Add S1501-d, Ed L; add S1307, amd SS1306 & 202, RPT L; amd Tax L, generally
Relates to school district property tax relief; adopts a school income tax surcharge; provides for a restriction of the school district real property tax on residential property; and authorizes the imposition by school districts of a surcharge on the state income tax of district residents to finance public education.
STATE OF NEW YORK
________________________________________________________________________
7097
2009-2010 Regular Sessions
IN ASSEMBLY
March 20, 2009
___________
Introduced by M. of A. GALEF, CLARK, ORTIZ, KOON, MILLER, BACALLES --
Multi-Sponsored by -- M. of A. MAGEE -- read once and referred to the
Committee on Education
AN ACT in relation to enacting the school district property tax relief
act; to amend the education law, in relation to adopting a school
income tax surcharge (Part A); and to amend the real property tax law
and the tax law, in relation to providing for the restriction of the
school district real property tax on residential property and to
authorize the imposition by school districts of a surcharge on the
state income tax of district residents to finance public education
(Part B)
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. This act shall be known and may be cited as "the school
2 district property tax relief act".
3 § 2. This act enacts into law major components of legislation which
4 are necessary to implement the school district property tax relief act.
5 Each component is wholly contained within a Part identified as Parts A
6 and B. The effective date for each particular provision contained with-
7 in such Part is set forth in the last section of such Part. Any
8 provision in any section contained within a Part, including the effec-
9 tive date of the Part, which makes reference to a section "of this act",
10 when used in connection with that particular component, shall be deemed
11 to mean and refer to the corresponding section of the Part in which it
12 is found. Section four of this act sets forth the general effective
13 date of this act.
14 PART A
15 Section 1. Legislative findings and declarations. The legislature
16 finds that the property tax has long been relied upon by school
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD01714-01-9
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1 districts as a principal method to finance public education. The proper-
2 ty tax, however, is regressive and fails to account for a taxpayer's
3 ability to pay, and falls hardest on those with reduced or fixed
4 incomes. Therefore, to relieve the mounting burden on residential prop-
5 erty taxpayers and to provide local school districts with greater flexi-
6 bility to finance public education, while assuring the continued deliv-
7 ery of quality educational services, the legislature finds that school
8 districts shall be authorized, at local option, to impose a school
9 district income tax surcharge on the state personal income tax of
10 district residents to replace a portion of the school district property
11 tax.
12 § 2. The education law is amended by adding a new section 1501-d to
13 read as follows:
14 § 1501-d. Adoption of school district income tax surcharge. 1. The
15 board of trustees or board of education of any school district other
16 than a school district of a city subject to the provisions of article
17 fifty-two of this chapter may adopt, by resolution, a school district
18 income tax surcharge imposed pursuant to the authority of article thir-
19 ty-C of the tax law, to finance public education, in accordance with a
20 proposition submitted to and approved by electors of the school district
21 as authorized pursuant to this section.
22 2. Upon a majority vote of the board of trustees or board of education
23 of a school district or upon the filing of a petition with the chief
24 executive officer of the school district, a study commission shall be
25 created. A petition to create a study commission within a school
26 district shall be sufficient if it is signed and acknowledged by quali-
27 fied electors of the school district, in number equal to five per centum
28 of the total number of electors within the school district qualified to
29 vote in the general election immediately preceding filing of the peti-
30 tion.
31 3.(a) The study commission formed pursuant to this section shall pres-
32 ent a written report to the board of trustees or the board of education
33 setting forth either a school district income tax surcharge plan or a
34 written recommendation that no plan be adopted. Such recommendation
35 shall include the reasons for rejecting a surcharge plan. The study
36 commission shall file the report with the board of trustees or the board
37 of education on or before one year from the date of presentation of the
38 petition to the chief executive officer of the school district or vote
39 of the board of trustees or the board of education directing the forma-
40 tion of the study commission. If the commission fails to make a recom-
41 mendation within the allotted time, the board shall extend the commis-
42 sion or assume its responsibilities.
43 (b) The commission shall be composed of at least nine members
44 appointed by the board of trustees or the board of education. Member-
45 ship shall be comprised of representatives of property owners residing
46 in the school district, commercial property owners whose principal place
47 of business is located within the school district, and the board of
48 trustees or board of education, but shall not include more than one
49 trustee of a board of education or member of a board of education.
50 (c) Members of a study commission established pursuant to this section
51 shall file oaths of office with the appointing authority. Their terms
52 shall extend to and expire upon submission of the report to the board of
53 trustees or the board of education as provided in this section. Members
54 shall receive no compensation for membership on the study commission.
55 Costs and expenses of the study commission if approved by the board
56 shall be paid by the school district. Such commission shall organize and
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1 form such subcommittees, may establish meetings and hold informational
2 hearings as it deems desirable and shall consult with the designees of
3 the director of the office of real property tax services and the commis-
4 sioner of taxation and finance.
5 (d) A study commission shall hold at least one public hearing in the
6 school district at least sixty days prior to submission of its report to
7 the board of trustees or the board of education, at which the public
8 shall have an opportunity to be heard. The study commission shall
9 publish notice of the public hearing on any official website and in at
10 least one newspaper of general circulation within the school district at
11 least seven and no greater than ten days prior to the date of such
12 public hearing. Such notice shall specify the day, hour and place such
13 hearing shall be held.
14 4. A study commission recommending a school district income tax
15 surcharge shall adopt a plan which describes the rate of the surcharge
16 to be imposed, the manner in which real property taxes for school
17 district purposes will be restricted in accordance with section thirteen
18 hundred seven of the real property tax law, and any such other matters
19 as may be desirable or necessary to describe the income tax surcharge to
20 be imposed or its administration. Such commission plan shall describe
21 restrictions, if any, upon the authority of a school district, acting
22 through its board of trustees or board of education, to modify the first
23 year rate of the income tax surcharge in subsequent years. The
24 restrictions may include, but are not limited to, the following:
25 (a) requiring voter approval for any change in the surcharge rate;
26 (b) limiting the amount of a rate change in one year or over a number
27 of years;
28 (c) requiring the commission to be reconvened to study and adopt a
29 rate change;
30 (d) requiring a supermajority of the board of trustees or the board of
31 education to approve a rate change; or
32 (e) some combination of the above.
33 5. (a) Upon the study commission's presentation of a plan, or recom-
34 mendation not to adopt a plan, the board of trustees or the board of
35 education shall decide whether to accept or reject the plan or recommen-
36 dation of the study commission. The board of trustees or the board of
37 education shall take such action on the study commission's recommenda-
38 tion within one hundred twenty days of its presentment to the board of
39 trustees or the board of education. The board of trustees or the board
40 of education shall hold at least one public hearing in the school
41 district at least thirty days prior to taking action on the study
42 commission's recommendation, at which the public shall have an opportu-
43 nity to be heard. The board of trustees or the board of education shall
44 publish notice of the public hearing in at least one newspaper of gener-
45 al circulation within the school district, at least seven and no greater
46 than ten days, prior to the date of such public hearing. Such notice
47 shall specify the day, hour and place such hearing shall be held. If the
48 plan is accepted by a majority of the board of trustees or the board of
49 education, a proposition shall be prepared by the board of trustees or
50 the board of education and submitted to the voters at the next regular
51 school election.
52 (b) Upon acceptance of the plan and formulation of the proposition the
53 board of trustees or the board of education shall publish the full text
54 of the proposition and the school district tax surcharge plan in at
55 least one newspaper of general circulation within the school district at
56 least thirty days prior to the date of election at which the school
A. 7097 4
1 district voters shall vote on the plan and proposition. Copies of the
2 plan and proposition shall be made available to the public at the
3 offices of the school district at any time during regular business hours
4 and on any official website maintained by the school district.
5 6. (a) A proposition for the imposition of a school district income
6 tax surcharge shall state "Shall the (name of school district) be
7 empowered to adopt a school district income tax surcharge pursuant to
8 the school district income tax surcharge plan?" The proposition shall
9 also contain an abstract of such plan which shall (i) identify in full
10 the option restricting the school district levy of real property tax
11 chosen pursuant to section thirteen hundred seven of the real property
12 tax law, and (ii) concisely state in plain language the purpose and
13 effect of adopting such plan including the general effect on residential
14 real property taxpayers, the income tax surcharge rate expected to be
15 imposed, and restrictions, if any, applicable to changes in such rate.
16 (b) Upon approval of a majority of the qualified electors within a
17 school district, the proposition shall be approved. Upon such approval a
18 certificate of such election shall be filed with the clerk of the school
19 district named in the proposition, the commissioner and the commissioner
20 of taxation and finance.
21 7. The levy of real property taxes by any school district to finance
22 education which adopts a school district income tax surcharge shall be
23 subject to the provisions of section thirteen hundred seven of the real
24 property tax law.
25 8. If adopted by the board of trustees or the board of education on or
26 before March thirty-first in any year, with notice to the commissioner
27 of taxation and finance, as provided in section thirteen hundred sixty-
28 one of the tax law on or before such date, such school district income
29 tax surcharge plan shall become effective from and after the first day
30 of January next succeeding its adoption. If adopted after March thirty-
31 first in any year, or with notice after such date, such local income tax
32 surcharge plan shall become effective from and after one year from the
33 day of January next succeeding its adoption.
34 § 3. This act shall take effect immediately.
35 PART B
36 Section 1. Section 1306 of the real property tax law is amended by
37 adding a new subdivision 6 to read as follows:
38 6. The levy of taxes by any school district which imposes a personal
39 income tax pursuant to article thirty-C of the tax law shall be subject
40 to the restrictions of section thirteen hundred seven of this article.
41 § 2. The real property tax law is amended by adding a new section 1307
42 to read as follows:
43 § 1307. Reduction in the levy of real property taxes. 1. Where a
44 school district elects to impose a school district income tax surcharge
45 in accordance with article thirty-C of the tax law, the amount to be
46 raised by levy against residential real property in the school district
47 shall be reduced by the dollar amount raised pursuant to such surcharge
48 for the calendar year immediately preceding the year of commencement of
49 the school fiscal year. For the purposes of this section the term "resi-
50 dential real property" shall be limited to primary residences as defined
51 in subdivision three of section four hundred twenty-five of this chap-
52 ter.
53 2. The amount of reduction for each parcel of residential real proper-
54 ty shall be stated on the school tax bill. The school tax bill also
A. 7097 5
1 shall show the amount of the total levy, the amount to be raised by the
2 residential property in the school district, the amount of surcharge
3 raised reducing such portion of the levy and the amount to be raised by
4 the non-residential property in the district. Comparison to the preced-
5 ing year shall also be shown in addition to such other information as
6 the commissioner of education shall specify. Property owners not
7 subject to the income tax surcharge imposed by article thirty-C of the
8 tax law shall not receive a reduction in the real property taxes pursu-
9 ant to this section.
10 § 3. Subdivision 1 of section 202 of the real property tax law is
11 amended by adding a new paragraph (r) to read as follows:
12 (r) Direct the executive director of the office of real property
13 services to develop guidelines and provide technical assistance to a
14 study commission of a school district formed pursuant to section fifteen
15 hundred one-d of the education law in order to implement the provisions
16 of article thirty-C of the tax law and section thirteen hundred seven of
17 this chapter.
18 § 4. Paragraph 1 of subdivision (b) of section 9 of the tax law, as
19 amended by chapter 166 of the laws of 1991, is amended to read as
20 follows:
21 (1) Subject to the requirements contained in subdivisions (c) and (d)
22 of this section, the commissioner shall require by regulation that any
23 payment of tax made by a taxpayer who is required, for either of the
24 semi-annual periods ending June thirtieth or December thirty-first, to
25 deduct and withhold an aggregate of thirty-five thousand dollars or more
26 of withholding taxes pursuant to part V of article twenty-two of this
27 chapter, or pursuant to an equivalent provision enacted under the
28 authority of article thirty, thirty-A [or], thirty-B or thirty-C of this
29 chapter[, or article two-E of the general city law,] shall be made, on
30 or before the date prescribed by law, by electronic funds transfer to a
31 bank, banking house or trust company designated by the commissioner. The
32 commissioner shall designate only such banks, banking houses or trust
33 companies as are or shall be designated by the comptroller as deposito-
34 ries pursuant to section one hundred seventy-one-a of this chapter, as
35 added by chapter sixty-nine of the laws of nineteen hundred seventy-
36 eight. Notwithstanding any provision of law to the contrary, any such
37 payment shall be deemed to be made on the date the payment is received
38 by the designated depository of the department; provided, however, that
39 at the election of a taxpayer subject to the provisions of this subdivi-
40 sion, mailing by the taxpayer of the applicable withholding tax return
41 and a certified check for the amount of the tax liability on or before
42 the second business day prior to the applicable due date otherwise
43 prescribed by law shall fulfill the requirements of this section and
44 shall be deemed to be timely payment of such tax liability and timely
45 filing of such return.
46 § 5. Subdivisions eighteenth-b and eighteenth-c of section 171 of the
47 tax law, as added by chapter 770 of the laws of 1992, are amended to
48 read as follows:
49 Eighteenth-b. Where the filing requirement arises under article twen-
50 ty-two of this chapter or under a law enacted pursuant to the authority
51 of article thirty [or], thirty-A or thirty-C of this chapter, have
52 authority to require a husband and wife whose federal income tax liabil-
53 ities are determined on a joint federal return and who have not filed a
54 joint New York income tax return to file separate income tax returns, in
55 which case their income tax liabilities shall be separate. Such authori-
56 ty shall be exercised only where one of such persons demonstrates, to
A. 7097 6
1 the satisfaction of the commissioner, that (a) the address or where-
2 abouts of his or her spouse is unknown to him or her, (b) reasonable
3 efforts have been made by him or her to locate such spouse, and (c) good
4 cause existed for the failure to file a joint New York income tax
5 return.
6 Eighteenth-c. Where the filing requirement arises under article twen-
7 ty-two of this chapter or under a law enacted pursuant to the authority
8 of article thirty [or], thirty-A or thirty-C of this chapter, have
9 authority to require a husband and wife whose federal income tax liabil-
10 ities are determined on a joint federal return and who have not filed a
11 joint New York income tax return to file separate income tax returns, in
12 which case their income tax liabilities shall be separate. Such authori-
13 ty shall be exercised only where one of such persons demonstrates, to
14 the satisfaction of the commissioner, that (a) his or her spouse has
15 refused to sign a joint New York income tax return, (b) reasonable
16 efforts have been made by him or her to have such spouse sign a joint
17 New York income tax return, (c) there exists objective evidence of
18 alienation of such person from his or her spouse such as a judicial
19 order of protection, legal separation under a decree of divorce or sepa-
20 rate maintenance, separation under a written separation agreement or
21 judicial decree of separation, living apart at all times during the
22 twelve months immediately preceding the application for exercise of
23 authority under this provision, the commencement of an action for
24 divorce, or the commencement of proceedings in family court which
25 evidence such alienation, and (d) good cause existed for the failure to
26 file a joint New York income tax return.
27 § 6. Subdivision 1 of section 171-a of the tax law, as amended by
28 section 1 of part R of chapter 60 of the laws of 2004, is amended to
29 read as follows:
30 1. All taxes, interest, penalties and fees collected or received by
31 the commissioner or the commissioner's duly authorized agent under arti-
32 cles nine (except section one hundred eighty-two-a thereof and except as
33 otherwise provided in section two hundred five thereof), nine-A,
34 twelve-A (except as otherwise provided in section two hundred eighty-
35 four-d thereof), thirteen, thirteen-A (except as otherwise provided in
36 section three hundred twelve thereof), eighteen, nineteen, twenty
37 (except as otherwise provided in section four hundred eighty-two there-
38 of), twenty-one, twenty-two, twenty-six, twenty-six-B, twenty-eight
39 (except as otherwise provided in section eleven hundred two or eleven
40 hundred three thereof), twenty-eight-A, thirty-one (except as otherwise
41 provided in section fourteen hundred twenty-one thereof), thirty-two,
42 thirty-three and thirty-three-A of this chapter shall be deposited daily
43 in one account with such responsible banks, banking houses or trust
44 companies as may be designated by the comptroller, to the credit of the
45 comptroller. Such an account may be established in one or more of such
46 depositories. Such deposits shall be kept separate and apart from all
47 other money in the possession of the comptroller. The comptroller shall
48 require adequate security from all such depositories. Of the total
49 revenue collected or received under such articles of this chapter, the
50 comptroller shall retain in the comptroller's hands such amount as the
51 commissioner may determine to be necessary for refunds or reimbursements
52 under such articles of this chapter [and article ten thereof] out of
53 which amount the comptroller shall pay any refunds or reimbursements to
54 which taxpayers shall be entitled under the provisions of such articles
55 of this chapter [and article ten thereof]. The commissioner and the
56 comptroller shall maintain a system of accounts showing the amount of
A. 7097 7
1 revenue collected or received from each of the taxes imposed by such
2 articles. The comptroller, after reserving the amount to pay such
3 refunds or reimbursements, shall, on or before the tenth day of each
4 month, pay into the state treasury to the credit of the general fund all
5 revenue deposited under this section during the preceding calendar month
6 and remaining to the comptroller's credit on the last day of such
7 preceding month, (i) except that the comptroller shall pay to the state
8 department of [social services] family assistance that amount of over-
9 payments of tax imposed by article twenty-two of this chapter and the
10 interest on such amount which is certified to the comptroller by the
11 commissioner as the amount to be credited against past-due support
12 pursuant to subdivision six of section one hundred seventy-one-c of this
13 chapter, (ii) and except that the comptroller shall pay to the New York
14 state higher education services corporation and the state university of
15 New York or the city university of New York respectively that amount of
16 overpayments of tax imposed by article twenty-two of this chapter and
17 the interest on such amount which is certified to the comptroller by the
18 commissioner as the amount to be credited against the amount of defaults
19 in repayment of guaranteed student loans and state university loans or
20 city university loans pursuant to subdivision five of section one
21 hundred seventy-one-d and subdivision six of section one hundred seven-
22 ty-one-e of this chapter, (iii) and except further that, notwithstanding
23 any law, the comptroller shall credit to the revenue arrearage account,
24 pursuant to section ninety-one-a of the state finance law, that amount
25 of overpayment of tax imposed by article nine, nine-A, twenty-two, thir-
26 ty, thirty-A, thirty-B, thirty-C, thirty-two or thirty-three of this
27 chapter, and any interest thereon, which is certified to the comptroller
28 by the commissioner as the amount to be credited against a past-due
29 legally enforceable debt owed to a state agency pursuant to paragraph
30 (a) of subdivision six of section one hundred seventy-one-f of this
31 article, provided, however, [he] the commissioner shall credit to the
32 special offset fiduciary account, pursuant to section ninety-one-c of
33 the state finance law, any such amount creditable as a liability as set
34 forth in paragraph (b) of subdivision six of section one hundred seven-
35 ty-one-f of this article, (iv) and except further that the comptroller
36 shall pay to the city of New York that amount of overpayment of tax
37 imposed by article nine, nine-A, twenty-two, thirty, thirty-A, thirty-B,
38 thirty-C, thirty-two, or thirty-three of this chapter and any interest
39 thereon that is certified to the comptroller by the commissioner as the
40 amount to be credited against city of New York tax warrant judgment debt
41 pursuant to section one hundred seventy-one-l of this article, (v) and
42 except further that the comptroller shall pay to a non-obligated spouse
43 that amount of overpayment of tax imposed by article twenty-two of this
44 chapter and the interest on such amount which has been credited pursuant
45 to section one hundred seventy-one-c, one hundred seventy-one-d, one
46 hundred seventy-one-e, one hundred seventy-one-f or one hundred seven-
47 ty-one-l of this article and which is certified to the comptroller by
48 the commissioner as the amount due such non-obligated spouse pursuant to
49 paragraph six of subsection (b) of section six hundred fifty-one of this
50 chapter; and (vi) the comptroller shall deduct a like amount which the
51 comptroller shall pay into the treasury to the credit of the general
52 fund from amounts subsequently payable to the department of social
53 services, the state university of New York, the city university of New
54 York, or the higher education services corporation, or the revenue
55 arrearage account or special offset fiduciary account pursuant to
56 section ninety-one-a or ninety-one-c of the state finance law, as the
A. 7097 8
1 case may be, whichever had been credited the amount originally withheld
2 from such overpayment, and (vii) with respect to amounts originally
3 withheld from such overpayment pursuant to section one hundred seventy-
4 one-l of this article and paid to the city of New York, the comptroller
5 shall collect a like amount from the city of New York.
6 § 7. Subdivision 1 of section 171-c of the tax law, as amended by
7 chapter 601 of the laws of 2007, is amended to read as follows:
8 (1) The commissioner, on behalf of the department, shall enter into a
9 written agreement with the commissioner of the office of temporary and
10 disability assistance, on behalf of the state office of temporary and
11 disability assistance, which shall set forth the procedures for credit-
12 ing any overpayment by an individual, estate or trust of income tax
13 imposed by article twenty-two of this chapter, city personal income tax
14 on residents imposed pursuant to the authority of article thirty of this
15 chapter, city income tax surcharge on residents imposed pursuant to the
16 authority of article thirty-A of this chapter and city earnings tax on
17 nonresidents imposed pursuant to the authority of article thirty-B of
18 this chapter and school district income tax surcharge imposed pursuant
19 to the authority of article thirty-C of this chapter and the interest on
20 such overpayments against past-due support owed by such individual,
21 estate or trust of which the commissioner has been notified by the
22 commissioner of the office of temporary and disability assistance pursu-
23 ant to the provisions of such agreement.
24 § 8. Subdivision 1 of section 171-d of the tax law, as amended by
25 section 2 of part M of chapter 57 of the laws of 2008, is amended to
26 read as follows:
27 (1) The commissioner, on behalf of the [tax commission] department,
28 shall enter into a written agreement with the president of the New York
29 state higher education services corporation, on behalf of such corpo-
30 ration, which shall set forth the procedures for crediting any overpay-
31 ment by an individual, estate or trust of income tax imposed by article
32 twenty-two of this chapter, city personal income tax on residents
33 imposed pursuant to the authority of article thirty of this chapter,
34 city income tax surcharge on residents imposed pursuant to the authority
35 of article thirty-A of this chapter, [city earnings tax on nonresidents
36 imposed pursuant to the authority of former article two-E of the general
37 city law and] city earnings tax on nonresidents imposed pursuant to the
38 authority of article thirty-B of this chapter, school district income
39 tax surcharge imposed pursuant to the authority of article thirty-C of
40 this chapter and the interest on such overpayments against the amount of
41 any default in repayment of any governmental education loan owed by such
42 individual, estate or trust of which the commissioner has been notified
43 by the president of the New York state higher education services corpo-
44 ration pursuant to the provisions of such agreement. For purposes of
45 this section, "governmental education loan" shall mean any education
46 loan debt, including judgments, owed to the federal or New York state
47 government that is being collected by the New York state higher educa-
48 tion services corporation.
49 § 9. Subdivision 2 of section 171-e of the tax law, as separately
50 amended by chapters 222 and 638 of the laws of 1985, is amended to read
51 as follows:
52 (2) The commissioner [of taxation and finance], on behalf of the [tax
53 commission] department, shall enter into a written agreement with the
54 state university of New York or the city university of New York respec-
55 tively which shall set forth the procedures for crediting any overpay-
56 ment by an individual, estate or trust of income tax imposed by article
A. 7097 9
1 twenty-two of this chapter, city personal income tax on residents
2 imposed pursuant to the authority of article thirty of this chapter,
3 city income tax surcharge on residents imposed pursuant to the authority
4 of article thirty-A of this chapter, [city earnings tax on nonresidents
5 imposed pursuant to the authority of article two-E of the general city
6 law and] city earnings tax on nonresidents imposed pursuant to the
7 authority of article thirty-B of this chapter and school district income
8 tax surcharge imposed pursuant to the authority of article thirty-C of
9 this chapter and the interest on such overpayments against the amount of
10 any default in repayment of a state university loan or city university
11 loan owed by such individual, estate or trust of which the commissioner
12 [of taxation and finance] has been notified by the state university of
13 New York or the city university of New York respectively pursuant to the
14 provisions of such agreement.
15 § 10. Subdivisions 1 and 2 of section 171-f of the tax law, subdivi-
16 sion 1 as amended by chapter 81 of the laws of 1995 and subdivision 2 as
17 added by chapter 55 of the laws of 1992, are amended to read as follows:
18 (1) For the purposes of this section, (a) "state agency" shall mean
19 any state department, board, bureau, division, commission, committee,
20 public authority, public benefit corporation, council, office, or other
21 governmental entity performing a governmental or proprietary function
22 for the state, or, solely for purposes of this section, a local social
23 services district; (b) "taxpayer" shall mean a corporation, association,
24 company, partnership, estate, trust, liquidator, fiduciary or other
25 entity or individual who or which is liable for any tax or other imposi-
26 tion imposed by or pursuant to article nine, nine-A, twenty-two, thirty,
27 thirty-A, thirty-B, thirty-C, thirty-two, or thirty-three of this chap-
28 ter [or article two-E of the general city law], which tax or other impo-
29 sition is administered by the commissioner of taxation and finance, or
30 who or which is under a duty to perform an act under or pursuant to such
31 tax or imposition, excluding a state agency, a municipal corporation or
32 a district corporation; and (c) "overpayment" shall mean an overpayment
33 which has been requested or determined to be refunded, a refund or a
34 reimbursement, of a tax or other imposition imposed by or pursuant to
35 article nine, nine-A, twenty-two, thirty, thirty-A, thirty-B, thirty-C,
36 thirty-two, or thirty-three of this chapter or former article two-E of
37 the general city law, which is administered by the commissioner [of
38 taxation and finance].
39 (2) The commissioner [of taxation and finance], upon agreement with
40 the state comptroller and acting as an agent for the state comptroller,
41 shall set forth the procedures for crediting any overpayment by a
42 taxpayer of any tax or other imposition imposed by or authorized to be
43 imposed pursuant to article nine, nine-A, twenty-two, thirty, thirty-A,
44 thirty-B, thirty-C, thirty-two, or thirty-three of this chapter [or
45 article two-E of the general city law], which is administered by the
46 commissioner [of taxation and finance], and the interest on any such
47 overpayments, against the amount of a past-due legally enforceable debt
48 owed by such taxpayer to a state agency. An implementation plan shall be
49 developed by the division of the budget and the department of taxation
50 and finance which shall provide, but not be limited to, guidance with
51 respect to coordination of debt collection pursuant to this section and
52 subdivision twenty-seventh of section one hundred seventy-one of this
53 article. This section shall not be deemed to abrogate or limit in any
54 way the powers and authority of the state comptroller to set off debts
55 owed the state against payments from the state, under the constitution
56 of the state or any other law.
A. 7097 10
1 § 11. Paragraph 1 of subsection (c) of section 615 of the tax law, as
2 amended by chapter 497 of the laws of 1997, is amended to read as
3 follows:
4 (1) income taxes imposed by this state or any other taxing jurisdic-
5 tion, except (A) city earnings taxes on nonresidents that are imposed
6 upon and paid by taxpayers for taxable years beginning after December
7 thirty-first, nineteen hundred seventy and before January first, two
8 thousand, pursuant to the authority of former section twenty-five-m of
9 the general city law, to the extent that the amount of such tax exceeds
10 the tax computed as if the rates were one-fourth of one percent of wages
11 subject to tax and three-eighths of one percent of net earnings from
12 self-employment subject to tax, and (B) any school district income tax
13 surcharge imposed pursuant to the authority of article thirty-one-C of
14 this chapter;
15 § 12. The tax law is amended by adding a new article 30-C to read as
16 follows:
17 ARTICLE 30-C
18 SCHOOL DISTRICT INCOME TAX SURCHARGE
19 Section 1360. Short title.
20 1361. Authority to impose school district income tax surcharge.
21 1362. Model resolution.
22 1363. Adoption of the model school district income tax
23 surcharge.
24 1364. Deposit and disposition of revenues.
25 § 1360. Short title. This article shall be known and may be cited as
26 the "school district income tax surcharge".
27 § 1361. Authority to impose school district income tax surcharge. (a)
28 General. Notwithstanding any other provision of law to the contrary, but
29 subject to the limitations and conditions set forth in this article, any
30 school district in this state (other than a school district of a city
31 subject to the provisions of article fifty-two of the education law),
32 acting through its board of trustees or board of education in accordance
33 with section fifteen hundred one-d of the education law, is hereby
34 authorized and empowered to adopt and amend resolutions imposing in any
35 such school district, for taxable years beginning after two thousand
36 ten, a school district income tax surcharge on the net state tax (as
37 defined in section three of the model school district income tax
38 surcharge set forth in section thirteen hundred sixty-three of this
39 article) of residents of the school district, at a rate permissible
40 under subsection (c) of this section. Such school district income tax
41 surcharge shall be administered, collected and distributed by the
42 commissioner as provided for in this article.
43 (b) Form of adoption of resolution. Adoption of an income tax
44 surcharge pursuant to the authority of this section shall be by adoption
45 of a resolution, substantially similar in terms to the model resolution
46 set forth in section thirteen hundred sixty-two of this article, setting
47 forth one of the rates of income tax surcharge provided in subsection
48 (c) of this section and specifying the taxable years for which the rate
49 is to be effective. Such resolution shall be deemed to incorporate ther-
50 ein all of the provisions of the model school district income tax
51 surcharge set forth in section thirteen hundred sixty-three of this
52 article, as amended from time to time.
53 (c) Rate of surcharge. The permissible rates of income tax surcharge
54 authorized by this section shall be whole number multiples of one
55 percent and shall not exceed twenty-five percent. Different permissible
56 rates may be imposed with respect to different calendar years, but only
A. 7097 11
1 one such rate may be imposed with respect to a single calendar year, and
2 any such rate shall remain in effect for the entire year and shall apply
3 to all taxable years beginning in such calendar year.
4 (d) Effectiveness of resolution and filing with commissioner. (1)
5 Initial adoption. A resolution imposing an income tax surcharge pursuant
6 to the authority of this section which is adopted on or before March
7 thirty-first of any calendar year with notice to the commissioner on or
8 before such date shall go into effect on the first day of January of the
9 first succeeding calendar year, and any such local law enacted after, or
10 with notice after, such March thirty-first shall go into effect on the
11 first day of January of the second succeeding calendar year, and in
12 either case shall apply to taxable years beginning on and after such
13 first day of January.
14 (2) Amendment. A resolution amending such an income tax surcharge,
15 which resolution is adopted on or before June thirtieth of any calendar
16 year with notice to the commissioner on or before such date shall go
17 into effect on the first day of January of the first succeeding calendar
18 year, and any such resolution adopted after, or with notice after, such
19 June thirtieth shall go into effect on the first day of January of the
20 second succeeding calendar year, and in either case shall apply to taxa-
21 ble years beginning on and after such first day of January.
22 (3) Notice. Notice to the commissioner of adoption of any resolution
23 pursuant to the authority of this section shall be by mailing by regis-
24 tered mail a certified copy of such resolution to the commissioner at
25 the commissioner's office in Albany.
26 (e) Filing of resolution with others. Certified copies of any such
27 resolution shall also be filed, within thirty days of the date of enact-
28 ment, with the clerk of the school district wherein the surcharge is
29 imposed.
30 (f) Cooperation. (1) Every school district imposing a school district
31 income tax surcharge under the authority of this section shall furnish
32 the commissioner such information as he or she may require in the admin-
33 istration of such surcharge, any other law to the contrary notwithstand-
34 ing.
35 (2) The commissioner shall advise and cooperate with school district
36 officials for the purpose of uniform administration, collection and
37 distribution of the tax authorized by this section.
38 (3) Any amendment to the provisions of article twenty-two of this
39 chapter, to the extent that such amendment is applicable to the model
40 school district income tax surcharge, shall be deemed to have been
41 incorporated in the analogous provision or provisions of such model
42 surcharge.
43 § 1362. Model resolution. The resolution described in subsection (b)
44 of section thirteen hundred sixty-one of this article shall be in
45 substantially the following form:
46 IMPOSITION OF SCHOOL DISTRICT INCOME TAX SURCHARGE.
47 The school district hereby adopts the model school
48 district income tax surcharge, for taxable years beginning on and after
49 January 1, 20 , at the rate of percent.
50 § 1363. Adoption of the model school district income tax surcharge.
51 Adoption by a school district of the resolution set forth in section
52 thirteen hundred sixty-two of this article shall be deemed to be
53 adoption of the model school district income tax surcharge set forth
54 below.
55 MODEL SCHOOL DISTRICT INCOME TAX SURCHARGE
56 Section 1. Persons subject to the school district income tax surcharge.
A. 7097 12
1 2. Renter's credit.
2 3. Net state tax.
3 4. School district resident defined.
4 5. Returns and liabilities.
5 6. Requirement of withholding tax from wages.
6 7. Credit for tax withheld.
7 8. Enforcement with other taxes.
8 9. Administration, collection and review.
9 Section 1. Persons subject to the school district income tax
10 surcharge. (a) General. The school district income tax surcharge at the
11 rate adopted shall be imposed for each taxable year on every school
12 district resident individual, estate and trust. A taxpayer's taxable
13 year for purposes of the school district income tax surcharge shall be
14 the same as the taxpayer's taxable year under article twenty-two of this
15 chapter.
16 (b) Partners and partnerships. A partnership as such shall not be
17 subject to the school district income tax surcharge. Persons carrying on
18 business as partners shall be liable for such school district income tax
19 surcharge only in their separate or individual capacities.
20 (c) Associations taxable as corporations. An association, trust or
21 other unincorporated organization which is taxable as a corporation for
22 federal income tax purposes shall not be subject to the school district
23 income tax surcharge.
24 (d) Exempt trusts and organizations. A trust or other unincorporated
25 organization which by reason of its purposes or activities is exempt
26 from federal income tax shall be exempt from the school district income
27 tax surcharge (regardless of whether subject to federal income tax on
28 unrelated business taxable income).
29 § 2. Renter's credit. (a) General. A taxpayer who is a qualified
30 lessee shall be allowed a credit against the tax imposed by this model
31 surcharge equal to one and one-quarter percent of his or her adjusted
32 rent.
33 (b) Qualified lessee. A qualified lessee is an individual whose resi-
34 dence within the school district is leased real property which is not
35 residential real property.
36 (c) Adjusted rent. The term adjusted rent shall have the same meaning
37 as in subparagraph (G) of paragraph one of subsection (e) of section six
38 hundred six of this chapter, with respect to the rental paid by the
39 qualified lessee during the taxable year for the residence referred to
40 in subsection (b) of this section.
41 § 3. Net state tax. (a) General. The net state tax of a school
42 district resident individual, estate or trust shall mean the sum of all
43 of the taxes imposed on such individual, estate or trust under article
44 twenty-two of this chapter for the taxable year less the applicable
45 credits (other than the credit for tax withheld) allowed to such indi-
46 vidual, estate or trust under such article for the taxable year.
47 (b) Change of residence. When an individual or trust changes school
48 district resident status during the taxable year, the net state tax
49 shall be the net state tax determined under subsection (a) of this
50 section multiplied by a fraction, the numerator of which is the number
51 of months of residence in the school district in the taxable year and
52 the denominator of which is the number of months in the taxable year.
53 For purposes of this subsection, a month shall constitute a month of
54 residence if the individual or trust is a resident for more than fifteen
55 days of that month.
A. 7097 13
1 § 4. School district resident defined. (a) School district resident
2 individual. A school district resident individual means an individual
3 who is domiciled in the school district wherein the school district
4 income tax surcharge is imposed, unless
5 (1) such individual maintains no permanent place of abode in such
6 school district, maintains a permanent place of abode elsewhere, and
7 spends in the aggregate not more than thirty days of the taxable year in
8 such school district, or
9 (2)(A) within any period of five hundred forty-eight consecutive days
10 such individual is present in a foreign country or countries for at
11 least four hundred fifty days, and (B) during such period of five
12 hundred forty-eight consecutive days he or she is not present in such
13 school district for more than ninety days and does not maintain a perma-
14 nent place of abode in such school district at which his or her spouse
15 (unless such spouse is legally separated) or minor children are present
16 for more than ninety days, and (C) during the nonresident portion of the
17 taxable year with or within which such period of five hundred forty-
18 eight consecutive days begins and the nonresident portion of the taxable
19 year with or within which such period ends, he or she is present in such
20 school district for a number of days which does not exceed an amount
21 which bears the same ratio to ninety as the number of days contained in
22 such portion of the taxable year bears to five hundred forty-eight.
23 (b) School district resident estate or trust. A school district resi-
24 dent estate or trust means: (1) the estate of a decedent who at his or
25 her death was domiciled in such school district,
26 (2) a trust, or a portion of a trust, consisting of property trans-
27 ferred by will of a decedent who at his or her death was domiciled in
28 such school district, or
29 (3) a trust, or a portion of a trust, consisting of the property of:
30 (A) a person domiciled in such school district at the time such prop-
31 erty was transferred to the trust, if such trust or portion of a trust
32 was then irrevocable, or if it was then revocable and has not subse-
33 quently become irrevocable; or
34 (B) a person domiciled in such school district at the time such trust
35 or portion of a trust became irrevocable, if it was revocable when such
36 property was transferred to the trust but has subsequently become irrev-
37 ocable.
38 For the purposes of the foregoing, a trust or a portion of a trust is
39 revocable if it is subject to a power, exercisable immediately or at any
40 future time, to revest title in the person whose property constitutes
41 such trust or portion of a trust and a trust or portion of a trust
42 becomes irrevocable when the possibility that such power may be exer-
43 cised has been terminated.
44 § 5. Returns and liabilities. (a) General. On or before the fifteenth
45 day of the fourth month following the close of a taxable year, a school
46 district income tax surcharge return shall be made and filed by or for
47 every school district resident individual, estate or trust required to
48 file a New York state personal income tax return for the taxable year.
49 (b) Husband and wife. (1) If the New York state personal income tax
50 liabilities of husband and wife are determined on separate returns,
51 their school district income tax surcharge liabilities and returns shall
52 be separate.
53 (2) If the New York state personal income tax liabilities of husband
54 and wife (other than a husband and wife described in paragraph three of
55 this subsection) are determined on a joint return, they shall file a
56 joint school district income tax surcharge return, and their school
A. 7097 14
1 district income tax surcharge liabilities shall be joint and several
2 except as provided in paragraphs four and five of this subsection and in
3 subsection (e) of section six hundred eighty-five of this chapter.
4 (3) If either husband or wife is a school district resident and the
5 other is a school district nonresident, and their New York state
6 personal income tax liabilities are determined on a joint return:
7 (A) the resident spouse may elect to file a separate school district
8 income tax surcharge return, in which case the surcharge shall be
9 applied to a separate net state tax, such separate net state tax to be
10 that portion of the total net state tax determined from the joint state
11 return which bears the same relation to such total net state tax as the
12 New York adjusted gross income (as defined in section six hundred twelve
13 of this chapter) of the resident spouse bears to the joint New York
14 adjusted gross income, or
15 (B) they may elect to file a joint school district income tax
16 surcharge return, in which case their school district income tax
17 surcharge liabilities shall be joint and several except as provided in
18 paragraphs four and five of this subsection and in subsection (e) of
19 section six hundred eighty-five of this chapter, provided that (i) if
20 the school district of residence of each spouse imposes a surcharge, but
21 at different rates, they shall file the joint school district income tax
22 surcharge return with the school district imposing the higher rate of
23 surcharge, and there shall be no surcharge liability to the other school
24 district, or
25 (ii) if the school district of residence of each spouse imposes a
26 surcharge and the rates are the same, they shall file a joint school
27 district income tax surcharge return with each school district, but the
28 surcharge on each such return shall be applied to one-half of the net
29 state tax.
30 (4) Under regulations prescribed by the commissioner, if
31 (A) a joint New York state personal income tax return has been made
32 under subsection (b) of section six hundred fifty-one of this chapter
33 for a taxable year, (B) on such return there is a substantial under-
34 statement of tax attributable to grossly erroneous items of one spouse,
35 (C) the other spouse is relieved of liability for New York state
36 personal income tax (including interest, penalties and other amounts)
37 for such taxable year to the extent that such liability is attributable
38 to such substantial understatement pursuant to the provisions of para-
39 graph five of subsection (b) of section six hundred fifty-one of this
40 chapter, and (D) a joint school district personal income tax surcharge
41 return has been made pursuant to this subsection for the taxable year,
42 then such other spouse shall be relieved of liability for school
43 district income tax surcharge (including interest, penalties and other
44 amounts) for such taxable year under the school district income tax
45 surcharge, to the extent that such liability is attributable to such
46 substantial understatement.
47 (5) If a joint return has been made pursuant to this subsection for a
48 taxable year and only one spouse is liable for past-due support, or a
49 past-due legally enforceable debt, or an amount of a default in repay-
50 ment of a guaranteed student, state university or city university loan
51 of which the commissioner has been notified pursuant to section one
52 hundred seventy-one-c, one hundred seventy-one-d, one hundred seventy-
53 one-e or one hundred seventy-one-f of this chapter, as the case may be,
54 then an overpayment and interest thereon shall be credited against such
55 past-due support, or a past-due legally enforceable debt, or such amount
56 of a default in repayment of a guaranteed student, state university or
A. 7097 15
1 city university loan, unless the spouse not liable for such past-due
2 support, or a past-due legally enforceable debt, or such amount of a
3 default in repayment of a guaranteed student, state university or city
4 university loan demands, on a declaration made in accordance with regu-
5 lations or instructions prescribed by the commissioner, that the portion
6 of the overpayment and interest attributable to such spouse not be cred-
7 ited against the past-due support, or a past-due legally enforceable
8 debt, or amount of a default in repayment of a guaranteed student, state
9 university or city university loan owed by the other spouse. Upon such
10 demand the commissioner shall determine the amount of the overpayment
11 attributable to each spouse in accordance with regulations prescribed by
12 the commissioner and credit only that portion of the overpayment and
13 interest thereon attributable to the spouse liable for past-due support,
14 or a past-due legally enforceable debt, or amount of a default in repay-
15 ment of a guaranteed student, state university or city university loan
16 against such past-due support, or a past-due legally enforceable debt,
17 or such amount of a default in repayment of a guaranteed student, state
18 university or city university loan.
19 (c) Decedents. The return for any deceased individual shall be made
20 and filed by his executor, administrator, or other person charged with
21 his property. If a final return of a decedent is for a fractional part
22 of a year, the due date of such return shall be the fifteenth day of the
23 fourth month following the close of the twelve-month period which began
24 with the first day of such fractional part of the year.
25 (d) Individuals under a disability. The return for an individual who
26 is unable to make a return by reason of minority or other disability
27 shall be made and filed by his guardian, committee, fiduciary or other
28 person charged with the care of his person or property (other than a
29 receiver in possession of only a part of his property), or by his duly
30 authorized agent.
31 (e) Estates and trusts. The return for an estate or trust shall be
32 made and filed by the fiduciary.
33 (f) Joint fiduciaries. If two or more fiduciaries are acting jointly,
34 the return may be made by any one of them.
35 § 6. Requirement of withholding tax from wages. The school district
36 income tax surcharge shall be withheld from the wages of school district
37 residents in the same manner and subject to the same requirements, to
38 the greatest extent possible, as provided in sections six hundred seven-
39 ty-one through six hundred seventy-eight of this chapter except that the
40 term "aggregate amount" contained in paragraphs one, two and three of
41 subsection (a) of section six hundred seventy-four of this chapter shall
42 mean the aggregate of the amounts required to be deducted and withheld
43 of the New York state personal income tax, the city income and earnings
44 taxes authorized pursuant to articles thirty, thirty-A and thirty-B of
45 this chapter, and the school district income tax surcharge.
46 § 7. Credit for tax withheld. The school district income tax surcharge
47 withheld shall not reduce net state tax for purposes of computing the
48 school district income tax surcharge, but any amount of tax actually
49 deducted and withheld under this model surcharge in any calendar year
50 shall be deemed to have been paid to the department of taxation and
51 finance on behalf of the person from whom withheld, and such person
52 shall be credited with having paid the amount of tax for the taxable
53 year beginning in such calendar year. For a taxable year of less than
54 twelve months, the credit shall be made under regulations of the commis-
55 sioner.
A. 7097 16
1 § 8. Enforcement with other taxes. (a) Joint assessment. If there is
2 assessed a tax under the school district income tax surcharge and there
3 is also assessed a tax against the same taxpayer pursuant to article
4 twenty-two of this chapter or under a local law enacted pursuant to the
5 authority of article thirty, thirty-A or thirty-B of this chapter and
6 payment of a single amount is required under the provisions of this
7 model surcharge, payment shall be deemed to have been made with respect
8 to the taxes so assessed in proportion to the amounts of such taxes due,
9 including tax, penalties, interest and additions to tax.
10 (b) Joint action. If the commissioner takes action under such article
11 twenty-two or under a local law enacted pursuant to the authority of
12 article thirty, thirty-A or thirty-B of this chapter with respect to the
13 enforcement and collection of the tax or taxes assessed under such arti-
14 cles the commissioner shall, wherever possible, accompany such action
15 with a similar action under similar enforcement and collection
16 provisions of the school district income tax surcharge.
17 (c) Apportionment of moneys collected by joint action. Any moneys
18 collected as a result of such joint action shall be deemed to have been
19 collected in proportion to the amounts due, including tax, penalties,
20 interest and additions to tax, under article twenty-two of this chapter
21 or under a local law enacted pursuant to the authority of article thir-
22 ty, thirty-A, or thirty-B of this chapter and the school district income
23 tax surcharge.
24 (d) Joint deficiency action. Whenever the commissioner takes any
25 action with respect to a deficiency of income tax under article twenty-
26 two of this chapter or under a local law enacted pursuant to the author-
27 ity of article thirty, thirty-A or thirty-B of this chapter, other than
28 the action set forth in subsection (a) of this section, the commissioner
29 may in his or her discretion accompany such action with a similar action
30 under the school district income tax surcharge.
31 § 9. Administration, collection and review. (a) General. Except as
32 otherwise provided in this article, the school district income tax
33 surcharge shall be administered and collected by the commissioner in the
34 same manner as the tax imposed by article twenty-two of this chapter is
35 administered and collected by the commissioner. All of the provisions of
36 article twenty-two of this chapter relating to or applicable to payment
37 of estimated tax, returns, payment of tax, withholding of tax from
38 wages, employer's statements and returns, employer's liability for taxes
39 required to be withheld and all other provisions of article twenty-two
40 relating to or applicable to the administration, collection, liability
41 for and review of the tax imposed by article twenty-two, including
42 sections six hundred fifty-two and six hundred fifty-three, sections six
43 hundred fifty-seven through six hundred fifty-nine, section six hundred
44 sixty-one, sections six hundred seventy-one and six hundred seventy-two,
45 sections six hundred seventy-four through six hundred seventy-eight and
46 sections six hundred eighty-one through six hundred ninety-seven of this
47 chapter, inclusive, shall apply to the school district income tax
48 surcharge with the same force and effect as if those provisions had been
49 incorporated in full into this model surcharge, and had expressly
50 referred to the school district income tax surcharge, except where any
51 such provision is either inconsistent with a provision of this model
52 surcharge or is not relevant to this model surcharge. Whenever there is
53 joint collection of state personal income tax, city personal income or
54 earnings taxes or school district income tax surcharge, it shall be
55 deemed that such collection shall represent proportionately the applica-
56 ble state personal income tax, city personal income or earnings tax or
A. 7097 17
1 school district income tax surcharge in determining the amount to be
2 remitted to the school district.
3 (b) Payment to designated depositories. The commissioner, in his or
4 her discretion, may require or permit any or all persons liable for any
5 school district income tax surcharge imposed under this model surcharge
6 to make payments on account of estimated school district income tax
7 surcharge and payment of any school district income tax surcharge,
8 penalty or interest to such banks, banking houses or trust companies
9 designated by the commissioner and to file returns with such banks,
10 banking houses or trust companies, as agent of the commissioner, in lieu
11 of paying a school district income tax surcharge imposed under this
12 model surcharge directly to the commission. However, the commissioner
13 shall designate only such banks, banking houses or trust companies which
14 are designated by the comptroller as depositories of the state.
15 (c) Combined filings. Notwithstanding any other provisions of this
16 article, the commissioner may require:
17 (1) the filing of any or all of the following:
18 (A) a combined return which, in addition to the return provided for in
19 section five hereof, may also include any of the returns required pursu-
20 ant to the provisions of section six hundred fifty-one of this chapter
21 to be filed by an individual, estate or trust who or which is a resident
22 of New York state, and which may be required to be filed by such indi-
23 vidual, estate or trust pursuant to any local law enacted pursuant to
24 the authority of article thirty, thirty-A or thirty-B of this chapter,
25 and
26 (B) a combined employer's return which, in addition to the employer's
27 return provided for by this model surcharge, may also include any of the
28 employer's returns required to be filed by the same employer pursuant to
29 the provisions of section six hundred seventy-four of this chapter and
30 required to be filed by such employer pursuant to any local law enacted
31 under the authority of article thirty, thirty-A or thirty-B of this
32 chapter.
33 (2) Where a combined return or employer's return is required, and with
34 respect to the payment of estimated tax, the commissioner may also
35 require the payment of a single amount which shall equal the total of
36 the amounts (total taxes less any credits or refunds) which would have
37 been required to be paid with the returns or employer's returns or in
38 payment of estimated tax pursuant to the provisions of article twenty-
39 two of this chapter and this model surcharge and the provisions of local
40 laws enacted under the authority of article thirty, thirty-A or thirty-B
41 of this chapter.
42 § 1364. Deposit and disposition of revenues. (a) Deposit of revenues.
43 All revenue collected by the commissioner from the tax imposed by any
44 school district pursuant to the authority of this article shall be
45 deposited daily with such responsible banks, banking houses or trust
46 companies, as may be designated by the state comptroller, to the credit
47 of the comptroller, in trust for such school district. Such deposits
48 shall be kept in trust and separate and apart from all other moneys in
49 the possession of the comptroller. The comptroller shall require
50 adequate security from all such depositories of such revenue collected
51 by the commissioner.
52 (b) Reserves. The comptroller shall retain a reserve for refunds in
53 such amount as the commissioner may determine to be necessary for
54 refunds in respect to such tax and a reserve for reasonable costs of the
55 commissioner in administering, collecting and distributing such tax.
A. 7097 18
1 (1) From the reserve for refunds the comptroller shall pay any refunds
2 of such tax to which a taxpayer shall be entitled under any surcharge
3 enacted by a school district pursuant to the authority of this article,
4 except that
5 (A) the comptroller shall pay to the state department of social
6 services that amount of overpayment of such tax and the interest on such
7 amount which is certified to him or her by the commissioner as the
8 amount to be credited against past-due support pursuant to subdivision
9 six of section one hundred seventy-one-c of this chapter,
10 (B) the comptroller shall pay to the New York state higher education
11 services corporation that amount of overpayment of such tax and the
12 interest on such amount which is certified to him or her by the commis-
13 sioner as the amount to be credited against the amount of defaults in
14 repayment of guaranteed student loans pursuant to subdivision five of
15 section one hundred seventy-one-d of this chapter,
16 (C) the comptroller shall pay to the state university of New York or
17 the city university of New York respectively that amount of overpayment
18 of such tax and the interest on such amount which is certified to him or
19 her by the commissioner as the amount to be credited against the amount
20 of defaults in repayment of state or city university loans pursuant to
21 subdivision six of section one hundred seventy-one-e of this chapter,
22 (D) notwithstanding any other provision of law, the comptroller shall
23 credit to the revenue arrearage account, pursuant to section
24 ninety-one-a of the state finance law, that amount of overpayment of
25 such tax and the interest on such amount which is certified to him or
26 her by the commissioner as the amount to be credited against a past-due
27 legally enforceable debt owed to a state agency pursuant to subdivision
28 six of section one hundred seventy-one-f of this chapter, and
29 (E) the comptroller shall pay to a non-obligated spouse that amount of
30 overpayment of such tax and the interest on such amount which has been
31 credited pursuant to section one hundred seventy-one-c, one hundred
32 seventy-one-d, one hundred seventy-one-e or one hundred seventy-one-f of
33 this chapter and which is certified to him or her by the commissioner as
34 the amount due such non-obligated spouse pursuant to paragraph six of
35 subsection (b) of section six hundred fifty-one of this chapter, and the
36 comptroller shall deduct a like amount which he or she shall pay into
37 the treasury to the credit of the general fund from amounts subsequently
38 payable to the department of family assistance, the state university of
39 New York, the city university of New York, the higher education services
40 corporation or to the revenue arrearage account pursuant to section
41 ninety-one-a of the state finance law, as the case may be, whichever had
42 been credited the amount originally withheld from such overpayment.
43 (2) The amount reserved for administering, collecting and distributing
44 such tax shall be paid by the comptroller on or before the fifteenth day
45 of each month into the general fund of the state treasury to the credit
46 of the state purposes account therein.
47 § 13. Subdivision (e) of section 1800 of the tax law, as added by
48 chapter 65 of the laws of 1985, is amended to read as follows:
49 (e) As used in this article, the term "related income or earnings tax
50 statute" means any law, ordinance or resolution imposed pursuant to the
51 authority of article thirty, [thirty-a or thirty-b] thirty-A, thirty-B
52 or thirty-C of this chapter or article two-E of the general city law,
53 while such article two-E shall remain in full force and effect.
54 § 14. Subdivision (c) of section 3008 of the tax law, as added by
55 chapter 770 of the laws of 1992, is amended to read as follows:
A. 7097 19
1 (c) Assessments attributable to certain mathematical errors by the
2 department. In the case of an assessment of any tax imposed by or pursu-
3 ant to the authority of article twenty-two, thirty, thirty-A [or], thir-
4 ty-B or thirty-C of this chapter [or article two-E of the general city
5 law] attributable in whole or in part to a mathematical error described
6 in subparagraph (A) of paragraph two of subsection (g) of section
7 sixty-two hundred thirteen of the federal internal revenue code, if the
8 return was prepared by an officer or employee of the department acting
9 in his or her official capacity to provide assistance to taxpayers in
10 the preparation of income tax returns, the commissioner is authorized to
11 abate the assessment of all or any part of any interest on such defi-
12 ciency for any period ending on or before the tenth day following the
13 date of notice and demand by the commissioner for payment of the defi-
14 ciency.
15 § 15. Section 171 of the tax law is amended by adding a new subdivi-
16 sion twenty-ninth to read as follows:
17 Twenty-ninth. Develop guidelines and provide technical assistance to a
18 study commission of a school district formed pursuant to section fifteen
19 hundred one-d of the education law in order to implement the provisions
20 of article thirty-C of this chapter and section thirteen hundred seven
21 of the real property tax law.
22 § 16. The state education department, the department of taxation and
23 finance and the office of real property services are hereby directed to
24 conduct a joint study on whether this act has provided school districts
25 with greater flexibility to finance public education and afforded relief
26 to residential property taxpayers, and report jointly to the governor
27 and the legislature together with any recommendations for change to meet
28 these purposes. Said study shall not commence until this act has been in
29 effect for five years upon which the aforementioned agencies shall file
30 a joint written report to the governor and the legislature by no later
31 than the sixth year after this act takes effect.
32 § 17. This act shall take effect immediately.
33 § 3. Severability clause. If any clause, sentence, paragraph, subdivi-
34 sion, section or part of this act shall be adjudged by any court of
35 competent jurisdiction to be invalid, such judgment shall not affect,
36 impair, or invalidate the remainder thereof, but shall be confined in
37 its operation to the clause, sentence, paragraph, subdivision, section
38 or part thereof directly involved in the controversy in which such judg-
39 ment shall have been rendered. It is hereby declared to be the intent of
40 the legislature that this act would have been enacted even if such
41 invalid provisions had not been included herein.
42 § 4. This act shall take effect immediately provided, however, that
43 the applicable effective dates of Parts A and B of this act shall be as
44 specifically set forth in the last section of such Parts.
