Enacts into law major components of legislation necessary to implement the state fiscal plan relating to revenues of the state; relates to the New York city personal income tax rates (Part B); relates to the suspension of STAR exemptions of property owned by persons with outstanding tax liabilities (Part C); relates to a recoupment of certain STAR exemptions; relates to determining primary residency; relates to verification of residence (Part E); makes technical corrections to the school tax relief fund; provides one-time STAR relief (Part F); relates to certification of compliance with New York property tax relief check program requirements (Part G); relates to extending the limitation on charitable contribution deductions for certain taxpayers (Part H); makes certain technical corrections (Part I); relates to a report regarding the empire state commercial production tax credit (Part J); includes video game developers in the excelsior jobs program (Part K); relates to the business income base rate in relation to certain small business taxpayers (Part N); relates to creating a technology internship program and establishes tax credits for such program (Part O); relates to Brownfields (Part R); relates to the biennial statements filed with the secretary of state (Part S); makes corrections to the corporate tax reform provisions (Part T); exempts certain items of tangible personal property furnished to customers by cider producers, breweries and distilleries at tastings (Part U); relates to the imposition of the sales and compensating use tax on prepaid mobile calling services (Part V); exempts electricity provided by certain sources from the sales tax (Part Z); allows a reimbursement of the petroleum business tax for highway diesel motor fuel used in farm production (Part AA); relates to the estate tax (Part BB); relates to the effectiveness of provisions of law relating to serving an income execution with respect to individual tax debtors without filing a warrant (Part DD); relates to extending certain provisions concerning the hospital excess liability pool (Part FF); relates to authorizing clearance of past-due tax liabilities for state or local authority grant applicants (Part GG); allows the commissioner of taxation and finance to enter into reciprocal tax collection agreements with other states (Part HH); relates to the disclosure of certain information relating to a person receiving public assistance to the commissioner of the department of taxation and finance (Part LL); relates to capital awards to vendor tracks (Part MM); relates to licenses for simulcast facilities, sums relating to track simulcast, simulcast of out-of-state thoroughbred races, simulcasting of races run by out-of-state harness tracks and distributions of wagers; extends the effectiveness of certain provisions of law relating to simulcasting and the imposition of certain taxes and of certain provisions of the racing, pari-mutuel wagering and breeding law (Part NN); relates to video lottery gaming and provides for the repeal of provisions relating thereto upon expiration (Part OO); relates to a franchised corporation (Part PP); relates to the credit for certain alternative fuel vehicle refueling property and electric vehicle recharging property (Part RR); relates to costs associated with the department of public service (Part SS); relates to the amount of credit towards sales and compensating use taxes for vendors (Part TT); relates to simple personal income tax (Part UU); relates to the undertaking required during the pendency of a stay of enforcement of a judgment against a participating or non-participating manufacturer under the master settlement agreement (Part VV); relates to the stock transfer tax and repeals certain provisions of the tax law relating thereto (Part WW); establishes protocols for combative sports and authorizes mixed martial arts events in the state; relates to the imposition of a tax on the gross receipts of any person holding any professional or amateur boxing, sparring or wrestling match or exhibition, or professional combative sports match or exhibition; allows matches or exhibitions on the premises of certain licensees (Part XX); relates to the authority of counties to impose sales and compensating use taxes pursuant to the authority of article 29 of the tax law and repeals certain sections of the tax law relating thereto (Part YY); exempts from sales and compensating use taxes the purchase of general aviation aircraft and provides for the repeal upon the expiration of certain provisions thereof (Part ZZ); relates to adding the use of a vessel by the purchaser in this state for not more than 20 days per calendar day to the list of exemptions to the compensating use tax (Part AAA); relates to establishing a credit against income tax for the rehabilitation of distressed commercial properties (Part BBB); relates to QEZE tax reduction credits (Part CCC); provides for a sales tax exemption for farm abstracts (Part DDD); relates to sales and compensating use taxes (Part EEE); grants sales and compensating use tax exemptions for certain tangible personal property and services used in the operation of recreational skiing facilities (Part FFF); relates to the exemption of political subdivisions from the imposition of the metropolitan commuter transportation mobility tax (Part GGG); relates to the exemption of libraries from the imposition of the metropolitan commuter transportation mobility tax (Part HHH); exempts certain prekindergarten special education programs from the metropolitan commuter transportation mobility tax (Part III); relates to the definition of allowable college tuition expenses and the tax credit allowed for such expenses (Part JJJ); relates to providing an asbestos remediation tax credit (Part KKK); relates to the creation of the cigarette tax enforcement account and repealing provisions of the administrative code of the city of New York relating thereto (Part LLL); relates to veterans entrepreneurship assistance (Part MMM); relates to the empire state film production credit (Part NNN); relates to providing certain tax credits for construction or rehabilitation of middle-income housing (Part OOO); relates to real estate investment trusts (Part PPP); relates to establishing an elderly residential emergency repair personal income tax credit (Part QQQ); relates to sales tax in empire zones (Part RRR); relates to exempting from sales and use taxes certain tangible personal property or services (Part SSS); relates to the green building credit (Part TTT); relates to establishing a senior utility circuit breaker personal income tax credit (Part UUU); relates to establishing limitations upon real property tax levies in cities with a population of one million or more (Part VVV); relates to authorizing the division of state police to conduct qualification investigations for those applying for casino key employee licenses or gaming employee registrations (Part WWW); relates to out-of-state or out-of-country races, unclaimed winnings, fast track betting, and account wagering; and repealing certain provisions of such law relating thereto (Part XXX); relates to the New York Jockey Injury Compensation Fund, Inc. (Part YYY); relates to payments received by regional harness tracks for certain wagers (Part ZZZ); relates to vendor fees paid to vendor tracks (Part AAAA); relates to rent increase exemptions for persons regardless of their age or disability status (Part BBBB); relates to authorizing a tax exemption for senior citizen tenants residing in manufactured home parks in certain municipal corporations and school districts (Part CCCC); relates to extending eligibility, for an additional three years, for the exemption of certain new or substantially rehabilitated multiple dwellings for local taxation (Part DDDD); relates to the state school tax reduction credit (Part EEEE); relates to reducing federal adjusted gross income, for purposes of state personal income taxes, by the amount of interest on indebtedness incurred for tuition and fees paid for undergraduate education (Part FFFF); relates to establishing the public housing revitalization fund; authorizes the New York city council to oversee the activities of certain public authorities (Part GGGG).
STATE OF NEW YORK
________________________________________________________________________
4209
2015-2016 Regular Sessions
IN SENATE
March 9, 2015
___________
Introduced by COMMITTEE ON RULES -- read twice and ordered printed, and
when printed to be committed to the Committee on Finance
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, the 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 prop-
erty owned by persons with outstanding tax liabilities, in relation to
the suspension 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 a recoupment of
certain STAR exemptions; to amend the administrative code of the city
of New York and the emergency tenant protection act of nineteen seven-
ty-four, in relation to determining primary residency and to amend the
tax law, in relation to verification of residence (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 real property tax law and the tax law, in
relation to the New York property tax relief check program; to amend
the education law and the general municipal law, in relation to
certification of compliance with the New York property tax relief
check program requirements (Part G); to amend the tax law and the
administrative code of the city of New York, in relation to extending
the limitation on charitable contribution deductions for certain
taxpayers (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 including video game developers in
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD20018-01-5
S. 4209 2
the excelsior jobs program (Part K); intentionally omitted (Part L);
intentionally omitted (Part M); to amend the tax law, in relation to
the business income base rate; in relation to certain small business
taxpayers (Part N); to amend the economic development law and the tax
law, in relation to creating a technology internship program and
establishing tax credits for such program (Part O); intentionally
omitted (Part P); intentionally omitted (Part Q); to amend the envi-
ronmental conservation law, the tax law and the general municipal law,
in relation to eligibility for participation in the brownfield cleanup
program, assignment of the brownfield redevelopment tax credits and
brownfield opportunity areas; to amend part H of chapter 1 of the laws
of 2003, amending the tax law relating to brownfield redevelopment tax
credits, remediated brownfield credit for real property taxes for
qualified sites and environmental remediation insurance credits, in
relation to tax credits for certain sites; to amend the environmental
conservation law, in relation to hazardous waste generator fees and
taxes; to amend the environmental conservation law and the state
finance law, in relation to the environmental restoration program; and
to repeal certain provisions of the environmental conservation law and
the tax law relating thereto (Part R); to amend the business corpo-
ration 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 repeal-
ing 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); intentionally omitted (Part X); intentionally omitted (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 subdivisions (n) and (p) of
section 1210 of such law relating to tax exemptions imposed by resol-
ution in cities having a population of one million or more persons
(Part Z); to amend the tax law, in relation to allowing a reimburse-
ment of the petroleum business tax for highway diesel motor fuel used
in farm production (Part AA); to amend the tax law, in relation to
calculating the estate tax imposed under the tax rate table, clarify-
ing the phase out date for certain gift add backs and disallowing
deductions relating to intangible personal property for estates of
non-resident decedents; and to amend the tax law, in relation to
computation of estate tax (Part BB); intentionally omitted (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); intentionally omitted (Part EE); to amend chapter
266 of the laws of 1986 amending the civil practice law and rules and
other laws relating to malpractice and professional medical conduct;
and to amend chapter 63 of the laws of 2001 amending chapter 20 of the
laws of 2001 amending the military law and other laws relating to
making appropriations for the support of government, in relation to
extending certain provisions concerning the hospital excess liability
S. 4209 3
pool and requiring a tax clearance for doctors and dentists to be
eligible for such excess coverage (Part FF); to amend the public
authorities law and the tax law, in relation to authorizing clearance
of past-due tax liabilities for state or local authority grant appli-
cants (Part GG); to amend the tax law and the state finance law, in
relation to allowing the commissioner of taxation and finance to enter
into reciprocal tax collection agreements with other states (Part HH);
intentionally omitted (Part II); intentionally omitted (Part JJ);
intentionally omitted (Part KK); to amend the social services law, in
relation to the disclosure of certain information relating to a person
receiving public assistance to the commissioner of the department of
taxation and finance (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 simul-
cast facilities, sums relating to track simulcast, simulcast of out-
of-state thoroughbred races, simulcasting 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 breed-
ing law and other laws relating to simulcasting and chapter 346 of the
laws of 1990 amending the 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;
and providing for the repeal of such provisions upon expiration there-
of (Part OO); to amend the racing, pari-mutuel wagering and breeding
law, in relation to a franchised corporation (Part PP); intentionally
omitted (Part QQ); to amend the tax law, in relation to the credit for
certain alternative fuel vehicle refueling property and electric vehi-
cle recharging property (Part RR); to amend the public service law, in
relation to costs associated with the department of public service
(Part SS); to amend the tax law, in relation to the amount of credit
towards sales and compensating use taxes for vendors (Part TT); to
amend the tax law, in relation to simple personal income tax (Part
UU); to amend the civil practice law and rules, in relation to the
undertaking required during the pendency of a stay of enforcement of a
judgment against a participating or non-participating manufacturer
under the master settlement agreement (Part VV); to amend the tax law,
in relation to the stock transfer tax, and to repeal certain
provisions of the tax law relating thereto (Part WW); to amend chapter
912 of the laws of 1920 relating to the regulation of boxing, sparring
and wrestling, in relation to establishing protocols for combative
sports and authorizing mixed martial arts events in this state; to
amend the tax law, in relation to the imposition of a tax on the gross
receipts of any person holding any professional or amateur boxing,
sparring or wrestling match or exhibition, or professional combative
sports match or exhibition; and to amend the alcoholic beverage
control law, in relation to allowing matches or exhibitions on the
premises of certain licensees (Part XX); to amend the tax law, in
relation to the authority of counties to impose sales and compensating
use taxes pursuant to the authority of article 29 of such law; and to
repeal certain provisions of sections 1210 and 1224 and section 1210-E
of such law relating thereto (Part YY); to amend the tax law, in
relation to exempting from sales and compensating use taxes the
purchase of general aviation aircraft; and providing for the repeal of
S. 4209 4
certain provisions upon expiration thereof (Part ZZ); to amend the tax
law, in relation to adding the use of a vessel by the purchaser in
this state for not more than 20 days per calendar day to the list of
exemptions to the compensating use tax (Part AAA); to amend the tax
law, in relation to establishing a credit against income tax for the
rehabilitation of distressed commercial properties (Part BBB); to
amend the tax law, in relation to QEZE tax reduction credits (Part
CCC); to amend the tax law, in relation to providing for a sales tax
exemption for farm abstracts (Part DDD); to amend the tax law, in
relation to sales and compensating use taxes (Part EEE); to amend the
tax law, in relation to granting sales and compensating use tax
exemptions for certain tangible personal property and services used in
the operation of recreational skiing facilities (Part FFF); to amend
the tax law, in relation to the exemption of political subdivisions
from the imposition of the metropolitan commuter transportation mobil-
ity tax (Part GGG); to amend the tax law, in relation to the exemption
of libraries from the imposition of the metropolitan commuter trans-
portation mobility tax (Part HHH); to amend the tax law, in relation
to exempting certain prekindergarten special education programs from
the metropolitan commuter transportation mobility tax (Part III); to
amend the tax law, in relation to the definition of "allowable college
tuition expenses" and the tax credit allowed for such expenses (Part
JJJ); to amend the tax law, in relation to providing an asbestos reme-
diation tax credit (Part KKK); to amend the tax law and the state
finance law, in relation to the creation of the cigarette tax enforce-
ment account and repealing provisions of the administrative code of
the city of New York relating thereto (Part LLL); to amend the econom-
ic development law, in relation to veterans entrepreneurship assist-
ance (Part MMM); to amend the tax law, in relation to the empire state
film production credit (Part NNN); to amend the public housing law and
the tax law, in relation to providing certain tax credits for
construction or rehabilitation of middle-income housing (Part OOO); to
amend the tax law, in relation to real estate investment trusts (Part
PPP); to amend the tax law, in relation to establishing an elderly
residential emergency repair personal income tax credit (Part QQQ);
relating to sales tax in empire zones (Part RRR); to amend the tax
law, in relation to exempting from sales and use taxes certain tangi-
ble personal property or services (Part SSS); to amend the tax law, in
relation to the green building credit (Part TTT); to amend the tax
law, in relation to establishing a senior utility circuit breaker
personal income tax credit (Part UUU); to amend the general municipal
law and the municipal home rule law, in relation to establishing limi-
tations upon real property tax levies in cities with a population of
one million or more (Part VVV); to amend the racing, pari-mutuel
wagering and breeding law, in relation to authorizing the division of
state police to conduct qualification investigations for those apply-
ing for casino key employee licenses or gaming employee registrations
(Part WWW); to amend the racing, pari-mutuel wagering and breeding
law, in relation to out-of-state or out-of-country races, unclaimed
winnings, fast track betting, and account wagering; and repealing
certain provisions of such law relating thereto (Part XXX); to amend
the racing, pari-mutuel wagering and breeding law, in relation to the
New York Jockey Injury Compensation Fund, Inc. (Part YYY); to amend
the racing, pari-mutuel wagering and breeding law, in relation to
payments received by regional harness tracks for certain wagers (Part
ZZZ); to amend the tax law, in relation to vendor fees paid to vendor
S. 4209 5
tracks (Part AAAA); to amend the real property tax law, in relation to
rent increase exemptions for persons regardless of their age or disa-
bility status (Part BBBB); to amend the real property tax law, in
relation to authorizing a tax exemption for senior citizen tenants
residing in manufactured home parks in certain municipal corporations
and school districts (Part CCCC); to amend the real property tax law,
in relation to extending eligibility, for an additional three years,
for the exemption of certain new or substantially rehabilitated multi-
ple dwellings from local taxation (Part DDDD); to amend the tax law,
in relation to the state school tax reduction credit (Part EEEE); to
amend the tax law, in relation to reducing federal adjusted gross
income, for purposes of state personal income taxes, by the amount of
interest on indebtedness incurred for tuition and fees paid for under-
graduate education (Part FFFF); and to amend the state finance law and
the public housing law, in relation to establishing the public housing
revitalization fund; and to amend the New York city charter, in
relation to authorizing the New York city council to oversee the
activities of certain public authorities (Part GGGG)
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 GGGG. 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
10 section of the Part in which it is found. Section three of this act sets
11 forth the general effective date of this act.
12 PART A
13 Intentionally Omitted
14 PART B
15 Section 1. Subdivision 1 of section 54-f of the state finance law, as
16 amended by section 1 of part EE of chapter 57 of the laws of 2010, is
17 amended to read as follows:
18 1. Except as otherwise provided by law, the provisions of this section
19 shall be utilized by the state to calculate the annual amount due to be
20 paid to the city of New York by the state to reimburse such city for tax
21 receipts foregone (a) as a result of [a] chapter three hundred eighty-
22 nine of the laws of nineteen hundred ninety-seven [that reduced the
23 rates of tax imposed pursuant to authority granted under section thir-
24 teen hundred one of the tax law and that created a new "state school tax
25 reduction credit" against liabilities imposed pursuant to the authority
26 granted the city by such section and other statutes authorizing the
27 imposition of a personal income tax on the residents of such city], and
28 (b) as a result of the tax rate adjustments made by [a] chapter fifty-
S. 4209 6
1 seven of the laws of two thousand ten and by a chapter of the laws of
2 two thousand fifteen, which amended this subdivision.
3 § 2. Paragraphs 1, 2 and 3 of subsection (a) of section 1304 of the
4 tax law, as amended by section 2 of part EE of chapter 57 of the laws of
5 2010, are amended to read as follows:
6 (1) Resident married individuals filing joint returns and resident
7 surviving spouses. The tax under this section for each taxable year on
8 the city taxable income of every city resident married individual who
9 makes a single return jointly with his or her spouse under subsection
10 (b) of section thirteen hundred six of this article and on the city
11 taxable income of every city resident surviving spouse shall be deter-
12 mined in accordance with the following tables:
13 (A) For taxable years beginning after two thousand fourteen:
14 If the city taxable income is:The tax is:
15 Not over $21,6002.55% of the city taxable income
16 Over $21,600 but not$551 plus 3.1% of excess
17 over $45,000over $21,600
18 Over $45,000 but not$1,276 plus 3.15% of excess
19 over $90,000over $45,000
20 Over $90,000 but not$2,694 plus 3.2% of excess
21 over $500,000over $90,000
22 Over $500,000$16,803 plus 3.4% of excess
23 over $500,000
24 (B) For taxable years beginning after two thousand nine and before two
25 thousand fifteen:
26 If the city taxable income is: The tax is:
27 Not over $21,600 2.55% of the city taxable income
28 Over $21,600 but not $551 plus 3.1% of excess
29 over $45,000 over $21,600
30 Over $45,000 but not $1,276 plus 3.15% of excess
31 over $90,000 over $45,000
32 Over $90,000 but not $2,694 plus 3.2% of excess
33 over $500,000 over $90,000
34 Over $500,000 $15,814 plus 3.4% of excess
35 over $500,000
36 [(B) For taxable years beginning in two thousand one and two thousand
37 two and for taxable years beginning after two thousand five and before
38 two thousand ten:
39 If the city taxable income is: The tax is:
40 Not over $21,600 2.55% of the city taxable income
41 Over $21,600 but not $551 plus 3.1% of excess
42 over $45,000 over $21,600
43 Over $45,000 but not $1,276 plus 3.15% of excess
44 over $90,000 over $45,000
45 Over $90,000 $2,694 plus 3.2% of excess
46 over $90,000]
47 (2) Resident heads of households. The tax under this section for each
48 taxable year on the city taxable income of every city resident head of a
49 household shall be determined in accordance with the following tables:
50 (A) For taxable years beginning after two thousand fourteen:
S. 4209 7
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 plus 3.2% of excess
33 over $60,000]
34 (3) Resident unmarried individuals, resident married individuals
35 filing separate returns and resident estates and trusts. The tax under
36 this section for each taxable year on the city taxable income of every
37 city resident individual who is not a city resident married individual
38 who makes a single return jointly with his or her spouse under
39 subsection (b) of section thirteen hundred six of this article or a city
40 resident head of household or a city resident surviving spouse, and on
41 the city taxable income of every city resident estate and trust shall be
42 determined in accordance with the following tables:
43 (A) For taxable years beginning after two thousand fourteen:
44 If the city taxable income is:The tax is:
45 Not over $12,0002.55% of the city taxable income
46 Over $12,000 but not$306 plus 3.1% of excess
47 over $25,000over $12,000
48 Over $25,000 but not$709 plus 3.15% of excess
49 over $50,000over $25,000
S. 4209 8
1 Over $50,000 but not$1,497 plus 3.2% of excess
2 over $500,000over $50,000
3 Over $500,000$16,891 plus 3.4%
4 of excess over $500,000
5 (B) For taxable years beginning after two thousand nine and before two
6 thousand fifteen:
7 If the city taxable income is: The tax is:
8 Not over $12,000 2.55% of the city taxable income
9 Over $12,000 but not $306 plus 3.1% of excess
10 over $25,000 over $12,000
11 Over $25,000 but not $709 plus 3.15% of excess
12 over $50,000 over $25,000
13 Over $50,000 but not $1,497 plus 3.2% of excess
14 over $500,000 over $50,000
15 Over $500,000 $15,897 plus 3.4%
16 of excess over $500,000
17 [(B) For taxable years beginning in two thousand one and two thousand
18 two and for taxable years beginning after two thousand five and before
19 two thousand ten:
20 If the city taxable income is: The tax is:
21 Not over $12,000 2.55% of the city taxable income
22 Over $12,000 but not $306 plus 3.1% of excess
23 over $25,000 over $12,000
24 Over $25,000 but not $709 plus 3.15% of excess
25 over $50,000 over $25,000
26 Over $50,000 $1,497 plus 3.2% of excess
27 over $50,000]
28 § 3. Paragraphs 1, 2 and 3 of subdivision (a) of section 11-1701 of
29 the administrative code of the city of New York, as amended by section 3
30 of part EE of chapter 57 of the laws of 2010, are amended to read as
31 follows:
32 (1) Resident married individuals filing joint returns and resident
33 surviving spouses. The tax under this section for each taxable year on
34 the city taxable income of every city resident married individual who
35 makes a single return jointly with his or her spouse under subdivision
36 (b) of section 11-1751 of this chapter and on the city taxable income of
37 every city resident surviving spouse shall be determined in accordance
38 with the following tables:
39 (A) For taxable years beginning after two thousand fourteen:
40 If the city taxable income is:The tax is:
41 Not over $21,6002.55% of the city taxable income
42 Over $21,600 but not$551 plus 3.1% of excess
43 over $45,000over $21,600
44 Over $45,000 but not$1,276 plus 3.15% of excess
45 over $90,000over $45,000
46 Over $90,000 but not$2,694 plus 3.2% of excess
47 over $500,000over $90,000
48 Over $500,000$16,803 plus 3.4% of excess
49 over $500,000
50 (B) For taxable years beginning after two thousand nine and before two
51 thousand fifteen:
S. 4209 9
1 If the city taxable income is: The tax is:
2 Not over $21,600 2.55% of the city taxable income
3 Over $21,600 but not $551 plus 3.1% of excess
4 over $45,000 over $21,600
5 Over $45,000 but not $1,276 plus 3.15% of excess
6 over $90,000 over $45,000
7 Over $90,000 but not $2,694 plus 3.2% of excess
8 over $500,000 over $90,000
9 Over $500,000 $15,814 plus 3.4% of excess
10 over $500,000
11 [(B) For taxable years beginning in two thousand one and two thousand
12 two and for taxable years beginning after two thousand five and before
13 two thousand ten:
14 If the city taxable income is: The tax is:
15 Not over $21,600 2.55% of the city taxable income
16 Over $21,600 but not $551 plus 3.1% of excess
17 over $45,000 over $21,600
18 Over $45,000 but not $1,276 plus 3.15% of excess
19 over $90,000 over $45,000
20 Over $90,000 $2,694 plus 3.2% of excess
21 over $90,000]
22 (2) Resident heads of households. The tax under this section for each
23 taxable year on the city taxable income of every city resident head of a
24 household shall be determined in accordance with the following tables:
25 (A) For taxable years beginning after two thousand fourteen:
26 If the city taxable income is:The tax is:
27 Not over $14,4002.55% of the city taxable income
28 Over $14,400 but not $367 plus 3.1% of excess
29 over $30,000over $14,400
30 Over $30,000 but not $851 plus 3.15% of excess
31 over $60,000over $30,000
32 Over $60,000 but not$1,796 plus 3.2% of excess
33 over $500,000over $60,000
34 Over $500,000$16,869 plus 3.4% of excess
35 over $500,000
36 (B) For taxable years beginning after two thousand nine and before two
37 thousand fifteen:
38 If the city taxable income is: The tax is:
39 Not over $14,400 2.55% of the city taxable income
40 Over $14,400 but not $367 plus 3.1% of excess
41 over $30,000 over $14,400
42 Over $30,000 but not $851 plus 3.15% of excess
43 over $60,000 over $30,000
44 Over $60,000 but not $1,796 plus 3.2% of excess
45 over $500,000 over $60,000
46 Over $500,000 $15,876 plus 3.4% of excess
47 over $500,000
48 [(B) For taxable years beginning in two thousand one and two thousand
49 two and for taxable years beginning after two thousand five and before
50 two thousand ten:
S. 4209 10
1 If the city taxable income is: The tax is:
2 Not over $14,400 2.55% of the city taxable income
3 Over $14,400 but not $367 plus 3.1% of excess
4 over $30,000 over $14,400
5 Over $30,000 but not $851 plus 3.15% of excess
6 over $60,000 over $30,000
7 Over $60,000 $1,796
8 plus 3.2% of excess
9 over $60,000]
10 (3) Resident unmarried individuals, resident married individuals
11 filing separate returns and resident estates and trusts. The tax under
12 this section for each taxable year on the city taxable income of every
13 city resident individual who is not a married individual who makes a
14 single return jointly with his or her spouse under subdivision (b) of
15 section 11-1751 of this chapter or a city resident head of a household
16 or a city resident surviving spouse, and on the city taxable income of
17 every city resident estate and trust shall be determined in accordance
18 with the following tables:
19 (A) For taxable years beginning after two thousand fourteen:
20 If the city taxable income is:The tax is:
21 Not over $12,0002.55% of the city taxable income
22 Over $12,000 but not$306 plus 3.1% of excess
23 over $25,000over $12,000
24 Over $25,000 but not$709 plus 3.15% of excess
25 over $50,000over $25,000
26 Over $50,000 but not$1,497 plus 3.2% of excess
27 over $500,000over $50,000
28 Over $500,000$16,891 plus 3.4% of excess
29 over $500,000
30 (B) For taxable years beginning after two thousand nine and before two
31 thousand fifteen:
32 If the city taxable income is: The tax is:
33 Not over $12,000 2.55% of the city taxable income
34 Over $12,000 but not $306 plus 3.1% of excess
35 over $25,000 over $12,000
36 Over $25,000 but not $709 plus 3.15% of excess
37 over $50,000 over $25,000
38 Over $50,000 but not $1,497 plus 3.2% of excess
39 over $500,000 over $50,000
40 Over $500,000 $15,897 plus 3.4% of excess
41 over $500,000
42 [(B) For taxable years beginning in two thousand one and two thousand
43 two and for taxable years beginning after two thousand five and before
44 two thousand ten:
45 If the city taxable income is: The tax is:
46 Not over $12,000 2.55% of the city taxable income
47 Over $12,000 but not $306 plus 3.1% of excess
48 over $25,000 over $12,000
49 Over $25,000 but not $709 plus 3.15% of excess
S. 4209 11
1 over $50,000 over $25,000
2 Over $50,000 $1,497 plus 3.2% of excess
3 over $50,000]
4 § 4. Notwithstanding any provision of law to the contrary, the method
5 of determining the amount to be deducted and withheld from wages on
6 account of taxes imposed by or pursuant to the authority of article 30
7 of the tax law in connection with the implementation of the provisions
8 of this act shall be prescribed by regulations of the commissioner of
9 taxation and finance with due consideration to the effect such withhold-
10 ing tables and methods would have on the receipt and amount of revenue.
11 The commissioner of taxation and finance shall adjust such withholding
12 tables and methods in regard to taxable years beginning in 2015 and
13 after in such manner as to result, so far as practicable, in withholding
14 from an employee's wages an amount substantially equivalent to the tax
15 reasonably estimated to be due for such taxable years as a result of the
16 provisions of this act. Provided, however, for tax year 2015 the with-
17 holding tables shall reflect as accurately as practicable the full
18 amount of tax year 2015 liability so that such amount is withheld by
19 December 31, 2015. Any such regulations to implement a change in with-
20 holding tables and methods for tax year 2015 shall be adopted and effec-
21 tive as soon as practicable and the commissioner may adopt such regu-
22 lations on an emergency basis notwithstanding anything to the contrary
23 in section 202 of the state administrative procedure act. In carrying
24 out his or her duties and responsibilities under this section, the
25 commissioner of taxation and finance may accompany such a rule making
26 procedure with a similar procedure with respect to the taxes required to
27 be deducted and withheld by local laws imposing taxes pursuant to the
28 authority of articles 30, 30-A and 30-B of the tax law, the provisions
29 of any other law in relation to such a procedure to the contrary
30 notwithstanding.
31 § 5. 1. Notwithstanding any provision of law to the contrary, no addi-
32 tion to tax shall be imposed for failure to pay the estimated tax in
33 subsection (c) of section 685 of the tax law and subdivision (c) of
34 section 11-1785 of the administrative code of the city of New York with
35 respect to any underpayment of a required installment due prior to, or
36 within thirty days of, the effective date of this act to the extent that
37 such underpayment was created or increased by the amendments made by
38 this act, provided, however, that the taxpayer remits the amount of any
39 underpayment prior to or with his or her next quarterly estimated tax
40 payment.
41 2. The commissioner of taxation and finance shall take steps to publi-
42 cize the necessary adjustments to estimated tax and, to the extent
43 reasonably possible, to inform the taxpayer of the tax liability changes
44 made by this act.
45 § 6. This act shall take effect immediately.
46 PART C
47 Section 1. The opening paragraph of paragraph (f) of subdivision 3 of
48 section 425 of the real property tax law, as added by section 1 of part
49 B of chapter 59 of the laws of 2012, is amended to read as follows:
50 Compliance with state tax obligations. [The] A property shall not be
51 eligible [property's eligibility] for the STAR exemption [must not be]
52 if the property's eligibility has been suspended pursuant to section one
53 hundred seventy-one-y of the tax law due to the past-due state tax
54 liabilities of one or more of its owners. Notwithstanding any provision
S. 4209 12
1 of law to the contrary, where a property's eligibility for a STAR
2 exemption has been suspended pursuant to such section, the following
3 provisions shall be applicable:
4 § 2. Paragraphs (h) and (i) of subdivision 2 and subdivision 7 of
5 section 171-y of the tax law, as added by section 2 of part B of chapter
6 59 of the laws of 2012, are amended to read as follows:
7 (h) [The procedures by which the department shall apply the amount of
8 a taxpayer's lost STAR benefits as an offset against the amount of that
9 taxpayer's past-due state tax liabilities.
10 (i)] Any other matter as the department shall deem necessary to carry
11 out the provisions of this section.
12 7. Activities to collect state tax liabilities undertaken by the
13 department pursuant to this section shall not in any way limit, restrict
14 or impair the department from exercising any other authority to collect
15 or enforce past-due state tax liabilities under any other applicable
16 provision of law. [The amount by which a taxpayer's property tax liabil-
17 ity increases as a result of the loss of the STAR exemption pursuant to
18 paragraph (f) of subdivision three of section four hundred twenty-five
19 of the real property tax law and this section shall be applied as an
20 offset against the amount of the taxpayer's past-due state tax liabil-
21 ity.] If a taxpayer loses the STAR exemption pursuant to paragraph (f)
22 of subdivision three of section four hundred twenty-five of the real
23 property tax law and this section, the taxpayer shall lose any entitle-
24 ment or claim of right to the STAR exemption for the applicable year.
25 § 3. Section 3 of part B of chapter 59 of the laws of 2012, amending
26 the real property tax law and the tax law relating to suspension of STAR
27 exemptions of property owned by persons with outstanding tax liabil-
28 ities, is amended to read as follows:
29 § 3. This act shall take effect immediately [and shall apply to the
30 administration of the STAR exemption authorized by section 425 of the
31 real property tax law for the 2013-2014, 2014-2015 and 2015-2016 school
32 years].
33 § 4. This act shall take effect immediately.
34 PART D
35 Intentionally Omitted
36 PART E
37 Section 1. Section 425 of the real property tax law is amended by
38 adding a new subdivision 15 to read as follows:
39 15. Recoupment of exemptions by commissioner. (a) Generally. If the
40 commissioner should determine, based upon data collected under the STAR
41 registration program, that property improperly received the basic STAR
42 exemption on one or more of the three preceding assessment rolls, the
43 commissioner shall treat the exemption as an improperly granted
44 exemption and proceed in the manner provided by this subdivision;
45 provided that final assessment rolls that were filed prior to April
46 first, two thousand eleven shall not be subject to the provisions of
47 this subdivision.
48 (b) Procedure. The tax savings attributable to each such improperly
49 granted exemption shall be collected from the owners whose property
50 improperly received the exemption for the applicable year, together with
51 interest and a penalty as specified in this subdivision, by utilizing
S. 4209 13
1 any of the procedures for collection, levy, and lien of personal income
2 tax set forth in article twenty-two of the tax law, any other relevant
3 procedures referenced within the provisions of that article, and any
4 other law as may be applicable, so far as practicable when recouping the
5 exemption amount pursuant to this subdivision, except that:
6 (i) prior to directing that an improperly granted exemption be
7 recouped pursuant to this subdivision, the commissioner shall provide
8 the owners with notice and an opportunity to show the commissioner that
9 the exemption was properly granted. If the owners fail to respond to
10 such notice within forty-five days from the mailing thereof, or if their
11 response does not show to the commissioner's satisfaction that the
12 eligibility requirements were in fact satisfied, the commissioner shall
13 proceed with the recoupment of the improperly granted exemption in
14 accordance with the provisions of this subdivision; and
15 (ii) notwithstanding the provisions of paragraph (b) of subdivision
16 six of this section, neither an assessor nor a board of assessment
17 review has the authority to consider an objection to the recoupment of
18 an exemption pursuant to this subdivision, nor may such an action be
19 reviewed in a proceeding to review an assessment pursuant to title one
20 or one-A of article seven of this chapter. Such an action may only be
21 challenged before the department. If an owner is dissatisfied with the
22 department's final determination, the owner may appeal that determi-
23 nation to the board in a form and manner to be prescribed by the commis-
24 sioner. Such appeal shall be filed within forty-five days from the issu-
25 ance of the department's final determination. If dissatisfied with the
26 board's determination, the owner may seek judicial review thereof pursu-
27 ant to article seventy-eight of the civil practice law and rules. The
28 owner shall otherwise have no right to challenge such final determi-
29 nation in a court action, administrative proceeding, including but not
30 limited to an administrative proceeding pursuant to article forty of the
31 tax law, or any other form of legal recourse against the commissioner,
32 the department, the board, the assessor, or any other person, state
33 agency, or local government.
34 (c) The amount to be recouped for each improperly received exemption
35 shall have interest added at the rate prescribed by section nine hundred
36 twenty-four-a of this chapter or such other law as may be applicable for
37 each month or portion thereof since the levy of school taxes upon such
38 assessment roll. In addition, a penalty shall be imposed in the amount
39 of either five hundred dollars or twenty percent of the improperly
40 received tax savings, whichever is greater, not to exceed two thousand
41 five hundred dollars, provided that the commissioner may waive such
42 penalty for good cause shown.
43 (d) In the event that a revocation of prior exemption pursuant to
44 subdivision twelve of this section or a voluntary renunciation of the
45 STAR exemption pursuant to section four hundred ninety-six of this chap-
46 ter has occurred, the provisions of this subdivision shall not be appli-
47 cable to the exemptions so revoked or voluntarily renounced.
48 § 2. Clause 10 of subparagraph (i) of paragraph 2 of subdivision e of
49 section 26-403 of the administrative code of the city of New York, as
50 amended by chapter 422 of the laws of 2010, is amended to read as
51 follows:
52 (10) Housing accommodations not occupied by the tenant, not including
53 subtenants or occupants, as his or her primary residence, as determined
54 by a court of competent jurisdiction. For the purposes of determining
55 primary residency, a tenant who is a victim of domestic violence, as
56 defined in section four hundred fifty-nine-a of the social services law,
S. 4209 14
1 who has left the unit because of such violence, and who asserts an
2 intent to return to the housing accommodation shall be deemed to be
3 occupying the unit as his or her primary residence. For purposes of
4 determining primary residency, as used in this chapter, the failure to
5 file a New York city resident income tax return (setting forth the hous-
6 ing accommodation as his or her residence) by an individual required by
7 law to file such a return, shall result in a finding that the tenant
8 does not occupy the unit as his or her primary residence; provided,
9 however, that this provision shall not apply to an individual who has
10 requested an extension of time for payment of tax or where any other
11 factor exists which would excuse the timely filing of the return;
12 provided further, that the timely filing of the return, alone, shall not
13 result in a presumption that the individual does occupy the unit as his
14 or her primary residence. No action or proceeding shall be commenced
15 seeking to recover possession on the ground that a housing accommodation
16 is not occupied by the tenant as his or her primary residence unless the
17 owner or lessor shall have given thirty days notice to the tenant of his
18 or her intention to commence such action or proceeding on such grounds.
19 § 3. Subparagraph (f) of paragraph 1 of subdivision a of section
20 26-504 of the administrative code of the city of New York, as amended by
21 chapter 422 of the laws of 2010, is amended to read as follows:
22 (f) not occupied by the tenant, not including subtenants or occupants,
23 as his or her primary residence, as determined by a court of competent
24 jurisdiction, provided, however that no action or proceeding shall be
25 commenced seeking to recover possession on the ground that a housing
26 accommodation is not occupied by the tenant as his or her primary resi-
27 dence unless the owner or lessor shall have given thirty days notice to
28 the tenant of his or her intention to commence such action or proceeding
29 on such grounds. For the purposes of determining primary residency, a
30 tenant who is a victim of domestic violence, as defined in section four
31 hundred fifty-nine-a of the social services law, who has left the unit
32 because of such violence, and who asserts an intent to return to the
33 housing accommodation shall be deemed to be occupying the unit as his or
34 her primary residence. For purposes of determining primary residency,
35 as used in this chapter, the failure to file a New York city resident
36 income tax return (setting forth the housing accommodation as his or her
37 residence) by an individual required by law to file such a return, shall
38 result in a finding that the tenant does not occupy the unit as his or
39 her primary residence; provided, however, that this provision shall not
40 apply to an individual who has requested an extension of time for
41 payment of tax or where any other factor exists which would excuse the
42 timely filing of a return; provided further, that the timely filing of
43 the return, alone, shall not result in a presumption that the individual
44 does occupy the unit as his or her primary residence. For the purposes
45 of this subparagraph where a housing accommodation is rented to a not-
46 for-profit hospital for residential use, affiliated subtenants author-
47 ized to use such accommodations by such hospital shall be deemed to be
48 tenants, or
49 § 4. Paragraph 11 of subdivision a of section 5 of section 4 of chap-
50 ter 576 of the laws of 1974, constituting the emergency tenant
51 protection act of nineteen seventy-four, as amended by chapter 422 of
52 the laws of 2010, is amended to read as follows:
53 (11) housing accommodations which are not occupied by the tenant, not
54 including subtenants or occupants, as his or her primary residence, as
55 determined by a court of competent jurisdiction. For purposes of deter-
56 mining primary residency, as used in this chapter, the failure to file a
S. 4209 15
1 New York state resident income tax return (setting forth the housing
2 accommodation as his or her residence) by an individual required by law
3 to file such a return, shall result in a finding that the tenant does
4 not occupy the unit as his or her primary residence; provided, however,
5 that this provision shall not apply to an individual who has requested
6 an extension of time for payment of tax or where any other factor exists
7 which would excuse the timely filing of the return; provided further,
8 that the timely filing of the return, alone, shall not result in a
9 presumption that the individual does occupy the unit as his or her
10 primary residence. For the purposes of determining primary residency, a
11 tenant who is a victim of domestic violence, as defined in section four
12 hundred fifty-nine-a of the social services law, who has left the unit
13 because of such violence, and who asserts an intent to return to the
14 housing accommodation shall be deemed to be occupying the unit as his or
15 her primary residence. For the purposes of this paragraph, where a hous-
16 ing accommodation is rented to a not-for-profit hospital for residential
17 use, affiliated subtenants authorized to use such accommodations by such
18 hospital shall be deemed to be tenants. No action or proceeding shall be
19 commenced seeking to recover possession on the ground that a housing
20 accommodation is not occupied by the tenant as his or her primary resi-
21 dence unless the owner or lessor shall have given thirty days notice to
22 the tenant of his or her intention to commence such action or proceeding
23 on such grounds.
24 § 5. The tax law is amended by adding a new section 171-z to read as
25 follows:
26 § 171-z. Verification of residence filing address. (1) The commission-
27 er is authorized to verify to owners of multiple dwellings covered by
28 the city rent and rehabilitation law, the rent stabilization law of
29 nineteen hundred sixty-nine and/or the emergency tenant protection act
30 of nineteen seventy-four whether or not, in a given calendar year, a New
31 York city or New York state resident income tax return was filed by an
32 individual who is a tenant in the owner's multiple dwelling and, if so,
33 the residence address which is set forth on the tax return. Such
34 verification shall be in writing and shall be considered a certificate
35 or affidavit for the purposes of rule forty-five hundred twenty of the
36 civil practice law and rules.
37 (2) The department may charge a reasonable fee, to be determined by
38 the commissioner, in payment to the department for the expense incurred
39 in verifying the filing and residence address.
40 (3) Any finding that a recipient of a public benefit pursuant to city
41 rent and rehabilitation law does not meet a residency requirement neces-
42 sary to receive such benefit based upon his or her personal income tax
43 filing shall, within thirty days of such finding, be subject to eviction
44 from any unit requiring primary residence for tenancy and shall be
45 disallowed to receive any public benefit authorized pursuant to sections
46 26-403 and 26-504 of the administrative code of the city of New York,
47 and any benefit provided under the emergency tenant protection act of
48 nineteen seventy-four for the period of one year from the date of such
49 finding.
50 (4) (a) Upon a finding pursuant to subdivision three of this section,
51 a state or municipal agency administering benefits authorized pursuant
52 to sections 26-403 and 26-504 of the administrative code of the city of
53 New York, and any benefit provided under the emergency tenant protection
54 act of nineteen seventy-four, shall be notified within seven days of
55 such finding and may in addition to enforcing provisions under subdivi-
56 sion three impose a civil penalty upon the recipient of an unauthorized
S. 4209 16
1 benefit based upon the amount of time such unauthorized benefit was
2 provided.
3 (b) Any civil penalty authorized under this subdivision shall be
4 imposed as follows: (i) for one to five years of unauthorized receipt,
5 five thousand dollars; (ii) for six to ten years of unauthorized
6 receipt, ten thousand dollars; (iii) for eleven to fifteen years of
7 unauthorized receipt, fifteen thousand dollars; (iv) for sixteen to
8 twenty years of receipt, twenty thousand dollars; and (v) for twenty-one
9 or more years of receipt, twenty-five thousand dollars.
10 § 6. This act shall take effect immediately; provided that:
11 a. the amendment to section 26-403 of the city rent and rehabilitation
12 law made by section two of this act shall remain in full force and
13 effect only so long as the public emergency requiring the regulation and
14 control of residential rents and evictions continues, as provided in
15 subdivision 3 of section 1 of the local emergency housing rent control
16 act;
17 b. the amendment to section 26-504 of the rent stabilization law of
18 nineteen hundred sixty-nine made by section three of this act shall
19 expire on the same date as such law expires and shall not affect the
20 expiration of such law as provided under section 26-520 of such law; and
21 c. the amendment to section 5 of the emergency tenant protection act
22 of nineteen seventy-four made by section four of this act shall expire
23 on the same date as such act expires and shall not affect the expiration
24 of such act as provided in section 17 of chapter 576 of the laws of
25 1974, as amended.
26 PART F
27 Section 1. Subdivision 3 of section 97-rrr of the state finance law,
28 as amended by section 8 of part F of chapter 109 of the laws of 2006, is
29 amended to read as follows:
30 3. The monies in such fund shall be appropriated for school property
31 tax exemptions [and local property tax rebates] granted pursuant to the
32 real property tax law [and the tax law] and payable pursuant to section
33 [thirty-six hundred nine] thirty-six hundred nine-e of the education
34 law, and for payments to the city of New York pursuant to section
35 fifty-four-f of this chapter[, and pursuant to section one hundred
36 seventy-eight of the tax law].
37 § 2. One-time relief for unenrolled registrants. (1) As used in this
38 section, the term "unenrolled registrant" means a person who purchased
39 or otherwise acquired a primary residence after the taxable status date
40 for the 2013 assessment roll and who registered that property with the
41 commissioner of taxation and finance in accordance with subdivision 14
42 of section 425 of the real property tax law on or before the taxable
43 status date for the 2014 assessment roll, but who failed to file an
44 application for the STAR exemption for that property in accordance with
45 subdivision 6 of section 425 of the real property tax law on or before
46 the taxable status date for the 2014 assessment roll.
47 (2) If the commissioner of taxation and finance is informed on or
48 before October 1, 2015, that an owner of property is an unenrolled
49 registrant, and if such commissioner finds that the unenrolled regis-
50 trant's property would have qualified for the STAR exemption authorized
51 by section 425 of the real property tax law on the 2014 assessment roll
52 if a completed application had been filed with the appropriate assessor
53 in a timely manner, then the commissioner of taxation and finance is
54 authorized to remit directly to the property owner or owners the tax
S. 4209 17
1 savings that the STAR exemption would have yielded if the STAR exemption
2 had been granted on the 2014 assessment roll. When remitting such
3 amount, the commissioner of taxation and finance shall advise the prop-
4 erty owner or owners that such payment is subject to recovery by such
5 commissioner if the property owner or owners do not apply for and quali-
6 fy for the STAR exemption on the 2015 assessment roll, or if it should
7 otherwise be found to have been erroneously remitted to such property
8 owner or owners.
9 (3) The amounts payable under this act shall be paid from the account
10 established for the payment of STAR benefits to late registrants pursu-
11 ant to subparagraph (iii) of paragraph (a) of subdivision 14 of section
12 425 of the real property tax law.
13 (4) The provisions of part 6 of article 22 of the tax law relating to
14 the collection of a tax imposed by such article that has been assessed
15 and remains unpaid shall apply to the recovery authorized by subdivision
16 two of this section of a payment found to have been erroneously made
17 pursuant to this act to an ineligible property owner or owners in the
18 same manner and with the same force and effect as if the language of
19 such article had been incorporated in full into this act except to the
20 extent that any provision of such article is either inconsistent with a
21 provision of this act or is not relevant to this act as determined by
22 the commissioner of taxation and finance. Furthermore, for purposes of
23 applying the provisions of part 6 of article 22 of the tax law, where
24 the terms "tax" and "taxes" appear in such article, such terms shall be
25 construed to mean "a payment or payments erroneously made pursuant to
26 this act to an ineligible property owner or owners".
27 § 3. This act shall take effect immediately.
28 PART G
29 Section 1. The real property tax law is amended by adding a new
30 section 1306-b to read as follows:
31 § 1306-b. New York property tax relief check program. 1. Tax rebates.
32 (a) For basic and enhanced rebates beginning in the two thousand
33 fifteen--two thousand sixteen school year and each year thereafter if a
34 parcel is entitled to the basic or enhanced STAR exemption authorized by
35 section four hundred twenty-five of this chapter, a local property tax
36 rebate shall be provided to the owner or owners of such parcel as shown
37 on the final assessment roll for such year, in an amount computed as
38 prescribed by this section and section one hundred seventy-eight of the
39 tax law.
40 (b) No tax rebate shall be provided to an owner or owners pursuant to
41 paragraph a of this subdivision if the amount of such rebate is less
42 than or equal to a credit authorized to be provided to a tax payer of an
43 independent or dependent school district pursuant to subsection (bbb) of
44 section six hundred six of the tax law or if such credit is less than
45 twenty dollars in a single year.
46 (c) An independent school district that is subject to the provisions
47 of section two thousand twenty-three-a of the education law must meet
48 the applicable requirements of section two thousand twenty-three-b of
49 the education law for the two thousand fifteen--two thousand sixteen
50 school year to render its property owners eligible for the New York
51 property tax relief check program pursuant to this section. For all
52 school years thereafter, in order for an independent school district to
53 qualify its property owners to receive a rebate pursuant to this
S. 4209 18
1 section, the budget so adopted shall not exceed the tax levy limit
2 prescribed by section two thousand twenty-three-a of the education law.
3 (d) A city with a dependent school district that is subject to the
4 provisions of section three-c of the general municipal law and its
5 dependent school district must jointly comply with the requirements of
6 subdivision two, and either subdivision three or four of section three-d
7 of the general municipal law in order to render its property owners
8 eligible for the New York property tax relief check program for a city
9 fiscal year beginning in two thousand fifteen pursuant to this section.
10 For all fiscal years thereafter where a rebate would be authorized, a
11 city with a dependent school district that is subject to the provisions
12 of section three-c or three-e of the general municipal law must adopt a
13 budget that does not exceed the tax levy limit prescribed by such
14 section in order to render its property owners eligible for the New York
15 property tax relief check program.
16 (e) It shall be the responsibility of the department to issue such tax
17 rebates to such owner or owners in the manner provided by section one
18 hundred seventy-eight of the tax law. Nothing contained herein shall be
19 construed as permitting partial or installment payments of taxes in a
20 jurisdiction which has not authorized the same pursuant to law. To the
21 extent practicable rebates made to an owner or owners pursuant to this
22 section and credits provided to the same pursuant to subsection (bbb) of
23 section six hundred six of the tax law shall be disbursed in combina-
24 tion.
25 2. Procedure. (a) On or before August fifteenth, two thousand fifteen
26 and each year thereafter, the commissioner, or his or her designee,
27 shall create a report, if such report is deemed necessary by the commis-
28 sioner to establish eligibility of an owner or owners to a rebate under
29 this section, concerning those parcels which have been granted an excep-
30 tion authorized by section four hundred twenty-five of this chapter, or
31 on or before July first, two thousand fifteen and each year thereafter,
32 in the case of a city with a population of one million or more, the
33 commissioner of finance, or his or her designee, shall provide to the
34 commissioner of taxation and finance a report in a mutually agreeable
35 format concerning those parcels which have been granted an exemption
36 authorized by section four hundred twenty-five of this chapter on the
37 assessment rolls used to generate the school tax bills for the two thou-
38 sand fifteen--two thousand sixteen school tax year and for each year
39 thereafter; provided however the information to be provided on such
40 report shall be obtained from the final assessment roll data files used
41 to generate the two thousand fifteen--two thousand sixteen school tax
42 bills and each year thereafter, filed with the department pursuant to
43 section fifteen hundred ninety of this chapter on or before July thir-
44 ty-first of such year. Such report shall set forth the names and mailing
45 addresses of the owner or owners of such parcels as shown on such
46 assessment roll data files, the identification numbers of such parcels
47 as shown on such assessment roll data files, and such other information
48 in the possession of the department, or in the case of a city with a
49 population of one million or more, the commissioner of finance, as the
50 commissioner may deem necessary for the effective administration of this
51 program, including information regarding cooperative apartment buildings
52 and mobile home parks or similar property. It shall be the responsibil-
53 ity of the assessor or assessors of each assessing unit to ensure that
54 the names and mailing addresses of such owner or owners are accurately
55 recorded on such rolls and files to the best of his or her ability,
56 based upon the information contained in his or her office. Nothing
S. 4209 19
1 contained in this subdivision shall be construed as affecting in any way
2 the validity or enforceability of a real property tax, or the applica-
3 bility of interest or penalties with respect thereto, when an owner's
4 name or mailing address has not been accurately recorded.
5 (b) Notwithstanding the provisions of paragraph (a) of this subdivi-
6 sion, where an assessing unit contains one or more properties which are
7 receiving such exemption in relation to a prior year assessment roll
8 pursuant to paragraph (d) of subdivision six of section four hundred
9 twenty-five of this chapter, or contains one or more parcels with
10 respect to which such exemption was duly added or removed after the
11 filing of the final assessment roll pursuant to the provisions of title
12 three of article five of this chapter, the department may require the
13 assessor to file with it, on or before July thirty-first, two thousand
14 fifteen and each year thereafter, or such later date as such office may
15 specify, a supplemental report relating to such property or properties,
16 so that information pertaining to the owner or owners thereof may be
17 included in the report to be made to the commissioner pursuant to this
18 paragraph. When any information required by this paragraph is received
19 by the department after July thirty-first, two thousand fifteen and each
20 year thereafter, such information shall be transmitted as soon as
21 reasonably practicable for use in issuing local property tax rebates
22 pursuant to section one hundred seventy-eight of the tax law.
23 3. Rebate base. (a) The department shall calculate the rebate base as
24 provided herein and certify the same no later than July first, two thou-
25 sand fifteen.
26 (b) A rebate granted pursuant to this section:
27 (i) for the two thousand fifteen--two thousand sixteen school year
28 shall be computed by determining the exempt amount established for
29 purposes of the basic or enhanced STAR exemption for such school year
30 and multiplying that amount by thirty-six and one-half percent.
31 (ii) for the two thousand sixteen--two thousand seventeen school year
32 shall be computed by determining the exempt amount established for
33 purposes of the basic or enhanced STAR exemption for such school year
34 and multiplying that amount by thirty-seven and one-half percent.
35 (iii) for the two thousand seventeen--two thousand eighteen school
36 year shall be computed by determining the exempt amount established for
37 purposes of the basic or enhanced STAR exemption for such school year
38 and multiplying that amount by fifty-five percent.
39 (iv) for the two thousand eighteen--two thousand nineteen school year,
40 and each year thereafter, shall be computed by determining the exempt
41 amount established for purposes of the basic or enhanced STAR exemption
42 for such school year and multiplying that amount by fifty-five percent.
43 § 2. The tax law is amended by adding a new section 178 to read as
44 follows:
45 § 178. New York property tax relief check program. 1. The commission-
46 er shall issue the local property tax rebates authorized by section
47 thirteen hundred six-b of the real property tax law. For purposes of
48 this section the rebate shall be calculated using the formula set forth
49 in subdivision three of section thirteen hundred six-b of the real prop-
50 erty tax law. Provided, however, such rebates shall not be issued in any
51 year in which an appropriation to pay such rebates has not been included
52 in the enacted state budget for such year.
53 2. On or before August fifteenth, two thousand fifteen and each year
54 thereafter, the commissioner, or his or her designee, shall create a
55 report, if such a report is deemed necessary by the commissioner to
56 establish eligibility of a rebate pursuant to section thirteen hundred
S. 4209 20
1 six-b of the real property tax law, concerning those parcels which
2 satisfy the criteria set forth in section thirteen hundred six-b of the
3 real property tax law, or on or before July first, two thousand fifteen
4 and each year thereafter in the case of a city with a population of one
5 million or more, the commissioner of finance, shall provide to the
6 commissioner a report in a mutually agreeable format concerning those
7 parcels which satisfy the criteria set forth in section thirteen hundred
8 six-b of the real property tax law.
9 3. The commissioner in consultation with the commissioner of finance,
10 for a city with a population of one million or more, is authorized to
11 develop procedures necessary to provide for the issuance of local prop-
12 erty tax rebates to qualifying property owners, and those qualifying
13 property owners that did not receive them initially. If the commission-
14 er is not satisfied that the property owner or owners are qualified for
15 the local property tax rebate, the commissioner shall not issue such
16 rebate.
17 4. By depositing a rebate issued pursuant to this section and author-
18 ized by section thirteen hundred six-b of the real property tax law, the
19 payee is certifying that he or she is the property owner, and that the
20 primary residence of such property owner or owners is not subject to any
21 delinquent school taxes.
22 5. Confidential information; disclosure prohibition. Information
23 regarding rebates issued to individuals shall not be subject to disclo-
24 sure; including names, addresses, and dollar amounts of rebates.
25 § 3. Section 606 of the tax law is amended by adding a new subsection
26 (n-1) to read as follows:
27 (n-1) School district property tax credit. (1) (A) In any taxable
28 year in which taxpayers are not eligible to receive rebates pursuant to
29 section one hundred seventy-eight of this chapter solely because an
30 appropriation to pay such rebates was not included in the enacted state
31 budget, for such year, the credit allowed by this subsection shall
32 apply.
33 (B) No credit shall be provided to a taxpayer pursuant to this section
34 if the amount of such credit is less than or equal to a credit author-
35 ized to be provided to a taxpayer of an independent or dependent school
36 district pursuant to subsection (bbb) of this section or if such credit
37 is less than twenty dollars in a single year.
38 (C) An independent school district that is subject to the provisions
39 of section two thousand twenty-three-a of the education law must meet
40 the applicable requirements of section two thousand twenty-three-b of
41 the education law for the two thousand fifteen-two thousand sixteen
42 school year to render its taxpayers eligible for a credit pursuant to
43 this section. For all school years thereafter, in order for an independ-
44 ent school district to qualify its taxpayers to receive a credit pursu-
45 ant to this section, the budget so adopted shall not exceed the tax levy
46 limit prescribed by section two thousand twenty-three-a of the education
47 law.
48 (D) A city with a dependent school district that is subject to the
49 provisions of section three-c of the general municipal law and its
50 dependent school district must jointly comply with the requirements of
51 subdivision two, and subdivision three or four of section three-d of the
52 general municipal law in order to render its taxpayers eligible for a
53 credit authorized pursuant to this section for a city fiscal year begin-
54 ning in two thousand fifteen. For all fiscal years thereafter where a
55 credit under this section would be authorized, a city with a dependent
56 school district that is subject to the provisions of section three-c or
S. 4209 21
1 three-e of the general municipal law must adopt a budget that does not
2 exceed the tax levy limit.
3 (2) For taxable years beginning on or after January first, two thou-
4 sand fifteen if the credit is applicable in such year, a taxpayer shall
5 be allowed a credit against the tax imposed by this article in an amount
6 equal to the rebate check calculated pursuant to section one hundred
7 seventy-eight of this chapter.
8 (3) If the amount of the credit allowed under this subsection for any
9 taxable year shall exceed the taxpayer's tax for such year, the excess
10 shall be treated as an overpayment of tax to be credited or refunded in
11 accordance with the provisions of section six hundred eighty-six of this
12 article, provided, however, that no interest shall be paid thereon.
13 (4) (A) Taxpayers who would have qualified for the credit under this
14 subsection for taxable year two thousand fourteen, had such credit been
15 authorized in such taxable year, shall be treated as having made a
16 payment against the tax imposed by this article for such taxable year in
17 an amount equal to such credit for such taxable year. Such payment shall
18 be treated as an overpayment of tax to be refunded as soon as practica-
19 ble, but not longer than forty-five days from filing a claim for a
20 refund, in accordance with the provisions of section six hundred eight-
21 y-six of this article, provided, however that no interest shall be paid
22 thereon. All qualified taxpayers may submit a claim for an advance
23 payment of such refund on forms prepared by the department, provided
24 such forms are filed with the department on or before August thirty-
25 first, two thousand fifteen.
26 (B) The amount of the credit which is allowed under this subsection
27 for the taxpayer's taxable year beginning in two thousand fifteen shall
28 be reduced by the payments made to the taxpayer under this subsection.
29 Any failure to so reduce the credit shall be treated as arising out of a
30 mathematical or clerical error and assessed according to subsection (d)
31 of section six hundred eighty-one of this article.
32 (C) Any failure to apply for an advance payment shall not impair a
33 taxpayer's ability to apply for the credit upon filing their return for
34 such tax year.
35 (5) If the commissioner determines it to be necessary for proper
36 administration of the credit allowed under this subsection, the county
37 director of real property tax services of any county, or in the case of
38 a city with a population of one million or more, the commissioner of
39 finance, upon the request of the commissioner, shall file a report with
40 the department identifying all parcels in the county or in the city on
41 which school taxes for the prior school year remained unpaid as of June
42 thirtieth of such prior school year, provided that parcels not receiving
43 the basic or enhanced STAR exemption shall be excluded from such list.
44 Such county director shall obtain from the tax collecting officers and
45 tax enforcement officers within the county such information as he or she
46 may need to prepare such list. Such list shall be prepared in a format
47 prescribed by the commissioner.
48 (6) If the school property taxes to which the credit relates are not
49 paid, the credit allowed with respect to such property taxes must be
50 added back in the tax year in which such credit was claimed.
51 (7) Only one credit per residence shall be allowed per taxable year
52 under this subsection. When two or more members of a residence are able
53 to meet the qualifications for a qualified taxpayer, the credit shall be
54 equally divided between or among such individuals. In the case of spous-
55 es who file a joint federal return but who are required to determine
56 their New York taxes separately, the credit allowed pursuant to this
S. 4209 22
1 subsection may be applied against the tax of either or divided between
2 them as they may elect.
3 § 4. The opening paragraph of paragraph 2 of subsection (bbb) of
4 section 606 of the tax law, as added by section 1 of part FF of chapter
5 59 of the laws of 2014, is amended to read as follows:
6 An individual taxpayer who meets the eligibility standards set forth
7 in paragraph three of this subsection and whose primary residence is
8 located in a taxing jurisdiction that has a freeze-compliant budget for
9 the fiscal year starting in two thousand fourteen, two thousand fifteen
10 or two thousand sixteen, whichever is applicable, shall be allowed a
11 credit against the taxes imposed by this article. However, that in two
12 thousand fifteen no credit will be provided under this section as a
13 credit on taxes imposed on behalf of an independent or dependent school
14 district, if an amount greater than such credit would be authorized to
15 be received by a property owner or owners in the form of a rebate pursu-
16 ant to section thirteen hundred six-b of the real property tax law or to
17 be received in the form or a credit pursuant to subsection (n-1) of this
18 section. Subject to the provisions of paragraph six of this subsection,
19 such credit shall be determined as follows:
20 § 5. Paragraph 4 of subsection (bbb) of section 606 of the tax law, as
21 added by section 1 of part FF of chapter 59 of the laws of 2014, is
22 amended to read as follows:
23 (4) For each year this credit is allowed, the commissioner shall
24 determine the taxpayer's eligibility for this credit utilizing the
25 information available to the commissioner. When the commissioner has
26 determined a taxpayer to be eligible for this credit, the commissioner
27 shall advance a payment of the amount determined in accordance with this
28 subsection. However, that in two thousand fifteen no credit will be
29 provided under this section as a credit on taxes imposed on behalf of an
30 independent or dependent school district, if an amount greater than such
31 credit would be authorized to be received by a property owner or owners
32 in the form of a rebate pursuant to section thirteen hundred six-b of
33 the real property tax law or to be received in the form or a credit
34 pursuant to subsection (n-1) of this section.
35 The taxpayer shall not apply for such credit in conjunction with the
36 filing of his or her return. A taxpayer who has failed to receive an
37 advance payment that he or she believes was due to him or her, or who
38 has received an advance payment that he or she believes is less than the
39 amount that was due to him or her, may request payment of the claimed
40 deficiency in a manner prescribed by the commissioner.
41 § 6. The opening paragraph of section 2023-b of the education law, as
42 added by section 2 of part FF of chapter 59 of the laws of 2014, is
43 amended to read as follows:
44 Certification of compliance with property tax freeze, New York proper-
45 ty tax relief check program or the school district property tax credit
46 requirements. A school district that is subject to the provisions of
47 section two thousand twenty-three-a of this part must comply with the
48 requirements of subdivision two of this section in order to render its
49 taxpayers eligible for the real property tax freeze credit authorized by
50 subsection (bbb) of section six hundred six of the tax law for a fiscal
51 year starting in two thousand fourteen. The property tax cuts will be
52 extended for a second year, a New York property tax relief check will be
53 provided pursuant to section thirteen hundred six-b of the real property
54 tax law or a tax credit will be provided pursuant to subsection n-1 of
55 section six hundred six of the tax law in jurisdictions which comply
56 with the tax cap and have a state approved government efficiency plan
S. 4209 23
1 which demonstrate three year savings and efficiencies of at least one
2 percent per year from shared services, cooperation agreements and/or
3 mergers or efficiencies. The director of the budget shall consider past
4 efficiencies, shared services and reforms in their approval process.
5 While localities may offer a variety of approaches it is anticipated
6 that the county government or board of cooperative educational services
7 will convene and facilitate a process and submit a county wide or board
8 of cooperative educational services region wide plan for approval. A
9 school district that is subject to the provisions of section two thou-
10 sand twenty-three-a of this part must comply with the requirements of
11 subdivision two and either subdivision three or subdivision four of this
12 section in order to render its taxpayers eligible for the real property
13 tax freeze credit authorized by subsection (bbb) of section six hundred
14 six of the tax law for a fiscal year starting in two thousand fifteen.
15 § 7. Paragraph b of subdivision 2 of section 2023-b of the education
16 law, as added by section 2 of part FF of chapter 59 of the laws of 2014,
17 is amended to read as follows:
18 b. In order for such certification to give rise to a real property tax
19 freeze credit under subsection (bbb) of section six hundred six of the
20 tax law, a New York property tax relief check pursuant to section thir-
21 teen hundred six-b of the real property tax law or a tax credit pursuant
22 to subsection (n-1) of section six hundred six of the tax law, such
23 certification shall be made no later than the twenty-first day of the
24 fiscal year to which it applies.
25 § 8. The opening paragraph of section 3-d of the general municipal
26 law, as added by section 3 of part FF of chapter 59 of the laws of 2014,
27 is amended to read as follows:
28 Certification of compliance with property tax freeze, the New York
29 property tax relief check program or the school district property tax
30 credit requirements. A municipal corporation or an independent special
31 district that is subject to the provisions of section three-c of this
32 article must comply with the requirements of subdivision two of this
33 section in order to render its taxpayers eligible for the real property
34 tax freeze credit authorized by subsection (bbb) of section six hundred
35 six of the tax law for a fiscal year starting in two thousand fifteen.
36 The property tax cuts will be extended for a second year or an author-
37 ized rebate or credit will be provided in jurisdictions which comply
38 with the tax cap and have a state approved government efficiency plan
39 which demonstrate three year savings and efficiencies of at least one
40 percent per year from shared services, cooperation agreements and/or
41 mergers or efficiencies. The director of the budget shall consider past
42 efficiencies, shared services and reforms in their approval process.
43 While localities may offer a variety of approaches it is anticipated
44 that the county government or board of cooperative educational services
45 will convene and facilitate a process and submit a county wide or board
46 of cooperative educational services region wide plan for approval. A
47 municipal corporation or an independent special district that is subject
48 to the provisions of section three-c of this article must comply with
49 the requirements of subdivision two and either subdivision three or
50 subdivision four of this section in order to render its taxpayers eligi-
51 ble for the real property tax freeze credit authorized by subsection
52 (bbb) of section six hundred six of the tax law for a fiscal year start-
53 ing in two thousand sixteen. Provided however, that a city with a
54 dependent school district must comply with the requirements of subdivi-
55 sion two of this section in order to render its taxpayers eligible for
56 the real property tax freeze credit authorized by subsection (bbb) of
S. 4209 24
1 section six hundred six of the tax law for a fiscal year starting in two
2 thousand fourteen and comply with the requirements of subdivision two of
3 this section, and both the city and its dependent school district must
4 jointly comply with the requirements of subdivision three or subdivision
5 four of this section, in order to render its taxpayers eligible for the
6 real property tax freeze credit authorized by subsection (bbb) of
7 section six hundred six of the tax law, for the New York property tax
8 relief check authorized by section thirteen hundred six-b of the real
9 property tax law or the school district property tax credit pursuant to
10 subsection (n-1) of section six hundred six of the tax law for a fiscal
11 year starting in two thousand fifteen or two thousand sixteen.
12 § 9. Paragraph (b) of subdivision 2 of section 3-d of the general
13 municipal law, as added by section 3 of part FF of chapter 59 of the
14 laws of 2014, is amended to read as follows:
15 (b) In order for such certification to give rise to a real property
16 tax freeze credit under subsection (bbb) of section six hundred six of
17 the tax law, a New York property tax relief check pursuant to section
18 thirteen hundred six-b of the real property tax law or the school
19 district property tax credit pursuant to subsection (n-1) of section six
20 hundred six of the tax law, such certification shall be made no later
21 than the twenty-first day of the fiscal year to which it applies.
22 § 10. This act shall take effect immediately.
23 PART H
24 Section 1. Subsection (g) of section 615 of the tax law, as amended by
25 section 1 of part D of chapter 59 of the laws of 2013, is amended to
26 read as follows:
27 (g)(1) With respect to an individual whose New York adjusted gross
28 income is over one million dollars and no more than ten million dollars,
29 the New York itemized deduction shall be an amount equal to fifty
30 percent of any charitable contribution deduction allowed under section
31 one hundred seventy of the internal revenue code for taxable years
32 beginning after two thousand nine and before two thousand [sixteen]
33 eighteen. With respect to an individual whose New York adjusted gross
34 income is over one million dollars, the New York itemized deduction
35 shall be an amount equal to fifty percent of any charitable contribution
36 deduction allowed under section one hundred seventy of the internal
37 revenue code for taxable years beginning in two thousand nine or after
38 two thousand [fifteen] seventeen.
39 (2) With respect to an individual whose New York adjusted gross income
40 is over ten million dollars, the New York itemized deduction shall be an
41 amount equal to twenty-five percent of any charitable contribution
42 deduction allowed under section one hundred seventy of the internal
43 revenue code for taxable years beginning after two thousand nine and
44 ending before two thousand [sixteen] eighteen.
45 § 2. Subdivision (g) of section 11-1715 of the administrative code of
46 the city of New York, as amended by section 2 of part D of chapter 59 of
47 the laws of 2013, is amended to read as follows:
48 (g) (1) With respect to an individual whose New York adjusted gross
49 income is over one million dollars but no more than ten million dollars,
50 the New York itemized deduction shall be an amount equal to fifty
51 percent of any charitable contribution deduction allowed under section
52 one hundred seventy of the internal revenue code for taxable years
53 beginning after two thousand nine and before two thousand [sixteen]
54 eighteen. With respect to an individual whose New York adjusted gross
S. 4209 25
1 income is over one million dollars, the New York itemized deduction
2 shall be an amount equal to fifty percent of any charitable contribution
3 deduction allowed under section one hundred seventy of the internal
4 revenue code for taxable years beginning in two thousand nine or after
5 two thousand [fifteen] seventeen.
6 (2) With respect to an individual whose New York adjusted gross income
7 is over ten million dollars, the New York itemized deduction shall be an
8 amount equal to twenty-five percent of any charitable contribution
9 deduction allowed under section one hundred seventy of the internal
10 revenue code for taxable years beginning after two thousand nine and
11 ending before two thousand [sixteen] eighteen.
12 § 3. This act shall take effect immediately.
13 PART I
14 Section 1. Paragraph 41 of subsection (c) of section 612 of the tax
15 law, as added by section 1 of part KK of chapter 59 of the laws of 2014,
16 is amended to read as follows:
17 (41) The amount of any award paid to a volunteer firefighter or volun-
18 teer ambulance worker from a length of service defined contribution plan
19 or defined benefit plan as provided for in articles eleven-A, eleven-AA,
20 eleven-AAA and eleven-AAAA of the general municipal law, to the extent
21 that such award is includable in gross income for federal income tax
22 purposes; provided, however, that such award is not distributed in the
23 form of a lump sum distribution, as defined in subparagraph [(A)] (D) of
24 paragraph four of subsection (e) of section four hundred two of the
25 internal revenue code and taxed under section six hundred three of this
26 article; and provided, further, that such award is not distributed to a
27 taxpayer who has not attained the age of fifty-nine and one-half years.
28 § 2. Paragraph 37 of subdivision (c) of section 11-1712 of the admin-
29 istrative code of the city of New York, as added by section 2 of part KK
30 of chapter 59 of the laws of 2014, is amended to read as follows:
31 (37) The amount of any award paid to a volunteer firefighter or volun-
32 teer ambulance worker from a length of service defined contribution plan
33 or defined benefit plan as provided for in articles eleven-A, eleven-AA,
34 eleven-AAA and eleven-AAAA of the general municipal law, to the extent
35 that such award is includable in gross income for federal income tax
36 purposes; provided, however, that such award is not distributed in the
37 form of a lump sum distribution, as defined in subparagraph [(A)] (D) of
38 paragraph four of subsection (e) of section four hundred two of the
39 internal revenue code and taxed under section six hundred three of the
40 tax law; and provided, further, that such award is not distributed to a
41 taxpayer who has not attained the age of fifty-nine and one-half years.
42 § 3. Paragraph 3-a of subsection (c) of section 612 of the tax law, as
43 amended by chapter 760 of the laws of 1992, is amended to read as
44 follows:
45 (3-a) Pensions and annuities received by an individual who has
46 attained the age of fifty-nine and one-half, not otherwise excluded
47 pursuant to paragraph three of this subsection, to the extent includible
48 in gross income for federal income tax purposes, but not in excess of
49 twenty thousand dollars, which are periodic payments attributable to
50 personal services performed by such individual prior to his retirement
51 from employment, which arise (i) from an employer-employee relationship
52 or (ii) from contributions to a retirement plan which are deductible for
53 federal income tax purposes. However, the term "pensions and annuities"
54 shall also include distributions received by an individual who has
S. 4209 26
1 attained the age of fifty-nine and one-half from an individual retire-
2 ment account or an individual retirement annuity, as defined in section
3 four hundred eight of the internal revenue code, and distributions
4 received by an individual who has attained the age of fifty-nine and
5 one-half from self-employed individual and owner-employee retirement
6 plans which qualify under section four hundred one of the internal
7 revenue code, whether or not the payments are periodic in nature. Never-
8 theless, the term "pensions and annuities" shall not include any lump
9 sum distribution, as defined in subparagraph [(A)] (D) of paragraph four
10 of subsection (e) of section four hundred two of the internal revenue
11 code and taxed under section six hundred three of this article. Where a
12 husband and wife file a joint state personal income tax return, the
13 modification provided for in this paragraph shall be computed as if they
14 were filing separate state personal income tax returns. Where a payment
15 would otherwise come within the meaning of the term "pensions and annui-
16 ties" as set forth in this paragraph, except that such individual is
17 deceased, such payment shall, nevertheless, be treated as a pension or
18 annuity for purposes of this paragraph if such payment is received by
19 such individual's beneficiary.
20 § 4. Subparagraph (B) of paragraph 1 of subsection (e-1) of section
21 606 of the tax law, as added by section 2 of part K of chapter 59 of the
22 laws of 2014, is amended to read as follows:
23 (B) "Household" or "members of the household" means a qualified
24 taxpayer and all other persons, not necessarily related, who have the
25 same residence and share its furnishings, facilities and accommodations.
26 Such terms shall not include a tenant, subtenant, roomer or boarder who
27 is not related to the qualified taxpayer in any degree specified in
28 [paragraphs one through eight of subsection (a)] subparagraphs (A)
29 through (G) of paragraph two of subsection (d) of section one hundred
30 fifty-two of the internal revenue code. Provided, however, no person may
31 be a member of more than one household at one time.
32 § 5. Subparagraph (D) of paragraph 1 of subsection (e-1) of section
33 606 of the tax law, as added by section 2 of part K of chapter 59 of the
34 laws of 2014, is amended to read as follows:
35 (D) "Residence" means a dwelling in this state, in a city with a popu-
36 lation of over one million, owned or rented by the taxpayer, and so much
37 of the land abutting it, not exceeding one acre, as is reasonably neces-
38 sary for use of the dwelling as a home, and may consist of a part of a
39 multi-dwelling or multi-purpose building including a cooperative or
40 condominium, and rental units within a single dwelling. Residence
41 includes a trailer or mobile home, used exclusively for residential
42 purposes and defined as real property pursuant to paragraph (g) of
43 subdivision twelve of section one hundred two of the real property tax
44 law.
45 § 6. Subparagraph (B) of paragraph 1 of subsection (e) of section 606
46 of the tax law, as amended by chapter 28 of the laws of 1987, is amended
47 to read as follows:
48 (B) "Household" or "members of the household" means a qualified
49 taxpayer and all other persons, not necessarily related, who have the
50 same residence and share its furnishings, facilities and accommodations.
51 Such terms shall not include a tenant, subtenant, roomer or boarder who
52 is not related to the qualified taxpayer in any degree specified in
53 [paragraphs one through eight of subsection (a)] subparagraphs (A)
54 through (G) of paragraph two of subsection (d) of section one hundred
55 fifty-two of the internal revenue code. Provided, however, no person may
56 be a member of more than one household at one time.
S. 4209 27
1 § 7. Paragraph 1 of subsection (b) of section 806 of the tax law, as
2 added by section 2 of part DD of chapter 59 of the laws of 2014, is
3 amended to read as follows:
4 (1) The commissioner may require the filing of a combined return
5 which, in addition to the return provided for in subsection (b) of
6 section eight hundred four of this article, may also include any of the
7 returns required to be filed by a [resident individual of New York
8 state] taxpayer pursuant to the provisions of section six hundred
9 fifty-one of this chapter and which may be required to be filed by such
10 [individual] taxpayer pursuant to any local law enacted pursuant to the
11 authority of article thirty, thirty-A or thirty-B of this chapter.
12 § 8. Paragraph 1 and clause (ii) of subparagraph (B) of paragraph 2 of
13 subsection (xx) of section 606 of the tax law, as added by section 4 of
14 part R of chapter 59 of the laws of 2014, are amended to read as
15 follows:
16 (1) A qualified New York manufacturer will be allowed a credit equal
17 to twenty percent of the real property tax it paid during the taxable
18 year for real property owned by such manufacturer in New York which was
19 principally used during the taxable year for manufacturing to the extent
20 not deducted in computing [federal] New York adjusted gross income. This
21 credit will not be allowed if the real property taxes that are the basis
22 for this credit are included in the calculation of another credit
23 claimed by the taxpayer.
24 (ii) In addition, the term real property tax includes taxes paid by
25 the taxpayer upon real property principally used during the taxable year
26 by the taxpayer in manufacturing where the taxpayer leases such real
27 property from an unrelated third party if the following conditions are
28 satisfied: (I) the tax must be paid by the taxpayer as lessee pursuant
29 to explicit requirements in a written lease, and (II) the taxpayer as
30 lessee has paid such taxes directly to the taxing authority and has
31 received a written receipt for payment of taxes from the taxing authori-
32 ty. In the case of a [combined group that constitutes a qualified New
33 York manufacturer] taxpayer that, during the taxable year, is principal-
34 ly engaged in the production of goods by farming, agriculture, horticul-
35 ture, floriculture, viticulture, or commercial fishing, the taxpayer is
36 eligible if the taxpayer satisfies the conditions in the preceding
37 sentence [are satisfied if one corporation in the combined group is the
38 lessee and another corporation in the combined group makes the payments
39 to the taxing authority] and the taxpayer leases such real property from
40 a related or unrelated party.
41 § 9. Subsection (yy) of section 606 of the tax law, as added by
42 section 4 of part T of chapter 59 of the laws of 2014, is amended to
43 read as follows:
44 (yy) The tax-free NY area excise tax on telecommunication services
45 credit. A taxpayer that is a business or owner of a business that is
46 located in a tax-free NY area approved pursuant to article twenty-one of
47 the economic development law shall be allowed a credit equal to the
48 excise tax on telecommunication services imposed by section one hundred
49 eighty-six-e of this chapter and passed through to such business during
50 the taxable year to the extent not otherwise deducted in computing
51 [federal] New York adjusted gross income. This credit may be claimed
52 only where any tax imposed by such section one hundred eighty-six-e has
53 been separately stated on a bill from the provider of telecommunication
54 services and paid by such taxpayer with respect to such services
55 rendered within a tax-free NY area during the taxable year. If the
56 amount of the credit allowed under this subsection for any taxable year
S. 4209 28
1 exceeds the taxpayer's tax for such year, the excess will be treated as
2 an overpayment to be credited or refunded in accordance with the
3 provisions of section six hundred eighty-six of this article, provided,
4 however, that no interest will be paid thereon.
5 § 10. Subparagraph (i) of paragraph 2 of subdivision (b) and subdivi-
6 sion (d) of section 25-b of the labor law, as added by section 1 of part
7 MM of chapter 59 of the laws of 2014, are amended to read as follows:
8 (i) who is deemed to have a developmental disability, as that term is
9 defined in subdivision twenty-two of section 1.03 of the mental hygiene
10 law and who is certified by the education department or the office for
11 people with developmental disabilities[:
12 (A)] as a person with a disability which constitutes or results in a
13 substantial handicap to employment; and
14 [(B) as a person having completed or as receiving services under an
15 individualized written rehabilitation plan approved by the education
16 department or other state agency responsible for providing vocational
17 rehabilitation services to such individual; and]
18 (d) To participate in the [developmentally disabled works] workers
19 with disabilities tax credit program, an employer must submit an appli-
20 cation (in a form prescribed by the commissioner) to the commissioner
21 [no later than November thirtieth of the prior year]. The commissioner
22 shall establish guidelines that specify requirements for employers to
23 participate in the program including criteria for certifying qualified
24 employees. Any regulations that the commissioner determines are neces-
25 sary may be adopted on an emergency basis notwithstanding anything to
26 the contrary in section two hundred two of the state administrative
27 procedure act. Such requirements may include the types of industries
28 that the employers are engaged in.
29 § 11. This act shall take effect immediately, provided, however that:
30 (i) sections one and two of this act shall be deemed to have been in
31 full force and effect on and after the effective date of part KK of
32 chapter 59 of the laws of 2014;
33 (ii) sections four and five of this act shall be deemed to have been
34 in full force and effect on and after the effective date of part K of
35 chapter 59 of the laws of 2014, provided, however, that the amendments
36 to subsection (e-1) of section 606 of the tax law made by sections four
37 and five of this act shall not affect the repeal of such subsection and
38 shall be deemed repealed therewith;
39 (iii) section seven of this act shall be deemed to have been in full
40 force and effect on and after the effective date of part DD of chapter
41 59 of the laws of 2014;
42 (iv) section eight of this act shall be deemed to have been in full
43 force and effect on and after the effective date of part R of chapter 59
44 of the laws of 2014;
45 (v) section nine of this act shall be deemed to have been in full
46 force and effect on and after the effective date of part T of chapter 59
47 of the laws of 2014;
48 (vi) section ten of this act shall be deemed to have been in full
49 force and effect on and after the effective date of part MM of chapter
50 59 of the laws of 2014; and
51 (vii) the amendments to section 25-b of the labor law made by section
52 ten of this act, shall not affect the repeal of such section and shall
53 be deemed repealed therewith.
54 PART J
S. 4209 29
1 Section 1. Section 9 of part V of chapter 62 of the laws of 2006,
2 amending the tax law relating to the empire state commercial production
3 tax credit, is REPEALED.
4 § 2. Subdivision (c) of section 28 of the tax law, as amended by
5 section 45 of part A of chapter 59 of the laws of 2014, is relettered
6 subdivision (d) and a new subdivision (c) is added to read as follows:
7 (c) The department of economic development shall submit, on or before
8 December first of each year, to the governor, the director of the divi-
9 sion of the budget, the temporary president of the senate, and the
10 speaker of the assembly an annual report including, but not limited to,
11 the following information regarding the previous calendar year:
12 (1) the total dollar amount of credits allocated, the name and address
13 of each qualified commercial production company allocated credits under
14 this section, the total amount of credits allocated to each qualified
15 commercial production company, the total amount of qualified production
16 costs and production costs for each qualified commercial production
17 company, and the estimated number of employees, credit-eligible man
18 hours, and credit-eligible wages associated with each qualified commer-
19 cial production company allocated credits under this section;
20 (2) for qualified commercial production companies that were allocated
21 credit pursuant to subparagraph (ii) of paragraph two of subdivision (a)
22 of this section: the name and address of each qualified commercial
23 production company, the total dollar amount of credits allocated, the
24 total amount of credits allocated to each qualified commercial
25 production company, total qualified production costs and production
26 costs for each qualified production company, and the estimated number of
27 employees, credit-eligible man hours, and credit-eligible wages associ-
28 ated with each qualified commercial production company that filmed or
29 recorded a qualified commercial within the district;
30 (3) for qualified commercial production companies that were allocated
31 credit pursuant to subparagraph (iii) of paragraph two of subdivision
32 (a) of this section: the name and address of each qualified commercial
33 production company, the total dollar amount of credits allocated, the
34 total amount of credits allocated to each qualified commercial
35 production company, total qualified production costs and production
36 costs for each qualified production company, and the estimated number of
37 employees, credit-eligible man hours, and credit-eligible wages associ-
38 ated with each qualified commercial production company that filmed or
39 recorded a qualified commercial outside the district; and
40 (4) the amount of credits reallocated to all eligible qualified
41 commercial production companies pursuant to subparagraph (iii) of para-
42 graph two of subdivision (a) of this section.
43 (5) The report may also include any recommendations for changes in the
44 calculation or administration of the credit, recommendations regarding
45 continuing modification or repeal of this credit, and any other informa-
46 tion regarding this credit as may be useful and appropriate.
47 § 3. This act shall take effect immediately with the first report
48 being due December 1, 2016, with regard to credits allocated in calendar
49 year 2015.
50 PART K
51 Section 1. Subdivision 14 of section 352 of the economic development
52 law, as added by section 1 of part MM of chapter 59 of the laws of 2010,
53 is amended and a new subdivision 20 is added to read as follows:
S. 4209 30
1 14. "Regionally significant project" means (a) a manufacturer creating
2 at least fifty net new jobs in the state and making significant capital
3 investment in the state; (b) a business creating at least twenty net new
4 jobs in agriculture in the state and making significant capital invest-
5 ment in the state, (c) a financial services firm, distribution center,
6 or back office operation creating at least three hundred net new jobs in
7 the state and making significant capital investment in the state, [or]
8 (d) a scientific research and development firm creating at least twenty
9 net new jobs in the state, and making significant capital investment in
10 the state, or (e) a video game developer creating at least twenty net
11 new jobs in the state and making significant capital investment in the
12 state. Other businesses creating three hundred or more net new jobs in
13 the state and making significant capital investment in the state may be
14 considered eligible as a regionally significant project by the commis-
15 sioner as well. The commissioner shall promulgate regulations pursuant
16 to section three hundred fifty-six of this article to determine what
17 constitutes significant capital investment for each of the project cate-
18 gories indicated in this subdivision and what additional criteria a
19 business must meet to be eligible as a regionally significant project,
20 including, but not limited to, whether a business exports a substantial
21 portion of its products or services outside of the state or outside of a
22 metropolitan statistical area or county within the state.
23 20. "Video game developer" means a corporation, partnership, limited
24 partnership, or other entity principally engaged in the production or
25 post-production of video games, or the production or post-production of
26 video games other than those embedded and used exclusively in advertis-
27 ing, promotional websites or microsites, but shall not include an entity
28 principally engaged in the production of content intended primarily for
29 industrial, corporate or institutional end-users, principally engaged in
30 the production of fundraising programs, or engaged in the production of
31 content for which records are required, under section 2257 of title 18
32 of the United States code, to be maintained with respect to any perform-
33 er in such production.
34 § 2. Paragraph (c) of subdivision 1 and subdivision 3 of section 353
35 of the economic development law, paragraph (c) of subdivision 1 as
36 amended by section 2 of part G of chapter 61 of the laws of 2011 and
37 subdivision 3 as amended by section 1 of part C of chapter 68 of the
38 laws of 2013, are amended to read as follows:
39 (c) in software development and new media, or as a video game develop-
40 er;
41 3. For the purposes of this article, in order to participate in the
42 excelsior jobs program, a business entity operating predominantly in
43 manufacturing must create at least ten net new jobs; a business entity
44 operating predominately in agriculture must create at least five net new
45 jobs; a business entity operating predominantly as a financial service
46 data center or financial services customer back office operation must
47 create at least fifty net new jobs; a business entity operating predomi-
48 nantly in scientific research and development must create at least five
49 net new jobs; a business entity operating predominantly in software
50 development or as a video game developer must create at least five net
51 new jobs; a business entity creating or expanding back office operations
52 must create at least fifty net new jobs; or a business entity operating
53 predominantly as a distribution center in the state must create at least
54 seventy-five net new jobs, notwithstanding subdivision five of this
55 section; or a business entity must be a regionally significant project
56 as defined in this article; or
S. 4209 31
1 § 3. This act shall take effect immediately.
2 PART L
3 Intentionally Omitted
4 PART M
5 Intentionally Omitted
6 PART N
7 Section 1. Subparagraph (iv) of paragraph (a) of subdivision 1 of
8 section 210 of the tax law, as amended by section 12 of part A of chap-
9 ter 59 of the laws of 2014, is amended to read as follows:
10 (iv) (A) for taxable years beginning before January first, two thou-
11 sand sixteen, if the business income base is not more than two hundred
12 ninety thousand dollars the amount shall be six and one-half percent of
13 the business income base; if the business income base is more than two
14 hundred ninety thousand dollars but not over three hundred ninety thou-
15 sand dollars the amount shall be the sum of (1) eighteen thousand eight
16 hundred fifty dollars, (2) seven and one-tenth percent of the excess of
17 the business income base over two hundred ninety thousand dollars but
18 not over three hundred ninety thousand dollars and (3) four and thirty-
19 five hundredths percent of the excess of the business income base over
20 three hundred fifty thousand dollars but not over three hundred ninety
21 thousand dollars;
22 (B) for taxable years beginning on or after January first, two thou-
23 sand sixteen and before January first, two thousand seventeen, if the
24 business income base is not more than four hundred thousand dollars the
25 amount shall be three and one-quarter percent of the business income
26 base; if the business income base is more than four hundred thousand
27 dollars but not over five hundred thousand dollars the amount shall be
28 the sum of (1) thirteen thousand dollars, (2) six and one-half percent
29 of the excess of the business income base over four hundred thousand
30 dollars but not over five hundred thousand dollars and (3) twenty-six
31 percent of the excess of the business income base over four hundred
32 fifty thousand dollars but not over five hundred thousand dollars;
33 (C) for taxable years beginning on or after January first, two thou-
34 sand seventeen and before January first, two thousand eighteen, if the
35 business income base is not more than four hundred thousand dollars the
36 amount shall be two and nine-tenths percent of the business income base;
37 if the business income base is more than four hundred thousand dollars
38 but not over five hundred thousand dollars the amount shall be the sum
39 of (1) eleven thousand six hundred dollars, (2) six and one-half percent
40 of the excess of the business income base over four hundred thousand
41 dollars but not over five hundred thousand dollars and (3) twenty-eight
42 and eight-tenths percent of the excess of the business income base over
43 four hundred fifty thousand dollars but not over five hundred thousand
44 dollars;
45 (D) for taxable years beginning on or after January first, two thou-
46 sand eighteen, if the business income base is not more than four hundred
47 thousand dollars the amount shall be two and one-half percent of the
48 business income base; if the business income base is more than four
S. 4209 32
1 hundred thousand dollars but not over five hundred thousand dollars the
2 amount shall be the sum of (1) ten thousand dollars, (2) six and one-
3 half percent of the excess of the business income base over four hundred
4 thousand dollars but not over five hundred thousand dollars and (3)
5 thirty percent of the excess of the business income base over four
6 hundred fifty thousand dollars but not over five hundred thousand
7 dollars;
8 § 2. Paragraph 39 of subsection (c) of section 612 of the tax law, as
9 amended by section 1 of part Y of chapter 59 of the laws of 2013, is
10 amended to read as follows:
11 (39) In the case of a taxpayer who is a small business who has busi-
12 ness income and/or farm income as defined in the laws of the United
13 States, an amount equal to [three] ten percent of the net items of
14 income, gain, loss and deduction attributable to such business or farm
15 entering into federal adjusted gross income, but not less than zero[,
16 for taxable years beginning after two thousand thirteen, an amount equal
17 to three and three-quarters percent of the net items of income, gain,
18 loss and deduction attributable to such business or farm entering into
19 federal adjusted gross income, but not less than zero, for taxable years
20 beginning after two thousand fourteen, and an amount equal to five
21 percent of the net items of income, gain, loss and deduction attribut-
22 able to such business or farm entering into federal adjusted gross
23 income, but not less than zero, for taxable years beginning after two
24 thousand fifteen]. Provided that such business or farm income is less
25 than or equal to five hundred thousand dollars. For the purposes of this
26 paragraph, the term small business shall mean a [sole proprietor] busi-
27 ness or a farm business who employs one or more persons during the taxa-
28 ble year and who has net business income or net farm income of equal to
29 or less than [two hundred fifty thousand dollars] five hundred thousand
30 dollars. For the purposes of this paragraph, if the taxpayer is a
31 member, partner, or shareholder of a limited liability company, partner-
32 ship or S-corporation, the taxpayer will only be eligible under this
33 paragraph if the New York source gross income of the limited liability
34 company, partnership or S-corporation does not exceed one million
35 dollars. New York source gross income is the sum of the members, part-
36 ners, or shareholders shares of federal gross income from the limited
37 liability company, partnership, or S-corporation derived from or
38 connected with New York sources, determined in accordance with the
39 provisions of section six hundred thirty-one of this article as if those
40 provisions and any related provisions expressly referred to a computa-
41 tion of federal gross income from New York sources.
42 § 3. This act shall take effect immediately; provided that section two
43 of this act shall apply to taxable years beginning on or after January
44 1, 2016.
45 PART O
46 Section 1. The economic development law is amended by adding a new
47 article 22 to read as follows:
48 ARTICLE 22
49 TECHNOLOGY INTERNSHIP PROGRAM
50 Section 441. Technology internship program.
51 442. Powers and duties of the commissioner.
52 443. Recordkeeping requirements.
S. 4209 33
1 444. Cap on tax credit.
2 § 441. Technology internship program. There is hereby established
3 within the division of science, technology and innovation a technology
4 internship program to provide employment and experience opportunities
5 for current students, recent graduates and members of the armed forces.
6 1. To be eligible to participate in the technology internship program,
7 a candidate shall:
8 a. i. (A) Be a student enrolled at a public or private nonprofit
9 institution of higher education in this state; and
10 (B) Maintain a cumulative 3.0 grade point average on a 4.0 scale each
11 academic year; or
12 ii. (A) Within twelve months before the date of the application for
13 the program, have graduated from a public or private nonprofit institu-
14 tion of higher education in this state; and
15 (B) Have maintained a cumulative 3.0 grade point average on a 4.0
16 scale during the latest academic year the individual was enrolled as a
17 student; or
18 iii. (A) Have been honorably discharged from the United States armed
19 forces, the national guard, or a reserve component of the United States
20 armed forces; and
21 (B) Have graduated from a public or private nonprofit institution of
22 higher education; and
23 b. Commit to working a minimum of one hundred twenty hours during the
24 spring, fall or summer semester;
25 2. To qualify for participation in the program, a business shall:
26 a. Be located in the state;
27 b. Be an advanced technology based company as defined by criteria
28 established by the division;
29 c. Have less than one hundred employees;
30 d. Commit to hosting an intern for a minimum of one hundred twenty
31 hours during the spring, fall or summer semester; and
32 e. Provide the division a detailed description of the intern position
33 that establishes how the position will provide the intern experience in
34 advanced technology.
35 § 442. Powers and duties of the commissioner. 1. The commissioner may
36 approve an application from a business entity upon determining that such
37 business entity meets the eligibility criteria established in section
38 four hundred forty-one of this article. Following approval by the
39 commissioner of an application by a business entity to participate in
40 the technology internship program, the commissioner shall issue a
41 certificate of tax credit to the business entity upon its demonstrating
42 the intern was eligible and completed one hundred twenty hours of work
43 during the relevant semester. The amount of the credit shall be equal
44 to up to fifty percent of a stipend paid to an intern, but not more
45 than one thousand eight hundred dollars for the first semester; and one
46 thousand two hundred dollars for the second semester. Such amount may
47 not total more than three thousand dollars each year for each intern.
48 The tax credits shall be claimed by the qualified employer as specified
49 in subdivision fifty of section two hundred ten-B and subsection (ddd)
50 of section six hundred six of the tax law.
51 2. The commissioner shall, in consultation with the commissioner of
52 labor, promulgate regulations consistent with the purposes of this arti-
53 cle.
54 3. The commissioner shall, in consultation with the department of
55 taxation and finance, develop a certificate of tax credit that shall be
S. 4209 34
1 issued by the commissioner to participating business entities. Partic-
2 ipants may be required by the commissioner of taxation and finance to
3 include the certificate of tax credit with their tax return to receive
4 any tax benefits under this article.
5 4. The commissioner shall solely determine the eligibility of any
6 applicant applying for entry into the program and shall remove any
7 participant from the program for failing to meet any of the requirements
8 set forth in subdivision two of section four hundred forty-one of this
9 article or for making a material misrepresentation with respect to its
10 participation in the technology internship program.
11 § 443. Recordkeeping requirements. Each business entity participating
12 in the technology internship program shall maintain all relevant records
13 for the duration of its program participation plus three years.
14 § 444. Cap on tax credit. The total amount of tax credits listed on
15 certificates of tax credit issued by the commissioner for any taxable
16 year may not exceed one million dollars.
17 § 2. Section 210-B of the tax law is amended by adding a new subdivi-
18 sion 50 to read as follows:
19 50. Technology internship program tax credit. (a) A taxpayer that has
20 been approved by the commissioner of economic development to participate
21 in the technology internship program and has been issued a certificate
22 of tax credit pursuant to section four hundred forty-two of the economic
23 development law shall be allowed to claim a credit against the tax
24 imposed by this article. The credit shall equal up to fifty percent of
25 a stipend paid to an intern, but not more than one thousand eight
26 hundred dollars for the first semester; and one thousand two hundred
27 dollars for the second semester. Such amount may not total more than
28 three thousand dollars each year for each intern. In no event shall a
29 taxpayer be allowed a credit greater than the amount of credit listed on
30 the certificate of tax credit issued by the commissioner of economic
31 development. The credit will be allowed in the taxable year in which the
32 intern worked.
33 (b) The credit allowed under this subdivision for any taxable year may
34 not reduce the tax due for that year to less than the amount prescribed
35 in paragraph (d) of subdivision one of section two hundred ten of this
36 article. However, if the amount of credit allowed under this subdivi-
37 sion for any taxable year reduces the tax to such amount, or if the
38 taxpayer otherwise pays tax based on the fixed dollar minimum amount,
39 any amount of credit thus not deductible in that taxable year will be
40 treated as an overpayment of tax to be credited or refunded in accord-
41 ance with the provisions of section one thousand eighty-six of this
42 chapter. Provided, however, the provisions of subsection (c) of section
43 one thousand eighty-eight of this chapter notwithstanding, no interest
44 will be paid thereon.
45 (c) The taxpayer may be required to attach to its tax return its
46 certificate of tax credit issued by the commissioner of economic devel-
47 opment pursuant to section four hundred forty-two of the economic devel-
48 opment law. In no event shall the taxpayer be allowed a credit greater
49 than the amount of the credit listed in the certificate of tax credit,
50 or in the case of a taxpayer who is a partner in a partnership or a
51 member of a limited liability company, its pro rata share of the amount
52 of credit listed in the certificate of tax credit issued to the partner-
53 ship or limited liability company.
54 § 3. Section 606 of the tax law is amended by adding a new subsection
55 (ddd) to read as follows:
S. 4209 35
1 (ddd) Technology internship program tax credit. (1) A taxpayer that
2 has been approved by the commissioner of economic development to partic-
3 ipate in the technology internship program and has been issued a certif-
4 icate of tax credit pursuant to section four hundred forty-two of the
5 economic development law shall be allowed to claim a credit against the
6 tax imposed by this article. The credit shall equal up to fifty percent
7 of a stipend paid to an intern, but not more than one thousand eight
8 hundred dollars for the first semester; and one thousand two hundred
9 dollars for the second semester. Such amount may not total more than
10 three thousand dollars each year for each intern. In no event shall a
11 taxpayer be allowed a credit greater than the amount listed on the
12 certificate of tax credit issued by the commissioner of economic devel-
13 opment. In the case of a taxpayer who is a partner in a partnership,
14 member of a limited liability company or shareholder in an S corpo-
15 ration, the taxpayer shall be allowed its pro rata share of the credit
16 earned by the partnership, limited liability company or S corporation.
17 The credit will be allowed in the taxable year in which the intern
18 worked.
19 (2) If the amount of the credit allowed under this subsection for any
20 taxable year exceeds the taxpayer's tax for the taxable year, the excess
21 shall be treated as an overpayment of tax to be credited or refunded in
22 accordance with the provisions of section six hundred eighty-six of this
23 article, provided, however, no interest will be paid thereon.
24 § 4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
25 of the tax law is amended by adding a new clause (xlii) to read as
26 follows:
27 (xlii) Technology internship Amount of credit under
28 program credit under subdivision fifty of
29 subsection (ddd) section two hundred ten-B
30 § 5. This act shall take effect immediately and shall apply to taxable
31 years beginning on or after January 1, 2015.
32 PART P
33 Intentionally Omitted
34 PART Q
35 Intentionally Omitted
36 PART R
37 Section 1. Subdivision (b) of section 27-1318 of the environmental
38 conservation law, as amended by section 2 of part E of chapter 577 of
39 the laws of 2004, is amended to read as follows:
40 (b) Within [sixty] one hundred eighty days of commencement of the
41 remedial design, the owner of an inactive hazardous waste disposal site,
42 and/or any person responsible for implementing a remedial program at
43 such site, where institutional or engineering controls are employed
44 pursuant to this title, shall execute an environmental easement pursuant
45 to title thirty-six of article seventy-one of this chapter.
46 § 2. Subdivision 2 of section 27-1405 of the environmental conserva-
47 tion law, as amended by section 2 of part A of chapter 577 of the laws
S. 4209 36
1 of 2004, is amended and four new subdivisions 29, 30, 31 and 32 are
2 added to read as follows:
3 2. "Brownfield site" or "site" shall mean any real property[, the
4 redevelopment or reuse of which may be complicated by the presence or
5 potential presence of] where a contaminant is present at levels exceed-
6 ing the soil cleanup objectives or other health based or environmental
7 standards, criteria or guidance adopted by the department that are
8 applicable based on the reasonably anticipated use of the property, as
9 determined by the applicant in accordance with applicable regulations.
10 Such term shall not include real property:
11 (a) listed in the registry of inactive hazardous waste disposal sites
12 under section 27-1305 of this article at the time of application to this
13 program and given a classification as described in subparagraph one or
14 two of paragraph b of subdivision two of section 27-1305 of this arti-
15 cle; provided, however [except until July first, two thousand five],
16 real property listed in the registry of inactive hazardous waste
17 disposal sites under subparagraph two of paragraph b of subdivision two
18 of section 27-1305 of this article [prior to the effective date of this
19 article], where such real property is owned by a volunteer or under
20 contract to be transferred to a volunteer, shall not be deemed ineligi-
21 ble to participate, provided that, prior to the site being accepted into
22 the brownfield cleanup program, the department has not identified any
23 responsible party for that property having the ability to pay for the
24 investigation or cleanup of the property and further provided that the
25 status of any such site as listed in the registry shall not be altered
26 prior to the issuance of a certificate of completion pursuant to section
27 27-1419 of this title. The department's assessment of eligibility under
28 this paragraph shall not constitute a finding concerning liability with
29 respect to the property;
30 (b) listed on the national priorities list established under authority
31 of 42 U.S.C. section 9605;
32 (c) subject to an enforcement action under title seven or nine of this
33 article, [except] or permitted or required to be permitted as a treat-
34 ment, storage or disposal facility [subject to a permit]; provided, that
35 nothing herein contained shall be deemed otherwise to exclude from the
36 scope of the term "brownfield site" a hazardous waste treatment, storage
37 or disposal facility having interim status according to regulations
38 promulgated by the commissioner and provided further that real property
39 owned by a volunteer or under contract to be transferred to a volunteer,
40 whether or not operating pursuant to an order on consent issued by the
41 department shall not be deemed ineligible to participate provided that,
42 prior to the site being accepted into the brownfield cleanup program,
43 the department has not identified any responsible party for that proper-
44 ty having the ability to pay for the investigation or cleanup of the
45 property;
46 (d) subject to an order for cleanup pursuant to article twelve of the
47 navigation law or pursuant to title ten of article seventeen of this
48 chapter except such property shall not be deemed ineligible if it is
49 subject to a stipulation agreement; [or]
50 (e) subject to any other on-going state or federal environmental
51 enforcement action related to the contamination which is at or emanating
52 from the site subject to the present application[.]; or
53 (f) notwithstanding paragraphs (a), (c), and (d) of this subdivision,
54 any volunteer having an ownership or tenancy interest, or who has a
55 contract to purchase or obtain such ownership or tenancy interest, in
56 any real property located within a business or technology park exceeding
S. 4209 37
1 five hundred acres in size, used primarily for manufacturing or research
2 and development shall not be deemed ineligible to participate in the
3 Brownfield Cleanup Program. In such cases, the site preparation credit
4 component and the on-site groundwater remediation credit component under
5 paragraphs two and four, respectively, of subdivision (a) of section 21
6 of the tax law shall be limited only to the incremental costs exceeding
7 those necessary to satisfy the closure requirements of the permit or
8 order, as applicable, that the responsible party has with the department
9 of environmental conservation or the United States Environmental
10 Protection Agency.
11 29. "Affordable housing project" means a project where at least seven-
12 ty percent of the floor area will be for affordable housing, defined as
13 having at least twenty percent of its residential units subject to an
14 agreement with municipality, the state, the federal government, or an
15 instrumentality thereof where such agreement restricts occupancy of
16 those units to residents who qualify in accordance with an income test.
17 30. "Underutilized" shall mean the brownfield site and any improve-
18 ments: (a) on which a building or buildings containing no more than
19 fifty percent of the permissible floor area under applicable zoning is
20 being utilized; or (b) has a value of equal to or less than seventy
21 percent of the average valuation of land in the county or city in which
22 the land is located, except in a city having a population of one million
23 or more inhabitants where the average valuation shall be based on the
24 county in which the land is located; or (c) has been certified by the
25 municipality in which the site is located as underutilized pursuant to
26 the criteria in this subdivision.
27 31. "Functionally obsolescent" shall mean the brownfield site and any
28 improvements thereon that: (a) can no longer be functionally or econom-
29 ically utilized in the capacity in which it was formerly utilized
30 because of (i) the configuration of the building; or (ii) substantial
31 structural defects not brought about by deferred maintenance practices
32 or intentional conduct; or (b) the entire site or a significant portion
33 thereof, with or without improvements is used irregularly or intermit-
34 tently; or (c) the functionality of the equipment inside the building or
35 buildings is obsolete for a modern day application.
36 32. "Stigma" is the incremental loss in value beyond the cost factor
37 due to market perceptions arising from uncertainty and fear associated
38 with the actual or potential presence of contamination.
39 § 3. Subdivision 1 of section 27-1407 of the environmental conserva-
40 tion law, as amended by section 3 of part A of chapter 577 of the laws
41 of 2004, is amended and a new subdivision 1-a is added to read as
42 follows:
43 1. A person who seeks to participate in this program shall submit a
44 request to the department on a form provided by the department. Such
45 form shall include information to be determined by the department suffi-
46 cient to allow the department to determine eligibility and the current,
47 intended and reasonably anticipated future land use of the site pursuant
48 to section 27-1415 of this title. Any such person shall submit an
49 investigation report sufficient to demonstrate that the site requires
50 remediation in order to meet the remedial requirements of this title.
51 1-a. If the person is also seeking to receive the tangible property
52 credit component of the brownfield redevelopment tax credit pursuant to
53 paragraph three of subdivision (a) of section twenty-one of the tax law,
54 for a site situated in a city having a population of one million or more
55 persons, such person shall submit information sufficient to demonstrate
56 that: (a) at least half of the site area is located in the environ-
S. 4209 38
1 mental zone as defined in section twenty-one of the tax law or is
2 located in a census tract immediately adjacent to such a census tract
3 that is designated as an "environmental zone" as defined in paragraph
4 six of such division (b) of section twenty-one of the tax law, provided
5 further however, that the adjacent census tract eligibility criteria
6 shall only be applicable if such an adjacent census tract is located
7 within a village, town, or city with a population less than three
8 hundred twenty-five thousand; (b) the projected costs and all incurred
9 costs of the investigation and remediation which is protective for the
10 anticipated use of the site exceeds thirty-three percent of the unim-
11 paired value of the property less stigma; (c) the project is an afforda-
12 ble housing project; (d) the site is underutilized; or (e) the site is
13 functionally obsolescent. An applicant may request an eligibility deter-
14 mination for tangible property credits at any time from application
15 until the site receives a certificate of completion pursuant to section
16 27-1419 of this title.
17 § 4. Subdivision 3 of section 27-1407 of the environmental conserva-
18 tion law, as amended by section 3 of part A of chapter 577 of the laws
19 of 2004, is amended to read as follows:
20 3. The department shall notify the person requesting participation in
21 this program within [ten] thirty days after receiving such request that
22 such request is either complete or incomplete. In the event the applica-
23 tion is determined to be incomplete the department shall specify in
24 writing the missing necessary information required pursuant to this
25 article to complete the application and shall have ten days after
26 receipt of the missing information to issue a written determination if
27 the application is complete.
28 § 5. Subdivision 6 of section 27-1407 of the environmental conserva-
29 tion law, as added by section 1 of part A of chapter 1 of the laws of
30 2003, is amended to read as follows:
31 6. The department shall use all best efforts to expeditiously notify
32 the applicant within forty-five days after receiving their request for
33 participation that such request is either accepted or rejected, and, for
34 any applicant seeking to receive the tangible property credit component
35 of the brownfield redevelopment tax credit pursuant to paragraph three
36 of subdivision (a) of section twenty-one of the tax law, shall concur-
37 rently notify the applicant whether the criteria for receiving such
38 component as set forth in subdivision one of this section have been met.
39 § 6. Subdivision 9 of section 27-1407 of the environmental conserva-
40 tion law is amended by adding a new paragraph (g) to read as follows:
41 (g) The person's participation in any remedial program under the
42 department's oversight was terminated by the department or by a court
43 for failure to substantially comply with an agreement or order.
44 § 7. Subdivision 2 of section 27-1409 of the environmental conserva-
45 tion law, as amended by section 4 of part A of chapter 577 of the laws
46 of 2004, is amended and a new subdivision 9-a is added to read as
47 follows:
48 2. One requiring (a) the [applicant] participant to pay for state
49 costs, including the recovery of state costs incurred before the effec-
50 tive date of such agreement; provided, however, that such costs may be
51 based on a reasonable flat-fee for oversight, which shall reflect the
52 projected future state costs incurred in negotiating and overseeing
53 implementation of such agreement; and
54 (b) with respect to a brownfield site which the department has deter-
55 mined constitutes a significant threat to the public health or environ-
56 ment the department may include a provision requiring the applicant to
S. 4209 39
1 provide a technical assistance grant, as described in subdivision four
2 of section 27-1417 of this title and under the conditions described
3 therein, to an eligible party in accordance with procedures established
4 under such program, with the cost of such a grant incurred by a volun-
5 teer serving as an offset against such state costs[. Where the appli-
6 cant is a participant, the department shall include provisions relating
7 to recovery of state costs incurred before the effective date of such
8 agreement];
9 9-a. One stating that the state shall not consider the applicant an
10 operator of such brownfield site based solely upon execution or imple-
11 mentation of such brownfield site cleanup agreement for purposes of
12 remediation liability;
13 § 8. Section 27-1411 of the environmental conservation law is amended
14 by adding a new subdivision 6 to read as follows:
15 6. An applicant shall include with every report submitted to the
16 department a schedule for the submission of any subsequent work plan
17 required to meet the requirements of this title.
18 § 9. Subdivision 2 of section 27-1413 of the environmental conserva-
19 tion law, as amended by section 6 of part A of chapter 577 of the laws
20 of 2004, is amended to read as follows:
21 2. For all [other] sites seeking to receive the tangible property
22 credit component pursuant to paragraph three of subdivision (a) of
23 section twenty-one of the tax law and all sites accepted pursuant to
24 subdivision one-b of section 27-1407 of this title, the applicant shall
25 develop and evaluate at least two remedial alternatives, one of which
26 would achieve a Track 1 cleanup. The department shall have the
27 discretion to require the evaluation of additional alternatives at a
28 site that has been determined to pose a significant threat. The appli-
29 cant shall submit the alternatives analysis [as a part of the remedial
30 work plan to the department] within sixty days of the acceptance of the
31 remedial investigation by the department for review, approval, modifica-
32 tion or rejection by the department.
33 § 10. Subdivision 4 of section 27-1415 of the environmental conserva-
34 tion law, as amended by section 7 of part A of chapter 577 of the laws
35 of 2004, is amended to read as follows:
36 4. Tracks. The commissioner, in consultation with the commissioner of
37 health, shall propose within twelve months and thereafter timely promul-
38 gate regulations which create a multi-track approach for the remediation
39 of contamination, and, commencing on the effective date of such regu-
40 lations, utilize such multi-track approach. Such regulations shall
41 provide that groundwater use in Tracks 2, 3 or 4 can be either
42 restricted or unrestricted. The tracks shall be as follows:
43 Track 1: The remedial program shall achieve a cleanup level that will
44 allow the site to be used for any purpose without restriction and with-
45 out reliance on the long-term employment of institutional or engineering
46 controls, and shall achieve contaminant-specific remedial action objec-
47 tives for soil which conform with those contained in the generic table
48 of contaminant-specific remedial action objectives for unrestricted use
49 developed pursuant to subdivision six of this section. Provided, howev-
50 er, that volunteers whose proposed remedial program [for the remediation
51 of groundwater] (1)(i) may require the long-term employment of institu-
52 tional or engineering controls for the remediation of groundwater after
53 the bulk reduction of groundwater contamination to asymptotic levels has
54 been achieved or (ii) may require an institutional or engineering
55 control for more than five years solely to address soil vapor intrusion
S. 4209 40
1 but (2) whose program would otherwise conform with the requirements
2 necessary to qualify for Track 1, shall qualify for Track 1.
3 Track 2: The remedial program may include restrictions on the use of
4 the site or reliance on the long-term employment of engineering and/or
5 institutional controls, but shall achieve contaminant-specific remedial
6 action objectives for soil which conform with those contained in one of
7 the generic tables developed pursuant to subdivision six of this section
8 without the use of institutional or engineering controls to reach such
9 objectives.
10 Track 3: The remedial program shall achieve contaminant-specific reme-
11 dial action objectives for soil which conform with the criteria used to
12 develop the generic tables for such objectives developed pursuant to
13 subdivision six of this section but may use site specific data to deter-
14 mine such objectives.
15 Track 4: The remedial program shall achieve a cleanup level that will
16 be protective for the site's current, intended or reasonably anticipated
17 residential, commercial, or industrial use with restrictions and with
18 reliance on the long-term employment of institutional or engineering
19 controls to achieve such level. The regulations shall include a
20 provision requiring that a cleanup level which poses a risk in excee-
21 dance of an excess cancer risk of one in one million for carcinogenic
22 end points and a hazard index of one for non-cancer end points for a
23 specific contaminant at a specific site may be approved by the depart-
24 ment without requiring the use of institutional or engineering controls
25 to eliminate exposure only upon a site specific finding by the commis-
26 sioner, in consultation with the commissioner of health, that such level
27 shall be protective of public health and environment. Such finding shall
28 be included in the draft remedial work plan for the site and fully
29 described in the notice and fact sheet provided for such work plan.
30 § 11. Paragraphs (b), (c) and (d) of subdivision 7 of section 27-1415
31 of the environmental conservation law are relettered paragraphs (c), (d)
32 and (e) and a new paragraph (b) is added to read as follows:
33 (b) Within one hundred eighty days of commencement of the remedial
34 design or at least three months prior to the date of the anticipated
35 issuance of the certificate of completion, the owner of a brownfield
36 site, and/or any person responsible for implementing a remedial program
37 at such site, where institutional or engineering controls are employed
38 pursuant to this title, shall execute an environmental easement pursuant
39 to title thirty-six of article seventy-one of this chapter.
40 § 12. Paragraph (h) of subdivision 3 of section 27-1417 of the envi-
41 ronmental conservation law is REPEALED, paragraph (i) is relettered
42 paragraph (h) and paragraph (f), as amended by section 8 of part A of
43 chapter 577 of the laws of 2004, is amended to read as follows:
44 (f) Before the department [finalizes] selects a proposed [remedial
45 work plan] remedy from the alternatives set forth in the alternatives
46 analysis as prescribed by section 27-1413 of this title or makes a
47 determination that site conditions meet the requirements of this title
48 without the necessity for remediation pursuant to section 27-1411 of
49 this title, the department, in consultation with the applicant, must
50 notify individuals on the brownfield site contact list. Such notice
51 shall include a fact sheet describing such plan and provide for a
52 forty-five day public comment period. The commissioner shall hold a
53 public meeting if requested by the affected community and the commis-
54 sioner has found that the site constitutes a significant threat to the
55 public health or the environment. Further, the affected community may
56 request a public meeting at sites that do not constitute a significant
S. 4209 41
1 threat. (1) To the extent that the department has determined that site
2 conditions do not pose a significant threat and the site is being
3 addressed by a volunteer, the notice shall state that the department has
4 determined that no remediation is required for the off-site areas and
5 that the department's determination of a significant threat is subject
6 to this forty-five day comment period. (2) If the [remedial work plan]
7 remedy includes a Track 2, Track 3 or Track 4 remedy at a non-signifi-
8 cant threat site, such comment period shall apply both to the approval
9 of the alternatives analysis by the department, if applicable, and the
10 proposed remedy selected by the applicant.
11 § 13. Subdivision 1, paragraph (a) of subdivision 2 and subdivision 3
12 of section 27-1419 of the environmental conservation law, subdivision 1
13 and paragraph (a) of subdivision 2 as added by section 1 of part A of
14 chapter 1 of the laws of 2003, subdivision 3 as amended by chapter 390
15 of the laws of 2008, are amended to read as follows:
16 1. Upon certification by the applicant that the remediation require-
17 ments of this title have been or will be achieved in accordance with the
18 timeframes, if any, established in the remedial work plan for the brown-
19 field site, such applicant shall submit to the department a final engi-
20 neering report prepared by an individual licensed or otherwise author-
21 ized in accordance with article one hundred forty-five of the education
22 law to practice the profession of engineering.
23 (a) a description of the remediation activities completed pursuant to
24 the remedial work plan and any interim remedial measures for the brown-
25 field site;
26 3. Upon receipt of the final engineering report, the department shall
27 review such report and the data submitted pursuant to the brownfield
28 site cleanup agreement as well as any other relevant information regard-
29 ing the brownfield site. Upon satisfaction of the commissioner that the
30 remediation requirements set forth in this title have been or will be
31 achieved in accordance with the timeframes, if any, established in the
32 remedial work plan, the commissioner shall issue a written certificate
33 of completion[, such]. The certificate shall include such information as
34 determined by the department of taxation and finance, including but not
35 be limited to the brownfield site boundaries included in the final engi-
36 neering report, the date of the brownfield site cleanup agreement
37 [pursuant to section 27-1409 of this title], and the applicable percent-
38 ages available as of the date of the certificate of completion for that
39 site for purposes of section twenty-one of the tax law[, with such
40 percentages to be determined as follows with respect to such qualified
41 site]. For those sites for which the applicant has submitted an applica-
42 tion on or after January first, two thousand sixteen and that to its
43 request for participation has been accepted under subdivision six of
44 section 27-1407 of this title, the tangible property credit component of
45 the brownfield redevelopment tax credit pursuant to paragraph three of
46 subdivision (a) of section twenty-one of the tax law shall only be
47 available to the taxpayer if the criteria for receiving such tax compo-
48 nent have been met. For those sites for which the department has issued
49 a notice to the taxpayer after June twenty-third, two thousand eight
50 that its request for participation has been accepted under subdivision
51 six of section 27-1407 of this title[:
52 For the purposes of calculating], the applicable percentage for the
53 site preparation credit component pursuant to paragraph two of subdivi-
54 sion (a) of section twenty-one of the tax law, and the on-site groundwa-
55 ter remediation credit component pursuant to paragraph four of subdivi-
56 sion (a) of section twenty-one of the tax law[, the applicable
S. 4209 42
1 percentage] shall be based on the level of cleanup achieved pursuant to
2 subdivision four of section 27-1415 of this title and the level of
3 cleanup of soils to contaminant-specific soil cleanup objectives promul-
4 gated pursuant to subdivision six of section 27-1415 of this title, up
5 to a maximum of fifty percent, as follows:
6 (a) soil cleanup for unrestricted use, the protection of groundwater
7 or the protection of ecological resources, the applicable percentage
8 shall be fifty percent;
9 (b) soil cleanup for residential use, the applicable percentage shall
10 be forty percent, except for Track 4 which shall be twenty-eight
11 percent;
12 (c) soil cleanup for commercial use, the applicable percentage shall
13 be thirty-three percent, except for Track 4 which shall be twenty-five
14 percent;
15 (d) soil cleanup for industrial use, the applicable percentage shall
16 be twenty-seven percent, except for Track 4 which shall be twenty-two
17 percent.
18 § 14. Subdivision 5 of section 27-1419 of the environmental conserva-
19 tion law, as amended by section 9 of part A of chapter 577 of the laws
20 of 2004, is amended to read as follows:
21 5. A certificate of completion issued pursuant to this section may be
22 transferred [to the applicant's successors or assigns upon transfer or
23 sale of the brownfield site] by the applicant or subsequent holder of
24 the certificate of completion to a successor to a real property inter-
25 est, including legal title, equitable title or leasehold, in all or a
26 part of the brownfield site for which the certificate of completion was
27 issued. Notwithstanding any provision of this chapter to the contrary, a
28 certificate of completion shall not be transferred to a responsible
29 party. Further, a certificate of completion may be modified or revoked
30 by the commissioner upon a finding that:
31 (a) Either the applicant, or the applicant's successors or assigns,
32 has failed to comply with the terms and conditions of the brownfield
33 site cleanup agreement;
34 (b) The applicant made a misrepresentation of a material fact tending
35 to demonstrate that (i) it was qualified as a volunteer or (ii) met the
36 criteria set forth in subdivision one-a of section 27-1407 of this title
37 for the purpose of receiving the tangible property credit component of
38 the brownfield redevelopment tax credit pursuant to paragraph three of
39 subdivision (a) of section twenty-one of the tax law;
40 (c) Either the applicant, or the applicant's successors or assigns,
41 made a misrepresentation of a material fact tending to demonstrate that
42 the cleanup levels identified in the brownfield site cleanup agreement
43 were reached; or
44 (d) There is good cause for such modification or revocation.
45 § 15. Section 27-1423 of the environmental conservation law is
46 REPEALED.
47 § 16. Section 27-1429 of the environmental conservation law, as
48 amended by section 13 of part A of chapter 577 of the laws of 2004, is
49 amended to read as follows:
50 § 27-1429. Permit waivers.
51 The department[, by and through the commissioner,] shall be exempt,
52 and shall be authorized to exempt a person from the requirement to
53 obtain any state or local permit or other authorization for any activity
54 needed to implement a program for the investigation and/or remediation
55 of contamination at or emanating from a brownfield site; provided that
56 the activity is or will be conducted in a manner which satisfies all
S. 4209 43
1 substantive technical requirements applicable to like activity conducted
2 pursuant to a permit.
3 § 17. Subdivision 1 of section 27-1431 of the environmental conserva-
4 tion law is amended by adding a new paragraph c to read as follows:
5 c. to inspect for compliance with the site management plan approved by
6 the department, including (i) inspection of the performance of mainte-
7 nance, monitoring and operational activities required as part of the
8 remedial program for the site, (ii) inspection for the purpose of ascer-
9 taining current uses of the site, and (iii) taking samples in accordance
10 with paragraph a of this subdivision.
11 § 17-a. Section 27-1435 of the environmental conservation law is
12 REPEALED and a new section 27-1435 is added to read as follows:
13 § 27-1435. Reports to the department.
14 The department, in consultation with the department of taxation and
15 finance, shall, on or before December first, two thousand fifteen, and
16 on or before the first day of December of each year thereafter, report
17 to the governor and to the legislature on its assessment of the imple-
18 mentation of the state's brownfield programs, together with its
19 comments, suggestions, and recommendations regarding such programs,
20 available funding and resources, and the need for any additional steps
21 to ensure the future availability of funding.
22 § 18. The environmental conservation law is amended by adding a new
23 section 27-1435-a to read as follows:
24 § 27-1435-a. BCP-EZ Program.
25 The appropriation made 1. Notwithstanding the provisions of this title
26 or any other provision of law, the department shall promulgate regu-
27 lations which authorize the department to exempt an applicant from
28 procedural requirements of this title as the department may specify
29 which are otherwise applicable to implementation of an investigation
30 and/or remediation of contamination, provided that:
31 (a) at the time of the application, the department has not determined
32 that the brownfield site poses a significant threat pursuant to section
33 27-1411 of this title;
34 (b) the applicant has waived in writing any claim for tax credits
35 pursuant to section twenty-one of the tax law on a form prescribed by
36 the department; and
37 (c) the activity is conducted in a manner which satisfies all substan-
38 tive technical requirements applicable to like activity conducted pursu-
39 ant to this title, including meeting applicable soil cleanup objectives
40 established pursuant to subdivision six of section 27-1415 of this arti-
41 cle except as provided in subdivision three of this section.
42 2. Where an exemption has been granted pursuant to subdivision one of
43 this section, the approved work plan for a brownfield site shall include
44 the procedural requirements the department determines appropriate based
45 on site specific considerations and consideration of section 27-1415 of
46 this title.
47 3. For any site accepted into the BCP-EZ program pursuant to this
48 section which is pursuing a Track 4 remediation, if a contaminant is
49 identified in soil in excess of the remedial action objectives contained
50 in an applicable generic table developed pursuant to subdivision six of
51 section 27-1415 of this title, the applicant may use site-specific data
52 to demonstrate to the department that the concentration of the contam-
53 inant in the soils reflects background conditions and, in that case, a
54 contaminant-specific action objective for such contaminant equal to such
55 background concentration may be established provided that such objective
S. 4209 44
1 is protective of the public health and the environment and is determined
2 in a manner acceptable to the department.
3 4. Upon the department's acceptance of the certification by the appli-
4 cant that the remediation requirements of this title have been achieved
5 for the brownfield site and an environmental easement, if necessary, has
6 been created and filed pursuant to title thirty-six of article seventy-
7 one of this chapter, a site in the BCP-EZ shall be eligible to receive a
8 certificate of completion in accordance with section 27-1419 of this
9 title; provided, however, that such certificate of completion shall not
10 entitle the holder to any tax credits provided by section twenty-one of
11 the tax law.
12 § 19. The opening paragraph of subdivision 10 of section 71-3605 of
13 the environmental conservation law, as added by section 2 of part A of
14 chapter 1 of the laws of 2003, is amended to read as follows:
15 An environmental easement may be enforced in law or equity by its
16 grantor, by the state, or any affected local government as defined in
17 section 71-3603 of this title. Such easement is enforceable against the
18 owner of the burdened property, any lessees, and any person using the
19 land. Enforcement shall not be defeated because of any subsequent
20 adverse possession, laches, estoppel, reversion or waiver. No general
21 law of the state which operates to defeat the enforcement of any inter-
22 est in real property shall operate to defeat the enforcement of any
23 environmental easement unless such general law expressly states the
24 intent to defeat the enforcement of such easement or provides for the
25 exercise of the power of eminent domain. It is not a defense in any
26 action to enforce an environmental easement that:
27 § 20. Intentionally omitted.
28 § 21. Paragraph 3 of subdivision (a) of section 21 of the tax law, as
29 amended by chapter 390 of the laws of 2008, is amended to read as
30 follows:
31 (3) Tangible property credit component. The tangible property credit
32 component shall be equal to the applicable percentage of the cost or
33 other basis for federal income tax purposes of tangible personal proper-
34 ty and other tangible property, including buildings and structural
35 components of buildings, which constitute qualified tangible property;
36 provided[, however,] that in determining the cost or other basis of such
37 property, the taxpayer shall exclude the acquisition cost of any item of
38 property with respect to which a credit under this section was allowable
39 to another taxpayer. With respect to any qualified site for which the
40 taxpayer has submitted an application to participate in the brownfield
41 cleanup program on or after January first, two thousand sixteen and that
42 is eligible for the five percent affordable housing tangible property
43 credit component pursuant to clause (iii) of subparagraph (B) of para-
44 graph five of this subdivision, that portion of the tangible property
45 credit component will be determined by multiplying the total costs qual-
46 ified for the tangible property credit component by a fraction, the
47 numerator of which shall be the square footage of space of the afforda-
48 ble housing units dedicated to residential occupancy and the denominator
49 of which shall be the total square footage of the building.
50 The credit component amount so determined shall be allowed for the
51 taxable year in which such qualified tangible property is placed in
52 service provided however, that such property shall be placed in service
53 during the one hundred twenty month period that begins with the first
54 day of the first taxable year in which qualified tangible property is
55 placed in service on a qualified site with respect to which a certif-
56 icate of completion has been issued to the taxpayer [for up to ten taxa-
S. 4209 45
1 ble years after the date of the issuance of such certificate of
2 completion], or for the taxable year in which the certificate of
3 completion is issued if the qualified tangible property is placed in
4 service prior to the issuance of the certificate of completion. The
5 tangible property credit component shall be allowed with respect to
6 property leased to a second party only if such second party is either
7 (i) not a party responsible for the disposal of hazardous waste or the
8 discharge of petroleum at the site according to applicable principles of
9 statutory or common law liability, or (ii) a party responsible according
10 to applicable principles of statutory or common law liability if such
11 party's liability arises solely from operation of the site subsequent to
12 the disposal of hazardous waste or the discharge of petroleum, and is so
13 certified by the commissioner of environmental conservation at the
14 request of the taxpayer, pursuant to section 27-1419 of the environ-
15 mental conservation law. Notwithstanding any other provision of law to
16 the contrary, in the case of allowance of credit under this section to
17 such a lessor, the commissioner shall have the authority to reveal to
18 such lessor any information, with respect to the issue of qualified use
19 of property by the lessee, which is the basis for the denial in whole or
20 in part, or for the recapture, of the credit claimed by such lessor. For
21 purposes of the tangible property credit component allowed under this
22 section the taxpayer to whom the certificate of completion is issued, as
23 provided for under subdivision five of section 27-1419 of the environ-
24 mental conservation law, may transfer the benefits and burdens of the
25 certificate of completion, which run with the land and to the appli-
26 cant's successors or assigns upon transfer or sale of all or any portion
27 of an interest or estate in the qualified site. However, the taxpayer to
28 whom certificate's benefits and burdens are transferred shall not
29 include the cost of acquiring all or any portion of an interest or
30 estate in the site and the amounts included in the cost or other basis
31 for federal income tax purposes of qualified tangible property already
32 claimed by the previous taxpayer pursuant to this section.
33 § 22. Subparagraph (A) of paragraph 3-a of subdivision (a) of section
34 21 of the tax law, as added by chapter 390 of the laws of 2008, is
35 amended to read as follows:
36 (A) Notwithstanding any other provision of law to the contrary, the
37 tangible property credit component available for any qualified site
38 pursuant to paragraph three of this subdivision shall not exceed thir-
39 ty-five million dollars or three times the sum of the costs included in
40 the calculation of the site preparation credit component and the on-site
41 groundwater remediation credit component under paragraphs two and four,
42 respectively, of this subdivision, and the costs that would have been
43 included in the calculation of such components if not treated as an
44 expense and deducted pursuant to section one hundred ninety-eight of the
45 internal revenue code, whichever is less; provided, however, that: (1)
46 in the case of a qualified site to be used primarily for manufacturing
47 activities, the tangible property credit component available for any
48 qualified site pursuant to paragraph three of this subdivision shall not
49 exceed forty-five million dollars or six times the sum of the costs
50 included in the calculation of the site preparation credit component and
51 the on-site groundwater remediation credit component under paragraphs
52 two and four, respectively, of this subdivision, whichever is less; and
53 (2) the provisions of this paragraph shall not apply to any qualified
54 site for which the department of environmental conservation has issued a
55 notice to the taxpayer before June twenty-third, two thousand eight that
S. 4209 46
1 its request for participation has been accepted under subdivision six of
2 section 27-1407 of the environmental conservation law.
3 § 23. Subparagraph (D) of paragraph 3-a of subdivision (a) of section
4 21 of the tax law, as added by chapter 390 of the laws of 2008, is
5 amended to read as follows:
6 (D) [If] With respect to any qualified site for which the taxpayer has
7 submitted an application to participate in the brownfield cleanup
8 program, or where the taxpayer has either been issued or received a
9 certificate of completion from another taxpayer under section 27-1419 of
10 the environmental conservation law before January first, two thousand
11 sixteen, if the qualifying site is located in a brownfield opportunity
12 area and is developed in conformance with the goals and priorities
13 established for that applicable brownfield opportunity area as desig-
14 nated pursuant to section nine hundred seventy-r of the general munici-
15 pal law, the applicable percentage of the tangible property credit
16 component will be increased by two percent.
17 § 24. Intentionally omitted.
18 § 25. Paragraph 5 of subdivision (a) of section 21 of the tax law, as
19 amended by section 39 of part A of chapter 59 of the laws of 2004, is
20 amended to read as follows:
21 (5) Applicable percentage. (A) For purposes of computing the site
22 preparation and on-site groundwater remediation credit components pursu-
23 ant to paragraphs two[, three] and four of this subdivision, with
24 respect to such qualified sites for which the department of environ-
25 mental conservation has issued a notice to the taxpayer before June
26 twenty-third, two thousand eight that its request for participation has
27 been accepted under subdivision six of section 27-1407 of the environ-
28 mental conservation law, or where the taxpayer has either been issued or
29 received a certificate of completion from another taxpayer under section
30 27-1419 of the environmental conservation law before June twenty-third,
31 two thousand eight, and, for purposes of computing the tangible property
32 component pursuant to paragraph three of this subdivision with respect
33 to such qualified sites for which the taxpayer has submitted an applica-
34 tion to participate in the brownfield cleanup program before January
35 first, two thousand sixteen, or where the taxpayer has either been
36 issued or received a certificate of completion from another taxpayer
37 under section 27-1419 of the environmental conservation law before Janu-
38 ary first, two thousand sixteen, the applicable percentage shall be
39 twelve percent in the case of credits claimed under article nine, nine-A
40 or thirty-three of this chapter, and ten percent in the case of credits
41 claimed under article twenty-two of this chapter, except that where at
42 least fifty percent of the area of the qualified site relating to the
43 credit provided for in this section is located in an environmental zone
44 as defined in paragraph six of subdivision (b) of this section, the
45 applicable percentage shall be increased by an additional eight percent.
46 Provided, however, as afforded in section 27-1419 of the environmental
47 conservation law, if the certificate of completion indicates that the
48 qualified site has been remediated to Track 1 as that term is described
49 in subdivision four of section 27-1415 of the environmental conservation
50 law, the applicable percentage set forth in the first sentence of this
51 paragraph shall be increased by an additional two percent.
52 (B) With respect to such qualified site for which the taxpayer has
53 submitted an application to participate in the brownfield cleanup
54 program, the applicable percentage for the tangible property credit
55 component of the brownfield redevelopment tax credit pursuant to para-
56 graph three of subdivision (a) of this section shall be the sum of ten
S. 4209 47
1 percent and the following additional percentages, provided that the
2 total percentage of the tangible property credit component shall not
3 exceed twenty-four percent and is otherwise subject to the limitations
4 set forth in paragraphs three and three-a of subdivision (a) of this
5 section:
6 (i) five percent for a site within an environmental zone;
7 (ii) five percent for a site located within a designated brownfield
8 opportunity area;
9 (iii) five percent for a site developed as an affordable housing
10 project, as defined in section 27-1405 of the environmental conservation
11 law; and
12 (iv) five percent for a site to be used primarily for manufacturing
13 activities as such term is defined in subparagraph (B) of paragraph
14 three-a of this subdivision.
15 (C) The taxpayer shall submit, in the manner prescribed by the commis-
16 sioner, information sufficient to demonstrate that the site qualifies
17 for any credit components available under subparagraph (B) of this para-
18 graph.
19 § 26. Intentionally omitted.
20 § 27. Paragraphs 2 and 6 of subdivision (b) of section 21 of the tax
21 law, as amended by section 1 of part H of chapter 577 of the laws of
22 2004 and subparagraph (B) and the closing paragraph of paragraph 6 as
23 amended by section 1 of part G of chapter 62 of the laws of 2006, are
24 amended to read as follows:
25 (2) Site preparation costs. The term "site preparation costs" shall
26 mean all amounts properly chargeable to a capital account, (i) which are
27 paid [or] within six months of the date the expense is incurred in
28 connection with a site's qualification for a certificate of completion,
29 and (ii) all other site preparation costs paid or incurred in connection
30 with preparing a site for the erection of a building or a component of a
31 building, or otherwise to establish a site as usable for its industrial,
32 commercial (including the commercial development of residential hous-
33 ing), recreational or conservation purposes. Site preparation costs
34 shall include, but not be limited to, the costs of excavation, temporary
35 electric wiring, scaffolding, demolition costs, and the costs of fencing
36 and security facilities and may include costs attributable to activities
37 undertaken under the oversight of the department of labor or in accord-
38 ance with standards established by the department of health to remediate
39 regulated materials including asbestos, lead or polychlorinated biphe-
40 nyls in buildings which will remain on the site. Site preparation costs
41 shall not include the cost of acquiring the site and shall not include
42 amounts included in the cost or other basis for federal income tax
43 purposes of qualified tangible property, as described in paragraph three
44 of this subdivision.
45 (6) Environmental zones (EN-Zones). An "environmental zone" shall mean
46 an area designated as such by the commissioner of [economic development]
47 labor. Such areas [so designated are areas which are] shall be census
48 tracts [and block numbering areas which, as of the two thousand census,]
49 that satisfy either of the following criteria:
50 (A) areas that have both:
51 (i) a poverty rate of at least twenty percent [for the year to which
52 the data relate] based on the most recent five year American Community
53 Survey; and
54 (ii) an unemployment rate of at least one and one-quarter times the
55 statewide unemployment rate [for the year to which the data relate]
56 based on the most recent five year American Community Survey, or;
S. 4209 48
1 (B) areas that have a poverty rate of at least two times the poverty
2 rate for the county in which the areas are located [for the year to
3 which the data relate provided, however, that a qualified site shall
4 only be deemed to be located in an environmental zone under this subpar-
5 agraph (B) if such site was the subject of a brownfield site cleanup
6 agreement pursuant to section 27-1409 of the environmental conservation
7 law that was entered into prior to September first, two thousand ten]
8 based on the most recent five year American Community Survey.
9 Such designation shall be made and a list of all such environmental
10 zones shall be established by the commissioner of [economic development
11 no later than December thirty-first, two thousand four provided, howev-
12 er, that a qualified site shall only be deemed to be located in an envi-
13 ronmental zone under subparagraph (B) of this paragraph if such site was
14 the subject of a brownfield site cleanup agreement pursuant to section
15 27-1409 of the environmental conservation law that was entered into
16 prior to September first, two thousand ten] labor based on the two thou-
17 sand nine through two thousand thirteen American Community Survey esti-
18 mate. Upon request of the commissioner of environmental conservation,
19 the commissioner of labor shall update such designation based on the
20 most recent American Community Survey, or its successor.
21 The determination of whether a site is located in an environmental
22 zone shall be based on the date the department of environmental conser-
23 vation issued a notice to the taxpayer that its request for partic-
24 ipation in the brownfield cleanup program has been deemed complete
25 pursuant to subdivision three of section 27-1407 of the environmental
26 conservation law.
27 § 28. Section 171-r of the tax law is amended by adding a new subdivi-
28 sion (e) to read as follows:
29 (e) The commissioner, in consultation with the commissioner of envi-
30 ronmental conservation, shall publish by January thirty-first, two thou-
31 sand sixteen a supplemental brownfield credit report containing the
32 information required by this section about the credits claimed for the
33 years two thousand five, two thousand six, and two thousand seven.
34 § 29. Section 171-s of the tax law is REPEALED.
35 § 30. Paragraph b of subdivision 2 of section 970-r of the general
36 municipal law, as added by section 1 of part F of chapter 1 of the laws
37 of 2003, is amended to read as follows:
38 b. Activities eligible to receive such assistance shall include, but
39 are not limited to, the assembly and development of basic information
40 about:
41 (1) the borders of the [proposed] brownfield opportunity area;
42 (2) the number and size of known or suspected brownfield sites;
43 (3) current and anticipated uses of the properties in the [proposed]
44 brownfield opportunity area;
45 (4) current and anticipated future conditions of groundwater in the
46 [proposed] brownfield opportunity area;
47 (5) known data about the environmental conditions of the properties in
48 the [proposed] brownfield opportunity area;
49 (6) ownership of the properties in the [proposed] brownfield opportu-
50 nity area and whether the owners would like to participate directly in
51 the brownfield opportunity planning process; and
52 (7) preliminary descriptions of possible remediation strategies, reuse
53 opportunities, necessary infrastructure improvements and other public or
54 private measures needed to stimulate investment, promote revitalization,
55 and enhance community health and environmental conditions.
S. 4209 49
1 § 31. Subparagraphs 2 and 5 of paragraph c of subdivision 2 of section
2 970-r of the general municipal law, as added by section 1 of part F of
3 chapter 1 of the laws of 2003, are amended to read as follows:
4 (2) areas with concentrations of known or suspected brownfield sites;
5 (5) areas with known or suspected brownfield sites presenting strate-
6 gic opportunities to stimulate economic development, community revitali-
7 zation or the siting of public amenities.
8 § 32. Paragraph a of subdivision 3 of section 970-r of the general
9 municipal law, as amended by chapter 390 of the laws of 2008, is amended
10 to read as follows:
11 a. Within the limits of appropriations therefor, the secretary is
12 authorized to provide, on a competitive basis, financial assistance to
13 municipalities, to community based organizations, to community boards,
14 or to municipalities and community based organizations acting in cooper-
15 ation to prepare a nomination for designation of a brownfield opportu-
16 nity area. Such financial assistance shall not exceed ninety percent of
17 the costs of such nomination for any such area. A nomination study must
18 include sufficient information to designate the brownfield opportunity
19 area. The contents of the nomination study shall be developed based on
20 pre-nomination study information, which shall principally consist of an
21 area-wide study, documenting the historic brownfield uses in the area
22 proposed for designation. A nomination study is not intended to be
23 equivalent to or to serve as a master plan, comprehensive plan, or other
24 equivalent land use study, but rather is intended to be a basic plan for
25 designation of the brownfield opportunity area based on historic brown-
26 field use information and the community participation required in this
27 section. A master plan, comprehensive plan or equivalent land use study
28 may be separately developed under this program as an implementation
29 strategy for the final brownfield opportunity area plan. Since a nomi-
30 nation study is not equivalent to a final land use plan, the preparation
31 of the nomination study does not require review under the Environmental
32 Quality Review Act pursuant to article eight of the environmental
33 conservation law, and a brownfield opportunity area can be designated
34 based exclusively on a nomination study. In the event the municipality
35 and/or community based organization elect to develop implementation
36 strategies, including but not limited to a master plan, comprehensive
37 plan or urban renewal plan, review under the Environmental Quality
38 Review Act under article eight of the environmental conservation law is
39 required. No such nomination study shall supersede an existing master
40 plan or equivalent land and use study.
41 § 33. Subparagraphs 2 and 5 of paragraph e of subdivision 3 and subdi-
42 vision 4 of section 970-r of the general municipal law, subparagraphs 2
43 and 5 of paragraph e of subdivision 3 as added by section 1 of part F of
44 chapter 1 of the laws of 2003 and subdivision 4 as amended by chapter
45 390 of the laws of 2008, are amended to read as follows:
46 (2) areas with concentrations of known or suspected brownfield sites;
47 (5) areas with known or suspected brownfield sites presenting strate-
48 gic opportunities to stimulate economic development, community revitali-
49 zation or the siting of public amenities.
50 4. Designation of brownfield opportunity area. Upon completion of a
51 nomination for designation of a brownfield opportunity area, it shall be
52 forwarded by the applicant to the secretary, who shall determine whether
53 it is consistent with the provisions of this section. The secretary may
54 review and approve a nomination for designation of a brownfield opportu-
55 nity area at any time. If the secretary determines that the nomination
56 is consistent with the provisions of this section, the brownfield oppor-
S. 4209 50
1 tunity area shall be designated. If the secretary determines that the
2 nomination is not consistent with the provisions of this section, the
3 secretary shall make recommendations in writing to the applicant of the
4 manner and nature in which the nomination should be amended.
5 § 34. The subdivision heading, paragraph a and subparagraphs 2 and 5
6 of paragraph c of subdivision 6 of section 970-r of the general munici-
7 pal law, the subdivision heading and subparagraphs 2 and 5 of paragraph
8 c as added by section 1 of part F of chapter 1 of the laws of 2003, and
9 paragraph a as amended by chapter 386 of the laws of 2007, are amended
10 to read as follows:
11 State assistance for brownfield site assessments in brownfield oppor-
12 tunity areas. a. Within the limits of appropriations therefor, the
13 commissioner, in consultation with the secretary of state, is authorized
14 to provide, on a competitive basis, financial assistance to munici-
15 palities, to community based organizations, to community boards, or to
16 municipalities and community based organizations acting in cooperation
17 to conduct brownfield site assessments [in a brownfield opportunity area
18 designated pursuant to this section]. Such financial assistance shall
19 not exceed ninety percent of the costs of such brownfield site assess-
20 ment.
21 (2) areas with concentrations of known or suspected brownfield sites;
22 (5) areas with known or suspected brownfield sites presenting strate-
23 gic opportunities to stimulate economic development, community revitali-
24 zation or the siting of public amenities.
25 § 35. Intentionally omitted.
26 § 36. Section 31 of part H of chapter 1 of the laws of 2003, amending
27 the tax law relating to brownfield redevelopment tax credits, remediated
28 brownfield credit for real property taxes for qualified sites and envi-
29 ronmental remediation insurance credits, as amended by chapter 474 of
30 the laws of 2012, is amended to read as follows:
31 § 31. The tax credits allowed under section [21,] 22 or 23 of the tax
32 law and the corresponding provisions in articles 9, 9-A, 22, [32] and 33
33 of the tax law, as added by the provisions of sections one through twen-
34 ty-nine of this act, shall not be applicable [if] to any site for which
35 an application has been filed by the taxpayer for participation into the
36 brownfield cleanup program on and after December 31, 2025. The tax cred-
37 its allowed under section 21 of the tax law and the corresponding
38 provisions in articles 9, 9-A, 22, and 33 of the tax law, as added by
39 the provisions of sections one through twenty-nine of this act, shall
40 not be applicable to any site accepted into the brownfield cleanup
41 program after December 31, 2022, provided, however that any sites
42 accepted on or before December 31, 2022 must have received the [remedi-
43 ation] certificate of completion required to qualify for any of such
44 credits [is issued after] by December 31, [2015] 2025.
45 § 37. Notwithstanding any other provision of this act, any site for
46 which a brownfield cleanup agreement with the department of environ-
47 mental conservation was entered into (1) prior to June 23, 2008 and
48 which has not received a certificate of completion by December 31, 2019
49 or (2) on or after June 23, 2008 and prior to January 1, 2016 and which
50 has not received a certificate of completion by December 31, 2021, shall
51 be treated for the purposes of this act as a site for which an applica-
52 tion has been filed after July 1, 2014.
53 § 38. Paragraph c of subdivision 3 of section 27-0923 of the environ-
54 mental conservation law, as amended by section 5 of part I of chapter
55 577 of the laws of 2004, is amended to read as follows:
S. 4209 51
1 c. For the purpose of this section, generation of hazardous waste
2 shall not include retrieval or creation of hazardous waste which must be
3 disposed of under an order of or agreement with the department pursuant
4 to title thirteen or title fourteen of this article or under a contract
5 with the department pursuant to title five of article fifty-six of this
6 chapter or under an order of or agreement with the United States envi-
7 ronmental protection agency or an order of a court of competent juris-
8 diction, related to a facility addressed pursuant to the Comprehensive
9 Environmental Response, Compensation and Liability Act (42 U.S.C. 9601
10 et seq.) or under a written agreement with a municipality which is
11 subject to a memorandum of agreement with the department related to the
12 remediation of brownfield sites.
13 § 39. Subparagraphs (i) and (vi) of paragraph d of subdivision 1 of
14 section 72-0402 of the environmental conservation law, as amended by
15 chapter 99 of the laws of 2010, are amended to read as follows:
16 (i) under a contract with the department, or with the department's
17 written approval and in compliance with department regulations, or
18 pursuant to an order of the department, the United States environmental
19 protection agency or a court of competent jurisdiction, related to the
20 cleanup or remediation of a hazardous materials or hazardous waste
21 spill, discharge, or surficial cleanup, pursuant to this chapter; or
22 (vi) under a brownfield site cleanup agreement with the department
23 pursuant to section 27-1409 of this chapter or under an agreement with a
24 municipality which is subject to a memorandum of agreement with the
25 department related to the remediation of brownfield sites; or
26 § 40. Section 56-0501 of the environmental conservation law, as added
27 by chapter 413 of the laws of 1996, is amended to read as follows:
28 § 56-0501. Allocation of moneys.
29 1. Of the moneys received by the state from the sale of bonds pursuant
30 to the Clean Water/Clean Air Bond Act of 1996, two hundred million
31 dollars ($200,000,000) shall be available for disbursements for environ-
32 mental restoration projects.
33 2. Environmental restoration projects may be funded using the proceeds
34 of bonds issued pursuant to section twelve hundred eighty-five-q of the
35 public authorities law.
36 § 41. Subdivision 6 of section 56-0502 of the environmental conserva-
37 tion law, as amended by section 2 of part D of chapter 577 of the laws
38 of 2004, is amended to read as follows:
39 6. "State assistance", for purposes of this title, shall mean in the
40 case of a contract authorized by subdivision one of section 56-0503 of
41 this title, payments made to a municipality to reimburse the munici-
42 pality for the state share of the costs incurred by the municipality to
43 undertake an environmental restoration project or in the case of an
44 agreement authorized by subdivision three of section 56-0503 of this
45 title, costs incurred by the state to undertake an environmental resto-
46 ration project but not reimbursed by a municipality.
47 § 42. Paragraph (c) of subdivision 2 of section 56-0503 of the envi-
48 ronmental conservation law, as amended by section 4 of part D of chapter
49 1 of the laws of 2003, is amended and a new subdivision 3 is added to
50 read as follows:
51 (c) A provision that the municipality shall assist in identifying a
52 responsible party by searching local records, including property tax
53 rolls, or document reviews, and if, in accordance with the required
54 departmental approval of any settlement with a responsible party, any
55 responsible party payments become available to the municipality, before,
56 during or after the completion of an environmental restoration project,
S. 4209 52
1 which were not included when the state share was calculated pursuant to
2 this section, the state assistance share shall be recalculated, and the
3 municipality shall pay to the state, for deposit into the environmental
4 restoration project account of the hazardous waste remedial fund estab-
5 lished under section ninety-seven-b of the state finance law, the
6 difference between the original state assistance payment and the recal-
7 culated state share. Recalculation of the state share shall be done each
8 time a payment from a responsible party is received by the municipality;
9 3. The department may undertake an environmental restoration project
10 on behalf of a municipality upon request. If the department undertakes
11 the project on behalf of the municipality, the state shall enter into an
12 agreement with the municipality and the agreement shall require the
13 municipality to periodically provide its share to the state for costs
14 incurred during the progress of such project. The municipality's share
15 shall be the same as would be required under subdivision one of this
16 section. The agreement shall include all provisions specified in subdi-
17 vision two of this section as appropriate. For purposes of projects
18 subject to agreements under this subdivision, all references to
19 contracts in this title shall also apply to agreements under this subdi-
20 vision as appropriate.
21 § 43. Subdivision 4 of section 56-0505 of the environmental conserva-
22 tion law, as amended by section 5 of part D of chapter 1 of the laws of
23 2003, is amended to read as follows:
24 4. After completion of such project, the municipality may use the
25 property for public purposes or may dispose of it. If the municipality
26 shall dispose of such property by sale to a responsible party, such
27 party shall pay to such municipality, in addition to such other consid-
28 eration, an amount of money constituting the amount of state assistance
29 provided [to the municipality] under this title plus accrued interest
30 and transaction costs and the municipality shall deposit that money into
31 the environmental restoration project account of the hazardous waste
32 remedial fund established under section ninety-seven-b of the state
33 finance law.
34 § 44. Subdivisions 3 and 4 of section 56-0508 of the environmental
35 conservation law, as added by section 7 of part D of chapter 1 of the
36 laws of 2003, are amended to read as follows:
37 3. such temporary incidents of ownership by such taxing district shall
38 also qualify it as being the owner of such property [for the purposes of
39 obtaining] to be eligible for funding from the state of New York for
40 such environmental restoration investigation project under this article
41 or for such funding from any source pursuant to any other state, feder-
42 al, or local law, but such incidents of ownership shall not be suffi-
43 cient to qualify it as the owner of such property for the purposes of
44 holding it wholly or partially liable for any damages, past, present, or
45 future from any release of any hazardous material, substance, or contam-
46 inant into the air, ground, or water, unless such release was caused by
47 such taxing district.
48 4. within thirty days of the completion of the environmental restora-
49 tion investigation project and the receipt by the taxing jurisdiction of
50 the final report of such investigation, such taxing jurisdiction shall
51 file such report with the court on notice to the court and all other
52 parties of record, and the stay of the foreclosure shall be lifted
53 (unless lifted earlier by a prior court order), and all incidents of
54 temporary ownership of the taxing jurisdiction that was awarded such
55 taxing district, except any right [to receive funding] for the environ-
56 mental restoration investigation project to be funded, shall cease to
S. 4209 53
1 exist, and nothing in this subdivision shall preclude the taxing juris-
2 diction that conducted the environmental restoration investigation
3 project or the taxing jurisdiction that commenced the foreclosure
4 action, if it is a different taxing jurisdiction than the taxing juris-
5 diction which conducted the investigation, from withdrawing the parcel
6 from foreclosure pursuant to section eleven hundred thirty-eight of the
7 real property tax law.
8 § 45. Subdivision 2 and paragraph (f) of subdivision 3 of section 97-b
9 of the state finance law, as amended by section 4 of part I of chapter 1
10 of the laws of 2003, are amended to read as follows:
11 2. Such fund shall consist of all of the following:
12 (a) moneys appropriated for transfer to the fund's site investigation
13 and construction account; (b) all fines and other sums accumulated in
14 the fund prior to April first, nineteen hundred eighty-eight pursuant to
15 section 71-2725 of the environmental conservation law for deposit in the
16 fund's site investigation and construction account; (c) all moneys
17 collected or received by the department of taxation and finance pursuant
18 to section 27-0923 of the environmental conservation law for deposit in
19 the fund's industry fee transfer account; (d) all moneys paid into the
20 fund pursuant to section 72-0201 of the environmental conservation law
21 which shall be deposited in the fund's industry fee transfer account;
22 (e) all moneys paid into the fund pursuant to section one hundred eight-
23 y-six of the navigation law which shall be deposited in the fund's
24 industry fee transfer account; (f) [all moneys paid into the fund by
25 municipalities for repayment of landfill closure loans made pursuant to
26 title five of article fifty-two of the environmental conservation law
27 for deposit in the fund's site investigation and construction account;
28 (g)] all monies recovered under sections 56-0503, 56-0505 and 56-0507 of
29 the environmental conservation law into the fund's environmental resto-
30 ration project account; [(h) all] (g) fees paid into the fund pursuant
31 to section [72-0403] 72-0402 of the environmental conservation law which
32 shall be deposited in the fund's industry fee transfer account; [(i)]
33 (h) payments received for all state costs incurred in negotiating and
34 overseeing the implementation of brownfield site cleanup agreements
35 pursuant to title fourteen of article twenty-seven of the environmental
36 conservation law shall be deposited in the hazardous waste remediation
37 oversight and assistance account; and [(j)] (i) other moneys credited or
38 transferred thereto from any other fund or source for deposit in the
39 fund's site investigation and construction account.
40 (f) to undertake such remedial measures as the department of environ-
41 mental conservation may determine necessary due to environmental condi-
42 tions related to the property subject to an agreement [to provide state
43 assistance] or contract under title five of article fifty-six of the
44 environmental conservation law [that were unknown to such department at
45 the time of its approval of such agreement which indicates that condi-
46 tions on such property are not sufficiently protective of human health
47 for its reasonably anticipated uses or due to information received, in
48 whole or in part, after such department's approval of such agreement's
49 final engineering report and certification], which indicates that such
50 agreement's remedial activities are not sufficiently protective of human
51 health for such property's reasonably anticipated uses; and, [respecting
52 the monies in the environmental restoration project account in excess of
53 ten million dollars,] shall provide state assistance under title five of
54 article fifty-six of the environmental conservation law;
S. 4209 54
1 § 46. Subdivisions 1 and 3 of section 27-1421 of the environmental
2 conservation law, as amended by section 10 of part A of chapter 577 of
3 the laws of 2004, are amended to read as follows:
4 1. Notwithstanding any other provision of law and except as provided
5 in subdivision two of this section, after the department has issued a
6 certificate of completion for a brownfield site, the applicant shall not
7 be liable to the state upon any statutory or common law cause of action,
8 arising out of the presence of any contamination in, on or emanating
9 from the brownfield site that was the subject of such certificate at any
10 time before the effective date of a brownfield site cleanup agreement
11 entered into pursuant to this title, except that a participant shall not
12 receive a release for natural resource damages that may be available
13 under law unless the department is satisfied that the natural resource
14 damaged or destroyed by the contamination at the site was adequately
15 repaired, restored and/or replaced as part of the brownfield site clean-
16 up implemented by the participant.
17 3. The liability limitation provided pursuant to this section shall
18 run with the land, extending to the applicant's successors or assigns
19 through acquisition of title to the brownfield site, to lenders who
20 acquire indicia or ownership primarily to protect the lenders' security
21 interest in the brownfield site after the effective date of the brown-
22 field site cleanup agreement for the site, and to a person who develops
23 or otherwise occupies the brownfield site; provided that such persons
24 act with due care and in good faith to adhere to the requirements of the
25 brownfield site cleanup agreement and certificate of completion. Howev-
26 er, such liability limitation does not extend, and cannot be trans-
27 ferred, to a person who is responsible for the disposal or the discharge
28 of contaminants on such site according to applicable principles of stat-
29 utory or common law liability as of the effective date of the certif-
30 ication of completion issued pursuant to this title, unless that person
31 was party to the brownfield site cleanup agreement for the brownfield
32 site pursuant to this article.
33 § 47. Severability. If any clause, sentence, paragraph, subdivision,
34 section or part of this act shall be adjudged by any court of competent
35 jurisdiction to be invalid, such judgment shall not affect, impair or
36 invalidate the remainder thereof, but shall be confined in its operation
37 to the clause, sentence, paragraph, subdivision, section or part thereof
38 directly involved in the controversy in which such judgment shall have
39 been rendered. It is hereby declared to be the intent of the legislature
40 that this act would have been enacted even if such invalid provisions
41 had not been included herein.
42 § 48. This act shall take effect immediately and shall apply to a
43 qualified site for which the commissioner of environmental conservation
44 has issued a notice to the taxpayer or other applicant after January 1,
45 2016 that its request for participation has been accepted under subdivi-
46 sion 6 of section 27-1407 of the environmental conservation law;
47 provided, however, that the department of labor shall update the envi-
48 ronmental zones as required by section twenty-seven of this act within
49 ninety days of this act becoming law.
50 PART S
51 Section 1. Paragraph (r) of section 104-A of the business corporation
52 law, as amended by chapter 172 of the laws of 2000, is amended to read
53 as follows:
S. 4209 55
1 (r) For filing a statement or amendment pursuant to section four
2 hundred eight of this chapter with the department of state, nine
3 dollars.
4 § 2. Paragraphs (b) and (c) of section 306-A of the business corpo-
5 ration law, as added by chapter 469 of the laws of 1997, are amended to
6 read as follows:
7 (b) Upon the failure of the designating corporation to file a certif-
8 icate of amendment or change providing for the designation by the corpo-
9 ration of the new address after the filing of a certificate of resigna-
10 tion for receipt of process with the secretary of state, its authority
11 to do business in this state shall be suspended unless the corporation
12 has previously filed a statement [of addresses and directors] under
13 section four hundred eight of this chapter, in which case the address of
14 the principal executive office stated in the last filed statement [of
15 addresses and directors], shall constitute the new address for process
16 of the corporation provided such address is different from the previous
17 address for process, and the corporation shall not be deemed suspended.
18 (c) The filing by the department of state of a certificate of amend-
19 ment or change or statement under section four hundred eight of this
20 chapter providing for a new address by a designating corporation shall
21 annul the suspension and its authority to do business in this state
22 shall be restored and continue as if no suspension had occurred.
23 § 3. Section 408 of the business corporation law, as added by chapter
24 55 of the laws of 1992, the section heading as amended by chapter 375 of
25 the laws of 1998, subparagraph (a) of paragraph 1 and paragraph 2 as
26 amended by chapter 172 of the laws of 1999, subparagraph (b) of para-
27 graph 3 as amended by chapter 170 of the laws of 1994, paragraph 6 as
28 added by chapter 469 of the laws of 1997, and paragraph 7 as added by
29 chapter 172 of the laws of 2000, is amended to read as follows:
30 § 408. [Biennial statement] Statement; filing.
31 1. [Each] Except as provided in paragraph eight of this section, each
32 domestic corporation, and each foreign corporation authorized to do
33 business in this state, shall, during the applicable filing period as
34 determined by subdivision three of this section, file a statement
35 setting forth:
36 (a) The name and business address of its chief executive officer.
37 (b) The street address of its principal executive office.
38 (c) The post office address within or without this state to which the
39 secretary of state shall mail a copy of any process against it served
40 upon him or her. Such address shall supersede any previous address on
41 file with the department of state for this purpose.
42 2. [Such] Except as provided in paragraph eight of this section, such
43 statement shall be made on forms prescribed by the secretary of state,
44 and the information therein contained shall be given as of the date of
45 the execution of the statement. Such statement shall only request
46 reporting of information required under paragraph one of this section.
47 It shall be signed and delivered to the department of state.
48 3. [For] Except as provided in paragraph eight of this section, for
49 the purpose of this section the applicable filing period for a corpo-
50 ration shall be the calendar month during which its original certificate
51 of incorporation or application for authority were filed or the effec-
52 tive date thereof if stated. The applicable filing period shall only
53 occur: (a) annually, during the period starting on April 1, 1992 and
54 ending on March 31, 1994; and (b) biennially, during a period starting
55 on April 1 and ending on March 31 thereafter. Those corporations that
56 filed between April 1, 1992 and June 30, 1994 shall not be required to
S. 4209 56
1 file such statements again until such time as they would have filed, had
2 this subdivision not been amended.
3 4. The provisions of [subdivision eleven of section ninety-six of the
4 executive law and] paragraph (g) of section one hundred four of this
5 chapter shall not be applicable to filings pursuant to this section.
6 5. The provisions of this section and section 409 of this article
7 shall not apply to a farm corporation. For the purposes of this subdivi-
8 sion, the term "farm corporation" shall mean any domestic corporation or
9 foreign corporation authorized to do business in this state under this
10 chapter engaged in the production of crops, livestock and livestock
11 products on land used in agricultural production, as defined in section
12 301 of the agriculture and markets law. However, this exception for farm
13 corporations shall not be applicable if an agreement is made pursuant to
14 paragraph eight of this section so that these statements will be filed
15 with the department of taxation and finance.
16 6. No such statement shall be accepted for filing when a certificate
17 of resignation for receipt of process has been filed under section three
18 hundred six-A of this chapter unless the corporation has stated a
19 different address for process which does not include the name of the
20 party previously designated in the address for process in such certif-
21 icate.
22 7. A domestic corporation or foreign corporation may amend its state-
23 ment to change the information required by [subdivisions] subparagraphs
24 (a) and (b) of paragraph one of this section. Such amendment shall be
25 made on forms prescribed by the secretary of state. It shall be signed
26 and delivered to the department of state.
27 8. (a) The commissioner of taxation and finance and the secretary of
28 state may agree to allow corporations to provide the statement specified
29 in paragraph one of this section on tax reports filed with the depart-
30 ment of taxation and finance in lieu of biennial reports. This agreement
31 may apply to tax reports due for tax years starting on or after January
32 first, two thousand sixteen.
33 (b) If the agreement described in subparagraph (a) of this paragraph
34 is made, each corporation required to file the statement specified in
35 paragraph one of this section that is also subject to tax under article
36 nine or nine-A of the tax law shall include such statement annually on
37 its tax report filed with the department of taxation and finance in lieu
38 of filing a statement under this section with the department of state
39 and in a manner prescribed by the commissioner of taxation and finance.
40 However, each corporation required to file a statement under this
41 section must continue to file the biennial statement required by this
42 section with the department of state until the corporation in fact has
43 filed a tax report with the department of taxation and finance that
44 includes all required information. After that time, the corporation
45 shall continue to deliver annually the statement specified in paragraph
46 one of this section on its tax report in lieu of the biennial statement
47 required by this section.
48 (c) If the agreement described in subparagraph (a) of this paragraph
49 is made, the department of taxation and finance shall deliver to the
50 department of state for filing the statement specified in paragraph one
51 of this section for each corporation that files a tax report containing
52 such statement. The department of taxation and finance must, to the
53 extent feasible, also include the current name of the corporation,
54 department of state identification number for such corporation, the
55 name, signature and capacity of the signer of the statement, name and
S. 4209 57
1 street address of the filer of the statement, and the email address, if
2 any, of the filer of the statement.
3 § 4. Section 409 of the business corporation law is amended by adding
4 a new paragraph 4 to read as follows:
5 4. This section shall not apply to a failure to file a statement for
6 any situation for which a penalty under subdivision (v) of section one
7 thousand eighty-five of the tax law is applicable.
8 § 5. Subdivision (e) of section 301 of the limited liability company
9 law, as amended by chapter 643 of the laws of 1995, is amended to read
10 as follows:
11 (e) [Every] (1) Except as otherwise provided in this subdivision,
12 every limited liability company to which this chapter applies, shall
13 biennially in the calendar month during which its articles of organiza-
14 tion or application for authority were filed, or effective date thereof
15 if stated, file on forms prescribed by the secretary of state, a state-
16 ment setting forth the post office address within or without this state
17 to which the secretary of state shall mail a copy of any process
18 accepted against it served upon him or her. Such address shall supersede
19 any previous address on file with the department of state for this
20 purpose.
21 (2) The commissioner of taxation and finance and the secretary of
22 state may agree to allow limited liability companies to include the
23 statement specified in paragraph one of this subdivision on tax reports
24 filed with the department of taxation and finance in lieu of biennial
25 reports and in a manner prescribed by the commissioner of taxation and
26 finance. If this agreement is made, starting with taxable years begin-
27 ning on or after January first, two thousand sixteen, each limited
28 liability company required to file the statement specified in paragraph
29 one of this subdivision 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 section with the department of state.
34 However, each limited liability company required to file a statement
35 under this section must continue to file the biennial statement required
36 by this section with the department of state until the limited liability
37 company in fact has filed a filing fee payment form with the department
38 of taxation and finance that includes all required information. After
39 that time, the limited liability company shall continue to provide annu-
40 ally the statement specified in paragraph one of this subdivision on its
41 filing fee payment form in lieu of the biennial statement required by
42 this subdivision.
43 (3) If the agreement described in paragraph two of this subdivision is
44 made, the department of taxation and finance shall deliver to the
45 department of state the statement specified in paragraph one of this
46 subdivision contained on filing fee payment forms. The department of
47 taxation and finance must, to the extent feasible, also include the
48 current name of the limited liability company, department of state iden-
49 tification number for such limited liability company, the name, signa-
50 ture and capacity of the signer of the statement, name and street
51 address of the filer of the statement, and the email address, if any, of
52 the filer of the statement.
53 § 6. Subdivision (c) of section 301-A of the limited liability company
54 law, as added by chapter 448 of the laws of 1998, is amended to read as
55 follows:
S. 4209 58
1 (c) The filing by the department of state of a certificate of amend-
2 ment or certificate of change or the filing of a statement under section
3 three hundred one of this article providing for a new address by a
4 designating limited liability company shall annul the suspension and its
5 authority to do business in this state shall be restored and continued
6 as if no suspension had occurred.
7 § 7. Subdivision (c) of section 1101 of the limited liability company
8 law is amended to read as follows:
9 (c) For the statement of address of the post office address to which
10 the secretary of state shall mail a copy of any process against the
11 limited liability company served upon him or her pursuant to section
12 three hundred one of this chapter, nine dollars. This fee shall not
13 apply if this statement is filed directly with the department of taxa-
14 tion and finance.
15 § 8. Subdivision (g) of section 121-1500 of the partnership law, as
16 amended by chapter 643 of the laws of 1995, is amended to read as
17 follows:
18 (g) Each registered limited liability partnership shall, within sixty
19 days prior to the fifth anniversary of the effective date of its regis-
20 tration and every five years thereafter, furnish a statement to the
21 department of state setting forth: (i) the name of the registered limit-
22 ed liability partnership, (ii) the address of the principal office of
23 the registered limited liability partnership, (iii) the post office
24 address within or without this state to which the secretary of state
25 shall mail a copy of any process accepted against it served upon him or
26 her, which address shall supersede any previous address on file with the
27 department of state for this purpose, and (iv) a statement that it is
28 eligible to register as a registered limited liability partnership
29 pursuant to subdivision (a) of this section. The statement shall be
30 executed by one or more partners of the registered limited liability
31 partnership. The statement shall be accompanied by a fee of twenty
32 dollars if submitted directly to the department of state. The commis-
33 sioner of taxation and finance and the secretary of state may agree to
34 allow registered limited liability partnerships to provide the statement
35 specified in this subdivision on tax reports filed with the department
36 of taxation and finance in lieu of statements filed directly with the
37 secretary of state and in a manner prescribed by the commissioner of
38 taxation and finance. If this agreement is made, starting with taxable
39 years beginning on or after January first, two thousand sixteen, each
40 limited liability partnership required to file the statement specified
41 in this subdivision that is subject to the filing fee imposed by para-
42 graph three of subsection (c) of section six hundred fifty-eight of the
43 tax law shall provide such statement annually on its filing fee payment
44 form filed with the department of taxation and finance in lieu of filing
45 a statement under this subdivision with the department of state. Howev-
46 er, each registered limited liability partnership required to file a
47 statement under this section must continue to file a statement with the
48 department of state as required by this section until the registered
49 limited liability partnership in fact has filed a filing fee payment
50 form with the department of taxation and finance that includes all
51 required information. After that time, the limited liability partnership
52 shall continue to provide annually the statement specified in this
53 subdivision on its filing fee payment form in lieu of the statement
54 required by this subdivision. The commissioner of taxation and finance
55 shall deliver the completed statement specified in this subdivision to
56 the department of state for filing. The department of taxation and
S. 4209 59
1 finance must, to the extent feasible, also include in such delivery the
2 current name of the registered limited liability partnership, department
3 of state identification number for such registered limited liability
4 partnership, the name, signature and capacity of the signer of the
5 statement, name and street address of the filer of the statement, and
6 the email address, if any, of the filer of the statement. If a regis-
7 tered limited liability partnership shall not timely file the statement
8 required by this subdivision, the department of state may, upon sixty
9 days' notice mailed to the address of such registered limited liability
10 partnership as shown in the last registration or statement or certif-
11 icate of amendment filed by such registered limited liability partner-
12 ship, make a proclamation declaring the registration of such registered
13 limited liability partnership to be revoked pursuant to this subdivi-
14 sion. The department of state shall file the original proclamation in
15 its office and shall publish a copy thereof in the state register no
16 later than three months following the date of such proclamation. Upon
17 the publication of such proclamation in the manner aforesaid, the regis-
18 tration of each registered limited liability partnership named in such
19 proclamation shall be deemed revoked without further legal proceedings.
20 Any registered limited liability partnership whose registration was so
21 revoked may file in the department of state a [certificate of consent
22 certifying that either a] statement required by this subdivision [has
23 been filed or accompanies the certificate of consent and all fees
24 imposed under this chapter on the registered limited liability partner-
25 ship have been paid]. The filing of such [certificate of consent] state-
26 ment shall have the effect of annulling all of the proceedings thereto-
27 fore taken for the revocation of the registration of such registered
28 limited liability partnership under this subdivision and (1) the regis-
29 tered limited liability partnership shall thereupon have such powers,
30 rights, duties and obligations as it had on the date of the publication
31 of the proclamation, with the same force and effect as if such proclama-
32 tion had not been made or published and (2) such publication shall not
33 affect the applicability of the provisions of subdivision (b) of section
34 twenty-six of this chapter to any debt, obligation or liability
35 incurred, created or assumed from the date of publication of the procla-
36 mation through the date of the filing of the [certificate of consent.
37 The filing of a certificate of consent shall be accompanied by a fee of
38 fifty dollars and if accompanied by a statement, the fee required by
39 this subdivision] statement with the department of state. If, after the
40 publication of such proclamation, it shall be determined by the depart-
41 ment of state that the name of any registered limited liability partner-
42 ship was erroneously included in such proclamation, the department of
43 state shall make appropriate entry on its records, which entry shall
44 have the effect of annulling all of the proceedings theretofore taken
45 for the revocation of the registration of such registered limited
46 liability partnership under this subdivision and (A) such registered
47 limited liability partnership shall have such powers, rights, duties and
48 obligations as it had on the date of the publication of the proclama-
49 tion, with the same force and effect as if such proclamation had not
50 been made or published and (B) such publication shall not affect the
51 applicability of the provisions of subdivision (b) of section twenty-six
52 of this chapter to any debt, obligation or liability incurred, created
53 or assumed from the date of publication of the proclamation through the
54 date of the making of the entry on the records of the department of
55 state. Whenever a registered limited liability partnership whose regis-
56 tration was revoked shall have filed a [certificate of consent] state-
S. 4209 60
1 ment pursuant to this subdivision or if the name of a registered limited
2 liability partnership was erroneously included in a proclamation and
3 such proclamation was annulled, the department of state shall publish a
4 notice thereof in the state register.
5 § 9. Paragraph (I) of subdivision (f) of section 121-1502 of the part-
6 nership law, as amended by chapter 643 of the laws of 1995 and as desig-
7 nated by chapter 767 of the laws of 2005, is amended to read as follows:
8 (I) Each New York registered foreign limited liability partnership
9 shall, within sixty days prior to the fifth anniversary of the effective
10 date of its notice and every five years thereafter, furnish a statement
11 to the department of state setting forth:
12 (i) the name under which the New York registered foreign limited
13 liability partnership is carrying on or conducting or transacting busi-
14 ness or activities in this state, (ii) the address of the principal
15 office of the New York registered foreign limited liability partnership,
16 (iii) the post office address within or without this state to which the
17 secretary of state shall mail a copy of any process accepted against it
18 served upon him or her, which address shall supersede any previous
19 address on file with the department of state for this purpose, and (iv)
20 a statement that it is a foreign limited liability partnership. The
21 statement shall be executed by one or more partners of the New York
22 registered foreign limited liability partnership. The statement shall be
23 accompanied by a fee of fifty dollars if submitted directly to the
24 department of state. The commissioner of taxation and finance and the
25 secretary of state may agree to allow New York registered foreign limit-
26 ed liability partnerships to provide the statement specified in this
27 paragraph on tax reports filed with the department of taxation and
28 finance in lieu of statements filed directly with the secretary of state
29 and in a manner prescribed by the commissioner of taxation and finance.
30 If this agreement is made, starting with taxable years beginning on or
31 after January first, two thousand sixteen, each New York registered
32 foreign limited liability partnership required to file the statement
33 specified in this paragraph that is subject to the filing fee imposed by
34 paragraph three of subsection (c) of section six hundred fifty-eight of
35 the tax law shall provide such statement annually on its filing fee
36 payment form filed with the department of taxation and finance in lieu
37 of filing a statement under this paragraph directly with the department
38 of state. However, each New York registered foreign limited liability
39 partnership required to file a statement under this section must contin-
40 ue to file a statement with the department of state as required by this
41 section until the New York registered foreign limited liability partner-
42 ship in fact has filed a filing fee payment form with the department of
43 taxation and finance that includes all required information. After that
44 time, the New York registered foreign limited liability partnership
45 shall continue to provide annually the statement specified in this para-
46 graph on its filing fee payment form in lieu of filing the statement
47 required by this paragraph directly with the department of state. The
48 commissioner of taxation and finance shall deliver the completed state-
49 ment specified in this paragraph to the department of state for filing.
50 The department of taxation and finance must, to the extent feasible,
51 also include in such delivery the current name of the New York regis-
52 tered foreign limited liability partnership, department of state iden-
53 tification number for such New York registered foreign limited liability
54 partnership, the name, signature and capacity of the signer of the
55 statement, name and street address of the filer of the statement, and
56 the email address, if any, of the filer of the statement. If a New York
S. 4209 61
1 registered foreign limited liability partnership shall not timely file
2 the statement required by this subdivision, the department of state may,
3 upon sixty days' notice mailed to the address of such New York regis-
4 tered foreign limited liability partnership as shown in the last notice
5 or statement or certificate of amendment filed by such New York regis-
6 tered foreign limited liability partnership, make a proclamation declar-
7 ing the status of such New York registered foreign limited liability
8 partnership to be revoked pursuant to this subdivision. The department
9 of state shall file the original proclamation in its office and shall
10 publish a copy thereof in the state register no later than three months
11 following the date of such proclamation. Upon the publication of such
12 proclamation in the manner aforesaid, the status of each New York regis-
13 tered foreign limited liability partnership named in such proclamation
14 shall be deemed revoked without further legal proceedings. Any New York
15 registered foreign limited liability partnership whose status was so
16 revoked may file in the department of state a [certificate of consent
17 certifying that either a] statement required by this subdivision [has
18 been filed or accompanies the certificate of consent and all fees
19 imposed under this chapter on the New York registered foreign limited
20 liability partnership have been paid]. The filing of such [certificate
21 of consent] statement shall have the effect of annulling all of the
22 proceedings theretofore taken for the revocation of the status of such
23 New York registered foreign limited liability partnership under this
24 subdivision and (1) the New York registered foreign limited liability
25 partnership shall thereupon have such powers, rights, duties and obli-
26 gations as it had on the date of the publication of the proclamation,
27 with the same force and effect as if such proclamation had not been made
28 or published and (2) such publication shall not affect the applicability
29 of the laws of the jurisdiction governing the agreement under which such
30 New York registered foreign limited liability partnership is operating
31 (including laws governing the liability of partners) to any debt, obli-
32 gation or liability incurred, created or assumed from the date of publi-
33 cation of the proclamation through the date of the filing of the
34 [certificate of consent. The filing of a certificate of consent shall be
35 accompanied by a fee of fifty dollars and if accompanied by a statement,
36 the fee required by this subdivision] statement with the department of
37 state. If, after the publication of such proclamation, it shall be
38 determined by the department of state that the name of any New York
39 registered foreign limited liability partnership was erroneously
40 included in such proclamation, the department of state shall make appro-
41 priate entry on its records, which entry shall have the effect of
42 annulling all of the proceedings theretofore taken for the revocation of
43 the status of such New York registered foreign limited liability part-
44 nership under this subdivision and (1) such New York registered foreign
45 limited liability partnership shall have such powers, rights, duties and
46 obligations as it had on the date of the publication of the proclama-
47 tion, with the same force and effect as if such proclamation had not
48 been made or published and (2) such publication shall not affect the
49 applicability of the laws of the jurisdiction governing the agreement
50 under which such New York registered foreign limited liability partner-
51 ship is operating (including laws governing the liability of partners)
52 to any debt, obligation or liability incurred, created or assumed from
53 the date of publication of the proclamation through the date of the
54 making of the entry on the records of the department of state. Whenever
55 a New York registered foreign limited liability partnership whose status
56 was revoked shall have filed a [certificate of consent] statement pursu-
S. 4209 62
1 ant to this subdivision or if the name of a New York registered foreign
2 limited liability partnership was erroneously included in a proclamation
3 and such proclamation was annulled, the department of state shall
4 publish a notice thereof in the state register.
5 § 10. Subdivision (d) of section 121-1506 of the partnership law, as
6 amended by chapter 172 of the laws of 1999, is amended to read as
7 follows:
8 (d) The filing by the department of state of a certificate of amend-
9 ment or the filing of a statement providing for a new address by a
10 designating limited liability partnership shall annul the suspension and
11 its authority to do business in this state shall be restored and contin-
12 ued as if no suspension had occurred.
13 § 11. Section 192 of the tax law is amended by adding a new subdivi-
14 sion 5 to read as follows:
15 5. Notwithstanding the provisions of section two hundred two of this
16 article, the commissioner shall provide the statements and other
17 required information requested on tax reports under section four hundred
18 eight of the business corporation law to the secretary of state for
19 filing. Such provision may also include a copy or image of that portion
20 of the report solely pertinent to such information to the extent feasi-
21 ble. The commissioner may also provide information on noncompliance.
22 § 12. Section 211 of the tax law is amended by adding a new subdivi-
23 sion 15 to read as follows:
24 15. Notwithstanding the provisions of subdivision eight of this
25 section, the commissioner shall provide the statements and other
26 required information requested on tax reports under section four hundred
27 eight of the business corporation law to the secretary of state for
28 filing. Such provision may also include a copy or image of that portion
29 of the report solely pertinent to such information to the extent feasi-
30 ble. The commissioner any also provide information on noncompliance.
31 § 13. Paragraph 3 of subsection (c) of section 658 of the tax law is
32 amended by adding a new subparagraph (E) to read as follows:
33 (E) Notwithstanding the provisions of subsection (e) of section six
34 hundred ninety-seven of this article, the commissioner shall provide the
35 statements and other required information included on the filing fee
36 payment form under section three hundred one of the limited liability
37 company law, subdivision (f) of section 121-1502 of the partnership law,
38 and subdivision (d) of section 121-1506 of the partnership law to the
39 secretary of state for filing. Such provision may also include a copy
40 or image of that portion of the report solely pertinent to such informa-
41 tion to the extent feasible. The commissioner may also provide informa-
42 tion on noncompliance.
43 § 14. Section 1085 of the tax law is amended by adding a new
44 subsection (v) to read as follows:
45 (v) Failure to supply all the information required or to provide
46 correct information in secretary of state statements. Unless it is shown
47 that such failure to provide the statement and information required by
48 section four hundred eight of the business corporation law is due to
49 reasonable cause and not to willful neglect, there shall, upon notice
50 and demand by the commissioner and in the same manner as tax, be paid by
51 the taxpayer failing to supply complete and correct information, a
52 penalty of two hundred fifty dollars per taxpayer required to provide
53 such information.
54 § 15. Section 685 of the tax law is amended by adding a new subsection
55 (dd) to read as follows:
S. 4209 63
1 (dd) Failure to supply all the information required or to provide
2 correct information in secretary of state statements. Unless it is shown
3 that such failure to provide the statement and information required by
4 subdivision (e) of section three hundred one of the limited liability
5 company law, subdivision (f) of section 121-1502 of the partnership law,
6 or subdivision (d) of section 121-1506 of the partnership law is due to
7 reasonable cause and not to willful neglect, there shall, upon notice
8 and demand by the commissioner and in the same manner as tax, be paid by
9 the taxpayer failing to supply complete and correct information, a
10 penalty of two hundred and fifty dollars per limited liability company
11 required to provide such information on its filing fee payment form.
12 § 16. This act shall take effect immediately.
13 PART T
14 Section 1. Intentionally omitted.
15 § 2. Paragraph (d) of subdivision 5 of section 208 of the tax law, as
16 added by section 4 of part A of chapter 59 of the laws of 2014, is
17 amended to read as follows:
18 (d) If a taxpayer acquires stock during the second half of its taxable
19 year and owns that stock on the last day of the taxable year, it will be
20 presumed, solely for purposes of determining whether that stock should
21 be classified as investment capital after it is acquired, that the
22 taxpayer held that stock for more than six consecutive months during the
23 taxable year. If the taxpayer does not own the stock at the time it
24 files its original report for the taxable year in which it acquires the
25 stock then the presumption in the preceding sentence shall not apply to
26 the taxpayer and the actual period of time during which the taxpayer
27 owned the stock shall be used to determine whether the stock should be
28 classified as investment capital after it is acquired. However, if the
29 taxpayer does not in fact hold that stock as investment capital for more
30 than six consecutive months, the taxpayer must increase its total busi-
31 ness capital in the immediately succeeding taxable year by the amount
32 included in investment capital for that stock, net of any liabilities
33 attributable to that stock computed as provided in paragraph (b) of this
34 subdivision and must increase its business income in the immediately
35 succeeding taxable year by the amount of income and net gains (but not
36 less than zero) from that stock included in investment income, less any
37 interest deductions directly or indirectly attributable to that stock,
38 as provided in subdivision six of this section.
39 § 3. Paragraph (e) of subdivision 5 of section 208 of the tax law, as
40 added by section 4 of part A of chapter 59 of the laws of 2014, is
41 amended to read as follows:
42 (e) When income or gain from a debt obligation or other security
43 cannot be apportioned to the state using the [business allocation
44 percentage] apportionment factor determined under section two hundred
45 ten-A of this article as a result of United States constitutional prin-
46 ciples, the debt obligation or other security will be included in
47 investment capital.
48 § 4. Paragraph (f) of subdivision 5 of section 208 of the tax law is
49 REPEALED.
50 § 5. Paragraph (a) of subdivision 6 of section 208 of the tax law, as
51 amended by section 4 of part A of chapter 59 of the laws of 2014, is
52 amended to read as follows:
53 (a) The term "investment income" means income, including capital gains
54 in excess of capital losses, from investment capital, to the extent
S. 4209 64
1 included in computing entire net income, less, (i) in the discretion of
2 the commissioner, any interest deductions allowable in computing entire
3 net income which are directly or indirectly attributable to investment
4 capital or investment income, [and (ii) the taxpayer's loss, deduction
5 and/or expense attributable to any transaction, or series of trans-
6 actions, entered into to manage the risk of price changes or currency
7 fluctuations with respect to any item of investment capital that is held
8 or to be held by the taxpayer, or the aggregate investment capital that
9 is held or to be held by the taxpayer, if all of the risk, or all but a
10 de minimis amount of the risk, is with respect to investment capital,]
11 provided, however, that in no case shall investment income exceed entire
12 net income. (ii) If the amount of interest deductions subtracted under
13 [subparagraph (i) or subparagraph (ii) of this paragraph or under both
14 of those subparagraphs] subparagraph (i) of this paragraph exceeds
15 investment income, the excess of such amount over investment income must
16 be added back to entire net income.
17 § 6. Subclause (ii) of clause (B) of subparagraph 1 of paragraph (r)
18 of subdivision 9 of section 208 of the tax law, as added by section 4 of
19 part A of chapter 59 of the laws of 2014, is amended to read as follows:
20 (ii) Measurement of assets. For purposes of this paragraph: (I) Total
21 assets are those assets that are properly reflected on a balance sheet,
22 computed in the same manner as is required by the banking regulator of
23 the taxpayers included in the combined return.
24 (II) Assets will only be included if the income or expenses of which
25 are properly reflected (or would have been properly reflected if not
26 fully depreciated or expensed, or depreciated or expensed to a nominal
27 amount) in the computation of the combined group's entire net income for
28 the taxable year. Assets will not include deferred tax assets and intan-
29 gible assets identified as "goodwill".
30 (III) Tangible real and personal property, such as buildings, land,
31 machinery, and equipment shall be valued at cost. Leased assets will be
32 valued at the annual lease payment multiplied by eight. Intangible prop-
33 erty, such as loans and investments, shall be valued at book value
34 exclusive of reserves.
35 (IV) Intercorporate stockholdings and bills, notes and accounts
36 receivable, and other intercorporate indebtedness between the corpo-
37 rations included in the combined report shall be eliminated.
38 (V) Average assets are computed using the assets measured on the first
39 day of the taxable year, and on the last day of each subsequent quarter
40 of the taxable year or month or day during the taxable year.
41 § 7. Clause (B) of subparagraph 2 and clause (B) of subparagraph 2-a
42 of paragraph (s) of subdivision 9 of section 208 of the tax law, as
43 added by section 4 of part A of chapter 59 of the laws of 2014, are
44 amended to read as follows:
45 (B) The average value during the taxable year of the assets of the
46 taxpayer, or, if the taxpayer is included in a combined report, the
47 assets of the combined reporting group of the taxpayer under section two
48 hundred ten-C of this article, must not exceed eight billion dollars.
49 (B) The average value during the taxable year of the assets of the
50 taxpayer, or, if the taxpayer is included in a combined report, the
51 assets of the combined reporting group of the taxpayer under section two
52 hundred ten-C of this article, must not exceed eight billion dollars.
53 § 8. Paragraph (d) of subdivision 1 of section 209 of the tax law, as
54 added by section 5 of part A of chapter 59 of the laws of 2014, is
55 amended to read as follows:
S. 4209 65
1 (d)(i) A corporation with less than one million dollars but at least
2 ten thousand dollars of receipts within this state in a taxable year
3 that is part of a [combined reporting] unitary group that meets the
4 ownership test under section two hundred ten-C of this article is deriv-
5 ing receipts from activity in this state if the receipts within this
6 state of the members of the [combined reporting] unitary group that have
7 at least ten thousand dollars of receipts within this state in the
8 aggregate meet the threshold set forth in paragraph (b) of this subdivi-
9 sion.
10 (ii) A corporation that does not meet any of the thresholds set forth
11 in paragraph (c) of this subdivision but has at least ten customers, or
12 locations, or customers and locations, as described in paragraph (c) of
13 this subdivision, and is part of a [combined reporting] unitary group
14 that meets the ownership test under section two hundred ten-C of this
15 article [that] is doing business in this state if the number of custom-
16 ers, locations, or customers and locations, within this state of the
17 members of the [combined reporting] unitary group that have at least ten
18 customers, locations, or customers and locations, within this state in
19 the aggregate meets any of the thresholds set forth in paragraph (c) of
20 this subdivision.
21 § 9. Paragraph (d) of subdivision 1 of section 209-B of the tax law,
22 as added by section 7 of part A of chapter 59 of the laws of 2014, is
23 amended to read as follows:
24 (d)(i) A corporation with less than one million dollars but at least
25 ten thousand dollars of receipts within the metropolitan commuter trans-
26 portation district in a taxable year that is part of a [combined report-
27 ing] unitary group that meets the ownership test under section two
28 hundred ten-C of this article is deriving receipts from activity in the
29 metropolitan commuter transportation district if the receipts within the
30 metropolitan commuter transportation district of the members of the
31 [combined reporting] unitary group that have at least ten thousand
32 dollars of receipts within the metropolitan commuter transportation
33 district in the aggregate meet the threshold set forth in paragraph (b)
34 of this subdivision.
35 (ii) A corporation that does not meet any of the thresholds set forth
36 in paragraph (c) of this subdivision but has at least ten customers, or
37 locations, or customers and locations, as described in paragraph (c),
38 and is part of a [combined reporting] unitary group that meets the
39 ownership test under section two hundred ten-C of this article [that] is
40 doing business in the metropolitan commuter transportation district if
41 the number of customers, locations, or customers and locations, within
42 the metropolitan commuter transportation district of the members of the
43 [combined reporting] unitary group that have at least ten customers,
44 locations, or customers and locations, within the metropolitan commuter
45 transportation district in the aggregate meets any of the thresholds set
46 forth in paragraph (c) of this subdivision.
47 § 10. The opening paragraph of paragraph (a) of subdivision 1 of
48 section 210 of the tax law, as amended by section 12 of part A of chap-
49 ter 59 of the laws of 2014, is amended to read as follows:
50 For taxable years beginning before January first, two thousand
51 sixteen, the amount prescribed by this paragraph shall be computed at
52 the rate of seven and one-tenth percent of the taxpayer's business
53 income base. For taxable years beginning on or after January first, two
54 thousand sixteen, the amount prescribed by this paragraph shall be six
55 and one-half percent of the taxpayer's business income base. The taxpay-
56 er's business income base shall mean the portion of the taxpayer's busi-
S. 4209 66
1 ness income allocated within the state as hereinafter provided. However,
2 in the case of a small business taxpayer, as defined in paragraph (f) of
3 this subdivision, the amount prescribed by this paragraph shall be
4 computed pursuant to subparagraph (iv) of this paragraph and in the case
5 of a manufacturer, as defined in subparagraph (vi) of this paragraph,
6 the amount prescribed by this paragraph shall be computed pursuant to
7 subparagraph (vi) of this paragraph, and, in the case of a qualified
8 emerging technology company, as defined in subparagraph (vii) of this
9 paragraph, the amount prescribed by this paragraph shall be computed
10 pursuant to subparagraph (vii) of this paragraph.
11 § 11. Subparagraph (vi) of paragraph (a) of subdivision 1 of section
12 210 of the tax law, as amended by section 12 of part A of chapter 59 of
13 the laws of 2014, is amended to read as follows:
14 (vi) for taxable years beginning on or after January first, two thou-
15 sand fourteen, the amount prescribed by this paragraph for a taxpayer
16 which is a qualified New York manufacturer, shall be computed at the
17 rate of zero percent of the taxpayer's business income base. The term
18 "manufacturer" shall mean a taxpayer which during the taxable year is
19 principally engaged in the production of goods by manufacturing, proc-
20 essing, assembling, refining, mining, extracting, farming, agriculture,
21 horticulture, floriculture, viticulture or commercial fishing. However,
22 the generation and distribution of electricity, the distribution of
23 natural gas, and the production of steam associated with the generation
24 of electricity shall not be qualifying activities for a manufacturer
25 under this subparagraph. Moreover, in the case of a combined report, the
26 combined group shall be considered a "manufacturer" for purposes of this
27 subparagraph only if the combined group during the taxable year is prin-
28 cipally engaged in the activities set forth in this paragraph, or any
29 combination thereof. A taxpayer or, in the case of a combined report, a
30 combined group shall be "principally engaged" in activities described
31 above if, during the taxable year, more than fifty percent of the gross
32 receipts of the taxpayer or combined group, respectively, are derived
33 from receipts from the sale of goods produced by such activities. In
34 computing a combined group's gross receipts, intercorporate receipts
35 shall be eliminated. A "qualified New York manufacturer" is a manufac-
36 turer which has property in New York which is described in clause (A) of
37 subparagraph (i) of paragraph (b) of subdivision one of section two
38 hundred ten-B of this article and either (I) the adjusted basis of such
39 property for federal income tax purposes at the close of the taxable
40 year is at least one million dollars or (II) all of its real and
41 personal property is located in New York. A taxpayer or, in the case of
42 a combined report, a combined group, that does not satisfy the princi-
43 pally engaged test may be a qualified New York manufacturer if the
44 taxpayer or the combined group employs during the taxable year at least
45 two thousand five hundred employees in manufacturing in New York and the
46 taxpayer or the combined group has property in the state used in manu-
47 facturing, the adjusted basis of which for federal income tax purposes
48 at the close of the taxable year is at least one hundred million
49 dollars.
50 § 12. Subparagraph (vii) of paragraph (a) of subdivision 1 of section
51 210 of the tax law, as amended by section 12 of part A of chapter 59 of
52 the laws of 2014, is amended to read as follows:
53 (vii) For a taxpayer that is defined as a qualified emerging technolo-
54 gy company under paragraph (c) of subdivision one of section thirty-one
55 hundred two-e of the public authorities law regardless of the ten
56 million dollar limitation expressed in subparagraph one of such para-
S. 4209 67
1 graph (c) the amount prescribed by this paragraph shall be computed at
2 the rate [at which the tax is computed in effect for taxable years
3 beginning on or after January first, two thousand thirteen and before
4 January first, two thousand fourteen for such qualified emerging tech-
5 nology companies shall be reduced by nine and two-tenths percent for
6 taxable years commencing on or after January first, two thousand four-
7 teen and before January first, two thousand fifteen, twelve and three-
8 tenths percent for taxable years commencing on or after January first,
9 two thousand fifteen and before January first, two thousand sixteen,
10 fifteen and four-tenths percent for taxable years commencing on or after
11 January first, two thousand sixteen and before January first, two thou-
12 sand eighteen, and twenty-five percent for taxable years beginning on or
13 after January first, two thousand eighteen] of 5.7 percent for taxable
14 years beginning on or after January first, two thousand fifteen and
15 before January first, two thousand sixteen, 5.5 percent for taxable
16 years beginning on or after January first two thousand sixteen and
17 before January first, two thousand eighteen, and 4.875 percent for taxa-
18 ble years beginning on or after January first, two thousand eighteen.
19 § 13. Item (IV) of subclause 2 of clause (B) of subparagraph (viii) of
20 paragraph (a) of subdivision 1 of section 210 of the tax law, as added
21 by section 12 of part A of chapter 59 of the laws of 2014, is amended to
22 read as follows:
23 (IV) In lieu of the subtraction described in item (III) of this
24 subclause, if the taxpayer so elects, the taxpayer's prior net operating
25 loss conversion subtraction for the tax years beginning on or after
26 January first, two thousand fifteen and before January first, two thou-
27 sand seventeen shall equal in each year, not more than one-half of its
28 net operating loss conversion subtraction pool until the pool is
29 exhausted. If the pool is not exhausted at the end of such time period,
30 the remainder of the pool shall be forfeited. The taxpayer shall make
31 such election on its first return for the tax year beginning on or after
32 January first, two thousand fifteen and before January first, two thou-
33 sand sixteen by the due date for such return (determined with regard to
34 extensions).
35 § 14. Subclause 4 of clause (B) of subparagraph (viii) of paragraph
36 (a) of subdivision 1 of section 210 of the tax law, as added by section
37 12 of part A of chapter 59 of the laws of 2014, is amended to read as
38 follows:
39 (4) The prior net operating loss conversion subtraction may be used to
40 reduce the taxpayer's tax on allocated business income to the higher of
41 the tax on the capital base under paragraph (b) of this subdivision or
42 the fixed dollar minimum under paragraph (d) of this subdivision. [Any]
43 Unless the taxpayer has made the election provided for in item (IV) of
44 subclause two of this clause, any amount of unused subtraction shall be
45 carried forward to subsequent tax year or years until [tax] the prior
46 net operating loss conversion subtraction pool is exhausted, but for no
47 longer than twenty taxable years or the taxable year beginning on or
48 after January first, two thousand thirty-five but before January first,
49 two thousand thirty-six, whichever comes first. Such amount carried
50 forward shall not be subject to the one-tenth limitation for the subse-
51 quent tax year or years. However, if the taxpayer elects to compute its
52 prior net operating loss conversion subtraction pursuant to item (IV) of
53 subclause two of this clause, the taxpayer shall not carry forward any
54 unused amount of such subtraction [beyond its] to any tax year beginning
55 on or after [January first, two thousand sixteen and before] January
56 first, two thousand seventeen.
S. 4209 68
1 § 15. The opening paragraph of subparagraph (ix) of paragraph (a) of
2 subdivision 1 of section 210 of the tax law, as added by section 12 of
3 part A of chapter 59 of the laws of 2014, is amended to read as follows:
4 In computing the business income base, a net operating loss deduction
5 shall be allowed. A net operating loss deduction is the amount of net
6 operating loss or losses from one or more taxable years that are carried
7 forward or carried back to a particular [income] taxable year. A net
8 operating loss is the amount of a business loss incurred in a particular
9 tax year multiplied by the apportionment factor for that year as deter-
10 mined under section two hundred ten-A of this article. The maximum net
11 operating loss deduction that is allowed in a taxable year is the amount
12 that reduces the taxpayer's tax on [allocated] apportioned business
13 income to the higher of the tax on the capital base or the fixed dollar
14 minimum. Such deduction and loss are determined in accordance with the
15 following:
16 § 16. Clauses 4 and 6 of subparagraph (ix) of paragraph (a) of subdi-
17 vision 1 or section 210 of the tax law, as added by section 12 of part A
18 of chapter 59 of the laws of 2014, are amended to read as follows:
19 (4) [A net operating loss may be carried forward to each of the twenty
20 taxable years following the taxable year of the loss. A net operating
21 loss may be carried back to each of the three taxable years preceding
22 the taxable year of the loss; provided, however no loss can be carried
23 back to a tax year prior to a tax year beginning on or after January,
24 first, two thousand fifteen. A taxpayer must apply both of these limita-
25 tions in computing such net operating loss deduction.] A net operating
26 loss may be carried back three taxable years preceding the taxable year
27 of the loss. However no loss can be carried back to a taxable year
28 beginning before January first, two thousand fifteen. The loss is first
29 carried to the earliest of the three taxable years. If it is not entire-
30 ly used in that year, it is carried to the second taxable year preceding
31 the loss year, and any remaining amount is carried to the taxable year
32 immediately preceding the loss year. Any unused amount of loss then
33 remaining may be carried forward for as many as twenty taxable years
34 following the loss year. Losses carried forward are carried forward
35 first to the taxable year immediately following the loss year, then to
36 the second taxable year following the loss year, and then to the next
37 immediately subsequent taxable year or years until the loss is used up
38 or the twentieth taxable year following the loss year, whichever comes
39 first.
40 (6) Where there are two or more allocated net operating losses, or
41 portions thereof, carried back or carried forward to be deducted in one
42 particular tax year from allocated business income, the earliest allo-
43 cated loss incurred must be applied first.
44 § 17. Subparagraph (ix) of paragraph (a) of subdivision 1 of section
45 210 of the tax law is amended by adding a new clause 7 to read as
46 follows:
47 (7) A taxpayer may elect to waive the entire carryback period with
48 respect to a net operating loss. Such election must be made on the
49 taxpayer's original timely filed return (determined with regard to
50 extensions) for the taxable year of the net operating loss for which the
51 election is to be in effect. Once an election is made for a taxable
52 year, it shall be irrevocable for that taxable year. A separate election
53 must be made for each loss year. This election applies to all members of
54 a combined group.
S. 4209 69
1 § 18. Paragraph (b) of subdivision 1 of section 210 of the tax law, as
2 amended by section 12 of part A of chapter 59 of the laws of 2014, is
3 amended to read as follows:
4 (b) Capital base. (1) The amount prescribed by this paragraph shall be
5 computed at .15 percent for each dollar of the taxpayer's total business
6 capital, or the portion thereof allocated within the state as hereinaft-
7 er provided for taxable years beginning before January first, two thou-
8 sand sixteen. However, in the case of a cooperative housing corporation
9 as defined in the internal revenue code, the applicable rate shall be
10 .04 percent until taxable years beginning on or after January first, two
11 thousand twenty. The rate of tax for subsequent tax years shall be as
12 follows: .125 percent for taxable years beginning on or after January
13 first, two thousand sixteen and before January first, two thousand
14 seventeen; .100 percent for taxable years beginning on or after January
15 first, two thousand seventeen and before January first, two thousand
16 eighteen; .075 percent for taxable years beginning on or after January
17 first, two thousand eighteen and before January first, two thousand
18 nineteen; .050 percent for taxable years beginning on or after January
19 first, two thousand nineteen and before January first, two thousand
20 twenty; .025 percent for taxable years beginning on or after January
21 first, two thousand twenty and before January first, two thousand twen-
22 ty-one; and zero percent for years beginning on or after January first,
23 two thousand twenty-one. The rate of tax for a qualified New York
24 manufacturer [for tax years subsequent to taxable years beginning on or
25 after January first, two thousand fifteen and before January first, two
26 thousand sixteen] shall be .132 percent for taxable years beginning on
27 or after January first, two thousand fifteen and before January first,
28 two thousand sixteen, .106 percent for taxable years beginning on or
29 after January first, two thousand sixteen and before January first, two
30 thousand seventeen, .085 percent for taxable years beginning on or after
31 January first, two thousand seventeen and before January first, two
32 thousand eighteen; .056 percent for taxable years beginning on or after
33 January first, two thousand eighteen and before January first, two thou-
34 sand nineteen; .038 percent for taxable years beginning on or after
35 January first, two thousand nineteen and before January first, thousand
36 twenty; .019 percent for taxable years beginning on or after January
37 first, two thousand twenty and before January first, two thousand twen-
38 ty-one; and zero percent for years beginning on or after January first,
39 two thousand twenty-one. In no event shall the amount prescribed by this
40 paragraph exceed three hundred fifty thousand dollars for qualified New
41 York manufacturers and for all other taxpayers five million dollars.
42 (2) For purposes of subparagraph one of this paragraph, the term
43 "manufacturer" shall mean a taxpayer which during the taxable year is
44 principally engaged in the production of goods by manufacturing, proc-
45 essing, assembling, refining, mining, extracting, farming, agriculture,
46 horticulture, floriculture, viticulture or commercial fishing. Moreover,
47 for purposes of computing the capital base in a combined report, the
48 combined group shall be considered a "manufacturer" for purposes of this
49 subparagraph only if the combined group during the taxable year is prin-
50 cipally engaged in the activities set forth in this subparagraph, or any
51 combination thereof. A taxpayer or, in the case of a combined report, a
52 combined group shall be "principally engaged" in activities described
53 above if, during the taxable year, more than fifty percent of the gross
54 receipts of the taxpayer or combined group, respectively, are derived
55 from receipts from the sale of goods produced by such activities. In
56 computing a combined group's gross receipts, intercorporate receipts
S. 4209 70
1 shall be eliminated. A "qualified New York manufacturer" is a manufac-
2 turer that has property in New York that is described in subdivision one
3 of section [210-B] two hundred ten-B of this article and either (i) the
4 adjusted basis of that property for federal income tax purposes at the
5 close of the taxable year is at least one million dollars or (ii) all of
6 its real and personal property is located in New York. In addition, a
7 "qualified New York manufacturer" means a taxpayer that is defined as a
8 qualified emerging technology company under paragraph (c) of subdivision
9 one of section thirty-one hundred two-e of the public authorities law
10 regardless of the ten million dollar limitation expressed in subpara-
11 graph one of such paragraph. A taxpayer or, in the case of a combined
12 report, a combined group, that does not satisfy the principally engaged
13 test may be a qualified New York manufacturer if the taxpayer or the
14 combined group employs during the taxable year at least two thousand
15 five hundred employees in manufacturing in New York and the taxpayer or
16 the combined group has property in the state used in manufacturing, the
17 adjusted basis of which for federal income tax purposes at the close of
18 the taxable year is at least one hundred million dollars.
19 § 19. Subparagraph 1 of paragraph (d) of subdivision 1 of section 210
20 of the tax law, as amended by section 12 of part A of chapter 59 of the
21 laws of 2014, is amended to read as follows:
22 (1) (A) The amount prescribed by this paragraph for New York S corpo-
23 rations, other than New York S corporations that are qualified New York
24 manufacturers or qualified emerging technology companies, will be deter-
25 mined in accordance with the following table:
26 If New York receipts are: The fixed dollar minimum tax is:
27 not more than $100,000 $ 25
28 more than $100,000 but not over $250,000 $ 50
29 more than $250,000 but not over $500,000 $ 175
30 more than $500,000 but not over $1,000,000 $ 300
31 more than $1,000,000 but not over $5,000,000 $1,000
32 more than $5,000,000 but not over $25,000,000 $3,000
33 Over $25,000,000 $4,500
34 (B) Provided further, the amount prescribed by this paragraph for New
35 York S corporations that are qualified New York manufactures, as defined
36 in subparagraph (vi) of paragraph (a) of this subdivision, and for New
37 York S corporations that are qualified emerging technology companies
38 under paragraph (c) of subdivision one of section thirty-one hundred
39 two-e of the public authorities law regardless of the ten million dollar
40 limitation expressed in subparagraph one of such paragraph (c), will be
41 determined in accordance with the following tables.
42 For taxable years beginning on or after January 1, 2015 and before Janu-
43 ary 1, 2016:
44 If New York receipts are:The fixed dollar minimum tax is:
45 not more than $100,000$ 22
46 more than $100,000 but not over $250,000$ 44
47 more than $250,000 but not over $500,000$ 153
48 more than $500,000 but not over $1,000,000$ 263
49 more than $1,000,000 but not over $5,000,000$ 877
50 more than $5,000,000 but not over $25,000,000$2,631
51 Over $25,000,000$3,947
S. 4209 71
1 For taxable years beginning on or after January 1, 2016 and before Janu-
2 ary 1, 2018:
3 If New York receipts are:The fixed dollar minimum tax is:
4 not more than $100,000$ 21
5 more than $100,000 but not over $250,000$ 42
6 more than $250,000 but not over $500,000$ 148
7 more than $500,000 but not over $1,000,000$ 254
8 more than $1,000,000 but not over $5,000,000$ 846
9 more than $5,000,000 but not over $25,000,000$2,538
10 Over $25,000,000$3,807
11 For taxable years beginning on or after January 1, 2018:
12 If New York receipts are:The fixed dollar minimum tax is:
13 not more than $100,000$ 19
14 more than $100,000 but not over $250,000$ 38
15 more than $250,000 but not over $500,000$ 131
16 more than $500,000 but not over $1,000,000$ 225
17 more than $1,000,000 but not over $5,000,000$ 750
18 more than $5,000,000 but not over $25,000,000$2,250
19 Over $25,000,000$3,375
20 (C) Provided further, the amount prescribed by this paragraph for a
21 qualified New York manufacturer, as defined in subparagraph (vi) of
22 paragraph (a) of this subdivision, and a qualified emerging technology
23 company under paragraph (c) of subdivision one of section thirty-one
24 hundred two-e of the public authorities law regardless of the ten
25 million dollar limitation expressed in subparagraph one of such para-
26 graph (c), that is not a New York S corporation, will be determined in
27 accordance with the following tables[:
28 For tax years beginning on or after January 1, 2014 and before January
29 1, 2015:
30 If New York receipts are: The fixed dollar minimum tax is:
31 not more than $100,000 $ 23
32 more than $100,000 but not over $250,000 $ 68
33 more than $250,000 but not over $500,000 $ 159
34 more than $500,000 but not over $1,000,000 $ 454
35 more than $1,000,000 but not over $5,000,000 $1,362
36 more than $5,000,000 but not over $25,000,000 $3,178
37 Over $25,000,000 $4,500]
38 For tax years beginning on or after January 1, 2015 and before January
39 1, 2016:
40 If New York receipts are: The fixed dollar minimum tax is:
41 not more than $100,000 $ 22
42 more than $100,000 but not over $250,000 $ 66
43 more than $250,000 but not over $500,000 $ 153
44 more than $500,000 but not over $1,000,000 $ 439
45 more than $1,000,000 but not over $5,000,000 $1,316
46 more than $5,000,000 but not over $25,000,000 $3,070
47 Over $25,000,000 $4,385
S. 4209 72
1 For tax years beginning on or after January 1, 2016 and before January
2 1, 2018:
3 If New York receipts are: The fixed dollar minimum tax is:
4 not more than $100,000 $ 21
5 more than $100,000 but not over $250,000 $ 63
6 more than $250,000 but not over $500,000 $ 148
7 more than $500,000 but not over $1,000,000 $ 423
8 more than $1,000,000 but not over $5,000,000 $1,269
9 more than $5,000,000 but not over $25,000,000 $2,961
10 Over $25,000,000 $4,230
11 For tax years beginning on or after January 1, 2018:
12 If New York receipts are: The fixed dollar minimum tax is:
13 not more than $100,000 $ 19
14 more than $100,000 but not over $250,000 $ 56
15 more than $250,000 but not over $500,000 $ 131
16 more than $500,000 but not over $1,000,000 $ 375
17 more than $1,000,000 but not over $5,000,000 $1,125
18 more than $5,000,000 but not over $25,000,000 $2,625
19 Over $25,000,000 $3,750
20 (D) Otherwise, for all other taxpayers not covered by clauses (A), (B)
21 and (C) of this subparagraph, the amount prescribed by this paragraph
22 will be determined in accordance with the following table:
23 If New York receipts are: The fixed dollar minimum tax is:
24 not more than $100,000 $ 25
25 more than $100,000 but not over $250,000 $ 75
26 more than $250,000 but not over $500,000 $ 175
27 more than $500,000 but not over $1,000,000 $ 500
28 more than $1,000,000 but not over $5,000,000 $1,500
29 more than $5,000,000 but not over $25,000,000 $3,500
30 more than $25,000,000 but not over $50,000,000 $5,000
31 more than $50,000,000 but not over $100,000,000 $10,000
32 more than $100,000,000 but not over $250,000,000 $20,000
33 more than $250,000,000 but not over $500,000,000 $50,000
34 more than $500,000,000 but not over $1,000,000,000 $100,000
35 Over $1,000,000,000 $200,000
36 (E) For purposes of this paragraph, New York receipts are the receipts
37 included in the numerator of the apportionment factor determined under
38 section two hundred ten-A for the taxable year.
39 § 20. Paragraph (f) of subdivision 1 of section 210 of the tax law, as
40 amended by section 12 of part A of chapter 59 of the laws of 2014, is
41 amended to read as follows:
42 (f) For purposes of this section, the term "small business taxpayer"
43 shall mean a taxpayer (i) which has an entire net income of not more
44 than three hundred ninety thousand dollars for the taxable year; (ii)
45 the aggregate amount of money and other property received by the corpo-
46 ration for stock, as a contribution to capital, and as paid-in surplus,
47 does not exceed one million dollars; (iii) which is not part of an
48 affiliated group, as defined in section 1504 of the internal revenue
49 code, unless such group, if it had filed a report under this article on
50 a combined basis, would have itself qualified as a "small business
S. 4209 73
1 taxpayer" pursuant to this subdivision; and (iv) which has an average
2 number of individuals, excluding general executive officers, employed
3 full-time in the state during the taxable year of one hundred or fewer.
4 If the taxable period to which subparagraph (i) of this paragraph
5 applies is less than twelve months, entire net income under such subpar-
6 agraph shall be placed on an annual basis by multiplying the entire net
7 income by twelve and dividing the result by the number of months in the
8 period. For purposes of subparagraph (ii) of this paragraph, the amount
9 taken into account with respect to any property other than money shall
10 be the amount equal to the adjusted basis to the corporation of such
11 property for determining gain, reduced by any liability to which the
12 property was subject or which was assumed by the corporation. The deter-
13 mination under the preceding sentence shall be made as of the time the
14 property was received by the corporation. For purposes of subparagraph
15 [(iii)] (iv) of this [section] paragraph, "average number of individ-
16 uals, excluding general executive officers, employed full-time" shall be
17 computed by ascertaining the number of such individuals employed by the
18 taxpayer on the thirty-first day of March, the thirtieth day of June,
19 the thirtieth day of September and the thirty-first day of December
20 during each taxable year or other applicable period, by adding together
21 the number of such individuals ascertained on each of such dates and
22 dividing the sum so obtained by the number of such dates occurring with-
23 in such taxable year or other applicable period. An individual employed
24 full-time means an employee in a job consisting of at least thirty-five
25 hours per week, or two or more employees who are in jobs that together
26 constitute the equivalent of a job at least thirty-five hours per week
27 (full-time equivalent). Full-time equivalent employees in the state
28 [includes] include all employees regularly connected with or working out
29 of an office or place of business of the taxpayer within the state.
30 § 21. Subdivision 1 of section 210-A of the tax law, as added by
31 section 16 of part A of chapter 59 of the laws of 2014, is amended to
32 read as follows:
33 1. General. Business income and capital shall be apportioned to the
34 state by the apportionment factor determined pursuant to this section.
35 The apportionment factor is a fraction, determined by including only
36 those receipts, net income, net gains, and other items described in this
37 section that are included in the computation of the taxpayer's business
38 income (determined without regard to the modification provided in
39 subparagraph nineteen of paragraph (a) of subdivision nine of section
40 two hundred eight of this article) for the taxable year. The numerator
41 of the apportionment fraction shall be equal to the sum of all the
42 amounts required to be included in the numerator pursuant to the
43 provisions of this section and the denominator of the apportionment
44 fraction shall be equal to the sum of all the amounts required to be
45 included in the denominator pursuant to the provisions of this section.
46 § 22. Paragraph (c) of subdivision 2 of section 210-A of the tax law,
47 as added by section 16 of part A of chapter 59 of the laws of 2014, is
48 amended to read as follows:
49 (c) Receipts from sales of tangible personal property and electricity
50 that are traded as commodities, as [described] the term "commodity" is
51 defined in section 475 of the internal revenue code, are included in the
52 apportionment fraction in accordance with clause (I) of subparagraph two
53 of paragraph (a) of subdivision five of this section.
54 § 23. Paragraph 1 of paragraph (a) of subdivision 5 of section 210-A
55 of the tax law, as added by section 16 of part A of chapter 59 of the
56 laws of 2014, is amended to read as follows:
S. 4209 74
1 (1) Fixed percentage method for qualified financial instruments. In
2 determining the inclusion of receipts and net gains from qualified
3 financial instruments in the apportionment fraction, taxpayers may elect
4 to use the fixed percentage method described in this subparagraph for
5 qualified financial instruments. The election is irrevocable, applies to
6 all qualified financial instruments, and must be made on an annual basis
7 on the taxpayer's original, timely filed return. If the taxpayer elects
8 the fixed percentage method, then all income, gain or loss, including
9 marked to market net gains as defined in clause (J) of subparagraph two
10 of this paragraph, from qualified financial instruments constitutes
11 business income, gain or loss. If the taxpayer does not elect to use the
12 fixed percentage method, then receipts and net gains are included in the
13 apportionment fraction in accordance with the customer sourcing method
14 described in subparagraph two of this paragraph. Under the fixed
15 percentage method, eight percent of all net income (not less than zero)
16 from qualified financial instruments is included in the numerator of the
17 apportionment fraction. All net income (not less than zero) from quali-
18 fied financial instruments is included in the denominator of the appor-
19 tionment fraction.
20 § 24. Subclause (iv) of clause (A) of subparagraph 2 of paragraph (a)
21 of subdivision 5 of section 210-A of the tax law, as added by section 16
22 of part A of chapter 59 of the laws of 2014, is amended to read as
23 follows:
24 (iv) Net gains (not less than zero) from sales of loans not secured by
25 real property are included in the numerator of the apportionment frac-
26 tion as provided in this subclause. The amount of net gains from the
27 sale of loans not secured by real property included in the numerator of
28 the apportionment fraction is determined by multiplying the net gains by
29 a fraction, the numerator of which is the amount of gross proceeds from
30 sales of loans not secured by real property to purchasers located within
31 the state and the denominator of which is the amount of gross [receipts]
32 proceeds from sales of loans not secured by real property to purchasers
33 located within and without the state. Gross proceeds shall be determined
34 after the deduction of any cost incurred to acquire the loans but shall
35 not be less than zero. Net gains (not less than zero) from sales of
36 loans not secured by real property are included in the denominator of
37 the apportionment fraction.
38 § 25. Clause (A) of subparagraph 2 of paragraph (a) of subdivision 5
39 of section 210-A of the tax law is amended by adding a new subclause (v)
40 to read as follows:
41 (v) For purposes of this subdivision, a loan is secured by real prop-
42 erty if fifty percent or more of the value of the collateral used to
43 secure the loan, when valued at fair market value as of the time the
44 loan was entered into, consists of real property.
45 § 26. Subparagraph 2 of paragraph (a) of subdivision 5 of section
46 210-A of the tax law is amended by adding a new clause (J) to read as
47 follows:
48 (J) Marked to market net gains. (i) For purposes of this clause,
49 "marked to market" mean that a financial instrument is, under section
50 475 or section 1256 of the internal revenue code, treated by the taxpay-
51 er as sold for its fair market value on the last business day of the
52 taxpayer's taxable year. "Marked to market gain or loss" means the gain
53 or loss recognized by the taxpayer under section 475 or section 1256 of
54 the internal revenue code because the financial instrument is treated as
55 sold for its fair market value on the last business day of the taxable
56 year.
S. 4209 75
1 (ii) The amount of marked to market net gains (not less than zero)
2 from each type of financial instrument that is marked to market included
3 in the numerator of the apportionment fraction is determined by multi-
4 plying the marked to market net gains (but not less than zero) from such
5 type of the financial instrument by a fraction, the numerator of which
6 is the numerator of the apportionment fraction for the net gains from
7 that type of financial instrument determined under the applicable clause
8 of this subparagraph and the denominator of which is the denominator of
9 the apportionment fraction for the net gains for that type of financial
10 instrument determined under the applicable clause of this subparagraph.
11 Marked to market net gains (not less than zero) from financial instru-
12 ments for which the numerator of the apportionment fraction is deter-
13 mined under the immediately preceding sentence are included in the
14 denominator of the apportionment fraction.
15 (iii) If the type of financial instrument that is marked to market is
16 not otherwise sourced by the taxpayer under this subparagraph, or if the
17 taxpayer has a net loss from the sales of that type of financial instru-
18 ment under the applicable clause of this subparagraph, the amount of
19 marked to market net gains (not less than zero) from that type of finan-
20 cial instrument included in the numerator of the apportionment fraction
21 is determined by multiplying the marked to market net gains (but not
22 less than zero) from that type of financial instrument by a fraction,
23 the numerator of which is the sum of the amount of receipts included in
24 the numerator of the apportionment fraction under clauses (A), (B), (C),
25 (D), (E), (F), (G), (H) and (I) of this subparagraph and subclause (ii)
26 of this clause, and the denominator of which is the sum of the amount of
27 receipts included in the denominator of the apportionment fraction under
28 clauses (A), (B), (C), (D), (E), (F), (G), (H) and (I) and subclause
29 (ii) of this clause. Marked to market net gains (not less than zero) for
30 which the amount to be included in the numerator of the apportionment
31 fraction is determined under the immediately preceding sentence are
32 included in the denominator of the apportionment fraction.
33 § 27. Paragraph (e) of subdivision 5 of section 210-A of the tax law,
34 as added by section 16 of part A of chapter 59 of the laws of 2014, is
35 amended to read as follows:
36 (e) For purposes of this subdivision, a taxpayer shall use the follow-
37 ing hierarchy to determine the commercial domicile of a business entity,
38 based on the information known to the taxpayer or information that would
39 be known upon reasonable inquiry: (i) [the location of the treasury
40 function of the business entity; (ii)] the seat of management and
41 control of the business entity; and [(iii)] (ii) the billing address of
42 the business entity in the taxpayer's records. The taxpayer must exer-
43 cise due diligence before rejecting [a] the first method in this hierar-
44 chy and proceeding to the next method.
45 § 28. Section 210-A of the tax law is amended by adding a new subdivi-
46 sion 6-a to read as follows:
47 6-a. Receipts from the operation of vessels. Receipts from the opera-
48 tion of vessels are included in the numerator of the apportionment frac-
49 tion as follows. The amount of receipts from the operation of vessels
50 included in the numerator of the apportionment fraction is determined by
51 multiplying the amount of such receipts by a fraction, the numerator of
52 which is the aggregate number of working days of the vessels owned or
53 leased by the taxpayer in territorial waters of the state during the
54 period covered by the taxpayer's report and the denominator of which is
55 the aggregate number of working days of all vessels owned or leased by
56 the taxpayer during such period.
S. 4209 76
1 § 29. The opening paragraph of clause (A) of subparagraph 1 of para-
2 graph (b) of subdivision 7 of section 210-A of the tax law, as added by
3 section 16 of part A of chapter 59 of the laws of 2014, is amended to
4 read as follows:
5 The portion of receipts of a taxpayer from aviation services (other
6 than services described in paragraph (a) of this subdivision, but
7 including the receipts of a qualified air freight forwarder) to be
8 included in the numerator of the apportionment fraction shall be deter-
9 mined by multiplying its receipts from such aviation services by a
10 percentage which is equal to the arithmetic average of the following
11 three percentages:
12 § 30. Paragraph (b) of subdivision 7 of section 210-A of the tax law
13 is amended by adding a new subparagraph 3 to read as follows:
14 (3) A corporation is a qualified air freight forwarder with respect to
15 another corporation:
16 (A) if it owns or controls either directly or indirectly all of the
17 capital stock of such other corporation, or if all of its capital stock
18 is owned or controlled either directly or indirectly by such other
19 corporation, or if all of the capital stock of both corporations is
20 owned or controlled either directly or indirectly by the same interests,
21 (B) if it is principally engaged in the business of air freight
22 forwarding, and
23 (C) if its air freight forwarding business is carried on principally
24 with the airline or airlines operated by such other corporation.
25 § 31. Subparagraph (i) of paragraph (b) and paragraph (d) of subdivi-
26 sion 1 of section 210-B of the tax law, as added by section 17 of part A
27 of chapter 59 of the laws of 2014, are amended to read as follows:
28 (i) A credit shall be allowed under this subdivision with respect to
29 tangible personal property and other tangible property, including build-
30 ings and structural components of buildings, which are: depreciable
31 pursuant to section one hundred sixty-seven of the internal revenue
32 code, have a useful life of four years or more, are acquired by purchase
33 as defined in section one hundred seventy-nine (d) of the internal
34 revenue code, have a situs in this state and are (A) principally used by
35 the taxpayer in the production of goods by manufacturing, processing,
36 assembling, refining, mining, extracting, farming, agriculture, horti-
37 culture, floriculture, viticulture or commercial fishing, (B) industrial
38 waste treatment facilities or air pollution control facilities, used in
39 the taxpayer's trade or business, (C) research and development property,
40 or (D) principally used in the ordinary course of the taxpayer's trade
41 or business as a broker or dealer in connection with the purchase or
42 sale (which shall include but not be limited to the issuance, entering
43 into, assumption, offset, assignment, termination, or transfer) of
44 stocks, bonds or other securities as defined in section four hundred
45 seventy-five (c)(2) of the Internal Revenue Code, or of commodities as
46 defined in section four hundred seventy-five (e) of the Internal Revenue
47 Code, (E) principally used in the ordinary course of the taxpayer's
48 trade or business of providing investment advisory services for a regu-
49 lated investment company as defined in section eight hundred fifty-one
50 of the Internal Revenue Code, or lending, loan arrangement or loan orig-
51 ination services to customers in connection with the purchase or sale
52 (which shall include but not be limited to the issuance, entering into,
53 assumption, offset, assignment, termination, or transfer) of securities
54 as defined in section four hundred seventy-five (c)(2) of the Internal
55 Revenue Code, (F) [originally] principally used in the ordinary course
56 of the taxpayer's business as an exchange registered as a national secu-
S. 4209 77
1 rities exchange within the meaning of sections 3(a)(1) and 6(a) of the
2 Securities Exchange Act of 1934 or a board of trade as defined in
3 [section 1410(a)(1) of the New York Not-for-Profit Corporation Law]
4 subparagraph one of paragraph (a) of section fourteen hundred ten of the
5 not-for-profit corporation law or as an entity that is wholly owned by
6 one or more such national securities exchanges or boards of trade and
7 that provides automation or technical services thereto, or (G) princi-
8 pally used as a qualified film production facility including qualified
9 film production facilities having a situs in an empire zone designated
10 as such pursuant to article eighteen-B of the general municipal law,
11 where the taxpayer is providing three or more services to any qualified
12 film production company using the facility, including such services as a
13 studio lighting grid, lighting and grip equipment, multi-line phone
14 service, broadband information technology access, industrial scale elec-
15 trical capacity, food services, security services, and heating, venti-
16 lation and air conditioning. For purposes of clauses (D), (E) and (F) of
17 this subparagraph, property purchased by a taxpayer affiliated with a
18 regulated broker, dealer, registered investment advisor, national secu-
19 rities exchange or board of trade, is allowed a credit under this subdi-
20 vision if the property is used by its affiliated regulated broker, deal-
21 er, registered investment advisor, national securities exchange or board
22 of trade in accordance with this subdivision. For purposes of determin-
23 ing if the property is principally used in qualifying uses, the uses by
24 the taxpayer described in clauses (D) and (E) of this subparagraph may
25 be aggregated. In addition, the uses by the taxpayer, its affiliated
26 regulated broker, dealer and registered investment advisor under either
27 or both of those clauses may be aggregated. Provided, however, a taxpay-
28 er shall not be allowed the credit provided by clauses (D), (E) and (F)
29 of this subparagraph unless the property is first placed in service
30 before October first, two thousand fifteen and (i) eighty percent or
31 more of the employees performing the administrative and support func-
32 tions resulting from or related to the qualifying uses of such equipment
33 are located in this state or (ii) the average number of employees that
34 perform the administrative and support functions resulting from or
35 related to the qualifying uses of such equipment and are located in this
36 state during the taxable year for which the credit is claimed is equal
37 to or greater than ninety-five percent of the average number of employ-
38 ees that perform these functions and are located in this state during
39 the thirty-six months immediately preceding the year for which the cred-
40 it is claimed, or (iii) the number of employees located in this state
41 during the taxable year for which the credit is claimed is equal to or
42 greater than ninety percent of the number of employees located in this
43 state on December thirty-first, nineteen hundred ninety-eight or, if the
44 taxpayer was not a calendar year taxpayer in nineteen hundred ninety-
45 eight, the last day of its first taxable year ending after December
46 thirty-first, nineteen hundred ninety-eight. If the taxpayer becomes
47 subject to tax in this state after the taxable year beginning in nine-
48 teen hundred ninety-eight, then the taxpayer is not required to satisfy
49 the employment test provided in the preceding sentence of this subpara-
50 graph for its first taxable year. For purposes of clause (iii) of this
51 subparagraph the employment test will be based on the number of employ-
52 ees located in this state on the last day of the first taxable year the
53 taxpayer is subject to tax in this state. If the uses of the property
54 must be aggregated to determine whether the property is principally used
55 in qualifying uses, then either each affiliate using the property must
56 satisfy this employment test or this employment test must be satisfied
S. 4209 78
1 through the aggregation of the employees of the taxpayer, its affiliated
2 regulated broker, dealer, and registered investment adviser using the
3 property. For purposes of this subdivision, the term "goods" shall not
4 include electricity.
5 (d) Except as otherwise provided in this paragraph, the credit allowed
6 under this subdivision for any taxable year shall not reduce the tax due
7 for such year to less than the [higher of the amounts prescribed in
8 paragraphs (c) and] fixed dollar minimum amount prescribed in paragraph
9 (d) of subdivision one of [this] section two hundred ten of this
10 article. However, if the amount of credit allowable under this subdivi-
11 sion for any taxable year reduces the tax to such amount or if the
12 taxpayer otherwise pays tax based on the fixed dollar minimum amount,
13 any amount of credit allowed for a taxable year commencing prior to
14 January first, nineteen hundred eighty-seven and not deductible in such
15 taxable year may be carried over to the following year or years and may
16 be deducted from the taxpayer's tax for such year or years but in no
17 event shall such credit be carried over to taxable years commencing on
18 or after January first, two thousand two, and any amount of credit
19 allowed for a taxable year commencing on or after January first, nine-
20 teen hundred eighty-seven and not deductible in such year may be carried
21 over to the fifteen taxable years next following such taxable year and
22 may be deducted from the taxpayer's tax for such year or years. In lieu
23 of such carryover, any such taxpayer which qualifies as a new business
24 under paragraph [(j)] (f) of this subdivision may elect to treat the
25 amount of such carryover as an overpayment of tax to be credited or
26 refunded in accordance with the provisions of section ten hundred eight-
27 y-six of this chapter, provided, however, the provisions of subsection
28 (c) of section ten hundred eighty-eight of this chapter notwithstanding,
29 no interest shall be paid thereon.
30 § 32. Subdivision 27 of section 210-B of the tax law, as added by
31 section 17 of part A of chapter 59 of the laws of 2014, is amended to
32 read as follows:
33 27. Credits of New York S corporations. (a) General. Notwithstanding
34 the provisions of this section, no carryover of credit allowable in a
35 New York C year shall be deducted from the tax otherwise due under this
36 article in a New York S year, and no credit allowable in a New York S
37 year, or carryover of such credit, shall be deducted from the tax
38 imposed by this article. However, a New York S year shall be treated as
39 a taxable year for purposes of determining the number of taxable years
40 to which a credit may be carried over under this section. Notwithstand-
41 ing the first sentence of this subdivision, however, the credit for the
42 special additional mortgage recording tax shall be allowed as provided
43 in subdivision [fifteen] nine of this section, and the carryover of any
44 such credit shall be determined without regard to whether the credit is
45 carried from a New York C year to a New York S year or vice-versa.
46 § 33. Subdivision 1, subparagraphs (i) and (ii) of paragraph (d) and
47 paragraphs (d-1) and (e) of subdivision 4, and subdivision 7 of section
48 210-C of the tax law, as added by section 18 of part A of chapter 59 of
49 the laws of 2014, are amended to read as follows:
50 1. Tax. (a) The tax on a combined report shall be the highest of (i)
51 the combined business income base multiplied by the tax rate specified
52 in paragraph (a) of subdivision one of section two hundred ten of this
53 article; (ii) the combined capital base multiplied by the tax rate spec-
54 ified in paragraph (b) of subdivision one of section two hundred ten of
55 this article, but not exceeding the limitation provided for in that
56 paragraph (b); or (iii) the fixed dollar minimum that is attributable to
S. 4209 79
1 the designated agent of the combined group. In addition, the tax on a
2 combined report shall include the fixed dollar minimum tax specified in
3 paragraph (d) of subdivision one of section two hundred ten of this
4 article for each member of the combined group, other than the designated
5 agent, that is a taxpayer.
6 (b) The combined business income base is the amount of the combined
7 business income of the combined group that is apportioned to the state,
8 reduced by any prior net operating loss conversion subtraction and any
9 net operating loss deduction for the combined group. The combined capi-
10 tal base is the amount of the combined capital of the combined group
11 that is apportioned to the state.
12 (i) A net operating loss deduction is allowed in computing the
13 combined business income base. Such deduction may reduce the tax on the
14 combined business income base to the higher of the tax on the combined
15 capital base or the fixed dollar minimum amount that is attributable to
16 the designated agent of the combined group. A combined net operating
17 loss deduction is equal to the amount of combined net operating loss or
18 losses from one or more taxable years that are carried forward or
19 carried back to a particular [income] taxable year. A combined net oper-
20 ating loss is the combined business loss incurred in a particular taxa-
21 ble year multiplied by the combined apportionment factor for that year
22 determined as provided in subdivision five of this section.
23 (ii) The combined net operating loss deduction and combined net oper-
24 ating loss are also subject to the provisions contained in clauses one
25 through [six] seven of subparagraph (ix) of paragraph (a) of subdivision
26 one of section two hundred ten of this article.
27 (d-1) A prior net operating loss conversion subtraction is allowed in
28 computing the combined business income base, as provided in subparagraph
29 (viii) of paragraph (a) of subdivision one of section two hundred ten of
30 this article. Such subtraction may reduce the tax on the combined busi-
31 ness income base to the higher of the tax on the combined capital base
32 or the fixed dollar minimum amount that is attributable to the desig-
33 nated agent of the combined group.
34 (e) Any election made pursuant to paragraph (b) of subdivision six,
35 [and] paragraphs (b) and (c) of subdivision six-a of section two hundred
36 eight, and item (IV) of subclause two of clause (B) of subparagraph
37 (viii) and clause seven of subparagraph (ix) of paragraph (a) of subdi-
38 vision one of section two hundred ten of this article shall apply to all
39 members of the combined group.
40 7. Designated agent. Each combined group shall have one designated
41 agent for the combined group, which shall be a taxpayer. [The designated
42 agent is the parent corporation of the combined group. If there is no
43 such parent corporation, or the parent corporation is not a taxpayer,
44 then another member of the combined group that is a taxpayer may be
45 appointed as the designated agent.] Only the designated agent may act on
46 behalf of the members of the combined group for matters relating to the
47 combined report.
48 § 34. Paragraph 1 of subdivision (c) of section 40 of the tax law, as
49 added by section 4 of part A of chapter 68 of the laws of 2013, is
50 amended to read as follows:
51 (1) ascertaining the percentage that the average value of the busi-
52 ness's real and tangible personal property, whether owned or rented to
53 it, in the tax-free NY area in which the business was located during the
54 period covered by the taxpayer's report or return bears to the average
55 value of the business's real and tangible personal property, whether
56 owned or rented to it, within the state during such period; provided
S. 4209 80
1 that the term "value of the business's real and tangible personal prop-
2 erty" shall have the same meaning as such term has in [subparagraph one
3 of] paragraph (a) of subdivision [three] two of section [two hundred
4 ten] two hundred nine-B of this chapter; and
5 § 35. Clause (ii) of subparagraph (B) of paragraph 2 of subdivision
6 (d) of section 40 of the tax law, as added by section 4 of part A of
7 chapter 68 of the laws of 2013, is amended to read as follows:
8 (ii) For purposes of article nine-A of this chapter, the term "part-
9 ner's income from the partnership" means partnership items of income,
10 gain, loss and deduction, and New York modifications thereto, entering
11 into [entire net] business income [or minimum taxable income] and the
12 term "partner's entire income" means [entire net] business income [or
13 minimum taxable income], allocated within the state. For purposes of
14 article twenty-two of this chapter, the term "partner's income from the
15 partnership" means partnership items of income, gain, loss and
16 deduction, and New York modifications thereto, entering into New York
17 adjusted gross income, and the term "partner's entire income" means New
18 York adjusted gross income.
19 § 36. Subparagraph (C) of paragraph 2 of subdivision (d) of section 40
20 of the tax law, as added by section 4 of part A of chapter 68 of the
21 laws of 2013, is amended to read as follows:
22 (C) (i) Where the taxpayer is a shareholder of a New York S corpo-
23 ration that is a business located in a tax-free NY area, the sharehold-
24 er's tax factor shall be that portion of the amount determined in para-
25 graph one of this subdivision that is attributable to the income of the
26 S corporation. Such attribution shall be made in accordance with the
27 ratio of the shareholder's income from the S corporation allocated with-
28 in the state, entering into New York adjusted gross income, to the
29 shareholder's New York adjusted gross income, or in accordance with such
30 other methods as the commissioner may prescribe as providing an appor-
31 tionment that reasonably reflects the portion of the shareholder's tax
32 attributable to the income of such business. The income of the S corpo-
33 ration allocated within the state shall be determined by multiplying the
34 income of the S corporation by [the] a business allocation factor
35 [computed under paragraph (a) of subdivision three of section two
36 hundred ten of this article without regard to subparagraph ten of such
37 paragraph (a)] that shall be determined in clause (ii) of this subpara-
38 graph. In no event may the ratio so determined exceed 1.0.
39 (ii) The business allocation factor for purposes of this subparagraph
40 shall be computed by adding together the property factor specified in
41 subclause (I) of this clause, the wage factor specified in subclause
42 (II) of this clause and the apportionment factor determined under
43 section two hundred ten-A of this chapter and dividing by three.
44 (I) The property factor shall be determined by ascertaining the
45 percentage that the average value of the business's real and tangible
46 personal property, whether owned or rented to it, within the state
47 during the period covered by the taxpayer's report or return bears to
48 the average value of the business's real and tangible personal property,
49 whether owned or rented to it, within and without the state during such
50 period; provided that the term "value of the business's real and tangi-
51 ble personal property" shall have the same meaning as such term has in
52 paragraph (a) of subdivision two of section two hundred nine-B of this
53 chapter.
54 (II) The wage factor shall be determined by ascertaining the percent-
55 age that the total wages, salaries and other personal service compen-
56 sation, similarly computed, during such period of employees, except
S. 4209 81
1 general executive officers, employed at the business's location or
2 locations within the state, bears to the total wages, salaries and other
3 personal service compensation, similarly computed, during such period,
4 of all the business's employees within and without the state, except
5 general executive officers.
6 § 37. Subparagraph (B) of paragraph 3 of subdivision (d) of section 40
7 of the tax law, as added by section 4 of part A of chapter 68 of the
8 laws of 2013, is amended to read as follows:
9 (B) The term "income of the business located in a tax-free NY area"
10 means [entire net] business income [or minimum taxable income] calcu-
11 lated as if the taxpayer was filing separately and the term "combined
12 group's income" means [entire net] business income [or minimum taxable
13 income] as shown on the combined report, allocated within the state.
14 § 38. Paragraph 1 of subdivision (e) of section 40 of the tax law, as
15 added by section 4 of part A of chapter 68 of the laws of 2013, is
16 amended to read as follows:
17 (1) Article 9-A: section [210] 210-B, subdivision [47] 41.
18 § 39. Paragraph 1 of subsection (i) of section 660 of the tax law, as
19 amended by section 74 of part A of chapter 59 of the laws of 2014, is
20 amended to read as follows:
21 (1) Notwithstanding the provisions in subsection (a) of this section,
22 in the case of an eligible S corporation for which the election under
23 subsection (a) of this section is not in effect for the current taxable
24 year, the shareholders of an eligible S corporation are deemed to have
25 made that election effective for the eligible S corporation's entire
26 current taxable year, if the eligible S corporation's investment income
27 for the current taxable year is more than fifty percent of its federal
28 gross income for such year. In determining whether an eligible S [corpo-
29 ration's investment income] corporation is deemed to have made that
30 election, the [investment] income of a qualified subchapter S subsidiary
31 owned directly or indirectly by the eligible S corporation shall be
32 included with the income of the eligible S corporation.
33 § 40. This act shall take effect immediately and shall be deemed to be
34 in full force and effect on the same date as part A of chapter 59 of the
35 laws of 2014.
36 PART U
37 Section 1. Paragraph 33 of subdivision (a) of section 1115 of the tax
38 law, as added by section 99 of part A of chapter 389 of the laws of
39 1997, is amended to read as follows:
40 (33) Wine or wine product, and the bottles, corks, caps, and labels
41 used to package such wine or wine product, furnished by the official
42 agent of a farm winery, winery, wholesaler, or importer at a wine tast-
43 ing held in accordance with [section eighty of] the alcoholic beverage
44 control law to a customer or prospective customer who consumes such wine
45 at such wine tasting.
46 § 2. Section 1118 of the tax law is amended by adding a new subdivi-
47 sion (13) to read as follows:
48 (13) In respect to the use of the following items at a tasting held by
49 a licensed brewery, farm brewery, cider producer, farm cidery, distil-
50 lery or farm distillery in accordance with the alcoholic beverage
51 control law: (i) the alcoholic beverage or beverages authorized by the
52 alcoholic beverage control law to be furnished at no charge to a custom-
53 er or prospective customer at such tasting for consumption at such tast-
S. 4209 82
1 ing; and (ii) bottles, corks, caps and labels used to package such alco-
2 holic beverages.
3 § 3. This act shall take effect immediately, provided, however,
4 section two of this act shall take effect June 1, 2015 and shall apply
5 in accordance with the transition provisions of section 1106 and 1217 of
6 the tax law.
7 PART V
8 Section 1. Paragraph 22 of subdivision (b) of section 1101 of the tax
9 law, as amended by chapter 651 of the laws of 1999, is amended to read
10 as follows:
11 (22) (A) "Prepaid telephone calling service" means the right to exclu-
12 sively purchase telecommunication services, that must be paid for in
13 advance and enable the origination of one or more intrastate, interstate
14 or international telephone calls using an access number (such as a toll
15 free network access number) and/or authorization code, whether manually
16 or electronically dialed, for which payment to a vendor must be made in
17 advance, whether or not that right is represented by the transfer by the
18 vendor to the purchaser of an item of tangible personal property. Such
19 term includes a prepaid mobile calling service. In no event shall a
20 credit card constitute a prepaid telephone calling service. If the sale
21 or recharge of a prepaid telephone calling service does not take place
22 at the vendor's place of business, it shall be conclusively determined
23 to take place at the purchaser's shipping address or, if there is no
24 item shipped, at the purchaser's billing address or the location associ-
25 ated with the purchaser's mobile telephone number, or, if the vendor
26 does not have the address or the location associated with the customer's
27 mobile telephone number, at such address, as approved by the commission-
28 er, that reasonably reflects the customer's location at the time of the
29 sale or recharge.
30 (B) "Prepaid mobile calling service" means the right to use a commer-
31 cial mobile radio service, whether or not sold with other property or
32 services, that must be paid for in advance and is sold in predetermined
33 units or dollars that decline with use in a known amount, whether or not
34 that right is represented by or includes the transfer to the purchaser
35 of an item of tangible personal property.
36 § 2. This act shall take effect immediately.
37 PART W
38 Intentionally Omitted
39 PART X
40 Intentionally Omitted
41 PART Y
42 Intentionally Omitted
43 PART Z
S. 4209 83
1 Section 1. Subdivision (ee) of section 1115 of the tax law, as added
2 by chapter 306 of the laws of 2005, is amended to read as follows:
3 (ee) The following shall be exempt from tax under this article: (1)
4 Receipts from the retail sale of, and consideration given or contracted
5 to be given for, or for the use of, residential solar energy systems
6 equipment and [of] the service of installing such systems [shall be
7 exempt from tax under this article]. For the purposes of this subdivi-
8 sion, "residential solar energy systems equipment" shall mean an
9 arrangement or combination of components installed in a residence that
10 utilizes solar radiation to produce energy designed to provide heating,
11 cooling, hot water and/or electricity. Such arrangement or components
12 shall not include equipment that is part of a non-solar energy system or
13 which uses any sort of recreational facility or equipment as a storage
14 medium.
15 (2) Receipts from the sale of electricity by a person primarily
16 engaged in the sale of solar energy system equipment and/or electricity
17 generated by such equipment pursuant to a written agreement under which
18 such electricity is generated by residential solar energy system equip-
19 ment that is: (A) owned by a person other than the purchaser of such
20 electricity; (B) installed on residential property of the purchaser of
21 such electricity; and (C) used to provide heating, cooling, hot water or
22 electricity to such property.
23 § 2. Subdivision (ii) of section 1115 of the tax law, as amended by
24 chapter 13 of the laws of 2013, is amended to read as follows:
25 (ii) The following shall be exempt from tax under this article: (1)
26 Receipts from the retail sale of, and consideration given or contracted
27 to be given for, or for the use of, commercial solar energy systems
28 equipment and [of] the service of installing such systems [shall be
29 exempt from taxes imposed by sections eleven hundred five and eleven
30 hundred ten of this article]. For the purposes of this subdivision,
31 "commercial solar energy systems equipment" shall mean an arrangement or
32 combination of components installed upon non-residential premises that
33 utilize solar radiation to produce energy designed to provide heating,
34 cooling, hot water and/or electricity. Such arrangement or components
35 shall not include equipment that is part of a non-solar energy system.
36 (2) Receipts from the sale of electricity by a person primarily
37 engaged in the sale of solar energy system equipment and/or electricity
38 generated by such equipment pursuant to a written agreement under which
39 the electricity is generated by commercial solar energy system equipment
40 that is: (A) owned by a person other than the purchaser of such elec-
41 tricity; (B) installed on the non-residential premises of the purchaser
42 of such electricity; and (C) used to provide heating, cooling, hot water
43 or electricity to such premises.
44 § 3. Paragraphs 1 and 4 of subdivision (a) of section 1210 of the tax
45 law, paragraph 1 as amended by chapter 13 of the laws of 2012, and para-
46 graph 4 as amended by chapter 200 of the laws of 2009, are amended to
47 read as follows:
48 (1) Either, all of the taxes described in article twenty-eight of this
49 chapter, at the same uniform rate, as to which taxes all provisions of
50 the local laws, ordinances or resolutions imposing such taxes shall be
51 identical, except as to rate and except as otherwise provided, with the
52 corresponding provisions in such article twenty-eight, including the
53 definition and exemption provisions of such article, so far as the
54 provisions of such article twenty-eight can be made applicable to the
55 taxes imposed by such city or county and with such limitations and
56 special provisions as are set forth in this article. The taxes author-
S. 4209 84
1 ized under this subdivision may not be imposed by a city or county
2 unless the local law, ordinance or resolution imposes such taxes so as
3 to include all portions and all types of receipts, charges or rents,
4 subject to state tax under sections eleven hundred five and eleven
5 hundred ten of this chapter, except as otherwise provided. (i) Any local
6 law, ordinance or resolution enacted by any city of less than one
7 million or by any county or school district, imposing the taxes author-
8 ized by this subdivision, shall, notwithstanding any provision of law to
9 the contrary, exclude from the operation of such local taxes all sales
10 of tangible personal property for use or consumption directly and
11 predominantly in the production of tangible personal property, gas,
12 electricity, refrigeration or steam, for sale, by manufacturing, proc-
13 essing, generating, assembly, refining, mining or extracting; and all
14 sales of tangible personal property for use or consumption predominantly
15 either in the production of tangible personal property, for sale, by
16 farming or in a commercial horse boarding operation, or in both; and,
17 unless such city, county or school district elects otherwise, shall omit
18 the provision for credit or refund contained in clause six of subdivi-
19 sion (a) or subdivision (d) of section eleven hundred nineteen of this
20 chapter. (ii) Any local law, ordinance or resolution enacted by any
21 city, county or school district, imposing the taxes authorized by this
22 subdivision, shall omit the residential solar energy systems equipment
23 and electricity exemption provided for in subdivision (ee), the commer-
24 cial solar energy systems equipment and electricity exemption provided
25 for in subdivision (ii) and the clothing and footwear exemption provided
26 for in paragraph thirty of subdivision (a) of section eleven hundred
27 fifteen of this chapter, unless such city, county or school district
28 elects otherwise as to either such residential solar energy systems
29 equipment and electricity exemption, such commercial solar energy
30 systems equipment and electricity exemption or such clothing and foot-
31 wear exemption.
32 (4) Notwithstanding any other provision of law to the contrary, any
33 local law enacted by any city of one million or more that imposes the
34 taxes authorized by this subdivision (i) may omit the exception provided
35 in subparagraph (ii) of paragraph three of subdivision (c) of section
36 eleven hundred five of this chapter for receipts from laundering, dry-
37 cleaning, tailoring, weaving, pressing, shoe repairing and shoe shining;
38 (ii) may impose the tax described in paragraph six of subdivision (c) of
39 section eleven hundred five of this chapter at a rate in addition to the
40 rate prescribed by this section not to exceed two percent in multiples
41 of one-half of one percent; (iii) shall provide that the tax described
42 in paragraph six of subdivision (c) of section eleven hundred five of
43 this chapter does not apply to facilities owned and operated by the city
44 or an agency or instrumentality of the city or a public corporation the
45 majority of whose members are appointed by the chief executive officer
46 of the city or the legislative body of the city or both of them; (iv)
47 shall not include any tax on receipts from, or the use of, the services
48 described in paragraph seven of subdivision (c) of section eleven
49 hundred five of this chapter; (v) shall provide that, for purposes of
50 the tax described in subdivision (e) of section eleven hundred five of
51 this chapter, "permanent resident" means any occupant of any room or
52 rooms in a hotel for at least one hundred eighty consecutive days with
53 regard to the period of such occupancy; (vi) may omit the exception
54 provided in paragraph one of subdivision (f) of section eleven hundred
55 five of this chapter for charges to a patron for admission to, or use
56 of, facilities for sporting activities in which the patron is to be a
S. 4209 85
1 participant, such as bowling alleys and swimming pools; (vii) may
2 provide the clothing and footwear exemption in paragraph thirty of
3 subdivision (a) of section eleven hundred fifteen of this chapter, and,
4 notwithstanding any provision of subdivision (d) of this section to the
5 contrary, any local law providing for such exemption or repealing such
6 exemption, may go into effect on any one of the following dates: March
7 first, June first, September first or December first; (viii) shall omit
8 the exemption provided in paragraph forty-one of subdivision (a) of
9 section eleven hundred fifteen of this chapter; (ix) shall omit the
10 exemption provided in subdivision (c) of section eleven hundred fifteen
11 of this chapter insofar as it applies to fuel, gas, electricity, refrig-
12 eration and steam, and gas, electric, refrigeration and steam service of
13 whatever nature for use or consumption directly and exclusively in the
14 production of gas, electricity, refrigeration or steam; (x) shall omit,
15 unless such city elects otherwise, the provision for refund or credit
16 contained in clause six of subdivision (a) or in subdivision (d) of
17 section eleven hundred nineteen of this chapter; [and] (xi) shall
18 provide that section eleven hundred five-C of this chapter does not
19 apply to such taxes, and shall tax receipts from every sale, other than
20 sales for resale, of gas service or electric service of whatever nature,
21 including the transportation, transmission or distribution of gas or
22 electricity, even if sold separately, at the rate set forth in clause
23 one of subparagraph (i) of the opening paragraph of this section; (xii)
24 shall omit, unless such city elects otherwise, the exemption for resi-
25 dential solar energy systems equipment and electricity provided in
26 subdivision (ee) of section eleven hundred fifteen of this chapter; and
27 (xiii) shall omit, unless such city elects otherwise, the exemption for
28 commercial solar energy systems equipment and electricity provided in
29 subdivision (ii) of section eleven hundred fifteen of this chapter. Any
30 reference in this chapter or in any local law, ordinance or resolution
31 enacted pursuant to the authority of this article to former subdivisions
32 (n) or (p) of this section shall be deemed to be a reference to clauses
33 (xii) or (xiii) of this paragraph, respectively, and any such local law,
34 ordinance or resolution that provides the exemptions provided in such
35 former subdivisions (n) and/or (p) shall be deemed instead to provide
36 the exemptions provided in clauses (xii) and/or (xiii) of this
37 paragraph.
38 § 4. Paragraph 1 and subparagraph (i) of paragraph 3 of subdivision
39 (b) of section 1210 of the tax law, paragraph 1 as amended by section 36
40 of part S-1 of chapter 57 of the laws of 2009, and subparagraph (i) of
41 paragraph 3 as amended by section 3 of part B of chapter 35 of the laws
42 of 2006, are amended to read as follows:
43 (1) Or, one or more of the taxes described in subdivisions (b), (d),
44 (e) and (f) of section eleven hundred five of this chapter, at the same
45 uniform rate, including the transitional provisions in section eleven
46 hundred six of this chapter covering such taxes, but not the taxes
47 described in subdivisions (a) and (c) of section eleven hundred five of
48 this chapter. Provided, further, that where the tax described in subdi-
49 vision (b) of section eleven hundred five of this chapter is imposed,
50 the compensating use taxes described in clauses (E), (G) and (H) of
51 subdivision (a) of section eleven hundred ten of this chapter shall also
52 be imposed. Provided, further, that where the taxes described in subdi-
53 vision (b) of section eleven hundred five are imposed, such taxes shall
54 omit: (A) the provision for refund or credit contained in subdivision
55 (d) of section eleven hundred nineteen of this chapter with respect to
56 such taxes described in such subdivision (b) of section eleven hundred
S. 4209 86
1 five unless such city or county elects to provide such provision or, if
2 so elected, to repeal such provision; (B) the exemption provided in
3 paragraph two of subdivision (ee) of section eleven hundred fifteen of
4 this chapter unless such county or city elects otherwise; and (C) the
5 exemption provided in paragraph two of subdivision (ii) of section elev-
6 en hundred fifteen of this chapter, unless such county or city elects
7 otherwise.
8 (i) Notwithstanding any other provision of law to the contrary but not
9 with respect to cities subject to the provisions of section eleven
10 hundred eight of this chapter, any city or county, except a county whol-
11 ly contained within a city, may provide that the tax imposed, pursuant
12 to this subdivision, by such city or county on the sale, other than for
13 resale, of propane (except when sold in containers of less than one
14 hundred pounds), natural gas, electricity, steam and gas, electric and
15 steam services of whatever nature used for residential purposes and on
16 the use of gas or electricity used for residential purposes may be
17 imposed at a lower rate than the uniform local rate imposed pursuant to
18 the opening paragraph of this section, as long as such rate is one of
19 the rates authorized by such paragraph or such sale or use may be
20 exempted from such taxes. Provided, however, such lower rate must apply
21 to all such energy sources and services and at the same rate and no such
22 exemption, other than the exemption provided for in subdivision (ee) of
23 section eleven hundred fifteen of this chapter, if such exemption is
24 elected by such city or county, may be enacted unless such exemption
25 applies to all such energy sources and services.
26 § 4-a. Subdivision (d) of section 1210 of the tax law, as amended by
27 section 37 of part S-1 of chapter 57 of the laws of 2009, is amended to
28 read as follows:
29 (d) A local law, ordinance or resolution imposing any tax pursuant to
30 this section, increasing or decreasing the rate of such tax, repealing
31 or suspending such tax, exempting from such tax the energy sources and
32 services described in paragraph three of subdivision (a) or of subdivi-
33 sion (b) of this section or changing the rate of tax imposed on such
34 energy sources and services or providing for the credit or refund
35 described in clause six of subdivision (a) of section eleven hundred
36 nineteen of this chapter, or electing or repealing the exemption for
37 residential solar equipment and electricity in subdivision (ee) of
38 section eleven hundred fifteen of this article, or the exemption for
39 commercial solar equipment and electricity in subdivision (ii) of
40 section eleven hundred fifteen of this article must go into effect only
41 on one of the following dates: March first, June first, September first
42 or December first; provided, that a local law, ordinance or resolution
43 providing for the exemption described in paragraph thirty of subdivision
44 (a) of section eleven hundred fifteen of this chapter or repealing any
45 such exemption or a local law, ordinance or resolution providing for a
46 refund or credit described in subdivision (d) of section eleven hundred
47 nineteen of this chapter or repealing such provision so provided must go
48 into effect only on March first. No such local law, ordinance or resol-
49 ution shall be effective unless a certified copy of such law, ordinance
50 or resolution is mailed by registered or certified mail to the commis-
51 sioner at the commissioner's office in Albany at least ninety days prior
52 to the date it is to become effective. However, the commissioner may
53 waive and reduce such ninety-day minimum notice requirement to a mailing
54 of such certified copy by registered or certified mail within a period
55 of not less than thirty days prior to such effective date if the commis-
56 sioner deems such action to be consistent with the commissioner's duties
S. 4209 87
1 under section twelve hundred fifty of this article and the commissioner
2 acts by resolution. Where the restriction provided for in section twelve
3 hundred twenty-three of this article as to the effective date of a tax
4 and the notice requirement provided for therein are applicable and have
5 not been waived, the restriction and notice requirement in section
6 twelve hundred twenty-three of this article shall also apply.
7 § 5. Subdivisions (n) and (p) of section 1210 of the tax law are
8 REPEALED.
9 § 6. Subdivision (a) of section 1212 of the tax law, as amended by
10 section 40 of part S-1 of chapter 57 of the laws of 2009, is amended to
11 read as follows:
12 (a) Any school district which is coterminous with, partly within or
13 wholly within a city having a population of less than one hundred twen-
14 ty-five thousand, is hereby authorized and empowered, by majority vote
15 of the whole number of its school authorities, to impose for school
16 district purposes, within the territorial limits of such school district
17 and without discrimination between residents and nonresidents thereof,
18 the taxes described in subdivision (b) of section eleven hundred five
19 (but excluding the tax on prepaid telephone calling services) and the
20 taxes described in clauses (E) and (H) of subdivision (a) of section
21 eleven hundred ten, including the transitional provisions in subdivision
22 (b) of section eleven hundred six of this chapter, so far as such
23 provisions can be made applicable to the taxes imposed by such school
24 district and with such limitations and special provisions as are set
25 forth in this article, such taxes to be imposed at the rate of one-half,
26 one, one and one-half, two, two and one-half or three percent which rate
27 shall be uniform for all portions and all types of receipts and uses
28 subject to such taxes. In respect to such taxes, all provisions of the
29 resolution imposing them, except as to rate and except as otherwise
30 provided herein, shall be identical with the corresponding provisions in
31 such article twenty-eight of this chapter, including the applicable
32 definition and exemption provisions of such article, so far as the
33 provisions of such article twenty-eight of this chapter can be made
34 applicable to the taxes imposed by such school district and with such
35 limitations and special provisions as are set forth in this article. The
36 taxes described in subdivision (b) of section eleven hundred five (but
37 excluding the tax on prepaid telephone calling service) and clauses (E)
38 and (H) of subdivision (a) of section eleven hundred ten, including the
39 transitional provision in subdivision (b) of such section eleven hundred
40 six of this chapter, may not be imposed by such school district unless
41 the resolution imposes such taxes so as to include all portions and all
42 types of receipts and uses subject to tax under such subdivision (but
43 excluding the tax on prepaid telephone calling service) and clauses.
44 Provided, however, that, where a school district imposes such taxes,
45 such taxes shall omit the provision for refund or credit contained in
46 subdivision (d) of section eleven hundred nineteen of this chapter with
47 respect to such taxes described in such subdivision (b) of section elev-
48 en hundred five unless such school district elects to provide such
49 provision or, if so elected, to repeal such provision, and shall omit
50 the exemption provided in paragraph two of either subdivision (ee) or
51 subdivision (ii) of section eleven hundred fifteen of this chapter
52 unless such school district elects otherwise.
53 § 7. Section 1224 of the tax law is amended by adding a new subdivi-
54 sion (c-1) to read as follows:
55 (c-1) Notwithstanding any other provision of law: (1) Where a county
56 containing one or more cities with a population of less than one million
S. 4209 88
1 has elected the exemption for residential solar energy systems equipment
2 and electricity provided in subdivision (ee) of section eleven hundred
3 fifteen of this chapter, the exemption for commercial solar energy
4 systems equipment and electricity provided in subdivision (ii) of such
5 section eleven hundred fifteen, or both such exemptions, a city within
6 such county shall have the prior right to impose tax on such exempt
7 equipment and/or electricity to the extent of one half of the maximum
8 rates authorized under subdivision (a) of section twelve hundred ten of
9 this article;
10 (2) Where a city of less than one million has elected the exemption
11 for residential solar energy systems equipment and electricity provided
12 in subdivision (ee) of section eleven hundred fifteen of this chapter,
13 the exemption for commercial solar energy systems equipment and elec-
14 tricity provided in subdivision (ii) of such section eleven hundred
15 fifteen, or both such exemptions, the county in which such city is
16 located shall have the prior right to impose tax on such exempt equip-
17 ment and/or electricity to the extent of one half of the maximum rates
18 authorized under subdivision (a) of section twelve hundred ten of this
19 article.
20 § 8. This act shall take effect December 1, 2015 and shall apply in
21 accordance with the applicable transitional provisions in sections 1106
22 and 1217 of the tax law.
23 PART AA
24 Section 1. Subdivision (f) of section 301-c of the tax law, as amended
25 by section 23 of part K of chapter 61 of the laws of 2011, is amended to
26 read as follows:
27 (f) Motor fuel and highway diesel motor fuel used for farm production.
28 No more than one thousand five hundred gallons of motor fuel and no more
29 than four thousand five hundred gallons of highway diesel motor fuel
30 purchased in this state in a thirty-day period or a greater amount which
31 has been given prior clearance by the commissioner, by a consumer for
32 use or consumption directly and exclusively in the production for sale
33 of tangible personal property by farming, but only if all of such motor
34 fuel or highway diesel motor fuel is delivered on the farm site and is
35 consumed other than on the public highways of this state (except for the
36 use of the public highway to reach adjacent farmlands). This reimburse-
37 ment to such purchaser who used such motor fuel or highway diesel motor
38 fuel in the manner specified in this subdivision may be claimed only
39 where, (i) the tax imposed pursuant to this article has been paid with
40 respect to such motor fuel or highway diesel motor fuel and the entire
41 amount of such tax has been absorbed by such purchaser, and (ii) such
42 purchaser possesses documentary proof satisfactory to the commissioner
43 evidencing the absorption by it of the entire amount of the tax imposed
44 pursuant to this article. Provided, however, that the commissioner shall
45 require such documentary proof to qualify for any reimbursement of tax
46 provided by this subdivision as the commissioner deems appropriate. The
47 commissioner is hereby empowered to make such provisions as deemed
48 necessary to define the procedures for granting prior clearance for
49 purchases of more than one thousand five hundred gallons of motor fuel
50 or four thousand five hundred gallons of highway diesel motor fuel in a
51 thirty-day period.
52 § 2. This act shall take effect immediately.
53 PART BB
S. 4209 89
1 Section 1. Subsection (b) of section 952 of the tax law, as amended by
2 section 2 of part X of chapter 59 of the laws of 2014, is amended to
3 read as follows:
4 (b) Computation of tax. The tax imposed by this section shall be
5 computed on the deceased resident's New York taxable estate as follows:
6 [In the case of decedents dying on or after April 1, 2014 and before
7 April 1, 2015]
8 If the New York taxable estate is: The tax is:
9 Not over $500,000 3.06% of taxable estate
10 Over $500,000 but not over $1,000,000 $15,300 plus 5.0% of excess over
11 $500,000
12 Over $1,000,000 but not over $1,500,000 $40,300 plus 5.5% of excess over
13 $1,000,000
14 Over $1,500,000 but not over $2,100,000 $67,800 plus 6.5% of excess over
15 $1,500,000
16 Over $2,100,000 but not over $2,600,000 $106,800 plus 8.0% of excess
17 over $2,100,000
18 Over $2,600,000 but not over $3,100,000 $146,800 plus 8.8% of excess over
19 $2,600,000
20 Over $3,100,000 but not over $3,600,000 $190,800 plus 9.6% of excess over
21 $3,100,000
22 Over $3,600,000 but not over $4,100,000 $238,800 plus 10.4% of excess
23 over $3,600,000
24 Over $4,100,000 but not over $5,100,000 $290,800 plus 11.2% of excess
25 over $4,100,000
26 Over $5,100,000 but not over $6,100,000 $402,800 plus 12.0% of excess
27 over $5,100,000
28 Over $6,100,000 but not over $7,100,000 $522,800 plus 12.8% of excess
29 over $6,100,000
30 Over $7,100,000 but not over $8,100,000 $650,800 plus 13.6% of excess
31 over $7,100,000
32 Over $8,100,000 but not over $9,100,000 $786,800 plus 14.4% of excess
33 over $8,100,000
34 Over $9,100,000 but not over $930,800 plus 15.2% of excess over
35 $10,100,000 $9,100,000
36 Over $10,100,000 $1,082,800 plus 16.0% of excess
37 over $10,100,000
38 § 2. Paragraph 3 of subsection (a) of section 954 of the tax law, as
39 added by section 3 of part X of chapter 59 of the laws of 2014, is
40 amended to read as follows:
41 (3) Increased by the amount of any taxable gift under section 2503 of
42 the internal revenue code not otherwise included in the decedent's
43 federal gross estate, made during the three year period ending on the
44 decedent's date of death, but not including any gift made: [(1)] (A)
45 when the decedent was not a resident of New York state; [(2)] or (B)
46 before April first, two thousand fourteen[; or (3)]. Provided, however
47 that this paragraph shall not apply to the estate of a decedent dying on
48 or after January first, two thousand nineteen.
49 § 3. Subsection (b) of section 960 of the tax law, as amended by
50 section 5 of part X of chapter 59 of the laws of 2014, is amended to
51 read as follows:
52 (b) Computation of tax.--The tax imposed under subsection (a) shall be
53 the same as the tax that would be due, if the decedent had died a resi-
54 dent, under subsection (a) of section nine hundred fifty-two, except
55 that for purposes of computing the tax under subsection (b) of section
56 nine hundred fifty-two, "New York taxable estate" shall not include the
S. 4209 90
1 value of, or any deduction allowable under the Internal Revenue Code
2 related to, any intangible personal property otherwise includible in the
3 deceased individual's New York gross estate, and shall not include the
4 amount of any gift unless such gift consists of real or tangible
5 personal property having an actual situs in New York state or intangible
6 personal property employed in a business, trade or profession carried on
7 in this state.
8 § 4. Paragraph 1 of subsection (c) of section 952 of the tax law, as
9 added by section 2 of part X of chapter 59 of the laws of 2014, is
10 amended to read as follows:
11 (1) A credit of the applicable credit amount shall be allowed against
12 the tax imposed by this section as provided in this subsection. In the
13 case of a decedent whose New York taxable estate is less than or equal
14 to the basic exclusion amount, the applicable credit amount shall be the
15 amount of tax that would be due under subsection (b) of this section on
16 such decedent's New York taxable estate. In the case of a decedent whose
17 New York taxable estate exceeds the basic exclusion amount by an amount
18 that is less than or equal to [five] ten percent of such amount, the
19 applicable credit amount shall be the amount of tax that would be due
20 under subsection (b) of this section if the amount on which the tax is
21 to be computed were equal to the basic exclusion amount multiplied by
22 one minus a fraction, the numerator of which is the decedent's New York
23 taxable estate minus the basic exclusion amount, and the denominator of
24 which is [five] ten percent of the basic exclusion amount. Provided,
25 however, that the credit allowed by this subsection shall not exceed the
26 tax imposed by this section, and no credit shall be allowed to the
27 estate of any decedent whose New York taxable estate exceeds one hundred
28 [five] ten percent of the basic exclusion amount.
29 § 5. This act shall take effect immediately and shall be deemed to
30 have been in full force and effect on and after April 1, 2014; provided
31 that section four of this act shall take effect April 1, 2015 and shall
32 apply to estates of decedents dying on and after that date.
33 PART CC
34 Intentionally Omitted
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] 2016.
42 § 2. This act shall take effect immediately.
43 PART EE
44 Intentionally Omitted
45 PART FF
S. 4209 91
1 Section 1. Paragraph (a) of subdivision 1 of section 18 of chapter 266
2 of the laws of 1986, amending the civil practice law and rules and other
3 laws relating to malpractice and professional medical conduct, as
4 amended by section 18 of part B of chapter 60 of the laws of 2014, is
5 amended to read as follows:
6 (a) The superintendent of [insurance] financial services and the
7 commissioner of health or their designee shall, from funds available in
8 the hospital excess liability pool created pursuant to subdivision 5 of
9 this section, purchase a policy or policies for excess insurance cover-
10 age, as authorized by paragraph 1 of subsection (e) of section 5502 of
11 the insurance law; or from an insurer, other than an insurer described
12 in section 5502 of the insurance law, duly authorized to write such
13 coverage and actually writing medical malpractice insurance in this
14 state; or shall purchase equivalent excess coverage in a form previously
15 approved by the superintendent of [insurance] financial services for
16 purposes of providing equivalent excess coverage in accordance with
17 section 19 of chapter 294 of the laws of 1985, for medical or dental
18 malpractice occurrences between July 1, 1986 and June 30, 1987, between
19 July 1, 1987 and June 30, 1988, between July 1, 1988 and June 30, 1989,
20 between July 1, 1989 and June 30, 1990, between July 1, 1990 and June
21 30, 1991, between July 1, 1991 and June 30, 1992, between July 1, 1992
22 and June 30, 1993, between July 1, 1993 and June 30, 1994, between July
23 1, 1994 and June 30, 1995, between July 1, 1995 and June 30, 1996,
24 between July 1, 1996 and June 30, 1997, between July 1, 1997 and June
25 30, 1998, between July 1, 1998 and June 30, 1999, between July 1, 1999
26 and June 30, 2000, between July 1, 2000 and June 30, 2001, between July
27 1, 2001 and June 30, 2002, between July 1, 2002 and June 30, 2003,
28 between July 1, 2003 and June 30, 2004, between July 1, 2004 and June
29 30, 2005, between July 1, 2005 and June 30, 2006, between July 1, 2006
30 and June 30, 2007, between July 1, 2007 and June 30, 2008, between July
31 1, 2008 and June 30, 2009, between July 1, 2009 and June 30, 2010,
32 between July 1, 2010 and June 30, 2011, between July 1, 2011 and June
33 30, 2012, between July 1, 2012 and June 30, 2013, between July 1, 2013
34 and June 30, 2014, [and] between July 1, 2014 and June 30, 2015, and
35 between July 1, 2015 and June 30, 2016 or reimburse the hospital where
36 the hospital purchases equivalent excess coverage as defined in subpara-
37 graph (i) of paragraph (a) of subdivision 1-a of this section for
38 medical or dental malpractice occurrences between July 1, 1987 and June
39 30, 1988, between July 1, 1988 and June 30, 1989, between July 1, 1989
40 and June 30, 1990, between July 1, 1990 and June 30, 1991, between July
41 1, 1991 and June 30, 1992, between July 1, 1992 and June 30, 1993,
42 between July 1, 1993 and June 30, 1994, between July 1, 1994 and June
43 30, 1995, between July 1, 1995 and June 30, 1996, between July 1, 1996
44 and June 30, 1997, between July 1, 1997 and June 30, 1998, between July
45 1, 1998 and June 30, 1999, between July 1, 1999 and June 30, 2000,
46 between July 1, 2000 and June 30, 2001, between July 1, 2001 and June
47 30, 2002, between July 1, 2002 and June 30, 2003, between July 1, 2003
48 and June 30, 2004, between July 1, 2004 and June 30, 2005, between July
49 1, 2005 and June 30, 2006, between July 1, 2006 and June 30, 2007,
50 between July 1, 2007 and June 30, 2008, between July 1, 2008 and June
51 30, 2009, between July 1, 2009 and June 30, 2010, between July 1, 2010
52 and June 30, 2011, between July 1, 2011 and June 30, 2012, between July
53 1, 2012 and June 30, 2013, between July 1, 2013 and June 30, 2014, [and]
54 between July 1, 2014 and June 30, 2015, and between July 1, 2015 and
55 June 30, 2016 for physicians or dentists certified as eligible for each
56 such period or periods pursuant to subdivision 2 of this section by a
S. 4209 92
1 general hospital licensed pursuant to article 28 of the public health
2 law; provided that no single insurer shall write more than fifty percent
3 of the total excess premium for a given policy year; and provided,
4 however, that such eligible physicians or dentists must have in force an
5 individual policy, from an insurer licensed in this state of primary
6 malpractice insurance coverage in amounts of no less than one million
7 three hundred thousand dollars for each claimant and three million nine
8 hundred thousand dollars for all claimants under that policy during the
9 period of such excess coverage for such occurrences or be endorsed as
10 additional insureds under a hospital professional liability policy which
11 is offered through a voluntary attending physician ("channeling")
12 program previously permitted by the superintendent of [insurance] finan-
13 cial services during the period of such excess coverage for such occur-
14 rences. During such period, such policy for excess coverage or such
15 equivalent excess coverage shall, when combined with the physician's or
16 dentist's primary malpractice insurance coverage or coverage provided
17 through a voluntary attending physician ("channeling") program, total an
18 aggregate level of two million three hundred thousand dollars for each
19 claimant and six million nine hundred thousand dollars for all claimants
20 from all such policies with respect to occurrences in each of such years
21 provided, however, if the cost of primary malpractice insurance coverage
22 in excess of one million dollars, but below the excess medical malprac-
23 tice insurance coverage provided pursuant to this act, exceeds the rate
24 of nine percent per annum, then the required level of primary malprac-
25 tice insurance coverage in excess of one million dollars for each claim-
26 ant shall be in an amount of not less than the dollar amount of such
27 coverage available at nine percent per annum; the required level of such
28 coverage for all claimants under that policy shall be in an amount not
29 less than three times the dollar amount of coverage for each claimant;
30 and excess coverage, when combined with such primary malpractice insur-
31 ance coverage, shall increase the aggregate level for each claimant by
32 one million dollars and three million dollars for all claimants; and
33 provided further, that, with respect to policies of primary medical
34 malpractice coverage that include occurrences between April 1, 2002 and
35 June 30, 2002, such requirement that coverage be in amounts no less than
36 one million three hundred thousand dollars for each claimant and three
37 million nine hundred thousand dollars for all claimants for such occur-
38 rences shall be effective April 1, 2002.
39 § 2. Subdivision 3 of section 18 of chapter 266 of the laws of 1986,
40 amending the civil practice law and rules and other laws relating to
41 malpractice and professional medical conduct, as amended by section 19
42 of part B of chapter 60 of the laws of 2014, is amended to read as
43 follows:
44 (3)(a) The superintendent of [insurance] financial services shall
45 determine and certify to each general hospital and to the commissioner
46 of health the cost of excess malpractice insurance for medical or dental
47 malpractice occurrences between July 1, 1986 and June 30, 1987, between
48 July 1, 1988 and June 30, 1989, between July 1, 1989 and June 30, 1990,
49 between July 1, 1990 and June 30, 1991, between July 1, 1991 and June
50 30, 1992, between July 1, 1992 and June 30, 1993, between July 1, 1993
51 and June 30, 1994, between July 1, 1994 and June 30, 1995, between July
52 1, 1995 and June 30, 1996, between July 1, 1996 and June 30, 1997,
53 between July 1, 1997 and June 30, 1998, between July 1, 1998 and June
54 30, 1999, between July 1, 1999 and June 30, 2000, between July 1, 2000
55 and June 30, 2001, between July 1, 2001 and June 30, 2002, between July
56 1, 2002 and June 30, 2003, between July 1, 2003 and June 30, 2004,
S. 4209 93
1 between July 1, 2004 and June 30, 2005, between July 1, 2005 and June
2 30, 2006, between July 1, 2006 and June 30, 2007, between July 1, 2007
3 and June 30, 2008, between July 1, 2008 and June 30, 2009, between July
4 1, 2009 and June 30, 2010, between July 1, 2010 and June 30, 2011,
5 between July 1, 2011 and June 30, 2012, between July 1, 2012 and June
6 30, 2013, and between July 1, 2013 and June 30, 2014, [and] between July
7 1, 2014 and June 30, 2015, and between July 1, 2015 and June 30, 2016
8 allocable to each general hospital for physicians or dentists certified
9 as eligible for purchase of a policy for excess insurance coverage by
10 such general hospital in accordance with subdivision 2 of this section,
11 and may amend such determination and certification as necessary.
12 (b) The superintendent of [insurance] financial services shall deter-
13 mine and certify to each general hospital and to the commissioner of
14 health the cost of excess malpractice insurance or equivalent excess
15 coverage for medical or dental malpractice occurrences between July 1,
16 1987 and June 30, 1988, between July 1, 1988 and June 30, 1989, between
17 July 1, 1989 and June 30, 1990, between July 1, 1990 and June 30, 1991,
18 between July 1, 1991 and June 30, 1992, between July 1, 1992 and June
19 30, 1993, between July 1, 1993 and June 30, 1994, between July 1, 1994
20 and June 30, 1995, between July 1, 1995 and June 30, 1996, between July
21 1, 1996 and June 30, 1997, between July 1, 1997 and June 30, 1998,
22 between July 1, 1998 and June 30, 1999, between July 1, 1999 and June
23 30, 2000, between July 1, 2000 and June 30, 2001, between July 1, 2001
24 and June 30, 2002, between July 1, 2002 and June 30, 2003, between July
25 1, 2003 and June 30, 2004, between July 1, 2004 and June 30, 2005,
26 between July 1, 2005 and June 30, 2006, between July 1, 2006 and June
27 30, 2007, between July 1, 2007 and June 30, 2008, between July 1, 2008
28 and June 30, 2009, between July 1, 2009 and June 30, 2010, between July
29 1, 2010 and June 30, 2011, between July 1, 2011 and June 30, 2012,
30 between July 1, 2012 and June 30, 2013, between July 1, 2013 and June
31 30, 2014, [and] between July 1, 2014 and June 30, 2015, and between July
32 1, 2015 and June 30, 2016 allocable to each general hospital for physi-
33 cians or dentists certified as eligible for purchase of a policy for
34 excess insurance coverage or equivalent excess coverage by such general
35 hospital in accordance with subdivision 2 of this section, and may amend
36 such determination and certification as necessary. The superintendent of
37 [insurance] financial services shall determine and certify to each
38 general hospital and to the commissioner of health the ratable share of
39 such cost allocable to the period July 1, 1987 to December 31, 1987, to
40 the period January 1, 1988 to June 30, 1988, to the period July 1, 1988
41 to December 31, 1988, to the period January 1, 1989 to June 30, 1989, to
42 the period July 1, 1989 to December 31, 1989, to the period January 1,
43 1990 to June 30, 1990, to the period July 1, 1990 to December 31, 1990,
44 to the period January 1, 1991 to June 30, 1991, to the period July 1,
45 1991 to December 31, 1991, to the period January 1, 1992 to June 30,
46 1992, to the period July 1, 1992 to December 31, 1992, to the period
47 January 1, 1993 to June 30, 1993, to the period July 1, 1993 to December
48 31, 1993, to the period January 1, 1994 to June 30, 1994, to the period
49 July 1, 1994 to December 31, 1994, to the period January 1, 1995 to June
50 30, 1995, to the period July 1, 1995 to December 31, 1995, to the period
51 January 1, 1996 to June 30, 1996, to the period July 1, 1996 to December
52 31, 1996, to the period January 1, 1997 to June 30, 1997, to the period
53 July 1, 1997 to December 31, 1997, to the period January 1, 1998 to June
54 30, 1998, to the period July 1, 1998 to December 31, 1998, to the period
55 January 1, 1999 to June 30, 1999, to the period July 1, 1999 to December
56 31, 1999, to the period January 1, 2000 to June 30, 2000, to the period
S. 4209 94
1 July 1, 2000 to December 31, 2000, to the period January 1, 2001 to June
2 30, 2001, to the period July 1, 2001 to June 30, 2002, to the period
3 July 1, 2002 to June 30, 2003, to the period July 1, 2003 to June 30,
4 2004, to the period July 1, 2004 to June 30, 2005, to the period July 1,
5 2005 and June 30, 2006, to the period July 1, 2006 and June 30, 2007, to
6 the period July 1, 2007 and June 30, 2008, to the period July 1, 2008
7 and June 30, 2009, to the period July 1, 2009 and June 30, 2010, to the
8 period July 1, 2010 and June 30, 2011, to the period July 1, 2011 and
9 June 30, 2012, to the period July 1, 2012 and June 30, 2013, to the
10 period July 1, 2013 and June 30, 2014, [and] to the period July 1, 2014
11 and June 30, 2015, and to the period July 1, 2015 and June 30, 2016.
12 § 3. Paragraphs (a), (b), (c), (d) and (e) of subdivision 8 of section
13 18 of chapter 266 of the laws of 1986, amending the civil practice law
14 and rules and other laws relating to malpractice and professional
15 medical conduct, as amended by section 20 of part B of chapter 60 of the
16 laws of 2014, are amended to read as follows:
17 (a) To the extent funds available to the hospital excess liability
18 pool pursuant to subdivision 5 of this section as amended, and pursuant
19 to section 6 of part J of chapter 63 of the laws of 2001, as may from
20 time to time be amended, which amended this subdivision, are insuffi-
21 cient to meet the costs of excess insurance coverage or equivalent
22 excess coverage for coverage periods during the period July 1, 1992 to
23 June 30, 1993, during the period July 1, 1993 to June 30, 1994, during
24 the period July 1, 1994 to June 30, 1995, during the period July 1, 1995
25 to June 30, 1996, during the period July 1, 1996 to June 30, 1997,
26 during the period July 1, 1997 to June 30, 1998, during the period July
27 1, 1998 to June 30, 1999, during the period July 1, 1999 to June 30,
28 2000, during the period July 1, 2000 to June 30, 2001, during the period
29 July 1, 2001 to October 29, 2001, during the period April 1, 2002 to
30 June 30, 2002, during the period July 1, 2002 to June 30, 2003, during
31 the period July 1, 2003 to June 30, 2004, during the period July 1, 2004
32 to June 30, 2005, during the period July 1, 2005 to June 30, 2006,
33 during the period July 1, 2006 to June 30, 2007, during the period July
34 1, 2007 to June 30, 2008, during the period July 1, 2008 to June 30,
35 2009, during the period July 1, 2009 to June 30, 2010, during the period
36 July 1, 2010 to June 30, 2011, during the period July 1, 2011 to June
37 30, 2012, during the period July 1, 2012 to June 30, 2013, during the
38 period July 1, 2013 to June 30, 2014, [and] during the period July 1,
39 2014 to June 30, 2015, and during the period July 1, 2015 and June 30,
40 2016 allocated or reallocated in accordance with paragraph (a) of subdi-
41 vision 4-a of this section to rates of payment applicable to state
42 governmental agencies, each physician or dentist for whom a policy for
43 excess insurance coverage or equivalent excess coverage is purchased for
44 such period shall be responsible for payment to the provider of excess
45 insurance coverage or equivalent excess coverage of an allocable share
46 of such insufficiency, based on the ratio of the total cost of such
47 coverage for such physician to the sum of the total cost of such cover-
48 age for all physicians applied to such insufficiency.
49 (b) Each provider of excess insurance coverage or equivalent excess
50 coverage covering the period July 1, 1992 to June 30, 1993, or covering
51 the period July 1, 1993 to June 30, 1994, or covering the period July 1,
52 1994 to June 30, 1995, or covering the period July 1, 1995 to June 30,
53 1996, or covering the period July 1, 1996 to June 30, 1997, or covering
54 the period July 1, 1997 to June 30, 1998, or covering the period July 1,
55 1998 to June 30, 1999, or covering the period July 1, 1999 to June 30,
56 2000, or covering the period July 1, 2000 to June 30, 2001, or covering
S. 4209 95
1 the period July 1, 2001 to October 29, 2001, or covering the period
2 April 1, 2002 to June 30, 2002, or covering the period July 1, 2002 to
3 June 30, 2003, or covering the period July 1, 2003 to June 30, 2004, or
4 covering the period July 1, 2004 to June 30, 2005, or covering the peri-
5 od July 1, 2005 to June 30, 2006, or covering the period July 1, 2006 to
6 June 30, 2007, or covering the period July 1, 2007 to June 30, 2008, or
7 covering the period July 1, 2008 to June 30, 2009, or covering the peri-
8 od July 1, 2009 to June 30, 2010, or covering the period July 1, 2010 to
9 June 30, 2011, or covering the period July 1, 2011 to June 30, 2012, or
10 covering the period July 1, 2012 to June 30, 2013, or covering the peri-
11 od July 1, 2013 to June 30, 2014, or covering the period July 1, 2014 to
12 June 30, 2015, or covering the period July 1, 2015 to June 30, 2016
13 shall notify a covered physician or dentist by mail, mailed to the
14 address shown on the last application for excess insurance coverage or
15 equivalent excess coverage, of the amount due to such provider from such
16 physician or dentist for such coverage period determined in accordance
17 with paragraph (a) of this subdivision. Such amount shall be due from
18 such physician or dentist to such provider of excess insurance coverage
19 or equivalent excess coverage in a time and manner determined by the
20 superintendent of [insurance] financial services.
21 (c) If a physician or dentist liable for payment of a portion of the
22 costs of excess insurance coverage or equivalent excess coverage cover-
23 ing the period July 1, 1992 to June 30, 1993, or covering the period
24 July 1, 1993 to June 30, 1994, or covering the period July 1, 1994 to
25 June 30, 1995, or covering the period July 1, 1995 to June 30, 1996, or
26 covering the period July 1, 1996 to June 30, 1997, or covering the peri-
27 od July 1, 1997 to June 30, 1998, or covering the period July 1, 1998 to
28 June 30, 1999, or covering the period July 1, 1999 to June 30, 2000, or
29 covering the period July 1, 2000 to June 30, 2001, or covering the peri-
30 od July 1, 2001 to October 29, 2001, or covering the period April 1,
31 2002 to June 30, 2002, or covering the period July 1, 2002 to June 30,
32 2003, or covering the period July 1, 2003 to June 30, 2004, or covering
33 the period July 1, 2004 to June 30, 2005, or covering the period July 1,
34 2005 to June 30, 2006, or covering the period July 1, 2006 to June 30,
35 2007, or covering the period July 1, 2007 to June 30, 2008, or covering
36 the period July 1, 2008 to June 30, 2009, or covering the period July 1,
37 2009 to June 30, 2010, or covering the period July 1, 2010 to June 30,
38 2011, or covering the period July 1, 2011 to June 30, 2012, or covering
39 the period July 1, 2012 to June 30, 2013, or covering the period July 1,
40 2013 to June 30, 2014, or covering the period July 1, 2014 to June 30,
41 2015, or covering the period July 1, 2015 to June 30, 2016 determined in
42 accordance with paragraph (a) of this subdivision fails, refuses or
43 neglects to make payment to the provider of excess insurance coverage or
44 equivalent excess coverage in such time and manner as determined by the
45 superintendent of [insurance] financial services pursuant to paragraph
46 (b) of this subdivision, excess insurance coverage or equivalent excess
47 coverage purchased for such physician or dentist in accordance with this
48 section for such coverage period shall be cancelled and shall be null
49 and void as of the first day on or after the commencement of a policy
50 period where the liability for payment pursuant to this subdivision has
51 not been met.
52 (d) Each provider of excess insurance coverage or equivalent excess
53 coverage shall notify the superintendent of [insurance] financial
54 services and the commissioner of health or their designee of each physi-
55 cian and dentist eligible for purchase of a policy for excess insurance
56 coverage or equivalent excess coverage covering the period July 1, 1992
S. 4209 96
1 to June 30, 1993, or covering the period July 1, 1993 to June 30, 1994,
2 or covering the period July 1, 1994 to June 30, 1995, or covering the
3 period July 1, 1995 to June 30, 1996, or covering the period July 1,
4 1996 to June 30, 1997, or covering the period July 1, 1997 to June 30,
5 1998, or covering the period July 1, 1998 to June 30, 1999, or covering
6 the period July 1, 1999 to June 30, 2000, or covering the period July 1,
7 2000 to June 30, 2001, or covering the period July 1, 2001 to October
8 29, 2001, or covering the period April 1, 2002 to June 30, 2002, or
9 covering the period July 1, 2002 to June 30, 2003, or covering the peri-
10 od July 1, 2003 to June 30, 2004, or covering the period July 1, 2004 to
11 June 30, 2005, or covering the period July 1, 2005 to June 30, 2006, or
12 covering the period July 1, 2006 to June 30, 2007, or covering the peri-
13 od July 1, 2007 to June 30, 2008, or covering the period July 1, 2008 to
14 June 30, 2009, or covering the period July 1, 2009 to June 30, 2010, or
15 covering the period July 1, 2010 to June 30, 2011, or covering the peri-
16 od July 1, 2011 to June 30, 2012, or covering the period July 1, 2012 to
17 June 30, 2013, or covering the period July 1, 2013 to June 30, 2014, or
18 covering the period July 1, 2014 to June 30, 2015, or covering the peri-
19 od July 1, 2015 to June 30, 2016 that has made payment to such provider
20 of excess insurance coverage or equivalent excess coverage in accordance
21 with paragraph (b) of this subdivision and of each physician and dentist
22 who has failed, refused or neglected to make such payment.
23 (e) A provider of excess insurance coverage or equivalent excess
24 coverage shall refund to the hospital excess liability pool any amount
25 allocable to the period July 1, 1992 to June 30, 1993, and to the period
26 July 1, 1993 to June 30, 1994, and to the period July 1, 1994 to June
27 30, 1995, and to the period July 1, 1995 to June 30, 1996, and to the
28 period July 1, 1996 to June 30, 1997, and to the period July 1, 1997 to
29 June 30, 1998, and to the period July 1, 1998 to June 30, 1999, and to
30 the period July 1, 1999 to June 30, 2000, and to the period July 1, 2000
31 to June 30, 2001, and to the period July 1, 2001 to October 29, 2001,
32 and to the period April 1, 2002 to June 30, 2002, and to the period July
33 1, 2002 to June 30, 2003, and to the period July 1, 2003 to June 30,
34 2004, and to the period July 1, 2004 to June 30, 2005, and to the period
35 July 1, 2005 to June 30, 2006, and to the period July 1, 2006 to June
36 30, 2007, and to the period July 1, 2007 to June 30, 2008, and to the
37 period July 1, 2008 to June 30, 2009, and to the period July 1, 2009 to
38 June 30, 2010, and to the period July 1, 2010 to June 30, 2011, and to
39 the period July 1, 2011 to June 30, 2012, and to the period July 1, 2012
40 to June 30, 2013, and to the period July 1, 2013 to June 30, 2014, and
41 to the period July 1, 2014 to June 30, 2015, and to the period July 1,
42 2015 to June 30, 2016 received from the hospital excess liability pool
43 for purchase of excess insurance coverage or equivalent excess coverage
44 covering the period July 1, 1992 to June 30, 1993, and covering the
45 period July 1, 1993 to June 30, 1994, and covering the period July 1,
46 1994 to June 30, 1995, and covering the period July 1, 1995 to June 30,
47 1996, and covering the period July 1, 1996 to June 30, 1997, and cover-
48 ing the period July 1, 1997 to June 30, 1998, and covering the period
49 July 1, 1998 to June 30, 1999, and covering the period July 1, 1999 to
50 June 30, 2000, and covering the period July 1, 2000 to June 30, 2001,
51 and covering the period July 1, 2001 to October 29, 2001, and covering
52 the period April 1, 2002 to June 30, 2002, and covering the period July
53 1, 2002 to June 30, 2003, and covering the period July 1, 2003 to June
54 30, 2004, and covering the period July 1, 2004 to June 30, 2005, and
55 covering the period July 1, 2005 to June 30, 2006, and covering the
56 period July 1, 2006 to June 30, 2007, and covering the period July 1,
S. 4209 97
1 2007 to June 30, 2008, and covering the period July 1, 2008 to June 30,
2 2009, and covering the period July 1, 2009 to June 30, 2010, and cover-
3 ing the period July 1, 2010 to June 30, 2011, and covering the period
4 July 1, 2011 to June 30, 2012, and covering the period July 1, 2012 to
5 June 30, 2013, and covering the period July 1, 2013 to June 30, 2014,
6 and covering the period July 1, 2014 to June 30, 2015, and covering the
7 period July 1, 2015 to June 30, 2016 for a physician or dentist where
8 such excess insurance coverage or equivalent excess coverage is
9 cancelled in accordance with paragraph (c) of this subdivision.
10 § 4. Section 40 of chapter 266 of the laws of 1986, amending the civil
11 practice law and rules and other laws relating to malpractice and
12 professional medical conduct, as amended by section 21 of part B of
13 chapter 60 of the laws of 2014, is amended to read as follows:
14 § 40. The superintendent of [insurance] financial services shall
15 establish rates for policies providing coverage for physicians and
16 surgeons medical malpractice for the periods commencing July 1, 1985 and
17 ending June 30, [2015] 2016; provided, however, that notwithstanding any
18 other provision of law, the superintendent shall not establish or
19 approve any increase in rates for the period commencing July 1, 2009 and
20 ending June 30, 2010. The superintendent shall direct insurers to estab-
21 lish segregated accounts for premiums, payments, reserves and investment
22 income attributable to such premium periods and shall require periodic
23 reports by the insurers regarding claims and expenses attributable to
24 such periods to monitor whether such accounts will be sufficient to meet
25 incurred claims and expenses. On or after July 1, 1989, the superinten-
26 dent shall impose a surcharge on premiums to satisfy a projected defi-
27 ciency that is attributable to the premium levels established pursuant
28 to this section for such periods; provided, however, that such annual
29 surcharge shall not exceed eight percent of the established rate until
30 July 1, [2015] 2016, at which time and thereafter such surcharge shall
31 not exceed twenty-five percent of the approved adequate rate, and that
32 such annual surcharges shall continue for such period of time as shall
33 be sufficient to satisfy such deficiency. The superintendent shall not
34 impose such surcharge during the period commencing July 1, 2009 and
35 ending June 30, 2010. On and after July 1, 1989, the surcharge
36 prescribed by this section shall be retained by insurers to the extent
37 that they insured physicians and surgeons during the July 1, 1985
38 through June 30, [2015] 2016 policy periods; in the event and to the
39 extent physicians and surgeons were insured by another insurer during
40 such periods, all or a pro rata share of the surcharge, as the case may
41 be, shall be remitted to such other insurer in accordance with rules and
42 regulations to be promulgated by the superintendent. Surcharges
43 collected from physicians and surgeons who were not insured during such
44 policy periods shall be apportioned among all insurers in proportion to
45 the premium written by each insurer during such policy periods; if a
46 physician or surgeon was insured by an insurer subject to rates estab-
47 lished by the superintendent during such policy periods, and at any time
48 thereafter a hospital, health maintenance organization, employer or
49 institution is responsible for responding in damages for liability aris-
50 ing out of such physician's or surgeon's practice of medicine, such
51 responsible entity shall also remit to such prior insurer the equivalent
52 amount that would then be collected as a surcharge if the physician or
53 surgeon had continued to remain insured by such prior insurer. In the
54 event any insurer that provided coverage during such policy periods is
55 in liquidation, the property/casualty insurance security fund shall
56 receive the portion of surcharges to which the insurer in liquidation
S. 4209 98
1 would have been entitled. The surcharges authorized herein shall be
2 deemed to be income earned for the purposes of section 2303 of the
3 insurance law. The superintendent, in establishing adequate rates and
4 in determining any projected deficiency pursuant to the requirements of
5 this section and the insurance law, shall give substantial weight,
6 determined in his discretion and judgment, to the prospective antic-
7 ipated effect of any regulations promulgated and laws enacted and the
8 public benefit of stabilizing malpractice rates and minimizing rate
9 level fluctuation during the period of time necessary for the develop-
10 ment of more reliable statistical experience as to the efficacy of such
11 laws and regulations affecting medical, dental or podiatric malpractice
12 enacted or promulgated in 1985, 1986, by this act and at any other time.
13 Notwithstanding any provision of the insurance law, rates already estab-
14 lished and to be established by the superintendent pursuant to this
15 section are deemed adequate if such rates would be adequate when taken
16 together with the maximum authorized annual surcharges to be imposed for
17 a reasonable period of time whether or not any such annual surcharge has
18 been actually imposed as of the establishment of such rates.
19 § 5. Section 5 and subdivisions (a) and (e) of section 6 of part J of
20 chapter 63 of the laws of 2001, amending chapter 20 of the laws of 2001
21 amending the military law and other laws relating to making appropri-
22 ations for the support of government, as amended by section 22 of part B
23 of chapter 60 of the laws of 2014, are amended to read as follows:
24 § 5. The superintendent of [insurance] financial services and the
25 commissioner of health shall determine, no later than June 15, 2002,
26 June 15, 2003, June 15, 2004, June 15, 2005, June 15, 2006, June 15,
27 2007, June 15, 2008, June 15, 2009, June 15, 2010, June 15, 2011, June
28 15, 2012, June 15, 2013, June 15, 2014, [and] June 15, 2015, and June
29 15, 2016 the amount of funds available in the hospital excess liability
30 pool, created pursuant to section 18 of chapter 266 of the laws of 1986,
31 and whether such funds are sufficient for purposes of purchasing excess
32 insurance coverage for eligible participating physicians and dentists
33 during the period July 1, 2001 to June 30, 2002, or July 1, 2002 to June
34 30, 2003, or July 1, 2003 to June 30, 2004, or July 1, 2004 to June 30,
35 2005, or July 1, 2005 to June 30, 2006, or July 1, 2006 to June 30,
36 2007, or July 1, 2007 to June 30, 2008, or July 1, 2008 to June 30,
37 2009, or July 1, 2009 to June 30, 2010, or July 1, 2010 to June 30,
38 2011, or July 1, 2011 to June 30, 2012, or July 1, 2012 to June 30,
39 2013, or July 1, 2013 to June 30, 2014, or July 1, 2014 to June 30,
40 2015, or July 1, 2015 to June 30, 2016, as applicable.
41 (a) This section shall be effective only upon a determination, pursu-
42 ant to section five of this act, by the superintendent of [insurance]
43 financial services and the commissioner of health, and a certification
44 of such determination to the state director of the budget, the chair of
45 the senate committee on finance and the chair of the assembly committee
46 on ways and means, that the amount of funds in the hospital excess
47 liability pool, created pursuant to section 18 of chapter 266 of the
48 laws of 1986, is insufficient for purposes of purchasing excess insur-
49 ance coverage for eligible participating physicians and dentists during
50 the period July 1, 2001 to June 30, 2002, or July 1, 2002 to June 30,
51 2003, or July 1, 2003 to June 30, 2004, or July 1, 2004 to June 30,
52 2005, or July 1, 2005 to June 30, 2006, or July 1, 2006 to June 30,
53 2007, or July 1, 2007 to June 30, 2008, or July 1, 2008 to June 30,
54 2009, or July 1, 2009 to June 30, 2010, or July 1, 2010 to June 30,
55 2011, or July 1, 2011 to June 30, 2012, or July 1, 2012 to June 30,
S. 4209 99
1 2013, or July 1, 2013 to June 30, 2014, or July 1, 2014 to June 30,
2 2015, or July 1, 2015 to June 30, 2016, as applicable.
3 (e) The commissioner of health shall transfer for deposit to the
4 hospital excess liability pool created pursuant to section 18 of chapter
5 266 of the laws of 1986 such amounts as directed by the superintendent
6 of [insurance] financial services for the purchase of excess liability
7 insurance coverage for eligible participating physicians and dentists
8 for the policy year July 1, 2001 to June 30, 2002, or July 1, 2002 to
9 June 30, 2003, or July 1, 2003 to June 30, 2004, or July 1, 2004 to June
10 30, 2005, or July 1, 2005 to June 30, 2006, or July 1, 2006 to June 30,
11 2007, as applicable, and the cost of administering the hospital excess
12 liability pool for such applicable policy year, pursuant to the program
13 established in chapter 266 of the laws of 1986, as amended, no later
14 than June 15, 2002, June 15, 2003, June 15, 2004, June 15, 2005, June
15 15, 2006, June 15, 2007, June 15, 2008, June 15, 2009, June 15, 2010,
16 June 15, 2011, June 15, 2012, June 15, 2013, June 15, 2014, [and] June
17 15, 2015, and June 15, 2016, as applicable.
18 § 6. Notwithstanding any law, rule or regulation to the contrary, only
19 physicians or dentists who were eligible, and for whom the superinten-
20 dent of financial services and the commissioner of health, or their
21 designee, purchased, with funds available in the hospital excess liabil-
22 ity pool, a full or partial policy for excess coverage or equivalent
23 excess coverage for the coverage period ending the thirtieth of June,
24 two thousand fifteen, shall be eligible to apply for such coverage for
25 the coverage period beginning the first of July, two thousand fifteen;
26 provided, however, if the total number of physicians or dentists for
27 whom such excess coverage or equivalent excess coverage was purchased
28 for the policy year ending the thirtieth of June, two thousand fifteen
29 exceeds the total number of physicians or dentists certified as eligible
30 for the coverage period beginning the first of July, two thousand
31 fifteen, then the general hospitals may certify additional eligible
32 physicians or dentists in a number equal to such general hospital's
33 proportional share of the total number of physicians or dentists for
34 whom excess coverage or equivalent excess coverage was purchased with
35 funds available in the hospital excess liability pool as of the thirti-
36 eth of June, two thousand fifteen, as applied to the difference between
37 the number of eligible physicians or dentists for whom a policy for
38 excess coverage or equivalent excess coverage was purchased for the
39 coverage period ending the thirtieth of June, two thousand fifteen and
40 the number of such eligible physicians or dentists who have applied for
41 excess coverage or equivalent excess for the coverage period beginning
42 the first of July, two thousand fifteen.
43 § 7. Intentionally omitted.
44 § 8. This act shall take effect immediately.
45 PART GG
46 Section 1. The public authorities law is amended by adding a new
47 section 2858 to read as follows:
48 § 2858. Clearance of past-due tax liabilities for state or local
49 authority grant applicants. 1. As used in this section:
50 a. "Applicant" means any applicant, agent or affiliated person of
51 either of them that makes an application for a grant.
52 b. "Grant" means any state monies awarded by a state or local authori-
53 ty to an applicant for any state or local public purpose.
S. 4209 100
1 c. "Local authority" means (i) a public authority or public benefit
2 corporation created by or existing under this chapter or any other law
3 of the state of New York that has the power to make grants or loan funds
4 of state monies and whose members do not hold a civil office of the
5 state, and whose members either are not appointed by the governor or are
6 appointed by the governor specifically upon the recommendation of the
7 local government or governments; (ii) a not-for-profit corporation
8 affiliated with, sponsored by, or created by a county, city, town or
9 village government; (iii) a land bank corporation created pursuant to
10 article sixteen of the not-for-profit corporation law, including subsid-
11 iaries and affiliates of such local authority; or (iv) housing authori-
12 ties created pursuant to the public housing law.
13 d. "Past-due tax liabilities" means a past-due legally enforceable
14 debt within the meaning of subdivision one of section one hundred seven-
15 ty-one-w of the tax law in an amount that is equal to five hundred
16 dollars or more.
17 e. "State authority" means a public authority or public benefit corpo-
18 ration created by or existing under this chapter or any other law of the
19 state of New York that has the power to make grants or loan funds of
20 state monies and has one or more of its members appointed by the gover-
21 nor or who serve as member by virtue of holding a civil office of the
22 state, other than an interstate or international authority or public
23 benefit corporation, including subsidiaries and affiliates of such
24 public authority or public benefit corporation.
25 2. Notwithstanding any other provision of law, any state authority or
26 local authority that processes an application for a grant shall require,
27 as a condition to receive such grant, the receipt of a tax clearance
28 that such applicant has no past-due tax liabilities pursuant to section
29 one hundred seventy-one-w of the tax law.
30 3. The applicant shall be required to provide any information deemed
31 necessary by the state authority or the local authority and the depart-
32 ment of taxation and finance to efficiently and accurately provide a
33 clearance of no past-due tax liabilities, and the failure by the appli-
34 cant to provide such information shall render the application incom-
35 plete.
36 4. If the state authority or the local authority receives notification
37 that past-due tax liabilities are owed by the applicant, the state
38 authority or the local authority, as the case may be, shall deny the
39 grant application and shall notify the applicant to contact the depart-
40 ment of taxation and finance to resolve the past-due tax liabilities and
41 that no grant may be issued until the tax liabilities are resolved. Any
42 period of time that is determined according to the provisions of this
43 section or the tax law shall commence to run from the date of notifica-
44 tion to the applicant that the tax clearance was denied.
45 § 2. The tax law is amended by adding a new section 171-w to read as
46 follows:
47 § 171-w. Enforcement of delinquent tax liabilities through tax clear-
48 ances. (1) For the purposes of this section, the term "tax liabilities"
49 shall mean any tax, surcharge, or fee administered by the commissioner,
50 or any penalty or interest owed by an individual or entity. The term
51 "past-due tax liabilities" means any unpaid tax liabilities that have
52 become fixed and final such that the taxpayer no longer has any right to
53 administrative or judicial review. The term "government entity" means
54 the state of New York, or any of its agencies, political subdivisions,
55 instrumentalities, public corporations (including a public corporation
S. 4209 101
1 created pursuant to agreement or compact with another state or Canada),
2 or combination thereof.
3 (2) The commissioner, or his or her designee, shall cooperate with any
4 government entity that is required by law or has elected to require tax
5 clearances to establish procedures by which the department shall receive
6 a tax clearance request and transmit such tax clearance to the govern-
7 ment entity, and any other procedures deemed necessary to carry out the
8 provisions of this section. These procedures shall, to the extent prac-
9 ticable, require secure electronic communication between the department
10 and the requesting government entity for the transmission of tax clear-
11 ance requests to the department and transmission of tax clearances to
12 the requesting entity. Notwithstanding any other law to the contrary, a
13 government entity shall be authorized to share any applicant data or
14 information with the department that is necessary to ensure the proper
15 matching of the applicant to the tax records maintained by the depart-
16 ment.
17 (3) Upon receipt of a tax clearance request, the department shall
18 examine its records to determine whether the subject of the tax clear-
19 ance request has past-due tax liabilities equal to or in excess of the
20 dollar threshold applicable for such tax clearance request or, where no
21 threshold has been established by law or otherwise, equal to or in
22 excess of five hundred dollars. When a tax clearance request so
23 requires, the department shall also determine whether (i) the subject of
24 such request has complied with applicable tax return filing requirements
25 for each of the past three years; and/or (ii) whether a subject of such
26 request that is an individual or entity that is a person required to
27 register pursuant to section one thousand one hundred thirty-four of
28 this chapter is registered pursuant to such section. The department
29 shall deny a tax clearance if it determines that the subject of a tax
30 clearance request has past-due tax liabilities equal to or in excess of
31 the applicable threshold or, when the tax clearance request so requires,
32 has not complied with applicable return filing and/or registration
33 requirements.
34 (4) If a tax clearance is denied, the government entity that requested
35 the clearance shall provide notice to the applicant to contact the
36 department. Such notice shall be made by first class mail with a Certif-
37 icate of Mailing and a copy of such notice also shall be provided to the
38 department. When the applicant contacts the department, the department
39 shall inform the applicant of the basis for the denial of the tax clear-
40 ance and shall also inform the applicant (i) that a tax clearance denied
41 due to past-due tax liabilities may be issued once the taxpayer fully
42 satisfies past-due tax liabilities or makes payment arrangements satis-
43 factory to the commissioner; (ii) that a tax clearance denied due to
44 failure to file tax returns may be issued once the applicant has satis-
45 fied the applicable return filing requirements; (iii) that a tax clear-
46 ance denied for failure to register pursuant to section one thousand one
47 hundred thirty-four of this chapter may be issued once the applicant has
48 registered pursuant to such section; and (iv) the grounds for challeng-
49 ing the denial of a tax clearance listed in subdivision five of this
50 section.
51 (5) (a) Notwithstanding any other provision of law, and except as
52 specifically provided herein, an applicant denied a tax clearance shall
53 have no right to commence a court action or proceeding or seek any other
54 legal recourse against the department or the government entity related
55 to the denial of a tax clearance by the department.
S. 4209 102
1 (b) An applicant seeking to challenge the denial of a tax clearance
2 must protest to the department or the division of tax appeals no later
3 than sixty days from the date of the notification to the applicant that
4 the tax clearance was denied. An applicant may challenge a department
5 finding of past-due tax liabilities only on the grounds that (i) the
6 individual or entity denied the tax clearance is not the individual or
7 entity with the past-due tax liabilities at issue; (ii) the past-due tax
8 liabilities were satisfied; (iii) the applicant's wages are being
9 garnished for the payment of child support or combined child and spousal
10 support pursuant to an income execution issued pursuant to section five
11 thousand two hundred forty-one or five thousand two hundred forty-two of
12 the civil practice law and rules or another state's income withholding
13 order as authorized under part five of article five-B of the family
14 court act, or garnished by the department for the payment of the past-
15 due tax liabilities at issue; or (iv) the applicant is making child
16 support payments or combined child and spousal support payments pursuant
17 to a satisfactory payment arrangement under section one hundred eleven-b
18 of the social services law with a support collection unit or otherwise
19 making periodic payments in accordance with section four hundred forty
20 of the family court act. An applicant may challenge a department finding
21 of failure to comply with tax return filing requirements only on the
22 grounds that all required tax returns have been filed for each of the
23 past three years.
24 (c) Nothing in this subdivision is intended to limit any applicant
25 from seeking relief from joint and several liability pursuant to section
26 six hundred fifty-four of this chapter, to the extent that he or she is
27 eligible pursuant to that section, or establishing to the department
28 that the enforcement of the underlying tax liabilities has been stayed
29 by the filing of a petition pursuant to the Bankruptcy Code of 1978
30 (Title Eleven of the United States Code).
31 (6) Notwithstanding any other provision of law, the department may
32 exchange with a government entity any data or information that, in the
33 discretion of the commissioner, is necessary for the implementation of a
34 tax clearance requirement. However, no government entity may re-disclose
35 this information to any other entity or person, other than for the
36 purpose of informing the applicant that a required tax clearance has
37 been denied, unless otherwise permitted by law.
38 (7) Except as otherwise provided in this section, the activities to
39 collect past-due tax liabilities undertaken by the department pursuant
40 to this section shall not in any way limit, restrict or impair the
41 department from exercising any other authority to collect or enforce tax
42 liabilities under any other applicable provision of law.
43 (8) Except as otherwise provided in this section, the provisions of
44 this section are not applicable to the tax clearance required by section
45 171-v of this article.
46 § 3. This act shall take effect immediately; provided, however, that
47 the department of taxation and finance and any state or local public
48 authority may work to execute the necessary procedures and technical
49 changes to support the tax clearance process as described in sections
50 one and two of this act before the effective date of this act.
51 PART HH
52 Section 1. The tax law is amended by adding a new section 171-z to
53 read as follows:
S. 4209 103
1 § 171-z. Reciprocal tax collection agreements with other claimant
2 states. (1) The commissioner shall have the authority to enter into
3 agreements with claimant states to collect and pay over to claimant
4 states, taxes owed to claimant states by New York taxpayers and to
5 certify and request that claimant states collect and pay over taxes owed
6 to New York by taxpayers residing in claimant states. For purposes of
7 this section, the term "claimant state" shall mean any other state in
8 the United States or the District of Columbia that allows the commis-
9 sioner, in cases where a taxpayer in another state owes taxes to New
10 York state, to certify and request that the other state collect and pay
11 such collected taxes to New York state; the term "taxes" shall mean any
12 amount of tax imposed under the laws of New York or a claimant state,
13 due and payable to New York or a claimant state, including additions to
14 tax for penalties and interest, that has become fixed and final such
15 that the taxpayer no longer has any right to administrative or judicial
16 review; the term "taxpayer" shall mean any individual, corporation,
17 partnership, limited liability partnership or company, partner, member,
18 manager, estate, trust, fiduciary or entity, who or which has been iden-
19 tified by New York or a claimant state under this section as owing taxes
20 to New York or a claimant state.
21 (2) The reciprocal tax collection agreements may include the following
22 provisions:
23 (a) Upon the request and certification of a claimant state to the
24 commissioner that a taxpayer owes taxes to such claimant state, the
25 commissioner may, pursuant to the authority under this section, collect
26 such taxes in the same manner that the commissioner can collect taxes
27 due and payable to New York state, and shall pay over such collected
28 amount to the claimant state in accordance with the provisions of this
29 section. The commissioner shall not collect such taxes unless the laws
30 of the claimant state (i) allow the commissioner, in cases where a
31 taxpayer owes taxes to New York state, to certify and request the claim-
32 ant state collect such taxes owed to New York state, and (ii) provide
33 for the payment of such collected amount to New York state.
34 (b) Such certification shall include (i) the full name and address of
35 the taxpayer; (ii) the taxpayer's social security number or federal
36 employer identification number; (iii) the amount of the tax for the
37 taxable period sought to be collected, including a detailed statement
38 for each taxable period showing tax, interest and penalty; (iv) a state-
39 ment whether the taxpayer filed a tax return with the claimant state for
40 such tax, and, if so, whether such tax return was filed under protest;
41 and (v) a statement that any administrative or judicial remedies, or
42 both, have been exhausted or have lapsed and the amount of tax is legal-
43 ly enforceable under the laws of the claimant state against the taxpay-
44 er.
45 (c) Upon receipt by the commissioner of the required certification,
46 the commissioner shall notify the taxpayer by first-class mail with
47 certificate of mailing to the taxpayer's last known address that the
48 commissioner has received a request from the claimant state to collect
49 taxes from the taxpayer, that the taxpayer has the right to protest the
50 collection of such taxes, that failure to file a protest in accordance
51 with paragraph (d) of this subdivision shall constitute a waiver of any
52 claim against New York state regarding the collection of such taxes and
53 that the amount, upon collection, will be paid over to the claimant
54 state. Sixty days after the date on which it is mailed, a notice under
55 this subdivision shall be final except only for such amounts as to which
S. 4209 104
1 the taxpayer has filed, as provided in paragraph (d) of this subdivi-
2 sion, a written protest with the commissioner.
3 (d) Any taxpayer notified in accordance with paragraph (c) of this
4 subdivision may, on or before the sixtieth day after the mailing of such
5 notice by the commissioner, protest the collection of all or a portion
6 of such taxes by filing with the claimant state and providing a copy to
7 the commissioner a written protest in which the taxpayer shall set forth
8 the grounds on which the protest is based. If a timely protest is filed,
9 the commissioner shall refrain from collecting such taxes and shall send
10 a copy of the protest to the claimant state for a determination of the
11 protest on its merits in accordance with the laws of the claimant state.
12 (e) The commissioner may enter into agreements with claimant states
13 that (i) relate to procedures and methods to be employed by a claimant
14 state with respect to the operation of this section; (ii) safeguard
15 against the disclosure or inappropriate use of any information that
16 identifies, directly or indirectly, a particular taxpayer obtained or
17 maintained pursuant to this section; (iii) establish a minimum threshold
18 for the amount of taxes owed by a taxpayer to a claimant state that
19 would trigger the operation of this section; (iv) provide that each
20 claimant state shall bear the costs that are incurred by it under such
21 reciprocal agreements; (v) set the commencement and termination date of
22 such reciprocal agreements; and (vi) provide that each claimant state
23 shall agree that, upon payment to a claimant state of an amount
24 collected under this section, the commissioner and the state of New York
25 shall be discharged of any obligation or liability to a taxpayer and a
26 claimant state with respect to the amounts collected from the taxpayer
27 and paid to the claimant state pursuant to this section. Any action for
28 refund of those amounts shall lie solely against the claimant state.
29 (3) For purposes of making payment of any taxes that are collected by
30 the commissioner on behalf of any claimant state under reciprocal agree-
31 ments, the office of the state comptroller, upon request by the commis-
32 sioner, is authorized to pay the amount collected from the reciprocal
33 tax collection revenue fund established pursuant to section
34 ninety-nine-w of the state finance law to which such taxes are credited.
35 (4) Notwithstanding other provisions of this chapter, the commissioner
36 is authorized to release to the claimant state any specific taxpayer
37 information necessary for purposes of implementing and administering an
38 agreement entered into between the claimant state and New York state
39 under this section.
40 § 2. The state finance law is amended by adding a new section 99-w to
41 read as follows:
42 § 99-w. Reciprocal tax collection revenue fund. 1. There is hereby
43 established in the joint custody of the state comptroller and the
44 commissioner of taxation and finance a special revenue fund known as the
45 "reciprocal tax collection revenue fund".
46 2. All monies received by the reciprocal tax collection revenue fund
47 pursuant to reciprocal tax collection agreements with other states
48 entered into pursuant to section one hundred seventy-one-z of the tax
49 law shall be deposited to the exclusive credit of such fund. Said monies
50 shall be kept separate and shall not be commingled with any other monies
51 in the custody of the comptroller or the commissioner of taxation and
52 finance.
53 3. The monies in said revenue fund shall be retained until the commis-
54 sioner of taxation and finance requests the state comptroller make a
55 payment of taxes collected by the commissioner of taxation and finance
56 on behalf of a claimant state under a reciprocal tax collection agree-
S. 4209 105
1 ment entered into pursuant to section one hundred seventy-one-z of the
2 tax law. The state comptroller shall be authorized to pay a claimant
3 state the amount collected from the reciprocal tax collection revenue
4 fund.
5 § 3. This act shall take effect immediately.
6 PART II
7 Intentionally Omitted
8 PART JJ
9 Intentionally Omitted
10 PART KK
11 Intentionally Omitted
12 PART LL
13 Section 1. Subdivision 2 of section 136 of the social services law, as
14 amended by section 24 of part B of chapter 436 of the laws of 1997, is
15 amended to read as follows:
16 2. All communications and information relating to a person receiving
17 public assistance or care obtained by any social services official,
18 service officer, or employee in the course of his or her work shall be
19 considered confidential and, except as otherwise provided in this
20 section, shall be disclosed only to the commissioner, or his or her
21 authorized representative, the commissioner of labor, or his or her
22 authorized representative, the commissioner of health, or his or her
23 authorized representative, the commissioner of taxation and finance, or
24 his or her authorized representative, the welfare inspector general, or
25 his or her authorized representative, the county board of supervisors,
26 city council, town board or other board or body authorized and required
27 to appropriate funds for public assistance and care in and for such
28 county, city or town or its authorized representative or, by authority
29 of the county, city or town social services official, to a person or
30 agency considered entitled to such information. Nothing herein shall
31 preclude a social services official from reporting to an appropriate
32 agency or official, including law enforcement agencies or officials,
33 known or suspected instances of physical or mental injury, sexual abuse
34 or exploitation, sexual contact with a minor or negligent treatment or
35 maltreatment of a child of which the official becomes aware in the
36 administration of public assistance and care nor shall it preclude
37 communication with the federal immigration and naturalization service
38 regarding the immigration status of any individual.
39 § 2. This act shall take effect immediately.
40 PART MM
41 Section 1. Clause (H) of subparagraph (ii) of paragraph 1 of subdivi-
42 sion b of section 1612 of the tax law, as amended by section 1 of part
43 BB of chapter 59 of the laws of 2014, is amended to read as follows:
S. 4209 106
1 (H) notwithstanding clauses (A), (B), (C), (D), (E), (F) and (G) of
2 this subparagraph, the track operator of a vendor track shall be eligi-
3 ble for a vendor's capital award of up to four percent of the total
4 revenue wagered at the vendor track after payout for prizes pursuant to
5 this chapter, which shall be used exclusively for capital project
6 investments to improve the facilities of the vendor track which promote
7 or encourage increased attendance at the video lottery gaming facility
8 including, but not limited to hotels, other lodging facilities, enter-
9 tainment facilities, retail facilities, dining facilities, events
10 arenas, parking garages and other improvements that enhance facility
11 amenities; provided that such capital investments shall be approved by
12 the division, in consultation with the state racing and wagering board,
13 and that such vendor track demonstrates that such capital expenditures
14 will increase patronage at such vendor track's facilities and increase
15 the amount of revenue generated to support state education programs. The
16 annual amount of such vendor's capital awards that a vendor track shall
17 be eligible to receive shall be limited to two million five hundred
18 thousand dollars, except for Aqueduct racetrack, for which there shall
19 be no vendor's capital awards. Except for tracks having less than one
20 thousand one hundred video gaming machines, and except for a vendor
21 track located west of State Route 14 from Sodus Point to the Pennsylva-
22 nia border within New York, each track operator shall be required to
23 co-invest an amount of capital expenditure equal to its cumulative
24 vendor's capital award. For all tracks, except for Aqueduct racetrack,
25 the amount of any vendor's capital award that is not used during any one
26 year period may be carried over into subsequent years ending before
27 April first, two thousand [fifteen] sixteen. Any amount attributable to
28 a capital expenditure approved prior to April first, two thousand
29 [fifteen] sixteen and completed before April first, two thousand [seven-
30 teen] eighteen; or approved prior to April first, two thousand [nine-
31 teen] twenty and completed before April first, two thousand [twenty-one]
32 twenty-two for a vendor track located west of State Route 14 from Sodus
33 Point to the Pennsylvania border within New York, shall be eligible to
34 receive the vendor's capital award. In the event that a vendor track's
35 capital expenditures, approved by the division prior to April first, two
36 thousand [fifteen] sixteen and completed prior to April first, two thou-
37 sand [seventeen] eighteen, exceed the vendor track's cumulative capital
38 award during the five year period ending April first, two thousand
39 [fifteen] sixteen, the vendor shall continue to receive the capital
40 award after April first, two thousand [fifteen] sixteen until such
41 approved capital expenditures are paid to the vendor track subject to
42 any required co-investment. In no event shall any vendor track that
43 receives a vendor fee pursuant to clause (F) or (G) of this subparagraph
44 be eligible for a vendor's capital award under this section. Any opera-
45 tor of a vendor track which has received a vendor's capital award,
46 choosing to divest the capital improvement toward which the award was
47 applied, prior to the full depreciation of the capital improvement in
48 accordance with generally accepted accounting principles, shall reim-
49 burse the state in amounts equal to the total of any such awards. Any
50 capital award not approved for a capital expenditure at a video lottery
51 gaming facility by April first, two thousand [fifteen] sixteen shall be
52 deposited into the state lottery fund for education aid; and
53 § 2. This act shall take effect immediately.
54 PART NN
S. 4209 107
1 Section 1. Paragraph (a) of subdivision 1 of section 1003 of the
2 racing, pari-mutuel wagering and breeding law, as amended by section 1
3 of part AA of chapter 59 of the laws of 2014, is amended to read as
4 follows:
5 (a) Any racing association or corporation or regional off-track
6 betting corporation, authorized to conduct pari-mutuel wagering under
7 this chapter, desiring to display the simulcast of horse races on which
8 pari-mutuel betting shall be permitted in the manner and subject to the
9 conditions provided for in this article may apply to the commission for
10 a license so to do. Applications for licenses shall be in such form as
11 may be prescribed by the commission and shall contain such information
12 or other material or evidence as the commission may require. No license
13 shall be issued by the commission authorizing the simulcast transmission
14 of thoroughbred races from a track located in Suffolk county. The fee
15 for such licenses shall be five hundred dollars per simulcast facility
16 and for account wagering licensees that do not operate either a simul-
17 cast facility that is open to the public within the state of New York or
18 a licensed racetrack within the state, twenty thousand dollars per year
19 payable by the licensee to the commission for deposit into the general
20 fund. Except as provided in this section, the commission shall not
21 approve any application to conduct simulcasting into individual or group
22 residences, homes or other areas for the purposes of or in connection
23 with pari-mutuel wagering. The commission may approve simulcasting into
24 residences, homes or other areas to be conducted jointly by one or more
25 regional off-track betting corporations and one or more of the follow-
26 ing: a franchised corporation, thoroughbred racing corporation or a
27 harness racing corporation or association; provided (i) the simulcasting
28 consists only of those races on which pari-mutuel betting is authorized
29 by this chapter at one or more simulcast facilities for each of the
30 contracting off-track betting corporations which shall include wagers
31 made in accordance with section one thousand fifteen, one thousand
32 sixteen and one thousand seventeen of this article; provided further
33 that the contract provisions or other simulcast arrangements for such
34 simulcast facility shall be no less favorable than those in effect on
35 January first, two thousand five; (ii) that each off-track betting
36 corporation having within its geographic boundaries such residences,
37 homes or other areas technically capable of receiving the simulcast
38 signal shall be a contracting party; (iii) the distribution of revenues
39 shall be subject to contractual agreement of the parties except that
40 statutory payments to non-contracting parties, if any, may not be
41 reduced; provided, however, that nothing herein to the contrary shall
42 prevent a track from televising its races on an irregular basis primari-
43 ly for promotional or marketing purposes as found by the commission. For
44 purposes of this paragraph, the provisions of section one thousand thir-
45 teen of this article shall not apply. Any agreement authorizing an
46 in-home simulcasting experiment commencing prior to May fifteenth, nine-
47 teen hundred ninety-five, may, and all its terms, be extended until June
48 thirtieth, two thousand [fifteen] sixteen; provided, however, that any
49 party to such agreement may elect to terminate such agreement upon
50 conveying written notice to all other parties of such agreement at least
51 forty-five days prior to the effective date of the termination, via
52 registered mail. Any party to an agreement receiving such notice of an
53 intent to terminate, may request the commission to mediate between the
54 parties new terms and conditions in a replacement agreement between the
55 parties as will permit continuation of an in-home experiment until June
56 thirtieth, two thousand [fifteen] sixteen; and (iv) no in-home simul-
S. 4209 108
1 casting in the thoroughbred special betting district shall occur without
2 the approval of the regional thoroughbred track.
3 § 2. Subparagraph (iii) of paragraph d of subdivision 3 of section
4 1007 of the racing, pari-mutuel wagering and breeding law, as amended by
5 section 2 of part AA of chapter 59 of the laws of 2014, is amended to
6 read as follows:
7 (iii) Of the sums retained by a receiving track located in Westchester
8 county on races received from a franchised corporation, for the period
9 commencing January first, two thousand eight and continuing through June
10 thirtieth, two thousand [fifteen] sixteen, the amount used exclusively
11 for purses to be awarded at races conducted by such receiving track
12 shall be computed as follows: of the sums so retained, two and one-half
13 percent of the total pools. Such amount shall be increased or decreased
14 in the amount of fifty percent of the difference in total commissions
15 determined by comparing the total commissions available after July twen-
16 ty-first, nineteen hundred ninety-five to the total commissions that
17 would have been available to such track prior to July twenty-first,
18 nineteen hundred ninety-five.
19 § 3. The opening paragraph of subdivision 1 of section 1014 of the
20 racing, pari-mutuel wagering and breeding law, as amended by section 3
21 of part AA of chapter 59 of the laws of 2014, is amended to read as
22 follows:
23 The provisions of this section shall govern the simulcasting of races
24 conducted at thoroughbred tracks located in another state or country on
25 any day during which a franchised corporation is conducting a race meet-
26 ing in Saratoga county at Saratoga thoroughbred racetrack until June
27 thirtieth, two thousand [fifteen] sixteen and on any day regardless of
28 whether or not a franchised corporation is conducting a race meeting in
29 Saratoga county at Saratoga thoroughbred racetrack after June thirtieth,
30 two thousand [fifteen] sixteen. On any day on which a franchised corpo-
31 ration has not scheduled a racing program but a thoroughbred racing
32 corporation located within the state is conducting racing, every off-
33 track betting corporation branch office and every simulcasting facility
34 licensed in accordance with section one thousand seven (that have
35 entered into a written agreement with such facility's representative
36 horsemen's organization, as approved by the commission), one thousand
37 eight, or one thousand nine of this article shall be authorized to
38 accept wagers and display the live simulcast signal from thoroughbred
39 tracks located in another state or foreign country subject to the
40 following provisions:
41 § 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering
42 and breeding law, as amended by section 4 of part AA of chapter 59 of
43 the laws of 2014, is amended to read as follows:
44 1. The provisions of this section shall govern the simulcasting of
45 races conducted at harness tracks located in another state or country
46 during the period July first, nineteen hundred ninety-four through June
47 thirtieth, two thousand [fifteen] sixteen. This section shall supersede
48 all inconsistent provisions of this chapter.
49 § 5. The opening paragraph of subdivision 1 of section 1016 of the
50 racing, pari-mutuel wagering and breeding law, as amended by section 5
51 of part AA of chapter 59 of the laws of 2014, is amended to read as
52 follows:
53 The provisions of this section shall govern the simulcasting of races
54 conducted at thoroughbred tracks located in another state or country on
55 any day during which a franchised corporation is not conducting a race
56 meeting in Saratoga county at Saratoga thoroughbred racetrack until June
S. 4209 109
1 thirtieth, two thousand [fifteen] sixteen. Every off-track betting
2 corporation branch office and every simulcasting facility licensed in
3 accordance with section one thousand seven that have entered into a
4 written agreement with such facility's representative horsemen's organ-
5 ization as approved by the commission, one thousand eight or one thou-
6 sand nine of this article shall be authorized to accept wagers and
7 display the live full-card simulcast signal of thoroughbred tracks
8 (which may include quarter horse or mixed meetings provided that all
9 such wagering on such races shall be construed to be thoroughbred races)
10 located in another state or foreign country, subject to the following
11 provisions; provided, however, no such written agreement shall be
12 required of a franchised corporation licensed in accordance with section
13 one thousand seven of this article:
14 § 6. The opening paragraph of section 1018 of the racing, pari-mutuel
15 wagering and breeding law, as amended by section 6 of part AA of chapter
16 59 of the laws of 2014, is amended to read as follows:
17 Notwithstanding any other provision of this chapter, for the period
18 July twenty-fifth, two thousand one through September eighth, two thou-
19 sand [fourteen] fifteen, when a franchised corporation is conducting a
20 race meeting within the state at Saratoga Race Course, every off-track
21 betting corporation branch office and every simulcasting facility
22 licensed in accordance with section one thousand seven (that has entered
23 into a written agreement with such facility's representative horsemen's
24 organization as approved by the commission), one thousand eight or one
25 thousand nine of this article shall be authorized to accept wagers and
26 display the live simulcast signal from thoroughbred tracks located in
27 another state, provided that such facility shall accept wagers on races
28 run at all in-state thoroughbred tracks which are conducting racing
29 programs subject to the following provisions; provided, however, no such
30 written agreement shall be required of a franchised corporation licensed
31 in accordance with section one thousand seven of this article.
32 § 7. Section 32 of chapter 281 of the laws of 1994, amending the
33 racing, pari-mutuel wagering and breeding law and other laws relating
34 to simulcasting, as amended by section 7 of part AA of chapter 59 of the
35 laws of 2014, is amended to read as follows:
36 § 32. This act shall take effect immediately and the pari-mutuel tax
37 reductions in section six of this act shall expire and be deemed
38 repealed on July 1, [2015] 2016; provided, however, that nothing
39 contained herein shall be deemed to affect the application, qualifica-
40 tion, expiration, or repeal of any provision of law amended by any
41 section of this act, and such provisions shall be applied or qualified
42 or shall expire or be deemed repealed in the same manner, to the same
43 extent and on the same date as the case may be as otherwise provided by
44 law; provided further, however, that sections twenty-three and twenty-
45 five of this act shall remain in full force and effect only until May 1,
46 1997 and at such time shall be deemed to be repealed.
47 § 8. Section 54 of chapter 346 of the laws of 1990, amending the
48 racing, pari-mutuel wagering and breeding law and other laws relating to
49 simulcasting and the imposition of certain taxes, as amended by section
50 8 of part AA of chapter 59 of the laws of 2014, is amended to read as
51 follows:
52 § 54. This act shall take effect immediately; provided, however,
53 sections three through twelve of this act shall take effect on January
54 1, 1991, and section 1013 of the racing, pari-mutuel wagering and breed-
55 ing law, as added by section thirty-eight of this act, shall expire and
56 be deemed repealed on July 1, [2015] 2016; and section eighteen of this
S. 4209 110
1 act shall take effect on July 1, 2008 and sections fifty-one and fifty-
2 two of this act shall take effect as of the same date as chapter 772 of
3 the laws of 1989 took effect.
4 § 9. Paragraph (a) of subdivision 1 of section 238 of the racing,
5 pari-mutuel wagering and breeding law, as amended by section 9 of part
6 AA of chapter 59 of the laws of 2014, is amended to read as follows:
7 (a) The franchised corporation authorized under this chapter to
8 conduct pari-mutuel betting at a race meeting or races run thereat shall
9 distribute all sums deposited in any pari-mutuel pool to the holders of
10 winning tickets therein, provided such tickets be presented for payment
11 before April first of the year following the year of their purchase,
12 less an amount which shall be established and retained by such fran-
13 chised corporation of between twelve to seventeen per centum of the
14 total deposits in pools resulting from on-track regular bets, and four-
15 teen to twenty-one per centum of the total deposits in pools resulting
16 from on-track multiple bets and fifteen to twenty-five per centum of the
17 total deposits in pools resulting from on-track exotic bets and fifteen
18 to thirty-six per centum of the total deposits in pools resulting from
19 on-track super exotic bets, plus the breaks. The retention rate to be
20 established is subject to the prior approval of the gaming commission.
21 Such rate may not be changed more than once per calendar quarter to be
22 effective on the first day of the calendar quarter. "Exotic bets" and
23 "multiple bets" shall have the meanings set forth in section five
24 hundred nineteen of this chapter. "Super exotic bets" shall have the
25 meaning set forth in section three hundred one of this chapter. For
26 purposes of this section, a "pick six bet" shall mean a single bet or
27 wager on the outcomes of six races. The breaks are hereby defined as the
28 odd cents over any multiple of five for payoffs greater than one dollar
29 five cents but less than five dollars, over any multiple of ten for
30 payoffs greater than five dollars but less than twenty-five dollars,
31 over any multiple of twenty-five for payoffs greater than twenty-five
32 dollars but less than two hundred fifty dollars, or over any multiple of
33 fifty for payoffs over two hundred fifty dollars. Out of the amount so
34 retained there shall be paid by such franchised corporation to the
35 commissioner of taxation and finance, as a reasonable tax by the state
36 for the privilege of conducting pari-mutuel betting on the races run at
37 the race meetings held by such franchised corporation, the following
38 percentages of the total pool for regular and multiple bets five per
39 centum of regular bets and four per centum of multiple bets plus twenty
40 per centum of the breaks; for exotic wagers seven and one-half per
41 centum plus twenty per centum of the breaks, and for super exotic bets
42 seven and one-half per centum plus fifty per centum of the breaks. For
43 the period June first, nineteen hundred ninety-five through September
44 ninth, nineteen hundred ninety-nine, such tax on regular wagers shall be
45 three per centum and such tax on multiple wagers shall be two and one-
46 half per centum, plus twenty per centum of the breaks. For the period
47 September tenth, nineteen hundred ninety-nine through March thirty-
48 first, two thousand one, such tax on all wagers shall be two and six-
49 tenths per centum and for the period April first, two thousand one
50 through December thirty-first, two thousand [fifteen] sixteen, such tax
51 on all wagers shall be one and six-tenths per centum, plus, in each such
52 period, twenty per centum of the breaks. Payment to the New York state
53 thoroughbred breeding and development fund by such franchised corpo-
54 ration shall be one-half of one per centum of total daily on-track pari-
55 mutuel pools resulting from regular, multiple and exotic bets and three
56 per centum of super exotic bets provided, however, that for the period
S. 4209 111
1 September tenth, nineteen hundred ninety-nine through March thirty-
2 first, two thousand one, such payment shall be six-tenths of one per
3 centum of regular, multiple and exotic pools and for the period April
4 first, two thousand one through December thirty-first, two thousand
5 [fifteen] sixteen, such payment shall be seven-tenths of one per centum
6 of such pools.
7 § 10. This act shall take effect immediately.
8 PART OO
9 Section 1. Section 1602 of the tax law is amended by adding a new
10 subdivision 6 to read as follows:
11 6. "Video lottery gaming" means any lottery game played on a video
12 lottery terminal that issues electronic tickets, allows multiple players
13 to participate in the same game and determines winners to a material
14 degree upon the element of chance, notwithstanding that the skill of a
15 player may influence such player's chance of winning a game. Video
16 lottery gaming may include elements of player interaction after a player
17 receives an initial chance.
18 § 2. Subdivision 28 of section 225.00 of the penal law, as added by
19 chapter 174 of the laws of 2013, is amended to read as follows:
20 28. "Video lottery gaming" [means any lottery game played on a video
21 lottery terminal, which consists of multiple players competing for a
22 chance to win a random drawn prize pursuant to section sixteen hundred
23 seventeen-a and paragraph five of subdivision a of section sixteen
24 hundred twelve of the tax law, as amended and implemented] has the mean-
25 ing set forth in subdivision six of section sixteen hundred two of the
26 tax law.
27 § 3. This act shall take effect on the thirtieth day after it shall
28 have become a law and shall expire and be deemed repealed May 1, 2017.
29 PART PP
30 Section 1. Paragraph d of subdivision 1 of section 207 of the racing,
31 pari-mutuel wagering and breeding law, as added by chapter 457 of the
32 laws of 2012, is amended to read as follows:
33 d. The board, which shall become effective upon appointment of a
34 majority of public members, shall terminate [three] four years from its
35 date of creation. The board shall propose, no less than one hundred
36 eighty days prior to its termination, recommendations to the governor
37 and the state legislature representing a statutory plan for the prospec-
38 tive not-for-profit governing structure of The New York Racing Associ-
39 ation, Inc.
40 § 2. This act shall take effect June 18, 2015.
41 PART QQ
42 Intentionally Omitted
43 PART RR
44 Section 1. Subdivision 2 of section 187-b of the tax law, as amended
45 by section 1 of part G of chapter 59 of the laws of 2013, is amended to
46 read as follows:
S. 4209 112
1 2. (a) Alternative fuel vehicle refueling property and electric vehi-
2 cle recharging property. The credit under this section for alternative
3 fuel vehicle refueling and electric vehicle recharging property shall
4 equal for each installation of property the lesser of five thousand
5 dollars or the product of fifty percent [of the cost of any such proper-
6 ty:
7 (a) which is] and the cost of any such property less any costs paid
8 from the proceeds of grants.
9 (b) To qualify for the credit, the property must:
10 (i) be located in this state;
11 [(b) which constitutes] (ii) constitute alternative fuel vehicle refu-
12 eling property or electric vehicle recharging property; and
13 [(c) for which none of the cost has been] (iii) 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 § 2. Paragraph (b) of subdivision 30 of section 210-B of the tax law,
18 as added by section 17 of part A of chapter 59 of the laws of 2014, is
19 amended to read as follows:
20 (b) (i) Alternative fuel vehicle refueling property and electric vehi-
21 cle recharging property. The credit under this subdivision for alterna-
22 tive fuel vehicle refueling property and 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 (i) which is] and the cost of any such property less any costs paid
27 from the proceeds of grants.
28 (ii) To qualify for the credit, the property must:
29 (A) be located in this state;
30 [(ii) which constitutes] (B) must constitute alternative fuel vehicle
31 refueling property or electric vehicle recharging property; and
32 [(iii) for which none of the cost has been] (C) 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 § 3. Paragraph 2 of subsection (p) of section 606 of the tax law, as
37 amended by section 3 of part G of chapter 59 of the laws of 2013, is
38 amended to read as follows:
39 (2) (a) Alternative fuel vehicle refueling property and electric vehi-
40 cle recharging property. The credit under this subsection for alterna-
41 tive fuel vehicle refueling property or electric vehicle recharging
42 property shall equal for each installation of property the lesser of
43 five thousand dollars or the product of fifty percent [of the cost of
44 any such property
45 (A) which is] and the cost of any such property less any costs paid
46 from the proceeds of grants.
47 (b) To qualify for the credit, the property must:
48 (i) be located in this state;
49 [(B) which constitutes] (ii) constitute alternative fuel vehicle refu-
50 eling property or electric vehicle recharging property; and
51 [(C) for which none of the cost has been] (iii) not be paid for from
52 the proceeds of grants awarded before January first, two thousand
53 fifteen, including grants from the New York state energy research and
54 development authority or the New York power authority.
55 § 4. This act shall take effect immediately, and shall apply to taxa-
56 ble years beginning on or after January 1, 2015.
S. 4209 113
1 PART SS
2 Section 1. Paragraph (b) of subdivision 6 of section 18-a of the
3 public service law, as amended by section 1 of part S of chapter 57 of
4 the laws of 2014, is amended to read as follows:
5 (b) The temporary state energy and utility service conservation
6 assessment shall be based upon the following percentum of the utility
7 entity's gross operating revenues derived from intrastate utility oper-
8 ations in the last preceding calendar year, minus the amount, if any,
9 that such utility entity is assessed pursuant to subdivisions one and
10 two of this section for the corresponding state fiscal year period: (1)
11 two percentum for the state fiscal year beginning April first, two thou-
12 sand thirteen; and (2) 1.63 percentum for the state fiscal year begin-
13 ning April first, two thousand fourteen[; (3) 1.00 percentum for the
14 state fiscal year beginning April first, two thousand fifteen; and (4)
15 .73 percentum for the state fiscal year beginning April first, two thou-
16 sand sixteen]. With respect to the temporary state energy and utility
17 service conservation assessment to be paid for the state fiscal year
18 beginning April first, two thousand [seventeen] fifteen and notwith-
19 standing clause (i) of paragraph (d) of this subdivision, on or before
20 March tenth, two thousand [seventeen] fifteen, utility entities shall
21 make a payment equal to [one-half] sixty-one hundredths of the assess-
22 ment paid by such entities pursuant to this paragraph for the state
23 fiscal year beginning on April first, two thousand [sixteen] fourteen;
24 provided, further that such assessment for state fiscal year beginning
25 April first, two thousand [seventeen] fifteen shall not be reflected in
26 a customer's rate after December thirty-first, two thousand [seventeen]
27 fifteen. With respect to the Long Island power authority, the temporary
28 state energy and utility service conservation assessment shall be based
29 upon the following percentum of such authority's gross operating reven-
30 ues derived from intrastate utility operations in the last preceding
31 calendar year, minus the amount, if any, that such authority is assessed
32 pursuant to subdivisions one-a and two of this section for the corre-
33 sponding state fiscal year period: (1) one percentum for the state
34 fiscal year beginning April first, two thousand thirteen; and (2) .84
35 percentum for the state fiscal year beginning April first, two thousand
36 fourteen; [(3) .50 percentum for the state fiscal year beginning April
37 first, two thousand fifteen; and (4) .34 percentum for the state fiscal
38 year beginning April first, two thousand sixteen;] provided, however,
39 that should the amount assessed by the department for costs and expenses
40 pursuant to such subdivisions equal or exceed such authority's temporary
41 state energy and utility service conservation assessment for a partic-
42 ular fiscal year, the amount to be paid under this subdivision by such
43 authority shall be zero. With respect to the temporary state energy and
44 utility service conservation assessment to be paid for the state fiscal
45 year beginning April first, two thousand [seventeen] fifteen and
46 notwithstanding clause (i) of paragraph (d) of this subdivision, on or
47 before March tenth, two thousand [seventeen] fifteen, the Long Island
48 power authority shall make a payment equal to [one-half] six-tenths of
49 the assessment it paid for the state fiscal year beginning on April
50 first, two thousand [sixteen] fourteen; provided, further that such
51 assessment for state fiscal year beginning April first, two thousand
52 [seventeen] fifteen shall not be reflected in a customer's rate after
53 December thirty-first, two thousand [seventeen] fifteen. No corporation
54 or person subject to the jurisdiction of the commission only with
55 respect to safety, or the power authority of the state of New York,
S. 4209 114
1 shall be subject to the temporary state energy and utility service
2 conservation assessment provided for under this subdivision. Utility
3 entities whose gross operating revenues from intrastate utility oper-
4 ations are five hundred thousand dollars or less in the preceding calen-
5 dar year shall not be subject to the temporary state energy and utility
6 service conservation assessment. The minimum temporary state energy and
7 utility service conservation assessment to be billed to any utility
8 entity whose gross revenues from intrastate utility operations are in
9 excess of five hundred thousand dollars in the preceding calendar year
10 shall be two hundred dollars.
11 § 2. This act shall take effect immediately, provided, however, that
12 the amendments to paragraph (b) of subdivision 6 of section 18-a of the
13 public service law made by section one of this act shall not affect the
14 repeal of such subdivision and shall be deemed to be repealed therewith.
15 PART TT
16 Section 1. Paragraph 2 of subdivision (f) of section 1137 of the tax
17 law, as amended by section 1 of part H of chapter 62 of the laws of
18 2006, is amended to read as follows:
19 (2) The amount of the credit authorized by paragraph one of this
20 subdivision shall be five percent of the amount of taxes and fees (but
21 not including any penalty or interest thereon) required to be reported
22 on, and paid or paid over with, the return but only if the return is
23 filed on or before the filing due date, but not more than [two] four
24 hundred dollars, for each quarterly or longer period, except that, with
25 respect to returns required to be filed for quarterly or longer periods
26 ending on or before the last day of February, two thousand seven, the
27 amount of the credit shall be not more than one hundred seventy-five
28 dollars for each such quarterly or longer period.
29 § 2. This act shall take effect immediately and shall apply to returns
30 filed for the quarter beginning September 1, 2015 and thereafter.
31 PART UU
32 Section 1. Section 601 of the tax law is amended by adding a new
33 subsection (d-3) to read as follows:
34 (d-3) Optional alternate simple calculation. Notwithstanding
35 subsections (a) through (d-2) of this section, a resident taxpayer with
36 federal adjusted gross income less than one million dollars may choose
37 to calculate tax liability as follows:
38 (1) Imposition of tax. (A) Resident married individuals filing joint
39 returns and resident surviving spouses. There is hereby imposed for each
40 taxable year on the New York taxable income of every resident married
41 individual who makes a single return jointly with his or her spouse
42 under subsection (b) of section six hundred fifty-one of this article
43 and on the New York taxable income of every resident surviving spouse a
44 tax determined in accordance with the following calculation: simple
45 taxable income multiplied by the married joint effective tax rate.
46 (B) Resident heads of households. There is hereby imposed for each
47 taxable year on the New York taxable income of every resident head of a
48 household a tax determined in accordance with the following calculation:
49 simple taxable income multiplied by the heads of household effective tax
50 rate.
51 (C) Resident unmarried individuals, resident married individuals
52 filing separate returns and resident estates and trusts. There is hereby
S. 4209 115
1 imposed for each taxable year on the New York taxable income of every
2 resident individual who is not a married individual who makes a single
3 return jointly with his or her spouse under subsection (b) of section
4 six hundred fifty-one of this article or a resident head of a household
5 or a resident surviving spouse, and on the New York taxable income of
6 every resident estate and trust a tax determined in accordance with the
7 following calculation: simple taxable income multiplied by the single
8 effective tax rate.
9 (2) Meaning of terms. (A) Simple taxable income. For the purposes of
10 this subsection, simple taxable income of a taxpayer shall mean his
11 federal adjusted gross income less the modifications specified in para-
12 graphs three, three-a, three-b, and three-c of subsection (c) of section
13 six hundred twelve of this article.
14 (B) Effective tax rate. For the purposes of this subsection, effective
15 tax rate shall be determined by the commissioner by dividing the total
16 tax liability before credits for all taxpayers within a liability group
17 by the total federal adjusted gross income for all taxpayers within the
18 same liability group on personal income tax returns filed for the taxa-
19 ble year two years prior. A liability group shall be determined by (i)
20 each filing status listed in subparagraphs (A), (B), and (C) of para-
21 graph one of this subsection and (ii) number of dependents as follows:
22 no dependents, one dependent, two dependents, or three or more depen-
23 dents. A liability group shall be all resident taxpayers with federal
24 adjusted gross income: within five thousand dollar increments for
25 incomes over five thousand dollars and less than or equal to one hundred
26 fifty thousand dollars; within ten thousand dollar increments for
27 incomes over one hundred fifty thousand dollars and less than or equal
28 to three hundred thousand dollars; and within fifty thousand dollars for
29 incomes over three hundred thousand dollars and less than one million
30 dollars. The effective tax rate shall be calculated to no more than four
31 decimal places.
32 (C) Married joint effective tax rate. Married joint effective tax
33 rate shall be the effective tax rate calculated under subparagraph (B)
34 of this paragraph for taxpayers that file in accordance with subpara-
35 graph (A) of paragraph one of this subsection.
36 (D) Heads of households effective tax rate. Heads of households
37 effective tax rate shall be the effective tax rate calculated under
38 subparagraph (B) of this paragraph for taxpayers that file in accordance
39 with subparagraph (B) of paragraph one of this subsection.
40 (E) Single effective tax rate. Single effective tax rate shall be the
41 effective tax rate calculated under subparagraph (B) of this paragraph
42 for taxpayers that file in accordance with subparagraph (C) of paragraph
43 one of this subsection.
44 § 2. This act shall take effect immediately and shall apply to taxable
45 years beginning on or after January 1, 2015.
46 PART VV
47 Section 1. The civil practice law and rules is amended by adding a new
48 section 5519-a to read as follows:
49 § 5519-a. Stay of enforcement for master settlement agreement partic-
50 ipating and non-participating manufacturers or their successors. (a) In
51 civil litigation concerning a theory of liability relating to the health
52 effects, design, or marketing of, or representations concerning, tobacco
53 products as defined by the master settlement agreement, and that
54 involves a participating or non-participating manufacturer, as those
S. 4209 116
1 terms are defined in the master settlement agreement, or any of their
2 successors, or parent entities found to be liable by virtue of their
3 status as parent to have controlled the conduct of such manufacturers or
4 their successors, the undertaking required during the pendency of all
5 appeals or discretionary reviews by any appellate courts in order to
6 stay the execution of any judgment or order granting legal, equitable or
7 other relief during the entire course of appellate review, including
8 review by the United States Supreme Court, shall be set pursuant to the
9 applicable provisions of law; provided, however, that the court of
10 original instance shall set the total undertaking required in an amount
11 not to exceed two hundred fifty million dollars, regardless of the value
12 of the judgment appealed. Nothing herein shall affect the discretion of
13 an appellate court pursuant to subdivision (c) of section fifty-five
14 hundred nineteen of this article. Where the court sets the undertaking
15 in an amount less than the judgment, the appeal shall be diligently
16 prosecuted in good faith.
17 (b) As used in this section, "master settlement agreement" shall have
18 the same meaning as set forth in subdivision five of section thirteen
19 hundred ninety-nine-oo of the public health law.
20 (c) Nothing contained in this section shall be read to allow: (i)
21 such participating manufacturer to curtail its financial obligation
22 under the master settlement agreement; or (ii) such non-participating
23 manufacturer to curtail its obligation to place the amounts specified in
24 subdivision two of section thirteen hundred ninety-nine-pp of the public
25 health law into a qualified escrow fund as defined in subdivision six of
26 section thirteen hundred ninety-nine-oo of the public health law.
27 § 2. This act shall take effect on the thirtieth day after it shall
28 have become a law, and shall apply to any cause of action pending on or
29 filed on or after such effective date.
30 PART WW
31 Section 1. Article 12 of the tax law is REPEALED.
32 § 2. Subdivision fourth of section 171 of the tax law is REPEALED.
33 § 3. Subparagraph (iii) of paragraph (b) of subdivision 1 of section
34 173-a of the tax law is REPEALED.
35 § 4. Section 176 of the tax law, as amended by chapter 267 of the laws
36 of 1987, is amended to read as follows:
37 § 176. Transfer of the powers and duties of the comptroller in
38 relation to the assessment or collection of certain taxes. On and after
39 July first, nineteen hundred twenty-one, all the powers and duties now
40 conferred or imposed upon the state comptroller in relation to the taxa-
41 tion of corporations under articles nine and nine-A of this chapter, in
42 relation to the taxation of transfers of property, under article ten of
43 this chapter, [in relation to the taxation of transfers of stock, under
44 article twelve of this chapter,] and in relation to taxation upon and
45 with respect to personal income, under article sixteen of this chapter
46 (as such article was in effect on December thirtieth, nineteen hundred
47 sixty), shall be transferred to and thereafter shall be exercised and
48 performed by the commissioner, except as powers and duties under any
49 such article are expressly conferred upon or continued in the state
50 comptroller by acts of the legislature of nineteen hundred twenty-one,
51 enacted subsequent to chapter ninety of the laws of nineteen hundred
52 twenty-one.
53 § 5. (a) Notwithstanding the repeal of article 12 of the tax law by
54 this act, all provisions of such article 12 and any regulations adopted
S. 4209 117
1 thereunder, in respect to the assessment, payment, payment over, deter-
2 mination, collection and refund of tax imposed thereunder, the rebates
3 provided for in section 280-a of the tax law, the filing of forms and
4 returns and the preservation of records for the purposes of the tax
5 imposed by article 12, the secrecy of returns, the disposition of reven-
6 ues, and the civil and criminal penalties applicable to the violation of
7 the provisions of such article 12, shall continue in full force and
8 effect with respect to all such tax accrued up to the date this act
9 takes effect; all actions and proceedings, civil or criminal, commenced
10 or authorized to be commenced under or by virtue of any provision of
11 such article 12 so repealed, and pending or able to be commenced prior
12 to the taking effect of such repeal, may be commenced, prosecuted and
13 defended to final effect in the same manner as they might if such
14 provisions were not so repealed.
15 (b) Notwithstanding any provision of law in article 12 of the tax law
16 or subdivision (a) of this section to the contrary, any application for
17 a rebate of tax paid under such article 12 must be filed within two
18 years from the effective date of this act.
19 § 6. This act shall take effect June 1, 2015.
20 PART XX
21 Section 1. Subdivisions 2, 3, 4, 5 and 6 of section 4 of chapter 912
22 of the laws of 1920 relating to the regulation of boxing, sparring and
23 wrestling, subdivisions 2 and 6 as amended by chapter 437 of the laws of
24 2002 and subdivisions 3, 4 and 5 as added by chapter 603 of the laws of
25 1981, are amended to read as follows:
26 2. The advisory board shall have power and it shall be the duty of the
27 board to prepare and submit to the commission for approval regulations
28 and standards for the physical examination of professional boxers and
29 professional combative sports participants including, without limita-
30 tion, pre-fight and/or post-fight examinations and periodic comprehen-
31 sive examinations. The board shall continue to serve in an advisory
32 capacity to the commission and from time to time prepare and submit to
33 the commission for approval, such additional regulations and standards
34 of examination as in their judgment will safeguard the physical welfare
35 of professional boxers licensed by the commission. The advisory board
36 shall recommend to the commission from time to time such qualified
37 physicians, for the purpose of conducting physical examinations of
38 professional boxers and professional combative sports participants and
39 other services as the rules of the commission shall provide; and shall
40 recommend to the commission a schedule of fees to be paid to physicians
41 for such examinations and other services as required by this act.
42 3. The advisory board shall develop appropriate medical education
43 programs for all commission personnel involved in the conduct of boxing
44 and sparring matches or exhibitions or professional combative sports
45 matches or exhibitions so that such personnel can recognize and act upon
46 evidence of potential or actual adverse medical indications in a partic-
47 ipant prior to or during the course of a match or exhibition.
48 4. The advisory board shall review the credentials and performance of
49 each commission physician on an annual basis as a condition of reap-
50 pointment of each such physician, including each such physician's
51 comprehension of the medical literature on boxing or professional comba-
52 tive sports referred to in subdivision five of this section.
53 5. The advisory board shall recommend to the commission a compilation
54 of medical publications on the medical aspects of boxing or professional
S. 4209 118
1 combative sports which shall be maintained by the commission and be made
2 available for review to all commission personnel involved in the conduct
3 of any boxing or sparring match or exhibition or professional combative
4 sports match or exhibition.
5 6. The advisory board shall also advise the commission on any study of
6 equipment, procedures or personnel which will, in their opinion, promote
7 the safety of boxing participants and professional combative sports
8 participants.
9 § 2. Section 5-a of chapter 912 of the laws of 1920 relating to the
10 regulation of boxing, sparring and wrestling, as added by chapter 14 of
11 the laws of 1997, is amended to read as follows:
12 § 5-a. Combative sports. 1. Definitions. As used in this section:
13 (a) "Board" means medical advisory board as established in section
14 four of this act.
15 (b) A "combative sport" shall mean any professional match or exhibi-
16 tion other than boxing, sparring, wrestling or martial arts wherein the
17 contestants deliver, or are not forbidden by the applicable rules there-
18 of from delivering kicks, punches or blows of any kind to the body of an
19 opponent or opponents. For the purposes of this section, the term
20 "martial arts" shall include any professional match or exhibition of a
21 single discipline sanctioned by an organization approved by the commis-
22 sion, including, but not limited to, any of the following organizations:
23 U.S. Judo Association, U.S. Judo, Inc., U.S. Judo Federation, U.S. Tae
24 Kwon Do Union, North American Sport Karate Association, U.S.A. Karate
25 Foundation, U.S. Karate, Inc., World Karate Association, Professional
26 Karate Association, Karate International, International Kenpo Associ-
27 ation, or World Wide Kenpo Association. The commission [is authorized
28 to] shall promulgate regulations which would establish a process to
29 allow for the inclusion or removal of martial arts organizations from
30 the above list. Such process shall include but not be limited to consid-
31 eration of the following factors: [(a)] (1) is the organization's
32 primary purpose to provide instruction in self defense techniques; [(b)]
33 (2) does the organization require the use of hand, feet and groin
34 protection during any competition or bout; and [(c)] (3) does the organ-
35 ization have an established set of rules that require the immediate
36 termination of any competition or bout when any participant has received
37 severe punishment or is in danger of suffering serious physical injury.
38 (c) "Commission" means the state athletic commission as provided for
39 in section one of this chapter or an agent of the commission acting on
40 its behalf.
41 (d) "Mixed martial arts" means any professional combative sports
42 competition wherein the rules of such competition subject to the appli-
43 cable limitations as set forth by the commission authorize professional
44 combative sports matches or exhibitions between various fighting disci-
45 plines, including the utilization of permitted martial arts techniques,
46 including striking, kicking and grappling. No non-professional or
47 amateur bout, exhibition or participant shall be authorized by this
48 section.
49 (e) "Professional combative sports participant" or "participant" shall
50 mean a combative sports fighter who competes for a money prize or teach-
51 es or pursues or assists in the practice of mixed martial arts as a
52 means of obtaining a livelihood or pecuniary gain, and any contest
53 conforming to the rules, regulations and requirements of this section.
54 (f) "Professional combative sports match or exhibition" shall mean any
55 match or exhibition that must be approved by the commission where
S. 4209 119
1 professional combative sports participants receive consideration of any
2 value or an admission is charged.
3 1-a. Commission review. The commission shall review each martial arts
4 sanctioning organization, including those listed in subdivision one of
5 this section, at least biennially, or sooner if determined necessary
6 based upon the periodic compliance checks or complaints to the commis-
7 sion, to determine continuation of the commission's approval. The
8 commission shall continue approval or shall suspend or revoke approval
9 based upon compliance of the organization with the approved sanctioning
10 standards and its ability to supervise matches in the state. The
11 commission shall act upon any application for inclusion in the list in
12 paragraph (b) of subdivision one of this section within sixty days of
13 the date such application is made to the commission.
14 1-b. Mixed martial arts competition. The commission shall promulgate
15 rules and regulations to allow for mixed martial arts competitions to be
16 conducted, held, or given within the state of New York and shall allow
17 for licenses to be approved by the commission for such matches or exhi-
18 bitions. The commission is authorized to promulgate rules and regu-
19 lations to carry out the provisions of this subdivision. Such rules and
20 regulations shall include, but not be limited to, the adoption of
21 unified rules of mixed martial arts, a licensing process for matches and
22 exhibitions, a fee schedule for such licenses, procedures to allow for
23 the participation, promotion, and advancement of such events, the health
24 and safety of participants, and the best interests of mixed martial arts
25 and the adoption of rules and regulations for licensing and regulation
26 of any and all gyms, clubs, training camps and other organizations that
27 maintain training facilities providing contact sparring for persons who
28 prepare for participation in such professional combative sports or exhi-
29 bitions, except as otherwise provided in this section.
30 (b) The commission is authorized and directed to require that all
31 sites wherein professional combative sports are conducted shall comply
32 with state and applicable local sanitary codes appropriate to school
33 athletic facilities.
34 2. [No combative sport shall be conducted, held or given within the
35 state of New York, and no licenses may be approved by the commission for
36 such matches or exhibitions.
37 3. (a) A person who knowingly advances or profits from a combative
38 sport activity shall be guilty of a class A misdemeanor, and shall be
39 guilty of a class E felony if he or she has been convicted in the previ-
40 ous five years of violating this subdivision.
41 (b) A person advances a combative sport activity when, acting other
42 than as a spectator, he or she engages in conduct which materially aids
43 any combative sport. Such conduct includes but is not limited to conduct
44 directed toward the creation, establishment or performance of a comba-
45 tive sport, toward the acquisition or maintenance of premises, parapher-
46 nalia, equipment or apparatus therefor, toward the solicitation or
47 inducement of persons to attend or participate therein, toward the actu-
48 al conduct of the performance thereof, toward the arrangement of any of
49 its financial or promotional phases, or toward any other phase of a
50 combative sport. One advances a combative sport activity when, having
51 substantial proprietary or other authoritative control over premises
52 being used with his or her knowledge for purposes of a combative sport
53 activity, he or she permits such to occur or continue or makes no effort
54 to prevent its occurrence or continuation.
55 (c) A person profits from a combative sport activity when he or she
56 accepts or receives money or other property with intent to participate
S. 4209 120
1 in the proceeds of a combative sport activity, or pursuant to an agree-
2 ment or understanding with any person whereby he or she participates or
3 is to participate in the proceeds of a combative sport activity.
4 (d) Any person who knowingly advances or profits from a combative
5 sport activity shall also be subject to a civil penalty not to exceed
6 for the first violation ten thousand dollars or twice the amount of gain
7 derived therefrom whichever is greater, or for a subsequent violation
8 twenty thousand dollars or twice the amount of gain derived therefrom
9 whichever is greater. The attorney general is hereby empowered to
10 commence judicial proceedings to recover such penalties and to obtain
11 injunctive relief to enforce the provisions of this section.] Profes-
12 sional combative sports matches and exhibitions authorized. No combative
13 sports match or exhibition shall be conducted, held or given within the
14 state except in accordance with the provisions of this section and the
15 rules and regulations promulgated by the commission pursuant thereto.
16 The commission shall direct a representative to be present at each place
17 where combative sports are to be held pursuant to the provisions of this
18 section. Such representative shall ascertain the exact conditions
19 surrounding such match or exhibition and make a written report of the
20 same in the manner and form prescribed by the commission. Such combative
21 sports matches or exhibitions may be held in any building for which the
22 commission in its discretion may issue a license. Where such match or
23 exhibition is authorized to be held in a state or city owned armory, the
24 provision of the military law in respect thereto must be complied with,
25 but no such match or exhibition shall be held in a building wholly used
26 for religious services.
27 3. Jurisdiction of commission. (a) The commission shall have and here-
28 by is vested with the sole direction, management, control and jurisdic-
29 tion over all professional combative sports matches or exhibitions to be
30 conducted, held or given within the state of New York and over all
31 licenses to any and all persons who participate in such combative sports
32 matches or exhibitions and over any and all gyms, clubs, training camps
33 and other organizations that maintain training facilities providing
34 contact sparring for persons who prepare for participation in such
35 professional combative sports or exhibitions, except as otherwise
36 provided in this section.
37 (b) The commission is authorized and directed to require that all
38 sites wherein professional combative sports are conducted shall comply
39 with state and applicable local sanitary codes appropriate to school
40 athletic facilities.
41 4. Entities required to procure licenses; professional combative
42 sports participants defined. Except as otherwise provided in subdivision
43 six of this section, all corporations, persons, limited liability compa-
44 nies, referees, judges, corporation treasurers, professional combative
45 sports participants, their managers, promoters, trainers and chief
46 seconds shall be licensed by the commission, and no such entity shall be
47 permitted to participate, either directly or indirectly, in any profes-
48 sional combative sports match or exhibition, or the holding thereof,
49 unless such entity shall have first procured a license from the commis-
50 sion. The commission shall establish by rule and regulation licensing
51 standards for referees, judges, managers, promoters, trainers and chief
52 seconds. Any match or exhibition conforming to the rules, regulations
53 and requirements of this section shall be deemed to be a professional
54 combative sports match or exhibition.
55 5. License to entities. (a) The commission may, in its discretion,
56 issue a license to conduct or hold professional combative sports matches
S. 4209 121
1 or exhibitions, subject to the provisions hereof, to any person, corpo-
2 ration or limited liability company duly incorporated or formed, herein-
3 after referred to as "entity".
4 (b) A prospective licensee must submit to the commission proof that it
5 can furnish suitable premises in which such match or exhibition is to be
6 held.
7 (c) Upon written application and the payment of a fee of five hundred
8 dollars which must accompany the application, the commission may grant
9 to any entity holding a license issued hereunder, the privilege of hold-
10 ing such a match or exhibition on a specified date in other premises, or
11 in another location, than the premises of location previously approved
12 by the commission, subject however to approval of the commission and the
13 rules and regulations of the commission.
14 (d) All penalties imposed and collected by the commission from any
15 entity licensed under the provisions of this act, which fines and penal-
16 ties are imposed and collected under the authority hereby vested shall
17 within thirty days after the receipt thereof by the commission be paid
18 by them into the state treasury.
19 6. Temporary working permits for professional combative sports partic-
20 ipants, managers, trainers and chief seconds. The commission may issue
21 temporary working permits to professional combative sports participants,
22 their managers, trainers and chief seconds. A temporary working permit
23 shall authorize the employment of the holder of such permit to engage in
24 a single match or exhibition at a specified time and place. A temporary
25 working permit may be issued if in the judgment of the commission the
26 participation of the holder thereof in a professional combative sports
27 match or exhibition will be consistent with the purposes and provisions
28 of this section, the best interests of combative sports generally, and
29 the public interest, convenience or necessity. The commission may
30 require that professional combative sports participants applying for
31 temporary working permits undergo a physical examination, neurological
32 or neuropsychological test or procedure, including computed tomography
33 or medically equivalent procedure. The fee for such temporary working
34 permit shall be twenty dollars.
35 7. License fees; term of licenses; renewals. Each applicant for a
36 promoter license shall, before a license is issued by the commission,
37 pay to the commission, an annual license fee as follows: where the
38 seating capacity is not more than two thousand five hundred, five
39 hundred dollars; where the seating capacity is more than two thousand
40 five hundred but not more than five thousand, one thousand dollars;
41 where the seating capacity is more than five thousand but not more than
42 fifteen thousand, one thousand five hundred dollars; where the seating
43 capacity is more than fifteen thousand but not more than twenty-five
44 thousand, two thousand five hundred dollars; where the seating capacity
45 is more than twenty-five thousand, three thousand five hundred dollars;
46 referee, one hundred dollars; judges, one hundred dollars; professional
47 combative sports participants, fifty dollars; managers, fifty dollars;
48 trainers, fifty dollars; and chief seconds, forty dollars. Each license
49 or renewal thereof issued pursuant to this subdivision on or after Octo-
50 ber first shall be effective for a license year expiring on the thirti-
51 eth day of September following the date of its issuance. The annual
52 license fee prescribed by this subdivision shall be the license fee due
53 and payable therefor and shall be paid in advance at the time applica-
54 tion is made therefor, and each such license may be renewed for periods
55 of one year upon the payment of the annual license fee prescribed by
56 this subdivision. Within three years from the date of payment and upon
S. 4209 122
1 the audit of the comptroller, the commission may refund any fee, unfor-
2 feited posted guarantee or tax paid pursuant to this section, for which
3 no license is issued or no service rendered or refund that portion of
4 the payment that is in excess of the amount prescribed by statute.
5 8. Application for license; fingerprints. (a) Every application for a
6 license shall be in writing, shall be addressed to the commission, shall
7 be subscribed by the applicant, and affirmed by him as true under the
8 penalties of perjury, and shall set forth such facts as the provisions
9 hereof and the rules and regulations of the commission may require.
10 (b) When an application is made for a license under this section, the
11 commission may cause the fingerprints of such applicant, or if such
12 applicant be a corporation, of the officers of such corporation, or if
13 such applicant be a limited liability company, the manager of such
14 limited liability company to be taken in duplicate. The applicant shall
15 be responsible for the cost of having his fingerprints taken. If such
16 fingerprints are taken, one copy shall be transmitted to the division of
17 criminal justice services in accordance with the rules and regulations
18 of the division of criminal justice services and one shall remain on
19 file in the office of the commission. No such fingerprint may be
20 inspected by any person, other than a peace officer, except on order of
21 a judge or justice of a court of record. The division is hereby author-
22 ized to transmit criminal history information to the commission for the
23 purposes of this paragraph. The information obtained by any such fing-
24 erprint examination shall be for the guidance of the commission in the
25 exercise of its discretion in granting or withholding the license. The
26 commission shall provide such applicant with a copy of his or her crimi-
27 nal history record, if any, together with a copy of article twenty-
28 three-A of the correction law, and inform such applicant of his or her
29 right to seek correction of any incorrect information contained in such
30 record pursuant to regulations and procedures established by the divi-
31 sion of criminal justice services. All determinations to issue, renew,
32 suspend or revoke a license shall be made in accordance with subdivision
33 sixteen of section two hundred ninety-six of the executive law and arti-
34 cle twenty-three-A of the correction law.
35 9. Standards for the issuance of licenses. (a) If in the judgment of
36 the commission the financial responsibility, experience, character and
37 general fitness of an applicant, including in the case of corporations
38 its officers and stockholders, are such that the participation of such
39 applicant will be consistent with the best interests of combative
40 sports, the purposes of this section including the safety of profes-
41 sional combative sports participants, and in the public interest,
42 convenience or necessity, the commission shall grant a license in
43 accordance with the provisions contained in this subdivision.
44 (b) Any professional combative sports participant applying for a
45 license or renewal of a license under this subdivision shall undergo a
46 comprehensive physical examination including clinical neurological and
47 neuropsychological examinations by a physician approved by the commis-
48 sion. If, at the time of such examination, there is any indication of
49 brain injury, or for any other reason the physician deems it appropri-
50 ate, the professional combative sports participant shall be required to
51 undergo further neurological and neuropsychological examinations by a
52 neurologist including, but not limited to, a computed tomography or
53 medically equivalent procedure. The commission shall not issue a license
54 to a professional combative sports participant until such examinations
55 are completed and reviewed by the commission. The results of all such
56 examinations herein required shall become a part of the professional
S. 4209 123
1 combative sports participant's permanent medical record as maintained by
2 the commission. The cost of all such examinations called for in this
3 subdivision shall be assumed by the state if such examinations are
4 performed by a physician or neurologist approved by the commission.
5 (c) Any professional combative sports participant licensed under this
6 chapter shall, as a condition of licensure, waive right of confidential-
7 ity of medical records relating to treatment of any physical condition
8 which relates to his ability to fight. All medical reports submitted to,
9 and all medical records of the medical advisory board or the commission
10 relative to the physical examination or condition of combative sports
11 participants shall be considered confidential, and shall be open to
12 examination only to the commission or its authorized representative, to
13 the licensed participant, manager or chief second upon written applica-
14 tion to examine said records, or upon the order of a court of competent
15 jurisdiction in an appropriate case.
16 10. Financial interest in professional combative sports participants
17 prohibited. No entity shall have, either directly or indirectly, any
18 financial interest in a professional combative sports participant
19 competing on premises owned or leased by the entity, or in which such
20 entity is otherwise interested except pursuant to the specific written
21 authorization of the commission.
22 11. Payments not to be made before contests. No professional combative
23 sports participant shall be paid for services before the contest, and
24 should it be determined by the commission that such participant did not
25 give an honest exhibition of his skill, such service shall not be paid
26 for.
27 12. Sham or collusive events. (a) Any person, including any corpo-
28 ration and the officers thereof, any physician, limited liability compa-
29 ny, referee, judge, professional combative sports participant, manager,
30 trainer or chief second, who shall promote, conduct, give or participate
31 in any sham or collusive professional combative sports match or exhibi-
32 tion, shall be deprived of his license by the commission.
33 (b) No licensed entity shall knowingly engage in a course of conduct
34 in which professional combative sports matches or exhibitions are
35 arranged where one professional combative sports participant has skills
36 or experience significantly in excess of the other professional comba-
37 tive sports participant so that a mismatch results with the potential of
38 physical harm to the professional combative sports participant. If such
39 action occurs, the commission may exercise its powers to discipline
40 under subdivisions thirteen and fourteen of this section, provided that
41 nothing in this subdivision shall authorize the commission to intervene
42 or prohibit a professional combative sports match or exhibition solely
43 on the basis of the difference between respective participant's martial
44 arts disciplines.
45 13. Imposition of penalties for violations. Any entity, licensed under
46 the provisions of this section, that shall knowingly violate any rule or
47 order of the commission or any provision of this section, in addition to
48 any other penalty by law prescribed, shall be liable to a civil penalty
49 not exceeding five thousand dollars to be imposed by the commission, to
50 be sued for by the attorney general in the name of the people of the
51 state of New York if directed by the commission. The amount of the
52 penalty collected by the commission or recovered in any such action, or
53 paid to the commission upon a compromise as hereinafter provided, shall
54 be transmitted by the department of state into the state treasury and
55 credited to the general fund. The commission, for cause shown, may
56 extend the time for the payment of such penalty and, by compromise, may
S. 4209 124
1 accept less than the amount of such penalty as imposed in settlement
2 thereof.
3 14. Revocation or suspension of licenses. (a) Any license issued under
4 the provisions of this section may be revoked or suspended by the
5 commission for the reason therein stated, that the licensee has, in the
6 judgment of the commission, been guilty of an act detrimental to the
7 interests of combative sports generally or to the public interest,
8 convenience or necessity.
9 (b) Without otherwise limiting the discretion of the commission as
10 provided in this section, the commission may suspend or revoke a license
11 or refuse to renew or issue a license, if it shall find that the appli-
12 cant or participant: (1) has been convicted of a crime in any jurisdic-
13 tion; (2) is associating or consorting with any person who has or
14 persons who have been convicted of a crime or crimes in any jurisdiction
15 or jurisdictions; (3) has been guilty of or attempted any fraud or
16 misrepresentation in connection with combative sports; (4) has violated
17 or attempted to violate any law with respect to combative sports in any
18 jurisdiction or any rule, regulation or order of the commission, or
19 shall have violated any rule of combative sports which shall have been
20 approved or adopted by the commission, or has been guilty of or engaged
21 in similar, related or like practices; or (5) has not acted in the best
22 interest of mixed martial arts. All determinations to issue, renew,
23 suspend or revoke a license shall be made in accordance with subdivision
24 sixteen of section two hundred ninety-six of the executive law and arti-
25 cle twenty-three-A of the correction law as applicable.
26 (c) No such participant may, under any circumstances, compete or
27 appear in a professional combative sports match or exhibition within
28 ninety days of having suffered a knockout or technical knockout in any
29 such match or exhibition without clearance by the board, or within nine-
30 ty days of being rendered unconscious in any such match or exhibition
31 where there is evidence of head trauma as determined by the attending
32 commission physician and shall undergo such examinations as required
33 under paragraph (b) of subdivision twenty of this section. The profes-
34 sional combative sports participant shall be considered suspended from
35 professional combative sports matches or exhibitions by the commission
36 and shall forfeit his license to the commission during such period and
37 such license shall not be returned to the participant until the partic-
38 ipant has met all requirements, medical and otherwise, for reinstatement
39 of such license. All such suspensions shall be recorded in the partic-
40 ipant's license by a commission official.
41 (d) The commission may at any time suspend, revoke or deny a partic-
42 ipant's license or temporary working permit for medical reasons at the
43 recommendation of the board.
44 (e) Notwithstanding any other provision of law, if any other state
45 shall revoke a licensee's license to compete or appear in a professional
46 combative sports match or exhibition in that state based on a knowing
47 and intentional engagement in any prohibited practices of such state,
48 the commission may act to revoke any license to compete or appear in a
49 professional combative sports match or exhibition issued to such licen-
50 see pursuant to the provisions of this section.
51 (f) The commission may suspend any license it has issued by a dated
52 notice to that effect to the suspended licensee, mailed or delivered to
53 the licensee, and specifying the effective date and term of the suspen-
54 sion, provided however that the commission representative in charge of a
55 contest or exhibition may then and there temporarily suspend any license
56 issued by the commission without such notice. In the event of a tempo-
S. 4209 125
1 rary suspension, the commission shall mail or deliver the notice to the
2 suspended licensee within three business days after the temporary
3 suspension. In either case such suspension may be without any advance
4 hearing. Upon the receipt of such notice of suspension, the suspended
5 licensee may apply to the commission for a hearing on the matter to
6 determine whether such suspension should be rescinded. Such application
7 for a hearing must be in writing and must be received by the commission
8 within thirty days after the date of notice of suspension. The commis-
9 sion shall have the authority to revoke any license issued by it. Before
10 any license is so revoked, the licensee will be offered the opportunity
11 at a hearing held by or on behalf of the commission to show cause why
12 the license should not be revoked. The commission shall offer the oppor-
13 tunity for a hearing to an affected person before taking any final
14 action negatively affecting such person's individual privileges or prop-
15 erty granted by a license duly issued by the commission or a contract
16 approved by and filed with the commission. In all such hearings, licen-
17 sees and other witnesses shall testify under oath or affirmation, which
18 may be administered by any commissioner or authorized representative of
19 the commission actually present. The commission shall be the sole judge
20 of the relevancy and competency of testimony and other evidence, the
21 credibility of witnesses, and the sufficiency of evidence. Hearings may
22 be conducted by representatives of the commission in the discretion of
23 the commission. In such cases, the commission representatives conducting
24 the hearing shall submit findings of fact and recommendations to the
25 commission, which shall not be binding on the commission.
26 15. Advertising matter to state admission price. It shall be the duty
27 of every entity promoting or conducting a professional combative sports
28 match or exhibition subject to the provisions of this section to cause
29 to be inserted in each show card, bill, poster, newspaper advertisement
30 of any professional combative sports match or exhibition given by it,
31 the price of admission thereto. Violation of the provisions of this
32 subdivision shall subject the entity to a fine of one hundred dollars.
33 16. Tickets to indicate purchase price. All tickets of admission to
34 any such combative sports match or exhibition shall be controlled by the
35 provisions of article twenty-five of the arts and cultural affairs law.
36 It shall be unlawful for any entity to admit to such match or exhibition
37 a number of people greater than the seating capacity of the place where
38 such match or exhibition is held. Violation of this subdivision shall be
39 a misdemeanor and shall be punishable as such and in addition shall
40 incur forfeiture of license.
41 17. Equipment of buildings for matches or exhibitions. All buildings
42 or structures used or intended to be used for holding or giving such
43 professional combative sports matches or exhibitions shall be properly
44 ventilated and provided with fire exits and fire escapes, and in all
45 manner conform to the laws, ordinances and regulations pertaining to
46 buildings in the city, town or village where situated.
47 18. Age of participants and spectators. No person under the age of
48 eighteen years shall participate in any professional combative sports
49 match or exhibition, and no person under sixteen years of age shall be
50 permitted to attend as a spectator; provided, however, that a person
51 under the age of sixteen shall be permitted to attend as a spectator if
52 accompanied by a parent or guardian.
53 19. Regulation of conduct of matches or exhibitions. (a) Except for
54 championship matches, which shall not be more than five rounds, no
55 combative sports match or exhibition shall be more than three rounds in
56 length. No participant shall be allowed to participate in more than
S. 4209 126
1 three matches or exhibitions or compete for more than sixty minutes
2 within seventy-two consecutive hours. No participant shall be allowed
3 to compete in any such match or exhibition without wearing a mouthguard
4 and a protective groin cup. At each professional combative sports match
5 or exhibition, there shall be in attendance a duly licensed referee who
6 shall direct and control the same. Before starting such contest the
7 referee shall ascertain from each participant the name of his manager or
8 chief second, and shall hold such manager or chief second responsible
9 for the conduct of his assistant seconds during the progress of the
10 match or exhibition. The commission shall have the power in its
11 discretion to declare forfeited any prize, remuneration or purse, or any
12 part thereof, belonging to the participants or one of them, or the share
13 thereof of any manager or chief second if in its judgment, such partic-
14 ipant or participants are not honestly competing or the participant or
15 manager or chief second of a participant, as the case may be, has
16 committed an act in the premises in violation of any rule, order or
17 regulation of the commission. The amount so forfeited shall be paid
18 within forty-eight hours to the commission. There shall also be in
19 attendance, three duly licensed judges who shall at the termination of
20 each such combative sports match or exhibition render their decision.
21 The winner of such match or exhibition shall be determined in accordance
22 with a scoring system prescribed by the commission. Provided, however,
23 that a participant may terminate the contest by signalling to the refer-
24 ee that such participant submits to the opponent.
25 (b) The commission may by rule, regulation or order, require the pres-
26 ence of any medical equipment and personnel at each professional comba-
27 tive sports match or exhibition as is necessary or beneficial for the
28 safety and protection of the contestants; and may also require the pres-
29 ence of an ambulance or other apparatus at the site of any such match or
30 exhibition or the promulgation of an emergency medical plan in lieu
31 thereof.
32 (c) The commission shall prescribe by rule or regulation the responsi-
33 bilities of managers, trainers and chief seconds prior to, during and
34 after a combative sports match or exhibition in order to promote the
35 safety of the participants at all times.
36 (d) The commission shall require by rule or regulation that any
37 professional combative sports participant licensed under this section
38 present to a designated commission official, before each match or exhi-
39 bition in which he fights in this state, a license which shall include
40 but not be limited to the following information: (1) the participant's
41 name, photograph, social security number, date of birth, and other iden-
42 tifying information; (2) the participant's prior match or exhibition
43 history including the dates, location, and decision of such matches or
44 exhibitions; and (3) the participant's medical history, relating to any
45 physical condition, medical test or procedure which relates to his abil-
46 ity to fight, and a record of all medical suspensions.
47 20. Examination by physician; cost. (a) All participants must be exam-
48 ined by a physician designated by the commission before entering the
49 ring and each such physician shall immediately file with the commission
50 a written report of such examination. The cost of any such examination,
51 as prescribed by a schedule of fees established by the commission, shall
52 be paid by the entity conducting the match or exhibition to the commis-
53 sion, which shall then pay the fee covering such cost to the examining
54 physician, in accordance with the rules of the commission.
55 (b) Any professional combative sports participant licensed or permit-
56 ted under this section rendered unconscious or suffering head trauma as
S. 4209 127
1 determined by the attending physician shall be immediately examined by
2 the attending commission physician and shall be required to undergo
3 neurological and neuropsychological examinations by a neurologist
4 including but not limited to a computed tomography or medically equiv-
5 alent procedure. Any participant so injured shall not appear in any
6 match or exhibition until results of such examinations are reviewed by
7 the commission. The results of all such examinations herein required
8 shall become a part of the participant's permanent medical records as
9 maintained by the commission and shall be used by the commission to
10 determine whether a participant shall be permitted to appear in any
11 future professional combative sports match or exhibition. The costs of
12 all such examinations called for in this paragraph shall be assumed by
13 the entity or promoter if such examinations are performed by a physician
14 approved by the commission.
15 (c) The commission may at any time require a licensed or permitted
16 participant to undergo a physical examination, including any neurologi-
17 cal or neuropsychological test or procedure. The cost of such exam shall
18 be assumed by the state.
19 21. Physician to be in attendance; powers of such physician. (a) It
20 shall be the duty of every entity licensed to conduct a combative sports
21 match or exhibition, to have in attendance at every match or exhibition
22 at least one physician designated by the commission as the rules shall
23 provide. The commission may establish a schedule of fees to be paid by
24 the licensee to cover the cost of such attendance. Such fees shall be
25 paid to the commission, which shall then pay such fees to the physicians
26 entitled thereto, in accordance with the rules of the commission.
27 (b) The physician shall terminate any professional combative sports
28 match or exhibition if in the opinion of such physician any participant
29 has received severe punishment or is in danger of serious physical inju-
30 ry. In the event of any serious physical injury, such physician shall
31 immediately render any emergency treatment necessary, recommend further
32 treatment or hospitalization if required, and fully report the entire
33 matter to the commission within twenty-four hours and if necessary,
34 subsequently thereafter. Such physician may also require that the
35 injured participant and his manager or chief second remain in the ring
36 or on the premises or report to a hospital after the contest for such
37 period of time as such physician deems advisable.
38 (c) Such physician may enter the ring at any time during a profes-
39 sional combative sports match or exhibition and may terminate the match
40 or exhibition if in his opinion the same is necessary to prevent severe
41 punishment or serious physical injury to a participant.
42 22. Bond. Before a license shall be granted to an entity to conduct a
43 professional combative sports match or exhibition, the applicant shall
44 execute and file with the comptroller a bond in an amount to be deter-
45 mined by the commission, to be approved as to form and sufficiency of
46 sureties thereon by the comptroller, conditioned for the faithful
47 performance by such entity of the provisions of this section and the
48 rules and regulations of the commission, and upon the filing and
49 approval of such bond the comptroller shall issue to such applicant a
50 certificate of such filing and approval, which shall be by such appli-
51 cant filed in the office of the commission with its application for
52 license, and no such license shall be issued until such certificate
53 shall be filed. In case of default in such performance, the commission
54 may impose upon the delinquent a penalty in the sum of not more than one
55 thousand dollars for each offense, which may be recovered by the attor-
56 ney general in the name of the people of the state of New York in the
S. 4209 128
1 same manner as other penalties are recovered by law; any amount so
2 recovered shall be paid into the treasury.
3 23. Bond for purses, salaries and other expenses. In addition to the
4 bond required by subdivision twenty-two of this section, each applicant
5 for a license to conduct professional combative sports matches or exhi-
6 bitions shall execute and file with the comptroller a bond in an amount
7 to be determined by the commission to be approved as to form and suffi-
8 ciency of sureties thereon by the comptroller, conditioned for and guar-
9 anteeing the payment of professional combative sports participants'
10 purses, salaries of club employees licensed by the commission, and the
11 legitimate expenses of printing tickets and all advertising material.
12 24. Duty to provide insurance for licensed professional combative
13 sports participants. (a) All entities having licenses as promoters
14 shall continuously provide insurance for the protection of licensed
15 professional combative sports participants, appearing in professional
16 combative sports matches or exhibitions. Such insurance coverage shall
17 provide for reimbursement to the licensed athlete for medical, surgical
18 and hospital care, with a minimum limit of fifty thousand dollars for
19 injuries sustained while participating in any program operated under the
20 control of such licensed promoter and for a payment of one hundred thou-
21 sand dollars to the estate of any deceased athlete where such death is
22 occasioned by injuries received during the course of a match or exhibi-
23 tion in which such licensed athlete participated under the promotion or
24 control of any licensed promoter. The commission may from time to time,
25 in its discretion, increase the amount of such minimum limits.
26 (b) The failure to pay premiums on such insurance as is required by
27 paragraph (a) of this subdivision shall be cause for the suspension or
28 the revocation of the license of such defaulting promoter.
29 25. Notice of contest; collection of tax. (a) Every entity holding any
30 professional combative sports match or exhibition for which an admission
31 fee is charged or received, shall notify the athletic commission ten
32 days in advance of the holding of such contest. All tickets of admission
33 to any such match or exhibition shall be procured from a printer duly
34 authorized by the state athletic commission to print such tickets and
35 shall bear clearly upon the face thereof the purchase price and location
36 of same. An entity failing to fully comply with this section shall be
37 subject to a penalty of five hundred dollars to be collected by and paid
38 to the department of state. An entity is prohibited from operating any
39 matches or exhibitions until all penalties due pursuant to this subdivi-
40 sion and taxes, interest and penalties due pursuant to article nineteen
41 of the tax law have been paid.
42 (b) Pursuant to direction by the commissioner of taxation and finance,
43 employees or officers of the athletic commission shall act as agents of
44 the commissioner of taxation and finance to collect the tax imposed by
45 article nineteen of the tax law. The athletic commission shall provide
46 the commissioner of taxation and finance with such information and tech-
47 nical assistance as may be necessary for the proper administration of
48 such tax.
49 26. Regulation of judges. (a) Judges for any professional combative
50 sports match or exhibition under the jurisdiction of the commission
51 shall be selected by the commission from a list of qualified licensed
52 judges maintained by the commission.
53 (b) Any professional combative sport participant, manager or chief
54 second may protest the assignment of a judge to a professional combative
55 sports match or exhibition and the protesting professional combative
56 sports participant, manager or chief second may be heard by the commis-
S. 4209 129
1 sion or its designee if such protest is timely. If the protest is
2 untimely it shall be summarily rejected.
3 (c) Each person seeking to be licensed as a judge by the commission
4 shall be required to submit to or provide proof of an eye examination
5 and annually thereafter on the anniversary of the issuance of the
6 license. Each person seeking to be a professional combative sports judge
7 in the state shall be certified as having completed a training program
8 as approved by the commission and shall have passed a written examina-
9 tion approved by the commission covering aspects of professional comba-
10 tive sports including, but not limited to, the rules of the sport, the
11 law of the state relating to the commission, and basic first aid. The
12 commission shall establish continuing education programs to keep licen-
13 sees current on areas of required knowledge.
14 (d) Each person seeking a license to be a professional combative
15 sports judge in this state shall be required to fill out a financial
16 questionnaire certifying under penalty of perjury full disclosure of the
17 judge's financial situation on a questionnaire to be promulgated by the
18 commission. Such questionnaire shall be in a form and manner approved by
19 the commission and shall provide information as to areas of actual or
20 potential conflicts of interest as well as appearances of such
21 conflicts, including financial responsibility. Within forty-eight hours
22 of any professional combative sports match or exhibition, each combative
23 sports judge shall file with the commission a financial disclosure
24 statement in such form and manner as shall be acceptable to the commis-
25 sion.
26 (e) Only a person licensed by the commission may judge a professional
27 combative sports match or exhibition.
28 27. Training facilities. (a) The commission may, in its discretion and
29 in accordance with regulations adopted by the commission to protect the
30 health and safety of professional combative sport participants in train-
31 ing, issue a license to operate a training facility providing contact
32 sparring maintained either exclusively or in part for the use of profes-
33 sional combative sport participants. The regulations of the commission
34 shall include, but not be limited to, the following subjects to protect
35 the health and safety of professional combative sport participants:
36 (1) requirements for first aid materials to be stored in an accessible
37 location on the premises and for the presence on the premises of a
38 person trained and certified in the use of such materials and procedures
39 for cardio-pulmonary resuscitation at all times during which the facili-
40 ty is open for training purposes;
41 (2) prominent posting adjacent to an accessible telephone of the tele-
42 phone number for emergency medical services at the nearest hospital;
43 (3) clean and sanitary bathrooms, shower rooms, locker rooms and food
44 serving and storage areas;
45 (4) adequate ventilation and lighting of accessible areas of the
46 training facility;
47 (5) establishment of a policy concerning the restriction of smoking in
48 training areas, including provisions for its enforcement by the facility
49 operator;
50 (6) compliance with state and local fire ordinances;
51 (7) inspection and approval of rings as required by subdivision thirty
52 of this section; and
53 (8) establishment of a policy for posting all commission license
54 suspensions and license revocations received from the commission includ-
55 ing provisions for enforcement of such suspensions and revocations by
56 the facility operator.
S. 4209 130
1 (b) A prospective licensee shall submit to the commission proof that
2 it can furnish suitable facilities in which the training is to be
3 conducted, including the making of such training facilities available
4 for inspection by the commission at any time during which training is in
5 progress.
6 28. Temporary training facilities. Any training facility providing
7 contact sparring established and maintained on a temporary basis for the
8 purpose of preparing a professional combative sport participant for a
9 specific professional combative sports match or exhibition to be
10 conducted, held or given within the state of New York shall be exempt
11 from this act insofar as it concerns the licensing of such facilities
12 if, in the judgment of the commission, establishment and maintenance of
13 such facility will be consistent with the purposes and provisions of
14 this chapter, the best interests of professional combative sports gener-
15 ally, and the public interest, convenience or necessity.
16 29. Weights; classes and rules. The weights and classes of combative
17 sport participants and the rules and regulations of professional comba-
18 tive sports shall be prescribed by the commission.
19 30. Rings or fighting areas. No professional combative sports match
20 or exhibition or training activity shall be permitted in any ring or
21 fighting area unless such ring or fighting area has been inspected and
22 approved by the commission. The commission shall prescribe standard
23 acceptable size and quality requirements for rings or fighting areas and
24 appurtenances thereto.
25 31. Misdemeanor. Any entity who intentionally, directly or indirectly
26 conducts, holds or gives a professional combative sports match or exhi-
27 bition or participates either directly or indirectly in any such match
28 or exhibition as a referee, judge, corporation treasurer, professional
29 combative sports participant, manager, promoter, trainer or chief
30 second, without first having procured an appropriate license or permit
31 as prescribed in this section shall be guilty of a misdemeanor.
32 § 3. Section 6 of chapter 912 of the laws of 1920 relating to the
33 regulation of boxing, sparring and wrestling, as amended by chapter 437
34 of the laws of 2002 and subdivision 1 as designated and subdivision 2 as
35 added by chapter 673 of the laws of 2003, is amended to read as follows:
36 § 6. Jurisdiction of commission. 1. The commission shall have and
37 hereby is vested with the sole direction, management, control and juris-
38 diction over all such boxing and sparring matches or exhibitions or
39 professional combative sports matches or exhibitions to be conducted,
40 held or given within the state of New York and over all licenses to any
41 and all persons who participate in such boxing or sparring matches or
42 exhibitions or professional combative sports matches or exhibitions and
43 over any and all gyms, clubs, training camps and other organizations
44 that maintain training facilities providing contact sparring for persons
45 who prepare for participation in such boxing or sparring matches or
46 exhibitions or professional combative sports matches or exhibitions, and
47 over the promotion of professional wrestling exhibitions or professional
48 combative sports matches or exhibitions to the extent provided for in
49 sections 5, 9, 19, 20, 28-a, 28-b and 33 of this act, except as other-
50 wise provided in this act.
51 2. The commission is authorized and directed to require that all sites
52 wherein boxing, sparring and wrestling matches and exhibitions or
53 professional combative sports matches or exhibitions are conducted shall
54 comply with state and applicable local sanitary codes appropriate to
55 school athletic facilities.
S. 4209 131
1 § 4. Subdivision 1 of section 451 of the tax law, as amended by
2 section 1 of part F of chapter 407 of the laws of 1999, is amended to
3 read as follows:
4 1. "Gross receipts from ticket sales" shall mean the total gross
5 receipts of every person from the sale of tickets to any professional or
6 amateur boxing, sparring or wrestling match or exhibition or any profes-
7 sional combative sports match or exhibition held in this state, and
8 without any deduction whatsoever for commissions, brokerage, distrib-
9 ution fees, advertising or any other expenses, charges and recoupments
10 in respect thereto.
11 § 5. Section 452 of the tax law, as amended by section 2 of part F of
12 chapter 407 of the laws of 1999, is amended to read as follows:
13 § 452. Imposition of tax. On and after October first, nineteen
14 hundred ninety-nine, a tax is hereby imposed and shall be paid upon the
15 gross receipts of every person holding any professional or amateur
16 boxing, professional combative sports, sparring or wrestling match or
17 exhibition in this state. Such tax shall be imposed on such gross
18 receipts, exclusive of any federal taxes, as follows:
19 (a) three percent of gross receipts from ticket sales, except that in
20 no event shall the tax imposed by this subdivision exceed fifty thousand
21 dollars for any match or exhibition;
22 (b) three percent of gross receipts from broadcasting rights, except
23 that in no event shall the tax imposed by this subdivision exceed fifty
24 thousand dollars for any match or exhibition.
25 (c) On and after the effective date of this subdivision, a tax is
26 hereby imposed and shall be paid upon the gross receipts of every person
27 holding any professional combative sports match or exhibition in this
28 state. Such tax shall be imposed on such gross receipts, exclusive of
29 any federal taxes, as follows:
30 (i) eight and one-half percent of gross receipts from ticket sales;
31 and
32 (ii) three percent of gross receipts from broadcasting rights, except
33 that in no event shall the tax imposed by this paragraph exceed fifty
34 thousand dollars for any match or exhibition.
35 § 6. Paragraph 1 of subdivision (f) of section 1105 of the tax law, as
36 amended by section 100 of part A of chapter 389 of the laws of 1997, is
37 amended to read as follows:
38 (1) Any admission charge where such admission charge is in excess of
39 ten cents to or for the use of any place of amusement in the state,
40 except charges for admission to race tracks, boxing, sparring or wrestl-
41 ing matches or exhibitions, or professional mixed martial arts matches
42 or exhibitions which charges are taxed under any other law of this
43 state, or dramatic or musical arts performances, or live circus perform-
44 ances, or motion picture theaters, and except charges to a patron for
45 admission to, or use of, facilities for sporting activities in which
46 such patron is to be a participant, such as bowling alleys and swimming
47 pools. For any person having the permanent use or possession of a box or
48 seat or a lease or a license, other than a season ticket, for the use of
49 a box or seat at a place of amusement, the tax shall be upon the amount
50 for which a similar box or seat is sold for each performance or exhibi-
51 tion at which the box or seat is used or reserved by the holder, licen-
52 see or lessee, and shall be paid by the holder, licensee or lessee.
53 § 7. Paragraph (b) of subdivision 6-c of section 106 of the alcoholic
54 beverage control law, as added by chapter 254 of the laws of 2001, is
55 amended to read as follows:
S. 4209 132
1 (b) The prohibition contained in paragraph (a) of this subdivision,
2 however, shall not be applied to any professional match or exhibition
3 which consists of boxing, professional combative sports, sparring, wres-
4 tling, or martial arts [and which is] that are excepted from the defi-
5 nition of the term "combative sport" contained in subdivision one of
6 section five-a of chapter nine hundred twelve of the laws of nineteen
7 hundred twenty, as added by chapter fourteen of the laws of nineteen
8 hundred ninety-seven.
9 § 8. This act shall take effect on the ninetieth day after it shall
10 have become a law; provided, however, that effective immediately, the
11 addition, amendment and/or repeal of any rule or regulation necessary
12 for the implementation of this act on its effective date is authorized
13 and directed to be made and completed on or before such effective date.
14 PART YY
15 Section 1. Subparagraph (i) of the opening paragraph of section 1210
16 of the tax law is REPEALED and a new subparagraph (i) is added to read
17 as follows:
18 (i) with respect to a city of one million or more and the following
19 counties (1) any such city having a population of one million or more is
20 hereby authorized and empowered to adopt and amend local laws, ordi-
21 nances or resolutions imposing such taxes in any such city, at the rate
22 of four and one-half percent;
23 (2) the following counties that impose taxes described in subdivision
24 (a) of this section at the rate of three percent as authorized above in
25 this paragraph for such counties are hereby further authorized and
26 empowered to adopt and amend local laws, ordinances, or resolutions
27 imposing such taxes described in subdivision (a) of this section at the
28 following additional rates, in quarter percent increments, which rates
29 are additional to the three percent rate authorized above in this para-
30 graph, and, in the case of a county authorized to impose more than one
31 additional rate, also in addition to each other, for each such county,
32 provided that (A) the county of Rockland may impose additional rates of
33 five-eighths percent and three-eighths percent, in lieu of imposing such
34 additional rate in quarter percent increments; (B) the county of Ontario
35 may impose additional rates of one-eighth percent and three-eighths
36 percent, in lieu of imposing such additional rate in quarter percent
37 increments; (C) three-quarters percent of the additional rate authorized
38 to be imposed by the county of Nassau shall be subject to the limitation
39 set forth in section twelve hundred sixty-two-e of this article:
40 (A) One-quarter of one percent - None.
41 (B) One-half of one percent - Chautauqua, Ontario, Schenectady.
42 (C) Three-quarters of one percent - Dutchess, Jefferson, Orange.
43 (D) One percent - Albany, Broome, Cattaraugus, Cayuga, Chemung,
44 Chenango, Clinton, Columbia, Cortland, Delaware, Essex, Franklin,
45 Fulton, Genesee, Greene, Hamilton, Lewis, Livingston, Madison, Monroe,
46 Montgomery, Niagara, Onondaga, Orleans, Oswego, Otsego, Putnam, Rensse-
47 laer, Rockland, St. Lawrence, Schoharie, Schuyler, Seneca, Steuben,
48 Suffolk, Sullivan, Tioga, Tompkins, Ulster, Wayne, Wyoming, Yates.
49 (E) One and one-quarter percent - Herkimer, Nassau.
50 (F) One and one-half percent - Allegany.
51 (G) One and three-quarters percent - Erie, Oneida.
52 § 2. Subparagraph (ii) of the opening paragraph of section 1210 of the
53 tax law is REPEALED and a new subparagraph (ii) is added to read as
54 follows:
S. 4209 133
1 (ii) the following cities that impose taxes described in subdivision
2 (a) of this section at the rate of one and one-half percent or higher as
3 authorized above in this paragraph for such cities are hereby further
4 authorized and empowered to adopt and amend local laws, ordinances, or
5 resolutions imposing such taxes described in subdivision (a) of this
6 section at the following additional rates, in quarter percent incre-
7 ments, which rates are additional to the one and one-half percent or
8 higher rates authorized above in this paragraph and, in the case of a
9 city authorized to impose more than one additional rate, also in addi-
10 tion to each other, for each such city:
11 (1) One-quarter of one percent - None.
12 (2) One-half of one percent - None.
13 (3) Three-quarters of one percent - None.
14 (4) One percent - Mount Vernon; Yonkers; Oswego, for the period begin-
15 ning December first, two thousand thirteen, and ending November thirti-
16 eth, two thousand fifteen; New Rochelle, for the period beginning Janu-
17 ary first, two thousand thirteen, and ending December thirty-first, two
18 thousand fifteen; White Plains, for the period beginning September
19 first, two thousand thirteen, and ending August thirty-first, two thou-
20 sand fifteen.
21 (5) One and one-quarter percent - None.
22 (6) One and one-half percent - None.
23 (7) One and three-quarters percent - None.
24 § 3. Subparagraph (iii) of the opening paragraph of section 1210 of
25 the tax law is REPEALED and a new subparagraph (iii) is added to read as
26 follows:
27 (iii) the maximum rate referred to in section twelve hundred twenty-
28 four of this article shall be calculated without reference to the addi-
29 tional rates authorized for counties, other than the counties of Cayuga,
30 Cortland, Fulton, Madison, and Otsego in subparagraph (i) and the cities
31 in subparagraph (ii) of this paragraph.
32 § 4. Section 1210 of the tax law is amended by adding a new subdivi-
33 sion (q) to read as follows:
34 (q) Notwithstanding any provision of this section or any other law, a
35 county may, by a majority vote of its governing body, pass a local law,
36 ordinance or resolution to impose the additional rate or rates of such
37 sales and compensating use taxes authorized by clause two of subpara-
38 graph (i) of the opening paragraph of this section for a period not to
39 exceed two years. Any such local law, ordinance, or resolution shall
40 also be subject to the provisions of subdivisions (d) and (e) of this
41 section.
42 § 5. Section 1210-E of the tax law is REPEALED.
43 § 6. Subdivisions (d), (e), (f), (g), (h) (i), (j), (k), (l), (m),
44 (n), (o), (p), (q), (r), (t), (u), (v), (w), (x), (y), (z), (z-1), (aa),
45 (bb), (cc), (dd), (ee), (ff) and (gg) of section 1224 of the tax law are
46 REPEALED.
47 § 7. Section 1224 of the tax law is amended by adding four new subdi-
48 visions (d),(e), (f), and (g) to read as follows:
49 (d) For purposes of this section, the term "prior right" shall mean
50 the preferential right to impose any tax described in sections twelve
51 hundred two and twelve hundred three, or twelve hundred ten and twelve
52 hundred eleven, of this article and thereby to preempt such tax and to
53 preclude another municipal corporation from imposing or continuing the
54 imposition of such tax to the extent that such right is exercised.
55 However, the right of preemption shall only apply within the territorial
56 limits of the taxing jurisdiction having the right or preemption.
S. 4209 134
1 (e) Each of the following counties and cities shall have the sole
2 right to impose the following additional rate of sales and compensating
3 use taxes in excess of three percent that such county or city is author-
4 ized to impose pursuant to the authority of subdivision (a) of section
5 twelve hundred ten of this article. Such additional rates of tax shall
6 not be subject to preemption.
7 (1) Counties:
8 (A) One-quarter of one percent - None.
9 (B) One-half of one percent - Chautauqua, Ontario, Schenectady.
10 (C) Three-quarters of one percent - Dutchess, Jefferson, Orange.
11 (D) One percent - Albany, Broome, Cattaraugus, Chemung, Chenango,
12 Clinton, Columbia, Delaware, Essex, Franklin, Genesee, Greene, Hamilton,
13 Lewis, Livingston, Monroe, Montgomery, Niagara, Onondaga, Orleans, Otse-
14 go, Putnam, Rensselaer, Rockland, St. Lawrence, Schoharie, Schuyler,
15 Seneca, Steuben, Suffolk, Sullivan, Tioga, Tompkins, Ulster, Wayne,
16 Wyoming, Yates.
17 (E) One and one-quarter percent - Herkimer, Nassau.
18 (F) One and one-half percent - Allegany.
19 (G) One and three-quarters percent - Erie, Oneida.
20 (2) Cities:
21 (A) One-quarter of one percent - None.
22 (B) One-half of one percent - None.
23 (C) Three-quarters of one percent - None.
24 (D) One percent - Mount Vernon, New Rochelle, White Plains, Yonkers.
25 (f) Each of the following cities is authorized to preempt the taxes
26 imposed by the county in which it is located pursuant to the authority
27 of subdivision (a) of section twelve hundred ten of this article, to the
28 extent of one-half the maximum aggregate rate authorized under section
29 twelve hundred ten of this article, including the additional rate that
30 the county in which such city is located is authorized to impose:
31 Auburn, in Cayuga county; Cortland, in Cortland county; Gloversville and
32 Johnstown, in Fulton county; Oneida, in Madison county; Oneonta, in
33 Otsego county. As of the date this subdivision takes effect, any such
34 preemption by such a city in effect on such date shall continue in full
35 force and effect until the effective date of a local law, ordinance, or
36 resolution adopted or amended by the city to change such preemption,
37 provided such a city's rate of tax in excess of one and one-half percent
38 shall not continue in effect if the county in which it is located does
39 not extend its additional rate in excess of three percent. Any
40 preemption by such a city to take effect under this subdivision after
41 the date this subdivision takes effect shall be subject to the notice
42 requirements in section twelve hundred twenty-three of this subpart and
43 to the other requirements of this article.
44 (g) Notwithstanding the foregoing provisions of this section or other
45 law, if the county of Dutchess withdraws from the metropolitan commuter
46 transportation district and imposes the additional three-eighths percent
47 rate of tax, the net collections from which the county has set aside for
48 mass transportation purposes, as authorized by subparagraph (iv) of the
49 opening paragraph of section twelve hundred ten of this article, such
50 additional three-eighths percent rate of tax shall be in addition to any
51 other additional rate of tax such county is authorized to impose and
52 shall not be subject to preemption and such county shall not include
53 such additional three-eighths percent rate of tax in determining its
54 additional rate of tax on the area of the county outside any city in the
55 county imposing tax for purposes of subdivision (d) of section twelve
56 hundred sixty-two of this article.
S. 4209 135
1 § 8. The tax law is amended by adding three new sections 1262-t,
2 1262-u, and 1262-v to read as follows:
3 § 1262-t. Oneida county net collections from additional rate of tax.
4 Net collections from an additional three-quarters percent rate of Oneida
5 county's sales and compensating use taxes imposed pursuant to the
6 authority of clause two of subparagraph (i) of the opening paragraph of
7 section twelve hundred ten of this article shall not be subject to any
8 revenue distribution agreement entered into by the county and the cities
9 in the county under subdivision (c) of section twelve hundred sixty-two
10 of this part.
11 § 1262-u. Clinton county net collections from additional rate of tax.
12 Net collections from any additional rate of sales and compensating use
13 taxes Clinton county imposes pursuant to the authority of clause two of
14 subparagraph (i) of the opening paragraph of section twelve hundred ten
15 of this article shall be paid to the county and the county shall set
16 aside such net collections and use them solely for county purposes. Such
17 net collections shall not be subject to any revenue distribution agree-
18 ment entered into by the county and the city in the county under subdi-
19 vision (c) of section twelve hundred sixty-two of this part.
20 § 1262-v. Ontario county net collections from additional rate of tax.
21 Notwithstanding any law to the contrary, after Ontario county allocates
22 net collections from its additional one-eighth of one percent rate of
23 sales and compensating use taxes pursuant to the authority of section
24 twelve hundred sixty-two-r of this part, as added by chapter thirty-sev-
25 en of the laws of two thousand six, net collections from the county's
26 additional three-eighths of one percent rate of such taxes shall be set
27 aside for county purposes and shall not be subject to any agreement
28 entered into by the county and the cities in the county under subdivi-
29 sion (c) of section twelve hundred sixty-two or section twelve hundred
30 sixty-two-r of this part, as added by chapter thirty-seven of the laws
31 of two thousand six.
32 § 9. Section 1262-s of the tax law, as amended by chapter 328 of the
33 laws of 2013, is amended to read as follows:
34 § 1262-s. Disposition of net collections from the additional one-quar-
35 ter of one percent rate of sales and compensating use taxes in the coun-
36 ty of Herkimer. Notwithstanding any contrary provision of law, if the
37 county of Herkimer imposes the additional one-quarter of one percent
38 rate of sales and compensating use taxes in excess of four percent
39 authorized by [section twelve hundred ten-E] the opening paragraph of
40 section twelve hundred ten of this article [for all or any portion of
41 the period beginning December first, two thousand seven and ending
42 November thirtieth, two thousand fifteen], the county shall use all net
43 collections from such additional one-quarter of one percent rate to pay
44 the county's expenses for the construction of additional correctional
45 facilities. The net collections from [the] such additional rate imposed
46 [pursuant to section twelve hundred ten-E] shall be deposited in a
47 special fund to be created by such county separate and apart from any
48 other funds and accounts of the county. Any and all remaining net
49 collections from such additional tax, after the expenses of such
50 construction are paid, shall be deposited by the county of Herkimer in
51 the general fund of such county for any county purpose.
52 § 10. The tax law is amended by adding a new section 1265 to read as
53 follows:
54 § 1265. References to certain provisions authorizing additional rates
55 or to expirations of a period. Notwithstanding any provision of law to
56 the contrary: Any reference in any section of this chapter or other law,
S. 4209 136
1 or in any local law, ordinance, or resolution adopted pursuant to the
2 authority of this article, or in any agreement entered into by a county
3 and all the cities in that county under subdivision (c) of section
4 twelve hundred sixty-two of this part, to net collections or revenues
5 from a tax imposed by a county or city pursuant to the authority of a
6 clause, or to a subclause of a clause, of subparagraph (i) or (ii) of
7 the opening paragraph of section twelve hundred ten of this article
8 repealed by section one or two of the chapter of the laws of two thou-
9 sand fifteen that added this section or to section twelve hundred ten-E
10 of this article repealed by section five of such chapter of the laws of
11 two thousand fifteen shall be deemed to be a reference to net
12 collections or revenues from a tax imposed by that county or city pursu-
13 ant to the authority of the equivalent provision of clause two of
14 subparagraph (i) or to subparagraph (ii) of the opening paragraph of
15 such section twelve hundred ten as added by such section one or two of
16 such chapter of the laws of two thousand fifteen.
17 § 11. Severability. If any provision of this act shall for any reason
18 be finally adjudged by any court of competent jurisdiction to be inval-
19 id, such judgment shall not affect, impair, or invalidate the remainder
20 of this act, but shall be confined in its operation to the provision
21 directly involved in the controversy in which such judgment shall have
22 been rendered. It it hereby declared to be the intent of the legislature
23 that this act would have been enacted even if such invalid provision had
24 not been included in this act.
25 § 12. This act shall take effect immediately.
26 PART ZZ
27 Section 1. Short title. This act shall be known and may be cited as
28 the "New York aviation jobs act".
29 § 2. Paragraph 1 of subdivision (dd) of section 1115 of the tax law,
30 as added by section 1 of part L of chapter 60 of the laws of 2004, is
31 amended to read as follows:
32 (1) Services otherwise taxable under paragraph three of subdivision
33 (c) of section eleven hundred five or under section eleven hundred ten
34 of this article, sales of general aviation aircraft, and tangible
35 personal property purchased and used by the person who sells such
36 services in performing such services, where such property becomes a
37 physical component part of the property upon which the services are
38 performed or where such property is a lubricant applied to aircraft,
39 shall be exempt from tax under this article where such services are
40 performed on aircraft.
41 § 3. The commissioner of taxation and finance, in conjunction with the
42 commissioner of transportation, shall review and analyze all statistical
43 data available for the purpose of determining the economic and revenue
44 impact of the sales and compensating use tax exemption for the sale of
45 general aviation aircraft enacted by section two of this act. Such
46 review and analysis shall include, but not be limited to, any increases
47 in aviation-related employment, aircraft basing, aircraft maintenance
48 and aircraft hangering within the state. The commissioner shall compile
49 his or her findings into a report, which shall be submitted, on or
50 before November 1, 2020, to the governor, the temporary president of the
51 senate and the speaker of the assembly.
52 § 4. This act shall take effect April 1, 2016, and shall apply to
53 sales of general aviation aircraft made and uses occurring on or after
54 such effective date in accordance with the applicable transitional
S. 4209 137
1 provisions of sections 1106 and 1107 of the tax law, but shall not apply
2 to sales occurring after March 31, 2021, and section two of this act
3 shall expire and be deemed repealed April 1, 2021. Provided, however,
4 that aircraft subject to exemption pursuant to paragraph 1 of subdivi-
5 sion (dd) of section 1115 of the tax law, as amended by section two of
6 this act, shall remain so exempt after the expiration and repeal of
7 section two of this act, including instances where the aircraft is
8 subsequently sold or the ownership is transferred or assigned, for the
9 useful life of the aircraft. Provided, further, that the commissioner of
10 taxation and finance shall be immediately authorized to adopt and amend
11 any rules or regulations and to issue any procedure, forms or
12 instructions necessary to implement section two of this act on its
13 effective date.
14 PART AAA
15 Section 1. Section 1118 of the tax law is amended by adding a new
16 subdivision 13 to read as follows:
17 (13) (a) In respect to the use of a vessel by the purchaser thereof in
18 this state for not more than twenty days per calendar year.
19 (b) If a vessel brought into this state for use under this paragraph
20 is placed in a qualified facility for repairs, alterations, refitting,
21 or modifications and such repairs, alterations, refitting, or modifica-
22 tions are supported by written documentation, the twenty-day period
23 shall be tolled during the time the vessel is physically in the care,
24 custody, and control of a qualified facility, including the time spent
25 on sea trials conducted by such facility. The twenty-day period may be
26 tolled only once within a calendar year when a vessel is placed for the
27 first time in such calendar year in the physical care, custody, and
28 control of a qualified facility; however, the commissioner may grant
29 upon written request of the owner of such vessel an additional tolling
30 of the twenty-day period for purposes of repairs that arise from a writ-
31 ten guarantee given by such facility, which guarantee covers only those
32 repairs or modifications made during the first tolled period. Within
33 seventy-two hours after the date upon which such facility took
34 possession of the vessel, the owner must obtain documentation, in such
35 form as the commissioner shall prescribe, which states that the vessel
36 is under the care, custody, and control of a qualified facility and that
37 the owner does not use the vessel while in such facility. Upon
38 completion of the repairs, alterations, refitting, or modifications, the
39 owner must obtain from such facility within seventy-two hours after the
40 date the vessel is released, documentation that shows the date of
41 release and any other information the commissioner may require. Such
42 facility shall maintain a log that documents all alterations, additions,
43 repairs, and sea trials during the time a vessel is under its care,
44 custody, and control. Such documentation shall be maintained by such
45 owner and facility for at least three years from the date such vessel is
46 released.
47 (c) If a vessel is brought into the state for the sole purpose of
48 offering it for sale under a contract with a broker or dealer registered
49 pursuant to section eleven hundred thirty-four of this article, such
50 vessel is exclusively in the care, custody and control of such broker or
51 dealer, and no person makes recreational use of such vessel, the twen-
52 ty-day period shall be tolled during the time such vessel is in the
53 care, custody and control of such broker or dealer.
S. 4209 138
1 (d) The mere storage of a boat at a qualified facility does not quali-
2 fy as a tax-exempt use in this state.
3 (e) As used in this subdivision, "qualified facility" means a marina
4 or similar facility within the state that:
5 (i) is located on a navigable body of water;
6 (ii) has piers and storage facilities to provide berthing of vessels
7 in its care, custody, and control; and
8 (iii) has necessary shops and equipment to provide repair, alteration,
9 refitting, modification or warranty work on vessels.
10 § 2. This act shall take effect immediately.
11 PART BBB
12 Section 1. Section 606 of the tax law is amended by adding a new
13 subsection (ccc) to read as follows:
14 (ccc) Credit for rehabilitation of distressed commercial properties.
15 (1) For taxable years beginning on or after January first, two thousand
16 fifteen, a taxpayer shall be allowed a credit as hereinafter provided,
17 against the tax imposed by this article, in an amount equal to thirty
18 percent of the qualified rehabilitation expenditures made by the taxpay-
19 er with respect to a qualified distressed commercial property. Provided,
20 however, the credit shall not exceed one hundred thousand dollars.
21 (2) Tax credits allowed pursuant to this subsection shall be allowed
22 in the taxable year in which the property is deemed a certified rehabil-
23 itation.
24 (3) If the amount of the credit allowable under this subsection for
25 any taxable year shall exceed the taxpayer's tax for such year, the
26 excess may be carried over to the following year or years, and may be
27 applied against the taxpayer's tax for such year or years, but shall not
28 exceed twenty-five thousand dollars.
29 (4) (A) The term "qualified rehabilitation expenditure" means, for
30 purposes of this subsection, any amount properly chargeable to a capital
31 account:
32 (i) in connection with the certified rehabilitation of a qualified
33 distressed commercial property, and
34 (ii) for property for which depreciation would be allowable under
35 section 168 of the internal revenue code.
36 (B) Such term shall not include (i) the cost of acquiring any building
37 or interest therein, (ii) any expenditure attributable to the enlarge-
38 ment of an existing building, or (iii) any expenditure made prior to
39 January first, two thousand fifteen or after December thirty-first, two
40 thousand twenty.
41 (5) The term "certified rehabilitation" means, for purposes of this
42 subsection, any rehabilitation of a certified distressed commercial
43 property which has been approved and certified by a local government as
44 being completed, with a certificate of occupancy issued, and that the
45 costs are consistent with the work completed. Such certification shall
46 be acceptable as proof that the expenditures related to such rehabili-
47 tation qualify as qualified rehabilitation expenditures for purposes of
48 the credit allowed under paragraph one of this subsection.
49 (6) (A) The term "qualified distressed commercial property" means, for
50 purposes of this subsection, a distressed commercial property located
51 within New York state:
52 (i) which has been substantially rehabilitated,
53 (ii) which is owned by the taxpayer, and
S. 4209 139
1 (iii) which is located within a distressed commercial area, as identi-
2 fied by each locality through local law, that is deemed an area in need
3 of community renewal due to dilapidation and vacancies.
4 (B) If the distressed commercial property is rental property, such
5 property shall have been more than thirty percent vacant for twelve
6 months while actively marketed for lease.
7 (C) A building shall be treated as having been "substantially rehabil-
8 itated" if the qualified rehabilitation expenditures in relation to such
9 building total ten thousand dollars or more.
10 (7) (A) If the taxpayer disposes of such taxpayer's interest in the
11 qualified distressed commercial property, or such property ceases to be
12 used as a commercial property of the taxpayer within five years of
13 receiving the credit under this subsection, the taxpayer's tax imposed
14 by this article for the taxable year in which such disposition or cessa-
15 tion occurs shall be increased by the recapture portion of the credit
16 allowed under this subsection for all prior taxable years with respect
17 to such rehabilitation.
18 (B) For purposes of subparagraph (A) of this paragraph, the recapture
19 portion shall be the product of the amount of credit claimed by the
20 taxpayer multiplied by a ratio, the numerator of which is equal to sixty
21 less the number of months the building is owned or used as commercial
22 property by the taxpayer and the denominator of which is sixty.
23 (8) Any expenditure for which a credit is claimed under this
24 subsection shall not be eligible for any other credit under this chap-
25 ter.
26 § 2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
27 of the tax law is amended by adding a new clause (xli) to read as
28 follows:
29 (xli) Credit for rehabilitationAmount of credit under
30 of distressed commercial propertiessubdivision forty-nine
31 under subsection (ccc)of section two hundred ten-B
32 § 3. Section 210-B of the tax law is amended by adding a new subdivi-
33 sion 49 to read as follows:
34 49. Credit for rehabilitation of distressed commercial properties. (1)
35 For taxable years beginning on or after January first, two thousand
36 fifteen, a taxpayer shall be allowed a credit as hereinafter provided,
37 against the tax imposed by this article, in an amount equal to thirty
38 percent of the qualified rehabilitation expenditures made by the taxpay-
39 er with respect to a qualified distressed commercial property. Provided,
40 however, the credit shall not exceed one hundred thousand dollars.
41 (2) Tax credits allowed pursuant to this subdivision shall be allowed
42 in the taxable year in which the property is deemed a certified rehabil-
43 itation.
44 (3) If the amount of the credit allowable under this subdivision for
45 any taxable year shall exceed the taxpayer's tax for such year, the
46 excess may be carried over to the following year or years, and may be
47 applied against the taxpayer's tax for such year or years, but shall not
48 exceed twenty-five thousand dollars.
49 (4) (A) The term "qualified rehabilitation expenditure" means, for
50 purposes of this subdivision, any amount properly chargeable to a capi-
51 tal account:
52 (i) in connection with the certified rehabilitation of a qualified
53 commercial property, and
54 (ii) for property for which depreciation would be allowable under
55 section 168 of the internal revenue code.
S. 4209 140
1 (B) Such term shall not include (i) the cost of acquiring any building
2 or interest therein, (ii) any expenditure attributable to the enlarge-
3 ment of an existing building, or (iii) any expenditure made prior to
4 January first, two thousand fifteen or after December thirty-first, two
5 thousand twenty.
6 (5) The term "certified rehabilitation" means, for purposes of this
7 subdivision, any rehabilitation of a certified distressed commercial
8 property which has been approved and certified by a local government as
9 being completed, with a certificate of occupancy issued, and that the
10 costs are consistent with the work completed. Such certification shall
11 be acceptable as proof that the expenditures related to such rehabili-
12 tation qualify as qualified rehabilitation expenditures for purposes of
13 the credit allowed under paragraph one of this subdivision.
14 (6) (A) The term "qualified distressed commercial property" means, for
15 purposes of this subdivision, a distressed commercial property located
16 within New York state:
17 (i) which has been substantially rehabilitated,
18 (ii) which is owned by the taxpayer, and
19 (iii) which is located within a distressed commercial area, as identi-
20 fied by each locality through local law, that is deemed an area in need
21 of community renewal due to dilapidation and vacancies.
22 (B) If the distressed commercial property is rental property, such
23 property shall have been more than thirty percent vacant for twelve
24 months while actively marketed for lease.
25 (C) A building shall be treated as having been "substantially rehabil-
26 itated" if the qualified rehabilitation expenditures in relation to such
27 building total ten thousand dollars or more.
28 (7) (A) If the taxpayer disposes of such taxpayer's interest in the
29 qualified distressed commercial property, or such property ceases to be
30 used as a commercial property of the taxpayer within five years of
31 receiving the credit under this subdivision, the taxpayer's tax imposed
32 by this article for the taxable year in which such disposition or cessa-
33 tion occurs shall be increased by the recapture portion of the credit
34 allowed under this subdivision for all prior taxable years with respect
35 to such rehabilitation.
36 (B) For purposes of subparagraph (A) of this paragraph, the recapture
37 portion shall be the product of the amount of credit claimed by the
38 taxpayer multiplied by a ratio, the numerator of which is equal to sixty
39 less the number of months the building is owned or used as commercial
40 property by the taxpayer and the denominator of which is sixty.
41 (8) Any expenditure for which a credit is claimed under this subdivi-
42 sion shall not be eligible for any other credit under this chapter.
43 § 4. This act shall take effect immediately and shall apply to taxable
44 years beginning on or after January 1, 2015.
45 PART CCC
46 Section 1. Paragraph 1 of subdivision (f) of section 16 of the tax
47 law, as amended by section 34 of part A of chapter 59 of the laws of
48 2014, is amended to read as follows:
49 (1) General. The tax factor shall be, in the case of article nine-A of
50 this chapter, the amount of tax determined for the taxable year under
51 paragraph (a) of subdivision one of section two hundred ten of such
52 article. The tax factor shall be, in the case of article twenty-two of
53 this chapter, the tax determined for the taxable year under subsections
54 (a) through (d) of section six hundred one of such article. Provided
S. 4209 141
1 however, taxpayers filing under article twenty-two of this chapter shall
2 include for the purposes of the tax factor all business income attribut-
3 able to a QEZE business which is taxable under article twenty-two of
4 this chapter. The tax factor shall be, in the case of article thirty-
5 three of this chapter, the larger of the amounts of tax determined for
6 the taxable year under paragraphs one and three of subdivision (a) of
7 section fifteen hundred two of such article.
8 § 2. This act shall take effect immediately.
9 PART DDD
10 Section 1. Paragraph 1 of subdivision (c) of section 1105 of the tax
11 law, as amended by chapter 583 of the laws of 2011, is amended to read
12 as follows:
13 (1) The furnishing of information by printed, mimeographed or multi-
14 graphed matter or by duplicating written or printed matter in any other
15 manner, including the services of collecting, compiling or analyzing
16 information of any kind or nature and furnishing reports thereof to
17 other persons, but excluding the furnishing of information which is
18 personal or individual in nature and which is not or may not be substan-
19 tially incorporated in reports furnished to other persons, and excluding
20 the services of advertising or other agents, or other persons acting in
21 a representative capacity, and information services used by newspapers,
22 electronic news services, radio broadcasters and television broadcasters
23 in the collection and dissemination of news, and excluding meteorologi-
24 cal services, and excluding the sale of an abstract of title to real
25 property to be used for agricultural purposes to either a prospective
26 purchaser of real property or to an attorney representing a prospective
27 purchaser.
28 § 2. This act shall take effect immediately.
29 PART EEE
30 Section 1. Subdivision (a) of section 1115 of the tax law is amended
31 by adding a new paragraph 44 to read as follows:
32 (44) School buses as such term is defined in section one hundred
33 forty-two of the vehicle and traffic law, and parts, equipment, lubri-
34 cants and fuel purchased and used in their operation.
35 § 2. This act shall take effect on the first day of a quarterly sales
36 tax period, as set forth in subdivision (b) of section 1136 of the tax
37 law, next succeeding April 1, 2018. Provided, however, that the commis-
38 sioner of taxation and finance may take any action necessary for the
39 timely implementation of this act on or before the date on which it
40 shall have become a law.
41 PART FFF
42 Section 1. Subdivision (a) of section 1115 of the tax law is amended
43 by adding a new paragraph 44 to read as follows:
44 (44) Energy efficient tangible personal property of whatever nature
45 for use or consumption directly and exclusively: (i) in the production
46 of snow; (ii) in the uphill transportation of skiers; or (iii) in the
47 grooming and maintenance of snow by any person engaged in the business
48 of operating a recreational facility for skiing.
49 § 2. Section 1115 of the tax law is amended by adding a new subdivi-
50 sion (jj) to read as follows:
S. 4209 142
1 (jj) Fuel, gas, electricity and refrigeration, and gas, electric and
2 refrigeration service of whatever nature for use or consumption directly
3 and exclusively in the production of snow by any person engaged in the
4 business of operating a recreational facility for skiing, shall be
5 exempt from the taxes imposed under subdivisions (a) and (b) of section
6 eleven hundred five and the compensating use tax imposed under section
7 eleven hundred ten of this article.
8 § 3. This act shall take effect on the first of July next succeeding
9 the date on which it shall have become a law.
10 PART GGG
11 Section 1. Paragraphs 3 and 4 of subsection (b) of section 800 of the
12 tax law, paragraph 3 as amended and paragraph 4 as added by section 1 of
13 part B of chapter 56 of the laws of 2011, are amended and a new para-
14 graph 5 is added to read as follows:
15 (3) an interstate agency or public corporation created pursuant to an
16 agreement or compact with another state or the Dominion of Canada; [or]
17 (4) [Any] any eligible educational institution. An "eligible educa-
18 tional institution" shall mean any public school district, a board of
19 cooperative educational services, a public elementary or secondary
20 school, a school approved pursuant to article eighty-five or eighty-nine
21 of the education law to serve students with disabilities of school age,
22 or a nonpublic elementary or secondary school that provides instruction
23 in grade one or above[.]; or
24 (5) any county, town, city, village or other political subdivision
25 except a city with a population of one million inhabitants or more.
26 § 2. This act shall take effect immediately.
27 PART HHH
28 Section 1. Paragraph 4 of subsection (b) of section 800 of the tax
29 law, as added by section 1 of part B of chapter 56 of the laws of 2011,
30 is amended to read as follows:
31 (4) Any eligible educational institution. An "eligible educational
32 institution" shall mean any public school district, a board of cooper-
33 ative educational services, a public elementary or secondary school, a
34 school approved pursuant to article eighty-five or eighty-nine of the
35 education law to serve students with disabilities of school age, or a
36 nonpublic elementary or secondary school that provides instruction in
37 grade one or above, all public library systems as defined in subdivision
38 one of section two hundred seventy-two of the education law, and all
39 public and free association libraries as such terms are defined in
40 subdivision two of section two hundred fifty-three of the education law.
41 § 2. This act shall take effect immediately.
42 PART III
43 Section 1. Paragraph 4 of subsection (b) of section 800 of the tax
44 law, as added by section 1 of part B of chapter 56 of the laws of 2011,
45 is amended to read as follows:
46 (4) Any eligible educational institution. An "eligible educational
47 institution" shall mean any public school district, a board of cooper-
48 ative educational services, a public elementary or secondary school, a
49 school approved pursuant to article eighty-five or eighty-nine of the
50 education law to serve students with disabilities of school or preschool
S. 4209 143
1 age, or a nonpublic elementary or secondary school that provides
2 instruction in grade one or above.
3 § 2. This act shall take effect immediately and shall apply to taxable
4 years beginning on or after January 1, 2016.
5 PART JJJ
6 Section 1. Subparagraph (A) of paragraph 2 of subsection (t) of
7 section 606 of the tax law, as amended by section 1 of part N of chapter
8 85 of the laws of 2002, is amended to read as follows:
9 (A) The term "allowable college tuition expenses" shall mean the
10 amount of qualified college tuition expenses of eligible students paid
11 by the taxpayer during the taxable year[,]. The amount of qualified
12 college tuition expenses shall be limited [to] as follows: for taxable
13 years beginning after two thousand and before two thousand sixteen, ten
14 thousand dollars for each such student; for taxable years beginning in
15 two thousand sixteen, twelve thousand dollars for each student; for
16 taxable years beginning in two thousand seventeen, fourteen thousand
17 dollars for each student; for taxable years beginning in two thousand
18 eighteen, sixteen thousand dollars for each student; for taxable years
19 beginning in two thousand nineteen, eighteen thousand dollars for each
20 student; and for taxable years beginning after two thousand nineteen,
21 twenty thousand dollars per student;
22 § 2. Paragraph 4 of subsection (t) of section 606 of the tax law, as
23 added by section 1 of part DD of chapter 63 of the laws of 2000, is
24 amended to read as follows:
25 (4) Amount of credit. [If allowable college tuition expenses are less
26 than five thousand dollars, the amount of the credit provided under this
27 subsection shall be equal to the applicable percentage of the lesser of
28 allowable college tuition expenses or two hundred dollars. If allowable
29 college tuition expenses are five thousand dollars or more, the amount
30 of the credit provided under this subsection shall be equal to the
31 applicable percentage of the allowable college tuition expenses multi-
32 plied by four percent.]
33 The amount of the credit shall be determined in accordance with the
34 following schedules:
35 (A) For taxable years beginning after two thousand and before two
36 thousand sixteen:
37 If allowable college tuitionThe tax credit is equal to:
38 expenses are:
39 Less than five thousand dollarsthe applicable percentage of the
40 lesser of allowable college tuition
41 expenses or two hundred dollars
42 Five thousand dollars or morethe applicable percentage of
43 allowable college tuition expenses
44 multiplied by four percent
45 (B) For taxable years beginning in two thousand sixteen:
46 If allowable college tuitionThe tax credit is equal to:
47 expenses are:
48 Less than six thousand dollarsthe lesser of allowable college
49 tuition expenses or two hundred
50 forty dollars
51 Six thousand dollars or morethe allowable college tuition
52 expenses multiplied by four percent
53 (C) For taxable years beginning in two thousand seventeen:
S. 4209 144
1 If allowable college tuitionThe tax credit is equal to:
2 expenses are:
3 Less than seven thousand dollarsthe lesser of allowable college
4 tuition expenses or two hundred
5 eighty dollars
6 Seven thousand dollars or more the allowable college tuition
7 expenses multiplied by four percent
8 (D) For taxable years beginning in two thousand eighteen:
9 If allowable college tuitionThe tax credit is equal to:
10 expenses are:
11 Less than eight thousand dollarsthe lesser of allowable college
12 tuition expenses or three hundred
13 twenty dollars
14 Eight thousand dollars or morethe allowable college tuition
15 expenses multiplied by four percent
16 (E) For taxable years beginning in two thousand nineteen:
17 If allowable college tuitionThe tax credit is equal to:
18 expenses are:
19 Less than nine thousand dollars the lesser of allowable college
20 tuition expenses or three hundred
21 sixty dollars
22 Nine thousand dollars or more the allowable college tuition
23 expenses multiplied by four percent
24 (F) For taxable years beginning after two thousand nineteen:
25 If allowable college tuitionThe tax credit is equal to:
26 expenses are:
27 Less than ten thousand dollars the lesser of allowable college
28 tuition expenses or four hundred
29 dollars
30 Ten thousand dollars or more the allowable college tuition
31 expenses multiplied by four percent
32 Such applicable percentage shall be twenty-five percent for taxable
33 years beginning in two thousand one, fifty percent for taxable years
34 beginning in two thousand two, seventy-five percent for taxable years
35 beginning in two thousand three and one hundred percent for taxable
36 years beginning after two thousand three.
37 § 3. This act shall take effect immediately and shall apply to taxable
38 years beginning on or after January 1, 2016.
39 PART KKK
40 Section 1. The tax law is amended by adding a new section 23-a to read
41 as follows:
42 § 23-a. Asbestos remediation credit. (a) Definitions. As used in this
43 section, the following terms shall have the following meanings:
44 (1) Qualified structure. "Qualified structure" shall mean (i) a build-
45 ing, principally used by the taxpayer for residential, industrial,
46 commercial, recreational or environmental conservation purposes, and
47 (ii) which was originally placed in service at least twenty-five years
48 prior to the taxable year in which the credit is claimed.
49 (2) Eligible costs. "Eligible costs" shall mean all amounts properly
50 chargeable to a capital account, which are incurred in direct connection
51 to asbestos remediation of a qualified asbestos project.
52 (3) Qualified asbestos project. "Qualified asbestos project" shall be
53 an asbestos project as defined in section nine hundred one of the labor
54 law and undertaken by the taxpayer, on a qualified structure, and
S. 4209 145
1 completed pursuant to the applicable regulations at part fifty-six of
2 title twelve of the official compilation of rules and regulations of the
3 state.
4 (b) Asbestos remediation credit. (1) Allowance of credit. A taxpayer
5 who has undertaken a qualified asbestos project on a qualified struc-
6 ture, and who is subject to tax under article nine, nine-A or twenty-two
7 of this chapter, shall be allowed a credit against such tax, pursuant to
8 the provisions referenced in subdivision (c) of this section.
9 (2) Amount of credit. The amount of the credit shall be twenty percent
10 of all eligible costs which are incurred in the taxable year, as a
11 result of asbestos remediation with a completed qualified asbestos
12 project. The credit shall be allowed for the taxable year in which the
13 qualified asbestos project is first commenced and for the next two
14 succeeding taxable years. The credit authorized pursuant to this section
15 shall not exceed the total sum of one million dollars for the three
16 taxable years allowed and claimed. The costs, expenses and other amounts
17 for which a credit is allowed and claimed under this subdivision shall
18 not be used in the calculation of any other credit allowed under this
19 chapter.
20 (c) Cross-references. For application of the credit provided for in
21 this section, see the following provisions of this chapter:
22 Article 9: Section 187-t.
23 Article 9-A: Section 210-B, subdivision 49.
24 Article 22: Section 606, subsections (i) and (ccc).
25 § 2. The tax law is amended by adding a new section 187-t to read as
26 follows:
27 § 187-t. Asbestos remediation credit. 1. Allowance of credit. A
28 taxpayer shall be allowed a credit, to be computed as provided in
29 section twenty-three-a of this chapter, against the taxes imposed by
30 this article. Provided, however, that the amount of such credit allow-
31 able against the tax imposed by section one hundred eighty-four of this
32 article shall be the excess of the amount of such credit over the amount
33 of any credit allowed by this section against the tax imposed by section
34 one hundred eighty-three of this article.
35 2. Application of credit. The credit under this section for any taxa-
36 ble year shall not reduce the tax due for such year to less than the
37 applicable minimum tax prescribed by this article. If, however, the
38 amount of credit allowable under this section for any taxable year
39 reduces the tax to such amount, any amount of credit not deductible in
40 such taxable year shall be treated as an overpayment of tax to be
41 refunded in accordance with the provisions of section one thousand
42 eighty-six of this chapter. Provided, however, the provisions of
43 subsection (c) of section one thousand eighty-eight of this chapter
44 notwithstanding, no interest shall be paid thereon.
45 § 3. Section 210-B of the tax law is amended by adding a new subdivi-
46 sion 49 to read as follows:
47 49. Asbestos remediation credit. (a) Allowance of credit. A taxpayer
48 who has undertaken a qualified asbestos project on an existing structure
49 shall be allowed a credit, to be computed as provided in section twen-
50 ty-three-a of this chapter, 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 higher amount prescribed in paragraph (d) of subdivision one of
54 section two hundred ten of this article. However, if the amount of cred-
55 its allowed under this subdivision for any taxable year reduces the tax
56 to such amount, any amount of credit thus not deductible in such taxable
S. 4209 146
1 year shall be treated as an overpayment of tax to be credited or
2 refunded in accordance with the provisions of section one thousand
3 eighty-six of this chapter. Provided, however, the provisions of
4 subsection (c) of section one thousand eighty-eight of this chapter
5 notwithstanding, no interest shall be paid thereon.
6 § 4. 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) Asbestos remediationAmount of credit under
10 credit under subsection (ccc)subdivision forty-nine of
11 section two hundred ten-B
12 § 5. Section 606 of the tax law is amended by adding a new subsection
13 (ccc) to read as follows:
14 (ccc) Asbestos remediation credit. (1) Allowance of credit. A taxpayer
15 who has undertaken a qualified asbestos project on an existing structure
16 shall be allowed a credit, to be computed as provided in section twen-
17 ty-three-a of this chapter, against the tax imposed by this article.
18 (2) Application of credit. If the amount of the credit allowed under
19 this subsection for any taxable year shall exceed the taxpayer's tax for
20 such year, the excess shall be treated as an overpayment of tax to be
21 credited or refunded in accordance with the provisions of section six
22 hundred eighty-six of this article, provided, however, that no interest
23 shall be paid thereon.
24 § 6. This act shall take effect immediately and shall apply to taxable
25 years commencing on or after January 1, 2016.
26 PART LLL
27 Section 1. Subdivision 1 of section 472 of the tax law, as amended by
28 chapter 629 of the laws of 1996, and as further amended by section 104
29 of part A of chapter 62 of the laws of 2011, is amended to read as
30 follows:
31 1. The commissioner shall prescribe, prepare and furnish stamps of
32 such denominations and quantities as may be necessary for the payment of
33 the tax on cigarettes imposed by this article, plus the payment by the
34 agent of a concurrent expense allowance for the cigarette tax enforce-
35 ment account established pursuant to section ninety-seven-qqqq of the
36 state finance law of four cents per stamp which shall be deposited
37 pursuant to subdivision (c) of section four hundred eighty-two of this
38 article, and may from time to time and as often as he deems advisable
39 provide for the issuance and exclusive use of stamps of a new design and
40 forbid the use of stamps of any other design, in the manner and with the
41 effect provided in section two hundred seventy-four of this chapter. The
42 commissioner shall make provisions for the sale of such stamps at such
43 places and at such times as he may deem necessary and may license agents
44 for such purpose. The commissioner may license dealers in cigarettes,
45 who maintain separate warehousing facilities for the purpose of receiv-
46 ing and distributing cigarettes and conducting their business, who have
47 received commitments from at least two cigarette manufacturers whose
48 aggregate market share is at least forty percent of the New York state
49 cigarette market, and importers, exporters and manufacturers of ciga-
50 rettes, and other persons within or without the state as agents to buy
51 or affix stamps to be used in paying the tax herein imposed, but an
52 agent shall at all times have the right to appoint the person in his
53 employ who is to affix the stamps to any cigarettes under the agent's
S. 4209 147
1 control. The fee for filing such application for an agent's license
2 shall be one thousand five hundred dollars, unless such fee has been
3 paid during the preceding twelve months, in which case, the fee for a
4 new license shall be one thousand dollars. All of the provisions of
5 section four hundred eighty of this article relating to wholesale deal-
6 ers' licenses, including the procedure for suspension, revocation,
7 refusal to license and for hearings, except for paragraphs (c) and (g)
8 of subdivision one of such section, shall be applicable to agents'
9 licenses applied for or granted pursuant to this section, as if such
10 provisions had been set forth in full in this subdivision and had
11 expressly referred to the applicant for, or the holder of, an agent's
12 license. Whenever the commissioner shall sell and deliver to any such
13 agent any such stamps, such agent shall be entitled to receive as
14 compensation for his services and expenses as such agent in selling or
15 affixing such stamps, and to retain out of the moneys to be paid by him
16 for such stamps, a commission on the par value thereof. The commissioner
17 is hereby authorized to prescribe a schedule of commissions, not exceed-
18 ing five per centum, allowable to such agent for buying and affixing
19 such stamps. Such schedule shall be uniform with respect to the differ-
20 ent types of stamps used, and may be on a graduated scale with respect
21 to the number of stamps purchased. The commissioner may, in his
22 discretion, permit an agent to pay for such stamps within thirty days
23 after the date of purchase and may require any such agent to file with
24 the department [of taxation and finance] a bond issued by a surety
25 company approved by the superintendent of financial services as to
26 solvency and responsibility and authorized to transact business in the
27 state or other security acceptable to the commissioner, in such amount
28 as the commissioner may fix, to secure the payment of any sums due from
29 such agent pursuant to this article. If securities are deposited as
30 security under this subdivision, such securities shall be kept in the
31 custody of the commissioner and may be sold by the commissioner if it
32 becomes necessary so to do in order to recover any sums due from such
33 agent pursuant to this article, but no such sale shall be had until
34 after such agent shall have had opportunity to litigate the validity of
35 any tax if it elects so to do. Upon any such sale, the surplus, if any,
36 above the sums due under this article shall be returned to such agent.
37 § 2. Section 482 of the tax law is amended by adding a new subdivision
38 (c) to read as follows:
39 (c) From the amounts received pursuant to subdivision one of section
40 four hundred seventy-two of this article, the commissioner shall deposit
41 in the cigarette tax enforcement account established pursuant to section
42 ninety-seven-qqqq of the state finance law the concurrent expense allow-
43 ance for the cigarette tax enforcement fund of four cents per stamp.
44 § 3. The state finance law is amended by adding a new section 97-qqqq
45 to read as follows:
46 § 97-qqqq. Cigarette tax enforcement account. 1. There is hereby
47 created in the joint custody of the state comptroller and the commis-
48 sioner of taxation and finance an account of the miscellaneous special
49 revenue fund to be known as the "cigarette tax enforcement account".
50 2. Notwithstanding any other law, rule or regulation to the contrary,
51 the state comptroller is hereby authorized and directed to receive for
52 deposit to the credit of the cigarette tax enforcement account monies
53 received from the commissioner of taxation and finance from the concur-
54 rent expense allowance paid pursuant to subdivision one of section four
55 hundred seventy-two of the tax law, and other monies appropriated, cred-
56 ited or transferred thereto from any other fund or source.
S. 4209 148
1 3. The proceeds of the cigarette tax enforcement account shall be used
2 solely to enforce (i) the collection of the cigarette tax imposed by
3 article twenty of the tax law or (ii) the cigarette marketing standards
4 act, as established by article twenty-A of the tax law.
5 § 4. Subdivisions (a), (b) and (c) of section 1846 of the tax law, as
6 amended by chapter 556 of the laws of 2011, are amended to read as
7 follows:
8 (a) Whenever a police officer designated in section 1.20 of the crimi-
9 nal procedure law or a peace officer designated in subdivision four of
10 section 2.10 of such law, acting pursuant to his or her special duties,
11 shall discover any cigarettes subject to tax provided by article twenty
12 of this chapter or by chapter thirteen of title eleven of the adminis-
13 trative code of the city of New York, and upon which the tax has not
14 been paid or the stamps not affixed as required by such article or such
15 chapter thirteen, they are hereby authorized and empowered forthwith to
16 seize and take possession of such cigarettes, together with any vending
17 machine or receptacle in which they are held for sale. Such cigarettes,
18 vending machine or receptacle seized by a police officer or such peace
19 officer shall be turned over to the commissioner. Such seized ciga-
20 rettes, vending machine or receptacle, not including money contained in
21 such vending machine or receptacle, shall be forfeited to the state. The
22 commissioner may, within a reasonable time thereafter, upon publication
23 of a notice to such effect for at least five successive days, before the
24 day of sale, in a newspaper published or circulated in the county where
25 the seizure was made, sell such forfeited vending machines or recepta-
26 cles at public sale and pay the proceeds into the state treasury to the
27 credit of the general fund. Notwithstanding any other provision of this
28 section, the commissioner may enter into an agreement with any city of
29 this state which is authorized to impose a tax similar to that imposed
30 by article twenty of this chapter to provide for the disposition between
31 the state and any such city of the proceeds from any such sale. All
32 cigarettes forfeited to the state [shall be destroyed or used for law
33 enforcement purposes], except [that] cigarettes that violate, or are
34 suspected of violating, federal trademark laws or import laws shall [not
35 be used for law enforcement purposes. If the commissioner determines the
36 cigarettes may not be used for law enforcement purposes], upon publica-
37 tion in the state registry, be available for inspection by the manufac-
38 turer who shall determine whether such cigarettes are of saleable quali-
39 ty and such cigarettes shall be offered for sale to such manufacturers.
40 Any cigarettes that are either not inspected by the manufacturer within
41 five days of the publication in the state registry or are not purchased
42 by the manufacturer after being determined to be of saleable quality
43 shall, upon publication in the state registry, be offered for sale to
44 agents, as such term is defined in subdivision eleven of section four
45 hundred seventy of this chapter, to a price equaling two dollars and
46 twenty cents per pack of twenty cigarettes. Any such cigarettes that are
47 either not sold within a reasonable period of time after being offered
48 for sale to agents or deemed unsaleable by the manufacturer shall, upon
49 publication in the state registry, be destroyed or used for law enforce-
50 ment purposes. If the commissioner determines the cigarettes may not be
51 offered for sale to the manufacturers or agents, or used for law
52 enforcement purposes because such cigarettes violate, or are suspected
53 of violating, federal trademark laws or import laws, the commissioner
54 must, within a reasonable time after the forfeiture of such cigarettes,
55 upon publication in the state registry, destroy such forfeited ciga-
56 rettes. The commissioner may, prior to any destruction of cigarettes,
S. 4209 149
1 permit the true holder of the trademark rights in the cigarettes to
2 inspect such forfeited cigarettes in order to assist in any investi-
3 gation regarding such cigarettes. The revenue from all sales of ciga-
4 rettes made pursuant to this subdivision shall be deposited in the ciga-
5 rette tax enforcement account, as established in section 97-qqqq of the
6 state finance law.
7 (b) [In the alternative] Prior to making forfeited cigarettes avail-
8 able for inspection or purchase by the manufacturer, offering such ciga-
9 rettes for sale to agents, or using such cigarettes for law enforcement
10 purposes in accordance with subdivision (a) of this section, the tax
11 commission, on reasonable notice by mail or otherwise, may permit the
12 person from whom said cigarettes were seized to redeem the said ciga-
13 rettes, and any vending machine or receptacle seized therewith, by the
14 payment of the tax due, plus a penalty of fifty per centum thereof, plus
15 interest on the amount of tax due for each month or fraction thereof
16 after such tax became due (determined without regard to any extension of
17 time for filing or paying) at the rate applicable under subparagraph
18 (ii) of paragraph (a) of subdivision one of section four hundred eight-
19 y-one of this chapter and the costs incurred in such proceeding, which
20 total payment shall not be less than five dollars; provided, however,
21 that such seizure and sale or redemption shall not be deemed to relieve
22 any person from fine or imprisonment provided for in this article for
23 violation of any provision of article twenty of this chapter.
24 (c) [In the alternative] After making forfeited cigarettes available
25 for inspection or purchase by the manufacturer and offering such ciga-
26 rettes for sale to agents in accordance with subdivision (a) of this
27 section, the tax commission may dispose of any cigarettes seized pursu-
28 ant to this section, except those that violate, or are suspected of
29 violating, federal trademark laws or import laws, by transferring them
30 to the department of corrections and community supervision for sale to
31 or use by inmates in such institutions.
32 § 5. Subdivision (b) of section 483 of the tax law, as amended by
33 chapter 860 of the laws of 1987, subparagraph (A) of paragraph 1 and
34 subparagraph (B) of paragraph 3 as amended by chapter 744 of the laws of
35 1990, subparagraph (B) of paragraph 1 as amended by chapter 1 of the
36 laws of 1999 and subparagraph (B) of paragraph 2 as amended by chapter 4
37 of the laws of 1988, is amended to read as follows:
38 (b) 1. (A) The term "cost of the agent" shall mean the basic cost of
39 cigarettes plus the cost of doing business by the agent as evidenced by
40 the accounting standards and methods regularly employed by said agent in
41 his determination of costs for the purpose of federal income tax report-
42 ing for the total operation of his establishment, and must include,
43 without limitation, labor, including salaries of executives and offi-
44 cers, rent, depreciation, selling costs, maintenance of equipment,
45 delivery costs, interest payable, all types of licenses, taxes, insur-
46 ance and advertising expressed as a percentage and applied to the basic
47 cost of cigarettes. Any fractional part of a cent in the cost to the
48 agent per carton of cigarettes shall be rounded off to the next higher
49 cent. In the case of sales at retail by an agent, the "cost of the
50 agent" shall be the same as the "cost of the retail dealer". In the case
51 of sales of cigarettes to a chain store having fifteen or more retail
52 outlets, excluding vending machine operators, which are delivered to a
53 central warehouse owned and operated by such chain store and which are
54 delivered to its retail outlets by the chain store, the "cost of the
55 agent" shall be presumed to be the basic cost of cigarettes. There shall
S. 4209 150
1 be determined a separate cost of the agent for sales to wholesale deal-
2 ers and for sales to retail dealers.
3 (B) In the absence of the filing with the commissioner of satisfactory
4 proof of a lesser cost of doing business of the agent making the sale,
5 the cost of doing business by the agent shall be presumed to be [seven-
6 eighths of one] two and one-quarter percent of the basic cost of ciga-
7 rettes for sales to wholesale dealers plus one cent per package of ten
8 cigarettes, two cents per package of twenty cigarettes and in the case
9 of a package containing more than twenty cigarettes, two cents and one-
10 half of a cent for each five cigarettes in excess of twenty cigarettes,
11 [one and one-half] five and three-quarter percent of the basic cost of
12 cigarettes for sales to chain stores plus one cent per package of ten
13 cigarettes, two cents per package of twenty cigarettes and in the case
14 of a package containing more than twenty cigarettes, two cents and one-
15 half of a cent for each five cigarettes in excess of twenty cigarettes
16 and [three and seven-eighths] five and three-quarter percent of the
17 basic cost of cigarettes with respect to sales to retail dealers plus
18 one cent per package of ten cigarettes, two cents per package of twenty
19 cigarettes and in the case of a package containing more than twenty
20 cigarettes, two cents and one-half of a cent for each five cigarettes in
21 excess of twenty cigarettes and the foregoing cents per pack shall be
22 included in the "cost of doing business by the agent" referred to in
23 paragraphs two and three of this subdivision.
24 2. (A) The term "cost of the wholesale dealer" shall mean the basic
25 cost of cigarettes plus the cost of doing business by the wholesale
26 dealer as evidenced by the accounting standards and methods regularly
27 employed by said wholesale dealer in his determination of costs for the
28 purpose of federal income tax reporting for the total operation of his
29 establishment, and must include, without limitation, labor, including
30 salaries of executives and officers, rent, depreciation, selling costs,
31 maintenance of equipment, delivery costs, interest payable, all types of
32 licenses, taxes, insurance and advertising expressed as a percentage and
33 applied to the basic cost of cigarettes, plus the cost of doing business
34 by the agent with respect to sales of cigarettes to wholesale dealers.
35 Any fractional part of a cent in the cost to the wholesale dealer per
36 carton of cigarettes shall be rounded off to the next higher cent. In
37 the case of sales at retail by a wholesale dealer, the "cost of the
38 wholesale dealer" shall be the same as the "cost of the retail dealer".
39 There shall be determined a separate cost of the wholesale dealer for
40 sales to chain stores and for sales to retail dealers.
41 (B) In the absence of the filing with the tax commission of satisfac-
42 tory proof of a lesser cost of doing business of the wholesale dealer
43 making the sale, the cost of doing business by the wholesale dealer with
44 respect to sales to retail dealers shall be presumed to be three and
45 one-half per centum of the basic cost of cigarettes, and with respect to
46 sales to chain stores, [five-eighths of one] three and one-half percent
47 of the basic cost of cigarettes.
48 3. (A) The term "cost of the retail dealer" shall mean the basic cost
49 of cigarettes plus the cost of doing business by the retail dealer as
50 evidenced by the accounting standards and methods regularly employed by
51 said retail dealer in his determination of costs for the purpose of
52 federal income tax reporting for the total operation of his establish-
53 ment, and shall include, without limitation, labor, including salaries
54 of executives and officers, rent, depreciation, selling costs, mainte-
55 nance of equipment, delivery costs, interest payable, all types of
56 licenses, taxes, insurance and advertising expressed as a percentage and
S. 4209 151
1 applied to the basic cost of cigarettes, plus the cost of doing business
2 by the agent with respect to sales of cigarettes to retail dealers. Any
3 fractional part of a cent in the cost to the retail dealer per package
4 or per carton shall be rounded off to the next higher cent.
5 (B) In the absence of the filing with the commissioner of taxation and
6 finance of satisfactory proof of a lesser cost of doing business by the
7 retail dealer making the sale, the cost of doing business by the retail
8 dealer shall be presumed to be [seven] eight and one-half per centum of
9 the sum of the basic cost of cigarettes plus the cost of doing business
10 by the agent with respect to cigarettes sold to retail dealers.
11 § 6. Section 1814 of the tax law is amended by adding a new subdivi-
12 sion (j) to read as follows:
13 (j) Rewards. (1) Notwithstanding any provision of law, rule or regu-
14 lation to the contrary, the commissioner shall establish a program to
15 allow individuals to submit a sworn statement affirming the observation
16 of a violation of article twenty of this chapter and, where the commis-
17 sioner deems it appropriate, allow for a reward for any such sworn
18 statement. Where enforcement action is taken pursuant to this article or
19 article twenty of this chapter based upon a sworn statement by one or
20 more individuals and where the commissioner determines, in the exercise
21 of his or her discretion, that such sworn statement, either alone or in
22 conjunction with the testimony of the person submitting such sworn
23 statement contributes to the imposition of a civil or criminal penalty
24 upon any person for a violation of this article, or article twenty of
25 this chapter, the commissioner shall offer as a reward to such individ-
26 ual or individuals an amount that, in the aggregate, is five dollars. No
27 peace officer, police officer or employee of the department, employee of
28 any company under contract with the department, or employee of any
29 governmental entity that, in conjunction with the department, conducts
30 enforcement activity relating to a violation of this article or article
31 twenty of this chapter, shall be entitled to obtain the benefit of any
32 such reward when acting in the discharge of his or her official duties.
33 (2) All rewards paid pursuant to this section shall be paid from the
34 cigarette tax enforcement account, as established in section 97-qqqq of
35 the state finance law.
36 § 7. Beginning the month immediately following the month in which the
37 balance in the cigarette tax enforcement account, as established in
38 section 97-qqqq of the state finance law, there is hereby appropriated
39 to the division of state police the amount of six million dollars
40 ($6,000,000) from the cigarette tax enforcement account to support ciga-
41 rette tax, as imposed by article twenty of the tax law, and cigarette
42 marketing standards act, as established by article twenty-A of the tax
43 law, enforcement activities. This appropriation may be apportioned to
44 either the patrol activities or criminal investigation activities
45 programs of the division of state police, may be transferred or suballo-
46 cated to any other state agency or public authority for their costs
47 associated with the enforcement of the cigarette tax or the cigarette
48 marketing standards act, and may be used to contract with local enforce-
49 ment agencies for cigarette tax and/or cigarette marketing standards act
50 enforcement activities. No monies shall be available from this appropri-
51 ation absent a certificate of allocation from the director of the budg-
52 et.
53 § 8. This act shall take effect September 1, 2015 and shall apply in
54 accordance with the applicable transitional provisions of sections 1106
55 and 1217 of the tax law.
S. 4209 152
1 PART MMM
2 Section 1. The economic development law is amended by adding a new
3 section 212-a to read as follows:
4 § 212-a. Veterans entrepreneurship assistance. That portion of any
5 funding provided to support centers or development centers pursuant to
6 section two hundred eleven or two hundred twelve of this article for
7 management and assistance to veterans who are seeking to start or are
8 starting new business ventures, or to train veterans in the principles
9 and practice of entrepreneurship in order to prepare them to pursue
10 self-employment opportunities, shall be based on the extent, quality,
11 and comprehensiveness of services provided, directly or indirectly, and
12 the numbers served, and need not be equal to all support centers or
13 development centers. Any such funding amounts shall also be available
14 on application and on the basis of the same criteria to incubators
15 designated as New York state incubators pursuant to section sixteen-v of
16 the urban development corporation act. A portion of funds provided for
17 any such purposes shall also be available to obtain expert consulting
18 services to an entity which provides such entrepreneurial services to
19 veterans on a statewide and national basis.
20 § 2. This act shall take effect immediately.
21 PART NNN
22 Section 1. Subdivision (a) of section 24 of the tax law is amended by
23 adding a new paragraph 6 to read as follows:
24 (6) For the period two thousand fifteen through two thousand nineteen,
25 in addition to the amount of credit established in paragraph two of this
26 subdivision, a taxpayer shall be allowed a credit equal to the product
27 (or pro rata share of the product, in the case of a member of a partner-
28 ship) of five percent and the amount of wages or salaries paid to indi-
29 viduals directly employed (excluding those employed as writers, direc-
30 tors, music directors, producers and performers, including background
31 actors with no scripted lines) by a qualified film production company or
32 a qualified independent film production company for services performed
33 by those individuals in one if the counties specified in this paragraph
34 in connection with a qualified film with a minimum budget of five
35 hundred thousand dollars. For purposes of this additional credit, the
36 services must be performed in one or more of the following counties:
37 Warren, Saratoga, Washington, Rensselaer, Greene, Columbia, Ulster,
38 Dutchess, Sullivan, Orange, Putnam and Suffolk. The aggregate amount of
39 tax credits allowed pursuant to the authority of this paragraph during
40 the period two thousand sixteen through two thousand nineteen shall be
41 two million five hundred thousand dollars each year of the annual allo-
42 cation made available to the program pursuant to paragraph five of this
43 subdivision. Such aggregate amount of credits shall be allocated by the
44 governor's office for motion picture and television development among
45 taxpayers in order of priority based upon the date of filing an applica-
46 tion for allocation of film production credit with such office. If the
47 total amount of allocated credits applied for under this paragraph in
48 any year exceeds the aggregate amount of tax credits allowed for such
49 year under this paragraph, such excess shall be treated as having been
50 applied for on the first day of the next year. If the total amount of
51 allocated tax credits applied for under this paragraph at the conclusion
52 of any year is less than five hundred thousand dollars, the remainder
53 shall be treated as part of the annual allocation made available to the
S. 4209 153
1 program pursuant to paragraph five of this subdivision. However, in no
2 event may the total of the credits allocated under this paragraph and
3 the credits allocated under paragraph five of subdivision (a) of section
4 thirty-one of this article exceed five million dollars in any year
5 during the period two thousand sixteen through two thousand nineteen.
6 § 2. This act shall take effect immediately and shall apply to taxable
7 years beginning on or after January 1, 2016.
8 PART OOO
9 Section 1. Article 2-A of the public housing law, as added by section
10 1 of part CC of chapter 63 of the laws of 2000, subdivision 4 of section
11 22 as amended by section 2 of part P of chapter 59 of the laws of 2014,
12 is amended to read as follows:
13 ARTICLE 2-A
14 NEW YORK STATE LOW INCOME AND MIDDLE INCOME
15 HOUSING TAX CREDIT PROGRAM
16 Section 21. Definitions.
17 22. Allowance of credit, amount and limitations.
18 23. Project monitoring.
19 24. Credit recapture.
20 25. Regulations, coordination with federal low-income housing
21 credit provisions.
22 § 21. Definitions. 1. (a) "Applicable percentage" means, for the
23 purposes of an eligible low-income building, the appropriate percentage
24 (depending on whether a building is new, existing, or federally subsi-
25 dized) prescribed by the secretary of the treasury for purposes of
26 section 42 of the internal revenue code and, for the purposes of an
27 eligible middle-income building, thirty percent of the qualified basis
28 of the building as determined pursuant to section 42 of the internal
29 revenue code, for the month which is the earlier of:
30 (i) the month in which the eligible low-income building or the eligi-
31 ble middle-income building is placed in service, or
32 (ii) at the election of the taxpayer,
33 (A) the month in which the taxpayer and the commissioner enter into an
34 agreement with respect to such building (which is binding on the commis-
35 sioner, the taxpayer, and all successors in interest) as to the housing
36 credit dollar amount to be allocated to such building, or
37 (B) in the case of any building to which subsection (h)(4)(B) of such
38 section 42 applies, the month in which the tax-exempt obligations are
39 issued.
40 (b) A month may be elected under subparagraph (ii) of paragraph (a) of
41 this subdivision only if the election is made not later than the fifth
42 day after the close of such month. Such election, once made, shall be
43 irrevocable.
44 (c) If, as of the close of any taxable year in the credit period, the
45 qualified basis of an eligible low-income building or an eligible
46 middle-income building exceeds such basis as of the close of the first
47 year of the credit period, the applicable percentage which shall apply
48 to such excess shall be two-thirds of the applicable percentage
49 originally ascribed to such building.
50 2. "Compliance period" means, with respect to any building, the period
51 of fifteen taxable years beginning with the first taxable year of the
52 credit period with respect to such building.
S. 4209 154
1 3. "Credit period" means, with respect to any eligible low-income
2 building or eligible middle-income building, the period of ten taxable
3 years beginning with
4 (a) the taxable year in which the building is placed in service, or
5 (b) at the election of the taxpayer, the succeeding taxable year,
6 but only if the building is an eligible low-income building as of the
7 close of the first year of such period. The election under paragraph (b)
8 of this subdivision, once made, shall be irrevocable.
9 4. "Eligibility statement" means a statement issued by the commission-
10 er certifying that a building is an eligible low-income building or an
11 eligible middle-income building. Such statement shall set forth the
12 taxable year in which such building is placed in service, the dollar
13 amount of low-income housing credit or middle-income housing credit
14 allocated by the commissioner to such building as provided in subdivi-
15 sion five of section twenty-two of this article, the applicable percent-
16 age and maximum qualified basis with respect to such building taken into
17 account in determining such dollar amount, sufficient information to
18 identify each such building and the taxpayer or taxpayers with respect
19 to each such building, and such other information as the commissioner,
20 in consultation with the commissioner of taxation and finance, shall
21 prescribe. Such statement shall be first issued following the close of
22 the first taxable year in the credit period, and thereafter, to the
23 extent required by the commissioner of taxation and finance, following
24 the close of each taxable year of the compliance period.
25 5. "Eligible low-income building" means a building located in this
26 state which either
27 (a) is a qualified low-income building as defined in section 42(c) of
28 the internal revenue code, or
29 (b) would be a qualified low-income building under such section if the
30 20-50 test specified in subsection (g)(1) of such section were disre-
31 garded and the 40-60 test specified in such subsection (requiring that
32 at least forty percent of residential units be both rent-restricted and
33 occupied by individuals whose income is sixty percent or less of area
34 median gross income) were a 40-90 test.
35 5-a. "Eligible middle-income building" means a building located in
36 this state which is composed of multiple residential units which will,
37 upon completion, be affordable by eligible middle-income households.
38 5-b. "Eligible middle-income household" means (a) in cities having a
39 population of one million or more, a person or family residing in a
40 residential unit whose income does not exceed one hundred thirty percent
41 of the median income for the metropolitan statistical area in which an
42 eligible middle-income building is located; or (b) in any portion of the
43 state outside of a city having a population of one million or more and
44 (i) within a metropolitan statistical area, a person or family residing
45 in a residential unit whose income does not exceed one hundred thirty
46 percent of the median income for the metropolitan statistical area in
47 which an eligible middle-income building is located, or one hundred
48 thirty percent of the statewide median income, whichever shall be less,
49 or (ii) outside of metropolitan statistical area, a person or family
50 residing in a residential unit whose income does not exceed one hundred
51 thirty percent of the median income for the county in which an eligible
52 middle-income building is located, or one hundred thirty percent of the
53 statewide median income, whichever shall be less.
54 6. "Qualified basis" of an eligible low-income building or an eligible
55 middle-income building means the qualified basis of such building deter-
56 mined under section 42(c) of the internal revenue code, or, for an
S. 4209 155
1 eligible low-income building, which would be determined under such
2 section if the 40-90 test specified in paragraph (b) of subdivision five
3 of this section applied under such section 42 to determine if such
4 building were part of a qualified low-income housing project.
5 7. References in this article to section 42 of the internal revenue
6 code shall mean such section as amended from time to time.
7 § 22. Allowance of credit, amount and limitations. 1. A taxpayer
8 subject to tax under article nine-A, twenty-two, thirty-two or thirty-
9 three of the tax law which owns an interest in one or more eligible
10 low-income buildings or eligible middle-income buildings shall be
11 allowed a credit against such tax for the amount of low-income housing
12 credit or for the amount of the middle-income housing credit, as the
13 case may be, allocated by the commissioner to each such building. Except
14 as provided in subdivision two of this section, the credit amount so
15 allocated shall be allowed as a credit against the tax for the ten taxa-
16 ble years in the credit period.
17 2. Adjustment of first-year credit allowed in eleventh year. The cred-
18 it allowable for the first taxable year of the credit period with
19 respect to any building shall be adjusted using the rules of section
20 42(f)(2) of the internal revenue code (relating to first-year adjustment
21 of qualified basis by the weighted average of low-income to total resi-
22 dential units, or by the weighted average of middle-income to total
23 residential units, as the case may be), and any reduction in first-year
24 credit by reason of such adjustment shall be allowable for the first
25 taxable year following the credit period.
26 3. Amount of credit. Except as provided in subdivisions four and five
27 of this section, the amount of low-income housing credit and middle-in-
28 come housing credit shall be the applicable percentage of the qualified
29 basis of each eligible low-income building or of each eligible middle-
30 income building.
31 4. Statewide limitation. The aggregate dollar amount of credit which
32 the commissioner may allocate to eligible low-income buildings under
33 this article shall be sixty-four million dollars. The aggregate dollar
34 amount of credit which the commissioner may allocate to eligible
35 middle-income buildings under this article shall be twenty-five million
36 dollars. The limitation provided by this subdivision applies only to
37 allocation of the aggregate dollar amount of credit by the commissioner,
38 and does not apply to allowance to a taxpayer of the credit with respect
39 to an eligible low-income building or an eligible middle-income building
40 for each year of the credit period.
41 5. Building limitation. The dollar amount of credit allocated to any
42 building shall not exceed the amount the commissioner determines is
43 necessary for the financial feasibility of the project and the viability
44 of the building as an eligible low-income building or as an eligible
45 middle-income building throughout the credit period. In allocating a
46 dollar amount of credit to any building, the commissioner shall specify
47 the applicable percentage and the maximum qualified basis which may be
48 taken into account under this article with respect to such building. The
49 applicable percentage and the maximum qualified basis with respect to a
50 building shall not exceed the amounts determined in subdivisions one and
51 six, respectively, of section twenty-one of this article.
52 6. Long-term commitment to low-income or middle-income housing
53 required. (a) No credit shall be allowed under this article with respect
54 to [a] an eligible low-income building for the taxable year unless an
55 extended low-income housing commitment is in effect as of the end of
56 such taxable year. For purposes of this [subdivision] paragraph, the
S. 4209 156
1 term "extended low-income housing commitment" means an agreement between
2 the taxpayer and the commissioner substantially similar to the agreement
3 specified in section 42(h)(6)(B) of the internal revenue code.
4 (b) No credit shall be allowed under this article with respect to an
5 eligible middle-income building for the taxable year unless an extended
6 middle-income housing commitment is in effect as of the end of such
7 taxable year. For the purposes of this paragraph, the term "extended
8 middle-income housing commitment" means an agreement between the taxpay-
9 er and the commissioner which has been determined by the commissioner to
10 be similar to the agreement specified in section 42(h)(6)(B) of the
11 internal revenue code.
12 7. Credit to successor owner. If a credit is allowed under subdivision
13 one of this section with respect to an eligible low-income building or
14 an eligible middle-income building, and such building (or an interest
15 therein) is sold during the credit period, the credit for the period
16 after the sale which would have been allowable under such subdivision
17 one to the prior owner had the building not been sold shall be allowable
18 to the new owner. Credit for the year of sale shall be allocated between
19 the parties on the basis of the number of days during such year that the
20 building or interest was held by each.
21 § 23. Project monitoring. The commissioner shall establish such proce-
22 dures as he or she deems necessary for monitoring compliance of an
23 eligible low-income building or an eligible middle-income building with
24 the provisions of this article, and for notifying the commissioner of
25 taxation and finance of any such noncompliance of which he or she
26 becomes aware.
27 § 24. Credit recapture. If, as of the close of any taxable year in the
28 compliance period, the amount of the qualified basis of any building
29 with respect to the taxpayer is less than the amount of such basis as of
30 the close of the preceding taxable year, the credit under this article
31 may be recaptured as provided in section eighteen or eighteen-a of the
32 tax law.
33 § 25. Regulations, coordination with federal low-income housing credit
34 provisions. 1. The commissioner shall promulgate rules and regulations
35 necessary to administer the provisions of this act.
36 2. The provisions of section 42 of the internal revenue code shall
37 apply to the credit under this article, provided however, to the extent
38 such provisions are inconsistent with this article, the provisions of
39 this article shall control.
40 § 2. The tax law is amended by adding a new section 18-a to read as
41 follows:
42 § 18-a. Middle-income housing credit. (a) Allowance of credit. A
43 taxpayer subject to tax under article nine-A, twenty-two, thirty-two or
44 thirty-three of this chapter shall be allowed a credit against such tax,
45 pursuant to the provisions referenced in subdivision (d) of this
46 section, with respect to the ownership of eligible middle-income build-
47 ings for which an eligibility statement has been issued by the commis-
48 sioner of housing and community renewal. The amount of the credit shall
49 be the credit amount for each such building allocated by such commis-
50 sioner as provided in article two-A of the public housing law. The cred-
51 it amount shall be allowed for each of the ten taxable years in the
52 credit period, and any reduction in first-year credit as provided in
53 subdivision two of section twenty-two of such law shall be allowed in
54 the eleventh taxable year.
55 (b) Credit recapture. (1) General. If,
S. 4209 157
1 (A) as of the close of any taxable year in the compliance period, the
2 amount of the qualified basis of any building with respect to the
3 taxpayer is less than
4 (B) the amount of such basis as of the close of the preceding taxable
5 year,
6 (C) then the credit recapture amount must be added back for the taxa-
7 ble year.
8 (2) Credit recapture amount. The credit recapture amount is an amount
9 equal to the sum of
10 (A) the aggregate decrease in the credits allowed to the taxpayer
11 under this section for all prior taxable years which would have resulted
12 if the accelerated portion of the credit allowable by reason of this
13 section were not allowed for all prior taxable years with respect to the
14 excess of the amount described in subparagraph (B) of paragraph (1) of
15 this subdivision over the amount described in subparagraph (A) of such
16 paragraph, plus
17 (B) interest at the overpayment rate established under section one
18 thousand ninety-six of this chapter on the amount determined under
19 subparagraph (A) of this paragraph for each prior taxable year for the
20 period beginning on the due date for filing the report for the prior
21 taxable year involved.
22 (3) Accelerated portion of credit. For purposes of paragraph two of
23 this subdivision, the accelerated portion of the credit for the prior
24 taxable years with respect to any amount of basis is the excess of
25 (A) the aggregate credit allowed by reason of this section (without
26 regard to this subdivision) for such years with respect to such basis,
27 over
28 (B) the aggregate credit which would be allowable by reason of this
29 section for such years with respect to such basis if the aggregate cred-
30 it which would (but for this subdivision) have been allowed for the
31 entire compliance period were allowable ratably over fifteen years.
32 (4) Special rules. For purposes of this subdivision, the rules of
33 section 42 (j)(4)(B) and (C) of the internal revenue code shall apply in
34 determining the credit recapture amount.
35 (5) Exceptions to recapture. Recapture under this subdivision shall
36 not apply to a reduction in qualified basis
37 (A) by reason of a casualty loss, if the commissioner, in consultation
38 with the commissioner of housing and community renewal, determines that
39 such loss is restored by reconstruction or replacement within a reason-
40 able period, or
41 (B) by reason of a change in floor space devoted to middle-income
42 units in a building, if such building remains an eligible middle-income
43 building after such change, and if the commissioner, in consultation
44 with the commissioner of housing and community renewal, determines that
45 such change is de minimis, or
46 (C) by reason of error in complying with middle-income eligibility
47 tests referred to in subdivision five of section twenty-one of the
48 public housing law, if the commissioner, in consultation with the
49 commissioner of housing and community renewal, determines that such
50 error is de minimis.
51 (6) Recapture by partners of a partnership. In the case of ownership
52 of a building or interest therein by a partnership which has thirty-five
53 or more partners, the provisions of section 42(j)(5) of the internal
54 revenue code shall apply to any recapture under this subdivision unless
55 the partnership elects not to have such provisions apply.
S. 4209 158
1 (7) (A) The credit recapture required under this subdivision will not
2 apply solely by reason of the disposition of a building or an interest
3 therein if it is reasonably expected that such building will continue to
4 be operated as an eligible middle-income building for the remaining
5 compliance period with respect to such building.
6 (B) Statute of limitations. If a building (or an interest therein) is
7 disposed of during any taxable year and there is any reduction in the
8 qualified basis of such building which results in an increase in tax
9 under this section for such taxable or any subsequent taxable year, then
10 (i) the statutory period for the assessment of any deficiency with
11 respect to such increase in tax will not expire before the expiration of
12 three years from the date the commissioner of housing and community
13 renewal is notified by the taxpayer (in such manner as the commissioner
14 of housing and community renewal may prescribe) of such reduction in
15 qualified basis, and
16 (ii) such deficiency may be assessed before the expiration of such
17 three-year period notwithstanding the provisions of any other law or
18 rule of law which would otherwise prevent such assessment.
19 (c) Construction with public housing law; definitions. The provisions
20 of this section shall be construed in conjunction with the provisions of
21 article two-A of the public housing law. For definitions relating to the
22 middle-income housing credit, see section twenty-one of such law.
23 (d) Cross-references. For application of the credit provided for in
24 this section, see the following provisions of this chapter:
25 (1) Article 9-A: Section 210-B: subdivision 15-a,
26 (2) Article 22: Section 606: subsections (i) and (x-1),
27 (3) Article 33: Section 1511: subdivision (n-1).
28 § 3. Section 210-B of the tax law is amended by adding a new subdivi-
29 sion 15-a to read as follows:
30 15-a. Middle-income housing credit. (a) Allowance of credit. A taxpay-
31 er shall be allowed a credit against the tax imposed by this article
32 with respect to the ownership of eligible middle-income buildings,
33 computed as provided in section eighteen-a of this chapter.
34 (b) Application of credit. The credit allowed under this subdivision
35 for any taxable year shall not, in the aggregate, reduce the tax due for
36 such year to less than the higher of the amounts prescribed in para-
37 graphs (c) and (d) of subdivision one of this section. However, if the
38 amount of credit allowed under this subdivision for any taxable year
39 reduces the tax to such amount, any amount of credit thus not deductible
40 in such taxable year shall be treated as an overpayment of tax to be
41 credited or refunded in accordance with the provisions of section two
42 hundred eighty-six of this chapter. Provided, however, the provisions of
43 subsection (c) of section ten hundred eighty-eight of this chapter
44 notwithstanding, no interest shall be paid thereon.
45 (c) Credit recapture. For provisions requiring recapture of credit,
46 see subdivision (b) of section eighteen-a of this chapter.
47 § 4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
48 of the tax law is amended by adding a new clause (xiii-a) to read as
49 follows:
50 (xiii-a) Middle-income housingCredit amount under subdivision
51 credit under subsection (x-l)fifteen-a of section two hundred
52 ten-B
53 § 5. Section 606 of the tax law is amended by adding a new subsection
54 (x-1) to read as follows:
S. 4209 159
1 (x-1) Middle-income housing credit. (1) Allowance of credit. A taxpay-
2 er shall be allowed a credit against the tax imposed by this article
3 with respect to the ownership of eligible middle-income buildings,
4 computed as provided in section eighteen-a of this chapter.
5 (2) Application of credit. If the amount of credit allowable under
6 this subsection for any taxable year shall exceed the taxpayer's tax for
7 such year, the excess shall be treated as an overpayment of tax to be
8 credited or refunded in accordance with the provisions of section six
9 hundred eighty-six of this article, provided, however, that no interest
10 shall be paid thereon.
11 (3) Credit recapture. For provisions requiring recapture of credit,
12 see subdivision (b) of section eighteen-a of this chapter.
13 § 6. Section 1511 of the tax law is amended by adding a new subdivi-
14 sion (n-1) to read as follows:
15 (n-1) Middle-income housing credit. (1) Allowance of credit. A taxpay-
16 er shall be allowed a credit against the tax imposed by this article
17 with respect to the ownership of eligible middle-income buildings,
18 computed as provided in section eighteen-a of this chapter.
19 (2) Application of credit. The credit allowed under this subdivision
20 for any taxable year shall not, in the aggregate, reduce the tax due for
21 such year to less than the minimum tax fixed by paragraph four of subdi-
22 vision (a) of section fifteen hundred two of this article or by section
23 fifteen hundred two-a of this article, whichever is applicable. Howev-
24 er, if the amount of credit allowed under this subdivision for any taxa-
25 ble year reduces the tax to such amount, then any amount of credit thus
26 not deductible in such taxable year shall be treated as an overpayment
27 of tax to be credited or refunded in accordance with the provisions of
28 section ten hundred eighty-six of this chapter. Provided, however, the
29 provisions of subsection (c) of section ten hundred eighty-eight of this
30 chapter notwithstanding, no interest shall be paid thereon.
31 (3) Credit recapture. For provisions requiring recapture of credit,
32 see subdivision (b) of section eighteen-a of this chapter.
33 § 7. This act shall take effect immediately and shall apply to tax
34 years commencing on or after January 1, 2015; provided, however, that if
35 this act takes effect before the effective date of section 2 of part P
36 of chapter 59 of the laws of 2014, then the amendments to subdivision 4
37 of section 22 of the public housing law, made by section one of this
38 act, shall take effect on the same date and in the same manner as such
39 section.
40 PART PPP
41 Section 1. Subdivision 11 of section 2 of the tax law, as amended by
42 section 20 of part A of chapter 59 of the laws of 2014, is amended to
43 read as follows:
44 11. The term "combinable captive insurance company" means an entity
45 that is treated as an association taxable as a corporation under the
46 internal revenue code (a) more than fifty percent of the voting stock of
47 which is owned or controlled, directly or indirectly, by a single entity
48 that is treated as an association taxable as a corporation under the
49 internal revenue code and not exempt from federal income tax; (b) that
50 is licensed as a captive insurance company under the laws of this state
51 or another jurisdiction; (c) whose business includes providing, directly
52 and indirectly, insurance or reinsurance covering the risks of its
53 parent and/or members of its affiliated group; and (d) fifty percent or
54 less of whose gross receipts for the taxable year consist of premiums
S. 4209 160
1 from arrangements that constitute insurance for federal income tax
2 purposes; provided, however, if the captive insurance company is
3 licensed in New York state and owned directly or indirectly by a REIT,
4 all premiums shall be considered regardless of whether they are from
5 arrangements that constitute insurance for federal income tax purposes.
6 For purposes of this subdivision, "affiliated group" has the same mean-
7 ing as that term is given in section 1504 of the internal revenue code,
8 except that the term "common parent corporation" in that section is
9 deemed to mean any person, as defined in section 7701 of the internal
10 revenue code and references to "at least eighty percent" in section 1504
11 of the internal revenue code are to be read as "fifty percent or more;"
12 section 1504 of the internal revenue code is to be read without regard
13 to the exclusions provided for in subsection (b) of that section;
14 "premiums" has the same meaning as that term is given in paragraph one
15 of subdivision (c) of section fifteen hundred ten of this chapter,
16 except that it includes consideration for annuity contracts and excludes
17 any part of the consideration for insurance, reinsurance or annuity
18 contracts that do not provide bona fide insurance, reinsurance or annui-
19 ty benefits; and "gross receipts" includes the amounts included in gross
20 receipts for purposes of section 501(c) (15) of the internal revenue
21 code, except that those amounts also include all premiums as defined in
22 this subdivision.
23 § 2. This act shall take effect immediately and apply to taxable years
24 commencing on and after January 1, 2015.
25 PART QQQ
26 Section 1. Section 606 of the tax law is amended by adding a new
27 subsection (ccc) to read as follows:
28 (ccc) Elderly residential emergency repair credit. (1) Allowance of
29 credit. For taxable years beginning on or after January first, two thou-
30 sand fifteen, an eligible taxpayer shall be allowed a credit against the
31 tax imposed by this article equal to the sum of all emergency repair
32 costs incurred for the primary residence of the taxpayer, not to exceed
33 seven thousand five hundred dollars during any taxable year.
34 (2) Eligible taxpayer. For the purposes of this subsection, "eligible
35 taxpayer" shall mean a resident taxpayer who is sixty years of age or
36 older, whose adjusted federal gross income does not exceed one hundred
37 thirty percent of the median annual income for all residents of the
38 region in which the taxpayer's primary residence is located or a larger
39 area encompassing such region for which median annual income can be
40 determined.
41 (3) Emergency repair. For the purposes of this subsection, "emergency
42 repair" shall mean any repair or modification of the primary residence
43 of a taxpayer which is necessary to make it possible for the taxpayer to
44 continue to reside in such residence including, but not limited to:
45 (A) the installation of ramps;
46 (B) the installation of bathroom and household grab bars;
47 (C) the widening of doorways;
48 (D) the lowering of light switches; and
49 (E) other modifications that would make the residence wheelchair-ac-
50 cessible or otherwise enable the taxpayer to remain safely in his or her
51 residence.
52 (4) Overpayment. If the amount allowed under this subsection for any
53 taxable year shall exceed the taxpayer's tax for such year, the excess
54 shall be treated as an overpayment of tax to be credited or refunded in
S. 4209 161
1 accordance with the provisions of section six hundred eighty-six of this
2 article, provided, however, that no interest shall be paid thereon.
3 (5) Allocation of credits. The aggregate amount of tax credits allowed
4 under this subsection in any taxable year shall not exceed five million
5 dollars.
6 § 2. This act shall take effect immediately.
7 PART RRR
8 Section 1. For the purposes of this act, the term "equipment" shall
9 mean a machine or system, and any part or subassembly thereof.
10 § 2. For the purposes of this act, equipment shall be considered to be
11 "directly and predominantly" used, as such term is used in clause (i) of
12 paragraph 1 of subdivision (z) of section 1115 of the tax law, as
13 repealed by section 30, part S-1 of chapter 57 of the laws of 2009 and
14 last amended by section 17 of part CC of chapter 85 of the laws of 2002,
15 when such equipment was received, inventoried or organized, and then
16 prepared for distribution at 124 Metropolitan Park Drive, Syracuse, New
17 York, or 3606 John Glenn Blvd, Syracuse, New York, by a qualified empire
18 zone enterprise operation that has operated at both locations, provided
19 such equipment, upon distribution, is stocked, repaired, cleaned or
20 otherwise handled for the purpose of maintenance or upkeep by employees
21 of such qualified empire zone enterprise, provided such service work or
22 duties originate from, and terminate at, either empire zone location
23 described in this section.
24 § 3. Notwithstanding any law, rule, or regulation, or any determi-
25 nation or decision of the department of taxation and finance or the
26 division of tax appeals to the contrary, the division of tax appeals
27 shall accept and review, pursuant to part 3000 of the tax appeals tribu-
28 nal rules of practice and procedure, a petition related to the interpre-
29 tation of the term "directly and predominantly", as such term is used in
30 section two of this act, provided that such petition is filed by a qual-
31 ified empire zone enterprise that has operated at both locations
32 described in section two of this act, and provided further that such
33 petition challenges a determination or decision of the department of
34 taxation and finance or the division of tax appeals that denied or with-
35 held sales and use tax credits as afforded by the provision of the tax
36 law described in section two of this act.
37 § 4. This act shall take effect immediately and shall apply to taxable
38 years beginning on or after March 1, 2003, and shall apply to any audit
39 or enforcement proceeding of the department of taxation and finance, or
40 any other administrative matter or proceeding of such department,
41 commencing on or after March 1, 2003.
42 PART SSS
43 Section 1. Section 1115 of the tax law is amended by adding a new
44 subdivision (jj) to read as follows:
45 (jj) Tangible personal property or services otherwise taxable under
46 this article sold to a related person shall not be subject to the taxes
47 imposed by section eleven hundred five of this article or the compensat-
48 ing use tax imposed under section eleven hundred ten of this article
49 where the purchaser can show that the following conditions have been met
50 to the extent they are applicable: (1)(i) the vendor and the purchaser
51 are referenced as either a "covered company" as described in section
52 243.2(f) or a "material entity" as described in section 243.2(l) of the
S. 4209 162
1 Code of Federal Regulations in a resolution plan that has been submitted
2 to an agency of the United States for the purpose of satisfying subpara-
3 graph 1 of paragraph (d) of section one hundred sixty-five of the Dodd-
4 Frank Wall Street Reform and Consumer Protection Act (the "Act") or any
5 successor law, or (ii) the vendor and the purchaser are separate legal
6 entities pursuant to a divestiture directed pursuant to subparagraph 5
7 of paragraph (d) of section one hundred sixty-five of such act or any
8 successor law; (2) the sale would not have occurred between such related
9 entities were it not for such resolution plan or divestiture; and (3) in
10 acquiring such property or services, the vendor did not claim an
11 exemption from the tax imposed by this state or another state based on
12 the vendor's intent to resell such services or property. A person is
13 related to another person for purposes of this subdivision if the person
14 bears a relationship to such person described in section two hundred
15 sixty-seven of the internal revenue code. The exemption provided by this
16 subdivision shall not apply after June thirtieth, two thousand nineteen,
17 except with respect to transactions occurring pursuant to binding
18 contracts entered into on or before such date.
19 § 2. This act shall take effect on the first day of a sales tax quar-
20 terly period, as described in subdivision (b) of section 1136 of the tax
21 law, next commencing at least ninety days after the date this act shall
22 have become a law and shall apply in accordance with the applicable
23 transitional provisions of sections 1106 and 1217 of the tax law.
24 PART TTT
25 Section 1. Subdivision (f) of section 19 of the tax law is relettered
26 subdivision (g) and a new subdivision (f) is added to read as follows:
27 (f) Notwithstanding any contrary provision of this section, an indi-
28 vidual taxpayer shall be eligible for the credit allowed pursuant to
29 subdivision (a) of this section provided that such taxpayer constructs
30 or rehabilitates qualifying residential real property in conformity with
31 energy efficiency standards established by the National Association of
32 Home Builders or the Leadership in Energy and Environmental Design
33 rating system developed by the United States green building council and
34 fashions proof thereof pursuant to subdivision (c) of this section.
35 Such taxpayer shall remain eligible for such credit irrespective of
36 the amount of tax such taxpayer pays per annum.
37 For the purposes of this subdivision, "qualifying residential real
38 property" shall mean the principal place of residence of an individual
39 taxpayer who claims a credit pursuant to this section.
40 § 2. This act shall take effect immediately and shall apply to taxable
41 years beginning on and after January 1, 2016.
42 PART UUU
43 Section 1. Section 606 of the tax law is amended by adding a new
44 subdivision (ccc) to read as follows:
45 (ccc) Senior utility circuit breaker tax credit. (1) Definitions. For
46 the purposes of this subsection:
47 (A) "Qualified taxpayer" means a resident individual, married or head
48 of household taxpayer who is over sixty-five years of age, with a house-
49 hold gross income of one hundred fifty thousand dollars or less.
50 (B) "Household" or "members of the household" means a qualified
51 taxpayer and all other persons, not necessarily related, who have the
52 same residence and share its furnishings, facilities and accommodations.
S. 4209 163
1 Such terms shall not include a tenant, subtenant, roomer or boarder who
2 is not related to the qualified taxpayer in any degree specified in
3 paragraphs one through eight of subsection (a) of section one hundred
4 fifty-two of the internal revenue code. Provided, however, no person may
5 be a member of more than one household at one time.
6 (C) "Household gross income" means the aggregate adjusted gross income
7 of all members of the household for the taxable year as reported for
8 federal income tax purposes, or which would be reported as adjusted
9 gross income if a federal income tax return were required to be filed,
10 with the modifications in subsection (b) of section six hundred twelve
11 of this article but without the modifications in subsection (c) of such
12 section, plus any portion of the gain from the sale or exchange of prop-
13 erty otherwise excluded from such amount; earned income from sources
14 without the United States excludable from federal gross income by
15 section nine hundred eleven of the internal revenue code; support money
16 not included in adjusted gross income; nontaxable strike benefits;
17 supplemental security income payments; the gross amount of any pension
18 or annuity benefits to the extent not included in such adjusted gross
19 income (including, but not limited to, railroad retirement benefits and
20 all payments received under the federal social security act and veter-
21 ans' disability pensions); nontaxable interest received from the state
22 of New York, its agencies, instrumentalities, public corporations, or
23 political subdivisions (including a public corporation created pursuant
24 to agreement or compact with another state or Canada); workers' compen-
25 sation; the gross amount of "loss-of-time" insurance; and the amount of
26 cash public assistance and relief, other than medical assistance for the
27 needy, paid to or for the benefit of the qualified taxpayer or members
28 of his household. Household gross income shall not include surplus foods
29 or other relief in kind or payments made to individuals because of their
30 status as victims of Nazi persecution as defined in P.L. 103-286.
31 Provided, further, household gross income shall only include all such
32 income received by all members of the household while members of such
33 household.
34 (D) "Residence" means a dwelling in this state, whether owned or rent-
35 ed.
36 (E) "Eligible expenses" means payments made by a qualified taxpayer
37 for the following goods and services delivered and used at his or her
38 primary residence:
39 (i) residential gas, electric and steam utility service which is
40 subject to the provisions of article two of the public service law;
41 (ii) residential water and sewer service;
42 (iii) home heating fuel, which shall include fuel oil, coal, wood,
43 propane, natural gas, electricity, steam, kerosene and any other fuel
44 when used for residential heating purposes; and
45 (iv) telecommunications services as defined in paragraph (g) of subdi-
46 vision one of section one hundred eighty-six-e of this chapter, and
47 shall not include wireless communications service, as defined by subdi-
48 vision ten of section three hundred one of the county law, unless such
49 wireless service is the only means by which the qualified taxpayer
50 receives telephonic services.
51 (2) Computation of credit. For taxable years beginning on and after
52 January first, two thousand fifteen, a qualified taxpayer shall be
53 allowed a credit, to be credited against the tax imposed by this arti-
54 cle. The amount of the credit shall be one-half of all eligible expenses
55 paid by the qualified taxpayer to the extent such expenses exceed seven
56 percent of the qualified taxpayer's household gross income. Such credit
S. 4209 164
1 shall be reduced by the amount of any moneys received by the qualified
2 taxpayer pursuant to the low-income home energy assistance program
3 established pursuant to section ninety-seven of the social services law.
4 (3) Overpayment. If the amount of the credit allowed under this
5 subsection for any taxable year shall exceed the qualified taxpayer's
6 tax for such year, the excess shall be treated as an overpayment of tax
7 to be credited or refunded in accordance with section six hundred eight-
8 y-six of this article, provided, however, that no interest shall be paid
9 thereon.
10 § 2. This act shall take effect immediately.
11 PART VVV
12 Section 1. The general municipal law is amended by adding a new
13 section 3-e to read as follows:
14 § 3-e. Limitation upon real property tax levies by cities having a
15 population of one million or more. 1. Unless otherwise provided by law,
16 the amount of real property taxes that may be levied by or on behalf of
17 any city having a population of one million or more shall not exceed the
18 tax levy limitation established pursuant to this section.
19 2. When used in this section:
20 (a) "Allowable levy growth factor" shall be the lesser of: (i) one and
21 two one-hundredths; or (ii) the sum of one plus the inflation factor;
22 provided, however, that in no case shall the levy growth factor be less
23 than one.
24 (b) "Approved capital expenditures" means the expenditures associated
25 with capital projects that have been approved by the qualified voters of
26 the local government.
27 (c) "Available carryover" means the sum of the amount by which the tax
28 levy for the prior fiscal year was below the tax levy limit for such
29 fiscal year, if any, but no more than one and one-half percent of the
30 tax levy limit for such fiscal year.
31 (d) "Capital tax levy" means the tax levy necessary to support capital
32 expenditures, if any.
33 (e) "Coming fiscal year" means the fiscal year of the local government
34 for which a tax levy limitation shall be determined pursuant to this
35 section.
36 (f) "Inflation factor" means the quotient of: (i) the average of the
37 national consumer price indexes determined by the United States depart-
38 ment of labor for the twelve-month period ending six months prior to the
39 start of the coming fiscal year minus the average of the national
40 consumer price indexes determined by the United States department of
41 labor for the twelve-month period ending six months prior to the start
42 of the prior fiscal year, divided by: (ii) the average of the national
43 consumer price indexes determined by the United States department of
44 labor for the twelve-month period ending six months prior to the start
45 of the prior fiscal year, with the result expressed as a decimal to four
46 places.
47 (g) "Local government" means a city having a population of one million
48 or more.
49 (h) "Prior fiscal year" means the fiscal year of the local government
50 immediately preceding the coming fiscal year.
51 (i) "Tax levy limitation" means the amount of taxes a local government
52 is authorized to levy pursuant to this section, provided, however, that
53 the tax levy limit shall not include the local government's approved
54 capital tax levy, if any.
S. 4209 165
1 3. (a) Beginning with the fiscal year that begins in two thousand
2 fifteen, no local government shall adopt a budget that requires a tax
3 levy that is greater than the tax levy limitation for the coming fiscal
4 year.
5 (b) The state comptroller shall calculate the tax levy limitation for
6 each local government by the one hundred twentieth day preceding the
7 commencement of each local government's fiscal year, and shall notify
8 each local government of the tax levy limitation so determined.
9 (c) The tax levy limitation applicable to the coming fiscal year shall
10 be determined as follows:
11 (i) Ascertain the total amount of taxes levied for the prior fiscal
12 year.
13 (ii) Add any payments in lieu of taxes that were receivable in the
14 prior fiscal year.
15 (iii) Subtract the approved capital tax levy for the prior fiscal
16 year, if any.
17 (iv) Subtract the levy attributable to a large legal settlement of a
18 tort action excluded from the levy limitation in the prior fiscal year,
19 if any.
20 (v) Multiply the result by the allowable levy growth factor.
21 (vi) Subtract any payments in lieu of taxes receivable in the coming
22 fiscal year.
23 (vii) Add the available carryover, if any.
24 (d) In the event the city council of a local government has approved a
25 legal settlement of a tort action against the government, the annual
26 costs of which exceed ten percent of the property taxes levied by the
27 local government in the prior fiscal year, the state comptroller, upon
28 application by the local government, may adjust the tax levy limitation
29 for the coming fiscal year applicable to such local government, by
30 adding the annual costs of such settlement to the tax levy limitation.
31 (e) The state comptroller shall determine the portion of the tax levy
32 of each local government that is attributable to any increase or
33 decrease over the prior year in the cost of the local government share
34 of direct cash assistance to persons eligible for the federal-state-lo-
35 cal temporary assistance to needy families program or the state-local
36 safety net assistance program and shall adjust the tax levy limitation
37 for such local government to reflect such change.
38 4. A local government may adopt a budget that requires a tax levy that
39 is greater than the tax levy limitation for the coming fiscal year only
40 if the city council of such local government first enacts, by a two-
41 thirds vote of the total voting power of such city council, a local law
42 to override such limitation for such coming fiscal year only.
43 5. In the event a local government's actual tax levy for a given
44 fiscal year exceeds the maximum allowable levy as established pursuant
45 to this section due to clerical or technical errors, the local govern-
46 ment shall place the excess amount of the levy in reserve in accordance
47 with such requirements as the state comptroller may prescribe, and shall
48 use such funds and any interest earned thereon to offset the tax levy
49 for the ensuing fiscal year.
50 § 2. Paragraphs j and k of subdivision 2 of section 23 of the munici-
51 pal home rule law are relettered paragraphs k and l, and a new paragraph
52 j is added to read as follows:
53 j. Overrides the tax levy limitation applicable for the coming fiscal
54 year in accordance with section three-e of the general municipal law.
S. 4209 166
1 § 3. This act shall take effect immediately and shall first apply to
2 the levy of taxes by local governments for the fiscal year that begins
3 in 2016.
4 PART WWW
5 Section 1. Section 1325 of the racing, pari-mutuel wagering and breed-
6 ing law, as added by chapter 174 of the laws of 2013, is amended to read
7 as follows:
8 § 1325. Approval, denial and renewal of employee licenses and regis-
9 trations. 1. Upon the filing of an application for a casino key employee
10 license or gaming employee registration required by this article and
11 after submission of such supplemental information as the commission may
12 require, the commission shall conduct or cause to be conducted such
13 investigation into the qualification of the applicant, which shall
14 include the completion of a criminal background check by the division of
15 the state police of such applicant, and the commission shall conduct
16 such hearings concerning the qualification of the applicant, in accord-
17 ance with its regulations, as may be necessary to determine qualifica-
18 tion for such license.
19 1-a. The cost of any such background check shall be borne by the
20 gaming facility that initially employs or extends employment to a licen-
21 see pursuant to this title after the approval or renewal of a license
22 pursuant to this title and shall be paid in a time and manner determined
23 by the commission.
24 2. After such investigation, the commission may either deny the appli-
25 cation or grant a license to an applicant whom it determines to be qual-
26 ified to hold such license.
27 3. The commission shall have the authority to deny any application
28 pursuant to the provisions of this article following notice and opportu-
29 nity for hearing.
30 4. When the commission grants an application, the commission may limit
31 or place such restrictions thereupon as it may deem necessary in the
32 public interest.
33 5. After an application for a casino key employee license is submit-
34 ted, final action of the commission shall be taken within ninety days
35 after completion of all hearings and investigations and the receipt of
36 all information required by the commission.
37 6. Licenses and registrations of casino key employees and gaming
38 employees issued pursuant to this article shall remain valid for five
39 years unless suspended, revoked or voided pursuant to law. Such licenses
40 and registrations may be renewed by the holder thereof upon application,
41 on a form prescribed by the commission, and payment of the applicable
42 fee. Notwithstanding the forgoing, if a gaming employee registrant has
43 not been employed in any position within a gaming facility for a period
44 of three years, the registration of that gaming employee shall lapse.
45 8. The commission shall establish by regulation appropriate fees to be
46 paid upon the filing of the required applications. Such fees shall be
47 deposited into the commercial gaming revenue fund.
48 § 2. This act shall take effect immediately.
49 PART XXX
50 Section 1. Clauses (E) and (F) of subparagraph 5 of paragraph b of
51 subdivision 1 of section 1016 of the racing, pari-mutuel wagering and
52 breeding law are REPEALED.
S. 4209 167
1 § 2. Section 1017 of the racing, pari-mutuel wagering and breeding
2 law, as amended by chapter 18 of the laws of 2008 and subdivision 2 as
3 amended by chapter 174 of the laws of 2013, is amended to read as
4 follows:
5 § 1017. Out-of-state or out-of-country races. [1.] Licensed simulcast
6 facilities may accept wagers and display the signal of out-of-state or
7 out-of-country thoroughbred tracks after 7:30 P.M. in accordance with
8 the provisions of this section. Such simulcasting may include mixed
9 meetings if such meetings are integral to such racing programs and all
10 such wagering on such races shall be construed to be thoroughbred races.
11 For facilities located within the special betting district, such
12 approval shall also be required from a thoroughbred racing corporation
13 during the period a racing program is being conducted at such track.
14 Such approval shall not be required on any day such thoroughbred racing
15 corporation is also accepting an out-of-state or out-of-country signal
16 and wager, as authorized by this section. The provisions of section one
17 thousand sixteen of this article shall be applicable to the conduct of
18 such simulcasting and the provisions of clauses (A) and (B) of subpara-
19 graph four of paragraph b of subdivision one of section one thousand
20 sixteen of this article shall apply to those facilities licensed in
21 accordance with sections one thousand eight and one thousand nine of
22 this article and the provisions of clauses (A) and (B) of subparagraph
23 six of paragraph b of subdivision one of section one thousand sixteen of
24 this article shall apply to those facilities licensed in accordance with
25 section one thousand seven of this article, when such provisions are in
26 full force and effect pursuant to such section. Provided, however, the
27 provisions of section one thousand fourteen of this article shall be
28 applicable to the conduct of such simulcasting, when such provisions are
29 in full force and effect pursuant to such section.
30 [2. a. Maintenance of effort. Any off-track betting corporation which
31 engages in accepting wagers on the simulcasts of thoroughbred races from
32 out-of-state or out-of-country as permitted under subdivision one of
33 this section shall submit to the commission, for its approval, a sched-
34 ule of payments to be made in any year or portion thereof, that such
35 off-track corporation engages in nighttime thoroughbred simulcasting. In
36 order to be approved by the commission, the payment schedule shall be
37 identical to the actual payments and distributions of such payments to
38 tracks and purses] Purses made by such off-track corporation pursuant to
39 the provisions of section one thousand fifteen of this article during
40 the year two thousand two, as derived from out-of-state harness races
41 displayed after 6:00 P.M. If approved by the commission, such scheduled
42 payments shall be made from revenues derived from any simulcasting
43 conducted pursuant to this section and section one thousand fifteen of
44 this article.
45 [b.] Additional payments. During each calendar year, to the extent,
46 and at such time in the event, that aggregate statewide wagering handle
47 after 7:30 P.M. on out-of-state and out-of-country thoroughbred races
48 exceeds one hundred million dollars, each off-track betting corporation
49 conducting such simulcasting shall pay to its regional harness track or
50 tracks, an amount equal to two percent of its proportionate share of
51 such excess handle. In any region where there are two or more regional
52 harness tracks, such two percent shall be divided between or among the
53 tracks in a proportion equal to the proportion of handle on live harness
54 races conducted at such tracks during the preceding calendar year. Fifty
55 percent of the sum received by each track pursuant to this paragraph
56 shall be used exclusively for increasing purses, stakes and prizes at
S. 4209 168
1 that regional harness track. For the purpose of determining whether such
2 aggregate statewide handle exceeds one hundred million dollars, all
3 wagering on such thoroughbred races accepted by licensed multi-jurisdic-
4 tional account wagering providers from customers within New York state
5 shall be excluded.
6 § 3. Subdivision 2 of section 529 of the racing, pari-mutuel wagering
7 and breeding law is amended to read as follows:
8 2. [Ninety-five percent of the balance of such account remaining
9 unclaimed as of the last day of February of such year shall be paid to
10 the state tax commission by March fifteenth. On or before April tenth of
11 each year the balance of such account and any other unclaimed amounts
12 received in the course of conducting off-track betting shall be paid by
13 such corporation to the state tax commission. A penalty of five percent
14 and interest at the rate of one percent per month from the due date to
15 the date of payment of the unclaimed balance due March fifteenth or
16 April tenth, as the case may be, shall be payable in case such balance
17 is not paid when due. Such amounts, interest and penalties when
18 collected by the state tax commission shall be deposited into the gener-
19 al fund of the state treasury.] On April first of each year, the amount
20 of ticket remaining unclaimed from the prior year may be used for corpo-
21 rate purposes.
22 § 4. Paragraph b of subdivision 3 of section 1009 of the racing, pari-
23 mutuel wagering and breeding law, as amended by chapter 18 of the laws
24 of 2008, is amended to read as follows:
25 b. Letters of consent to the application from any regional track which
26 is not a party to the operation of the proposed theater unless such
27 track is located more than [forty] ten miles from the proposed simulcast
28 theater; and a copy of any agreement between the applicant and such
29 corporation pursuant to which such consent has been given, subject to
30 the provision of subdivision two of section one thousand seven of this
31 article. Notwithstanding the foregoing, the Nassau region may apply to
32 locate [one simulcast theater] any fast track betting locations within
33 Nassau County without a letter of consent from the operator of the
34 regional track [provided the proposed simulcast theater is not within
35 fifteen miles of the closest border of any racing facility operated by a
36 franchised corporation].
37 § 5. Section 503 of the racing, pari-mutuel wagering and breeding law
38 is amended by adding a new subdivision 14 to read as follows:
39 14. On and after May first, two thousand fifteen, any regional off-
40 track betting corporation with a capital reserve fund in excess of five
41 million dollars shall disburse any excess funds to its participating
42 counties in proportion to such county's population measured against the
43 total population of the region.
44 § 6. Subdivision 1 of section 1012 of the racing, pari-mutuel wagering
45 and breeding law, as amended by chapter 174 of the laws of 2013, is
46 amended to read as follows:
47 1. Racing associations and corporations, franchised corporations,
48 off-track betting corporations and multi-jurisdictional account wagering
49 providers may form partnerships, joint ventures, or any other affil-
50 iations or contractual arrangement in order to further the purposes of
51 this section. Multi-jurisdictional account wagering providers involved
52 in such joint affiliations or contractual arrangements shall follow the
53 same distributional policy with respect to retained commissions [as
54 their in-state affiliate or contractual partner] a multi-jurisdictional
55 account wagering provider defined in this article; provided, however,
56 that such joint affiliation or contractual arrangement entered into on
S. 4209 169
1 or after the effective date of the chapter of the laws of two thousand
2 fifteen which amended this subdivision shall be subject to the review
3 and approval of the New York state gaming commission to determine if
4 such affiliation or contractual arrangement is in the best interest of
5 the racing industry of the state.
6 § 7. This act shall take effect immediately, provided however that
7 section six of this act shall be deemed to have been in full force and
8 effect on and after January 1, 2014.
9 PART YYY
10 Section 1. The opening paragraph of subdivision 7 of section 221 of
11 the racing, pari-mutuel wagering and breeding law, as amended by chapter
12 18 of the laws of 2008, is amended to read as follows:
13 In order to pay the costs of the insurance required by this section
14 and by the workers' compensation law and to carry out its other powers
15 and duties and to pay for any of its liabilities under section four-
16 teen-a of the workers' compensation law, the New York Jockey Injury
17 Compensation Fund, Inc. shall ascertain the total funding necessary and
18 establish the sums that are to be paid by all owners and trainers
19 licensed or required to be licensed under section two hundred twenty of
20 this article, to obtain the total funding amount required annually. In
21 order to provide that any sum required to be paid by an owner or trainer
22 is equitable, the fund shall establish payment schedules which reflect
23 such factors as are appropriate, including where applicable, the
24 geographic location of the racing corporation at which the owner or
25 trainer participates, the duration of such participation, the amount of
26 any purse earnings, the number of horses involved, or such other factors
27 as the fund shall determine to be fair, equitable and in the best inter-
28 ests of racing. In no event shall the amount deducted from an owner's
29 share of purses exceed [one] two per centum. The amount deducted from an
30 owner's share of purses shall not exceed one per centum after April
31 first, two thousand seventeen. In the cases of multiple ownerships and
32 limited racing appearances, the fund shall equitably adjust the sum
33 required.
34 § 2. This act shall take effect immediately.
35 PART ZZZ
36 Section 1. Clause (E) of subparagraph 5 and clause (G) of subparagraph
37 6 of paragraph b of subdivision 1 of section 1016 of the racing, pari-
38 mutuel wagering and breeding law, as amended by chapter 18 of the laws
39 of 2008, are amended to read as follows:
40 (E) On days when a franchised corporation is not conducting a race
41 meeting and when a licensed harness track is neither accepting wagers
42 nor displaying the signal from an in-state thoroughbred corporation or
43 association or an out-of-state thoroughbred track:
44 (i) Such licensed regional harness track shall receive in lieu of any
45 other payments on wagers placed at off-track betting facilities outside
46 the special betting district on races conducted by an in-state thorough-
47 bred racing corporation, [two and eight-tenths] one and four-tenths
48 percent on regular and multiple bets during a regional meeting and [one
49 and nine-tenths] ninety-five hundredths percent of such bets if there is
50 no regional meeting and [four and eight-tenths] two and four-tenths
51 percent on exotic bets on days on which there is a regional meeting and
S. 4209 170
1 [three and four-tenths] one and seven-tenths percent of such bets if
2 there is no regional meeting.
3 (ii) Such licensed regional harness track shall receive [one and one-
4 half] seventy-five hundredths per centum on total regional handle on
5 races conducted at out-of-state or out-of-country thoroughbred tracks.
6 (iii) In those regions in which there is more than one licensed
7 regional harness track, if no track is accepting wagers or displaying
8 the live simulcast signal from the out-of-state track, the total sum
9 shall be divided among the tracks in proportion to the ratio the wagers
10 placed on races conducted by each track bears to the corporation's total
11 in-region harness handle. If one or more tracks are accepting wagers or
12 displaying the live simulcast signal, the total amount shall be divided
13 among those tracks not accepting wagers or displaying the simulcast
14 signal for an out-of-state track or in-state thoroughbred corporation or
15 association.
16 (G) Of the sums retained by a licensed harness facility, [fifty] one
17 hundred percent shall be used exclusively for purses awarded in races
18 conducted by such licensed facility [and the remaining fifty percent
19 shall be retained by such licensed facility for its general purposes,
20 provided, however, that in a harness special betting district the
21 portion of the sums retained by a licensed harness facility to be used
22 for purses or the methodology for calculating the amount to be used for
23 purses may be specified in a written contract between a harness racing
24 association or corporation and its representative horsemen's associ-
25 ation].
26 § 2. This act shall take effect immediately.
27 PART AAAA
28 Section 1. Clause (F) of subparagraph (ii) of paragraph 1 of subdivi-
29 sion b of section 1612 of the tax law, as amended by section 1 of part Z
30 of chapter 59 of the laws of 2014, is amended to read as follows:
31 (F) notwithstanding clauses (A), (B), (C), (D) and (E) of this subpar-
32 agraph, when a vendor track, is located in Sullivan county and within
33 sixty miles from any gaming facility in a contiguous state such vendor
34 fee shall, for a period of [seven] eight years commencing April first,
35 two thousand eight, be at a rate of forty-one percent of the total
36 revenue wagered at the vendor track after payout for prizes pursuant to
37 this chapter, after which time such rate shall be as for all tracks in
38 clause (C) of this subparagraph.
39 § 2. This act shall take effect immediately and shall be deemed to
40 have been in full force and effect on and after April 1, 2015.
41 PART BBBB
42 Section 1. The section heading of section 467-b of the real property
43 tax law, as amended by section 1 of chapter 188 of the laws of 2005, is
44 amended to read as follows:
45 Tax abatement for rent-controlled and rent regulated property occupied
46 by senior citizens or persons with disabilities or persons paying a
47 maximum rent or legal regulated rent which exceeds one-half of the
48 combined income of all members of their household.
49 § 2. Paragraph b of subdivision 1 of section 467-b of the real proper-
50 ty tax law, as amended by section 1 of chapter 188 of the laws of 2005,
51 is amended to read as follows:
S. 4209 171
1 b. "Head of the household" means a person (i) who is sixty-two years
2 of age or older, or (ii) who qualifies as a person with a disability
3 pursuant to subdivision five of this section, or (iii) who pays a maxi-
4 mum rent or legal regulated rent which exceeds one-half of the combined
5 income of all members of their household, and is entitled to the
6 possession or to the use or occupancy of a dwelling unit;
7 § 3. Subdivision 2 of section 467-b of the real property tax law, as
8 amended by chapter 747 of the laws of 1985, is amended to read as
9 follows:
10 2. The governing body of any municipal corporation is hereby author-
11 ized and empowered to adopt, after public hearing, in accordance with
12 the provisions of this section, a local law, ordinance or resolution
13 providing for the abatement of taxes of said municipal corporation
14 imposed on real property containing a dwelling unit as defined herein by
15 one of the following amounts: (a) where the head of the household does
16 not receive a monthly allowance for shelter pursuant to the social
17 services law, an amount not in excess of that portion of any increase in
18 maximum rent or legal regulated rent which causes such maximum rent or
19 legal regulated rent to exceed one-third of the combined income of all
20 members of the household; or
21 (b) where the head of the household qualifies as a person paying a
22 maximum rent or legal regulated rent which exceeds one-half of the
23 combined income of all members of the household and does not receive a
24 monthly allowance for shelter pursuant to the social services law, an
25 amount not in excess of that portion of any increase in maximum rent or
26 legal regulated rent which causes such maximum rent or legal regulated
27 rent to exceed one-half of the combined income of all members of the
28 household; or
29 (c) where the head of the household receives a monthly allowance for
30 shelter pursuant to the social services law, an amount not in excess of
31 that portion of any increase in maximum rent or legal regulated rent
32 which is not covered by the maximum allowance for shelter which such
33 person is entitled to receive pursuant to the social services law.
34 § 4. Paragraph a of subdivision 3 of section 467-b of the real proper-
35 ty tax law, as amended by section 1 of part U of chapter 55 of the laws
36 of 2014, is amended to read as follows:
37 a. for a dwelling unit where the head of the household is a person
38 sixty-two years of age or older or where the head of the household pays
39 a maximum rent or legal regulated rent which exceeds one-half of the
40 combined income of all members of the household, no tax abatement shall
41 be granted if the combined income of all members of the household for
42 the income tax year immediately preceding the date of making application
43 exceeds four thousand dollars, or such other sum not more than twenty-
44 five thousand dollars beginning July first, two thousand five, twenty-
45 six thousand dollars beginning July first, two thousand six, twenty-sev-
46 en thousand dollars beginning July first, two thousand seven,
47 twenty-eight thousand dollars beginning July first, two thousand eight,
48 twenty-nine thousand dollars beginning July first, two thousand nine,
49 and fifty thousand dollars beginning July first, two thousand fourteen,
50 as may be provided by the local law, ordinance or resolution adopted
51 pursuant to this section, provided that when the head of the household
52 retires before the commencement of such income tax year and the date of
53 filing the application, the income for such year may be adjusted by
54 excluding salary or earnings and projecting his or her retirement income
55 over the entire period of such year.
S. 4209 172
1 § 5. Paragraph d of subdivision 1 of section 467-c of the real proper-
2 ty tax law, as separately amended by chapters 188 and 205 of the laws of
3 2005, and subparagraph 1 of paragraph d as amended by section 2 of part
4 U of chapter 55 of the laws of 2014, is amended to read as follows:
5 d. "Eligible head of the household" means (1) a person or his or her
6 spouse who is sixty-two years of age or older, or a person who pays a
7 maximum rent which exceeds one-half of the combined income of all
8 members of the household, and is entitled to the possession or to the
9 use and occupancy of a dwelling unit, provided, however, with respect to
10 a dwelling which was subject to a mortgage insured or initially insured
11 by the federal government pursuant to section two hundred thirteen of
12 the National Housing Act, as amended "eligible head of the household"
13 shall be limited to that person or his or her spouse who was entitled to
14 possession or the use and occupancy of such dwelling unit at the time of
15 termination of such mortgage, and whose income when combined with the
16 income of all other members of the household, does not exceed six thou-
17 sand five hundred dollars for the taxable period, or such other sum not
18 less than sixty-five hundred dollars nor more than twenty-five thousand
19 dollars beginning July first, two thousand five, twenty-six thousand
20 dollars beginning July first, two thousand six, twenty-seven thousand
21 dollars beginning July first, two thousand seven, twenty-eight thousand
22 dollars beginning July first, two thousand eight, twenty-nine thousand
23 dollars beginning July first, two thousand nine, and fifty thousand
24 dollars beginning July first, two thousand fourteen, as may be provided
25 by local law; or (2) a person with a disability as defined in this
26 subdivision.
27 § 6. Subparagraph (1) of paragraph a of subdivision 3 of section 467-c
28 of the real property tax law, as amended by chapter 747 of the laws of
29 1985, is amended to read as follows:
30 (1) where the eligible head of the household who is either sixty-two
31 years of age or older or is disabled does not receive a monthly allow-
32 ance for shelter pursuant to the social services law, the amount by
33 which increases in the maximum rent subsequent to such person's eligi-
34 bility date have resulted in the maximum rent exceeding one-third of the
35 combined income of all members of the household for the taxable period,
36 or where the eligible head of the household is a person who pays a maxi-
37 mum rent which exceeds one-half of the combined income of all members of
38 the household does not receive a monthly allowance for shelter pursuant
39 to the social services law, the amount by which increases in the maximum
40 rent subsequent to such person's date have resulted in the maximum rent
41 exceeding one-half of the combined income of all members of the house-
42 hold for the taxable period, except that in no event shall a rent
43 increase exemption order/tax abatement certificate become effective
44 prior to January first, nineteen hundred seventy-six; or
45 § 7. The state shall reimburse the city of New York and other partic-
46 ipating municipalities for 10% of the increase between the amount of
47 real property tax revenue abated for the period beginning July 1, 2015
48 and ending June 30, 2016 pursuant to the program expansion where the
49 tenant's maximum rent exceeds one-half of the combined income of house-
50 hold members as established by sections one through six of this act and
51 the amount that would have been abated for the period beginning July 1,
52 2015 and ending June 30, 2016 pursuant to the current provisions that
53 were in effect immediately prior to the additions provided in this act.
54 Prior to any payment, the city and any participating municipalities
55 shall provide attestation to the director of the New York state division
56 of the budget and the state comptroller as to the increase in the actual
S. 4209 173
1 amount of real property tax abated as a consequence of sections one
2 through six of this act. The information contained within such attesta-
3 tion may be subject to the audit and verification by the state comp-
4 troller.
5 § 8. This act shall take effect July 1, 2015; provided however, that
6 a. the amendments to section 467-b of the real property tax law, made
7 by sections one, two, three and four of this act shall be subject to the
8 expiration and reversion of such section pursuant to section 17 of chap-
9 ter 576 of the laws of 1974, and shall expire and be deemed repealed
10 therewith;
11 b. the amendments to paragraph a of subdivision 3 of section 467-b of
12 the real property tax law, made by section four of this act shall be
13 subject to the expiration of such paragraph pursuant to section 4 of
14 part U of chapter 55 of the laws of 2014, as amended, and shall be
15 deemed to expire therewith; and
16 c. the amendments to subparagraph (1) of paragraph d of subdivision 1
17 of section 467-c of the real property tax law, made by section five of
18 this act shall not affect the expiration of such subparagraph pursuant
19 to chapter 55 of the laws of 2014 and shall expire and be deemed
20 repealed therewith.
21 PART CCCC
22 Section 1. The real property tax law is amended by adding a new
23 section 467-i to read as follows:
24 § 467-i. Tenants sixty-five years of age or over within manufactured
25 home parks. 1. Any municipal corporation or school district within a
26 county with a population between one million four hundred ninety thou-
27 sand and one million five hundred thousand based upon the latest decen-
28 nial federal census shall be authorized to provide a senior citizen tax
29 exemption program for senior citizens residing within manufactured
30 homes, as defined by section two hundred thirty-three of the real prop-
31 erty law, within such county, after a public hearing thereon, and upon
32 the adoption of a local law or ordinance, or for a school district upon
33 the adoption of a resolution, providing therefor. Such programs shall
34 apply to senior citizens sixty-five years of age or over, as defined in
35 paragraph (a) of subdivision four of section four hundred twenty-five of
36 this title, who reside in a manufactured home located on land for which
37 residential rent is paid and whose combined income does not exceed the
38 income standard set forth in paragraph (b) of subdivision four of
39 section four hundred twenty-five of this title and within any additional
40 specified limits as further established by such law or local ordinance.
41 Such tax exemption shall include a proportional share of the increase in
42 annual taxes levied upon buildings and land within such park. This
43 amount shall be calculated based upon the percentage that the number of
44 homes qualifying under this section bears to the total lots within such
45 park which shall be multiplied by the overall annual tax increase on
46 buildings and land constituting the common areas of such park.
47 2. The eligible senior citizen shall apply each year to qualify for
48 the exemption, prior to the taxable status date prescribed by law, to
49 the appropriate local assessor for a tax exemption certificate, on a
50 form prescribed by the commissioner. In order to receive such
51 exemption, each applicant must submit, as part of the application proc-
52 ess, an accessory agreement signed by his or her manufactured home park
53 landlord, attesting to the landlord's willingness to participate in the
54 program. Such agreement shall include the landlord's responsibilities to
S. 4209 174
1 (a) reduce the tenant's rent on a monthly basis by one-twelfth of the
2 amount of the annual exemption granted, (b) reimburse, to the receiver
3 of taxes of the municipal corporation which granted the exemption, a
4 pro-rated portion of the tax exemption if his or her qualifying tenant
5 should move during the taxable period, and (c) permit all qualifying
6 tenants to participate in the program.
7 3. A tax exemption certificate establishing the amount of exemption
8 for the taxable period shall be issued to each senior citizen who is
9 eligible by the respective local assessor upon request. Copies of the
10 certificate shall be issued to the owner of the real property containing
11 the manufactured home of the senior citizen and to the receiver of taxes
12 of each municipality which has granted the exemption of taxes. The
13 exemption for the tax period set in the tax exemption certificate shall
14 be deducted from the total taxes levied by the municipality which grant-
15 ed the exemption on real property containing the manufactured home.
16 4. Any conviction of having made a willful false statement in the
17 application for exemption pursuant to this section shall be punishable
18 by a fine of not more than one hundred dollars and shall disqualify the
19 applicant senior citizen and/or homeowner from further exemptions for a
20 period of five years.
21 5. The provisions of this section shall be applicable to all manufac-
22 tured home units within a manufactured home park which comply with all
23 relevant housing codes, local laws or ordinances.
24 6. Any municipal corporation or school district within a county with a
25 population between one million four hundred ninety thousand and one
26 million five hundred thousand based upon the latest decennial federal
27 census that adopts such program for senior citizens residing in a manu-
28 factured home park shall receive reimbursement for the cost of adminis-
29 tering the program from the state of New York.
30 § 2. This act shall take effect January 1, 2016 and shall apply to
31 real property having a taxable status date on or after such effective
32 date.
33 PART DDDD
34 Section 1. Paragraph (b) of subdivision 3 of section 421-m of the real
35 property tax law, as added by section 43 of part B of chapter 97 of the
36 laws of 2011, is amended to read as follows:
37 (b) Such construction or substantial rehabilitation was commenced on
38 or after the effective date of the local law, ordinance or resolution
39 described in subdivision one of this section, but no later than June
40 fifteenth, two thousand [fifteen] eighteen.
41 § 2. This act shall take effect immediately.
42 PART EEEE
43 Section 1. Paragraph 1 of subsection (e) of section 1310 of the tax
44 law, as amended by section 3 of part A of chapter 56 of the laws of
45 1998, is amended to read as follows:
46 (1) For taxable years beginning after nineteen hundred ninety-seven, a
47 state school tax reduction credit shall be allowed as provided in the
48 following tables. The credit shall be allowed against the taxes author-
49 ized by this article reduced by the credits permitted by this article.
50 If the credit exceeds the tax as so reduced, the taxpayer may receive,
51 and the comptroller, subject to a certificate of the commissioner, shall
52 pay as an overpayment, without interest, the amount of such excess. For
S. 4209 175
1 purposes of this subsection, no credit shall be granted to an individual
2 with respect to whom a deduction under subsection (c) of section one
3 hundred fifty-one of the internal revenue code is allowable to another
4 taxpayer for the taxable year. For taxable years beginning in two thou-
5 sand sixteen and all taxable years thereafter, in order for a city to
6 qualify its residents to receive a credit pursuant to this subsection,
7 the budget so adopted by such city shall not exceed the tax levy limit
8 prescribed by section three-e of the general municipal law.
9 § 2. Subparagraphs (A) and (B) of paragraph 2 of subsection (e) of
10 section 1310 of the tax law, as amended by section 4 of part M of chap-
11 ter 57 of the laws of 2009, are amended to read as follows:
12 (A) Married individuals filing joint returns and surviving spouses. In
13 the case of a husband and wife who make a single return jointly and of a
14 surviving spouse:
15 For taxable years beginning: The credit shall be:
16 in 2001-2005 $125
17 in 2006 $230
18 in 2007-2008 $290
19 in 2009 [and after]- 2014 $125
20 in 2015$184
21 in 2016$186
22 in 2017 and after$214
23 (B) All others. In the case of an unmarried individual, a head of a
24 household or a married individual filing a separate return:
25 For taxable years beginning: The credit shall be:
26 in 2001-2005 $62.50
27 in 2006 $115
28 in 2007-2008 $145
29 in 2009 [and after]- 2014 $62.50
30 in 2015$92
31 in 2016$94
32 in 2017 and after$107
33 § 3. This act shall take effect immediately.
34 PART FFFF
35 Section 1. Subsection (c) of section 612 of the tax law is amended by
36 adding a new paragraph 42 to read as follows:
37 (42) Interest on indebtedness incurred or continued to pay tuition and
38 fees for undergraduate education to the extent such interest is deduct-
39 ible, in accordance with 26 U.S.C. § 221, for federal tax purposes, and
40 only when the taxpayer's federal adjusted gross income is seventy-five
41 thousand dollars or less. Provided that no individual may claim this
42 deduction if they do not comply with the terms of their loan repayment
43 plan.
44 § 2. This act shall take effect immediately and shall apply to the tax
45 year in which it takes effect, and all subsequent tax years.
46 PART GGGG
47 Section 1. The state finance law is amended by adding a new section
48 99-w to read as follows:
49 § 99-w. Public housing revitalization fund. 1. There is hereby estab-
50 lished in the custody of the state comptroller a special revenue fund to
51 be known as the "public housing revitalization fund".
S. 4209 176
1 2. The fund shall consist of all moneys appropriated or transferred
2 thereto from any other fund or source pursuant to law and any other
3 moneys transferred thereto for the purposes of the fund, including
4 moneys appropriated to the fund by the city of New York.
5 3. Moneys of the funds, upon appropriation thereof, shall be disbursed
6 by the commissioner of housing and community renewal to the New York
7 City Housing Authority, in accordance with section seventy-seven of the
8 public housing law, for capital projects associated with the repair,
9 reconstruction, rehabilitation and upgrade of any facilities operated by
10 such authority.
11 § 2. The public housing law is amended by adding a new section 77 to
12 read as follows:
13 § 77. Public housing revitalization fund. 1. Notwithstanding any other
14 provision of law to the contrary, the commissioner shall make available
15 to the New York City Housing Authority, constituted under section four
16 hundred one of this chapter, moneys for capital projects related to the
17 repair, reconstruction, rehabilitation and upgrade of facilities owned
18 by the authority in order to prevent the further deterioration of such
19 projects.
20 2. Such moneys shall be disbursed from the public housing revitaliza-
21 tion fund established by section ninety-nine-w of the state finance law.
22 3. Provided, however, no moneys shall be disbursed from such fund
23 after January first, two thousand sixteen unless the commissioner has by
24 that date certified to the comptroller that he or she has received a
25 reform plan from the mayor of the city of New York, together with the
26 members of the New York city housing authority laying out a plan to meet
27 its capital obligations in a timely and cost effective manner, inclusive
28 of a specific plan to:
29 a. decentralize maintenance and repair staff and ensure adequate staff
30 at each property;
31 b. redesign maintenance and repair policies to cut critical repair
32 project timelines by fifty percent;
33 c. ensure that all procurements are open, transparent and adhere to
34 public authorities reform act best practices, and shall reduce the time
35 to the final award by fifty percent;
36 d. improve customer service to provide a more reliable and user-
37 friendly experience to both residents and applicants; and
38 e. develop a long-term financial plan, including a five-year capital
39 plan updated bi-annually, with identified sources of funding.
40 4. Any reform plan established pursuant to subdivision three of this
41 section shall be provided upon adoption to the members of the New York
42 City Council for review and comment by the respective subcommittee
43 assigned to such authority pursuant to subdivision a of section twenty-
44 nine of the New York city charter. Additionally, such plan shall be
45 provided upon adoption to the committee chair for the New York state
46 assembly standing committee for housing, and the committee chair for the
47 New York state senate standing committee for housing, construction and
48 community development.
49 § 3. Subdivision a of section 29 of the New York city charter, as
50 added by a vote of the people of the city of New York at the general
51 election held in November 1989, is amended to read as follows:
52 a. The council, acting as a committee of the whole, and each standing
53 or special committee of the council, through hearings or otherwise:
54 1. [may] May investigate any matters within its jurisdiction relating
55 to the property, affairs, or government of the city or of any county
56 within the city, or to any other powers of the council, or to the effec-
S. 4209 177
1 tuation of the purposes or provisions of this charter or any laws relat-
2 ing to the city or to any county within the city.
3 2. [shall] Shall review on a regular and continuous basis the activ-
4 ities of the agencies of the city, including their service goals and
5 performance and management efficiency. Each unit of appropriation in
6 the adopted budget of the city shall be assigned to a standing commit-
7 tee. Each standing committee of the council shall hold at least one
8 hearing each year relating to the activities of each of the agencies
9 under its jurisdiction.
10 3. Shall review on a regular and continuous basis the activities of
11 any public authority where a majority of appointments to the board of
12 such authority are made by the mayor of the city of New York, including
13 the service goals, performance and management efficiency of such author-
14 ity. Each such authority shall be assigned to a standing committee. Each
15 standing committee of the council shall hold at least one hearing each
16 year relating to the activities of each such authority under its juris-
17 diction.
18 § 4. This act shall take effect immediately; provided however that
19 sections one and two of this act shall take effect on the one hundred
20 twentieth day after this act shall become a law; and provided further
21 that section three of this act shall take effect on the thirtieth day
22 after it shall have become a law.
23 § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
24 sion, section or part of this act shall be adjudged by any court of
25 competent jurisdiction to be invalid, such judgment shall not affect,
26 impair, or invalidate the remainder thereof, but shall be confined in
27 its operation to the clause, sentence, paragraph, subdivision, section
28 or part thereof directly involved in the controversy in which such judg-
29 ment shall have been rendered. It is hereby declared to be the intent of
30 the legislature that this act would have been enacted even if such
31 invalid provisions had not been included herein.
32 § 3. This act shall take effect immediately provided, however, that
33 the applicable effective date of Parts A through GGGG this act shall be
34 as specifically set forth in the last section of such Parts.
