STATE OF NEW YORK
________________________________________________________________________
1579
2019-2020 Regular Sessions
IN SENATE
January 15, 2019
___________
Introduced by Sen. GALLIVAN -- read twice and ordered printed, and when
printed to be committed to the Committee on Investigations and Govern-
ment Operations
AN ACT to amend the tax law and the administrative code of the city of
New York, in relation to making technical corrections thereto; to
repeal subsection (i) of section 612 of the tax law relating to the
elimination of the personal income tax deduction for percentage
depletion; and to repeal certain provisions of the tax law relating
thereto
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subsection (i) of section 612 of the tax law is REPEALED.
2 § 2. Subdivision (i) of section 11-1712 of the administrative code of
3 the city of New York, as amended by chapter 333 of the laws of 1987, is
4 amended to read as follows:
5 (i) In the case of mines, oil and gas wells and other natural depos-
6 its, any allowance for percentage depletion pursuant to section six
7 hundred thirteen or section six hundred thirteen A of the internal
8 revenue code shall be added to federal adjusted gross income. However,
9 with respect to the property as to which such addition to federal
10 adjusted gross income is required, an allowance for depletion shall be
11 subtracted from federal adjusted gross income in the amount that would
12 be deductible under section six hundred eleven of such code if the
13 deduction for an allowance for depletion were computed without reference
14 to such section six hundred thirteen or section six hundred thirteen A.
15 [With respect to the computation of depletion pursuant to this subdivi-
16 sion, the basis for such computation shall be the basis for state income
17 tax purposes provided for in subsection (i) of section six hundred
18 twelve of the tax law.] The portion of any gain from the sale or other
19 disposition of such property having a higher adjusted basis for city
20 income tax purposes than for federal income tax purposes, that does not
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00107-01-9
S. 1579 2
1 exceed such difference in basis, shall be subtracted from federal
2 adjusted gross income.
3 § 3. Paragraph 10 of subsection (b) of section 612 of the tax law is
4 REPEALED.
5 § 4. Paragraph 13 of subsection (c) of section 612 of the tax law is
6 REPEALED.
7 § 5. Subsection 4 of section 618 of the tax law, as amended by section
8 9 of part C of chapter 25 of the laws of 2009, is amended to read as
9 follows:
10 (4) There shall be added or subtracted (as the case may be) the
11 modifications described in paragraphs (6)[, (10)], (17), (18), (19),
12 (20), (21), (22), (23), (24), (25), (26), (27), (29), (38) and (39) of
13 subsection (b) and in paragraphs (11)[, (13)], (15), [(19),] (20), (21),
14 (22), (23), (24), (25), (26) and (28) of subsection (c) of section six
15 hundred twelve of this part.
16 § 6. Subsection 4 of section 618 of the tax law, as separately amended
17 by section 5 of part HH-1 of chapter 57 of the laws of 2008 and section
18 9 of part C of chapter 25 of the laws of 2009, is amended to read as
19 follows:
20 (4) There shall be added or subtracted (as the case may be) the
21 modifications described in paragraphs (6)[, (10)], (17), (18), (19),
22 (20), (21), (22), (23), (24), (25), (26), (27), [(28),] (29), (38) and
23 (39) of subsection (b) and in paragraphs (11)[, (13)], (15), [(19),]
24 (20), (21), (22), (23), (24), (25), (26) and (28) of subsection (c) of
25 section six hundred twelve of this part.
26 § 7. This act shall take effect immediately and shall apply to all
27 taxable years beginning on or after January 1, 2019; provided that the
28 amendments to subsection 4 of section 618 of the tax law made by section
29 five of this act shall be subject to the expiration and reversion of
30 such subsection pursuant to section 8 of chapter 782 of the laws of
31 1988, as amended, when upon such date the provisions of section six of
32 this act shall take effect.
