment and underpayment rates of interest to be paid pursu-
36 ant to sections 11-606, 11-608, 11-645, 11-647, 11-656, 11-658, 11-675,
37 11-676, and 11-679 of this chapter, but if no such rate or rates of
38 interest are set, such overpayment rate shall be deemed to be set at six
39 percent per annum and such underpayment rate shall be deemed to be set
40 at seven and one-half percent per annum. Such overpayment and underpay-
41 ment rates shall be the rates prescribed in paragraph (b) of this subdi-
42 vision but the underpayment rate shall not be less than seven and one-
43 half percent per annum. Any such rates set by the commissioner of
44 finance shall apply to taxes, or any portion thereof, which remain or
45 become due or overpaid on or after the date on which such rates become
46 effective and shall apply only with respect to interest computed or
47 computable for periods or portions of periods occurring in the period
48 during which such rates are in effect.
49 § 21. Subdivision 7 of section 11-688 of the administrative code of
50 the city of New York, as added by section 22 of part M of chapter 686 of
51 the laws of 2003, is amended to read as follows:
52 7. Notwithstanding anything in subdivision one of this section, the
53 commissioner of finance may disclose to a taxpayer or a taxpayer's
54 related member, as defined in paragraph (n) of subdivision eight of
55 section 11-602, paragraph (n) of subdivision eight of section 11-652 or
56 paragraph one of subdivision (q) of section 11-641 of this chapter,
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1 information relating to any royalty paid, incurred or received by such
2 taxpayer or related member to or from the other, including the treatment
3 of such payments by the taxpayer or the related member in any report or
4 return transmitted to the commissioner of finance under this title.
5 § 22. Paragraph 4 of subdivision (f) of section 11-704 of the adminis-
6 trative code of the city of New York, as amended by chapter 831 of the
7 laws of 1992, is amended to read as follows:
8 (4) No tenant shall be authorized to receive a reduction in base rent
9 subject to tax under the provisions of this subdivision, until the prem-
10 ises with respect to which it is claiming a reduction in base rent meet
11 the requirements in the definition of eligible premises and until it has
12 obtained a certification of eligibility from the mayor or an agency
13 designated by the mayor, and an annual certification from the mayor or
14 an agency designated by the mayor as to the number of eligible aggregate
15 employment shares maintained by such tenant which may qualify for
16 obtaining a base rent reduction for the tenant's tax year. Any written
17 documentation submitted to the mayor or such agency or agencies in order
18 to obtain any such certification shall be deemed a written instrument
19 for purposes of section 175.00 of the penal law. Application fees for
20 such certifications shall be determined by the mayor or such agency or
21 agencies. No certification of eligibility shall be issued to an eligible
22 business on or after July first, nineteen hundred ninety-nine unless
23 such business meets the requirements of either subparagraph (a) or (b)
24 below:
25 (a) (1) prior to such date such business has purchased, leased or
26 entered into a contract to purchase or lease particular premises or a
27 parcel on which will be constructed such premises or already owned such
28 premises or parcel;
29 (2) prior to such date improvements have been commenced on such prem-
30 ises or parcel which improvements will meet the requirements of subdivi-
31 sion (e) of section 22-621 of this code relating to expenditures for
32 improvements;
33 (3) prior to such date such business submits a preliminary application
34 for a certification of eligibility to such mayor or such agency or agen-
35 cies with respect to a proposed relocation to such particular premises;
36 and
37 (4) such business relocates to such particular premises not later than
38 thirty-six months or, in a case in which the expenditures made for the
39 improvements specified in clause two of this subparagraph are in excess
40 of fifty million dollars within seventy-two months from the date of
41 submission of such preliminary application; or
42 (b) (1) not later than June thirtieth, two thousand two, such business
43 has purchased, leased or entered into a contract to purchase or lease
44 particular premises wholly contained in a building in which at least an
45 aggregate of forty per centum or two hundred thousand square feet,
46 whichever is less, of the nonresidential floor area of such building has
47 been purchased or leased by a business or businesses which meet or will
48 meet the requirements of subparagraph (a) of this paragraph with respect
49 to such floor area and which are or will become certified as eligible to
50 receive a credit under section 22-622 of this code with respect to such
51 floor area;
52 (2) not later than June thirtieth, two thousand two, such business
53 submits a preliminary application for a certification of eligibility to
54 such mayor or such agency or agencies with respect to a proposed relo-
55 cation to such particular premises; and
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1 (3) not later than June thirtieth, two thousand two, such business
2 relocates to such particular premises.
3 Any tenant subject to a tax imposed under chapter five, or subchapter
4 two [or], three or three-A of chapter six, of this title obtaining a
5 certification of eligibility pursuant to subdivision (b) of section
6 22-622 of the code shall be deemed to have obtained the certification of
7 eligibility required by this paragraph.
8 § 23. Subdivision (a) and the opening paragraph of subdivision (o) of
9 section 22-621 of the administrative code of the city of New York,
10 subdivision (a) as amended by chapter 149 of the laws of 1999 and the
11 opening paragraph of subdivision (o) as added by chapter 143 of the laws
12 of 2004, are amended to read as follows:
13 (a) "Eligible Business." Any person subject to a tax imposed under
14 chapter five, or subchapter two [or], three or three-A of chapter six,
15 or chapter eleven, of title eleven of the code, that: (1) has been
16 conducting substantial business operations at one or more business
17 locations outside the eligible area for the twenty-four consecutive
18 months immediately preceding the taxable year during which such eligible
19 business relocates as defined in subdivision (j) of this section; and
20 (2) on or after May twenty-seventh, nineteen hundred eighty-seven relo-
21 cates as defined in subdivision (j) of this section all or part of such
22 business operations; and (3) either (i) on or after May twenty-seventh,
23 nineteen hundred eighty-seven first enters into a contract to purchase
24 or lease the premises to which it relocates as defined in subdivision
25 (j) of this section, or a parcel on which will be constructed such prem-
26 ises, or (ii) as of May twenty-seventh, nineteen hundred eighty-seven
27 owns such parcel or premises and has not prior to such date made appli-
28 cation for benefits pursuant to part four of subchapter two of chapter
29 two of title eleven of the code.
30 "Total attributed eligible aggregate employment shares" means, for any
31 relocation, the sum of the number of eligible aggregate employment
32 shares apportioned to such relocation pursuant to paragraph one of this
33 subdivision, less any excess shares determined with respect to such
34 relocation pursuant to paragraph two of this subdivision, plus any
35 excess shares attributed to such relocation pursuant to paragraph three
36 of this subdivision. Except as provided in paragraph four of this subdi-
37 vision, any eligible aggregate employment shares that are attributed to
38 a relocation to particular premises pursuant to paragraph three of this
39 subdivision shall be treated as eligible aggregate employment shares
40 that are maintained with respect to such premises and shall be subject
41 to all provisions of this chapter and the provisions for a credit
42 against a tax imposed under chapter five or subchapter two [or], three
43 or three-A of chapter six or chapter eleven of title eleven of the code
44 as such provisions pertain to such relocation.
45 § 24. Subdivisions (a) and (d) of section 22-622 of the administrative
46 code of the city of New York, subdivision (a) as amended and subdivision
47 (d) as added by chapter 149 of the laws of 1999, are amended to read as
48 follows:
49 (a) An eligible business that relocates as defined in subdivision (j)
50 of section 22-621 of the code shall be allowed to receive a credit
51 against a tax imposed by chapter five, or subchapter two [or], three or
52 three-A of chapter six, or chapter eleven, of title eleven of the code,
53 as described in subdivision (i) of section 11-503, subdivision seventeen
54 of section 11-604, subdivision seventeen of section 11-654, section
55 11-643.7 and section 11-1105.2 of the code, and a reduction in base rent
56 subject to tax as described in subdivision f of section 11-704 of the
A. 6009 183
1 code, provided, however, notwithstanding any other provision of law to
2 the contrary, no such credit shall be allowed against the tax imposed
3 under such chapter eleven for a relocation taking place prior to January
4 first, nineteen hundred ninety-nine.
5 (d) An eligible business other than a utility company subject to the
6 supervision of the department of public service shall not be authorized
7 to receive a credit against the gross receipts tax imposed under chapter
8 eleven of title eleven of the code, unless such eligible business elects
9 to take the credit authorized by this section against the tax imposed by
10 such chapter on an application filed with respect to the first relo-
11 cation of such business that qualifies or will qualify under this
12 section, with the mayor or the agency designated by such mayor pursuant
13 to subdivision (b) of this section. The election authorized by this
14 subdivision may not be withdrawn after the issuance of such certif-
15 ication of eligibility. No taxpayer that has previously received a
16 certification of eligibility to receive such credit against any tax
17 imposed by chapter five or subchapter two [or], three or three-A of
18 chapter six of title eleven of the code may make the election authorized
19 by this subdivision. No taxpayer that makes the election provided in
20 this subdivision shall be authorized to take such credit against any tax
21 imposed by chapter five or subchapter two [or], three or three-A of
22 chapter six of title eleven of the code.
23 § 25. Subdivisions (a) and (l) of section 22-623 of the administrative
24 code of the city of New York, subdivision (a) as added by chapter 143 of
25 the laws of 2004 and subdivision (l) as added by section 10 of part E of
26 chapter 2 of the laws of 2005, are amended to read as follows:
27 (a) "Eligible business" means any person subject to a tax imposed
28 under chapter five, or subchapter two [or], three or three-A of chapter
29 six, or chapter eleven, of title eleven of the code, that:
30 (1) has been conducting substantial business operations at one or more
31 business locations outside the city of New York for the twenty-four
32 consecutive months immediately preceding the taxable year during which
33 such eligible business relocates as defined in subdivision (j) of this
34 section but has not maintained employment shares at premises in the city
35 of New York at any time during the period beginning January first, two
36 thousand two and ending on the date it enters into a lease or a contract
37 to purchase the premises that will qualify as eligible premises pursuant
38 to this chapter; and
39 (2) on or after July first, two thousand three relocates as defined in
40 subdivision (j) of this section all or part of such business operations.
41 (l) "Special eligible business" means any person subject to a tax
42 imposed under chapter five, or subchapter two [or], three or three-A of
43 chapter six, or chapter eleven, of title eleven of the code, that: (1)
44 has been conducting substantial business operations at one or more busi-
45 ness locations outside the city of New York for the twenty-four consec-
46 utive months immediately preceding the taxable year during which such
47 eligible business relocates as defined in subdivision (m); (2) main-
48 tained employment shares at premises in Manhattan in the city of New
49 York at some time during the period beginning January first, two thou-
50 sand two, and ending on the date it enters into a lease or a contract to
51 purchase the premises that will qualify as eligible premises pursuant to
52 this section, and (3) on or after June thirtieth, two thousand five,
53 relocates as defined in subdivision (m) of this section all or part of
54 such business operations.
55 § 26. Subdivisions (a) and (d) of section 22-624 of the administrative
56 code of the city of New York, subdivision (a) as amended by section 11
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1 of part E of chapter 2 of the laws of 2005 and subdivision (d) as
2 amended by section 12 of part E of chapter 2 of the laws of 2005, are
3 amended to read as follows:
4 (a) An eligible business that relocates as defined in subdivision (j)
5 of section 22-623 of this chapter or a special eligible business that
6 relocates as defined in subdivision (m) of section 22-623 of this chap-
7 ter shall be allowed to receive a credit against a tax imposed by chap-
8 ter five, or subchapter two [or], three or three-A of chapter six, or
9 chapter eleven, of title eleven of the code, as described in subdivision
10 (l) of section 11-503, subdivision nineteen of section 11-604, subdivi-
11 sion nineteen of section 11-654, section 11-643.9 or section 11-1105.3
12 of the code.
13 (d) An eligible business or special eligible business other than a
14 utility company subject to the supervision of the department of public
15 service shall not be authorized to receive a credit against the gross
16 receipts tax imposed under chapter eleven of title eleven of the code
17 unless such eligible business or special eligible business elects to
18 take the credit authorized by this section against the tax imposed by
19 such chapter on its application filed with the mayor or the agency
20 designated by such mayor pursuant to subdivision (b) of this section.
21 The election authorized by this subdivision may not be withdrawn after
22 the issuance of such certification of eligibility. No taxpayer that has
23 previously received a certification of eligibility to receive such cred-
24 it against any tax imposed by chapter five or subchapter two [or], three
25 or three-A of chapter six of title eleven of the code may make the
26 election authorized by this subdivision. No taxpayer that makes the
27 election provided in this subdivision shall be authorized to take such
28 credit against any tax imposed by chapter five or subchapter two [or],
29 three or three-A of chapter six of title eleven of the code.
30 § 27. This act shall take effect immediately and shall apply to taxa-
31 ble years beginning on or after January 1, 2015.
32 PART RR
33 Section 1. Subdivision 2 of section 187-b of the tax law, as amended
34 by section 1 of part G of chapter 59 of the laws of 2013, is amended to
35 read as follows:
36 2. (a) Alternative fuel vehicle refueling property and electric vehi-
37 cle recharging property. The credit under this section for alternative
38 fuel vehicle refueling and electric vehicle recharging property shall
39 equal for each installation of property the lesser of five thousand
40 dollars or the product of fifty percent [of the cost of any such proper-
41 ty:
42 (a) which is] and the cost of any such property less any costs paid
43 from the proceeds of grants.
44 (b) To qualify for the credit, the property must:
45 (i) be located in this state;
46 [(b) which constitutes] (ii) constitute alternative fuel vehicle refu-
47 eling property or electric vehicle recharging property; and
48 [(c) for which none of the cost has been] (iii) not be paid for from
49 the proceeds of grants awarded before January first, two thousand
50 fifteen, including grants from the New York state energy research and
51 development authority or the New York power authority.
52 § 2. Paragraph (b) of subdivision 30 of section 210-B of the tax law,
53 as added by section 17 of part A of chapter 59 of the laws of 2014, is
54 amended to read as follows:
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1 (b) (i) Alternative fuel vehicle refueling property and electric vehi-
2 cle recharging property. The credit under this subdivision for alterna-
3 tive fuel vehicle refueling property and electric vehicle recharging
4 property shall equal for each installation of property the lesser of
5 five thousand dollars or the product of fifty percent [of the cost of
6 any such property:
7 (i) which is] and the cost of any such property less any costs paid
8 from the proceeds of grants.
9 (ii) To qualify for the credit, the property must:
10 (A) be located in this state;
11 [(ii) which constitutes] (B) must constitute alternative fuel vehicle
12 refueling property or electric vehicle recharging property; and
13 [(iii) for which none of the cost has been] (C) not be paid for from
14 the proceeds of grants awarded before January first, two thousand
15 fifteen, including grants from the New York state energy research and
16 development authority or the New York power authority.
17 § 3. Paragraph 2 of subsection (p) of section 606 of the tax law, as
18 amended by section 3 of part G of chapter 59 of the laws of 2013, is
19 amended to read as follows:
20 (2) (a) Alternative fuel vehicle refueling property and electric vehi-
21 cle recharging property. The credit under this subsection for alterna-
22 tive fuel vehicle refueling property or electric vehicle recharging
23 property shall equal for each installation of property the lesser of
24 five thousand dollars or the product of fifty percent [of the cost of
25 any such property
26 (A) which is] and the cost of any such property less any costs paid
27 from the proceeds of grants.
28 (b) To qualify for the credit, the property must:
29 (i) be located in this state;
30 [(B) which constitutes] (ii) constitute alternative fuel vehicle refu-
31 eling property or electric vehicle recharging property; and
32 [(C) for which none of the cost has been] (iii) not be paid for from
33 the proceeds of grants awarded before January first, two thousand
34 fifteen, including grants from the New York state energy research and
35 development authority or the New York power authority.
36 § 4. This act shall take effect immediately, and shall apply to taxa-
37 ble years beginning on or after January 1, 2015.
38 PART SS
39 Section 1. Subparagraphs (A), (E) and (F) of paragraph 1 and paragraph
40 3 of subsection (e-1) of section 606 of the tax law, as added by section
41 2 of part K of chapter 59 of the laws of 2014, are amended and a new
42 paragraph 3-a is added to read as follows:
43 (A) "Qualified taxpayer" means a resident individual of the state, who
44 (i) is a resident of a city with a population over one million or a
45 resident in the city of Yonkers, (ii) has occupied the same residence
46 for six months or more of the taxable year, and (iii) is required or
47 chooses to file a return under this article.
48 (E) "Qualifying real property taxes" means all real property taxes,
49 special ad valorem levies and special assessments, exclusive of penal-
50 ties and interest, levied on the residence of a qualified taxpayer and
51 paid during the taxable year. A qualified taxpayer may elect to include
52 any additional amount that would have been levied in the absence of an
53 exemption from real property taxation pursuant to section four hundred
54 sixty-seven of the real property tax law. If tenant-stockholders in a
A. 6009 186
1 cooperative housing corporation have met the requirements of section two
2 hundred sixteen of the internal revenue code by which they are allowed a
3 deduction for real estate taxes, the amount of taxes so allowable, or
4 which would be allowable if the taxpayer had filed returns on a cash
5 basis, shall be qualifying real property taxes. If a residence is owned
6 by two or more individuals as joint tenants or tenants in common, and
7 one or more than one individual is not a member of the household, quali-
8 fying real property taxes is that part of such taxes on the residence
9 which reflects the ownership percentage of the qualified taxpayer and
10 members of his or her household. If a residence is an integral part of a
11 larger unit, qualifying real property taxes shall be limited to that
12 amount of such taxes paid as may be reasonably apportioned to such resi-
13 dence. If a household owns and occupies two or more residences during
14 different periods in the same taxable year, qualifying real property
15 taxes shall be the sum of the prorated qualifying real property taxes
16 attributable to the household during the periods such household occupies
17 each of such residences. If the household owns and occupies a residence
18 for part of the taxable year and rents a residence for part of the same
19 taxable year, it may include the proration of qualifying real property
20 taxes on the residence owned. Provided, however, for purposes of the
21 credit allowed under this subsection, qualifying real property taxes may
22 be included by a qualified taxpayer only to the extent that such taxpay-
23 er or the spouse of such taxpayer, occupying such residence for one
24 hundred eighty-three days or more of the taxable year, owns or has owned
25 the residence and paid such taxes. Provided, however, for taxable years
26 two thousand fifteen and thereafter, for a qualified taxpayer who
27 resides in the city of New York, and paid the New York city personal
28 income tax as provided in article thirty of this chapter for a taxable
29 year, such qualifying real property tax shall include the city personal
30 income tax for the taxable year. In addition, for a qualified taxpayer
31 who resides in the city of Yonkers, and paid the Yonkers city tax as
32 provided in article thirty-A of this chapter for a taxable year, such
33 qualifying real property tax shall include the Yonkers city tax paid for
34 the taxable year.
35 (F) "Real property tax equivalent" means fifteen and three-quarters
36 percent of the adjusted rent actually paid in the taxable year by a
37 household solely for the right of occupancy of its New York residence
38 for the taxable year. If (i) a residence is rented to two or more indi-
39 viduals as cotenants, or such individuals share in the payment of a
40 single rent for the right of occupancy of such residence, and (ii) each
41 of such individuals is a member of a different household, one or more of
42 which individuals shares such residence, real property tax equivalent is
43 that portion of fifteen and three-quarters percent of the adjusted rent
44 paid in the taxable year which reflects that portion of the rent attrib-
45 utable to the qualified taxpayer and the members of his or her house-
46 hold. Provided, however, for taxable years two thousand fifteen and
47 thereafter, for a qualified taxpayer who resides in the city of New
48 York, and paid the New York city personal income tax as provided in
49 article thirty of this chapter for a taxable year, such qualifying real
50 property tax shall include the city personal income tax paid for the
51 taxable year. In addition, for a qualified taxpayer who resides in the
52 city of Yonkers, and paid the Yonkers city tax as provided in article
53 thirty-A of this chapter for a taxable year, such qualifying real prop-
54 erty tax shall include Yonkers city tax paid for the taxable year.
55 (3) Determination of credit. For taxable [years after two thousand
56 thirteen and prior to two thousand sixteen] year two thousand fourteen,
A. 6009 187
1 the amount of the credit allowable under this subsection shall be deter-
2 mined as follows:
3 If household gross income Excess real property The credit amount is
4 for the taxable year is: taxes are the excess the following
5 of real property tax percentage of excess
6 equivalent or the property taxes:
7 excess of qualifying
8 real property taxes
9 over the following
10 percentage of
11 household gross
12 income:
13 Less than $100,000 4 4.5
14 $100,000 to less than 5 3.0
15 $150,000
16 $150,000 to less than 6 1.5
17 $200,000
18 For taxable year two thousand fifteen, the amount of the credit allow-
19 able under this subsection shall be determined as follows:
20 If household gross incomeExcess real propertyThe credit amount is
21 for the taxable year is:taxes are the excessthe following
22 of real property taxpercentage of excess
23 equivalent or theproperty taxes:
24 excess of qualifying
25 real property taxes
26 over the following
27 percentage of
28 household gross
29 income:
30 Less than $100,000 46.0
31 $100,000 to less than54.0
32 $150,000
33 $150,000 to less than62.0
34 $200,000
35 For taxable year two thousand sixteen, the amount of the credit allow-
36 able under this subsection shall be determined as follows:
37 If household gross incomeExcess real propertyThe credit amount is
38 for the taxable year is:taxes are the excessthe following
39 of real property taxpercentage of excess
40 equivalent or theproperty taxes:
41 excess of qualifying
42 real property taxes
43 over the following
44 percentage of
45 household gross
46 income:
47 Less than $100,000 47.5
48 $100,000 to less than55.0
49 $150,000
50 $150,000 to less than62.5
51 $200,000
52 (3-a) Determination of credit. For taxable year two thousand seventeen
53 and thereafter, the amount of the credit allowable under this subsection
54 shall be determined as follows:
55 If household gross incomeExcess real propertyThe credit amount is
56 for the taxable year is:taxes are the excessthe following
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1 of real property taxpercentage of excess
2 equivalent or theproperty taxes:
3 excess of qualifying
4 real property taxes
5 over the following
6 percentage of
7 household gross
8 income:
9 Less than $100,000 49.0
10 $100,000 to less than56.0
11 $150,000
12 $150,000 to less than63.0
13 $200,000
14 Notwithstanding the foregoing provisions, the maximum credit deter-
15 mined under this subparagraph may not exceed five hundred dollars for a
16 renter and may not exceed one thousand dollars for a property owner.
17 § 2. Section 3 of part K of chapter 59 of the laws of 2014, amending
18 the tax law, relating to establishing an enhanced real property tax
19 circuit breaker, is amended to read as follows:
20 § 3. This act shall take effect immediately and shall apply to taxable
21 years beginning on or after January 1, 2014 [and shall expire and be
22 deemed repealed January 1, 2016].
23 § 3. This act shall take effect immediately and shall apply to taxable
24 years beginning on or after January 1, 2015.
25 PART TT
26 Section 1. Subsection (t) of section 606 of the tax law, as added by
27 section 1 of part DD of chapter 63 of the laws of 2000, paragraphs 1 and
28 2 as amended by section 1 of part N of chapter 85 of the laws of 2002,
29 is amended to read as follows:
30 (t) College tuition and education expenses tax credit. (1) General. A
31 resident taxpayer shall be allowed the option of claiming a credit, to
32 be computed as provided in paragraph four of this subsection, against
33 the tax imposed by this article, or an itemized deduction, to be
34 computed as provided in paragraph four of subsection (d) of section six
35 hundred fifteen of this article, for allowable college tuition expenses.
36 (2) Allowable and qualified college tuition expenses. For the purposes
37 of this credit and the itemized deduction provided by paragraph four of
38 subsection (d) of section six hundred fifteen of this article:
39 (A) The term "allowable college tuition expenses" shall mean the
40 amount of qualified college tuition expenses of eligible students paid
41 by the taxpayer during the taxable year, limited to ten thousand dollars
42 for each such student;
43 (B) The term "eligible student" shall mean the taxpayer, the taxpay-
44 er's spouse, and any dependent of the taxpayer with respect to whom the
45 taxpayer is allowed an exemption under section six hundred sixteen of
46 this article for the taxable year;
47 (C) The term "qualified college tuition expenses" shall mean the
48 tuition required for the enrollment or attendance of an eligible student
49 at an institution of higher education. Provided, however, tuition
50 payments made pursuant to the receipt of any scholarships or financial
51 aid, or tuition required for enrollment or attendance in a course of
52 study leading to the granting of a post baccalaureate or other graduate
53 degree, shall be excluded from the definition of "qualified college
54 expenses"[.];
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1 (D) The term "qualified education expenses" shall mean the amount of
2 education expenses of eligible students paid by the taxpayer during the
3 taxable year, limited to one thousand dollars for each such student;
4 (E) The term "education expenses" shall mean expenses for qualified
5 college and higher education, incurred and paid by the taxpayer, includ-
6 ing, but not limited to, books, supplies, computer equipment (including
7 related software and services) and other equipment and supplementary
8 material used in the classroom;
9 (F) Expenses paid by dependent. If an exemption under section six
10 hundred sixteen of this article with respect to an individual is allowed
11 to another taxpayer for a taxable year beginning in the calendar year in
12 which such individual's taxable year begins,
13 (i) no credit under this subsection or deduction under paragraph four
14 of subsection (d) of section six hundred fifteen of this article shall
15 be allowed to such individual for such individual's taxable year, and
16 (ii) for purposes of such credit or deduction, qualified college
17 tuition expenses paid by such individual during such individual's taxa-
18 ble year shall be treated as paid by such other taxpayer.
19 (3) Institution of higher education. For the purposes of this credit
20 and the itemized deduction provided by paragraph four of subdivision (d)
21 of section six hundred fifteen of this article, the term "institution of
22 higher education" shall mean any institution of higher education or
23 business, trade, technical or other occupational school, recognized and
24 approved by the regents, or any successor organization, of the universi-
25 ty of the state of New York or accredited by a nationally recognized
26 accrediting agency or association accepted as such by the regents, or
27 any successor organization, of the university of the state of New York,
28 which provides a course of study leading to the granting of a post-sec-
29 ondary degree, certificate or diploma.
30 (4) Amount of credit. (i) If allowable college tuition expenses are
31 less than five thousand dollars, the amount of the credit provided under
32 this subsection shall be equal to the applicable percentage of the less-
33 er of allowable college tuition expenses or two hundred dollars. If
34 allowable college tuition expenses are five thousand dollars or more,
35 the amount of the credit provided under this subsection shall be equal
36 to the applicable percentage of the allowable college tuition expenses
37 multiplied by four percent. Such applicable percentage shall be twenty-
38 five percent for taxable years beginning in two thousand one, fifty
39 percent for taxable years beginning in two thousand two, seventy-five
40 percent for taxable years beginning in two thousand three and one
41 hundred percent for taxable years beginning after two thousand three.
42 Provided, however, for taxable years beginning in two thousand fifteen,
43 if the sum of the allowable college tuition expenses and qualified
44 education expenses is less than five thousand dollars, the amount of the
45 credit provided under this subsection shall be equal to the lesser of
46 the sum of such expenses or four hundred dollars. For taxable years
47 beginning in two thousand fifteen, if the sum of the allowable college
48 tuition expenses and qualified education expenses is more than five
49 thousand dollars, the amount of the credit provided under this
50 subsection shall be equal to the sum of such expenses multiplied by five
51 percent. For taxable years beginning in two thousand sixteen and there-
52 after, if the sum of the allowable college tuition and education
53 expenses is more than five thousand dollars, the amount of the credit
54 provided under this subsection shall be equal to the sum of such
55 expenses multiplied by six percent. (ii) In addition, for taxable years
56 beginning in two thousand fifteen, for taxpayers whose New York adjusted
A. 6009 190
1 gross income is less than forty thousand dollars, the additional amount
2 of credit shall be equal to five percent of the American Opportunity Tax
3 Credit allowed under paragraph (i) of section 25A of the Internal Reven-
4 ue Code for the same year. For taxable years beginning in two thousand
5 sixteen and thereafter, the additional amount of the credit shall be
6 equal to ten percent of the American Opportunity Tax Credit allowed for
7 the same year. If the American Opportunity Tax Credit ceased to exist
8 at any taxable year or years, such additional credit shall be computed
9 based on the American Opportunity Tax Credit as it existed on the first
10 day of two thousand fifteen. For the purpose of computing the amount of
11 the credit under this subsection, but not including the additional
12 amount claimed for the American Opportunity Tax Credit the sum of allow-
13 able college tuition and qualified education expenses shall not exceed
14 ten thousand dollars for any taxable year.
15 (5) Refundability. The credit under this subsection shall be allowed
16 against the taxes imposed by this article for the taxable year reduced
17 by the credits permitted by this article. If the credit exceeds the tax
18 as so reduced, the taxpayer may receive, and the comptroller, subject to
19 a certificate of the commissioner, shall pay as an overpayment, without
20 interest, the amount of such excess.
21 (6) Limitation. No credit shall be allowed under this subsection to a
22 taxpayer who claims the itemized deduction provided under paragraph four
23 of subdivision (d) of section six hundred fifteen of this article.
24 § 2. This act shall take effect immediately and shall apply to taxable
25 years commencing on and after January 1, 2015.
26 PART UU
27 Section 1. Paragraph 1 of subdivision (f) of section 16 of the tax
28 law, as amended by section 34 of part A of chapter 59 of the laws of
29 2014, is amended to read as follows:
30 (1) General. The tax factor shall be, in the case of article nine-A of
31 this chapter, the amount of tax determined for the taxable year under
32 paragraph (a) of subdivision one of section two hundred ten of such
33 article. The tax factor shall be, in the case of article twenty-two of
34 this chapter, the tax determined for the taxable year under subsections
35 (a) through (d) of section six hundred one of such article. Provided
36 however, taxpayers filing under article twenty-two of this chapter shall
37 include for the purposes of the tax factor all business income attribut-
38 able to a QEZE business which is taxable under article twenty-two of
39 this chapter. The tax factor shall be, in the case of article thirty-
40 three of this chapter, the larger of the amounts of tax determined for
41 the taxable year under paragraphs one and three of subdivision (a) of
42 section fifteen hundred two of such article.
43 § 2. This act shall take effect immediately.
44 PART VV
45 Section 1. Section 1115 of the tax law is amended by adding a new
46 subdivision (jj) to read as follows:
47 (jj) Notwithstanding any other provision of this article: (1)
48 Receipts in excess of two hundred thirty thousand dollars from every
49 sale of, and consideration in excess of two hundred thirty thousand
50 dollars given or contracted to be given for, or for the use of, a vessel
51 shall be exempt from the taxes imposed by this article.
A. 6009 191
1 (2) For purposes of subdivision (b) of section eleven hundred eleven
2 of this article, the purchase price, current market value, or fair
3 rental value, as the case may be, of a vessel purchased by a resident of
4 New York state outside of this state for use outside of this state that
5 subsequently becomes subject to the compensating use tax imposed under
6 this article shall be deemed not to exceed two hundred thirty thousand
7 dollars.
8 (3) For purposes of subdivision (i) of section eleven hundred eleven
9 of this article, receipts or consideration for the lease of a vessel
10 subject to such subdivision (i) in excess of two hundred thirty thousand
11 dollars shall be exempt from the calculation of tax due under such
12 subdivision (i).
13 (4) For purposes of paragraph one of subdivision (q) of section eleven
14 hundred eleven of this article, the limitations on exclusions from the
15 definition of retail sale in paragraph one of such subdivision shall
16 apply only to the first two hundred thirty thousand dollars of receipts
17 from every sale of, or consideration given or contracted to be given
18 for, or for the use of, a vessel.
19 (5) For purposes of paragraph two of subdivision (q) of section eleven
20 hundred eleven of this article, the purchase price or market value, as
21 the case may be, of a vessel subject to tax under paragraph two of such
22 subdivision (q) shall be deemed not to exceed two hundred thirty thou-
23 sand dollars.
24 (6) For purposes of subdivision two of section eleven hundred eighteen
25 of this part, the limitation on the exclusion from compensating use tax
26 in such subdivision two with respect to qualified property, as defined
27 in such subdivision, shall apply only to the first two hundred thirty
28 thousand dollars of consideration given or contracted to be given for,
29 or for the use of, a vessel.
30 (7) For purposes of paragraph (a) of subdivision seven of section
31 eleven hundred eighteen of this part, the refund or credit allowable
32 under paragraph (a) of such subdivision seven shall be computed only
33 with regard to tax legally due and paid to another state on the first
34 two hundred thirty thousand dollars of the purchase price.
35 (8) Except as otherwise provided herein, this subdivision shall not be
36 deemed to limit any other exemption or exclusion in this article relat-
37 ing to a vessel.
38 § 2. Section 1118 of the tax law is amended by adding a new subdivi-
39 sion 13 to read as follows:
40 (13) (a) In respect to the use of a vessel by the purchaser thereof in
41 this state for not more than twenty days per calendar year.
42 (b) If a vessel brought into this state for use under this paragraph
43 is placed in a qualified facility for repairs, alterations, refitting,
44 or modifications and such repairs, alterations, refitting, or modifica-
45 tions are supported by written documentation, the twenty-day period
46 shall be tolled during the time the vessel is physically in the care,
47 custody, and control of a qualified facility, including the time spent
48 on sea trials conducted by such facility. The twenty-day period may be
49 tolled only once within a calendar year when a vessel is placed for the
50 first time in such calendar year in the physical care, custody, and
51 control of a qualified facility; however, the commissioner may grant
52 upon written request of the owner of such vessel an additional tolling
53 of the twenty-day period for purposes of repairs that arise from a writ-
54 ten guarantee given by such facility, which guarantee covers only those
55 repairs or modifications made during the first tolled period. Within
56 seventy-two hours after the date upon which such facility took
A. 6009 192
1 possession of the vessel, the owner must obtain documentation, in such
2 form as the commissioner shall prescribe, which states that the vessel
3 is under the care, custody, and control of a qualified facility and that
4 the owner does not use the vessel while in such facility. Upon
5 completion of the repairs, alterations, refitting, or modifications, the
6 owner must obtain from such facility within seventy-two hours after the
7 date the vessel is released, documentation that shows the date of
8 release and any other information the commissioner may require. Such
9 facility shall maintain a log that documents all alterations, additions,
10 repairs, and sea trials during the time a vessel is under its care,
11 custody, and control. Such documentation shall be maintained by such
12 owner and facility for at least three years from the date such vessel is
13 released.
14 (c) If a vessel is brought into the state for the sole purpose of
15 offering it for sale under a contract with a broker or dealer registered
16 pursuant to section eleven hundred thirty-four of this article, such
17 vessel is exclusively in the care, custody and control of such broker or
18 dealer, and no person makes recreational use of such vessel, the twen-
19 ty-day period shall be tolled during the time such vessel is in the
20 care, custody and control of such broker or dealer.
21 (d) The mere storage of a boat at a qualified facility does not quali-
22 fy as a tax-exempt use in this state.
23 (e) As used in this subdivision, "qualified facility" means a marina
24 or similar facility within the state that:
25 (i) is located on a navigable body of water;
26 (ii) has piers and storage facilities to provide berthing of vessels
27 in its care, custody, and control; and
28 (iii) has necessary shops and equipment to provide repair, alteration,
29 refitting, modification or warranty work on vessels.
30 § 3. This act shall take effect June 1, 2015 and shall apply in
31 accordance with the applicable provisions of sections 1106 and 1217 of
32 the tax law.
33 PART WW
34 Section 1. The tax law is amended by adding a new section 42 to read
35 as follows:
36 § 42. Empire state music production credit. (a) Allowance of credit.
37 (1) A taxpayer which is an eligible music production entity, subject to
38 tax under article nine-A or twenty-two of this chapter, shall be allowed
39 a credit against such tax to be computed as provided herein.
40 (2) The amount of the credit shall be the product (or pro rata share
41 of the product, in the case of a member of a partnership or limited
42 liability company) of twenty-five percent and the eligible production
43 costs of one or more qualified music productions. A taxpayer must incur
44 and pay in the taxable year at least (i) twenty-five thousand dollars of
45 eligible production costs if incurred and paid within the metropolitan
46 commuter transportation district as defined in section twelve hundred
47 sixty-two of the public authorities law, or (ii) twelve thousand five
48 hundred dollars if incurred and paid outside such metropolitan commuter
49 transportation district in this state in order to receive the credit.
50 (3) Eligible production costs incurred in this state but outside such
51 metropolitan commuter transportation district shall be eligible for a
52 credit of ten percent of such eligible production costs in addition to
53 the credit specified in paragraph two of this subdivision.
A. 6009 193
1 (4) Eligible production costs related to emerging artists projects
2 shall be eligible for a credit of ten percent of such eligible
3 production costs in addition to the credits specified in paragraph two
4 of this subdivision.
5 (5) No eligible production costs claimed by a taxpayer as the basis
6 for the credit under this section shall be used by such taxpayer to
7 claim any other credit pursuant to this chapter.
8 (b) Allocation of credit. The aggregate amount of tax credits allowed
9 under this section, subdivision forty-nine of section two hundred ten-B
10 and subsection (ccc) of section six hundred six of this chapter in any
11 taxable year shall be twenty-five million dollars. Such aggregate
12 amount of credits shall be allocated by the empire state development
13 corporation among taxpayers in order of priority based upon the date of
14 filing an application for allocation of music production credit with
15 such office. No single taxpayer may claim or be awarded more than ten
16 percent of the aggregate amount of tax credits allowed under this
17 section annually. If the total amount of allocated credits applied for
18 in any particular year exceeds the aggregate amount of tax credits
19 allowed for such year under this section, such excess shall be treated
20 as having been applied for on the first day of the subsequent taxable
21 year.
22 (c) Definitions. As used in this section:
23 (1) "Eligible music production entity" includes a corporation, sole
24 proprietorship, partnership, limited partnership, limited liability
25 company, or other entity.
26 (2) "Eligible music production" is a music production that results in
27 a commercially released sound recording of at least eight minutes in
28 aggregate in which eligible production costs equal to or are in excess
29 of seven thousand five hundred dollars if incurred and paid in this
30 state in the twelve months preceding the date on which the credit is
31 claimed. Provided, however, if such production costs are incurred and
32 paid outside the metropolitan commuter transportation district in this
33 state such production costs shall be equal to or in excess of three
34 thousand seven hundred fifty dollars to be deemed as an eligible music
35 production for purpose of this paragraph. In addition, such production
36 shall employ at least ten employees for the duration of the production,
37 or five employees if such production took place primarily outside the
38 metropolitan commuter transportation district in this state for the
39 duration of the production.
40 (3) "Eligible production costs for a qualified music production" are
41 costs paid and incurred in this state for tangible property and services
42 used in the production of qualified music production, as determined by
43 the department of economic development, including, but not limited to:
44 studio rental fees and related costs; instrument and equipment rental
45 fees; production session fees for musicians, songwriters, composers,
46 arrangers, music producers, programmers, engineers, and technicians;
47 mixing and mastering services of qualifying music productions; and local
48 transportation expenditures directly related to music production and
49 provided at or to the site of such music production. Eligible production
50 costs do not include costs for tangible property, or services used or
51 performed outside of this state; recording costs of any nature incurred
52 for recording of live concerts, or recordings that are primarily spoken
53 word or wildlife or nature sounds, or produced for instructional use or
54 advertising or promotional purposes; artists and producer royalties or
55 advances; licensing fees for samples; interpolations or other music
56 clearance costs; mastering or post-production expenditures for projects
A. 6009 194
1 that were not principally tracked and recorded in this state; nor any
2 costs associated with manufacturing, duplication, packaging, distrib-
3 ution, promotion, marketing and touring not specifically outlined above.
4 Except as otherwise specified herein for emerging artists, that portion
5 of any fees paid for any individual musician, songwriter, composer,
6 arranger, music producer, programmer, engineer, or technician, shall not
7 exceed ten percent of total eligible production costs submitted for any
8 one qualified music production. Such total production costs incurred and
9 paid in this state shall be equal to or exceed fifty percent of total
10 cost of an eligible production incurred and paid within and without this
11 state.
12 (4) "Emerging artist" is a citizen or permanent resident alien who has
13 not previously released an album. A group is an emerging group if more
14 than fifty percent of its members are emerging artists.
15 (5) "Emerging artist project" is a project in which the primary artist
16 is an emerging artist.
17 (d) Reporting. The department of economic development shall submit,
18 on or before December first of each year, to the governor, the director
19 of the division of the budget, the temporary president of the senate,
20 and the speaker of the assembly an annual report including, but not
21 limited to, the following information regarding the previous calendar
22 year regionally, for activity within and without the metropolitan commu-
23 ter transportation district: the total dollar amount of credits allo-
24 cated, the name and address of each eligible music production company
25 allocated credits under this section, the total amount of credits allo-
26 cated to each eligible music production company, the total amount of
27 eligible production costs and eligible production costs for each eligi-
28 ble music production company, and the estimated number of employees,
29 credit-eligible man hours, and credit-eligible wages associated with
30 each eligible music production company allocated credits under this
31 section. The report may also include any recommendations for changes in
32 the calculation or administration of the credit, recommendations regard-
33 ing continuing modification or repeal of this credit, and any other
34 information regarding this credit as may be useful and appropriate. In
35 addition, the commissioner shall annually prepare such report for the
36 posting on the department's website as soon as such report is submitted
37 to the governor, the director of the budget, the temporary president of
38 the senate, and the speaker of the assembly.
39 (e) Cross-references. For application of the credit provided for in
40 this section, see the following provisions of this chapter:
41 (1) Article 9-A: section 210-B, subdivision 49.
42 (2) Article 22: section 606, subsection (i), paragraph (1), subpara-
43 graph (B), clause (xli).
44 (3) Article 22: section 606, subsection (ccc).
45 § 2. Section 210-B of the tax law is amended by adding a new subdivi-
46 sion 49 to read as follows:
47 49. Empire state music production credit. (a) Allowance of credit. A
48 taxpayer who is eligible pursuant to section forty-two of this chapter
49 shall be allowed a credit to be computed as provided in such section
50 forty-two against the tax imposed by this article.
51 (b) Application of credit. The credit allowed under this subdivision
52 for any taxable year shall not reduce the tax due for such year to less
53 than the amount prescribed in paragraph (d) of subdivision one of
54 section two hundred ten of this article. Provided, however, that if the
55 amount of the credit allowable under this subdivision for any taxable
56 year reduces the tax to such amount, the excess shall be treated as an
A. 6009 195
1 overpayment of tax to be credited or refunded in accordance with the
2 provisions of section one thousand eighty-six of this chapter. Provided,
3 however, the provisions of subsection (c) of section one thousand
4 eighty-eight of this chapter notwithstanding, no interest shall be paid
5 thereon.
6 § 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
7 of the tax law is amended by adding a new clause (xli) to read as
8 follows:
9 (xli) Empire state musicAmount of credit
10 production credit underunder subdivision
11 subsection (ccc)forty-nine of section two
12 hundred ten-B
13 § 4. Section 606 of the tax law is amended by adding a new subsection
14 (ccc) to read as follows:
15 (ccc) Empire state music production credit. (1) Allowance of credit. A
16 taxpayer who is eligible pursuant to section forty-two of this chapter
17 shall be allowed a credit to be computed as provided in such section
18 forty-two against the tax imposed by this article.
19 (2) Application of credit. If the amount of the credit allowable under
20 this subsection for any taxable year exceeds the taxpayer's tax for such
21 year, the excess shall be treated as an overpayment of tax to be credit-
22 ed or refunded as provided in section six hundred eighty-six of this
23 article, provided, however, that no interest shall be paid thereon.
24 § 5. The state commissioner of economic development, after consulting
25 with the state commissioner of taxation and finance, shall promulgate
26 regulations by October 31, 2015 to establish procedures for the allo-
27 cation of tax credits as required by subdivision (a) of section 42 of
28 the tax law as added by section one of this act. Such rules and regu-
29 lations shall include provisions describing the application process, the
30 due dates for such applications, the standards which shall be used to
31 evaluate the applications, the documentation that will be provided to
32 taxpayers to substantiate to the New York state department of taxation
33 and finance the amount of tax credits allocated to such taxpayers, the
34 circumstances to which such tax credit may be revoked, and such other
35 provisions as deemed necessary and appropriate. Notwithstanding any
36 other provisions to the contrary in the state administrative procedure
37 act, such rules and regulations may be adopted on an emergency basis if
38 necessary to meet such October 31, 2015 deadline.
39 § 6. This act shall take effect immediately and shall apply to taxable
40 years beginning on or after January 1, 2015.
41 PART XX
42 Section 1. Paragraph 4 of subsection (b) of section 800 of the tax
43 law, as added by section 1 of part B of chapter 56 of the laws of 2011,
44 is amended to read as follows:
45 (4) Any eligible educational institution. An "eligible educational
46 institution" shall mean any public school district, a board of cooper-
47 ative educational services, a public elementary or secondary school, a
48 school approved pursuant to article eighty-five or eighty-nine of the
49 education law to serve students with disabilities of school age, or a
50 nonpublic elementary or secondary school that provides instruction in
51 grade one or above, all public library systems as defined in subdivision
52 one of section two hundred seventy-two of the education law, and all
53 public and free association libraries as such terms are defined in
54 subdivision two of section two hundred fifty-three of the education law.
A. 6009 196
1 § 2. This act shall take effect immediately and shall apply to taxable
2 years beginning on or after January 1, 2016.
3 PART YY
4 Section 1. Clause (F) of subparagraph (ii) of paragraph 1 of subdivi-
5 sion b of section 1612 of the tax law, as amended by section 1 of part Z
6 of chapter 59 of the laws of 2014, is amended to read as follows:
7 (F) notwithstanding clauses (A), (B), (C), (D) and (E) of this subpar-
8 agraph, when a vendor track, is located in Sullivan county and within
9 sixty miles from any gaming facility in a contiguous state such vendor
10 fee shall, for a period of [seven] eight years commencing April first,
11 two thousand eight, be at a rate of forty-one percent of the total
12 revenue wagered at the vendor track after payout for prizes pursuant to
13 this chapter, after which time such rate shall be as for all tracks in
14 clause (C) of this subparagraph.
15 § 2. This act shall take effect immediately and shall be deemed to
16 have been in full force and effect on and after April 1, 2015.
17 PART ZZ
18 Section 1. Subdivision 7 of section 221 of the racing, pari-mutuel
19 wagering and breeding law, as amended by chapter 18 of the laws of 2008,
20 is amended to read as follows:
21 7. In order to pay the costs of the insurance required by this section
22 and by the workers' compensation law and to carry out its other powers
23 and duties and to pay for any of its liabilities under section four-
24 teen-a of the workers' compensation law, the New York Jockey Injury
25 Compensation Fund, Inc. shall ascertain the total funding necessary and
26 establish the sums that are to be paid by all owners and trainers
27 licensed or required to be licensed under section two hundred twenty of
28 this article, to obtain the total funding amount required annually. In
29 order to provide that any sum required to be paid by an owner or trainer
30 is equitable, the fund shall establish payment schedules which reflect
31 such factors as are appropriate, including where applicable, the
32 geographic location of the racing corporation at which the owner or
33 trainer participates, the duration of such participation, the amount of
34 any purse earnings, the number of horses involved, or such other factors
35 as the fund shall determine to be fair, equitable and in the best inter-
36 ests of racing. In no event shall the amount deducted from an owner's
37 share of purses exceed [one] two per centum. The amount deducted from an
38 owner's share of purses shall not exceed one per centum after April
39 first, two thousand seventeen. In the cases of multiple ownerships and
40 limited racing appearances, the fund shall equitably adjust the sum
41 required.
42 The state racing and wagering board shall, as a condition of racing,
43 require any racing corporation or any quarterhorse racing association or
44 corporation authorized under this chapter to conduct pari-mutuel betting
45 at a race meeting or races run thereat, to require that each trainer
46 utilizing the facilities of such association or corporation and each
47 owner racing a horse shall place or have placed on deposit with the
48 horsemen's bookkeeper of such racing association or corporation, an
49 amount to be established and paid in a manner to be determined by the
50 fund.
51 Should the fund determine that the amount which has been collected in
52 the manner prescribed is inadequate to pay the annual costs required by
A. 6009 197
1 this section, it shall notify the state racing and wagering board of the
2 deficiency and the amount of the additional sum or sums necessary to be
3 paid by each owner and/or trainer in order to cover such deficiency. The
4 state racing and wagering board shall, as an additional condition of
5 racing, direct any racing corporation or any quarterhorse racing associ-
6 ation or corporation authorized under this chapter to conduct pari-mutu-
7 el betting at a race meeting or races run thereat, to require each
8 trainer and owner to place such additional sum or sums on deposit with
9 the respective horsemen's bookkeeper.
10 All amounts collected by a horsemen's bookkeeper pursuant to this
11 section shall be transferred to the fund created under this section and
12 shall be used by the fund to purchase workers' compensation insurance
13 for jockeys, apprentice jockeys and exercise persons licensed pursuant
14 to this article or article four of this chapter who are employees under
15 section two of the workers' compensation law, to pay for any of its
16 liabilities under section fourteen-a of the workers' compensation law
17 and to administer the workers' compensation program for such jockeys,
18 apprentice jockeys and exercise persons required by this section and the
19 workers' compensation law.
20 § 2. This act shall take effect immediately.
21 PART AAA
22 Section 1. This act enacts into law major components of legislation
23 relating to Lower Manhattan and the city of New York. Each component is
24 wholly contained within a Subpart identified as Subparts A through D.
25 The effective date for each particular provision contained within such
26 Subpart is set forth in the last section of such Subpart. Any provision
27 in any section contained within a Subpart, including the effective date
28 of the Subpart, which makes a reference to a section "of this act", when
29 used in connection with that particular component, shall be deemed to
30 mean and refer to the corresponding section of the Subpart in which it
31 is found.
32 SUBPART A
33 Section 1. Subparagraph (A) of paragraph 7 of subdivision (ee) of
34 section 1115 of the tax law, as amended by section 1 of subpart A of
35 part GG of chapter 59 of the laws of 2014, is amended to read as
36 follows:
37 (A) "Tenant" means a person who, as lessee, enters into a space lease
38 with a landlord for a term of ten years or more commencing on or after
39 September first, two thousand five, but not later than, in the case of a
40 space lease with respect to leased premises located in eligible areas as
41 defined in clause (i) of subparagraph (D) of this paragraph, September
42 first, two thousand [fifteen] nineteen and, in the case of a space lease
43 with respect to leased premises located in eligible areas as defined in
44 clause (ii) of subparagraph (D) of this paragraph not later than Septem-
45 ber first, two thousand [seventeen] twenty-one, of premises for use as
46 commercial office space in buildings located or to be located in the
47 eligible areas. A person who currently occupies premises for use as
48 commercial office space under an existing lease in a building in the
49 eligible areas shall not be eligible for exemption under this subdivi-
50 sion unless such existing lease, in the case of a space lease with
51 respect to leased premises located in eligible areas as defined in
52 clause (i) of subparagraph (D) of this paragraph expires according to
A. 6009 198
1 its terms before September first, two thousand [fifteen] nineteen or
2 such existing lease, in the case of a space lease with respect to leased
3 premises located in eligible areas as defined in clause (ii) of subpara-
4 graph (D) of this paragraph and such person enters into a space lease,
5 for a term of ten years or more commencing on or after September first,
6 two thousand five, of premises for use as commercial office space in a
7 building located or to be located in the eligible areas, provided that
8 such space lease with respect to leased premises located in eligible
9 areas as defined in clause (i) of subparagraph (D) of this paragraph
10 commences no later than September first, two thousand [fifteen]
11 nineteen, and provided that such space lease with respect to leased
12 premises located in eligible areas as defined in clause (ii) of subpara-
13 graph (D) of this paragraph commences no later than September first, two
14 thousand [seventeen] twenty-one and provided, further, that such space
15 lease shall expire no earlier than ten years after the expiration of the
16 original lease.
17 § 2. Section 2 of part C of chapter 2 of the laws of 2005 amending
18 the tax law relating to exemptions from sales and use taxes, as amended
19 by section 2 of subpart A of part GG of chapter 59 of the laws of 2014,
20 is amended to read as follows:
21 § 2. This act shall take effect September 1, 2005 and shall expire and
22 be deemed repealed on December 1, [2018] 2022, and shall apply to sales
23 made, uses occurring and services rendered on or after such effective
24 date, in accordance with the applicable transitional provisions of
25 sections 1106 and 1217 of the tax law; except that clause (i) of subpar-
26 agraph (D) of paragraph seven of subdivision (ee) of section 1115 of the
27 tax law, as added by section one of this act, shall expire and be deemed
28 repealed December 1, [2016] 2020.
29 § 3. This act shall take effect immediately and shall be deemed to
30 have been in full force and effect after June 30, 2015; provided, howev-
31 er, that the amendment to subparagraph (A) of paragraph 7 of subdivision
32 (ee) of section 1115 of the tax law made by section one of this act
33 shall not affect the repeal of such subdivision and shall be deemed
34 repealed therewith.
35 SUBPART B
36 Section 1. Subdivision (b) of section 25-z of the general city law, as
37 amended by section 1 of subpart D of part GG of chapter 59 of the laws
38 of 2014, is amended to read as follows:
39 (b) No eligible business shall be authorized to receive a credit under
40 any local law enacted pursuant to this article until the premises with
41 respect to which it is claiming the credit meet the requirements in the
42 definition of eligible premises and until it has obtained a certif-
43 ication of eligibility from the mayor of such city or an agency desig-
44 nated by such mayor, and an annual certification from such mayor or an
45 agency designated by such mayor as to the number of eligible aggregate
46 employment shares maintained by such eligible business that may qualify
47 for obtaining a tax credit for the eligible business' taxable year. Any
48 written documentation submitted to such mayor or such agency or agencies
49 in order to obtain any such certification shall be deemed a written
50 instrument for purposes of section 175.00 of the penal law. Such local
51 law may provide for application fees to be determined by such mayor or
52 such agency or agencies. No such certification of eligibility shall be
53 issued under any local law enacted pursuant to this article to an eligi-
A. 6009 199
1 ble business on or after July first, two thousand [fifteen] nineteen
2 unless:
3 (1) prior to such date such business has purchased, leased or entered
4 into a contract to purchase or lease particular premises or a parcel on
5 which will be constructed such premises or already owned such premises
6 or parcel;
7 (2) prior to such date improvements have been commenced on such prem-
8 ises or parcel, which improvements will meet the requirements of subdi-
9 vision (e) of section twenty-five-y of this article relating to expendi-
10 tures for improvements;
11 (3) prior to such date such business submits a preliminary application
12 for a certification of eligibility to such mayor or such agency or agen-
13 cies with respect to a proposed relocation to such particular premises;
14 and
15 (4) such business relocates to such particular premises not later than
16 thirty-six months or, in a case in which the expenditures made for the
17 improvements specified in paragraph two of this subdivision are in
18 excess of fifty million dollars within seventy-two months from the date
19 of submission of such preliminary application.
20 § 2. Subdivision (b) of section 25-ee of the general city law, as
21 amended by section 2 of subpart D of part GG of chapter 59 of the laws
22 of 2014, is amended to read as follows:
23 (b) No eligible business or special eligible business shall be author-
24 ized to receive a credit against tax under any local law enacted pursu-
25 ant to this article until the premises with respect to which it is
26 claiming the credit meet the requirements in the definition of eligible
27 premises and until it has obtained a certification of eligibility from
28 the mayor of such city or any agency designated by such mayor, and an
29 annual certification from such mayor or an agency designated by such
30 mayor as to the number of eligible aggregate employment shares main-
31 tained by such eligible business or such special eligible business that
32 may qualify for obtaining a tax credit for the eligible business' taxa-
33 ble year. No special eligible business shall be authorized to receive a
34 credit against tax under the provisions of this article unless the
35 number of relocated employee base shares calculated pursuant to subdivi-
36 sion (o) of section twenty-five-dd of this article is equal to or great-
37 er than the lesser of twenty-five percent of the number of New York city
38 base shares calculated pursuant to subdivision (p) of such section and
39 two hundred fifty employment shares. Any written documentation submitted
40 to such mayor or such agency or agencies in order to obtain any such
41 certification shall be deemed a written instrument for purposes of
42 section 175.00 of the penal law. Such local law may provide for applica-
43 tion fees to be determined by such mayor or such agency or agencies. No
44 certification of eligibility shall be issued under any local law enacted
45 pursuant to this article to an eligible business on or after July first,
46 two thousand [fifteen] nineteen unless:
47 (1) prior to such date such business has purchased, leased or entered
48 into a contract to purchase or lease premises in the eligible Lower
49 Manhattan area or a parcel on which will be constructed such premises;
50 (2) prior to such date improvements have been commenced on such prem-
51 ises or parcel, which improvements will meet the requirements of subdi-
52 vision (e) of section twenty-five-dd of this article relating to expend-
53 itures for improvements;
54 (3) prior to such date such business submits a preliminary application
55 for a certification of eligibility to such mayor or such agency or agen-
56 cies with respect to a proposed relocation to such premises; and
A. 6009 200
1 (4) such business relocates to such premises as provided in subdivi-
2 sion (j) of section twenty-five-dd of this article not later than thir-
3 ty-six months or, in a case in which the expenditures made for the
4 improvements specified in paragraph two of this subdivision are in
5 excess of fifty million dollars within seventy-two months from the date
6 of submission of such preliminary application.
7 § 3. Subdivision (b) of section 22-622 of the administrative code of
8 the city of New York, as amended by section 3 of subpart D of part GG of
9 chapter 59 of the laws of 2014, is amended to read as follows:
10 (b) No eligible business shall be authorized to receive a credit
11 against tax or a reduction in base rent subject to tax under the
12 provisions of this chapter, and of title eleven of the code as described
13 in subdivision (a) of this section, until the premises with respect to
14 which it is claiming the credit meet the requirements in the definition
15 of eligible premises and until it has obtained a certification of eligi-
16 bility from the mayor or an agency designated by the mayor, and an annu-
17 al certification from the mayor or an agency designated by the mayor as
18 to the number of eligible aggregate employment shares maintained by such
19 eligible business that may qualify for obtaining a tax credit for the
20 eligible business' taxable year. Any written documentation submitted to
21 the mayor or such agency or agencies in order to obtain any such certif-
22 ication shall be deemed a written instrument for purposes of section
23 175.00 of the penal law. Application fees for such certifications shall
24 be determined by the mayor or such agency or agencies. No certification
25 of eligibility shall be issued to an eligible business on or after July
26 first, two thousand [fifteen] nineteen unless:
27 (1) prior to such date such business has purchased, leased or entered
28 into a contract to purchase or lease particular premises or a parcel on
29 which will be constructed such premises or already owned such premises
30 or parcel;
31 (2) prior to such date improvements have been commenced on such prem-
32 ises or parcel which improvements will meet the requirements of subdivi-
33 sion (e) of section 22-621 of this chapter relating to expenditures for
34 improvements;
35 (3) prior to such date such business submits a preliminary application
36 for a certification of eligibility to such mayor or such agency or agen-
37 cies with respect to a proposed relocation to such particular premises;
38 and
39 (4) such business relocates to such particular premises not later than
40 thirty-six months or, in a case in which the expenditures made for
41 improvements specified in paragraph two of this subdivision are in
42 excess of fifty million dollars within seventy-two months from the date
43 of submission of such preliminary application.
44 § 4. Subdivision (b) of section 22-624 of the administrative code of
45 the city of New York, as amended by section 4 of subpart D of part GG of
46 chapter 59 of the laws of 2014, is amended to read as follows:
47 (b) No eligible business or special eligible business shall be author-
48 ized to receive a credit against tax under the provisions of this chap-
49 ter, and of title eleven of the code as described in subdivision (a) of
50 this section, until the premises with respect to which it is claiming
51 the credit meet the requirements in the definition of eligible premises
52 and until it has obtained a certification of eligibility from the mayor
53 or an agency designated by the mayor, and an annual certification from
54 the mayor or an agency designated by the mayor as to the number of
55 eligible aggregate employment shares maintained by such eligible busi-
56 ness or special eligible business that may qualify for obtaining a tax
A. 6009 201
1 credit for the eligible business' taxable year. No special eligible
2 business shall be authorized to receive a credit against tax under the
3 provisions of this chapter and of title eleven of the code unless the
4 number of relocated employee base shares calculated pursuant to subdivi-
5 sion (o) of section 22-623 of this chapter is equal to or greater than
6 the lesser of twenty-five percent of the number of New York city base
7 shares calculated pursuant to subdivision (p) of such section 22-623,
8 and two hundred fifty employment shares. Any written documentation
9 submitted to the mayor or such agency or agencies in order to obtain any
10 such certification shall be deemed a written instrument for purposes of
11 section 175.00 of the penal law. Application fees for such certif-
12 ications shall be determined by the mayor or such agency or agencies. No
13 certification of eligibility shall be issued to an eligible business on
14 or after July first, two thousand [fifteen] nineteen unless:
15 (1) prior to such date such business has purchased, leased or entered
16 into a contract to purchase or lease premises in the eligible Lower
17 Manhattan area or a parcel on which will be constructed such premises;
18 (2) prior to such date improvements have been commenced on such prem-
19 ises or parcel, which improvements will meet the requirements of subdi-
20 vision (e) of section 22-623 of this chapter relating to expenditures
21 for improvements;
22 (3) prior to such date such business submits a preliminary application
23 for a certification of eligibility to such mayor or such agency or agen-
24 cies with respect to a proposed relocation to such premises; and
25 (4) such business relocates to such premises not later than thirty-six
26 months or, in a case in which the expenditures made for the improvements
27 specified in paragraph two of this subdivision are in excess of fifty
28 million dollars within seventy-two months from the date of submission of
29 such preliminary application.
30 § 5. This act shall take effect immediately and shall be deemed to
31 have been in full force and effect after June 30, 2015.
32 SUBPART C
33 Section 1. Paragraph 1 of subdivision (b) of section 25-s of the
34 general city law, as amended by section 1 of subpart E of part GG of
35 chapter 59 of the laws of 2014, is amended to read as follows:
36 (1) non-residential premises that are wholly contained in property
37 that is eligible to obtain benefits under title two-D or two-F of arti-
38 cle four of the real property tax law, or would be eligible to receive
39 benefits under such article except that such property is exempt from
40 real property taxation and the requirements of paragraph (b) of subdivi-
41 sion seven of section four hundred eighty-nine-dddd of such title two-D,
42 or the requirements of subparagraph (ii) of paragraph (b) of subdivision
43 five of section four hundred eighty-nine-cccccc of such title two-F,
44 whichever is applicable, have not been satisfied, provided that applica-
45 tion for such benefits was made after May third, nineteen hundred eight-
46 y-five and prior to July first, two thousand [fifteen] nineteen, that
47 construction or renovation of such premises was described in such appli-
48 cation, that such premises have been substantially improved by such
49 construction or renovation so described, that the minimum required
50 expenditure as defined in such title two-D or two-F, whichever is appli-
51 cable, has been made, and that such real property is located in an
52 eligible area; or
A. 6009 202
1 § 2. Paragraph 3 of subdivision (b) of section 25-s of the general
2 city law, as amended by section 2 of subpart E of part GG of chapter 59
3 of the laws of 2014, is amended to read as follows:
4 (3) non-residential premises that are wholly contained in real proper-
5 ty that has obtained approval after October thirty-first, two thousand
6 and prior to July first, two thousand [fifteen] nineteen for financing
7 by an industrial development agency established pursuant to article
8 eighteen-A of the general municipal law, provided that such financing
9 has been used in whole or in part to substantially improve such premises
10 (by construction or renovation), and that expenditures have been made
11 for improvements to such real property in excess of ten per centum of
12 the value at which such real property was assessed for tax purposes for
13 the tax year in which such improvements commenced, that such expendi-
14 tures have been made within thirty-six months after the earlier of (i)
15 the issuance by such agency of bonds for such financing, or (ii) the
16 conveyance of title to such property to such agency, and that such real
17 property is located in an eligible area; or
18 § 3. Paragraph 5 of subdivision (b) of section 25-s of the general
19 city law, as amended by section 3 of subpart E of part GG of chapter 59
20 of the laws of 2014, is amended to read as follows:
21 (5) non-residential premises that are wholly contained in real proper-
22 ty owned by such city or the New York state urban development corpo-
23 ration, or a subsidiary thereof, a lease for which was approved in
24 accordance with the applicable provisions of the charter of such city or
25 by the board of directors of such corporation, and such approval was
26 obtained after October thirty-first, two thousand and prior to July
27 first, two thousand [fifteen] nineteen, provided, however, that such
28 premises were constructed or renovated subsequent to such approval, that
29 expenditures have been made subsequent to such approval for improvements
30 to such real property (by construction or renovation) in excess of ten
31 per centum of the value at which such real property was assessed for tax
32 purposes for the tax year in which such improvements commenced, that
33 such expenditures have been made within thirty-six months after the
34 effective date of such lease, and that such real property is located in
35 an eligible area; or
36 § 4. Paragraph 2 of subdivision (c) of section 25-t of the general
37 city law, as amended by section 4 of subpart E of part GG of chapter 59
38 of the laws of 2014, is amended to read as follows:
39 (2) No eligible energy user, qualified eligible energy user, on-site
40 cogenerator, or clean on-site cogenerator shall receive a rebate pursu-
41 ant to this article until it has obtained a certification from the
42 appropriate city agency in accordance with a local law enacted pursuant
43 to this section. No such certification for a qualified eligible energy
44 user shall be issued on or after November first, two thousand. No such
45 certification of any other eligible energy user, on-site cogenerator, or
46 clean on-site cogenerator shall be issued on or after July first, two
47 thousand [fifteen] nineteen.
48 § 5. Paragraph 1 of subdivision (a) of section 25-aa of the general
49 city law, as amended by section 5 of subpart E of part GG of chapter 59
50 of the laws of 2014, is amended to read as follows:
51 (1) is eligible to obtain benefits under title two-D or two-F of arti-
52 cle four of the real property tax law, or would be eligible to receive
53 benefits under such title except that such property is exempt from real
54 property taxation and the requirements of paragraph (b) of subdivision
55 seven of section four hundred eighty-nine-dddd of such title two-D, or
56 the requirements of subparagraph (ii) of paragraph (b) of subdivision
A. 6009 203
1 five of section four hundred eighty-nine-cccccc of such title two-F,
2 whichever is applicable, of the real property tax law have not been
3 satisfied, provided that application for such benefits was made after
4 the thirtieth day of June, nineteen hundred ninety-five and before the
5 first day of July, two thousand [fifteen] nineteen, that construction or
6 renovation of such building or structure was described in such applica-
7 tion, that such building or structure has been substantially improved by
8 such construction or renovation, and (i) that the minimum required
9 expenditure as defined in such title has been made, or (ii) where there
10 is no applicable minimum required expenditure, the building was
11 constructed within such period or periods of time established by title
12 two-D or two-F, whichever is applicable, of article four of the real
13 property tax law for construction of a new building or structure; or
14 § 6. Paragraphs 2 and 3 of subdivision (a) of section 25-aa of the
15 general city law, as amended by section 6 of subpart E of part GG of
16 chapter 59 of the laws of 2014, are amended to read as follows:
17 (2) has obtained approval after the thirtieth day of June, nineteen
18 hundred ninety-five and before the first day of July, two thousand
19 [fifteen] nineteen, for financing by an industrial development agency
20 established pursuant to article eighteen-A of the general municipal law,
21 provided that such financing has been used in whole or in part to
22 substantially improve such building or structure by construction or
23 renovation, that expenditures have been made for improvements to such
24 real property in excess of twenty per centum of the value at which such
25 real property was assessed for tax purposes for the tax year in which
26 such improvements commenced, and that such expenditures have been made
27 within thirty-six months after the earlier of (i) the issuance by such
28 agency of bonds for such financing, or (ii) the conveyance of title to
29 such building or structure to such agency; or
30 (3) is owned by the city of New York or the New York state urban
31 development corporation, or a subsidiary corporation thereof, a lease
32 for which was approved in accordance with the applicable provisions of
33 the charter of such city or by the board of directors of such corpo-
34 ration, as the case may be, and such approval was obtained after the
35 thirtieth day of June, nineteen hundred ninety-five and before the first
36 day of July, two thousand [fifteen] nineteen, provided that expenditures
37 have been made for improvements to such real property in excess of twen-
38 ty per centum of the value at which such real property was assessed for
39 tax purposes for the tax year in which such improvements commenced, and
40 that such expenditures have been made within thirty-six months after the
41 effective date of such lease; or
42 § 7. Subdivision (f) of section 25-bb of the general city law, as
43 amended by section 7 of subpart E of part GG of chapter 59 of the laws
44 of 2014, is amended to read as follows:
45 (f) Application and certification. An owner or lessee of a building or
46 structure located in an eligible revitalization area, or an agent of
47 such owner or lessee, may apply to such department of small business
48 services for certification that such building or structure is an eligi-
49 ble building or targeted eligible building meeting the criteria of
50 subdivision (a) or (q) of section twenty-five-aa of this article.
51 Application for such certification must be filed after the thirtieth day
52 of June, nineteen hundred ninety-five and before a building permit is
53 issued for the construction or renovation required by such subdivisions
54 and before the first day of July, two thousand [fifteen] nineteen,
55 provided that no certification for a targeted eligible building shall be
56 issued after October thirty-first, two thousand. Such application shall
A. 6009 204
1 identify expenditures to be made that will affect eligibility under such
2 subdivision (a) or (q). Upon completion of such expenditures, an appli-
3 cant shall supplement such application to provide information (i) estab-
4 lishing that the criteria of such subdivision (a) or (q) have been met;
5 (ii) establishing a basis for determining the amount of special rebates,
6 including a basis for an allocation of the special rebate among eligible
7 revitalization area energy users purchasing or otherwise receiving ener-
8 gy services from an eligible redistributor of energy or a qualified
9 eligible redistributor of energy; and (iii) supporting an allocation of
10 charges for energy services between eligible charges and other charges.
11 Such department shall certify a building or structure as an eligible
12 building or targeted eligible building after receipt and review of such
13 information and upon a determination that such information establishes
14 that the building or structure qualifies as an eligible building or
15 targeted eligible building. Such department shall mail such certif-
16 ication or notice thereof to the applicant upon issuance. Such certif-
17 ication shall remain in effect provided the eligible redistributor of
18 energy or qualified eligible redistributor of energy reports any changes
19 that materially affect the amount of the special rebates to which it is
20 entitled or the amount of reduction required by subdivision (c) of this
21 section in an energy services bill of an eligible revitalization area
22 energy user and otherwise complies with the requirements of this arti-
23 cle. Such department shall notify the private utility or public utility
24 service required to make a special rebate to such redistributor of the
25 amount of such special rebate established at the time of certification
26 and any changes in such amount and any suspension or termination by such
27 department of certification under this subdivision. Such department may
28 require some or all of the information required as part of an applica-
29 tion or other report be provided by a licensed engineer.
30 § 8. Paragraph 1 of subdivision (i) of section 22-601 of the adminis-
31 trative code of the city of New York, as amended by section 8 of subpart
32 E of part GG of chapter 59 of the laws of 2014, is amended to read as
33 follows:
34 (1) Non-residential premises that are wholly contained in property
35 that is eligible to obtain benefits under part four or part five of
36 subchapter two of chapter two of title eleven of this code, or would be
37 eligible to receive benefits under such chapter except that such proper-
38 ty is exempt from real property taxation and the requirements of para-
39 graph two of subdivision g of section 11-259 of this code, or the
40 requirements of subparagraph (b) of paragraph two of subdivision e of
41 section 11-270 of this code, whichever is applicable, have not been
42 satisfied, provided that application for such benefits was made after
43 May third, nineteen hundred eighty-five and prior to July first, two
44 thousand [fifteen] nineteen, that construction or renovation of such
45 premises was described in such application, that such premises have been
46 substantially improved by such construction or renovation so described,
47 that the minimum required expenditure as defined in such part four or
48 part five, whichever is applicable, has been made, and that such real
49 property is located in an eligible area; or
50 § 9. Paragraph 3 of subdivision (i) of section 22-601 of the adminis-
51 trative code of the city of New York, as amended by section 9 of subpart
52 E of part GG of chapter 59 of the laws of 2014, is amended to read as
53 follows:
54 (3) non-residential premises that are wholly contained in real proper-
55 ty that has obtained approval after October thirty-first, two thousand
56 and prior to July first, two thousand [fifteen] nineteen for financing
A. 6009 205
1 by an industrial development agency established pursuant to article
2 eighteen-A of the general municipal law, provided that such financing
3 has been used in whole or in part to substantially improve such premises
4 (by construction or renovation), and that expenditures have been made
5 for improvements to such real property in excess of ten per centum of
6 the value at which such real property was assessed for tax purposes for
7 the tax year in which such improvements commenced, that such expendi-
8 tures have been made within thirty-six months after the earlier of (i)
9 the issuance by such agency of bonds for such financing, or (ii) the
10 conveyance of title to such property to such agency, and that such real
11 property is located in an eligible area; or
12 § 10. Paragraph 5 of subdivision (i) of section 22-601 of the adminis-
13 trative code of the city of New York, as amended by section 10 of
14 subpart E of part GG of chapter 59 of the laws of 2014, is amended to
15 read as follows:
16 (5) non-residential premises that are wholly contained in real proper-
17 ty owned by such city or the New York state urban development corpo-
18 ration, or a subsidiary thereof, a lease for which was approved in
19 accordance with the applicable provisions of the charter of such city or
20 by the board of directors of such corporation, and such approval was
21 obtained after October thirty-first, two thousand and prior to July
22 first, two thousand [fifteen] nineteen, provided, however, that such
23 premises were constructed or renovated subsequent to such approval, that
24 expenditures have been made subsequent to such approval for improvements
25 to such real property (by construction or renovation) in excess of ten
26 per centum of the value at which such real property was assessed for tax
27 purposes for the tax year in which such improvements commenced, that
28 such expenditures have been made within thirty-six months after the
29 effective date of such lease, and that such real property is located in
30 an eligible area; or
31 § 11. Paragraph 1 of subdivision (c) of section 22-602 of the adminis-
32 trative code of the city of New York, as amended by section 11 of
33 subpart E of part GG of chapter 59 of the laws of 2014, is amended to
34 read as follows:
35 (1) No eligible energy user, qualified eligible energy user, on-site
36 cogenerator, clean on-site cogenerator or special eligible energy user
37 shall receive a rebate pursuant to this chapter until it has obtained a
38 certification as an eligible energy user, qualified eligible energy
39 user, on-site cogenerator, clean on-site cogenerator or special eligible
40 energy user, respectively, from the commissioner of small business
41 services. No such certification for a qualified eligible energy user
42 shall be issued on or after July first, two thousand three. No such
43 certification of any other eligible energy user, on-site cogenerator or
44 clean on-site cogenerator shall be issued on or after July first, two
45 thousand [fifteen] nineteen. The commissioner of small business
46 services, after notice and hearing, may revoke a certification issued
47 pursuant to this subdivision where it is found that eligibility criteria
48 have not been met or that compliance with conditions for continued
49 eligibility has not been maintained. The corporation counsel may main-
50 tain a civil action to recover an amount equal to any benefits improper-
51 ly obtained.
52 § 12. This act shall take effect immediately and shall be deemed to
53 have been in full force and effect after June 30, 2015.
54 SUBPART D
A. 6009 206
1 Section 1. Subparagraph (b-2) of paragraph 2 of subdivision i of
2 section 11-704 of the administrative code of the city of New York, as
3 amended by section 1 of subpart F of part GG of chapter 59 of the laws
4 of 2014, is amended to read as follows:
5 (b-2) The amount of the special reduction allowed by this subdivision
6 with respect to a lease other than a sublease commencing between July
7 first, two thousand five and June thirtieth, two thousand [fifteen]
8 nineteen with an initial or renewal lease term of at least five years
9 shall be determined as follows:
10 (i) For the base year the amount of such special reduction shall be
11 equal to the base rent for the base year.
12 (ii) For the first, second, third and fourth twelve-month periods
13 following the base year the amount of such special reduction shall be
14 equal to the lesser of (A) the base rent for each such twelve-month
15 period or (B) the base rent for the base year.
16 § 2. This act shall take effect immediately and shall be deemed to
17 have been in full force and effect after June 30, 2015.
18 § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
19 sion, section or part of this act shall be adjudged by any court of
20 competent jurisdiction to be invalid, such judgment shall not affect,
21 impair, or invalidate the remainder thereof, but shall be confined in
22 its operation to the clause, sentence, paragraph, subdivision, section
23 or part thereof directly involved in the controversy in which such judg-
24 ment shall have been rendered. It is hereby declared to be the intent of
25 the legislature that this act would have been enacted even if such
26 invalid provisions had not been included herein.
27 § 3. This act shall take effect immediately provided, however, that
28 the applicable effective date of Subparts A through D of this act shall
29 be as specifically set forth in the last section of such Subparts.
30 § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
31 sion, section or part of this act shall be adjudged by any court of
32 competent jurisdiction to be invalid, such judgment shall not affect,
33 impair, or invalidate the remainder thereof, but shall be confined in
34 its operation to the clause, sentence, paragraph, subdivision, section
35 or part thereof directly involved in the controversy in which such judg-
36 ment shall have been rendered. It is hereby declared to be the intent of
37 the legislature that this act would have been enacted even if such
38 invalid provisions had not been included herein.
39 § 3. This act shall take effect immediately provided, however, that
40 the applicable effective date of Parts A through AAA of this act shall
41 be as specifically set forth in the last section of such Parts.