Add §1501-d, Ed L; amd §§1306 & 202, add §1307, RPT L; amd Tax L, generally
 
Enacts "the school district property tax relief act"; relates to adopting a school income tax surcharge (Part A); provides for the restriction of the school district real property tax on residential property; authorizes the imposition by school districts of a surcharge on the state income tax of district residents to finance public education (Part B).
STATE OF NEW YORK
________________________________________________________________________
10136
IN ASSEMBLY
March 16, 2018
___________
Introduced by M. of A. GALEF, GOTTFRIED, GUNTHER, ABINANTI -- read once
and referred to the Committee on Education
AN ACT in relation to enacting the school district property tax relief
act; to amend the education law, in relation to adopting a school
income tax surcharge (Part A); and to amend the real property tax law
and the tax law, in relation to providing for the restriction of the
school district real property tax on residential property and to
authorize the imposition by school districts of a surcharge on the
state income tax of district residents to finance public education
(Part B)
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. This act shall be known and may be cited as "the school
2 district property tax relief act".
3 § 2. This act enacts into law major components of legislation which
4 are necessary to implement the school district property tax relief act.
5 Each component is wholly contained within a Part identified as Parts A
6 and B. The effective date for each particular provision contained with-
7 in such Part is set forth in the last section of such Part. Any
8 provision in any section contained within a Part, including the effec-
9 tive date of the Part, which makes reference to a section "of this act",
10 when used in connection with that particular component, shall be deemed
11 to mean and refer to the corresponding section of the Part in which it
12 is found. Section four of this act sets forth the general effective
13 date of this act.
14 PART A
15 Section 1. Legislative findings and declarations. The legislature
16 finds that the property tax has long been relied upon by school
17 districts as a principal method to finance public education. The proper-
18 ty tax, however, is regressive and fails to account for a taxpayer's
19 ability to pay, and falls hardest on those with reduced or fixed
20 incomes. Therefore, to relieve the mounting burden on residential prop-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD13991-01-7
A. 10136 2
1 erty taxpayers and to provide local school districts with greater flexi-
2 bility to finance public education, while assuring the continued deliv-
3 ery of quality educational services, the legislature finds that school
4 districts shall be authorized, at local option, to impose a school
5 district income tax surcharge on the state personal income tax of
6 district residents to replace a portion of the school district property
7 tax.
8 § 2. The education law is amended by adding a new section 1501-d to
9 read as follows:
10 § 1501-d. Adoption of school district income tax surcharge. 1. The
11 board of trustees or board of education of any school district other
12 than a school district of a city subject to the provisions of article
13 fifty-two of this chapter may adopt, by resolution, a school district
14 income tax surcharge imposed pursuant to the authority of article thir-
15 ty-C of the tax law, to finance public education, in accordance with a
16 proposition submitted to and approved by electors of the school district
17 as authorized pursuant to this section.
18 2. Upon a majority vote of the board of trustees or board of education
19 of a school district or upon the filing of a petition with the chief
20 executive officer of the school district, a study commission shall be
21 created. A petition to create a study commission within a school
22 district shall be sufficient if it is signed and acknowledged by quali-
23 fied electors of the school district, in number equal to five per centum
24 of the total number of electors within the school district qualified to
25 vote in the general election immediately preceding filing of the peti-
26 tion.
27 3. (a) The study commission formed pursuant to this section shall
28 present a written report to the board of trustees or the board of educa-
29 tion setting forth either a school district income tax surcharge plan or
30 a written recommendation that no plan be adopted. Such recommendation
31 shall include the reasons for rejecting a surcharge plan. The study
32 commission shall file the report with the board of trustees or the board
33 of education on or before one year from the date of presentation of the
34 petition to the chief executive officer of the school district or vote
35 of the board of trustees or the board of education directing the forma-
36 tion of the study commission. If the commission fails to make a recom-
37 mendation within the allotted time, the board shall extend the commis-
38 sion or assume its responsibilities.
39 (b) The commission shall be composed of at least nine members
40 appointed by the board of trustees or the board of education. Member-
41 ship shall be comprised of representatives of property owners residing
42 in the school district, commercial property owners whose principal place
43 of business is located within the school district, and the board of
44 trustees or board of education, but shall not include more than one
45 trustee of a board of education or member of a board of education.
46 (c) Members of a study commission established pursuant to this section
47 shall file oaths of office with the appointing authority. Their terms
48 shall extend to and expire upon submission of the report to the board of
49 trustees or the board of education as provided in this section. Members
50 shall receive no compensation for membership on the study commission.
51 Costs and expenses of the study commission if approved by the board
52 shall be paid by the school district. Such commission shall organize and
53 form such subcommittees, may establish meetings and hold informational
54 hearings as it deems desirable and shall consult with the designees of
55 the director of the office of real property tax services and the commis-
56 sioner of taxation and finance.
A. 10136 3
1 (d) A study commission shall hold at least one public hearing in the
2 school district at least sixty days prior to submission of its report to
3 the board of trustees or the board of education, at which the public
4 shall have an opportunity to be heard. The study commission shall
5 publish notice of the public hearing on any official website and in at
6 least one newspaper of general circulation within the school district at
7 least seven and no greater than ten days prior to the date of such
8 public hearing. Such notice shall specify the day, hour and place such
9 hearing shall be held.
10 4. A study commission recommending a school district income tax
11 surcharge shall adopt a plan which describes the rate of the surcharge
12 to be imposed, the manner in which real property taxes for school
13 district purposes will be restricted in accordance with section thirteen
14 hundred seven of the real property tax law, and any such other matters
15 as may be desirable or necessary to describe the income tax surcharge to
16 be imposed or its administration. Such commission plan shall describe
17 restrictions, if any, upon the authority of a school district, acting
18 through its board of trustees or board of education, to modify the first
19 year rate of the income tax surcharge in subsequent years. The
20 restrictions may include, but are not limited to, the following:
21 (a) requiring voter approval for any change in the surcharge rate;
22 (b) limiting the amount of a rate change in one year or over a number
23 of years;
24 (c) requiring the commission to be reconvened to study and adopt a
25 rate change;
26 (d) requiring a supermajority of the board of trustees or the board of
27 education to approve a rate change; or
28 (e) some combination of the above.
29 5. (a) Upon the study commission's presentation of a plan, or recom-
30 mendation not to adopt a plan, the board of trustees or the board of
31 education shall decide whether to accept or reject the plan or recommen-
32 dation of the study commission. The board of trustees or the board of
33 education shall take such action on the study commission's recommenda-
34 tion within one hundred twenty days of its presentment to the board of
35 trustees or the board of education. The board of trustees or the board
36 of education shall hold at least one public hearing in the school
37 district at least thirty days prior to taking action on the study
38 commission's recommendation, at which the public shall have an opportu-
39 nity to be heard. The board of trustees or the board of education shall
40 publish notice of the public hearing in at least one newspaper of gener-
41 al circulation within the school district, at least seven and no greater
42 than ten days, prior to the date of such public hearing. Such notice
43 shall specify the day, hour and place such hearing shall be held. If the
44 plan is accepted by a majority of the board of trustees or the board of
45 education, a proposition shall be prepared by the board of trustees or
46 the board of education and submitted to the voters at the next regular
47 school election.
48 (b) Upon acceptance of the plan and formulation of the proposition the
49 board of trustees or the board of education shall publish the full text
50 of the proposition and the school district tax surcharge plan in at
51 least one newspaper of general circulation within the school district at
52 least thirty days prior to the date of election at which the school
53 district voters shall vote on the plan and proposition. Copies of the
54 plan and proposition shall be made available to the public at the
55 offices of the school district at any time during regular business hours
56 and on any official website maintained by the school district.
A. 10136 4
1 6. (a) A proposition for the imposition of a school district income
2 tax surcharge shall state "Shall the (name of school district) be
3 empowered to adopt a school district income tax surcharge pursuant to
4 the school district income tax surcharge plan?" The proposition shall
5 also contain an abstract of such plan which shall (i) identify in full
6 the option restricting the school district levy of real property tax
7 chosen pursuant to section thirteen hundred seven of the real property
8 tax law, and (ii) concisely state in plain language the purpose and
9 effect of adopting such plan including the general effect on residential
10 real property taxpayers, the income tax surcharge rate expected to be
11 imposed, and restrictions, if any, applicable to changes in such rate.
12 (b) Upon approval of a majority of the qualified electors within a
13 school district, the proposition shall be approved. Upon such approval a
14 certificate of such election shall be filed with the clerk of the school
15 district named in the proposition, the commissioner and the commissioner
16 of taxation and finance.
17 7. The levy of real property taxes by any school district to finance
18 education which adopts a school district income tax surcharge shall be
19 subject to the provisions of section thirteen hundred seven of the real
20 property tax law.
21 8. If adopted by the board of trustees or the board of education on or
22 before March thirty-first in any year, with notice to the commissioner
23 of taxation and finance, as provided in section thirteen hundred sixty-
24 one of the tax law on or before such date, such school district income
25 tax surcharge plan shall become effective from and after the first day
26 of January next succeeding its adoption. If adopted after March thirty-
27 first in any year, or with notice after such date, such local income tax
28 surcharge plan shall become effective from and after one year from the
29 first day of January next succeeding its adoption.
30 § 3. This act shall take effect immediately.
31 PART B
32 Section 1. Section 1306 of the real property tax law is amended by
33 adding a new subdivision 6 to read as follows:
34 6. The levy of taxes by any school district which imposes a personal
35 income tax pursuant to article thirty-C of the tax law shall be subject
36 to the restrictions of section thirteen hundred seven of this article.
37 § 2. The real property tax law is amended by adding a new section 1307
38 to read as follows:
39 § 1307. Reduction in the levy of real property taxes. 1. Where a
40 school district elects to impose a school district income tax surcharge
41 in accordance with article thirty-C of the tax law, the amount to be
42 raised by levy against residential real property in the school district
43 shall be reduced by the dollar amount raised pursuant to such surcharge
44 for the calendar year immediately preceding the year of commencement of
45 the school fiscal year. For the purposes of this section the term "resi-
46 dential real property" shall be limited to primary residences as defined
47 in subdivision three of section four hundred twenty-five of this chap-
48 ter.
49 2. The amount of reduction for each parcel of residential real proper-
50 ty shall be stated on the school tax bill. The school tax bill also
51 shall show the amount of the total levy, the amount to be raised by the
52 residential property in the school district, the amount of surcharge
53 raised reducing such portion of the levy and the amount to be raised by
54 the non-residential property in the district. Comparison to the preced-
A. 10136 5
1 ing year shall also be shown in addition to such other information as
2 the commissioner of education shall specify. Property owners not
3 subject to the income tax surcharge imposed by article thirty-C of the
4 tax law shall not receive a reduction in the real property taxes pursu-
5 ant to this section.
6 § 3. Subdivision 1 of section 202 of the real property tax law is
7 amended by adding a new paragraph (q) to read as follows:
8 (q) Direct the executive director of the office of real property
9 services to develop guidelines and provide technical assistance to a
10 study commission of a school district formed pursuant to section fifteen
11 hundred one-d of the education law in order to implement the provisions
12 of article thirty-C of the tax law and section thirteen hundred seven of
13 this chapter.
14 § 4. Paragraph 1 of subdivision (b) of section 9 of the tax law, as
15 amended by chapter 166 of the laws of 1991, is amended to read as
16 follows:
17 (1) Subject to the requirements contained in subdivisions (c) and (d)
18 of this section, the commissioner shall require by regulation that any
19 payment of tax made by a taxpayer who is required, for either of the
20 semi-annual periods ending June thirtieth or December thirty-first, to
21 deduct and withhold an aggregate of thirty-five thousand dollars or more
22 of withholding taxes pursuant to part V of article twenty-two of this
23 chapter, or pursuant to an equivalent provision enacted under the
24 authority of article thirty, thirty-A [or], thirty-B or thirty-C of this
25 chapter[, or article two-E of the general city law,] shall be made, on
26 or before the date prescribed by law, by electronic funds transfer to a
27 bank, banking house or trust company designated by the commissioner. The
28 commissioner shall designate only such banks, banking houses or trust
29 companies as are or shall be designated by the comptroller as deposito-
30 ries pursuant to section one hundred seventy-one-a of this chapter, as
31 added by chapter sixty-nine of the laws of nineteen hundred seventy-
32 eight. Notwithstanding any provision of law to the contrary, any such
33 payment shall be deemed to be made on the date the payment is received
34 by the designated depository of the department; provided, however, that
35 at the election of a taxpayer subject to the provisions of this subdivi-
36 sion, mailing by the taxpayer of the applicable withholding tax return
37 and a certified check for the amount of the tax liability on or before
38 the second business day prior to the applicable due date otherwise
39 prescribed by law shall fulfill the requirements of this section and
40 shall be deemed to be timely payment of such tax liability and timely
41 filing of such return.
42 § 5. Subdivisions eighteenth-b and eighteenth-c of section 171 of the
43 tax law, as added by chapter 770 of the laws of 1992, are amended to
44 read as follows:
45 Eighteenth-b. Where the filing requirement arises under article twen-
46 ty-two of this chapter or under a law enacted pursuant to the authority
47 of article thirty [or], thirty-A or thirty-C of this chapter, have
48 authority to require a husband and wife whose federal income tax liabil-
49 ities are determined on a joint federal return and who have not filed a
50 joint New York income tax return to file separate income tax returns, in
51 which case their income tax liabilities shall be separate. Such authori-
52 ty shall be exercised only where one of such persons demonstrates, to
53 the satisfaction of the commissioner, that (a) the address or where-
54 abouts of his or her spouse is unknown to him or her, (b) reasonable
55 efforts have been made by him or her to locate such spouse, and (c) good
A. 10136 6
1 cause existed for the failure to file a joint New York income tax
2 return.
3 Eighteenth-c. Where the filing requirement arises under article twen-
4 ty-two of this chapter or under a law enacted pursuant to the authority
5 of article thirty [or], thirty-A or thirty-C of this chapter, have
6 authority to require a husband and wife whose federal income tax liabil-
7 ities are determined on a joint federal return and who have not filed a
8 joint New York income tax return to file separate income tax returns, in
9 which case their income tax liabilities shall be separate. Such authori-
10 ty shall be exercised only where one of such persons demonstrates, to
11 the satisfaction of the commissioner, that (a) his or her spouse has
12 refused to sign a joint New York income tax return, (b) reasonable
13 efforts have been made by him or her to have such spouse sign a joint
14 New York income tax return, (c) there exists objective evidence of
15 alienation of such person from his or her spouse such as a judicial
16 order of protection, legal separation under a decree of divorce or sepa-
17 rate maintenance, separation under a written separation agreement or
18 judicial decree of separation, living apart at all times during the
19 twelve months immediately preceding the application for exercise of
20 authority under this provision, the commencement of an action for
21 divorce, or the commencement of proceedings in family court which
22 evidence such alienation, and (d) good cause existed for the failure to
23 file a joint New York income tax return.
24 § 6. Subdivision 1 of section 171-a of the tax law, as amended by
25 section 15 of part AAA of chapter 59 of the laws of 2017, is amended to
26 read as follows:
27 1. All taxes, interest, penalties and fees collected or received by
28 the commissioner or the commissioner's duly authorized agent under arti-
29 cles nine (except section one hundred eighty-two-a thereof and except as
30 otherwise provided in section two hundred five thereof), nine-A,
31 twelve-A (except as otherwise provided in section two hundred eighty-
32 four-d thereof), thirteen, thirteen-A (except as otherwise provided in
33 section three hundred twelve thereof), eighteen, nineteen, twenty
34 (except as otherwise provided in section four hundred eighty-two there-
35 of), twenty-B, twenty-one, twenty-two, twenty-six, twenty-eight (except
36 as otherwise provided in section eleven hundred two or eleven hundred
37 three thereof), twenty-eight-A, twenty-nine-B, thirty-one (except as
38 otherwise provided in section fourteen hundred twenty-one thereof),
39 thirty-three and thirty-three-A of this chapter shall be deposited daily
40 in one account with such responsible banks, banking houses or trust
41 companies as may be designated by the comptroller, to the credit of the
42 comptroller. Such an account may be established in one or more of such
43 depositories. Such deposits shall be kept separate and apart from all
44 other money in the possession of the comptroller. The comptroller shall
45 require adequate security from all such depositories. Of the total
46 revenue collected or received under such articles of this chapter, the
47 comptroller shall retain in the comptroller's hands such amount as the
48 commissioner may determine to be necessary for refunds or reimbursements
49 under such articles of this chapter out of which amount the comptroller
50 shall pay any refunds or reimbursements to which taxpayers shall be
51 entitled under the provisions of such articles of this chapter. The
52 commissioner and the comptroller shall maintain a system of accounts
53 showing the amount of revenue collected or received from each of the
54 taxes imposed by such articles. The comptroller, after reserving the
55 amount to pay such refunds or reimbursements, shall, on or before the
56 tenth day of each month, pay into the state treasury to the credit of
A. 10136 7
1 the general fund all revenue deposited under this section during the
2 preceding calendar month and remaining to the comptroller's credit on
3 the last day of such preceding month, (i) except that the comptroller
4 shall pay to the state department of [social services] family assistance
5 that amount of overpayments of tax imposed by article twenty-two of this
6 chapter and the interest on such amount which is certified to the comp-
7 troller by the commissioner as the amount to be credited against past-
8 due support pursuant to subdivision six of section one hundred seventy-
9 one-c of this article, (ii) and except that the comptroller shall pay to
10 the New York state higher education services corporation and the state
11 university of New York or the city university of New York respectively
12 that amount of overpayments of tax imposed by article twenty-two of this
13 chapter and the interest on such amount which is certified to the comp-
14 troller by the commissioner as the amount to be credited against the
15 amount of defaults in repayment of guaranteed student loans and state
16 university loans or city university loans pursuant to subdivision five
17 of section one hundred seventy-one-d and subdivision six of section one
18 hundred seventy-one-e of this article, (iii) and except further that,
19 notwithstanding any law, the comptroller shall credit to the revenue
20 arrearage account, pursuant to section ninety-one-a of the state finance
21 law, that amount of overpayment of tax imposed by article nine, nine-A,
22 twenty-two, thirty, thirty-A, thirty-B, thirty-C or thirty-three of this
23 chapter, and any interest thereon, which is certified to the comptroller
24 by the commissioner as the amount to be credited against a past-due
25 legally enforceable debt owed to a state agency pursuant to paragraph
26 (a) of subdivision six of section one hundred seventy-one-f of this
27 article, provided, however, [he] the commissioner shall credit to the
28 special offset fiduciary account, pursuant to section ninety-one-c of
29 the state finance law, any such amount creditable as a liability as set
30 forth in paragraph (b) of subdivision six of section one hundred seven-
31 ty-one-f of this article, (iv) and except further that the comptroller
32 shall pay to the city of New York that amount of overpayment of tax
33 imposed by article nine, nine-A, twenty-two, thirty, thirty-A, thirty-B,
34 thirty-C or thirty-three of this chapter and any interest thereon that
35 is certified to the comptroller by the commissioner as the amount to be
36 credited against city of New York tax warrant judgment debt pursuant to
37 section one hundred seventy-one-l of this article, (v) and except
38 further that the comptroller shall pay to a non-obligated spouse that
39 amount of overpayment of tax imposed by article twenty-two of this chap-
40 ter and the interest on such amount which has been credited pursuant to
41 section one hundred seventy-one-c, one hundred seventy-one-d, one
42 hundred seventy-one-e, one hundred seventy-one-f or one hundred seven-
43 ty-one-l of this article and which is certified to the comptroller by
44 the commissioner as the amount due such non-obligated spouse pursuant to
45 paragraph six of subsection (b) of section six hundred fifty-one of this
46 chapter; and (vi) the comptroller shall deduct a like amount which the
47 comptroller shall pay into the treasury to the credit of the general
48 fund from amounts subsequently payable to the department of social
49 services, the state university of New York, the city university of New
50 York, or the higher education services corporation, or the revenue
51 arrearage account or special offset fiduciary account pursuant to
52 section ninety-one-a or ninety-one-c of the state finance law, as the
53 case may be, whichever had been credited the amount originally withheld
54 from such overpayment, and (vii) with respect to amounts originally
55 withheld from such overpayment pursuant to section one hundred seventy-
A. 10136 8
1 one-l of this article and paid to the city of New York, the comptroller
2 shall collect a like amount from the city of New York.
3 § 6-a. Subdivision 1 of section 171-a of the tax law, as amended by
4 section 16 of part AAA of chapter 59 of the laws of 2017, is amended to
5 read as follows:
6 1. All taxes, interest, penalties and fees collected or received by
7 the commissioner or the commissioner's duly authorized agent under arti-
8 cles nine (except section one hundred eighty-two-a thereof and except as
9 otherwise provided in section two hundred five thereof), nine-A,
10 twelve-A (except as otherwise provided in section two hundred eighty-
11 four-d thereof), thirteen, thirteen-A (except as otherwise provided in
12 section three hundred twelve thereof), eighteen, nineteen, twenty
13 (except as otherwise provided in section four hundred eighty-two there-
14 of), twenty-one, twenty-two, twenty-six, twenty-eight (except as other-
15 wise provided in section eleven hundred two or eleven hundred three
16 thereof), twenty-eight-A, twenty-nine-B, thirty-one (except as otherwise
17 provided in section fourteen hundred twenty-one thereof), thirty-three
18 and thirty-three-A of this chapter shall be deposited daily in one
19 account with such responsible banks, banking houses or trust companies
20 as may be designated by the comptroller, to the credit of the comp-
21 troller. Such an account may be established in one or more of such
22 depositories. Such deposits shall be kept separate and apart from all
23 other money in the possession of the comptroller. The comptroller shall
24 require adequate security from all such depositories. Of the total
25 revenue collected or received under such articles of this chapter, the
26 comptroller shall retain in the comptroller's hands such amount as the
27 commissioner may determine to be necessary for refunds or reimbursements
28 under such articles of this chapter out of which amount the comptroller
29 shall pay any refunds or reimbursements to which taxpayers shall be
30 entitled under the provisions of such articles of this chapter. The
31 commissioner and the comptroller shall maintain a system of accounts
32 showing the amount of revenue collected or received from each of the
33 taxes imposed by such articles. The comptroller, after reserving the
34 amount to pay such refunds or reimbursements, shall, on or before the
35 tenth day of each month, pay into the state treasury to the credit of
36 the general fund all revenue deposited under this section during the
37 preceding calendar month and remaining to the comptroller's credit on
38 the last day of such preceding month, (i) except that the comptroller
39 shall pay to the state department of [social services] family assistance
40 that amount of overpayments of tax imposed by article twenty-two of this
41 chapter and the interest on such amount which is certified to the comp-
42 troller by the commissioner as the amount to be credited against past-
43 due support pursuant to subdivision six of section one hundred seventy-
44 one-c of this article, (ii) and except that the comptroller shall pay to
45 the New York state higher education services corporation and the state
46 university of New York or the city university of New York respectively
47 that amount of overpayments of tax imposed by article twenty-two of this
48 chapter and the interest on such amount which is certified to the comp-
49 troller by the commissioner as the amount to be credited against the
50 amount of defaults in repayment of guaranteed student loans and state
51 university loans or city university loans pursuant to subdivision five
52 of section one hundred seventy-one-d and subdivision six of section one
53 hundred seventy-one-e of this article, (iii) and except further that,
54 notwithstanding any law, the comptroller shall credit to the revenue
55 arrearage account, pursuant to section ninety-one-a of the state finance
56 law, that amount of overpayment of tax imposed by article nine, nine-A,
A. 10136 9
1 twenty-two, thirty, thirty-A, thirty-B, thirty-C or thirty-three of this
2 chapter, and any interest thereon, which is certified to the comptroller
3 by the commissioner as the amount to be credited against a past-due
4 legally enforceable debt owed to a state agency pursuant to paragraph
5 (a) of subdivision six of section one hundred seventy-one-f of this
6 article, provided, however, [he] the commissioner shall credit to the
7 special offset fiduciary account, pursuant to section ninety-one-c of
8 the state finance law, any such amount creditable as a liability as set
9 forth in paragraph (b) of subdivision six of section one hundred seven-
10 ty-one-f of this article, (iv) and except further that the comptroller
11 shall pay to the city of New York that amount of overpayment of tax
12 imposed by article nine, nine-A, twenty-two, thirty, thirty-A, thirty-B,
13 thirty-C or thirty-three of this chapter and any interest thereon that
14 is certified to the comptroller by the commissioner as the amount to be
15 credited against city of New York tax warrant judgment debt pursuant to
16 section one hundred seventy-one-l of this article, (v) and except
17 further that the comptroller shall pay to a non-obligated spouse that
18 amount of overpayment of tax imposed by article twenty-two of this chap-
19 ter and the interest on such amount which has been credited pursuant to
20 section one hundred seventy-one-c, one hundred seventy-one-d, one
21 hundred seventy-one-e, one hundred seventy-one-f or one hundred seven-
22 ty-one-l of this article and which is certified to the comptroller by
23 the commissioner as the amount due such non-obligated spouse pursuant to
24 paragraph six of subsection (b) of section six hundred fifty-one of this
25 chapter; and (vi) the comptroller shall deduct a like amount which the
26 comptroller shall pay into the treasury to the credit of the general
27 fund from amounts subsequently payable to the department of social
28 services, the state university of New York, the city university of New
29 York, or the higher education services corporation, or the revenue
30 arrearage account or special offset fiduciary account pursuant to
31 section ninety-one-a or ninety-one-c of the state finance law, as the
32 case may be, whichever had been credited the amount originally withheld
33 from such overpayment, and (vii) with respect to amounts originally
34 withheld from such overpayment pursuant to section one hundred seventy-
35 one-l of this article and paid to the city of New York, the comptroller
36 shall collect a like amount from the city of New York.
37 § 7. Subdivision 1 of section 171-c of the tax law, as amended by
38 chapter 601 of the laws of 2007, is amended to read as follows:
39 (1) The commissioner, on behalf of the department, shall enter into a
40 written agreement with the commissioner of the office of temporary and
41 disability assistance, on behalf of the state office of temporary and
42 disability assistance, which shall set forth the procedures for credit-
43 ing any overpayment by an individual, estate or trust of income tax
44 imposed by article twenty-two of this chapter, city personal income tax
45 on residents imposed pursuant to the authority of article thirty of this
46 chapter, city income tax surcharge on residents imposed pursuant to the
47 authority of article thirty-A of this chapter and city earnings tax on
48 nonresidents imposed pursuant to the authority of article thirty-B of
49 this chapter and school district income tax surcharge imposed pursuant
50 to the authority of article thirty-C of this chapter and the interest on
51 such overpayments against past-due support owed by such individual,
52 estate or trust of which the commissioner has been notified by the
53 commissioner of the office of temporary and disability assistance pursu-
54 ant to the provisions of such agreement.
A. 10136 10
1 § 8. Subdivision 1 of section 171-d of the tax law, as amended by
2 section 2 of part M of chapter 57 of the laws of 2008, is amended to
3 read as follows:
4 (1) The commissioner, on behalf of the [tax commission] department,
5 shall enter into a written agreement with the president of the New York
6 state higher education services corporation, on behalf of such corpo-
7 ration, which shall set forth the procedures for crediting any overpay-
8 ment by an individual, estate or trust of income tax imposed by article
9 twenty-two of this chapter, city personal income tax on residents
10 imposed pursuant to the authority of article thirty of this chapter,
11 city income tax surcharge on residents imposed pursuant to the authority
12 of article thirty-A of this chapter, [city earnings tax on nonresidents
13 imposed pursuant to the authority of former article two-E of the general
14 city law and] city earnings tax on nonresidents imposed pursuant to the
15 authority of article thirty-B of this chapter, school district income
16 tax surcharge imposed pursuant to the authority of article thirty-C of
17 this chapter and the interest on such overpayments against the amount of
18 any default in repayment of any governmental education loan owed by such
19 individual, estate or trust of which the commissioner has been notified
20 by the president of the New York state higher education services corpo-
21 ration pursuant to the provisions of such agreement. For purposes of
22 this section, "governmental education loan" shall mean any education
23 loan debt, including judgments, owed to the federal or New York state
24 government that is being collected by the New York state higher educa-
25 tion services corporation.
26 § 9. Subdivision 2 of section 171-e of the tax law, as separately
27 amended by chapters 222 and 638 of the laws of 1985, is amended to read
28 as follows:
29 (2) The commissioner [of taxation and finance], on behalf of the [tax
30 commission] department, shall enter into a written agreement with the
31 state university of New York or the city university of New York respec-
32 tively which shall set forth the procedures for crediting any overpay-
33 ment by an individual, estate or trust of income tax imposed by article
34 twenty-two of this chapter, city personal income tax on residents
35 imposed pursuant to the authority of article thirty of this chapter,
36 city income tax surcharge on residents imposed pursuant to the authority
37 of article thirty-A of this chapter, [city earnings tax on nonresidents
38 imposed pursuant to the authority of article two-E of the general city
39 law and] city earnings tax on nonresidents imposed pursuant to the
40 authority of article thirty-B of this chapter and school district income
41 tax surcharge imposed pursuant to the authority of article thirty-C of
42 this chapter and the interest on such overpayments against the amount of
43 any default in repayment of a state university loan or city university
44 loan owed by such individual, estate or trust of which the commissioner
45 [of taxation and finance] has been notified by the state university of
46 New York or the city university of New York respectively pursuant to the
47 provisions of such agreement.
48 § 10. Subdivisions 1 and 2 of section 171-f of the tax law, subdivi-
49 sion 1 as amended by chapter 81 of the laws of 1995, paragraphs (b) and
50 (c) of subdivision 1 as amended by section 56 and subdivision 2 as
51 amended by section 57 of part A of chapter 59 of the laws of 2014, are
52 amended to read as follows:
53 (1) For the purposes of this section, (a) "state agency" shall mean
54 any state department, board, bureau, division, commission, committee,
55 public authority, public benefit corporation, council, office, or other
56 governmental entity performing a governmental or proprietary function
A. 10136 11
1 for the state, or, solely for purposes of this section, a local social
2 services district; (b) "taxpayer" shall mean a corporation, association,
3 company, partnership, estate, trust, liquidator, fiduciary or other
4 entity or individual who or which is liable for any tax or other imposi-
5 tion imposed by or pursuant to article nine, nine-A, twenty-two, thirty,
6 thirty-A, thirty-B, thirty-C or thirty-three of this chapter [or article
7 two-E of the general city law], which tax or other imposition is admin-
8 istered by the commissioner [of taxation and finance], or who or which
9 is under a duty to perform an act under or pursuant to such tax or impo-
10 sition, excluding a state agency, a municipal corporation or a district
11 corporation; and (c) "overpayment" shall mean an overpayment which has
12 been requested or determined to be refunded, a refund or a reimburse-
13 ment, of a tax or other imposition imposed by or pursuant to article
14 nine, nine-A, twenty-two, thirty, thirty-A, thirty-B, thirty-C or thir-
15 ty-three of this chapter or former article two-E of the general city
16 law, which is administered by the commissioner [of taxation and
17 finance].
18 (2) The commissioner [of taxation and finance], upon agreement with
19 the state comptroller and acting as an agent for the state comptroller,
20 shall set forth the procedures for crediting any overpayment by a
21 taxpayer of any tax or other imposition imposed by or authorized to be
22 imposed pursuant to article nine, nine-A, twenty-two, thirty, thirty-A,
23 thirty-B, thirty-C or thirty-three of this chapter [or article two-E of
24 the general city law], which is administered by the commissioner [of
25 taxation and finance], and the interest on any such overpayments,
26 against the amount of a past-due legally enforceable debt owed by such
27 taxpayer to a state agency. An implementation plan shall be developed by
28 the division of the budget and the department of taxation and finance
29 which shall provide, but not be limited to, guidance with respect to
30 coordination of debt collection pursuant to this section and subdivision
31 twenty-seventh of section one hundred seventy-one of this article. This
32 section shall not be deemed to abrogate or limit in any way the powers
33 and authority of the state comptroller to set off debts owed the state
34 against payments from the state, under the constitution of the state or
35 any other law.
36 § 11. Paragraph 1 of subsection (c) of section 615 of the tax law, as
37 amended by section 1 of part CC of chapter 57 of the laws of 2010, is
38 amended to read as follows:
39 (1) state and local general sales taxes as defined in subsection (b)
40 of section one hundred sixty-four of the internal revenue code, to the
41 extent included in federal itemized deductions or income taxes imposed
42 by this state or any other taxing jurisdiction, except (A) city earnings
43 taxes on nonresidents that are imposed upon and paid by taxpayers for
44 taxable years beginning after December thirty-first, nineteen hundred
45 seventy and before January first, two thousand, pursuant to the authori-
46 ty of former section twenty-five-m of the general city law, to the
47 extent that the amount of such tax exceeds the tax computed as if the
48 rates were one-fourth of one percent of wages subject to tax and three-
49 eighths of one percent of net earnings from self-employment subject to
50 tax, and (B) any school district income tax surcharge imposed pursuant
51 to the authority of article thirty-C of this chapter;
52 § 12. The tax law is amended by adding a new article 30-C to read as
53 follows:
54 ARTICLE 30-C
55 SCHOOL DISTRICT INCOME TAX SURCHARGE
56 Section 1360. Short title.
A. 10136 12
1 1361. Authority to impose school district income tax surcharge.
2 1362. Model resolution.
3 1363. Adoption of the model school district income tax
4 surcharge.
5 1364. Deposit and disposition of revenues.
6 § 1360. Short title. This article shall be known and may be cited as
7 the "school district income tax surcharge".
8 § 1361. Authority to impose school district income tax surcharge. (a)
9 General. Notwithstanding any other provision of law to the contrary, but
10 subject to the limitations and conditions set forth in this article, any
11 school district in this state (other than a school district of a city
12 subject to the provisions of article fifty-two of the education law),
13 acting through its board of trustees or board of education in accordance
14 with section fifteen hundred one-d of the education law, is hereby
15 authorized and empowered to adopt and amend resolutions imposing in any
16 such school district, for taxable years beginning after two thousand
17 ten, a school district income tax surcharge on the net state tax (as
18 defined in section three of the model school district income tax
19 surcharge set forth in section thirteen hundred sixty-three of this
20 article) of residents of the school district, at a rate permissible
21 under subsection (c) of this section. Such school district income tax
22 surcharge shall be administered, collected and distributed by the
23 commissioner as provided for in this article.
24 (b) Form of adoption of resolution. Adoption of an income tax
25 surcharge pursuant to the authority of this section shall be by adoption
26 of a resolution, substantially similar in terms to the model resolution
27 set forth in section thirteen hundred sixty-two of this article, setting
28 forth one of the rates of income tax surcharge provided in subsection
29 (c) of this section and specifying the taxable years for which the rate
30 is to be effective. Such resolution shall be deemed to incorporate ther-
31 ein all of the provisions of the model school district income tax
32 surcharge set forth in section thirteen hundred sixty-three of this
33 article, as amended from time to time.
34 (c) Rate of surcharge. The permissible rates of income tax surcharge
35 authorized by this section shall be whole number multiples of one
36 percent and shall not exceed twenty-five percent. Different permissible
37 rates may be imposed with respect to different calendar years, but only
38 one such rate may be imposed with respect to a single calendar year, and
39 any such rate shall remain in effect for the entire year and shall apply
40 to all taxable years beginning in such calendar year.
41 (d) Effectiveness of resolution and filing with commissioner. (1)
42 Initial adoption. A resolution imposing an income tax surcharge pursuant
43 to the authority of this section which is adopted on or before March
44 thirty-first of any calendar year with notice to the commissioner on or
45 before such date shall go into effect on the first day of January of the
46 first succeeding calendar year, and any such local law enacted after, or
47 with notice after, such March thirty-first shall go into effect on the
48 first day of January of the second succeeding calendar year, and in
49 either case shall apply to taxable years beginning on and after such
50 first day of January.
51 (2) Amendment. A resolution amending such an income tax surcharge,
52 which resolution is adopted on or before June thirtieth of any calendar
53 year with notice to the commissioner on or before such date shall go
54 into effect on the first day of January of the first succeeding calendar
55 year, and any such resolution adopted after, or with notice after, such
56 June thirtieth shall go into effect on the first day of January of the
A. 10136 13
1 second succeeding calendar year, and in either case shall apply to taxa-
2 ble years beginning on and after such first day of January.
3 (3) Notice. Notice to the commissioner of adoption of any resolution
4 pursuant to the authority of this section shall be by mailing by regis-
5 tered mail a certified copy of such resolution to the commissioner at
6 the commissioner's office in Albany.
7 (e) Filing of resolution with others. Certified copies of any such
8 resolution shall also be filed, within thirty days of the date of enact-
9 ment, with the clerk of the school district wherein the surcharge is
10 imposed.
11 (f) Cooperation. (1) Every school district imposing a school district
12 income tax surcharge under the authority of this section shall furnish
13 the commissioner such information as he or she may require in the admin-
14 istration of such surcharge, any other law to the contrary notwithstand-
15 ing.
16 (2) The commissioner shall advise and cooperate with school district
17 officials for the purpose of uniform administration, collection and
18 distribution of the tax authorized by this section.
19 (3) Any amendment to the provisions of article twenty-two of this
20 chapter, to the extent that such amendment is applicable to the model
21 school district income tax surcharge, shall be deemed to have been
22 incorporated in the analogous provision or provisions of such model
23 surcharge.
24 § 1362. Model resolution. The resolution described in subsection (b)
25 of section thirteen hundred sixty-one of this article shall be in
26 substantially the following form:
27 IMPOSITION OF SCHOOL DISTRICT INCOME TAX SURCHARGE.
28 The school district hereby adopts the model school
29 district income tax surcharge, for taxable years beginning on and after
30 January 1, 20 , at the rate of percent.
31 § 1363. Adoption of the model school district income tax surcharge.
32 Adoption by a school district of the resolution set forth in section
33 thirteen hundred sixty-two of this article shall be deemed to be
34 adoption of the model school district income tax surcharge set forth
35 below.
36 MODEL SCHOOL DISTRICT INCOME TAX SURCHARGE
37 Section 1. Persons subject to the school district income tax surcharge.
38 2. Renter's credit.
39 3. Net state tax.
40 4. School district resident defined.
41 5. Returns and liabilities.
42 6. Requirement of withholding tax from wages.
43 7. Credit for tax withheld.
44 8. Enforcement with other taxes.
45 9. Administration, collection and review.
46 Section 1. Persons subject to the school district income tax
47 surcharge. (a) General. The school district income tax surcharge at the
48 rate adopted shall be imposed for each taxable year on every school
49 district resident individual, estate and trust. A taxpayer's taxable
50 year for purposes of the school district income tax surcharge shall be
51 the same as the taxpayer's taxable year under article twenty-two of the
52 tax law.
53 (b) Partners and partnerships. A partnership as such shall not be
54 subject to the school district income tax surcharge. Persons carrying on
55 business as partners shall be liable for such school district income tax
56 surcharge only in their separate or individual capacities.
A. 10136 14
1 (c) Associations taxable as corporations. An association, trust or
2 other unincorporated organization which is taxable as a corporation for
3 federal income tax purposes shall not be subject to the school district
4 income tax surcharge.
5 (d) Exempt trusts and organizations. A trust or other unincorporated
6 organization which by reason of its purposes or activities is exempt
7 from federal income tax shall be exempt from the school district income
8 tax surcharge (regardless of whether subject to federal income tax on
9 unrelated business taxable income).
10 § 2. Renter's credit. (a) General. A taxpayer who is a qualified
11 lessee shall be allowed a credit against the tax imposed by this model
12 surcharge equal to one and one-quarter percent of his or her adjusted
13 rent.
14 (b) Qualified lessee. A qualified lessee is an individual whose resi-
15 dence within the school district is leased real property which is not
16 residential real property.
17 (c) Adjusted rent. The term adjusted rent shall have the same meaning
18 as in subparagraph (G) of paragraph one of subsection (e) of section six
19 hundred six of the tax law, with respect to the rental paid by the qual-
20 ified lessee during the taxable year for the residence referred to in
21 subsection (b) of this section.
22 § 3. Net state tax. (a) General. The net state tax of a school
23 district resident individual, estate or trust shall mean the sum of all
24 of the taxes imposed on such individual, estate or trust under article
25 twenty-two of the tax law for the taxable year less the applicable cred-
26 its (other than the credit for tax withheld) allowed to such individual,
27 estate or trust under such article for the taxable year.
28 (b) Change of residence. When an individual or trust changes school
29 district resident status during the taxable year, the net state tax
30 shall be the net state tax determined under subsection (a) of this
31 section multiplied by a fraction, the numerator of which is the number
32 of months of residence in the school district in the taxable year and
33 the denominator of which is the number of months in the taxable year.
34 For purposes of this subsection, a month shall constitute a month of
35 residence if the individual or trust is a resident for more than fifteen
36 days of that month.
37 § 4. School district resident defined. (a) School district resident
38 individual. A school district resident individual means an individual
39 who is domiciled in the school district wherein the school district
40 income tax surcharge is imposed, unless
41 (1) such individual maintains no permanent place of abode in such
42 school district, maintains a permanent place of abode elsewhere, and
43 spends in the aggregate not more than thirty days of the taxable year in
44 such school district, or
45 (2)(A) within any period of five hundred forty-eight consecutive days
46 such individual is present in a foreign country or countries for at
47 least four hundred fifty days, and (B) during such period of five
48 hundred forty-eight consecutive days he or she is not present in such
49 school district for more than ninety days and does not maintain a perma-
50 nent place of abode in such school district at which his or her spouse
51 (unless such spouse is legally separated) or minor children are present
52 for more than ninety days, and (C) during the nonresident portion of the
53 taxable year with or within which such period of five hundred forty-
54 eight consecutive days begins and the nonresident portion of the taxable
55 year with or within which such period ends, he or she is present in such
56 school district for a number of days which does not exceed an amount
A. 10136 15
1 which bears the same ratio to ninety as the number of days contained in
2 such portion of the taxable year bears to five hundred forty-eight.
3 (b) School district resident estate or trust. A school district resi-
4 dent estate or trust means: (1) the estate of a decedent who at his or
5 her death was domiciled in such school district,
6 (2) a trust, or a portion of a trust, consisting of property trans-
7 ferred by will of a decedent who at his or her death was domiciled in
8 such school district, or
9 (3) a trust, or a portion of a trust, consisting of the property of:
10 (A) a person domiciled in such school district at the time such prop-
11 erty was transferred to the trust, if such trust or portion of a trust
12 was then irrevocable, or if it was then revocable and has not subse-
13 quently become irrevocable; or
14 (B) a person domiciled in such school district at the time such trust
15 or portion of a trust became irrevocable, if it was revocable when such
16 property was transferred to the trust but has subsequently become irrev-
17 ocable.
18 For the purposes of the foregoing, a trust or a portion of a trust is
19 revocable if it is subject to a power, exercisable immediately or at any
20 future time, to revest title in the person whose property constitutes
21 such trust or portion of a trust and a trust or portion of a trust
22 becomes irrevocable when the possibility that such power may be exer-
23 cised has been terminated.
24 § 5. Returns and liabilities. (a) General. On or before the fifteenth
25 day of the fourth month following the close of a taxable year, a school
26 district income tax surcharge return shall be made and filed by or for
27 every school district resident individual, estate or trust required to
28 file a New York state personal income tax return for the taxable year.
29 (b) Husband and wife. (1) If the New York state personal income tax
30 liabilities of husband and wife are determined on separate returns,
31 their school district income tax surcharge liabilities and returns shall
32 be separate.
33 (2) If the New York state personal income tax liabilities of husband
34 and wife (other than a husband and wife described in paragraph three of
35 this subsection) are determined on a joint return, they shall file a
36 joint school district income tax surcharge return, and their school
37 district income tax surcharge liabilities shall be joint and several
38 except as provided in paragraphs four and five of this subsection and in
39 subsection (e) of section six hundred eighty-five of the tax law.
40 (3) If either husband or wife is a school district resident and the
41 other is a school district nonresident, and their New York state
42 personal income tax liabilities are determined on a joint return:
43 (A) the resident spouse may elect to file a separate school district
44 income tax surcharge return, in which case the surcharge shall be
45 applied to a separate net state tax, such separate net state tax to be
46 that portion of the total net state tax determined from the joint state
47 return which bears the same relation to such total net state tax as the
48 New York adjusted gross income (as defined in section six hundred twelve
49 of the tax law) of the resident spouse bears to the joint New York
50 adjusted gross income, or
51 (B) they may elect to file a joint school district income tax
52 surcharge return, in which case their school district income tax
53 surcharge liabilities shall be joint and several except as provided in
54 paragraphs four and five of this subsection and in subsection (e) of
55 section six hundred eighty-five of the tax law, provided that (i) if the
56 school district of residence of each spouse imposes a surcharge, but at
A. 10136 16
1 different rates, they shall file the joint school district income tax
2 surcharge return with the school district imposing the higher rate of
3 surcharge, and there shall be no surcharge liability to the other school
4 district, or
5 (ii) if the school district of residence of each spouse imposes a
6 surcharge and the rates are the same, they shall file a joint school
7 district income tax surcharge return with each school district, but the
8 surcharge on each such return shall be applied to one-half of the net
9 state tax.
10 (4) Under regulations prescribed by the commissioner, if
11 (A) a joint New York state personal income tax return has been made
12 under subsection (b) of section six hundred fifty-one of the tax law for
13 a taxable year, (B) on such return there is a substantial understatement
14 of tax attributable to grossly erroneous items of one spouse, (C) the
15 other spouse is relieved of liability for New York state personal income
16 tax (including interest, penalties and other amounts) for such taxable
17 year to the extent that such liability is attributable to such substan-
18 tial understatement, and (D) a joint school district personal income tax
19 surcharge return has been made pursuant to this subsection for the taxa-
20 ble year, then such other spouse shall be relieved of liability for
21 school district income tax surcharge (including interest, penalties and
22 other amounts) for such taxable year under the school district income
23 tax surcharge, to the extent that such liability is attributable to such
24 substantial understatement.
25 (5) If a joint return has been made pursuant to this subsection for a
26 taxable year and only one spouse is liable for past-due support, or a
27 past-due legally enforceable debt, or an amount of a default in repay-
28 ment of a guaranteed student, state university or city university loan
29 of which the commissioner has been notified pursuant to section one
30 hundred seventy-one-c, one hundred seventy-one-d, one hundred seventy-
31 one-e or one hundred seventy-one-f of the tax law, as the case may be,
32 then an overpayment and interest thereon shall be credited against such
33 past-due support, or a past-due legally enforceable debt, or such amount
34 of a default in repayment of a guaranteed student, state university or
35 city university loan, unless the spouse not liable for such past-due
36 support, or a past-due legally enforceable debt, or such amount of a
37 default in repayment of a guaranteed student, state university or city
38 university loan demands, on a declaration made in accordance with regu-
39 lations or instructions prescribed by the commissioner, that the portion
40 of the overpayment and interest attributable to such spouse not be cred-
41 ited against the past-due support, or a past-due legally enforceable
42 debt, or amount of a default in repayment of a guaranteed student, state
43 university or city university loan owed by the other spouse. Upon such
44 demand the commissioner shall determine the amount of the overpayment
45 attributable to each spouse in accordance with regulations prescribed by
46 the commissioner and credit only that portion of the overpayment and
47 interest thereon attributable to the spouse liable for past-due support,
48 or a past-due legally enforceable debt, or amount of a default in repay-
49 ment of a guaranteed student, state university or city university loan
50 against such past-due support, or a past-due legally enforceable debt,
51 or such amount of a default in repayment of a guaranteed student, state
52 university or city university loan.
53 (c) Decedents. The return for any deceased individual shall be made
54 and filed by his or her executor, administrator, or other person charged
55 with his or her property. If a final return of a decedent is for a frac-
56 tional part of a year, the due date of such return shall be the
A. 10136 17
1 fifteenth day of the fourth month following the close of the twelve-
2 month period which began with the first day of such fractional part of
3 the year.
4 (d) Individuals under a disability. The return for an individual who
5 is unable to make a return by reason of minority or other disability
6 shall be made and filed by his or her guardian, committee, fiduciary or
7 other person charged with the care of his or her person or property
8 (other than a receiver in possession of only a part of his or her prop-
9 erty), or by his or her duly authorized agent.
10 (e) Estates and trusts. The return for an estate or trust shall be
11 made and filed by the fiduciary.
12 (f) Joint fiduciaries. If two or more fiduciaries are acting jointly,
13 the return may be made by any one of them.
14 § 6. Requirement of withholding tax from wages. The school district
15 income tax surcharge shall be withheld from the wages of school district
16 residents in the same manner and subject to the same requirements, to
17 the greatest extent possible, as provided in sections six hundred seven-
18 ty-one through six hundred seventy-eight of the tax law except that the
19 term "aggregate amount" contained in paragraphs one, two and three of
20 subsection (a) of section six hundred seventy-four of the tax law shall
21 mean the aggregate of the amounts required to be deducted and withheld
22 of the New York state personal income tax, the city income and earnings
23 taxes authorized pursuant to articles thirty, thirty-A and thirty-B of
24 the tax law, and the school district income tax surcharge.
25 § 7. Credit for tax withheld. The school district income tax surcharge
26 withheld shall not reduce net state tax for purposes of computing the
27 school district income tax surcharge, but any amount of tax actually
28 deducted and withheld under this model surcharge in any calendar year
29 shall be deemed to have been paid to the department of taxation and
30 finance on behalf of the person from whom withheld, and such person
31 shall be credited with having paid the amount of tax for the taxable
32 year beginning in such calendar year. For a taxable year of less than
33 twelve months, the credit shall be made under regulations of the commis-
34 sioner.
35 § 8. Enforcement with other taxes. (a) Joint assessment. If there is
36 assessed a tax under the school district income tax surcharge and there
37 is also assessed a tax against the same taxpayer pursuant to article
38 twenty-two of the tax law or under a local law enacted pursuant to the
39 authority of article thirty, thirty-A or thirty-B of the tax law and
40 payment of a single amount is required under the provisions of this
41 model surcharge, payment shall be deemed to have been made with respect
42 to the taxes so assessed in proportion to the amounts of such taxes due,
43 including tax, penalties, interest and additions to tax.
44 (b) Joint action. If the commissioner takes action under such article
45 twenty-two or under a local law enacted pursuant to the authority of
46 article thirty, thirty-A or thirty-B of the tax law with respect to the
47 enforcement and collection of the tax or taxes assessed under such arti-
48 cles the commissioner shall, wherever possible, accompany such action
49 with a similar action under similar enforcement and collection
50 provisions of the school district income tax surcharge.
51 (c) Apportionment of moneys collected by joint action. Any moneys
52 collected as a result of such joint action shall be deemed to have been
53 collected in proportion to the amounts due, including tax, penalties,
54 interest and additions to tax, under article twenty-two of the tax law
55 or under a local law enacted pursuant to the authority of article thir-
A. 10136 18
1 ty, thirty-A, or thirty-B of the tax law and the school district income
2 tax surcharge.
3 (d) Joint deficiency action. Whenever the commissioner takes any
4 action with respect to a deficiency of income tax under article twenty-
5 two of this chapter or under a local law enacted pursuant to the author-
6 ity of article thirty, thirty-A or thirty-B of the tax law, other than
7 the action set forth in subsection (a) of this section, the commissioner
8 may in his or her discretion accompany such action with a similar action
9 under the school district income tax surcharge.
10 § 9. Administration, collection and review. (a) General. Except as
11 otherwise provided in this article, the school district income tax
12 surcharge shall be administered and collected by the commissioner in the
13 same manner as the tax imposed by article twenty-two of the tax law is
14 administered and collected by the commissioner. All of the provisions of
15 article twenty-two of the tax law relating to or applicable to payment
16 of estimated tax, returns, payment of tax, withholding of tax from
17 wages, employer's statements and returns, employer's liability for taxes
18 required to be withheld and all other provisions of article twenty-two
19 relating to or applicable to the administration, collection, liability
20 for and review of the tax imposed by article twenty-two, including
21 sections six hundred fifty-two and six hundred fifty-three, sections six
22 hundred fifty-seven through six hundred fifty-nine, section six hundred
23 sixty-one, sections six hundred seventy-one and six hundred seventy-two,
24 sections six hundred seventy-four through six hundred seventy-eight and
25 sections six hundred eighty-one through six hundred ninety-seven of the
26 tax law, inclusive, shall apply to the school district income tax
27 surcharge with the same force and effect as if those provisions had been
28 incorporated in full into this model surcharge, and had expressly
29 referred to the school district income tax surcharge, except where any
30 such provision is either inconsistent with a provision of this model
31 surcharge or is not relevant to this model surcharge. Whenever there is
32 joint collection of state personal income tax, city personal income or
33 earnings taxes or school district income tax surcharge, it shall be
34 deemed that such collection shall represent proportionately the applica-
35 ble state personal income tax, city personal income or earnings tax or
36 school district income tax surcharge in determining the amount to be
37 remitted to the school district.
38 (b) Payment to designated depositories. The commissioner, in his or
39 her discretion, may require or permit any or all persons liable for any
40 school district income tax surcharge imposed under this model surcharge
41 to make payments on account of estimated school district income tax
42 surcharge and payment of any school district income tax surcharge,
43 penalty or interest to such banks, banking houses or trust companies
44 designated by the commissioner and to file returns with such banks,
45 banking houses or trust companies, as agent of the commissioner, in lieu
46 of paying a school district income tax surcharge imposed under this
47 model surcharge directly to the commission. However, the commissioner
48 shall designate only such banks, banking houses or trust companies which
49 are designated by the comptroller as depositories of the state.
50 (c) Combined filings. Notwithstanding any other provisions of this
51 article, the commissioner may require:
52 (1) the filing of any or all of the following:
53 (A) a combined return which, in addition to the return provided for in
54 section five hereof, may also include any of the returns required pursu-
55 ant to the provisions of section six hundred fifty-one of the tax law to
56 be filed by an individual, estate or trust who or which is a resident of
A. 10136 19
1 New York state, and which may be required to be filed by such individ-
2 ual, estate or trust pursuant to any local law enacted pursuant to the
3 authority of article thirty, thirty-A or thirty-B of the tax law, and
4 (B) a combined employer's return which, in addition to the employer's
5 return provided for by this model surcharge, may also include any of the
6 employer's returns required to be filed by the same employer pursuant to
7 the provisions of section six hundred seventy-four of the tax law and
8 required to be filed by such employer pursuant to any local law enacted
9 under the authority of article thirty, thirty-A or thirty-B of the tax
10 law.
11 (2) Where a combined return or employer's return is required, and with
12 respect to the payment of estimated tax, the commissioner may also
13 require the payment of a single amount which shall equal the total of
14 the amounts (total taxes less any credits or refunds) which would have
15 been required to be paid with the returns or employer's returns or in
16 payment of estimated tax pursuant to the provisions of article twenty-
17 two of the tax law and this model surcharge and the provisions of local
18 laws enacted under the authority of article thirty, thirty-A or thirty-B
19 of the tax law.
20 § 1364. Deposit and disposition of revenues. (a) Deposit of revenues.
21 All revenue collected by the commissioner from the tax imposed by any
22 school district pursuant to the authority of this article shall be
23 deposited daily with such responsible banks, banking houses or trust
24 companies, as may be designated by the state comptroller, to the credit
25 of the comptroller, in trust for such school district. Such deposits
26 shall be kept in trust and separate and apart from all other moneys in
27 the possession of the comptroller. The comptroller shall require
28 adequate security from all such depositories of such revenue collected
29 by the commissioner.
30 (b) Reserves. The comptroller shall retain a reserve for refunds in
31 such amount as the commissioner may determine to be necessary for
32 refunds in respect to such tax and a reserve for reasonable costs of the
33 commissioner in administering, collecting and distributing such tax.
34 (1) From the reserve for refunds the comptroller shall pay any refunds
35 of such tax to which a taxpayer shall be entitled under any surcharge
36 enacted by a school district pursuant to the authority of this article,
37 except that
38 (A) the comptroller shall pay to the state department of social
39 services that amount of overpayment of such tax and the interest on such
40 amount which is certified to him or her by the commissioner as the
41 amount to be credited against past-due support pursuant to subdivision
42 six of section one hundred seventy-one-c of this chapter,
43 (B) the comptroller shall pay to the New York state higher education
44 services corporation that amount of overpayment of such tax and the
45 interest on such amount which is certified to him or her by the commis-
46 sioner as the amount to be credited against the amount of defaults in
47 repayment of guaranteed student loans pursuant to subdivision five of
48 section one hundred seventy-one-d of this chapter,
49 (C) the comptroller shall pay to the state university of New York or
50 the city university of New York respectively that amount of overpayment
51 of such tax and the interest on such amount which is certified to him or
52 her by the commissioner as the amount to be credited against the amount
53 of defaults in repayment of state or city university loans pursuant to
54 subdivision six of section one hundred seventy-one-e of this chapter,
55 (D) notwithstanding any other provision of law, the comptroller shall
56 credit to the revenue arrearage account, pursuant to section
A. 10136 20
1 ninety-one-a of the state finance law, that amount of overpayment of
2 such tax and the interest on such amount which is certified to him or
3 her by the commissioner as the amount to be credited against a past-due
4 legally enforceable debt owed to a state agency pursuant to subdivision
5 six of section one hundred seventy-one-f of this chapter, and
6 (E) the comptroller shall pay to a non-obligated spouse that amount of
7 overpayment of such tax and the interest on such amount which has been
8 credited pursuant to section one hundred seventy-one-c, one hundred
9 seventy-one-d, one hundred seventy-one-e or one hundred seventy-one-f of
10 this chapter and which is certified to him or her by the commissioner as
11 the amount due such non-obligated spouse pursuant to paragraph six of
12 subsection (b) of section six hundred fifty-one of this chapter, and the
13 comptroller shall deduct a like amount which he or she shall pay into
14 the treasury to the credit of the general fund from amounts subsequently
15 payable to the department of family assistance, the state university of
16 New York, the city university of New York, the higher education services
17 corporation or to the revenue arrearage account pursuant to section
18 ninety-one-a of the state finance law, as the case may be, whichever had
19 been credited the amount originally withheld from such overpayment.
20 (2) The amount reserved for administering, collecting and distributing
21 such tax shall be paid by the comptroller on or before the fifteenth day
22 of each month into the general fund of the state treasury to the credit
23 of the state purposes account therein.
24 § 13. Subdivision (e) of section 1800 of the tax law, as added by
25 chapter 65 of the laws of 1985, is amended to read as follows:
26 (e) As used in this article, the term "related income or earnings tax
27 statute" means any law, ordinance or resolution imposed pursuant to the
28 authority of article thirty, [thirty-a or thirty-b] thirty-A, thirty-B
29 or thirty-C of this chapter [or article two-E of the general city law,
30 while such article two-E shall remain in full force and effect].
31 § 14. Subdivision (c) of section 3008 of the tax law, as added by
32 chapter 770 of the laws of 1992, is amended to read as follows:
33 (c) Assessments attributable to certain mathematical errors by the
34 department. In the case of an assessment of any tax imposed by or pursu-
35 ant to the authority of article twenty-two, thirty, thirty-A [or], thir-
36 ty-B or thirty-C of this chapter [or article two-E of the general city
37 law] attributable in whole or in part to a mathematical error described
38 in subparagraph (A) of paragraph two of subsection (g) of section
39 sixty-two hundred thirteen of the federal internal revenue code, if the
40 return was prepared by an officer or employee of the department acting
41 in his or her official capacity to provide assistance to taxpayers in
42 the preparation of income tax returns, the commissioner is authorized to
43 abate the assessment of all or any part of any interest on such defi-
44 ciency for any period ending on or before the tenth day following the
45 date of notice and demand by the commissioner for payment of the defi-
46 ciency.
47 § 15. Section 171 of the tax law is amended by adding a new subdivi-
48 sion twenty-ninth to read as follows:
49 Twenty-ninth. Develop guidelines and provide technical assistance to a
50 study commission of a school district formed pursuant to section fifteen
51 hundred one-d of the education law in order to implement the provisions
52 of article thirty-C of this chapter and section thirteen hundred seven
53 of the real property tax law.
54 § 16. The state education department and the department of taxation
55 and finance are hereby directed to conduct a joint study on whether this
56 act has provided school districts with greater flexibility to finance
A. 10136 21
1 public education and afforded relief to residential property taxpayers,
2 and report jointly to the governor and the legislature together with any
3 recommendations for change to meet these purposes. Said study shall not
4 commence until this act has been in effect for five years upon which the
5 aforementioned agencies shall file a joint written report to the gover-
6 nor and the legislature by no later than the sixth year after this act
7 takes effect.
8 § 17. This act shall take effect immediately; provided that the amend-
9 ments to subdivision 1 of section 171-a of the tax law made by section
10 six of this act shall be subject to the expiration and reversion of such
11 subdivision pursuant to section 12 of chapter 90 of the laws of 2014, as
12 amended, when upon such date the provisions of section six-a of this act
13 shall take effect.
14 § 3. Severability clause. If any clause, sentence, paragraph, subdivi-
15 sion, section or part of this act shall be adjudged by any court of
16 competent jurisdiction to be invalid, such judgment shall not affect,
17 impair, or invalidate the remainder thereof, but shall be confined in
18 its operation to the clause, sentence, paragraph, subdivision, section
19 or part thereof directly involved in the controversy in which such judg-
20 ment shall have been rendered. It is hereby declared to be the intent of
21 the legislature that this act would have been enacted even if such
22 invalid provisions had not been included herein.
23 § 4. This act shall take effect immediately provided, however, that
24 the applicable effective dates of Parts A and B of this act shall be as
25 specifically set forth in the last section of such Parts.