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A09710 Summary:

A09710 Actions:

A09710 Floor Votes:

A09710 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
            S. 6610--C                                            A. 9710--D
 
                SENATE - ASSEMBLY
 
                                    January 19, 2010
                                       ___________
 
        IN  SENATE -- A BUDGET BILL, submitted by the Governor pursuant to arti-
          cle seven of the Constitution -- read twice and ordered  printed,  and
          when  printed to be committed to the Committee on Finance -- committee
          discharged, bill amended, ordered reprinted as amended and recommitted
          to said committee  --  committee  discharged,  bill  amended,  ordered

          reprinted  as  amended  and  recommitted to said committee -- reported
          favorably from said committee and committed to the Committee on  Rules
          --  ordered to a third reading, amended and ordered reprinted, retain-
          ing its place in the order of third reading -- recommitted to Rules --
          committee discharged, bill amended, ordered reprinted as  amended  and
          recommitted to said committee
 
        IN  ASSEMBLY  --  A  BUDGET  BILL, submitted by the Governor pursuant to
          article seven of the Constitution -- read once  and  referred  to  the
          Committee  on  Ways  and  Means -- committee discharged, bill amended,
          ordered reprinted as amended and  recommitted  to  said  committee  --
          again  reported from said committee with amendments, ordered reprinted
          as amended and recommitted to said committee --  again  reported  from

          said  committee  with  amendments,  ordered  reprinted  as amended and
          recommitted to said committee -- again reported  from  said  committee
          with  amendments, ordered reprinted as amended and recommitted to said
          committee
 
        AN ACT to amend the tax law, in relation to the statutory limitation  on
          the  biofuel  production  credit and the qualified emerging technology
          company facilities, operations and training credits (Part A); to amend
          the tax law, in relation to the inclusion of certain  past  employment
          related  income  in  the  calculation of the New York source income of
          nonresidents (Part B); to amend the tax law, in relation to clarifying
          that certain income constitutes New York source income of  nonresident
          shareholders of an S corporation (Part C); Intentionally omitted (Part
          D);  to  amend  the  tax  law, in relation to information reporting of

          payments made in settlement of payment card and  third  party  network
          transactions  (Part  E);  Intentionally omitted (Part F); to amend the
          tax law and the administrative code  of  the  city  of  New  York,  in
          relation to the penalties imposed upon tax return preparers failing to
          electronically  file  returns and other tax documents when required by
          law to do so, to authorize reasonable correction periods for electron-
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD12674-08-0
        S. 6610--C                          2                         A. 9710--D
 
          ic tax filings and payments, and to prohibit tax return preparers  and

          software  companies  from charging separately for electronic filing of
          New York tax documents  (Part  G);  Intentionally  omitted  (Part  H);
          Intentionally  omitted  (Part  I);  Intentionally omitted (Part J); to
          amend chapter 383 of the laws of 2001 amending the tax law  and  other
          laws  relating to authorizing the division of the lottery to conduct a
          pilot program involving the operation of video  lottery  terminals  at
          certain  racetracks,  in relationship to the effectiveness thereof; to
          amend the tax law, in relation to the  hours  of  operation  of  video
          lottery  gaming, the vendor fees paid to lottery agents, the amount of
          video lottery gaming revenue after payout of prizes to be retained  by
          the division of the lottery for operation, administration and procure-
          ment  purposes  at a certain track and the recapture of the vendor fee

          at a certain track; and to repeal section 13 of  chapter  140  of  the
          laws  of  2008  amending the racing, pari-mutuel wagering and breeding
          law and other laws relating  to  thoroughbred  racing  and  to  repeal
          section  5  of  chapter  286  of the laws of 2008 amending the tax law
          relating to annual  capital  improvement  credits  for  video  lottery
          gaming  operators,  relating  thereto  (Part K); Intentionally omitted
          (Part L); Intentionally omitted (Part M); to amend  the  tax  law,  in
          relation  to  narrowing  the  definition of vendor for purposes of the
          sales and compensating use taxes (Part N); Intentionally omitted (Part
          O); to amend the public housing law, in relation to providing a credit
          against income tax for persons or  entities  investing  in  low-income
          housing  (Part  P);  to amend chapter 60 of the laws of 2004, amending

          the tax law relating to the empire state film  production  credit,  in
          relation to the empire state film production credit and in relation to
          the  effectiveness  of  such  provisions;  to  amend  the  tax law, in
          relation to the empire state film production credit; and to amend  the
          tax  law,  in relation to the empire state film post production credit
          (Part Q); to amend the general  municipal  law,  in  relation  to  the
          decertification of business entities located in empire zones; to amend
          the  tax  law,  in  relation to a refund or credit provided to certain
          zone businesses and to a report on empire zone businesses produced  by
          the department of taxation and finance, and to amend chapter 57 of the
          laws  of  2009,  amending  the  general  municipal law and the tax law
          relating to enacting reforms to the empire zones program, in  relation

          to  the  effectiveness  thereof  (Part  R);  to  amend the tax law, in
          relation to making technical corrections to  certain  tax  enforcement
          and  sales  tax  avoidance  provisions; and to amend chapter 57 of the
          laws of 2009 amending the criminal procedure law, the penal  law,  and
          the  tax  law  relating to creating the offense of "tax fraud act", in
          relation to the effectiveness thereof (Subpart A); to  amend  the  tax
          law,  in  relation to defining certain terms (Subpart B); and to amend
          the general municipal law and the public authorities law, in  relation
          to  statements  of  industrial  agencies  and their agents and project
          operators (Subpart C) (Part S); to amend the tax law, in  relation  to
          the  amount  of  the  unified  credit against the estate tax (Part T);
          Intentionally omitted (Part U); to amend the tax law and the  adminis-

          trative  code of the city of New York, in relation to the taxicab ride
          tax imposed in the metropolitan commuter  transportation  district  by
          article  29-A  of the tax law (Part V); to repeal subdivision (e-1) of
          section 1132 of the tax law, relating to a sales tax bad  debt  credit
          or  refund  for purchases made by private label credit cards (Part W);
          to amend the tax law, in relation  to  the  sales  tax  vendor  credit
          authorized  under  article  28  (Part  X);  to  amend  the tax law, in
        S. 6610--C                          3                         A. 9710--D
 
          relation to the deferral of use or  payment  of  certain  tax  credits
          (Part Y); to amend the tax law and the administrative code of the city
          of  New  York,  in relation to the deduction for bad debts provided to

          qualifying thrift institutions and commercial banks (Part Z); to amend
          the  tax  law  and the administrative code of the city of New York, in
          relation to ensuring payment of sales tax due on rent for  hotel  room
          occupancy  by room remarketers of hotel rooms and to reverse the deci-
          sion of the Tax Appeals Tribunal in the Marriott  International,  Inc.
          matter  on rewards program payments; and to repeal certain sections of
          the administrative code of the city of New York relating thereto (Part
          AA); Intentionally omitted (Part BB); to amend the  tax  law  and  the
          administrative  code of the city of New York, in relation to modifying
          the New York itemized deduction (Part CC); Intentionally omitted (Part
          DD); to amend the state finance law, the tax law and  the  administra-
          tive  code  of  the city of New York, in relation to the New York city

          personal income tax rates (Part EE); to amend the  real  property  tax
          law  and  the tax law, in relation to the STAR exemption (Part FF); to
          amend the tax law, in relation to eliminating the  state's  sales  and
          compensating use tax exemption for clothing and footwear sold for less
          than  $110  per item for the period October 1, 2010, through March 31,
          2011; exempting clothing and footwear sold for less than $55 per  item
          from state taxes for the period April 1, 2011, through March 31, 2012;
          authorizing  counties  and cities to elect the less than $55 exemption
          for the same period; and  restoring  the  state's  original  exemption
          April  1,  2012;  and to repeal subdivision (k) of section 1210 of the
          tax law relating thereto; and providing  for  the  repeal  of  certain
          provisions upon expiration thereof (Part GG); to amend the tax law, in

          relation  to  limiting  itemized  deductions for certain taxpayers and
          determining the amount of estimated tax installments to be paid  (Part
          HH);  to  amend  the  abandoned  property law, in relation to uncashed
          travelers checks and money orders and miscellaneous unclaimed property
          (Part II); Intentionally omitted (Part JJ); to amend the tax  law,  in
          relation  to  investment management services to a partnership or other
          entity (Part KK); Intentionally omitted (Part LL); to amend Part  FF-1
          of  chapter 57 of the laws of 2008 relating to the taxation of captive
          real estate investment trusts and captive regulated investment  compa-
          nies, in relation to the application of the provisions of such chapter
          (Part  MM);  to  amend the tax law, in relation to the definition of a
          captive REIT (Part NN); to amend the public service law,  in  relation

          to electric corporations (Part OO); to amend chapter 57 of the laws of
          2009  amending  the education law and other laws relating to contracts
          for excellence, reporting requirements, electronic  format  materials,
          reimbursement of school districts, calculation of foundation aid base,
          foundation  amount and local contribution, apportionment of school aid
          and of current year approved expenditures for  debt  service,  deficit
          reduction  assessment,  building  aid, Medicaid reimbursement, grants,
          and maximum class size, in relation to  deficit  reduction  assessment
          restoration  (Part  PP);  to  amend  the education law, in relation to
          making technical corrections  concerning  gap  elimination  adjustment
          offset  (Part QQ); to amend the public authorities law, in relation to
          the implementation of a state longitudinal data system (Part  RR);  to

          amend  the  vehicle  and  traffic law, in relation to making technical
          amendments concerning designated bus lanes (Part  SS);  to  amend  the
          retirement  and  social  security  law,  in  relation to the manner of
          paying employer contributions to the New York state and local  employ-
          ees'  retirement  system  and  the New York state and local police and
        S. 6610--C                          4                         A. 9710--D
 
          fire retirement system (Part TT); in relation to the  New  York  state
          urban  development  corporation  submitting  a comprehensive financial
          plan to the director of the budget and the establishment  of  accounts
          and subaccounts within the treasury of such corporation; and providing
          for  the  repeal  of such provisions upon the expiration thereof (Part

          UU); to amend the state finance law, in relation to  establishing  the
          education  assessment  account  (Part  VV);  to  amend the tax law, in
          relation to excluding from sales tax transportation  service  provided
          by  an  affiliated  livery  vehicle in a city with a population of one
          million or more (Part WW); to amend the correction law,  the  legisla-
          tive  law,  and  the  municipal  home  rule  law,  in  relation to the
          collection of census data (Part XX); and to  amend  the  tax  law,  in
          relation to little cigars (Part YY)
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. This act enacts into law major  components  of  legislation
     2  which are necessary to implement the state fiscal plan for the two thou-

     3  sand ten-two thousand eleven state fiscal year. Each component is wholly
     4  contained  within a Part identified as Parts A through YY. The effective
     5  date for each particular provision contained within  such  Part  is  set
     6  forth  in  the  last  section of such Part. Any provision in any section
     7  contained within a Part, including the effective date of the Part, which
     8  makes a reference to a section "of this act", when  used  in  connection
     9  with that particular component, shall be deemed to mean and refer to the
    10  corresponding section of the Part in which it is found. Section three of
    11  this act sets forth the general effective date of this act.
 
    12                                   PART A
 
    13    Section  1.  Subdivision (a) of section 28 of the tax law, as added by
    14  section 1 of part X of chapter 62 of the laws of  2006,  is  amended  to
    15  read as follows:

    16    (a)  General.  A taxpayer subject to tax under article nine, nine-A or
    17  twenty-two of this chapter shall be allowed a credit  against  such  tax
    18  pursuant  to  the  provisions  referenced  in  subdivision  (d)  of this
    19  section. The credit (or pro rata share of earned credit in the case of a
    20  partnership) for each gallon of biofuel produced at a biofuel  plant  on
    21  or  after  January first, two thousand six shall equal fifteen cents per
    22  gallon after the production of the first forty thousand gallons per year
    23  presented to market. The credit under this section shall  be  capped  at
    24  two and one-half million dollars per taxpayer per taxable year for up to
    25  no  more  than four consecutive taxable years per biofuel plant.  If the
    26  taxpayer is a partner in a partnership or shareholder of a  New  York  S

    27  corporation,  then  the  cap  imposed by the preceding sentence shall be
    28  applied at the entity level, so that the aggregate credit allowed to all
    29  the partners or shareholders of each such entity  in  the  taxable  year
    30  does not exceed two and one-half million dollars.
    31    §  2. Paragraph (f) of subdivision 12-G of section 210 of the tax law,
    32  as amended by section 1-a of part A of chapter 63 of the laws  of  2005,
    33  is amended to read as follows:
    34    (f)  An eligible taxpayer may claim credits under this subdivision for
    35  four consecutive taxable years, except, if a taxpayer is located  in  an
    36  academic  incubator  facility  and  relocates within New York state to a
        S. 6610--C                          5                         A. 9710--D
 

     1  nonacademic incubator site, then the taxpayer (i) may make  a  revocable
     2  election  to  defer  the  credit  provided under this subdivision to the
     3  first taxable year  beginning  after  the  taxpayer  relocates  from  an
     4  academic  incubator facility, and (ii) shall be eligible for such credit
     5  for five consecutive taxable years. In no case shall the credit  allowed
     6  by  this subdivision to a taxpayer exceed two hundred and fifty thousand
     7  dollars per year.  If the taxpayer is a  partner  in  a  partnership  or
     8  shareholder  of  a New York S corporation, then the limit imposed by the
     9  preceding sentence shall be applied at the entity  level,  so  that  the
    10  aggregate  credit  allowed  to  all the partners or shareholders of each
    11  such entity in the taxable year does not exceed two  hundred  and  fifty

    12  thousand dollars.
    13    §  3. Paragraph 6 of subsection (nn) of section 606 of the tax law, as
    14  amended by section 1-a of part A of chapter 63 of the laws of  2005,  is
    15  amended to read as follows:
    16    (6)  An  eligible taxpayer may claim credits under this subsection for
    17  four consecutive taxable years, except, if a taxpayer is located  in  an
    18  academic  incubator  facility  and  relocates within New York state to a
    19  nonacademic incubator site, then the taxpayer (i) may make  a  revocable
    20  election to defer the credit provided under this subsection to the first
    21  taxable  year  beginning  after  the taxpayer relocates from an academic
    22  incubator facility, and (ii) shall be eligible for such credit for  five
    23  consecutive  years.  In  no  case  shall  the  credit  allowed  by  this
    24  subsection to a taxpayer exceed two hundred fifty thousand  dollars  per

    25  year.  If the taxpayer is a partner in a partnership or shareholder of a
    26  New York S corporation, then the limit imposed by the preceding sentence
    27  shall  be  applied  at  the  entity  level, so that the aggregate credit
    28  allowed to all the partners or shareholders of each such entity  in  the
    29  taxable year does not exceed two hundred fifty thousand dollars.
    30    § 4. This act shall take effect immediately and apply to taxable years
    31  beginning on or after January 1, 2010.
 
    32                                   PART B
 
    33    Section  1.  Subparagraph  (E)  of  paragraph  1  of subsection (b) of
    34  section 631 of the tax law, as added by section 1 of part H  of  chapter
    35  60  of  the laws of 2004, is amended and a new subparagraph (F) is added
    36  to read as follows:

    37    (E) gains from the sale, conveyance or other disposition of shares  of
    38  stock  in a cooperative housing corporation in connection with the grant
    39  or transfer of a proprietary leasehold by the owner thereof and  subject
    40  to  the  provisions  of article thirty-one of this chapter, whether such
    41  shares are held by a partnership, trust or otherwise[.]; or
    42    (F) income received by nonresidents  related  to  a  business,  trade,
    43  profession or occupation previously carried on in this state, whether or
    44  not  as  an  employee,  including  but  not limited to, covenants not to
    45  compete and termination  agreements.  Income  received  by  nonresidents
    46  related  to  a  business,  trade,  profession  or  occupation previously
    47  carried on partly within and partly without the state shall be allocated

    48  in accordance with the provisions of subsection (c) of this section.
    49    § 2. This act shall take effect immediately and apply to taxable years
    50  on or after January 1, 2010.
 
    51                                   PART C
        S. 6610--C                          6                         A. 9710--D
 
     1    Section 1. Legislative findings. The  legislature  finds  that  it  is
     2  necessary to correct a decision of the tax appeals tribunal and a deter-
     3  mination  of the division of tax appeals that erroneously overturned the
     4  longstanding policies of department of taxation and finance that nonres-
     5  ident  subchapter  S shareholders who sell their interest in an S corpo-
     6  ration pursuant to an  election  under  section  338(h)(10)  or  section
     7  453(h)(1)(A)  of  the  Internal Revenue Code, respectively, are taxed in

     8  accordance with that election and the transaction is treated as an asset
     9  sale producing New York source  income.  Section  two  of  this  act  is
    10  intended  to  clarify  the concept of federal conformity in the personal
    11  income tax and is necessary to prevent confusion in the  preparation  of
    12  returns,  unintended  refunds,  and protracted litigation of issues that
    13  have been properly administered up to now.
    14    § 2. Paragraph 2 of subsection (a) of section 632 of the tax  law,  as
    15  amended  by  section 65 of part A of chapter 389 of the laws of 1997, is
    16  amended to read as follows:
    17    (2) In determining New York source income of a nonresident shareholder
    18  of an S corporation where the election provided for in subsection (a) of
    19  section six hundred sixty of this article is in effect, there  shall  be
    20  included only the portion derived from or connected with New York sourc-

    21  es  of  such  shareholder's  pro  rata  share  of items of S corporation
    22  income, loss and deduction entering  into  his  federal  adjusted  gross
    23  income,  increased  by  reductions for taxes described in paragraphs two
    24  and three of subsection (f) of section thirteen hundred sixty-six of the
    25  internal revenue code, as such portion shall be determined  under  regu-
    26  lations  of  the commissioner consistent with the applicable methods and
    27  rules for allocation under article nine-A or thirty-two of this chapter,
    28  regardless of whether or not such  item  or  reduction  is  included  in
    29  entire  net  income under article nine-A or thirty-two for the tax year.
    30  If a nonresident is a shareholder in an S corporation where the election
    31  provided for in subsection (a) of section  six  hundred  sixty  of  this

    32  article  is in effect, and the S corporation has distributed an install-
    33  ment obligation under section 453(h)(1)(A) of the Internal Revenue Code,
    34  then any gain recognized on the receipt of payments from the installment
    35  obligation for federal income tax purposes will be treated as  New  York
    36  source income allocated in a manner consistent with the applicable meth-
    37  ods  and rules for allocation under article nine-A or thirty-two of this
    38  chapter in the year that the assets  were  sold.  In  addition,  if  the
    39  shareholders  of  the  S corporation have made an election under section
    40  338(h)(10) of the Internal Revenue Code, then any gain recognized on the
    41  deemed asset sale for federal income tax purposes will be treated as New

    42  York source income allocated in a manner consistent with the  applicable
    43  methods  and  rules for allocation under article nine-A or thirty-two of
    44  this  chapter  in  the  year  that  the  shareholder  made  the  section
    45  338(h)(10) election. For purposes of a section 338(h)(10) election, when
    46  a  nonresident  shareholder  exchanges his or her S corporation stock as
    47  part of the deemed liquidation, any gain or  loss  recognized  shall  be
    48  treated  as the disposition of an intangible asset and will not increase
    49  or offset any gain recognized on the deemed assets sale as a  result  of
    50  the section 338(h)(10) election.
    51    §  3.  Paragraph  1 of subsection (b) of section 631 of the tax law is
    52  amended by adding a new subparagraph (E-1) to read as follows:

    53    (E-1) in the case of an S corporation for  which  an  election  is  in
    54  effect  pursuant  to subsection (a) of section six hundred sixty of this
    55  article that terminates its taxable status in New York,  any  income  or
    56  gain  recognized  on  the  receipt  of payments from an installment sale
        S. 6610--C                          7                         A. 9710--D
 
     1  contract entered into when the S corporation was subject to tax  in  New
     2  York,  allocated  in a manner consistent with the applicable methods and
     3  rules for allocation under article nine-A or thirty-two of this chapter,
     4  in the year that the S corporation sold its assets.
     5    §  4.  This  act shall take effect immediately; provided however, that

     6  section two of this act shall apply to all tax years for which the stat-
     7  ute of limitations for seeking a refund or assessing additional tax  are
     8  still  open,  and section three of this act shall apply to taxable years
     9  beginning on or after January 1, 2010.
 
    10                                   PART D
 
    11    Intentionally omitted.
 
    12                                   PART E
 
    13    Section 1. The tax law is amended by adding a new section 1703 to read
    14  as follows:
    15    § 1703. Information returns relating to payments made in settlement of
    16  payment card and third party network transactions. 1. (a) Every  payment
    17  settlement  entity,  third  party  settlement  organization,  electronic
    18  payment facilitator or other third party acting on behalf of  a  payment

    19  settlement  entity,  all  as  defined  in  section 6050W of the internal
    20  revenue code and referred to herein as "a reporting entity," required to
    21  file information returns pursuant to that section shall,  within  thirty
    22  days  of  the  filing thereof, file with the department in such form and
    23  manner as prescribed by the commissioner either (i) a duplicate  of  all
    24  such information returns or (ii) a duplicate of such information returns
    25  related  to  participating  payees,  as  defined in section 6050W of the
    26  internal revenue code, with a New York state address or New  York  state
    27  taxpayers. The commissioner may require that such returns be filed elec-
    28  tronically.
    29    (b)  To facilitate accurate reporting by the entities required to file

    30  information returns pursuant  to  this  section,  the  department  shall
    31  provide  a  list  or  database of New York state taxpayers no later than
    32  forty-five days prior to the information  reporting  deadline,  in  such
    33  form  and  manner  as  prescribed  by  the commissioner. The information
    34  included in such list or database shall not be used by a reporting enti-
    35  ty for any purpose other than producing and filing  information  returns
    36  pursuant to this section.
    37    (c)  Any  information  received  by  the  department on an information
    38  return filed pursuant to this section, concerning a person  who  is  not
    39  subject to tax in New York, or is not subject to any requirement imposed
    40  by  or pursuant to the authority of this chapter, may not be used by the

    41  department. The department shall not redisclose any information received
    42  on an information return filed pursuant to this section.
    43    2. (a) Any reporting entity failing  to  file  an  information  return
    44  required  pursuant  to  subdivision  one of this section within the time
    45  prescribed will be subject to a penalty of fifty dollars for each  fail-
    46  ure, if failure is for not more than one month, with an additional fifty
    47  dollars  for  each  month  or fraction thereof during which each failure
    48  continues. However, the total amount of penalty imposed on  a  reporting
    49  entity may not exceed two hundred fifty thousand dollars annually.
    50    (b)  The  commissioner  may  waive  all  or any portion of any penalty

    51  imposed by this subdivision with respect to any  violation  if  (i)  the
    52  commissioner  determines  that  the failure to timely file a return, was
        S. 6610--C                          8                         A. 9710--D
 
     1  due to reasonable cause and not due to willful neglect, or (ii) rescind-
     2  ing the penalty would promote compliance with the requirements  of  this
     3  chapter and effective tax administration.
     4    § 2. This act shall take effect immediately.
 
     5                                   PART F
 
     6    Intentionally omitted.
 
     7                                   PART G
 
     8    Section  1.  Paragraph  1  of subdivision (e) of section 29 of the tax
     9  law, as added by section 1 of part UU-1 of chapter 57  of  the  laws  of
    10  2008, is amended to read as follows:

    11    (1)  If a tax return preparer is required to file authorized tax docu-
    12  ments electronically pursuant to subdivision (b) of  this  section,  and
    13  that  preparer  fails  to  file one or more of those documents electron-
    14  ically, then that preparer will be subject to a penalty of fifty dollars
    15  for each failure to electronically  file  an  authorized  tax  document,
    16  unless  it  is shown that the failure is due to reasonable cause and not
    17  due to willful neglect. [For  purposes  of  this  paragraph,  reasonable
    18  cause shall include, but not be limited to, a taxpayer's election not to
    19  electronically file the authorized tax document.]
    20    §  2.  The  tax  law  is amended by adding a new section 33 to read as
    21  follows:
    22    § 33.  Correction periods for electronic tax documents  and  payments.

    23  (a) For purposes of this section, the following terms have the specified
    24  meanings:
    25    (1)  "Electronic  funds  withdrawal"  means  the  process by which the
    26  department, with a taxpayer's permission, originates an electronic order
    27  from its bank to the taxpayer's bank to withdraw funds from the  taxpay-
    28  er's  bank  account so that the taxpayer may pay a tax liability associ-
    29  ated with a tax document.
    30    (2) "Electronic postmark" means a record of the date and  time  (in  a
    31  particular time zone) that an authorized electronic transmitter receives
    32  the  transmission  of  a taxpayer's electronically filed tax document on
    33  its host system.
    34    (3) "Electronic transmitter" means a person or entity that is  author-

    35  ized  to  submit  electronic tax documents directly to the department or
    36  directly to the internal revenue service for forwarding to  the  depart-
    37  ment.
    38    (4)  "Reject"  or  "rejected"  means  that an electronically filed tax
    39  document or an authorization for an electronic funds withdrawal  is  not
    40  accepted for processing.
    41    (5)  "Submit" or "submitted" means the date of the electronic postmark
    42  assigned by an electronic transmitter to  an  electronically  filed  tax
    43  document  or  authorization for an electronic funds withdrawal. However,
    44  if an electronic transmitter does not  assign  an  electronic  postmark,
    45  then  an electronically filed tax document or authorization for an elec-

    46  tronic funds withdrawal shall be deemed submitted on the earlier of  the
    47  date  the internal revenue service receives the electronically filed tax
    48  document or authorization for an electronic  funds  withdrawal,  or  the
    49  date  the  department  receives the electronically filed tax document or
    50  authorization for an electronic funds withdrawal. In any of  the  afore-
    51  mentioned  cases,  if  the  taxpayer  can  establish  that  the  time of
        S. 6610--C                          9                         A. 9710--D
 
     1  submission, adjusted for the taxpayer's time zone, was timely, the  time
     2  of submission shall be based on the taxpayer's time zone.
     3    (6)  "Tax"  means any tax, fee, special assessment or other imposition

     4  administered by the commissioner.
     5    (7) "Tax document" means any return, report or other document relating
     6  to a tax.
     7    (b) If a tax document is required or permitted to be  filed  with  the
     8  department  electronically  (whether directly, directly through a return
     9  transmitter or through the internal revenue service), the  tax  document
    10  is  submitted electronically on or before the due date for such document
    11  (including any extension of time),  and  the  electronically  filed  tax
    12  document is rejected, then the commissioner may, by instruction, provide
    13  for  a  reasonable  period  of time during which the tax document may be
    14  corrected and re-submitted. If the corrected tax document is  re-submit-

    15  ted  on  or  before the expiration date of the extended time period, and
    16  such document is accepted by the department  for  processing,  then  the
    17  re-submitted tax document shall be deemed to have been timely filed even
    18  though the department receives it after the applicable due date (includ-
    19  ing any extension of time).
    20    (c) (1) If a taxpayer has submitted an authorization for an electronic
    21  funds  withdrawal  on  or before the due date for payment (including any
    22  extension of time), and such authorization is rejected  by  the  depart-
    23  ment,  then  the commissioner may, by instruction, provide for a reason-
    24  able period of time, commencing from the  date  of  rejection,  for  the
    25  taxpayer  to  re-submit the authorization for the electronic funds with-

    26  drawal. If the authorization for  the  electronic  funds  withdrawal  is
    27  re-submitted on or before the expiration date of the extended time peri-
    28  od,  then  the  electronic funds withdrawal shall be deemed to have been
    29  timely paid even though the department receives it after the  applicable
    30  due date (including any extension of time).
    31    (2) Any reasonable period of time provided for by the commissioner for
    32  re-submission of an authorization for an electronic funds withdrawal may
    33  differ  from  the  reasonable  time  period, if any, provided for by the
    34  commissioner with respect to the electronically filed tax document  with
    35  which the taxpayer's electronic funds withdrawal is associated.

    36    (3)  In lieu of re-submitting an authorization for an electronic funds
    37  withdrawal, the commissioner may permit a taxpayer  to  instead  pay  by
    38  substitute  means, as defined by instruction. Any such instruction shall
    39  address the timeliness of payment by substitute means.
    40    (d) The provisions of  this  section  shall  not  apply  to  taxpayers
    41  participating  in  the  electronic funds transfer programs prescribed by
    42  sections nine and ten of this article.
    43    § 3. The tax law is amended by adding a new  section  34  to  read  as
    44  follows:
    45    § 34.  Tax return preparers and software companies not to charge sepa-
    46  rately  for  New York e-file services. (a) For purposes of this section,
    47  the following terms have the specified meanings:

    48    (1) "Authorized tax document" means a tax document which  the  commis-
    49  sioner has authorized to be filed electronically.
    50    (2) "Electronic" means computer technology.
    51    (3) "Software company" means a developer of tax software.
    52    (4)  "Tax"  means  any tax or other matter administered by the commis-
    53  sioner pursuant to this chapter or any other provision of law.
    54    (5) "Tax document" means a return, report or any other document relat-
    55  ing to a tax or other matter administered by the commissioner.
        S. 6610--C                         10                         A. 9710--D
 
     1    (6) "Tax return preparer" means any person who  prepares  for  compen-
     2  sation,  or  who  employs  or engages one or more persons to prepare for

     3  compensation, any authorized tax document. For purposes of this section,
     4  the term "tax return preparer" also includes a payroll service.
     5    (7)  "Tax  software"  means any computer software program intended for
     6  tax return preparation purposes. For purposes of this section, the  term
     7  "tax  software"  includes, but is not limited to, an off-the-shelf soft-
     8  ware program loaded onto a tax return preparer's or taxpayer's computer,
     9  or an online tax preparation application.
    10    (b) It shall be unlawful for a  tax  return  preparer  or  a  software
    11  company to charge a separate fee for the electronic filing of authorized
    12  tax documents. It shall also be unlawful for a software company to offer

    13  a  version of its tax software that charges a separate fee for the elec-
    14  tronic filing of authorized tax documents and one version  of  the  same
    15  tax software that does not.
    16    (c) Any tax return preparer or software company violating this section
    17  will be liable for a civil penalty of five hundred dollars for the first
    18  violation  and  one  thousand dollars for each succeeding violation. The
    19  civil penalties imposed by this section shall be paid to the commission-
    20  er upon notice and demand, and will be assessed, collected and  paid  in
    21  the same manner as taxes under article twenty-seven of this chapter.
    22    §  4.  Paragraph 5 of subsection (u) of section 685 of the tax law, as
    23  added by section 2 of part Q of chapter 61  of  the  laws  of  2005,  is

    24  amended to read as follows:
    25    (5)  Failure  to  electronically  file.  If  a  tax return preparer is
    26  required to file returns electronically pursuant  to  paragraph  ten  of
    27  subsection  (g)  of section six hundred fifty-eight of this article, and
    28  such preparer fails to file one or more of such returns  electronically,
    29  then  such  preparer  shall be subject to a penalty of fifty dollars for
    30  each such failure to electronically file a return, unless  it  is  shown
    31  that  such  failure  is  due  to reasonable cause and not due to willful
    32  neglect.   [For purposes  of  this  paragraph,  reasonable  cause  shall
    33  include,  but  not be limited to, a taxpayer's election not to electron-
    34  ically file his or her return.]
    35    § 5. Paragraph 5 of subdivision (t) of section 11-1785 of the adminis-

    36  trative code of the city of New York, as added by section 4 of part Q of
    37  chapter 61 of the laws of 2005, is amended to read as follows:
    38    (5) Failure to electronically  file.  If  a  tax  return  preparer  is
    39  required  to  file  returns  electronically pursuant to paragraph ten of
    40  subdivision (g) of section 11-1758, and such preparer fails to file  one
    41  or  more  of  such  returns  electronically, then such preparer shall be
    42  subject to a penalty of fifty dollars for each such failure to electron-
    43  ically file a return, unless it is shown that such  failure  is  due  to
    44  reasonable  cause  and not due to willful neglect. [For purposes of this
    45  paragraph, reasonable cause shall include, but  not  be  limited  to,  a
    46  taxpayer's election not to electronically file his or her return.]

    47    §  6.  This act shall take effect immediately, provided, however, that
    48  sections one, four and five of this act shall apply to tax  returns  and
    49  other  tax  documents  required to be filed electronically by tax return
    50  preparers on or after December 31, 2010, and section  two  of  this  act
    51  shall apply to electronic returns and payments made for tax years begin-
    52  ning after December 31, 2010.
 
    53                                   PART H
 
    54    Intentionally omitted.
        S. 6610--C                         11                         A. 9710--D
 
     1                                   PART I
 
     2    Intentionally omitted.
 
     3                                   PART J
 
     4    Intentionally omitted.
 
     5                                   PART K
 
     6    Section  1.  Section  4  of part C of chapter 383 of the laws of 2001,

     7  amending the tax law and other laws relating to authorizing the division
     8  of the lottery to conduct a pilot program  involving  the  operation  of
     9  video lottery terminals at certain racetracks, as amended by chapter 140
    10  of the laws of 2008, is amended to read as follows:
    11    §  4. This act shall take effect immediately[; provided, however, that
    12  the provisions of this act shall expire and be deemed repealed  December
    13  31, 2033].
    14    §  2. Section 4 of part C of chapter 383 of the laws of 2001, amending
    15  the tax law and other laws relating to authorizing the division  of  the
    16  lottery  to  conduct  a  pilot  program involving the operation of video
    17  lottery terminals at certain racetracks, as amended by  chapter  286  of
    18  the laws of 2008, is amended to read as follows:

    19    §  4. This act shall take effect immediately[; provided, however, that
    20  the provisions of this act shall expire and be deemed repealed  December
    21  31, 2050].
    22    §  3.  Section  13  of  chapter  140  of the laws of 2008 amending the
    23  racing, pari-mutuel wagering and breeding law and other laws relating to
    24  thoroughbred racing is REPEALED.
    25    § 4. Section 5 of chapter 286 of the laws of 2008 amending the tax law
    26  relating to annual capital improvement credits for video lottery  gaming
    27  operators is REPEALED.
    28    §  5.  Subdivision  b  of section 1617-a of the tax law, as amended by
    29  section 2 of part Z3 of chapter 62 of the laws of 2003,  is  amended  to
    30  read as follows:
    31    b.  Video  lottery  gaming  shall  only  be permitted for no more than

    32  [sixteen] twenty consecutive hours per day and  on  no  day  shall  such
    33  operation be conducted past [2:00] 4:00 a.m.
    34    § 6. Subparagraph (ii) of paragraph 1 of subdivision b of section 1612
    35  of the tax law, as amended by section 1 of part O-1 of chapter 57 of the
    36  laws  of  2009  and  clause  (G)  of subparagraph (ii) of paragraph 1 as
    37  amended by chapter 342 of the laws  of  2009,  is  amended  to  read  as
    38  follows:
    39    (ii) less a vendor's fee the amount of which is to be paid for serving
    40  as a lottery agent to the track operator of a vendor track:
    41    (A)  having fewer than one thousand one hundred video gaming machines,
    42  at a rate of  [thirty-six]  thirty-five  percent  for  the  first  fifty
    43  million  dollars  annually,  [twenty-nine]  twenty-eight percent for the

    44  next hundred million  dollars  annually,  and  [twenty-six]  twenty-five
    45  percent  thereafter  of  the  total  revenue wagered at the vendor track
    46  after payout for prizes pursuant to this chapter;
    47    (B) having one thousand one hundred or more video gaming machines,  at
    48  a  rate  of [thirty-two] thirty-one percent of the total revenue wagered
    49  at the vendor track after payout for prizes pursuant  to  this  chapter,
    50  except  for such facility located in the county of Westchester, in which
    51  case the rate shall be [thirty-four percent of the total revenue wagered
        S. 6610--C                         12                         A. 9710--D

     1  at the vendor track after payout for prizes pursuant  to  this  chapter,

     2  for  a period of twenty-four months effective beginning April first, two
     3  thousand eight; provided, however, that in the  event  that  the  vendor
     4  track located in Westchester county completes a successful restructuring
     5  prior  to  March  thirty-first, two thousand ten, the vendor fee will be
     6  reduced to thirty-two percent ninety days following  the  completion  of
     7  the successful restructuring. A successful restructuring is defined as a
     8  restructuring  of  the  existing  debt  obligations of such vendor track
     9  located in Westchester county that meets the following two conditions:
    10    (i) it requires no more than  twenty  million  dollars  of  additional
    11  equity invested in such track; and

    12    (ii) results in average net interest costs of less than nine percent.
    13    Notwithstanding  the  foregoing,  the  vendor  fee  at such track will
    14  become thirty-one] thirty percent [effective April first,  two  thousand
    15  ten  and remain at that level for a period equal to two times the period
    16  of time (measured in days) that the vendor fee was  thirty-four  percent
    17  or] until March thirty-first, two thousand twelve[, whichever is later].
    18    Notwithstanding  the  foregoing, not later than April first, two thou-
    19  sand twelve, the vendor fee shall become [thirty-two] thirty-one percent
    20  and remain at that level thereafter; and except for Aqueduct  racetrack,
    21  in  which case the vendor fee shall be thirty-eight percent of the total

    22  revenue wagered at the vendor track after payout for prizes pursuant  to
    23  this chapter;
    24    (C) notwithstanding clauses (A) and (B) of this subparagraph, when the
    25  vendor  track  is  located in an area with a population of less than one
    26  million within the forty mile radius around such track,  at  a  rate  of
    27  [forty]  thirty-nine percent for the first fifty million dollars annual-
    28  ly, [twenty-nine] twenty-eight percent  for  the  next  hundred  million
    29  dollars annually, and [twenty-six] twenty-five percent thereafter of the
    30  total revenue wagered at the vendor track after payout for prizes pursu-
    31  ant to this chapter;
    32    (D)  notwithstanding  clauses  (A),  (B) and (C) of this subparagraph,
    33  when the vendor track is located within fifteen miles of a Native Ameri-

    34  can class III gaming facility at a rate of [forty-two] forty-one percent
    35  of the total revenue wagered at the vendor track after payout for prizes
    36  pursuant to this chapter;
    37    (E) notwithstanding clauses (A), (B), (C) and  (D)  of  this  subpara-
    38  graph,  when a Native American class III gaming facility is established,
    39  after the effective date of this subparagraph, within fifteen  miles  of
    40  the  vendor  track,  at  a  rate of [forty-two] forty-one percent of the
    41  total revenue wagered after payout for prizes pursuant to this chapter;
    42    (E-1) for purposes of this subdivision, the term  "class  III  gaming"
    43  shall have the meaning defined in 25 U.S.C. § 2703(8).
    44    (F) notwithstanding clauses (A), (B), (C), (D) and (E) of this subpar-
    45  agraph,  when  a  vendor track, is located in Sullivan county and within

    46  sixty miles from any gaming facility in a contiguous state  such  vendor
    47  fee  shall, for a period of five years commencing April first, two thou-
    48  sand eight, be at a rate of [forty-two] forty-one percent of  the  total
    49  revenue  wagered at the vendor track after payout for prizes pursuant to
    50  this chapter, after which time such rate shall be as for all  tracks  in
    51  clause (C) of this subparagraph.
    52    (G)  notwithstanding  [any  other  provisions of this section] clauses
    53  (A), (B), (C), (D), (E) and (F) of this subparagraph, when no more  than
    54  one  vendor  track located in the town of Thompson in Sullivan county at
    55  the site of the former Concord  Resort  at  which  a  qualified  capital
    56  investment  has  been  made  and  no  fewer than one thousand full-time,

        S. 6610--C                         13                         A. 9710--D
 
     1  permanent employees have been newly hired, is located in Sullivan county
     2  and is within sixty miles from  any  gaming  facility  in  a  contiguous
     3  state, then for a period of forty years [the division shall pay into the
     4  state  treasury,  to  the  credit  of  the state lottery fund created by
     5  section ninety-two-c of the state finance law] the  vendor's  fee  shall
     6  equal  the  total  revenue  wagered  at the vendor track after payout of
     7  prizes pursuant to this subdivision reduced by the greater of (i)  twen-
     8  ty-five  percent  of  total  revenue  after payout for prizes for "video
     9  lottery games" or (ii) for the first eight years  of  operation  thirty-
    10  eight million dollars, and beginning in the ninth year of operation such

    11  amount  shall  increase  annually  by  the lesser of the increase in the
    12  consumer price index or two percent, plus [the division shall retain  an
    13  amount  equal  to  all  actual  expenses related to operations, adminis-
    14  tration and procurement of the video lottery terminal  operation  at  no
    15  more  than  one vendor track located in the town of Thompson in Sullivan
    16  county at the site of the former Concord Resort, provided, however, such
    17  amount retained by the division shall not exceed] seven percent of total
    18  revenue after payout of prizes. In addition, in the event the  [division
    19  makes  a  payment] vendor fee is calculated pursuant to subclause (i) of
    20  this clause, the [division shall pay to the credit of the state  lottery

    21  fund  created by section ninety-two-c of the state finance law] vendor's
    22  fee shall be further reduced by 11.11 percent of  the  amount  by  which
    23  total  revenue  after  payout  for  prizes  exceeds  two hundred fifteen
    24  million dollars, but in no event shall such [payment]  reduction  exceed
    25  five million dollars.
    26    [The  balance shall be paid as a vendor's fee to the track operator of
    27  no more than one vendor track located in the town of Thompson in  Sulli-
    28  van  county  at  the  site of the former Concord Resort for serving as a
    29  lottery agent under this chapter.]
    30    Provided, however, that in the case of no more than one  vendor  track
    31  located  in  the  town of Thompson in Sullivan county at the site of the

    32  former Concord Resort with a qualified capital investment, and one thou-
    33  sand full-time, permanent employees [as  of  July  first,  two  thousand
    34  eleven]  if  at  any time after three years of opening operations of the
    35  licensed video gaming facility or  licensed  vendor  track,  the  vendor
    36  track  experiences  an  employment  shortfall, then the recapture amount
    37  shall apply, for only such period as the shortfall exists.
    38    For the purposes of this section "qualified capital investment"  shall
    39  mean  an  investment  of  a  minimum  of  six hundred million dollars as
    40  reflected by audited financial statements of which not less  than  three
    41  hundred  million  dollars  shall be comprised of equity and/or mezzanine
    42  financing as an initial investment in a county where twelve  percent  of
    43  the  population  is  below  the federal poverty level as measured by the

    44  most recent Bureau of Census Statistics prior to the  qualified  capital
    45  investment  commencing  that results in the construction, development or
    46  improvement  of  at  least  one  eighteen  hole  golf  course,  and  the
    47  construction and issuance of certificates of occupancy for hotels, lodg-
    48  ing,  spas, dining, retail and entertainment venues, parking garages and
    49  other capital improvements at or adjacent to the licensed  video  gaming
    50  facility  or  licensed vendor track which promote or encourage increased
    51  attendance at such facilities.
    52    For the purposes of  this  section,  "full-time,  permanent  employee"
    53  shall  mean  an  employee  who  has worked at the video gaming facility,
    54  vendor track or related and adjacent facilities for a minimum  of  thir-
    55  ty-five  hours per week for not less than four consecutive weeks and who

    56  is entitled to receive the usual and customary fringe benefits  extended
        S. 6610--C                         14                         A. 9710--D
 
     1  to  other  employees  with  comparable rank and duties; or two part-time
     2  employees who have worked at the video gaming facility, vendor track  or
     3  related  and  adjacent  facilities for a combined minimum of thirty-five
     4  hours  per  week  for  not  less than four consecutive weeks and who are
     5  entitled to receive the usual and customary fringe benefits extended  to
     6  other employees with comparable rank and duties.
     7    For the purpose of this section "employment goal" shall mean one thou-
     8  sand  five  hundred  full-time  permanent employees after three years of
     9  opening operations of the licensed video  gaming  facility  or  licensed
    10  vendor track.

    11    For  the  purpose  of this section "employment shortfall" shall mean a
    12  level of employment that falls below the employment goal,  as  certified
    13  annually  by  vendor's  certified  accountants  and  the chairman of the
    14  empire state development corporation.
    15    For the purposes of this section "recapture  amount"  shall  mean  the
    16  difference between the amount of the vendor's fee paid to a vendor track
    17  with  a qualified capital investment, and the vendor fee otherwise paya-
    18  ble to a vendor track pursuant to clause (F) of this subparagraph,  that
    19  is reimbursable by the vendor track to the division for payment into the
    20  state  treasury,  to  the  credit  of  the state lottery fund created by
    21  section ninety-two-c of the state finance  law,  due  to  an  employment
    22  shortfall  pursuant to the following schedule only for the period of the
    23  employment shortfall:

    24    (i) one hundred percent of the  recapture  amount  if  the  employment
    25  shortfall  is  greater  than  sixty-six  and  two-thirds  percent of the
    26  employment goal;
    27    (ii) seventy-five percent of the recapture amount  if  the  employment
    28  shortfall  is  greater  than  thirty-three  and one-third percent of the
    29  employment goal;
    30    (iii) forty-nine and one-half percent of the recapture amount  if  the
    31  employment  shortfall  is  greater than thirty percent of the employment
    32  goal;
    33    (iv) twenty-two percent of the  recapture  amount  if  the  employment
    34  shortfall is greater than twenty percent of the employment goal;
    35    (v) eleven percent of the recapture amount if the employment shortfall
    36  is greater than ten percent of the employment goal.
    37    (H)  notwithstanding  clauses  (A), (B), (C), (D), (E), (F) and (G) of

    38  this subparagraph, the track operator of a vendor track shall be  eligi-
    39  ble  for  a  vendor's  capital  award of up to four percent of the total
    40  revenue wagered at the vendor track after payout for prizes pursuant  to
    41  this  chapter,  which  shall  be  used  exclusively  for capital project
    42  investments to improve the facilities of the vendor track which  promote
    43  or  encourage  increased attendance at the video lottery gaming facility
    44  including, but not limited to hotels, other lodging  facilities,  enter-
    45  tainment   facilities,  retail  facilities,  dining  facilities,  events
    46  arenas, parking garages and other  improvements  that  enhance  facility
    47  amenities;  provided  that such capital investments shall be approved by
    48  the division, in consultation with the state racing and wagering  board,
    49  and  that  such vendor track demonstrates that such capital expenditures

    50  will increase patronage at such vendor track's facilities  and  increase
    51  the amount of revenue generated to support state education programs. The
    52  annual  amount of such vendor's capital awards that a vendor track shall
    53  be eligible to receive shall be limited  to  two  million  five  hundred
    54  thousand  dollars,  except for Aqueduct racetrack, for which there shall
    55  be no vendor's capital awards. Except for tracks having  less  than  one
    56  thousand one hundred video gaming machines, each track operator shall be
        S. 6610--C                         15                         A. 9710--D
 
     1  required  to  co-invest  an  amount  of capital expenditure equal to its
     2  cumulative vendor's capital award. For all tracks, except  for  Aqueduct
     3  racetrack,  the  amount  of  any vendor's capital award that is not used

     4  during  any  one  year  period may be carried over into subsequent years
     5  ending before April first, two thousand thirteen. Any  amount  attribut-
     6  able  to  a capital expenditure approved prior to April first, two thou-
     7  sand thirteen and completed before April  first,  two  thousand  fifteen
     8  shall  be  eligible  to receive the vendor's capital award. In the event
     9  that a vendor track's capital expenditures,  approved  by  the  division
    10  prior to April first, two thousand thirteen and completed prior to April
    11  first,  two thousand fifteen, exceed the vendor track's cumulative capi-
    12  tal award during the five year period ending April first,  two  thousand
    13  thirteen,  the  vendor shall continue to receive the capital award after
    14  April first, two thousand thirteen until such approved capital  expendi-
    15  tures  are  paid  to the vendor track subject to any required co-invest-

    16  ment. In no event shall any vendor track  that  receives  a  vendor  fee
    17  pursuant  to  clause  (F)  or (G) of this subparagraph be eligible for a
    18  vendor's capital award under this section.  Any  operator  of  a  vendor
    19  track  which  has  received a vendor's capital award, choosing to divest
    20  the capital improvement toward which the award was applied, prior to the
    21  full depreciation of the capital improvement in accordance with general-
    22  ly accepted accounting principles, shall reimburse the state in  amounts
    23  equal  to  the  total of any such awards. Any capital award not approved
    24  for a capital expenditure at a video lottery gaming  facility  by  April
    25  first,  two  thousand thirteen shall be deposited into the state lottery
    26  fund for education aid; and
    27    § 7. This act shall take effect immediately.
 
    28                                   PART L
 
    29    Intentionally omitted.
 

    30                                   PART M
 
    31    Intentionally omitted.
 
    32                                   PART N
 
    33    Section 1. Clause (I) of subparagraph (i) of paragraph 8  of  subdivi-
    34  sion  (b)  of section 1101 of the tax law, as added by section 1 of part
    35  P-1 of chapter 57 of the laws of 2009, is amended to read as follows:
    36    (I) A seller of tangible personal property or  services,  the  use  of
    37  which  is  taxed by this article if either (I) an affiliated person that
    38  is a vendor as otherwise defined in this paragraph  uses  in  the  state
    39  trademarks, service marks, or trade names that are the same as those the
    40  seller  uses;  or (II) an affiliated person engages in activities in the
    41  state that inure to the benefit of the seller,  in  its  development  or
    42  maintenance  of  a market for its goods or services in the state, to the

    43  extent that those activities of the affiliate are sufficient to  satisfy
    44  the nexus requirement of the United States constitution. For purposes of
    45  this  clause,  "affiliated person" has the same meaning as in clause (B)
    46  of subparagraph (v) of this paragraph. Nothing in this clause  shall  be
    47  construed  to narrow the scope of any other provision in this paragraph.
    48  Notwithstanding the provisions of this clause,  the  activities  in  the
    49  state  of an affiliated person in providing accounting or legal services
    50  or advice to a seller, or in  directing  the  activities  of  a  seller,
        S. 6610--C                         16                         A. 9710--D
 
     1  including,  but  not  limited  to,  making decisions about (a) strategic

     2  planning, (b) marketing, (c) inventory, (d) staffing, (e)  distribution,
     3  or  (f)  cash  management, will not result in making the seller a vendor
     4  under this paragraph.
     5    §  2.  This  act  shall take effect immediately and shall be deemed to
     6  have been in full force and effect on and after June 1, 2009  and  shall
     7  apply  to  sales made or uses occurring on or after such date in accord-
     8  ance with the applicable transitional provisions of  sections  1106  and
     9  1217 of the tax law.
 
    10                                   PART O
 
    11    Intentionally omitted.
 
    12                                   PART P
 
    13    Section  1.  Subdivision 4 of section 22 of the public housing law, as
    14  amended by section 1 of part J-1 of chapter 57 of the laws of  2009,  is
    15  amended to read as follows:

    16    4.  Statewide  limitation. The aggregate dollar amount of credit which
    17  the commissioner may allocate to  eligible  low-income  buildings  under
    18  this  article  shall  be [twenty-four] twenty-eight million dollars. The
    19  limitation provided by this subdivision applies only  to  allocation  of
    20  the  aggregate dollar amount of credit by the commissioner, and does not
    21  apply to allowance to a taxpayer of the credit with respect to an eligi-
    22  ble low-income building for each year of the credit period.
    23    § 2. This act shall take effect immediately.
 
    24                                   PART Q
 
    25    Section 1. Subdivision (d) of section 7 of part P of chapter 60 of the
    26  laws of 2004 amending the tax law relating  to  the  empire  state  film
    27  production  credit,  as  added by section 2 of part Y-1 of chapter 57 of
    28  the laws of 2009, is amended to read as follows:

    29    (d) Additional pool 1 - The aggregate amount of tax credits allowed in
    30  subdivision (a) of this section shall be increased by an additional $350
    31  million in 2009. This additional amount shall be allocated by the gover-
    32  nor's office for motion picture and television development among taxpay-
    33  ers in accordance with subdivision (a) of this section.
    34    § 2. Section 7 of part P of chapter 60 of the laws  of  2004  amending
    35  the  tax  law  relating  to  the  empire state film production credit is
    36  amended by adding a new subdivision (e) to read as follows:
    37    (e) Additional pool 2 - The aggregate amount of tax credits allowed in
    38  subdivision (a) of this section shall be increased by an additional $420
    39  million in 2010, $420 million  in  2011,  $420  million  in  2012,  $420

    40  million  in  2013  and  $420  million in 2014 provided however, up to $7
    41  million of the annual allocation shall be available for the empire state
    42  film post production credit pursuant to section 31 of the tax law.  This
    43  additional amount shall be allocated by the governor's office for motion
    44  picture and television development among taxpayers  in  accordance  with
    45  subdivision  (a)  of  this  section.  The  governor's  office for motion
    46  picture and television development must notify taxpayers of their  allo-
    47  cation  year  and  include the allocation year on the certificate of tax
    48  credit. Taxpayers eligible to claim a credit must report the  allocation
    49  year  directly on their empire state film production credit tax form for

    50  each year a credit is claimed and include a copy of the certificate with
        S. 6610--C                         17                         A. 9710--D
 
     1  their tax return.  In the case of a qualified film that  receives  funds
     2  from  additional pool 2, no empire state film production credit shall be
     3  claimed before the later of (1) the taxable year the production  of  the
     4  qualified  film is complete, or (2) the taxable year immediately follow-
     5  ing the allocation year for which the film has been allocated credit  by
     6  the governor's office for motion picture and television development.
     7    §  3.  Paragraph 1 of subdivision (a) of section 24 of the tax law, as
     8  added by section 1 of part P of chapter 60  of  the  laws  of  2004,  is
     9  amended to read as follows:

    10    (1)  Allowance  of  credit.  A  taxpayer  which  is  a  qualified film
    11  production company, or a qualified independent film production  company,
    12  or which is a sole proprietor of or a member of a partnership which is a
    13  qualified  film  production  company  or  a  qualified  independent film
    14  production company, and which is subject to tax under articles nine-A or
    15  twenty-two of this chapter, shall be allowed a credit against such  tax,
    16  pursuant  to  the  provisions  referenced  in  subdivision  (c)  of this
    17  section, to be computed as hereinafter provided.
    18    § 4. Paragraph 2 of subdivision (a) of section 24 of the tax  law,  as
    19  amended  by  section 1 of part Y-1 of chapter 57 of the laws of 2009, is
    20  amended to read as follows:
    21    (2) The amount of the credit shall be the product (or pro  rata  share

    22  of  the  product,  in  the  case of a member of a partnership) of thirty
    23  percent and the qualified production  costs  paid  or  incurred  in  the
    24  production  of  a  qualified  film,  provided  that:  (i)  the qualified
    25  production costs (excluding post  production  costs)  paid  or  incurred
    26  which  are  attributable to the use of tangible property or the perform-
    27  ance of  services  at  a  qualified  film  production  facility  in  the
    28  production  of  such qualified film equal or exceed seventy-five percent
    29  of the production  costs  (excluding  post  production  costs)  paid  or
    30  incurred  which  are attributable to the use of tangible property or the
    31  performance of services at any film production facility within and with-
    32  out the state in the production of such qualified film, and (ii)  except

    33  with  respect  to  a  qualified  independent  film production company or
    34  pilot, at least ten percent of the total principal photography  shooting
    35  days  spent  in the production of such qualified film must be spent at a
    36  qualified  film  production  facility.    However,  if   the   qualified
    37  production  costs  (excluding post production costs) which are attribut-
    38  able to the use of tangible property or the performance of services at a
    39  qualified film production facility in the production of  such  qualified
    40  film  is less than three million dollars, then the portion of the quali-
    41  fied production costs attributable to the use of  tangible  property  or
    42  the  performance  of  services  in the production of such qualified film
    43  outside of a qualified film production facility shall be allowed only if

    44  the shooting days spent in New York outside of a film production facili-
    45  ty in the production of such qualified film equal or exceed seventy-five
    46  percent of the total shooting days spent within  and  without  New  York
    47  outside  of  a film production facility in the production of such quali-
    48  fied film. The credit shall be allowed for the taxable year in which the
    49  production of such qualified film is completed.  However, in the case of
    50  a qualified film that receives funds from additional pool 2,  no  credit
    51  shall be claimed before the later of (1) the taxable year the production
    52  of  the  qualified film is complete, or (2) the taxable year immediately
    53  following the allocation year for which  the  film  has  been  allocated
    54  credit by the governor's office for motion picture and television devel-

    55  opment.  If the amount of the credit is at least one million dollars but
    56  less than five million dollars, the credit shall be claimed over  a  two
        S. 6610--C                         18                         A. 9710--D
 
     1  year period beginning in the first taxable year in which the [production
     2  of  the  qualified  film  is completed] credit may be claimed and in the
     3  next succeeding taxable year, with one-half  of  the  amount  of  credit
     4  allowed  being  claimed  in each year. If the amount of the credit is at
     5  least five million dollars, the credit shall be  claimed  over  a  three
     6  year period beginning in the first taxable year in which the [production
     7  of  the  qualified  film  is completed] credit may be claimed and in the

     8  next two succeeding taxable years, with one-third of the amount  of  the
     9  credit allowed being claimed in each year.
    10    § 5. Subdivision (a) of section 24 of the tax law is amended by adding
    11  a new paragraph 4 to read as follows:
    12    (4)  Notwithstanding  the  foregoing provisions of this subdivision, a
    13  qualified  film  production  company  or  qualified   independent   film
    14  production  company, that has applied for credit under the provisions of
    15  this section, agrees as a condition for the granting of the credit:  (i)
    16  to include in each qualified film distributed by DVD, or other media for
    17  the  secondary  market,  a  New  York  promotional video approved by the
    18  governor's office of motion picture and  television  development  or  to

    19  include  in  the  end  credits  of  each qualified film "Filmed With the
    20  Support of the New York State Governor's Office of  Motion  Picture  and
    21  Television  Development" and a logo provided by the governor's office of
    22  motion picture and television development, and (ii) to certify  that  it
    23  will  purchase taxable tangible property and services, defined as quali-
    24  fied production costs pursuant to paragraph one of  subdivision  (b)  of
    25  this  section, only from companies registered to collect and remit state
    26  and local sales and use taxes  pursuant  to  articles  twenty-eight  and
    27  twenty-nine of this chapter.
    28    §  6.  Paragraph 1 of subdivision (b) of section 24 of the tax law, as
    29  added by section 1 of part P of chapter 60  of  the  laws  of  2004,  is

    30  amended to read as follows:
    31    (1)  "Qualified  production  costs" means production costs only to the
    32  extent such costs are attributable to the use of  tangible  property  or
    33  the  performance of services within the state directly and predominantly
    34  in the production (including pre-production and post  production)  of  a
    35  qualified film, provided, however, that qualified production costs shall
    36  not  include  post  production  costs  unless  the  portion  of the post
    37  production costs paid or incurred that is attributable  to  the  use  of
    38  tangible  property  or  the  performance  of services in New York in the
    39  production of such qualified film equals or exceeds seventy-five percent
    40  of the total post production costs spent within and without New York  in
    41  the production of such qualified film.

    42    §  7.  Paragraph 4 of subdivision (b) of section 24 of the tax law, as
    43  added by section 1 of part P of chapter 60  of  the  laws  of  2004,  is
    44  amended to read as follows:
    45    (4) "Film production facility" shall mean a building and/or complex of
    46  buildings  and  their improvements and associated back-lot facilities in
    47  which films are or are intended  to  be  regularly  produced  and  which
    48  contain  at  least  one  sound  stage, provided, however, that an armory
    49  owned by the state or city of New York located in the city of  New  York
    50  shall  not  be  considered  to be a "film production facility" unless it
    51  meets the criteria contained in paragraph five of  this  subdivision  or
    52  unless  such facility is used by a qualified independent film production
    53  company.

    54    § 8. Paragraph 5 of subdivision (b) of section 24 of the tax  law,  as
    55  added  by  section  1  of  part  P of chapter 60 of the laws of 2004, is
    56  amended to read as follows:
        S. 6610--C                         19                         A. 9710--D
 
     1    (5) "Qualified film production facility" shall mean a film  production
     2  facility  in the state, which contains at least one sound stage having a
     3  minimum of seven thousand square feet of  contiguous  production  space,
     4  provided,  however,  that  except  with  respect  to  a  qualified  film
     5  production   facility   being  used  by  a  qualified  independent  film
     6  production company: (i) a film production facility in the  city  of  New
     7  York  must  contain  at  least one sound stage having a minimum of seven

     8  thousand square feet of contiguous production space that is sound  proof
     9  with a Noise Criteria ("NC") of 30 or better, has sufficient heating and
    10  air  conditioning  for shooting without the need for supplemental units,
    11  incorporates a permanent grid and sufficient built-in  electric  service
    12  for  shooting without the need for generators, and is column-free with a
    13  clear height of at least sixteen feet under the permanent grid; and (ii)
    14  an armory owned by the state or city of New York located in the city  of
    15  New  York that does not satisfy the criteria of subparagraph (i) of this
    16  paragraph shall be treated as a qualified film production facility  upon
    17  certification  by the governor's office of motion picture and television

    18  development of a petition submitted to that office by a  qualified  film
    19  production company establishing that no qualified film production facil-
    20  ity  is available in the city of New York that has stage space available
    21  for shooting such company's film. Such petition shall  be  submitted  no
    22  later  than  ninety days prior to the start of principal photography for
    23  the qualified film and the governor's office of motion picture and tele-
    24  vision development shall have ten days to certify or  reject  the  peti-
    25  tion.  A stage will be deemed unavailable if consideration has been paid
    26  for its use or such stage is currently under an agreement with an option
    27  for use and, in either circumstance, such period  of  use  includes  the

    28  petitioner's estimated start date of principal photography.
    29    § 9. Subdivision (b) of section 24 of the tax law is amended by adding
    30  a new paragraph 7 to read as follows:
    31    (7)  "Qualified independent film production company" is a corporation,
    32  partnership, limited partnership, or other entity or individual, that or
    33  who (i) is principally engaged in the production  of  a  qualified  film
    34  with  a maximum budget of fifteen million dollars, and (ii) controls the
    35  qualified film during production, and (iii) either  is  not  a  publicly
    36  traded  entity, or no more than five percent of the beneficial ownership
    37  of which is owned, directly or indirectly, by a publicly traded entity.
    38    § 10. Section 24 of the tax law is amended by adding a new subdivision
    39  (d) to read as follows:

    40    (d) Notwithstanding any provision of this chapter, employees and offi-
    41  cers of the governor's office of motion picture and television  develop-
    42  ment  and  the department shall be allowed and are directed to share and
    43  exchange information regarding the  credits  applied  for,  allowed,  or
    44  claimed  pursuant  to  this  section  and taxpayers who are applying for
    45  credits or who are claiming credits, including information contained  in
    46  or  derived  from  credit  claim  forms  submitted to the department and
    47  applications for credit submitted to the  governor's  office  of  motion
    48  picture and television development.
    49    §  11.  Section 9 of part P of chapter 60 of the laws of 2004 amending
    50  the tax law relating to the empire  state  film  production  credit,  as

    51  amended  by section 5 of part WW-1 of chapter 57 of the laws of 2008, is
    52  amended to read as follows:
    53    § 9. This act shall take effect immediately and shall apply to taxable
    54  years beginning on or after January 1, 2004, with respect to  "qualified
    55  production  costs"  paid  or  incurred  on or after such effective date,
    56  providing final applications are approved  on  or  after  the  effective
        S. 6610--C                         20                         A. 9710--D
 
     1  date,  regardless  of  whether  the initial application relating to such
     2  qualified film was first submitted before such date,  [provided  further
     3  that  this  act  shall  expire  and  be deemed repealed January 1, 2014,
     4  provided  further  that  the expiration and repeal of this act shall not

     5  affect the carry over of any credit allowed pursuant to  this  act  and,
     6  subsequent  to  the  expiration  and repeal of this act, such carry over
     7  credits shall be allowed as provided by and pursuant to  the  provisions
     8  of  this act, and] provided further that the IMB credit for energy taxes
     9  under subsection (t-l) of section  606  of  the  tax  law  contained  in
    10  section  three  of this act shall expire on the same date as provided in
    11  subdivision (a) of section 49 of part Y of chapter 63  of  the  laws  of
    12  2000.
    13    §  12.  The  tax  law is amended by adding a new section 31 to read as
    14  follows:
    15    § 31. Empire state film post production credit. (a) Allowance of cred-
    16  it. (1) A taxpayer which is a qualified  film  production  company,  and

    17  which is subject to tax under article nine-A or twenty-two of this chap-
    18  ter,  unless  eligible  for the credit under section twenty-four of this
    19  article with respect to the qualified film, shall be  allowed  a  credit
    20  against  such  tax, pursuant to the provisions referenced in subdivision
    21  (c) of this section to be computed as provided in this subdivision.
    22    (2) The amount of the credit shall be the product (or pro  rata  share
    23  of the product, in the case of a member of a partnership) of ten percent
    24  and  the  qualified  post  production  costs paid in the production of a
    25  qualified film at a qualified post production facility.
    26    (3) A taxpayer shall not be eligible for  the  credit  established  by

    27  this  section  unless the qualified post production costs at a qualified
    28  post production facility meet or  exceed  seventy-five  percent  of  the
    29  total  post  production costs paid or incurred in the post production of
    30  the qualified film at any post production facility. The credit shall  be
    31  allowed  for  the taxable year in which the production of such qualified
    32  film is completed.
    33    (4) No qualified post production costs used by a  taxpayer  either  as
    34  the  basis  for  the  allowance  of  the  credit provided for under this
    35  section or used in the calculation of the credit provided for under this
    36  section shall be used by such taxpayer to claim any other credit allowed
    37  pursuant to this chapter.

    38    (b) Definitions. As used in this section  the  following  terms  shall
    39  have the following meanings:
    40    (1)  "Qualified  film  production  company" and "qualified film" shall
    41  have the same meaning as are ascribed to such terms by  section  twenty-
    42  four of this article.
    43    (2) "Post production costs" means production of original content for a
    44  qualified  film  employing  traditional, emerging and new workflow tech-
    45  niques used in post-production for picture, sound and  music  editorial,
    46  rerecording  and  mixing, visual effects, graphic design, original scor-
    47  ing, animation, and musical composition; but shall not include the edit-
    48  ing of previously produced content for a qualified film.

    49    (3) "Post production facility" means  a  building  and/or  complex  of
    50  buildings  and  their improvements on which film are intended to be post
    51  produced.
    52    (4) "Qualified post  production  facility"  means  a  post  production
    53  facility located in the state, engaged in finishing a qualified film.
    54    (c)  Notwithstanding  any  other provision of law to the contrary, the
    55  aggregate amount of tax credits available under this section  shall  not
    56  exceed  the amounts allowed pursuant to subdivision (e) of section seven
        S. 6610--C                         21                         A. 9710--D
 
     1  of part P of chapter sixty of the laws of two thousand four and shall be

     2  allocated in the same manner as  provided  for  in  subdivision  (a)  of
     3  section  seven  of  part  P of chapter sixty of the laws of two thousand
     4  four.
     5    (d)  Cross-references.  For  application of the credit provided for in
     6  this section, see the following provisions of this chapter:
     7    (1) article 9-A: section 210: subdivision 41.
     8    (2) article 22: section 606: subsection (qq).
     9    § 13. Section 210 of the tax law is amended by adding a  new  subdivi-
    10  sion 41 to read as follows:
    11    41. Empire state film post production credit. (a) Allowance of credit.
    12  A  taxpayer who is eligible pursuant to section thirty-one of this chap-
    13  ter shall be allowed a credit to be computed as provided in such section

    14  thirty-one against the tax imposed by this article.
    15    (b) Application of credit. The credit allowed under  this  subdivision
    16  for  any taxable year shall not reduce the tax due for such year to less
    17  than the amount prescribed in paragraph (d) of subdivision one  of  this
    18  section.  Provided,  however, that if the amount of the credit allowable
    19  under this subdivision for any taxable year  reduces  the  tax  to  such
    20  amount,  fifty  percent of the excess shall be treated as an overpayment
    21  of tax to be credited or refunded in accordance with the  provisions  of
    22  section  one thousand eighty-six of this chapter. Provided, however, the
    23  provisions of subsection (c) of section  one  thousand  eighty-eight  of

    24  this  chapter  notwithstanding,  no  interest shall be paid thereon. The
    25  balance of such credit not credited or refunded in such taxable year may
    26  be a carry over to the immediately succeeding taxable year  and  may  be
    27  deducted  from  the taxpayer's tax for such year. The excess, if any, of
    28  the amount of the credit over the tax for such succeeding year shall  be
    29  treated  as  an overpayment of tax to be credited or refunded in accord-
    30  ance with the provisions of section  one  thousand  eighty-six  of  this
    31  chapter.  Provided, however, the provisions of subsection (c) of section
    32  one thousand eighty-eight of this chapter notwithstanding,  no  interest
    33  shall be paid thereon.
    34    § 14. Subparagraph (B) of paragraph 1 of subsection (i) of section 606

    35  of  the  tax  law  is  amended  by adding a new clause (xxxi) to read as
    36  follows:
    37    (xxxi) Empire state film         Amount of credit for
    38         post production             qualified post production
    39         credit under                costs of a qualified film
    40         subsection (qq)             under subdivision forty-one of
    41                                     section two hundred ten
    42    § 15. Section 606 of the tax law is amended by adding a new subsection
    43  (qq) to read as follows:
    44    (qq) Empire state film post production credit. (1) Allowance of  cred-
    45  it.  A  taxpayer  who is eligible pursuant to section thirty-one of this
    46  chapter shall be allowed a credit to be computed  as  provided  in  such

    47  section thirty-one against the tax imposed by this article.
    48    (2) Application of credit. If the amount of the credit allowable under
    49  this subsection for any taxable year exceeds the taxpayer's tax for such
    50  year,  fifty percent of the excess shall be treated as an overpayment of
    51  tax to be credited or refunded in  accordance  with  the  provisions  of
    52  section  one thousand eighty-six of this chapter. Provided, however, the
    53  provisions of subsection (c) of section  one  thousand  eighty-eight  of
    54  this  chapter  notwithstanding,  no  interest shall be paid thereon. The
    55  balance of such credit not credited or refunded in such taxable year may
    56  be carried over to the immediately succeeding taxable year  and  may  be

        S. 6610--C                         22                         A. 9710--D
 
     1  deducted  from  the taxpayer's tax for such year. The excess, if any, of
     2  the amount of the credit over the tax for such succeeding year shall  be
     3  treated  as  an overpayment of tax to be credited or refunded in accord-
     4  ance  with  the  provisions  of  section one thousand eighty-six of this
     5  chapter. Provided, however, the provisions of subsection (c) of  section
     6  one  thousand  eighty-eight of this chapter notwithstanding, no interest
     7  shall be paid thereon.
     8    § 16. This act shall take effect immediately; provided  that  sections
     9  one  through  nine  of  this  act shall apply to applications for credit
    10  awarded under additional pool 2 authorized by section two of this act.
 
    11                                   PART R
 

    12    Section 1. It is the intent of the legislature to clarify and  confirm
    13  that  the  amendments made to the general municipal law by chapter 57 of
    14  the laws of 2009 that require the revocation of certification of certain
    15  business entities previously certified under the  empire  zones  program
    16  are  intended  to be effective for the taxable year in which the revoca-
    17  tion of certification occurs  and  for  all  subsequent  taxable  years,
    18  notwithstanding that any such business entity may subsequently apply for
    19  certification  pursuant  to  part  11  of  title 5 of the New York state
    20  codes, rules and regulations, and that such revocations of certification
    21  that occur in 2009 are deemed to be  in  effect  for  the  taxable  year
    22  commencing on or after January 1, 2008 and before January 1, 2009.
    23    §  2.  Subdivision (a) of section 959 of the general municipal law, as

    24  amended by section 3 of part S-1 of chapter 57 of the laws of  2009,  is
    25  amended to read as follows:
    26    (a)  After  consultation  with the director of the budget, the commis-
    27  sioner of labor, and the commissioner of taxation and  finance,  promul-
    28  gate  regulations, which, notwithstanding any provisions to the contrary
    29  in the state administrative procedure act, may be adopted on an emergen-
    30  cy basis, governing (i) criteria of eligibility for empire  zone  desig-
    31  nation,  provided, however, that such criteria be approved by the direc-
    32  tor of the budget; (ii) the application process; (iii) the certification
    33  by the commissioner as to the eligibility of  business  enterprises  for
    34  benefits  referred to in section nine hundred sixty-six of this article,
    35  which shall be governed by criteria including, but not limited  to:  (1)

    36  whether  the  business enterprise, if certified, is reasonably likely to
    37  create new employment or prevent a loss of employment in the  zone,  (2)
    38  whether  such  new  employment opportunities will be for individuals who
    39  will perform a substantial part of their employment  activities  in  the
    40  zone,  (3) whether certification will have the undesired effect of caus-
    41  ing individuals to transfer from existing employment with another  busi-
    42  ness  enterprise  to  similar employment with the business enterprise so
    43  certified, and transferring existing employment from one or  more  other
    44  municipalities, towns or villages in the state, or transferring existing
    45  employment  from  one  or more other businesses in the zone, (4) whether
    46  such enterprise is likely to enhance the economic climate of  the  zone,
    47  (5)  whether  the  commissioner  of labor establishes that such business

    48  enterprise, during the three years preceding the submission of an appli-
    49  cation for certification, has engaged in a substantial  violation  or  a
    50  pattern of violations of laws regulating unemployment insurance, workers
    51  compensation,  public  work,  child  labor, employment of minorities and
    52  women, safety and health, or other laws for the protection of workers as
    53  determined by final judgment of a judicial or administrative proceeding;
    54  (6) whether such business meets the requirements  of  the  cost  benefit
        S. 6610--C                         23                         A. 9710--D
 
     1  analysis  as established in paragraph (p) of section nine hundred fifty-
     2  seven of this article, and (7) if the commissioner of labor  establishes
     3  that  the business enterprise has been found in a criminal proceeding to

     4  have  violated, in the previous three years, any of the laws referred to
     5  in subparagraph five of this paragraph or regulations promulgated pursu-
     6  ant to such laws, the conditions of any  permit  issued  thereunder,  or
     7  similar  statute,  regulation,  order  or  permit condition of any other
     8  government agency, foreign or  domestic,  such  business  shall  not  be
     9  certified; provided, however, that a business enterprise that has shift-
    10  ed  its  operations,  or  some portions thereof, from an area within New
    11  York state not designated as an empire zone or zone equivalent  area  to
    12  an  area  so  designated shall not be certified to receive such benefits
    13  except where such shift is entirely within a municipality and  has  been
    14  approved  by  the  local governing body of such municipality or in situ-
    15  ations where it has been  established,  after  a  public  hearing,  that

    16  extraordinary  circumstances  exist  which  warrant  the relocation of a
    17  business, in whole or part, into an empire zone  or  a  zone  equivalent
    18  area from another municipality and the municipality from which the busi-
    19  ness  is  relocating approves of such relocation; or where such shift in
    20  operations is from a business incubator facility operated by  a  munici-
    21  pality  or  by  a public or private not-for-profit entity which provides
    22  space and business support services to newly established firms; and (iv)
    23  the decertification by the commissioner, upon the recommendation of  the
    24  commissioner  of  labor,  so  as to revoke the certification of business
    25  enterprises for benefits referred to in section nine  hundred  sixty-six
    26  of  this  article with respect to an empire zone or zone equivalent area
    27  upon a finding that the business enterprise  has  committed  substantial

    28  violations  of laws for the protection of workers including all federal,
    29  state and local labor laws, rules or regulations; and (v) the  decertif-
    30  ication  by  the commissioner so as to revoke the certification of busi-
    31  ness enterprises for  benefits  referred  to  in  section  nine  hundred
    32  sixty-six  of this article with respect to an empire zone or zone equiv-
    33  alent area upon a finding of any one of the following: (1) the  business
    34  enterprise  made  material misrepresentations of fact on its application
    35  for certification or in any of its business annual reports, or the busi-
    36  ness enterprise failed to disclose facts in its application for  certif-
    37  ication  that  would constitute grounds for not issuing a certification;
    38  (2) the business enterprise has failed to construct,  expand,  rehabili-
    39  tate  or  operate  or invest in its facility substantially in accordance

    40  with the representations contained in its application for certification;
    41  (3) the business enterprise has  failed  to  create  new  employment  or
    42  prevent a loss of employment in the empire zone or zone equivalent area;
    43  (4)  where  applicable,  the business enterprise has failed to submit an
    44  annual report after it has applied for  zone  tax  benefits  or  program
    45  assistance  based  on new hires or investments or failed to submit other
    46  information when due; (5) the business enterprise,  if  first  certified
    47  pursuant  to this article prior to the first day of August, two thousand
    48  two, caused individuals to transfer from existing employment with anoth-
    49  er business enterprise with similar ownership and located  in  New  York
    50  state to similar employment with the certified business enterprise or if
    51  the  enterprise  acquired,  purchased,  leased, or had transferred to it

    52  real property previously owned by  an  entity  with  similar  ownership,
    53  regardless  of  form  of incorporation or organization; (6) the business
    54  enterprise has failed to provide economic returns to the  state  in  the
    55  form  of  total  remuneration to its employees (i.e. wages and benefits)
    56  and investments in its facility greater in value to the tax benefits the
        S. 6610--C                         24                         A. 9710--D
 
     1  business enterprise used and had refunded to it;  or  (7)  the  business
     2  enterprise  has  changed  ownership  or  moved its operations out of the
     3  empire zone; said regulations shall provide that whenever  any  business
     4  enterprise  is  decertified with respect to an empire zone: (A) the date
     5  determined to be the earliest event constituting  grounds  for  revoking

     6  certification  shall  be  the effective date of decertification; (B) its
     7  certified single enterprise, if any, may also be  decertified;  and  (C)
     8  the  commissioner  shall notify the commissioner of taxation and finance
     9  that such decertification has occurred,  and  such  notification  should
    10  include  the effective date of such decertification and the zone or zone
    11  equivalent area to which such decertification applies; with  respect  to
    12  any business enterprise whose certification has been revoked pursuant to
    13  subparagraph  five or six of this paragraph, that revocation (I) will be
    14  effective for a taxable year beginning on or after  January  first,  two
    15  thousand  eight  and  before  January  first,  two thousand nine and for
    16  subsequent taxable years, unless the business enterprise is subsequently

    17  re-certified pursuant to part 11 of title 5 of the New York state codes,
    18  rules and regulations for a business enterprise for which  a  review  is
    19  required  to be conducted pursuant to subdivision (w) of this section in
    20  calendar year two thousand nine, and (II) thereafter will  be  effective
    21  for  the  taxable  year  during  which the commissioner makes his or her
    22  determination (prior to any appeal) to revoke  the  certification  of  a
    23  business enterprise and for subsequent taxable years;
    24    §  3.  Subdivision (w) of section 959 of the general municipal law, as
    25  amended by section 3 of part S-1 of chapter 57 of the laws of  2009,  is
    26  amended to read as follows:
    27    (w)  Conduct  a  review  during calendar year two thousand nine of all

    28  business enterprises  to  determine  whether  the  business  enterprises
    29  should  be  decertified  pursuant to subparagraphs five and six of para-
    30  graph (v) of subdivision (a) of this section and the regulations promul-
    31  gated under this article. After  such  review,  the  commissioner  shall
    32  issue an empire zone retention certificate to each firm that the commis-
    33  sioner  determines is not subject to decertification under subparagraphs
    34  five and six of paragraph (v) of subdivision (a) of  this  section.  The
    35  decertification  referred  to  in  subparagraph  six of paragraph (v) of
    36  subdivision (a) of this section shall be based upon an analysis of  data
    37  contained  in  at least three business annual reports filed by the busi-
    38  ness enterprise. If any business enterprise fails the analysis described
    39  in the immediately preceding sentence, or if the commissioner makes  the

    40  finding  described  in subparagraph five of paragraph (v) of subdivision
    41  (a) of this section, the commissioner shall revoke the certification  of
    42  such business enterprise pursuant to paragraph [(iv)] (v) of subdivision
    43  (a)  of  this  section  and  as specified herein; provided, however, the
    44  commissioner may consider, after consultation with the director  of  the
    45  budget,  and  in  his or her sole discretion, other economic, social and
    46  environmental factors when  evaluating  the  costs  and  benefits  of  a
    47  project  to  the  state and whether continued certification is warranted
    48  based on such factors. The commissioner shall provide written  notifica-
    49  tion  to  such business enterprise of his or her determination to revoke
    50  the certification, including the  reasons  therefor.  Such  notification
    51  shall state that the business enterprise may appeal the determination by

    52  sending  a  written  notice to the empire zone designation board of such
    53  appeal no later than fifteen business days from the date of the  commis-
    54  sioner's  revocation notification. Provided that the business enterprise
    55  appeals the commissioner's determination within fifteen business days of
    56  the commissioner's revocation notification, the business enterprise  may
        S. 6610--C                         25                         A. 9710--D
 
     1  present  a  written  submission  to the empire zone designation board no
     2  later than sixty days following the date the  commissioner's  revocation
     3  notification  was  sent  to  the  business enterprise explaining why its
     4  certification  should  be  continued.  The empire zone designation board
     5  shall consider the explanation provided by the business enterprise,  but

     6  shall only reverse the determination to revoke the business enterprise's
     7  certification  if  the  empire  zone designation board unanimously finds
     8  that there was [insufficient] sufficient evidence presented by the busi-
     9  ness enterprise demonstrating  that  the  commissioner's  finding,  with
    10  respect  to subparagraph six of paragraph (v) of subdivision (a) of this
    11  section, was in error, or that, with respect  to  subparagraph  five  of
    12  paragraph  (v)  of  subdivision  (a)  of this section, any extraordinary
    13  circumstances occurred which would justify the  continued  certification
    14  of the business enterprise.
    15    § 4. Section 969 of the general municipal law is amended by adding two
    16  new subdivisions (f) and (g) to read as follows:
    17    (f)  Notwithstanding  subdivision  (a)  of  this  section, if the zone

    18  administrative board demonstrates that, prior to  the  date  the  empire
    19  zones  expire  under  this  section, that it had submitted a preliminary
    20  application to the department  of  economic  development  requesting  to
    21  revise the boundaries of its zone in order to accommodate a project that
    22  would  result  in the creation of jobs within the zone, the commissioner
    23  of economic development may review and approve  such  boundary  revision
    24  and,  if approved, may establish an effective date prior to the date the
    25  empire zones expire pursuant to subdivision (a) of this section.
    26    (g) Notwithstanding any regulations  to  the  contrary,  a  regionally
    27  significant  project  as  defined in paragraph (i) of subdivision (d) of

    28  section nine hundred fifty-seven of this article, that was deemed eligi-
    29  ble by the local zone administrative board and recommended for  approval
    30  to  the  commissioner  of economic development on or before the date the
    31  empire zones expire pursuant to subdivision (a)  of  this  section,  the
    32  commissioner  of  economic  development, if the project is approved, may
    33  establish an effective date prior to the date the  empire  zones  expire
    34  pursuant to subdivision (a) of this section.
    35    § 5. Paragraph 6 of subdivision (d) of section 1119 of the tax law, as
    36  added  by  section  31 of part S-1 of chapter 57 of the laws of 2009, is
    37  amended to read as follows:
    38    (6) Any reference in this chapter or in any local  law,  ordinance  or

    39  resolution  enacted  pursuant to the authority of article twenty-nine of
    40  this chapter to former subdivision (z) of section eleven hundred fifteen
    41  of this article will be deemed to be a reference  to  this  subdivision,
    42  and  any  such  local  law,  ordinance  or resolution which provides the
    43  exemptions described in former subdivision (z) of  such  section  eleven
    44  hundred fifteen shall be deemed instead to provide the refunds and cred-
    45  its described in this subdivision.
    46    § 6. Subdivision (a) of section 17 of the tax law, as added by section
    47  43  of part S-1 of chapter 57 of the laws of 2009, is amended to read as
    48  follows:
    49    (a) The department of taxation and  finance  must  publish  an  empire

    50  zones  tax benefits report annually by [January thirty-first] June thir-
    51  tieth. The first report must be published by [January thirty-first] June
    52  thirtieth, two thousand [thirteen] eleven.
    53    § 7. Subdivision (d) of section 44 of part S-1 of chapter  57  of  the
    54  laws  of 2009, amending the general municipal law and the tax law relat-
    55  ing to enacting reforms to the empire zones program, is amended to  read
    56  as follows:
        S. 6610--C                         26                         A. 9710--D
 
     1    (d)  section  forty-two  of  this  act shall take effect on January 1,
     2  [2012] 2010; and
     3    §  8.  Subdivision  12-B  of  section 210 of the tax law is amended by

     4  adding two new paragraphs (g) and (h) to read as follows:
     5    (g) Notwithstanding the expiration of the empire zones  program  under
     6  article  eighteen-B  of  the  general  municipal law, a taxpayer that is
     7  certified as a qualified investment project  pursuant  to  such  article
     8  eighteen-B  on  the  day  immediately preceding the day the empire zones
     9  program expired shall continue to be deemed certified under such article
    10  eighteen-B for purposes of this subdivision for  the  remainder  of  the
    11  taxable  year in which the expiration occurred and for the next succeed-
    12  ing nine taxable years. In addition,  the  areas  designated  as  empire
    13  zones  in  which  the  taxpayer  is  certified as a qualified investment

    14  project on the day  immediately  preceding  the  day  the  empire  zones
    15  program expired shall continue to be deemed empire zones for purposes of
    16  this  subdivision  for  the  remainder  of the taxable year in which the
    17  expiration occurred and for the next succeeding nine taxable years.
    18    (h) Notwithstanding the expiration of the empire zones  program  under
    19  article  eighteen-B  of the general municipal law and except as provided
    20  in paragraph (g) of this subdivision, a taxpayer that is certified as an
    21  empire zone business pursuant to such  article  eighteen-B  on  the  day
    22  immediately  preceding  the  day  the empire zones program expired shall
    23  continue to be  deemed  certified  under  such  article  eighteen-B  for

    24  purposes  of  this subdivision until April first, two thousand fourteen.
    25  In addition, the areas designated as empire zones in which the  taxpayer
    26  is certified as an empire zone business on the day immediately preceding
    27  the  day  the  empire  zones program expired shall continue to be deemed
    28  empire zones for purposes of this subdivision  until  April  first,  two
    29  thousand fourteen.
    30    § 9. Subsection (j) of section 606 of the tax law is amended by adding
    31  a new paragraph 7 to read as follows:
    32    (7)  Notwithstanding  the expiration of the empire zones program under
    33  article eighteen-B of the general municipal  law,  a  taxpayer  that  is
    34  certified as an empire zone business pursuant to such article eighteen-B

    35  on  the  day  immediately  preceding  the  day  the empire zones program
    36  expired shall continue to be deemed certified under such  article  eigh-
    37  teen-B  for purposes of this subdivision until April first, two thousand
    38  fourteen. In addition, the areas designated as empire zones in which the
    39  taxpayer is certified as an empire zone business on the day  immediately
    40  preceding  the day the empire zones program expired shall continue to be
    41  deemed empire zones for purposes of this subdivision until April  first,
    42  two thousand fourteen.
    43    §  10.  Subdivision  12-C  of section 210 of the tax law is amended by
    44  adding two new paragraphs (d) and (e) to read as follows:
    45    (d) Notwithstanding the expiration of the empire zones  program  under

    46  article  eighteen-B  of  the  general  municipal law, a taxpayer that is
    47  certified as a qualified investment project  pursuant  to  such  article
    48  eighteen-B  on  the  day  immediately preceding the day the empire zones
    49  program expired shall continue to be deemed certified under such article
    50  eighteen-B for purposes of this subdivision for  the  remainder  of  the
    51  taxable  year in which the expiration occurred and for the next succeed-
    52  ing nine taxable years. In addition,  the  areas  designated  as  empire
    53  zones  in  which  the  taxpayer  is  certified as a qualified investment
    54  project on the day  immediately  preceding  the  day  the  empire  zones
    55  program expired shall continue to be deemed empire zones for purposes of

        S. 6610--C                         27                         A. 9710--D
 
     1  this  subdivision  for  the  remainder  of the taxable year in which the
     2  expiration occurred and for the next succeeding nine taxable years.
     3    (e)  Notwithstanding  the expiration of the empire zones program under
     4  article eighteen-B of the general municipal law and except  as  provided
     5  in paragraph (d) of this subdivision, a taxpayer that is certified as an
     6  empire  zone  business  pursuant  to  such article eighteen-B on the day
     7  immediately preceding the day the empire  zones  program  expired  shall
     8  continue  to  be  deemed  in  the  empire zone in which the taxpayer was
     9  certified as an empire zone business on the  day  immediately  preceding

    10  the  day  the  empire  zones program expired for each of the three years
    11  next succeeding the taxable year for which the credit under  subdivision
    12  twelve-B is allowed.
    13    §  11.  Subsection  (j-1)  of section 606 of the tax law is amended by
    14  adding a new subdivision (4) to read as follows:
    15    (4) Notwithstanding the expiration of the empire zones  program  under
    16  article  eighteen-B  of  the  general  municipal law, a taxpayer that is
    17  certified as an empire zone business pursuant to such article eighteen-B
    18  on the day immediately  preceding  the  day  the  empire  zones  program
    19  expired  shall  continue  to  be  deemed in the empire zone in which the
    20  taxpayer was certified as an empire zone business on the day immediately

    21  preceding the day the empire zones program expired for each of the three
    22  years next succeeding the taxable year for which the credit under subdi-
    23  vision (j) is allowed.
    24    § 12. Section 14 of the tax law is amended by adding a new subdivision
    25  (h) to read as follows:
    26    (h) Sales and use tax. (1) In addition to the  other  requirements  of
    27  this  section,  for  business  enterprises certified pursuant to article
    28  eighteen-B of the general municipal law prior to April first, two  thou-
    29  sand  nine,  in  order for an exemption under subdivision (z) of section
    30  eleven hundred fifteen of this chapter or the credit or refund described
    31  in subdivision (d) of section eleven hundred nineteen of this chapter or

    32  any like exemption or credit or refund imposed pursuant to the authority
    33  of article twenty-nine of this chapter to apply with respect to a quali-
    34  fied empire zone enterprise, such enterprise shall apply to the  commis-
    35  sioner  of  taxation  and finance for the issuance of a qualified empire
    36  zone enterprise certification in the manner prescribed  by  the  commis-
    37  sioner.  If  such  commissioner  grants such certification, such certif-
    38  ication shall be subject to conditions specified by  such  commissioner.
    39  Nothing  herein  or  in any other law shall be construed to prohibit the
    40  disclosure, in such manner as the commissioner of taxation  and  finance
    41  deems appropriate, of the names and other appropriate identifying infor-

    42  mation  of  those  persons  holding qualified empire zone certifications
    43  pursuant to this subdivision, those persons whose qualified empire  zone
    44  enterprise  certifications  have been revoked or persons whose qualified
    45  empire zone enterprise certifications  have  expired.  The  commissioner
    46  shall  not  grant  any certifications pursuant to this subdivision after
    47  June thirtieth, two thousand ten.
    48    (2) A business enterprise, certified as an empire zone business  under
    49  article  eighteen-B  of  the general municipal law prior to April first,
    50  two thousand nine, and certified as a qualified empire  zone  enterprise
    51  by  the  commissioner of taxation and finance prior to August first, two

    52  thousand nine, is eligible to claim the exemption under subdivision  (z)
    53  of  section eleven hundred fifteen of this chapter or any like exemption
    54  from tax imposed pursuant to the authority  of  article  twenty-nine  of
    55  this chapter until September first, two thousand nine, provided that the
    56  other  requirements of the statute are met. A business enterprise certi-
        S. 6610--C                         28                         A. 9710--D
 
     1  fied as an empire zone business under article eighteen-B of the  general
     2  municipal  law prior to April first, two thousand nine, and certified as
     3  a qualified empire zone enterprise by the commissioner of  taxation  and
     4  finance  as of or prior to June thirtieth, two thousand ten, is eligible

     5  to claim the credit or refund under subdivision (d)  of  section  eleven
     6  hundred  nineteen  of  this chapter or any like credit or refund imposed
     7  pursuant to the  authority  of  article  twenty-nine  of  this  chapter,
     8  provided  that  the other requirements of the statute are met during the
     9  term of its sales and use tax benefit period notwithstanding the expira-
    10  tion of the empire zones program under article eighteen-B of the general
    11  municipal law.
    12    (3) During the period that a business enterprise is eligible to apply,
    13  or is qualified, for an exemption or a credit or refund of the sales and
    14  compensating use taxes under this section, the commissioner of  economic
    15  development  shall,  at the time such commissioner certifies or decerti-

    16  fies a business enterprise  under  article  eighteen-B  of  the  general
    17  municipal  law,  notify the commissioner of taxation and finance of such
    18  certification or decertification, which notification shall  include  the
    19  full  legal  name, address and federal employer identification number of
    20  such enterprise. The commissioner of economic development shall, at  the
    21  time  of  any  such  certification,  also  advise such enterprise of the
    22  requirements in paragraph one of this subdivision.
    23    § 13. Subdivision (e) of section 15 of the  tax  law,  as  amended  by
    24  chapter 161 of the laws of 2005, is amended to read as follows:
    25    (e)  Eligible  real  property  taxes. The term "eligible real property
    26  taxes" means taxes imposed on real property which is owned by  the  QEZE

    27  and  located  in an empire zone with respect to which the QEZE is certi-
    28  fied pursuant to  article  eighteen-B  of  the  general  municipal  law,
    29  provided  such taxes are paid by the QEZE which is the owner of the real
    30  property or are paid by a tenant which either  (i)  does  not  meet  the
    31  eligibility  requirements under section fourteen of this article to be a
    32  QEZE or (ii) cannot treat such payment as eligible real  property  taxes
    33  pursuant  to  this  paragraph  and  such taxes become a lien on the real
    34  property during a taxable year in which the owner of the  real  property
    35  is  both certified pursuant to article eighteen-B of the general munici-
    36  pal law and a qualified empire zone enterprise.   For purposes  of  this
    37  subdivision, the term "tax" means a charge imposed upon real property by

    38  or  on  behalf  of  a county, city, town, village or school district for
    39  municipal or school district  purposes,  provided  that  the  charge  is
    40  levied  for  the general public welfare by the proper taxing authorities
    41  at a like rate against all property in the  territory  over  which  such
    42  authorities  have jurisdiction, and provided that where taxes are levied
    43  pursuant to article eighteen or article nineteen of  the  real  property
    44  tax  law,  the  property must have been taxed at the rate determined for
    45  the class in which it is contained, as provided by such article eighteen
    46  or nineteen, whichever is applicable. The term "tax" does not include  a
    47  charge  for local benefits, including any portion of that charge that is

    48  properly allocated to the costs attributable to maintenance or interest,
    49  when (1) the property subject to the charge is limited to  the  property
    50  that benefits from the charge, or (2) the amount of the charge is deter-
    51  mined  by  the  benefit to the property assessed, or (3) the improvement
    52  for which the charge is assessed tends to increase the  property  value.
    53  In  addition, "eligible real property taxes" shall include taxes paid by
    54  a QEZE which is a lessee of real property if  the  following  conditions
    55  are  satisfied:    (1)  the taxes must be paid by the lessee pursuant to
    56  explicit requirements in a written lease executed or amended on or after
        S. 6610--C                         29                         A. 9710--D
 

     1  June first, two thousand five, (2) such taxes become a lien on the  real
     2  property  during a taxable year in which the lessee of the real property
     3  is both certified pursuant to article eighteen-B of the general  munici-
     4  pal  law  and a qualified empire zone enterprise, and (3) the lessee has
     5  made direct payment of such  taxes  to  the  taxing  authority  and  has
     6  received  a receipt for such payment of taxes from the taxing authority.
     7  In addition, the term "eligible real property taxes"  includes  payments
     8  in  lieu of taxes made by the QEZE to the state, a municipal corporation
     9  or a public benefit corporation pursuant to a written agreement  entered
    10  into  between  the  QEZE and the state, municipal corporation, or public
    11  benefit corporation. Provided, however, a payment in lieu of taxes  made
    12  by  the  QEZE  pursuant to a written agreement executed or amended on or

    13  after January first, two thousand one,  shall  not  constitute  eligible
    14  real  property taxes in any taxable year to the extent that such payment
    15  exceeds the product of (A) the greater of  (i)  the  basis  for  federal
    16  income  tax  purposes, calculated without regard to depreciation, deter-
    17  mined as of the effective date of the QEZE's certification  pursuant  to
    18  article  eighteen-B  of  the  general  municipal  law  of real property,
    19  including buildings and structural components of buildings, owned by the
    20  QEZE and located in empire zones with  respect  to  which  the  QEZE  is
    21  certified  pursuant  to such article eighteen-B of the general municipal
    22  law, and provided that if such basis  is  further  adjusted  or  reduced
    23  pursuant  to  any  provision  of the internal revenue code, the QEZE may
    24  petition the department, the department of economic development and  the

    25  office  of real property services to disregard such reduction or adjust-
    26  ment for the purpose of this subdivision or (ii) the basis  for  federal
    27  income  tax  purposes  of  such real property described in clause (i) of
    28  this subparagraph, calculated without regard  to  depreciation,  on  the
    29  last day of the taxable year, and provided that if such basis is further
    30  adjusted  or  reduced  pursuant to any provision of the internal revenue
    31  code, the QEZE may petition the department, the department  of  economic
    32  development  and  the office of real property services to disregard such
    33  reduction or adjustment for the purpose of this subdivision; and (B) the
    34  estimated effective full value tax rate within the county in which  such
    35  property  is  located,  as most recently reported to the commissioner by
    36  the secretary of the state board of real property services,  or  his  or

    37  her  designee. The state board shall annually calculate estimated effec-
    38  tive full value tax rates within each county for this purpose based upon
    39  the most current information available to  it  in  relation  to  county,
    40  city, town, village and school district taxes.
    41    §  14.  Subdivision  20  of  section  210 of the tax law is amended by
    42  adding a new paragraph (f) to read as follows:
    43    (f) If the designation of an area as an empire zone is  no  longer  in
    44  effect  because the designations of all empire zones pursuant to article
    45  eighteen-B of the general municipal law have expired,  a  taxpayer  that
    46  has  made  a  contribution  of  money  on  or before the day immediately
    47  preceding the day the empire zones expired to  a  community  development

    48  project  approved  by  the commissioner of economic development shall be
    49  deemed eligible to claim the empire zone capital credit  under  subpara-
    50  graph three of paragraph (a) of this subdivision for additional contrib-
    51  utions made prior to April first, two thousand fourteen and certified by
    52  the  commissioner  of economic development to that community development
    53  project as payment of a commitment made by the taxpayer to that communi-
    54  ty development project before the empire zones expired.
    55    § 15. Subsection (l) of section 606 of  the  tax  law  is  amended  by
    56  adding a new paragraph 5 to read as follows:
        S. 6610--C                         30                         A. 9710--D
 

     1    (5)  If  the  designation of an area as an empire zone is no longer in
     2  effect because the designations of all empire zones pursuant to  article
     3  eighteen-B  of  the  general municipal law have expired, a taxpayer that
     4  has made a contribution of  money  on  or  before  the  day  immediately
     5  preceding  the  day  the empire zones expired to a community development
     6  project approved by the commissioner of economic  development  shall  be
     7  deemed  eligible  to claim the empire zone capital credit under subpara-
     8  graph (C) of paragraph one of this subsection  for  additional  contrib-
     9  utions made prior to April first, two thousand fourteen and certified by
    10  the  commissioner  of economic development to that community development

    11  project as payment of a commitment made by the taxpayer to that communi-
    12  ty development project before the empire zones expired.
    13    § 16. Subsection (d) of section 1456 of the  tax  law  is  amended  by
    14  adding a new paragraph 5 to read as follows:
    15    (5)  If  the  designation of an area as an empire zone is no longer in
    16  effect because the designations of all empire zones pursuant to  article
    17  eighteen-B  of  the  general municipal law have expired, a taxpayer that
    18  has made a contribution of  money  on  or  before  the  day  immediately
    19  preceding  the  day  the empire zones expired to a community development
    20  project approved by the commissioner of economic  development  shall  be
    21  deemed  eligible  to claim the empire zone capital credit under subpara-

    22  graph (C) of paragraph one of this subsection  for  additional  contrib-
    23  utions made prior to April first, two thousand fourteen and certified by
    24  the  commissioner  of economic development to that community development
    25  project as payment of a commitment made by the taxpayer to that communi-
    26  ty development project before the empire zones expired.
    27    § 17. Subdivision (h) of section 1511 of the tax  law  is  amended  by
    28  adding a new paragraph 5 to read as follows:
    29    (5)  If  the  designation of an area as an empire zone is no longer in
    30  effect because the designations of all empire zones pursuant to  article
    31  eighteen-B  of  the  general municipal law have expired, a taxpayer that
    32  has made a contribution of  money  on  or  before  the  day  immediately

    33  preceding  the  day  the empire zones expired to a community development
    34  project approved by the commissioner of economic  development  shall  be
    35  deemed  eligible  to claim the empire zone capital credit under subpara-
    36  graph (C) of paragraph one of this subdivision for  additional  contrib-
    37  utions made prior to April first, two thousand fourteen and certified by
    38  the  commissioner  of economic development to that community development
    39  project as payment of a commitment made by the taxpayer to that communi-
    40  ty development project before the empire zones expired.
    41    § 18. This act shall take effect immediately, provided that the amend-
    42  ments to section 14 of the tax law, made by section twelve of  this  act
    43  shall  take  effect immediately and be deemed to have been in full force

    44  and effect on April 1, 2009; and provided, however, that  section  thir-
    45  teen  of this act shall take effect immediately and apply to all taxable
    46  years beginning on or after January 1, 2010 and, except with respect  to
    47  maintenance  or  interest  charges,  to  all taxable years for which the
    48  statute of limitations for seeking a refund or assessing additional  tax
    49  are still open.
 
    50                                   PART S
 
    51    Section  1.  This  act enacts into law major components of legislation
    52  relating to tax enforcement,  sales  tax  avoidance  and  statements  of
    53  industrial  agencies  and  their  agents.    Each  component  is  wholly
    54  contained within a Subpart identified  as  Subparts  A  through  C.  The
        S. 6610--C                         31                         A. 9710--D
 

     1  effective  date  for  each  particular  provision  contained within such
     2  Subpart is set forth in the last section of such Subpart. Any  provision
     3  in  any section contained within a Subpart, including the effective date
     4  of  the  Subpart, which makes reference to a section "of this act", when
     5  used in connection with that particular component, shall  be  deemed  to
     6  mean  and  refer to the corresponding section of the Subpart in which it
     7  is found. Section three of this act sets  forth  the  general  effective
     8  date of this act.
 
     9                                  SUBPART A
 
    10    Section  1. The tax law is amended by adding two new sections 1808 and
    11  1809 to read as follows:
    12    § 1808. Personal income and earnings taxes; repeated failure to  file.
    13  (a)  Any  person  who,  with  intent to evade payment of any tax imposed

    14  under article twenty-two of this chapter or any related income or  earn-
    15  ings  tax  statute, fails to file a return for three consecutive taxable
    16  years shall be guilty of a class E felony, provided that such person had
    17  an unpaid tax liability with respect to each of  the  three  consecutive
    18  taxable years.
    19    (b)  In  any  prosecution  for  a violation of subdivision (a) of this
    20  section, it shall be a defense that the  defendant  had  no  unpaid  tax
    21  liability for any of the three consecutive taxable years.
    22    (c) As used in this subdivision, the term "return" shall mean a return
    23  required  under  section  six hundred fifty-one of this chapter, section
    24  11-1751 of the administrative code of the city of New  York  or  section

    25  92-85  or  92-105 of the codes and ordinances of the city of Yonkers. It
    26  shall not include any information return referred to in  subsection  (i)
    27  of  section six hundred fifty-one of this chapter, or subdivision (i) of
    28  section 11-1751 of such code, or subdivision (g) of  section  92-105  of
    29  such  codes  and  ordinances, or section six hundred fifty-eight of this
    30  chapter or section 11-1758 of such code or section 92-111 of such  codes
    31  and ordinances, or any employer's return required by section six hundred
    32  seventy-four of this chapter or section 11-1774 of such code.
    33    § 1809. Corporate taxes; repeated failure to file. (a) Any person who,
    34  with  intent  to  evade  payment  of  any tax imposed under article nine

    35  (other than under section one hundred eighty or one hundred eighty-one),
    36  nine-A, thirteen, thirty-two, thirty-three  or  thirty-three-A  of  this
    37  chapter,  fails to file a return or report for three consecutive taxable
    38  years shall be guilty of a class E felony, provided that such person had
    39  an unpaid tax liability, in excess of the threshold amount with  respect
    40  to  each of the three consecutive taxable years. The threshold amount in
    41  the case of a taxable year under article nine-A of this  chapter  ending
    42  after  June  thirtieth,  nineteen  hundred eighty-nine is the applicable
    43  fixed dollar minimum prescribed under paragraph (d) of  subdivision  one
    44  of  section  two  hundred  ten  of this chapter. In the event such fixed

    45  dollar minimum is less than two hundred  fifty  dollars,  the  threshold
    46  amount in the case of such taxable year is two hundred fifty dollars. In
    47  all other cases the threshold amount is two hundred fifty dollars.
    48    (b)  In  any  prosecution  for  a violation of subdivision (a) of this
    49  section, it shall be a defense that the  defendant  had  no  unpaid  tax
    50  liability for any of the three consecutive taxable years.
    51    (c)  As  used  in  this section, the terms "return" and "report" shall
    52  mean a return or report required under section one  hundred  ninety-two,
    53  two hundred eleven, two hundred ninety-four, fourteen hundred sixty-two,
    54  fifteen  hundred  fifteen or fifteen hundred fifty-four of this chapter.

        S. 6610--C                         32                         A. 9710--D
 
     1  It shall not include any return or report referred  to  in  section  one
     2  hundred  ninety-seven-a,  two hundred thirteen-a, fourteen hundred sixty
     3  or fifteen hundred thirteen of this chapter.
     4    §  2.  Paragraph (b) of subdivision 3-a of section 170 of the tax law,
     5  as amended by section 1 of subpart C of part V-1 of chapter  57  of  the
     6  laws of 2009, is amended to read as follows:
     7    (b)  A  request  for a conciliation conference shall be applied for in
     8  the manner as set forth by regulation of the commissioner and,  notwith-
     9  standing any provision of law to the contrary, shall suspend the running
    10  of  the  period  of  limitations for the filing of a petition protesting
    11  such notice and requesting a hearing.  To discontinue  the  conciliation

    12  proceeding,  the recipient of the notice shall make a request in writing
    13  and such person shall have ninety days from the  time  such  request  of
    14  discontinuance  is  made  to  petition the division of tax appeals for a
    15  hearing, except that the recipient of  a  written  notice  described  in
    16  paragraph  (h)  of  this subdivision will have thirty days from the time
    17  such request of discontinuance is made to petition the division  of  tax
    18  appeals for a hearing. The commissioner shall notify the division of tax
    19  appeals when any person requests a conference or requests to discontinue
    20  such conference.
    21    §  3.  Paragraph (h) of subdivision 3-a of section 170 of the tax law,
    22  as added by section 2 of subpart C of part V-1 of chapter 57 of the laws
    23  of 2009, is amended to read as follows:

    24    (h) Notwithstanding any provision of law to the contrary,  any  person
    25  who seeks review by the bureau of conciliation and mediation services of
    26  a  written notice that advises that person of (i) the proposed cancella-
    27  tion, revocation, or suspension of a license, permit,  registration,  or
    28  other  credential issued under the authority of this chapter excluding a
    29  certificate of registration  of  a  retail  dealer  under  section  four
    30  hundred  eighty-a of this chapter, (ii) the denial of an application for
    31  a license, permit, registration, or other credential  issued  under  the
    32  authority of this chapter excluding an application for registration as a
    33  retail dealer under section four hundred eighty-a of this chapter and an
    34  application  to renew a certificate of authority filed pursuant to para-

    35  graph five of subdivision (a) of section one thousand one hundred  thir-
    36  ty-four of this chapter and any other law, or, (iii) the imposition of a
    37  fraud penalty under this chapter, must request a conciliation conference
    38  within thirty days of [receipt] the mailing of that notice.
    39    §  4.  Paragraphs  (a) and (b) of subdivision 2 of section 2008 of the
    40  tax law, as added by section 3 of subpart C of part V-1 of chapter 57 of
    41  the laws of 2009, are amended to read as follows:
    42    (a) Notwithstanding any provision of law to the contrary,  any  person
    43  who  receives  a  written  notice  that  advises  that person of (i) the
    44  proposed cancellation, revocation, or suspension of a  license,  permit,
    45  registration,  or  other  credential  issued under the authority of this
    46  chapter excluding a certificate of registration of a retail dealer under

    47  section four hundred eighty-a of this chapter, (ii)  the  denial  of  an
    48  application  for  a  license,  permit, registration, or other credential
    49  issued under the authority of this chapter excluding an application  for
    50  registration  as  a retail dealer under section four hundred eighty-a of
    51  this chapter and an application to  renew  a  certificate  of  authority
    52  filed pursuant to paragraph five of subdivision (a) of section one thou-
    53  sand  one  hundred  thirty-four  of  this chapter and any other law, or,
    54  (iii) the imposition of a fraud penalty under this chapter, must file  a
    55  petition  with  the  division  of  tax  appeals  within  thirty  days of
    56  [receipt] the mailing of that notice (unless that person has requested a

        S. 6610--C                         33                         A. 9710--D
 
     1  conciliation conference as provided in subdivision  three-a  of  section
     2  one  hundred  seventy of this chapter), or the cancellation, revocation,
     3  suspension, denial, or  penalty  will  be  permanently  and  irrevocably
     4  fixed.  An  expedited hearing must be scheduled within ten business days
     5  of receipt of the petition.
     6    (b) In the case of any  expedited  hearing  provided  for  under  this
     7  subdivision,  the administrative law judge must render a decision within
     8  thirty days from receipt of the petition. When exception is taken to  an
     9  administrative  law judge's determination, the tax appeals tribunal must
    10  issue its decision within three months from receipt of the petition. Any
    11  request by [the petitioner] a party that delays  the  expedited  hearing

    12  process  will extend the time limitations imposed on the tribunal or the
    13  administrative law judge to  issue  a  decision  or  determination.  The
    14  tribunal or administrative law judge may not approve any postponement or
    15  other delay without a showing of good cause by the moving party and must
    16  render  a  default  determination or decision against the dilatory party
    17  for any unwarranted delay.
    18    § 5. Section 1807 of the tax law, as added by section 21 of subpart  I
    19  of  part  V-1  of  chapter 57 of the laws of 2009, is amended to read as
    20  follows:
    21    § 1807. Aggregation. For purposes of this article,  the  payments  due
    22  and  not paid under a single article [one] of this chapter pursuant to a
    23  common scheme or plan or due and not  paid,  within  one  year,  may  be
    24  charged  in  a  single  count, and the amount of underpaid tax liability

    25  incurred, within one year, may be aggregated in a single count.
    26    § 6. Section 34 of subpart I of part V-1 of chapter 57 of the laws  of
    27  2009,  amending  the  criminal procedure law, the penal law, and the tax
    28  law relating to creating the offense of "tax fraud act", is  amended  to
    29  read as follows:
    30    §  34. This act shall take effect immediately and sections two through
    31  thirty-three of this act shall apply to offenses committed on and  after
    32  such effective date.
    33    §  7.  This  act  shall take effect immediately; provided however that
    34  section one of this act shall apply to offenses committed on  and  after
    35  such effective date.
 
    36                                  SUBPART B
 
    37    Section  1.  Subparagraph  (iv)  of  paragraph 4 of subdivision (b) of
    38  section 1101 of the tax law, as added by chapter 93 of the laws of 1965,

    39  clause (B) as amended by chapter 575 of the laws of 1965 and  as  renum-
    40  bered by chapter 2 of the laws of 1995, is amended to read as follows:
    41    (iv) (A) The term retail sale does not include:
    42    [(A)] (I) The transfer of tangible personal property to a corporation,
    43  solely  in  consideration  for  the issuance of its stock, pursuant to a
    44  merger or consolidation effected under the law of New York or any  other
    45  jurisdiction.
    46    [(B)] (II) The distribution of property by a corporation to its stock-
    47  holders as a liquidating dividend.
    48    [(C)] (III) The distribution of property by a partnership to its part-
    49  ners in whole or partial liquidation.
    50    [(D)]  (IV)  The transfer of property to a corporation upon its organ-

    51  ization in consideration for the issuance of its stock.
    52    [(E)] (V) The contribution of property to a partnership  in  consider-
    53  ation for a partnership interest therein.
        S. 6610--C                         34                         A. 9710--D
 
     1    (B)  For an exception applicable to this subparagraph, see subdivision
     2  (q) of section eleven hundred eleven of this article.
     3    §  2.  Paragraph 17 of subdivision (b) of section 1101 of the tax law,
     4  as amended by section 1 of part N-1 of chapter 57 of the laws  of  2009,
     5  is amended to read as follows:
     6    (17)  Commercial  aircraft.  Aircraft  used primarily (i) to transport
     7  persons or property, for hire, (ii) by the purchaser of the aircraft  to
     8  transport  such  person's  tangible  personal property in the conduct of

     9  such person's business, or (iii) for both  such  purposes.  Transporting
    10  persons  for hire does not include transporting agents, employees, offi-
    11  cers, members, partners, managers or directors  of  affiliated  persons.
    12  Persons  are  affiliated persons with respect to each other where one of
    13  the persons has an ownership interest of more than five percent, whether
    14  direct or indirect, in the other, or where an ownership interest of more
    15  than five percent, whether direct or indirect, is held in  each  of  the
    16  persons by another person or by a group of other persons that are affil-
    17  iated  persons  with  respect  to  each other.   For an exception to the
    18  exclusions from the definition of "retail sale" applicable to  aircraft,
    19  see subdivision (q) of section eleven hundred eleven of this article.

    20    §  3.  Section 1111 of the tax law is amended by adding a new subdivi-
    21  sion (q) to read as follows:
    22    (q) (1) The exclusions from the definition of retail sale in  subpara-
    23  graph  (iv)  of  paragraph  four  of  subdivision  (b) of section eleven
    24  hundred one of this article shall not apply to transfers, distributions,
    25  or contributions of an aircraft or vessel, except where, in the case  of
    26  the  exclusion in subclause (I) of clause (A) of such subparagraph (iv),
    27  the two corporations to be merged or  consolidated  are  not  affiliated
    28  persons  with  respect to each other.  For purposes of this subdivision,
    29  corporations are affiliated persons with respect to each other where (i)
    30  more than five percent of their combined shares are owned by members  of

    31  the  same  family,  as  defined  by  paragraph four of subsection (c) of
    32  section two hundred sixty-seven of the internal revenue code of nineteen
    33  hundred eighty-six; (ii) one of the corporations has an ownership inter-
    34  est of more than five percent, whether direct or indirect, in the other;
    35  or (iii) another person or a group of other persons that are  affiliated
    36  persons  with  respect  to each other hold an ownership interest of more
    37  than five percent, whether direct or indirect, in  each  of  the  corpo-
    38  rations.
    39    (2)  Notwithstanding any contrary provision of law, in relation to any
    40  transfer, distribution, or contribution of an aircraft  or  vessel  that
    41  qualifies as a retail sale as a result of paragraph one of this subdivi-

    42  sion, the sales tax imposed by subdivision (a) of section eleven hundred
    43  five  of  this  part  shall  be computed based on the price at which the
    44  seller purchased the tangible personal property, provided that where the
    45  seller or purchaser affirmatively shows that the seller owned the  prop-
    46  erty  for  six  months  prior  to  making  the transfer, distribution or
    47  contribution covered by paragraph one of this subdivision, such aircraft
    48  or vessel shall be taxed on the basis of the current market value of the
    49  aircraft or vessel at  the  time  of  that  transfer,  distribution,  or
    50  contribution.  For  the  purposes of the prior sentence, "current market
    51  value" shall not exceed the cost of the aircraft or vessel. See subdivi-

    52  sion (b) of this section for a similar rule on the  computation  of  any
    53  compensating  use  tax due under section eleven hundred ten of this part
    54  on such transfers, distributions, or contributions.
    55    (3) A purchaser of an aircraft or vessel covered by paragraph  one  of
    56  this  subdivision  will  be  entitled  to a refund or credit against the
        S. 6610--C                         35                         A. 9710--D
 
     1  sales or compensating use tax due as a result of  a  transfer,  distrib-
     2  ution,  or  contribution of such aircraft or vessel in the amount of any
     3  sales or use tax paid to this state or any other state on  the  seller's
     4  purchase or use of the aircraft or vessel so transferred, distributed or

     5  contributed,  but  not  to  exceed the tax due on the transfer, distrib-
     6  ution, or contribution of the aircraft or vessel or on  the  purchaser's
     7  use  in  the state of the aircraft or vessel so transferred, distributed
     8  or contributed.  An application for a refund or credit under this subdi-
     9  vision must be filed and shall be in such form as the  commissioner  may
    10  prescribe. Where an application for credit has been filed, the applicant
    11  may  immediately  take such credit on the return which is due coincident
    12  with or immediately subsequent to the time the application for credit is
    13  filed. However, the taking of the credit on the return shall  be  deemed
    14  to be part of the application for credit.  Provided that the commission-

    15  er  may,  in  his  or  her discretion and notwithstanding any other law,
    16  waive the application requirement for any  or  all  classes  of  persons
    17  where  the  amount of the credit or refund is equal to the amount of the
    18  tax due from the purchaser.  The provisions of  subdivisions  (a),  (b),
    19  and  (c)  of  section  eleven  hundred thirty-nine of this article shall
    20  apply to applications for refund or credit under  this  subdivision.  No
    21  interest  shall  be allowed or paid on any refund made or credit allowed
    22  under this subdivision. If a refund is granted or a credit allowed under
    23  this paragraph, the seller or purchaser shall  not  be  eligible  for  a
    24  refund or credit pursuant to subdivision seven of section eleven hundred

    25  eighteen of this article with regard to the same purchase or use.
    26    §  4.  Subdivision  2  of  section  1118 of the tax law, as amended by
    27  section 2 of part N-1 of chapter 57 of the laws of 2009, is  amended  to
    28  read as follows:
    29    (2)  In  respect  to  the use of property or services purchased by the
    30  user while a nonresident of this state, except in the case  of  tangible
    31  personal  property  or  services which the user, in the performance of a
    32  contract, incorporates into real property located in the state. A person
    33  while engaged in any manner in carrying on in this state any employment,
    34  trade, business or profession, shall not be deemed  a  nonresident  with
    35  respect to the use in this state of property or services in such employ-
    36  ment,  trade,  business  or profession. This exemption does not apply to

    37  the use of qualified property where the qualified property is  purchased
    38  primarily to carry individuals, whether or not for hire, who are agents,
    39  employees,  officers,  shareholders,  members,  managers,  partners,  or
    40  directors of (A) the purchaser, where any of  those  individuals  was  a
    41  resident  of this state when the qualified property was purchased or (B)
    42  any affiliated person that was a resident when  the  qualified  property
    43  was  purchased. For purposes of this subdivision: (i) persons are affil-
    44  iated persons with respect to each other where one of the persons has an
    45  ownership interest of more than five percent, whether  direct  or  indi-
    46  rect,  in  the  other,  or where an ownership interest of more than five
    47  percent, whether direct or indirect, is held in each of the  persons  by
    48  another  person  or  by  a  group  of  other persons that are affiliated

    49  persons with respect to each  other;  (ii)  "qualified  property"  means
    50  aircraft,  vessels  and  motor vehicles; and (iii) "carry" means to take
    51  any person from one point to another, whether for the business  purposes
    52  or pleasure of that person.  For an exception to the exclusions from the
    53  definition  of  "retail  sale"  applicable  to aircraft and vessels, see
    54  subdivision (q) of section eleven hundred eleven of this article.
    55    § 5. This act shall take effect immediately and shall apply  to  sales
    56  made  and  uses  occurring  on or after such date in accordance with the
        S. 6610--C                         36                         A. 9710--D
 
     1  applicable transitional provisions in sections 1106 and 1217 of the  tax
     2  law, provided that sales or use tax paid on the seller's purchase or use

     3  of the aircraft or vessel transferred, distributed or contributed may be
     4  refunded or credited as authorized by the new subdivision (q) of section
     5  1111  of  the tax law, as added by section three of this act, regardless
     6  of the date on which the  seller  purchased  or  used  the  aircraft  or
     7  vessel.
 
     8                                  SUBPART C
 
     9    Section  1.  Section  874  of  the general municipal law is amended by
    10  adding a new subdivision 9 to read as follows:
    11    (9) Within thirty days of  the  date  that  the  agency  designates  a
    12  project  operator  or  other  person  to  act as agent of the agency for
    13  purposes of providing financial assistance consisting of any  sales  and
    14  compensating  use  tax exemption to such person, the agency shall file a

    15  statement with the department of taxation and finance relating  thereto,
    16  on  a  form  and  in such manner as is prescribed by the commissioner of
    17  taxation and finance, identifying each such agent so named by the  agen-
    18  cy, setting forth the taxpayer identification number of each such agent,
    19  giving  a  brief description of the property and/or services intended to
    20  be exempted from such taxes as a result of such  appointment  as  agent,
    21  indicating  the  agency's  rough  estimate  of the value of the property
    22  and/or services to which such appointment as agent  relates,  indicating
    23  the  date when such designation as agent became effective and indicating
    24  the date upon which such designation as agent shall cease.

    25    § 2. Section 1963 of the public authorities law is amended  by  adding
    26  two new subdivisions 3 and 4 to read as follows:
    27    3. Agents of the authority and project operators shall annually file a
    28  statement  with the department of taxation and finance, on a form and in
    29  such a manner as is prescribed  by  the  commissioner  of  taxation  and
    30  finance,  of  the  value  of all sales and use tax exemptions claimed by
    31  such agents or agents of such agents or  project  operators,  including,
    32  but  not  limited  to,  consultants  or subcontractors of such agents or
    33  project operators, under the authority granted pursuant to this section.
    34  The penalty for failure to file such statement shall be the  removal  of
    35  the authority to act as an agent of the authority or as a project opera-

    36  tor.
    37    4.  Within  thirty  days  of  the date that the authority designates a
    38  project operator or other person to act as agent of  the  authority  for
    39  purposes  of  providing financial assistance consisting of any sales and
    40  compensating use tax exemption to such person, the agency shall  file  a
    41  statement  with the department of taxation and finance relating thereto,
    42  on a form and in such manner as is prescribed  by  the  commissioner  of
    43  taxation  and  finance,  identifying  each  such  agent  so named by the
    44  authority, setting forth the taxpayer identification number of each such
    45  agent, giving a  brief  description  of  the  property  and/or  services
    46  intended  to be exempted from such taxes as a result of such appointment

    47  as agent, indicating the authority's rough estimate of the value of  the
    48  property  and/or  services  to  which such appointment as agent relates,
    49  indicating the date when such designation as agent became effective  and
    50  indicating the date upon which such designation as agent shall cease.
    51    §  3.  Section 2326 of the public authorities law is amended by adding
    52  two new subdivisions 3 and 4 to read as follows:
    53    3. Agents of the authority and project operators shall annually file a
    54  statement with the department of taxation and finance, on a form and  in
        S. 6610--C                         37                         A. 9710--D
 
     1  such  a  manner  as  is  prescribed  by the commissioner of taxation and

     2  finance, of the value of all sales and use  tax  exemptions  claimed  by
     3  such  agents  or  agents of such agents or project operators, including,
     4  but  not  limited  to,  consultants  or subcontractors of such agents or
     5  project operators, under the authority granted pursuant to this section.
     6  The penalty for failure to file such statement shall be the  removal  of
     7  the authority to act as an agent of the authority or as a project opera-
     8  tor.
     9    4.  Within  thirty  days  of  the date that the authority designates a
    10  project operator or other person to act as agent of  the  authority  for
    11  purposes  of  providing financial assistance consisting of any sales and
    12  compensating use tax exemption to such person, the agency shall  file  a

    13  statement  with the department of taxation and finance relating thereto,
    14  on a form and in such manner as is prescribed  by  the  commissioner  of
    15  taxation  and  finance,  identifying  each  such  agent  so named by the
    16  authority, setting forth the taxpayer identification number of each such
    17  agent, giving a  brief  description  of  the  property  and/or  services
    18  intended  to be exempted from such taxes as a result of such appointment
    19  as agent, indicating the authority's rough estimate of the value of  the
    20  property  and/or  services  to  which such appointment as agent relates,
    21  indicating the date when such designation as agent became effective  and
    22  indicating the date upon which such designation as agent shall cease.

    23    § 4. This act shall take effect immediately, provided, however, that:
    24    (a) section one of this act shall be deemed to have been in full force
    25  and effect on and after January 31, 2008;
    26    (b) sections two and three of this act shall be deemed to have been in
    27  full force and effect on and after January 1, 2010; and
    28    (c)  any statement of an industrial development agency or authority to
    29  the department of taxation and finance required by this act with respect
    30  to having appointed an agent or project operator  before  the  effective
    31  date of this act shall be deemed timely if it is filed within 90 days of
    32  such date.
    33    § 2. 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    § 3. This act shall take effect immediately  provided,  however,  that
    43  the  applicable effective date of Subparts A through C of this act shall
    44  be as specifically set forth in the last section of such Subparts.
 
    45                                   PART T
 
    46    Section 1. Subsection (a) of section 951 of the tax law, as amended by
    47  section 1 of part A of chapter 407 of the laws of 1999,  is  amended  to
    48  read as follows:

    49    (a) Dates. For purposes of this article, any reference to the internal
    50  revenue code means the United States Internal Revenue Code of 1986, with
    51  all amendments enacted on or before July twenty-second, nineteen hundred
    52  ninety-eight,  and, unless specifically provided otherwise in this arti-
    53  cle, any reference to December thirty-first, nineteen  hundred  seventy-
    54  six  or  January  first, nineteen hundred seventy-seven contained in the
        S. 6610--C                         38                         A. 9710--D
 
     1  provisions of such code which are applicable to the determination of the
     2  tax imposed by this article shall be read as a reference to June thirti-
     3  eth, nineteen hundred seventy-eight  or  July  first,  nineteen  hundred
     4  seventy-eight,  respectively. Notwithstanding the foregoing, the unified

     5  credit against the estate tax provided in section two  thousand  ten  of
     6  the  internal  revenue  code shall, for purposes of this article, be the
     7  amount [allowed by such section under  the  applicable  federal  law  in
     8  effect on the decedent's date of death. Provided, however, the amount of
     9  such  credit allowable for purposes of this article shall not exceed the
    10  amount] allowable as if the federal [unified credit did not  exceed  the
    11  tax due under section two thousand one of the internal revenue code on a
    12  federal  taxable estate of] applicable exclusion amount were one million
    13  dollars.
    14    § 2. This act shall take effect immediately and shall apply to estates
    15  of decedents dying on or after January 1, 2010.
 
    16                                   PART U
 

    17    Intentionally omitted.
 
    18                                   PART V
 
    19    Section 1. The article heading of article 29-A  of  the  tax  law,  as
    20  added  by  section  1  of  part  E of chapter 25 of the laws of 2009, is
    21  amended to read as follows:
    22                   TAX ON MEDALLION TAXICAB [RIDES] TRIPS
    23            IN THE METROPOLITAN COMMUTER TRANSPORTATION DISTRICT
    24    § 2. Subdivisions (d), (e), (f) and (h) of section  1280  of  the  tax
    25  law,  as added by section 1 of part E of chapter 25 of the laws of 2009,
    26  are amended and six new subdivisions (i), (j), (k), (l), (m) and (n) are
    27  added to read as follows:
    28    (d) "Taxicab" means a motor vehicle [carrying passengers for  hire  in
    29  the  city,  duly]  licensed by the [taxi and limousine commission of the

    30  city] TLC to carry passengers for hire  and  [permitted]  authorized  to
    31  accept hails from prospective passengers in the street.
    32    (e)  "Taxicab [ride] trip" means a taxicab [ride] trip provided to one
    33  or more passengers [to a given destination] regardless of the number  of
    34  stops,  for  which  the  taximeter is required to be in the recording or
    35  hired position.
    36    (f) "Taxicab owner" or "owner" means a person [owning  a  taxicab  and
    37  shall  include  a  purchaser under a reserve title contract, conditional
    38  sales agreement or vendor's lien agreement. In addition, an owner  shall
    39  be deemed to include any lessee, licensee or bailee having the exclusive

    40  use  of  a  taxicab,  under a lease or otherwise, for a period of thirty
    41  days or more] licensed by  the  TLC  to  own  and  operate  a  medallion
    42  taxicab.
    43    (h)  "Taximeter"  [shall  include  any device which, when affixed to a
    44  motor vehicle, is so constructed as to operate as a fare indicator and a
    45  time and distance register for the purpose of automatically  determining
    46  the  charge for which a passenger becomes liable] means an instrument or
    47  device approved by the TLC by which the charge to a passenger  for  hire
    48  of  a  licensed  taxicab  is  automatically calculated and on which such
    49  charge is plainly indicated.
    50    (i) "TLC" means the taxi and limousine commission of the city.

    51    (j) "Agent" means a person that  acts,  by  employment,  contract,  or
    52  otherwise, on behalf of one or more taxicab owners to operate or provide
        S. 6610--C                         39                         A. 9710--D
 
     1  for the operation of a licensed medallion taxicab in accordance with the
     2  TLC's  rules.    "Agent" shall not include an attorney or representative
     3  who appears on behalf of one or more owners  before  the  TLC,  the  TLC
     4  hearing  tribunal,  the  commissioner, or the New York state division of
     5  tax appeals, and taxicab drivers licensed pursuant to  chapter  five  of
     6  title  nineteen  of the administrative code of the city of New York when
     7  acting in that capacity.

     8    (k) "Medallion" means a plate  issued  by  the  TLC  as  the  physical
     9  evidence  of a taxicab license, and affixed to the outside of such taxi-
    10  cab.
    11    (l) "Taxicab license" means the authority granted by  the  TLC  to  an
    12  owner to operate a designated vehicle as a taxicab in the city.
    13    (m)  "Trip  record," also known as a trip sheet or trip log, means the
    14  written, computerized, automated or electronic accounting of  a  taxicab
    15  ride.    The  trip  data to be transmitted or recorded shall include the
    16  taxicab license number (medallion number); the taxicab driver's  license
    17  number;  the  location  of trip initiation; the time of trip initiation;
    18  the number of passengers; the location of trip termination; the time  of

    19  trip  termination;  the  itemized  metered  fare  for  the  trip (tolls,
    20  surcharge, and tip if paid by credit or debit card); the distance of the
    21  trip, the trip number, the  method  of  payment,  the  total  number  of
    22  passengers,  as well as such other information as may be required by the
    23  TLC.
    24    (n) "Medallion taxicab" means a taxicab to which a medallion has  been
    25  affixed in accordance with applicable law and regulations.
    26    §  3.  Section 1281 of the tax law, as added by section 1 of part E of
    27  chapter 25 of the laws of 2009, is amended to read as follows:
    28    § 1281. Imposition of tax. In addition to any  other  tax  imposed  by
    29  this  chapter  or  other  law,  there is hereby imposed on every taxicab

    30  owner a tax of fifty cents per taxicab [ride] trip on every [ride]  trip
    31  that  originates in the city and terminates anywhere within the territo-
    32  rial boundaries of the MCTD.
    33    § 4. Section 1282 of the tax law, as added by section 1 of part  E  of
    34  chapter 25 of the laws of 2009, is amended to read as follows:
    35    §  1282.  Presumption  of  taxability.  For  the purpose of the proper
    36  administration of this article and to prevent evasion of the tax imposed
    37  by this article, it shall be presumed that  every  taxicab  [ride]  trip
    38  that  originates in the city is subject to the tax imposed by this arti-
    39  cle.  This presumption shall prevail until the contrary is  proven,  and
    40  the  burden  of  proving  the contrary shall be on the person liable for
    41  [payment of the] tax.

    42    § 5. Section 1283 of the tax law, as added by section 1 of part  E  of
    43  chapter 25 of the laws of 2009, is amended to read as follows:
    44    § 1283. [Special] Liability for tax; special provisions. Notwithstand-
    45  ing  any  [provisions]  provision of [this article] law to the contrary:
    46  (a) [If a taxicab owner subject to the tax imposed by this article leas-
    47  es, rents or otherwise furnishes a taxicab to an  unrelated  person  who
    48  uses the taxicab to provide taxicab rides originating in the city, then:
    49  (1)  the owner is deemed to provide such taxicab rides during the day or
    50  other period that the unrelated person uses the taxicab to provide  such
    51  rides;  (2)  the  tax  imposed  by this article shall be imposed on such

    52  owner; and (3) the owner must pay the tax imposed by this article on the
    53  number of rides subject to such tax provided by  such  unrelated  person
    54  during  the  day  or other period] The taxicab owner shall be liable for
    55  the tax imposed by this article. If the owner has designated  an  agent,
    56  then  the  agent  shall  be jointly liable with the owner for the tax on
        S. 6610--C                         40                         A. 9710--D
 
     1  trips occurring during the period that such designation  is  in  effect.
     2  Even  if  the TLC has specified that the owner's agent cannot operate as
     3  an agent, that agent shall be jointly liable with the owner if the agent
     4  has  acted  for the owner. During the period that an owner's designation

     5  of an agent is in effect, the agent shall file the returns  required  by
     6  this  article  and pay any tax due with such return, but the owner shall
     7  not be relieved of liability for tax, penalty or interest due under this
     8  article, or for the filing of returns required to be filed,  unless  the
     9  agent has timely filed accurate returns and timely paid the tax required
    10  to be paid under this article. If an owner has designated an agent, then
    11  the  agent  must  perform  any  act  this  article  requires an owner to
    12  perform, but the failure of such agent to perform any such act shall not
    13  relieve the owner from the obligation to perform such act  or  from  any
    14  liability that may arise from failure to perform the act.

    15    (b) [Notwithstanding any law to the contrary:] (1) Although the tax is
    16  imposed  on  the  taxicab owner, the [taxicab owner must pass along the]
    17  city or the TLC shall adopt or amend ordinances or regulations to ensure
    18  that the economic incidence of the tax is passed through to [the passen-
    19  ger] passengers, such as by [adjusting the fare for the ride,  and  the]
    20  increasing  taxicab trip fares. The passing along of such economic inci-
    21  dence may not be construed by any court or administrative body as impos-
    22  ing the tax on [the] any person [or entity that  pays  the  fare  for  a
    23  ride]  other than the taxicab owner.  [A] The city [that regulates taxi-

    24  cabs or taxicab fares] or the TLC must adjust [the] trip fares  [author-
    25  ized]  to  include therein the pass-through of the economic incidence of
    26  the tax imposed by this article, as the rate of such tax may  from  time
    27  to  time change, and must timely require that any taximeter in a taxicab
    28  used to provide [rides] trips that originate in the city be adjusted  to
    29  include the [tax] pass-through.
    30    (2)  A  taxicab owner in such city must timely adjust the taximeter in
    31  any of such person's taxicabs so that it reflects [the  tax  imposed  by
    32  this  article]  such pass-through as such [rate] pass-through amount may
    33  from time to time change.

    34    (3) Neither the failure of such city or the TLC to  adjust  fares  nor
    35  the  failure  of  a  taxicab owner or other person to adjust a taximeter
    36  will relieve any person liable for the tax imposed by this article  from
    37  the obligation to pay such tax timely, at the correct rate.
    38    [(c)  For  purposes of this section, "unrelated person" means a person
    39  other than a related person as defined for purposes of section  fourteen
    40  of this chapter.]
    41    §  6.  Section 1284 of the tax law, as added by section 1 of part E of
    42  chapter 25 of the laws of 2009, is amended to read as follows:
    43    § 1284. Returns. Every person liable for the tax imposed by this arti-
    44  cle shall file a return quarterly with  the  commissioner.  Each  return

    45  shall  show  the  number  of  [rides] trips in the quarter for which the
    46  return is filed, together with such other information as the commission-
    47  er may require. The returns required by this section shall be filed  for
    48  quarterly  periods ending on the last day of March, June, September, and
    49  December of each year, and each return shall be filed within twenty days
    50  after the end of the quarterly period covered thereby. Every such person
    51  shall also file a return with the commissioner for the period of  Novem-
    52  ber  and  December two thousand nine, by January twentieth, two thousand
    53  ten, containing the information described  above.  If  the  commissioner
    54  deems  it necessary in order to ensure the payment of the tax imposed by
    55  this article, the commissioner may require returns to be made for short-
    56  er periods than prescribed by the foregoing provisions of this  section,

        S. 6610--C                         41                         A. 9710--D
 
     1  and upon such dates as the commissioner may specify. The form of returns
     2  shall  be prescribed by the commissioner and shall contain such informa-
     3  tion as the commissioner may deem  necessary  for  the  proper  adminis-
     4  tration of this article. The commissioner may require amended returns to
     5  be  filed within twenty days after notice and to contain the information
     6  specified in the notice. The commissioner may require that  the  returns
     7  be filed electronically.
     8    §  7.  Section 1285 of the tax law, as added by section 1 of part E of
     9  chapter 25 of the laws of 2009, is amended to read as follows:
    10    § 1285. Payment of tax. Every person required to file a  return  under
    11  this  article  shall,  at  the  time  of  filing such return, pay to the

    12  commissioner the total of all  tax  imposed  by  this  article,  on  the
    13  correct  number  of [rides] trips subject to tax under this article. The
    14  amount so payable to the commissioner for the period for which a  return
    15  is  required to be filed shall be due and payable to the commissioner on
    16  the date limited for the filing of the return for such  period,  without
    17  regard to whether a return is filed or whether the return which is filed
    18  correctly shows the correct number of [rides] trips or the amount of tax
    19  due thereon. The commissioner may require that the tax be paid electron-
    20  ically.
    21    §  8.  Section 1286 of the tax law, as added by section 1 of part E of
    22  chapter 25 of the laws of 2009, is amended to read as follows:

    23    § 1286. Records to be kept. (a) Every person [required to pay]  liable
    24  for any tax imposed by this article shall keep:
    25    (1)  records  of every [ride] taxicab trip originating in the city and
    26  of all amounts paid, charged or due thereon and of the tax payable ther-
    27  eon, in such form as the commissioner may require[.  Every  such  person
    28  shall also keep];
    29    (2) a true and complete copy of every contract, agreement, or arrange-
    30  ment concerning the lease, rental, or license to use a taxicab for which
    31  the person is required to remit the tax on [rides] trips imposed by this
    32  article on such person;
    33    (3) a true and complete copy of every contract, agreement, or arrange-

    34  ment concerning the appointment of an agent;
    35    (4) true and complete copies of any records required to be kept by the
    36  TLC; and
    37    (5) such other records and information as the commissioner may require
    38  to perform his or her duties under this article.
    39    [Such]  (b)  The  records required to be kept by this section shall be
    40  available for inspection and examination at any time upon demand by  the
    41  commissioner or the commissioner's duly authorized agent or employee and
    42  shall  be preserved for a period of three years, except that the commis-
    43  sioner may consent to  their  destruction  within  that  period  or  may
    44  require  that  they  be kept longer. Such records may be kept within the
    45  meaning of this section when reproduced on any photographic,  photostat-

    46  ic, microfilm, micro-card, miniature photographic or other process which
    47  actually reproduces the original record. If those records are maintained
    48  in  an  electronic format, they must be made available and accessible to
    49  the commissioner in electronic format.
    50    § 9. Subdivision (b) of section 1287 of  the  tax  law,  as  added  by
    51  section  1  of  part  E of chapter 25 of the laws of 2009, is amended to
    52  read as follows:
    53    (b) Notwithstanding the provisions of subdivision (a) of this section,
    54  the commissioner may, in his or her discretion, permit the proper  offi-
    55  cer  of  [a]  the  city [that regulates taxicabs] or the duly authorized
    56  representative of such officer, to inspect any return filed  under  this
        S. 6610--C                         42                         A. 9710--D
 

     1  article,  or  may  furnish  to such officer or such officer's authorized
     2  representative an abstract of any such return or supply such person with
     3  information  concerning  an  item  contained  in  any  such  return,  or
     4  disclosed  by any investigation of tax liability under this article; but
     5  such permission shall be granted or such information furnished  only  if
     6  [such]  the  city  or the TLC shall have furnished the commissioner with
     7  all information requested by the commissioner pursuant to  this  article
     8  and  shall have permitted the commissioner or the commissioner's author-
     9  ized representative to make any inspection of  any  records  or  reports
    10  concerning  taxicabs  [and  their],  taxicab  owners [or operators], and

    11  agents filed with or possessed by such city or the TLC which the commis-
    12  sioner may have requested from such city or the TLC. Provided,  further,
    13  that the commissioner may disclose to the city or the TLC whether or not
    14  a  person liable for the tax imposed by this article has paid all of the
    15  tax due under this article as of any given date.
    16    § 10. Section 1289 of the tax law, as added by section 1 of part E  of
    17  chapter 25 of the laws of 2009, is amended to read as follows:
    18    § 1289. Cooperation by city. The city and the TLC shall cooperate with
    19  and  assist  the commissioner to effect the purposes of this article and
    20  the commissioner's responsibilities under this article. Such cooperation
    21  shall include furnishing the names, addresses and all other  information

    22  concerning  every taxicab owner, operator, and driver of taxicabs in the
    23  city, and concerning every agent and vehicle owner, and the trip records
    24  and other records of any of them, in the city's  possession  or  in  the
    25  possession  of  any  of its agencies or instrumentalities, together with
    26  any other information the commissioner requests, all without cost to the
    27  commissioner.
    28    § 11. Section 1290 of the tax law, as added by section 1 of part E  of
    29  chapter 25 of the laws of 2009, is amended to read as follows:
    30    § 1290. Practice and procedure. The provisions of article twenty-seven
    31  of  this  chapter  shall apply with respect to the administration of and
    32  procedure with respect to the tax imposed by this article  in  the  same
    33  manner  and  with  the  same force and effect as if the language of such

    34  article twenty-seven had been incorporated in full into this article and
    35  had expressly referred to the tax under  this  article,  except  to  the
    36  extent  that  any such provision is either inconsistent with a provision
    37  of this article or is not relevant to this article. [Criminal  penalties
    38  provided  in  section  one thousand eight hundred twenty of this chapter
    39  shall apply in the same manner and with the same force and  effect  with
    40  respect to this article.]
    41    §  12.  The tax law is amended by adding a new section 1821 to read as
    42  follows:
    43    § 1821. Medallion taxicab owners  tax  in  the  metropolitan  commuter
    44  transportation district. Any willful act or omission by any person which
    45  constitutes  a  violation  of  any provision of article twenty-nine-A of

    46  this chapter shall constitute a misdemeanor.
    47    § 13. Section 19-504 of the administrative code of  the  city  of  New
    48  York is amended by adding a new subdivision q to read as follows:
    49    q. Notwithstanding any contrary provision of law, the commission shall
    50  not  issue or renew a taxicab license unless the applicant or holder, as
    51  the case may be, avows under penalty of perjury  that  such  person  has
    52  fully  paid  all  and  any tax imposed on such person by article twenty-
    53  nine-A of the tax law. The commission may ask the commissioner of  taxa-
    54  tion  and  finance  for confirmation that such person has paid such tax.
    55  Nothing in this subdivision shall prevent a person  to  whom  a  taxicab
    56  license  has  been  issued from moving the medallion which evidences the

        S. 6610--C                         43                         A. 9710--D
 
     1  license to a standby vehicle if the TLC's regulations permit such person
     2  to do so.
     3    §  14.  This  act  shall  take effect July 1, 2010, and shall apply to
     4  taxicab trips commencing on or after that  date;  provided  that:    the
     5  provisions  of  article  29-A  of the tax law in existence prior to that
     6  date shall continue to apply to all liabilities accrued up to that date.
 
     7                                   PART W
 
     8    Section 1. Subdivision (e-1)  of  section  1132  of  the  tax  law  is
     9  REPEALED.
    10    § 2. This act shall take effect immediately and shall apply to credits
    11  taken and refunds claimed on or after July 1, 2010.
 
    12                                   PART X
 

    13    Section  1.  Paragraph 1 of subdivision (f) of section 1137 of the tax
    14  law, as amended by section 1 of part H of chapter  62  of  the  laws  of
    15  2006, is amended to read as follows:
    16    (1)  Except  as  otherwise  provided  in  this  subdivision,  a person
    17  required to collect tax who files a return required to  be  filed  under
    18  section eleven hundred thirty-six of this part for a quarterly or longer
    19  period  shall be allowed a credit against the taxes and fees required to
    20  be reported on, and paid with, such return, in an amount  as  determined
    21  in  paragraph  two of this subdivision, but only where such person files
    22  the return on or before the filing due date and pays or pays  over  with
    23  such  return  the  total  amount  shown  on such return (determined with
    24  regard to this subdivision); provided, however, that no credit  pursuant

    25  to  this  subdivision  shall  be  allowed for any person who files or is
    26  required to file a return pursuant to paragraph two of  subdivision  (a)
    27  of section eleven hundred thirty-six of this part or any person who pays
    28  or is required to pay tax pursuant to section ten of this chapter.
    29    § 2. This act shall take effect June 1, 2010; and shall apply to quar-
    30  terly periods, as described in subdivision (b) of section eleven hundred
    31  thirty-six of the tax law, beginning on or after such date.
 
    32                                   PART Y
 
    33    Section  1.  The tax law is amended by adding a new section 33 to read
    34  as follows:
    35    § 33. Temporary deferral of certain tax credits.  1. (a)  For  taxable
    36  years  beginning  on or after January first, two thousand ten and before

    37  January first, two  thousand  thirteen,  the  excess  over  two  million
    38  dollars  of the total amount of the tax credits specified in subdivision
    39  three of this section that in each of those taxable years  would  other-
    40  wise be used to reduce the taxpayer's tax liability to the amount other-
    41  wise specified in this chapter or be refunded or credited as an overpay-
    42  ment will be deferred to and used or refunded in taxable years beginning
    43  on  or after January first, two thousand thirteen in accordance with the
    44  provisions of section thirty-four of this article. Interest shall not be
    45  paid on the amounts of credit deferred.
    46    (b) To determine the amount of each tax credit allowed for the taxable

    47  year to be used, refunded or credited as  an  overpayment  the  taxpayer
    48  shall  multiply the amount of each credit subject to deferral that would
    49  have been used, refunded or credited as an overpayment in the absence of
    50  this section by a fraction,  the  numerator  of  which  is  two  million
        S. 6610--C                         44                         A. 9710--D
 
     1  dollars, and the denominator of which is the total amount of the taxpay-
     2  er's  credits  subject to deferral pursuant to subdivision three of this
     3  section that would have been used, refunded or credited as  an  overpay-
     4  ment for the taxable year in the absence of this section. The product is
     5  the  amount  of  such  credit  that  is not subject to deferral and thus

     6  allowed to be used, refunded or credited as an overpayment for the taxa-
     7  ble year.
     8    2. Taxpayers shall calculate  and  make  any  estimated  tax  payments
     9  required  to  be  made  by  taking  into account the deferral of credits
    10  required by this section. Taxpayers shall calculate any mandatory  first
    11  installment payments made on or after the effective date of this section
    12  as  if  the  deferral  of  credits  required by this section had been in
    13  effect for the taxable year upon which that  installment  is  based.  In
    14  addition,  for  taxable  years  beginning on or after January first, two
    15  thousand ten and before January first, two thousand eleven, (a) no addi-
    16  tion to tax under subsection (c) of section six hundred  eighty-five  of

    17  this  chapter  or  subsection (c) of section one thousand eighty-five of
    18  this chapter shall be imposed with respect to any underpayment attribut-
    19  able to the deferral required by this section  of  any  estimated  taxes
    20  that  are  required  to  be paid prior to the enactment of this section,
    21  provided that the taxpayer timely  made  those  payments;  and  (b)  the
    22  required  installment  of  estimated  tax  described  in  clause (ii) of
    23  subparagraph (B) of paragraph three of subsection  (c)  of  section  six
    24  hundred  eighty-five  of this chapter, and the exception to addition for
    25  underpayment of estimated tax described  in  paragraph  one  or  two  of
    26  subsection  (d)  of section one thousand eighty-five of this chapter, in

    27  relation to the preceding year's return, shall be calculated as  if  the
    28  deferral  required  by  this  section had been in effect for that entire
    29  preceding year.
    30    3. (a) This section shall apply  to  the  credits  allowed  under  the
    31  following  provisions in article nine-a of this chapter and any applica-
    32  ble counterpart provisions in articles nine, twenty-two, thirty-two  and
    33  thirty-three of this chapter:
    34    Section 210(12) investment tax credit
    35    Section 210(12-B) empire zone investment tax credit
    36    Section 210(12-C) empire zone employment incentive credit
    37    Section 210(12-D) employment incentive credit
    38    Section 210(12-E) QETC employment credit
    39    Section 210(12-F) QETC capital tax credit

    40    Section 210(12-G) QETC facilities, operations, and training credit
    41    Section 210(17) special additional mortgage recording tax credit
    42    Section 210(19) empire zone wage tax credit
    43    Section 210(20) empire zone capital tax credit
    44    Section 210(21-a) credit for servicing certain mortgages
    45    Section 210(23) credit for employment of persons with disabilities
    46    Section 210(24) alternative fuels credit
    47    Section 210(25) credit for purchase of an automated external defibril-
    48  lator
    49    Section 210(27) QEZE credit for real property taxes
    50    Section 210(28) QEZE tax reduction credit
    51    Section 210(30) low income housing credit
    52    Section 210(31) green building credit

    53    Section 210(33) brownfield redevelopment tax credit
    54    Section  210(34)  remediated brownfield credit for real property taxes
    55  for qualified sites
    56    Section 210(35) environmental remediation insurance credit
        S. 6610--C                         45                         A. 9710--D
 
     1    Section 210(37) security training tax credit
     2    Section  210(37)  credit  for  fuel cell electric generating equipment
     3  expenditures
     4    Section 210(38) conservation easement tax credit
     5    Section 210(38) empire state commercial production credit
     6    Section 210(38) biofuel production credit
     7    Section 210(39) clean heating fuel credit
     8    Section 210(40) credit for rehabilitation of historic properties

     9    Section 210(40) credit for companies  who  provide  transportation  to
    10  individuals with disabilities
    11    (b)  This  section  shall  also  apply  to  the credits allowed by the
    12  following sections:
    13    Section 186-a(9) power for jobs credit
    14    Section 606(g-1) solar energy system equipment credit
    15    Section 606(pp) historic homeownership rehabilitation credit
    16    Section 1511(k) credit for certain investments  in  certified  capital
    17  companies
    18    §  2.  The  tax  law  is amended by adding a new section 34 to read as
    19  follows:
    20    § 34. Temporary deferral payout credits.  1. The amounts of nonrefund-
    21  able credits that are deferred pursuant to section thirty-three of  this

    22  article in  taxable years beginning on or after January first, two thou-
    23  sand ten and before  January first, two thousand thirteen shall be accu-
    24  mulated  and constitute the  taxpayer's temporary deferral nonrefundable
    25  payout credit. The taxpayer may first claim this credit in  the  taxable
    26  year  beginning  on  or after January first,   two thousand thirteen and
    27  before January first, two thousand fourteen.  The    taxpayer  shall  be
    28  allowed   to  claim  this  credit  until  the  accumulated  amounts  are
    29  exhausted. The credit shall be allowed against  the  taxpayer's  tax  as
    30  provided  in  the  provisions referenced in paragraph (a) of subdivision
    31  three of this section.
    32    2. The amounts of refundable credits that  are  deferred  pursuant  to

    33  section  thirty-three  of  this article in taxable years beginning on or
    34  after January first, two thousand ten  and  before  January  first,  two
    35  thousand  thirteen  shall  be  accumulated and constitute the taxpayer's
    36  temporary deferral refundable payout  credit. In the taxable year begin-
    37  ning on or after January first, two thousand thirteen and before January
    38  first, two thousand fourteen, the taxpayer shall be allowed to  claim  a
    39  credit  equal to fifty percent of the amount accumulated. In the taxable
    40  year beginning on or after January  first,  two  thousand  fourteen  and
    41  before  January  first,  two  thousand  fifteen,  the  taxpayer shall be
    42  allowed to claim a credit equal to seventy-five percent of  the  balance

    43  of  the  amount  accumulated.  In the taxable year beginning on or after
    44  January first, two thousand fifteen and before January first, two  thou-
    45  sand  sixteen,  the taxpayer shall be allowed to claim a credit equal to
    46  the remaining balance of the amount accumulated.  The  credit  shall  be
    47  allowed  against the taxpayer's tax as provided in the provisions refer-
    48  enced in paragraph (b) of subdivision three of this section.
    49    3. (a) For application of the temporary deferral nonrefundable  payout
    50  credit, see the following provisions of this chapter:
    51    (1) Article 9: section 187-0
    52    (2) Article 9-A: section 210(41)
    53    (3) Article 22: section 606(qq)
    54    (4) Article 32: section 1456(v)

    55    (5) Article 33: section 1511(y)
        S. 6610--C                         46                         A. 9710--D
 
     1    (b)  For application of the temporary deferral refundable payout cred-
     2  it, see the following provisions of this chapter:
     3    (1) Article 9: section 187-p
     4    (2) Article 9-A: section 210(42)
     5    (3) Article 22: section 606(rr)
     6    (4) Article 32: section 1456(w)
     7    (5) Article 33: section 1511(z)
     8    § 3. The tax law is amended by adding two new sections 187-o and 187-p
     9  to read as follows:
    10    §  187-o. Temporary deferral nonrefundable payout credit. 1. Allowance
    11  of credit. A taxpayer shall be allowed  a  credit,  to  be  computed  as

    12  provided  in  subdivision  one  of  section thirty-four of this chapter,
    13  against either the taxes imposed by sections one  hundred  eighty-three,
    14  one hundred eighty-four, and one hundred eighty-five, or the tax imposed
    15  by section one hundred eighty-six-a of this article. However, the amount
    16  of  such  credit  against the tax imposed by section one hundred eighty-
    17  four of this article shall be the excess of the amount  of  that  credit
    18  over  the  amount  of any credit allowed by this section against the tax
    19  imposed by section one hundred eighty-three of this article.
    20    2. Application of credit. In no event  shall  the  credit  under  this
    21  section  be  allowed in an amount which will reduce the tax to less than

    22  the applicable minimum tax fixed by section one hundred eighty-three  or
    23  one  hundred  eighty-five  of  this  article. If, however, the amount of
    24  credit allowed under this section for any taxable year reduces  the  tax
    25  to such amount, any amount of credit not deductible in such taxable year
    26  may  be  carried over to the following year or years and may be deducted
    27  from the taxpayer's tax for such year or years.
    28    § 187-p. Temporary deferral refundable payout credit. 1.  Allowance of
    29  credit. A taxpayer shall be allowed a credit, to be computed as provided
    30  in subdivision two of section thirty-four of this chapter,  against  the
    31  taxes  imposed by sections one hundred eighty-three, one hundred eighty-

    32  four and one hundred eighty-five of this article, or the tax imposed  by
    33  section one hundred eighty-six-a of this article. However, the amount of
    34  such  credit  against the tax imposed by section one hundred eighty-four
    35  of this article shall be the excess of the amount of  that  credit  over
    36  the amount of any credit allowed by this section against the tax imposed
    37  by section one hundred eighty-three of this article.
    38    2.  Application  of  credit.  In  no event shall the credit under this
    39  section be allowed in an amount which will reduce the tax to  less  than
    40  the  applicable minimum tax fixed by section one hundred eighty-three or
    41  one hundred eighty-five of this article.  If,  however,  the  amount  of

    42  credit  allowed  under this section for any taxable year reduces the tax
    43  to such amount, any amount of credit not deductible in such taxable year
    44  shall be treated as an overpayment of tax to be refunded  in  accordance
    45  with  the provisions of section one thousand eighty-six of this chapter,
    46  provided however, that no interest shall be paid thereon.
    47    § 4. Section 210 of the tax law is amended by adding two new  subdivi-
    48  sions 41 and 42 to read as follows:
    49    41.  Temporary  deferral nonrefundable payout credit. (a) Allowance of
    50  credit. A taxpayer shall be allowed a credit, to be computed as provided
    51  in subdivision one of section thirty-four of this chapter,  against  the
    52  tax imposed by this article.

    53    (b)  Application  of credit. The credit allowed under this subdivision
    54  for any taxable year shall not reduce the tax due for that year to  less
    55  than  the  amount prescribed in paragraph (d) of subdivision one of this
    56  section.  However, if the amount of credit allowed under  this  subdivi-
        S. 6610--C                         47                         A. 9710--D
 
     1  sion  for any taxable year reduces the tax to such amount, any amount of
     2  credit thus not deductible in such taxable year may be carried  over  to
     3  the  following year or years and may be deducted from the taxpayer's tax
     4  for such year or years.
     5    42.  Temporary  deferral  refundable  payout  credit. (a) Allowance of

     6  credit. A taxpayer shall be allowed a credit, to be computed as provided
     7  in subdivision two of section thirty-four of this chapter,  against  the
     8  tax imposed by this article.
     9    (b)  Application  of  credit.  In no event shall the credit under this
    10  section be allowed in an amount which will reduce the tax to  less  than
    11  the  amount  prescribed  in  paragraph  (d)  of  subdivision one of this
    12  section. If, however, the amount of credit allowed  under  this  section
    13  for any taxable year reduces the tax to such amount, any amount of cred-
    14  it  not  deductible in such taxable year shall be treated as an overpay-
    15  ment of tax to be refunded in accordance with the provisions of  section

    16  one  thousand  eighty-six  of  this  chapter,  provided however, that no
    17  interest shall be paid thereon.
    18    § 5. Section 606  of  the  tax  law  is  amended  by  adding  two  new
    19  subsections (qq) and (rr) to read as follows:
    20    (qq)  Temporary deferral nonrefundable payout credit. (1) Allowance of
    21  credit. A taxpayer shall be allowed a credit, to be computed as provided
    22  in subdivision one of section thirty-four of this chapter,  against  the
    23  tax imposed by this article.
    24    (2)  If  the  amount of credit allowable under this subsection for any
    25  taxable year shall exceed the taxpayer's tax for such year,  the  excess
    26  may  be carried over to the following year or years, and may be deducted
    27  from the taxpayer's tax for such year or years.

    28    (rr) Temporary deferral refundable payout  credit.  (1)  Allowance  of
    29  credit. A taxpayer shall be allowed a credit, to be computed as provided
    30  in  subdivision  two of section thirty-four of this chapter, against the
    31  tax imposed by this article.
    32    (2) Application of credit. If the amount of the credit  allowed  under
    33  this subsection for any taxable year shall exceed the taxpayer's tax for
    34  such  year,  the  excess shall be treated as an overpayment of tax to be
    35  credited or refunded in accordance with the provisions  of  section  six
    36  hundred  eighty-six of this article, provided, however, that no interest
    37  shall be paid thereon.
    38    § 6. Section 1456 of  the  tax  law  is  amended  by  adding  two  new
    39  subsections (v) and (w) to read as follows:

    40    (v)  Temporary  deferral nonrefundable payout credit. (1) Allowance of
    41  credit. A taxpayer shall be allowed a credit, to be computed as provided
    42  in subdivision one of section thirty-four of this chapter,  against  the
    43  tax imposed by this article.
    44    (2)  Application  of credit. The credit allowed under this subdivision
    45  for any taxable year shall not reduce the tax due for that year to  less
    46  than the minimum tax fixed by subsection (b) of section fourteen hundred
    47  fifty-five  of  this  article.  However, if the amount of credit allowed
    48  under this subdivision for any taxable year  reduces  the  tax  to  such
    49  amount,  any  amount  of credit thus not deductible in such taxable year

    50  may be carried over to the following year or years and may  be  deducted
    51  from the taxpayer's tax for such year or years.
    52    (w)  Temporary  deferral  refundable  payout  credit. (1) Allowance of
    53  credit. A taxpayer shall be allowed a credit, to be computed as provided
    54  in subdivision two of section thirty-four of this chapter,  against  the
    55  tax imposed by this article.
        S. 6610--C                         48                         A. 9710--D
 
     1    (2)  Application  of  credit.  In no event shall the credit under this
     2  section be allowed in an amount which will reduce the tax to  less  than
     3  the  minimum  tax  fixed  by  subsection (b) of section fourteen hundred

     4  fifty-five of this article. If, however, the amount  of  credit  allowed
     5  under  this section for any taxable year reduces the tax to such amount,
     6  any amount of credit not deductible in such taxable year shall be treat-
     7  ed as an overpayment of tax  to  be  refunded  in  accordance  with  the
     8  provisions  of section one thousand eighty-six of this chapter, provided
     9  however, that no interest shall be paid thereon.
    10    § 7. Section 1511 of the tax law is amended by adding two new subdivi-
    11  sions (y) and (z) to read as follows:
    12    (y) Temporary deferral nonrefundable payout credit. (1)  Allowance  of
    13  credit. A taxpayer shall be allowed a credit, to be computed as provided
    14  in  subdivision  one of section thirty-four of this chapter, against the

    15  tax imposed by this article.
    16    (2) Application of credit. The credit allowed under  this  subdivision
    17  for  any taxable year shall not reduce the tax due for that year to less
    18  than the minimum tax fixed by  paragraph  four  of  subdivision  (a)  of
    19  section  fifteen  hundred  two  of  this  article  or by section fifteen
    20  hundred two-a of this article, whichever is applicable. However, if  the
    21  amount  of  credit  allowed  under this subdivision for any taxable year
    22  reduces the tax to such amount, any amount of credit thus not deductible
    23  in such taxable year may be carried over to the following year or  years
    24  and may be deducted from the taxpayer's tax for such year or years.
    25    (z)  Temporary  deferral  refundable  payout  credit. (1) Allowance of

    26  credit. A taxpayer shall be allowed a credit, to be computed as provided
    27  in subdivision two of section thirty-four of this chapter,  against  the
    28  tax imposed by this article.
    29    (2)  Application  of  credit.  In no event shall the credit under this
    30  section be allowed in an amount which will reduce the tax to  less  than
    31  the  minimum  tax  fixed by paragraph four of subdivision (a) of section
    32  fifteen hundred two of this article or by section fifteen hundred  two-a
    33  of  this  article,  whichever  is applicable. If, however, the amount of
    34  credit allowed under this section for any taxable year reduces  the  tax
    35  to such amount, any amount of credit not deductible in such taxable year

    36  shall  be  treated as an overpayment of tax to be refunded in accordance
    37  with the provisions of section one thousand eighty-six of this  chapter,
    38  provided however, that no interest shall be paid thereon.
    39    § 8. This act shall take effect immediately.
 
    40                                   PART Z
 
    41    Section  1.  Paragraph 11 of subsection (b) of section 1453 of the tax
    42  law, as added by chapter 817 of the laws of 1987, is amended to read  as
    43  follows:
    44    (11)  for  taxable  years beginning before January first, two thousand
    45  ten, in the case of a taxpayer subject  to  the  provisions  of  section
    46  585(c)  of  the internal revenue code, the amount allowed as a deduction
    47  pursuant to section 166 of such code, and
    48    § 2. Paragraph 12 of subsection (b) of section 1453 of the tax law, as

    49  added by chapter 817 of the laws of 1987, is amended to read as follows:
    50    (12) for taxable years beginning before January  first,  two  thousand
    51  ten,  for  taxpayers subject to the provisions of subsection (i) of this
    52  section, twenty percent of the  excess  of  (A)  the  amount  determined
    53  pursuant  to  such  subsection  (i) over (B) the amount which would have
        S. 6610--C                         49                         A. 9710--D
 
     1  been allowable had such institution maintained its bad debt reserve  for
     2  all taxable years on the basis of actual experience.
     3    § 3. Paragraph 13 of subsection (e) of section 1453 of the tax law, as
     4  added by chapter 817 of the laws of 1987, is amended to read as follows:
     5    (13)  for  taxable  years beginning before January first, two thousand

     6  ten, in the case of a taxpayer  which  recaptures  its  balance  of  the
     7  reserve  for losses on loans for federal income tax purposes pursuant to
     8  section 585(c) of  the  internal  revenue  code,  any  amount  which  is
     9  included  in  federal  taxable income pursuant to section 585(c) of such
    10  code,
    11    § 4. Paragraph 14 of subsection (e) of section 1453 of the tax law, as
    12  added by chapter 817 of the laws of 1987, is amended to read as follows:
    13    (14) for taxable years beginning before January  first,  two  thousand
    14  ten,  in  the  case  of  a taxpayer subject to the provisions of section
    15  585(c) of the internal revenue code, any amount  which  is  included  in
    16  federal taxable income as a result of a recovery of a loan.
    17    § 5. Paragraph 15 of subsection (e) of section 1453 of the tax law, as

    18  added by chapter 411 of the laws of 1996, is amended to read as follows:
    19    (15)  for  taxable  years beginning before January first, two thousand
    20  ten, in the case of a taxpayer which is currently or has previously been
    21  subject to subsection (h) of this section, any amount which is  included
    22  in  federal taxable income pursuant to section 593(e)(2) of the internal
    23  revenue code, and any other amount so included as a result of a recovery
    24  of or termination from the use of a  bad  debt  reserve  as  defined  in
    25  section 593 of such code as in existence on December thirty-first, nine-
    26  teen  hundred  ninety-five  as  a  result of federal legislation enacted
    27  after December thirty-first, nineteen hundred ninety-five.
    28    § 6. Paragraph 2 of subsection (h) of section 1453 of the tax law,  as
    29  amended  by  chapter  411  of  the  laws  of 1996, is amended to read as

    30  follows:
    31    (2) [A] For taxable years beginning before January first, two thousand
    32  ten, a thrift institution must  exclude  from  the  computation  of  its
    33  entire  net  income any amount allowed as a deduction for federal income
    34  tax purposes pursuant to sections 166, 585 or 593 of the internal reven-
    35  ue code.
    36    § 7. Paragraph 3 of subsection (h) of section 1453 of the tax law,  as
    37  amended  by  chapter  411  of  the  laws  of 1996, is amended to read as
    38  follows:
    39    (3) [A] For taxable years beginning before January first, two thousand
    40  ten, a thrift institution shall be allowed as a deduction  in  computing
    41  entire net income the amount of a reasonable addition to its reserve for
    42  bad debts. This amount shall be equal to the sum of

    43    (A)  the  amount determined to be a reasonable addition to the reserve
    44  for losses on nonqualifying loans, computed in the  same  manner  as  is
    45  provided  with  respect to additions to the reserves for losses on loans
    46  of banks under paragraph one of subsection (i) of this section, plus
    47    (B) the amount determined by the taxpayer to be a reasonable  addition
    48  to  the  reserve  for losses on qualifying real property loans, but such
    49  amount shall not exceed the amount determined under  paragraph  four  or
    50  five  of this subsection, whichever is the larger, but the amount deter-
    51  mined under this subparagraph shall in no case be greater than the larg-
    52  er of
    53    (i) the amount determined under such paragraph five, or
    54    (ii) the amount which, when  added  to  the  amount  determined  under
    55  subparagraph  (A)  of  this paragraph, equals the amount by which twelve

    56  percent of the total deposits or withdrawable accounts of depositors  of
        S. 6610--C                         50                         A. 9710--D
 
     1  the  taxpayer  at the close of such year exceeds the sum of its surplus,
     2  undivided profits and reserves at the beginning  of  such  year  (taking
     3  into  account  any portion thereof attributable to the period before the
     4  first  taxable  year  beginning  after  December  thirty-first, nineteen
     5  hundred fifty-one).
     6    The taxpayer must include in its tax return for each year  a  computa-
     7  tion  of  the  amount of the addition to the bad debt reserve determined
     8  under this subsection. The use of a particular method in the return  for
     9  a taxable year is not a binding election by the taxpayer.
    10    §  8. Paragraph 1 of subsection (i) of section 1453 of the tax law, as

    11  amended by chapter 411 of the laws  of  1996,  is  amended  to  read  as
    12  follows:
    13    (1) [A] For taxable years beginning before January first, two thousand
    14  ten,  a  taxpayer  subject  to  the  provisions of section 585(c) of the
    15  internal revenue code and not subject to subsection (h) of this  section
    16  may,  in  computing entire net income, deduct an amount equal to or less
    17  than the amount determined pursuant to subparagraph (A)  of  this  para-
    18  graph  or  subparagraph  (B)  of  this  paragraph, whichever is greater.
    19  Provided, however, in no event shall the  deduction  be  less  than  the
    20  amount determined pursuant to such subparagraph (A).
    21    (A)  The  amount determined pursuant to this subparagraph shall be the
    22  amount necessary to increase the balance of its  New  York  reserve  for

    23  losses  on  loans (at the close of the taxable year) to the amount which
    24  bears the same ratio to loans outstanding at the close  of  the  taxable
    25  year  as  (i)  the total bad debts sustained during the taxable year and
    26  the five preceding taxable years (or, with the approval of  the  commis-
    27  sioner  of  taxation and finance, a shorter period), adjusted for recov-
    28  eries of bad debts during such period, bears to  (ii)  the  sum  of  the
    29  loans outstanding at the close of such six or fewer taxable years.
    30    (B)  (i)  The amount determined pursuant to this subparagraph shall be
    31  the amount necessary to increase the balance of its New York reserve for
    32  losses on loans (at the close of the taxable year) to the lower of --
    33    (I) the balance of the reserve at the close of the base year, or
    34    (II) if the amount of loans outstanding at the close  of  the  taxable

    35  year  is  less  than the amount of loans outstanding at the close of the
    36  base year, the amount which bears the same ratio to loans outstanding at
    37  the close of the taxable year as the balance of the reserve at the close
    38  of the base year bears to the amount of loans outstanding at  the  close
    39  of the base year.
    40    (ii)  For  purposes  of this paragraph, the base year shall be (I) for
    41  taxable years beginning in nineteen hundred eighty-seven, the last taxa-
    42  ble year before the most recent adoption of the  experience  method  for
    43  federal  income  tax purposes or for purposes of this article, whichever
    44  is earlier, and (II) for taxable years beginning after nineteen  hundred
    45  eighty-seven,  the  last  taxable year beginning before nineteen hundred
    46  eighty-eight.
    47    § 9. Paragraph 2 of subsection (i) of section 1453 of the tax law,  as

    48  amended  by  chapter  411  of  the  laws  of 1996, is amended to read as
    49  follows:
    50    (2) (A) [Each] For taxable years beginning before January  first,  two
    51  thousand   ten,  each  taxpayer  described  in  paragraph  one  of  this
    52  subsection shall establish and maintain a New York reserve for losses on
    53  loans.   Such reserve shall be maintained  for  all  subsequent  taxable
    54  years.  The  balance  of the New York reserve for losses on loans at the
    55  beginning of the first day  of  the  first  taxable  year  the  taxpayer
    56  becomes  subject  to this subsection shall be the same as the balance at
        S. 6610--C                         51                         A. 9710--D
 
     1  the beginning of such day of the reserve for losses on loans  maintained
     2  for  federal  income  tax  purposes.  The New York reserve for losses on

     3  loans shall be reduced by an amount equal to the deduction allowed,  but
     4  not  more  than  the  amount  allowable, for worthless debts for federal
     5  income tax purposes pursuant to section 166 of the internal revenue code
     6  plus the amount, if any, charged against its reserve for losses on loans
     7  pursuant to section 585(c)(4) of such code.
     8    (B) For purposes of subparagraph (A) of  this  paragraph,  a  taxpayer
     9  which had previously been subject to the provisions of subsection (h) of
    10  this  section  shall  establish  a  New York reserve for losses on loans
    11  equal to the sum of (i) the greater of (I) the balance  of  its  federal
    12  reserve for losses on qualifying real property loans as of the first day
    13  of the first taxable year the taxpayer becomes subject to the provisions
    14  of  this  subsection or (II) the greater of the amounts determined under

    15  subparagraphs (A) and (B) of paragraph nine of subsection  (h)  of  this
    16  section  in  the  year  such paragraph applied to the taxpayer, (ii) the
    17  greater of (I) the balance in its federal reserve for losses on nonqual-
    18  ifying loans as of the first day of the first taxable year the  taxpayer
    19  becomes  subject  to this subsection or (II) the balance in its New York
    20  reserve for losses on nonqualifying  loans  as  of  the  last  date  the
    21  taxpayer was subject to the provisions of subsection (h) of this section
    22  and (iii) the balance in its supplemental reserve for losses on loans as
    23  of  the  last  date  the  taxpayer  was  subject  to  the  provisions of
    24  subsection (h) of this section.
    25    § 10. Paragraph 11 of subdivision (b) of section 11-641 of the  admin-
    26  istrative  code  of the city of New York, as added by chapter 525 of the
    27  laws of 1988, is amended to read as follows:

    28    (11) for taxable years beginning before January  first,  two  thousand
    29  ten,  in  the  case  of  a taxpayer subject to the provisions of section
    30  585(c) of the internal revenue code, the amount allowed as  a  deduction
    31  pursuant to section 166 of such code; and
    32    §  11. Paragraph 12 of subdivision (b) of section 11-641 of the admin-
    33  istrative code of the city of New York, as added by chapter 525  of  the
    34  laws of 1988, is amended to read as follows:
    35    (12)  for  taxable  years beginning before January first, two thousand
    36  ten, for taxpayers subject to the provisions of subdivision (i) of  this
    37  section,  twenty  percent  of  the  excess  of (A) the amount determined
    38  pursuant to such subdivision (i) over (B) the amount  which  would  have
    39  been  allowable had such institution maintained its bad debt reserve for

    40  all taxable years on the basis of actual experience.
    41    § 12. Paragraph 13 of subdivision (e) of section 11-641 of the  admin-
    42  istrative  code  of the city of New York, as added by chapter 525 of the
    43  laws of 1988, is amended to read as follows:
    44    (13) for taxable years beginning before January  first,  two  thousand
    45  ten,  in  the  case  of  a  taxpayer which recaptures its balance of the
    46  reserve for losses on loans for federal income tax purposes pursuant  to
    47  section  585(c)  of  the  internal  revenue  code,  any  amount which is
    48  included in federal taxable income pursuant to section  585(c)  of  such
    49  code,
    50    §  13. Paragraph 14 of subdivision (e) of section 11-641 of the admin-
    51  istrative code of the city of New York, as added by chapter 525  of  the
    52  laws of 1988, is amended to read as follows:

    53    (14)  for  taxable  years beginning before January first, two thousand
    54  ten, in the case of a taxpayer subject  to  the  provisions  of  section
    55  585(c)  of  the  internal  revenue code, any amount which is included in
    56  federal taxable income as a result of a recovery of a loan.
        S. 6610--C                         52                         A. 9710--D
 
     1    § 14. Paragraph 15 of subdivision (e) of section 11-641 of the  admin-
     2  istrative  code  of  the city of New York, as added by chapter 18 of the
     3  laws of 1997, is amended to read as follows:
     4    (15)  for  taxable  years beginning before January first, two thousand
     5  ten, in the case of a taxpayer which is currently or has previously been
     6  subject to subdivision (h) of this section, any amount which is included

     7  in federal taxable income pursuant to section 593(e)(2) of the  internal
     8  revenue code, and any other amount so included as a result of a recovery
     9  of  or  termination  from  the  use  of a bad debt reserve as defined in
    10  section 593 of such code as in existence on December thirty-first, nine-
    11  teen hundred ninety-five as a  result  of  federal  legislation  enacted
    12  after December thirty-first, nineteen hundred ninety-five.
    13    § 15. Paragraph 2 of subdivision (h) of section 11-641 of the adminis-
    14  trative  code  of  the city of New York, as amended by chapter 18 of the
    15  laws of 1997, is amended to read as follows:
    16    (2) [A] For taxable years beginning before January first, two thousand
    17  ten, a thrift institution must  exclude  from  the  computation  of  its
    18  entire  net  income any amount allowed as a deduction for federal income

    19  tax purposes pursuant to section 166, 585 or 593 of the internal revenue
    20  code.
    21    § 16. Paragraph 3 of subdivision (h) of section 11-641 of the adminis-
    22  trative code of the city of New York, as amended by chapter  18  of  the
    23  laws of 1997, is amended to read as follows:
    24    (3) [A] For taxable years beginning before January first, two thousand
    25  ten,  a  thrift institution shall be allowed as a deduction in computing
    26  entire net income the amount of a reasonable addition to its reserve for
    27  bad debts. This amount shall be equal to the sum of
    28    (A) the amount determined to be a reasonable addition to  the  reserve
    29  for  losses  on  nonqualifying  loans, computed in the same manner as is
    30  provided with respect to additions to the reserves for losses  on  loans
    31  of banks under paragraph one of subdivision (i) of this section, plus

    32    (B)  the amount determined by the taxpayer to be a reasonable addition
    33  to the reserve for losses on qualifying real property  loans,  but  such
    34  amount  shall  not  exceed the amount determined under paragraph four or
    35  five of this subdivision, whichever is the larger, but the amount deter-
    36  mined under this subparagraph shall in no case be greater than the larg-
    37  er of
    38    (i) the amount determined under paragraph five of this subdivision, or
    39    (ii) the amount which, when  added  to  the  amount  determined  under
    40  subparagraph  (A)  of  this paragraph, equals the amount by which twelve
    41  percent of the total deposits or withdrawable accounts of depositors  of
    42  the  taxpayer  at the close of such year exceeds the sum of its surplus,
    43  undivided profits and reserves at the beginning  of  such  year  (taking
    44  into  account  any portion thereof attributable to the period before the

    45  first taxable  year  beginning  after  December  thirty-first,  nineteen
    46  hundred fifty-one).
    47    The  taxpayer  must include in its tax return for each year a computa-
    48  tion of the amount of the addition to the bad  debt  reserve  determined
    49  under this subdivision. The use of a particular method in the return for
    50  a taxable year is not a binding election by the taxpayer.
    51    § 17. Paragraph 1 of subdivision (i) of section 11-641 of the adminis-
    52  trative  code  of  the city of New York, as amended by chapter 18 of the
    53  laws of 1997, is amended to read as follows:
    54    (1) [A] For taxable years beginning before January first, two thousand
    55  ten, a taxpayer subject to the  provisions  of  section  585(c)  of  the
    56  internal revenue code and not subject to subdivision (h) of this section

        S. 6610--C                         53                         A. 9710--D
 
     1  may,  in  computing entire net income, deduct an amount equal to or less
     2  than the amount determined pursuant to subparagraph (A)  of  this  para-
     3  graph  or  subparagraph  (B)  of  this  paragraph, whichever is greater.
     4  Provided,  however,  in  no  event  shall the deduction be less than the
     5  amount determined pursuant to such subparagraph (A).
     6    (A) The amount determined pursuant to this subparagraph shall  be  the
     7  amount  necessary  to  increase  the balance of its New York reserve for
     8  losses on loans (at the close of the taxable year) to the  amount  which
     9  bears  the  same  ratio to loans outstanding at the close of the taxable
    10  year as (i) the total bad debts sustained during the  taxable  year  and
    11  the  five  preceding taxable years (or, with the approval of the commis-

    12  sioner of finance, a shorter period), adjusted  for  recoveries  of  bad
    13  debts during such period, bears to (ii) the sum of the loans outstanding
    14  at the close of such six or fewer taxable years.
    15    (B)(i)  The  amount  determined pursuant to this subparagraph shall be
    16  the amount necessary to increase the balance of its New York reserve for
    17  losses on loans (at the close of the taxable year) to the lower of --
    18    (I) the balance of the reserve at the close of the base year, or
    19    (II) if the amount of loans outstanding at the close  of  the  taxable
    20  year  is  less  than the amount of loans outstanding at the close of the
    21  base year, the amount which bears the same ratio to loans outstanding at
    22  the close of the taxable year as the balance of the reserve at the close
    23  of the base year bears to the amount of loans outstanding at  the  close
    24  of the base year.

    25    (ii)  For  purposes  of this paragraph, the base year shall be (I) for
    26  taxable years beginning in nineteen hundred eighty-seven, the last taxa-
    27  ble year before the most recent adoption of the  experience  method  for
    28  federal  income  tax purposes or for purposes of this part, whichever is
    29  earlier, and (II) for taxable years  beginning  after  nineteen  hundred
    30  eighty-seven,  the  last  taxable year beginning before nineteen hundred
    31  eighty-eight.
    32    § 18. Paragraph 2 of subdivision (i) of section 11-641 of the adminis-
    33  trative code of the city of New York, as amended by chapter  18  of  the
    34  laws of 1997, is amended to read as follows:
    35    (2)  (A)  [Each] For taxable years beginning before January first, two
    36  thousand ten, each taxpayer described in paragraph one of this  subdivi-

    37  sion  shall  establish  and  maintain  a  New York reserve for losses on
    38  loans.   Such reserve shall be maintained  for  all  subsequent  taxable
    39  years.  The  balance  of the New York reserve for losses on loans at the
    40  beginning of the first day  of  the  first  taxable  year  the  taxpayer
    41  becomes  subject to this subdivision shall be the same as the balance at
    42  the beginning of such day of the reserve for losses on loans  maintained
    43  for  federal  income  tax  purposes.  The New York reserve for losses on
    44  loans shall be reduced by an amount equal to the deduction allowed,  but
    45  not  more  than  the  amount  allowable, for worthless debts for federal
    46  income tax purposes pursuant to section 166 of the internal revenue code
    47  plus the amount, if any, charged against its reserve for losses on loans
    48  pursuant to section 585(c)(4) of such code.

    49    (B) For purposes of subparagraph (A) of  this  paragraph,  a  taxpayer
    50  which  had  previously been subject to the provisions of subdivision (h)
    51  of this section shall establish a New York reserve for losses  on  loans
    52  equal  to  the  sum of (i) the greater of (I) the balance of its federal
    53  reserve for losses on qualifying real property loans as of the first day
    54  of the first taxable year the taxpayer becomes subject to the provisions
    55  of this subdivision or (II) the greater of the amounts determined  under
    56  subparagraphs  (A)  and (B) of paragraph nine of subdivision (h) of this
        S. 6610--C                         54                         A. 9710--D
 
     1  section in the year such paragraph applied to  the  taxpayer,  (ii)  the
     2  greater of (I) the balance in its federal reserve for losses on nonqual-

     3  ifying  loans as of the first day of the first taxable year the taxpayer
     4  becomes  subject to this subdivision or (II) the balance in its New York
     5  reserve for losses on nonqualifying  loans  as  of  the  last  date  the
     6  taxpayer  was  subject  to  the  provisions  of  subdivision (h) of this
     7  section, and (iii) the balance in its supplemental reserve for losses on
     8  loans as of the last date the taxpayer was subject to the provisions  of
     9  subdivision (h) of this section.
    10    § 19. This act shall take effect immediately.
 
    11                                   PART AA
 
    12    Section 1. Statement of legislative findings and purposes. It is here-
    13  by  found  and declared that New York's Tax Law should be updated to put
    14  room remarketers on the same footing as hotel operators  for  sales  tax
    15  purposes.  In  recent  years,  more and more consumers are booking their

    16  hotel rooms through room remarketers and paying them instead of  obtain-
    17  ing the hotel room directly from hotel operators. Room remarketers enter
    18  into  agreements  with  New York hotel operators to resell rooms through
    19  the remarketers' websites and toll-free  numbers.  The  State  currently
    20  receives no tax on the remarketers' markup on the room, giving remarket-
    21  ers  a  competitive advantage over hotels using conventional reservation
    22  methods. This bill would make clear that the right to "resell" the occu-
    23  pancy, as well as the physical occupancy of a hotel room, are both taxa-
    24  ble, thus removing the tax advantage  that  room  remarketers  currently
    25  have  over  hotel  operators.  The bill would also amend New York City's
    26  locally-administered hotel room occupancy tax to conform it to the meth-
    27  odology of the State tax in regard to room remarketers.

    28    § 2. Paragraphs 2, 3, 4 and 6 of subdivision (c) of  section  1101  of
    29  the  tax law, as added by chapter 93 of the laws of 1965, are amended to
    30  read as follows:
    31    (2) Occupancy. The use or possession, or  the  right  to  the  use  or
    32  possession,  of  any  room in a hotel.  "Right to the use or possession"
    33  includes the rights of a room remarketer as described in paragraph eight
    34  of this subdivision.
    35    (3) Occupant. A person who, for a consideration, uses,  possesses,  or
    36  has  the  right  to use or possess, any room in a hotel under any lease,
    37  concession, permit, right of access, license to use or other  agreement,
    38  or  otherwise.   "Right to use or possess" includes the rights of a room
    39  remarketer as described in paragraph eight of this subdivision.

    40    (4) Operator. Any person operating a hotel.  Such term shall include a
    41  room remarketer and such room remarketer shall be deemed  to  operate  a
    42  hotel,  or  portion  thereof,  with respect to which such person has the
    43  rights of a room remarketer.
    44    (6) Rent. The consideration  received  for  occupancy,  including  any
    45  service or other charge or amount required to be paid as a condition for
    46  occupancy,  valued  in money, whether received in money or otherwise and
    47  whether received by the operator or a room remarketer or another  person
    48  on behalf of either of them.
    49    §  3.  Subdivision  (c)  of  section 1101 of the tax law is amended by
    50  adding a new paragraph 8 to read as follows:

    51    (8) Room remarketer.  A person who reserves, arranges for, conveys, or
    52  furnishes occupancy, whether directly or indirectly, to an occupant  for
    53  rent  in  an amount determined by the room remarketer, directly or indi-
    54  rectly, whether pursuant to a written or other agreement. Such  person's
        S. 6610--C                         55                         A. 9710--D
 
     1  ability  or  authority to reserve, arrange for, convey, or furnish occu-
     2  pancy, directly or indirectly, and to determine rent therefor, shall  be
     3  the  "rights of a room remarketer". A room remarketer is not a permanent
     4  resident  with respect to a room for which such person has the rights of
     5  a room remarketer.

     6    § 4. Subdivision (e) of section 1105 of the tax  law,  as  amended  by
     7  chapter 72 of the laws of 1971, is amended to read as follows:
     8    (e)  (1) The rent for every occupancy of a room or rooms in a hotel in
     9  this state, except that the tax shall not be imposed upon  [(1)]  (i)  a
    10  permanent resident, or [(2)] (ii) where the rent is not more than at the
    11  rate of two dollars per day.
    12    (2) When occupancy is provided, for a single consideration, with prop-
    13  erty, services, amusement charges, or any other items, the separate sale
    14  of  which is not subject to tax under this article, the entire consider-
    15  ation shall be treated as rent subject to tax  under  paragraph  one  of
    16  this  subdivision;  provided, however, that where the amount of the rent

    17  for occupancy is stated separately from  the  price  of  such  property,
    18  services, amusement charges, or other items, on any sales slip, invoice,
    19  receipt, or other statement given the occupant, and such rent is reason-
    20  able  in  relation  to  the  value of such property, services, amusement
    21  charges or other items, only such separately stated rent will be subject
    22  to tax under paragraph one of this subdivision.
    23    § 5. Section 1119 of the tax law is amended by adding a  new  subdivi-
    24  sion (e) to read as follows:
    25    (e)  Subject  to  conditions and limitations provided in this subdivi-
    26  sion, a room remarketer shall be allowed a refund or credit against  the
    27  amount of tax collected and required to be remitted under section eleven

    28  hundred thirty-seven of this article in the amount of the tax it paid to
    29  an  operator  of a hotel under section eleven hundred four of this arti-
    30  cle, where applicable, and subdivision (e)  of  section  eleven  hundred
    31  five of this article. Provided, however, that, in order to qualify for a
    32  refund  or  credit  under  this  subdivision for any sales tax quarterly
    33  period, the room remarketer must, for that quarter,  (1)  be  registered
    34  for  sales tax purposes under section eleven hundred thirty-four of this
    35  article; (2) collect the taxes imposed by section eleven hundred four of
    36  this article, where applicable, and subdivision (e)  of  section  eleven
    37  hundred five of this article; and (3) furnish the certificate of author-

    38  ity  number  of  the  operator to whom the applicant paid the tax in its
    39  application for refund or credit  if  required  on  that  form  or  upon
    40  request. An application for refund or credit under this subdivision must
    41  be  filed  with the commissioner within the time provided by subdivision
    42  (a) of section eleven hundred thirty-nine of this article. The  applica-
    43  tion must be in the form prescribed by the commissioner. Where an appli-
    44  cation for credit has been filed, the applicant may immediately take the
    45  credit  on  the return that is due coincident with or immediately subse-
    46  quent to the time that the applicant files the application  for  credit.
    47  However,  the taking of the credit on the return is deemed to be part of

    48  the application for credit. The procedure for granting  or  denying  the
    49  applications  for  refund  or  credit and review of those determinations
    50  shall be as provided in subdivision (e) of section eleven hundred  thir-
    51  ty-nine  of  this article. An operator, including a room remarketer, who
    52  is paid tax by a room remarketer must upon request provide the remarket-
    53  er with its certificate of authority number, provided  that  the  opera-
    54  tor's  failure  to  do  so  does not change the requirement set forth in
    55  paragraph three of this subdivision.
        S. 6610--C                         56                         A. 9710--D
 
     1    § 6. Subdivisions 2, 3, 4, 7 and 12 of section 11-2501 of the adminis-

     2  trative code of the city of New  York,  subdivision  7  as  amended  and
     3  subdivision  12  as added by local law number 43 of the city of New York
     4  for the year 2009, are amended to read as follows:
     5    2.  "Operator."  Any person operating a hotel in the city of New York,
     6  including, but not limited to, the owner or proprietor of such premises,
     7  lessee, sublessee, [mortgage] mortgagee in possession, licensee  or  any
     8  other person otherwise operating such hotel.
     9    3.  "Occupant." A person who, for a consideration, uses, possesses, or
    10  has the right to use or possess, any room or rooms in a hotel under  any
    11  lease,  concession,  permit,  right  of  access, license to use or other
    12  agreement, or otherwise.  "Right to use or possess" includes the  rights
    13  of a room remarketer as described in subdivision twelve of this section.

    14    4.  "Occupancy."  The  use  or  possession, or the right to the use or
    15  possession of any room or rooms in a hotel, or the right to the  use  or
    16  possession  of  the  furnishings  or  to the services and accommodations
    17  accompanying the use and possession of the room or rooms.  "Right to the
    18  use or possession" includes the rights of a room remarketer as described
    19  in subdivision twelve of this section.
    20    7. "Rent." The consideration received for occupancy valued  in  money,
    21  whether  received  in  money or otherwise, including all receipts, cash,
    22  credits, and property or services of any kind or nature,  including  any
    23  service  [and/or  booking  fees  that  are]  or  other  charge or amount
    24  required to be paid as a condition [of]  for  occupancy,  and  also  any

    25  amount for which credit is allowed by the operator or room remarketer to
    26  the  occupant,  without  any  deduction  therefrom  whatsoever,  whether
    27  received by the operator or a  room  remarketer  or  another  person  on
    28  behalf of either of them.
    29    12. "Room remarketer." [Any person, excluding the operator, having any
    30  right,  access, ability or authority, through an internet transaction or
    31  any other means whatsoever, to offer, reserve, book, arrange for, remar-
    32  ket, distribute, broker, resell, or facilitate the transfer of rooms the
    33  occupancy of which is subject to tax under this chapter.] A  person  who
    34  reserves, arranges for, conveys, or furnishes occupancy, whether direct-
    35  ly  or  indirectly,  to  an occupant for rent in an amount determined by

    36  such room remarketer, directly or  indirectly,  whether  pursuant  to  a
    37  written  or  other  agreement.  Such  person's  ability  or authority to
    38  reserve, arrange for, convey, or furnish occupancy,  directly  or  indi-
    39  rectly,  and  to determine rent therefor, shall be the "rights of a room
    40  remarketer". A room remarketer is not a permanent resident with  respect
    41  to a room for which such person has the rights of a room remarketer.
    42    §  7.  Subdivisions 13 and 14 of section 11-2501 of the administrative
    43  code of the city of New York are REPEALED.
    44    § 8. Paragraphs 4 and 5 of subdivision a of  section  11-2502  of  the
    45  administrative  code  of  the  city of New York, as amended by local law
    46  number 43 of the city of New York for the year 2009, are amended to read
    47  as follows:

    48    (4) [Where the occupancy of a room is reserved,  booked  or  otherwise
    49  arranged for by a room remarketer, the tax imposed by paragraph three of
    50  this subdivision shall be determined based on the rent received from the
    51  occupant by the room remarketer. In such a transaction, the room remark-
    52  eter  shall  collect  from  the  occupant and remit to the operator that
    53  portion of the tax that is determined based upon the net rent,  and  the
    54  operator  shall  pay  such  portion  of  the  tax to the commissioner of
    55  finance. The room remarketer shall collect from the occupant and pay  to
    56  the  commissioner  of finance that portion of the tax that is determined
        S. 6610--C                         57                         A. 9710--D


     1  based upon the additional rent.]  When  occupancy  is  provided,  for  a
     2  single consideration, with property, services, amusement charges, or any
     3  other items, the separate sale of which is not subject to tax under this
     4  chapter,  the  entire  consideration shall be treated as rent subject to
     5  tax under paragraph one of this  subdivision;  provided,  however,  that
     6  where the amount of the rent for occupancy is stated separately from the
     7  price  of  such  property, services, amusement charges or other items on
     8  any sales slip, invoice, receipt, or other statement given the  occupant
     9  and  such  rent is reasonable in relation to the value of such property,
    10  services, amusement charges, or other items, only such separately stated

    11  rent will be subject to tax under paragraph one of this subdivision.
    12    (5) A room remarketer shall be allowed a refund or credit against  the
    13  taxes  collected and required to be remitted pursuant to section 11-2505
    14  of this chapter in the amount of the tax it paid to the operator of  the
    15  hotel  or another room remarketer under paragraph three of this subdivi-
    16  sion. Provided, however, that in order to qualify for a refund or credit
    17  under this paragraph with respect to any quarterly period, as  described
    18  in subdivision a of section 11-2504 of this chapter, the room remarketer
    19  must,  with  respect  to  such quarter, (i) be registered for hotel room
    20  occupancy tax purposes under section 11-2514 of this chapter,  and  (ii)

    21  collect  the  taxes imposed by paragraphs two and three of this subdivi-
    22  sion. Subject to the conditions and limitations of this  paragraph,  the
    23  provisions  of section 11-2507 of this chapter shall apply to refunds or
    24  credits under this paragraph.
    25    (6) Where the rent is paid or charged  or  billed,  or  falls  due  on
    26  either  a weekly, monthly or other term basis, the daily rent upon which
    27  the tax is determined shall be the result obtained by dividing the  rent
    28  for  such term by the number of days in such term. Where the rent is for
    29  more than one room, including but not limited to a suite of  rooms,  the
    30  daily  rent per room upon which tax is determined shall be calculated by
    31  multiplying the daily rent for the group of rooms  by  a  fraction,  the
    32  numerator of which shall be the daily rent for the particular room, or a

    33  similar  room,  when such room is rented alone with similar bath facili-
    34  ties, and the denominator of which shall be the total of the daily  rent
    35  for  the  individual rooms in the group of rooms, or similar rooms, when
    36  such rooms are rented alone with similar bath facilities. In any case in
    37  which it is not possible to determine the daily rent  per  room  in  the
    38  foregoing  manner,  the  commissioner of finance shall prescribe methods
    39  for making such determination.
    40    § 9. Paragraph 2 of subdivision f of section 11-2502 of  the  adminis-
    41  trative code of the city of New York is REPEALED and paragraph 3 of such
    42  subdivision is renumbered paragraph 2.
    43    §  10.  Subdivision a of section 11-2507 of the administrative code of
    44  the city of New York, as amended by local law number 43 of the  city  of
    45  New York for the year 2009, is amended to read as follows:

    46    a.  In the manner provided in this section the commissioner of finance
    47  shall refund or credit, without interest, any tax, penalty  or  interest
    48  erroneously,  illegally or unconstitutionally collected or paid if writ-
    49  ten application to the commissioner of finance for such refund shall  be
    50  made  within  one  year  from the payment thereof.  Whenever a refund or
    51  credit is made or denied by the commissioner of finance, he or she shall
    52  state his or her reasons therefor and give notice thereof to the taxpay-
    53  er in writing. Such application may be made by the  occupant,  operator,
    54  room  remarketer  or  other  person  who  has  actually paid the tax [or
    55  portion of the tax] to the commissioner of finance. Such application may
    56  also be made by an operator or room remarketer  who  has  collected  and

        S. 6610--C                         58                         A. 9710--D
 
     1  paid  over  such  tax  [or  portion  of such tax] to the commissioner of
     2  finance provided that the application is made within  one  year  of  the
     3  payment by the occupant to the operator or room remarketer, but no actu-
     4  al  refund  of  moneys shall be made to such operator or room remarketer
     5  until he or she shall first establish to the satisfaction of the commis-
     6  sioner of finance, under such regulations as the commissioner of finance
     7  may prescribe, that he or she has repaid to the occupant the amount  for
     8  which  the  application for refund is made.  The commissioner of finance
     9  may, in lieu of any refund required to be made, allow credit therefor on
    10  payments due from the applicant.
    11    § 11. Paragraph 1 of subdivision (h) of section 11-2515 of the  admin-

    12  istrative  code  of the city of New York, as amended by local law number
    13  43 of the city of New York for the year 2009,  is  amended  to  read  as
    14  follows:
    15    (1)  Officers  of a corporate operator or room remarketer and partners
    16  in a partnership which is  an  operator  or  room  remarketer  shall  be
    17  personally  liable  for  the  tax  [or portion of such tax] collected or
    18  required to be collected by such corporation or partnership  under  this
    19  chapter,  and  subject  to  the  penalties  and interest imposed by this
    20  section.
    21    § 12. This act shall take effect September 1, 2010 and shall apply  in
    22  accordance  with the applicable transitional provisions of sections 1106
    23  and 1217 of the tax law.
 
    24                                   PART BB
 
    25    Intentionally omitted.
 
    26                                   PART CC
 

    27    Section 1. Paragraph 1 of subsection (c) of section  615  of  the  tax
    28  law,  as  amended by chapter 497 of the laws of 1997, is amended to read
    29  as follows:
    30    (1) state and local general sales taxes as defined in  subsection  (b)
    31  of  section  one hundred sixty-four of the internal revenue code, to the
    32  extent included in federal itemized deductions or income  taxes  imposed
    33  by  this  state  or  any other taxing jurisdiction, except city earnings
    34  taxes on nonresidents that are imposed upon and paid  by  taxpayers  for
    35  taxable  years  beginning  after December thirty-first, nineteen hundred
    36  seventy and before January first, two thousand, pursuant to the authori-
    37  ty of former section twenty-five-m of  the  general  city  law,  to  the
    38  extent  that  the  amount of such tax exceeds the tax computed as if the

    39  rates were one-fourth of one percent of wages subject to tax and  three-
    40  eighths  of  one percent of net earnings from self-employment subject to
    41  tax;
    42    § 2. Paragraph 1 of subdivision (c) of section 11-1715 of the adminis-
    43  trative code of the city of New York, as amended by chapter 497  of  the
    44  laws of 1997, is amended to read as follows:
    45    (1)  state  and local general sales taxes as defined in subsection (b)
    46  of section one hundred sixty-four of the internal revenue code,  to  the
    47  extent  included  in federal itemized deductions or income taxes imposed
    48  by this city or any other  taxing  jurisdiction,  except  city  earnings
    49  taxes  on  nonresidents  that are imposed upon and paid by taxpayers for
    50  taxable years beginning after December  thirty-first,  nineteen  hundred

    51  seventy and before January first, two thousand, pursuant to the authori-
    52  ty  of  former  section  twenty-five-m  of  the general city law, to the
        S. 6610--C                         59                         A. 9710--D
 
     1  extent that the amount of such tax exceeds the tax computed  as  if  the
     2  rates  were one-fourth of one percent of wages subject to tax and three-
     3  eighths of one percent of net earnings from self-employment  subject  to
     4  tax;
     5    § 3. This act shall take effect immediately and shall apply to taxable
     6  years beginning on or after January 1, 2010.
 
     7                                   PART DD
 
     8    Intentionally omitted.
 
     9                                   PART EE
 
    10    Section  1. Subdivision 1 of section 54-f of the state finance law, as
    11  added by section 139 of part A of chapter 389 of the laws  of  1997,  is

    12  amended to read as follows:
    13    1. Except as otherwise provided by law, the provisions of this section
    14  shall  be utilized by the state to calculate the annual amount due to be
    15  paid to the city of New York by the state to reimburse such city for tax
    16  receipts foregone (a) as a result of a chapter of the laws  of  nineteen
    17  hundred  ninety-seven  that reduced the rates of tax imposed pursuant to
    18  authority granted under section thirteen hundred one of the tax law  and
    19  that  created  a new "state school tax reduction credit" against liabil-
    20  ities imposed pursuant to the authority granted the city by such section
    21  and other statutes authorizing the imposition of a personal  income  tax
    22  on  the  residents  of  such  city,  and (b) as a result of the tax rate
    23  adjustments made by a chapter of the laws  of  two  thousand  ten  which

    24  amended this subdivision.
    25    §  2.  Paragraphs  1, 2 and 3 of subsection (a) of section 1304 of the
    26  tax law, as amended by section 134 of part A of chapter 389 of the  laws
    27  of  1997, subparagraph (A) of paragraph 1, subparagraph (A) of paragraph
    28  2 and subparagraph (A) of paragraph 3 as amended by chapter 525  of  the
    29  laws of 2008, are amended to read as follows:
    30    (1)  Resident  married  individuals  filing joint returns and resident
    31  surviving spouses. The tax under this section for each taxable  year  on
    32  the  city  taxable  income of every city resident married individual who
    33  makes a single return jointly with his or her  spouse  under  subsection
    34  (b)  of  section  thirteen  hundred  six of this article and on the city
    35  taxable income of every city resident surviving spouse shall  be  deter-
    36  mined in accordance with the following tables:
 

    37    (A) For taxable years beginning after two thousand nine:
    38  If the city taxable income is:         The tax is:
    39  Not over $21,600                       2.55% of the city taxable income
    40  Over $21,600 but not                   $551 plus 3.1% of excess
    41  over $45,000                             over $21,600
    42  Over $45,000 but not                   $1,276 plus 3.15% of excess
    43  over $90,000                             over $45,000
    44  Over $90,000 but not                   $2,694 plus 3.2% of excess
    45  over $500,000                            over $90,000
    46  Over $500,000                          $15,814 plus 3.4% of excess

    47                                           over $500,000
 
    48    (B)  For  taxable years beginning in two thousand one and two thousand
    49  two and for taxable years beginning after two thousand five  and  before
    50  two thousand [twelve] ten:
        S. 6610--C                         60                         A. 9710--D
 
     1  If the city taxable income is:         The tax is:
     2  Not over $21,600                       2.55% of the city taxable income
     3  Over $21,600 but not                   $551 plus 3.1% of excess
     4  over $45,000                             over $21,600
     5  Over $45,000 but not                   $1,276 plus 3.15% of excess
     6  over $90,000                             over $45,000
     7  Over $90,000                           $2,694 plus 3.2% of excess
     8                                           over $90,000
 

     9    [(B) For taxable years beginning in two thousand:

    10  If the city taxable income is:         The tax is:
    11  Not over $21,600                       2.65% of the city taxable income
    12  Over $21,600 but not                   $572 plus 3.215% of excess
    13  over $45,000                             over $21,600
    14  Over $45,000 but not                   $1,325 plus 3.265% of excess
    15  over $90,000                             over $45,000
    16  Over $90,000                           $2,794 plus 3.315% of excess
    17                                           over $90,000

    18    (C) For taxable years beginning in nineteen hundred ninety-nine:

    19  If the city taxable income is:         The tax is:

    20  Not over $21,600                       2.675% of the city taxable income
    21  Over $21,600 but not                   $578 plus 3.2575% of excess
    22  over $45,000                             over $21,600
    23  Over $45,000 but not                   $1,340 plus 3.3075% of excess
    24  over $90,000                             over $45,000
    25  Over $90,000                           $2,828 plus 3.3575% of excess
    26                                           over $90,000

    27    (D)  For taxable years beginning after nineteen hundred ninety-six and
    28  before nineteen hundred ninety-nine:

    29  If the city taxable income is:         The tax is:
    30  Not over $21,600                       2.7% of the city taxable income

    31  Over $21,600 but not                   $583 plus 3.3% of excess
    32  over $45,000                             over $21,600
    33  Over $45,000 but not                   $1,355 plus 3.35% of excess
    34  over $90,000                             over $45,000
    35  Over $90,000                           $2,863 plus 3.4% of excess
    36                                           over $90,000

    37    (E) For taxable years beginning in nineteen hundred ninety-six:

    38  If the city taxable income is:         The tax is:
    39  Not over $14,400                       2.6% of the city taxable income
    40  Over $14,400 but not                   $374 plus 3% of excess
    41  over $27,000                             over $14,400

    42  Over $27,000 but not                   $752 plus 3.3% of excess
    43  over $45,000                             over $27,000
    44  Over $45,000 but not                   $1,346 plus 3.35% of excess
    45  over $108,000                            over $45,000
    46  Over $108,000                          $3,457 plus 3.4% of excess
    47                                           over $108,000
        S. 6610--C                         61                         A. 9710--D

     1    (F) For taxable years beginning in nineteen hundred ninety-five:

     2  If the city taxable income is:         The tax is:
     3  Not over $14,400                       2.25% of the city taxable income
     4  Over $14,400 but not                   $324 plus 2.85% of excess

     5  over $27,000                             over $14,400
     6  Over $27,000 but not                   $683 plus 3.3% of excess
     7  over $45,000                             over $27,000
     8  Over $45,000 but not                   $1,278 plus 3.35% of excess
     9  over $108,000                            over $45,000
    10  Over $108,000                          $3,388 plus 3.4% of excess
    11                                           over $108,000
    12    (G)  For  taxable  years beginning after nineteen hundred eighty-eight
    13  and before nineteen hundred ninety-five:

    14  If the city taxable income is:         The tax is:
    15  Not over $14,400                       2.2% of the city taxable income
    16  Over $14,400 but not                   $317 plus 2.7% of excess

    17  over $27,000                             over $14,400
    18  Over $27,000 but not                   $657 plus 3.2% of excess
    19  over $45,000                             over $27,000
    20  Over $45,000 but not                   $1,233 plus 3.35% of excess
    21  over $108,000                            over $45,000
    22  Over $108,000                          $3,344 plus 3.4% of excess
    23                                           over $108,000

    24    (H) For taxable years beginning in nineteen hundred eighty-eight:

    25  If the city taxable income is:         The tax is:
    26  Not over $4,500                        1.5% of the city taxable income
    27  Over $4,500 but not                    $68 plus 2.2% of excess

    28  over $16,200                             over $4,500
    29  Over $16,200 but not                   $325 plus 2.7% of excess
    30  over $27,000                             over $16,200
    31  Over $27,000 but not                   $617 plus 3.2% of excess
    32  over $45,000                             over $27,000
    33  Over $45,000 but not                   $1,193 plus 3.4% of excess
    34  over $108,000                            over $45,000
    35  Over $108,000                          $3,335 plus 3.5% of excess
    36                                           over $108,000

    37    (I) For taxable years beginning in nineteen hundred eighty-seven:

    38  If the city taxable income is:         The tax is:

    39  Not over $4,125                        1.5% of the city taxable income
    40  Over $4,125 but not                    $62 plus 1.8% of excess
    41  over $8,250                              over $4,125
    42  Over $8,250 but not                    $136 plus 2.2% of excess
    43  over $14,850                             over $8,250
    44  Over $14,850 but not                   $281 plus 2.6% of excess
    45  over $21,450                             over $14,850
    46  Over $21,450 but not                   $453 plus 3% of excess
    47  over $28,050                             over $21,450
    48  Over $28,050 but not                   $651 plus 3.4% of excess
    49  over $34,650                             over $28,050
    50  Over $34,650 but not                   $875 plus 3.7% of excess

        S. 6610--C                         62                         A. 9710--D

     1  over $41,250                             over $34,650
     2  Over $41,250 but not                   $1,119 plus 3.9% of excess
     3  over $99,000                             over $41,250
     4  Over $99,000                           $3,371 plus 4.1% of excess
     5                                           over $99,000]
     6    (2)  Resident heads of households. The tax under this section for each
     7  taxable year on the city taxable income of every city resident head of a
     8  household shall be determined in accordance with the following tables:
     9    (A) For taxable years beginning after two thousand nine:
 
    10  If the city taxable income is:         The tax is:

    11  Not over $14,400                       2.55% of the city taxable income
    12  Over $14,400 but not                   $367 plus 3.1% of excess
    13  over $30,000                             over $14,400
    14  Over $30,000 but not                   $851 plus 3.15% of excess
    15  over $60,000                             over $30,000
    16  Over $60,000 but not                   $1,796 plus 3.2% of excess
    17  over $500,000                            over $60,000
    18  Over $500,000                          $15,876 plus 3.4% of excess
    19                                           Over $500,000
 
    20    (B) For taxable years beginning in two thousand one and  two  thousand

    21  two  and  for taxable years beginning after two thousand five and before
    22  two thousand [twelve] ten:
 
    23  If the city taxable income is:         The tax is:
    24  Not over $14,400                       2.55% of the city taxable income
    25  Over $14,400 but not                   $367 plus 3.1% of excess
    26  over $30,000                             over $14,400
    27  Over $30,000 but not                   $851 plus 3.15% of excess
    28  over $60,000                             over $30,000
    29  Over $60,000                           $1,796 plus 3.2% of excess
    30                                           over $60,000
 
    31    [(B) For taxable years beginning in two thousand:

    32  If the city taxable income is:         The tax is:
    33  Not over $14,400                       2.65% of the city taxable income

    34  Over $14,400 but not                   $382 plus 3.215% of excess
    35  over $30,000                             over $14,400
    36  Over $30,000 but not                   $883 plus 3.265% of excess
    37  over $60,000                             over $30,000
    38  Over $60,000 but not                   $1,863 plus 3.315% of excess
    39                                           over $60,000

    40    (C) For taxable years beginning in nineteen hundred ninety-nine:

    41  If the city taxable income is:         The tax is:
    42  Not over $14,400                       2.675% of the city taxable income
    43  Over $14,400 but not                   $385 plus 3.2575% of excess
    44  over $30,000                             over $14,400

    45  Over $30,000 but not                   $893 plus 3.3075% of excess
    46  over $60,000                             over $30,000
    47  Over $60,000                           $1,886 plus 3.3575% of excess
    48                                           over $60,000
        S. 6610--C                         63                         A. 9710--D

     1    (D) For taxable years beginning after nineteen hundred ninety-six  and
     2  before nineteen hundred ninety-nine:

     3  If the city taxable income is:         The tax is:
     4  Not over $14,400                       2.7% of the city taxable income
     5  Over $14,400 but not                   $389 plus 3.3% of excess
     6  over $30,000                             over $14,400

     7  Over $30,000 but not                   $904 plus 3.35% of excess
     8  over $60,000                             over $30,000
     9  Over $60,000                           $1,909 plus 3.4% of excess
    10                                           over $60,000

    11    (E) For taxable years beginning in nineteen hundred ninety-six:

    12  If the city taxable income is:         The tax is:
    13  Not over $9,600                        2.6% of the city taxable income
    14  Over $9,600 but not                    $250 plus 3% of excess
    15  over $18,000                             over $9,600
    16  Over $18,000 but not                   $502 plus 3.3% of excess
    17  over $30,000                             over $18,000

    18  Over $30,000 but not                   $898 plus 3.35% of excess
    19  over $72,000                             over $30,000
    20  Over $72,000                           $2,305 plus 3.4% of excess
    21                                           over $72,000

    22    (F) For taxable years beginning in nineteen hundred ninety-five:

    23  If the city taxable income is:         The tax is:
    24  Not over $9,200                        2.25% of the city taxable income
    25  Over $9,200 but not                    $207 plus 2.85% of excess
    26  over $17,250                             over $9,200
    27  Over $17,250 but not                   $436 plus 3.3% of excess
    28  over $28,750                             over $17,250

    29  Over $28,750 but not                   $816 plus 3.35% of excess
    30  over $69,000                             over $28,750
    31  Over $69,000                           $2,164 plus 3.4% of excess
    32                                           over $69,000

    33    (G)  For  taxable  years beginning after nineteen hundred eighty-eight
    34  and before nineteen hundred ninety-five:

    35  If the city taxable income is:         The tax is:
    36  Not over $8,800                        2.2% of the city taxable income
    37  Over $8,800 but not                    $194 plus 2.7% of excess
    38  over $16,500                             over $8,800
    39  Over $16,500 but not                   $402 plus 3.2% of excess
    40  over $27,500                             over $16,500

    41  Over $27,500 but not                   $754 plus 3.35% of excess
    42  over $66,000                             over $27,500
    43  Over $66,000                           $2,044 plus 3.4% of excess
    44                                           over $66,000

    45    (H) For taxable years beginning in nineteen hundred eighty-eight:

    46  If the city taxable income is:         The tax is:
    47  Not over $2,750                        1.5% of the city taxable income
        S. 6610--C                         64                         A. 9710--D

     1  Over $2,750 but not                    $41 plus 2.2% of excess
     2  over $9,900                              over $2,750
     3  Over $9,900 but not                    $198 plus 2.7% of excess

     4  over $16,500                             over $9,900
     5  Over $16,500 but not                   $376 plus 3.2% of excess
     6  over $27,500                             over $16,500
     7  Over $27,500 but not                   $728 plus 3.4% of excess
     8  over $66,000                             over $27,500
     9  Over $66,000                           $2,037 plus 3.5% of excess
    10                                           over $66,000

    11    (I) For taxable years beginning in nineteen hundred eighty-seven:

    12  If the city taxable income is:         The tax is:
    13  Not over $2,750                        1.5% of the city taxable income
    14  Over $2,750 but not                    $41 plus 1.8% of excess
    15  over $5,500                              over $2,750

    16  Over $5,500 but not                    $91 plus 2.2% of excess
    17  over $9,900                              over $5,500
    18  Over $9,900 but not                    $188 plus 2.6% of excess
    19  over $14,300                             over $9,900
    20  Over $14,300 but not                   $302 plus 3% of excess
    21  over $18,700                             over $14,300
    22  Over $18,700 but not                   $434 plus 3.4% of excess
    23  over $23,100                             over $18,700
    24  Over $23,100 but not                   $584 plus 3.7% of excess
    25  over $27,500                             over $23,100
    26  Over $27,500 but not                   $747 plus 3.9% of excess
    27  over $66,000                             over $27,500

    28  Over $66,000                           $2,249 plus 4.1% of excess
    29                                           over $66,000]
 
    30    (3)  Resident  unmarried  individuals,  resident  married  individuals
    31  filing separate returns and resident estates and trusts. The  tax  under
    32  this  section  for each taxable year on the city taxable income of every
    33  city resident individual who is not a city resident  married  individual
    34  who  makes  a  single  return  jointly  with  his  or  her  spouse under
    35  subsection (b) of section thirteen hundred six of this article or a city
    36  resident head of household or a city resident surviving spouse,  and  on
    37  the city taxable income of every city resident estate and trust shall be
    38  determined in accordance with the following tables:
 
    39  (A) For taxable years beginning after two thousand nine:
 

    40  If the city taxable income is:         The tax is:
    41  Not over $12,000                       2.55% of the city taxable income
    42  Over $12,000 but not                   $306 plus 3.1% of excess
    43  over $25,000                             over $12,000
    44  Over $25,000 but not                   $709 plus 3.15% of excess
    45  over $50,000                             over $25,000
    46  Over $50,000 but not                   $1,497 plus 3.2% of excess
    47  over $500,000                          over $50,000
    48  Over $500,000                          $15,897 plus 3.4%
    49                                         of excess over $500,000

        S. 6610--C                         65                         A. 9710--D
 
     1  (B) For taxable years beginning in two thousand one and two thousand two
     2  and  for  taxable years beginning after two thousand five and before two
     3  thousand [twelve] ten:
 
     4  If the city taxable income is:         The tax is:
     5  Not over $12,000                       2.55% of the city taxable income
     6  Over $12,000 but not                   $306 plus 3.1% of excess
     7  over $25,000                             over $12,000
     8  Over $25,000 but not                   $709 plus 3.15% of excess
     9  over $50,000                             over $25,000
    10  Over $50,000                           $1,497 plus 3.2% of excess
    11                                           over $50,000
 
    12    [(B) For taxable years beginning in two thousand:


    13  If the city taxable income is:         The tax is:
    14  Not over $12,000                       2.65% of the city taxable income
    15  Over $12,000 but not                   $318 plus 3.215% of excess
    16  over $25,000                             over $12,000
    17  Over $25,000 but not                   $736 plus 3.265% of excess
    18  over $50,000                             over $25,000
    19  Over $50,000                           $1,552 plus 3.315% of excess
    20                                           over $50,000

    21    (C) For taxable years beginning in nineteen hundred ninety-nine:

    22  If the city taxable income is:         The tax is:
    23  Not over $12,000                       2.675% of the city taxable income

    24  Over $12,000 but not                   $321 plus 3.2575% of excess
    25  over $25,000                             over $12,000
    26  Over $25,000 but not                   $744 plus 3.3075% of excess
    27  over $50,000                             over $25,000
    28  Over $50,000                           $1,571 plus 3.3575% of excess
    29                                           over $50,000

    30    (D)  For taxable years beginning after nineteen hundred ninety-six and
    31  before nineteen hundred ninety-nine:

    32  If the city taxable income is:         The tax is:
    33  Not over $12,000                       2.7% of the city taxable income
    34  Over $12,000 but not                   $324 plus 3.3% of excess
    35  over $25,000                             over $12,000

    36  Over $25,000 but not                   $753 plus 3.35% of excess
    37  over $50,000                             over $25,000
    38  Over $50,000                           $1,591 plus 3.4% of excess
    39                                           over $50,000

    40    (E) For taxable years beginning in nineteen hundred ninety-six:

    41  If the city taxable income is:         The tax is:
    42  Not over $8,000                        2.6% of the city taxable income
    43  Over $8,000 but not                    $208 plus 3% of excess
    44  over $15,000                             over $8,000
    45  Over $15,000 but not                   $418 plus 3.3% of excess
    46  over $25,000                             over $15,000

    47  Over $25,000 but not                   $748 plus 3.35% of excess
        S. 6610--C                         66                         A. 9710--D

     1  over $60,000                             over $25,000
     2  Over $60,000                           $1,920 plus 3.4% of excess
     3                                           over $60,000

     4    (F) For taxable years beginning in nineteen hundred ninety-five:

     5  If the city taxable income is:         The tax is:
     6  Not over $8,000                        2.25% of the city taxable income
     7  Over $8,000 but not                    $180 plus 2.85% of excess
     8  over $15,000                             over $8,000
     9  Over $15,000 but not                   $380 plus 3.3% of excess

    10  over $25,000                             over $15,000
    11  Over $25,000 but not                   $710 plus 3.35% of excess
    12  over $60,000                             over $25,000
    13  Over $60,000                           $1,883 plus 3.4% of excess
    14                                           over $60,000

    15    (G)  For  taxable  years beginning after nineteen hundred eighty-eight
    16  and before nineteen hundred ninety-five:

    17  If the city taxable income is:         The tax is:
    18  Not over $8,000                        2.2% of the city taxable income
    19  Over $8,000 but not                    $176 plus 2.7% of excess
    20  over $15,000                             over $8,000
    21  Over $15,000 but not                   $365 plus 3.2% of excess

    22  over $25,000                             over $15,000
    23  Over $25,000 but not                   $685 plus 3.35% of excess
    24  over $60,000                             over $25,000
    25  Over $60,000                           $1,858 plus 3.4% of excess
    26                                           over $60,000

    27    (H) For taxable years beginning in nineteen hundred eighty-eight:

    28  If the city taxable income is:         The tax is:
    29  Not over $2,500                        1.5% of the city taxable income
    30  Over $2,500 but not                    $38 plus 2.2% of excess
    31  over $9,000                              over $2,500
    32  Over $9,000 but not                    $181 plus 2.7% of excess
    33  over $15,000                             over $9,000

    34  Over $15,000 but not                   $343 plus 3.2% of excess
    35  over $25,000                             over $15,000
    36  Over $25,000 but not                   $663 plus 3.4% of excess
    37  over $60,000                             over $25,000
    38  Over $60,000                           $1,853 plus 3.5% of excess
    39                                           over $60,000

    40    (I) For taxable years beginning in nineteen hundred eighty-seven:

    41  If the city taxable income is:         The tax is:
    42  Not over $2,500                        1.5% of the city taxable income
    43  Over $2,500 but not                    $38 plus 1.8% of excess
    44  over $5,000                              over $2,500

    45  Over $5,000 but not                    $83 plus 2.2% of excess
    46  over $9,000                              over $5,000
    47  Over $9,000 but not                    $171 plus 2.6% of excess
    48  over $13,000                             over $9,000
        S. 6610--C                         67                         A. 9710--D

     1  Over $13,000 but not                   $275 plus 3% of excess
     2  over $17,000                             over $13,000
     3  Over $17,000 but not                   $395 plus 3.4% of excess
     4  over $21,000                             over $17,000
     5  Over $21,000 but not                   $531 plus 3.7% of excess
     6  over $25,000                             over $21,000

     7  Over $25,000 but not                   $679 plus 3.9% of excess
     8  over $60,000                             over $25,000
     9  Over $60,000                           $2,044 plus 4.1% of excess
    10                                           over $60,000]
 
    11    §  3.  Paragraphs  1, 2 and 3 of subdivision (a) of section 11-1701 of
    12  the administrative code of the city of New York, as amended  by  section
    13  136  of  part  A of chapter 389 of the laws of 1997, subparagraph (A) of
    14  paragraph 1, subparagraph (A) of paragraph 2  and  subparagraph  (A)  of
    15  paragraph  3  as amended by chapter 525 of the laws of 2008, are amended
    16  to read as follows:
    17    (1) Resident married individuals filing  joint  returns  and  resident
    18  surviving  spouses.  The tax under this section for each taxable year on

    19  the city taxable income of every city resident  married  individual  who
    20  makes  a  single return jointly with his or her spouse under subdivision
    21  (b) of section 11-1751 of this chapter and on the city taxable income of
    22  every city resident surviving spouse shall be determined  in  accordance
    23  with the following tables:
 
    24  (A) For taxable years beginning after two thousand nine:
 
    25  If the city taxable income is:         The tax is:
    26  Not over $21,600                       2.55% of the city taxable income
    27  Over $21,600 but not                   $551 plus 3.1% of excess
    28  over $45,000                            over $21,600
    29  Over $45,000 but not                   $1,276 plus 3.15% of excess

    30  over $90,000                            over $45,000
    31  Over $90,000 but not                   $2,694 plus 3.2% of excess
    32  over $500,000                           over $90,000
    33  Over $500,000                          $15,814 plus 3.4% of excess
    34                                          over $500,000
    35    (B)  For  taxable years beginning in two thousand one and two thousand
    36  two and for taxable years beginning after two thousand five  and  before
    37  two thousand [twelve] ten:
 
    38  If the city taxable income is:         The tax is:
    39  Not over $21,600                       2.55% of the city taxable income
    40  Over $21,600 but not                   $551 plus 3.1% of excess
    41  over $45,000                            over $21,600

    42  Over $45,000 but not                   $1,276 plus 3.15% of excess
    43  over $90,000                            over $45,000
    44  Over $90,000                           $2,694 plus 3.2% of excess
    45                                          over $90,000
    46    [(B) For taxable years beginning in two thousand:

    47  If the city taxable income is:         The tax is:
    48  Not over $21,600                       2.65% of the city taxable income
    49  Over $21,600 but not                   $572 plus 3.215% of excess
    50  over $45,000                            over $21,600
    51  Over $45,000 but not                   $1,325 plus 3.265% of excess
        S. 6610--C                         68                         A. 9710--D

     1  over $90,000                            over $45,000

     2  Over $90,000                           $2,794 plus 3.315% of excess
     3                                          over $90,000

     4    (C) For taxable years beginning in nineteen hundred ninety-nine:

     5  If the city taxable income is:         The tax is:
     6  Not over $21,600                       2.675% of the city taxable income
     7  Over $21,600 but not                   $578 plus 3.2575% of excess
     8  over $45,000                            over $21,600
     9  Over $45,000 but not                   $1,340 plus 3.3075% of excess
    10  over $90,000                            over $45,000
    11  Over $90,000                           $2,828 plus 3.3575% of excess
    12                                          over $90,000


    13    (D)  For taxable years beginning after nineteen hundred ninety-six and
    14  before nineteen hundred ninety-nine:

    15  If the city taxable income is:         The tax is:
    16  Not over $21,600                       2.7% of the city taxable income
    17  Over $21,600 but not over              $583 plus 3.3% of excess
    18  $45,000                                 over $21,600
    19  Over $45,000 but not over              $1,355 plus 3.35% of excess
    20  $90,000                                 over $45,000
    21  Over $90,000                           $2,863 plus 3.4% of excess
    22                                          over $90,000

    23    (E) For taxable years beginning in nineteen hundred ninety-six:

    24  If the city taxable income is:         The tax is:

    25  Not over $14,400                       2.6% of the city taxable income
    26  Over $14,400 but not                   $374 plus 3% of excess
    27  over $27,000                            over $14,400
    28  Over $27,000 but not                   $752 plus 3.3% of excess
    29  over $45,000                            over $27,000
    30  Over $45,000 but not                   $1,346 plus 3.35% of excess
    31  over $108,000                           over $45,000
    32  Over $108,000                          $3,457 plus 3.4% of excess
    33                                          over $108,000

    34    (F) For taxable years beginning in nineteen hundred ninety-five:

    35  If the city taxable income is:         The tax is:

    36  Not over $14,400                       2.25% of the city taxable income
    37  Over $14,400 but not over              $324 plus 2.85% of excess
    38  $27,000                                 over $14,400
    39  Over $27,000 but not over              $683 plus 3.3% of excess
    40  $45,000                                 over $27,000
    41  Over $45,000 but not over              $1,278 plus 3.35% of excess
    42  $108,000                                over $45,000
    43  Over $108,000                          $3,388 plus 3.4% of excess
    44                                          over $108,000

    45    (G) For taxable years beginning after  nineteen  hundred  eighty-eight
    46  and before nineteen hundred ninety-five:

        S. 6610--C                         69                         A. 9710--D

     1  If the city taxable income is:         The tax is:
     2  Not over $14,400                       2.2% of the city taxable income
     3  Over $14,400 but not over              $317 plus 2.7% of excess
     4  $27,000                                 over $14,400
     5  Over $27,000 but not over              $657 plus 3.2% of excess
     6  $45,000                                 over $27,000
     7  Over $45,000 but not over              $1,233 plus 3.35% of excess
     8  $108,000                                over $45,000
     9  Over $108,000                          $3,344 plus 3.4% of excess
    10                                          over $108,000


    11    (H) For taxable years beginning in nineteen hundred eighty-eight:

    12  If the city taxable income is:         The tax is:
    13  Not over $4,500                        1.5% of the city taxable income
    14  Over $4,500 but not over               $68 plus 2.2% of excess
    15  $16,200                                 over $4,500
    16  Over $16,200 but not over              $325 plus 2.7% of excess
    17  $27,000                                 over $16,200
    18  Over $27,000 but not over              $617 plus 3.2% of excess
    19  $45,000                                 over $27,000
    20  Over $45,000 but not over              $1,193 plus 3.4% of excess
    21  $108,000                                over $45,000
    22  Over $108,000                          $3,335 plus 3.5% of excess

    23                                          over $108,000

    24    (I) For taxable years beginning in nineteen hundred eighty-seven:

    25  If the city taxable income is:         The tax is:
    26  Not over $4,125                        1.5% of the city taxable income
    27  Over $4,125 but not over               $62 plus 1.8% of excess
    28  $8,250                                   over $4,125
    29  Over $8,250 but not over               $136 plus 2.2% of excess
    30  $14,850                                  over $8,250
    31  Over $14,850 but not over              $281 plus 2.6% of excess
    32  $21,450                                  over $14,850
    33  Over $21,450 but not over              $453 plus 3% of excess
    34  $28,050                                  over $21,450

    35  Over $28,050 but not over              $651 plus 3.4% of excess
    36  $34,650                                  over $28,050
    37  Over $34,650 but not over              $875 plus 3.7% of excess
    38  $41,250                                  over $34,650
    39  Over $41,250 but not over              $1,119 plus 3.9% of excess
    40  $99,000                                  over $41,250
    41  Over $99,000                           $3,371 plus 4.1% of excess
    42                                           over $99,000]
 
    43    (2)  Resident heads of households. The tax under this section for each
    44  taxable year on the city taxable income of every city resident head of a
    45  household shall be determined in accordance with the following tables:
    46    (A) For taxable years beginning after two thousand nine:
 

    47  If the city taxable income is:         The tax is:
    48  Not over $14,400                       2.55% of the city taxable income
    49  Over $14,400 but not                   $367 plus 3.1% of excess
    50  over $30,000                            over $14,400
        S. 6610--C                         70                         A. 9710--D
 
     1  Over $30,000 but not                   $851 plus 3.15% of excess
     2  over $60,000                            over $30,000
     3  Over $60,000 but not                   $1,796 plus 3.2% of excess
     4  over $500,000                           over $60,000
     5  Over $500,000                          $15,876 plus 3.4% of excess

     6                                          over $500,000
 
     7    (B)  For  taxable years beginning in two thousand one and two thousand
     8  two and for taxable years beginning after two thousand five  and  before
     9  two thousand [twelve] ten:
 
    10  If the city taxable income is:         The tax is:
    11  Not over $14,400                       2.55% of the city taxable income
    12  Over $14,400 but not                   $367 plus 3.1% of excess
    13  over $30,000                            over $14,400
    14  Over $30,000 but not                   $851 plus 3.15% of excess
    15  over $60,000                            over $30,000
    16  Over $60,000                           $[1,769] 1,796
    17                                         plus 3.2% of excess
    18                                          over $60,000

    19    [(B) For taxable years beginning in two thousand:

    20  If the city taxable income is:         The tax is:
    21  Not over $14,400                       2.65% of the city taxable income
    22  Over $14,400 but not                   $382 plus 3.215% of excess
    23  over $30,000                            over $14,400
    24  Over $30,000 but not                   $883 plus 3.265% of excess
    25  over $60,000                            over $30,000
    26  Over $60,000                           $1,863 plus 3.315% of excess
    27                                          over $60,000

    28    (C) For taxable years beginning in nineteen hundred ninety-nine:

    29  If the city taxable income is:         The tax is:

    30  Not over $14,400                       2.675% of the city taxable income
    31  Over $14,400 but not                   $385 plus 3.2575% of excess
    32  over $30,000                            over $14,400
    33  Over $30,000 but not                   $893 plus 3.3075% of excess
    34  over $60,000                            over $30,000
    35  Over $60,000                           $1,886 plus 3.3575% of excess
    36                                          over $60,000

    37    (D)  For taxable years beginning after nineteen hundred ninety-six and
    38  before nineteen hundred ninety-nine:

    39  If the city taxable income is:         The tax is:
    40  Not over $14,400                       2.7% of the city taxable income

    41  Over $14,400 but not                   $389 plus 3.3% of excess
    42  over $30,000                            over $14,400
    43  Over $30,000 but not over              $904 plus 3.35% of excess
    44  $60,000                                 over $30,000
    45  Over $60,000                           $1,909 plus 3.4% of excess
    46                                          over $60,000

    47    (E) For taxable years beginning in nineteen hundred ninety-six:
        S. 6610--C                         71                         A. 9710--D

     1  If the city taxable income is:         The tax is:
     2  Not over $9,600                        2.6% of the city taxable income
     3  Over $9,600 but not over               $250 plus 3% of excess

     4  $18,000                                 over $9,600
     5  Over $18,000 but not over              $502 plus 3.3% of excess
     6  $30,000                                 over $18,000
     7  Over $30,000 but not over              $898 plus 3.35% of excess
     8  $72,000                                 over $30,000
     9  Over $72,000                           $2,305 plus 3.4% of excess
    10                                          over $72,000

    11    (F) For taxable years beginning in nineteen hundred ninety-five:

    12  If the city taxable income is:         The tax is:
    13  Not over $9,200                        2.25% of the city taxable income
    14  Over $9,200 but not over               $207 plus 2.85% of excess
    15  $17,250                                 over $9,200

    16  Over $17,250 but not over              $436 plus 3.3% of excess
    17  $28,750                                 over $17,250
    18  Over $28,750 but not over              $816 plus 3.35% of excess
    19  $69,000                                 over $28,750
    20  Over $69,000                           $2,164 plus 3.4% of excess
    21                                          over $69,000

    22    (G)  For  taxable  years beginning after nineteen hundred eighty-eight
    23  and before nineteen hundred ninety-five:

    24  If the city taxable income is:         The tax is:
    25  Not over $8,800                        2.2% of the city taxable income
    26  Over $8,800 but not over               $194 plus 2.7% of excess
    27  $16,500                                 over $8,800

    28  Over $16,500 but not over              $402 plus 3.2% of excess
    29  $27,500                                 over $16,500
    30  Over $27,500 but not over              $754 plus 3.35% of excess
    31  $66,000                                 over $27,500
    32  Over $66,000                           $2,044 plus 3.4% of excess
    33                                          over $66,000

    34    (H) For taxable years beginning in nineteen hundred eighty-eight:

    35  If the city taxable income is:         The tax is:
    36  Not over $2,750                        1.5% of the city taxable income
    37  Over $2,750 but not over               $41 plus 2.2% of excess
    38  $9,900                                  over $2,750

    39  Over $9,900 but not over               $198 plus 2.7% of excess
    40  $16,500                                 over $9,900
    41  Over $16,500 but not over              $376 plus 3.2% of excess
    42  $27,500                                 over $16,500
    43  Over $27,500 but not over              $728 plus 3.4% of excess
    44  $66,000                                 over $27,500
    45  Over $66,000                           $2,037 plus 3.5% of excess
    46                                          over $66,000

    47    (I) For taxable years beginning in nineteen hundred eighty-seven:
        S. 6610--C                         72                         A. 9710--D

     1  If the city taxable income is:         The tax is:

     2  Not over $2,750                        1.5% of the city taxable income
     3  Over $2,750 but not over               $41 plus 1.8% of excess
     4  $5,500                                   over $2,750
     5  Over $5,500 but not over               $91 plus 2.2% of excess
     6  $9,900                                   over $5,500
     7  Over $9,900 but not over               $188 plus 2.6% of excess
     8  $14,300                                  over $9,900
     9  Over $14,300 but not over              $302 plus 3% of excess
    10  $18,700                                  over $14,300
    11  Over $18,700 but not over              $434 plus 3.4% of excess
    12  $23,100                                  over $18,700
    13  Over $23,100 but not over              $584 plus 3.7% of excess

    14  $27,500                                  over $23,100
    15  Over $27,500 but not over              $747 plus 3.9% of excess
    16  $66,000                                  over $27,500
    17  Over $66,000                           $2,249 plus 4.1% of excess
    18                                           over $66,000]
 
    19    (3)  Resident  unmarried  individuals,  resident  married  individuals
    20  filing separate returns and resident estates and trusts. The  tax  under
    21  this  section  for each taxable year on the city taxable income of every
    22  city resident individual who is not a married  individual  who  makes  a
    23  single  return  jointly  with his or her spouse under subdivision (b) of
    24  section 11-1751 of this chapter or a city resident head of  a  household
    25  or  a  city resident surviving spouse, and on the city taxable income of

    26  every city resident estate and trust shall be determined  in  accordance
    27  with the following tables:
 
    28  (A) For taxable years beginning after two thousand nine:
 
    29  If the city taxable income is:         The tax is:
    30  Not over $12,000                       2.55% of the city taxable income
    31  Over $12,000 but not                   $306 plus 3.1% of excess
    32  over $25,000                            over $12,000
    33  Over $25,000 but not                   $709 plus 3.15% of excess
    34  over $50,000                            over $25,000
    35  Over $50,000 but not                   $1,497 plus 3.2% of excess
    36  over $500,000                           over $50,000

    37  Over $500,000                          $15,897 plus 3.4% of excess
    38                                          over $500,000
 
    39    (B)  For  taxable years beginning in two thousand one and two thousand
    40  two and for taxable years beginning after two thousand five  and  before
    41  two thousand [twelve] ten:
 
    42  If the city taxable income is:         The tax is:
    43  Not over $12,000                       2.55% of the city taxable income
    44  Over $12,000 but not                   $306 plus 3.1% of excess
    45  over $25,000                            over $12,000
    46  Over $25,000 but not                   $709 plus 3.15% of excess
    47  over $50,000                            over $25,000
    48  Over $50,000                           $1,497 plus 3.2% of excess
    49                                          over $50,000

    50    [(B) For taxable years beginning in two thousand:
        S. 6610--C                         73                         A. 9710--D

     1  If the city taxable income is:         The tax is:
     2  Not over $12,000                       2.65% of the city taxable income
     3  Over $12,000 but not                   $318 plus 3.215% of excess
     4  over $25,000                            over $12,000
     5  Over $25,000 but not                   $736 plus 3.265% of excess
     6  over $50,000                            over $25,000
     7  Over $50,000                           $1,552 plus 3.315% of excess
     8                                          over $50,000

     9    (C) For taxable years beginning in nineteen hundred ninety-nine:


    10  If the city taxable income is:         The tax is:
    11  Not over $12,000                       2.675% of the city taxable income
    12  Over $12,000 but not                   $321 plus 3.2575% of excess
    13  over $25,000                            over $12,000
    14  Over $25,000 but not                   $744 plus 3.3075% of excess
    15  over $50,000                            over $25,000
    16  Over $50,000                           $1,571 plus 3.3575% of excess
    17                                          over $50,000

    18    (D)  For taxable years beginning after nineteen hundred ninety-six and
    19  before nineteen hundred ninety-nine:

    20  If the city taxable income is:         The tax is:
    21  Not over $12,000                       2.7% of the city taxable income

    22  Over $12,000 but not over              $324 plus 3.3% of excess
    23  $25,000                                 over $12,000
    24  Over $25,000 but not over              $753 plus 3.35% of excess
    25  $50,000                                 over $25,000
    26  Over $50,000                           $1,591 plus 3.4% of excess
    27                                          over $50,000

    28    (E) For taxable years beginning in nineteen hundred ninety-six:

    29  If the city taxable income is:         The tax is:
    30  Not over $8,000                        2.6% of the city taxable income
    31  Over $8,000 but not over               $208 plus 3% of excess
    32  $15,000                                 over $8,000

    33  Over $15,000 but not over              $418 plus 3.3% of excess
    34  $25,000                                 over $15,000
    35  Over $25,000 but not over              $748 plus 3.35% of excess
    36  $60,000                                 over $25,000
    37  Over $60,000                           $1,920 plus 3.4% of excess
    38                                          over $60,000

    39    (F) For taxable years beginning in nineteen hundred ninety-five:

    40  If the city taxable income is:         The tax is:
    41  Not over $8,000                        2.25% of the city taxable income
    42  Over $8,000 but not over               $180 plus 2.85% of excess
    43  $15,000                                 over $8,000

    44  Over $15,000 but not over              $380 plus 3.3% of excess
    45  $25,000                                 over $15,000
    46  Over $25,000 but not over              $710 plus 3.35% of excess
    47  $60,000                                 over $25,000
    48  Over $60,000                           $1,883 plus 3.4% of excess
        S. 6610--C                         74                         A. 9710--D

     1                                          over $60,000

     2    (G)  For  taxable  years beginning after nineteen hundred eighty-eight
     3  and before nineteen hundred ninety-five:

     4  If the city taxable income is:         The tax is:
     5  Not over $8,000                        2.2% of the city taxable income

     6  Over $8,000 but not over               $176 plus 2.7% of excess
     7  $15,000                                 over $8,000
     8  Over $15,000 but not over              $365 plus 3.2% of excess
     9  $25,000                                 over $15,000
    10  Over $25,000 but not over              $685 plus 3.35% of excess
    11  $60,000                                 over $25,000
    12  Over $60,000                           $1,858 plus 3.4% of excess
    13                                          over $60,000

    14    (H) For taxable years beginning in nineteen hundred eighty-eight:

    15  If the city taxable income is:         The tax is:
    16  Not over $2,500                        1.5% of the city taxable income

    17  Over $2,500 but not over               $38 plus 2.2% of excess
    18  $9,000                                  over $2,500
    19  Over $9,000 but not over               $181 plus 2.7% of excess
    20  $15,000                                 over $9,000
    21  Over $15,000 but not over              $343 plus 3.2% of excess
    22  $25,000                                 over $15,000
    23  Over $25,000 but not over              $663 plus 3.4% of excess
    24  $60,000                                 over $25,000
    25  Over $60,000                           $1,853 plus 3.5% of excess
    26                                          over $60,000

    27    (I) For taxable years beginning in nineteen hundred eighty-seven:

    28  If the city taxable income is:         The tax is:

    29  Not over $2,500                        1.5% of the city taxable income
    30  Over $2,500 but not over               $38 plus 1.8% of excess
    31  $5,000                                  over $2,500
    32  Over $5,000 but not over               $83 plus 2.2% of excess
    33  $9,000                                  over $5,000
    34  Over $9,000 but not over               $171 plus 2.6% of excess
    35  $13,000                                 over $9,000
    36  Over $13,000 but not over              $275 plus 3% of excess
    37  $17,000                                 over $13,000
    38  Over $17,000 but not over              $395 plus 3.4% of excess
    39  $21,000                                 over $17,000
    40  Over $21,000 but not over              $531 plus 3.7% of excess

    41  $25,000                                 over $21,000
    42  Over $25,000 but not over              $679 plus 3.9% of excess
    43  $60,000                                 over $25,000
    44  Over $60,000                           $2,044 plus 4.1% of excess
    45                                          over $60,000]
 
    46    § 4. Notwithstanding any provision of law to the contrary, the  method
    47  of  determining  the  amount  to  be deducted and withheld from wages on
    48  account of taxes imposed by or pursuant to the authority of  article  30
    49  of  the  tax law in connection with the implementation of the provisions
        S. 6610--C                         75                         A. 9710--D
 
     1  of this act shall be prescribed by regulations of  the  commissioner  of

     2  taxation and finance with due consideration to the effect such withhold-
     3  ing  tables and methods would have on the receipt and amount of revenue.
     4  The  commissioner  of taxation and finance shall adjust such withholding
     5  tables and methods in regard to taxable  years  beginning  in  2010  and
     6  after in such manner as to result, so far as practicable, in withholding
     7  from  an  employee's wages an amount substantially equivalent to the tax
     8  reasonably estimated to be due for such taxable years as a result of the
     9  provisions of this act. Provided, however, for tax year 2010  the  with-
    10  holding  tables  shall  reflect  as  accurately  as practicable the full
    11  amount of tax year 2010 liability so that such  amount  is  withheld  by
    12  December  31, 2010.  Any such regulations to implement a change in with-
    13  holding tables and methods for tax year 2010 shall be adopted and effec-

    14  tive as soon as practicable and the commissioner may  adopt  such  regu-
    15  lations  on  an emergency basis notwithstanding anything to the contrary
    16  in section 202 of the state administrative procedure  act.  In  carrying
    17  out  his  or  her  duties  and  responsibilities under this section, the
    18  commissioner of taxation and finance may accompany such  a  rule  making
    19  procedure with a similar procedure with respect to the taxes required to
    20  be  deducted  and  withheld by local laws imposing taxes pursuant to the
    21  authority of articles 30, 30-A and 30-B of the tax law,  the  provisions
    22  of  any  other  law  in  relation  to  such  a procedure to the contrary
    23  notwithstanding.
    24    § 5. 1. Notwithstanding any provision of law to the contrary, no addi-
    25  tion to tax required shall be imposed for failure to pay  the  estimated

    26  tax  in subsection (c) of section 685 of the tax law with respect to any
    27  underpayment of a required installment due prior to,  or  within  thirty
    28  days  of,  the effective date of this act to the extent that such under-
    29  payment was created or increased by the  amendments  made  by  this  act
    30  provided,  however, that the taxpayer remits the amount of any underpay-
    31  ment prior to or with his or her next quarterly estimated tax payment.
    32    2. The commissioner of taxation and finance shall take steps to publi-
    33  cize the necessary adjustments to  estimated  tax  and,  to  the  extent
    34  reasonably possible, to inform the taxpayer of the tax liability changes
    35  made by this act.
    36    § 6. This act shall take effect immediately.
 
    37                                   PART FF
 
    38    Section  1.  Subdivision 3 of section 425 of the real property tax law

    39  is amended by adding a new paragraph (b-1) to read as follows:
    40    (b-1) Income.  For final assessment rolls to be used for the  levy  of
    41  taxes  for  the  two thousand eleven-two thousand twelve school year and
    42  thereafter, the parcel's affiliated income may be no greater  than  five
    43  hundred  thousand dollars, as determined by the commissioner of taxation
    44  and finance pursuant to section one hundred  seventy-one-u  of  the  tax
    45  law,  in order to be eligible for the basic exemption authorized by this
    46  section.  As used herein, the term "affiliated income"  shall  mean  the
    47  combined income of all of the owners of the parcel who resided primarily
    48  thereon on the applicable taxable status date, and of any owners' spous-

    49  es residing primarily thereon.  For exemptions on final assessment rolls
    50  to  be  used for the levy of taxes for the two thousand eleven-two thou-
    51  sand twelve school year, affiliated income  shall  be  determined  based
    52  upon the parties' incomes for the income tax year ending in two thousand
    53  nine.    In  each subsequent school year, the applicable income tax year
        S. 6610--C                         76                         A. 9710--D
 
     1  shall be advanced by one year. The term "income" as  used  herein  shall
     2  have the same meaning as in subdivision four of this section.
     3    §  2.  The tax law is amended by adding a new section 171-u to read as
     4  follows:
     5    § 171-u. Verification of income eligibility for basic STAR  exemption.

     6  (1) On or after August fifteenth of each year, beginning in two thousand
     7  ten,  the commissioner shall procure a report or reports identifying all
     8  parcels receiving the basic STAR exemption authorized  by  section  four
     9  hundred  twenty-five  of  the real property tax law. The commissioner is
    10  authorized to develop procedures necessary to ascertain to the  best  of
    11  his  or  her  ability whether the parcels satisfy the income eligibility
    12  requirements for such exemption. Such determination shall be based  upon
    13  the  affiliated income of the parcel for the applicable income tax year,
    14  as defined by paragraph (b-1)  of  subdivision  three  of  section  four
    15  hundred twenty-five of the real property tax law.

    16    (2)  The  commissioner  shall further develop procedures by which each
    17  assessor shall be notified of his or her findings, stating in each  case
    18  either  that  the  parcel  does  or does not meet the income eligibility
    19  standard prescribed by law,  or  that  the  income-eligibility  of  such
    20  parcel cannot be ascertained, whichever is appropriate.  The commission-
    21  er  shall provide no other information about the income of any person to
    22  an assessor.  Such reports shall be furnished to assessors prior to  the
    23  applicable taxable status date or as soon thereafter as is possible.
    24    (3)  Upon  receiving  such  a  report,  the  assessor  shall grant the
    25  exemption to those parcels  which  the  commissioner  determined  to  be

    26  income-eligible  (assuming  the assessor finds that the remaining eligi-
    27  bility requirements continue to be satisfied), shall deny the  exemption
    28  to  those  which  the commissioner determined not to be income-eligible,
    29  and shall solicit income documentation from the owners of those  parcels
    30  as  to which the commissioner was unable to make a determination.  Where
    31  the assessor denies the exemption based upon the commissioner's  report,
    32  a  notice  of  denial  shall  be  mailed as provided by paragraph (b) of
    33  subdivision six of section four hundred twenty-five of the real property
    34  tax law, giving the findings of such department as  a  reason  for  such
    35  denial.
    36    (4)  Where  a  STAR  exemption  has been improperly granted on a final

    37  assessment roll to a property where the affiliated  income  exceeds  the
    38  limitations  established  by  paragraph  (b-1)  of  subdivision three of
    39  section four hundred twenty-five of  the  real  property  tax  law,  the
    40  improperly  granted  exemption shall be corrected in the manner provided
    41  by subdivision twelve of section four hundred twenty-five  of  the  real
    42  property tax law.
    43    § 3. Intentionally omitted.
    44    §  4.  This  act  shall take effect immediately and shall be deemed to
    45  have been in full force and effect on and after April 1, 2010.
 
    46                                   PART GG
 
    47    Section 1. Paragraph 30 of subdivision (a) of section 1115 of the  tax
    48  law,  as  amended  by  section 84 of part A of chapter 56 of the laws of
    49  1998, is amended to read as follows:

    50    (30) [Clothing] Notwithstanding any other provision of  law:  (i)  For
    51  purposes  of  the  taxes imposed by sections eleven hundred five, eleven
    52  hundred nine, and eleven hundred ten of this article, and  for  purposes
    53  only  of taxes imposed by a county, city, or school district pursuant to
    54  the authority of subpart B of part one of article  twenty-nine  of  this
        S. 6610--C                         77                         A. 9710--D
 
     1  chapter  that  elects  the exemption described in this subparagraph, for
     2  the period commencing April first, two thousand eleven, and ending March
     3  thirty-first, two thousand twelve, clothing and footwear for  which  the
     4  receipt  or  consideration  given or contracted to be given is less than

     5  [one hundred ten] fifty-five dollars per article of clothing,  per  pair
     6  of  shoes  or other articles of footwear or per item used or consumed to
     7  make or repair such clothing and which becomes a physical component part
     8  of such clothing.
     9    (ii) For purposes only of the taxes imposed  by  a  county,  city,  or
    10  school  district  pursuant  to the authority of subpart B of part one of
    11  article twenty-nine of this chapter that elects the exemption  described
    12  in  this  subparagraph,  clothing  and footwear for which the receipt or
    13  consideration given or contracted to be given is less than  one  hundred
    14  ten dollars per article of clothing, per pair of shoes or other articles
    15  of footwear or per item used or consumed to make or repair such clothing

    16  and which becomes a physical component part of such clothing.
    17    §  2.  Subdivision  (g)  of  section  1109 of the tax law, as added by
    18  section 118-a of part A of chapter 389 of the laws of 1997, paragraph  1
    19  as  amended  by  section 10 of part A of chapter 63 of the laws of 2005,
    20  paragraph 2 as amended by section 4 of part KK of  chapter  407  of  the
    21  laws  of  1999,  and  paragraph  3 as amended by section 88 of part A of
    22  chapter 56 of the laws of 1998, is amended to read as follows:
    23    (g) Notwithstanding any other provision of state or local  law,  ordi-
    24  nance  or  resolution  to  the contrary: (1) In the event that a county,
    25  city or school district located in the metropolitan commuter transporta-
    26  tion district imposes taxes pursuant to the authority of  subpart  B  of
    27  part  I of article twenty-nine of this chapter and elects to provide the

    28  clothing and footwear exemption authorized in paragraph one of  subdivi-
    29  sion  (a)  of  section  twelve  hundred  ten of this chapter, [or a city
    30  located in such district in which the  taxes  provided  for  in  section
    31  eleven  hundred  seven  of  this article are in effect elects to provide
    32  such clothing and footwear exemption from such  taxes  pursuant  to  the
    33  authority of subdivision (k) of such section twelve hundred ten,] or the
    34  taxes  provided  for in section eleven hundred eight of this article are
    35  in effect in a city located in such district, the exemption provided  by
    36  paragraph thirty of subdivision (a) of section eleven hundred fifteen of
    37  this  article  shall  be  applicable in such portion of the metropolitan
    38  commuter transportation district in which such county,  city  or  school

    39  district  which  elects  to  provide the clothing and footwear exemption
    40  authorized in paragraph one of subdivision (a) of section twelve hundred
    41  ten of this chapter is located, [or in a city located in  such  district
    42  in  which the taxes provided for in section eleven hundred seven of this
    43  article are in effect which elects to provide such exemption]  or  where
    44  the taxes provided for in section eleven hundred eight of this [article]
    45  part  are in effect in a city located in such district. The commissioner
    46  shall determine and certify to the comptroller  the  amount  of  revenue
    47  forgone  at  the rate of three-eighths of one percent under this section
    48  in such county, city or school district on account of sales of  clothing
    49  and footwear in such county, city or school district.

    50    (2)  Commencing with the sales tax quarterly period which commences on
    51  March first, two thousand, the commissioner  shall  make  such  determi-
    52  nations and certifications on the twelfth day of the month following the
    53  month  in which sales tax quarterly returns are due under section eleven
    54  hundred thirty-six of this article with respect to such quarterly period
    55  for as long as such clothing and footwear  exemptions  from  such  taxes
    56  imposed pursuant to the authority of article twenty-nine of this chapter
        S. 6610--C                         78                         A. 9710--D
 
     1  or  by  section  [eleven  hundred seven or] eleven hundred eight of this
     2  part are in effect. Neither the commissioner nor the  comptroller  shall
     3  be  held  liable  for  any inaccuracy in such determinations and certif-

     4  ications.    Such determinations and certifications may be based on such
     5  information as may be available to the commissioner  at  the  time  such
     6  determinations  and  certifications  must be made under this subdivision
     7  and may be estimated on the basis of percentages or other indices calcu-
     8  lated from distributions from prior periods. The commissioner  shall  be
     9  authorized  to require such information as the commissioner deems neces-
    10  sary to comply with the requirements of this  subdivision  from  persons
    11  required to file returns under such section eleven hundred thirty-six of
    12  this article.
    13    (3)  By  the  fifteenth day of the month in which the commissioner has
    14  made the certifications to the comptroller described in paragraph two of
    15  this subdivision, the comptroller shall bill any county, city or  school

    16  district  in  such  metropolitan  commuter transportation district which
    17  provides such clothing and footwear exemption, [and  any  city  in  such
    18  district  in which the taxes imposed by section eleven hundred seven are
    19  in effect which has  elected  to  provide  such  clothing  and  footwear
    20  exemption,]  and any city in such district in which the taxes imposed by
    21  section eleven hundred eight of this part are in effect, an amount equal
    22  to one-half of the amount certified to the comptroller  by  the  commis-
    23  sioner  in  respect  of  such  county, city or school district; and such
    24  county, city or school district shall pay the amount of such bill to the
    25  comptroller by the twenty-fifth day of such month. The comptroller shall
    26  deposit any such amounts received in the mass  transportation  operating

    27  assistance  fund  established  by  section  eighty-eight-a  of the state
    28  finance law to the credit of the metropolitan mass transportation  oper-
    29  ating assistance account therein.
    30    (4)  In  the event that a county, city or school district imposing tax
    31  pursuant to the authority of subpart B of part I of article  twenty-nine
    32  of this chapter does not pay in full a bill described in paragraph three
    33  of  this  subdivision  by the twenty-fifth day of the month described in
    34  paragraphs two and three of  this  subdivision,  the  comptroller  shall
    35  deduct  any  amount  not  paid  from  the  amount of the next payment or
    36  payments due such county, city or school district pursuant  to  subdivi-
    37  sion  (c) of section twelve hundred sixty-one of this chapter until such
    38  amount not paid has been recovered. The comptroller  shall  deposit  the

    39  amounts  so  deducted and recovered in the mass transportation operating
    40  assistance fund to be credited as provided in paragraph  three  of  this
    41  subdivision.
    42    (5)  [In  the  event that a city in which the taxes imposed by section
    43  eleven hundred seven of this article are in effect does not pay in  full
    44  a  bill  described in paragraph three of this subdivision by the twenty-
    45  fifth day of the month described in paragraphs two  and  three  of  this
    46  subdivision,  the  comptroller shall deduct any amount not paid from the
    47  amount of the next payment or payments due such city,  with  respect  to
    48  taxes, penalty and interest imposed pursuant to the authority of section
    49  twelve  hundred twelve-a of this chapter, pursuant to subdivision (c) of

    50  section twelve hundred sixty-one of this chapter, until such amount  not
    51  paid  has  been  recovered. The comptroller shall deposit the amounts so
    52  deducted and recovered in the mass transportation  operating  assistance
    53  fund to be credited as provided in paragraph three of this subdivision.
    54    (6)]  In  the  event that a city in which the taxes imposed by section
    55  eleven hundred eight of this article are in effect does not pay in  full
    56  a  bill  described in paragraph three of this subdivision by the twenty-
        S. 6610--C                         79                         A. 9710--D
 
     1  fifth day of the month described in paragraphs two  and  three  of  this
     2  subdivision,  the  comptroller shall deduct any amount not paid from the

     3  amount of any other moneys due  such  city  from  the  comptroller,  not
     4  otherwise  pledged, dedicated or encumbered pursuant to other state law,
     5  until such amount not paid has been  recovered.  The  comptroller  shall
     6  deposit the amounts so deducted and recovered in the mass transportation
     7  operating  assistance fund to be credited as provided in paragraph three
     8  of this subdivision.
     9    [(7)] (6) The commissioner shall certify the amount of any over calcu-
    10  lation or under calculation of any certification required to be made  to
    11  the  comptroller under paragraph three of this subdivision as soon after
    12  its discovery as reasonably possible and subsequent  bills  to  a  city,
    13  county  or school district to which the over calculation or under calcu-
    14  lation relates shall be adjusted accordingly, provided  that  the  comp-

    15  troller  may  adjust  such number of subsequent bills as the comptroller
    16  shall consider reasonable in view of the amount of  the  adjustment  and
    17  all other facts and circumstances.
    18    [(8)]  (7) On the same date that the comptroller is required to bill a
    19  county, city or school district an amount as provided in paragraph three
    20  of this subdivision, the comptroller shall, after having first made  any
    21  deposits  required  by section ninety-two-r of the state finance law and
    22  only to the extent that there are moneys  remaining  after  having  made
    23  such  required  deposits, withdraw from the state treasury, to the debit
    24  of the general fund, an  amount  equal  to  the  total  of  the  amounts
    25  required  to be billed to counties, cities and school districts pursuant
    26  to such subdivision three and deposit such  total  amount  in  the  mass

    27  transportation  operating  assistance fund to be credited as provided in
    28  such paragraph three. The amount of any over calculation or under calcu-
    29  lation determined in paragraph [seven] six  of  this  subdivision  shall
    30  likewise  be  applied to the amounts required to be deposited under this
    31  paragraph, so that the amounts deposited under this paragraph equal  the
    32  total  of  the  amounts  required  to  be billed to counties, cities and
    33  school districts under such paragraph three, as  adjusted,  pursuant  to
    34  paragraph [seven] six of this subdivision.
    35    §  2-a.  Subdivision  (g) of section 1109 of the tax law is amended by
    36  adding a new paragraph 8 to read as follows:
    37    (8) Notwithstanding the foregoing provisions of  this  subdivision  or

    38  other  provisions  of  law: (i) For the period commencing October first,
    39  two thousand ten, and ending March thirty-first,  two  thousand  eleven,
    40  there  shall  be  no  exemption for clothing and footwear from the taxes
    41  imposed by this section, and the commissioner  shall  not  determine  or
    42  certify any amount of revenue foregone under the foregoing provisions of
    43  this subdivision and the comptroller shall not bill any county, city, or
    44  school  district  located in such district that exempts for clothing and
    45  footwear from its taxes imposed pursuant to the authority of  subpart  B
    46  of part one of article twenty-nine of this chapter.
    47    (ii)  For  the period commencing April first, two thousand eleven, and

    48  ending March thirty-first, two thousand twelve, while the exemption  for
    49  clothing  and footwear described in subparagraph (i) of paragraph thirty
    50  of subdivision (a) of section eleven hundred  fifteen  of  this  article
    51  applies  to  the  taxes  imposed by this section, the comptroller shall,
    52  after having first made any deposits required by section ninety-two-r of
    53  the state finance law and only to  the  extent  that  there  are  moneys
    54  remaining  after  having  made such required deposits, withdraw from the
    55  state treasury, to the debit of the general fund, an amount equal to one
    56  hundred percent of the revenues foregone under this section  on  account
        S. 6610--C                         80                         A. 9710--D
 

     1  of such exemption from the taxes imposed by this section, such amount of
     2  revenue  foregone determined and calculated as provided in the foregoing
     3  provisions of this subdivision, and deposit such  total  amount  in  the
     4  mass  transportation  operating  assistance  fund established by section
     5  eighty-eight-a of the state finance law to the credit of  the  metropol-
     6  itan mass transportation operating assistance account therein.  However,
     7  if during such period a county, city, or school district located in such
     8  district  provides  the exemption for clothing and footwear described in
     9  either subparagraph (i) or (ii) of paragraph thirty of  subdivision  (a)
    10  of section eleven hundred fifteen of this article from its taxes imposed

    11  pursuant  to  the  authority of subpart B of part one of article twenty-
    12  nine of this chapter, then the commissioner shall determine  and  calcu-
    13  late  the  amount  of  revenue  foregone  in such county, city or school
    14  district on account of the exemptions of both the state and the  county,
    15  city  or  school  district  and the state and the county, city or school
    16  district shall each be responsible for fifty  percent  of  such  revenue
    17  foregone  in  accordance  with the foregoing provisions of this subdivi-
    18  sion.
    19    § 3. Paragraph 1 of subdivision (a) of section 1210 of the tax law, as
    20  amended by chapter 306 of the laws of 2005, subparagraph (i) as  amended
    21  by section 34 of part S-1 of chapter 57 of the laws of 2009 and subpara-

    22  graph  (ii) as amended by chapter 144 of the laws of 2006, is amended to
    23  read as follows:
    24    (1) [(i)] Either, all of the taxes described in  article  twenty-eight
    25  of  this  chapter,  at  the  same  uniform  rate,  as to which taxes all
    26  provisions of the local laws, ordinances or  resolutions  imposing  such
    27  taxes  shall  be  identical,  except  as to rate and except as otherwise
    28  provided, with the corresponding  provisions  in  such  article  twenty-
    29  eight,  including  the definition and exemption provisions of such arti-
    30  cle, so far as the provisions of such article twenty-eight can  be  made
    31  applicable  to  the  taxes  imposed by such city or county and with such
    32  limitations and special provisions as are set forth in this article. The
    33  taxes authorized under this subdivision may not be imposed by a city  or

    34  county  unless the local law, ordinance or resolution imposes such taxes
    35  so as to include all portions and all  types  of  receipts,  charges  or
    36  rents, subject to state tax under sections eleven hundred five and elev-
    37  en  hundred  ten  of this chapter, except as otherwise provided. (i) Any
    38  local law, ordinance or resolution enacted by any city of less than  one
    39  million  or by any county or school district, imposing the taxes author-
    40  ized by this subdivision, shall, notwithstanding any provision of law to
    41  the contrary, exclude from the operation of such local taxes  all  sales
    42  of  tangible  personal  property  for  use  or  consumption directly and
    43  predominantly in the production  of  tangible  personal  property,  gas,
    44  electricity,  refrigeration  or steam, for sale, by manufacturing, proc-
    45  essing, generating, assembly, refining, mining or  extracting;  and  all

    46  sales of tangible personal property for use or consumption predominantly
    47  either  in  the  production  of tangible personal property, for sale, by
    48  farming or in a commercial horse boarding operation, or  in  both;  and,
    49  unless such city, county or school district elects otherwise, shall omit
    50  the  provision  for credit or refund contained in clause six of subdivi-
    51  sion (a) or subdivision (d) of section eleven hundred nineteen  of  this
    52  chapter.  (ii)  Any  local  law,  ordinance or resolution enacted by any
    53  city, county or school district, imposing the taxes authorized  by  this
    54  subdivision,  shall  omit the residential solar energy systems equipment
    55  exemption provided for in subdivision (ee) and the clothing and footwear
    56  exemption provided for in paragraph thirty of subdivision (a) of section

        S. 6610--C                         81                         A. 9710--D
 
     1  eleven hundred fifteen of this chapter,  unless  such  city,  county  or
     2  school  district  elects  otherwise  as to either such residential solar
     3  energy  systems  equipment  exemption  or  such  clothing  and  footwear
     4  exemption.
     5    [(ii)  Notwithstanding any other provision of the law to the contrary,
     6  any county, imposing the taxes authorized by this subdivision, having  a
     7  population  of  not  less  than one hundred thirty-nine thousand and not
     8  more than one hundred forty thousand, determined in accordance with  the
     9  two  thousand  decennial  federal census, may by local law, ordinance or
    10  resolution elect to exempt from such local sales  and  compensating  use

    11  taxes clothing and footwear, as defined in paragraph fifteen of subdivi-
    12  sion  (b)  of  section eleven hundred one of this chapter, for which the
    13  receipt or consideration given or contracted to be given  is  less  than
    14  one  hundred  ten  dollars per article of clothing, per pair of shoes or
    15  other articles of footwear or per item  used  or  consumed  to  make  or
    16  repair such clothing and which becomes a physical component part of such
    17  clothing. Every such county shall comply with the provisions of subdivi-
    18  sions  (d) and (e) of this section, including such provisions applicable
    19  to providing or repealing the exemption described in paragraph thirty of
    20  subdivision (a) of section eleven hundred fifteen of this chapter.]

    21    § 4. Subdivision (k) of section 1210 of the tax law is REPEALED.
    22    § 5. Notwithstanding any provision of state or local law, ordinance or
    23  resolution to the contrary: (a)  A  county,  city,  or  school  district
    24  imposing  sales  and compensating use taxes pursuant to the authority of
    25  subpart B of part one of article 29 of this chapter may,  regardless  of
    26  whether  it does or does not provide the clothing and footwear exemption
    27  as it exists before  this  act  shall  have  become  a  law,  elect  the
    28  exemption  for  clothing  and  footwear described in subparagraph (i) of
    29  paragraph thirty of subdivision (a) of section 1115 of the tax  law,  as
    30  amended  by  section one of this act, for the period commencing April 1,
    31  2011, and ending March 31, 2012, and  may  also  elect  to  continue  to
    32  provide  the  then-to-exist  clothing  and footwear exemption after that

    33  period, by amending its local law,  ordinance,  or  resolution  imposing
    34  such  taxes  in  exactly the manner and format prescribed by the commis-
    35  sioner of taxation and finance, without any additions or deletions what-
    36  soever, and otherwise in accordance with the provisions of  subdivisions
    37  (d)  and (e) of section 1210 or section 1211 or subdivisions (e) and (f)
    38  of section 1212 of the tax law.
    39    (b) Nothing in this act shall be construed as limiting  the  authority
    40  of a county, city, or school district which imposes sales and compensat-
    41  ing  use  taxes  pursuant to the authority of subdivision (a) of section
    42  1210 or section 1211 or 1212 of the tax law from continuing  to  provide
    43  the  exemption  for  clothing and footwear costing less than 110 dollars
    44  per item, or to elect or repeal that exemption, in  exactly  the  manner

    45  and format prescribed by the commissioner of taxation and finance, with-
    46  out  any  additions or deletions whatsoever, and otherwise in accordance
    47  with the provisions of subdivisions (d)  and  (e)  of  section  1210  or
    48  section 1211 or subdivisions (e) and (f) of section 1212 of the tax law.
    49    §  6.  This  act shall take effect October 1, 2010, and shall apply in
    50  accordance with applicable transitional provisions in sections 1106  and
    51  1217  of the tax law; provided that section one of this act shall expire
    52  April 1, 2012, whereupon paragraph 30 of subdivision (a) of section 1115
    53  of the tax law shall be restored to read as it did before this act shall
    54  have become a law and such restored provision shall apply on  and  after
    55  April  1, 2012, in accordance with applicable transitional provisions in
    56  sections 1106 and 1217 of the tax law, and further that section two-a of

        S. 6610--C                         82                         A. 9710--D
 
     1  this act shall expire April 1, 2012, and be deemed  repealed;  provided,
     2  further, that section five of this act shall take effect immediately.
 
     3                                   PART HH
 
     4    Section 1. Subsection (a) of section 615 of the tax law, as amended by
     5  chapter 28 of the laws of 1987, is amended to read as follows:
     6    (a)  General.  If  federal  taxable income of a resident individual is
     7  determined by itemizing  deductions  from  his  federal  adjusted  gross
     8  income,  he  may elect to deduct his New York itemized deduction in lieu
     9  of his New York standard deduction. The New York itemized deduction of a
    10  resident individual means the total amount of his deductions from feder-
    11  al adjusted gross income, other than  federal  deductions  for  personal

    12  exemptions, as provided in the laws of the United States for the taxable
    13  year,  with  the  modifications  specified  in  this  section, except as
    14  provided for under [subsection] subsections (f) and (g) of this section.
    15    § 2. Subsection (f) of section 615 of  the  tax  law,  as  amended  by
    16  section  1  of part W-1 of chapter 57 of the laws of 2009, is amended to
    17  read as follows:
    18    (f) [The] Except as provided under subsection (g) of this section, the
    19  New York itemized deduction otherwise allowable under this section shall
    20  be reduced by the sum of the amounts determined under paragraphs  one[,]
    21  and two [and three] of this subsection.
    22    (1)  An  amount  equal  to  the  New York itemized deduction otherwise
    23  allowable under subsection (a) of this section, multiplied by a percent-

    24  age, such percentage to be determined by multiplying, for taxable  years
    25  beginning in nineteen hundred eighty-eight, ten percent, and for taxable
    26  years   beginning   after  nineteen  hundred  eighty-eight,  twenty-five
    27  percent, by a fraction,
    28    (A) in the case of  an  unmarried  individual  or  married  individual
    29  filing  a separate return, the numerator of which is the lesser of fifty
    30  thousand dollars or the excess of such individual's  New  York  adjusted
    31  gross  income  over  one hundred thousand dollars and the denominator of
    32  which is fifty thousand dollars;
    33    (B) in the case of a married individual filing a  joint  return  or  a
    34  surviving spouse, the numerator of which is the lesser of fifty thousand
    35  dollars  or  the  excess  of  such  individual's New York adjusted gross
    36  income over two hundred thousand dollars and the denominator of which is
    37  fifty thousand dollars;

    38    (C) in the case of a head of household, the numerator of which is  the
    39  lesser  of fifty thousand dollars or the excess of such individual's New
    40  York adjusted gross income over one hundred fifty thousand  dollars  and
    41  the denominator of which is fifty thousand dollars.
    42    (2)  An amount equal to the New York itemized deduction of an individ-
    43  ual otherwise allowable under subsection (a) of this section, multiplied
    44  by a percentage, such percentage to be determined  by  multiplying,  for
    45  taxable  years  beginning in nineteen hundred eighty-eight, ten percent,
    46  and for taxable years beginning  after  nineteen  hundred  eighty-eight,
    47  twenty-five percent, by a fraction, the numerator of which is the lesser
    48  of  fifty  thousand  dollars or the excess of such individual's New York
    49  adjusted gross income over four hundred  seventy-five  thousand  dollars

    50  and the denominator of which is fifty thousand dollars.
    51    [(3)  With  respect  to  an  individual  whose New York adjusted gross
    52  income is over one million dollars, an amount  equal  to  the  New  York
    53  itemized deduction of an individual otherwise allowable under subsection
    54  (a) of this section, except the portion of the deduction attributable to
        S. 6610--C                         83                         A. 9710--D

     1  any charitable contribution allowed under section one hundred seventy of
     2  the  internal  revenue  code,  multiplied  by fifty percent, for taxable
     3  years beginning after two thousand eight.]
     4    §  3. Section 615 of the tax law is amended by adding a new subsection
     5  (g) to read as follows:

     6    (g)(1) With respect to an individual whose  New  York  adjusted  gross
     7  income is over one million dollars and no more than ten million dollars,
     8  the  New  York  itemized  deduction  shall  be  an amount equal to fifty
     9  percent of any charitable contribution deduction allowed  under  section
    10  one  hundred  seventy  of  the  internal  revenue code for taxable years
    11  beginning after two thousand nine and before two thousand thirteen. With
    12  respect to an individual whose New York adjusted gross  income  is  over
    13  one  million dollars, the New York itemized deduction shall be an amount
    14  equal to fifty percent of any charitable contribution deduction  allowed
    15  under section one hundred seventy of the internal revenue code for taxa-

    16  ble years beginning in two thousand nine or after two thousand twelve.
    17    (2) With respect to an individual whose New York adjusted gross income
    18  is over ten million dollars, the New York itemized deduction shall be an
    19  amount  equal  to  twenty-five  percent  of  any charitable contribution
    20  deduction allowed under section one  hundred  seventy  of  the  internal
    21  revenue  code  for  taxable  years beginning after two thousand nine and
    22  ending before two thousand thirteen.
    23    § 4. Clause (ii) of subparagraph (B) of paragraph 3 of subsection  (c)
    24  of  section  685  of  the tax law, as separately amended by section 2 of
    25  part W-1 and section 4 of part Z-1 of chapter 57 of the laws of 2009, is
    26  amended to read as follows:
    27    (ii) one hundred percent of the tax shown on the return of  the  indi-

    28  vidual  for the preceding taxable year. Provided, however, the tax shown
    29  on such return for taxable years beginning in two thousand two shall  be
    30  the  tax  calculated  as  if  such  years  began  in two thousand three.
    31  Provided further, however, that the tax shown on such return for taxable
    32  years beginning in two thousand eight shall be calculated  as  if  para-
    33  graph  three  of  subsection  (f) of section six hundred fifteen of this
    34  article has been in effect for taxable years beginning in  two  thousand
    35  eight.    Further provided that the tax shown on such return for taxable
    36  years beginning in two thousand eight shall be the tax calculated as  if
    37  such  years began in two thousand nine.  Provided, however, that the tax
    38  shown on such return for taxable years beginning in  two  thousand  nine

    39  shall be calculated as if paragraph two of subsection (g) of section six
    40  hundred  fifteen  of this article was in effect for taxable years begin-
    41  ning in two thousand nine and ending before two thousand thirteen.
    42    § 5. Subdivision (a) of section 11-1715 of the administrative code  of
    43  the  city of New York, as amended by chapter 333 of the laws of 1987, is
    44  amended to read as follows:
    45    (a) General. If federal taxable income of a city  resident  individual
    46  is  determined  by  itemizing deductions from his federal adjusted gross
    47  income, such resident individual may elect to deduct his  city  itemized
    48  deduction  in  lieu  of  his city standard deduction.  The city itemized
    49  deduction of a city resident individual means the total  amount  of  his
    50  deductions  from  federal  adjusted  gross  income,  other  than federal

    51  deductions for personal exemptions, as  provided  in  the  laws  of  the
    52  United  States for the taxable year, with the modifications specified in
    53  this section, except as provided for  under  [subdivision]  subdivisions
    54  (f) and (g) of this section.
        S. 6610--C                         84                         A. 9710--D
 
     1    §  6. Subdivision (f) of section 11-1715 of the administrative code of
     2  the city of New York, as amended by section 3 of part W-1 of chapter  57
     3  of the laws of 2009, is amended to read as follows:
     4    (f)  [The]  Except as otherwise provided under subdivision (g) of this
     5  section, the city itemized  deduction  otherwise  allowable  under  this
     6  section  shall  be  reduced  by  the sum of the amounts determined under

     7  paragraphs one[,] and two [and three] of this subdivision.
     8    (1) An amount equal to the city itemized deduction otherwise allowable
     9  under subdivision (a) of this section, multiplied by a percentage,  such
    10  percentage  to be determined by multiplying, for taxable years beginning
    11  in nineteen hundred eighty-eight, ten percent,  and  for  taxable  years
    12  beginning after nineteen hundred eighty-eight, twenty-five percent, by a
    13  fraction,
    14    (A)  in  the  case  of  an  unmarried individual or married individual
    15  filing a separate return, the numerator of which is the lesser of  fifty
    16  thousand  dollars or the excess of such individual's city adjusted gross
    17  income over one hundred thousand dollars and the denominator of which is
    18  fifty thousand dollars;
    19    (B) in the case of a married individual filing a  joint  return  or  a

    20  surviving spouse, the numerator of which is the lesser of fifty thousand
    21  dollars  or  the  excess of such individual's city adjusted gross income
    22  over two hundred thousand dollars and the denominator of which is  fifty
    23  thousand dollars;
    24    (C)  in the case of a head of household, the numerator of which is the
    25  lesser of fifty thousand dollars or the excess of such individual's city
    26  adjusted gross income over one hundred fifty thousand  dollars  and  the
    27  denominator of which is fifty thousand dollars.
    28    (2)  An  amount  equal to the city itemized deduction of an individual
    29  otherwise allowable under subdivision (a) of this section, multiplied by
    30  a percentage, such percentage to be determined by multiplying, for taxa-
    31  ble years beginning in nineteen hundred eighty-eight, ten  percent,  and
    32  for  taxable  years beginning after nineteen hundred eighty-eight, twen-

    33  ty-five percent, by a fraction, the numerator of which is the lesser  of
    34  fifty  thousand dollars or the excess of such individual's city adjusted
    35  gross income over four hundred seventy-five  thousand  dollars  and  the
    36  denominator of which is fifty thousand dollars.
    37    [(3) With respect to an individual whose city adjusted gross income is
    38  over one million dollars, an amount equal to the city itemized deduction
    39  of  an  individual  otherwise  allowable  under  subdivision (a) of this
    40  section, except the portion of the deduction attributable to any  chari-
    41  table  contribution  allowed  under  section  one hundred seventy of the
    42  internal revenue code, multiplied by fifty percent,  for  taxable  years
    43  beginning after two thousand eight.]

    44    §  7.  Section  11-1715  of the administrative code of the city of New
    45  York is amended by adding a new subdivision (g) to read as follows:
    46    (g) (1) With respect to an individual whose New  York  adjusted  gross
    47  income is over one million dollars but no more than ten million dollars,
    48  the  New  York  itemized  deduction  shall  be  an amount equal to fifty
    49  percent of any charitable contribution deduction allowed  under  section
    50  one  hundred  seventy  of  the  internal  revenue code for taxable years
    51  beginning after two thousand nine and before two thousand thirteen. With
    52  respect to an individual whose New York adjusted gross  income  is  over
    53  one  million dollars, the New York itemized deduction shall be an amount

    54  equal to fifty percent of any charitable contribution deduction  allowed
    55  under section one hundred seventy of the internal revenue code for taxa-
    56  ble years beginning in two thousand nine or after two thousand twelve.
        S. 6610--C                         85                         A. 9710--D
 
     1    (2) With respect to an individual whose New York adjusted gross income
     2  is over ten million dollars, the New York itemized deduction shall be an
     3  amount  equal  to  twenty-five  percent  of  any charitable contribution
     4  deduction allowed under section one  hundred  seventy  of  the  internal
     5  revenue code for taxable years beginning after two thousand nine.
     6    § 8. Clause (ii) of subparagraph (B) of paragraph 3 of subdivision (c)

     7  of  section  11-1785 of the administrative code of the city of New York,
     8  as amended by section 4 of part W-1 of chapter 57 of the laws  of  2009,
     9  is amended to read as follows:
    10    (ii)  one  hundred percent of the tax shown on the return of the indi-
    11  vidual for the preceding taxable year. Provided, however, that  the  tax
    12  shown  on  such return for taxable years beginning in two thousand eight
    13  shall be calculated as if paragraph three of subdivision (f) of  section
    14  11-1715 of this chapter was in effect for taxable years beginning in two
    15  thousand  eight.    Provided, however, that the tax shown on such return
    16  for taxable years beginning in two thousand nine shall be calculated  as
    17  if  paragraph  two of subdivision (g) of section 11-1715 of this chapter
    18  was in effect for taxable years beginning in two thousand nine.

    19    § 9. For taxable years beginning on  or  after  January  1,  2010  and
    20  before  January  1,  2011,  no  addition  to tax under subsection (c) of
    21  section 685 of the tax law, or subdivision (c) of section 11-1785 of the
    22  administrative code of the city  of  New  York  shall  be  imposed  with
    23  respect  to any underpayment attributable to the amendments made by this
    24  act of any estimated taxes that are required to be  paid  prior  to  the
    25  effective date of this act, provided that the taxpayer timely made those
    26  payments.
    27    §  9-a. Notwithstanding any other provision of law, the governing body
    28  of a city of one million or more may elect not to impose the  limitation
    29  on charitable contributions as provided for in sections five, six, seven
    30  and eight of this act.
    31    § 10. This act shall take effect immediately.
 
    32                                   PART II
 

    33    Section  1.  Subdivision  2  of section 1309 of the abandoned property
    34  law, as amended by chapter 591 of the laws of 1979, is amended  to  read
    35  as follows:
    36    2.  Any  amount held or owing by any such organization for the payment
    37  of a money order, or for the payment of any instrument drawn  or  issued
    38  to  effect  the  payment therefor, sold by such organization on or after
    39  January first, nineteen hundred thirty shall be deemed abandoned proper-
    40  ty when such amount has remained unpaid to the person  entitled  thereto
    41  for [seven] five years and
    42    (a)  the  last known address of such entitled person, according to the
    43  records of such organization is located within this state, or
    44    (b) such organization is incorporated in  this  state  and  such  last
    45  known  address  cannot be obtained from the records of such organization

    46  and the records of such organization do not disclose the place  of  sale
    47  of the money order or instrument, or
    48    (c)  such  organization  is  incorporated  in this state and such last
    49  known address is located in a state not having in effect a statute under
    50  which such amount is payable to such state as  unclaimed,  abandoned  or
    51  escheated property, or
    52    (d)  such  organization is incorporated in this state or another state
    53  or foreign country and such last known  address  is  not  shown  on  the
        S. 6610--C                         86                         A. 9710--D
 
     1  records  of  such organization and such records disclosed that the place
     2  of sale of the money order or instrument was in this state.
     3    Payment  to  the  state  comptroller pursuant to paragraph (b) of this
     4  subdivision shall be subject to the right of any other state,  the  laws

     5  of  which  provide  for  escheat  or custodial taking of such amount, to
     6  recover such amount upon proof that the last known address of the person
     7  entitled thereto or place of sale of the money order or  instrument  was
     8  within that other state's borders.
     9    Payment  to  the  state  comptroller pursuant to paragraph (c) of this
    10  subdivision shall be subject to the right of the  state  of  last  known
    11  address  to recover such amount if and when the law of the state of such
    12  last known address makes provision for escheat or  custodial  taking  of
    13  such amount.
    14    § 2. Section 1315 of the abandoned property law, as amended by chapter
    15  166  of  the  laws  of  1991,  subdivision 1 as amended by section 6 and
    16  subdivision 1-a as added by section 7 of part T of  chapter  62  of  the
    17  laws  of 2006 and subdivision 4 as added by section 3 of part P of chap-

    18  ter 62 of the laws of 2003, is amended to read as follows:
    19    § 1315. Miscellaneous unclaimed property. This section shall encompass
    20  the following miscellaneous unclaimed property not otherwise covered  by
    21  any  other  section  of law. Such property shall be paid or delivered to
    22  the state comptroller at such times and shall be accompanied by  reports
    23  in  such  form as the state comptroller may prescribe. 1. [Any unclaimed
    24  amount for services not rendered  or  for  goods  not  delivered,  which
    25  amount  was received after July first, nineteen hundred seventy-four, or
    26  in the case of a public utility company  as  that  term  is  defined  in
    27  subdivision twenty-three of section two of the public service law, on or
    28  after July first, nineteen hundred eighty, and any] Any unclaimed amount

    29  representing  unredeemed  gift  certificates sold after December thirty-
    30  first, nineteen hundred eighty-three, including  gift  certificates  for
    31  merchandise  only in which case the face value of such certificate shall
    32  be deemed the amount deemed abandoned, and owing in this state, or  held
    33  by any corporation (other than a public corporation), joint stock compa-
    34  ny,  individual,  association  of  two or more individuals, committee or
    35  business trust in this state, and which has remained  unclaimed  by  the
    36  owner of such amount for five years, shall be deemed abandoned property.
    37    1-a.  Any  amount  representing outstanding checks issued on and after
    38  July first, nineteen hundred seventy-four in payment for  goods  or  for
    39  services,  and  owing  in  this state, or held by any corporation (other
    40  than a public corporation), joint stock company, individual, association

    41  of two or more individuals, committee or business trust in  this  state,
    42  and  which  has remained unclaimed by the owner of such amount for three
    43  years, shall be deemed abandoned property.
    44    1-b. Any unclaimed amount for services not rendered or for  goods  not
    45  delivered,  which amount was received after July first, nineteen hundred
    46  seventy-four, or in the case of a public utility company as that term is
    47  defined in subdivision twenty-three of section two of the public service
    48  law, on or after July first, nineteen hundred eighty which has  remained
    49  unclaimed  by  the owner of such amount for three years, shall be deemed
    50  abandoned property.
    51    2. Except as  otherwise  provided  by  law,  any  amount  representing
    52  unclaimed  money  or  securities  and held in escrow or otherwise by any

    53  corporation (other than a  public  corporation),  joint  stock  company,
    54  individual,  association  of two or more individuals, committee or busi-
    55  ness trust, to ensure the performance of any duty or  obligation,  shall
    56  be deemed abandoned property when:
        S. 6610--C                         87                         A. 9710--D
 
     1    a. such amount is held or owing in this state, and
     2    b.  such  amount has remained unclaimed by the person or persons enti-
     3  tled thereto for five years, except
     4    c. where the duty or obligation for which such  amount  was  deposited
     5  has  not  been  performed  and  such performance is still required, such
     6  amounts shall not be deemed abandoned property.
     7    3. Any amount representing an unpaid lottery prize determined  by  the
     8  division  of the lottery pursuant to section sixteen hundred fourteen of

     9  the tax law to have been abandoned shall be  deemed  abandoned  property
    10  and shall be paid to the state comptroller.
    11    4.  Any  amount  representing  an  unpaid check or draft issued by the
    12  state of New York which shall have remained unpaid after one  year  from
    13  the  date  of issuance in accordance with section one hundred two of the
    14  state finance law shall be deemed abandoned property and shall  be  paid
    15  to the state comptroller.
    16    § 3. This act shall take effect immediately.
 
    17                                   PART JJ
 
    18    Intentionally omitted.
 
    19                                   PART KK
 
    20    Section  1. Subdivision 6 of section 208 of the tax law, as amended by
    21  section 2 of part M of chapter 407 of the laws of 1999,  is  amended  to
    22  read as follows:
    23    6.  The term "investment income" means income, including capital gains

    24  in excess of capital losses, from  investment  capital,  to  the  extent
    25  included  in computing entire net income, less, (a) in the discretion of
    26  the commissioner, any  deductions  allowable  in  computing  entire  net
    27  income which are directly or indirectly attributable to investment capi-
    28  tal  or  investment  income, [and] (b) such portion of any net operating
    29  loss deduction allowable in computing entire net income, as the  invest-
    30  ment  income,  before such deduction, bears to entire net income, before
    31  such deduction, and (c) any if capital gain included in federal  taxable
    32  income  that  has  to  be recharacterized as business income pursuant to
    33  paragraph (r) of subdivision nine of this  section;  provided,  however,
    34  that in no case shall investment income exceed entire net income;

    35    §  2.  Paragraph (f) of subdivision 9 of section 208 of the tax law is
    36  amended by adding a new subparagraph 6 to read as follows:
    37    (6) the net operating loss deduction allowed under section one hundred
    38  seventy-two of the internal revenue code  shall  for  purposes  of  this
    39  paragraph  be  determined taking into consideration the re-characteriza-
    40  tion of income pursuant to paragraph (r) of this subdivision.
    41    § 3. Subdivision 9 of section 208 of the tax law is amended by  adding
    42  a new paragraph (r) to read as follows:
    43    (r)  Special rule for corporate partners performing investment manage-
    44  ment services. In the case of a taxpayer that is a partner who  performs
    45  investment  management services (as defined in subsection (h) of section

    46  six hundred thirty-one of this chapter) for the partnership, the taxpay-
    47  er will not be treated as a partner for purposes of  this  article  with
    48  respect  to  the  amount  of the partner's distributive share of income,
    49  gain, loss and deduction (including any guaranteed payments) which is in
    50  excess of the amount that such distributive share would have been if the
    51  partner had performed no investment management services.  Instead,  such
    52  excess  amount  shall  be  treated as an amount received from a trade or
        S. 6610--C                         88                         A. 9710--D
 
     1  business carried on by the taxpayer, and notwithstanding  any  state  or
     2  federal  law  to the contrary, such excess amount shall be characterized

     3  as a payment for services rendered. For purposes of this paragraph,  the
     4  amount  of the distributive share that would have been determined if the
     5  partner performed no services, shall not be less than zero.
     6    § 4. Paragraph (a) of subdivision 3 of section 210 of the tax  law  is
     7  amended by adding a new subparagraph (6-a) to read as follows:
     8    (6-a)  Rule  for  investment  management  services to a partnership or
     9  other entity. For purposes of subparagraph two of  this  paragraph,  the
    10  amount  of  distributive  share  of  partnership  income,  gain, loss or
    11  deduction (including any guaranteed payments) received as a partner by a
    12  corporation which renders investment management services to  a  partner-
    13  ship  or  other  entity,  as  defined  in  subsection (h) of section six

    14  hundred thirty-one of this chapter, which is in  excess  of  the  amount
    15  that  such  distributive  share  would  have  been  if  the  partner had
    16  performed no investment management services, shall be treated as a busi-
    17  ness receipt that arises from the performance of services. For  purposes
    18  of  this  subparagraph,  the amount of the distributive share that would
    19  have been determined if the partner performed no services, shall not  be
    20  less than zero.
    21    § 5. Subsection (b) of section 617 of the tax law, as amended by chap-
    22  ter 606 of the laws of 1984, is amended to read as follows:
    23    (b)  Character  of  items.  Each item of partnership and S corporation
    24  income, gain, loss, or deduction shall have the  same  character  for  a

    25  partner  or  shareholder  under  this  article as for federal income tax
    26  purposes. Where an item is not  characterized  for  federal  income  tax
    27  purposes,  it shall have the same character for a partner or shareholder
    28  as if realized directly from the source from which realized by the part-
    29  nership or S corporation or incurred in the same manner as  incurred  by
    30  the  partnership  or  S  corporation.    See  subsections (f) and (g) of
    31  section six hundred thirty-two for special rules for partners and share-
    32  holders performing investment management services.
    33    § 6. Subsection (d) of section 631 of the tax law, as amended by chap-
    34  ter 28 of the laws of 1987, is amended to read as follows:
    35    (d) Purchase and sale for own account.-- (1) A nonresident, other than
    36  a dealer holding property primarily for sale to customers in  the  ordi-

    37  nary  course of his trade or business, shall not be deemed to carry on a
    38  business, trade, profession or occupation in this state solely by reason
    39  of the purchase and sale of property or the purchase, sale or writing of
    40  stock option contracts, or both, for his own account.
    41    (2) This subsection shall  not  apply  to  a  partner  or  shareholder
    42  performing  investment management services as described under subsection
    43  (h) of this section.
    44    § 7. Section 631 of the tax law is amended by adding a new  subsection
    45  (h) to read as follows:
    46    (h)  Investment management services. (1) For purposes of this section,
    47  the term "investment management services" to  a  partnership,  S  corpo-
    48  ration  or other entity means providing a substantial quantity of any of

    49  the following services to the partnership, S corporation or other  enti-
    50  ty:
    51    (i)  advising  the  partnership,  S  corporation,  or entity as to the
    52  advisability of investing  in,  purchasing,  or  selling  any  specified
    53  asset, or
    54    (ii) managing, acquiring, or disposing of any specified asset, or
    55    (iii)  arranging financing with respect to acquiring specified assets,
    56  or
        S. 6610--C                         89                         A. 9710--D
 
     1    (iv) any activity in support of any service described in subparagraphs
     2  (i) through (iii) of this paragraph.
     3    (2)  For purposes of this subsection, the term "specified asset" means

     4  securities (as defined in section four hundred  seventy-five  (c)(2)  of
     5  the  internal revenue code without regard to the last sentence thereof),
     6  real estate held for rental or investment,  interests  in  partnerships,
     7  commodities  (as  defined in section four hundred seventy-five (e)(2) of
     8  the internal revenue code), or  options  or  derivative  contracts  with
     9  respect to any of the forgoing.
    10    (3)  A  partner  or  shareholder  will  not  be deemed to be providing
    11  investment management services under this subsection if at least  eighty
    12  percent  of the average fair market value of the specified assets of the
    13  partnership, S corporation or  other  entity  during  the  taxable  year
    14  consist of real estate.

    15    §  8.  Section  632  of  the  tax  law  is  amended  by adding two new
    16  subsections (f) and (g) to read as follows:
    17    (f)  Special  rule  for  partners  performing  investment   management
    18  services.  In  the  case of a partner who performs investment management
    19  services for the partnership, the partner will not be treated as a part-
    20  ner for purposes of this article with respect to the amount of the part-
    21  ner's distributive share of income, gain, loss and deduction  (including
    22  any guaranteed payments) which is in excess of the amount such distribu-
    23  tive  share  would  have been if the partner had performed no investment
    24  management services. Instead, such excess amount shall be treated as  an
    25  amount received from a trade, business, profession or occupation carried

    26  on  in the partner's own capacity for purposes of this article. Notwith-
    27  standing any state or federal law to the contrary,  such  excess  amount
    28  shall  be  characterized as a payment for services rendered for purposes
    29  of this article, and for purposes of section six hundred  thirty-one  of
    30  this  article  shall be allocated in accordance with the rules and regu-
    31  lations applicable to:
    32    (1) individuals rendering personal services in the case of an individ-
    33  ual partner, or
    34    (2) a business carried on in New York in the case of a partner that is
    35  a partnership, estate or trust, or
    36    (3) a corporation under articles nine-A and thirty-two of this chapter
    37  in the case of a partner that is an S corporation.

    38  For purposes of this subsection, the amount of  the  distributive  share
    39  that  would  have  been determined if the partner performed no services,
    40  shall not be less than zero.
    41    (g) Special rule for  shareholders  performing  investment  management
    42  services.  In  the case of a shareholder who performs investment manage-
    43  ment services for the S corporation, the shareholder will not be treated
    44  as a shareholder for purposes of this article with respect to the amount
    45  of the shareholder's pro rata share of income, gain, loss and  deduction
    46  which  is in excess of the amount such pro rata share would have been if
    47  the  shareholder  had  performed  no  investment  management   services.

    48  Instead,  such excess amount shall be treated as an amount received from
    49  a trade, business, profession or occupation carried on in the sharehold-
    50  er's own capacity for purposes  of  this  article.  Notwithstanding  any
    51  state  or federal law to the contrary, such excess amount shall be char-
    52  acterized as a payment for services rendered for purposes of this  arti-
    53  cle,  and for purposes of section six hundred thirty-one of this article
    54  shall be allocated in accordance with the rules and regulations applica-
    55  ble to:
        S. 6610--C                         90                         A. 9710--D
 
     1    (1) individuals rendering personal services in the case of an individ-
     2  ual shareholder, or

     3    (2)  a  business  carried  on in New York in the case of a shareholder
     4  that is an estate or trust.
     5  For purposes of this subsection, the amount of the pro rata  share  that
     6  would  have  been  determined  if the shareholder performed no services,
     7  shall not be less than zero.
     8    § 9. For taxable years beginning on  or  after  January  1,  2010  and
     9  before  January  1, 2011, (i) no addition to tax under subsection (c) of
    10  section 685 or subsection (c) of section 1085 of the tax  law  shall  be
    11  imposed  with respect to any underpayment attributable to the amendments
    12  made by this part of any estimated taxes that are required  to  be  paid
    13  prior  to  the enactment of this part, provided that the taxpayer timely
    14  made those payments; and (ii) the required installment of estimated  tax

    15  described  in  clause  (ii)  of  subparagraph  (B)  of  paragraph  3  of
    16  subsection (c) of section 685 of the tax law, and the exception to addi-
    17  tion for underpayment of estimated tax described in paragraph one or two
    18  of subsection (d) of section 1085 of the tax law,  in  relation  to  the
    19  preceding  year's  return, shall be calculated as if the amendments made
    20  by this part had been in effect for that entire preceding year.
    21    § 10. This act shall take effect immediately and shall apply to  taxa-
    22  ble years beginning on or after January 1, 2010.
 
    23                                   PART LL
 
    24    Intentionally omitted.
 
    25                                   PART MM
 
    26    Section  1.  Section 18 of part FF-1 of chapter 57 of the laws of 2008
    27  relating to the taxation of captive real estate  investment  trusts  and
    28  captive regulated investment companies is amended to read as follows:

    29    §  18. This act shall take effect immediately and shall apply to taxa-
    30  ble years beginning after 2007 [and before 2011;  provided  however  the
    31  provisions  of  this  act  shall  be deemed repealed January 1, 2011 for
    32  taxable years beginning on or after January 1, 2011].
    33    § 2. This act shall take effect immediately.
 
    34                                   PART NN
 
    35    Section 1. Subdivision 9 of section 2 of the  tax  law,  as  added  by
    36  section  1 of part FF-1 of chapter 57 of the laws of 2008, is amended to
    37  read as follows:
    38    9. "Captive REIT" means a REIT [(a)] that is not regularly  traded  on
    39  an  established  securities market, and ([b)] more than fifty percent of
    40  the voting stock of which is owned or controlled, directly or  indirect-

    41  ly,  by  a single [corporation] entity treated as an association taxable
    42  as a corporation under the Internal Revenue Code that is not exempt from
    43  federal income tax and is not a REIT. Any voting stock in a REIT that is
    44  held in a segregated asset account of a life insurance  corporation  (as
    45  described  in  section  817  of  the internal revenue code) shall not be
    46  taken into account for purposes of  determining  whether  a  REIT  is  a
    47  captive  REIT.    None  of the following entities shall be considered an
    48  association taxable as a corporation for purposes of this subdivision:
    49    (a) any listed Australian property trust (meaning an  Australian  unit
    50  trust  registered  as a "managed investment scheme" under the Australian

        S. 6610--C                         91                         A. 9710--D
 
     1  Corporations Act in which the principal class of units is  listed  on  a
     2  recognized  stock  exchange  in  Australia and is regularly traded on an
     3  established securities market), or  an  entity  organized  as  a  trust,
     4  provided  that  a  listed  Australian  property  trust owns or controls,
     5  directly or indirectly, seventy-five percent or more of the voting power
     6  or value of the beneficial interests or shares of such trust; or
     7    (b) any qualified foreign entity, meaning a corporation, trust,  asso-
     8  ciation  or  partnership organized outside the laws of the United States
     9  and which satisfies the following criteria:
    10    (i) at least seventy-five percent of the entity's total asset value at

    11  the close of its taxable year is represented by real estate  assets  (as
    12  defined  at  subparagraph  (B)  of  paragraph  (5)  of subsection (c) of
    13  section eight hundred fifty-six of the internal  revenue  code,  thereby
    14  including  shares  or  certificates  of  beneficial interest in any real
    15  estate investment trust), cash and cash equivalents, and  United  States
    16  Government securities;
    17    (ii)  the  entity  is not subject to tax on amounts distributed to its
    18  beneficial owners, or is exempt from entity-level taxation;
    19    (iii) the entity distributes at least eight-five percent of its  taxa-
    20  ble income (as computed in the jurisdiction in which it is organized) to
    21  the  holders  of its shares or certificates of beneficial interest on an

    22  annual basis;
    23    (iv) not more than ten percent of the voting power or  value  in  such
    24  entity  is  held  directly  or  indirectly or constructively by a single
    25  entity or individual, or the shares  or  beneficial  interests  of  such
    26  entity are regularly traded on an established securities market; and
    27    (v)  the  entity is organized in a country which has a tax treaty with
    28  the United States.
    29    § 2. This act shall take effect immediately.
 
    30                                   PART OO
 
    31    Section 1. Section 66-h of the  public  service  law,  as  amended  by
    32  section 15 of part SS-1 of chapter 57 of the laws of 2008, is amended to
    33  read as follows:
    34    § 66-h. Certain  electric corporations; payment equivalent to tax. The

    35  commission shall require each electric corporation that purchases  elec-
    36  tricity from an energy business as defined in subdivision (c) of section
    37  three hundred one-i of the tax law (1) that is a co-generation facility,
    38  as  such  term  is  defined  in subdivision two-a of section two of this
    39  chapter, or (2) that is a qualifying facility, as such term  is  defined
    40  by section two hundred one of the Public Utility Regulatory Policies Act
    41  of  1978  (Public  Law  95-617) that is a co-generation facility, or (3)
    42  that has executed or will execute a contract for the sale of electricity
    43  through negotiation with an electric corporation or an auction conducted
    44  by an electric  corporation  pursuant  to  a  competitive  bidding  plan
    45  approved  by  the  commission,  to pay, in addition to payments made for
    46  such purchased electricity under a contract with  such  electric  corpo-

    47  ration,  (i) an amount equal to the tax imposed under article thirteen-A
    48  of the tax law with respect to each Mcf of natural gas used to  generate
    49  such  electricity  and [the] (ii) with respect to contracts for the sale
    50  of electricity and/or steam executed prior to January first,  two  thou-
    51  sand, any sales and compensating use taxes imposed on [such] natural gas
    52  used in the production of electricity and/or steam by or pursuant to the
    53  authority  of section eleven hundred seven or subdivision (a) of section
    54  twelve hundred ten of the tax law, unless such  sales  and  compensating
        S. 6610--C                         92                         A. 9710--D
 
     1  use  taxes imposed are otherwise accounted for in the payments the elec-

     2  tric corporation makes under that contract; provided, however, that  any
     3  such amount paid by such electric corporation shall be recovered through
     4  a  fuel  adjustment  mechanism  authorized  by the commission; provided,
     5  further, that such amount shall not be recovered from charges for  resi-
     6  dential use provided by such electric corporation.
     7    § 2. This act shall take effect immediately.
 
     8                                   PART PP
 
     9    Section  1.  Section  24  of  part A of chapter 57 of the laws of 2009
    10  amending the education law and other  laws  relating  to  contracts  for
    11  excellence,   reporting   requirements,   electronic  format  materials,
    12  reimbursement of school districts, calculation of foundation  aid  base,
    13  foundation  amount  and  local contribution, apportionment of school aid
    14  and of current year approved  expenditures  for  debt  service,  deficit

    15  reduction  assessment, building aid, Medicaid reimbursement, grants, and
    16  maximum class size, is amended to read as follows:
    17    § 24. Deficit Reduction Assessment  Restoration.  Notwithstanding  any
    18  other provision of law to the contrary, apportionments from this section
    19  shall  by  supported  from funds appropriated for such purpose from  the
    20  state fiscal stabilization fund-education fund as funded by the American
    21  recovery and reinvestment act of 2009. For the purposes of this  section
    22  the term "fiscal year", followed by a reference to a year shall mean the
    23  period from July 1 of the preceding year to June 30 of the calendar year
    24  referenced.
    25    Funds  shall be apportioned to each school district in an amount equal
    26  to the difference, if any, of the sum of (1) the absolute value  of  the
    27  amount  set forth for each school district as "DEFICIT REDUCTION ASSESS-

    28  MENT" in the school aid computer listing produced by the commissioner in
    29  support of the executive budget request for the two  thousand  nine--two
    30  thousand  ten  school  year and entitled "BT112-1", plus (2) the current
    31  year restoration,  which  shall  equal  the  difference  of  the  amount
    32  provided  for  the 2009-10 school year through funding formulae pursuant
    33  to sections thirty-six hundred two, seven  hundred  one,  seven  hundred
    34  eleven,  seven  hundred  fifty-one,  seven hundred fifty-three, nineteen
    35  hundred fifty and forty-four hundred five of the education  law  as  set
    36  forth in the 2009-10 school aid computer listing for the current year as
    37  defined  pursuant  to section thirty-six hundred nine-a of the education
    38  law, less the amount provided for such school year through such formulae
    39  as set forth in the school aid computer listing produced by the  commis-

    40  sioner  in  support of the executive budget request for the two thousand
    41  nine--two thousand ten school year and entitled "BT112-1", plus  (3)  an
    42  amount equal to the base year restoration, which shall equal the differ-
    43  ence  of the amount provided for the 2008-09 school year through funding
    44  formulae pursuant to sections thirty-six hundred two, seven hundred one,
    45  seven hundred eleven, seven  hundred  fifty-one,  seven  hundred  fifty-
    46  three,  nineteen hundred fifty and forty-four hundred five of the educa-
    47  tion law as set forth in the 2009-10 school aid computer listing for the
    48  current year as defined pursuant to section thirty-six hundred nine-a of
    49  the education law, less the amount provided for such school year through
    50  such formulae as set forth in the school aid computer  listing  produced
    51  by  the  commissioner in support of the executive budget request for the

    52  two thousand nine--two thousand ten school year and entitled "BT112-1".
    53    Notwithstanding any other provision of law to the contrary, an  amount
    54  equal  to  the  sum  of  the  current year restoration and the base year
        S. 6610--C                         93                         A. 9710--D
 
     1  restoration shall be deducted from moneys apportioned for  the  purposes
     2  of  payments  made  pursuant to section thirty-six hundred nine-a of the
     3  education law in order to ensure that districts are not paid  an  amount
     4  in  excess  of  that  which  would otherwise receive through the state's
     5  primary elementary and secondary funding formulae.
     6    Each district shall be eligible, pursuant to applicable Federal rules,
     7  regulations  and  guidelines,  for  a  payment  for  the  2009-2010  and

     8  2010-2011  school  [year of up to seventy percent (0.7) of such funds on
     9  or after the date on which the lottery apportionment is made pursuant to
    10  subparagraph two of paragraph a of subdivision one of section thirty-six
    11  hundred nine-a of the education law  and  up  to  an  additional  thirty
    12  percent (0.3) of such funds on or after April first] years.
    13    § 2. This act shall take effect immediately.
 
    14                                   PART QQ
 
    15    Section  1.  Paragraph  f  of  subdivision  1 of section 3609-a of the
    16  education law, as added by section 21 of part A of a chapter of the laws
    17  of 2010 amending the education law and other laws relating to  contracts
    18  for  excellence,  as  proposed in legislative bills numbers S.6607-B and
    19  A.9707-C, is amended to read as follows:

    20    f. Gap elimination adjustment offset for two thousand  ten--two  thou-
    21  sand eleven. Notwithstanding any other provision of law to the contrary,
    22  the  commissioner  shall  increase payments due to each district for the
    23  two thousand ten--two thousand  eleven  school  year  pursuant  to  this
    24  section  by  an  amount  equal  to  the  product  of  [forty-one]  forty
    25  hundredths [(0.41)] and forty-five hundred thousandths (0.40045)  multi-
    26  plied  by  the net gap elimination adjustment computed for such district
    27  pursuant to paragraph e of this subdivision, and such  amount  shall  be
    28  added  to  moneys apportioned for the purposes of payments made pursuant
    29  to this section.
    30    § 2. This act shall take effect on the  same  date  and  in  the  same
    31  manner as section 21 of part A of a chapter of the laws of 2010 amending

    32  the  education  law and other laws relating to contracts for excellence,
    33  as proposed in legislative bills numbers S.6607-B  and  A.9707-C,  takes
    34  effect.
 
    35                                   PART RR
 
    36    Section  1.  Notwithstanding any other law, rule, or regulation to the
    37  contrary, the comptroller is hereby authorized and directed  to  deposit
    38  to  the  credit  of  the  capital  projects fund, reimbursement from the
    39  proceeds of notes or bonds issued by the dormitory authority for a capi-
    40  tal appropriation for $20,400,000 authorized by chapter 100 of the  laws
    41  of  2010  to  the  department  of  education for payment of services and
    42  expenses related to implementing a state longitudinal data system.
    43    § 2. The public authorities law is amended by  adding  a  new  section
    44  1680-p to read as follows:

    45    §  1680-p. Longitudinal data system. 1. Notwithstanding the provisions
    46  of any other law to the contrary, the authority is hereby authorized  to
    47  issue  bonds  or  notes in one or more series for the purpose of funding
    48  project costs for  the  implementation  of  a  state  longitudinal  data
    49  system.  The aggregate principal amount of bonds authorized to be issued
    50  pursuant  to  this  section shall not exceed twenty million four hundred
    51  thousand dollars, excluding bonds  issued  to  fund  one  or  more  debt
    52  service reserve funds, to pay costs of issuance of such bonds, and bonds
        S. 6610--C                         94                         A. 9710--D
 
     1  or  notes issued to refund or otherwise repay such bonds or notes previ-

     2  ously issued. Such bonds and notes of the authority shall not be a  debt
     3  of  the state, and the state shall not be liable thereon, nor shall they
     4  be  payable  out of any funds other than those appropriated by the state
     5  to the authority for principal, interest, and related expenses  pursuant
     6  to a service contract and such bonds and notes shall contain on the face
     7  thereof  a  statement  to  such effect. Except for purposes of complying
     8  with the internal revenue code,  any  interest  income  earned  on  bond
     9  proceeds shall only be used to pay debt service on such bonds.
    10    2.  Notwithstanding  any  other  provision  of law to the contrary, in
    11  order  to  assist  the  authority  in  undertaking  the   financing   of

    12  construction  of a state longitudinal data system but not limited to the
    13  development and purchase of computer  hardware,  software,  and  related
    14  equipment,  such amount shall include expenses made by the State Univer-
    15  sity of New York, the City University of New York and the department  of
    16  education, the director of the budget is hereby authorized to enter into
    17  one  or  more  service contracts with the authority, none of which shall
    18  exceed thirty years in duration, upon such terms and conditions  as  the
    19  director  of  the  budget  and  the  authority  agree, so as to annually
    20  provide to the authority, in the aggregate, a  sum  not  to  exceed  the
    21  principal,  interest,  and  related expenses required for such bonds and

    22  notes. Any service contract entered into pursuant to this section  shall
    23  provide  that  the  obligation  of  the  state to pay the amount therein
    24  provided shall not constitute a debt of the state within the meaning  of
    25  any  constitutional or statutory provision and shall be deemed executory
    26  only to the extent of monies available and that no  liability  shall  be
    27  incurred  by  the  state  beyond  the monies available for such purpose,
    28  subject to annual appropriation by the legislature. Any such contract or
    29  any payments made or to be made thereunder may be assigned  and  pledged
    30  by  the  authority as security for its bonds and notes, as authorized by
    31  this section.
    32    § 3. This act shall take effect immediately.
 

    33                                   PART SS
 
    34    Section 1. Subparagraph (i) of  paragraph  a  of  subdivision  5-a  of
    35  section  401  of the vehicle and traffic law, as amended by section 8 of
    36  part II of a chapter of the laws of 2010 amending the vehicle and  traf-
    37  fic law and the public officers law relating to establishing a bus rapid
    38  transit  demonstration program to restrict the use of bus lanes by means
    39  of bus lane photo devices,  as  proposed  in  legislative  bill  numbers
    40  S.6609-B and A.9909-C, is amended to read as follows:
    41    (i) If at the time of application for a registration or renewal there-
    42  of  there  is  a  certification from a court, parking violations bureau,
    43  traffic and parking violations  agency  or  administrative  tribunal  of
    44  appropriate  jurisdiction  or  administrative  tribunal  of  appropriate

    45  jurisdiction that the registrant or his or her representative failed  to
    46  appear  on the return date or any subsequent adjourned date or failed to
    47  comply with the rules and  regulations  of  an  administrative  tribunal
    48  following  entry  of a final decision in response to a total of three or
    49  more summonses or other process in the aggregate, issued within an eigh-
    50  teen month period, charging either that:   (i) such  motor  vehicle  was
    51  parked, stopped or standing, or that such motor vehicle was operated for
    52  hire  by  the registrant or his or her agent without being licensed as a
    53  motor vehicle for hire by the appropriate local authority, in  violation
    54  of  any of the provisions of this chapter or of any law, ordinance, rule
        S. 6610--C                         95                         A. 9710--D
 

     1  or regulation made by a local authority;  or  (ii)  the  registrant  was
     2  liable  in accordance with section eleven hundred eleven-a of this chap-
     3  ter or section eleven hundred eleven-b of this chapter for  a  violation
     4  of  subdivision (d) of section eleven hundred eleven of this chapter; or
     5  (iii) the registrant  was  liable  in  accordance  with  section  eleven
     6  hundred  eleven-c  of  this  chapter  for  a  violation  of  a  bus lane
     7  restriction as [as] defined in such section, the commissioner or his  or
     8  her  agent  shall deny the registration or renewal application until the
     9  applicant provides proof from the court, traffic and parking  violations
    10  agency  or  administrative tribunal wherein the charges are pending that
    11  an appearance or answer has been made or in the case of  an  administra-
    12  tive tribunal that he or she has complied with the rules and regulations

    13  of  said tribunal following entry of a final decision. Where an applica-
    14  tion is denied pursuant to this section, the commissioner may, in his or
    15  her discretion, deny a registration or renewal application to any  other
    16  person  for  the  same  vehicle  and  may deny a registration or renewal
    17  application for any other motor vehicle registered in the  name  of  the
    18  applicant  where  the commissioner has determined that such registrant's
    19  intent has been to evade the purposes of this subdivision and where  the
    20  commissioner has reasonable grounds to believe that such registration or
    21  renewal  will have the effect of defeating the purposes of this subdivi-
    22  sion. Such denial shall only remain in effect as long as  the  summonses
    23  remain  unanswered,  or  in  the case of an administrative tribunal, the
    24  registrant fails to comply with  the  rules  and  regulations  following

    25  entry of a final decision.
    26    §  2.  Paragraph 7 of subdivision (c) of section 1111-c of the vehicle
    27  and traffic law, as added by section 9 of part II of a  chapter  of  the
    28  laws  of  2010 amending the vehicle and traffic law and the public offi-
    29  cers law relating to establishing  a  bus  rapid  transit  demonstration
    30  program  to  restrict  the  use  of bus lanes by means of bus lane photo
    31  devices, as proposed in legislative bill numbers S.6609-B and  A.9909-C,
    32  is amended to read as follows:
    33    7.  "designated  bus  lane"  shall mean [an exclusive bus only traffic
    34  lane] a  lane  dedicated  for  the  exclusive  use  of  buses  with  the
    35  exceptions allowed under 4-12(m) and 4-08(a)(3) of title 34 of the rules
    36  of the city of New York.
    37    §  3.  This  act  shall  take  effect on the same date and in the same

    38  manner as section 14 of part II of a chapter of the laws of 2010  amend-
    39  ing  the vehicle and traffic law and the public officers law relating to
    40  establishing a bus rapid transit demonstration program to  restrict  the
    41  use  of  bus  lanes  by  means of bus lane photo devices, as proposed in
    42  legislative bill numbers S.6609-B and A.9909-C, takes effect.
 
    43                                   PART TT
 
    44    Section 1. The retirement and social security law is amended by adding
    45  a new section 19-a to read as follows:
    46    § 19-a.  Employer contributions for the two thousand ten -  two  thou-
    47  sand  eleven  fiscal year and subsequent fiscal years. a. In addition to
    48  the definitions in section two  of  this  article,  when  used  in  this
    49  section:
    50    (1)  "Amortizing employer" shall mean an employer that elects to amor-

    51  tize a portion of the employer's annual bill pursuant to  paragraph  one
    52  of subdivision d of this section for the two thousand ten - two thousand
    53  eleven fiscal year, or any subsequent fiscal year, regardless of whether
    54  the employer has subsequently paid in full all such amortized amounts.
        S. 6610--C                         96                         A. 9710--D
 
     1    (2)  "Amount  eligible for amortization" for a given fiscal year shall
     2  mean the amount by which an employer's actuarial contribution  for  such
     3  fiscal  year  exceeds  the  employer's  graded contribution for the same
     4  fiscal year, less any amount from the employer contribution reserve fund
     5  applied  to  reduce  the employer's payment to the retirement system for

     6  the fiscal year, provided, however, that if the employer's average actu-
     7  arial contribution rate for the fiscal year is less than nine  and  one-
     8  half percent, then the amount eligible for amortization shall be zero.
     9    (3)  "Employer's actuarial contribution" for a given fiscal year shall
    10  mean an employer's annual bill for such fiscal year exclusive  of  defi-
    11  ciency  contributions  and payments on account of group term life insur-
    12  ance, adjustments relating to prior fiscal years'  obligations,  retire-
    13  ment incentives and prior amortizations.
    14    (4)  "Employer's  annual  bill" shall mean for a given fiscal year the
    15  sum of the following amounts: (i) an employer's normal contributions for

    16  the fiscal year determined in accordance with paragraph one of  subdivi-
    17  sion  b  of  section  twenty-three of this article and the comprehensive
    18  structural reform program  implemented  pursuant  to  subdivision  b  of
    19  section  twenty-three-a  of  this  article,  including the provisions of
    20  subdivision b of section twenty-three-a of this article relating to  the
    21  required  minimum  annual  contribution  of four and one-half percent of
    22  pensionable salaries; (ii) the employer's deficiency  contributions  and
    23  administration  contributions  for the fiscal year determined in accord-
    24  ance with paragraphs two and three of subdivision b of  section  twenty-
    25  three of this article; and (iii) any payments by the employer due in the

    26  fiscal  year on account of group term life insurance, adjustments relat-
    27  ing to prior fiscal years' obligations, retirement incentives and  prior
    28  amortizations.
    29    (5)  "Employer's  average  actuarial  contribution  rate"  for a given
    30  fiscal year shall mean an employer's  actuarial  contribution  for  such
    31  fiscal  year  divided  by  the employer's projected payroll for the same
    32  fiscal year.
    33    (6) "Employer contribution reserve fund"  or  "fund"  shall  mean  the
    34  employer contribution reserve fund established pursuant to subdivision e
    35  of this section.
    36    (7)  "Employer's  graded  contribution"  for a given fiscal year shall
    37  mean the amount determined by applying the  system  graded  contribution

    38  rate  for  such  fiscal  year to an employer's projected payroll for the
    39  same fiscal year.
    40    (8) "Employer's graded payment" for a given fiscal year shall mean the
    41  amount by which an employer's graded contribution for such  fiscal  year
    42  exceeds the employer's actuarial contribution for the same fiscal year.
    43    (9)  "Prior  amortization"  shall  mean with respect to a given fiscal
    44  year any payment due in such fiscal year on  account  of  an  obligation
    45  from  a  prior  fiscal  year that an employer is permitted to pay to the
    46  retirement system on an amortized basis.
    47    (10) "System average actuarial contribution rate" for a  given  fiscal
    48  year  shall  mean  the sum of all employers' actuarial contributions for

    49  such fiscal year divided by the sum of all employers' projected  payroll
    50  for the same fiscal year.
    51    (11)  "System  graded contribution rate" for a given fiscal year shall
    52  mean the graded contribution rate for the retirement system as  a  whole
    53  determined  for  such  fiscal  year  pursuant  to  subdivision c of this
    54  section.
    55    b. Notwithstanding the provisions of this chapter or any other law  to
    56  the  contrary,  the  comptroller,  in  his or her discretion, shall have
        S. 6610--C                         97                         A. 9710--D
 
     1  authority to implement this section. If the comptroller elects to imple-
     2  ment this section, the provisions of this section  shall  apply  to  the

     3  payment  of  employer  contributions  for  the fiscal year commencing on
     4  April first, two thousand ten, and for subsequent fiscal years.
     5    c. For each fiscal year to which the provisions of this section apply,
     6  the  comptroller  shall  determine  a  graded  contribution rate for the
     7  retirement system as a whole in the manner provided in this subdivision.
     8    (1) For the two thousand ten - two thousand  eleven  fiscal  year  the
     9  system graded contribution rate shall be nine and one-half percent.
    10    (2) For the two thousand eleven - two thousand twelve fiscal year, and
    11  subsequent  fiscal  years,  system  graded  contribution  rates shall be
    12  determined as follows:
    13    (i) if the system average actuarial  contribution  rate  for  a  given

    14  fiscal year is at least nine and one-half percent and exceeds the system
    15  graded  contribution  rate  for the immediately preceding fiscal year by
    16  more than one percentage point, then the system graded contribution rate
    17  for the given fiscal year shall equal  the  system  graded  contribution
    18  rate  for  the  immediately  preceding  fiscal  year plus one percentage
    19  point, provided, however, that in  no  event  shall  the  system  graded
    20  contribution rate be less than nine and one-half percent;
    21    (ii)  if  the  system  average actuarial contribution rate for a given
    22  fiscal year is at least nine and one-half percent and either equals  the
    23  system  graded  contribution  rate  for the immediately preceding fiscal

    24  year or exceeds the system graded contribution rate for the  immediately
    25  preceding  fiscal  year by one percentage point or less, then the system
    26  graded contribution rate for the  given  fiscal  year  shall  equal  the
    27  system  average  actuarial  contribution  rate  for  such  fiscal  year,
    28  provided, however, that in no event shall the system graded contribution
    29  rate be less than nine and one-half percent;
    30    (iii) if the system average actuarial contribution rate  for  a  given
    31  fiscal  year is less than nine and one-half percent and greater than the
    32  system graded contribution rate for  the  immediately  preceding  fiscal
    33  year, then the system graded contribution rate for the given fiscal year

    34  shall equal the system actuarial contribution rate for such fiscal year;
    35    (iv)  if  the  system  average actuarial contribution rate for a given
    36  fiscal year is smaller than the system graded contribution rate for  the
    37  immediately  preceding  fiscal  year  by more than one percentage point,
    38  then the system graded contribution rate for the given fiscal year shall
    39  equal the system graded contribution rate for the immediately  preceding
    40  fiscal year minus one percentage point; and
    41    (v)  if  the  system  average  actuarial contribution rate for a given
    42  fiscal year either equals the system graded contribution  rate  for  the
    43  immediately  preceding  fiscal year or is smaller than the system graded

    44  contribution rate for the  immediately  preceding  fiscal  year  by  one
    45  percentage  point  or less, then the system graded contribution rate for
    46  the given fiscal year shall equal the system actuarial contribution rate
    47  for such fiscal year.
    48    d. (1) For any given fiscal year for which an employer's average actu-
    49  arial contribution rate exceeds the system graded contribution rate, the
    50  employer shall pay to the retirement  system  an  amount  equal  to  the
    51  employer's  annual  bill  for such year or, in lieu of paying the entire
    52  annual bill, the employer may pay an  amount  equal  to  the  employer's
    53  annual  bill less all or a portion of the employer's amount eligible for
    54  amortization for the fiscal year. If in accordance with  this  paragraph

    55  the  employer's payment to the retirement system is less than the entire
    56  amount of the employer's annual bill, then the  difference  between  the
        S. 6610--C                         98                         A. 9710--D
 
     1  employer's  annual bill, and the amount actually paid by the employer to
     2  the retirement system exclusive of any amount from the employer contrib-
     3  ution reserve fund applied to reduce the employer's  payment,  shall  be
     4  the  amount  amortized for the fiscal year. The amount amortized for the
     5  fiscal year shall be paid to  the  retirement  system  in  equal  annual
     6  installments over a ten-year period, with interest on the unpaid balance
     7  at a rate determined by the comptroller which approximates a market rate

     8  of  return on taxable fixed rate securities with similar terms issued by
     9  comparable issuers, and with the first installment due in the immediate-
    10  ly succeeding fiscal year.
    11    (2) For any given fiscal year for which the system graded contribution
    12  rate equals  or  exceeds  an  amortizing  employer's  average  actuarial
    13  contribution  rate,  the amortizing employer shall pay to the retirement
    14  system an amount equal to the employer's annual bill for such year  plus
    15  the employer's graded payment for the fiscal year.
    16    (i)  If the amortizing employer's annual bill for the fiscal year does
    17  not include an amount attributable to a  prior  amortization,  then  the
    18  employer's  graded  payment shall be paid into the employer contribution

    19  reserve fund provided for in subdivision e of this section and  credited
    20  to an account within such fund established for the employer.
    21    (ii)  If  the  amortizing  employer's  annual bill for the fiscal year
    22  includes an amount attributable to a prior amortization, the  employer's
    23  graded  payment  shall  be  used  first  to  eliminate the amount of the
    24  employer's unpaid prior amortization  balances  in  chronological  order
    25  starting  with the oldest prior amortization balance. When in any fiscal
    26  year the employer's graded payment eliminates all balances owed  on  the
    27  employer's  prior amortizations, any remaining portion of the employer's
    28  graded payment for such fiscal year, and the employer's  graded  payment

    29  in  any  subsequent  fiscal year in which the amortizing employer has no
    30  unpaid prior amortizations, shall be paid into the employer contribution
    31  reserve fund provided for in subdivision e of this section and  credited
    32  to an account within such fund established for the employer.
    33    (3)  Nothing  in this subdivision shall be construed as prohibiting an
    34  employer from pre-paying any prior amortization.
    35    e. (1) Notwithstanding any law to the contrary, there shall  be  main-
    36  tained  separate and apart from the other funds of the retirement system
    37  an employer contribution reserve fund, the assets of which shall not  be
    38  used or invested in a manner contrary to the provisions of this subdivi-

    39  sion.  The  fund shall consist of all employer contributions required to
    40  be deposited into the fund pursuant to subdivision d  of  this  section.
    41  Within  such  fund  there  shall be a separate account for each employer
    42  making such contributions and payments.
    43    (2) For any given fiscal year  for  which  (i)  the  system  actuarial
    44  contribution rate exceeds nine and one-half percent of payroll, and (ii)
    45  an  employer's  average  actuarial  contribution rate exceeds the system
    46  graded contribution rate, the balance in the employer's  account  within
    47  such  fund  shall  be  applied  to  reduce the employer's payment to the
    48  retirement system for such fiscal year in an amount not  to  exceed  the

    49  difference between the employer's actuarial contribution and the employ-
    50  er's graded contribution for the fiscal year.
    51    (3)  Notwithstanding  the provisions of paragraph two of this subdivi-
    52  sion, if at the close of any given fiscal year the balance of an employ-
    53  er's account within the fund exceeds one hundred percent of the  employ-
    54  er's payroll for such fiscal year, the excess shall be applied to reduce
    55  the  employer's payment to the retirement system for the next succeeding
    56  fiscal year.
        S. 6610--C                         99                         A. 9710--D
 
     1    (4) The assets of the fund shall be invested  in  only  the  following
     2  types of investments:

     3    (i)  obligations  of  the  United  States of America or in obligations
     4  guaranteed by agencies of the United States of America where the payment
     5  of principal and interest are guaranteed by the United States of America
     6  or in obligations of the state of New York;
     7    (ii) general obligation bonds and notes of any state other  than  this
     8  state,  provided that such bonds and notes receive the highest rating of
     9  at least one independent rating agency;
    10    (iii) obligations of, or instruments issued by or fully guaranteed  as
    11  to  principal  and  interest  by,  any  agency or instrumentality of the
    12  United States acting pursuant to a grant of authority from the  congress
    13  of  the  United  States, including, but not limited to, any federal home

    14  loan bank or banks, the Tennessee valley authority, the federal national
    15  mortgage association, the federal home loan mortgage corporation and the
    16  United States postal service;
    17    (iv) certificate of deposits that are fully secured by the  issuer  by
    18  depositing  with  the  comptroller direct or indirect obligations of the
    19  United States or its agencies or a letter of credit issued by the Feder-
    20  al Home Loan Bank; and
    21    (v) obligations of any corporation organized under  the  laws  of  any
    22  state  in  the  United  States  maturing within two hundred seventy days
    23  provided that such obligations receive the highest rating of  two  inde-
    24  pendent rating services designated by the comptroller.

    25    (5) At the close of each fiscal year, the amount of interest and earn-
    26  ings  attributable  to  each employer's account shall be computed by the
    27  actuary and certified to the comptroller,  who  shall  thereupon  credit
    28  each employer's account in accordance therewith.
    29    (6) The assets of the fund shall be excluded from the annual valuation
    30  of  the  assets  and  liabilities  of the funds of the retirement system
    31  required by section eleven of this title. The assets of the  fund  shall
    32  not be used to finance increases in pension benefits.
    33    § 2. The opening paragraph and paragraph 1 of subdivision b of section
    34  23  of the retirement and social security law, as amended by chapter 210
    35  of the laws of 1990 and clause (ii) of subparagraph (a) of  paragraph  1

    36  as  amended  by  chapter 947 of the laws of 1990, are amended to read as
    37  follows:
    38    Each employer shall make  [two]  three  contributions  annually.  They
    39  shall  be  known  as the normal contribution [as defined in subparagraph
    40  (a) of paragraph one of this subdivision and], the  deficiency  contrib-
    41  ution  [as defined in paragraph two of this subdivision], and the admin-
    42  istration contribution.   The rates thereof shall  be  computed  by  the
    43  actuary.
    44    1.  [(a)]  Normal contribution. The rate of such contribution shall be
    45  applied to the members' annual compensation as of the end of the  fiscal
    46  year. Such rate shall be a uniform and constant rate per centum of annu-
    47  al  compensation [when determined by dividing the valuation costs by the

    48  payroll amount used in the valuation. Notwithstanding any  provision  of
    49  law to the contrary, the valuation costs consist of:
    50    (i) the normal cost, which shall be the actuarial present value of the
    51  employer  provided  benefits  accrued  during  the  year, based upon the
    52  projected future salary on which benefits are expected to  be  paid,  by
    53  prorating  each employee's projected benefit over his or her total years
    54  of service;
        S. 6610--C                         100                        A. 9710--D

     1    (ii) the supplemental cost, which  shall  be  the  cost  of  providing
     2  supplemental  retirement allowance payments pursuant to subdivision e of
     3  section seventy-eight of this article;

     4    (iii)  the  administrative  cost,  which  shall be the expenses of the
     5  retirement system pursuant to paragraph three of subdivision b  of  this
     6  section;
     7    (iv)  the  prior service cost, which shall be equal to the interest on
     8  the unfunded actuarial accrued liability or surplus plus  a  portion  of
     9  the  unfunded  liability  or  surplus,  said  portion to be equal to the
    10  unfunded liability or surplus divided by the  average  future  years  of
    11  service of active employees; and
    12    (v)  the  annual amortization cost, which shall be equal to the amount
    13  of the annual amortization payment required to be paid into the system's
    14  pension accumulation fund under sections sixteen-a  and  seventeen-a  of
    15  this article.

    16    Provided,  however,  in  no  event shall the amount of contribution be
    17  less than zero.
    18    (b) The comptroller is authorized to make appropriate adjustments  for
    19  those  participating employers that have paid an amount in excess of the
    20  minimum annual amortization payment required by section  seventeen-a  of
    21  this  article.  The excess payment shall accumulate with interest earned
    22  at the rate used in  the  annual  actuarial  valuation  and  be  applied
    23  against  future  pension  contribution  requirements to insure equitable
    24  treatment of all participating employers.
    25    (c) In any year in which no contribution is required  to  the  pension
    26  accumulation  fund,  any adjustment reducing a prior year's contribution

    27  resulting from the enactment of section sixteen-b of this chapter, shall
    28  be credited with interest earned at the rate used in the annual actuari-
    29  al valuation and applied against future pension  contributions].    When
    30  applied  to  the  compensation  of  the  average  new entrant during the
    31  remaining period of his or her membership, such rate shall  be  computed
    32  to  be  sufficient  to  provide  all  the  benefits, other than those on
    33  account of prior service, granted by this article and which are  payable
    34  from funds contributed to the pension accumulation fund.
    35    Such  rate  shall be computed each year by means of an actuarial valu-
    36  ation as prescribed in section eleven of this [chapter] article  and  as

    37  authorized by section twenty-three-a of this title.
    38    § 3. The retirement and social security law is amended by adding a new
    39  section 319-a to read as follows:
    40    §  319-a.  Employer contributions for the two thousand ten - two thou-
    41  sand eleven fiscal year and subsequent fiscal years. a. In  addition  to
    42  the  definitions in section three hundred two of this article, when used
    43  in this section:
    44    (1) "Amortizing employer" shall mean an employer that elects to  amor-
    45  tize  a  portion of the employer's annual bill pursuant to paragraph one
    46  of subdivision d of this section for the two thousand ten - two thousand
    47  eleven fiscal year, or any subsequent fiscal year, regardless of whether

    48  the employer has subsequently paid in full all such amortized amounts.
    49    (2) "Amount eligible for amortization" for a given fiscal  year  shall
    50  mean  the  amount by which an employer's actuarial contribution for such
    51  fiscal year exceeds the employer's  graded  contribution  for  the  same
    52  fiscal year, less any amount from the employer contribution reserve fund
    53  applied  to  reduce  the employer's payment to the retirement system for
    54  the fiscal year, provided, however, that if the employer's average actu-
    55  arial contribution rate for the fiscal year is less than  seventeen  and
        S. 6610--C                         101                        A. 9710--D
 
     1  one-half  percent,  then  the  amount eligible for amortization shall be

     2  zero.
     3    (3)  "Employer's actuarial contribution" for a given fiscal year shall
     4  mean an employer's annual bill for such fiscal  year  exclusive  of  the
     5  deficiency  contributions  and  payments  on  account of group term life
     6  insurance, adjustments relating  to  prior  fiscal  years'  obligations,
     7  retirement incentives and prior amortizations.
     8    (4)  "Employer's  annual  bill" shall mean for a given fiscal year the
     9  sum of the following amounts: (i) an employer's normal contributions for
    10  the fiscal year determined in accordance with paragraph one of  subdivi-
    11  sion  b  of  section  three hundred twenty-three of this article and the
    12  comprehensive structural reform program implemented pursuant to subdivi-

    13  sion b of section three hundred twenty-three-a of this article,  includ-
    14  ing  the  provisions  of  subdivision b of section three hundred twenty-
    15  three-a  of  this  article  relating  to  the  required  minimum  annual
    16  contribution  of four and one-half percent of pensionable salaries; (ii)
    17  the employer's deficiency contributions and administration contributions
    18  for the fiscal year determined in accordance  with  paragraphs  two  and
    19  three  of  subdivision  b  of section three hundred twenty-three of this
    20  article; and (iii) any payments by the employer due in the  fiscal  year
    21  on  account  of group term life insurance, adjustments relating to prior
    22  fiscal years'  obligations,  retirement  incentives  and  prior  amorti-
    23  zations.

    24    (5)  "Employer's  average  actuarial  contribution  rate"  for a given
    25  fiscal year shall mean an employer's  actuarial  contribution  for  such
    26  fiscal  year  divided  by  the employer's projected payroll for the same
    27  fiscal year.
    28    (6) "Employer contribution reserve fund"  or  "fund"  shall  mean  the
    29  employer contribution reserve fund established pursuant to subdivision e
    30  of this section.
    31    (7)  "Employer's  graded  contribution"  for a given fiscal year shall
    32  mean the amount determined by applying the  employer's  graded  contrib-
    33  ution  rate  for such fiscal year to an employer's projected payroll for
    34  the same fiscal year.
    35    (8) "Employer's graded contribution rate"  for  a  given  fiscal  year

    36  shall mean (i) the system graded contribution rate for such fiscal year,
    37  or  (ii)  in  the  case  of  an  individual  employer for which a graded
    38  contribution rate has been determined pursuant  to  paragraph  three  of
    39  subdivision  c  of  this  section,  the graded contribution rate for the
    40  individual employer for such fiscal year.
    41    (9) "Employer's graded payment" for a given fiscal year shall mean the
    42  amount by which an employer's graded contribution for such  fiscal  year
    43  exceeds the employer's actuarial contribution for the same fiscal year.
    44    (10)  "Prior  amortization"  shall mean with respect to a given fiscal
    45  year any payment due in such fiscal year on  account  of  an  obligation

    46  from  a  prior  fiscal  year that an employer is permitted to pay to the
    47  retirement system on an amortized basis.
    48    (11) "System average actuarial contribution rate" for a  given  fiscal
    49  year  shall  mean  the sum of all employers' actuarial contributions for
    50  such fiscal year, divided by the sum of all employers' projected payroll
    51  for the same fiscal year.
    52    (12) "System graded contribution rate" for a given fiscal  year  shall
    53  mean  the  graded contribution rate for the retirement system as a whole
    54  determined for such fiscal year pursuant to  paragraph  one  or  two  of
    55  subdivision c of this section.
        S. 6610--C                         102                        A. 9710--D
 

     1    b.  Notwithstanding the provisions of this chapter or any other law to
     2  the contrary, the comptroller, in his  or  her  discretion,  shall  have
     3  authority to implement this section. If the comptroller elects to imple-
     4  ment  this  section,  the  provisions of this section shall apply to the
     5  payment  of  employer  contributions  for  the fiscal year commencing on
     6  April first, two thousand ten, and for subsequent fiscal years.
     7    c. For each fiscal year to which the provisions of this section apply,
     8  the comptroller shall determine  a  graded  contribution  rate  for  the
     9  retirement system as a whole in the manner provided in this subdivision.
    10    (1)  For  the  two  thousand ten - two thousand eleven fiscal year the

    11  system graded contribution rate shall be seventeen and one-half percent.
    12    (2) For the two thousand eleven - two thousand twelve fiscal year, and
    13  subsequent fiscal years,  system  graded  contribution  rates  shall  be
    14  determined as follows:
    15    (i)  if  the  system  average  actuarial contribution rate for a given
    16  fiscal year is at least seventeen and one-half percent and  exceeds  the
    17  system  graded  contribution  rate  for the immediately preceding fiscal
    18  year by more than one percentage point, then the system graded  contrib-
    19  ution  rate  for  the  given  fiscal  year shall equal the system graded
    20  contribution rate for the immediately preceding  fiscal  year  plus  one
    21  percentage  point,  provided  however, that in no event shall the system

    22  graded contribution rate be less than seventeen and one-half percent;
    23    (ii) if the system average actuarial contribution  rate  for  a  given
    24  fiscal year is at least seventeen and one-half percent and either equals
    25  the system graded contribution rate for the immediately preceding fiscal
    26  year  or exceeds the system graded contribution rate for the immediately
    27  preceding fiscal year by one percentage point or less, then  the  system
    28  graded  contribution  rate  for  the  given  fiscal year shall equal the
    29  system  average  actuarial  contribution  rate  for  such  fiscal  year,
    30  provided, however, that in no event shall the system graded contribution
    31  rate be less than seventeen and one-half percent;

    32    (iii)  if  the  system average actuarial contribution rate for a given
    33  fiscal year is less than seventeen and one-half percent and greater than
    34  the system graded contribution rate for the immediately preceding fiscal
    35  year, then the system graded contribution rate for the given fiscal year
    36  shall equal the system actuarial contribution rate for such fiscal year;
    37    (iv) if the system average actuarial contribution  rate  for  a  given
    38  fiscal  year is smaller than the system graded contribution rate for the
    39  immediately preceding fiscal year by more  than  one  percentage  point,
    40  then the system graded contribution rate for the given fiscal year shall
    41  equal  the system graded contribution rate for the immediately preceding

    42  fiscal year minus one percentage point; and
    43    (v) if the system average actuarial  contribution  rate  for  a  given
    44  fiscal  year  either  equals the system graded contribution rate for the
    45  immediately preceding fiscal year or is smaller than the  system  graded
    46  contribution  rate  for  the  immediately  preceding  fiscal year by one
    47  percentage point or less, then the system graded contribution  rate  for
    48  the given fiscal year shall equal the system actuarial contribution rate
    49  for such fiscal year.
    50    (3)  The  comptroller  shall  determine a graded contribution rate for
    51  individual employers as provided in this paragraph.
    52    (i) If the actuarial contribution rate for an  employer  for  a  given

    53  fiscal  year  is  equal  to  or greater than fifty percent of the system
    54  actuarial contribution rate for such year, and less  than  or  equal  to
    55  seventy-five  percent  of  such system actuarial contribution rate, then
    56  the graded contribution rate for the employer for the fiscal year  shall
        S. 6610--C                         103                        A. 9710--D
 
     1  equal  seventy-five  percent  of the system graded contribution for such
     2  year.
     3    (ii)  If  the  actuarial contribution rate for an employer for a given
     4  fiscal year is less than fifty percent of the system actuarial  contrib-
     5  ution  rate  for  such  year,  then the graded contribution rate for the

     6  employer for the fiscal year shall equal fifty  percent  of  the  system
     7  graded contribution rate for such year.
     8    d. (1) For any given fiscal year for which an employer's average actu-
     9  arial  contribution  rate  exceeds  the  graded  contribution  rate, the
    10  employer shall pay to the retirement  system  an  amount  equal  to  the
    11  employer's  annual  bill  for such year or, in lieu of paying the entire
    12  annual bill, the employer may pay an  amount  equal  to  the  employer's
    13  annual  bill less all or a portion of the employer's amount eligible for
    14  amortization for the fiscal year. If in accordance with  this  paragraph
    15  the  employer's payment to the retirement system is less than the entire

    16  amount of the employer's annual bill, then the  difference  between  the
    17  employer's  annual bill, and the amount actually paid by the employer to
    18  the retirement system exclusive of any amount from the employer contrib-
    19  ution reserve fund applied to reduce the employer's  payment,  shall  be
    20  the  amount  amortized for the fiscal year. The amount amortized for the
    21  fiscal year shall be paid to  the  retirement  system  in  equal  annual
    22  installments over a ten-year period, with interest on the unpaid balance
    23  at a rate determined by the comptroller which approximates a market rate
    24  of  return on taxable fixed rate securities with similar terms issued by
    25  comparable issuers, and with the first installment due in the immediate-
    26  ly succeeding fiscal year.

    27    (2) For any given fiscal year for which the system graded contribution
    28  rate equals  or  exceeds  an  amortizing  employer's  average  actuarial
    29  contribution  rate,  the amortizing employer shall pay to the retirement
    30  system an amount equal to the employer's annual bill for such year  plus
    31  the employer's graded payment for the fiscal year.
    32    (i)  If the amortizing employer's annual bill for the fiscal year does
    33  not include an amount attributable to a  prior  amortization,  then  the
    34  employer's  graded  payment shall be paid into the employer contribution
    35  reserve fund provided for in subdivision e of this section and  credited
    36  to an account within such fund established for the employer.

    37    (ii)  If  the  amortizing  employer's  annual bill for the fiscal year
    38  includes an amount attributable to a prior amortization, the  employer's
    39  graded  payment  shall  be  used  first  to  eliminate the amount of the
    40  employer's unpaid prior amortization  balances  in  chronological  order
    41  starting  with  oldest  prior amortization balance.   When in any fiscal
    42  year the employer's graded payment eliminates all balances owed  on  the
    43  employer's  prior amortizations, any remaining portion of the employer's
    44  graded payment for such fiscal year, and the employer's  graded  payment
    45  in  any  subsequent  fiscal year in which the amortizing employer has no
    46  unpaid prior amortizations, shall be paid into the employer contribution

    47  reserve fund provided for in subdivision e of this section and  credited
    48  to an account within such fund established for the employer.
    49    (3)  Nothing  in this subdivision shall be construed as prohibiting an
    50  employer from pre-paying any prior amortization.
    51    e. (1) Notwithstanding any law to the contrary, there shall  be  main-
    52  tained  separate and apart from the other funds of the retirement system
    53  an employer contribution reserve fund, the assets of which shall not  be
    54  used or invested in a manner contrary to the provisions of this subdivi-
    55  sion.  The  fund shall consist of all employer contributions required to
    56  be deposited into the fund pursuant to subdivision d  of  this  section.

        S. 6610--C                         104                        A. 9710--D
 
     1  Within  such  fund  there  shall be a separate account for each employer
     2  making such contributions and payments.
     3    (2)  For  any  given  fiscal  year  for which (i) the system actuarial
     4  contribution rate exceeds seventeen and one-half percent of payroll, and
     5  (ii) for which an employer's average actuarial contribution rate exceeds
     6  the graded contribution rate, the  balance  in  the  employer's  account
     7  within  such  fund  shall be applied to reduce the employer's payment to
     8  the retirement system for such fiscal year in an amount  not  to  exceed
     9  the  difference  between  the  employer's actuarial contribution and the
    10  employer's graded contribution for the fiscal year.

    11    (3) Notwithstanding the provisions of paragraph two of  this  subdivi-
    12  sion, if at the close of any given fiscal year the balance of an employ-
    13  er's  account within the fund exceeds one hundred percent of the employ-
    14  er's payroll for such fiscal year, the excess shall be applied to reduce
    15  the employer's payment to the retirement system for the next  succeeding
    16  fiscal year.
    17    (4)  The  assets  of  the fund shall be invested in only the following
    18  types of investments:
    19    (i) obligations of the United States  of  America  or  in  obligations
    20  guaranteed by agencies of the United States of America where the payment
    21  of principal and interest are guaranteed by the United States of America
    22  or in obligations of the state of New York;

    23    (ii)  general  obligation bonds and notes of any state other than this
    24  state, provided that such bonds and notes receive the highest rating  of
    25  at least one independent rating agency;
    26    (iii)  obligations of, or instruments issued by or fully guaranteed as
    27  to principal and interest by,  any  agency  or  instrumentality  of  the
    28  United  States acting pursuant to a grant of authority from the congress
    29  of the United States, including, but not limited to,  any  federal  home
    30  loan bank or banks, the Tennessee valley authority, the federal national
    31  mortgage association, the federal home loan mortgage corporation and the
    32  United States postal service;
    33    (iv)  certificate  of deposits that are fully secured by the issuer by

    34  depositing with the comptroller direct or indirect  obligations  of  the
    35  United States or its agencies or a letter of credit issued by the Feder-
    36  al Home Loan Bank; and
    37    (v)  obligations  of  any  corporation organized under the laws of any
    38  state in the United States maturing  within  two  hundred  seventy  days
    39  provided  that  such obligations receive the highest rating of two inde-
    40  pendent rating services designated by the comptroller.
    41    (5) At the close of each fiscal year, the amount of interest and earn-
    42  ings attributable to each employer's account shall be  computed  by  the
    43  actuary  and  certified  to  the comptroller, who shall thereupon credit
    44  each employer's account in accordance therewith.

    45    (6) The assets of the fund shall be excluded from the annual valuation
    46  of the assets and liabilities of the  funds  of  the  retirement  system
    47  required  by  section  three hundred eleven of this title. The assets of
    48  the fund shall not finance increases in pension benefits.
    49    § 4. The opening paragraph and paragraph 1 of subdivision b of section
    50  323 of the retirement and social security law, as amended by chapter 210
    51  of the laws of 1990 and clause (ii) of subparagraph (a) of  paragraph  1
    52  as  amended  by  chapter 947 of the laws of 1990, are amended to read as
    53  follows:
    54    Each employer shall make  [two]  three  contributions  annually.  They
    55  shall  be  known  as the normal contribution [as defined in subparagraph

    56  (a) of paragraph one of this subdivision and], the  deficiency  contrib-
        S. 6610--C                         105                        A. 9710--D
 
     1  ution  [as defined in paragraph two of this subdivision], and the admin-
     2  istration contribution. The rates thereof shall be computed by the actu-
     3  ary.
     4    1.  [(a)]  Normal contribution. The rate of such contribution shall be
     5  applied to the members' annual compensation as of the end of the  fiscal
     6  year. Such rate shall be a uniform and constant rate per centum of annu-
     7  al  compensation [when determined by dividing the valuation costs by the
     8  payroll amount used in the valuation. Notwithstanding any  provision  of
     9  law to the contrary, the valuation costs consist of:

    10    (i) the normal cost, which shall be the actuarial present value of the
    11  employer  provided  benefits  accrued  during  the  year, based upon the
    12  projected future salary on which benefits are expected to  be  paid,  by
    13  prorating  each employee's projected benefit over his or her total years
    14  of service;
    15    (ii) the supplemental cost, which  shall  be  the  cost  of  providing
    16  supplemental  retirement allowance payments pursuant to subdivision e of
    17  section three hundred seventy-eight of this article;
    18    (iii) the administrative cost, which shall  be  the  expenses  of  the
    19  retirement  system  pursuant to paragraph three of subdivision b of this
    20  section;
    21    (iv) the prior service cost, which shall be equal to the  interest  on

    22  the  unfunded  actuarial  accrued liability or surplus plus a portion of
    23  the unfunded liability or surplus, said  portion  to  be  equal  to  the
    24  unfunded  liability  or  surplus  divided by the average future years of
    25  service of active employees; and
    26    (v) the annual amortization cost, which shall be equal to  the  amount
    27  of the annual amortization payment required to be paid into the system's
    28  pension  accumulation  fund  under  section  three hundred sixteen-a and
    29  three hundred seventeen-a of this article.
    30    Provided, however, in no event shall the amount of  contribution  cost
    31  be less than zero.
    32    (b)  The comptroller is authorized to make appropriate adjustments for

    33  those participating employers that have paid an amount in excess of  the
    34  minimum  annual  amortization  payment required by section three hundred
    35  seventeen-a of this article. The excess payment  shall  accumulate  with
    36  interest  earned  at the rate used in the annual actuarial valuation and
    37  be applied against future pension contribution  requirements  to  insure
    38  equitable treatment of all participating employers.
    39    (c)  In  any  year in which no contribution is required to the pension
    40  accumulation fund, any adjustment reducing a prior  year's  contribution
    41  resulting  from the enactment of section three hundred sixteen-b of this
    42  chapter, shall be credited with interest earned at the rate used in  the

    43  annual  actuarial  valuation and applied against future pension contrib-
    44  utions].  When applied to the compensation of the  average  new  entrant
    45  during the remaining period of his or her membership, such rate shall be
    46  computed  to be sufficient to provide all the benefits, other than those
    47  on account of prior service, granted by this article and which are paya-
    48  ble from funds contributed to the pension accumulation fund.
    49    Such rate shall be computed each year by means of an  actuarial  valu-
    50  ation  as  prescribed  in section three hundred eleven of this [chapter]
    51  article and as authorized by section  three  hundred  twenty-three-a  of
    52  this title.
    53    § 5. This act shall take effect immediately.

          FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
          This  bill  would  amend  the Retirement and Social Security Law as it
        pertains to employer bills of the New York  State  and  Local  Employees
        S. 6610--C                         106                        A. 9710--D
 
        Retirement System (ERS) and the New York State and Local Police and Fire
        Retirement System (PFRS).
          This  bill puts in place a program that allows ERS and PFRS employers,
        if they choose to participate, to amortize a portion of their bill  with
        their  respective  Retirement  System  when employer contributions rates
        rise above certain levels. If they do this, then when rates are  falling
        below  certain  levels  and  they  have paid off all outstanding amorti-
        zations, the employer will be required to pay additional monies  into  a

        reserve fund that will be used when employer contribution rates begin to
        rise in the future.
          If  this  bill  is  enacted,  we  estimate that there would be a small
        administrative cost to the System to revise the  current  billing  proc-
        esses.
          This  estimate,  dated  February  2,  2010,  and intended for use only
        during the 2010  Legislative  Session,  is  Fiscal  Note  No.  2010-104,
        prepared  by  the  Actuary  for  the New York State and Local Employees'
        Retirement System and the New York  State  and  Local  Police  and  Fire
        Retirement System.
 
     1                                   PART UU
 
     2    Section  1.  The  New  York  state urban development corporation shall
     3  submit for approval to the director of the budget a comprehensive finan-
     4  cial plan for the corporation and  its  subsidiaries  for  expenditures,

     5  regardless  of  source, including but not limited to those from the debt
     6  service account, the excess debt service account, the housing repair and
     7  modernization fund account, the interest income account, and the econom-
     8  ic development income account, in such detail as  the  director  of  the
     9  budget may require. The director of the budget shall file copies of such
    10  financial  plan with the senate finance committee, the assembly ways and
    11  means committee and the department of audit and control  in  both  paper
    12  and electronic format.
    13    §  2. 1. Notwithstanding any provision of law to the contrary, the New
    14  York state urban development corporation shall  establish  accounts  and
    15  subaccounts  within the treasury of such corporation which shall reflect
    16  and consist of all funds made available  to  such  corporation,  at  any

    17  time,  from  any  sources for its corporate purposes. Such account shall
    18  consist of, but not be limited to, the following:
    19    (i) general and administrative accounts, which shall  consist  of  all
    20  funds made available for the operational expenses of such corporation;
    21    (ii)  general and administrative accounts of certain subsidiary corpo-
    22  rations, which shall consist of all funds made available for the  opera-
    23  tional  expenses  of  the  mortgage  loan enforcement and administration
    24  corporation and  the  42nd  street  development  project,  incorporated,
    25  provided,  however, that such subsidiary shall be established as a sepa-
    26  rate account;
    27    (iii) debt service account, which shall  consist  of  all  funds  made
    28  available  for  debt  service  payments on the outstanding general obli-
    29  gations of the corporation where the original issue  of  such  bonds  or

    30  notes  was  prior  to  April  1,  1976, and including any refinancing or
    31  renewal of such bonds and notes, provided such account shall not, in any
    32  manner, reduce any debt service reserve fund below  a  level  agreed  to
    33  pursuant  to  a  statute,  covenant or other contract between the corpo-
    34  ration and such bondholders or noteholders;
    35    (iv) excess debt service account, which shall  consist  of  all  funds
    36  made  available from the net savings achieved as a result of the refund-
        S. 6610--C                         107                        A. 9710--D
 
     1  ing of the corporation's general purpose bonds  authorized  pursuant  to
     2  resolution number 96-ud-526 of the public authorities control board. Net
     3  savings  shall  be  determined  by  the  difference  between annual debt
     4  service payments which would have been required pursuant to the refunded

     5  bonds  and the annual debt service payments for the corporation's corpo-
     6  rate purpose bonds issued to accomplish such refunding;
     7    (v) housing repair and modernization fund account, which shall consist
     8  of funds made available from the excess debt service account  to  assist
     9  in  maintaining  the residential and commercial portfolios of the corpo-
    10  ration as determined by the chairman of the corporation or his designee;
    11    (vi) buildout account, which shall consist of all funds made available
    12  for the payment of expenses associated with final settlements on remain-
    13  ing issues of construction costs and mortgage amounts on residential and
    14  nonresidential projects financed by the corporation;
    15    (vii) project repair account, which shall consist of  all  funds  made
    16  available  for  the maintenance, servicing or repairing of real property

    17  in the residential, industrial and commercial portfolios of such  corpo-
    18  rations;
    19    (viii) economic development income account, which shall consist of all
    20  payments,  including payments to compensate for any funds, time or other
    21  costs provided by the corporation in relation to nonresidential projects
    22  and all other reimbursable corporate service income from economic devel-
    23  opment projects and payments which are provided to such corporation  for
    24  purposes  of  repayment  of  funds  in  respect to any contract or other
    25  agreements entered into by the corporation which are attributable to any
    26  economic development project of the corporation, provided, however, that
    27  such account shall not include funds representing repayments  which  are
    28  to  be  returned  to  the  development  of  such project pursuant to any
    29  contract or other agreement entered into by the corporation;

    30    (ix) economic development program and project  accounts,  which  shall
    31  consist  of  all  funds made available for specific economic development
    32  programs and projects excluding any program or project authorized  by  a
    33  resolution  or  other  action of the corporation prior to April 1, 1976,
    34  and excluding any residential  project,  provided,  however,  that  each
    35  specified program and project shall be established as a separate account
    36  unless otherwise authorized pursuant to an appropriation;
    37    (x) new communities and community support account, which shall consist
    38  of  all funds made available for, and all income received from the Audu-
    39  bon and Radisson communities;
    40    (xi) Roosevelt  Island  operating  corporation  account,  which  shall
    41  consist  of  all  funds made available for, and all income received from
    42  the Roosevelt Island community;

    43    (xii) interest income account,  which  shall  consist  of  all  moneys
    44  earned  by the corporation from investment of any funds available in the
    45  accounts and subaccounts within the treasury of the corporation; and
    46    (xiii) mortgage servicing fee account,  which  shall  consist  of  all
    47  funds made available to the mortgage loan enforcement and administration
    48  corporation  for  the  payment  of  fees  to the housing special revenue
    49  account of the miscellaneous special revenue fund  associated  with  the
    50  provision  of  mortgage  servicing activities by the division of housing
    51  and community renewal.
    52    2. The amounts deposited in any such account may be interchanged  with
    53  any  other  account  for  purposes  of investment and may be commingled,
    54  provided, however, that such interchange may not  increase  or  decrease
    55  any  account,  other  than  the  debt  service account, and the interest

    56  income account, by more than five percent in the aggregate in the entire
        S. 6610--C                         108                        A. 9710--D
 
     1  period of any fiscal year of the corporation. Provided further, that  in
     2  addition  to  any other specific exception provided for in this section,
     3  the following exemptions to the above interchange provision shall  apply
     4  for  the  purposes  of  the  debt  service  account, the interest income
     5  account, the project repair account, the mortgage servicing fee account,
     6  the general and administrative account of the mortgage loan  enforcement
     7  and  administration  corporation,  excess  debt service account, housing
     8  repair and modernization fund account, Roosevelt Island operating corpo-
     9  ration account and the economic development income account:
    10    (i) Interchange from the debt service account  to  any  other  account

    11  shall be unlimited, but all such transfers from the debt service account
    12  shall  be  repaid  quarterly to such account on or before June 30, 2010,
    13  September 30, 2010, December 31, 2010 and March 31,  2011,  except  for:
    14  (A)  $30,762,000  which shall be transferred to the general and adminis-
    15  trative account from the debt service account during  the  state  fiscal
    16  year  commencing April 1, 2010, and such amount of $30,762,000 shall not
    17  be repaid to the debt service account; (B)  $2,000,000  which  shall  be
    18  transferred to the general and administrative account of the 42nd street
    19  development  project, incorporated and which shall be repaid pursuant to
    20  a repayment agreement as set out in paragraph (vi) of this subdivision.
    21    (ii) Interchange from the excess debt service account shall be  unlim-
    22  ited,  but all such transfers from the excess debt service account shall

    23  be repaid quarterly to such account on or before June 30, 2010,  Septem-
    24  ber 30, 2010, December 31, 2010, and March 31, 2011, except for:  (A) an
    25  amount  sufficient  to  fund  the  housing repair and modernization fund
    26  account to assist in maintaining the residential and commercial  portfo-
    27  lios of the corporation as determined by the chairman of the corporation
    28  or  his  designee; (B) an amount necessary to invest in the job develop-
    29  ment authority, as certified by the chairman of  the  authority  or  his
    30  designee, to provide funds in order to pay lawful debts of the authority
    31  provided  that  the corporation shall not make any payment or investment
    32  for the benefit of the authority unless and until it  has  independently
    33  verified  that the authority does not have sufficient funds available to
    34  pay its lawfully incurred  debts  and  obligations,  and  with  any  net

    35  savings  which  remain  and are available; (C) all remaining balances of
    36  funds contained in the excess debt service account shall be remitted  to
    37  the  credit  of  the state of New York general fund not later than March
    38  31, 2010.
    39    (iii) Interchange from the interest income account, other than to  the
    40  general  and administrative account of the mortgage loan enforcement and
    41  administration corporation, may be unlimited.
    42    (iv) Interchange to the project repair account from any account may be
    43  unlimited, and the corporation shall transfer up to $10,000,000 to  such
    44  account  from  any  account  during  the fiscal year commencing April 1,
    45  2010, and such amount up to $10,000,000 shall not be repaid.
    46    (v) Interchange between the general and administrative account of  the
    47  mortgage  loan  enforcement and administration corporation and any other

    48  account shall comply with the provisions specified herein,  except  that
    49  up  to  $1,700,000  shall  be transferred to such subsidiary corporation
    50  during the fiscal year commencing April 1,  2010  and  any  such  amount
    51  shall not be repaid.
    52    (vi)  An  advance  up  to $2,000,000 may be made from the debt service
    53  account to the general and administrative account  of  the  42nd  street
    54  development  project,  incorporated, provided, however, that before such
    55  advance is made the New York state urban development  corporation  shall
    56  enter  into  an  agreement with the director of the budget providing for
        S. 6610--C                         109                        A. 9710--D
 
     1  repayment of such advance. Subject to the approval of  the  director  of
     2  the  budget,  and  notification  of  the chairs of the assembly ways and

     3  means and the senate finance committees in  both  paper  and  electronic
     4  format,  the  corporation is hereby authorized to expend revenues of the
     5  project for services and expenses of the corporation. The  total  amount
     6  expended  by the 42nd street development project, incorporated shall not
     7  exceed $2,000,000 and any unexpended project revenues shall be  used  to
     8  reduce  the  total advance provided to the project from the debt service
     9  account.
    10    (vii) Interchange from  the  debt  service  account  to  the  mortgage
    11  servicing  fee  account  of  the  mortgage loan enforcement and adminis-
    12  tration corporation shall comply with the provisions  specified  herein,
    13  except  that  up  to  $2,838,000  shall  be transferred to such mortgage
    14  servicing fee account during the fiscal year commencing  April  1,  2010
    15  and  such  amount  shall  not  be repaid. Prior to the allocation of any

    16  moneys from the debt service account  to  the  42nd  street  development
    17  project,  incorporated,  and  the mortgage loan enforcement and adminis-
    18  tration corporation for the fiscal year commencing April 1,  2010,  each
    19  corporation  shall  submit for approval to the director of the budget, a
    20  comprehensive financial plan for each corporation for such fiscal  year,
    21  in such detail as the director of the budget shall require in both paper
    22  and  electronic  format.  The  financial  plan shall be submitted to the
    23  budget director on or before May 15, 2010. A report for  each  plan  and
    24  any plan update, if necessary, shall be submitted to the director of the
    25  budget  on or before August 15, 2010, November 15, 2010 and February 15,
    26  2011. Each such report shall provide the actual revenue and expenditures
    27  for the preceding quarters ending June 30, 2010, September 30, 2010  and

    28  December  31,  2010,  in such detail as the director of the budget shall
    29  require. Further, any plan update shall  revise,  where  necessary,  the
    30  revenue  and  expenditure plan for each corporation for the remainder of
    31  the fiscal year beginning April 1, 2010.  No  transfer  to  the  general
    32  administrative  account  of  the  corporation  shall  occur prior to the
    33  approval of the  financial  plan  and  unless  in  compliance  with  the
    34  approved financial plan.
    35    The  director of the budget shall file copies of such financial plans,
    36  quarterly reports and any plan updates with the department of audit  and
    37  control and the senate finance committee and the assembly ways and means
    38  committee  in  both paper and electronic format. Interchange made to the
    39  debt service account shall not be repaid if such  payment  would  reduce

    40  any  debt  service or debt service reserve requirements below any amount
    41  required pursuant to a covenant, contract or other agreements  with  the
    42  bondholders  and noteholders. No payments or deposits shall be made from
    43  any debt service reserve fund established pursuant to the provisions  of
    44  section  20  of  the New York state urban development corporation act to
    45  any account of the corporation other than the debt service account;  and
    46  such payment or deposit shall only occur if deemed necessary to meet the
    47  payments specified in the debt service account described herein.
    48    Provided  further,  (a) that such investment shall be made pursuant to
    49  the provisions of subdivision 22 of section 5  of  the  New  York  state
    50  urban  development  corporation  act;  (b) that such investment shall be
    51  made in a fashion which shall enable the corporation to timely meet  its

    52  obligations; (c) that such investment shall be specified in each account
    53  in  respect to the amount contributed, and that upon termination of such
    54  investment each account shall be reimbursed. Such account and subaccount
    55  shall be included in  detailed  quarterly  reports  of  the  corporation
    56  commencing  with the quarterly report for the period immediately preced-
        S. 6610--C                         110                        A. 9710--D
 
     1  ing April 1, 2010 which set forth  the  status  of  all  such  accounts,
     2  including for each account and subaccount the amount in such accounts at
     3  the  beginning  of such quarter (from and including the entire period of
     4  the  first  day  of  the  operative calendar year), the payments of such
     5  accounts, the payments  from  such  accounts  and  the  amount  in  such

     6  accounts at the close of such quarter (to and including the entire peri-
     7  od  of the last day of the operative calendar year). Such detailed quar-
     8  terly report shall be prepared and submitted within 30 days of the close
     9  of each fiscal quarter of the corporation to the director of the budget,
    10  and the chair of the senate finance  committee  and  the  chair  of  the
    11  assembly  ways  and means committee in both paper and electronic format.
    12  Such accounts and subaccounts shall be detailed in the annual report  of
    13  the corporation.
    14    No  disbursements or payments shall be made from the economic develop-
    15  ment income account or the interest income account except upon a request
    16  for the transfer of such funds to the director of the budget  who  shall
    17  file  such request and approval thereof with the department of audit and
    18  control and copies thereof with the senate  finance  committee  and  the

    19  assembly  ways  and means committee in both paper and electronic format,
    20  except that such prior approval shall not  be  required  in  respect  to
    21  repayments  to the state. Any amounts in any debt service reserve funds,
    22  any inconsistent provisions of law notwithstanding, established  by  the
    23  corporation  pursuant  to  the  provisions of section 20 of the New York
    24  state urban development corporation act,  which  would  not  reduce  the
    25  amount  of  such  fund  or  funds to less than (1) the maximum amount of
    26  principal and interest maturing and becoming due  in  2010  or  (2)  any
    27  amount required pursuant to a covenant, contract or other agreement with
    28  bondholders  and  noteholders  shall  be  paid by the corporation to the
    29  state comptroller for deposit to the credit of the general fund  of  the
    30  state  on  or  before March 1, 2011.   In the event that the corporation

    31  shall fail to make such payment, the comptroller shall withhold from any
    32  appropriations otherwise available to the corporation, the amount suffi-
    33  cient to pay to the general fund the amounts required to be paid by  the
    34  corporation  pursuant to the foregoing provisions. The state comptroller
    35  shall create accounts for each item of appropriation.
    36    § 3. This act shall take effect immediately and  shall  be  deemed  to
    37  have  been  in  full  force  and  effect on and after April 1, 2010; and
    38  provided further that sections one and two of this act shall expire  and
    39  be deemed repealed March 31, 2011.
 
    40                                   PART VV
 
    41    Section  1.  The  state finance law is amended by adding a new section
    42  97-jjjj to read as follows:
    43    § 97-jjjj. Education assessment account.   1. There is  hereby  estab-

    44  lished in the joint custody of the state comptroller and the commission-
    45  er  of  taxation  and  finance  an  account of the miscellaneous special
    46  revenue fund to be known as the "education assessment account".
    47    2. Notwithstanding any other law, rule or regulation to the  contrary,
    48  the  state  comptroller is hereby authorized and directed to receive for
    49  deposit to the credit of the education assessment account  all  revenues
    50  received  pursuant  to  an appropriation for such account, including but
    51  not limited to funds transferred from another account.
    52    3. Moneys of this account, following appropriation by the legislature,
    53  shall be available to the state education department  for  services  and

    54  expenses  relating  to  state  assessments  of  elementary and secondary
        S. 6610--C                         111                        A. 9710--D
 
     1  school students, including but not limited  to  the  state  high  school
     2  equivalency  diploma  examination.  Moneys of this account shall only be
     3  available for expenditure pursuant to approval of an expenditure plan by
     4  the director of the budget.
     5    § 2. This act shall take effect immediately.
 
     6                                   PART WW
 
     7    Section  1. Paragraph 34 of subdivision (b) of section 1101 of the tax
     8  law, as added by section 1 of part U-1 of chapter  57  of  the  laws  of
     9  2009, is amended to read as follows:
    10    (34)  Transportation service. The service of transporting, carrying or

    11  conveying a person or persons by livery service;  whether  to  a  single
    12  destination  or  to  multiple destinations; and whether the compensation
    13  paid by or on behalf of the passenger is based on  mileage,  trip,  time
    14  consumed  or  any  other  basis.  A service that begins and ends in this
    15  state is deemed intra-state even if it passes outside this state  during
    16  a  portion of the trip. However, transportation service does not include
    17  transportation of persons in connection  with  funerals.  Transportation
    18  service  includes  transporting,  carrying, or conveying property of the
    19  person being transported, whether owned  by  or  in  the  care  of  such
    20  person.  In  addition to what is included in the definition of "receipt"
    21  in paragraph three of this subdivision, receipts from the sale of trans-
    22  portation  service  subject  to  tax  include  any  handling,  carrying,

    23  baggage,  booking service, administrative, mark-up, additional, or other
    24  charge, of any nature,  made  in  conjunction  with  the  transportation
    25  service.  Livery  service means service provided by limousine, black car
    26  or other motor vehicle, with a  driver,  but  excluding  (i)  a  taxicab
    27  [and],  (ii)  a bus, and (iii), in a city of one million or more in this
    28  state, an affiliated livery vehicle, and excluding any scheduled  public
    29  service.  Limousine  means  a  vehicle  with a seating capacity of up to
    30  fourteen persons, excluding the driver. Black car means a for-hire vehi-
    31  cle dispatched from a central facility.    "Affiliated  livery  vehicle"
    32  means  a  for-hire  motor  vehicle  with a seating capacity of up to six

    33  persons, including the driver, other than a black car or  luxury  limou-
    34  sine,  that is authorized and licensed by the taxi and limousine commis-
    35  sion of a city of one million or more to be dispatched by a base station
    36  located in such a city and regulated by such taxi and limousine  commis-
    37  sion; and the charges for service provided by an affiliated livery vehi-
    38  cle  are on the basis of flat rate, time, mileage, or zones and not on a
    39  garage to garage basis.
    40    § 2. Section 1213 of the tax law, as amended by section 5 of part  U-1
    41  of chapter 57 of the laws of 2009, is amended to read as follows:
    42    §  1213. Deliveries outside the jurisdiction where sale is made. Where
    43  a sale of tangible personal  property  or  services,  including  prepaid

    44  telephone  calling  services, but not including other services described
    45  in subdivision (b) of section  eleven  hundred  five  of  this  chapter,
    46  including  an  agreement therefor, is made in any city, county or school
    47  district, but the property sold, the property upon  which  the  services
    48  were  performed or prepaid telephone calling or other service is or will
    49  be delivered to the purchaser elsewhere, such sale shall not be  subject
    50  to  tax  by  such  city, county or school district. However, if delivery
    51  occurs or will occur in a city, county or school district imposing a tax
    52  on the sale or use of such property, prepaid telephone calling or  other
    53  services, the vendor shall be required to collect from the purchaser, as
    54  provided  in  section  twelve  hundred  fifty-four  of this article, the

        S. 6610--C                         112                        A. 9710--D
 
     1  aggregate sales or compensating use taxes imposed by the city,  if  any,
     2  county  and  school district in which delivery occurs or will occur, for
     3  distribution by the commissioner to such taxing jurisdiction  or  juris-
     4  dictions.  For  the purposes of this section delivery shall be deemed to
     5  include transfer of possession to the purchaser and the receiving of the
     6  property or of the service, including prepaid telephone calling service,
     7  by the purchaser. Notwithstanding the foregoing, where a  transportation
     8  service  described in paragraph ten of subdivision (c) of section eleven
     9  hundred five of this chapter begins in  one  jurisdiction  but  ends  in
    10  another  jurisdiction, any tax imposed [by] pursuant to the authority of

    11  this article shall be due the jurisdiction or  jurisdictions  where  the
    12  service commenced.
    13    §  3.  This  act  shall take effect immediately and shall be deemed to
    14  have been in full force and effect on and after June 1, 2009, and  shall
    15  apply  in accordance with applicable transitional provisions in sections
    16  1106 and 1217 of the tax law.
 
    17                                   PART XX
 
    18    Section 1.  Section 71 of the correction law is amended  by  adding  a
    19  new subdivision 8 to read as follows:
    20    8. (a) In each year in which the federal decennial census is taken but
    21  in  which  the  United  States bureau of the census does not implement a
    22  policy of reporting incarcerated persons at each such person's  residen-
    23  tial  address  prior  to  incarceration,  the department of correctional

    24  services shall by July first of that same year deliver to  the  legisla-
    25  tive  task force on demographic research and reapportionment the follow-
    26  ing information for each incarcerated person subject to the jurisdiction
    27  of the department and located in this state on the date  for  which  the
    28  decennial census reports population:
    29    (i) A unique identifier, not including the name, for each such person;
    30    (ii)  The  street  address  of the correctional facility in which such
    31  person was incarcerated at the time of such report;
    32    (iii) The residential address of such person  prior  to  incarceration
    33  (if any); and
    34    (iv) Any additional information as the task force may specify pursuant
    35  to law.

    36    (b)  The  department  shall provide the information specified in para-
    37  graph (a) of this subdivision in such form as the legislative task force
    38  on demographic research and reapportionment shall specify.
    39    § 2. Section 83-m of the legislative law is amended by  adding  a  new
    40  subdivision 13 to read as follows:
    41    13.  (a) The task force shall specify the form in which the department
    42  of correctional services shall provide such information required  to  be
    43  reported  to  the  task  force  pursuant to subdivision eight of section
    44  seventy-one of the correction law.
    45    (b) Upon receipt of such  information  for  each  incarcerated  person
    46  subject  to the jurisdiction of the department of correctional services,

    47  the task force shall determine the census  block  corresponding  to  the
    48  street address of each such person's residential address prior to incar-
    49  ceration  (if  any),  and  the  census block corresponding to the street
    50  address of the correctional facility  in  which  such  person  was  held
    51  subject  to  the jurisdiction of such department. Until such time as the
    52  United States bureau of the census shall implement a policy of reporting
    53  each such incarcerated person at such person's residential address prior
    54  to incarceration, the task force shall use such data to develop a  data-
        S. 6610--C                         113                        A. 9710--D
 
     1  base  in  which all incarcerated persons shall be, where possible, allo-

     2  cated  for  redistricting  purposes,  such  that  each  geographic  unit
     3  reflects   incarcerated  populations  at  their  respective  residential
     4  addresses  prior  to  incarceration rather than at the addresses of such
     5  correctional facilities.  For all incarcerated persons whose residential
     6  address prior to incarceration was outside of the state, or for whom the
     7  task force cannot identify their prior residential address, and for  all
     8  persons  confined  in a federal correctional facility on census day, the
     9  task force shall consider those persons  to  have  been  counted  at  an
    10  address  unknown  and  persons  at  such  unknown  address  shall not be
    11  included in such data set created pursuant to this paragraph.  The  task

    12  force  shall  develop  and maintain such amended population data set and
    13  shall make such amended data set  available  to  local  governments,  as
    14  defined  in  subdivision eight of section two of the municipal home rule
    15  law, and for the drawing of assembly and senate districts.  The assembly
    16  and senate districts shall be drawn using such amended  population  data
    17  set.
    18    (c)  Notwithstanding  any  other  provision  of  law,  the information
    19  required to be provided pursuant to subdivision eight of section  seven-
    20  ty-one  of the correction law shall be treated as confidential and shall
    21  not be disclosed by the task force except as aggregated by census  block
    22  for purpose specified in this subdivision.

    23    §  3.  The opening paragraph, subclause (i.) of clause (a.) and clause
    24  (c.) of subparagraph 13 of paragraph a of subdivision 1 of section 10 of
    25  the municipal home rule law, as added by chapter  834  of  the  laws  of
    26  1969, are amended to read as follows:
    27    The apportionment of its legislative body and, only in connection with
    28  such  action  taken  pursuant  to this subparagraph, the composition and
    29  membership of such body, the terms of office  of  members  thereof,  the
    30  units  of local government or other areas from which representatives are
    31  to be chosen and the voting powers of individual members of such  legis-
    32  lative  body.  [The]  Except for the equal apportionment requirements in
    33  subclause (i.) of clause (a.) and  clause  (c.)  of  this  subparagraph,
    34  which  shall  apply generally to any local government, the power granted

    35  by this subparagraph shall be in addition to and not in substitution for
    36  any other power and the provisions of this subparagraph shall apply only
    37  to local governments which adopt a plan of apportionment thereunder.
    38    (i.) The plan shall provide substantially equal weight for  [all]  the
    39  [voters] population of that local government in the allocation of repre-
    40  sentation in the local legislative body.
    41    (c.)  As  used  in  this subparagraph the term "population" shall mean
    42  residents, citizens, or registered voters. For such purposes, no  person
    43  shall  be deemed to have gained or lost a residence, or to have become a
    44  resident of a local government,  as  defined  in  subdivision  eight  of
    45  section two of this chapter, by reason of being subject to the jurisdic-

    46  tion  of  the department of correctional services and present in a state
    47  correctional facility pursuant to such jurisdiction. A  population  base
    48  for  such  a  plan of apportionment shall utilize the latest statistical
    49  information obtainable from an official enumeration  done  at  the  same
    50  time  for all the residents, citizens, or registered voters of the local
    51  government.  Such a plan may allocate, by  extrapolation  or  any  other
    52  rational  method,  such latest statistical information to representation
    53  areas or units of local government, provided that  any  plan  containing
    54  such an allocation shall have annexed thereto as an appendix, a detailed
    55  explanation of the allocation.
        S. 6610--C                         114                        A. 9710--D
 

     1    §  4.  Severability.  If any section, subdivision, paragraph, subpara-
     2  graph, clause or other part of this act or its application is held to be
     3  invalid by final judgment of a court  of  competent  jurisdiction,  such
     4  invalidity shall not be deemed to impair or otherwise affect the validi-
     5  ty  of  the remaining provisions or applications of this act that can be
     6  given effect without such invalid provision  or  application,  but  such
     7  invalidity  shall  be  confined  to the section, subdivision, paragraph,
     8  subparagraph, clause or other  part  of  this  act  or  its  application
     9  directly  held  invalid thereby, which are declared to be severable from
    10  the remainder of this act. It is declared to be the intent of the legis-
    11  lature that this act would have been enacted but for  any  such  invalid
    12  provision or application thereof.

    13    §  5.  This act shall take effect immediately; provided, however, that
    14  the amendments to section 83-m of the legislative law  made  by  section
    15  two of this act shall not affect the repeal of such section and shall be
    16  deemed repealed therewith.
 
    17                                   PART YY
 
    18    Section  1. Subdivision 2-b of section 470 of the tax law, as added by
    19  section 16 of part D of chapter 134 of the laws of 2010, is  amended  to
    20  read as follows:
    21    2-b.  "Little  cigar."  Any roll for smoking made wholly or in part of
    22  tobacco if such product is wrapped in any substance containing  tobacco,
    23  other than natural leaf tobacco wrapper, and weighing not more than four
    24  pounds  per  thousand  or  with  a cellulose acetate or other integrated
    25  filter.
    26    § 2. This act shall take effect on the same date and  same  manner  as

    27  section 16 of part D of chapter 134 of the laws of 2010, takes effect.
    28    § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
    29  sion,  section  or  part  of  this act shall be adjudged by any court of
    30  competent jurisdiction to be invalid, such judgment  shall  not  affect,
    31  impair,  or  invalidate  the remainder thereof, but shall be confined in
    32  its operation to the clause, sentence, paragraph,  subdivision,  section
    33  or part thereof directly involved in the controversy in which such judg-
    34  ment shall have been rendered. It is hereby declared to be the intent of
    35  the  legislature  that  this  act  would  have been enacted even if such
    36  invalid provisions had not been included herein.
    37    § 3. This act shall take effect immediately  provided,  however,  that
    38  the applicable effective date of Parts A through YY of this act shall be

    39  as specifically set forth in the last section of such Parts.