A06652 Summary:

BILL NOA06652
 
SAME ASNo Same As
 
SPONSORKolb (MS)
 
COSPNSRGoodell, Raia, Palmesano
 
MLTSPNSRBlankenbush, DiPietro
 
Rpld Art 21, §524 sub (b), amd Tax L, generally; amd §30, Can L; amd §38, Hway L; amd §385, Pub Auth L; rpld §54 sub 1 ¶j sub¶ 11, amd §89-b, St Fin L; amd §§510 & 514, V & T L
 
Establishes Work-NY by implementing tax credits for various businesses based on hiring and investments.
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A06652 Actions:

BILL NOA06652
 
03/14/2019referred to ways and means
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A06652 Committee Votes:

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A06652 Floor Votes:

There are no votes for this bill in this legislative session.
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A06652 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          6652
 
                               2019-2020 Regular Sessions
 
                   IN ASSEMBLY
 
                                     March 14, 2019
                                       ___________
 
        Introduced by M. of A. KOLB, GOODELL, RAIA, PALMESANO -- Multi-Sponsored
          by  -- M. of A. BLANKENBUSH, DiPIETRO -- read once and referred to the
          Committee on Ways and Means
 
        AN ACT to amend the tax law, in relation to establishing the Hire-NY tax
          credit (Part A); to amend the tax law, in relation to a small business
          tax credit (Part B); to amend the tax law, in relation to  eliminating
          the corporate franchise and personal income tax on manufacturers (Part
          C);  to  amend  the canal law, the highway law, the public authorities
          law, the tax law, the vehicle and traffic law, and the  state  finance
          law,  in  relation  to  making  technical changes relating thereto; to
          repeal article 21 and subdivision (b) of section 524 of  the  tax  law
          relating  to  highway use tax; and to repeal certain provisions of the
          state finance law relating thereto (Part D)
 
          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 components of legislation relating
     2  to  "Work-NY".  Each component is wholly contained within a Part identi-
     3  fied as Parts A through  D.  The  effective  date  for  each  particular
     4  provision contained within such Part is set forth in the last section of
     5  such Part. Any provision in any section contained within a Part, includ-
     6  ing  the  effective date of the Part, which makes reference to a section
     7  "of this act", when used in connection with that  particular  component,
     8  shall  be  deemed  to mean and refer to the corresponding section of the
     9  Part in which it is found. Section three of  this  act  sets  forth  the
    10  general effective date of this act.
 
    11                                   PART A
 
    12    Section  1.  The tax law is amended by adding a new section 44 to read
    13  as follows:
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06121-02-9

        A. 6652                             2
 
     1    § 44. Hire-NY tax credit. (a) Allowance of credit. A  taxpayer,  which
     2  is subject to tax under article nine-A or twenty-two of this chapter and
     3  which creates a new job, shall be allowed a credit against such tax. The
     4  amount  of  the  credit allowed under this section shall be equal to the
     5  product  of 6.85 percent and the gross wages paid for each new employee.
     6  The credit shall not be more than five  thousand  dollars  for  any  new
     7  employee  for  one  full  year of employment; if a new employee has been
     8  hired for less than a full tax year this amount shall  be  prorated  and
     9  apportioned to each tax year but shall in no way decrease the full three
    10  consecutive  years  of  credit  eligibility. The taxpayer may claim this
    11  credit for each new employee for a period of three consecutive years  of
    12  employment. The taxpayer may offset quarterly estimated tax returns with
    13  the amount of this credit earned in any previous quarter.
    14    (b) Unemployment enhancement. For calendar years two thousand nineteen
    15  and  two  thousand  twenty  if a new employee was receiving unemployment
    16  insurance benefits at the time of hire,  an  additional  three  thousand
    17  dollar credit will be allowed for the first full year of employment.
    18    (c)  Definitions.  As  used in this section, the following terms shall
    19  have the following meanings:
    20    (1) "New employee" shall mean any full time employee that  causes  the
    21  total  number  of  employees to increase above base employment or credit
    22  employment, whichever is higher.
    23    (2) "Base year" shall mean calendar year two thousand nineteen.
    24    (3) "Base employment" shall mean  the  average  number  of  full  time
    25  employees  or full time equivalent employees during the base year. For a
    26  new business, base employment shall begin at zero.
    27    (4) "Credit employment" shall mean base employment plus the number  of
    28  new employees for which a credit is earned for the prior tax years.
    29    (d)  Replacement  employees.  If a new employee for which a credit was
    30  earned leaves the payroll and an employee is hired  which  brings  total
    31  employment  above  base  employment  but  at  or below credit employment
    32  level, the credit eligibility period for such employee  shall  be  three
    33  years  minus  the  amount  of  time (rounded to the next full month) the
    34  employer received the credit for the departing employee.
    35    (e) Credit disallowed. No credit shall be allowed under  this  section
    36  to  a  taxpayer  for  any  new employee if the taxpayer claims any other
    37  credit under this article for such new employee where the basis of  such
    38  other credit is an increase in employment.
    39    §  2. Section 210-B of the tax law is amended by adding a new subdivi-
    40  sion 53 to read as follows:
    41    53. Hire-NY tax credit. (a) Allowance of credit. A  taxpayer  will  be
    42  allowed  a  credit,  to be computed as provided in section forty-four of
    43  this chapter, against the tax imposed by this article.
    44    (b) Application of credit. The credit allowed under  this  subdivision
    45  for  any  taxable  year may not reduce the tax due for such year to less
    46  than the amount prescribed  in  paragraph  (d)  of  subdivision  one  of
    47  section  two  hundred  ten  of this article.   However, if the amount of
    48  credit allowed under this subdivision for any taxable year  reduces  the
    49  tax  to  such  amount,  any amount of credit thus not deductible in such
    50  taxable year will be treated as an overpayment of tax to be credited  or
    51  refunded  in  accordance  with  the  provisions  of section one thousand
    52  eighty-six  of  this  chapter.  Provided,  however,  the  provisions  of
    53  subsection  (c)  of  section  one  thousand eighty-eight of this chapter
    54  notwithstanding, no interest will be paid thereon.
    55    § 3.  Section 606 of the tax law is amended by adding a new subsection
    56  (jjj) to read as follows:

        A. 6652                             3
 
     1    (jjj) Hire-NY tax credit. (1) A taxpayer will be allowed a credit,  to
     2  the extent allowed under section forty-four of this chapter, against the
     3  tax imposed by this article.
     4    (2)  If the amount of the credit allowed under this subsection for any
     5  taxable year shall exceed the taxpayer's tax for such year,  the  excess
     6  shall  be treated as an overpayment of tax to be credited or refunded in
     7  accordance with the provisions of section six hundred eighty-six of this
     8  article, provided, however, that no interest shall be paid thereon.
     9    § 4. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
    10  of  the  tax  law  is  amended  by adding a new clause (xliv) to read as
    11  follows:
    12  (xliv) Hire-NY tax credit            Amount of credit under
    13  under subsection (jjj)               subdivision fifty-three of section
    14                                       two hundred ten-B
    15    § 5. This act shall take effect immediately and shall apply to taxable
    16  years beginning on or after January 1, 2019.
 
    17                                   PART B
 
    18    Section 1. Section 606 of the tax law  is  amended  by  adding  a  new
    19  subsection (kkk) to read as follows:
    20    (kkk)  Small  business  tax  credit. (1) A qualified taxpayer shall be
    21  allowed a credit against the tax imposed by this article  equal  to  six
    22  and sixty-five hundredths percent of qualified business income.
    23    (2) For the purposes of this subsection, the terms:
    24    (A)  "qualified  taxpayer"  shall  mean a small business as defined by
    25  section one hundred thirty-one of the economic development law  and  who
    26  has net business income of less than two hundred fifty thousand dollars.
    27    (B) "qualified business income" shall mean ten percent of the business
    28  income of the taxpayer as defined in the laws of the United States.
    29    (3)  If the amount of the credit allowed under this subsection for any
    30  taxable year shall exceed the taxpayer's tax for such year,  the  excess
    31  shall be treated as an  overpayment of tax to be credited or refunded in
    32  accordance with the provisions of section six hundred eighty-six of this
    33  article, provided, however, no interest shall be paid thereon.
    34    § 2. This act shall take effect immediately and shall apply to taxable
    35  years beginning on or after January 1, 2019.
 
    36                                   PART C
 
    37    Section 1. Subparagraph 1 of paragraph (b) of subdivision 1 of section
    38  210  of the tax law, as amended by section 18 of part T of chapter 59 of
    39  the laws of 2015, is amended to read as follows:
    40    (1) [(i)] The amount prescribed by this paragraph  shall  be  computed
    41  at .15 percent for each dollar of the taxpayer's total business capital,
    42  or  the  portion  thereof  apportioned  within  the state as hereinafter
    43  provided for taxable years beginning before January first, two  thousand
    44  sixteen.  However,  in  the case of a cooperative housing corporation as
    45  defined in the internal revenue code, the applicable rate shall  be  .04
    46  percent  until  taxable  years  beginning on or after January first, two
    47  thousand twenty. The rate of tax for subsequent tax years  shall  be  as
    48  follows:  .125  percent  for taxable years beginning on or after January
    49  first, two thousand sixteen  and  before  January  first,  two  thousand
    50  seventeen;  .100 percent for taxable years beginning on or after January
    51  first, two thousand seventeen and before  January  first,  two  thousand
    52  eighteen;  .075  percent for taxable years beginning on or after January

        A. 6652                             4

     1  first, two thousand eighteen and  before  January  first,  two  thousand
     2  nineteen;  .050  percent for taxable years beginning on or after January
     3  first, two thousand nineteen and  before  January  first,  two  thousand
     4  twenty;  .025  percent  for  taxable years beginning on or after January
     5  first, two thousand twenty and before January first, two thousand  twen-
     6  ty-one;  and zero percent for years beginning on or after January first,
     7  two thousand twenty-one. The rate  of  tax  for  a  qualified  New  York
     8  manufacturer  shall  be  .132  percent for taxable years beginning on or
     9  after January first, two thousand fifteen and before January first,  two
    10  thousand  sixteen,  .106 percent for taxable years beginning on or after
    11  January first, two thousand sixteen and before January first, two  thou-
    12  sand  seventeen,  .085  percent  for taxable years beginning on or after
    13  January first, two thousand seventeen  and  before  January  first,  two
    14  thousand  eighteen; .056 percent for taxable years beginning on or after
    15  January first, two thousand eighteen and before January first, two thou-
    16  sand nineteen; [.038] and zero percent for taxable years beginning on or
    17  after January first, two thousand nineteen and  [before  January  first,
    18  thousand  twenty;  .019  percent for taxable years beginning on or after
    19  January first, two thousand twenty and before January first,  two  thou-
    20  sand  twenty-one; and zero percent for years beginning on or after Janu-
    21  ary first, two thousand twenty-one. (ii) In no event  shall  the  amount
    22  prescribed by this paragraph exceed three hundred fifty thousand dollars
    23  for  qualified  New  York manufacturers and for all other taxpayers five
    24  million dollars] thereafter.
    25    § 2. Paragraph (d) of subdivision 1 of section 210 of the tax law,  as
    26  amended  by  section  12  of  part  A of chapter 59 of the laws of 2014,
    27  subparagraphs 1 and 2 as amended by section 19 of part T of  chapter  59
    28  of  the laws of 2015, clause (D) of subparagraph 1 as amended by section
    29  2 and clause (D-1) of subparagraph 1 as added by section 3 of part VV of
    30  chapter 59 of the laws of 2017, is amended to read as follows:
    31    (d) Fixed dollar minimum.  (1) (A) The amount prescribed by this para-
    32  graph for New York S corporations, other than New  York  S  corporations
    33  that are qualified New York manufacturers or qualified emerging technol-
    34  ogy  companies,  will  be  determined  in  accordance with the following
    35  table:

    36  If New York receipts are:                The fixed dollar minimum
    37                                           tax is:
    38   not more than $100,000                               $   25
    39   more than $100,000 but not over $250,000             $   50
    40   more than $250,000 but not over $500,000             $  175
    41   more than $500,000 but not over $1,000,000           $  300
    42   more than $1,000,000 but not over $5,000,000         $1,000
    43   more than $5,000,000 but not over $25,000,000        $3,000
    44   Over $25,000,000                                     $4,500
 
    45    (B) Provided further, the amount prescribed by this paragraph for  New
    46  York  S  corporations  that  are  qualified  New  York manufacturers, as
    47  defined in subparagraph (vi) of paragraph (a) of this  subdivision,  and
    48  for  New  York  S  corporations  that  are qualified emerging technology
    49  companies under paragraph (c) of subdivision one of  section  thirty-one
    50  hundred  two-e  of  the  public  authorities  law  regardless of the ten
    51  million dollar limitation expressed in subparagraph one  of  such  para-
    52  graph (c), will be determined in accordance with the following tables.

        A. 6652                             5
 
     1  For taxable years beginning on or after January 1, 2015 and before Janu-
     2  ary 1, 2016:
 
     3  If New York receipts are:                The fixed dollar minimum
     4                                           tax is:
 
     5   not more than $100,000                               $   22
     6   more than $100,000 but not over $250,000             $   44
     7   more than $250,000 but not over $500,000             $  153
     8   more than $500,000 but not over $1,000,000           $  263
     9   more than $1,000,000 but not over $5,000,000         $  877
    10   more than $5,000,000 but not over $25,000,000        $2,631
    11   Over $25,000,000                                     $3,947
 
    12  For taxable years beginning on or after January 1, 2016 and before Janu-
    13  ary 1, 2018:
 
    14  If New York receipts are:                The fixed dollar minimum
    15                                           tax is:
    16   not more than $100,000                               $   21
    17   more than $100,000 but not over $250,000             $   42
    18   more than $250,000 but not over $500,000             $  148
    19   more than $500,000 but not over $1,000,000           $  254
    20   more than $1,000,000 but not over $5,000,000         $  846
    21   more than $5,000,000 but not over $25,000,000        $2,538
    22   Over $25,000,000                                     $3,807
 
    23  For taxable years beginning on or after January 1, 2018 and before Janu-
    24  ary 1, 2019:

    25  If New York receipts are:                The fixed dollar minimum
    26                                           tax is:
    27   not more than $100,000                               $   19
    28   more than $100,000 but not over $250,000             $   38
    29   more than $250,000 but not over $500,000             $  131
    30   more than $500,000 but not over $1,000,000           $  225
    31   more than $1,000,000 but not over $5,000,000         $  750
    32   more than $5,000,000 but not over $25,000,000        $2,250
    33   Over $25,000,000                                     $3,375
 
    34  For  taxable  years  beginning  on  or  after January 1, 2019, the fixed
    35  dollar minimum tax is $0.
    36    (C) Provided further, the amount prescribed by this  paragraph  for  a
    37  qualified  New  York  manufacturer,  as  defined in subparagraph (vi) of
    38  paragraph (a) of this subdivision, and a qualified  emerging  technology
    39  company  under  paragraph  (c)  of subdivision one of section thirty-one
    40  hundred two-e of the  public  authorities  law  regardless  of  the  ten
    41  million  dollar  limitation  expressed in subparagraph one of such para-
    42  graph (c), that is not a New York S corporation, will be  determined  in
    43  accordance with the following tables. However, with respect to qualified
    44  New  York  manufacturers,  the amounts in these tables will apply in the
    45  case of a combined report only  if  the  combined  group  satisfies  the
    46  requirements  to  be  a  qualified New York manufacturer as set forth in
    47  such subparagraph (vi).

        A. 6652                             6
 
     1  For tax years beginning on or after January 1, 2015 and  before  January
     2  1, 2016:

     3  If New York receipts are:                The fixed dollar minimum
     4                                           tax is:
     5   not more than $100,000                               $   22
     6   more than $100,000 but not over $250,000             $   66
     7   more than $250,000 but not over $500,000             $  153
     8   more than $500,000 but not over $1,000,000           $  439
     9   more than $1,000,000 but not over $5,000,000         $1,316
    10   more than $5,000,000 but not over $25,000,000        $3,070
    11   Over $25,000,000                                     $4,385
 
    12  For  tax  years beginning on or after January 1, 2016 and before January
    13  1, 2018:
 
    14  If New York receipts are:                The fixed dollar minimum
    15                                           tax is:
    16   not more than $100,000                               $   21
    17   more than $100,000 but not over $250,000             $   63
    18   more than $250,000 but not over $500,000             $  148
    19   more than $500,000 but not over $1,000,000           $  423
    20   more than $1,000,000 but not over $5,000,000         $1,269
    21   more than $5,000,000 but not over $25,000,000        $2,961
    22   Over $25,000,000                                     $4,230
 
    23  For tax years beginning on or after January 1, 2018 and  before  January
    24  1, 2019:
 
    25  If New York receipts are:                The fixed dollar minimum
    26                                           tax is:
    27   not more than $100,000                               $   19
    28   more than $100,000 but not over $250,000             $   56
    29   more than $250,000 but not over $500,000             $  131
    30   more than $500,000 but not over $1,000,000           $  375
    31   more than $1,000,000 but not over $5,000,000         $1,125
    32   more than $5,000,000 but not over $25,000,000        $2,625
    33   Over $25,000,000                                     $3,750
 
    34  For  tax  years  beginning on or after January 1, 2019, the fixed dollar
    35  minimum tax is $0.
 
    36    (D) Otherwise, for all other taxpayers not  covered  by  clauses  (A),
    37  (B),  (C)  and (D-1) of this subparagraph, the amount prescribed by this
    38  paragraph will be determined in accordance with the following table:
 
    39  If New York receipts are:                The fixed dollar minimum
    40                                           tax is:
    41   not more than $100,000                               $   25
    42   more than $100,000 but not over $250,000             $   75
    43   more than $250,000 but not over $500,000             $  175
    44   more than $500,000 but not over $1,000,000           $  500
    45   more than $1,000,000 but not over $5,000,000         $1,500
    46   more than $5,000,000 but not over $25,000,000        $3,500
    47   more than $25,000,000 but not over $50,000,000       $5,000
    48   more than $50,000,000 but not over $100,000,000      $10,000

        A. 6652                             7
 
     1   more than $100,000,000 but not over $250,000,000     $20,000
     2   more than $250,000,000 but not over $500,000,000     $50,000
     3   more than $500,000,000 but not over $1,000,000,000   $100,000
     4   Over $1,000,000,000                                  $200,000
 
     5    (D-1)  In  the  case  of a REIT or a RIC that is not a captive REIT or
     6  captive RIC, the amount prescribed by this paragraph will be  determined
     7  in accordance with the following table:
 
     8  If New York receipts are:                The fixed dollar minimum
     9                                           tax is:
    10   not more than $100,000                               $   25
    11   more than $100,000 but not over $250,000             $   75
    12   more than $250,000 but not over $500,000             $  175
    13   more than $500,000                                   $  500
    14    (E) For purposes of this paragraph, New York receipts are the receipts
    15  included  in  the numerator of the apportionment factor determined under
    16  section two hundred ten-A for the taxable year.
    17    (2) If the taxable year is less than twelve months, the amount of  New
    18  York  receipts  is determined by dividing the amount of the receipts for
    19  the taxable year by the number of months in the taxable year and  multi-
    20  plying the result by twelve, and the amount prescribed by this paragraph
    21  shall  be  reduced  by  twenty-five  percent of the period for which the
    22  taxpayer is subject to tax is more than six months  but  not  more  than
    23  nine months and by fifty percent if the period for which the taxpayer is
    24  subject to tax is not more than six months. In the case of a termination
    25  year of a New York S corporation, the sum of the tax computed under this
    26  paragraph  for  the  S  short year and for the C short year shall not be
    27  less than the amount computed under this paragraph as if the corporation
    28  were a New York C corporation for the entire taxable year.
    29    § 3. Subsection (i) of section  601  of  the  tax  law  is  relettered
    30  subsection (j) and a new subsection (i) is added to read as follows:
    31    (i)  Manufacturers.  Notwithstanding this or any other section of this
    32  article, a person's liability  for  tax  under  this  section,  if  such
    33  person's primary activity is in his or her role as a manufacturer, shall
    34  be zero for taxable years beginning on or after January first, two thou-
    35  sand nineteen. For purposes of this section a person shall be classified
    36  as a manufacturer if, he or she is principally engaged in the production
    37  of  goods  by  manufacturing,  processing, assembling, refining, mining,
    38  extracting, farming, agriculture, horticulture,  floriculture,  viticul-
    39  ture  or  commercial fishing. In addition, for purposes of computing the
    40  capital base in a combined report,  the  group  shall  be  considered  a
    41  manufacturer  for  purposes  of this article, only if the combined group
    42  during the taxable year is principally engaged  in  the  activities  set
    43  forth  in  this  subsection, or any combination thereof. For purposes of
    44  this subsection, a taxpayer is "principally engaged"  in  the  described
    45  activity  if,  during  the  taxable year, more than fifty percent of the
    46  gross receipts of the taxpayer are derived from receipts from activities
    47  covered by this subsection.
    48    § 4. This act shall take effect immediately; provided,  however,  that
    49  the commissioner of taxation and finance is authorized to promulgate any
    50  and  all rules and regulations and take any other measures necessary for
    51  the timely implementation of this act on its effective date on or before
    52  such date.
 
    53                                   PART D

        A. 6652                             8
 
     1    Section 1. Article 21 of the tax law is REPEALED.
     2    § 2. Paragraph (e) of subdivision 7 of section 30 of the canal law, as
     3  amended  by  chapter  335  of  the  laws  of 2001, is amended to read as
     4  follows:
     5    (e) No such certificate authorizing or  approving  the  first  partial
     6  payment  or  any  final  payment  to  a foreign contractor shall be made
     7  unless such contractor shall furnish satisfactory proof that  all  taxes
     8  due  the  commissioner  of taxation and finance by such contractor under
     9  the provisions of or pursuant to a law enacted pursuant to the authority
    10  of article nine, nine-A,  twelve-A,  [twenty-one,]  twenty-two,  twenty-
    11  eight,  twenty-nine or thirty of the tax law have been paid. The certif-
    12  icate of the commissioner of taxation and finance to the effect that all
    13  such taxes have been paid shall  be,  for  purpose  of  this  paragraph,
    14  conclusive  proof  of  the  payment  of  such  taxes.  The term "foreign
    15  contractor" as used in this subdivision means, in the case of  an  indi-
    16  vidual,  a  person who is not a resident of this state, in the case of a
    17  partnership, one having one or more partners  not  a  resident  of  this
    18  state,  and  in  the  case of a corporation, one not organized under the
    19  laws of this state.
    20    § 3. Paragraph (e) of subdivision 7 of section 38 of the highway  law,
    21  as amended by chapter 196 of the laws of 1981 and as relettered by chap-
    22  ter 153 of the laws of 1984, is amended to read as follows:
    23    (e)  No  such  certificate  approving or authorizing the first partial
    24  payment or any final payment to  a  foreign  contractor  shall  be  made
    25  unless  such  contractor shall furnish satisfactory proof that all taxes
    26  due the state tax commission by such contractor, under the provisions of
    27  or pursuant to a law enacted pursuant to the authority of article  nine,
    28  [nine-a]  nine-A, [twelve-a] twelve-A, [sixteen, sixteen-a, twenty-one,]
    29  twenty-two, [twenty-three,] twenty-eight, twenty-nine or thirty  of  the
    30  tax  law  [or article two-E of the general city law] have been paid. The
    31  certificate of the state tax commission to  the  effect  that  all  such
    32  taxes have been paid shall be, for purpose of this paragraph, conclusive
    33  proof  of  the  payment  of such taxes. The term "foreign contractor" as
    34  used in this subdivision means, in the case of an individual,  a  person
    35  who  is  not a resident of this state, in the case of a partnership, one
    36  having one or more partners not a resident of this  state,  and  in  the
    37  case of a corporation, one not organized under the laws of this state.
    38    §  4.  Paragraph (c) of subdivision 1 and subdivision 9 of section 385
    39  of the public authorities law, paragraph (c) of subdivision 1 as amended
    40  by chapter 129 of the laws of 1995, subdivision 9 as added by chapter 56
    41  of the laws of 1993, are amended to read as follows:
    42    (c) Such obligations shall be issued or incurred with the approval  of
    43  the  director  of  the  budget  and  shall be special obligations of the
    44  authority secured by and payable solely out of amounts  appropriated  by
    45  the  legislature  as authorized pursuant to section eighty-nine-b of the
    46  state finance law without recourse against any other assets, revenues or
    47  funds of or other payments due to the authority. Upon payments  of  such
    48  appropriated  amounts  from  the  fund  established  pursuant to section
    49  eighty-nine-b of the state finance law to the account of the  authority,
    50  such  funds  may  be pledged by the authority to secure its bonds, notes
    51  and other obligations authorized by paragraph (b)  of  this  subdivision
    52  and  shall be held free and clear of any claim by any person arising out
    53  of or in connection with articles twelve-A[,] and thirteen-A [and  twen-
    54  ty-one] of the tax law. Without limiting the generality of the foregoing
    55  and  without limiting the rights and duties of the commissioner of taxa-
    56  tion and finance under articles twelve-A[,] and thirteen-A [and  twenty-

        A. 6652                             9

     1  one]  of  the  tax  law, no taxpayer, or any other person, including the
     2  state, shall have any right or claim against the authority or any of its
     3  bondholders to any moneys appropriated and transferred  from  the  dedi-
     4  cated highway and bridge trust fund established by section eighty-nine-b
     5  of  the state finance law for or in respect of a refund, rebate, credit,
     6  reimbursement or other repayment of taxes paid under  such  articles  of
     7  the tax law.
     8    9.  Nothing  contained in this section shall be deemed to restrict the
     9  right of the state to amend, repeal, modify or otherwise alter  statutes
    10  imposing  or  relating to any taxes or fees, including the taxes imposed
    11  pursuant to section two  hundred  eighty-four[,  articles]  and  article
    12  thirteen-A  [and  twenty-one] of the tax law and fees imposed by section
    13  four hundred one of the vehicle and traffic law. The authority shall not
    14  include within any resolution, contract or agreement with holders of the
    15  bonds, notes and other obligations issued under this title any provision
    16  which provides that a default occurs as a result of the state exercising
    17  its right to amend, repeal, modify or otherwise alter any such taxes and
    18  fees.
    19    § 5. Subparagraph 11 of paragraph j of subdivision 1 of section 54  of
    20  the state finance law is REPEALED.
    21    § 6. Subdivisions twentieth and twenty-sixth of section 171 of the tax
    22  law,  subdivision  twentieth  as  amended  by chapter 282 of the laws of
    23  1986, subdivision twenty-sixth as amended by chapter 61 of the  laws  of
    24  1989 and paragraph a of subdivision twenty-sixth as amended by section 1
    25  of  subpart D of part V-1 of chapter 57 of the laws of 2009, are amended
    26  to read as follows:
    27    Twentieth. Have authority, of his  own  motion,  to  abate  any  small
    28  unpaid  balance  of  an  assessment  of tax, or any liability in respect
    29  thereof, under articles twelve-A, eighteen, or twenty [or twenty-one] of
    30  this chapter,  if  such  commissioner  determines  under  uniform  rules
    31  prescribed  by him that the administration and collection costs involved
    32  would not warrant collection of the amount due. He may  also  abate,  of
    33  his  own  motion,  the  unpaid  portion of the assessment of any of such
    34  taxes, or any liability  in  respect  thereof,  which  is  excessive  in
    35  amount,  or is assessed after the expiration of the period of limitation
    36  properly applicable thereto, or is erroneously or illegally assessed. No
    37  claim for abatement under this subdivision shall be  filed  for  any  of
    38  such taxes.
    39    Twenty-sixth.  a. Set the overpayment and underpayment rates of inter-
    40  est  for  purposes of articles twelve-A, eighteen, and twenty [and twen-
    41  ty-one] of this chapter. Such rates shall be the overpayment and  under-
    42  payment  rates of interest set pursuant to subsection (e) of section one
    43  thousand ninety-six of this chapter, but the underpayment rate shall not
    44  be less than seven and one-half percent per annum. Any such rates set by
    45  such commissioner shall apply to taxes, or any  portion  thereof,  which
    46  remain  or  become  due  or overpaid (other than overpayments under such
    47  article twenty and not including reimbursements, if any,  under  any  of
    48  such articles) on or after the date on which such rates become effective
    49  and shall apply only with respect to interest computed or computable for
    50  periods or portions of periods occurring in the period during which such
    51  rates are in effect. In computing the amount of any interest required to
    52  be  paid under such articles by such commissioner or by the taxpayer, or
    53  any other amount determined by reference to  such  amount  of  interest,
    54  such interest and such amount shall be compounded daily.

        A. 6652                            10
 
     1    b.  Cross-reference.  For  provisions  relating  to  the  power of the
     2  commissioner of taxation and finance to abate small amounts of interest,
     3  see subdivision twentieth of this section.
     4    §  7.  Subdivision  1  of  section 171-a of the tax law, as amended by
     5  section 3 of part MM of chapter 59 of the laws of 2018,  is  amended  to
     6  read as follows:
     7    1.  All  taxes,  interest, penalties and fees collected or received by
     8  the commissioner or the commissioner's duly authorized agent under arti-
     9  cles nine (except section one hundred eighty-two-a thereof and except as
    10  otherwise  provided  in  section  two  hundred  five  thereof),  nine-A,
    11  twelve-A  (except  as  otherwise provided in section two hundred eighty-
    12  four-d thereof), thirteen, thirteen-A (except as otherwise  provided  in
    13  section  three  hundred  twelve  thereof),  eighteen,  nineteen,  twenty
    14  (except as otherwise provided in section four hundred eighty-two  there-
    15  of),  twenty-B,  [twenty-one,]  twenty-two,  twenty-four,  [twenty-six,]
    16  twenty-eight (except as otherwise provided in section eleven hundred two
    17  or eleven hundred three thereof), twenty-eight-A,  twenty-nine-B,  thir-
    18  ty-one  (except  as otherwise provided in section fourteen hundred twen-
    19  ty-one thereof), thirty-three and thirty-three-A of this  chapter  shall
    20  be  deposited  daily in one account with such responsible banks, banking
    21  houses or trust companies as may be designated by  the  comptroller,  to
    22  the credit of the comptroller. Such an account may be established in one
    23  or  more  of such depositories. Such deposits shall be kept separate and
    24  apart from all other money in the possession  of  the  comptroller.  The
    25  comptroller  shall require adequate security from all such depositories.
    26  Of the total revenue collected or received under such articles  of  this
    27  chapter,  the  comptroller  shall retain in the comptroller's hands such
    28  amount as the commissioner may determine to be necessary for refunds  or
    29  reimbursements  under  such articles of this chapter out of which amount
    30  the comptroller shall pay any refunds or reimbursements to which taxpay-
    31  ers shall be entitled under the provisions  of  such  articles  of  this
    32  chapter. The commissioner and the comptroller shall maintain a system of
    33  accounts  showing  the amount of revenue collected or received from each
    34  of the taxes imposed by such articles.  The comptroller, after reserving
    35  the amount to pay such refunds or reimbursements, shall,  on  or  before
    36  the  tenth  day of each month, pay into the state treasury to the credit
    37  of the general fund all revenue deposited under this section during  the
    38  preceding  calendar  month  and remaining to the comptroller's credit on
    39  the last day of such preceding month, (i) except  that  the  comptroller
    40  shall  pay  to  the  state  department of social services that amount of
    41  overpayments of tax imposed by article twenty-two of  this  chapter  and
    42  the interest on such amount which is certified to the comptroller by the
    43  commissioner  as  the  amount  to  be  credited against past-due support
    44  pursuant to subdivision six of section one hundred seventy-one-c of this
    45  article, (ii) and except that the comptroller shall pay to the New  York
    46  state  higher education services corporation and the state university of
    47  New York or the city university of New York respectively that amount  of
    48  overpayments  of  tax  imposed by article twenty-two of this chapter and
    49  the interest on such amount which is certified to the comptroller by the
    50  commissioner as the amount to be credited against the amount of defaults
    51  in repayment of guaranteed student loans and state university  loans  or
    52  city  university  loans  pursuant  to  subdivision  five  of section one
    53  hundred seventy-one-d and subdivision six of section one hundred  seven-
    54  ty-one-e of this article, (iii) and except further that, notwithstanding
    55  any  law, the comptroller shall credit to the revenue arrearage account,
    56  pursuant to section ninety-one-a of the state finance law,  that  amount

        A. 6652                            11
 
     1  of overpayment of tax imposed by article nine, nine-A, twenty-two, thir-
     2  ty, thirty-A, thirty-B or thirty-three of this chapter, and any interest
     3  thereon,  which  is  certified to the comptroller by the commissioner as
     4  the  amount  to  be credited against a past-due legally enforceable debt
     5  owed to a state agency pursuant to paragraph (a) of subdivision  six  of
     6  section one hundred seventy-one-f of this article, provided, however, he
     7  shall  credit  to  the  special  offset  fiduciary  account, pursuant to
     8  section ninety-one-c of the state finance law, any such amount  credita-
     9  ble  as  a liability as set forth in paragraph (b) of subdivision six of
    10  section one hundred seventy-one-f  of  this  article,  (iv)  and  except
    11  further  that  the  comptroller  shall  pay to the city of New York that
    12  amount of overpayment of tax imposed by article  nine,  nine-A,  twenty-
    13  two,  thirty, thirty-A, thirty-B or thirty-three of this chapter and any
    14  interest thereon that is certified to the comptroller by the commission-
    15  er as the amount to be credited against city of  New  York  tax  warrant
    16  judgment  debt  pursuant  to  section  one hundred seventy-one-l of this
    17  article, (v) and except further that the  comptroller  shall  pay  to  a
    18  non-obligated  spouse that amount of overpayment of tax imposed by arti-
    19  cle twenty-two of this chapter and the interest on such amount which has
    20  been credited pursuant to section one hundred seventy-one-c, one hundred
    21  seventy-one-d, one hundred seventy-one-e, one hundred  seventy-one-f  or
    22  one  hundred seventy-one-l of this article and which is certified to the
    23  comptroller by the commissioner as the  amount  due  such  non-obligated
    24  spouse  pursuant  to  paragraph  six  of  subsection  (b) of section six
    25  hundred fifty-one of this chapter; and (vi) the comptroller shall deduct
    26  a like amount which the comptroller shall pay into the treasury  to  the
    27  credit  of  the  general  fund  from amounts subsequently payable to the
    28  department of social services, the state university  of  New  York,  the
    29  city  university  of  New  York, or the higher education services corpo-
    30  ration, or the revenue arrearage account  or  special  offset  fiduciary
    31  account  pursuant  to  section ninety-one-a or ninety-one-c of the state
    32  finance law, as the case may be, whichever had been credited the  amount
    33  originally  withheld  from  such  overpayment, and (vii) with respect to
    34  amounts originally withheld from such overpayment  pursuant  to  section
    35  one  hundred  seventy-one-l  of this article and paid to the city of New
    36  York, the comptroller shall collect a like amount from the city  of  New
    37  York.
    38    §  7-a.  Subdivision  1 of section 171-a of the tax law, as amended by
    39  section 4 of part MM of chapter 59 of the laws of 2018,  is  amended  to
    40  read as follows:
    41    1.  All  taxes,  interest, penalties and fees collected or received by
    42  the commissioner or the commissioner's duly authorized agent under arti-
    43  cles nine (except section one hundred eighty-two-a thereof and except as
    44  otherwise  provided  in  section  two  hundred  five  thereof),  nine-A,
    45  twelve-A  (except  as  otherwise provided in section two hundred eighty-
    46  four-d thereof), thirteen, thirteen-A (except as otherwise  provided  in
    47  section  three  hundred  twelve  thereof),  eighteen,  nineteen,  twenty
    48  (except as otherwise provided in section four hundred eighty-two  there-
    49  of),  [twenty-one,]  twenty-two, twenty-four, [twenty-six,] twenty-eight
    50  (except as otherwise provided in section eleven hundred  two  or  eleven
    51  hundred   three   thereof),  twenty-eight-A,  twenty-nine-B,  thirty-one
    52  (except as otherwise provided in  section  fourteen  hundred  twenty-one
    53  thereof),  thirty-three  and  thirty-three-A  of  this  chapter shall be
    54  deposited daily in one account  with  such  responsible  banks,  banking
    55  houses  or  trust  companies as may be designated by the comptroller, to
    56  the credit of the comptroller. Such an account may be established in one

        A. 6652                            12
 
     1  or more of such depositories. Such deposits shall be kept  separate  and
     2  apart  from  all  other  money in the possession of the comptroller. The
     3  comptroller shall require adequate security from all such  depositories.
     4  Of  the  total revenue collected or received under such articles of this
     5  chapter, the comptroller shall retain in the  comptroller's  hands  such
     6  amount  as the commissioner may determine to be necessary for refunds or
     7  reimbursements under such articles of this chapter out of  which  amount
     8  the comptroller shall pay any refunds or reimbursements to which taxpay-
     9  ers  shall  be  entitled  under  the provisions of such articles of this
    10  chapter. The commissioner and the comptroller shall maintain a system of
    11  accounts showing the amount of revenue collected or received  from  each
    12  of  the taxes imposed by such articles. The comptroller, after reserving
    13  the amount to pay such refunds or reimbursements, shall,  on  or  before
    14  the  tenth  day of each month, pay into the state treasury to the credit
    15  of the general fund all revenue deposited under this section during  the
    16  preceding  calendar  month  and remaining to the comptroller's credit on
    17  the last day of such preceding month, (i) except  that  the  comptroller
    18  shall  pay  to  the  state  department of social services that amount of
    19  overpayments of tax imposed by article twenty-two of  this  chapter  and
    20  the interest on such amount which is certified to the comptroller by the
    21  commissioner  as  the  amount  to  be  credited against past-due support
    22  pursuant to subdivision six of section one hundred seventy-one-c of this
    23  article, (ii) and except that the comptroller shall pay to the New  York
    24  state  higher education services corporation and the state university of
    25  New York or the city university of New York respectively that amount  of
    26  overpayments  of  tax  imposed by article twenty-two of this chapter and
    27  the interest on such amount which is certified to the comptroller by the
    28  commissioner as the amount to be credited against the amount of defaults
    29  in repayment of guaranteed student loans and state university  loans  or
    30  city  university  loans  pursuant  to  subdivision  five  of section one
    31  hundred seventy-one-d and subdivision six of section one hundred  seven-
    32  ty-one-e of this article, (iii) and except further that, notwithstanding
    33  any  law, the comptroller shall credit to the revenue arrearage account,
    34  pursuant to section ninety-one-a of the state finance law,  that  amount
    35  of overpayment of tax imposed by article nine, nine-A, twenty-two, thir-
    36  ty, thirty-A, thirty-B or thirty-three of this chapter, and any interest
    37  thereon,  which  is  certified to the comptroller by the commissioner as
    38  the amount to be credited against a past-due  legally  enforceable  debt
    39  owed  to  a state agency pursuant to paragraph (a) of subdivision six of
    40  section one hundred seventy-one-f of this article, provided, however, he
    41  shall credit to  the  special  offset  fiduciary  account,  pursuant  to
    42  section  ninety-one-c of the state finance law, any such amount credita-
    43  ble as a liability as set forth in paragraph (b) of subdivision  six  of
    44  section  one  hundred  seventy-one-f  of  this  article, (iv) and except
    45  further that the comptroller shall pay to the  city  of  New  York  that
    46  amount  of  overpayment  of tax imposed by article nine, nine-A, twenty-
    47  two, thirty, thirty-A, thirty-B or thirty-three of this chapter and  any
    48  interest thereon that is certified to the comptroller by the commission-
    49  er  as  the  amount  to be credited against city of New York tax warrant
    50  judgment debt pursuant to section  one  hundred  seventy-one-l  of  this
    51  article,  (v)  and  except  further  that the comptroller shall pay to a
    52  non-obligated spouse that amount of overpayment of tax imposed by  arti-
    53  cle twenty-two of this chapter and the interest on such amount which has
    54  been credited pursuant to section one hundred seventy-one-c, one hundred
    55  seventy-one-d,  one  hundred seventy-one-e, one hundred seventy-one-f or
    56  one hundred seventy-one-l of this article and which is certified to  the

        A. 6652                            13
 
     1  comptroller  by  the  commissioner  as the amount due such non-obligated
     2  spouse pursuant to paragraph  six  of  subsection  (b)  of  section  six
     3  hundred fifty-one of this chapter; and (vi) the comptroller shall deduct
     4  a  like  amount which the comptroller shall pay into the treasury to the
     5  credit of the general fund from  amounts  subsequently  payable  to  the
     6  department  of  social  services,  the state university of New York, the
     7  city university of New York, or the  higher  education  services  corpo-
     8  ration,  or  the  revenue  arrearage account or special offset fiduciary
     9  account pursuant to section ninety-one-a or ninety-one-c  of  the  state
    10  finance  law, as the case may be, whichever had been credited the amount
    11  originally withheld from such overpayment, and  (vii)  with  respect  to
    12  amounts  originally  withheld  from such overpayment pursuant to section
    13  one hundred seventy-one-l of this article and paid to the  city  of  New
    14  York,  the  comptroller shall collect a like amount from the city of New
    15  York.
    16    § 8. Subdivisions (c) and (d) of section 522 of the tax law, as  added
    17  by chapter 170 of the laws of 1994, are amended to read as follows:
    18    (c)  Denial,  suspension  and revocation. The commissioner, for cause,
    19  may deny a license and suspend or revoke any license issued  under  this
    20  section, after an opportunity for a hearing has been afforded the carri-
    21  er;  provided,  however,  that  a  license  may  be  denied or it may be
    22  suspended or revoked for failure to file a return as  required  pursuant
    23  to this article or for nonpayment of moneys due under this article prior
    24  to  a  hearing. A violation of any of the provisions of this article [or
    25  article twenty-one of this chapter] or of any rule or regulation of  the
    26  commissioner promulgated under this article [or such article twenty-one]
    27  shall  constitute sufficient cause for the denial, suspension or revoca-
    28  tion of a license. In addition, if the commissioner enters into a  coop-
    29  erative  agreement  with  other  jurisdictions  pursuant to section five
    30  hundred twenty-eight of this  article,  the  commissioner  may  deny  an
    31  application  for license where a license previously issued to the appli-
    32  cant is under suspension or revocation by any member jurisdiction and  a
    33  license  may  be  revoked  or  suspended for failure to comply with such
    34  agreement. A denial, revocation or suspension  of  a  license  shall  be
    35  final  unless  the applicant or licensee shall, within thirty days after
    36  the giving of notice of such denial, revocation or suspension,  petition
    37  the  division  of  tax  appeals for a hearing in accordance with article
    38  forty of this chapter. If the commissioner  enters  into  a  cooperative
    39  agreement  pursuant to such section five hundred twenty-eight, notice of
    40  a hearing shall be given and a hearing held within any time restrictions
    41  prescribed in such agreement.
    42    (d) Trip permits. In lieu of the license and  decal  provided  for  in
    43  subdivision  (a)  of  this  section,  any carrier, except as hereinafter
    44  limited, may apply to the commissioner for a trip permit for any  quali-
    45  fied  motor  vehicle to be operated by him or her on the public highways
    46  of this state. Application for the trip permit shall be made on  a  form
    47  prescribed by the commissioner and shall contain such information as the
    48  commissioner  shall  require.  The application shall be accompanied by a
    49  fee of twenty-five dollars for each qualified motor vehicle.  Each  trip
    50  permit shall be valid for a period of seventy-two hours from the time of
    51  its  issuance. The issuance of a trip permit for a qualified motor vehi-
    52  cle shall exempt the carrier from the requirement of filing returns  and
    53  payment  of  the taxes imposed by this article and section three hundred
    54  one-h of this chapter on the operation of such qualified  motor  vehicle
    55  for  the effective period of the permit but no refund application may be
    56  filed on account of trip permit applications. [Provided,  however,  that

        A. 6652                            14

     1  in order for any person liable for the tax to claim such exemption, such
     2  person  must  retain  a  copy  of the trip permit in his records for the
     3  complete period of time required by section five hundred seven  of  this
     4  chapter.]  A  carrier may not apply for more than ten trip permits under
     5  this section during a single calendar year.
     6    § 9. Section 528 of the tax law, as added by chapter 170 of  the  laws
     7  of  1994,  subdivision (b) as amended by section 35 of part K of chapter
     8  61 of the laws of 2011, is amended to read as follows:
     9    § 528. Procedure, administration and disposition  of  revenues.    (a)
    10  [General.  The provisions of subdivision two of section five hundred six
    11  and sections five hundred seven through five  hundred  fifteen  of  this
    12  chapter  (excluding sections five hundred eight, five hundred twelve and
    13  five hundred thirteen) shall apply to the  provisions  of  this  article
    14  with  the  same  force and effect as if the language of such subdivision
    15  and sections had been incorporated in full into  this  article  and  had
    16  expressly  referred  to the tax under this article, except to the extent
    17  that any such provision is either inconsistent with or not  relevant  to
    18  this article or inconsistent with a provision of any agreement which the
    19  commissioner  enters  into  pursuant to subdivision (b) of this section,
    20  with such modification as may be necessary to adapt the language of such
    21  provisions to the  tax  imposed  by  this  article,  provided  that  (1)
    22  notwithstanding  such  section  five hundred ten and subdivision four of
    23  section two thousand six of this chapter, a determination,  as  provided
    24  in  such  section  five hundred ten, relating to the tax imposed by this
    25  article, shall finally and conclusively fix such tax, unless the  person
    26  against  whom  it is assessed shall, within thirty days after the giving
    27  of notice of such determination, petition the division  of  tax  appeals
    28  for  a  hearing,  or  unless  the commissioner on the commissioner's own
    29  motion shall redetermine the same; (2) the term "vehicular  unit"  shall
    30  be  read  as  "qualified  motor vehicle"; (3) if the commissioner enters
    31  into a cooperative  agreement  under  this  section,  the  reference  in
    32  section  five  hundred  fourteen-a  of this chapter to the United States
    33  postmark shall include a postmark made by the Canadian  postal  service;
    34  and  (4)  if  the commissioner enters into a cooperative agreement under
    35  this section, for purposes of applying subdivision four of section  five
    36  hundred  fourteen  of  this  chapter, the banks, banking houses or trust
    37  companies which may be designated by the commissioner  may  include  any
    38  such  banks,  banking  houses  or  trust companies designated or seeking
    39  designation by other member jurisdictions. For purposes  of  determining
    40  the  amount  of  tax  due in accordance with section five hundred ten of
    41  this chapter as incorporated  by  this  subdivision,  any  return  filed
    42  before  the  last  day  prescribed  for its filing shall be deemed to be
    43  filed on such last day. The commissioner is authorized  to  provide  for
    44  the  joint  administration,  in  whole or in part, of the tax imposed by
    45  article twenty-one of this chapter and the tax imposed by this article.
    46    (b)]  Cooperative   agreements.   Notwithstanding   any   inconsistent
    47  provision of law, the commissioner is authorized to enter into a cooper-
    48  ative agreement with other states, the District of Columbia or provinces
    49  or  territories  of  Canada for the administration of the tax imposed by
    50  this article and similar taxes imposed by other member jurisdictions and
    51  for the reporting and payment of tax  to  a  single  base  state  and  a
    52  proportional  sharing of revenue of taxes relating to fuel use among the
    53  jurisdictions where a qualified motor vehicle is operated. The agreement
    54  may provide for  determining  the  base  state  for  carriers,  carriers
    55  records requirements, audit procedures, exchange of information, persons
    56  eligible for tax licensing, defining qualified motor vehicles, determin-

        A. 6652                            15
 
     1  ing if bonding is required and requiring bonds to secure the tax imposed
     2  by this article and similar taxes imposed by other member jurisdictions,
     3  specifying reporting requirements and periods including defining uniform
     4  penalty  and  interest rates for late reporting, determining methods for
     5  collecting and forwarding of taxes, interest and  penalties  to  another
     6  jurisdiction, notice and timing of hearings and other provisions as will
     7  facilitate  the  administration of the agreement.  The commissioner may,
     8  pursuant to the terms of the agreement, forward to the  proper  officers
     9  of  another  member  jurisdiction  any information in the commissioner's
    10  possession relating to the manufacture, receipt, sale, use,  transporta-
    11  tion  or  shipment  of motor fuel or diesel motor fuel by any person and
    12  may share any information relating to the administration of taxes pursu-
    13  ant to the agreement with such officers.  The commissioner may  disclose
    14  to  the  proper  officers of another member jurisdiction the location of
    15  offices, motor vehicles and other real and personal property  of  carri-
    16  ers. The agreement may provide for each member jurisdiction to audit the
    17  records  of persons based in the member jurisdiction and determine taxes
    18  due each member jurisdiction. The commissioner may adopt rules and regu-
    19  lations for the administration and  enforcement  of  the  agreement.  In
    20  connection  with  the  administration  of taxes under such a cooperative
    21  agreement, the commissioner may  enter  into  an  agreement  with  other
    22  member  jurisdictions  and any banks, banking houses, trust companies or
    23  other similar institutions with respect to the payment of any tax, fees,
    24  penalty or interest to such banks, banking houses,  trust  companies  or
    25  similar  institutions  and  the  filing of returns and reports with such
    26  banks, banking houses, trust companies or similar institutions as  agent
    27  of  the  commissioner and such other member jurisdictions. Pursuant to a
    28  written agreement made with one or more of the appropriate  departments,
    29  agencies,  officers  or  instrumentalities  of  other jurisdictions, the
    30  commissioner may let contracts for provision of  such  services  to  the
    31  department  and  to one or more of such entities of other jurisdictions;
    32  provided, that provisions shall be made in all such agreements with  the
    33  participating governmental entities and in all such contracts let by the
    34  commissioner  for  the  assumption  by each of the participating govern-
    35  mental entities of sole responsibility for its  proportionate  share  of
    36  the  costs  under  the  terms  of  such  contract.  The commissioner may
    37  contract for such services jointly with and pursuant to a  contract  let
    38  by  the  appropriate  department,  agency, officer or instrumentality of
    39  another jurisdiction; provided that (1) the commissioner  shall  approve
    40  the  proposed  terms  and  conditions  of  all  such  joint governmental
    41  contracts, (2) the letting of such joint governmental contract shall  be
    42  based  on  invitation  of  competitive  bids  or  proposals, and (3) the
    43  participation by the department in any  such  joint  contract  shall  be
    44  preceded  by  an  evaluation  and finding in writing by the commissioner
    45  that a reasonable potential exists for the saving of costs by the state,
    46  by means of such joint governmental contract.
    47    [(c)] (b) Rate changes. In the event the rate  of  tax  imposed  under
    48  this article or under section three hundred one-h of this chapter or the
    49  rate  of  surcharge imposed on such tax changes and such change does not
    50  coincide with the beginning of a reporting period, the rates of tax  and
    51  surcharge  for  the reporting period which includes such change shall be
    52  equal to the sum of the respective rates otherwise  applicable  in  each
    53  month  of  the  reporting  period divided by the number of months in the
    54  reporting period.
    55    [(d)] (c) Construction. In the event the commissioner, pursuant to the
    56  authority of this  article,  enters  into  a  cooperative  agreement  as

        A. 6652                            16
 
     1  provided in this section, the commissioner shall carry out any provision
     2  of such agreement required for continued New York state participation in
     3  such  agreement, to the extent not inconsistent with a specific require-
     4  ment  of this article or any other provision of the laws and the consti-
     5  tution of the state of New York.
     6    § 10. Section 1815 of the tax law, as amended by section 29 of subpart
     7  I of part V-1 of chapter 57 of the laws of 2009, clause (i) of  subpara-
     8  graph  (A)  of  paragraph  1 of subdivision (a) as separately amended by
     9  section 5 of part K-1 of chapter 57 of the laws of 2009, is  amended  to
    10  read as follows:
    11    § 1815. Highway use and fuel use taxes. - (a) Violations. (1) It shall
    12  be unlawful for any person to:
    13    (A) [(i) Use or cause or permit to be used, any public highway in this
    14  state  for the operation of a motor vehicle subject to the provisions of
    15  article twenty-one of  this  chapter  without  first  applying  for  and
    16  obtaining the certificate of registration required under such article or
    17  a  decal  that  has  been  suspended or revoked or that was issued for a
    18  motor vehicle other than the one on which affixed. The operation of  any
    19  motor  vehicle  on  any  public  highway  of  this state without a decal
    20  required under such article shall be presumptive evidence that a certif-
    21  icate of registration or decal has not  been  obtained  for  such  motor
    22  vehicle;
    23    (ii)]  Use  or  cause or permit to be used, any public highway in this
    24  state for the operation of a qualified  motor  vehicle  subject  to  the
    25  provisions of article twenty-one-A of this chapter without first obtain-
    26  ing  the license and decal required pursuant to such article or to carry
    27  or cause or permit to be carried upon  any  qualified  motor  vehicle  a
    28  license or decal which has been suspended or revoked or which was issued
    29  for  a  qualified motor vehicle other than the one on which carried. The
    30  operation of any qualified motor vehicle on any public highway  of  this
    31  state  without carrying thereon the license or decal required under such
    32  article shall be presumptive evidence that a license or  decal  has  not
    33  been obtained for such qualified motor vehicle;
    34    (B) [Operate, or cause or permit to be operated, on any public highway
    35  any  motor  vehicle  subject  to the provisions of article twenty-one of
    36  this chapter having an actual gross or unloaded weight in excess of  the
    37  gross  or  unloaded  weight set forth on the certificate of registration
    38  issued for such motor vehicle;
    39    (C)] Fail to deliver or surrender, pursuant to the provisions of arti-
    40  cle [twenty-one or] twenty-one-A of this chapter or any  rule  or  regu-
    41  lation promulgated by the commissioner, a certificate of registration or
    42  license  or  decal  to such commissioner, or any person directed by such
    43  commissioner to take possession thereof;
    44    [(D)] (C) Fail to keep records of  operations  of  motor  vehicles  or
    45  qualified motor vehicles as the commissioner shall prescribe;
    46    [(E)] (D) Violate any other provision of article [twenty-one or] twen-
    47  ty-one-A  of  this  chapter or any rule or regulation promulgated there-
    48  under.
    49    (2) Any person who violates any provision of this subdivision, upon  a
    50  first conviction shall be subject to a fine of not less than one hundred
    51  dollars  or  more  than  two hundred fifty dollars; and upon a second or
    52  subsequent conviction to a fine of  not  less  than  two  hundred  fifty
    53  dollars  or  more  than  five hundred dollars or by imprisonment for not
    54  more than ten days. Except as otherwise provided by law such a violation
    55  shall not be a crime and the  penalty  or  punishment  imposed  therefor
    56  shall  not  be  deemed  for  any  purpose a penal or criminal penalty or

        A. 6652                            17

     1  punishment and shall not impose any disability upon or affect or  impair
     2  the  credibility  as  a  witness,  or otherwise, of any person convicted
     3  thereof.
     4    (3) For the purposes of conferring jurisdiction upon courts and police
     5  officers,  and  on the officers specified in subdivision four of section
     6  2.10 of the criminal procedure law and on judicial  officers  generally,
     7  such violations shall be deemed traffic infractions and for such purpose
     8  only  all  provisions of law relating to traffic infractions shall apply
     9  to such violations; provided, however, that the  commissioner  of  motor
    10  vehicles,  any  hearing officer appointed by him or her, or any adminis-
    11  trative tribunal  authorized  to  hear  and  determine  any  charges  or
    12  offenses  which  are  traffic infractions shall not have jurisdiction of
    13  such infractions.
    14    (4) Upon the conviction of any person for a violation of  any  of  the
    15  provisions  of  this  subdivision,  the trial court or the clerk thereof
    16  shall within forty-eight hours certify the facts  of  the  case  to  the
    17  commissioner  and  such certificate shall be presumptive evidence of the
    18  facts recited therein. If any such conviction  shall  be  reversed  upon
    19  appeal  therefrom,  the person whose conviction has been so reversed may
    20  serve upon the commissioner a certified copy of the  order  of  reversal
    21  and the commissioner shall thereupon record the same.
    22    (b) An official weigh slip or ticket issued and certified by any truck
    23  weigher in the employ of the department of transportation or by any duly
    24  licensed  weight  master  shall  constitute  prima facie evidence of the
    25  information therein set forth and of the operation of the vehicle there-
    26  in described upon a public highway and shall be  admissible  before  any
    27  court in any violation proceeding or criminal proceeding.
    28    §  11.  Paragraph (c) of subdivision 4-a of section 510 of the vehicle
    29  and traffic law, as amended by chapter 157  of  the  laws  of  2017,  is
    30  amended to read as follows:
    31    (c) Upon receipt of notification from a traffic and parking violations
    32  agency  or  a  traffic  violations  agency of the failure of a person to
    33  appear within sixty days of the return date or new subsequent  adjourned
    34  date,  pursuant  to  an  appearance  ticket  charging said person with a
    35  violation of:
    36    (i) any of the provisions of this  chapter  except  one  for  parking,
    37  stopping or standing and except those violations described in paragraphs
    38  (a),  (b),  (d),  (e)  and (f) of subdivision two and in paragraphs (a),
    39  (b), (d), (e), (f) and (g) of subdivision two-a and in  paragraphs  (a),
    40  (b), (d), (e), (f) and (g) of subdivision two-b of section three hundred
    41  seventy-one of the general municipal law;
    42    (ii)  [section five hundred two or subdivision (a) of section eighteen
    43  hundred fifteen of the tax law;
    44    (iii)] section fourteen-f (except paragraph (b) of subdivision four of
    45  section fourteen-f), two hundred eleven or two  hundred  twelve  of  the
    46  transportation law; or
    47    [(iv)]  (iii)  any  lawful  ordinance or regulation made by a local or
    48  public authority relating to traffic (except one for  parking,  stopping
    49  or  standing)  or the failure to pay a fine imposed for such a violation
    50  by a traffic and parking violations agency or a traffic violations agen-
    51  cy, the commissioner or his  or  her  agent  may  suspend  the  driver's
    52  license  or privileges of such person pending receipt of notice from the
    53  agency that such person has appeared  in  response  to  such  appearance
    54  ticket  or has paid such fine. Such suspension shall take effect no less
    55  than thirty days from the day upon which notice thereof is sent  by  the
    56  commissioner  to  the person whose driver's license or privileges are to

        A. 6652                            18
 
     1  be suspended.  Any suspension issued pursuant to this paragraph shall be
     2  subject to the provisions of  paragraph  (j-1)  of  subdivision  two  of
     3  section five hundred three of this [chapter] title.
     4    §  12.  Paragraphs  (a) and (b) of subdivision 3 of section 514 of the
     5  vehicle and traffic law, paragraph (a) as amended by section 11 of  part
     6  J  of  chapter  62  of  the laws of 2003 and paragraph (b) as amended by
     7  chapter 157 of the laws of 2017, are amended to read as follows:
     8    (a) Upon the failure of a person to appear  or  answer,  within  sixty
     9  days of the return date or any subsequent adjourned date, or the failure
    10  to  pay a fine imposed by a court, pursuant to a summons charging him or
    11  her with a violation of any of the provisions of  this  chapter  (except
    12  one  for  parking,  stopping  or standing), [section five hundred two or
    13  five hundred twelve of the tax law,]  section  fourteen-f,  two  hundred
    14  eleven  or  two  hundred twelve of the transportation law or of any law,
    15  ordinance, rule or regulation made by a  local  authority,  relating  to
    16  traffic  (except  for parking, stopping or standing), the trial court or
    17  the clerk thereof shall within ten days certify that fact to the commis-
    18  sioner, in the manner and form prescribed by the commissioner, who shall
    19  record the same in his or her office. Thereafter and upon the appearance
    20  of any such person in response to such summons or  the  receipt  of  the
    21  fine  by the court, the trial court or the clerk thereof shall forthwith
    22  certify that fact to the commissioner, in the manner and form prescribed
    23  by the commissioner; provided, however, no such certification  shall  be
    24  made  unless  the  court has collected the termination of suspension fee
    25  required to be paid pursuant to paragraph (j-1) of  subdivision  two  of
    26  section five hundred three of this [chapter] title.
    27    (b)  Upon  the  failure  of a person to appear or answer, within sixty
    28  days of the return date or any subsequent adjourned date, or the failure
    29  to pay a fine imposed by a traffic and parking violations  agency  or  a
    30  traffic violations agency pursuant to a summons charging him or her with
    31  a violation of:
    32    (1)  any  of  the  provisions  of this chapter except one for parking,
    33  stopping or standing and except those violations described in paragraphs
    34  (a), (b), (d), (e) and (f) of subdivision two  and  in  paragraphs  (a),
    35  (b),  (d),  (e), (f) and (g) of subdivision two-a and in paragraphs (a),
    36  (b), (d), (e), (f) and (g) of subdivision two-b of section three hundred
    37  seventy-one of the general municipal law;
    38    (2) [section five hundred two or subdivision (a) of  section  eighteen
    39  hundred fifteen of the tax law;
    40    (3)]  section  fourteen-f (except paragraph (b) of subdivision four of
    41  section fourteen-f), two hundred eleven or two  hundred  twelve  of  the
    42  transportation law; or
    43    [(4)] (3) any lawful ordinance or regulation made by a local or public
    44  authority  relating  to  traffic  (except  one  for parking, stopping or
    45  standing);
    46  the clerk thereof shall within ten days certify that fact to the commis-
    47  sioner, in the manner and form prescribed by the commissioner, who shall
    48  record the same in his or her office. Thereafter and upon the appearance
    49  of any such person in response to such summons or  the  receipt  of  the
    50  fine by the agency, the traffic and parking violations agency, the traf-
    51  fic  violations agency or the clerk thereof shall forthwith certify that
    52  fact to the commissioner, in the  manner  and  form  prescribed  by  the
    53  commissioner;  provided,  however,  no  such certification shall be made
    54  unless  the  traffic  and  parking  violations  agency  or  the  traffic
    55  violations  agency  has  collected  the  termination  of  suspension fee

        A. 6652                            19

     1  required to be paid pursuant to paragraph (j-1) of  subdivision  two  of
     2  section five hundred three of this [chapter] title.
     3    § 13. Subdivision (b) of section 524 of the tax law is REPEALED.
     4    §  14.  Subdivision  (d)  of section 524 of the tax law, as amended by
     5  chapter 309 of the laws of 1996, is amended to read as follows:
     6    (d) Erroneous payment. Whenever the commissioner shall determine  that
     7  any  moneys  received  under the provisions of this article were paid in
     8  error, he or she may cause the same to be  refunded  or  credited.  Such
     9  moneys  received  under the provisions of this article which the commis-
    10  sioner shall determine were paid in error, may be refunded  or  credited
    11  out  of  funds  in  the custody of the comptroller to the credit of such
    12  taxes provided an application therefor is filed  with  the  commissioner
    13  within  four years from the time the erroneous payment was made[, except
    14  if an agreement under the provisions of section five hundred ten of this
    15  chapter as made applicable to the tax imposed by this article by section
    16  five hundred twenty-eight of this  article  (extending  the  period  for
    17  determination  of  tax imposed by this article) is made within the four-
    18  year period for the filing of an application for refund provided for  in
    19  this  subdivision, the period for filing an application for refund shall
    20  not expire prior to six months after the expiration of the period within
    21  which a determination may be made  pursuant  to  the  agreement  or  any
    22  extension thereof].
    23    §  15. Section 525 of the tax law, as added by chapter 170 of the laws
    24  of 1994, is amended to read as follows:
    25    § 525. Exemptions. (a) General. The provisions of this  article  shall
    26  not apply to any qualified motor vehicle[:
    27    (1)  Which]  which is a road roller, tractor crane, truck crane, power
    28  shovel, road building machine, snow plow, road sweeper, sand spreader or
    29  well driller.
    30    [(2) Which is described in section five hundred four of this  chapter,
    31  except subdivision four of such section.]
    32    (b)  Omnibus carriers. (1) An omnibus carrier shall not be required to
    33  apply for a license and decal or decals for a  qualified  motor  vehicle
    34  which  is an omnibus operated on a public highway in this state; except,
    35  if the commissioner enters into a cooperative agreement  under  subdivi-
    36  sion [(b)] (a) of section five hundred twenty-eight of this article, the
    37  commissioner  may, pursuant to such agreement, require such a carrier to
    38  be licensed and obtain such decal or decals with respect to such a vehi-
    39  cle.
    40    (2) The taxes imposed by this article shall not apply  to  motor  fuel
    41  and  diesel motor fuel used by an omnibus carrier in the operation of an
    42  omnibus in local transit service in this state, as described under para-
    43  graph (d) of subdivision three of section two hundred  eighty-nine-c  of
    44  this chapter, pursuant to a certificate of public convenience and neces-
    45  sity  issued  by  the commissioner of transportation of this state or by
    46  the interstate commerce commission of the United States or pursuant to a
    47  contract, franchise or consent between such carrier and a city having  a
    48  population  of  more than one million inhabitants, or any agency of such
    49  city.
    50    (c) Effect of cooperative agreement. Notwithstanding subdivisions  (a)
    51  and  (b) of this section, in the event that the commissioner enters into
    52  a cooperative agreement under subdivision  [(b)]  (a)  of  section  five
    53  hundred  twenty-eight  of  this  article,  the  commissioner may issue a
    54  license and decal or decals with respect  to  qualified  motor  vehicles
    55  described in subdivisions (a) and (b) of this section which are based in
    56  this  state  for  the purpose of reporting and payment of tax imposed by

        A. 6652                            20
 
     1  other member jurisdictions with respect to such  qualified  motor  vehi-
     2  cles.
     3    § 16. Section 1825 of the tax law, as amended by section 3 of part NNN
     4  of chapter 59 of the laws of 2018, is amended to read as follows:
     5    §  1825.  Violation  of secrecy provisions of the tax law.--Any person
     6  who violates the provisions of subdivision (b)  of  section  twenty-one,
     7  subdivision one of section two hundred two, subdivision eight of section
     8  two  hundred  eleven, subdivision (a) of section three hundred fourteen,
     9  subdivision one or two of section  four  hundred  thirty-seven,  section
    10  four  hundred  eighty-seven,  [subdivision  one  or  two of section five
    11  hundred fourteen,] subsection (e) of section six  hundred  ninety-seven,
    12  subsection  (a)  of section nine hundred ninety-four, subdivision (a) of
    13  section eleven hundred forty-six, section twelve  hundred  eighty-seven,
    14  section twelve hundred ninety-six, section twelve hundred ninety-nine-F,
    15  subdivision (a) of section fourteen hundred eighteen, subdivision (a) of
    16  section  fifteen  hundred  eighteen,  subdivision (a) of section fifteen
    17  hundred fifty-five of this  chapter,  and  subdivision  (e)  of  section
    18  11-1797  of  the  administrative  code  of the city of New York shall be
    19  guilty of a misdemeanor.
    20    § 17. Paragraph (a) of subdivision 3 of  section  89-b  of  the  state
    21  finance  law,  as  amended  by section 7 of part UU of chapter 59 of the
    22  laws of 2018, is amended to read as follows:
    23    (a) The special obligation reserve and payment account  shall  consist
    24  (i)  of all moneys required to be deposited in the dedicated highway and
    25  bridge trust fund pursuant to the provisions  of  sections  two  hundred
    26  five,  two  hundred  eighty-nine-e,  three  hundred one-j[, five hundred
    27  fifteen] and eleven hundred sixty-seven of the  tax  law,  section  four
    28  hundred  one  of  the vehicle and traffic law, and section thirty-one of
    29  chapter fifty-six of the laws of nineteen hundred ninety-three, (ii) all
    30  fees, fines or penalties collected by the commissioner of transportation
    31  and the commissioner of motor vehicles pursuant  to  section  fifty-two,
    32  section  three  hundred  twenty-six, section eighty-eight of the highway
    33  law, subdivision fifteen of section three  hundred  eighty-five  of  the
    34  vehicle  and  traffic law, section two of the chapter of the laws of two
    35  thousand three that amended this paragraph, subdivision (d)  of  section
    36  three  hundred  four-a, paragraph one of subdivision (a) and subdivision
    37  (d) of section three hundred five, subdivision  six-a  of  section  four
    38  hundred  fifteen and subdivision (g) of section twenty-one hundred twen-
    39  ty-five of the vehicle and traffic law, section fifteen of this chapter,
    40  excepting moneys deposited with the  state  on  account  of  betterments
    41  performed  pursuant  to  subdivision twenty-seven or subdivision thirty-
    42  five of section ten of the highway law, and section one  hundred  forty-
    43  five  of  the  transportation  law,  (iii)  any  moneys collected by the
    44  department of transportation for services provided  pursuant  to  agree-
    45  ments  entered  into  in  accordance  with  section ninety-nine-r of the
    46  general municipal law, and (iv) any other moneys collected  therefor  or
    47  credited or transferred thereto from any other fund, account or source.
    48    §  18.  Paragraph  (a)  of  subdivision 3 of section 89-b of the state
    49  finance law, as amended by section 8 of part UU of  chapter  59  of  the
    50  laws of 2018, is amended to read as follows:
    51    (a)  The  special obligation reserve and payment account shall consist
    52  (i) of all moneys required to be deposited in the dedicated highway  and
    53  bridge  trust  fund  pursuant  to the provisions of sections two hundred
    54  eighty-nine-e, three hundred one-j[, five hundred  fifteen]  and  eleven
    55  hundred  sixty-seven  of  the  tax  law, section four hundred one of the
    56  vehicle and traffic law, and section thirty-one of chapter fifty-six  of

        A. 6652                            21
 
     1  the  laws  of  nineteen  hundred  ninety-three,  (ii) all fees, fines or
     2  penalties collected  by  the  commissioner  of  transportation  and  the
     3  commissioner  of  motor  vehicles pursuant to section fifty-two, section
     4  three  hundred  twenty-six,  section  eighty-eight  of  the highway law,
     5  subdivision fifteen of section three hundred eighty-five of the  vehicle
     6  and  traffic  law,  section  fifteen  of  this chapter, excepting moneys
     7  deposited with the state on account of betterments performed pursuant to
     8  subdivision twenty-seven or subdivision thirty-five of  section  ten  of
     9  the  highway  law, and section one hundred forty-five of the transporta-
    10  tion law, (iii) any moneys collected by the department of transportation
    11  for services provided pursuant to agreements entered into in  accordance
    12  with  section  ninety-nine-r  of the general municipal law, and (iv) any
    13  other moneys collected therefor or credited or transferred thereto  from
    14  any other fund, account or source.
    15    §  19.  Subdivision  4  of  section 2006 of the tax law, as amended by
    16  chapter 170 of the laws of 1994, is amended to read as follows:
    17    4. To provide a hearing as a matter of right, to any  petitioner  upon
    18  such  petitioner's  request,  pursuant to such rules, regulations, forms
    19  and instructions as the tribunal may prescribe, unless a right to such a
    20  hearing is specifically provided for,  modified  or  denied  by  another
    21  provision  of  this  chapter.  Where  such a request is made by a person
    22  seeking review of taxes determined or claimed to be due under this chap-
    23  ter, the liability of such person shall become finally  and  irrevocably
    24  fixed, unless such person, within ninety days from the time such liabil-
    25  ity  is assessed, shall petition the division of tax appeals for a hear-
    26  ing to review such liability [except that, as  provided  in  subdivision
    27  (a)  of  section  five  hundred twenty-eight of this chapter, a determi-
    28  nation relating to the tax imposed by article twenty-one-A of this chap-
    29  ter shall finally and irrevocably fix such tax unless the person against
    30  whom it is assessed shall petition the division of  tax  appeals  for  a
    31  hearing  within  thirty days after the giving of notice of such determi-
    32  nation].
    33    § 20. This act shall take effect immediately; provided, however,  that
    34  the  amendments to paragraph (a) of subdivision 3 of section 89-b of the
    35  state finance law made by section seventeen of this act shall be subject
    36  to the expiration and reversion of such paragraph pursuant to section 13
    37  of part U1 of chapter 62 of the laws of 2003, as amended, when upon such
    38  date the provisions of section eighteen of this act shall  take  effect;
    39  provided  further, that the amendments to subdivision 1 of section 171-a
    40  of the tax law, made by section seven of this act shall  be  subject  to
    41  the  expiration  and  reversion of such subdivision, when upon such date
    42  the provisions of section seven-a of this act shall take effect.
    43    § 2. Severability. If any clause, sentence, paragraph, section or part
    44  of this act shall be adjudged by any court of competent jurisdiction  to
    45  be  invalid  and  after  exhaustion  of all further judicial review, the
    46  judgment shall not affect, impair, or invalidate the remainder  thereof,
    47  but  shall  be  confined in its operation to the clause, sentence, para-
    48  graph, section or part of this act directly involved in the  controversy
    49  in which the judgment shall have been rendered.
    50    §  3.  This  act shall take effect immediately provided, however, that
    51  the applicable effective date of Parts A through D of this act shall  be
    52  as specifically set forth in the last section of such Parts.
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