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A03009 Summary:

BILL NOA03009B
 
SAME ASSAME AS UNI. S02009-B
 
SPONSORBudget
 
COSPNSR
 
MLTSPNSR
 
Amd Various Laws, generally
 
Relates to the New York city personal income tax rates; relates to recouping savings retrospectively from unlawfully claimed exemptions removed during re-registration process; authorizes homeowners who registered for the STAR exemption, but failed to file timely exemption applications with their local assessors, to receive the benefit for the 2014 exemption; makes permanent the itemized deduction limitation applicable to incomes of ten million dollars or greater; amends the personal income and MTA mobility tax statutes for technical changes; adds a reporting requirement to the commercial production tax credit; relates to the Excelsior Jobs Program and significant capital investments; creates the employee training incentive program tax credit within the excelsior tax credit program; imposes tax on wireless telecommunications businesses pursuant to sections 184 and 184-a of the tax law; incorporates the DOS biennial statement requirement into the corporate tax return; makes corrections to the corporate tax reform provisions; and repeals certain provisions of the tax law relating thereto; exempts certain items or tangible personal property furnished to customers by certain cider producers, breweries, and distilleries at tastings; relates to the imposition of the sales and compensating use tax on prepaid mobile calling services; expands the solar panel state and local sales and use tax exemptions; allows a reimbursement of the petroleum business tax for highway diesel motor fuel used in farm production; calculates the estate tax imposed under the tax rate table, clarifies the phase out date for certain gift add backs and disallows deductions relating to intangible personal property for estates of non-resident decedents; relates to warrantless income execution provisions; relates to capital awards to vendor tracks; 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 certain provisions relating to simulcasting and the imposition of certain taxes; relates to video lottery gaming; relates to a franchised corporation; relates to a use tax on boats; relates to an aircraft sales tax exemption; relates to a jockey's workers compensation fund; relates to VTL vendor fee rates; and relates to the MTA payroll tax.
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A03009 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
            S. 2009--B                                            A. 3009--B
 
                SENATE - ASSEMBLY
 
                                    January 21, 2015
                                       ___________
 
        IN  SENATE -- A BUDGET BILL, submitted by the Governor pursuant to arti-
          cle seven of the Constitution -- read twice and ordered  printed,  and
          when  printed to be committed to the Committee on Finance -- committee
          discharged, bill amended, ordered reprinted as amended and recommitted
          to said committee  --  committee  discharged,  bill  amended,  ordered
          reprinted as amended and recommitted to said committee
 
        IN  ASSEMBLY  --  A  BUDGET  BILL, submitted by the Governor pursuant to
          article seven of the Constitution -- read once  and  referred  to  the
          Committee  on  Ways  and  Means -- committee discharged, bill amended,
          ordered reprinted as amended and  recommitted  to  said  committee  --
          again  reported from said committee with amendments, ordered reprinted
          as amended and recommitted to said committee
 
        AN ACT 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);
          intentionally  omitted  (Part  C);  intentionally omitted (Part D); to
          amend the real property tax law, in relation to establishing a  state-
          administered  recoupment provision to the STAR exemption program (Part
          E); to amend the state finance law, in relation  to  making  technical
          corrections  to  the  school  tax relief fund; and to provide one-time
          relief to STAR registrants who failed to file  timely  STAR  exemption
          applications  (Part  F);  intentionally omitted (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 economic development law, in relation to  the  eligi-
          bility of entertainment companies for the excelsior jobs program (Part
          K);  intentionally  omitted  (Part L); intentionally omitted (Part M);
          intentionally omitted (Part N); to amend the economic development  law
          and  the tax law, in relation to establishing a tax credit for employ-
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD12574-04-5

        S. 2009--B                          2                         A. 3009--B
 
          ers who procure skills training for employees necessary to cultivate a
          talented workforce (Part O); to amend the tax law, in relation to  the
          metropolitan transportation business tax surcharge on utility services
          and  excise  tax on sale of telecommunication services, and the excise
          tax on telecommunication services imposed by article  9  of  such  law
          (Part  P); intentionally omitted (Part Q); intentionally omitted (Part
          R); to amend the  business  corporation  law,  the  limited  liability
          company  law,  the partnership law and the tax law, in relation to the
          biennial statements filed with the secretary of  state  (Part  S);  to
          amend  the tax law, in relation to making corrections to the corporate
          tax reform provisions; and to repeal 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 omit-
          ted (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 resolution in cities having a population of one
          million or more persons (Part Z); to amend the tax law, in relation to
          allowing a reimbursement of the petroleum  business  tax  for  highway
          diesel  motor fuel used in farm production (Part AA); to amend the tax
          law, in relation to calculating the estate tax imposed under  the  tax
          rate  table,  clarifying the phase out date for certain gift add backs
          and disallowing deductions relating to  intangible  personal  property
          for estates of non-resident decedents (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
          extending the effectiveness thereof (Part DD);  intentionally  omitted
          (Part  EE);  intentionally  omitted  (Part  FF); intentionally omitted
          (Part GG); intentionally  omitted  (Part  HH);  intentionally  omitted
          (Part  II);  intentionally  omitted  (Part  JJ); intentionally omitted
          (Part KK); intentionally omitted (Part LL); to amend the tax  law,  in
          relation  to  capital  awards to vendor tracks (Part MM); to amend the
          racing, pari-mutuel wagering and breeding law, in relation to licenses
          for simulcast facilities, sums relating to track simulcast,  simulcast
          of  out-of-state thoroughbred races, 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
          breeding 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  imposi-
          tion  of  certain  taxes,  in relation to extending certain provisions
          thereof; and to amend the racing, pari-mutuel  wagering  and  breeding
          law, in relation to extending certain provisions thereof (Part NN); to
          amend  the  tax  law  and  the penal law, in relation to video lottery
          gaming (Part OO); to amend the racing, pari-mutuel wagering and breed-
          ing law, in relation to a franchised  corporation  (Part  PP);  inten-
          tionally  omitted  (Part QQ); to amend the tax law, in relation to the
          credit for certain alternative fuel  vehicle  refueling  property  and

        S. 2009--B                          3                         A. 3009--B
 
          electric  vehicle recharging property (Part RR); to amend the tax law,
          in relation to sales and compensating use taxes imposed  with  respect
          to  vessels by article 28 of the tax law and pursuant to the authority
          of article 29 of such law (Part SS); to amend the tax law, in relation
          to  sales  and  compensating use taxes imposed with respect to certain
          aircraft by article 28 and pursuant to the authority of article 29  of
          such  law  (Part  TT);  to amend the tax law, in relation to exempting
          from sales  and  use  taxes  certain  tangible  personal  property  or
          services  (Part  UU);  to  amend  the racing, pari-mutuel wagering and
          breeding law, in relation to the New York Jockey  Injury  Compensation
          Fund, Inc. (Part VV); to amend the tax law, in relation to vendor fees
          paid  to  vendor  tracks  (Part  WW); to amend the racing, pari-mutuel
          wagering and breeding  law,  in  relation  to  account  wagering;  and
          providing for the repeal of certain provisions upon expiration thereof
          (Part  XX);  to  amend  the  tax  law, in relation to the exemption of
          libraries from the imposition of the metropolitan commuter transporta-
          tion mobility tax (Part YY); and to amend part CC of a chapter of  the
          laws  of 2015 amending the vehicle and traffic law relating to direct-
          ing the city of Buffalo to adjudicate traffic infractions, as proposed
          in legislative bill numbers S.2008-B and A.3008-B, in relation to  the
          effectiveness thereof (Part ZZ)
 
          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 ZZ. The effective date for each particular
     5  provision contained within such Part is set forth in the last section of
     6  such Part. Any provision in any section contained within a Part, includ-
     7  ing the effective date of the Part, which makes a reference to a section
     8  "of this act", when used in connection with that  particular  component,
     9  shall  be  deemed  to mean and refer to the corresponding section of the
    10  Part in which it is found. Section three of  this  act  sets  forth  the
    11  general effective date of this act.
 
    12                                   PART A
 
    13                            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

        S. 2009--B                          4                         A. 3009--B

     1  granted the city by such section  and  other  statutes  authorizing  the
     2  imposition  of a personal income tax on the residents of such city], and
     3  (b) as a result of the tax rate adjustments made by [a]  chapter  fifty-
     4  seven  of  the  laws of two thousand ten and by a chapter of the laws of
     5  two thousand fifteen, which amended this subdivision.
     6    § 2. Paragraphs 1, 2 and 3 of subsection (a) of section  1304  of  the
     7  tax law, as amended by section 2 of part EE of chapter 57 of the laws of
     8  2010, are amended to read as follows:
     9    (1)  Resident  married  individuals  filing joint returns and resident
    10  surviving spouses. The tax under this section for each taxable  year  on
    11  the  city  taxable  income of every city resident married individual who
    12  makes a single return jointly with his or her  spouse  under  subsection
    13  (b)  of  section  thirteen  hundred  six of this article and on the city
    14  taxable income of every city resident surviving spouse shall  be  deter-
    15  mined in accordance with the following tables:
 
    16    (A) For taxable years beginning after two thousand fourteen:
    17  If the city taxable income is:         The tax is:
    18  Not over $21,600                       2.55% of the city taxable income
    19  Over $21,600 but not                   $551 plus 3.1% of excess
    20  over $45,000                             over $21,600
    21  Over $45,000 but not                   $1,276 plus 3.15% of excess
    22  over $90,000                             over $45,000
    23  Over $90,000 but not                   $2,694 plus 3.2% of excess
    24  over $500,000                            over $90,000
    25  Over $500,000                          $16,803 plus 3.4% of excess
    26                                           over $500,000
 
    27    (B) For taxable years beginning after two thousand nine and before two
    28  thousand fifteen:
    29  If the city taxable income is:         The tax is:
    30  Not over $21,600                       2.55% of the city taxable income
    31  Over $21,600 but not                   $551 plus 3.1% of excess
    32  over $45,000                             over $21,600
    33  Over $45,000 but not                   $1,276 plus 3.15% of excess
    34  over $90,000                             over $45,000
    35  Over $90,000 but not                   $2,694 plus 3.2% of excess
    36  over $500,000                            over $90,000
    37  Over $500,000                          $15,814 plus 3.4% of excess
    38                                           over $500,000
 
    39    [(B)  For taxable years beginning in two thousand one and two thousand
    40  two and for taxable years beginning after two thousand five  and  before
    41  two thousand ten:

    42  If the city taxable income is:         The tax is:
    43  Not over $21,600                       2.55% of the city taxable income
    44  Over $21,600 but not                   $551 plus 3.1% of excess
    45  over $45,000                             over $21,600
    46  Over $45,000 but not                   $1,276 plus 3.15% of excess
    47  over $90,000                             over $45,000
    48  Over $90,000                           $2,694 plus 3.2% of excess
    49                                           over $90,000]

        S. 2009--B                          5                         A. 3009--B
 
     1    (2)  Resident heads of households. The tax under this section for each
     2  taxable year on the city taxable income of every city resident head of a
     3  household shall be determined in accordance with the following tables:
     4    (A) For taxable years beginning after two thousand fourteen:
 
     5  If the city taxable income is:         The tax is:
     6  Not over $14,400                       2.55% of the city taxable income
     7  Over $14,400 but not                   $367 plus 3.1% of excess
     8  over $30,000                             over $14,400
     9  Over $30,000 but not                   $851 plus 3.15% of excess
    10  over $60,000                             over $30,000
    11  Over $60,000 but not                   $1,796 plus 3.2% of excess
    12  over $500,000                            over $60,000
    13  Over $500,000                          $16,869 plus 3.4% of excess
    14                                           over $500,000
 
    15    (B) For taxable years beginning after two thousand nine and before two
    16  thousand fifteen:
 
    17  If the city taxable income is:         The tax is:
    18  Not over $14,400                       2.55% of the city taxable income
    19  Over $14,400 but not                   $367 plus 3.1% of excess
    20  over $30,000                             over $14,400
    21  Over $30,000 but not                   $851 plus 3.15% of excess
    22  over $60,000                             over $30,000
    23  Over $60,000 but not                   $1,796 plus 3.2% of excess
    24  over $500,000                            over $60,000
    25  Over $500,000                          $15,876 plus 3.4% of excess
    26                                           Over $500,000
 
    27    [(B)  For taxable years beginning in two thousand one and two thousand
    28  two and for taxable years beginning after two thousand five  and  before
    29  two thousand ten:

    30  If the city taxable income is:         The tax is:
    31  Not over $14,400                       2.55% of the city taxable income
    32  Over $14,400 but not                   $367 plus 3.1% of excess
    33  over $30,000                             over $14,400
    34  Over $30,000 but not                   $851 plus 3.15% of excess
    35  over $60,000                             over $30,000
    36  Over $60,000                           $1,796 plus 3.2% of excess
    37                                           over $60,000]
 
    38    (3)  Resident  unmarried  individuals,  resident  married  individuals
    39  filing separate returns and resident estates and trusts. The  tax  under
    40  this  section  for each taxable year on the city taxable income of every
    41  city resident individual who is not a city resident  married  individual
    42  who  makes  a  single  return  jointly  with  his  or  her  spouse under
    43  subsection (b) of section thirteen hundred six of this article or a city
    44  resident head of household or a city resident surviving spouse,  and  on
    45  the city taxable income of every city resident estate and trust shall be
    46  determined in accordance with the following tables:
 
    47  (A) For taxable years beginning after two thousand fourteen:

        S. 2009--B                          6                         A. 3009--B
 
     1  If the city taxable income is:         The tax is:
     2  Not over $12,000                       2.55% of the city taxable income
     3  Over $12,000 but not                   $306 plus 3.1% of excess
     4  over $25,000                             over $12,000
     5  Over $25,000 but not                   $709 plus 3.15% of excess
     6  over $50,000                             over $25,000
     7  Over $50,000 but not                   $1,497 plus 3.2% of excess
     8  over $500,000                          over $50,000
     9  Over $500,000                          $16,891 plus 3.4%
    10                                         of excess 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 $12,000                       2.55% of the city taxable income
    15  Over $12,000 but not                   $306 plus 3.1% of excess
    16  over $25,000                             over $12,000
    17  Over $25,000 but not                   $709 plus 3.15% of excess
    18  over $50,000                             over $25,000
    19  Over $50,000 but not                   $1,497 plus 3.2% of excess
    20  over $500,000                          over $50,000
    21  Over $500,000                          $15,897 plus 3.4%
    22                                         of excess 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 $12,000                       2.55% of the city taxable income
    28  Over $12,000 but not                   $306 plus 3.1% of excess
    29  over $25,000                             over $12,000
    30  Over $25,000 but not                   $709 plus 3.15% of excess
    31  over $50,000                             over $25,000
    32  Over $50,000                           $1,497 plus 3.2% of excess
    33                                           over $50,000]
 
    34    §  3.  Paragraphs  1, 2 and 3 of subdivision (a) of section 11-1701 of
    35  the administrative code of the city of New York, as amended by section 3
    36  of part EE of chapter 57 of the laws of 2010, are  amended  to  read  as
    37  follows:
    38    (1)  Resident  married  individuals  filing joint returns and resident
    39  surviving spouses. The tax under this section for each taxable  year  on
    40  the  city  taxable  income of every city resident married individual who
    41  makes a single return jointly with his or her spouse  under  subdivision
    42  (b) of section 11-1751 of this chapter and on the city taxable income of
    43  every  city  resident surviving spouse shall be determined in accordance
    44  with the following tables:
 
    45  (A) For taxable years beginning after two thousand fourteen:
 
    46  If the city taxable income is:         The tax is:
    47  Not over $21,600                       2.55% of the city taxable income
    48  Over $21,600 but not                   $551 plus 3.1% of excess
    49  over $45,000                            over $21,600
    50  Over $45,000 but not                   $1,276 plus 3.15% of excess
    51  over $90,000                            over $45,000

        S. 2009--B                          7                         A. 3009--B
 
     1  Over $90,000 but not                   $2,694 plus 3.2% of excess
     2  over $500,000                           over $90,000
     3  Over $500,000                          $16,803 plus 3.4% of excess
     4                                          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 $21,600                       2.55% of the city taxable income
     9  Over $21,600 but not                   $551 plus 3.1% of excess
    10  over $45,000                            over $21,600
    11  Over $45,000 but not                   $1,276 plus 3.15% of excess
    12  over $90,000                            over $45,000
    13  Over $90,000 but not                   $2,694 plus 3.2% of excess
    14  over $500,000                           over $90,000
    15  Over $500,000                          $15,814 plus 3.4% of excess
    16                                          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 $21,600                       2.55% of the city taxable income
    22  Over $21,600 but not                   $551 plus 3.1% of excess
    23  over $45,000                            over $21,600
    24  Over $45,000 but not                   $1,276 plus 3.15% of excess
    25  over $90,000                            over $45,000
    26  Over $90,000                           $2,694 plus 3.2% of excess
    27                                          over $90,000]
 
    28    (2)  Resident heads of households. The tax under this section for each
    29  taxable year on the city taxable income of every city resident head of a
    30  household shall be determined in accordance with the following tables:
    31    (A) For taxable years beginning after two thousand fourteen:
 
    32  If the city taxable income is:         The tax is:
    33  Not over $14,400                       2.55% of the city taxable income
    34  Over $14,400 but not                   $367 plus 3.1% of excess
    35  over $30,000                            over $14,400
    36  Over $30,000 but not                   $851 plus 3.15% of excess
    37  over $60,000                            over $30,000
    38  Over $60,000 but not                   $1,796 plus 3.2% of excess
    39  over $500,000                           over $60,000
    40  Over $500,000                          $16,869 plus 3.4% of excess
    41                                          over $500,000
 
    42    (B) For taxable years beginning after two thousand nine and before two
    43  thousand fifteen:
 
    44  If the city taxable income is:         The tax is:
    45  Not over $14,400                       2.55% of the city taxable income
    46  Over $14,400 but not                   $367 plus 3.1% of excess
    47  over $30,000                            over $14,400
    48  Over $30,000 but not                   $851 plus 3.15% of excess
    49  over $60,000                            over $30,000
    50  Over $60,000 but not                   $1,796 plus 3.2% of excess

        S. 2009--B                          8                         A. 3009--B
 
     1  over $500,000                           over $60,000
     2  Over $500,000                          $15,876 plus 3.4% of excess
     3                                          over $500,000
 
     4    [(B)  For taxable years beginning in two thousand one and two thousand
     5  two and for taxable years beginning after two thousand five  and  before
     6  two thousand ten:

     7  If the city taxable income is:         The tax is:
     8  Not over $14,400                       2.55% of the city taxable income
     9  Over $14,400 but not                   $367 plus 3.1% of excess
    10  over $30,000                            over $14,400
    11  Over $30,000 but not                   $851 plus 3.15% of excess
    12  over $60,000                            over $30,000
    13  Over $60,000                           $1,796
    14                                         plus 3.2% of excess
    15                                          over $60,000]
 
    16    (3)  Resident  unmarried  individuals,  resident  married  individuals
    17  filing separate returns and resident estates and trusts. The  tax  under
    18  this  section  for each taxable year on the city taxable income of every
    19  city resident individual who is not a married  individual  who  makes  a
    20  single  return  jointly  with his or her spouse under subdivision (b) of
    21  section 11-1751 of this chapter or a city resident head of  a  household
    22  or  a  city resident surviving spouse, and on the city taxable income of
    23  every city resident estate and trust shall be determined  in  accordance
    24  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 $12,000                       2.55% of the city taxable income
    28  Over $12,000 but not                   $306 plus 3.1% of excess
    29  over $25,000                            over $12,000
    30  Over $25,000 but not                   $709 plus 3.15% of excess
    31  over $50,000                            over $25,000
    32  Over $50,000 but not                   $1,497 plus 3.2% of excess
    33  over $500,000                           over $50,000
    34  Over $500,000                          $16,891 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 $12,000                       2.55% of the city taxable income
    40  Over $12,000 but not                   $306 plus 3.1% of excess
    41  over $25,000                            over $12,000
    42  Over $25,000 but not                   $709 plus 3.15% of excess
    43  over $50,000                            over $25,000
    44  Over $50,000 but not                   $1,497 plus 3.2% of excess
    45  over $500,000                           over $50,000
    46  Over $500,000                          $15,897 plus 3.4% of excess
    47                                          over $500,000

        S. 2009--B                          9                         A. 3009--B
 
     1    [(B)  For taxable years beginning in two thousand one and two thousand
     2  two and for taxable years beginning after two thousand five  and  before
     3  two thousand ten:

     4  If the city taxable income is:         The tax is:
     5  Not over $12,000                       2.55% of the city taxable income
     6  Over $12,000 but not                   $306 plus 3.1% of excess
     7  over $25,000                            over $12,000
     8  Over $25,000 but not                   $709 plus 3.15% of excess
     9  over $50,000                            over $25,000
    10  Over $50,000                           $1,497 plus 3.2% of excess
    11                                          over $50,000]
    12    §  4. Notwithstanding any provision of law to the contrary, the method
    13  of determining the amount to be deducted  and  withheld  from  wages  on
    14  account  of  taxes imposed by or pursuant to the authority of article 30
    15  of the tax law in connection with the implementation of  the  provisions
    16  of  this  act  shall be prescribed by regulations of the commissioner of
    17  taxation and finance with due consideration to the effect such withhold-
    18  ing tables and methods would have on the receipt and amount of  revenue.
    19  The  commissioner  of taxation and finance shall adjust such withholding
    20  tables and methods in regard to taxable  years  beginning  in  2015  and
    21  after in such manner as to result, so far as practicable, in withholding
    22  from  an  employee's wages an amount substantially equivalent to the tax
    23  reasonably estimated to be due for such taxable years as a result of the
    24  provisions of this act. Provided, however, for tax year 2015  the  with-
    25  holding  tables  shall  reflect  as  accurately  as practicable the full
    26  amount of tax year 2015 liability so that such  amount  is  withheld  by
    27  December  31,  2015. Any such regulations to implement a change in with-
    28  holding tables and methods for tax year 2015 shall be adopted and effec-
    29  tive as soon as practicable and the commissioner may  adopt  such  regu-
    30  lations  on  an emergency basis notwithstanding anything to the contrary
    31  in section 202 of the state administrative procedure  act.  In  carrying
    32  out  his  or  her  duties  and  responsibilities under this section, the
    33  commissioner of taxation and finance may accompany such  a  rule  making
    34  procedure with a similar procedure with respect to the taxes required to
    35  be  deducted  and  withheld by local laws imposing taxes pursuant to the
    36  authority of articles 30, 30-A and 30-B of the tax law,  the  provisions
    37  of  any  other  law  in  relation  to  such  a procedure to the contrary
    38  notwithstanding.
    39    § 5. 1. Notwithstanding any provision of law to the contrary, no addi-
    40  tion to tax shall be imposed for failure to pay  the  estimated  tax  in
    41  subsection  (c)  of  section  685  of the tax law and subdivision (c) of
    42  section 11-1785 of the administrative code of the city of New York  with
    43  respect  to  any underpayment of a required installment due prior to, or
    44  within thirty days of, the effective date of this act to the extent that
    45  such underpayment was created or increased by  the  amendments  made  by
    46  this  act, provided, however, that the taxpayer remits the amount of any
    47  underpayment prior to or with his or her next  quarterly  estimated  tax
    48  payment.
    49    2. The commissioner of taxation and finance shall take steps to publi-
    50  cize  the  necessary  adjustments  to  estimated  tax and, to the extent
    51  reasonably possible, to inform the taxpayer of the tax liability changes
    52  made by this act.
    53    § 6. This act shall take effect immediately.
 
    54                                   PART C

        S. 2009--B                         10                         A. 3009--B
 
     1                            Intentionally Omitted
 
     2                                   PART D
 
     3                            Intentionally Omitted
 
     4                                   PART E
 
     5    Section  1.  Section  425  of  the real property tax law is amended by
     6  adding a new subdivision 15 to read as follows:
     7    15. Recoupment of exemptions by commissioner. (a) Generally.   If  the
     8  commissioner  should determine, based upon data collected under the STAR
     9  registration program, that property improperly received the  basic  STAR
    10  exemption  on  one  or more of the three preceding assessment rolls, the
    11  commissioner  shall  treat  the  exemption  as  an  improperly   granted
    12  exemption  and  proceed  in  the  manner  provided  by this subdivision;
    13  provided that final assessment rolls that  were  filed  prior  to  April
    14  first,  two  thousand  eleven  shall not be subject to the provisions of
    15  this subdivision.
    16    (b) Procedure. The tax savings attributable to  each  such  improperly
    17  granted  exemption  shall  be  collected  from the owners whose property
    18  improperly received the exemption for the applicable year, together with
    19  interest as specified in this  subdivision,  by  utilizing  any  of  the
    20  procedures  for  collection,  levy,  and lien of personal income tax set
    21  forth in article twenty-two of the tax law, any  other  relevant  proce-
    22  dures  referenced  within  the provisions of that article, and any other
    23  law as may be applicable, so  far  as  practicable  when  recouping  the
    24  exemption amount pursuant to this subdivision, except that:
    25    (i)  prior  to  directing  that  an  improperly  granted  exemption be
    26  recouped pursuant to this subdivision, the  commissioner  shall  provide
    27  the  owners with notice and an opportunity to show the commissioner that
    28  the exemption was properly granted. If the owners  fail  to  respond  to
    29  such notice within forty-five days from the mailing thereof, or if their
    30  response  does  not  show  to  the  commissioner's satisfaction that the
    31  eligibility requirements were in fact satisfied, the commissioner  shall
    32  proceed  with  the  recoupment  of  the  improperly granted exemption in
    33  accordance with the provisions of this subdivision; and
    34    (ii) notwithstanding the provisions of paragraph  (b)  of  subdivision
    35  six  of  this  section,  neither  an  assessor nor a board of assessment
    36  review has the authority to consider an objection to the  recoupment  of
    37  an  exemption  pursuant  to  this subdivision, nor may such an action be
    38  reviewed in a proceeding to review an assessment pursuant to  title  one
    39  or  one-A  of  article seven of this chapter. Such an action may only be
    40  challenged before the department. If an owner is dissatisfied  with  the
    41  department's  final  determination,  the  owner may appeal that determi-
    42  nation to the board in a form and manner to be prescribed by the commis-
    43  sioner. Such appeal shall be filed within forty-five days from the issu-
    44  ance of the department's final determination. If dissatisfied  with  the
    45  board's determination, the owner may seek judicial review thereof pursu-
    46  ant  to  article  seventy-eight of the civil practice law and rules. The
    47  owner shall otherwise have no right to  challenge  such  final  determi-
    48  nation  in  a court action, administrative proceeding, including but not
    49  limited to an administrative proceeding pursuant to article forty of the
    50  tax law, or any other form of legal recourse against  the  commissioner,

        S. 2009--B                         11                         A. 3009--B
 
     1  the  department,  the  board,  the  assessor, or any other person, state
     2  agency, or local government.
     3    (c)  The  amount to be recouped for each improperly received exemption
     4  shall have interest added at the rate prescribed by section nine hundred
     5  twenty-four-a of this chapter or such other law as may be applicable for
     6  each month or portion thereof since the levy of school taxes  upon  such
     7  assessment roll.
     8    (d)  In  the  event  that  a revocation of prior exemption pursuant to
     9  subdivision twelve of this section or a voluntary  renunciation  of  the
    10  STAR exemption pursuant to section four hundred ninety-six of this chap-
    11  ter has occurred, the provisions of this subdivision shall not be appli-
    12  cable to the exemptions so revoked or voluntarily renounced.
    13    § 2. This act shall take effect immediately.
 
    14                                   PART F
 
    15    Section  1.  Subdivision 3 of section 97-rrr of the state finance law,
    16  as amended by section 8 of part F of chapter 109 of the laws of 2006, is
    17  amended to read as follows:
    18    3. The monies in such fund shall be appropriated for  school  property
    19  tax  exemptions [and local property tax rebates] granted pursuant to the
    20  real property tax law [and the tax law] and payable pursuant to  section
    21  [thirty-six  hundred  nine]  thirty-six  hundred nine-e of the education
    22  law, and for payments to the  city  of  New  York  pursuant  to  section
    23  fifty-four-f  of  this  chapter[,  and  pursuant  to section one hundred
    24  seventy-eight of the tax law].
    25    § 2. One-time relief for unenrolled registrants. (1) As used  in  this
    26  section,  the  term "unenrolled registrant" means a person who purchased
    27  or otherwise acquired a primary residence after the taxable status  date
    28  for  the  2013 assessment roll and who registered that property with the
    29  commissioner of taxation and finance in accordance with  subdivision  14
    30  of  section  425  of  the real property tax law on or before the taxable
    31  status date for the 2014 assessment roll, but  who  failed  to  file  an
    32  application  for the STAR exemption for that property in accordance with
    33  subdivision 6 of section 425 of the real property tax law on  or  before
    34  the taxable status date for the 2014 assessment roll.
    35    (2)  If  the  commissioner  of  taxation and finance is informed on or
    36  before October 1, 2015, that an  owner  of  property  is  an  unenrolled
    37  registrant,  and  if  such commissioner finds that the unenrolled regis-
    38  trant's property would have qualified for the STAR exemption  authorized
    39  by  section 425 of the real property tax law on the 2014 assessment roll
    40  if a completed application had been filed with the appropriate  assessor
    41  in  a  timely  manner,  then the commissioner of taxation and finance is
    42  authorized to remit directly to the property owner  or  owners  the  tax
    43  savings that the STAR exemption would have yielded if the STAR exemption
    44  had  been  granted  on  the  2014  assessment  roll. When remitting such
    45  amount, the commissioner of taxation and finance shall advise the  prop-
    46  erty  owner  or  owners that such payment is subject to recovery by such
    47  commissioner if the property owner or owners do not apply for and quali-
    48  fy for the STAR exemption on the 2015 assessment roll, or if  it  should
    49  otherwise  be  found  to have been erroneously remitted to such property
    50  owner or owners.
    51    (3) The amounts payable under this act shall be paid from the  account
    52  established  for the payment of STAR benefits to late registrants pursu-
    53  ant to subparagraph (iii) of paragraph (a) of subdivision 14 of  section
    54  425 of the real property tax law.

        S. 2009--B                         12                         A. 3009--B
 
     1    (4)  The provisions of part 6 of article 22 of the tax law relating to
     2  the collection of a tax imposed by such article that has  been  assessed
     3  and remains unpaid shall apply to the recovery authorized by subdivision
     4  two  of  this  section  of a payment found to have been erroneously made
     5  pursuant  to  this  act to an ineligible property owner or owners in the
     6  same manner and with the same force and effect as  if  the  language  of
     7  such  article  had been incorporated in full into this act except to the
     8  extent that any provision of such article is either inconsistent with  a
     9  provision  of  this  act or is not relevant to this act as determined by
    10  the commissioner of taxation and finance. Furthermore, for  purposes  of
    11  applying  the  provisions  of part 6 of article 22 of the tax law, where
    12  the terms "tax" and "taxes" appear in such article, such terms shall  be
    13  construed  to  mean  "a payment or payments erroneously made pursuant to
    14  this act to an ineligible property owner or owners".
    15    § 3. This act shall take effect immediately.
 
    16                                   PART G
 
    17                            Intentionally Omitted
 
    18                                   PART H
 
    19    Section 1. Subsection (g) of section 615 of the tax law, as amended by
    20  section 1 of part D of chapter 59 of the laws of  2013,  is  amended  to
    21  read as follows:
    22    (g)(1)  With  respect  to  an individual whose New York adjusted gross
    23  income is over one million dollars and no more than ten million dollars,
    24  the New York itemized deduction  shall  be  an  amount  equal  to  fifty
    25  percent  of  any charitable contribution deduction allowed under section
    26  one hundred seventy of the  internal  revenue  code  for  taxable  years
    27  beginning  after  two  thousand  nine  and before two thousand [sixteen]
    28  eighteen. With respect to an individual whose New  York  adjusted  gross
    29  income  is  over  one  million  dollars, the New York itemized deduction
    30  shall be an amount equal to fifty percent of any charitable contribution
    31  deduction allowed under section one  hundred  seventy  of  the  internal
    32  revenue  code  for taxable years beginning in two thousand nine or after
    33  two thousand [fifteen]  seventeen.
    34    (2) With respect to an individual whose New York adjusted gross income
    35  is over ten million dollars, the New York itemized deduction shall be an
    36  amount equal to  twenty-five  percent  of  any  charitable  contribution
    37  deduction  allowed  under  section  one  hundred seventy of the internal
    38  revenue code for taxable years beginning after  two  thousand  nine  and
    39  ending before two thousand [sixteen]  eighteen.
    40    §  2. Subdivision (g) of section 11-1715 of the administrative code of
    41  the city of New York, as amended by section 2 of part D of chapter 59 of
    42  the laws of 2013, is amended to read as follows:
    43    (g) (1) With respect to an individual whose New  York  adjusted  gross
    44  income is over one million dollars but no more than ten million dollars,
    45  the  New  York  itemized  deduction  shall  be  an amount equal to fifty
    46  percent of any charitable contribution deduction allowed  under  section
    47  one  hundred  seventy  of  the  internal  revenue code for taxable years
    48  beginning after two thousand nine  and  before  two  thousand  [sixteen]
    49  eighteen.  With  respect  to an individual whose New York adjusted gross
    50  income is over one million dollars,  the  New  York  itemized  deduction
    51  shall be an amount equal to fifty percent of any charitable contribution

        S. 2009--B                         13                         A. 3009--B
 
     1  deduction  allowed  under  section  one  hundred seventy of the internal
     2  revenue code for taxable years beginning in two thousand nine  or  after
     3  two thousand [fifteen] seventeen.
     4    (2) With respect to an individual whose New York adjusted gross income
     5  is over ten million dollars, the New York itemized deduction shall be an
     6  amount  equal  to  twenty-five  percent  of  any charitable contribution
     7  deduction allowed under section one  hundred  seventy  of  the  internal
     8  revenue  code  for  taxable  years beginning after two thousand nine and
     9  ending before two thousand [sixteen] eighteen.
    10    § 3. This act shall take effect immediately.
 
    11                                   PART I
 
    12    Section 1. Paragraph 41 of subsection (c) of section 612  of  the  tax
    13  law, as added by section 1 of part KK of chapter 59 of the laws of 2014,
    14  is amended to read as follows:
    15    (41) The amount of any award paid to a volunteer firefighter or volun-
    16  teer ambulance worker from a length of service defined contribution plan
    17  or defined benefit plan as provided for in articles eleven-A, eleven-AA,
    18  eleven-AAA  and  eleven-AAAA of the general municipal law, to the extent
    19  that such award is includable in gross income  for  federal  income  tax
    20  purposes;  provided,  however, that such award is not distributed in the
    21  form of a lump sum distribution, as defined in subparagraph [(A)] (D) of
    22  paragraph four of subsection (e) of section  four  hundred  two  of  the
    23  internal  revenue code and taxed under section six hundred three of this
    24  article; and provided, further, that such award is not distributed to  a
    25  taxpayer who has not attained the age of fifty-nine and one-half years.
    26    §  2. Paragraph 37 of subdivision (c) of section 11-1712 of the admin-
    27  istrative code of the city of New York, as added by section 2 of part KK
    28  of chapter 59 of the laws of 2014, is amended to read as follows:
    29    (37) The amount of any award paid to a volunteer firefighter or volun-
    30  teer ambulance worker from a length of service defined contribution plan
    31  or defined benefit plan as provided for in articles eleven-A, eleven-AA,
    32  eleven-AAA and eleven-AAAA of the general municipal law, to  the  extent
    33  that  such  award  is  includable in gross income for federal income tax
    34  purposes; provided, however, that such award is not distributed  in  the
    35  form of a lump sum distribution, as defined in subparagraph [(A)] (D) of
    36  paragraph  four  of  subsection  (e)  of section four hundred two of the
    37  internal revenue code and taxed under section six hundred three  of  the
    38  tax  law; and provided, further, that such award is not distributed to a
    39  taxpayer who has not attained the age of fifty-nine and one-half years.
    40    § 3. Paragraph 3-a of subsection (c) of section 612 of the tax law, as
    41  amended by chapter 760 of the laws  of  1992,  is  amended  to  read  as
    42  follows:
    43    (3-a)  Pensions  and  annuities  received  by  an  individual  who has
    44  attained the age of fifty-nine  and  one-half,  not  otherwise  excluded
    45  pursuant to paragraph three of this subsection, to the extent includible
    46  in  gross  income  for federal income tax purposes, but not in excess of
    47  twenty thousand dollars, which are  periodic  payments  attributable  to
    48  personal  services  performed by such individual prior to his retirement
    49  from employment, which arise (i) from an employer-employee  relationship
    50  or (ii) from contributions to a retirement plan which are deductible for
    51  federal  income tax purposes. However, the term "pensions and annuities"
    52  shall also include distributions  received  by  an  individual  who  has
    53  attained  the  age of fifty-nine and one-half from an individual retire-
    54  ment account or an individual retirement annuity, as defined in  section

        S. 2009--B                         14                         A. 3009--B
 
     1  four  hundred  eight  of  the  internal  revenue code, and distributions
     2  received by an individual who has attained the  age  of  fifty-nine  and
     3  one-half  from  self-employed  individual  and owner-employee retirement
     4  plans  which  qualify  under  section  four  hundred one of the internal
     5  revenue code, whether or not the payments are periodic in nature. Never-
     6  theless, the term "pensions and annuities" shall not  include  any  lump
     7  sum distribution, as defined in subparagraph [(A)] (D) of paragraph four
     8  of  subsection  (e)  of section four hundred two of the internal revenue
     9  code and taxed under section six hundred three of this article. Where  a
    10  husband  and  wife  file  a  joint state personal income tax return, the
    11  modification provided for in this paragraph shall be computed as if they
    12  were filing separate state personal income tax returns. Where a  payment
    13  would otherwise come within the meaning of the term "pensions and annui-
    14  ties"  as  set  forth  in this paragraph, except that such individual is
    15  deceased, such payment shall, nevertheless, be treated as a  pension  or
    16  annuity  for  purposes  of this paragraph if such payment is received by
    17  such individual's beneficiary.
    18    § 4. Subparagraph (B) of paragraph 1 of subsection  (e-1)  of  section
    19  606 of the tax law, as added by section 2 of part K of chapter 59 of the
    20  laws of 2014, is amended to read as follows:
    21    (B)  "Household"  or  "members  of  the  household"  means a qualified
    22  taxpayer and all other persons, not necessarily related,  who  have  the
    23  same residence and share its furnishings, facilities and accommodations.
    24  Such  terms shall not include a tenant, subtenant, roomer or boarder who
    25  is not related to the qualified taxpayer  in  any  degree  specified  in
    26  [paragraphs  one  through  eight  of  subsection  (a)] subparagraphs (A)
    27  through (G) of paragraph two of subsection (d) of  section  one  hundred
    28  fifty-two of the internal revenue code. Provided, however, no person may
    29  be a member of more than one household at one time.
    30    §  5.  Subparagraph  (D) of paragraph 1 of subsection (e-1) of section
    31  606 of the tax law, as added by section 2 of part K of chapter 59 of the
    32  laws of 2014, is amended to read as follows:
    33    (D) "Residence" means a dwelling in this state, in a city with a popu-
    34  lation of over one million, owned or rented by the taxpayer, and so much
    35  of the land abutting it, not exceeding one acre, as is reasonably neces-
    36  sary for use of the dwelling as a home, and may consist of a part  of  a
    37  multi-dwelling  or  multi-purpose  building  including  a cooperative or
    38  condominium, and  rental  units  within  a  single  dwelling.  Residence
    39  includes  a  trailer  or  mobile  home, used exclusively for residential
    40  purposes and defined as real  property  pursuant  to  paragraph  (g)  of
    41  subdivision  twelve  of section one hundred two of the real property tax
    42  law.
    43    § 6. Subparagraph (B) of paragraph 1 of subsection (e) of section  606
    44  of the tax law, as amended by chapter 28 of the laws of 1987, is amended
    45  to read as follows:
    46    (B)  "Household"  or  "members  of  the  household"  means a qualified
    47  taxpayer and all other persons, not necessarily related,  who  have  the
    48  same residence and share its furnishings, facilities and accommodations.
    49  Such  terms shall not include a tenant, subtenant, roomer or boarder who
    50  is not related to the qualified taxpayer  in  any  degree  specified  in
    51  [paragraphs  one  through  eight  of  subsection  (a)] subparagraphs (A)
    52  through (G) of paragraph two of subsection (d) of  section  one  hundred
    53  fifty-two of the internal revenue code. Provided, however, no person may
    54  be a member of more than one household at one time.

        S. 2009--B                         15                         A. 3009--B
 
     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. 2009--B                         16                         A. 3009--B
 
     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. 2009--B                         17                         A. 3009--B
 
     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. Subdivisions 7, 8, 9, 10, 11, 12, 13, 14, 15, 16,  17,  18,
    52  and  19  of  section  352  of  the economic development law, as added by
    53  section 1 of part MM of chapter 59 of the laws of 2010,  subdivision  12

        S. 2009--B                         18                         A. 3009--B
 
     1  as amended by section 1 of part G of chapter 61 of the laws of 2011, are
     2  amended to read as follows:
     3    7.  "Entertainment  company" means a corporation, partnership, limited
     4  partnership, or other entity principally engaged in  the  production  or
     5  post  production  of  (i)  motion pictures, which shall include feature-
     6  length films and television  films,  (ii)  instructional  videos,  (iii)
     7  televised  commercial  advertisements,  (iv) animated films or cartoons,
     8  (v) music videos, (vi) television programs, which shall include, but not
     9  be limited to, television series, television pilots,  and  single  tele-
    10  vision  episodes,  or (vii) programs primarily intended for radio broad-
    11  cast.  "Entertainment company" shall not include an entity  (i)  princi-
    12  pally  engaged  in  the  live  performance of events, including, but not
    13  limited to, theatrical productions,  concerts,  circuses,  and  sporting
    14  events,  (ii)  principally engaged in the production of content intended
    15  primarily for industrial, corporate or  institutional  end-users,  (iii)
    16  principally  engaged in the production of fundraising films or programs,
    17  or (iv) engaged in the production  of  content  for  which  records  are
    18  required under section 2257 of title 18, United States code, to be main-
    19  tained with respect to any performer in such production.
    20    8.  "Financial  services  data  centers or financial services customer
    21  back office  operations"  means  operations  that  manage  the  data  or
    22  accounts of existing customers or provide product or service information
    23  and  support  to  customers  of  financial services companies, including
    24  banks, other lenders, securities and commodities  brokers  and  dealers,
    25  investment  banks,  portfolio  managers,  trust  offices,  and insurance
    26  companies.
    27    [8.] 9. "Investment zone" shall mean an area within the state that had
    28  been designated under paragraph (i) of subdivision (a)  and  subdivision
    29  (d)  of  section  nine  hundred fifty-eight of the general municipal law
    30  that was wholly contained  within  up  to  four  distinct  and  separate
    31  contiguous  areas  as  of  the  date  immediately preceding the date the
    32  designation of such  area  expired  pursuant  to  section  nine  hundred
    33  sixty-nine of the general municipal law.
    34    [9.]  10.  "Manufacturing"  means the process of working raw materials
    35  into products suitable for use or which gives new shapes, new quality or
    36  new combinations to matter which has already gone through  some  artifi-
    37  cial  process by the use of machinery, tools, appliances, or other simi-
    38  lar equipment.  "Manufacturing"  does  not  include  an  operation  that
    39  involves  only the assembly of components, provided, however, the assem-
    40  bly of motor vehicles  or  other  high  value-added  products  shall  be
    41  considered manufacturing.
    42    [10.]  11.  "Music  production"  means  the  process of creating sound
    43  recordings of at least eight minutes,  recorded  in  professional  sound
    44  studios,  intended  for  commercial release. "Music production" does not
    45  include recording of live concerts, or  recordings  that  are  primarily
    46  spoken  word or wildlife or nature sounds, or produced for instructional
    47  use or advertising or promotional purposes.
    48    12. "Net new jobs" means [jobs created in this state that]:
    49    (a) jobs created in this state that (i) are new to the state[;],
    50    [(b)] (ii) have not been  transferred  from  employment  with  another
    51  business  located  in this state including from a related person in this
    52  state[;],
    53    [(c)] (iii) are either full-time wage-paying jobs or equivalent  to  a
    54  full-time  wage-paying  job  requiring  at  least  thirty-five hours per
    55  week[;], and
    56    [(d)] (iv) are filled for more than six months[.]; or

        S. 2009--B                         19                         A. 3009--B
 
     1    (b) jobs obtained by an entertainment company in this state (i)  as  a
     2  result  of  the termination of a licensing agreement with another enter-
     3  tainment company, (ii) that the commissioner determines to be at risk of
     4  leaving the state as a direct result of the termination, (iii) that  are
     5  either full-time wage-paying jobs or equivalent to a full-time wage-pay-
     6  ing job requiring at least thirty-five hours per week, and (iv) that are
     7  filled for more than six months.
     8    [11.] 13. "Participant" means a business entity that:
     9    (a)  has  completed  an application prescribed by the department to be
    10  admitted into the program;
    11    (b) has been issued a certificate of eligibility by the department;
    12    (c) has demonstrated that it meets the eligibility criteria in section
    13  three hundred fifty-three and subdivision two of section  three  hundred
    14  fifty-four of this article; and
    15    (d) has been certified as a participant by the commissioner.
    16    [12.]  14. "Preliminary schedule of benefits" means the maximum aggre-
    17  gate amount of each component of the tax credit that  a  participant  in
    18  the excelsior jobs program is eligible to receive pursuant to this arti-
    19  cle.  The schedule shall indicate the annual amount of each component of
    20  the credit a participant may claim in each of its ten years of eligibil-
    21  ity.    The  preliminary  schedule  of  benefits  shall be issued by the
    22  department when the department approves the  application  for  admission
    23  into  the  program.  The  commissioner may amend that schedule, provided
    24  that the commissioner complies with the credit  caps  in  section  three
    25  hundred fifty-nine of this article.
    26    [13.] 15. "Qualified investment" means an investment in tangible prop-
    27  erty  (including  a  building  or  a structural component of a building)
    28  owned by a business enterprise which:
    29    (a) is depreciable pursuant to section one hundred sixty-seven of  the
    30  internal revenue code;
    31    (b) has a useful life of four years or more;
    32    (c)  is  acquired by purchase as defined in section one hundred seven-
    33  ty-nine (d) of the internal revenue code;
    34    (d) has a situs in this state; and
    35    (e) is placed in service in the state on or after the date the certif-
    36  icate of eligibility is issued to the business enterprise.
    37    [14.] 16. "Regionally significant project" means  (a)  a  manufacturer
    38  creating at least fifty net new jobs in the state and making significant
    39  capital investment in the state; (b) a business creating at least twenty
    40  net  new jobs in agriculture in the state and making significant capital
    41  investment in the state, (c) a  financial  services  firm,  distribution
    42  center, or back office operation creating at least three hundred net new
    43  jobs  in  the  state  and  making  significant capital investment in the
    44  state, [or] (d) a scientific research and development firm  creating  at
    45  least  twenty  net new jobs in the state, and making significant capital
    46  investment in the state or (e)  an  entertainment  company  creating  or
    47  obtaining  at  least  two  hundred  net new jobs in the state and making
    48  significant capital investment in the state.  Other businesses  creating
    49  three  hundred  or more net new jobs in the state and making significant
    50  capital investment  in  the  state  may  be  considered  eligible  as  a
    51  regionally  significant project by the commissioner as well. The commis-
    52  sioner shall promulgate regulations pursuant to  section  three  hundred
    53  fifty-six  of  this  article  to  determine what constitutes significant
    54  capital investment for each of the project categories indicated in  this
    55  subdivision  and  what  additional  criteria  a business must meet to be
    56  eligible as a regionally significant project, including, but not limited

        S. 2009--B                         20                         A. 3009--B
 
     1  to, whether a business exports a substantial portion of its products  or
     2  services  outside  of the state or outside of a metropolitan statistical
     3  area or county within the state.
     4    [15.]  17.  "Related  person"  means  a  "related  person" pursuant to
     5  subparagraph (c) of paragraph three of subsection (b)  of  section  four
     6  hundred sixty-five of the internal revenue code.
     7    [16.]  18. "Remuneration" means wages and benefits paid to an employee
     8  by a participant in the excelsior jobs program.
     9    [17.] 19. "Research and development expenditures" mean the expenses of
    10  the business enterprise that are qualified research expenses  under  the
    11  federal  research  and development credit under section forty-one of the
    12  internal revenue code and are attributable to  activities  conducted  in
    13  the  state.  If the federal research and development credit has expired,
    14  then the research and development expenditures shall be calculated as if
    15  the federal research and development credit structure and definition  in
    16  effect in federal tax year two thousand nine were still in effect.
    17    [18.]  20.  "Scientific  research  and  development"  means conducting
    18  research and experimental development in the physical, engineering,  and
    19  life  sciences,  including  but not limited to agriculture, electronics,
    20  environmental, biology,  botany,  biotechnology,  computers,  chemistry,
    21  food, fisheries, forests, geology, health, mathematics, medicine, ocean-
    22  ography,  pharmacy, physics, veterinary, and other allied subjects.  For
    23  the purposes of this article, scientific research and  development  does
    24  not include medical or veterinary laboratory testing facilities.
    25    [19.]  21. "Software development" means the creation of coded computer
    26  instructions or production or post-production of video games, as defined
    27  in subdivision one-a of section six hundred eleven of the general  busi-
    28  ness law, other than those embedded and used exclusively in advertising,
    29  promotional  websites  or  microsites,  and  also  includes new media as
    30  defined by the commissioner in regulations.
    31    § 2. Subdivisions 1, 3, and 5 of section 353 of the economic  develop-
    32  ment  law,  subdivisions  1  and  5 as amended by section 2 of part G of
    33  chapter 61 of the laws of 2011 and subdivision 3 as amended by section 1
    34  of part C of chapter 68 of the laws of 2013,  are  amended  to  read  as
    35  follows:
    36    1. To be a participant in the excelsior jobs program, a business enti-
    37  ty shall operate in New York state predominantly:
    38    (a)  as  a financial services data center or a financial services back
    39  office operation;
    40    (b) in manufacturing;
    41    (c) in software development and new media;
    42    (d) in scientific research and development;
    43    (e) in agriculture;
    44    (f) in the creation or expansion of  back  office  operations  in  the
    45  state;
    46    (g) in a distribution center; [or]
    47    (h)  in  an  industry  with  significant  potential for private-sector
    48  economic growth and development in this  state  as  established  by  the
    49  commissioner  in  regulations  promulgated  pursuant to this article. In
    50  promulgating such regulations the commissioner  shall  include  job  and
    51  investment criteria;
    52    (i) as an entertainment company; or
    53    (j) in music production.
    54    3.  For  the  purposes of this article, in order to participate in the
    55  excelsior jobs program, a business  entity  operating  predominantly  in
    56  manufacturing  must  create at least ten net new jobs; a business entity

        S. 2009--B                         21                         A. 3009--B
 
     1  operating predominately in agriculture must create at least five net new
     2  jobs; a business entity operating predominantly as a  financial  service
     3  data  center  or  financial services customer back office operation must
     4  create at least fifty net new jobs; a business entity operating predomi-
     5  nantly  in scientific research and development must create at least five
     6  net new jobs; a business  entity  operating  predominantly  in  software
     7  development  must  create  at least five net new jobs; a business entity
     8  creating or expanding back office operations must create at least  fifty
     9  net  new  jobs;  a  business  entity  operating  predominately  in music
    10  production must create at least five net new  jobs;  a  business  entity
    11  operating  predominantly  as  an  entertainment  company  must create or
    12  obtain at least one hundred net new jobs; or a business entity operating
    13  predominantly as a distribution center in the state must create at least
    14  seventy-five net new jobs,  notwithstanding  subdivision  five  of  this
    15  section;  or  a business entity must be a regionally significant project
    16  as defined in this article; or
    17    5. A not-for-profit business entity, a business entity  whose  primary
    18  function is the provision of services including personal services, busi-
    19  ness  services,  or  the  provision  of utilities, and a business entity
    20  engaged predominantly in the retail  or  entertainment  industry,  other
    21  than a business operating as an entertainment company as defined in this
    22  article  and  other  than a business entity engaged in music production,
    23  and a company engaged in the generation or distribution of  electricity,
    24  the  distribution  of natural gas, or the production of steam associated
    25  with the generation of electricity are not eligible to receive  the  tax
    26  credit described in this article.
    27    §  3. Subdivision 1 of section 354 of the economic development law, as
    28  amended by section 3 of part G of chapter 61 of the  laws  of  2011,  is
    29  amended as follows:
    30    1.  A  business  enterprise  must  submit  a  completed application as
    31  prescribed by the commissioner.  An application made by an entertainment
    32  company must be submitted by June first, two  thousand  fifteen,  except
    33  for  an application made by an entertainment company that is eligible to
    34  participate in the excelsior jobs program based upon  creating  net  new
    35  jobs  pursuant  to  paragraph (a) of subdivision twelve of section three
    36  hundred fifty-two of this article. An application may be recommended  by
    37  entities, including but not limited to, those created pursuant to subdi-
    38  vision  (e) of section nine hundred fifty-seven of the general municipal
    39  law.
    40    § 4. Subdivision 6 of section 355 of the economic development law,  as
    41  amended  by  section  4  of part G of chapter 61 of the laws of 2011, is
    42  amended to read as follows:
    43    6. Claim of tax credit. The business enterprise shall  be  allowed  to
    44  claim the credit as prescribed in section thirty-one of the tax law.  No
    45  costs used by an entertainment company as the basis for the allowance of
    46  a  tax  credit  described  in  this section shall be used by such enter-
    47  tainment company to claim any other credit allowed pursuant to  the  tax
    48  law.
    49    § 5. This act shall take effect immediately.
 
    50                                   PART L
 
    51                            Intentionally Omitted
 
    52                                   PART M

        S. 2009--B                         22                         A. 3009--B
 
     1                            Intentionally Omitted
 
     2                                   PART N
 
     3                            Intentionally Omitted
 
     4                                   PART O
 
     5    Section  1.  The  economic  development law is amended by adding a new
     6  article 22 to read as follows:
     7                                 ARTICLE 22
     8                     EMPLOYEE TRAINING INCENTIVE PROGRAM
     9  Section 441. Definitions.
    10          442. Eligibility criteria.
    11          443. Application and approval process.
    12          444. Powers and duties of the commissioner.
    13          445. Recordkeeping requirements.
    14          446. Cap on tax credit.
    15    § 441. Definitions. As used in this article, the following terms shall
    16  have the following meanings:
    17    1. "Approved provider" means an entity meeting such criteria as  shall
    18  be  established by the commissioner in rules and regulations promulgated
    19  pursuant to this article, that may provide eligible training to  employ-
    20  ees  of  a business entity participating in the employee training incen-
    21  tive program; provided that, for internship programs, the business enti-
    22  ty shall be an approved provider or an  approved  provider  in  contract
    23  with  such business entity. Such criteria shall ensure that any approved
    24  provider possess adequate credentials to provide the training  described
    25  in  an  application  by a business entity to the commissioner to partic-
    26  ipate in the employee training incentive program.
    27    2. "Commissioner" means the commissioner of economic development.
    28    3. "Eligible training" means (a)  training  provided  by  an  approved
    29  provider that is:
    30    (i) to upgrade, retrain or improve the productivity of employees;
    31    (ii)  provided  to  employees  filling  net  new  jobs, or to existing
    32  employees in connection with  a  significant  capital  investment  by  a
    33  participating business entity;
    34    (iii) determined by the commissioner to satisfy a business need on the
    35  part of a participating business entity;
    36    (iv)  not designed to train or upgrade skills as required by a federal
    37  or state entity;
    38    (v) not training the completion of which may result in the awarding of
    39  a license or certificate required by law in order to perform a job func-
    40  tion; and
    41    (vi) not culturally focused training; or
    42    (b) an internship program  in  advanced  technology  approved  by  the
    43  commissioner  and  provided  by an approved provider, on or after August
    44  first, two thousand fifteen, to provide employment and experience oppor-
    45  tunities for current students, recent graduates, and recent  members  of
    46  the armed forces.
    47    4. "Net new job" means a job created in this state that:
    48    (a) is new to the state;
    49    (b)  has  not  been  transferred from employment with another business
    50  located in this state through an acquisition, merger,  consolidation  or

        S. 2009--B                         23                         A. 3009--B
 
     1  other  reorganization  of  businesses  or  the  acquisition of assets of
     2  another business, and has not been transferred from  employment  with  a
     3  related person in this state;
     4    (c) is either a full-time wage-paying job or equivalent to a full-time
     5  wage-paying job requiring at least thirty-five hours per week;
     6    (d) is filled for more than six months;
     7    (e) is filled by a person who has received eligible training; and
     8    (f) is comprised of tasks the performance of which required the person
     9  filling the job to undergo eligible training.
    10    5.  "Significant  capital investment" means a capital investment of at
    11  least one million dollars in new business processes or equipment.
    12    6. "Strategic industry" means an industry in  this  state,  as  estab-
    13  lished  by  the commissioner in regulations promulgated pursuant to this
    14  article, based upon the following criteria:
    15    (a) shortages of workers trained to work within the industry;
    16    (b) technological disruption in the  industry,  requiring  significant
    17  capital investment for existing businesses to remain competitive;
    18    (c)  the  ability of businesses in the industry to relocate outside of
    19  the state in order to attract talent;
    20    (d) the potential to recruit minorities and women  to  be  trained  to
    21  work in the industry in which they are traditionally underrepresented;
    22    (e)  the  potential  to  create jobs in economically distressed areas,
    23  which shall be  based  on  criteria  indicative  of  economic  distress,
    24  including poverty rates, numbers of persons receiving public assistance,
    25  and unemployment rates; or
    26    (f)  such  other criteria as shall be developed by the commissioner in
    27  consultation with the commissioner of labor.
    28    § 442. Eligibility criteria. In order to participate in  the  employee
    29  training incentive program, a business entity must satisfy the following
    30  criteria:
    31    1.  (a) The business entity must operate in the state predominantly in
    32  a strategic industry;
    33    (b) The business entity must demonstrate that it is obtaining eligible
    34  training from an approved provider;
    35    (c) The business entity must create at least ten net new jobs or  make
    36  a  significant capital investment in connection with the eligible train-
    37  ing; and
    38    (d) The  business  entity  must  be  in  compliance  with  all  worker
    39  protection  and  environmental  laws  and  regulations. In addition, the
    40  business entity may not owe past  due  state  taxes  or  local  property
    41  taxes; or
    42    2.  (a)  The business entity, or an approved provider in contract with
    43  such business entity, must be approved by the  commissioner  to  provide
    44  eligible training in the form of an internship program in advanced tech-
    45  nology  pursuant  to  paragraph (b) of subdivision three of section four
    46  hundred forty-one of this article;
    47    (b) The business entity must be located in the state;
    48    (c) The  business  entity  must  be  in  compliance  with  all  worker
    49  protection  and  environmental  laws  and  regulations. In addition, the
    50  business entity must not have past due state  taxes  or  local  property
    51  taxes;
    52    (d) The internship program shall not displace regular employees;
    53    (e) The business entity must have less than one hundred employees; and
    54    (f)  Participation of an individual in an internship program shall not
    55  last more than a total of twelve months.

        S. 2009--B                         24                         A. 3009--B
 
     1    § 443. Application and approval process. 1.  A  business  entity  must
     2  submit a completed application in such form and with such information as
     3  prescribed by the commissioner.
     4    2. As part of such application, each business entity must:
     5    (a)  provide  such  documentation  as  the commissioner may require in
     6  order for the commissioner to determine that the business entity intends
     7  to procure eligible training for its employees from an approved  provid-
     8  er;
     9    (b) agree to allow the department of taxation and finance to share its
    10  tax  information with the department. However, any information shared as
    11  a result of this agreement shall not  be  available  for  disclosure  or
    12  inspection under the state freedom of information law;
    13    (c)  agree  to  allow  the  department  of  labor to share its tax and
    14  employer information  with  the  department.  However,  any  information
    15  shared  as a result of this agreement shall not be available for disclo-
    16  sure or inspection under the state freedom of information law;
    17    (d) allow the department and its agents access to any  and  all  books
    18  and records the department may require to monitor compliance;
    19    (e)  provide  a clear and detailed presentation of all related persons
    20  to the applicant to assure the department that jobs are not being shift-
    21  ed within the state; and
    22    (f) certify, under penalty of  perjury,  that  it  is  in  substantial
    23  compliance  with all environmental, worker protection, and local, state,
    24  and federal tax laws.
    25    3. The commissioner may approve an application from a business  entity
    26  upon  determining that such business entity meets the eligibility crite-
    27  ria established in section  four  hundred  forty-two  of  this  article.
    28  Following  approval  by the commissioner of an application by a business
    29  entity to participate in the employee training  incentive  program,  the
    30  commissioner  shall  issue  a  certificate of tax credit to the business
    31  entity upon its demonstrating successful  completion  of  such  eligible
    32  training to the satisfaction of the commissioner.  For eligible training
    33  as defined by paragraph (a) of subdivision three of section four hundred
    34  forty-one  of  this  article  the amount of the credit shall be equal to
    35  fifty percent of eligible training costs, up to a credit of ten thousand
    36  dollars per employee receiving eligible training.  For eligible training
    37  as defined by paragraph (b) of subdivision three of section four hundred
    38  forty-one of this article, the amount of the credit shall  be  equal  to
    39  fifty  percent of the stipend paid to an intern, up to a credit of three
    40  thousand dollars per intern.  The tax credits shall be  claimed  by  the
    41  qualified  employer  as  specified  in  subdivision fifty of section two
    42  hundred ten-B and subsection (ddd) of section six hundred six of the tax
    43  law.
    44    § 444. Powers and duties of  the  commissioner.  1.  The  commissioner
    45  shall,  in consultation with the commissioner of labor, promulgate regu-
    46  lations consistent with the purposes of this article that, notwithstand-
    47  ing any provisions to the contrary in the state administrative procedure
    48  act, may be adopted  on  an  emergency  basis.  Such  regulations  shall
    49  include,  but not be limited to, eligibility criteria for business enti-
    50  ties desiring to participate in the employee training incentive program,
    51  procedures for the receipt and evaluation of applications from  business
    52  entities to participate in the program, and such other provisions as the
    53  commissioner   deems  to  be  appropriate  in  order  to  implement  the
    54  provisions of this article.
    55    2. The commissioner shall, in  consultation  with  the  department  of
    56  taxation  and finance, develop a certificate of tax credit that shall be

        S. 2009--B                         25                         A. 3009--B
 
     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    3.  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 one of section four hundred forty-two of this
     9  article or for making a material misrepresentation with respect  to  its
    10  participation in the employee training incentive program.
    11    §  445. Recordkeeping requirements. Each business entity participating
    12  in the employee training incentive program shall maintain  all  relevant
    13  records for the duration of its program participation plus three years.
    14    §  446.  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 five million dollars, and shall be allotted from the
    17  funds  available  for  tax  credits under the excelsior jobs program act
    18  pursuant to section three hundred fifty-nine of this  chapter,  provided
    19  however, that the portion of this tax credit cap allocated to internship
    20  programs in advanced technology shall be not less than two hundred fifty
    21  thousand dollars nor more than one million dollars.
    22    §  2. Section 210-B of the tax law is amended by adding a new subdivi-
    23  sion 50 to read as follows:
    24    50. Employee training incentive program tax  credit.  (a)  A  taxpayer
    25  that  has  been  approved by the commissioner of economic development to
    26  participate in the employee training  incentive  program  and  has  been
    27  issued  a  certificate  of  tax  credit pursuant to section four hundred
    28  forty-three of the economic development law shall be allowed to claim  a
    29  credit  against the tax imposed by this article.  The credit shall equal
    30  fifty percent of a taxpayer's eligible training costs, up to a credit of
    31  ten thousand dollars per employee completing eligible training  pursuant
    32  to  paragraph (a) of subdivision three of section four hundred forty-one
    33  of the economic development law.  The credit shall equal  fifty  percent
    34  of  the  stipend  paid  to  an  intern, up to a credit of three thousand
    35  dollars per intern completing eligible training  pursuant  to  paragraph
    36  (b)  of  subdivision  three  of  section  four  hundred forty-one of the
    37  economic development law.  In no event shall a  taxpayer  be  allowed  a
    38  credit  greater  than  the amount of credit listed on the certificate of
    39  tax credit issued by the commissioner of economic development. The cred-
    40  it will be allowed in the taxable year in which the eligible training is
    41  completed.
    42    (b) The credit allowed under this subdivision for any taxable year may
    43  not reduce the tax due for that year to less than the amount  prescribed
    44  in  paragraph  (d) of subdivision one of section two hundred ten of this
    45  article.  However, if the amount of credit allowed under  this  subdivi-
    46  sion  for  any  taxable  year  reduces the tax to such amount, or if the
    47  taxpayer otherwise pays tax based on the fixed  dollar  minimum  amount,
    48  any  amount  of  credit thus not deductible in that taxable year will be
    49  treated as an overpayment of tax to be credited or refunded  in  accord-
    50  ance  with  the  provisions  of  section one thousand eighty-six of this
    51  chapter. Provided, however, the provisions of subsection (c) of  section
    52  one  thousand  eighty-eight of this chapter notwithstanding, no interest
    53  will be paid thereon.
    54    (c) The taxpayer may be required to  attach  to  its  tax  return  its
    55  certificate  of tax credit issued by the commissioner of economic devel-
    56  opment pursuant to section four  hundred  forty-three  of  the  economic

        S. 2009--B                         26                         A. 3009--B
 
     1  development  law.    In  no event shall the taxpayer be allowed a credit
     2  greater than the amount of the credit listed in the certificate  of  tax
     3  credit,  or  in the case of a taxpayer who is a partner in a partnership
     4  or  a  member  of a limited liability company, its pro rata share of the
     5  amount of credit listed in the certificate of tax credit issued  to  the
     6  partnership or limited liability company.
     7    §  3. Section 606 of the tax law is amended by adding a new subsection
     8  (ddd) to read as follows:
     9    (ddd) Employee training incentive program tax credit. (1)  A  taxpayer
    10  that  has  been  approved by the commissioner of economic development to
    11  participate in the employee training  incentive  program  and  has  been
    12  issued  a  certificate  of  tax  credit pursuant to section four hundred
    13  forty-three of the economic development law shall be allowed to claim  a
    14  credit  against the tax imposed by this article.  The credit shall equal
    15  fifty percent of a taxpayer's eligible training costs, up to a credit of
    16  ten thousand dollars per employee completing eligible training  pursuant
    17  to  paragraph (a) of subdivision three of section four hundred forty-one
    18  of the economic development law.  The credit shall equal  fifty  percent
    19  of  the  stipend  paid  to  an  intern, up to a credit of three thousand
    20  dollars per intern completing eligible training  pursuant  to  paragraph
    21  (b)  of  subdivision  three  of  section  four  hundred forty-one of the
    22  economic development law.  In no event shall a  taxpayer  be  allowed  a
    23  credit  greater  than the amount listed on the certificate of tax credit
    24  issued by the commissioner of economic development.   In the case  of  a
    25  taxpayer  who is a partner in a partnership, member of a limited liabil-
    26  ity company or shareholder in an S corporation, the  taxpayer  shall  be
    27  allowed  its  pro  rata  share  of the credit earned by the partnership,
    28  limited liability company or S corporation. The credit will  be  allowed
    29  in the taxable year in which the eligible training is completed.
    30    (2)  If the amount of the credit allowed under this subsection for any
    31  taxable year exceeds the taxpayer's tax for the taxable year, the excess
    32  shall be treated as an overpayment of tax to be credited or refunded  in
    33  accordance with the provisions of section six hundred eighty-six of this
    34  article, provided, however, no interest will be paid thereon.
    35    §  4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
    36  of the tax law is amended by adding a  new  clause  (xlii)  to  read  as
    37  follows:
    38  (xlii) Employee training incentive   Amount of credit under
    39  program credit under                 subdivision fifty of
    40  subsection (ddd)                     section two hundred ten-B
    41    § 5. This act shall take effect immediately and shall apply to taxable
    42  years  beginning on or after January 1, 2015 and eligible training costs
    43  incurred on or after the effective date of this act.
 
    44                                   PART P
 
    45    Section 1. Paragraph (b) of subdivision 1 of section 186-c of the  tax
    46  law,  as  amended  by  section 65 of part A of chapter 59 of the laws of
    47  2014, is amended to read as follows:
    48    (b) (1) In addition to the surcharge imposed by paragraph (a) of  this
    49  subdivision,  there  is hereby imposed a surcharge on the gross receipts
    50  from telecommunication services, except  for  the  gross  receipts  from
    51  mobile telecommunication services that are subject to tax under subpara-
    52  graph  two  of  this  paragraph,  relating  to the metropolitan commuter
    53  transportation district at the rate of seventeen percent  of  the  state
    54  tax rate under section one hundred eighty-six-e of this article. All the

        S. 2009--B                         27                         A. 3009--B
 
     1  definitions  and other provisions of section one hundred eighty-six-e of
     2  this article shall apply to the tax imposed by this [paragraph] subpara-
     3  graph with such modification and limitation as may be necessary (includ-
     4  ing   substituting   the  words  "metropolitan  commuter  transportation
     5  district" for "state" where appropriate) in order to adapt the  language
     6  of  such  section  one  hundred  eighty-six-e  of  this  article  to the
     7  surcharge imposed by this [paragraph] subparagraph within such metropol-
     8  itan commuter transportation district so as to  include  [(1)]  (i)  any
     9  intra-district telecommunication services[, except any telecommunication
    10  services the gross receipts from which are subject to tax under subpara-
    11  graph  four of this paragraph], [(2)] (ii) any inter-district telecommu-
    12  nication services which originate or terminate in such district and  are
    13  charged  to  a  service  address therein regardless of where the amounts
    14  charged for such services are billed or  ultimately  paid[,  except  any
    15  telecommunications services the gross receipts from which are subject to
    16  tax  under  subparagraph  four  of  this  paragraph], [(3)] and (iii) as
    17  apportioned  to  such  district,  private  telecommunication  services[,
    18  except  any telecommunication services the gross receipts from which are
    19  subject to tax under subparagraph four of this paragraph, and (4) mobile
    20  telecommunications service provided by a home service provider where the
    21  place of primary use is within such metropolitan commuter transportation
    22  district]. Provided however, such tax surcharge shall be  calculated  as
    23  if  the tax imposed under section one hundred eighty-six-e of this arti-
    24  cle were imposed at a rate of three and one-half percent.
    25    (2) In addition to the surcharge imposed  by  paragraph  (a)  of  this
    26  subdivision,  there  is hereby imposed a surcharge on the gross receipts
    27  from mobile telecommunication  services  relating  to  the  metropolitan
    28  commuter  transportation  district  at the rate of seven-tenths and two-
    29  hundredths and one-thousandth percent on and after May first, two  thou-
    30  sand  fifteen.   All the definitions and other provisions of section one
    31  hundred eighty-six-e of this article shall apply to the tax  imposed  by
    32  this subparagraph with such modification and limitation as may be neces-
    33  sary  (including substituting the words "metropolitan commuter transpor-
    34  tation district" for "state" where appropriate) in order  to  adapt  the
    35  language of such section one hundred eighty-six-e of this article to the
    36  surcharge imposed by this subparagraph within such metropolitan commuter
    37  transportation  district  so as to include any mobile telecommunications
    38  service provided by a home service provider where the mobile  telecommu-
    39  nications  customer's  place  of primary use is within such metropolitan
    40  commuter transportation district.
    41    § 2. Paragraph (a) of subdivision 2 of section 186-e of the  tax  law,
    42  as  amended by section 4 of part S of chapter 85 of the laws of 2002, is
    43  amended to read as follows:
    44    (a) (1) There is hereby imposed an excise tax on the sale of  telecom-
    45  munication  services,  except  for  the sale of mobile telecommunication
    46  services that are subject to tax under subparagraph two  of  this  para-
    47  graph,  by any person which is a provider of telecommunication services,
    48  to be paid by such person, at the rate of  three  and  one-half  percent
    49  prior  to  October  first, nineteen hundred ninety-eight, three and one-
    50  quarter  percent  from  October  first,  nineteen  hundred  ninety-eight
    51  through December thirty-first, nineteen hundred ninety-nine, and two and
    52  one-half  percent  on  and  after  January  first, two thousand of gross
    53  receipt from: [(1)]  (i)  any  intrastate  telecommunication  services[,
    54  except  any  telecommunication  services the gross receipt from which is
    55  subject to tax under subparagraph four of this  paragraph];  [(2)]  (ii)
    56  any  interstate and international telecommunication services (other than

        S. 2009--B                         28                         A. 3009--B
 
     1  interstate and international private telecommunication services [and any
     2  telecommunication services the gross receipt from which  is  subject  to
     3  tax  under  subparagraph  four  of  this  paragraph]) which originate or
     4  terminate in this state and which telecommunication services are charged
     5  to  a  service  address  in  this state, regardless of where the amounts
     6  charged for such services are billed or ultimately paid; [(3)] and (iii)
     7  interstate and international  private  telecommunication  services,  the
     8  gross  receipt  to  which  the  tax  shall  apply shall be determined as
     9  prescribed in subdivision three of this section[, except any  telecommu-
    10  nication  services  the gross receipt from which is subject to tax under
    11  subparagraph four of this paragraph; and (4)  mobile  telecommunications
    12  service  provided by a home service provider where the mobile telecommu-
    13  nications customer's place of primary use is within this state].
    14    (2) There is hereby imposed an excise tax on the sale of mobile  tele-
    15  communication  services, by any person which is a provider of telecommu-
    16  nication services, to be paid by such person, at the  rate  of  two  and
    17  nine-tenths  percent  on  and  after  May first, two thousand fifteen of
    18  gross receipts from any mobile telecommunications service provided by  a
    19  home  service  provider  where  the mobile telecommunications customer's
    20  place of primary use is within this state.
    21    § 3. Section 186-e of the tax law is amended by adding a new  subdivi-
    22  sion 9 to read as follows:
    23    9.  Distribution. Seven and six-tenths percent of the monies collected
    24  from the excise tax imposed by this section shall be distributed  pursu-
    25  ant to subdivision three of section two hundred five of this chapter.
    26    §  4.  Severability. If any provision of this act shall for any reason
    27  be finally adjudged by any court of competent jurisdiction to be  inval-
    28  id,  such judgment shall not affect, impair, or invalidate the remainder
    29  of this act, but shall be confined in its  operation  to  the  provision
    30  directly  involved  in the controversy in which such judgment shall have
    31  been rendered. It is hereby declared to be the intent of the legislature
    32  that this act would have been enacted even if such invalid provision had
    33  not been included in this act.  Provided further, if a court  of  final,
    34  competent  jurisdiction  adjudges  the  tax rates imposed on the sale of
    35  mobile telecommunication services, by any person which is a provider  of
    36  telecommunication  services,  pursuant  to subparagraph (2) of paragraph
    37  (a) of subdivision 2 of section 186-e of the tax law, to be  invalid  as
    38  imposed on the sale of such services, such tax rates shall be imposed on
    39  the sale of all telecommunication services, including the sale of mobile
    40  telecommunication services.
    41    §  5.  This act shall take effect immediately and shall apply to gross
    42  receipts from mobile telecommunication services received  on  and  after
    43  May  1,  2015, and shall apply, for purposes of subdivision 9 of section
    44  186-e of the tax law, as added by section three of this act,  to  monies
    45  collected from the excise tax imposed by section 186-e of the tax law on
    46  the sale of mobile telecommunication services on and after May 1, 2015.
 
    47                                   PART Q
 
    48                            Intentionally Omitted
 
    49                                   PART R
 
    50                            Intentionally Omitted

        S. 2009--B                         29                         A. 3009--B
 
     1                                   PART S
 
     2    Section  1. Paragraph (r) of section 104-A of the business corporation
     3  law, as amended by chapter 172 of the laws of 2000, is amended  to  read
     4  as follows:
     5    (r)  For  filing  a  statement  or  amendment pursuant to section four
     6  hundred eight of  this  chapter  with  the  department  of  state,  nine
     7  dollars.    This fee shall not apply to statements submitted through the
     8  department of taxation  and  finance  pursuant  to  paragraph  eight  of
     9  section four hundred eight of this chapter.
    10    §  2.  Paragraphs  (b) and (c) of section 306-A of the business corpo-
    11  ration law, as added by chapter 469 of the laws of 1997, are amended  to
    12  read as follows:
    13    (b)  Upon the failure of the designating corporation to file a certif-
    14  icate of amendment or change providing for the designation by the corpo-
    15  ration of the new address after the filing of a certificate of  resigna-
    16  tion  for  receipt of process with the secretary of state, its authority
    17  to do business in this state shall be suspended unless  the  corporation
    18  has  previously  filed  a  statement  [of addresses and directors] under
    19  section four hundred eight of this chapter, in which case the address of
    20  the principal executive office stated in the last  filed  statement  [of
    21  addresses  and  directors], shall constitute the new address for process
    22  of the corporation provided such address is different from the  previous
    23  address for process, and the corporation shall not be deemed suspended.
    24    (c)  The  filing by the department of state of a certificate of amend-
    25  ment or change or statement under section four  hundred  eight  of  this
    26  chapter  providing  for a new address by a designating corporation shall
    27  annul the suspension and its authority to  do  business  in  this  state
    28  shall be restored and continue as if no suspension had occurred.
    29    §  3. Section 408 of the business corporation law, as added by chapter
    30  55 of the laws of 1992, the section heading as amended by chapter 375 of
    31  the laws of 1998, subparagraph (a) of paragraph 1  and  paragraph  2  as
    32  amended  by  chapter  172 of the laws of 1999, subparagraph (b) of para-
    33  graph 3 as amended by chapter 170 of the laws of 1994,  paragraph  6  as
    34  added  by  chapter  469 of the laws of 1997, and paragraph 7 as added by
    35  chapter 172 of the laws of 2000, is amended to read as follows:
    36  § 408. [Biennial statement] Statement; filing.
    37    1. [Each] Except as provided in paragraph eight of this section,  each
    38  domestic  corporation,  and  each  foreign  corporation authorized to do
    39  business in this state, shall, during the applicable  filing  period  as
    40  determined  by  subdivision  three  of  this  section,  file a statement
    41  setting forth:
    42    (a) The name and business address of its chief executive officer.
    43    (b) The street address of its principal executive office.
    44    (c) The post office address within or without this state to which  the
    45  secretary  of  state  shall mail a copy of any process against it served
    46  upon him or her. Such address shall supersede any  previous  address  on
    47  file with the department of state for this purpose.
    48    2.  [Such] Except as provided in paragraph eight of this section, such
    49  statement shall be made on forms prescribed by the secretary  of  state,
    50  and  the  information therein contained shall be given as of the date of
    51  the execution of  the  statement.  Such  statement  shall  only  request
    52  reporting  of  information required under paragraph one of this section.
    53  It shall be signed and delivered to the department of state.
    54    3. [For] Except as provided in paragraph eight of  this  section,  for
    55  the  purpose  of  this section the applicable filing period for a corpo-

        S. 2009--B                         30                         A. 3009--B
 
     1  ration shall be the calendar month during which its original certificate
     2  of incorporation or application for authority were filed or  the  effec-
     3  tive  date  thereof  if  stated. The applicable filing period shall only
     4  occur:  (a)  annually,  during  the period starting on April 1, 1992 and
     5  ending on March 31, 1994; and (b) biennially, during a  period  starting
     6  on  April  1  and ending on March 31 thereafter. Those corporations that
     7  filed between April 1, 1992 and June 30, 1994 shall not be  required  to
     8  file such statements again until such time as they would have filed, had
     9  this subdivision not been amended.
    10    4.  The provisions of [subdivision eleven of section ninety-six of the
    11  executive law and] paragraph (g) of section one  hundred  four  of  this
    12  chapter shall not be applicable to filings pursuant to this section.
    13    5.  The  provisions  of  this  section and section 409 of this article
    14  shall not apply to a farm corporation. For the purposes of this subdivi-
    15  sion, the term "farm corporation" shall mean any domestic corporation or
    16  foreign corporation authorized to do business in this state  under  this
    17  chapter  engaged  in  the  production  of crops, livestock and livestock
    18  products on land used in agricultural production, as defined in  section
    19  301  of  the  agriculture and markets law. However, this exception shall
    20  not apply to farm corporations  that  have  filed  statements  with  the
    21  department  of state which have been submitted through the department of
    22  taxation and finance pursuant to paragraph eight of this section.
    23    6. No such statement shall be accepted for filing when  a  certificate
    24  of resignation for receipt of process has been filed under section three
    25  hundred  six-A  of  this  chapter  unless  the  corporation has stated a
    26  different address for process which does not include  the  name  of  the
    27  party  previously  designated in the address for process in such certif-
    28  icate.
    29    7. A domestic corporation or foreign corporation may amend its  state-
    30  ment  to change the information required by [subdivisions] subparagraphs
    31  (a) and (b) of paragraph one of this section. Such  amendment  shall  be
    32  made  on  forms prescribed by the secretary of state. It shall be signed
    33  and delivered to the department of state.
    34    8. (a) The commissioner of taxation and finance and the  secretary  of
    35  state may agree to allow corporations to provide the statement specified
    36  in  paragraph  one of this section on tax reports filed with the depart-
    37  ment of taxation and finance in lieu of biennial statements. This agree-
    38  ment may apply to tax reports due for tax years  starting  on  or  after
    39  January first, two thousand sixteen.
    40    (b)  If  the agreement described in subparagraph (a) of this paragraph
    41  is made, each corporation required to file the  statement  specified  in
    42  paragraph  one of this section that is also subject to tax under article
    43  nine or nine-A of the tax law shall include such statement  annually  on
    44  its tax report filed with the department of taxation and finance in lieu
    45  of  filing  a  statement under this section with the department of state
    46  and in a manner prescribed by the commissioner of taxation and  finance.
    47  However,  each  corporation  required  to  file  a  statement under this
    48  section must continue to file the biennial statement  required  by  this
    49  section  with  the department of state until the corporation in fact has
    50  filed a tax report with the department  of  taxation  and  finance  that
    51  includes  all  required  information.  After  that time, the corporation
    52  shall continue to deliver annually the statement specified in  paragraph
    53  one  of this section on its tax report in lieu of the biennial statement
    54  required by this section.
    55    (c) If the agreement described in subparagraph (a) of  this  paragraph
    56  is  made,  the  department  of taxation and finance shall deliver to the

        S. 2009--B                         31                         A. 3009--B
 
     1  department of state for filing the statement specified in paragraph  one
     2  of  this section for each corporation that files a tax report containing
     3  such statement. The department of taxation  and  finance  must,  to  the
     4  extent  feasible,  also  include  the  current  name of the corporation,
     5  department of state identification  number  for  such  corporation,  the
     6  name,  signature  and  capacity of the signer of the statement, name and
     7  street address of the filer of the statement, and the email address,  if
     8  any, of the filer of the statement.
     9    §  4. Section 409 of the business corporation law is amended by adding
    10  a new paragraph 4 to read as follows:
    11    4. This section shall not apply to corporations that have submitted  a
    12  statement  pursuant  to paragraph eight of section four hundred eight of
    13  this chapter.
    14    § 5. Subdivision (e) of section 301 of the limited  liability  company
    15  law,  as  amended by chapter 643 of the laws of 1995, is amended to read
    16  as follows:
    17    (e) [Every] (1) Except as  otherwise  provided  in  this  subdivision,
    18  every  limited  liability  company  to which this chapter applies, shall
    19  biennially in the calendar month during which its articles of  organiza-
    20  tion  or application for authority were filed, or effective date thereof
    21  if stated, file on forms prescribed by the secretary of state, a  state-
    22  ment  setting forth the post office address within or without this state
    23  to which the secretary of  state  shall  mail  a  copy  of  any  process
    24  accepted against it served upon him or her. Such address shall supersede
    25  any  previous  address  on  file  with  the department of state for this
    26  purpose.
    27    (2) The commissioner of taxation and  finance  and  the  secretary  of
    28  state  may  agree  to  allow  limited liability companies to include the
    29  statement specified in paragraph one of this subdivision on tax  reports
    30  filed  with  the  department of taxation and finance in lieu of biennial
    31  statements and in a manner prescribed by the  commissioner  of  taxation
    32  and  finance.  If  this  agreement  is made, starting with taxable years
    33  beginning on or after January first, two thousand sixteen, each  limited
    34  liability  company required to file the statement specified in paragraph
    35  one of this subdivision that is subject to the  filing  fee  imposed  by
    36  paragraph  three of subsection (c) of section six hundred fifty-eight of
    37  the tax law shall provide such statement  annually  on  its  filing  fee
    38  payment  form  filed with the department of taxation and finance in lieu
    39  of filing a statement under this section with the department  of  state.
    40  However,  each  limited  liability  company required to file a statement
    41  under this section must continue to file the biennial statement required
    42  by this section with the department of state until the limited liability
    43  company in fact has filed a filing fee payment form with the  department
    44  of  taxation  and  finance that includes all required information. After
    45  that time, the limited liability company shall continue to provide annu-
    46  ally the statement specified in paragraph one of this subdivision on its
    47  filing fee payment form in lieu of the biennial  statement  required  by
    48  this subdivision.
    49    (3) If the agreement described in paragraph two of this subdivision is
    50  made,  the  department  of  taxation  and  finance  shall deliver to the
    51  department of state the statement specified in  paragraph  one  of  this
    52  subdivision  contained  on  filing  fee payment forms. The department of
    53  taxation and finance must, to the  extent  feasible,  also  include  the
    54  current name of the limited liability company, department of state iden-
    55  tification  number  for such limited liability company, the name, signa-
    56  ture and capacity of the  signer  of  the  statement,  name  and  street

        S. 2009--B                         32                         A. 3009--B
 
     1  address of the filer of the statement, and the email address, if any, of
     2  the filer of the statement.
     3    § 6. Subdivision (c) of section 301-A of the limited liability company
     4  law,  as added by chapter 448 of the laws of 1998, is amended to read as
     5  follows:
     6    (c) The filing by the department of state of a certificate  of  amend-
     7  ment or certificate of change or the filing of a statement under section
     8  three  hundred  one  of  this  article  providing for a new address by a
     9  designating limited liability company shall annul the suspension and its
    10  authority to do business in this state shall be restored  and  continued
    11  as if no suspension had occurred.
    12    §  7. Subdivision (c) of section 1101 of the limited liability company
    13  law is amended to read as follows:
    14    (c) For the statement of address of the post office address  to  which
    15  the  secretary  of  state  shall  mail a copy of any process against the
    16  limited liability company served upon him or  her  pursuant  to  section
    17  three  hundred  one  of  this chapter, nine dollars.  This fee shall not
    18  apply to statements submitted through the  department  of  taxation  and
    19  finance  pursuant  to  paragraph two of subdivision (e) of section three
    20  hundred one of this chapter.
    21    § 8. Subdivision (g) of section 121-1500 of the  partnership  law,  as
    22  amended  by  chapter  643  of  the  laws  of 1995, is amended to read as
    23  follows:
    24    (g) Each registered limited liability partnership shall, within  sixty
    25  days  prior to the fifth anniversary of the effective date of its regis-
    26  tration and every five years thereafter,  furnish  a  statement  to  the
    27  department of state setting forth: (i) the name of the registered limit-
    28  ed  liability  partnership,  (ii) the address of the principal office of
    29  the registered limited liability  partnership,  (iii)  the  post  office
    30  address  within  or  without  this state to which the secretary of state
    31  shall mail a copy of any process accepted against it served upon him  or
    32  her, which address shall supersede any previous address on file with the
    33  department  of  state  for this purpose, and (iv) a statement that it is
    34  eligible to register  as  a  registered  limited  liability  partnership
    35  pursuant  to  subdivision  (a)  of  this section. The statement shall be
    36  executed by one or more partners of  the  registered  limited  liability
    37  partnership.  The  statement  shall  be  accompanied  by a fee of twenty
    38  dollars if submitted directly to the department of  state.  The  commis-
    39  sioner  of  taxation and finance and the secretary of state may agree to
    40  allow registered limited liability partnerships to provide the statement
    41  specified in this subdivision on tax reports filed with  the  department
    42  of  taxation  and  finance in lieu of statements filed directly with the
    43  secretary of state and in a manner prescribed  by  the  commissioner  of
    44  taxation  and  finance. If this agreement is made, starting with taxable
    45  years beginning on or after January first, two  thousand  sixteen,  each
    46  registered  limited liability partnership required to file the statement
    47  specified in this subdivision that is subject to the filing fee  imposed
    48  by  paragraph three of subsection (c) of section six hundred fifty-eight
    49  of the tax law shall provide such statement annually on its  filing  fee
    50  payment  form  filed with the department of taxation and finance in lieu
    51  of filing a statement under this  subdivision  with  the  department  of
    52  state.  However,  each registered limited liability partnership required
    53  to file a statement under this section must continue to file a statement
    54  with the department of state as  required  by  this  section  until  the
    55  registered  limited liability partnership in fact has filed a filing fee
    56  payment form with the department of taxation and finance  that  includes

        S. 2009--B                         33                         A. 3009--B
 
     1  all  required  information.  After  that  time,  the  registered limited
     2  liability partnership shall continue to provide annually  the  statement
     3  specified  in this subdivision on its filing fee payment form in lieu of
     4  the statement required by this subdivision. The commissioner of taxation
     5  and  finance  shall  deliver  the  completed statement specified in this
     6  subdivision to the department of state for filing.   The  department  of
     7  taxation  and finance must, to the extent feasible, also include in such
     8  delivery the current name of the registered limited  liability  partner-
     9  ship,  department  of  state  identification  number for such registered
    10  limited liability partnership, the name, signature and capacity  of  the
    11  signer  of  the  statement,  name and street address of the filer of the
    12  statement, and the email address, if any, of the filer of the statement.
    13  If a registered limited liability partnership shall not timely file  the
    14  statement  required  by  this  subdivision, the department of state may,
    15  upon sixty days' notice mailed to the address of such registered limited
    16  liability partnership as shown in the last registration or statement  or
    17  certificate  of  amendment  filed  by  such registered limited liability
    18  partnership, make a proclamation  declaring  the  registration  of  such
    19  registered  limited liability partnership to be revoked pursuant to this
    20  subdivision. The department of state shall file the  original  proclama-
    21  tion  in its office and shall publish a copy thereof in the state regis-
    22  ter no later than three months following the date of such  proclamation.
    23  This  shall  not apply to registered limited liability partnerships that
    24  have filed a statement with the department of state through the  depart-
    25  ment  of taxation and finance. Upon the publication of such proclamation
    26  in the manner aforesaid, the registration  of  each  registered  limited
    27  liability partnership named in such proclamation shall be deemed revoked
    28  without  further  legal  proceedings.  Any  registered limited liability
    29  partnership whose registration was so revoked may file in the department
    30  of state a [certificate of consent certifying that either  a]  statement
    31  required  by this subdivision [has been filed or accompanies the certif-
    32  icate of consent and all fees imposed under this chapter on  the  regis-
    33  tered  limited liability partnership have been paid]. The filing of such
    34  [certificate of consent] statement shall have the  effect  of  annulling
    35  all  of  the  proceedings  theretofore  taken  for the revocation of the
    36  registration of such registered limited liability partnership under this
    37  subdivision and (1) the registered limited liability  partnership  shall
    38  thereupon  have such powers, rights, duties and obligations as it had on
    39  the date of the publication of the proclamation, with the same force and
    40  effect as if such proclamation had not been made or  published  and  (2)
    41  such publication shall not affect the applicability of the provisions of
    42  subdivision (b) of section twenty-six of this chapter to any debt, obli-
    43  gation or liability incurred, created or assumed from the date of publi-
    44  cation  of  the  proclamation  through  the  date  of  the filing of the
    45  [certificate of consent. The filing of a certificate of consent shall be
    46  accompanied by a fee of fifty dollars and if accompanied by a statement,
    47  the fee required by this subdivision] statement with the  department  of
    48  state.    If,  after  the  publication of such proclamation, it shall be
    49  determined by the department of state that the name  of  any  registered
    50  limited liability partnership was erroneously included in such proclama-
    51  tion,  the  department  of  state  shall  make  appropriate entry on its
    52  records, which entry shall have the  effect  of  annulling  all  of  the
    53  proceedings  theretofore taken for the revocation of the registration of
    54  such registered limited liability partnership under this subdivision and
    55  (A) such  registered  limited  liability  partnership  shall  have  such
    56  powers,  rights,  duties  and  obligations  as it had on the date of the

        S. 2009--B                         34                         A. 3009--B
 
     1  publication of the proclamation, with the same force and  effect  as  if
     2  such  proclamation  had not been made or published and (B) such publica-
     3  tion shall not affect the applicability of the provisions of subdivision
     4  (b)  of  section  twenty-six  of this chapter to any debt, obligation or
     5  liability incurred, created or assumed from the date of  publication  of
     6  the  proclamation  through  the  date  of the making of the entry on the
     7  records of the  department  of  state.  Whenever  a  registered  limited
     8  liability  partnership whose registration was revoked shall have filed a
     9  [certificate of consent] statement pursuant to this  subdivision  or  if
    10  the  name  of a registered limited liability partnership was erroneously
    11  included in a proclamation  and  such  proclamation  was  annulled,  the
    12  department  of  state shall publish a notice thereof in the state regis-
    13  ter.
    14    § 9. Paragraph (I) of subdivision (f) of section 121-1502 of the part-
    15  nership law, as amended by chapter 643 of the laws of 1995 and as desig-
    16  nated by chapter 767 of the laws of 2005, is amended to read as follows:
    17    (I) Each New York registered  foreign  limited  liability  partnership
    18  shall, within sixty days prior to the fifth anniversary of the effective
    19  date  of its notice and every five years thereafter, furnish a statement
    20  to the department of state setting forth:
    21    (i) the name under which  the  New  York  registered  foreign  limited
    22  liability  partnership is carrying on or conducting or transacting busi-
    23  ness or activities in this state, (ii)  the  address  of  the  principal
    24  office of the New York registered foreign limited liability partnership,
    25  (iii)  the post office address within or without this state to which the
    26  secretary of state shall mail a copy of any process accepted against  it
    27  served  upon  him  or  her,  which  address shall supersede any previous
    28  address on file with the department of state for this purpose, and  (iv)
    29  a  statement  that  it  is  a foreign limited liability partnership. The
    30  statement shall be executed by one or more  partners  of  the  New  York
    31  registered foreign limited liability partnership. The statement shall be
    32  accompanied  by  a  fee  of  fifty  dollars if submitted directly to the
    33  department of state. The commissioner of taxation and  finance  and  the
    34  secretary of state may agree to allow New York registered foreign limit-
    35  ed  liability  partnerships  to  provide the statement specified in this
    36  paragraph on tax reports filed  with  the  department  of  taxation  and
    37  finance in lieu of statements filed directly with the secretary of state
    38  and  in a manner prescribed by the commissioner of taxation and finance.
    39  If this agreement is made, starting with taxable years beginning  on  or
    40  after  January  first,  two  thousand  sixteen, each New York registered
    41  foreign limited liability partnership required  to  file  the  statement
    42  specified in this paragraph that is subject to the filing fee imposed by
    43  paragraph  three of subsection (c) of section six hundred fifty-eight of
    44  the tax law shall provide such statement  annually  on  its  filing  fee
    45  payment  form  filed with the department of taxation and finance in lieu
    46  of filing a statement under this paragraph directly with the  department
    47  of  state.  However,  each New York registered foreign limited liability
    48  partnership required to file a statement under this section must contin-
    49  ue to file a statement with the department of state as required by  this
    50  section until the New York registered foreign limited liability partner-
    51  ship  in fact has filed a filing fee payment form with the department of
    52  taxation and finance that includes all required information. After  that
    53  time,  the  New  York  registered  foreign limited liability partnership
    54  shall continue to provide annually the statement specified in this para-
    55  graph on its filing fee payment form in lieu  of  filing  the  statement
    56  required  by  this  paragraph directly with the department of state. The

        S. 2009--B                         35                         A. 3009--B
 
     1  commissioner of taxation and finance shall deliver the completed  state-
     2  ment  specified in this paragraph to the department of state for filing.
     3  The department of taxation and finance must,  to  the  extent  feasible,
     4  also  include  in  such delivery the current name of the New York regis-
     5  tered foreign limited liability partnership, department of  state  iden-
     6  tification number for such New York registered foreign limited liability
     7  partnership,  the  name,  signature  and  capacity  of the signer of the
     8  statement, name and street address of the filer of  the  statement,  and
     9  the  email address, if any, of the filer of the statement. If a New York
    10  registered foreign limited liability partnership shall not  timely  file
    11  the statement required by this subdivision, the department of state may,
    12  upon  sixty  days'  notice mailed to the address of such New York regis-
    13  tered foreign limited liability partnership as shown in the last  notice
    14  or  statement  or certificate of amendment filed by such New York regis-
    15  tered foreign limited liability partnership, make a proclamation declar-
    16  ing the status of such New York  registered  foreign  limited  liability
    17  partnership  to be revoked pursuant to this subdivision.  This shall not
    18  apply to New York registered foreign limited liability partnerships that
    19  have filed a statement with the department of state through the  depart-
    20  ment  of  taxation  and  finance. The department of state shall file the
    21  original proclamation in its office and shall publish a copy thereof  in
    22  the state register no later than three months following the date of such
    23  proclamation.  Upon  the  publication of such proclamation in the manner
    24  aforesaid, the status  of  each  New  York  registered  foreign  limited
    25  liability partnership named in such proclamation shall be deemed revoked
    26  without  further  legal  proceedings.  Any  New  York registered foreign
    27  limited liability partnership whose status was so revoked  may  file  in
    28  the department of state a [certificate of consent certifying that either
    29  a] statement required by this subdivision [has been filed or accompanies
    30  the  certificate  of  consent and all fees imposed under this chapter on
    31  the New York registered foreign limited liability partnership have  been
    32  paid].  The filing of such [certificate of consent] statement shall have
    33  the effect of annulling all of the proceedings theretofore taken for the
    34  revocation of the status of such New  York  registered  foreign  limited
    35  liability partnership under this subdivision and (1) the New York regis-
    36  tered  foreign  limited  liability partnership shall thereupon have such
    37  powers, rights, duties and obligations as it had  on  the  date  of  the
    38  publication  of  the  proclamation, with the same force and effect as if
    39  such proclamation had not been made or published and (2)  such  publica-
    40  tion  shall not affect the applicability of the laws of the jurisdiction
    41  governing the agreement under which such  New  York  registered  foreign
    42  limited liability partnership is operating (including laws governing the
    43  liability  of  partners)  to any debt, obligation or liability incurred,
    44  created or assumed from the date  of  publication  of  the  proclamation
    45  through  the  date  of  the  filing  of the [certificate of consent. The
    46  filing of a certificate of consent shall be  accompanied  by  a  fee  of
    47  fifty  dollars  and  if  accompanied by a statement, the fee required by
    48  this subdivision] statement with the department of state.  If, after the
    49  publication of such proclamation, it shall be determined by the  depart-
    50  ment  of  state that the name of any New York registered foreign limited
    51  liability partnership was erroneously included in such proclamation, the
    52  department of state shall make appropriate entry on its  records,  which
    53  entry shall have the effect of annulling all of the proceedings thereto-
    54  fore  taken for the revocation of the status of such New York registered
    55  foreign limited liability partnership under  this  subdivision  and  (1)
    56  such  New  York  registered  foreign limited liability partnership shall

        S. 2009--B                         36                         A. 3009--B
 
     1  have such powers, rights, duties and obligations as it had on  the  date
     2  of  the  publication of the proclamation, with the same force and effect
     3  as if such proclamation had not been made  or  published  and  (2)  such
     4  publication shall not affect the applicability of the laws of the juris-
     5  diction  governing  the  agreement  under which such New York registered
     6  foreign limited  liability  partnership  is  operating  (including  laws
     7  governing  the liability of partners) to any debt, obligation or liabil-
     8  ity incurred, created or assumed from the date  of  publication  of  the
     9  proclamation  through the date of the making of the entry on the records
    10  of the department of state.  Whenever  a  New  York  registered  foreign
    11  limited  liability partnership whose status was revoked shall have filed
    12  a [certificate of consent] statement pursuant to this subdivision or  if
    13  the  name of a New York registered foreign limited liability partnership
    14  was erroneously included in a proclamation  and  such  proclamation  was
    15  annulled,  the department of state shall publish a notice thereof in the
    16  state register.
    17    § 10. Subdivision (d) of section 121-1506 of the partnership  law,  as
    18  amended  by  chapter  172  of  the  laws  of 1999, is amended to read as
    19  follows:
    20    (d) The filing by the department of state of a certificate  of  amend-
    21  ment  or  the  filing  of  a  statement providing for a new address by a
    22  designating limited liability partnership shall annul the suspension and
    23  its authority to do business in this state shall be restored and contin-
    24  ued as if no suspension had occurred.
    25    § 11. Section 192 of the tax law is amended by adding a  new  subdivi-
    26  sion 5 to read as follows:
    27    5.  Notwithstanding  the provisions of section two hundred two of this
    28  article,  the  commissioner  shall  provide  the  statements  and  other
    29  required information requested on tax reports under section four hundred
    30  eight  of  the  business  corporation  law to the secretary of state for
    31  filing. Such provision may also include a copy or image of that  portion
    32  of  the report solely pertinent to such information to the extent feasi-
    33  ble. The commissioner may also provide information on noncompliance.
    34    § 12. Section 211 of the tax law is amended by adding a  new  subdivi-
    35  sion 15 to read as follows:
    36    15.  Notwithstanding  the  provisions  of  subdivision  eight  of this
    37  section,  the  commissioner  shall  provide  the  statements  and  other
    38  required information requested on tax reports under section four hundred
    39  eight  of  the  business  corporation  law to the secretary of state for
    40  filing. Such provision may also include a copy or image of that  portion
    41  of  the report solely pertinent to such information to the extent feasi-
    42  ble. The commissioner any also provide information on noncompliance.
    43    § 13. Paragraph 3 of subsection (c) of section 658 of the tax  law  is
    44  amended by adding a new subparagraph (E) to read as follows:
    45    (E)  Notwithstanding  the  provisions of subsection (e) of section six
    46  hundred ninety-seven of this article, the commissioner shall provide the
    47  statements and other required information included  on  the  filing  fee
    48  payment  form  under  section three hundred one of the limited liability
    49  company law, subdivision (g) of section 121-1500 of the partnership law,
    50  and subdivision (f) of section 121-1502 of the partnership law,  to  the
    51  secretary  of  state for filing.  Such provision may also include a copy
    52  or image of that portion of the report solely pertinent to such informa-
    53  tion to the extent feasible. The commissioner may also provide  informa-
    54  tion on noncompliance.
    55    §  14.  Section  1085  of  the  tax  law  is  amended  by adding a new
    56  subsection (v) to read as follows:

        S. 2009--B                         37                         A. 3009--B
 
     1    (v) 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  section four hundred eight of the business corporation  law  is  due  to
     5  reasonable  cause  and  not to willful neglect, there shall, upon notice
     6  and demand by the commissioner and in the same manner as tax, be paid by
     7  the taxpayer failing to  supply  complete  and  correct  information,  a
     8  penalty of two hundred fifty dollars per corporation required to provide
     9  such information.
    10    § 15. Section 685 of the tax law is amended by adding a new subsection
    11  (dd) to read as follows:
    12    (dd)  Failure  to  supply  all  the information required or to provide
    13  correct information in secretary of state statements. Unless it is shown
    14  that such failure to provide the statement and information  required  by
    15  subdivision  (e)  of  section three hundred one of the limited liability
    16  company law, subdivision (g) of section 121-1500 of the partnership law,
    17  and subdivision (f) of section 121-1502 of the partnership law is due to
    18  reasonable cause and not to willful neglect, there  shall,  upon  notice
    19  and demand by the commissioner and in the same manner as tax, be paid by
    20  the entity failing to supply complete and correct information, a penalty
    21  of  two  hundred and fifty dollars per limited liability company, regis-
    22  tered limited liability  partnership  or  New  York  registered  foreign
    23  limited  liability  partnership  required to provide such information on
    24  its filing fee payment form.
    25    § 16. This act shall take effect immediately.
 
    26                                   PART T
 
    27    Section 1. Paragraph (a) of subdivision 5 of section 208  of  the  tax
    28  law,  as  amended  by  section  4 of part A of chapter 59 of the laws of
    29  2014, is amended to read as follows:
    30    (a) The term "investment capital" means investments in stocks that (i)
    31  satisfy the definition of a capital asset  under  section  1221  of  the
    32  internal  revenue code at all times the taxpayer owned such stock during
    33  the taxable year, (ii) are held by the taxpayer for investment for  more
    34  than  [six  consecutive months but are not] one year, (iii) the disposi-
    35  tions of which are, or would be, treated by the taxpayer  as  generating
    36  long-term  capital gains or losses under the internal revenue code, (iv)
    37  for stocks acquired on or after January first, two thousand fifteen,  at
    38  any  time  after  the  close of the day in which they are acquired, have
    39  never been held for sale to customers in the  regular  course  of  busi-
    40  ness[,  or,  if the taxpayer makes the election provided for in subpara-
    41  graph one of paragraph (a) of subdivision five of  section  two  hundred
    42  ten-A  of  this  article,  are  not  qualified  financial instruments as
    43  described in subdivision five of section two hundred ten-A of this arti-
    44  cle], and (v) before the close  of  the  day  on  which  the  stock  was
    45  acquired, are clearly identified in the taxpayer's records as stock held
    46  for  investment  in the same manner as required under section 1236(a)(1)
    47  of the internal revenue code for the stock of a dealer in securities  to
    48  be eligible for capital gain treatment (whether or not the taxpayer is a
    49  dealer  of  securities subject to section 1236), provided, however, that
    50  for stock acquired prior to October first, two thousand fifteen that was
    51  not subject to section 1236(a) of the internal revenue code, such  iden-
    52  tification  in  the  taxpayer's records must occur before October first,
    53  two thousand fifteen.   Stock in a  corporation  that  is  conducting  a
    54  unitary  business  with  the  taxpayer,  stock  in a corporation that is

        S. 2009--B                         38                         A. 3009--B
 
     1  included in a combined report with the taxpayer pursuant to the commonly
     2  owned group election in subdivision three of section two  hundred  ten-C
     3  of  this  article, and stock issued by the taxpayer shall not constitute
     4  investment  capital.  For  purposes of this subdivision, if the taxpayer
     5  owns or controls, directly or indirectly, less than  twenty  percent  of
     6  the voting power of the stock of a corporation, that corporation will be
     7  presumed  to be conducting a business that is not unitary with the busi-
     8  ness of the taxpayer.
     9    § 2. Paragraph (d) of subdivision 5 of section 208 of the tax law,  as
    10  added  by  section  4  of  part  A of chapter 59 of the laws of 2014, is
    11  amended to read as follows:
    12    (d) If a taxpayer acquires stock that is a capital asset under section
    13  1221 of the internal revenue code during the [second half of its]  taxa-
    14  ble  year  and  owns  that stock on the last day of the taxable year, it
    15  will be presumed, solely for purposes of determining whether that  stock
    16  should  be  classified  as investment capital after it is acquired, that
    17  the taxpayer held that stock  for  more  than  [six  consecutive  months
    18  during  the taxable] one year. However, if the taxpayer does not in fact
    19  [hold] own that stock [for more than six  consecutive  months,]  at  the
    20  time it actually files its original report for the taxable year in which
    21  it  acquired  the  stock, then the presumption in the preceding sentence
    22  shall not apply and the actual period of time during which the  taxpayer
    23  owned  the  stock shall be used to determine whether the stock should be
    24  classified as investment capital after it is acquired. If  the  taxpayer
    25  relies  on  the  presumption in the first sentence of this paragraph but
    26  does not own the stock  for  more  than  one  year,  the  taxpayer  must
    27  increase  its total business capital in the immediately succeeding taxa-
    28  ble year by the amount included in investment capital  for  that  stock,
    29  net  of  any liabilities attributable to that stock computed as provided
    30  in paragraph (b) of this subdivision  and  must  increase  its  business
    31  income  in  the  immediately  succeeding  taxable  year by the amount of
    32  income and net gains (but not less than zero) from that  stock  included
    33  in investment income, less any interest deductions directly or indirect-
    34  ly  attributable  to  that stock, as provided in subdivision six of this
    35  section.
    36    § 3. Paragraph (e) of subdivision 5 of section 208 of the tax law,  as
    37  added  by  section  4  of  part  A of chapter 59 of the laws of 2014, is
    38  amended to read as follows:
    39    (e) When income or gain from  a  debt  obligation  or  other  security
    40  cannot  be  apportioned  to  the  state  using  the [business allocation
    41  percentage] apportionment factor determined under  section  two  hundred
    42  ten-A  of this article as a result of United States constitutional prin-
    43  ciples, the debt obligation  or  other  security  will  be  included  in
    44  investment capital.
    45    §  4.  Paragraph (f) of subdivision 5 of section 208 of the tax law is
    46  REPEALED.
    47    § 5. Paragraphs (a) and (b) of subdivision 6 of section 208 of the tax
    48  law, paragraph (a) as amended and paragraph (b) as added by section 4 of
    49  part A of chapter 59 of the  laws  of  2014,  are  amended  to  read  as
    50  follows:
    51    (a)  (i)  The term "investment income" means income, including capital
    52  gains in excess of capital  losses,  from  investment  capital,  to  the
    53  extent  included  in  computing  entire  net  income, less, [(i)] in the
    54  discretion of the commissioner, any  interest  deductions  allowable  in
    55  computing  entire  net income which are directly or indirectly attribut-
    56  able to investment capital or investment income, [and (ii)  the  taxpay-

        S. 2009--B                         39                         A. 3009--B

     1  er's  loss, deduction and/or expense attributable to any transaction, or
     2  series of transactions, entered into to manage the risk of price changes
     3  or currency fluctuations with respect to any item of investment  capital
     4  that  is held or to be held by the taxpayer, or the aggregate investment
     5  capital that is held or to be held by the taxpayer, if all of the  risk,
     6  or  all  but a de minimis amount of the risk, is with respect to invest-
     7  ment capital,] provided, however,  that  in  no  case  shall  investment
     8  income  exceed  entire  net  income.  (ii)  If  the  amount  of interest
     9  deductions subtracted under subparagraph (i) [or subparagraph  (ii)]  of
    10  this paragraph [or under both of those subparagraphs] exceeds investment
    11  income,  the  excess of such amount over investment income must be added
    12  back to entire net income. (iii) If  the  taxpayer's  investment  income
    13  determined  without  regard  to the interest deductions subtracted under
    14  subparagraph (i) of this paragraph comprises more than eight percent  of
    15  the  taxpayer's  entire net income, investment income determined without
    16  regard to such interest deductions cannot exceed eight  percent  of  the
    17  taxpayer's entire net income.
    18    (b)  In lieu of subtracting from investment income the amount of those
    19  interest deductions, the taxpayer may [elect] make a revocable  election
    20  to  reduce  its  total  investment income, determined after applying the
    21  limitation in subparagraph (iii) of paragraph (a) of  this  subdivision,
    22  by forty percent. If the taxpayer makes this election, the taxpayer must
    23  also make the elections provided for in paragraphs (b) and (c) of subdi-
    24  vision  six-a of this section. If the taxpayer subsequently revokes this
    25  election, the taxpayer must revoke the elections provided for  in  para-
    26  graphs  (b)  and  (c)  of  subdivision six-a of this section. A taxpayer
    27  [which] that does not make this election because it  has  no  investment
    28  capital will not be precluded from making those other elections.
    29    § 5-a. Paragraphs (b) and (c) of subdivision 6-a of section 208 of the
    30  tax  law,  as  added by section 4 of chapter 59 of the laws of 2014, are
    31  amended to read as follows:
    32    (b) "Exempt CFC income" means the income required to  be  included  in
    33  the  taxpayer's  federal  gross  income  pursuant  to  subsection (a) of
    34  section 951 of the internal revenue code, received  from  a  corporation
    35  that  is  conducting  a  unitary  business  with the taxpayer but is not
    36  included in a combined report with the taxpayer, less, in the discretion
    37  of the commissioner, any  interest  deductions  directly  or  indirectly
    38  attributable  to that income. In lieu of subtracting from its exempt CFC
    39  income the amount of those interest deductions, the taxpayer may [elect]
    40  make a revocable election to reduce its total exempt CFC income by forty
    41  percent. If the taxpayer makes this election,  the  taxpayer  must  also
    42  make  the  elections provided for in paragraph (b) of subdivision six of
    43  this section and paragraph (c) of  this  subdivision.  If  the  taxpayer
    44  subsequently  revokes  this  election,  the  taxpayer  must  revoke  the
    45  elections provided for in paragraph  (b)  of  subdivision  six  of  this
    46  section and paragraph (c) of this subdivision. A taxpayer which does not
    47  make  this  election  because  it  has  no exempt CFC income will not be
    48  precluded from making those other elections.
    49    (c) "Exempt unitary corporation dividends" means those dividends  from
    50  a  corporation  that  is conducting a unitary business with the taxpayer
    51  but is not included in a combined report with the taxpayer, less, in the
    52  discretion of the commissioner,  any  interest  deductions  directly  or
    53  indirectly  attributable  to  such  income.  Other  than dividend income
    54  received from corporations  that  are  taxable  under  a  franchise  tax
    55  imposed by article nine or article thirty-three of this chapter or would
    56  be  taxable  under  a  franchise  tax imposed by article nine or article

        S. 2009--B                         40                         A. 3009--B
 
     1  thirty-three of this chapter if subject to tax, in lieu  of  subtracting
     2  from  this  dividend  income those interest deductions, the taxpayer may
     3  [elect] make a revocable election to reduce the  total  amount  of  this
     4  dividend  income  by forty percent. If the taxpayer makes this election,
     5  the taxpayer must also make the elections provided for in paragraph  (b)
     6  of  subdivision  six  of this section and paragraph (b) of this subdivi-
     7  sion. If the taxpayer subsequently revokes this election,  the  taxpayer
     8  must also revoke the elections provided for in paragraph (b) of subdivi-
     9  sion  six  of  this  section  and  paragraph  (b) of this subdivision. A
    10  taxpayer which does not make this election because it has  not  received
    11  any  exempt  unitary  corporation  dividends or is precluded from making
    12  this election for dividends received from corporations taxable  under  a
    13  franchise  tax  imposed  by article nine or article thirty-three of this
    14  chapter or would be taxable under a franchise  tax  imposed  by  article
    15  nine  or article thirty-three of this chapter if subject to tax will not
    16  be precluded from making those other elections.
    17    § 5-b. Clause (i) of subparagraph 5 of paragraph (a) of subdivision  9
    18  of  section  208  of  the  tax law, as amended by section 4 of part A of
    19  chapter 59 of the laws of 2014, is amended to read as follows:
    20    (i) any refund or credit of a tax imposed under this article,  article
    21  twenty-three,  or  former  article thirty-two of this chapter, for which
    22  tax no exclusion or deduction was allowed in determining the  taxpayer's
    23  entire  net  income  under this article, article twenty-three, or former
    24  article thirty-two of this chapter for any prior year, or (ii) [a refund
    25  or credit of general corporation tax allowed by  subdivision  eleven  of
    26  section  11-604  of  the administrative code of the city of New York, or
    27  (iii)] any refund or credit of a tax imposed under sections one  hundred
    28  eighty-three, one hundred eighty-three-a, one hundred eighty-four or one
    29  hundred eighty-four-a of this chapter[, and];
    30    §  6.  Subclause (ii) of clause (B) of subparagraph 1 of paragraph (r)
    31  of subdivision 9 of section 208 of the tax law, as added by section 4 of
    32  part A of chapter 59 of the laws of 2014, is amended to read as follows:
    33    (ii) Measurement of assets. For purposes of this paragraph: (I)  Total
    34  assets  are those assets that are properly reflected on a balance sheet,
    35  computed in the same manner as is required by the banking  regulator  of
    36  the taxpayers included in the combined return.
    37    (II)  Assets  will only be included if the income or expenses of which
    38  are properly reflected (or would have been  properly  reflected  if  not
    39  fully  depreciated  or expensed, or depreciated or expensed to a nominal
    40  amount) in the computation of the combined group's entire net income for
    41  the taxable year. Assets will not include deferred tax assets and intan-
    42  gible assets identified as "goodwill".
    43    (III) Tangible real and personal property, such  as  buildings,  land,
    44  machinery,  and equipment shall be valued at cost. Leased assets will be
    45  valued at the annual lease payment multiplied by eight. Intangible prop-
    46  erty, such as loans and investments,  shall  be  valued  at  book  value
    47  exclusive of reserves.
    48    (IV)  Intercorporate  stockholdings  and  bills,  notes  and  accounts
    49  receivable, and other intercorporate  indebtedness  between  the  corpo-
    50  rations included in the combined report shall be eliminated.
    51    (V) Average assets are computed using the assets measured on the first
    52  day  of the taxable year, and on the last day of each subsequent quarter
    53  of the taxable year or month or day during the taxable year.
    54    § 7. Clause (B) of subparagraph 2 and clause (B) of  subparagraph  2-a
    55  of  paragraph  (s)  of  subdivision  9 of section 208 of the tax law, as

        S. 2009--B                         41                         A. 3009--B
 
     1  added by section 4 of part A of chapter 59 of  the  laws  of  2014,  are
     2  amended to read as follows:
     3    (B)  The  average  value  during the taxable year of the assets of the
     4  taxpayer, or, if the taxpayer is included  in  a  combined  report,  the
     5  assets of the combined reporting group of the taxpayer under section two
     6  hundred ten-C of this article, must not exceed eight billion dollars.
     7    (B)  The  average  value  during the taxable year of the assets of the
     8  taxpayer, or, if the taxpayer is included  in  a  combined  report,  the
     9  assets of the combined reporting group of the taxpayer under section two
    10  hundred ten-C of this article, must not exceed eight billion dollars.
    11    §  8. Paragraph (d) of subdivision 1 of section 209 of the tax law, as
    12  added by section 5 of part A of chapter 59  of  the  laws  of  2014,  is
    13  amended to read as follows:
    14    (d)(i)  A  corporation with less than one million dollars but at least
    15  ten thousand dollars of receipts within this state  in  a  taxable  year
    16  that  is  part  of  a  [combined reporting] unitary group that meets the
    17  ownership test under section two hundred ten-C of this article is deriv-
    18  ing receipts from activity in this state if  the  receipts  within  this
    19  state of the members of the [combined reporting] unitary group that have
    20  at  least  ten  thousand  dollars  of  receipts within this state in the
    21  aggregate meet the threshold set forth in paragraph (b) of this subdivi-
    22  sion.
    23    (ii) A corporation that does not meet any of the thresholds set  forth
    24  in  paragraph (c) of this subdivision but has at least ten customers, or
    25  locations, or customers and locations, as described in paragraph (c)  of
    26  this  subdivision,  and  is part of a [combined reporting] unitary group
    27  that meets the ownership test under section two hundred  ten-C  of  this
    28  article  [that] is doing business in this state if the number of custom-
    29  ers, locations, or customers and locations, within  this  state  of  the
    30  members of the [combined reporting] unitary group that have at least ten
    31  customers,  locations,  or customers and locations, within this state in
    32  the aggregate meets any of the thresholds set forth in paragraph (c)  of
    33  this subdivision.
    34    (iii)  For  purposes  of  this paragraph, any corporation described in
    35  paragraph (c) of subdivision two of section two hundred  ten-C  of  this
    36  article shall not be considered.
    37    §  8-a.  Subdivision  2-a of section 209 of the tax law, as amended by
    38  section 5 of part A of chapter 59 of the laws of  2014,  is  amended  to
    39  read as follows:
    40    2-a.  An  alien  corporation shall not be deemed to be doing business,
    41  employing capital, owning  or  leasing  property,  [or]  maintaining  an
    42  office  in this state, or deriving receipts from activity in this state,
    43  for the purposes of this article, if its activities in  this  state  are
    44  limited  solely to (a) investing or trading in stocks and securities for
    45  its own account within the meaning of clause (ii) of subparagraph (A) of
    46  paragraph (2) of subsection (b) of section eight hundred  sixty-four  of
    47  the internal revenue code or (b) investing or trading in commodities for
    48  its own account within the meaning of clause (ii) of subparagraph (B) of
    49  paragraph  (2)  of subsection (b) of section eight hundred sixty-four of
    50  the internal revenue code or (c) any combination of activities described
    51  in paragraphs (a) and (b) of this subdivision. An alien corporation that
    52  under any provision of the internal revenue code is  not  treated  as  a
    53  "domestic  corporation"  as  defined  in  section  seven  thousand seven
    54  hundred one of such code and has no effectively connected income for the
    55  taxable year pursuant to clause (iv) of the opening paragraph of  subdi-
    56  vision  nine  of  section two hundred eight of this article shall not be

        S. 2009--B                         42                         A. 3009--B
 
     1  subject to tax under this article for that taxable year. For purposes of
     2  this article, an alien corporation is a corporation organized under  the
     3  laws  of a country, or any political subdivision thereof, other than the
     4  United States, or organized under the laws of a possession, territory or
     5  commonwealth of the United States.
     6    §  9.  Paragraph (d) of subdivision 1 of section 209-B of the tax law,
     7  as added by section 7 of part A of chapter 59 of the laws  of  2014,  is
     8  amended to read as follows:
     9    (d)(i)  A  corporation with less than one million dollars but at least
    10  ten thousand dollars of receipts within the metropolitan commuter trans-
    11  portation district in a taxable year that is part of a [combined report-
    12  ing] unitary group that meets  the  ownership  test  under  section  two
    13  hundred  ten-C of this article is deriving receipts from activity in the
    14  metropolitan commuter transportation district if the receipts within the
    15  metropolitan commuter transportation district  of  the  members  of  the
    16  [combined  reporting]  unitary  group  that  have  at least ten thousand
    17  dollars of receipts  within  the  metropolitan  commuter  transportation
    18  district  in the aggregate meet the threshold set forth in paragraph (b)
    19  of this subdivision.
    20    (ii) A corporation that does not meet any of the thresholds set  forth
    21  in  paragraph (c) of this subdivision but has at least ten customers, or
    22  locations, or customers and locations, as described  in  paragraph  (c),
    23  and  is  part  of  a  [combined  reporting] unitary group that meets the
    24  ownership test under section two hundred ten-C of this article [that] is
    25  doing business in the metropolitan commuter transportation  district  if
    26  the  number  of customers, locations, or customers and locations, within
    27  the metropolitan commuter transportation district of the members of  the
    28  [combined  reporting]  unitary  group  that have at least ten customers,
    29  locations, or customers and locations, within the metropolitan  commuter
    30  transportation district in the aggregate meets any of the thresholds set
    31  forth in paragraph (c) of this subdivision.
    32    (iii)  For  purposes  of  this paragraph, any corporation described in
    33  paragraph (c) of subdivision two of section two hundred  ten-C  of  this
    34  article shall not be considered.
    35    §  10.  The  opening  paragraph  of  paragraph (a) of subdivision 1 of
    36  section 210 of the tax law, as amended by section 12 of part A of  chap-
    37  ter 59 of the laws of 2014, is amended to read as follows:
    38    For  taxable  years  beginning  before  January  first,  two  thousand
    39  sixteen, the amount prescribed by this paragraph shall  be  computed  at
    40  the  rate  of  seven  and  one-tenth  percent of the taxpayer's business
    41  income base. For taxable years beginning on or after January first,  two
    42  thousand  sixteen,  the amount prescribed by this paragraph shall be six
    43  and one-half percent of the taxpayer's business income base. The taxpay-
    44  er's business income base shall mean the portion of the taxpayer's busi-
    45  ness income [allocated] apportioned  within  the  state  as  hereinafter
    46  provided.  However, in the case of a small business taxpayer, as defined
    47  in paragraph (f) of this subdivision,  the  amount  prescribed  by  this
    48  paragraph  shall be computed pursuant to subparagraph (iv) of this para-
    49  graph and in the case of a manufacturer, as defined in subparagraph (vi)
    50  of this paragraph, the amount prescribed  by  this  paragraph  shall  be
    51  computed  pursuant  to  subparagraph (vi) of this paragraph, and, in the
    52  case of a qualified emerging technology company, as defined in  subpara-
    53  graph  (vii)  of this paragraph, the amount prescribed by this paragraph
    54  shall be computed pursuant to subparagraph (vii) of this paragraph.

        S. 2009--B                         43                         A. 3009--B
 
     1    § 11. Subparagraph (vi) of paragraph (a) of subdivision 1  of  section
     2  210  of the tax law, as amended by section 12 of part A of chapter 59 of
     3  the laws of 2014, is amended to read as follows:
     4    (vi)  for taxable years beginning on or after January first, two thou-
     5  sand fourteen, the amount prescribed by this paragraph  for  a  taxpayer
     6  which  is  a  qualified  New York manufacturer, shall be computed at the
     7  rate of zero percent of the taxpayer's business income  base.  The  term
     8  "manufacturer"  shall  mean  a taxpayer which during the taxable year is
     9  principally engaged in the production of goods by  manufacturing,  proc-
    10  essing,  assembling, refining, mining, extracting, farming, agriculture,
    11  horticulture, floriculture, viticulture or commercial fishing.  However,
    12  the  generation  and  distribution  of  electricity, the distribution of
    13  natural gas, and the production of steam associated with the  generation
    14  of  electricity  shall  not  be qualifying activities for a manufacturer
    15  under this subparagraph. Moreover, in the case of a combined report, the
    16  combined group shall be considered a "manufacturer" for purposes of this
    17  subparagraph only if the combined group during the taxable year is prin-
    18  cipally engaged in the activities set forth in this  paragraph,  or  any
    19  combination  thereof. A taxpayer or, in the case of a combined report, a
    20  combined group shall be "principally engaged"  in  activities  described
    21  above  if, during the taxable year, more than fifty percent of the gross
    22  receipts of the taxpayer or combined group,  respectively,  are  derived
    23  from  receipts  from  the  sale of goods produced by such activities. In
    24  computing a combined group's  gross  receipts,  intercorporate  receipts
    25  shall  be  eliminated. A "qualified New York manufacturer" is a manufac-
    26  turer which has property in New York which is described in clause (A) of
    27  subparagraph (i) of paragraph (b) of  subdivision  one  of  section  two
    28  hundred  ten-B of this article and either (I) the adjusted basis of such
    29  property for federal income tax purposes at the  close  of  the  taxable
    30  year  is  at  least  one  million  dollars  or  (II) all of its real and
    31  personal property is located in New York. A taxpayer or, in the case  of
    32  a  combined  report, a combined group, that does not satisfy the princi-
    33  pally engaged test may be a  qualified  New  York  manufacturer  if  the
    34  taxpayer  or the combined group employs during the taxable year at least
    35  two thousand five hundred employees in manufacturing in New York and the
    36  taxpayer or the combined group has property in the state used  in  manu-
    37  facturing,  the  adjusted basis of which for federal income tax purposes
    38  at the close of the  taxable  year  is  at  least  one  hundred  million
    39  dollars.
    40    §  12. Subparagraph (vii) of paragraph (a) of subdivision 1 of section
    41  210 of the tax law, as amended by section 12 of part A of chapter 59  of
    42  the laws of 2014, is amended to read as follows:
    43    (vii) For a taxpayer that is defined as a qualified emerging technolo-
    44  gy  company under paragraph (c) of subdivision one of section thirty-one
    45  hundred two-e of the  public  authorities  law  regardless  of  the  ten
    46  million  dollar  limitation  expressed in subparagraph one of such para-
    47  graph (c) the amount prescribed by this paragraph shall be  computed  at
    48  the  rate  [at  which  the  tax  is computed in effect for taxable years
    49  beginning on or after January first, two thousand  thirteen  and  before
    50  January  first,  two thousand fourteen for such qualified emerging tech-
    51  nology companies shall be reduced by nine  and  two-tenths  percent  for
    52  taxable  years  commencing on or after January first, two thousand four-
    53  teen and before January first, two thousand fifteen, twelve  and  three-
    54  tenths  percent  for taxable years commencing on or after January first,
    55  two thousand fifteen and before January  first,  two  thousand  sixteen,
    56  fifteen and four-tenths percent for taxable years commencing on or after

        S. 2009--B                         44                         A. 3009--B

     1  January  first, two thousand sixteen and before January first, two thou-
     2  sand eighteen, and twenty-five percent for taxable years beginning on or
     3  after January first, two thousand eighteen] of 5.7 percent  for  taxable
     4  years  beginning  on  or  after  January first, two thousand fifteen and
     5  before January first, two thousand  sixteen,  5.5  percent  for  taxable
     6  years  beginning  on  or  after  January  first two thousand sixteen and
     7  before January first, two thousand eighteen, and 4.875 percent for taxa-
     8  ble years beginning on or after January first, two thousand eighteen.
     9    § 13. Item (IV) of subclause 2 of clause (B) of subparagraph (viii) of
    10  paragraph (a) of subdivision 1 of section 210 of the tax law,  as  added
    11  by section 12 of part A of chapter 59 of the laws of 2014, is amended to
    12  read as follows:
    13    (IV)  In  lieu  of  the  subtraction  described  in item (III) of this
    14  subclause, if the taxpayer so elects, the taxpayer's prior net operating
    15  loss conversion subtraction for the tax  years  beginning  on  or  after
    16  January  first, two thousand fifteen and before January first, two thou-
    17  sand seventeen shall equal in each year, not more than one-half  of  its
    18  net  operating  loss  conversion  subtraction  pool  until  the  pool is
    19  exhausted. If the pool is not exhausted at the end of such time  period,
    20  the  remainder  of the pool shall be forfeited.  The taxpayer shall make
    21  such revocable election on its first return for the tax  year  beginning
    22  on  or  after  January  first,  two  thousand fifteen and before January
    23  first, two thousand sixteen by the due date for such return  (determined
    24  with regard to extensions).
    25    §  14.  Subclause  4 of clause (B) of subparagraph (viii) of paragraph
    26  (a) of subdivision 1 of section 210 of the tax law, as added by  section
    27  12  of  part  A of chapter 59 of the laws of 2014, is amended to read as
    28  follows:
    29    (4) The prior net operating loss conversion subtraction may be used to
    30  reduce the taxpayer's tax on [allocated] the apportioned business income
    31  base to the higher of the tax on the capital base under paragraph (b) of
    32  this subdivision or the fixed dollar minimum under paragraph (d) of this
    33  subdivision. [Any] Unless the taxpayer has made  the  election  provided
    34  for  in  item (IV) of subclause two of this clause, any amount of unused
    35  subtraction shall be carried forward to subsequent  tax  year  or  years
    36  until  [tax] the prior net operating loss conversion subtraction pool is
    37  exhausted, but for no longer than twenty taxable years, or  the  taxable
    38  year  beginning  on or after January first, two thousand thirty-five but
    39  before January first, two thousand thirty-six,  whichever  comes  first.
    40  Such  amount carried forward shall not be subject to the one-tenth limi-
    41  tation for the subsequent tax year or years. However,  if  the  taxpayer
    42  elects  to  compute  its prior net operating loss conversion subtraction
    43  pursuant to item (IV) of subclause two  of  this  clause,  the  taxpayer
    44  shall  not  carry  forward any unused amount of such subtraction [beyond
    45  its] to any tax year beginning on or after [January first, two  thousand
    46  sixteen and before] January first, two thousand seventeen.
    47    §  15.  The opening paragraph of subparagraph (ix) of paragraph (a) of
    48  subdivision 1 of section 210 of the tax law, as added by section  12  of
    49  part A of chapter 59 of the laws of 2014, is amended to read as follows:
    50    In  computing the business income base, a net operating loss deduction
    51  shall be allowed. A net operating loss deduction is the  amount  of  net
    52  operating loss or losses from one or more taxable years that are carried
    53  forward  or  carried  back to a particular [income] taxable year.  A net
    54  operating loss is the amount of a business loss incurred in a particular
    55  tax year multiplied by the apportionment factor for that year as  deter-
    56  mined  under  section two hundred ten-A of this article. The maximum net

        S. 2009--B                         45                         A. 3009--B
 
     1  operating loss deduction that is allowed in a taxable year is the amount
     2  that reduces the taxpayer's tax on [allocated] the apportioned  business
     3  income  base  to  the higher of the tax on the capital base or the fixed
     4  dollar  minimum.    Such deduction and loss are determined in accordance
     5  with the following:
     6    § 16. Clauses 4 and 6 of subparagraph (ix) of paragraph (a) of  subdi-
     7  vision 1 or section 210 of the tax law, as added by section 12 of part A
     8  of chapter 59 of the laws of 2014, are amended to read as follows:
     9    (4) [A net operating loss may be carried forward to each of the twenty
    10  taxable  years  following  the taxable year of the loss. A net operating
    11  loss may be carried back to each of the three  taxable  years  preceding
    12  the  taxable  year of the loss; provided, however no loss can be carried
    13  back to a tax year prior to a tax year beginning on  or  after  January,
    14  first, two thousand fifteen. A taxpayer must apply both of these limita-
    15  tions  in  computing such net operating loss deduction.] A net operating
    16  loss may be carried back three taxable years preceding the taxable  year
    17  of  the loss ("the loss year"). However no loss can be carried back to a
    18  taxable year beginning before January first, two thousand  fifteen.  The
    19  loss  is first carried to the earliest of the three taxable years. If it
    20  is not entirely used in that year, it is carried to the  second  taxable
    21  year preceding the loss year, and any remaining amount is carried to the
    22  taxable  year  immediately preceding the loss year. Any unused amount of
    23  loss then remaining may be carried forward for as many as twenty taxable
    24  years following the  loss  year.  Losses  carried  forward  are  carried
    25  forward  first  to the taxable year immediately following the loss year,
    26  then to the second taxable year following the loss year, and then to the
    27  next immediately subsequent taxable year or years until the loss is used
    28  up or the twentieth taxable year  following  the  loss  year,  whichever
    29  comes first.
    30    (6)  Where there are two or more [allocated] apportioned net operating
    31  losses, or portions thereof, carried  back  or  carried  forward  to  be
    32  deducted  in  one particular tax year from [allocated] apportioned busi-
    33  ness income, the earliest [allocated] apportioned loss incurred must  be
    34  applied first.
    35    §  17.  Subparagraph (ix) of paragraph (a) of subdivision 1 of section
    36  210 of the tax law is amended by adding  a  new  clause  7  to  read  as
    37  follows:
    38    (7)  A  taxpayer  may  elect to waive the entire carryback period with
    39  respect to a net operating loss. Such  election  must  be  made  on  the
    40  taxpayer's  original  timely  filed  return  (determined  with regard to
    41  extensions) for the taxable year of the net operating loss for which the
    42  election is to be in effect. Once an election  is  made  for  a  taxable
    43  year, it shall be irrevocable for that taxable year. A separate election
    44  must be made for each loss year. This election applies to all members of
    45  a combined group.
    46    § 18. Paragraph (b) of subdivision 1 of section 210 of the tax law, as
    47  amended  by  section  12 of part A of chapter 59 of the laws of 2014, is
    48  amended to read as follows:
    49    (b) Capital base. (1) (i) The  amount  prescribed  by  this  paragraph
    50  shall be computed at .15 percent for each dollar of the taxpayer's total
    51  business  capital, or the portion thereof [allocated] apportioned within
    52  the state as hereinafter provided for  taxable  years  beginning  before
    53  January  first,  two thousand sixteen. However, in the case of a cooper-
    54  ative housing corporation as defined in the internal revenue  code,  the
    55  applicable rate shall be .04 percent until taxable years beginning on or
    56  after January first, two thousand twenty. The rate of tax for subsequent

        S. 2009--B                         46                         A. 3009--B
 
     1  tax  years shall be as follows: .125 percent for taxable years beginning
     2  on or after January first,  two  thousand  sixteen  and  before  January
     3  first,  two thousand seventeen; .100 percent for taxable years beginning
     4  on  or  after  January  first, two thousand seventeen and before January
     5  first, two thousand eighteen; .075 percent for taxable  years  beginning
     6  on  or  after  January  first,  two thousand eighteen and before January
     7  first, two thousand nineteen; .050 percent for taxable  years  beginning
     8  on  or  after  January  first,  two thousand nineteen and before January
     9  first, two thousand twenty; .025 percent for taxable years beginning  on
    10  or  after  January  first, two thousand twenty and before January first,
    11  two thousand twenty-one; and zero percent  for  years  beginning  on  or
    12  after  January  first,  two  thousand  twenty-one. The rate of tax for a
    13  qualified New York manufacturer [for tax  years  subsequent  to  taxable
    14  years  beginning  on  or  after  January first, two thousand fifteen and
    15  before January first, two thousand sixteen] shall be  .132  percent  for
    16  taxable  years beginning on or after January first, two thousand fifteen
    17  and before January first, two thousand sixteen, .106 percent for taxable
    18  years beginning on or after January  first,  two  thousand  sixteen  and
    19  before  January  first, two thousand seventeen, .085 percent for taxable
    20  years beginning on or after January first, two  thousand  seventeen  and
    21  before  January  first,  two thousand eighteen; .056 percent for taxable
    22  years beginning on or after January first,  two  thousand  eighteen  and
    23  before  January  first,  two thousand nineteen; .038 percent for taxable
    24  years beginning on or after January first,  two  thousand  nineteen  and
    25  before  January  first,  thousand twenty; .019 percent for taxable years
    26  beginning on or after January first,  two  thousand  twenty  and  before
    27  January  first,  two  thousand  twenty-one;  and  zero percent for years
    28  beginning on or after January first, two thousand twenty-one. (ii) In no
    29  event shall the amount prescribed by this paragraph exceed three hundred
    30  fifty thousand dollars for qualified New York manufacturers and for  all
    31  other taxpayers five million dollars.
    32    (2)  For  purposes  of  subparagraph  one  of this paragraph, the term
    33  "manufacturer" shall mean a taxpayer which during the  taxable  year  is
    34  principally  engaged  in the production of goods by manufacturing, proc-
    35  essing, assembling, refining, mining, extracting, farming,  agriculture,
    36  horticulture, floriculture, viticulture or commercial fishing. Moreover,
    37  for  purposes  of  computing  the capital base in a combined report, the
    38  combined group shall be considered a "manufacturer" for purposes of this
    39  subparagraph only if the combined group during the taxable year is prin-
    40  cipally engaged in the activities set forth in this subparagraph, or any
    41  combination thereof. A taxpayer or, in the case of a combined report,  a
    42  combined  group  shall  be "principally engaged" in activities described
    43  above if, during the taxable year, more than fifty percent of the  gross
    44  receipts  of  the  taxpayer or combined group, respectively, are derived
    45  from receipts from the sale of goods produced  by  such  activities.  In
    46  computing  a  combined  group's  gross receipts, intercorporate receipts
    47  shall be eliminated. A "qualified New York manufacturer" is  a  manufac-
    48  turer  that  has property in New York that is described in clause (A) of
    49  subparagraph (i) of paragraph (b) of subdivision one of section  [210-B]
    50  two  hundred  ten-B of this article and either (i) the adjusted basis of
    51  that property for federal income tax purposes at the close of the  taxa-
    52  ble  year  is  at  least one million dollars or (ii) all of its real and
    53  personal property is located in New York. In addition, a "qualified  New
    54  York  manufacturer"  means  a  taxpayer  that  is defined as a qualified
    55  emerging technology company under paragraph (c) of  subdivision  one  of
    56  section  thirty-one  hundred two-e of the public authorities law regard-

        S. 2009--B                         47                         A. 3009--B
 
     1  less of the ten million dollar limitation expressed in subparagraph  one
     2  of  such paragraph.   A taxpayer or, in the case of a combined report, a
     3  combined group, that does not satisfy the principally engaged  test  may
     4  be  a  qualified  New  York manufacturer if the taxpayer or the combined
     5  group employs during the taxable year at least two thousand five hundred
     6  employees in manufacturing in New York and the taxpayer or the  combined
     7  group  has  property  in  the  state used in manufacturing, the adjusted
     8  basis of which for federal income tax purposes at the close of the taxa-
     9  ble year is at least one hundred million dollars.
    10    § 19. Subparagraphs 1 and 2 of  paragraph  (d)  of  subdivision  1  of
    11  section  210 of the tax law, as amended by section 12 of part A of chap-
    12  ter 59 of the laws of 2014, are amended to read as follows:
    13    (1) (A) The amount prescribed by this paragraph for New York S  corpo-
    14  rations,  other than New York S corporations that are qualified New York
    15  manufacturers or qualified emerging technology companies, will be deter-
    16  mined in accordance with the following table:
 
    17  If New York receipts are:                The fixed dollar minimum tax is:
    18   not more than $100,000                               $   25
    19   more than $100,000 but not over $250,000             $   50
    20   more than $250,000 but not over $500,000             $  175
    21   more than $500,000 but not over $1,000,000           $  300
    22   more than $1,000,000 but not over $5,000,000         $1,000
    23   more than $5,000,000 but not over $25,000,000        $3,000
    24   Over $25,000,000                                     $4,500
 
    25    (B) Provided further, the amount prescribed by this paragraph for  New
    26  York  S  corporations  that  are  qualified  New  York manufacturers, as
    27  defined in subparagraph (vi) of paragraph (a) of this  subdivision,  and
    28  for  New  York  S  corporations  that  are qualified emerging technology
    29  companies under paragraph (c) of subdivision one of  section  thirty-one
    30  hundred  two-e  of  the  public  authorities  law  regardless of the ten
    31  million dollar limitation expressed in subparagraph one  of  such  para-
    32  graph (c), will be determined in accordance with the following tables.
 
    33  For taxable years beginning on or after January 1, 2015 and before Janu-
    34  ary 1, 2016:
 
    35  If New York receipts are:                The fixed dollar minimum tax is:
 
    36   not more than $100,000                               $   22
    37   more than $100,000 but not over $250,000             $   44
    38   more than $250,000 but not over $500,000             $  153
    39   more than $500,000 but not over $1,000,000           $  263
    40   more than $1,000,000 but not over $5,000,000         $  877
    41   more than $5,000,000 but not over $25,000,000        $2,631
    42   Over $25,000,000                                     $3,947
 
    43  For taxable years beginning on or after January 1, 2016 and before Janu-
    44  ary 1, 2018:
 
    45  If New York receipts are:                The fixed dollar minimum tax is:
    46   not more than $100,000                               $   21
    47   more than $100,000 but not over $250,000             $   42
    48   more than $250,000 but not over $500,000             $  148
    49   more than $500,000 but not over $1,000,000           $  254

        S. 2009--B                         48                         A. 3009--B
 
     1   more than $1,000,000 but not over $5,000,000         $  846
     2   more than $5,000,000 but not over $25,000,000        $2,538
     3   Over $25,000,000                                     $3,807
 
     4  For taxable years beginning on or after January 1, 2018:
 
     5  If New York receipts are:                The fixed dollar minimum tax is:
     6   not more than $100,000                               $   19
     7   more than $100,000 but not over $250,000             $   38
     8   more than $250,000 but not over $500,000             $  131
     9   more than $500,000 but not over $1,000,000           $  225
    10   more than $1,000,000 but not over $5,000,000         $  750
    11   more than $5,000,000 but not over $25,000,000        $2,250
    12   Over $25,000,000                                     $3,375
 
    13    (C)  Provided  further,  the amount prescribed by this paragraph for a
    14  qualified New York manufacturer, as  defined  in  subparagraph  (vi)  of
    15  paragraph  (a)  of this subdivision, and a qualified emerging technology
    16  company under paragraph (c) of subdivision  one  of  section  thirty-one
    17  hundred  two-e  of  the  public  authorities  law  regardless of the ten
    18  million dollar limitation expressed in subparagraph one  of  such  para-
    19  graph  (c),  that is not a New York S corporation, will be determined in
    20  accordance with the following tables[:]. However, with respect to quali-
    21  fied New York manufacturers, the amounts in these tables will  apply  in
    22  the  case  of a combined report only if the combined group satisfies the
    23  requirements to be a qualified New York manufacturer  as  set  forth  in
    24  such subparagraph (vi).
 
    25  [For  tax years beginning on or after January 1, 2014 and before January
    26  1, 2015:

    27  If New York receipts are:                The fixed dollar minimum tax is:
    28   not more than $100,000                               $   23
    29   more than $100,000 but not over $250,000             $   68
    30   more than $250,000 but not over $500,000             $  159
    31   more than $500,000 but not over $1,000,000           $  454
    32   more than $1,000,000 but not over $5,000,000         $1,362
    33   more than $5,000,000 but not over $25,000,000        $3,178
    34   Over $25,000,000                                     $4,500]
 
    35  For tax years beginning on or after January 1, 2015 and  before  January
    36  1, 2016:
 
    37  If New York receipts are:                The fixed dollar minimum tax is:
    38   not more than $100,000                               $   22
    39   more than $100,000 but not over $250,000             $   66
    40   more than $250,000 but not over $500,000             $  153
    41   more than $500,000 but not over $1,000,000           $  439
    42   more than $1,000,000 but not over $5,000,000         $1,316
    43   more than $5,000,000 but not over $25,000,000        $3,070
    44   Over $25,000,000                                     $4,385
 
    45  For  tax  years beginning on or after January 1, 2016 and before January
    46  1, 2018:
 
    47  If New York receipts are:                The fixed dollar minimum tax is:

        S. 2009--B                         49                         A. 3009--B
 
     1   not more than $100,000                               $   21
     2   more than $100,000 but not over $250,000             $   63
     3   more than $250,000 but not over $500,000             $  148
     4   more than $500,000 but not over $1,000,000           $  423
     5   more than $1,000,000 but not over $5,000,000         $1,269
     6   more than $5,000,000 but not over $25,000,000        $2,961
     7   Over $25,000,000                                     $4,230
 
     8  For tax years beginning on or after January 1, 2018:
 
     9  If New York receipts are:                The fixed dollar minimum tax is:
    10   not more than $100,000                               $   19
    11   more than $100,000 but not over $250,000             $   56
    12   more than $250,000 but not over $500,000             $  131
    13   more than $500,000 but not over $1,000,000           $  375
    14   more than $1,000,000 but not over $5,000,000         $1,125
    15   more than $5,000,000 but not over $25,000,000        $2,625
    16   Over $25,000,000                                     $3,750
 
    17    (D) Otherwise, for all other taxpayers not covered by clauses (A), (B)
    18  and  (C)  of  this subparagraph, the amount prescribed by this paragraph
    19  will be determined in accordance with the following table:
 
    20  If New York receipts are:                The fixed dollar minimum tax is:
    21   not more than $100,000                               $   25
    22   more than $100,000 but not over $250,000             $   75
    23   more than $250,000 but not over $500,000             $  175
    24   more than $500,000 but not over $1,000,000           $  500
    25   more than $1,000,000 but not over $5,000,000         $1,500
    26   more than $5,000,000 but not over $25,000,000        $3,500
    27   more than $25,000,000 but not over $50,000,000       $5,000
    28   more than $50,000,000 but not over $100,000,000      $10,000
    29   more than $100,000,000 but not over $250,000,000     $20,000
    30   more than $250,000,000 but not over $500,000,000     $50,000
    31   more than $500,000,000 but not over $1,000,000,000   $100,000
    32   Over $1,000,000,000                                  $200,000
 
    33    (E) For purposes of this paragraph, New York receipts are the receipts
    34  included in the numerator of the apportionment factor  determined  under
    35  section two hundred ten-A for the taxable year.
    36    (2)  If the taxable year is less than twelve months, the amount of New
    37  York receipts is determined by dividing the amount of the  receipts  for
    38  the  taxable year by the number of months in the taxable year and multi-
    39  plying the result by twelve, and the amount prescribed by this paragraph
    40  shall be reduced by twenty-five percent of  the  period  for  which  the
    41  taxpayer  is  subject  to  tax is more than six months but not more than
    42  nine months and by fifty percent if the period for which the taxpayer is
    43  subject to tax is not more than six months. In the case of a termination
    44  year of a New York S corporation, the sum of the tax computed under this
    45  paragraph for the S short year and for the C short  year  shall  not  be
    46  less than the amount computed under this paragraph as if the corporation
    47  were a New York C corporation for the entire taxable year.
    48    § 20. Paragraph (f) of subdivision 1 of section 210 of the tax law, as
    49  amended  by  section  12 of part A of chapter 59 of the laws of 2014, is
    50  amended to read as follows:

        S. 2009--B                         50                         A. 3009--B
 
     1    (f) For purposes of this section, the term "small  business  taxpayer"
     2  shall  mean  a  taxpayer  (i) which has an entire net income of not more
     3  than three hundred ninety thousand dollars for the  taxable  year;  (ii)
     4  the  aggregate amount of money and other property received by the corpo-
     5  ration  for stock, as a contribution to capital, and as paid-in surplus,
     6  does not exceed one million dollars; (iii)  which  is  not  part  of  an
     7  affiliated  group,  as  defined  in section 1504 of the internal revenue
     8  code, unless such group, if it had filed a report under this article  on
     9  a  combined  basis,  would  have  itself  qualified as a "small business
    10  taxpayer" pursuant to this subdivision; and (iv) which  has  an  average
    11  number  of  individuals,  excluding general executive officers, employed
    12  full-time in the state during the taxable year of one hundred or  fewer.
    13  If  the  taxable  period  to  which  subparagraph  (i) of this paragraph
    14  applies is less than twelve months, entire net income under such subpar-
    15  agraph shall be placed on an annual basis by multiplying the entire  net
    16  income  by twelve and dividing the result by the number of months in the
    17  period. For purposes of subparagraph (ii) of this paragraph, the  amount
    18  taken  into  account with respect to any property other than money shall
    19  be the amount equal to the adjusted basis to  the  corporation  of  such
    20  property  for  determining  gain,  reduced by any liability to which the
    21  property was subject or which was assumed by the corporation. The deter-
    22  mination under the preceding sentence shall be made as of the  time  the
    23  property  was  received by the corporation. For purposes of subparagraph
    24  [(iii)] (iv) of this [section] paragraph, "average  number  of  individ-
    25  uals, excluding general executive officers, employed full-time" shall be
    26  computed  by ascertaining the number of such individuals employed by the
    27  taxpayer on the thirty-first day of March, the thirtieth  day  of  June,
    28  the  thirtieth  day  of  September  and the thirty-first day of December
    29  during each taxable year or other applicable period, by adding  together
    30  the  number  of  such  individuals ascertained on each of such dates and
    31  dividing the sum so obtained by the number of such dates occurring with-
    32  in such taxable year or other applicable period. An individual  employed
    33  full-time  means an employee in a job consisting of at least thirty-five
    34  hours per week, or two or more employees who are in jobs  that  together
    35  constitute  the  equivalent of a job at least thirty-five hours per week
    36  (full-time equivalent). Full-time  equivalent  employees  in  the  state
    37  [includes] include all employees regularly connected with or working out
    38  of an office or place of business of the taxpayer within the state.
    39    §  21.  Subdivision  1  of  section  210-A of the tax law, as added by
    40  section 16 of part A of chapter 59 of the laws of 2014,  is  amended  to
    41  read as follows:
    42    1.  General.  Business  income and capital shall be apportioned to the
    43  state by the apportionment factor determined pursuant to  this  section.
    44  The  apportionment  factor  is  a fraction, determined by including only
    45  those receipts, net income, net gains, and other items described in this
    46  section that are included in the computation of the taxpayer's  business
    47  income  (determined  without  regard  to  the  modification  provided in
    48  subparagraph nineteen of paragraph (a) of subdivision  nine  of  section
    49  two  hundred  eight of this article) for the taxable year. The numerator
    50  of the apportionment fraction shall be equal  to  the  sum  of  all  the
    51  amounts  required  to  be  included  in  the  numerator  pursuant to the
    52  provisions of this section and  the  denominator  of  the  apportionment
    53  fraction  shall  be  equal  to the sum of all the amounts required to be
    54  included in the denominator pursuant to the provisions of this section.

        S. 2009--B                         51                         A. 3009--B
 
     1    § 22. Paragraph (c) of subdivision 2 of section 210-A of the tax  law,
     2  as  added  by section 16 of part A of chapter 59 of the laws of 2014, is
     3  amended to read as follows:
     4    (c)  Receipts from sales of tangible personal property and electricity
     5  that are traded as commodities, as [described] the term  "commodity"  is
     6  defined in section 475 of the internal revenue code, are included in the
     7  apportionment fraction in accordance with clause (I) of subparagraph two
     8  of paragraph (a) of subdivision five of this section.
     9    § 23. The opening paragraph and paragraph 1 of paragraph (a) of subdi-
    10  vision 5 of section 210-A of the tax law, as added by section 16 of part
    11  A of chapter 59 of the laws of 2014, are amended to read as follows:
    12    [A financial instrument is a "qualified financial instrument" if it is
    13  marked  to  market  under  section  475  or section 1256 of the internal
    14  revenue code, provided that loans secured by real property shall not  be
    15  qualified financial instruments.] A financial instrument is a "nonquali-
    16  fied  financial  instrument"  if it is not a qualified financial instru-
    17  ment.  A qualified financial instrument  means  a  financial  instrument
    18  that  is  of a type described in any of clauses (A), (B), (C), (D), (G),
    19  (H) or (I) of subparagraph two of  this  paragraph  and  that  has  been
    20  marked  to  market in the taxable year by the taxpayer under section 475
    21  or section 1256 of the internal revenue code.  Further, if the  taxpayer
    22  has  in  the taxable year marked to market a financial instrument of the
    23  type described in any of the clauses (A), (B), (C), (D), (G), (H) or (I)
    24  of subparagraph two of this paragraph,  then  any  financial  instrument
    25  within that type described in the above specified clause or clauses that
    26  has  not  been  marked  to  market  by the taxpayer under section 475 or
    27  section 1256 of the internal  revenue  code  is  a  qualified  financial
    28  instrument  in  the  taxable  year.  Notwithstanding  the  two preceding
    29  sentences, (i) a loan secured by real property shall not be a  qualified
    30  financial  instrument,  (ii) if the only loans that are marked to market
    31  by the taxpayer under section 475 or section 1256 of the internal reven-
    32  ue code are loans secured by real property, then no loans shall be qual-
    33  ified financial instruments, and (iii) stock that is investment  capital
    34  as  defined  in paragraph (a) of subdivision five of section two hundred
    35  eight of this article shall not be a qualified financial instrument.  If
    36  a corporation is included in a combined report, the definition of quali-
    37  fied financial instrument shall be determined on a combined basis.
    38    (1) Fixed percentage method for qualified  financial  instruments.  In
    39  determining  the  inclusion  of  receipts  and  net gains from qualified
    40  financial instruments in the apportionment fraction, taxpayers may elect
    41  to use the fixed percentage method described in  this  subparagraph  for
    42  qualified financial instruments. The election is irrevocable, applies to
    43  all qualified financial instruments, and must be made on an annual basis
    44  on  the taxpayer's original, timely filed return, determined with regard
    45  to extensions of time for filing.  If  the  taxpayer  elects  the  fixed
    46  percentage  method,  then  all income, gain or loss, including marked to
    47  market net gains as defined in clause (J) of subparagraph  two  of  this
    48  paragraph,  from  qualified  financial  instruments constitutes business
    49  income, gain or loss. If the taxpayer does not elect to  use  the  fixed
    50  percentage  method,  then  receipts  and  net  gains are included in the
    51  apportionment fraction in accordance with the customer  sourcing  method
    52  described  in  subparagraph  two  of  this  paragraph.  Under  the fixed
    53  percentage method, eight percent of all net income (not less than  zero)
    54  from qualified financial instruments is included in the numerator of the
    55  apportionment  fraction. All net income (not less than zero) from quali-

        S. 2009--B                         52                         A. 3009--B
 
     1  fied financial instruments is included in the denominator of the  appor-
     2  tionment fraction.
     3    §  24. Subclause (iv) of clause (A) of subparagraph 2 of paragraph (a)
     4  of subdivision 5 of section 210-A of the tax law, as added by section 16
     5  of part A of chapter 59 of the laws of  2014,  is  amended  to  read  as
     6  follows:
     7    (iv) Net gains (not less than zero) from sales of loans not secured by
     8  real  property  are included in the numerator of the apportionment frac-
     9  tion as provided in this subclause. The amount of  net  gains  from  the
    10  sale  of loans not secured by real property included in the numerator of
    11  the apportionment fraction is determined by multiplying the net gains by
    12  a fraction, the numerator of which is the amount of gross proceeds  from
    13  sales of loans not secured by real property to purchasers located within
    14  the state and the denominator of which is the amount of gross [receipts]
    15  proceeds  from sales of loans not secured by real property to purchasers
    16  located within and without the state. Gross proceeds shall be determined
    17  after the deduction of any cost incurred to acquire the loans but  shall
    18  not  be  less  than  zero.  Net gains (not less than zero) from sales of
    19  loans not secured by real property are included in  the  denominator  of
    20  the apportionment fraction.
    21    §  25.  Clause (A) of subparagraph 2 of paragraph (a) of subdivision 5
    22  of section 210-A of the tax law is amended by adding a new subclause (v)
    23  to read as follows:
    24    (v) For purposes of this subdivision, a loan is secured by real  prop-
    25  erty  if  fifty  percent  or more of the value of the collateral used to
    26  secure the loan, when valued at fair market value as  of  the  time  the
    27  loan was entered into, consists of real property.
    28    § 25-a. Clause (I) of subparagraph 2 of paragraph (a) of subdivision 5
    29  of  section  210-A  of  the tax law, as added by section 16 of part A of
    30  chapter 59 of the laws of 2014, is amended to read as follows:
    31    (I) Physical commodities. Net income (not less than zero)  from  sales
    32  of  physical commodities are included in the numerator of the apportion-
    33  ment fraction as provided in this [subparagraph] clause.  The amount  of
    34  net  income from sales of physical commodities included in the numerator
    35  of the apportionment fraction  is  determined  by  multiplying  the  net
    36  income  from  sales of physical commodities by a fraction, the numerator
    37  of which is the amount of receipts from sales  of  physical  commodities
    38  actually  delivered to points within the state or, if there is no actual
    39  delivery of the physical commodity, sold to purchasers  located  in  the
    40  state, and the denominator of which is the amount of receipts from sales
    41  of  physical commodities actually delivered to points within and without
    42  the state or, if there is no actual delivery of the physical  commodity,
    43  sold to purchasers located within and without the state. Net income (not
    44  less [that] than zero) from sales of physical commodities is included in
    45  the denominator of the apportionment fraction. Net income (not less than
    46  zero)  from  sales  of  physical  commodities  is  determined  after the
    47  deduction of the cost to acquire or produce the physical commodities.
    48    § 26. Subparagraph 2 of paragraph (a)  of  subdivision  5  of  section
    49  210-A  of  the  tax law is amended by adding a new clause (J) to read as
    50  follows:
    51    (J) Marked to market net gains. (i) For purposes of this  subdivision,
    52  "marked  to  market" means that a financial instrument is, under section
    53  475 or section 1256 of the internal revenue code, treated by the taxpay-
    54  er as sold for its fair market value on the last  business  day  of  the
    55  taxpayer's  taxable year. "Marked to market gain or loss" means the gain
    56  or loss recognized by the taxpayer under section 475 or section 1256  of

        S. 2009--B                         53                         A. 3009--B
 
     1  the internal revenue code because the financial instrument is treated as
     2  sold  for  its fair market value on the last business day of the taxpay-
     3  er's taxable year.
     4    (ii)  The  amount  of  marked to market net gains (not less than zero)
     5  from each type of financial instrument that is marked to market included
     6  in the numerator of the apportionment fraction is determined  by  multi-
     7  plying the marked to market net gains (but not less than zero) from such
     8  type  of  the financial instrument by a fraction, the numerator of which
     9  is the numerator of the apportionment fraction for the  net  gains  from
    10  that type of financial instrument determined under the applicable clause
    11  of  this subparagraph and the denominator of which is the denominator of
    12  the apportionment fraction for the net gains for that type of  financial
    13  instrument  determined under the applicable clause of this subparagraph.
    14  Marked to market net gains (not less than zero) from  financial  instru-
    15  ments  for  which  the numerator of the apportionment fraction is deter-
    16  mined under the immediately  preceding  sentence  are  included  in  the
    17  denominator of the apportionment fraction.
    18    (iii)  If the type of financial instrument that is marked to market is
    19  not otherwise sourced by the taxpayer under this subparagraph, or if the
    20  taxpayer has a net loss from the sales of that type of financial instru-
    21  ment under the applicable clause of this  subparagraph,  the  amount  of
    22  marked to market net gains (not less than zero) from that type of finan-
    23  cial  instrument included in the numerator of the apportionment fraction
    24  is determined by multiplying the marked to market  net  gains  (but  not
    25  less  than  zero)  from that type of financial instrument by a fraction,
    26  the numerator of which is the sum of the amount of receipts included  in
    27  the numerator of the apportionment fraction under clauses (A), (B), (C),
    28  (D),  (E), (F), (G), (H) and (I) of this subparagraph and subclause (ii)
    29  of this clause, and the denominator of which is the sum of the amount of
    30  receipts included in the denominator of the apportionment fraction under
    31  clauses (A), (B), (C), (D), (E), (F), (G), (H)  and  (I)  and  subclause
    32  (ii) of this clause. Marked to market net gains (not less than zero) for
    33  which  the  amount  to be included in the numerator of the apportionment
    34  fraction is determined under  the  immediately  preceding  sentence  are
    35  included in the denominator of the apportionment fraction.
    36    §  27. Paragraph (e) of subdivision 5 of section 210-A of the tax law,
    37  as added by section 16 of part A of chapter 59 of the laws of  2014,  is
    38  amended to read as follows:
    39    (e) For purposes of this subdivision, a taxpayer shall use the follow-
    40  ing hierarchy to determine the commercial domicile of a business entity,
    41  based on the information known to the taxpayer or information that would
    42  be  known  upon  reasonable  inquiry:  (i) [the location of the treasury
    43  function of the business  entity;  (ii)]  the  seat  of  management  and
    44  control  of the business entity; and [(iii)] (ii) the billing address of
    45  the business entity in the taxpayer's records. The taxpayer  must  exer-
    46  cise due diligence before rejecting [a] the first method in this hierar-
    47  chy and proceeding to the next method.
    48    § 28. Section 210-A of the tax law is amended by adding a new subdivi-
    49  sion 6-a to read as follows:
    50    6-a.  Receipts from the operation of vessels. Receipts from the opera-
    51  tion of vessels are included in the numerator of the apportionment frac-
    52  tion as follows. The amount of receipts from the  operation  of  vessels
    53  included in the numerator of the apportionment fraction is determined by
    54  multiplying  the amount of such receipts by a fraction, the numerator of
    55  which is the aggregate number of working days of the  vessels  owned  or
    56  leased  by  the  taxpayer  in territorial waters of the state during the

        S. 2009--B                         54                         A. 3009--B
 
     1  period covered by the taxpayer's report and the denominator of which  is
     2  the  aggregate  number of working days of all vessels owned or leased by
     3  the taxpayer during such period. Receipts from the operation of  vessels
     4  are included in the denominator of the apportionment fraction.
     5    §  29.  The opening paragraph of clause (A) of subparagraph 1 of para-
     6  graph (b) of subdivision 7 of section 210-A of the tax law, as added  by
     7  section  16  of  part A of chapter 59 of the laws of 2014, is amended to
     8  read as follows:
     9    The portion of receipts of a taxpayer from  aviation  services  (other
    10  than  services  described  in  paragraph  (a)  of  this subdivision, but
    11  including the receipts of a  qualified  air  freight  forwarder)  to  be
    12  included  in the numerator of the apportionment fraction shall be deter-
    13  mined by multiplying its receipts  from  such  aviation  services  by  a
    14  percentage  which  is  equal  to the arithmetic average of the following
    15  three percentages:
    16    § 30. Paragraph (b) of subdivision 7 of section 210-A of the  tax  law
    17  is amended by adding a new subparagraph 3 to read as follows:
    18    (3) A corporation is a qualified air freight forwarder with respect to
    19  another corporation:
    20    (A)  if  it  owns or controls either directly or indirectly all of the
    21  capital stock of such other corporation, or if all of its capital  stock
    22  is  owned  or  controlled  either  directly  or indirectly by such other
    23  corporation, or if all of the capital  stock  of  both  corporations  is
    24  owned or controlled either directly or indirectly by the same interests,
    25    (B)  if  it  is  principally  engaged  in  the business of air freight
    26  forwarding, and
    27    (C) if its air freight forwarding business is carried  on  principally
    28  with the airline or airlines operated by such other corporation.
    29    §  30-a.  Paragraph  (b)  of subdivision 8 of section 210-A of the tax
    30  law, as added by section 16 of part A of chapter 59 of the laws of 2014,
    31  is amended to read as follows:
    32    (b) The amount of receipts from sales of advertising on television  or
    33  radio  included in the numerator of the apportionment fraction is deter-
    34  mined by multiplying the total of  such  receipts  by  a  fraction,  the
    35  numerator  of  which  is  the  number of viewers or listeners within the
    36  state and the denominator of which is the number of viewers or listeners
    37  within and without the state. The total of such receipts from  sales  of
    38  advertising  on  television  and radio is included in the denominator of
    39  the apportionment fraction.
    40    § 31. Subparagraph (i) of paragraph (b) and paragraph (d) of  subdivi-
    41  sion 1 of section 210-B of the tax law, as added by section 17 of part A
    42  of chapter 59 of the laws of 2014, are amended to read as follows:
    43    (i)  A  credit shall be allowed under this subdivision with respect to
    44  tangible personal property and other tangible property, including build-
    45  ings and structural components  of  buildings,  which  are:  depreciable
    46  pursuant  to  section  one  hundred  sixty-seven of the internal revenue
    47  code, have a useful life of four years or more, are acquired by purchase
    48  as defined in section one  hundred  seventy-nine  (d)  of  the  internal
    49  revenue code, have a situs in this state and are (A) principally used by
    50  the  taxpayer  in  the production of goods by manufacturing, processing,
    51  assembling, refining, mining, extracting, farming,  agriculture,  horti-
    52  culture, floriculture, viticulture or commercial fishing, (B) industrial
    53  waste  treatment facilities or air pollution control facilities, used in
    54  the taxpayer's trade or business, (C) research and development property,
    55  or (D) principally used in the ordinary course of the  taxpayer's  trade
    56  or  business  as  a  broker or dealer in connection with the purchase or

        S. 2009--B                         55                         A. 3009--B
 
     1  sale (which shall include but not be limited to the  issuance,  entering
     2  into,  assumption,  offset,  assignment,  termination,  or  transfer) of
     3  stocks, bonds or other securities as defined  in  section  four  hundred
     4  seventy-five  (c)(2)  of the Internal Revenue Code, or of commodities as
     5  defined in section four hundred seventy-five (e) of the Internal Revenue
     6  Code, (E) principally used in the  ordinary  course  of  the  taxpayer's
     7  trade  or business of providing investment advisory services for a regu-
     8  lated investment company as defined in section eight  hundred  fifty-one
     9  of the Internal Revenue Code, or lending, loan arrangement or loan orig-
    10  ination  services  to  customers in connection with the purchase or sale
    11  (which shall include but not be limited to the issuance, entering  into,
    12  assumption,  offset, assignment, termination, or transfer) of securities
    13  as defined in section four hundred seventy-five (c)(2) of  the  Internal
    14  Revenue  Code,  (F) [originally] principally used in the ordinary course
    15  of the taxpayer's business as an exchange registered as a national secu-
    16  rities exchange within the meaning of sections 3(a)(1) and 6(a)  of  the
    17  Securities  Exchange  Act  of  1934  or  a  board of trade as defined in
    18  [section 1410(a)(1) of the  New  York  Not-for-Profit  Corporation  Law]
    19  subparagraph one of paragraph (a) of section fourteen hundred ten of the
    20  not-for-profit  corporation  law or as an entity that is wholly owned by
    21  one or more such national securities exchanges or boards  of  trade  and
    22  that  provides  automation or technical services thereto, or (G) princi-
    23  pally used as a qualified film production facility  including  qualified
    24  film  production  facilities having a situs in an empire zone designated
    25  as such pursuant to article eighteen-B of  the  general  municipal  law,
    26  where  the taxpayer is providing three or more services to any qualified
    27  film production company using the facility, including such services as a
    28  studio lighting grid, lighting  and  grip  equipment,  multi-line  phone
    29  service, broadband information technology access, industrial scale elec-
    30  trical  capacity,  food services, security services, and heating, venti-
    31  lation and air conditioning. For purposes of clauses (D), (E) and (F) of
    32  this subparagraph, property purchased by a taxpayer  affiliated  with  a
    33  regulated  broker, dealer, registered investment advisor, national secu-
    34  rities exchange or board of trade, is allowed a credit under this subdi-
    35  vision if the property is used by its affiliated regulated broker, deal-
    36  er, registered investment advisor, national securities exchange or board
    37  of trade in accordance with this subdivision. For purposes of  determin-
    38  ing  if the property is principally used in qualifying uses, the uses by
    39  the taxpayer described in clauses (D) and (E) of this  subparagraph  may
    40  be  aggregated.  In  addition,  the uses by the taxpayer, its affiliated
    41  regulated broker, dealer and registered investment advisor under  either
    42  or both of those clauses may be aggregated. Provided, however, a taxpay-
    43  er  shall not be allowed the credit provided by clauses (D), (E) and (F)
    44  of this subparagraph unless the property  is  first  placed  in  service
    45  before  October  first,  two  thousand fifteen and (i) eighty percent or
    46  more of the employees performing the administrative  and  support  func-
    47  tions resulting from or related to the qualifying uses of such equipment
    48  are  located  in this state or (ii) the average number of employees that
    49  perform the administrative  and  support  functions  resulting  from  or
    50  related to the qualifying uses of such equipment and are located in this
    51  state  during  the taxable year for which the credit is claimed is equal
    52  to or greater than ninety-five percent of the average number of  employ-
    53  ees  that  perform  these functions and are located in this state during
    54  the thirty-six months immediately preceding the year for which the cred-
    55  it is claimed, or (iii) the number of employees located  in  this  state
    56  during  the  taxable year for which the credit is claimed is equal to or

        S. 2009--B                         56                         A. 3009--B
 
     1  greater than ninety percent of the number of employees located  in  this
     2  state on December thirty-first, nineteen hundred ninety-eight or, if the
     3  taxpayer  was  not  a calendar year taxpayer in nineteen hundred ninety-
     4  eight,  the  last  day  of  its first taxable year ending after December
     5  thirty-first, nineteen hundred ninety-eight.  If  the  taxpayer  becomes
     6  subject  to  tax in this state after the taxable year beginning in nine-
     7  teen hundred ninety-eight, then the taxpayer is not required to  satisfy
     8  the  employment test provided in the preceding sentence of this subpara-
     9  graph for its first taxable year. For purposes of clause (iii)  of  this
    10  subparagraph  the employment test will be based on the number of employ-
    11  ees located in this state on the last day of the first taxable year  the
    12  taxpayer  is  subject to tax in this state.  If the uses of the property
    13  must be aggregated to determine whether the property is principally used
    14  in qualifying uses, then either each affiliate using the  property  must
    15  satisfy  this  employment test or this employment test must be satisfied
    16  through the aggregation of the employees of the taxpayer, its affiliated
    17  regulated broker, dealer, and registered investment  adviser  using  the
    18  property.  For  purposes of this subdivision, the term "goods" shall not
    19  include electricity.
    20    (d) Except as otherwise provided in this paragraph, the credit allowed
    21  under this subdivision for any taxable year shall not reduce the tax due
    22  for such year to less than the [higher  of  the  amounts  prescribed  in
    23  paragraphs  (c) and] fixed dollar minimum amount prescribed in paragraph
    24  (d) of subdivision one  of  [this]  section  two  hundred  ten  of  this
    25  article.  However, if the amount of credit allowable under this subdivi-
    26  sion for any taxable year reduces the tax  to  such  amount  or  if  the
    27  taxpayer  otherwise  pays  tax based on the fixed dollar minimum amount,
    28  any amount of credit allowed for a  taxable  year  commencing  prior  to
    29  January  first, nineteen hundred eighty-seven and not deductible in such
    30  taxable year may be carried over to the following year or years and  may
    31  be  deducted  from  the  taxpayer's tax for such year or years but in no
    32  event shall such credit be carried over to taxable years  commencing  on
    33  or  after  January  first,  two  thousand  two, and any amount of credit
    34  allowed for a taxable year commencing on or after January  first,  nine-
    35  teen hundred eighty-seven and not deductible in such year may be carried
    36  over  to  the fifteen taxable years next following such taxable year and
    37  may be deducted from the taxpayer's tax for such year or years. In  lieu
    38  of  such  carryover, any such taxpayer which qualifies as a new business
    39  under paragraph [(j)] (f) of this subdivision may  elect  to  treat  the
    40  amount  of  such  carryover  as  an overpayment of tax to be credited or
    41  refunded in accordance with the provisions of section ten hundred eight-
    42  y-six of this chapter, provided, however, the provisions  of  subsection
    43  (c) of section ten hundred eighty-eight of this chapter notwithstanding,
    44  no interest shall be paid thereon.
    45    §  32.  Subdivision  27  of  section 210-B of the tax law, as added by
    46  section 17 of part A of chapter 59 of the laws of 2014,  is  amended  to
    47  read as follows:
    48    27.  Credits  of New York S corporations. (a) General. Notwithstanding
    49  the provisions of this section, no carryover of credit  allowable  in  a
    50  New  York C year shall be deducted from the tax otherwise due under this
    51  article in a New York S year, and no credit allowable in a  New  York  S
    52  year,  or  carryover  of  such  credit,  shall  be deducted from the tax
    53  imposed by this article. However, a New York S year shall be treated  as
    54  a  taxable  year for purposes of determining the number of taxable years
    55  to which a credit may be carried over under this section.  Notwithstand-
    56  ing the first sentence of this subdivision, however, the credit for  the

        S. 2009--B                         57                         A. 3009--B
 
     1  special  additional  mortgage recording tax shall be allowed as provided
     2  in subdivision [fifteen] nine of this section, and the carryover of  any
     3  such  credit shall be determined without regard to whether the credit is
     4  carried from a New York C year to a New York S year or vice-versa.
     5    §  32-a.  Subdivision  42 of section 210-b of the tax law, as added by
     6  section 17 of part A of chapter 59 of the laws of 2014,  is  amended  to
     7  read as follows:
     8    42.  Alternative  base credit. (a) If the tax imposed on a taxpayer by
     9  subdivision one of section two hundred  nine  of  this  article  is  the
    10  amount prescribed in clause (ii) of subparagraph one of paragraph (b) of
    11  subdivision one of section two hundred ten of this article, the taxpayer
    12  shall  be  allowed  a  credit against the tax imposed under this article
    13  equal to the amount of tax paid to another state computed on a tax  base
    14  identical  to  the tax base prescribed in such paragraph (b). If the tax
    15  imposed on a taxpayer by subdivision one of section two hundred nine  of
    16  this article is the highest amount prescribed in paragraph (d) of subdi-
    17  vision  one of section two hundred ten of this article applicable to the
    18  taxpayer, the taxpayer shall be allowed a credit against the tax imposed
    19  under this article equal to the amount of  tax  paid  to  another  state
    20  computed  on  a  tax  base  identical to the tax base prescribed in such
    21  paragraph (d).
    22    § 33. Subdivision 1, subparagraphs (i) and (ii) of paragraph  (d)  and
    23  paragraphs  (d-1) and (e) of subdivision 4, and subdivision 7 of section
    24  210-C of the tax law, as added by section 18 of part A of chapter 59  of
    25  the laws of 2014, are amended to read as follows:
    26    1.  Tax.  (a) The tax on a combined report shall be the highest of (i)
    27  the combined business income base multiplied by the tax  rate  specified
    28  in  paragraph  (a) of subdivision one of section two hundred ten of this
    29  article; (ii) the combined capital base multiplied by the tax rate spec-
    30  ified in paragraph (b) of subdivision one of section two hundred ten  of
    31  this  article,  but  not  exceeding  the limitation provided for in that
    32  paragraph (b); or (iii) the fixed dollar minimum that is attributable to
    33  the designated agent of the combined group. In addition, the  tax  on  a
    34  combined  report shall include the fixed dollar minimum tax specified in
    35  paragraph (d) of subdivision one of section  two  hundred  ten  of  this
    36  article for each member of the combined group, other than the designated
    37  agent, that is a taxpayer.
    38    (b)  The  combined  business income base is the amount of the combined
    39  business income of the combined group that is apportioned to the  state,
    40  reduced  by  any prior net operating loss conversion subtraction and any
    41  net operating loss deduction for the combined group. The combined  capi-
    42  tal  base  is  the  amount of the combined capital of the combined group
    43  that is apportioned to the state.
    44    (i) A net  operating  loss  deduction  is  allowed  in  computing  the
    45  combined  business income base. Such deduction may reduce the tax on the
    46  combined business income base to the higher of the tax on  the  combined
    47  capital  base or the fixed dollar minimum amount that is attributable to
    48  the designated agent of the combined group.  A  combined  net  operating
    49  loss  deduction is equal to the amount of combined net operating loss or
    50  losses from one or more  taxable  years  that  are  carried  forward  or
    51  carried back to a particular [income] taxable year. A combined net oper-
    52  ating  loss is the combined business loss incurred in a particular taxa-
    53  ble year multiplied by the combined apportionment factor for  that  year
    54  determined as provided in subdivision five of this section.
    55    (ii)  The combined net operating loss deduction and combined net oper-
    56  ating loss are also subject to the provisions contained in  clauses  one

        S. 2009--B                         58                         A. 3009--B
 
     1  through [six] seven of subparagraph (ix) of paragraph (a) of subdivision
     2  one of section two hundred ten of this article.
     3    (d-1)  A prior net operating loss conversion subtraction is allowed in
     4  computing the combined business income base, as provided in subparagraph
     5  (viii) of paragraph (a) of subdivision one of section two hundred ten of
     6  this article. Such subtraction may reduce the tax on the combined  busi-
     7  ness  income  base to the higher of the tax on the combined capital base
     8  or the fixed dollar minimum amount that is attributable  to  the  desig-
     9  nated agent of the combined group.
    10    (e)  (i)  Any  election  made pursuant to paragraph (b) of subdivision
    11  six, [and] paragraphs (b) and (c) of subdivision six-a  of  section  two
    12  hundred  eight, and item (IV) of subclause two of clause (B) of subpara-
    13  graph (viii) and clause seven of subparagraph (ix) of paragraph  (a)  of
    14  subdivision  one  of section two hundred ten of this article shall apply
    15  to all members of the combined group.
    16    (ii) The determination of whether or not the limitation on  investment
    17  income  provided  in  subparagraph (iii) of paragraph (a) of subdivision
    18  six of section two hundred eight of this article applies to the combined
    19  group shall be based on the investment income  of  the  combined  group,
    20  determined  without  regard to interest expenses attributable to invest-
    21  ment capital or investment income, and the  entire  net  income  of  the
    22  combined group.
    23    7.  Designated  agent.  Each  combined group shall have one designated
    24  agent for the combined group, which shall be a taxpayer. [The designated
    25  agent is the parent corporation of the combined group. If  there  is  no
    26  such  parent  corporation,  or the parent corporation is not a taxpayer,
    27  then another member of the combined group that  is  a  taxpayer  may  be
    28  appointed as the designated agent.] Only the designated agent may act on
    29  behalf  of the members of the combined group for matters relating to the
    30  combined report.
    31    § 33-a. Paragraph (b) of subdivision 3 of section  210-C  of  the  tax
    32  law, as added by section 18 of part A of chapter 59 of the laws of 2014,
    33  is amended to read as follows:
    34    (b)  The election under this subdivision shall be made on an original,
    35  timely filed return of the combined group , determined  with  regard  to
    36  extensions of time for filing. Any corporation entering a commonly owned
    37  group  subsequent  to  the  year  of  election  shall be included in the
    38  combined group and is considered to have waived  any  objection  to  its
    39  inclusion in the combined group.
    40    §  34. Paragraph 1 of subdivision (c) of section 40 of the tax law, as
    41  added by section 4 of part A of chapter 68  of  the  laws  of  2013,  is
    42  amended to read as follows:
    43    (1)  ascertaining  the  percentage that the average value of the busi-
    44  ness's real and tangible personal property, whether owned or  rented  to
    45  it, in the tax-free NY area in which the business was located during the
    46  period  covered  by the taxpayer's report or return bears to the average
    47  value of the business's real and  tangible  personal  property,  whether
    48  owned  or  rented  to  it, within the state during such period; provided
    49  that the term "value of the business's real and tangible personal  prop-
    50  erty"  shall have the same meaning as such term has in [subparagraph one
    51  of] paragraph (a) of subdivision [three] two  of  section  [two  hundred
    52  ten] two hundred nine-B of this chapter; and
    53    §  35.  Clause  (ii) of subparagraph (B) of paragraph 2 of subdivision
    54  (d) of section 40 of the tax law, as added by section 4  of  part  A  of
    55  chapter 68 of the laws of 2013, is amended to read as follows:

        S. 2009--B                         59                         A. 3009--B
 
     1    (ii)  For  purposes of article nine-A of this chapter, the term "part-
     2  ner's income from the partnership" means partnership  items  of  income,
     3  gain,  loss  and deduction, and New York modifications thereto, entering
     4  into [entire net] business income [or minimum taxable  income]  and  the
     5  term  "partner's  entire  income" means [entire net] business income [or
     6  minimum taxable income], allocated within the  state.  For  purposes  of
     7  article  twenty-two of this chapter, the term "partner's income from the
     8  partnership"  means  partnership  items  of  income,  gain,   loss   and
     9  deduction,  and  New  York modifications thereto, entering into New York
    10  adjusted gross income, and the term "partner's entire income" means  New
    11  York adjusted gross income.
    12    § 36. Subparagraph (C) of paragraph 2 of subdivision (d) of section 40
    13  of  the  tax  law,  as added by section 4 of part A of chapter 68 of the
    14  laws of 2013, is amended to read as follows:
    15    (C) (i) Where the taxpayer is a shareholder of a  New  York  S  corpo-
    16  ration  that is a business located in a tax-free NY area, the sharehold-
    17  er's tax factor shall be that portion of the amount determined in  para-
    18  graph  one of this subdivision that is attributable to the income of the
    19  S corporation. Such attribution shall be made  in  accordance  with  the
    20  ratio of the shareholder's income from the S corporation allocated with-
    21  in  the  state,  entering  into  New  York adjusted gross income, to the
    22  shareholder's New York adjusted gross income, or in accordance with such
    23  other methods as the commissioner may prescribe as providing  an  appor-
    24  tionment  that  reasonably reflects the portion of the shareholder's tax
    25  attributable to the income of such business. The income of the S  corpo-
    26  ration allocated within the state shall be determined by multiplying the
    27  income  of  the  S  corporation  by  [the]  a business allocation factor
    28  [computed under paragraph  (a)  of  subdivision  three  of  section  two
    29  hundred  ten  of this article without regard to subparagraph ten of such
    30  paragraph (a)] that shall be determined in clause (ii) of this  subpara-
    31  graph. In no event may the ratio so determined exceed 1.0.
    32    (ii)  The business allocation factor for purposes of this subparagraph
    33  shall be computed by adding together the property  factor  specified  in
    34  subclause  (I)  of  this  clause, the wage factor specified in subclause
    35  (II) of this  clause  and  the  apportionment  factor  determined  under
    36  section two hundred ten-A of this chapter and dividing by three.
    37    (I)  The  property  factor  shall  be  determined  by ascertaining the
    38  percentage that the average value of the business's  real  and  tangible
    39  personal  property,  whether  owned  or  rented  to it, within the state
    40  during the period covered by the taxpayer's report or  return  bears  to
    41  the average value of the business's real and tangible personal property,
    42  whether  owned or rented to it, within and without the state during such
    43  period; provided that the term "value of the business's real and  tangi-
    44  ble  personal  property" shall have the same meaning as such term has in
    45  paragraph (a) of subdivision two of section two hundred nine-B  of  this
    46  chapter.
    47    (II)  The wage factor shall be determined by ascertaining the percent-
    48  age that the total wages, salaries and other  personal  service  compen-
    49  sation,  similarly  computed,  during  such  period of employees, except
    50  general executive officers,  employed  at  the  business's  location  or
    51  locations within the state, bears to the total wages, salaries and other
    52  personal  service  compensation, similarly computed, during such period,
    53  of all the business's employees within and  without  the  state,  except
    54  general executive officers.

        S. 2009--B                         60                         A. 3009--B
 
     1    § 37. Subparagraph (B) of paragraph 3 of subdivision (d) of section 40
     2  of  the  tax  law,  as added by section 4 of part A of chapter 68 of the
     3  laws of 2013, is amended to read as follows:
     4    (B)  The  term  "income of the business located in a tax-free NY area"
     5  means [entire net] business income [or minimum  taxable  income]  calcu-
     6  lated  as  if  the taxpayer was filing separately and the term "combined
     7  group's income" means [entire net] business income [or  minimum  taxable
     8  income] as shown on the combined report, allocated within the state.
     9    §  38. Paragraph 1 of subdivision (e) of section 40 of the tax law, as
    10  added by section 4 of part A of chapter 68  of  the  laws  of  2013,  is
    11  amended to read as follows:
    12    (1) Article 9-A: section [210] 210-B, subdivision [47] 41.
    13    §  39. Paragraph 1 of subsection (i) of section 660 of the tax law, as
    14  amended by section 74 of part A of chapter 59 of the laws  of  2014,  is
    15  amended to read as follows:
    16    (1)  Notwithstanding the provisions in subsection (a) of this section,
    17  in the case of an eligible S corporation for which  the  election  under
    18  subsection  (a) of this section is not in effect for the current taxable
    19  year, the shareholders of an eligible S corporation are deemed  to  have
    20  made  that  election  effective  for the eligible S corporation's entire
    21  current taxable year, if the eligible S corporation's investment  income
    22  for  the  current taxable year is more than fifty percent of its federal
    23  gross income for such year. In determining whether an eligible S [corpo-
    24  ration's investment income] corporation is  deemed  to  have  made  that
    25  election, the [investment] income of a qualified subchapter S subsidiary
    26  owned  directly  or  indirectly  by  the eligible S corporation shall be
    27  included with the income of the eligible S corporation.
    28    § 40. Subdivision 41 of section 210-B of the  tax  law,  as  added  by
    29  section  17  of  part A of chapter 59 of the laws of 2014, is amended to
    30  read as follows:
    31    41. The tax-free NY area tax elimination credit. A taxpayer  shall  be
    32  allowed  a  credit  to  be computed as provided in section forty of this
    33  chapter, against the tax imposed by this article.  Unless  the  taxpayer
    34  has  a  tax-free  NY  area allocation factor of one hundred percent, the
    35  credit allowed under this subdivision for any  taxable  year  shall  not
    36  reduce  the  tax due for such year to less than the amount prescribed in
    37  paragraph (d) of subdivision one of section  two  hundred  ten  of  this
    38  article.  However,  if  the  amount  of  the credit allowable under this
    39  subdivision for any taxable year reduces the tax to such  amount  or  if
    40  the  taxpayer  otherwise  pays  tax  based  on  the fixed dollar minimum
    41  amount, any amount of credit not deductible in such taxable  year  shall
    42  be  treated  as  an  overpayment  of  tax  to be credited or refunded in
    43  accordance with the provisions of section  one  thousand  eighty-six  of
    44  this  chapter.  Provided,  however,  the provisions of subsection (c) of
    45  section one thousand eighty-eight of this  chapter  notwithstanding,  no
    46  interest shall be paid thereon.
    47    §  41.  Subdivision  44  of  section 210-B of the tax law, as added by
    48  section 17 of part A of chapter 59 of the laws of 2014,  is  amended  to
    49  read as follows:
    50    44.  The  tax-free  NY  area  excise tax on telecommunication services
    51  credit. A taxpayer that is a business or owner of  a  business  that  is
    52  located in a tax-free NY area approved pursuant to article twenty-one of
    53  the  economic  development  law  shall  be allowed a credit equal to the
    54  excise tax on telecommunication services imposed by section one  hundred
    55  eighty-six-e  of this chapter and passed through to such business during
    56  the taxable year to the  extent  not  otherwise  deducted  in  computing

        S. 2009--B                         61                         A. 3009--B
 
     1  entire  net  income  under  this  article.  However, except as otherwise
     2  provided for in this subdivision, if the amount of the credit  allowable
     3  under  this  subdivision  for  any  taxable  year reduces the tax to the
     4  amount  prescribed  in  paragraph  (d) of subdivision one of section two
     5  hundred ten of this chapter or if the taxpayer otherwise pays tax  based
     6  on  the fixed dollar minimum amount, any amount of credit not deductible
     7  in such taxable year shall be treated as an overpayment  of  tax  to  be
     8  credited  or  refunded  in accordance with the provisions of section one
     9  thousand eighty-six of this chapter. This credit  may  be  claimed  only
    10  where  any tax imposed by such section one hundred eighty-six-e has been
    11  separately stated on a  bill  from  the  provider  of  telecommunication
    12  services  and  paid  by  such  business  with  respect  to such services
    13  rendered within a tax-free NY area during the taxable year.  Unless  the
    14  taxpayer  has  a  tax-free  NY  area  allocation  factor  of one hundred
    15  percent, the credit allowed under this subdivision for any taxable  year
    16  shall  not  reduce  the  tax  due  for such year to less than the amount
    17  prescribed in paragraph (d) of subdivision one of  section  two  hundred
    18  ten of this chapter. Provided, however, the provisions of subsection (c)
    19  of section one thousand eighty-eight of this chapter notwithstanding, no
    20  interest shall be paid thereon.
    21    § 42. Paragraph (b) of subdivision 47 of section 210-B of the tax law,
    22  as  added  by section 2 of part HH of chapter 59 of the laws of 2014, is
    23  amended to read as follows:
    24    (b) Application of credit. The credit allowed under  this  subdivision
    25  for  any taxable year shall not reduce the tax due for such year to less
    26  than the amount prescribed in paragraph (d) of subdivision one of [this]
    27  section two hundred ten of this article.  Provided, however, that if the
    28  amount of the credit allowable under this subdivision  for  any  taxable
    29  year  reduces  the  tax to such amount or if the taxpayer otherwise pays
    30  tax based on the fixed dollar minimum amount, the excess shall be treat-
    31  ed as an overpayment of tax to be credited  or  refunded  in  accordance
    32  with  the provisions of section one thousand eighty-six of this chapter.
    33  Provided, further, the provisions of subsection (c) of section one thou-
    34  sand eighty-eight of this chapter notwithstanding, no interest shall  be
    35  paid thereon.
    36    § 43. Paragraph (b) of subdivision 48 of section 210-B of the tax law,
    37  as  added  by section 2 of part MM of chapter 59 of the laws of 2014, is
    38  amended to read as follows:
    39    (b) Carryover. The credit allowed under this subdivision for any taxa-
    40  ble year shall not reduce the tax due for such year  to  less  than  the
    41  amount  prescribed in paragraph (d) of subdivision one of [this] section
    42  two hundred ten of this article. However, if the amount of credit allow-
    43  able under this subdivision for any taxable year reduces the tax to such
    44  amount or if the taxpayer otherwise pays tax based on the  fixed  dollar
    45  minimum amount, any amount of credit not deductible in such taxable year
    46  may  be  carried  over to the following three years, and may be deducted
    47  from the qualified employer's tax for such years.
    48    § 44. This act shall take effect immediately and shall be deemed to be
    49  in full force and effect on the same date as part A of chapter 59 of the
    50  laws of 2014, provided, however, that the amendments to paragraph (b) of
    51  subdivision 47 and paragraph (b) of subdivision 48 of section  210-B  of
    52  the tax law made by sections forty-two and forty-three of this act shall
    53  not affect the repeal of such subdivisions and shall be deemed to repeal
    54  therewith.
 
    55                                   PART U

        S. 2009--B                         62                         A. 3009--B
 
     1    Section  1. Paragraph 33 of subdivision (a) of section 1115 of the tax
     2  law, as added by section 99 of part A of chapter  389  of  the  laws  of
     3  1997, is amended to read as follows:
     4    (33)  Wine  or  wine product, and the bottles, corks, caps, and labels
     5  used to package such wine or wine product,  furnished  by  the  official
     6  agent  of a farm winery, winery, wholesaler, or importer at a wine tast-
     7  ing held in accordance with [section eighty of] the  alcoholic  beverage
     8  control law to a customer or prospective customer who consumes such wine
     9  at such wine tasting.
    10    §  2.  Section 1118 of the tax law is amended by adding a new subdivi-
    11  sion (13) to read as follows:
    12    (13) In respect to the use of the following items at a tasting held by
    13  a licensed brewery, farm brewery, cider producer, farm  cidery,  distil-
    14  lery  or  farm  distillery  in  accordance  with  the alcoholic beverage
    15  control law:  (i) the alcoholic beverage or beverages authorized by  the
    16  alcoholic beverage control law to be furnished at no charge to a custom-
    17  er or prospective customer at such tasting for consumption at such tast-
    18  ing; and (ii) bottles, corks, caps and labels used to package such alco-
    19  holic beverages.
    20    §  3.  This  act  shall  take  effect  immediately, provided, however,
    21  section two of this act shall take effect June 1, 2015 and  shall  apply
    22  in accordance with the transition provisions of section 1106 and 1217 of
    23  the tax law.
 
    24                                   PART V
 
    25    Section  1. Paragraph 22 of subdivision (b) of section 1101 of the tax
    26  law, as amended by chapter 651 of the laws of 1999, is amended  to  read
    27  as follows:
    28    (22) (A) "Prepaid telephone calling service" means the right to exclu-
    29  sively  purchase  telecommunication  services,  that must be paid for in
    30  advance and enable the origination of one or more intrastate, interstate
    31  or international telephone calls using an access number (such as a  toll
    32  free  network access number) and/or authorization code, whether manually
    33  or electronically dialed, for which payment to a vendor must be made  in
    34  advance, whether or not that right is represented by the transfer by the
    35  vendor  to  the purchaser of an item of tangible personal property. Such
    36  term, except with respect to the tax  imposed  by  section  one  hundred
    37  eighty-six-e  of article nine of this chapter, includes a prepaid mobile
    38  calling service. In no event shall a credit card  constitute  a  prepaid
    39  telephone  calling  service.  If the sale or recharge of a prepaid tele-
    40  phone calling service does not take place at the vendor's place of busi-
    41  ness, it shall be conclusively determined to take place at the  purchas-
    42  er's  shipping  address  or,  if  there  is  no  item  shipped,  at  the
    43  purchaser's billing address or the location associated with the purchas-
    44  er's mobile telephone number, or,  if  the  vendor  does  not  have  the
    45  address  or the location associated with the customer's mobile telephone
    46  number, at such address, as approved by the commissioner,  that  reason-
    47  ably  reflects  the  customer's  location  at  the  time  of the sale or
    48  recharge.
    49    (B) "Prepaid mobile calling service" means the right to use a  commer-
    50  cial  mobile  radio  service, whether or not sold with other property or
    51  services, that must be paid for in advance and is sold for  use  over  a
    52  specified  period  of  time  or  in  predetermined units or dollars that
    53  decline with use in a known amount, whether or not that right is repres-

        S. 2009--B                         63                         A. 3009--B
 
     1  ented by or includes the transfer to the purchaser of an item of  tangi-
     2  ble personal property.
     3    § 2. This act shall take effect immediately.
 
     4                                   PART W
 
     5                            Intentionally Omitted
 
     6                                   PART X
 
     7                            Intentionally Omitted
 
     8                                   PART Y
 
     9                            Intentionally Omitted
 
    10                                   PART Z
 
    11    Section  1.  Subdivision (ee) of section 1115 of the tax law, as added
    12  by chapter 306 of the laws of 2005, is amended to read as follows:
    13    (ee) The following shall be exempt from tax under  this  article:  (1)
    14  Receipts  from the retail sale of, and consideration given or contracted
    15  to be given for, or for the use of,  residential  solar  energy  systems
    16  equipment  and  [of]  the  service  of installing such systems [shall be
    17  exempt from tax under this article]. For the purposes of  this  subdivi-
    18  sion,  "residential  solar  energy  systems  equipment"  shall  mean  an
    19  arrangement or combination of components installed in a  residence  that
    20  utilizes  solar radiation to produce energy designed to provide heating,
    21  cooling, hot water and/or electricity. Such  arrangement  or  components
    22  shall not include equipment that is part of a non-solar energy system or
    23  which  uses  any sort of recreational facility or equipment as a storage
    24  medium.
    25    (2) Receipts from the  sale  of  electricity  by  a  person  primarily
    26  engaged  in the sale of solar energy system equipment and/or electricity
    27  generated by such equipment pursuant to a written agreement under  which
    28  such  electricity is generated by residential solar energy system equip-
    29  ment that is: (A) owned by a person other than  the  purchaser  of  such
    30  electricity;  (B)  installed on residential property of the purchaser of
    31  such electricity; and (C) used to provide heating, cooling, hot water or
    32  electricity to such property.
    33    § 2. Subdivision (ii) of section 1115 of the tax law,  as  amended  by
    34  chapter 13 of the laws of 2013, is amended to read as follows:
    35    (ii)  The  following  shall be exempt from tax under this article: (1)
    36  Receipts from the retail sale of, and consideration given or  contracted
    37  to  be  given  for,  or  for the use of, commercial solar energy systems
    38  equipment and [of] the service of  installing  such  systems  [shall  be
    39  exempt  from  taxes  imposed  by sections eleven hundred five and eleven
    40  hundred ten of this article]. For  the  purposes  of  this  subdivision,
    41  "commercial solar energy systems equipment" shall mean an arrangement or
    42  combination  of  components installed upon non-residential premises that
    43  utilize solar radiation to produce energy designed to  provide  heating,
    44  cooling,  hot  water  and/or electricity. Such arrangement or components
    45  shall not include equipment that is part of a non-solar energy system.

        S. 2009--B                         64                         A. 3009--B
 
     1    (2) Receipts from the  sale  of  electricity  by  a  person  primarily
     2  engaged  in the sale of solar energy system equipment and/or electricity
     3  generated by such equipment pursuant to a written agreement under  which
     4  the electricity is generated by commercial solar energy system equipment
     5  that  is:  (A)  owned by a person other than the purchaser of such elec-
     6  tricity; (B) installed on the non-residential premises of the  purchaser
     7  of such electricity; and (C) used to provide heating, cooling, hot water
     8  or electricity to such premises.
     9    §  3. Paragraphs 1 and 4 of subdivision (a) of section 1210 of the tax
    10  law, paragraph 1 as amended by chapter 13 of the laws of 2013, and para-
    11  graph 4 as amended by chapter 200 of the laws of 2009,  are  amended  to
    12  read as follows:
    13    (1) Either, all of the taxes described in article twenty-eight of this
    14  chapter,  at  the same uniform rate, as to which taxes all provisions of
    15  the local laws, ordinances or resolutions imposing such taxes  shall  be
    16  identical,  except as to rate and except as otherwise provided, with the
    17  corresponding provisions in such  article  twenty-eight,  including  the
    18  definition  and  exemption  provisions  of  such  article, so far as the
    19  provisions of such article twenty-eight can be made  applicable  to  the
    20  taxes  imposed  by  such  city  or  county and with such limitations and
    21  special provisions as are set forth in this article. The  taxes  author-
    22  ized  under  this  subdivision  may  not  be imposed by a city or county
    23  unless the local law, ordinance or resolution imposes such taxes  so  as
    24  to  include  all  portions  and all types of receipts, charges or rents,
    25  subject to state tax under  sections  eleven  hundred  five  and  eleven
    26  hundred ten of this chapter, except as otherwise provided. (i) Any local
    27  law,  ordinance  or  resolution  enacted  by  any  city of less than one
    28  million or by any county or school district, imposing the taxes  author-
    29  ized by this subdivision, shall, notwithstanding any provision of law to
    30  the  contrary,  exclude from the operation of such local taxes all sales
    31  of tangible personal  property  for  use  or  consumption  directly  and
    32  predominantly  in  the  production  of  tangible personal property, gas,
    33  electricity, refrigeration or steam, for sale, by  manufacturing,  proc-
    34  essing,  generating,  assembly,  refining, mining or extracting; and all
    35  sales of tangible personal property for use or consumption predominantly
    36  either in the production of tangible personal  property,  for  sale,  by
    37  farming  or  in  a commercial horse boarding operation, or in both; and,
    38  unless such city, county or school district elects otherwise, shall omit
    39  the provision for credit or refund contained in clause six  of  subdivi-
    40  sion  (a)  or subdivision (d) of section eleven hundred nineteen of this
    41  chapter. (ii) Any local law, ordinance  or  resolution  enacted  by  any
    42  city,  county  or school district, imposing the taxes authorized by this
    43  subdivision, shall omit the residential solar energy  systems  equipment
    44  and  electricity exemption provided for in subdivision (ee), the commer-
    45  cial solar energy systems equipment and electricity  exemption  provided
    46  for in subdivision (ii) and the clothing and footwear exemption provided
    47  for  in  paragraph  thirty  of subdivision (a) of section eleven hundred
    48  fifteen of this chapter, unless such city,  county  or  school  district
    49  elects  otherwise  as  to  either  such residential solar energy systems
    50  equipment  and  electricity  exemption,  such  commercial  solar  energy
    51  systems  equipment  and electricity exemption or such clothing and foot-
    52  wear exemption.
    53    (4) Notwithstanding any other provision of law to  the  contrary,  any
    54  local  law  enacted  by any city of one million or more that imposes the
    55  taxes authorized by this subdivision (i) may omit the exception provided
    56  in subparagraph (ii) of paragraph three of subdivision  (c)  of  section

        S. 2009--B                         65                         A. 3009--B
 
     1  eleven  hundred  five of this chapter for receipts from laundering, dry-
     2  cleaning, tailoring, weaving, pressing, shoe repairing and shoe shining;
     3  (ii) may impose the tax described in paragraph six of subdivision (c) of
     4  section eleven hundred five of this chapter at a rate in addition to the
     5  rate  prescribed  by this section not to exceed two percent in multiples
     6  of one-half of one percent; (iii) shall provide that the  tax  described
     7  in  paragraph  six  of subdivision (c) of section eleven hundred five of
     8  this chapter does not apply to facilities owned and operated by the city
     9  or an agency or instrumentality of the city or a public corporation  the
    10  majority  of  whose members are appointed by the chief executive officer
    11  of the city or the legislative body of the city or both  of  them;  (iv)
    12  shall  not include any tax on receipts from, or the use of, the services
    13  described in paragraph  seven  of  subdivision  (c)  of  section  eleven
    14  hundred  five  of  this chapter; (v) shall provide that, for purposes of
    15  the tax described in subdivision (e) of section eleven hundred  five  of
    16  this  chapter,  "permanent  resident"  means any occupant of any room or
    17  rooms in a hotel for at least one hundred eighty consecutive  days  with
    18  regard  to  the  period  of  such occupancy; (vi) may omit the exception
    19  provided in paragraph one of subdivision (f) of section  eleven  hundred
    20  five  of  this  chapter for charges to a patron for admission to, or use
    21  of, facilities for sporting activities in which the patron is  to  be  a
    22  participant,  such  as  bowling  alleys  and  swimming  pools; (vii) may
    23  provide the clothing and  footwear  exemption  in  paragraph  thirty  of
    24  subdivision  (a) of section eleven hundred fifteen of this chapter, and,
    25  notwithstanding any provision of subdivision (d) of this section to  the
    26  contrary,  any  local law providing for such exemption or repealing such
    27  exemption, may go into effect on any one of the following  dates:  March
    28  first,  June first, September first or December first; (viii) shall omit
    29  the exemption provided in paragraph  forty-one  of  subdivision  (a)  of
    30  section  eleven  hundred  fifteen  of  this chapter; (ix) shall omit the
    31  exemption provided in subdivision (c) of section eleven hundred  fifteen
    32  of this chapter insofar as it applies to fuel, gas, electricity, refrig-
    33  eration and steam, and gas, electric, refrigeration and steam service of
    34  whatever  nature  for use or consumption directly and exclusively in the
    35  production of gas, electricity, refrigeration or steam; (x) shall  omit,
    36  unless  such  city  elects otherwise, the provision for refund or credit
    37  contained in clause six of subdivision (a)  or  in  subdivision  (d)  of
    38  section  eleven  hundred  nineteen  of  this  chapter;  [and] (xi) shall
    39  provide that section eleven hundred five-C  of  this  chapter  does  not
    40  apply  to such taxes, and shall tax receipts from every sale, other than
    41  sales for resale, of gas service or electric service of whatever nature,
    42  including the transportation, transmission or  distribution  of  gas  or
    43  electricity,  even  if  sold separately, at the rate set forth in clause
    44  one of subparagraph (i) of the opening paragraph of this section;  (xii)
    45  shall  omit,  unless such city elects otherwise, the exemption for resi-
    46  dential solar energy  systems  equipment  and  electricity  provided  in
    47  subdivision  (ee) of section eleven hundred fifteen of this chapter; and
    48  (xiii) shall omit, unless such city elects otherwise, the exemption  for
    49  commercial  solar  energy  systems equipment and electricity provided in
    50  subdivision (ii) of section eleven hundred fifteen of this chapter.  Any
    51  reference  in  this chapter or in any local law, ordinance or resolution
    52  enacted pursuant to the authority of this article to former subdivisions
    53  (n) or (p) of this section shall be deemed to be a reference to  clauses
    54  (xii) or (xiii) of this paragraph, respectively, and any such local law,
    55  ordinance  or  resolution  that provides the exemptions provided in such
    56  former subdivisions (n) and/or (p) shall be deemed  instead  to  provide

        S. 2009--B                         66                         A. 3009--B
 
     1  the   exemptions  provided  in  clauses  (xii)  and/or  (xiii)  of  this
     2  paragraph.
     3    §  4.  Paragraph  1 and subparagraph (i) of paragraph 3 of subdivision
     4  (b) of section 1210 of the tax law, paragraph 1 as amended by section 36
     5  of part S-1 of chapter 57 of the laws of 2009, and subparagraph  (i)  of
     6  paragraph  3 as amended by section 3 of part B of chapter 35 of the laws
     7  of 2006, are amended to read as follows:
     8    (1) Or, one or more of the taxes described in subdivisions  (b),  (d),
     9  (e)  and (f) of section eleven hundred five of this chapter, at the same
    10  uniform rate, including the transitional provisions  in  section  eleven
    11  hundred  six  of  this  chapter  covering  such taxes, but not the taxes
    12  described in subdivisions (a) and (c) of section eleven hundred five  of
    13  this  chapter. Provided, further, that where the tax described in subdi-
    14  vision (b) of section eleven hundred five of this  chapter  is  imposed,
    15  the  compensating  use  taxes  described  in clauses (E), (G) and (H) of
    16  subdivision (a) of section eleven hundred ten of this chapter shall also
    17  be imposed. Provided, further, that where the taxes described in  subdi-
    18  vision  (b) of section eleven hundred five are imposed, such taxes shall
    19  omit: (A) the provision for refund or credit  contained  in  subdivision
    20  (d)  of  section eleven hundred nineteen of this chapter with respect to
    21  such taxes described in such subdivision (b) of section  eleven  hundred
    22  five  unless such city or county elects to provide such provision or, if
    23  so elected, to repeal such provision;  (B)  the  exemption  provided  in
    24  paragraph  two  of subdivision (ee) of section eleven hundred fifteen of
    25  this chapter unless such county or city elects otherwise;  and  (C)  the
    26  exemption provided in paragraph two of subdivision (ii) of section elev-
    27  en  hundred  fifteen  of this chapter, unless such county or city elects
    28  otherwise.
    29    (i) Notwithstanding any other provision of law to the contrary but not
    30  with respect to cities subject  to  the  provisions  of  section  eleven
    31  hundred eight of this chapter, any city or county, except a county whol-
    32  ly  contained  within a city, may provide that the tax imposed, pursuant
    33  to this subdivision, by such city or county on the sale, other than  for
    34  resale,  of  propane  (except  when  sold in containers of less than one
    35  hundred pounds), natural gas, electricity, steam and gas,  electric  and
    36  steam  services  of whatever nature used for residential purposes and on
    37  the use of gas or electricity  used  for  residential  purposes  may  be
    38  imposed  at a lower rate than the uniform local rate imposed pursuant to
    39  the opening paragraph of this section, as long as such rate  is  one  of
    40  the  rates  authorized  by  such  paragraph  or  such sale or use may be
    41  exempted from such taxes. Provided, however, such lower rate must  apply
    42  to all such energy sources and services and at the same rate and no such
    43  exemption,  other than the exemption provided for in subdivision (ee) of
    44  section eleven hundred fifteen of this chapter,  if  such  exemption  is
    45  elected  by  such  city  or county, may be enacted unless such exemption
    46  applies to all such energy sources and services.
    47    § 4-a. Subdivision (d) of section 1210 of the tax law, as  amended  by
    48  section  37 of part S-1 of chapter 57 of the laws of 2009, is amended to
    49  read as follows:
    50    (d) A local law, ordinance or resolution imposing any tax pursuant  to
    51  this  section,  increasing or decreasing the rate of such tax, repealing
    52  or suspending such tax, exempting from such tax the energy  sources  and
    53  services  described in paragraph three of subdivision (a) or of subdivi-
    54  sion (b) of this section or changing the rate of  tax  imposed  on  such
    55  energy  sources  and  services  or  providing  for  the credit or refund
    56  described in clause six of subdivision (a)  of  section  eleven  hundred

        S. 2009--B                         67                         A. 3009--B
 
     1  nineteen  of  this  chapter,  or electing or repealing the exemption for
     2  residential solar equipment  and  electricity  in  subdivision  (ee)  of
     3  section  eleven  hundred  fifteen  of this article, or the exemption for
     4  commercial  solar  equipment  and  electricity  in  subdivision  (ii) of
     5  section eleven hundred fifteen of this article must go into effect  only
     6  on  one of the following dates: March first, June first, September first
     7  or December first; provided, that a local law, ordinance  or  resolution
     8  providing for the exemption described in paragraph thirty of subdivision
     9  (a)  of  section eleven hundred fifteen of this chapter or repealing any
    10  such exemption or a local law, ordinance or resolution providing  for  a
    11  refund  or credit described in subdivision (d) of section eleven hundred
    12  nineteen of this chapter or repealing such provision so provided must go
    13  into effect only on March first. No such local law, ordinance or  resol-
    14  ution  shall be effective unless a certified copy of such law, ordinance
    15  or resolution is mailed by registered or certified mail to  the  commis-
    16  sioner at the commissioner's office in Albany at least ninety days prior
    17  to  the  date  it  is to become effective. However, the commissioner may
    18  waive and reduce such ninety-day minimum notice requirement to a mailing
    19  of such certified copy by registered or certified mail within  a  period
    20  of not less than thirty days prior to such effective date if the commis-
    21  sioner deems such action to be consistent with the commissioner's duties
    22  under  section twelve hundred fifty of this article and the commissioner
    23  acts by resolution. Where the restriction provided for in section twelve
    24  hundred twenty-three of this article as to the effective date of  a  tax
    25  and  the notice requirement provided for therein are applicable and have
    26  not been waived, the  restriction  and  notice  requirement  in  section
    27  twelve hundred twenty-three of this article shall also apply.
    28    §  5.  Subdivisions  (n)  and  (p)  of section 1210 of the tax law are
    29  REPEALED.
    30    § 6. Subdivision (a) of section 1212 of the tax  law,  as  amended  by
    31  section  40 of part S-1 of chapter 57 of the laws of 2009, is amended to
    32  read as follows:
    33    (a) Any school district which is coterminous with,  partly  within  or
    34  wholly  within a city having a population of less than one hundred twen-
    35  ty-five thousand, is hereby authorized and empowered, by  majority  vote
    36  of  the  whole  number  of  its school authorities, to impose for school
    37  district purposes, within the territorial limits of such school district
    38  and without discrimination between residents and  nonresidents  thereof,
    39  the  taxes  described  in subdivision (b) of section eleven hundred five
    40  (but excluding the tax on prepaid telephone calling  services)  and  the
    41  taxes  described  in  clauses  (E) and (H) of subdivision (a) of section
    42  eleven hundred ten, including the transitional provisions in subdivision
    43  (b) of section eleven hundred six  of  this  chapter,  so  far  as  such
    44  provisions  can  be  made applicable to the taxes imposed by such school
    45  district and with such limitations and special  provisions  as  are  set
    46  forth in this article, such taxes to be imposed at the rate of one-half,
    47  one, one and one-half, two, two and one-half or three percent which rate
    48  shall  be  uniform  for  all portions and all types of receipts and uses
    49  subject to such taxes. In respect to such taxes, all provisions  of  the
    50  resolution  imposing  them,  except  as  to rate and except as otherwise
    51  provided herein, shall be identical with the corresponding provisions in
    52  such article twenty-eight of  this  chapter,  including  the  applicable
    53  definition  and  exemption  provisions  of  such  article, so far as the
    54  provisions of such article twenty-eight of  this  chapter  can  be  made
    55  applicable  to  the  taxes imposed by such school district and with such
    56  limitations and special provisions as are set forth in this article. The

        S. 2009--B                         68                         A. 3009--B
 
     1  taxes described in subdivision (b) of section eleven hundred  five  (but
     2  excluding  the tax on prepaid telephone calling service) and clauses (E)
     3  and (H) of subdivision (a) of section eleven hundred ten, including  the
     4  transitional provision in subdivision (b) of such section eleven hundred
     5  six  of  this chapter, may not be imposed by such school district unless
     6  the resolution imposes such taxes so as to include all portions and  all
     7  types  of  receipts  and uses subject to tax under such subdivision (but
     8  excluding the tax on prepaid telephone  calling  service)  and  clauses.
     9  Provided,  however,  that,  where  a school district imposes such taxes,
    10  such taxes shall omit the provision for refund or  credit  contained  in
    11  subdivision  (d) of section eleven hundred nineteen of this chapter with
    12  respect to such taxes described in such subdivision (b) of section elev-
    13  en hundred five unless such  school  district  elects  to  provide  such
    14  provision  or,  if  so elected, to repeal such provision, and shall omit
    15  the exemptions provided in paragraph two of subdivision (ee)  and  para-
    16  graph  two of subdivision (ii) of section eleven hundred fifteen of this
    17  chapter unless such school district elects otherwise.
    18    § 7. Section 1224 of the tax law is amended by adding a  new  subdivi-
    19  sion (c-1) to read as follows:
    20    (c-1)  Notwithstanding  any other provision of law: (1) Where a county
    21  containing one or more cities with a population of less than one million
    22  has elected the exemption for residential solar energy systems equipment
    23  and electricity provided in subdivision (ee) of section  eleven  hundred
    24  fifteen  of  this  chapter,  the  exemption  for commercial solar energy
    25  systems equipment and electricity provided in subdivision (ii)  of  such
    26  section  eleven  hundred fifteen, or both such exemptions, a city within
    27  such county shall have the prior right to  impose  tax  on  such  exempt
    28  equipment  and/or  electricity  to the extent of one half of the maximum
    29  rates authorized under subdivision (a) of section twelve hundred ten  of
    30  this article;
    31    (2)  Where  a  city of less than one million has elected the exemption
    32  for residential solar energy systems equipment and electricity  provided
    33  in  subdivision  (ee) of section eleven hundred fifteen of this chapter,
    34  the exemption for commercial solar energy systems  equipment  and  elec-
    35  tricity  provided  in  subdivision  (ii)  of such section eleven hundred
    36  fifteen, or both such exemptions, the  county  in  which  such  city  is
    37  located  shall  have the prior right to impose tax on such exempt equip-
    38  ment and/or electricity to the extent of one half of the  maximum  rates
    39  authorized  under  subdivision (a) of section twelve hundred ten of this
    40  article.
    41    § 8. This act shall take effect December 1, 2015 and  shall  apply  in
    42  accordance  with the applicable transitional provisions in sections 1106
    43  and 1217 of the tax law.
 
    44                                   PART AA
 
    45    Section 1. Subdivision (f) of section 301-c of the tax law, as amended
    46  by section 23 of part K of chapter 61 of the laws of 2011, is amended to
    47  read as follows:
    48    (f) Motor fuel and highway diesel motor fuel used for farm production.
    49  No more than one thousand five hundred gallons of motor fuel and no more
    50  than four thousand five hundred gallons of  highway  diesel  motor  fuel
    51  purchased in this state in a thirty-day period or a greater amount which
    52  has  been  given  prior clearance by the commissioner, by a consumer for
    53  use or consumption directly and exclusively in the production  for  sale
    54  of  tangible personal property by farming, but only if all of such motor

        S. 2009--B                         69                         A. 3009--B
 
     1  fuel or highway diesel motor fuel is delivered on the farm site  and  is
     2  consumed other than on the public highways of this state (except for the
     3  use  of the public highway to reach adjacent farmlands). This reimburse-
     4  ment  to such purchaser who used such motor fuel or highway diesel motor
     5  fuel in the manner specified in this subdivision  may  be  claimed  only
     6  where,  (i)  the tax imposed pursuant to this article has been paid with
     7  respect to such motor fuel or highway diesel motor fuel and  the  entire
     8  amount  of  such  tax has been absorbed by such purchaser, and (ii) such
     9  purchaser possesses documentary proof satisfactory to  the  commissioner
    10  evidencing  the absorption by it of the entire amount of the tax imposed
    11  pursuant to this article. Provided, however, that the commissioner shall
    12  require such documentary proof to qualify for any reimbursement  of  tax
    13  provided  by this subdivision as the commissioner deems appropriate. The
    14  commissioner is hereby empowered  to  make  such  provisions  as  deemed
    15  necessary  to  define  the  procedures  for granting prior clearance for
    16  purchases of more than one thousand five hundred gallons of  motor  fuel
    17  or  four thousand five hundred gallons of highway diesel motor fuel in a
    18  thirty-day period.
    19    § 2. This act shall take effect immediately.
 
    20                                   PART BB
 
    21    Section 1. Subsection (b) of section 952 of the tax law, as amended by
    22  section 2 of part X of chapter 59 of the laws of  2014,  is  amended  to
    23  read as follows:
    24    (b)  Computation  of  tax.  The  tax  imposed by this section shall be
    25  computed on the deceased resident's New York taxable estate as follows:
    26  [In the case of decedents dying on or after April  1,  2014  and  before
    27  April 1, 2015]
    28  If the New York taxable estate is:      The tax is:
    29  Not over $500,000                       3.06% of taxable estate
    30  Over $500,000 but not over $1,000,000   $15,300 plus 5.0% of excess over
    31                                          $500,000
    32  Over $1,000,000 but not over $1,500,000 $40,300 plus 5.5% of excess over
    33                                          $1,000,000
    34  Over $1,500,000 but not over $2,100,000 $67,800 plus 6.5% of excess over
    35                                          $1,500,000
    36  Over $2,100,000 but not over $2,600,000 $106,800 plus 8.0% of excess
    37                                          over $2,100,000
    38  Over $2,600,000 but not over $3,100,000 $146,800 plus 8.8% of excess over
    39                                          $2,600,000
    40  Over $3,100,000 but not over $3,600,000 $190,800 plus 9.6% of excess over
    41                                          $3,100,000
    42  Over $3,600,000 but not over $4,100,000 $238,800 plus 10.4% of excess
    43                                          over $3,600,000
    44  Over $4,100,000 but not over $5,100,000 $290,800 plus 11.2% of excess
    45                                          over $4,100,000
    46  Over $5,100,000 but not over $6,100,000 $402,800 plus 12.0% of excess
    47                                          over $5,100,000
    48  Over $6,100,000 but not over $7,100,000 $522,800 plus 12.8% of excess
    49                                          over $6,100,000
    50  Over $7,100,000 but not over $8,100,000 $650,800 plus 13.6% of excess
    51                                          over $7,100,000
    52  Over $8,100,000 but not over $9,100,000 $786,800 plus 14.4% of excess
    53                                          over $8,100,000
    54  Over $9,100,000 but not over            $930,800 plus 15.2% of excess over

        S. 2009--B                         70                         A. 3009--B
 
     1  $10,100,000                             $9,100,000
     2  Over $10,100,000                        $1,082,800 plus 16.0% of excess
     3                                          over $10,100,000
     4    §  2.  Paragraph 3 of subsection (a) of section 954 of the tax law, as
     5  added by section 3 of part X of chapter 59  of  the  laws  of  2014,  is
     6  amended to read as follows:
     7    (3)  Increased by the amount of any taxable gift under section 2503 of
     8  the internal revenue code  not  otherwise  included  in  the  decedent's
     9  federal  gross  estate,  made during the three year period ending on the
    10  decedent's date of death, but not including any gift made:    [(1)]  (A)
    11  when  the  decedent  was  not a resident of New York state; [(2)] or (B)
    12  before April first, two thousand fourteen[; or (3)]; or (C) that is real
    13  or tangible personal property having an actual situs  outside  New  York
    14  state  at  the time the gift was made. Provided, however that this para-
    15  graph shall not apply to the estate of a decendent  dying  on  or  after
    16  January first, two thousand nineteen.
    17    §  3.  Subsection  (b)  of  section  960 of the tax law, as amended by
    18  section 5 of part X of chapter 59 of the laws of  2014,  is  amended  to
    19  read as follows:
    20    (b) Computation of tax.--The tax imposed under subsection (a) shall be
    21  the  same as the tax that would be due, if the decedent had died a resi-
    22  dent, under subsection (a) of section  nine  hundred  fifty-two,  except
    23  that  for  purposes of computing the tax under subsection (b) of section
    24  nine hundred fifty-two, "New York taxable estate" shall not include  the
    25  value  of,  or  any  deduction allowable under the Internal Revenue Code
    26  related to, any intangible personal property otherwise includible in the
    27  deceased individual's New York gross estate, and shall not  include  the
    28  amount  of  any  gift  unless  such  gift  consists  of real or tangible
    29  personal property having an actual situs in New York state or intangible
    30  personal property employed in a business, trade or profession carried on
    31  in this state.
    32    § 4. This act shall take effect immediately and  shall  be  deemed  to
    33  have been in full force and effect on and after April 1, 2014.
 
    34                                   PART CC
 
    35                            Intentionally Omitted
 
    36                                   PART DD
 
    37    Section  1.  Section  2  of  part Q of chapter 59 of the laws of 2013,
    38  amending the tax law  relating  to  serving  an  income  execution  with
    39  respect  to  individual tax debtors without filing a warrant, is amended
    40  to read as follows:
    41    § 2. This act shall take effect immediately and shall  expire  and  be
    42  deemed repealed on and after April 1, [2015] 2017.
    43    § 2. This act shall take effect immediately.
 
    44                                   PART EE
 
    45                            Intentionally Omitted
 
    46                                   PART FF

        S. 2009--B                         71                         A. 3009--B
 
     1                            Intentionally Omitted
 
     2                                   PART GG
 
     3                            Intentionally Omitted
 
     4                                   PART HH
 
     5                            Intentionally Omitted
 
     6                                   PART II
 
     7                            Intentionally Omitted
 
     8                                   PART JJ
 
     9                            Intentionally Omitted
 
    10                                   PART KK
 
    11                            Intentionally Omitted
 
    12                                   PART LL
 
    13                            Intentionally Omitted
 
    14                                   PART MM
 
    15    Section  1. Clause (H) of subparagraph (ii) of paragraph 1 of subdivi-
    16  sion b of section 1612 of the tax law, as amended by section 1  of  part
    17  BB of chapter 59 of the laws of 2014, is amended to read as follows:
    18    (H)  notwithstanding  clauses  (A), (B), (C), (D), (E), (F) and (G) of
    19  this subparagraph, the track operator of a vendor track shall be  eligi-
    20  ble  for  a  vendor's  capital  award of up to four percent of the total
    21  revenue wagered at the vendor track after payout for prizes pursuant  to
    22  this  chapter,  which  shall  be  used  exclusively  for capital project
    23  investments to improve the facilities of the vendor track which  promote
    24  or  encourage  increased attendance at the video lottery gaming facility
    25  including, but not limited to hotels, other lodging  facilities,  enter-
    26  tainment   facilities,  retail  facilities,  dining  facilities,  events
    27  arenas, parking garages and other  improvements  that  enhance  facility
    28  amenities;  provided  that such capital investments shall be approved by
    29  the division, in consultation with the state racing and wagering  board,
    30  and  that  such vendor track demonstrates that such capital expenditures
    31  will increase patronage at such vendor track's facilities  and  increase
    32  the amount of revenue generated to support state education programs. The
    33  annual  amount of such vendor's capital awards that a vendor track shall
    34  be eligible to receive shall be limited  to  two  million  five  hundred
    35  thousand  dollars,  except for Aqueduct racetrack, for which there shall

        S. 2009--B                         72                         A. 3009--B
 
     1  be no vendor's capital awards. Except for tracks having  less  than  one
     2  thousand  one  hundred  video  gaming  machines, and except for a vendor
     3  track located west of State Route 14 from Sodus Point to the  Pennsylva-
     4  nia  border  within  New  York, each track operator shall be required to
     5  co-invest an amount of  capital  expenditure  equal  to  its  cumulative
     6  vendor's  capital  award. For all tracks, except for Aqueduct racetrack,
     7  the amount of any vendor's capital award that is not used during any one
     8  year period may be carried over  into  subsequent  years  ending  before
     9  April  first, two thousand [fifteen] sixteen. Any amount attributable to
    10  a capital expenditure  approved  prior  to  April  first,  two  thousand
    11  [fifteen] sixteen and completed before April first, two thousand [seven-
    12  teen]  eighteen;  or  approved prior to April first, two thousand [nine-
    13  teen] twenty and completed before April first, two thousand [twenty-one]
    14  twenty-two for a vendor track located west of State Route 14 from  Sodus
    15  Point  to  the Pennsylvania border within New York, shall be eligible to
    16  receive the vendor's capital award. In the event that a  vendor  track's
    17  capital expenditures, approved by the division prior to April first, two
    18  thousand [fifteen] sixteen and completed prior to April first, two thou-
    19  sand  [seventeen] eighteen, exceed the vendor track's cumulative capital
    20  award during the five year  period  ending  April  first,  two  thousand
    21  [fifteen]  sixteen,  the  vendor  shall  continue to receive the capital
    22  award after April first,  two  thousand  [fifteen]  sixteen  until  such
    23  approved  capital  expenditures  are paid to the vendor track subject to
    24  any required co-investment. In no event  shall  any  vendor  track  that
    25  receives a vendor fee pursuant to clause (F) or (G) of this subparagraph
    26  be  eligible for a vendor's capital award under this section. Any opera-
    27  tor of a vendor track which  has  received  a  vendor's  capital  award,
    28  choosing  to  divest  the capital improvement toward which the award was
    29  applied, prior to the full depreciation of the  capital  improvement  in
    30  accordance  with  generally  accepted accounting principles, shall reim-
    31  burse the state in amounts equal to the total of any  such  awards.  Any
    32  capital  award not approved for a capital expenditure at a video lottery
    33  gaming facility by April first, two thousand [fifteen] sixteen shall  be
    34  deposited into the state lottery fund for education aid; and
    35    § 2. This act shall take effect immediately.
 
    36                                   PART NN
 
    37    Section  1.  Paragraph  (a)  of  subdivision  1 of section 1003 of the
    38  racing, pari-mutuel wagering and breeding law, as amended by  section  1
    39  of  part  AA  of  chapter  59 of the laws of 2014, is amended to read as
    40  follows:
    41    (a) Any  racing  association  or  corporation  or  regional  off-track
    42  betting  corporation,  authorized  to conduct pari-mutuel wagering under
    43  this chapter, desiring to display the simulcast of horse races on  which
    44  pari-mutuel  betting shall be permitted in the manner and subject to the
    45  conditions provided for in this article may apply to the commission  for
    46  a  license  so to do. Applications for licenses shall be in such form as
    47  may be prescribed by the commission and shall contain  such  information
    48  or  other material or evidence as the commission may require. No license
    49  shall be issued by the commission authorizing the simulcast transmission
    50  of thoroughbred races from a track located in Suffolk  county.  The  fee
    51  for  such  licenses shall be five hundred dollars per simulcast facility
    52  and for account wagering licensees that do not operate either  a  simul-
    53  cast facility that is open to the public within the state of New York or
    54  a  licensed racetrack within the state, twenty thousand dollars per year

        S. 2009--B                         73                         A. 3009--B
 
     1  payable by the licensee to the commission for deposit into  the  general
     2  fund.  Except  as  provided  in  this  section, the commission shall not
     3  approve any application to conduct simulcasting into individual or group
     4  residences,  homes  or  other areas for the purposes of or in connection
     5  with pari-mutuel wagering. The commission may approve simulcasting  into
     6  residences,  homes or other areas to be conducted jointly by one or more
     7  regional off-track betting corporations and one or more of  the  follow-
     8  ing:  a  franchised  corporation,  thoroughbred  racing corporation or a
     9  harness racing corporation or association; provided (i) the simulcasting
    10  consists only of those races on which pari-mutuel betting is  authorized
    11  by  this  chapter  at  one  or more simulcast facilities for each of the
    12  contracting off-track betting corporations which  shall  include  wagers
    13  made  in  accordance  with  section  one  thousand fifteen, one thousand
    14  sixteen and one thousand seventeen of  this  article;  provided  further
    15  that  the  contract  provisions or other simulcast arrangements for such
    16  simulcast facility shall be no less favorable than those  in  effect  on
    17  January  first,  two  thousand  five;  (ii)  that each off-track betting
    18  corporation having within its  geographic  boundaries  such  residences,
    19  homes  or  other  areas  technically  capable of receiving the simulcast
    20  signal shall be a contracting party; (iii) the distribution of  revenues
    21  shall  be  subject  to  contractual agreement of the parties except that
    22  statutory payments to  non-contracting  parties,  if  any,  may  not  be
    23  reduced;  provided,  however,  that nothing herein to the contrary shall
    24  prevent a track from televising its races on an irregular basis primari-
    25  ly for promotional or marketing purposes as found by the commission. For
    26  purposes of this paragraph, the provisions of section one thousand thir-
    27  teen of this article shall  not  apply.  Any  agreement  authorizing  an
    28  in-home simulcasting experiment commencing prior to May fifteenth, nine-
    29  teen hundred ninety-five, may, and all its terms, be extended until June
    30  thirtieth,  two  thousand [fifteen] sixteen; provided, however, that any
    31  party to such agreement may  elect  to  terminate  such  agreement  upon
    32  conveying written notice to all other parties of such agreement at least
    33  forty-five  days  prior  to  the  effective date of the termination, via
    34  registered mail. Any party to an agreement receiving such notice  of  an
    35  intent  to  terminate, may request the commission to mediate between the
    36  parties new terms and conditions in a replacement agreement between  the
    37  parties  as will permit continuation of an in-home experiment until June
    38  thirtieth, two thousand [fifteen] sixteen; and (iv)  no  in-home  simul-
    39  casting in the thoroughbred special betting district shall occur without
    40  the approval of the regional thoroughbred track.
    41    §  2.  Subparagraph  (iii)  of paragraph d of subdivision 3 of section
    42  1007 of the racing, pari-mutuel wagering and breeding law, as amended by
    43  section 2 of part AA of chapter 59 of the laws of 2014,  is  amended  to
    44  read as follows:
    45    (iii) Of the sums retained by a receiving track located in Westchester
    46  county  on  races received from a franchised corporation, for the period
    47  commencing January first, two thousand eight and continuing through June
    48  thirtieth, two thousand [fifteen] sixteen, the amount  used  exclusively
    49  for  purses  to  be  awarded  at races conducted by such receiving track
    50  shall be computed as follows: of the sums so retained, two and  one-half
    51  percent  of the total pools. Such amount shall be increased or decreased
    52  in the amount of fifty percent of the difference  in  total  commissions
    53  determined by comparing the total commissions available after July twen-
    54  ty-first,  nineteen  hundred  ninety-five  to the total commissions that
    55  would have been available to such  track  prior  to  July  twenty-first,
    56  nineteen hundred ninety-five.

        S. 2009--B                         74                         A. 3009--B
 
     1    §  3.  The  opening  paragraph of subdivision 1 of section 1014 of the
     2  racing, pari-mutuel wagering and breeding law, as amended by  section  3
     3  of  part  AA  of  chapter  59 of the laws of 2014, is amended to read as
     4  follows:
     5    The  provisions of this section shall govern the simulcasting of races
     6  conducted at thoroughbred tracks located in another state or country  on
     7  any day during which a franchised corporation is conducting a race meet-
     8  ing  in  Saratoga  county  at Saratoga thoroughbred racetrack until June
     9  thirtieth, two thousand [fifteen] sixteen and on any day  regardless  of
    10  whether  or not a franchised corporation is conducting a race meeting in
    11  Saratoga county at Saratoga thoroughbred racetrack after June thirtieth,
    12  two thousand [fifteen] sixteen.  On any day on which a franchised corpo-
    13  ration has not scheduled a racing  program  but  a  thoroughbred  racing
    14  corporation  located  within  the state is conducting racing, every off-
    15  track betting corporation branch office and every simulcasting  facility
    16  licensed  in  accordance  with  section  one  thousand  seven (that have
    17  entered into a written agreement  with  such  facility's  representative
    18  horsemen's  organization,  as  approved by the commission), one thousand
    19  eight, or one thousand nine of  this  article  shall  be  authorized  to
    20  accept  wagers  and  display the live simulcast signal from thoroughbred
    21  tracks located in another  state  or  foreign  country  subject  to  the
    22  following provisions:
    23    § 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering
    24  and  breeding  law,  as amended by section 4 of part AA of chapter 59 of
    25  the laws of 2014, is amended to read as follows:
    26    1. The provisions of this section shall  govern  the  simulcasting  of
    27  races  conducted  at  harness tracks located in another state or country
    28  during the period July first, nineteen hundred ninety-four through  June
    29  thirtieth,  two thousand [fifteen] sixteen. This section shall supersede
    30  all inconsistent provisions of this chapter.
    31    § 5. The opening paragraph of subdivision 1 of  section  1016  of  the
    32  racing,  pari-mutuel  wagering and breeding law, as amended by section 5
    33  of part AA of chapter 59 of the laws of 2014,  is  amended  to  read  as
    34  follows:
    35    The  provisions of this section shall govern the simulcasting of races
    36  conducted at thoroughbred tracks located in another state or country  on
    37  any  day  during which a franchised corporation is not conducting a race
    38  meeting in Saratoga county at Saratoga thoroughbred racetrack until June
    39  thirtieth, two thousand [fifteen]  sixteen.    Every  off-track  betting
    40  corporation  branch  office  and every simulcasting facility licensed in
    41  accordance with section one thousand seven  that  have  entered  into  a
    42  written  agreement with such facility's representative horsemen's organ-
    43  ization as approved by the commission, one thousand eight or  one  thou-
    44  sand  nine  of  this  article  shall  be authorized to accept wagers and
    45  display the live  full-card  simulcast  signal  of  thoroughbred  tracks
    46  (which  may  include  quarter  horse or mixed meetings provided that all
    47  such wagering on such races shall be construed to be thoroughbred races)
    48  located in another state or foreign country, subject  to  the  following
    49  provisions;  provided,  however,  no  such  written  agreement  shall be
    50  required of a franchised corporation licensed in accordance with section
    51  one thousand seven of this article:
    52    § 6. The opening paragraph of section 1018 of the racing,  pari-mutuel
    53  wagering and breeding law, as amended by section 6 of part AA of chapter
    54  59 of the laws of 2014, is amended to read as follows:
    55    Notwithstanding  any  other  provision of this chapter, for the period
    56  July twenty-fifth, two thousand one through September eighth, two  thou-

        S. 2009--B                         75                         A. 3009--B
 
     1  sand  [fourteen]  fifteen, when a franchised corporation is conducting a
     2  race meeting within the state at Saratoga Race Course,  every  off-track
     3  betting  corporation  branch  office  and  every  simulcasting  facility
     4  licensed in accordance with section one thousand seven (that has entered
     5  into  a written agreement with such facility's representative horsemen's
     6  organization as approved by the commission), one thousand eight  or  one
     7  thousand  nine  of this article shall be authorized to accept wagers and
     8  display the live simulcast signal from thoroughbred  tracks  located  in
     9  another  state, provided that such facility shall accept wagers on races
    10  run at all in-state thoroughbred  tracks  which  are  conducting  racing
    11  programs subject to the following provisions; provided, however, no such
    12  written agreement shall be required of a franchised corporation licensed
    13  in accordance with section one thousand seven of this article.
    14    §  7.  Section  32  of  chapter  281 of the laws of 1994, amending the
    15  racing, pari-mutuel wagering and breeding law  and other  laws  relating
    16  to simulcasting, as amended by section 7 of part AA of chapter 59 of the
    17  laws of 2014, is amended to read as follows:
    18    §  32.  This act shall take effect immediately and the pari-mutuel tax
    19  reductions in section six  of  this  act  shall  expire  and  be  deemed
    20  repealed  on  July  1,  [2015]  2016;  provided,  however,  that nothing
    21  contained herein shall be deemed to affect the  application,  qualifica-
    22  tion,  expiration,  or  repeal  of  any  provision of law amended by any
    23  section of this act, and such provisions shall be applied  or  qualified
    24  or  shall  expire  or be deemed repealed in the same manner, to the same
    25  extent and on the same date as the case may be as otherwise provided  by
    26  law;  provided  further, however, that sections twenty-three and twenty-
    27  five of this act shall remain in full force and effect only until May 1,
    28  1997 and at such time shall be deemed to be repealed.
    29    § 8. Section 54 of chapter 346 of  the  laws  of  1990,  amending  the
    30  racing, pari-mutuel wagering and breeding law and other laws relating to
    31  simulcasting  and the imposition of certain taxes, as amended by section
    32  8 of part AA of chapter 59 of the laws of 2014, is amended  to  read  as
    33  follows:
    34    §  54.  This  act  shall  take  effect immediately; provided, however,
    35  sections three through twelve of this act shall take effect  on  January
    36  1, 1991, and section 1013 of the racing, pari-mutuel wagering and breed-
    37  ing  law, as added by section thirty-eight of this act, shall expire and
    38  be deemed repealed on July 1, [2015] 2016; and section eighteen of  this
    39  act  shall take effect on July 1, 2008 and sections fifty-one and fifty-
    40  two of this act shall take effect as of the same date as chapter 772  of
    41  the laws of 1989 took effect.
    42    §  9.  Paragraph  (a)  of  subdivision 1 of section 238 of the racing,
    43  pari-mutuel wagering and breeding law, as amended by section 9  of  part
    44  AA of chapter 59 of the laws of 2014, is amended to read as follows:
    45    (a)  The  franchised  corporation  authorized  under  this  chapter to
    46  conduct pari-mutuel betting at a race meeting or races run thereat shall
    47  distribute all sums deposited in any pari-mutuel pool to the holders  of
    48  winning  tickets therein, provided such tickets be presented for payment
    49  before April first of the year following the  year  of  their  purchase,
    50  less  an  amount  which  shall be established and retained by such fran-
    51  chised corporation of between twelve to  seventeen  per  centum  of  the
    52  total  deposits in pools resulting from on-track regular bets, and four-
    53  teen to twenty-one per centum of the total deposits in  pools  resulting
    54  from on-track multiple bets and fifteen to twenty-five per centum of the
    55  total  deposits in pools resulting from on-track exotic bets and fifteen
    56  to thirty-six per centum of the total deposits in pools  resulting  from

        S. 2009--B                         76                         A. 3009--B
 
     1  on-track  super  exotic  bets, plus the breaks. The retention rate to be
     2  established is subject to the prior approval of the  gaming  commission.
     3  Such  rate  may not be changed more than once per calendar quarter to be
     4  effective  on  the  first day of the calendar quarter. "Exotic bets" and
     5  "multiple bets" shall have  the  meanings  set  forth  in  section  five
     6  hundred  nineteen  of  this  chapter. "Super exotic bets" shall have the
     7  meaning set forth in section three hundred  one  of  this  chapter.  For
     8  purposes  of  this  section, a "pick six bet" shall mean a single bet or
     9  wager on the outcomes of six races. The breaks are hereby defined as the
    10  odd cents over any multiple of five for payoffs greater than one  dollar
    11  five  cents  but  less  than  five dollars, over any multiple of ten for
    12  payoffs greater than five dollars but  less  than  twenty-five  dollars,
    13  over  any  multiple  of twenty-five for payoffs greater than twenty-five
    14  dollars but less than two hundred fifty dollars, or over any multiple of
    15  fifty for payoffs over two hundred fifty dollars. Out of the  amount  so
    16  retained  there  shall  be  paid  by  such franchised corporation to the
    17  commissioner of taxation and finance, as a reasonable tax by  the  state
    18  for  the privilege of conducting pari-mutuel betting on the races run at
    19  the race meetings held by such  franchised  corporation,  the  following
    20  percentages  of  the  total  pool for regular and multiple bets five per
    21  centum of regular bets and four per centum of multiple bets plus  twenty
    22  per  centum  of  the  breaks;  for  exotic wagers seven and one-half per
    23  centum plus twenty per centum of the breaks, and for super  exotic  bets
    24  seven  and  one-half per centum plus fifty per centum of the breaks. For
    25  the period June first, nineteen hundred  ninety-five  through  September
    26  ninth, nineteen hundred ninety-nine, such tax on regular wagers shall be
    27  three  per  centum and such tax on multiple wagers shall be two and one-
    28  half per centum, plus twenty per centum of the breaks.  For  the  period
    29  September  tenth,  nineteen  hundred  ninety-nine  through March thirty-
    30  first, two thousand one, such tax on all wagers shall be  two  and  six-
    31  tenths  per  centum  and  for  the  period April first, two thousand one
    32  through December thirty-first, two thousand [fifteen] sixteen, such  tax
    33  on all wagers shall be one and six-tenths per centum, plus, in each such
    34  period,  twenty  per centum of the breaks. Payment to the New York state
    35  thoroughbred breeding and development fund  by  such  franchised  corpo-
    36  ration shall be one-half of one per centum of total daily on-track pari-
    37  mutuel  pools resulting from regular, multiple and exotic bets and three
    38  per centum of super exotic bets provided, however, that for  the  period
    39  September  tenth,  nineteen  hundred  ninety-nine  through March thirty-
    40  first, two thousand one, such payment shall be  six-tenths  of  one  per
    41  centum  of  regular,  multiple and exotic pools and for the period April
    42  first, two thousand one  through  December  thirty-first,  two  thousand
    43  [fifteen]  sixteen, such payment shall be seven-tenths of one per centum
    44  of such pools.
    45    § 10. This act shall take effect immediately.
 
    46                                   PART OO
 
    47    Section 1. Section 1602 of the tax law is  amended  by  adding  a  new
    48  subdivision 6 to read as follows:
    49    6.  "Video  lottery  gaming"  means any lottery game played on a video
    50  lottery terminal that issues electronic tickets, allows multiple players
    51  to participate in the same game and determines  winners  to  a  material
    52  degree  upon  the element of chance, notwithstanding that the skill of a
    53  player may influence such player's chance of  winning  a  game.    Video

        S. 2009--B                         77                         A. 3009--B
 
     1  lottery gaming may include elements of player interaction after a player
     2  receives an initial chance.
     3    §  2.  Subdivision  28 of section 225.00 of the penal law, as added by
     4  chapter 174 of the laws of 2013, is amended to read as follows:
     5    28. "Video lottery gaming" [means any lottery game played on  a  video
     6  lottery  terminal,  which  consists  of multiple players competing for a
     7  chance to win a random drawn prize pursuant to section  sixteen  hundred
     8  seventeen-a  and  paragraph  five  of  subdivision  a of section sixteen
     9  hundred twelve of the tax law, as amended and implemented] has the mean-
    10  ing set forth in subdivision six of section sixteen hundred two  of  the
    11  tax law.
    12    §  3.  This  act shall take effect on the thirtieth day after it shall
    13  have become a law.
 
    14                                   PART PP
 
    15    Section 1. Paragraph d of subdivision 1 of section 207 of the  racing,
    16  pari-mutuel  wagering  and  breeding law, as added by chapter 457 of the
    17  laws of 2012, is amended to read as follows:
    18    d. The board, which shall  become  effective  upon  appointment  of  a
    19  majority  of public members, shall terminate [three] four years from its
    20  date of creation. The board shall propose,  no  less  than  one  hundred
    21  eighty  days  prior  to its termination, recommendations to the governor
    22  and the state legislature representing a statutory plan for the prospec-
    23  tive not-for-profit governing structure of The New York  Racing  Associ-
    24  ation, Inc.
    25    § 2. This act shall take effect immediately.
 
    26                                   PART QQ
 
    27                            Intentionally Omitted
 
    28                                   PART RR
 
    29    Section  1.  Subdivision 2 of section 187-b of the tax law, as amended
    30  by section 1 of part G of chapter 59 of the laws of 2013, is amended  to
    31  read as follows:
    32    2.  (a) Alternative fuel vehicle refueling property and electric vehi-
    33  cle recharging property. The credit under this section  for  alternative
    34  fuel  vehicle  refueling  and electric vehicle recharging property shall
    35  equal for each installation of property  the  lesser  of  five  thousand
    36  dollars or the product of fifty percent [of the cost of any such proper-
    37  ty:
    38    (a)  which  is]  and the cost of any such property less any costs paid
    39  from the proceeds of grants.
    40    (b) To qualify for the credit, the property must:
    41    (i) be located in this state;
    42    [(b) which constitutes] (ii) constitute alternative fuel vehicle refu-
    43  eling property or electric vehicle recharging property; and
    44    [(c) for which none of the cost has been] (iii) not be paid  for  from
    45  the  proceeds  of  grants  awarded  before  January  first, two thousand
    46  fifteen, including grants from the New York state  energy  research  and
    47  development authority or the New York power authority.

        S. 2009--B                         78                         A. 3009--B
 
     1    §  2. Paragraph (b) of subdivision 30 of section 210-B of the tax law,
     2  as added by section 17 of part A of chapter 59 of the laws of  2014,  is
     3  amended to read as follows:
     4    (b) (i) Alternative fuel vehicle refueling property and electric vehi-
     5  cle  recharging property. The credit under this subdivision for alterna-
     6  tive fuel vehicle refueling property  and  electric  vehicle  recharging
     7  property  shall  equal  for  each installation of property the lesser of
     8  five thousand dollars or the product of fifty percent [of  the  cost  of
     9  any such property:
    10    (i)  which  is]  and the cost of any such property less any costs paid
    11  from the proceeds of grants.
    12    (ii) To qualify for the credit, the property must:
    13    (A) be located in this state;
    14    [(ii) which constitutes] (B) must constitute alternative fuel  vehicle
    15  refueling property or electric vehicle recharging property; and
    16    [(iii)  for  which none of the cost has been] (C) not be paid for from
    17  the proceeds of  grants  awarded  before  January  first,  two  thousand
    18  fifteen,  including  grants  from the New York state energy research and
    19  development authority or the New York power authority.
    20    § 3. Paragraph 2 of subsection (p) of section 606 of the tax  law,  as
    21  amended  by  section  3  of part G of chapter 59 of the laws of 2013, is
    22  amended to read as follows:
    23    (2) (a) Alternative fuel vehicle refueling property and electric vehi-
    24  cle recharging property. The credit under this subsection  for  alterna-
    25  tive  fuel  vehicle  refueling  property  or electric vehicle recharging
    26  property shall equal for each installation of  property  the  lesser  of
    27  five  thousand  dollars  or the product of fifty percent [of the cost of
    28  any such property
    29    (A) which is] and the cost of any such property less  any  costs  paid
    30  from the proceeds of grants.
    31    (b) To qualify for the credit, the property must:
    32    (i) be located in this state;
    33    [(B) which constitutes] (ii) constitute alternative fuel vehicle refu-
    34  eling property or electric vehicle recharging property; and
    35    [(C)  for  which none of the cost has been] (iii) not be paid for from
    36  the proceeds of  grants  awarded  before  January  first,  two  thousand
    37  fifteen,  including  grants  from the New York state energy research and
    38  development authority or the New York power authority.
    39    § 4. This act shall take effect immediately, and shall apply to  taxa-
    40  ble years beginning on or after January 1, 2015.
 
    41                                   PART SS
 
    42    Section  1.  Section  1115  of  the tax law is amended by adding a new
    43  subdivision (jj) to read as follows:
    44    (jj) Notwithstanding any other provision of this article: (1) Receipts
    45  in excess of two hundred thirty thousand dollars from every sale of, and
    46  consideration given or contracted to be given for, or for the use of,  a
    47  vessel  shall  be  exempt  from  the  taxes imposed by this article. For
    48  purposes of this subdivision, "vessel" shall have the  same  meaning  as
    49  such  term is defined in section twenty-two hundred fifty of the vehicle
    50  and traffic law and any outboard motor or trailer, as defined in section
    51  one hundred fifty-six of such law, when sold in  conjunction  with  such
    52  vessel.
    53    (2)  For  purposes of subdivision (b) of section eleven hundred eleven
    54  of this article, the purchase  price,  current  market  value,  or  fair

        S. 2009--B                         79                         A. 3009--B
 
     1  rental value, as the case may be, of a vessel purchased by a resident of
     2  New  York state outside of this state for use outside of this state that
     3  subsequently becomes subject to the compensating use tax  imposed  under
     4  this  article  shall be deemed not to exceed two hundred thirty thousand
     5  dollars.
     6    (3) For purposes of subdivision (i) of section eleven  hundred  eleven
     7  of  this article, receipts from, or consideration given or contracted to
     8  be given for, the lease of a vessel that is subject to such  subdivision
     9  (i)  in  excess  of  two hundred thirty thousand dollars shall be exempt
    10  from the calculation of tax due under such subdivision (i).
    11    (4) For purposes of paragraph one of subdivision (q) of section eleven
    12  hundred eleven of this article, the limitations on exclusions  from  the
    13  definition  of  retail  sale  in paragraph one of such subdivision shall
    14  apply only to the first two hundred thirty thousand dollars of  receipts
    15  from  every  sale  of,  or consideration given or contracted to be given
    16  for, or for the use of, a vessel.
    17    (5) For purposes of paragraph two of subdivision (q) of section eleven
    18  hundred eleven of this article, the purchase price or market  value,  as
    19  the  case may be, of a vessel subject to tax under paragraph two of such
    20  subdivision (q) shall be deemed not to exceed two hundred  thirty  thou-
    21  sand dollars.
    22    (6) For purposes of subdivision two of section eleven hundred eighteen
    23  of  this  article, the limitation on the exclusion from compensating use
    24  tax in such subdivision two  with  respect  to  qualified  property,  as
    25  defined  in  such subdivision, shall apply only to the first two hundred
    26  thirty thousand dollars of consideration given or contracted to be given
    27  for, or for the use of, a vessel.
    28    (7) For purposes of paragraph (a)  of  subdivision  seven  of  section
    29  eleven  hundred eighteen of this article, the refund or credit allowable
    30  under paragraph (a) of such subdivision seven  shall  be  computed  only
    31  with  regard  to  tax legally due and paid to another state on the first
    32  two hundred thirty thousand dollars of the purchase price.
    33    (8) Except as otherwise provided herein, this subdivision shall not be
    34  deemed to limit any other exemption, exclusion or credit in this article
    35  relating to a vessel.
    36    § 2. Section 1118 of the tax law is amended by adding new  subdivision
    37  13 to read as follows:
    38    (13) In respect to the use within the state of a vessel, as defined in
    39  section  twenty-two  hundred fifty of the vehicle and traffic law, until
    40  the first of the following events occur:
    41    (a) the use of such vessel within this state by the purchaser  thereof
    42  for a period in excess of ninety consecutive days;
    43    (b) the date upon which such vessel is first required to be registered
    44  pursuant  to  section  twenty-two  hundred  fifty-one of the vehicle and
    45  traffic law; or
    46    (c) the date upon which such vessel is so registered.
    47    § 3. This act shall take effect  June  1,  2015  and  shall  apply  in
    48  accordance  with the applicable transitional provisions in sections 1106
    49  and 1217 of the tax law.
 
    50                                   PART TT
 
    51    Section 1. Paragraph (A) of subdivision (i) of section 1111 of the tax
    52  law, as amended by chapter 20 of the laws of 1992, is amended to read as
    53  follows:

        S. 2009--B                         80                         A. 3009--B
 
     1    (A) Notwithstanding any contrary provisions of this article  or  other
     2  law,  with  respect to any lease for a term of one year or more of (1) a
     3  motor vehicle, as defined in section  one  hundred  twenty-five  of  the
     4  vehicle  and  traffic  law,  with a gross vehicle weight of ten thousand
     5  pounds  or  less,  or  (2)  a  vessel,  as defined in section twenty-two
     6  hundred fifty of such law (including any inboard or outboard  motor  and
     7  any  trailer,  as  defined in section one hundred fifty-six of such law,
     8  leased in  conjunction  with  such  a  vessel)  [and  (3)  noncommercial
     9  aircraft  having a seating capacity of less than twenty passengers and a
    10  maximum payload capacity of less than six thousand pounds], or an option
    11  to renew such a lease or a similar contractual provision,  all  receipts
    12  due  or  consideration given or contracted to be given for such property
    13  under and for the entire period of such lease, option to renew or  simi-
    14  lar provision, or combination of them, shall be deemed to have been paid
    15  or  given  and  shall  be  subject to tax, and any such tax due shall be
    16  collected, as of the date of first payment under such lease,  option  to
    17  renew or similar provision, or combination of them, or as of the date of
    18  registration  of  such property with the commissioner of motor vehicles,
    19  whichever is earlier. Notwithstanding  any  inconsistent  provisions  of
    20  subdivision  (b)  of this section or of section eleven hundred seventeen
    21  of this article or of other law, for purposes of such a lease, option to
    22  renew or similar provision originally entered into outside  this  state,
    23  by  a lessee (1) who was a resident of this state, and leased such prop-
    24  erty for use outside the state and who subsequently brings such property
    25  into this state for use here or (2) who was  a  nonresident  and  subse-
    26  quently  becomes  a resident and brings the property into this state for
    27  use here, any remaining receipts due or consideration to be given  after
    28  such lessee brings such property into this state shall be subject to tax
    29  as  if  the  lessee  had entered into or exercised such lease, option to
    30  renew or similar provision, or combination thereof, for the  first  time
    31  in this state and the relevant provisions of sections eleven hundred ten
    32  concerning  imposition  and  computation of tax, eleven hundred eighteen
    33  concerning exemption from use tax for tax paid to another  jurisdiction,
    34  eleven  hundred  thirty-two  concerning  presumption  of  taxability and
    35  conditions for registration and eleven  hundred  thirty-nine  concerning
    36  refunds, of this article, shall be applicable to any sales or compensat-
    37  ing  use  tax  paid by the lessee before the lessee brought the property
    38  into this state, except to the extent that any such provision is  incon-
    39  sistent  with  a  provision  of  this  subdivision. For purposes of this
    40  subdivision, (1) a lease for a term of one year or  more  shall  include
    41  any  lease for a shorter term which includes an option to renew or other
    42  like provision (or more than one of  such  option  or  other  provision)
    43  where  the cumulative period that the lease, with or without such option
    44  or provision, may be in effect upon exercise of such option or provision
    45  is one year or more and (2) receipts  due  and  consideration  given  or
    46  contracted  to  be  given  under  any  such lease or other provision for
    47  excess mileage charges shall be subject to tax as and when paid or due.
    48    § 2. Subdivision (q) of section 1111 of  the  tax  law,  as  added  by
    49  section  3  of subpart B of part S of chapter 57 of the laws of 2010, is
    50  amended to read as follows:
    51    (q) (1) The exclusions from the definition of retail sale in  subpara-
    52  graph  (iv)  of  paragraph  four  of  subdivision  (b) of section eleven
    53  hundred one of this article shall not apply to transfers, distributions,
    54  or contributions of [an aircraft or] a vessel, except where, in the case
    55  of the exclusion in subclause (I) of clause  (A)  of  such  subparagraph
    56  (iv),  the  two corporations to be merged or consolidated are not affil-

        S. 2009--B                         81                         A. 3009--B
 
     1  iated persons with respect to each other. For purposes of this  subdivi-
     2  sion,  corporations  are  affiliated  persons with respect to each other
     3  where (i) more than five percent of their combined shares are  owned  by
     4  members  of  the same family, as defined by paragraph four of subsection
     5  (c) of section two hundred sixty-seven of the internal revenue  code  of
     6  nineteen  hundred eighty-six; (ii) one of the corporations has an owner-
     7  ship interest of more than five percent, whether direct or indirect,  in
     8  the  other; or (iii) another person or a group of other persons that are
     9  affiliated persons with respect to each other hold an ownership interest
    10  of more than five percent, whether direct or indirect, in  each  of  the
    11  corporations.
    12    (2)  Notwithstanding any contrary provision of law, in relation to any
    13  transfer, distribution, or contribution of [an  aircraft  or]  a  vessel
    14  that  qualifies  as  a  retail sale as a result of paragraph one of this
    15  subdivision, the sales tax imposed by subdivision (a) of section  eleven
    16  hundred  five of this part shall be computed based on the price at which
    17  the seller purchased the tangible personal property, provided that where
    18  the seller or purchaser affirmatively shows that the  seller  owned  the
    19  property  for  six  months prior to making the transfer, distribution or
    20  contribution  covered  by  paragraph  one  of  this  subdivision,   such
    21  [aircraft  or]  vessel shall be taxed on the basis of the current market
    22  value of the [aircraft or] vessel at the time of that transfer, distrib-
    23  ution, or contribution. For the purposes of the prior sentence, "current
    24  market value" shall not exceed the cost of the [aircraft or] vessel. See
    25  subdivision (b) of this section for a similar rule on the computation of
    26  any compensating use tax due under section eleven hundred  ten  of  this
    27  part on such transfers, distributions, or contributions.
    28    (3)  A purchaser of [an aircraft or] a vessel covered by paragraph one
    29  of this subdivision will be entitled to a refund or credit  against  the
    30  sales  or  compensating  use tax due as a result of a transfer, distrib-
    31  ution, or contribution of such [aircraft or] vessel in the amount of any
    32  sales or use tax paid to this state or any other state on  the  seller's
    33  purchase  or use of the [aircraft or] vessel so transferred, distributed
    34  or contributed, but not to exceed the tax due on the transfer,  distrib-
    35  ution, or contribution of the [aircraft or] vessel or on the purchaser's
    36  use in the state of the [aircraft or] vessel so transferred, distributed
    37  or  contributed. An application for a refund or credit under this subdi-
    38  vision must be filed and shall be in such form as the  commissioner  may
    39  prescribe. Where an application for credit has been filed, the applicant
    40  may  immediately  take such credit on the return which is due coincident
    41  with or immediately subsequent to the time the application for credit is
    42  filed. However, the taking of the credit on the return shall  be  deemed
    43  to be part of the application for credit.  Provided that the commission-
    44  er  may,  in  his  or  her discretion and notwithstanding any other law,
    45  waive the application requirement for any  or  all  classes  of  persons
    46  where  the  amount of the credit or refund is equal to the amount of the
    47  tax due from the purchaser. The provisions of subdivisions (a), (b), and
    48  (c) of section eleven hundred thirty-nine of this article shall apply to
    49  applications for refund or credit under this  subdivision.  No  interest
    50  shall be allowed or paid on any refund made or credit allowed under this
    51  subdivision. If a refund is granted or a credit allowed under this para-
    52  graph,  the  seller  or  purchaser shall not be eligible for a refund or
    53  credit pursuant to subdivision seven of section eleven hundred  eighteen
    54  of this article with regard to the same purchase or use.
    55    §  3.  Subdivision  (a)  of  section 1115 of the tax law is amended by
    56  adding a new paragraph 21-a to read as follows:

        S. 2009--B                         82                         A. 3009--B
 
     1    (21-a) General aviation aircraft, and machinery  or  equipment  to  be
     2  installed  on  such aircraft. For purposes of this subdivision, "general
     3  aviation aircraft" means an aircraft that is  used  in  civil  aviation,
     4  that  is  not a commercial aircraft as defined in paragraph seventeen of
     5  subdivision  (b) of section eleven hundred one of this article, military
     6  aircraft, unmanned aerial vehicle or drone.
     7    § 4. This act shall take effect September 1, 2015, and shall apply  in
     8  accordance  with applicable transitional provisions of sections 1106 and
     9  1217 of the tax law.
 
    10                                   PART UU
 
    11    Section 1. Section 1115 of the tax law is  amended  by  adding  a  new
    12  subdivision (jj) to read as follows:
    13    (jj)  Tangible  personal  property or services otherwise taxable under
    14  this article sold to a related person shall not be subject to the  taxes
    15  imposed by section eleven hundred five of this article or the compensat-
    16  ing  use  tax  imposed  under section eleven hundred ten of this article
    17  where the purchaser can show that the following conditions have been met
    18  to the extent they are applicable: (1)(i) the vendor and  the  purchaser
    19  are  referenced  as  either  a "covered company" as described in section
    20  243.2(f) or a "material entity" as described in section 243.2(l) of  the
    21  Code of Federal Regulations in a resolution plan that has been submitted
    22  to an agency of the United States for the purpose of satisfying subpara-
    23  graph  1 of paragraph (d) of section one hundred sixty-five of the Dodd-
    24  Frank Wall Street Reform and Consumer Protection Act (the "Act") or  any
    25  successor  law,  or (ii) the vendor and the purchaser are separate legal
    26  entities pursuant to a divestiture directed pursuant to  subparagraph  5
    27  of  paragraph  (d)  of section one hundred sixty-five of such act or any
    28  successor law; (2) the sale would not have occurred between such related
    29  entities were it not for such resolution plan or divestiture; and (3) in
    30  acquiring such property  or  services,  the  vendor  did  not  claim  an
    31  exemption  from  the tax imposed by this state or another state based on
    32  the vendor's intent to resell such services or  property.  A  person  is
    33  related to another person for purposes of this subdivision if the person
    34  bears  a  relationship  to  such person described in section two hundred
    35  sixty-seven of the internal revenue code. The exemption provided by this
    36  subdivision shall not apply to sales made, services  rendered,  or  uses
    37  occurring  after  June  thirtieth,  two  thousand  nineteen, except with
    38  respect to sales made, services rendered, or uses occurring pursuant  to
    39  binding  contracts  entered  into on or before such date; but in no case
    40  shall such exemption apply after June thirtieth,  two  thousand  twenty-
    41  four.
    42    §  2. This act shall take effect on the first day of a sales tax quar-
    43  terly period, as described in subdivision (b) of section 1136 of the tax
    44  law, next commencing at least ninety days after the date this act  shall
    45  have  become  a  law  and  shall apply in accordance with the applicable
    46  transitional provisions of sections 1106 and 1217 of the tax law.
 
    47                                   PART VV
 
    48    Section 1. The opening paragraph of subdivision 7 of  section  221  of
    49  the racing, pari-mutuel wagering and breeding law, as amended by chapter
    50  18 of the laws of 2008, is amended to read as follows:
    51    In  order  to  pay the costs of the insurance required by this section
    52  and by the workers' compensation law and to carry out its  other  powers

        S. 2009--B                         83                         A. 3009--B
 
     1  and  duties  and  to  pay for any of its liabilities under section four-
     2  teen-a of the workers' compensation law,  the  New  York  Jockey  Injury
     3  Compensation  Fund, Inc. shall ascertain the total funding necessary and
     4  establish  the  sums  that  are  to  be  paid by all owners and trainers
     5  licensed or required to be licensed under section two hundred twenty  of
     6  this  article,  to obtain the total funding amount required annually. In
     7  order to provide that any sum required to be paid by an owner or trainer
     8  is equitable, the fund shall establish payment schedules  which  reflect
     9  such  factors  as  are  appropriate,  including  where  applicable,  the
    10  geographic location of the racing corporation  at  which  the  owner  or
    11  trainer  participates, the duration of such participation, the amount of
    12  any purse earnings, the number of horses involved, or such other factors
    13  as the fund shall determine to be fair, equitable and in the best inter-
    14  ests of racing. In no event shall the amount deducted  from  an  owner's
    15  share of purses exceed [one] two per centum. The amount deducted from an
    16  owner's  share  of  purses  shall  not exceed one per centum after April
    17  first, two thousand seventeen. In the cases of multiple  ownerships  and
    18  limited  racing  appearances,  the  fund  shall equitably adjust the sum
    19  required.
    20    § 2. This act shall take effect immediately.
 
    21                                   PART WW
 
    22    Section 1. Clause (F) of subparagraph (ii) of paragraph 1 of  subdivi-
    23  sion b of section 1612 of the tax law, as amended by section 1 of part Z
    24  of chapter 59 of the laws of 2014, is amended to read as follows:
    25    (F) notwithstanding clauses (A), (B), (C), (D) and (E) of this subpar-
    26  agraph,  when  a  vendor track, is located in Sullivan county and within
    27  sixty miles from any gaming facility in a contiguous state  such  vendor
    28  fee  shall,  for a period of [seven] eight years commencing April first,
    29  two thousand eight, be at a rate  of  forty-one  percent  of  the  total
    30  revenue  wagered at the vendor track after payout for prizes pursuant to
    31  this chapter, after which time such rate shall be as for all  tracks  in
    32  clause (C) of this subparagraph.
    33    §  2.  This  act  shall take effect immediately and shall be deemed to
    34  have been in full force and effect on and after April 1, 2015.
 
    35                                   PART XX
 
    36    Section 1. Subdivision 1 of section 1012 of  the  racing,  pari-mutuel
    37  wagering  and  breeding  law,  as  amended by chapter 174 of the laws of
    38  2013, is amended to read as follows:
    39    1. Racing  associations  and  corporations,  franchised  corporations,
    40  off-track betting corporations and multi-jurisdictional account wagering
    41  providers  may  form  partnerships,  joint ventures, or any other affil-
    42  iations or contractual arrangement in order to further the  purposes  of
    43  this  section.  Multi-jurisdictional account wagering providers involved
    44  in such joint affiliations or contractual arrangements shall follow  the
    45  same  distributional  policy  with  respect  to  retained commissions as
    46  [their in-state affiliate or contractual partner] a multi-jurisdictional
    47  account wagering provider defined in this article.
    48    § 2. Section 1012 of the racing, pari-mutuel wagering and breeding law
    49  is amended by adding a new subdivision 1-a to read as follows:
    50    1-a. Notwithstanding any provision to the contrary,  any  multi-juris-
    51  dictional account wagering providers involved in such joint affiliations
    52  or  contractual  arrangements  authorized  in  subdivision  one  of this

        S. 2009--B                         84                         A. 3009--B
 
     1  section which was entered into on or before the first  of  January,  two
     2  thousand  fourteen may continue to follow the same distributional policy
     3  with respect to retained commissions  as  their  in-state  affiliate  or
     4  contractual  partner  through the thirty-first of December, two thousand
     5  sixteen.
     6    § 3. This act shall take effect immediately; provided,  however,  that
     7  the  provisions  of section two of this act shall expire January 1, 2017
     8  when upon such date the provisions  of  such  section  shall  be  deemed
     9  repealed.
 
    10                                   PART YY
 
    11    Section  1.  Paragraph  4  of subsection (b) of section 800 of the tax
    12  law, as added by section 1 of part B of chapter 56 of the laws of  2011,
    13  is amended to read as follows:
    14    (4)  Any  eligible  educational  institution. An "eligible educational
    15  institution" shall mean any public school district, a board  of  cooper-
    16  ative  educational  services, a public elementary or secondary school, a
    17  school approved pursuant to article eighty-five or  eighty-nine  of  the
    18  education  law  to  serve students with disabilities of school age, or a
    19  nonpublic elementary or secondary school that  provides  instruction  in
    20  grade one or above, all public library systems as defined in subdivision
    21  one  of  section  two  hundred seventy-two of the education law, and all
    22  public and free association libraries  as  such  terms  are  defined  in
    23  subdivision two of section two hundred fifty-three of the education law.
    24    § 2. This act shall take effect immediately and apply to taxable peri-
    25  ods beginning on or after January 1, 2016.
 
    26                                   PART ZZ
 
    27    Section  1.  Section  19  of  part CC of a chapter of the laws of 2015
    28  amending the vehicle and traffic law relating to directing the  city  of
    29  Buffalo  to  adjudicate  traffic infractions, as proposed in legislative
    30  bill numbers S.2008-B and A.3008-B, is amended to read as follows:
    31    § 19. This act shall take effect on  [May]  July  1,  2015;  provided,
    32  however, that effective immediately the city of Buffalo is authorized to
    33  enact  a  local law establishing a traffic violations agency in the city
    34  of Buffalo; provided, however, that the provisions of sections four  and
    35  five  of this act shall take effect on the same date as the enactment of
    36  such local law, herein authorized,  establishing  a  traffic  violations
    37  agency; provided, further, that if established, such agency and the city
    38  of Buffalo shall comply with all the provisions of law set forth in this
    39  act;  provided,  however, that the amendments made to section 371 of the
    40  general municipal law, made by sections six, seven  and  eight  of  this
    41  act,  shall  not  affect the expiration of such section and be deemed to
    42  expire therewith; and provided, further, that the city of Buffalo  shall
    43  notify  the  legislative bill drafting commission upon the occurrence of
    44  the enactment of the local law provided for in  this  section  in  order
    45  that  the  commission may maintain an accurate and timely effective data
    46  base of the official text of the laws of the state of New York in furth-
    47  erance of effectuating the provisions of section 44 of  the  legislative
    48  law and section 70-b of the public officers law.
    49    §  2.  This  act shall take effect on the same date as such chapter of
    50  the laws of 2015 takes effect.
    51    § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
    52  sion, section or part of this act shall be  adjudged  by  any  court  of

        S. 2009--B                         85                         A. 3009--B
 
     1  competent  jurisdiction  to  be invalid, such judgment shall not affect,
     2  impair, or invalidate the remainder thereof, but shall  be  confined  in
     3  its  operation  to the clause, sentence, paragraph, subdivision, section
     4  or part thereof directly involved in the controversy in which such judg-
     5  ment shall have been rendered. It is hereby declared to be the intent of
     6  the  legislature  that  this  act  would  have been enacted even if such
     7  invalid provisions had not been included herein.
     8    § 3. This act shall take effect immediately  provided,  however,  that
     9  the applicable effective date of Parts A through ZZ of this act shall be
    10  as specifically set forth in the last section of such Parts.
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