Bill Text: NY A03009 | 2021-2022 | General Assembly | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2021-2022 state fiscal year; extends the top rate of income tax (Part A); imposes a pass-through entity tax (Part C); relates to child care services expenditures under the excelsior jobs program and the employer provided child care credit (Part D); reforms and simplifies various business tax provisions (Part E); extends the empire state film production credit and the empire state film post production credit (Part F); increases penalties for failure of an employer to provide complete and correct employee withholding information (Part G); relates to taxes imposed on admission to race tracks and simulcast facilities; repeals certain provisions of law relating thereto (Part J); exempts from sales and use tax certain tangible personal property or services (Part M); increases the total dollar amount for vendors' gross receipts necessary for registration filing (Part N); imposes liability for real estate transfer taxes on responsible persons; prohibits grantors from passing real estate transfer tax to grantees; exempts certain organizations from the LLC disclosure requirement (Part O); relates to restrictions on certain cigarette and tobacco retail dealers whose registrations have been revoked or who have been forbidden from selling such products (Part P); relates to the timing and method for filing certain returns (Part Q); relates to determining liability for the collection of taxes on medallion taxicab trips and congestion surcharges (Part R); relates to penalties for failure of tax return preparers to register; requires tax return preparers to display certain documents (Part S); relates to electronic submission of consolidated real property transfer forms (Part U); relates to the STAR credit for mobile homes (Part V); relates to the administration of real property taxes and local laws or resolutions regarding such taxes (Part W); promotes the development of renewable energy projects, including solar or wind energy systems (Part X); provides for regulation of sports wagering and mobile sports wagering; defines terms; implements a tax on sports wagering gross revenue; requires reporting; provides for civil penalties for violations (Part Y); authorizes a request from the gaming commission for information related to interest in gaming facility licenses (Part Z); relates to the frequency at which certain lottery draw games may be offered (Part BB); relates to transferring powers and duties of the office of the gaming inspector general to the office of the state inspector general (Part CC); extends certain provisions of law related to simulcasting (Part DD); extends the alternative fuels tax exemptions for five years (Part EE); extends the farm workforce retention credit (Part FF); extends the credit against income tax for persons or entities investing in low-income housing (Part GG); extends the musical and theatrical production tax credit; increases the aggregate cap on such credit (Part HH); extends the hire a vet tax credit (Part II); extends the tax credits under the economic transformation and facility redevelopment program (Part JJ); requires the implementation of the secure choice savings program by December 31, 2021 (Part KK); modifies certain racing support payments (Part LL); exempts breast pump replacement parts and certain supplies from sales and compensating use taxes (Part MM); relates to applying work-location based tax credits to remote work performed during COVID-19 (Part NN); exempts certain tax underpayments from interest accumulation (Part OO); enacts the restaurant return-to-work tax credit (Subpart A); enacts the New York city musical and theatrical production tax credit; creates the New York state council on the arts cultural program fund (Subpart B)(Part PP); relates to modifying the minimum amount of personal income and corporate tax overpayment by an individual in which interest can be allowed or paid (Part QQ); provides a modification reducing federal adjusted gross income by the amount of the COVID-19 family death benefit paid pursuant to the metropolitan transportation authority program established in 2020 for purposes of determining New York state taxable income (Part RR); extends sales tax exemption for certain food and drink vending machines (Part SS); enacts the environmental bond act of 2022 "restore mother nature"; authorizes state debt not exceeding $3,000,000,000 for making environmental improvements that preserve, enhance, and restore New York's natural resources and reduce the impact of climate change (Part TT); implements the environmental bond act of 2022 "restore mother nature" for projects including flood risk reduction, open space land conservation and recreation, climate change mitigation, water quality improvement and resilient infrastructure, and environmental justice (Part UU); establishes the COVID-19 pandemic small business recovery grant program to provide assistance to small businesses and for-profit independent arts and cultural organizations who have experienced economic hardship during the COVID-19 pandemic (Part VV); subjects certain state lands in Orange county to real property taxation (Part WW); relates to increasing the maximum amount of grants and loans under the airport improvement and revitalization grant and loan program (Part XX); renames the Newkirk Avenue subway station on the IRT Nostrand Avenue line the "Newkirk Avenue -- Little Haiti station" (Part YY); relates to the minimum combined single limit amount of a bond or insurance policy for commuter vans (Part ZZ); enacts the "New York state professional policing act of 2021"; requires the inspector general and attorney general to notify the division of criminal justice services of any allegations or abuse by any police officer in a covered agency; requires the law enforcement agency accreditation council to create a mandatory certification process for agencies employing certain police officers; makes related provisions (Part BBB); relates to the rehabilitation of historic properties tax credit; provides that small projects of $2,500,000 or less are entitled to 150% of the amount of credit allowed the taxpayer under the internal revenue code (Part CCC); modifies inclusions and exclusions for certain definitions of income (Part DDD); creates the excluded worker fund to provide benefits for persons not eligible for funds under other state or federal programs or assistance and who has suffered a loss of income due to the COVID-19 pandemic (Part EEE); extends COLA provisions in the amount of one percent for the purposes of establishing rates of payments for the period beginning April 1, 2021 and ending March 31, 2022 (Part FFF); relates to aid and incentives for municipalities base level grants (Part GGG); relates to the computation of franchise tax on a business income base and capital base (Part HHH); establishes the real property tax relief credit (Part III); provides for the administration of certain funds and accounts related to the 2021-2022 budget; authorizes certain payments and transfers; relates to the issuance of bonds and notes; relates to personal income tax notes for 2022, lines of credit for the dormitory authority and the urban development corporation for 2022 and state-supported debt for 2022; makes related provisions (Part JJJ); authorizes the city of New York and the board of education of the city of New York to offer temporary retirement incentives (Subpart A); provides an age 55/25 years temporary retirement incentive for certain public employees of the city of New York and the board of education of the city of New York (Subpart B) (Part KKK); relates to the utilization of funds in the Catskill region and Capital region off-track betting corporation's capital acquisition funds (Part LLL); extends certain provisions relating to the operation and administration of the legislature (Part MMM); makes technical and clarifying changes relating to restricting the use of segregated confinement and the creation of alternative therapeutic and rehabilitative confinement options (Part NNN); relates to the taxes imposed on revenue from gaming facilities (Part OOO).
Spectrum: Committee Bill
Status: (Introduced - Dead) 2021-04-07 - substituted by s2509c [A03009 Detail]
Download: New_York-2021-A03009-Amended.html
Bill Title: Enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2021-2022 state fiscal year; extends the top rate of income tax (Part A); imposes a pass-through entity tax (Part C); relates to child care services expenditures under the excelsior jobs program and the employer provided child care credit (Part D); reforms and simplifies various business tax provisions (Part E); extends the empire state film production credit and the empire state film post production credit (Part F); increases penalties for failure of an employer to provide complete and correct employee withholding information (Part G); relates to taxes imposed on admission to race tracks and simulcast facilities; repeals certain provisions of law relating thereto (Part J); exempts from sales and use tax certain tangible personal property or services (Part M); increases the total dollar amount for vendors' gross receipts necessary for registration filing (Part N); imposes liability for real estate transfer taxes on responsible persons; prohibits grantors from passing real estate transfer tax to grantees; exempts certain organizations from the LLC disclosure requirement (Part O); relates to restrictions on certain cigarette and tobacco retail dealers whose registrations have been revoked or who have been forbidden from selling such products (Part P); relates to the timing and method for filing certain returns (Part Q); relates to determining liability for the collection of taxes on medallion taxicab trips and congestion surcharges (Part R); relates to penalties for failure of tax return preparers to register; requires tax return preparers to display certain documents (Part S); relates to electronic submission of consolidated real property transfer forms (Part U); relates to the STAR credit for mobile homes (Part V); relates to the administration of real property taxes and local laws or resolutions regarding such taxes (Part W); promotes the development of renewable energy projects, including solar or wind energy systems (Part X); provides for regulation of sports wagering and mobile sports wagering; defines terms; implements a tax on sports wagering gross revenue; requires reporting; provides for civil penalties for violations (Part Y); authorizes a request from the gaming commission for information related to interest in gaming facility licenses (Part Z); relates to the frequency at which certain lottery draw games may be offered (Part BB); relates to transferring powers and duties of the office of the gaming inspector general to the office of the state inspector general (Part CC); extends certain provisions of law related to simulcasting (Part DD); extends the alternative fuels tax exemptions for five years (Part EE); extends the farm workforce retention credit (Part FF); extends the credit against income tax for persons or entities investing in low-income housing (Part GG); extends the musical and theatrical production tax credit; increases the aggregate cap on such credit (Part HH); extends the hire a vet tax credit (Part II); extends the tax credits under the economic transformation and facility redevelopment program (Part JJ); requires the implementation of the secure choice savings program by December 31, 2021 (Part KK); modifies certain racing support payments (Part LL); exempts breast pump replacement parts and certain supplies from sales and compensating use taxes (Part MM); relates to applying work-location based tax credits to remote work performed during COVID-19 (Part NN); exempts certain tax underpayments from interest accumulation (Part OO); enacts the restaurant return-to-work tax credit (Subpart A); enacts the New York city musical and theatrical production tax credit; creates the New York state council on the arts cultural program fund (Subpart B)(Part PP); relates to modifying the minimum amount of personal income and corporate tax overpayment by an individual in which interest can be allowed or paid (Part QQ); provides a modification reducing federal adjusted gross income by the amount of the COVID-19 family death benefit paid pursuant to the metropolitan transportation authority program established in 2020 for purposes of determining New York state taxable income (Part RR); extends sales tax exemption for certain food and drink vending machines (Part SS); enacts the environmental bond act of 2022 "restore mother nature"; authorizes state debt not exceeding $3,000,000,000 for making environmental improvements that preserve, enhance, and restore New York's natural resources and reduce the impact of climate change (Part TT); implements the environmental bond act of 2022 "restore mother nature" for projects including flood risk reduction, open space land conservation and recreation, climate change mitigation, water quality improvement and resilient infrastructure, and environmental justice (Part UU); establishes the COVID-19 pandemic small business recovery grant program to provide assistance to small businesses and for-profit independent arts and cultural organizations who have experienced economic hardship during the COVID-19 pandemic (Part VV); subjects certain state lands in Orange county to real property taxation (Part WW); relates to increasing the maximum amount of grants and loans under the airport improvement and revitalization grant and loan program (Part XX); renames the Newkirk Avenue subway station on the IRT Nostrand Avenue line the "Newkirk Avenue -- Little Haiti station" (Part YY); relates to the minimum combined single limit amount of a bond or insurance policy for commuter vans (Part ZZ); enacts the "New York state professional policing act of 2021"; requires the inspector general and attorney general to notify the division of criminal justice services of any allegations or abuse by any police officer in a covered agency; requires the law enforcement agency accreditation council to create a mandatory certification process for agencies employing certain police officers; makes related provisions (Part BBB); relates to the rehabilitation of historic properties tax credit; provides that small projects of $2,500,000 or less are entitled to 150% of the amount of credit allowed the taxpayer under the internal revenue code (Part CCC); modifies inclusions and exclusions for certain definitions of income (Part DDD); creates the excluded worker fund to provide benefits for persons not eligible for funds under other state or federal programs or assistance and who has suffered a loss of income due to the COVID-19 pandemic (Part EEE); extends COLA provisions in the amount of one percent for the purposes of establishing rates of payments for the period beginning April 1, 2021 and ending March 31, 2022 (Part FFF); relates to aid and incentives for municipalities base level grants (Part GGG); relates to the computation of franchise tax on a business income base and capital base (Part HHH); establishes the real property tax relief credit (Part III); provides for the administration of certain funds and accounts related to the 2021-2022 budget; authorizes certain payments and transfers; relates to the issuance of bonds and notes; relates to personal income tax notes for 2022, lines of credit for the dormitory authority and the urban development corporation for 2022 and state-supported debt for 2022; makes related provisions (Part JJJ); authorizes the city of New York and the board of education of the city of New York to offer temporary retirement incentives (Subpart A); provides an age 55/25 years temporary retirement incentive for certain public employees of the city of New York and the board of education of the city of New York (Subpart B) (Part KKK); relates to the utilization of funds in the Catskill region and Capital region off-track betting corporation's capital acquisition funds (Part LLL); extends certain provisions relating to the operation and administration of the legislature (Part MMM); makes technical and clarifying changes relating to restricting the use of segregated confinement and the creation of alternative therapeutic and rehabilitative confinement options (Part NNN); relates to the taxes imposed on revenue from gaming facilities (Part OOO).
Spectrum: Committee Bill
Status: (Introduced - Dead) 2021-04-07 - substituted by s2509c [A03009 Detail]
Download: New_York-2021-A03009-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 3009--B IN ASSEMBLY January 20, 2021 ___________ 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 recommit- ted to said committee AN ACT to amend the tax law, in relation to extending the top state income tax rate (Part A); intentionally omitted (Part B); to amend the tax law and the state finance law, in relation to the imposition of a pass-through entity tax (Part C); to amend the economic development law and the tax law, in relation to child care services expenditures under the excelsior jobs program and the employer provided child care credit (Part D); to amend the tax law, in relation to reforming and simplifying various business tax provisions thereof; and to repeal certain provisions of such law related thereto (Part E); to amend the tax law, in relation to the empire state film production credit and the empire state film post production credit (Part F); to amend the tax law, in relation to wage filer reporting and reconciliation (Part G); intentionally omitted (Part H); intentionally omitted (Part I); to amend the tax law, in relation to imposing sales tax on such admis- sions to race tracks and simulcast facilities; and to repeal section 227, section 306, section 406, subparagraph (ii) of paragraph b of subdivision 4 of section 1008 and paragraph b of subdivision 5 of section 1009 of the racing, pari-mutuel, wagering and breeding law, relating to certain taxes on admissions to race tracks and simulcast facilities (Part J); to amend the tax law, in relation to the interest free period for certain sales tax refunds (Part K); intentionally omitted (Part L); to amend the tax law, in relation to exempting from sales and use tax certain tangible personal property or services (Part M); to amend the tax law, in relation to increasing the total dollar amount for vendors' gross receipts necessary for registration filing (Part N); to amend the tax law,in relation to imposing liability for real estate transfer taxes on responsible persons, prohibiting gran- tors from passing real estate transfer tax to grantees, and exempting certain organizations from the LLC disclosure requirement (Part O); to amend the tax law, in relation to restrictions on certain retail deal- ers whose registrations have been revoked or who have been forbidden EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD12574-03-1A. 3009--B 2 from selling cigarettes or tobacco products (Part P); to amend the tax law, in relation to the timing and method for filing certain returns (Part Q); to amend the tax law, in relation to determining liability for the collection of taxes on medallion taxicab trips and congestion surcharges (Part R); to amend the tax law, in relation to increasing tax return preparer penalties for failure to register and requiring the display of certain documents by tax return preparers (Part S); intentionally omitted (Part T); intentionally omitted (Part U); inten- tionally omitted (Subpart A); intentionally omitted (Subpart B); intentionally omitted (Subpart C); intentionally omitted (Subpart D); and to amend the real property law and the real property tax law, in relation to exemptions for manufactured home park owners or operators and mobile home owners; and to repeal certain provisions relating thereto (Subpart E)(Part V); intentionally omitted (Part W); inten- tionally omitted (Part X); to amend the racing, pari-mutuel wagering and breeding law, in relation to regulation of sports betting (Part Y); intentionally omitted (Part Z); intentionally omitted (Part AA); to amend the tax law, in relation to restrictions on certain lottery draw game offerings; and providing for the repeal of such provisions upon the expiration thereof (Part BB); to amend the racing, pari-mutu- el wagering and breeding law, in relation to the office of the gaming inspector general; and to repeal certain provisions of such law relat- ing thereto (Part CC); to amend the racing, pari-mutuel wagering and breeding law, in relation to licenses for simulcast facilities, sums relating to track simulcast, simulcast of out-of-state thoroughbred races, simulcasting of races run by out-of-state harness tracks and distributions of wagers; to amend chapter 281 of the laws of 1994 amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting and to amend chapter 346 of the laws of 1990 amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting and the imposition of certain taxes, in relation to extending certain provisions thereof; and to amend the racing, pari-mutuel wagering and breeding law, in relation to extending certain provisions thereof (Part DD); to amend chapter 109 of the laws of 2006 amending the tax law and other laws relating to providing exemptions, reimbursements and credits from various taxes for certain alternative fuels, in relation to extending the alterna- tive fuels tax exemptions for five years (Part EE); to amend the tax law and chapter 60 of the laws of 2016 amending the tax law relating to creating a farm workforce retention credit, in relation to extend- ing the provisions of such credit through tax year 2024 (Part FF); to amend the public housing law, in relation to extending the credit against income tax for persons or entities investing in low-income housing (Part GG); to amend chapter 59 of the laws of 2014, amending the tax law relating to a musical and theatrical production credit, in relation to the effectiveness thereof; and to amend the tax law in relation to increasing the aggregate cap on the amount of such credit (Part HH); to amend the tax law, in relation to extending hire a veteran credit for an additional year (Part II); to amend chapter 61 of the laws of 2011 amending the economic development law, the tax law and the real property tax law, relating to establishing the economic transformation and facility redevelopment program and providing tax benefits under that program and to amend the economic development law, in relation to extending the tax credits under the economic transfor- mation and facility redevelopment program (Part JJ); intentionally omitted (Part KK); intentionally omitted (Part LL); to amend the taxA. 3009--B 3 law, in relation to increasing the earned income tax credit (Part MM); to amend the tax law, in relation to extending the top state income tax rate by providing for an additional tax on capital gains (Part NN); to amend the tax law, in relation to business tax surcharges on certain corporations and providers of certain services; and providing for the repeal of such provisions upon expiration thereof (Part OO); to amend the tax law, in relation to reducing the burden on small businesses (Part PP); to amend the tax law, in relation to the reha- bilitation of historic properties tax credit (Part QQ); to amend the economic development law, in relation to defining community signif- icant projects and including such projects in the excelsior jobs program (Part RR); authorizing the commissioner of taxation and finance to waive employment location requirements for any business receiving a credit authorized under the tax law under certain circum- stances (Part SS); to amend the tax law, in relation to computing the tax on the capital base for certain New York corporations (Part TT); to amend the tax law, in relation to certain Medicaid management; and to repeal certain provisions of such law relating thereto (Part UU); to amend the real property law and the uniform commercial code, in relation to requiring the recording of mezzanine debt and preferred equity investments; to amend the tax law, in relation to including mezzanine debt in the mortgage recording tax; and to repeal certain provisions of the tax law relating thereto (Part VV); to amend the tax law, in relation to a supplemental surcharge on owners of certain non-primary residence properties in a city with a population of one million or more (Part WW); to amend the tax law, in relation to the computation of estate tax (Part XX); to amend the administrative code of the city of New York, in relation to establishing a tax credit for small businesses in certain sectors adversely impacted by the COVID-19 emergency (Part YY); to amend the tax law, in relation to exempting breast pump replacement parts and certain supplies from sales and compensating use taxes (Part ZZ); to amend the real property tax law, in relation to authorizing an exemption for class one capital improvements to residential buildings and certain new construction in a special assessing unit that is not a city (Part AAA); and to amend the agriculture and markets law, in relation to the Nourish New York program (Part BBB) 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 2021-2022 3 state fiscal year. Each component is wholly contained within a Part 4 identified as Parts A through BBB. The effective date for each partic- 5 ular provision contained within such Part is set forth in the last 6 section of such Part. Any provision in any section contained within a 7 Part, including the effective date of the Part, which makes a reference 8 to a section "of this act", when used in connection with that particular 9 component, shall be deemed to mean and refer to the corresponding 10 section of the Part in which it is found. Section three of this act sets 11 forth the general effective date of this act. 12 PART AA. 3009--B 4 1 Section 1. Clauses (iv), (v), (vi), (vii) and (viii) of subparagraph 2 (B) of paragraph 1 of subsection (a) of section 601 of the tax law, 3 clauses (iv), (v), (vi) and (vii) as amended by section 1 of part P of 4 chapter 59 of the laws of 2019 and clause (viii) as added by section 1 5 of part R of chapter 59 of the laws of 2017, are amended to read as 6 follows: 7 (iv) For taxable years beginning in two thousand twenty-one the 8 following rates shall apply: 9 If the New York taxable income is: The tax is: 10 Not over $17,150 4% of the New York taxable income 11 Over $17,150 but not over $23,600 $686 plus 4.5% of excess over 12 $17,150 13 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over 14 $23,600 15 Over $27,900 but not over $43,000 $1,202 plus 5.9% of excess over 16 $27,900 17 Over $43,000 but not over $161,550 $2,093 plus 5.97% of excess over 18 $43,000 19 Over $161,550 but not over $323,200 $9,170 plus 6.33% of excess over 20 $161,550 21 Over $323,200 but not over $19,403 plus 6.85% of excess 22 $2,155,350 over $323,200 23 Over $2,155,350 but not over $144,905 plus 9.85% of excess over 24 $5,000,000 $2,155,350 25 Over $5,000,000 but not over $425,103 plus 10.85% of excess over 26 $25,000,000 $5,000,000 27 Over $25,000,000 $2,595,103 plus 11.85% of excess over 28 $25,000,000 29 [Over $2,155,350 $144,905 plus 8.82% of excess over30$2,155,350] 31 (v) For taxable years beginning in two thousand twenty-two the follow- 32 ing rates shall apply: 33 If the New York taxable income is: The tax is: 34 Not over $17,150 4% of the New York taxable income 35 Over $17,150 but not over $23,600 $686 plus 4.5% of excess over 36 $17,150 37 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over 38 $23,600 39 Over $27,900 but not over $161,550 $1,202 plus 5.85% of excess over 40 $27,900 41 Over $161,550 but not over $323,200 $9,021 plus 6.25% of excess over 42 $161,550 43 Over $323,200 but not over $19,124 plus 44 $2,155,350 6.85% of excess over $323,200 45 Over $2,155,350 but not over $144,626 plus 9.85% of excess over 46 $5,000,000 $2,155,350 47 Over $5,000,000 but not over $424,824 plus 10.85% of excess over 48 $25,000,000 $5,000,000 49 Over $25,000,000 $2,594,824 plus 11.85% of excess over 50 $25,000,000 51 [Over $2,155,350 $144,626 plus 8.82% of excess over52$2,155,350] 53 (vi) For taxable years beginning in two thousand twenty-three the 54 following rates shall apply:A. 3009--B 5 1 If the New York taxable income is: The tax is: 2 Not over $17,150 4% of the New York taxable income 3 Over $17,150 but not over $23,600 $686 plus 4.5% of excess over 4 $17,150 5 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over 6 $23,600 7 Over $27,900 but not over $161,550 $1,202 plus 5.73% of excess over 8 $27,900 9 Over $161,550 but not over $323,200 $8,860 plus 6.17% of excess over 10 $161,550 11 Over $323,200 but not over $18,834 plus 6.85% of 12 $2,155,350 excess over $323,200 13 Over $2,155,350 but not over $144,336 plus 9.85% of excess over 14 $5,000,000 $2,155,350 15 Over $5,000,000 but not over $424,534 plus 10.85% of excess over 16 $25,000,000 $5,000,000 17 Over $25,000,000 $2,594,534 plus 11.85% of excess over 18 $25,000,000 19 [Over $2,155,350 $144,336 plus 8.82% of excess over20$2,155,350] 21 (vii) For taxable years beginning in two thousand twenty-four the 22 following rates shall apply: 23 If the New York taxable income is: The tax is: 24 Not over $17,150 4% of the New York taxable income 25 Over $17,150 but not over $23,600 $686 plus 4.5% of excess over 26 $17,150 27 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over 28 $23,600 29 Over $27,900 but not over $161,550 $1,202 plus 5.61% of excess over 30 $27,900 31 Over $161,550 but not over $323,200 $8,700 plus 6.09% of excess over 32 $161,550 33 Over $323,200 but not over $18,544 plus 6.85% of excess over 34 $2,155,350 $323,200 35 Over $2,155,350 but not over $144,046 plus 9.85% of excess over 36 $5,000,000 $2,155,350 37 Over $5,000,000 but not over $424,244 plus 10.85% of excess over 38 $25,000,000 $5,000,000 39 Over $25,000,000 $2,594,244 plus 11.85% of excess over 40 $25,000,000 41 [Over $2,155,350 $144,047 plus 8.82% of excess over42$2,155,350] 43 (viii) For taxable years beginning after two thousand twenty-four the 44 following rates shall apply: 45 If the New York taxable income is: The tax is: 46 Not over $17,150 4% of the New York taxable income 47 Over $17,150 but not over $23,600 $686 plus 4.5% of excess over 48 $17,150 49 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over 50 $23,600 51 Over $27,900 but not over $161,550 $1,202 plus 5.5% of excess over 52 $27,900 53 Over $161,550 but not over $323,200 $8,553 plus 6.00% of excess over 54 $161,550 55 Over $323,200 but not over $18,252 plus 6.85% of excess over 56 $2,155,350 $323,200A. 3009--B 6 1 Over $2,155,350 but not over $143,754 plus 9.85% of excess over 2 $5,000,000 $2,155,350 3 Over $5,000,000 but not over $423,952 plus 10.85% of excess over 4 $25,000,000 $5,000,000 5 Over $25,000,000 $2,593,952 plus 11.85% of excess over 6 $25,000,000 7 § 2. Clauses (iv), (v), (vi), (vii) and (viii) of subparagraph (B) of 8 paragraph 1 of subsection (b) of section 601 of the tax law, clauses 9 (iv), (v), (vi) and (vii) as amended by section 2 of part P of chapter 10 59 of the laws of 2019 and clause (viii) as added by section 2 of part R 11 of chapter 59 of the laws of 2017, are amended to read as follows: 12 (iv) For taxable years beginning in two thousand twenty-one the 13 following rates shall apply: 14 If the New York taxable income is: The tax is: 15 Not over $12,800 4% of the New York taxable income 16 Over $12,800 but not over $17,650 $512 plus 4.5% of excess over 17 $12,800 18 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over 19 $17,650 20 Over $20,900 but not over $32,200 $901 plus 5.9% of excess over 21 $20,900 22 Over $32,200 but not over $107,650 $1,568 plus 5.97% of excess over 23 $32,200 24 Over $107,650 but not over $269,300 $6,072 plus 6.33% of excess over 25 $107,650 26 Over $269,300 but not over $16,304 plus 6.85% of excess over 27 $1,616,450 $269,300 28 Over $1,616,450 but not over $108,584 plus 9.85% of excess over 29 $5,000,000 $1,616,450 30 Over $5,000,000 but not over $441,864 plus 10.85% of excess over 31 $25,000,000 $5,000,000 32 Over $25,000,000 $2,611,864 plus 11.85% of excess over 33 $25,000,000 34 [Over $1,616,450 $108,584 plus 8.82% of excess over35$1,616,450] 36 (v) For taxable years beginning in two thousand twenty-two the follow- 37 ing rates shall apply: 38 If the New York taxable income is: The tax is: 39 Not over $12,800 4% of the New York taxable income 40 Over $12,800 but not over $17,650 $512 plus 4.5% of excess over 41 $12,800 42 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over 43 $17,650 44 Over $20,900 but not over $107,650 $901 plus 5.85% of excess over 45 $20,900 46 Over $107,650 but not over $269,300 $5,976 plus 6.25% of excess over 47 $107,650 48 Over $269,300 but not over $16,079 plus 6.85% of excess 49 $1,616,450 over $269,300 50 Over $1,616,450 but not over $108,359 plus 9.85% of excess over 51 $5,000,000 $1,616,450 52 Over $5,000,000 but not over $441,638 plus 10.85% of excess over 53 $25,000,000 $5,000,000 54 Over $25,000,000 $2,611,638 plus 11.85% of excess over 55 $25,000,000 56 [Over $1,616,450 $108,359 plus 8.82% of excess overA. 3009--B 7 1$1,616,450] 2 (vi) For taxable years beginning in two thousand twenty-three the 3 following rates shall apply: 4 If the New York taxable income is: The tax is: 5 Not over $12,800 4% of the New York taxable income 6 Over $12,800 but not over $17,650 $512 plus 4.5% of excess over 7 $12,800 8 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over 9 $17,650 10 Over $20,900 but not over $107,650 $901 plus 5.73% of excess over 11 $20,900 12 Over $107,650 but not over $269,300 $5,872 plus 6.17% of excess over 13 $107,650 14 Over $269,300 but not over $15,845 plus 6.85% of excess 15 $1,616,450 over $269,300 16 Over $1,616,450 but not over $108,125 plus 9.85% of excess over 17 $5,000,000 $1,616,450 18 Over $5,000,000 but not over $441,404 plus 10.85% of excess over 19 $25,000,000 $5,000,000 20 Over $25,000,000 $2,611,404 plus 11.85% of excess over 21 $25,000,000 22 [Over $1,616,450 $108,125 plus 8.82% of excess over23$1,616,450] 24 (vii) For taxable years beginning in two thousand twenty-four the 25 following rates shall apply: 26 If the New York taxable income is: The tax is: 27 Not over $12,800 4% of the New York taxable income 28 Over $12,800 but not over $17,650 $512 plus 4.5% of excess over 29 $12,800 30 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over 31 $17,650 32 Over $20,900 but not over $107,650 $901 plus 5.61% of excess over 33 $20,900 34 Over $107,650 but not over $269,300 $5,768 plus 6.09% of excess over 35 $107,650 36 Over $269,300 but not over $15,612 plus 6.85% of excess 37 $1,616,450 over $269,300 38 Over $1,616,450 but not over $107,892 plus 9.85% of excess over 39 $5,000,000 $1,616,450 40 Over $5,000,000 but not over $441,171 plus 10.85% of excess over 41 $25,000,000 $5,000,000 42 Over $25,000,000 $2,611,171 plus 11.85% of excess over 43 $25,000,000 44 [Over $1,616,450 $107,892 plus 8.82% of excess over45$1,616,450] 46 (viii) For taxable years beginning after two thousand twenty-four the 47 following rates shall apply: 48 If the New York taxable income is: The tax is: 49 Not over $12,800 4% of the New York taxable income 50 Over $12,800 but not over $17,650 $512 plus 4.5% of excess over 51 $12,800 52 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over 53 $17,650 54 Over $20,900 but not over $107,650 $901 plus 5.5% of excess over 55 $20,900 56 Over $107,650 but not over $269,300 $5,672 plus 6.00% of excess overA. 3009--B 8 1 $107,650 2 Over $269,300 but not over $15,371 plus 6.85% of excess over 3 $1,616,450 $269,300 4 Over $1,616,450 but not over $107,651 plus 9.85% of excess over 5 $5,000,000 $1,616,450 6 Over $5,000,000 but not over $440,930 plus 10.85% of excess over 7 $25,000,000 $5,000,000 8 Over $25,000,000 $2,610,930 plus 11.85% of excess over 9 $25,000,000 10 § 3. Clauses (iv), (v), (vi), (vii) and (viii) of subparagraph (B) of 11 paragraph 1 of subsection (c) of section 601 of the tax law, clauses 12 (iv), (v), (vi) and (vii) as amended by section 3 of part P of chapter 13 59 of the laws of 2019 and clause (viii) as added by section 3 of part R 14 of chapter 59 of the laws of 2017, are amended to read as follows: 15 (iv) For taxable years beginning in two thousand twenty-one the 16 following rates shall apply: 17 If the New York taxable income is: The tax is: 18 Not over $8,500 4% of the New York taxable income 19 Over $8,500 but not over $11,700 $340 plus 4.5% of excess over 20 $8,500 21 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over 22 $11,700 23 Over $13,900 but not over $21,400 $600 plus 5.9% of excess over 24 $13,900 25 Over $21,400 but not over $80,650 $1,042 plus 5.97% of excess over 26 $21,400 27 Over $80,650 but not over $215,400 $4,579 plus 6.33% of excess over 28 $80,650 29 Over $215,400 but not over $13,109 plus 6.85% of excess 30 $1,077,550 over $215,400 31 Over $1,077,550 but not over $72,166 plus 9.85% of excess over 32 $5,000,000 $1,077,550 33 Over $5,000,000 but not over $437,739 plus 10.85% of excess over 34 $25,000,000 $5,000,000 35 Over $25,000,000 $2,607,739 plus 11.85% of excess over 36 $25,000,000 37 [Over $1,077,550 $72,166 plus 8.82% of excess over38$1,077,550] 39 (v) For taxable years beginning in two thousand twenty-two the follow- 40 ing rates shall apply: 41 If the New York taxable income is: The tax is: 42 Not over $8,500 4% of the New York taxable income 43 Over $8,500 but not over $11,700 $340 plus 4.5% of excess over 44 $8,500 45 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over 46 $11,700 47 Over $13,900 but not over $80,650 $600 plus 5.85% of excess over 48 $13,900 49 Over $80,650 but not over $215,400 $4,504 plus 6.25% of excess over 50 $80,650 51 Over $215,400 but not over $12,926 plus 6.85% of excess 52 $1,077,550 over $215,400 53 Over $1,077,550 but not over $7,983 plus 9.85% of excess over 54 $5,000,000 $1,077,550 55 Over $5,000,000 but not over $458,345 plus 10.85% of excess overA. 3009--B 9 1 $25,000,000 $5,000,000 2 Over $25,000,000 $2,628,345 plus 11.85% of excess over 3 $25,000,000 4 [Over $1,077,550 $71,984 plus 8.82% of excess over5$1,077,550] 6 (vi) For taxable years beginning in two thousand twenty-three the 7 following rates shall apply: 8 If the New York taxable income is: The tax is: 9 Not over $8,500 4% of the New York taxable income 10 Over $8,500 but not over $11,700 $340 plus 4.5% of excess over 11 $8,500 12 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over 13 $11,700 14 Over $13,900 but not over $80,650 $600 plus 5.73% of excess over 15 $13,900 16 Over $80,650 but not over $215,400 $4,424 plus 6.17% of excess over 17 $80,650 18 Over $215,400 but not over $12,738 plus 6.85% of excess 19 $1,077,550 over $215,400 20 Over $1,077,550 but not over $71,975 plus 9.85% of excess over 21 $5,000,000 $1,077,550 22 Over $5,000,000 but not over $458,157 plus 10.85% of excess over 23 $25,000,000 $5,000,000 24 Over $25,000,000 $2,628,157 plus 11.85% of excess over 25 $25,000,000 26 [Over $1,077,550 $71,796 plus 8.82% of excess over27$1,077,550] 28 (vii) For taxable years beginning in two thousand twenty-four the 29 following rates shall apply: 30 If the New York taxable income is: The tax is: 31 Not over $8,500 4% of the New York taxable income 32 Over $8,500 but not over $11,700 $340 plus 4.5% of excess over 33 $8,500 34 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over 35 $11,700 36 Over $13,900 but not over $80,650 $600 plus 5.61% of excess over 37 $13,900 38 Over $80,650 but not over $215,400 $4,344 plus 6.09% of excess over 39 $80,650 40 Over $215,400 but not over $12,550 plus 6.85% of excess 41 $1,077,550 over $215,400 42 Over $1,077,550 but not over $71,607 plus 9.85% of excess over 43 $5,000,000 $1,077,550 44 Over $5,000,000 but not over $457,969 plus 10.85% of excess over 45 $25,000,000 $5,000,000 46 Over $25,000,000 $2,627,969 plus 11.85% of excess over 47 $25,000,000 48 [Over $1,077,550 $71,608 plus 8.82% of excess over49$1,077,550] 50 (viii) For taxable years beginning after two thousand twenty-four the 51 following rates shall apply: 52 If the New York taxable income is: The tax is: 53 Not over $8,500 4% of the New York taxable income 54 Over $8,500 but not over $11,700 $340 plus 4.5% of excess over 55 $8,500 56 Over $11,700 but not over $13,900 $484 plus 5.25% of excess overA. 3009--B 10 1 $11,700 2 Over $13,900 but not over $80,650 $600 plus 5.50% of excess over 3 $13,900 4 Over $80,650 but not over $215,400 $4,271 plus 6.00% of excess over 5 $80,650 6 Over $215,400 but not over $12,356 plus 6.85% of excess over 7 $1,077,550 $215,400 8 Over $1,077,550 but not over $71,413 plus 9.85% of excess over 9 $5,000,000 $1,077,550 10 Over $5,000,000 but not over $457,775 plus 10.85% of excess over 11 $25,000,000 $5,000,000 12 Over $25,000,000 $2,627,775 plus 11.85% of excess over 13 $25,000,000 14 § 4. Subparagraphs (D) and (E) of paragraph 1 of subsection (d-1) of 15 section 601 of the tax law, subparagraph (D) as amended by section 4 of 16 part P of chapter 59 of the laws of 2019 and subparagraph (E) as added 17 by section 7 of part A of chapter 56 of the laws of 2011, are amended to 18 read as follows: 19 (D) The tax table benefit is the difference between (i) the amount of 20 taxable income set forth in the tax table in paragraph one of subsection 21 (a) of this section not subject to the 8.82 percent rate of tax for the 22 taxable year multiplied by such rate and (ii) the dollar denominated tax 23 for such amount of taxable income set forth in the tax table applicable 24 to the taxable year in paragraph one of subsection (a) of this section 25 less the sum of the tax table benefits in subparagraphs (A), (B) and (C) 26 of this paragraph. The fraction for this subparagraph is computed as 27 follows: the numerator is the lesser of fifty thousand dollars or the 28 excess of New York adjusted gross income for the taxable year over two 29 million dollars and the denominator is fifty thousand dollars. This 30 subparagraph shall apply only to taxable years beginning on or after 31 January first, two thousand twelve and before January first, two thou- 32 sand [twenty-five] twenty-one. 33 (E) The tax table benefit is the difference between (i) the amount of 34 taxable income set forth in the tax table in paragraph one of subsection 35 (a) of this section not subject to the 9.85 percent rate of tax for the 36 taxable year multiplied by such rate and (ii) the dollar denominated tax 37 for such amount of taxable income set forth in the tax table applicable 38 to the taxable year in paragraph one of subsection (a) of this section 39 less the sum of the tax table benefits in subparagraphs (A), (B), and 40 (C) of this paragraph. The fraction for this subparagraph is computed as 41 follows: the numerator is the lesser of fifty thousand dollars or excess 42 of New York adjusted gross income for the taxable year over two million 43 dollars and the denominator is fifty thousand dollars. This subparagraph 44 shall apply only to the taxable years beginning on or after January 45 first, two thousand twenty-one and thereafter. 46 (F) The tax table benefit is the difference between (i) the amount of 47 taxable income set forth in the tax table in paragraph one of subsection 48 (a) of this section not subject to the 10.85 percent rate of tax for the 49 taxable year multiplied by such rate and (ii) the dollar denominated tax 50 for such amount of taxable income set forth in the tax table applicable 51 to the taxable year in paragraph one of subsection (a) of this section 52 less the sum of the tax table benefits in subparagraphs (A), (B), (C) 53 and (E) of this paragraph. The fraction for this subparagraph is 54 computed as follows: the numerator is the lesser of fifty thousand 55 dollars or excess of New York adjusted gross income for the taxable year 56 over five million dollars and the denominator is fifty thousand dollars.A. 3009--B 11 1 This subparagraph shall apply only to the taxable years beginning on or 2 after January first, two thousand twenty-one and thereafter. 3 (G) The tax table benefit is the difference between (i) the amount of 4 taxable income set forth in the tax table in paragraph one of subsection 5 (a) of this section not subject to the 11.85 percent rate of tax for the 6 taxable year multiplied by such rate and (ii) the dollar denominated tax 7 for such amount of taxable income set forth in the tax table applicable 8 to the taxable year in paragraph one of subsection (a) of this section 9 less the sum of the tax table benefits in subparagraphs (A), (B), (C), 10 (E) and (F) of this paragraph. The fraction for this subparagraph is 11 computed as follows: the numerator is the lesser of fifty thousand 12 dollars or excess of New York adjusted gross income for the taxable year 13 over twenty-five million dollars and the denominator is fifty thousand 14 dollars. This subparagraph shall apply only to the taxable years begin- 15 ning on or after January first, two thousand twenty-one and thereafter. 16 (H) Provided, however, the total tax prior to the application of any 17 tax credits shall not exceed the highest rate of tax set forth in the 18 tax tables in subsection (a) of this section multiplied by the taxpay- 19 er's taxable income. 20 § 5. Subparagraphs (C) and (D) of paragraph 2 of subsection (d-1) of 21 section 601 of the tax law, subparagraph (C) as amended by section 5 of 22 part P of chapter 59 of the laws of 2019 and subparagraph (D) as added 23 by section 7 of part A of chapter 56 of the laws of 2011, are amended to 24 read as follows: 25 (C) The tax table benefit is the difference between (i) the amount of 26 taxable income set forth in the tax table in paragraph one of subsection 27 (b) of this section not subject to the 8.82 percent rate of tax for the 28 taxable year multiplied by such rate and (ii) the dollar denominated tax 29 for such amount of taxable income set forth in the tax table applicable 30 to the taxable year in paragraph one of subsection (b) of this section 31 less the sum of the tax table benefits in subparagraphs (A) and (B) of 32 this paragraph. The fraction for this subparagraph is computed as 33 follows: the numerator is the lesser of fifty thousand dollars or the 34 excess of New York adjusted gross income for the taxable year over one 35 million five hundred thousand dollars and the denominator is fifty thou- 36 sand dollars. This subparagraph shall apply only to taxable years begin- 37 ning on or after January first, two thousand twelve and before January 38 first, two thousand [twenty-five] twenty-one. 39 (D) The tax table benefit is the difference between (i) the amount of 40 taxable income set forth in the tax table in paragraph one of subsection 41 (a) of this section not subject to the 9.85 percent rate of tax for the 42 taxable year multiplied by such rate and (ii) the dollar denominated tax 43 for such amount of taxable income set forth in the tax table applicable 44 to the taxable year in paragraph one of subsection (a) of this section 45 less the sum of the tax table benefits in subparagraphs (A) and (B) 46 of this paragraph. The fraction for this subparagraph is computed as 47 follows: the numerator is the lesser of fifty thousand dollars or excess 48 of New York adjusted gross income for the taxable year over one million 49 five hundred thousand dollars and the denominator is fifty thousand 50 dollars. This subparagraph shall apply only to the taxable years 51 beginning on or after January first, two thousand twenty-one and there- 52 after. 53 (E) The tax table benefit is the difference between (i) the amount of 54 taxable income set forth in the tax table in paragraph one of subsection 55 (a) of this section not subject to the 10.85 percent rate of tax for the 56 taxable year multiplied by such rate and (ii) the dollar denominated taxA. 3009--B 12 1 for such amount of taxable income set forth in the tax table applicable 2 to the taxable year in paragraph one of subsection (a) of this section 3 less the sum of the tax table benefits in subparagraphs (A), (B) and (D) 4 of this paragraph. The fraction for this subparagraph is computed as 5 follows: the numerator is the lesser of fifty thousand dollars or 6 excess of New York adjusted gross income for the taxable year over five 7 million dollars and the denominator is fifty thousand dollars. This 8 subparagraph shall apply only to the taxable years beginning on or after 9 January first, two thousand twenty-one and thereafter. 10 (F) The tax table benefit is the difference between (i) the amount of 11 taxable income set forth in the tax table in paragraph one of subsection 12 (a) of this section not subject to the 11.85 percent rate of tax for the 13 taxable year multiplied by such rate and (ii) the dollar denominated tax 14 for such amount of taxable income set forth in the tax table applicable 15 to the taxable year in paragraph one of subsection (a) of this section 16 less the sum of the tax table benefits in subparagraphs (A), (B), (D) 17 and (E) of this paragraph. The fraction for this subparagraph is 18 computed as follows: the numerator is the lesser of fifty thousand 19 dollars or excess of New York adjusted gross income for the taxable year 20 over twenty-five million dollars and the denominator is fifty thousand 21 dollars. This subparagraph shall apply only to the taxable years begin- 22 ning on or after January first, two thousand twenty-one and thereafter. 23 (G) Provided, however, the total tax prior to the application of any 24 tax credits shall not exceed the highest rate of tax set forth in the 25 tax tables in subsection (b) of this section multiplied by the taxpay- 26 er's taxable income. 27 § 6. Subparagraphs (C) and (D) of paragraph 3 of subsection (d-1) of 28 section 601 of the tax law, subparagraph (C) as amended by section 6 of 29 part P of chapter 59 of the laws of 2019 and subparagraph (D) as added 30 by section 7 of part A of chapter 56 of the laws of 2011, are amended to 31 read as follows: 32 (C) The tax table benefit is the difference between (i) the amount of 33 taxable income set forth in the tax table in paragraph one of subsection 34 (c) of this section not subject to the 8.82 percent rate of tax for the 35 taxable year multiplied by such rate and (ii) the dollar denominated tax 36 for such amount of taxable income set forth in the tax table applicable 37 to the taxable year in paragraph one of subsection (c) of this section 38 less the sum of the tax table benefits in subparagraphs (A) and (B) of 39 this paragraph. The fraction for this subparagraph is computed as 40 follows: the numerator is the lesser of fifty thousand dollars or the 41 excess of New York adjusted gross income for the taxable year over one 42 million dollars and the denominator is fifty thousand dollars. This 43 subparagraph shall apply only to taxable years beginning on or after 44 January first, two thousand twelve and before January first, two thou- 45 sand [twenty-five] twenty-one. 46 (D) The tax table benefit is the difference between (i) the amount of 47 taxable income set forth in the tax table in paragraph one of subsection 48 (a) of this section not subject to the 9.85 percent rate of tax for the 49 taxable year multiplied by such rate and (ii) the dollar denominated tax 50 for such amount of taxable income set forth in the tax table applicable 51 to the taxable year in paragraph one of subsection (a) of this section 52 less the sum of the tax table benefits in subparagraphs (A) and (B) 53 of this paragraph. The fraction for this subparagraph is computed as 54 follows: the numerator is the lesser of fifty thousand dollars or excess 55 of New York adjusted gross income for the taxable year over one million 56 five hundred thousand dollars and the denominator is fifty thousandA. 3009--B 13 1 dollars. This subparagraph shall apply only to the taxable years 2 beginning on or after January first, two thousand twenty-one and there- 3 after. 4 (E) The tax table benefit is the difference between (i) the amount of 5 taxable income set forth in the tax table in paragraph one of subsection 6 (a) of this section not subject to the 10.85 percent rate of tax for the 7 taxable year multiplied by such rate and (ii) the dollar denominated tax 8 for such amount of taxable income set forth in the tax table applicable 9 to the taxable year in paragraph one of subsection (a) of this section 10 less the sum of the tax table benefits in subparagraphs (A), (B) and (D) 11 of this paragraph. The fraction for this subparagraph is computed as 12 follows: the numerator is the lesser of fifty thousand dollars or 13 excess of New York adjusted gross income for the taxable year over five 14 million dollars and the denominator is fifty thousand dollars. This 15 subparagraph shall apply only to the taxable years beginning on or after 16 January first, two thousand twenty-one and thereafter. 17 (F) The tax table benefit is the difference between (i) the amount of 18 taxable income set forth in the tax table in paragraph one of subsection 19 (a) of this section not subject to the 11.85 percent rate of tax for the 20 taxable year multiplied by such rate and (ii) the dollar denominated tax 21 for such amount of taxable income set forth in the tax table applicable 22 to the taxable year in paragraph one of subsection (a) of this section 23 less the sum of the tax table benefits in subparagraphs (A), (B), (D) 24 and (E) of this paragraph. The fraction for this subparagraph is 25 computed as follows: the numerator is the lesser of fifty thousand 26 dollars or excess of New York adjusted gross income for the taxable year 27 over twenty-five million dollars and the denominator is fifty thousand 28 dollars. This subparagraph shall apply only to the taxable years begin- 29 ning on or after January first, two thousand twenty-one and thereafter. 30 (G) Provided, however, the total tax prior to the application of any 31 tax credits shall not exceed the highest rate of tax set forth in the 32 tax tables in subsection (c) of this section multiplied by the taxpay- 33 er's taxable income. 34 § 7. Notwithstanding any provision of law to the contrary, the method 35 of determining the amount to be deducted and withheld from wages on 36 account of taxes imposed by or pursuant to the authority of article 22 37 of the tax law in connection with the implementation of the provisions 38 of this act shall be prescribed by regulations of the commissioner of 39 taxation and finance with due consideration to the effect such withhold- 40 ing tables and methods would have on the receipt and amount of revenue. 41 The commissioner of taxation and finance shall adjust such withholding 42 tables and methods in regard to taxable years beginning in 2021 and 43 after in such manner as to result, so far as practicable, in withholding 44 from an employee's wages an amount substantially equivalent to the tax 45 reasonably estimated to be due for such taxable years as a result of the 46 provisions of this act. Any such regulations to implement a change in 47 withholding tables and methods for tax year 2021 shall be adopted and 48 effective as soon as practicable and the commissioner of taxation and 49 finance may adopt such regulations on an emergency basis notwithstanding 50 anything to the contrary in section 202 of the state administrative 51 procedure act. 52 § 8. This act shall take effect immediately and shall apply to taxable 53 years beginning on and after January 1, 2021. 54 PART BA. 3009--B 14 1 Intentionally Omitted 2 PART C 3 Section 1. The tax law is amended by adding a new article 24-A to read 4 as follows: 5 ARTICLE 24-A 6 PASS-THROUGH ENTITY TAX 7 Section 860. Definitions. 8 861. Pass-through entity tax election. 9 862. Imposition and rate of tax. 10 863. Pass-through entity tax credit. 11 864. Payment of estimated tax. 12 865. Filing of return and payment of tax. 13 866. Accounting periods and methods. 14 867. Procedural provisions. 15 § 860. Definitions. For purposes of this article: 16 (a) Eligible partnership. Eligible partnership means any partnership 17 as provided for in section 7701(a)(2) of the Internal Revenue Code. An 18 eligible partnership includes any limited liability company treated as a 19 partnership for federal income tax purposes that otherwise meets the 20 requirements of this subdivision. 21 (b) Eligible S corporation. Eligible S corporation means any New York 22 S corporation as defined pursuant to this chapter. An eligible S corpo- 23 ration includes any limited liability company treated as an S corpo- 24 ration for federal income tax purposes that otherwise meets the require- 25 ments of this subdivision. 26 (c) Electing partnership. Electing partnership means any eligible 27 partnership that made a valid, timely election pursuant to section eight 28 hundred sixty-one of this article. 29 (d) Electing S corporation. Electing S corporation means any eligible 30 S corporation that made a valid, timely election pursuant to section 31 eight hundred sixty-one of this article. 32 (e) Taxpayer. Taxpayer means any electing partnership or electing S 33 corporation. 34 (f) Pass-through entity tax. Pass-through entity tax means the total 35 tax imposed by this article on electing partnerships and electing S 36 corporations. 37 (g) Pass-through adjusted net income (not less than zero). Pass- 38 through adjusted net income (not less than zero) means: 39 (1) In the case of an electing partnership, the sum of (i) federal 40 taxable income (not less than zero), its separately and nonseparately 41 computed items as described in section 702(a) of the Internal Revenue 42 Code, to the extent earned directly by such partnership; (ii) taxes paid 43 or incurred during the taxable year pursuant to this article by a part- 44 nership to the extent deducted in computing federal taxable income; 45 (iii) taxes substantially similar to the tax imposed pursuant to this 46 article paid or incurred during the taxable year to another state of the 47 United States, a political subdivision of such state, or the District of 48 Columbia to the extent deducted in computing federal taxable income; and 49 (iv) guaranteed payments paid by the partnership to its partners as 50 described in section 707(c) of the Internal Revenue Code. 51 (2) In the case of an electing S corporation, the sum of (i) federal 52 separately and nonseparately computed income (not less than zero), as 53 described in section 1366(a) of the Internal Revenue Code, whether 54 earned by such S corporation or by a partnership of which the S corpo-A. 3009--B 15 1 ration is a partner; (ii) taxes paid or incurred during the taxable year 2 pursuant to this article by an S corporation to the extent deducted in 3 computing federal ordinary income; and (iii) taxes substantially similar 4 to the tax imposed pursuant to this article paid or incurred during the 5 taxable year to another state of the United States, a political subdivi- 6 sion of such state, or the District of Columbia to the extent deducted 7 in computing federal taxable income. 8 (h) Partnership taxable income. Partnership taxable income of an 9 electing partnership means the sum of (1) the electing partnership's 10 pass-through adjusted net income (not less than zero), allocated to New 11 York State pursuant to subdivision (b) of section eight hundred sixty- 12 two of this article; and (2) the electing partnership's proportionate 13 share of any pass-through adjusted net income (not less than zero) from 14 a partnership of which it is a partner to the extent it was sourced to 15 New York by such partnership pursuant to the principles of article twen- 16 ty-two of this chapter. For purposes of determining partnership taxable 17 income, an entity that is a disregarded entity as described in section 18 301.7701-2(c)(2)(i) of internal revenue service regulations for federal 19 income tax purposes is also disregarded in determining the profit 20 percentage of the electing partnership that are owned by partners or 21 members who are subject to tax pursuant to article twenty-two of this 22 chapter or that are owned by partners or members who are residents of 23 New York State. 24 (i) S corporation taxable income. S corporation taxable income of an 25 electing S corporation means the electing S corporation's pass-through 26 adjusted net income (not less than zero) allocated to New York State 27 pursuant to subdivision (c) of section eight hundred sixty-two of this 28 article. For purposes of determining S corporation taxable income, an 29 entity that is a disregarded entity as described in regulation section 30 301.7701-2(c)(2)(i) for federal income tax purposes is also disregarded 31 in determining the profit percentage of the electing S corporation that 32 are owned by shareholders who are subject to tax pursuant to article 33 twenty-two of this chapter or that are owned by shareholders who are 34 residents of New York State pursuant to the provisions of article twen- 35 ty-two of this chapter. 36 § 861. Pass-through entity tax election. (a) Any eligible partnership 37 or eligible S corporation doing business within this state shall be 38 allowed to make an annual election to be taxed pursuant to this article. 39 (b) In order to be effective, the annual election must be made (1) if 40 the entity is an S corporation, by any officer, manager or shareholder 41 of the S corporation who is authorized under the law of the state where 42 the corporation is incorporated or under the S corporation's organiza- 43 tional documents to make the election and who represents to having such 44 authorization under penalty of perjury; or (2) if the entity is not an S 45 corporation, by any member, partner, owner, or other individual with 46 authority to bind the entity or sign returns pursuant to section six 47 hundred fifty-three of this chapter. 48 (c) The annual election must be made in such manner as the commission- 49 er may prescribe by regulation. An election under this subsection may 50 be effective for the eligible partnership or eligible S corporation for 51 the taxable year for which the election is made. An election under 52 subsection (a) of this section may be made at any time during the 53 preceding taxable year of such entity or at any time during the taxable 54 year of such entity and on or before the fifteenth day of the third 55 month of such taxable year. If an election under subsection (a) of this 56 section is made for any taxable year of such entity and such election isA. 3009--B 16 1 made after the fifteenth day of the third month of such taxable year and 2 on or before the fifteenth day of the third month of the following taxa- 3 ble year, such election shall be treated as made for the following taxa- 4 ble year. Provided, however, in a tax year beginning on or after Janu- 5 ary first, two thousand twenty-one but before June fifteenth, two 6 thousand twenty-one, the pass through entity may make the election at 7 any time prior to June fifteenth, two thousand twenty-one. 8 (d) (1) Termination of election. An election pursuant to this section 9 shall be terminated whenever, at any time during the taxable year, the 10 taxpayer ceases to be an eligible partnership or eligible S corporation. 11 (2) Effective date of termination. The termination of an election is 12 effective immediately upon the taxpayer ceasing to be an eligible part- 13 nership or eligible S corporation and no tax will be due pursuant to 14 this article for the taxable year. 15 (3) Abatement of penalties. If a termination occurs pursuant to this 16 subdivision solely because a partner, member or shareholder of an other- 17 wise eligible partnership or eligible S corporation died during the 18 taxable year and the successor to the decedent's interest in the part- 19 nership or S corporation is an entity that will result in the partner- 20 ship or the S corporation not being an eligible partnership or S corpo- 21 ration, no addition to tax will be imposed pursuant to subsection (c) of 22 section six hundred eighty-five of this chapter on the partners, members 23 and shareholders of such partnership or S corporation solely for under- 24 payment of estimated personal income tax as a result of the termination 25 of the election made pursuant to this article. 26 § 862. Imposition and rate of tax. (a) General. A tax is hereby 27 imposed for each taxable year on the partnership taxable income of every 28 electing partnership doing business within this state and on the S 29 corporation taxable income of every electing S corporation doing busi- 30 ness within this state. This tax shall be in addition to any other taxes 31 imposed and shall be at the rate of six and eighty-five hundredths 32 percent if the sum of an entity's partners, members or shareholders 33 share of distributive proceeds attributed to the pass through entity is 34 less than five million dollars, and eighty and eighty-two hundredths 35 percent if the sum of an entity's partners, members or shareholders 36 share of distributive proceeds attributed to the pass through entity is 37 five million dollars or more for each taxable year beginning on or after 38 January first, two thousand twenty-one. 39 (b) Allocation to New York by an electing partnership. In determining 40 the amount of partnership taxable income, the adjusted net income of the 41 electing partnership shall be allocated to this state pursuant to the 42 principles of article twenty-two of this chapter. 43 (c) Allocation to New York by an electing S corporation. In determin- 44 ing the amount of S corporation taxable income, the adjusted net income 45 of the electing S corporation shall be allocated to this state by multi- 46 plying the adjusted net income of the electing S corporation by the 47 business apportionment factor of the electing S corporation as calcu- 48 lated pursuant to section two hundred ten-A of this chapter. 49 § 863. Pass-through entity tax credit. A partner or member in an 50 electing partnership or a shareholder of an electing S corporation 51 subject to tax under this article which partner's, member's or share- 52 holder's federal taxable income includes separately and non-separately 53 computed items from the electing partnership as described in section 54 702(a) of the Internal Revenue Code or from the electing S corporation 55 as described in section 1366(a) of the Internal Revenue Code and is 56 subject to tax under article twenty-two of this chapter, shall beA. 3009--B 17 1 allowed a credit against the tax imposed pursuant to article twenty-two 2 of this chapter, computed pursuant to the provisions of subsection (kkk) 3 of section six hundred six of this chapter. 4 § 864. Payment of estimated tax. (a) Definition of estimated tax. 5 Estimated tax means the amount that an electing partnership or electing 6 S corporation estimates to be the tax imposed by section eight hundred 7 sixty-two of this article for the current taxable year. 8 (b) General. The estimated tax shall be paid as follows for an elect- 9 ing partnership and an electing S corporation that reports on a calendar 10 year basis: 11 (1) The estimated tax shall be paid in four equal installments on 12 March fifteenth, June fifteenth, September fifteenth and December 13 fifteenth. 14 (2) The amount of any required installment shall be twenty-five 15 percent of the required annual payment. 16 (3) The required annual payment is the lesser of: (A) ninety percent 17 of the tax shown on the return for the taxable year; or (B) one hundred 18 percent of the tax shown on the return of the electing partnership or 19 electing S corporation for the preceding taxable year. 20 (c) Application to short taxable year. This section shall apply to a 21 taxable year of less than twelve months in accordance with procedures 22 established by the commissioner. 23 (d) Fiscal year. This section shall apply to a taxable year other than 24 a calendar year by the substitution of the months of such fiscal year 25 for the corresponding months specified in this section. 26 (e) Installments paid in advance. An electing partnership or electing 27 S corporation may elect to pay any installment of its estimated tax 28 prior to the date prescribed for the payment thereof. 29 § 865. Filing of return and payment of tax. (a) General. On or before 30 the fifteenth day of the third month following the close of the taxable 31 year, each electing partnership and each electing S corporation must 32 file a return for the taxable year reporting the information required 33 pursuant to this article. 34 (b) Certification of eligibility. Every return filed pursuant to 35 subdivision (a) of this section shall include, in a format as prescribed 36 by the commissioner, a certification by an individual authorized to act 37 on behalf of the electing partnership or electing S corporation that the 38 taxpayer: 39 (1) made a timely, valid election to be subject to tax pursuant to 40 this article; 41 (2) was at all times during the taxable year eligible to make such an 42 election, unless such return includes a notification of termination as 43 provided for in subdivision (c) of this section; and 44 (3) that all statements contained therein are true. 45 (c) Notification of termination. If an election is terminated during 46 the taxable year pursuant to subdivision (e) of section eight hundred 47 sixty-one of this article, the electing partnership or electing S corpo- 48 ration is required to file a return pursuant to subdivision (a) of this 49 section notifying the commissioner of such termination. Such notifica- 50 tion will be considered a claim for a credit or refund of an overpayment 51 of pass-through entity tax of any estimated payments made pursuant to 52 this article for the taxable year containing the date of termination. 53 (d) Information on return. Each electing partnership and electing S 54 corporation shall report on such return: 55 (1) The balance of any tax shown on such return, not previously paid 56 as installments of estimated tax, shall be paid with such return;A. 3009--B 18 1 (2) Identifying information of all partners, members and/or sharehold- 2 ers eligible to receive a credit pursuant to section eight hundred sixty 3 three and such partner's, member's and/or shareholder's distributive or 4 pro rata share of the pass-through entity tax imposed on the electing 5 partnership or S corporation; and 6 (3) Any other information as required by the commissioner. 7 (e) Information provided to partners. Each electing partnership 8 subject to tax under this article shall report to each partner or member 9 its distributive share of: 10 (1) the partnership taxable income of the electing partnership; 11 (2) the pass-through entity tax imposed on the electing partnership; 12 and 13 (3) any other information as required by the commissioner. 14 (f) Information provided to shareholders. Each electing S corporation 15 subject to tax under this article shall report to each shareholder its 16 pro rata share of: 17 (1) the S corporation taxable income of the electing S corporation; 18 (2) the pass-through entity tax imposed on the electing S corporation; 19 and 20 (3) any other information as required by the commissioner. 21 § 866. Accounting periods and methods. (a) Accounting periods. An 22 electing partnership's or electing S corporation's taxable year pursuant 23 to this article shall be the same as the electing partnership's or 24 electing S corporation's taxable year for federal income tax purposes. 25 (b) Accounting methods. An electing partnership's or electing S corpo- 26 ration's method of accounting pursuant to this article shall be the same 27 as the electing partnership's or electing S corporation's method of 28 accounting for federal income tax purposes. 29 (c) Change of accounting period or method. (1) If an electing partner- 30 ship's or electing S corporation's taxable year or method of accounting 31 is changed for federal income tax purposes, the taxable year or method 32 of accounting for purposes of this article shall be similarly changed. 33 (2) If an electing partnership's or electing S corporation's method of 34 accounting is changed, any additional tax that results from adjustments 35 determined to be necessary solely by reason of such change shall not be 36 greater than if such adjustments were ratably allocated and included for 37 the taxable year of the change and the preceding taxable years, not in 38 excess of two, during which the entity used the method of accounting 39 from which the change is made. 40 § 867. Procedural provisions. (a) General. All provisions of article 41 twenty-two of this chapter will apply to the provisions of this article 42 in the same manner and with the same force and effect as if the language 43 of article twenty-two of this chapter had been incorporated in full into 44 this article and had been specifically adjusted for and expressly 45 referred to the tax imposed by this article, except to the extent that 46 any provision is either inconsistent with a provision of this article or 47 is not relevant to this article. Notwithstanding the preceding sentence, 48 no credit against tax in article twenty-two of this chapter can be used 49 to offset the tax due pursuant to this article. 50 (b) Cross Article filings. Notwithstanding any other provisions of 51 this article: 52 (1) The commissioner may require the filing of one return which, in 53 addition to the return provided for in section eight hundred sixty-five 54 of this article, may also include any of the returns required to be 55 filed by a taxpayer pursuant to the provisions of subsection (c) of 56 section six hundred fifty-eight or article nine-A of this chapter.A. 3009--B 19 1 (2) Where such return is required, the commissioner may also require 2 the payment with it of a single amount which shall equal the total of 3 the amounts (total taxes less any credits or refunds) that would have 4 been required to be paid with the returns pursuant to the provisions of 5 this article and the provisions of article twenty-two of this chapter or 6 the provisions of article nine-A of this chapter, whichever is applica- 7 ble. 8 (3) Notwithstanding any other law to the contrary, the commissioner 9 may require that all forms or returns pursuant to this article must be 10 filed electronically and all payments of tax must be paid electron- 11 ically. 12 (c) Liability for tax. An electing partnership or electing S corpo- 13 ration shall be liable for the tax due pursuant to this article. In 14 addition, every individual eligible to claim a credit pursuant to 15 subsection (kkk) of section six hundred six of this chapter because he 16 or she is a partner or member in an electing partnership or a sharehold- 17 er in an electing S corporation shall be jointly and severally liable 18 for the tax imposed pursuant to this article on such electing partner- 19 ship or electing S corporation. 20 (d) Deposit and disposition of revenue. All taxes, interest, penal- 21 ties, and fees collected or received by the commissioner pursuant to 22 this article shall be deposited and disposed of pursuant to the 23 provisions of section one hundred seventy-one-a of this chapter. 24 (e) Secrecy provision. All the provisions of paragraphs one and two of 25 subsection (e) of section six hundred ninety-seven of this chapter will 26 apply to the provisions of this article. Notwithstanding any provisions 27 of this chapter to the contrary, the commissioner may disclose informa- 28 tion and returns regarding the calculation and payment of the tax 29 imposed by this article and any credit calculated on taxes paid pursuant 30 to this article by an electing partnership or electing S corporation to 31 a partner, member or shareholder of such entity. 32 § 2. Section 606 of the tax law is amended by adding a new subsection 33 (kkk) to read as follows: 34 (kkk) Credit for pass-through entity tax. (1) A taxpayer partner or 35 member of an electing partnership and a taxpayer shareholder of an 36 electing S corporation subject to tax under article twenty-four-A of 37 this chapter shall be entitled to a credit against the tax imposed by 38 this article as provided in this subsection. For purposes of this 39 subsection, the terms "electing partnership," "electing S corporation," 40 and "pass-through entity tax" shall have the same meanings as used in 41 article twenty-four-A of this chapter. 42 (2) The credit shall be equal to the product of: 43 (i) the taxpayer's profit percentage of the electing partnership or 44 pro rata share of the electing S corporation; 45 (ii) ninety-two percent; and 46 (iii) the pass-through entity tax paid by the electing partnership or 47 S corporation for the taxable year. 48 (3) If a taxpayer is a partner, member or shareholder in multiple 49 electing partnerships and/or electing S corporations subject to tax 50 pursuant to article twenty-four-A of this chapter, the taxpayer's credit 51 shall be the sum of such credits calculated pursuant to paragraph two of 52 this subsection with regard to each entity in which the taxpayer has a 53 direct ownership interest. 54 (4) If the amount of the credit allowable pursuant to this subsection 55 for any taxable year exceeds the tax due for such year pursuant to thisA. 3009--B 20 1 article, the excess shall be treated as an overpayment, to be credited 2 or refunded, without interest. 3 § 3. Section 620 of the tax law, as amended by chapter 2 of the laws 4 of 1962, subsection (a) as amended and paragraph 3 of subsection (b) as 5 added by chapter 274 of the laws of 1987, and subsection (d) as added by 6 chapter 166 of the laws of 1991, is amended to read as follows: 7 § 620. Credit for income tax of another state. (a) General. A resident 8 shall be allowed a credit against the tax otherwise due under this arti- 9 cle for any income tax imposed on such individual for the taxable year 10 by another state of the United States, a political subdivision of such 11 state, the District of Columbia or a province of Canada, upon income 12 both derived therefrom and subject to tax under this article. The term 13 "income tax imposed" in the previous sentence shall not include the 14 portion of such tax (determined in the manner provided for in section 15 six hundred twenty-A) which is imposed upon the ordinary income portion 16 (or part thereof) of a lump sum distribution which is subject to the 17 separate tax imposed by section [six hundred one-C] six hundred three. 18 (b) Pass-through entity taxes. (1) A resident shall be allowed a cred- 19 it against the tax otherwise due pursuant to this article for any pass- 20 through entity tax substantially similar to the tax imposed pursuant to 21 article twenty-four-A of this chapter imposed on the income of a part- 22 nership or S corporation of which the resident is a partner, member or 23 shareholder for the taxable year by another state of the United States, 24 a political subdivision of such state, or the District of Columbia upon 25 income both derived therefrom and subject to tax under this article. 26 (2) Such credit shall be equal to the product of: 27 (A) the taxpayer's profit percentage of the electing partnership or 28 pro rata share of the electing S corporation; 29 (B) ninety-two percent; and 30 (C) the pass-through entity tax paid by the electing partnership or S 31 corporation to such other state, political subdivision of such other 32 state or the District of Columbia. 33 (3) However, such credit will be allowed on tax paid only if: 34 (A) the state of the United States, political subdivision of such 35 state, or the District of Columbia imposing such tax also imposes an 36 income tax substantially similar to the tax imposed under this article; 37 and 38 (B) in the case of taxes paid by an S corporation, such S corporation 39 was treated as a New York S corporation. 40 (c) Limitations. (1) The credit under this section shall not exceed 41 the percentage of the tax otherwise due under this article determined by 42 dividing the portion of the taxpayer's New York income subject to taxa- 43 tion by such other jurisdiction by the total amount of the taxpayer's 44 New York income. 45 (2) The credit under this section shall not reduce the tax otherwise 46 due under this article to an amount less than would have been due if the 47 income subject to taxation by such other jurisdiction were excluded from 48 the taxpayer's New York income. 49 (3) In the case of a taxpayer who elects to claim the foreign tax 50 credit for federal income tax purposes, the credit under this section 51 for income tax imposed by a province of Canada shall be allowed for that 52 portion of the provincial tax not claimed for federal purposes for the 53 taxable year or a preceding taxable year, provided however, to the 54 extent the provincial tax is claimed for federal purposes for a succeed- 55 ing taxable year, the credit under this section must be added back in 56 such succeeding taxable year. The provincial tax shall be deemed to beA. 3009--B 21 1 claimed last for federal income tax purposes and for purposes of this 2 subsection. 3 [(c)] (d) Definition. For purposes of this section New York income 4 means: 5 (1) the New York adjusted gross income of an individual, or 6 (2) the amount of the income of an estate or trust, determined as if 7 the estate or trust were an individual computing his New York adjusted 8 gross income under section six hundred twelve. 9 [(d) S corporation shareholders. In the case of a shareholder of an S10corporation, the term "income tax" in subsection (a) of this section11shall not include any such tax imposed upon or payable by the corpo-12ration, but shall include any such tax with respect to the income of the13corporation imposed upon or payable by the shareholder, without regard14to whether an election independent of the federal S election was15required to effect such imposition upon the shareholder.] 16 § 4. Subdivision 1 of section 171-a of the tax law, as amended by 17 section 3 of part XX of chapter 59 of the laws of 2019, is amended to 18 read as follows: 19 1. All taxes, interest, penalties and fees collected or received by 20 the commissioner or the commissioner's duly authorized agent under arti- 21 cles nine (except section one hundred eighty-two-a thereof and except as 22 otherwise provided in section two hundred five thereof), nine-A, 23 twelve-A (except as otherwise provided in section two hundred eighty- 24 four-d thereof), thirteen, thirteen-A (except as otherwise provided in 25 section three hundred twelve thereof), eighteen, nineteen, twenty 26 (except as otherwise provided in section four hundred eighty-two there- 27 of), twenty-B, twenty-D, twenty-one, twenty-two, twenty-four, twenty- 28 four-a, twenty-six, twenty-eight (except as otherwise provided in 29 section eleven hundred two or eleven hundred three thereof), 30 twenty-eight-A, twenty-nine-B, thirty-one (except as otherwise provided 31 in section fourteen hundred twenty-one thereof), thirty-three and thir- 32 ty-three-A of this chapter shall be deposited daily in one account with 33 such responsible banks, banking houses or trust companies as may be 34 designated by the comptroller, to the credit of the comptroller. Such an 35 account may be established in one or more of such depositories. Such 36 deposits shall be kept separate and apart from all other money in the 37 possession of the comptroller. The comptroller shall require adequate 38 security from all such depositories. Of the total revenue collected or 39 received under such articles of this chapter, the comptroller shall 40 retain in the comptroller's hands such amount as the commissioner may 41 determine to be necessary for refunds or reimbursements under such arti- 42 cles of this chapter out of which amount the comptroller shall pay any 43 refunds or reimbursements to which taxpayers shall be entitled under the 44 provisions of such articles of this chapter. The commissioner and the 45 comptroller shall maintain a system of accounts showing the amount of 46 revenue collected or received from each of the taxes imposed by such 47 articles. The comptroller, after reserving the amount to pay such 48 refunds or reimbursements, shall, on or before the tenth day of each 49 month, pay into the state treasury to the credit of the general fund all 50 revenue deposited under this section during the preceding calendar month 51 and remaining to the comptroller's credit on the last day of such 52 preceding month, (i) except that the comptroller shall pay to the state 53 department of social services that amount of overpayments of tax imposed 54 by article twenty-two of this chapter and the interest on such amount 55 which is certified to the comptroller by the commissioner as the amount 56 to be credited against past-due support pursuant to subdivision six ofA. 3009--B 22 1 section one hundred seventy-one-c of this article, (ii) and except that 2 the comptroller shall pay to the New York state higher education 3 services corporation and the state university of New York or the city 4 university of New York respectively that amount of overpayments of tax 5 imposed by article twenty-two of this chapter and the interest on such 6 amount which is certified to the comptroller by the commissioner as the 7 amount to be credited against the amount of defaults in repayment of 8 guaranteed student loans and state university loans or city university 9 loans pursuant to subdivision five of section one hundred seventy-one-d 10 and subdivision six of section one hundred seventy-one-e of this arti- 11 cle, (iii) and except further that, notwithstanding any law, the comp- 12 troller shall credit to the revenue arrearage account, pursuant to 13 section ninety-one-a of the state finance law, that amount of overpay- 14 ment of tax imposed by article nine, nine-A, twenty-two, thirty, thir- 15 ty-A, thirty-B or thirty-three of this chapter, and any interest there- 16 on, which is certified to the comptroller by the commissioner as the 17 amount to be credited against a past-due legally enforceable debt owed 18 to a state agency pursuant to paragraph (a) of subdivision six of 19 section one hundred seventy-one-f of this article, provided, however, he 20 shall credit to the special offset fiduciary account, pursuant to 21 section ninety-one-c of the state finance law, any such amount credita- 22 ble as a liability as set forth in paragraph (b) of subdivision six of 23 section one hundred seventy-one-f of this article, (iv) and except 24 further that the comptroller shall pay to the city of New York that 25 amount of overpayment of tax imposed by article nine, nine-A, twenty- 26 two, thirty, thirty-A, thirty-B or thirty-three of this chapter and any 27 interest thereon that is certified to the comptroller by the commission- 28 er as the amount to be credited against city of New York tax warrant 29 judgment debt pursuant to section one hundred seventy-one-l of this 30 article, (v) and except further that the comptroller shall pay to a 31 non-obligated spouse that amount of overpayment of tax imposed by arti- 32 cle twenty-two of this chapter and the interest on such amount which has 33 been credited pursuant to section one hundred seventy-one-c, one hundred 34 seventy-one-d, one hundred seventy-one-e, one hundred seventy-one-f or 35 one hundred seventy-one-l of this article and which is certified to the 36 comptroller by the commissioner as the amount due such non-obligated 37 spouse pursuant to paragraph six of subsection (b) of section six 38 hundred fifty-one of this chapter; and (vi) the comptroller shall deduct 39 a like amount which the comptroller shall pay into the treasury to the 40 credit of the general fund from amounts subsequently payable to the 41 department of social services, the state university of New York, the 42 city university of New York, or the higher education services corpo- 43 ration, or the revenue arrearage account or special offset fiduciary 44 account pursuant to section ninety-one-a or ninety-one-c of the state 45 finance law, as the case may be, whichever had been credited the amount 46 originally withheld from such overpayment, and (vii) with respect to 47 amounts originally withheld from such overpayment pursuant to section 48 one hundred seventy-one-l of this article and paid to the city of New 49 York, the comptroller shall collect a like amount from the city of New 50 York. 51 § 5. Subdivision 1 of section 171-a of the tax law, as amended by 52 section 4 of part XX of chapter 59 of the laws of 2019, is amended to 53 read as follows: 54 1. All taxes, interest, penalties and fees collected or received by 55 the commissioner or the commissioner's duly authorized agent under arti- 56 cles nine (except section one hundred eighty-two-a thereof and except asA. 3009--B 23 1 otherwise provided in section two hundred five thereof), nine-A, 2 twelve-A (except as otherwise provided in section two hundred eighty- 3 four-d thereof), thirteen, thirteen-A (except as otherwise provided in 4 section three hundred twelve thereof), eighteen, nineteen, twenty 5 (except as otherwise provided in section four hundred eighty-two there- 6 of), twenty-D, twenty-one, twenty-two, twenty-four, twenty-four-a, twen- 7 ty-six, twenty-eight (except as otherwise provided in section eleven 8 hundred two or eleven hundred three thereof), twenty-eight-A, twenty- 9 nine-B, thirty-one (except as otherwise provided in section fourteen 10 hundred twenty-one thereof), thirty-three and thirty-three-A of this 11 chapter shall be deposited daily in one account with such responsible 12 banks, banking houses or trust companies as may be designated by the 13 comptroller, to the credit of the comptroller. Such an account may be 14 established in one or more of such depositories. Such deposits shall be 15 kept separate and apart from all other money in the possession of the 16 comptroller. The comptroller shall require adequate security from all 17 such depositories. Of the total revenue collected or received under such 18 articles of this chapter, the comptroller shall retain in the comp- 19 troller's hands such amount as the commissioner may determine to be 20 necessary for refunds or reimbursements under such articles of this 21 chapter out of which amount the comptroller shall pay any refunds or 22 reimbursements to which taxpayers shall be entitled under the provisions 23 of such articles of this chapter. The commissioner and the comptroller 24 shall maintain a system of accounts showing the amount of revenue 25 collected or received from each of the taxes imposed by such articles. 26 The comptroller, after reserving the amount to pay such refunds or 27 reimbursements, shall, on or before the tenth day of each month, pay 28 into the state treasury to the credit of the general fund all revenue 29 deposited under this section during the preceding calendar month and 30 remaining to the comptroller's credit on the last day of such preceding 31 month, (i) except that the comptroller shall pay to the state department 32 of social services that amount of overpayments of tax imposed by article 33 twenty-two of this chapter and the interest on such amount which is 34 certified to the comptroller by the commissioner as the amount to be 35 credited against past-due support pursuant to subdivision six of section 36 one hundred seventy-one-c of this article, (ii) and except that the 37 comptroller shall pay to the New York state higher education services 38 corporation and the state university of New York or the city university 39 of New York respectively that amount of overpayments of tax imposed by 40 article twenty-two of this chapter and the interest on such amount which 41 is certified to the comptroller by the commissioner as the amount to be 42 credited against the amount of defaults in repayment of guaranteed 43 student loans and state university loans or city university loans pursu- 44 ant to subdivision five of section one hundred seventy-one-d and subdi- 45 vision six of section one hundred seventy-one-e of this article, (iii) 46 and except further that, notwithstanding any law, the comptroller shall 47 credit to the revenue arrearage account, pursuant to section 48 ninety-one-a of the state finance law, that amount of overpayment of tax 49 imposed by article nine, nine-A, twenty-two, thirty, thirty-A, thirty-B 50 or thirty-three of this chapter, and any interest thereon, which is 51 certified to the comptroller by the commissioner as the amount to be 52 credited against a past-due legally enforceable debt owed to a state 53 agency pursuant to paragraph (a) of subdivision six of section one 54 hundred seventy-one-f of this article, provided, however, he shall cred- 55 it to the special offset fiduciary account, pursuant to section ninety- 56 one-c of the state finance law, any such amount creditable as a liabil-A. 3009--B 24 1 ity as set forth in paragraph (b) of subdivision six of section one 2 hundred seventy-one-f of this article, (iv) and except further that the 3 comptroller shall pay to the city of New York that amount of overpayment 4 of tax imposed by article nine, nine-A, twenty-two, thirty, thirty-A, 5 thirty-B or thirty-three of this chapter and any interest thereon that 6 is certified to the comptroller by the commissioner as the amount to be 7 credited against city of New York tax warrant judgment debt pursuant to 8 section one hundred seventy-one-l of this article, (v) and except 9 further that the comptroller shall pay to a non-obligated spouse that 10 amount of overpayment of tax imposed by article twenty-two of this chap- 11 ter and the interest on such amount which has been credited pursuant to 12 section one hundred seventy-one-c, one hundred seventy-one-d, one 13 hundred seventy-one-e, one hundred seventy-one-f or one hundred seven- 14 ty-one-l of this article and which is certified to the comptroller by 15 the commissioner as the amount due such non-obligated spouse pursuant to 16 paragraph six of subsection (b) of section six hundred fifty-one of this 17 chapter; and (vi) the comptroller shall deduct a like amount which the 18 comptroller shall pay into the treasury to the credit of the general 19 fund from amounts subsequently payable to the department of social 20 services, the state university of New York, the city university of New 21 York, or the higher education services corporation, or the revenue 22 arrearage account or special offset fiduciary account pursuant to 23 section ninety-one-a or ninety-one-c of the state finance law, as the 24 case may be, whichever had been credited the amount originally withheld 25 from such overpayment, and (vii) with respect to amounts originally 26 withheld from such overpayment pursuant to section one hundred seventy- 27 one-l of this article and paid to the city of New York, the comptroller 28 shall collect a like amount from the city of New York. 29 § 6. Subdivisions 2 and 3 and paragraph (a) of subdivision 5 of 30 section 92-z of the state finance law, as amended by section 5 of part 31 MM of chapter 59 of the laws of 2018, are amended to read as follows: 32 2. Such fund shall consist of (a) fifty percent of receipts from the 33 imposition of personal income taxes pursuant to article twenty-two of 34 the tax law, less such amounts as the commissioner of taxation and 35 finance may determine to be necessary for refunds, [and] (b) fifty 36 percent of receipts from the imposition of employer compensation expense 37 taxes pursuant to article twenty-four of the tax law, less such amounts 38 as the commissioner of taxation and finance may determine to be neces- 39 sary for refunds, and (c) fifty percent of receipts from the imposition 40 of the pass-through entity taxes pursuant to article twenty-four-A of 41 the tax law, less such amounts as the commission of taxation and finance 42 may determine to be necessary for refunds. 43 3. (a) Beginning on the first day of each month, the comptroller shall 44 deposit all of the receipts collected pursuant to section six hundred 45 seventy-one of the tax law in the revenue bond tax fund until the amount 46 of monthly receipts anticipated to be deposited pursuant to the certif- 47 icate required in paragraph (b) of subdivision five of this section are 48 met. On or before the twelfth day of each month, the commissioner of 49 taxation and finance shall certify to the state comptroller the amounts 50 specified in paragraph (a) of subdivision two of this section relating 51 to the preceding month and, in addition, no later than March thirty- 52 first of each fiscal year the commissioner of taxation and finance shall 53 certify such amounts relating to the last month of such fiscal year. The 54 amounts so certified shall be deposited by the state comptroller in the 55 revenue bond tax fund.A. 3009--B 25 1 (b) Beginning on the first day of each month, the comptroller shall 2 deposit all of the receipts collected pursuant to section eight hundred 3 fifty-four of the tax law in the revenue bond tax fund until the amount 4 of monthly receipts anticipated to be deposited pursuant to the certif- 5 icate required in paragraph (b) of subdivision five of this section are 6 met. On or before the twelfth day of each month, the commissioner of 7 taxation and finance shall certify to the state comptroller the amounts 8 specified in paragraph (b) of subdivision two of this section relating 9 to the preceding month and, in addition, no later than March thirty- 10 first of each fiscal year the commissioner of taxation and finance shall 11 certify such amounts relating to the last month of such fiscal year. The 12 amounts so certified shall be deposited by the state comptroller in the 13 revenue bond tax fund. 14 (c) Beginning on the first day of each month, the comptroller shall 15 deposit all of the receipts collected pursuant to sections eight hundred 16 sixty-four and eight hundred sixty-five of the tax law in the revenue 17 bond tax fund until the amount of monthly receipts anticipated to be 18 deposited pursuant to the certificate required in paragraph (b) of 19 subdivision five of this section are met. On or before the twelfth day 20 of each month, the commissioner of taxation and finance shall certify to 21 the state comptroller the amounts specified in paragraph (c) of subdivi- 22 sion two of this section relating to the preceding month and, in addi- 23 tion, no later than March thirty-first of each fiscal year the commis- 24 sioner of taxation and finance shall certify such amounts relating to 25 the last month of such fiscal year. The amounts so certified shall be 26 deposited by the state comptroller in the revenue bond tax fund. 27 (a) The state comptroller shall from time to time, but in no event 28 later than the fifteenth day of each month (other than the last month of 29 the fiscal year) and no later than the thirty-first day of the last 30 month of each fiscal year, pay over and distribute to the credit of the 31 general fund of the state treasury all moneys in the revenue bond tax 32 fund, if any, in excess of the aggregate amount required to be set aside 33 for the payment of cash requirements pursuant to paragraph (b) of this 34 subdivision, provided that an appropriation has been made to pay all 35 amounts specified in any certificate or certificates delivered by the 36 director of the budget pursuant to paragraph (b) of this subdivision as 37 being required by each authorized issuer as such term is defined in 38 section sixty-eight-a of this chapter for the payment of cash require- 39 ments of such issuers for such fiscal year. Subject to the rights of 40 holders of debt of the state, in no event shall the state comptroller 41 pay over and distribute any moneys on deposit in the revenue bond tax 42 fund to any person other than an authorized issuer pursuant to such 43 certificate or certificates (i) unless and until the aggregate of all 44 cash requirements certified to the state comptroller as required by such 45 authorized issuers to be set aside pursuant to paragraph (b) of this 46 subdivision for such fiscal year shall have been appropriated to such 47 authorized issuers in accordance with the schedule specified in the 48 certificate or certificates filed by the director of the budget or (ii) 49 if, after having been so certified and appropriated, any payment 50 required to be made pursuant to paragraph (b) of this subdivision has 51 not been made to the authorized issuers which was required to have been 52 made pursuant to such certificate or certificates; provided, however, 53 that no person, including such authorized issuers or the holders of 54 revenue bonds, shall have any lien on moneys on deposit in the revenue 55 bond tax fund. Any agreement entered into pursuant to section sixty- 56 eight-c of this chapter related to any payment authorized by thisA. 3009--B 26 1 section shall be executory only to the extent of such revenues available 2 to the state in such fund. Notwithstanding subdivisions two and three of 3 this section, in the event the aggregate of all cash requirements certi- 4 fied to the state comptroller as required by such authorized issuers to 5 be set aside pursuant to paragraph (b) of this subdivision for the 6 fiscal year beginning on April first shall not have been appropriated to 7 such authorized issuers in accordance with the schedule specified in the 8 certificate or certificates filed by the director of the budget or, (ii) 9 if, having been so certified and appropriated, any payment required to 10 be made pursuant to paragraph (b) of this subdivision has not been made 11 pursuant to such certificate or certificates, all receipts collected 12 pursuant to section six hundred seventy-one of the tax law, [and] 13 section eight hundred fifty-four of the tax law, section eight hundred 14 sixty-four of the tax law, and section eight hundred sixty-five of the 15 tax law shall be deposited in the revenue bond tax fund until the great- 16 er of forty percent of the aggregate of the receipts from the imposition 17 of (A) the personal income tax imposed by article twenty-two of the tax 18 law, [and] (B) the employer compensation expense tax imposed by article 19 twenty-four of the tax law, and (C) the pass-through entity tax imposed 20 by article twenty-four-A of the tax law for the fiscal year beginning on 21 April first and as specified in the certificate or certificates filed by 22 the director of the budget pursuant to this paragraph or a total of 23 twelve billion dollars has been deposited in the revenue bond tax fund. 24 Notwithstanding any other provision of law, if the state has appropri- 25 ated and paid to the authorized issuers the amounts necessary for the 26 authorized issuers to meet their requirements for the current fiscal 27 year pursuant to the certificate or certificates submitted by the direc- 28 tor of the budget pursuant to paragraph (b) of this section, the state 29 comptroller shall, on the last day of each fiscal year, pay to the 30 general fund of the state all sums remaining in the revenue bond tax 31 fund on such date except such amounts as the director of the budget may 32 certify are needed to meet the cash requirements of authorized issuers 33 during the subsequent fiscal year. 34 § 7. Subdivision 5 of section 68-c of the state finance law, as 35 amended by section 6 of part MM of chapter 59 of the laws of 2018, is 36 amended to read as follows: 37 5. Nothing contained in this article shall be deemed to restrict the 38 right of the state to amend, repeal, modify or otherwise alter statutes 39 imposing or relating to the taxes imposed pursuant to article 40 twenty-two, [and] article twenty-four, and article twenty-four-A of the 41 tax law. The authorized issuers shall not include within any resolution, 42 contract or agreement with holders of the revenue bonds issued under 43 this article any provision which provides that a default occurs as a 44 result of the state exercising its right to amend, repeal, modify or 45 otherwise alter the taxes imposed pursuant to article twenty-two, [and] 46 article twenty-four, and article twenty-four-A of the tax law. 47 § 8. This act shall take effect immediately and shall apply to all 48 taxable years beginning on or after January 1, 2021; provided, however, 49 that the amendments to subdivision 1 of section 171-a of the tax law 50 made by section four of this act shall not affect the expiration of such 51 subdivision and shall expire therewith, when upon such date the 52 provisions of section five of this act shall take effect. 53 PART DA. 3009--B 27 1 Section 1. Section 352 of the economic development law is amended by 2 adding two new subdivisions 5-a and 13-a to read as follows: 3 5-a. "Child care services" means those services undertaken or spon- 4 sored by a participant in this program meeting the requirements of 5 "child day care" as defined in paragraph (a) of subdivision one of 6 section three hundred ninety of the social services law or any child 7 care services in the city of New York whereby a permit to operate such 8 child care services is required pursuant to the health code of the city 9 of New York. 10 13-a. "Net new child care services expenditures" means the calculation 11 of new, annual participant expenditures on child care services whether 12 internal or provided by a third party (including coverage for full or 13 partial discount of employee rates), minus any revenues received by the 14 participant through a third-party operator (i.e. rent paid to the 15 participant by the child care provider) or employees and may be further 16 defined by the commissioner in regulations. For the purposes of this 17 definition, expenditures for child care services that a participant has 18 incurred prior to admission to this program shall not be eligible for 19 the credit. 20 § 2. Paragraphs (k) and (l) of subdivision 1 of section 353 of the 21 economic development law, as amended by section 2 of part L of chapter 22 59 of the laws of 2020, are amended and a new paragraph (m) is added to 23 read as follows: 24 (k) as a life sciences company; [or] 25 (l) as a company operating in one of the industries listed in para- 26 graphs (b) through (e) of this subdivision and engaging in a green 27 project as defined in section three hundred fifty-two of this 28 article[.]; or 29 (m) as an employer operating or sponsoring child care services to its 30 employees as defined in section three hundred fifty-two of this article. 31 § 2-a. Subdivision 3 of section 354 of the economic development law, 32 as amended by section 3 of part G of chapter 61 of the laws of 2011, is 33 amended to read as follows: 34 3. (i) After reviewing a business enterprise's completed application 35 and determining that the business enterprise will meet the conditions 36 set forth in subdivisions three and four of section three hundred 37 fifty-three of this article, the department may admit the applicant into 38 the program and provide the applicant with a certificate of eligibility 39 and a preliminary schedule of benefits by year based on the applicant's 40 projections as set forth in its application. This preliminary schedule 41 of benefits delineates the maximum possible benefits an applicant may 42 receive. 43 (ii) Notwithstanding paragraph (i) of this subdivision, however, a 44 participant operating or sponsoring child care services to its employ- 45 ees as defined in paragraph (m) of subdivision one of section three 46 hundred fifty-three of this article that has been accepted into the 47 program and received the certificate of credit shall not be subject to 48 additional application, review, and approval process to the program 49 required in this section and section three hundred fifty-three of this 50 article if such a participant is applying the tax credit for excelsior 51 investment tax credit on the basis of net new child care services 52 expenditures as defined in subdivision thirteen-a of section three 53 hundred fifty-two of this article. The commissioner shall issue the 54 certificate of tax credit as soon as practicable so that the participant 55 may claim the investment tax credit for child care service in the same 56 taxable year.A. 3009--B 28 1 § 3. Subdivisions 2 and 6 of section 355 of the economic development 2 law, subdivision 2 as amended by section 4 of part L of chapter 59 of 3 the laws of 2020 and subdivision 6 as amended by section 4 of part K of 4 chapter 59 of the laws of 2015, are amended and a new subdivision 2-a is 5 added to read as follows: 6 2. Excelsior investment tax credit component. A participant in the 7 excelsior jobs program shall be eligible to claim a credit on qualified 8 investments. In a project that is not a green project, the credit shall 9 be equal to two percent of the cost or other basis for federal income 10 tax purposes of the qualified investment. In a green project, the credit 11 shall be equal to five percent of the cost or other basis for federal 12 income tax purposes of the qualified investment. In a project for child 13 care services, the credit shall be equal to five percent of the cost or 14 other basis for federal income tax purposes of the qualified investment 15 in child care services. A participant may not claim both the excelsior 16 investment tax credit component and the investment tax credit set forth 17 in subdivision one of section two hundred ten-B, subsection (a) of 18 section six hundred six, the former subsection (i) of section fourteen 19 hundred fifty-six, or subdivision (q) of section fifteen hundred eleven 20 of the tax law for the same property in any taxable year, except that a 21 participant may claim both the excelsior investment tax credit component 22 and the investment tax credit for research and development property. In 23 addition, a taxpayer who or which is qualified to claim the excelsior 24 investment tax credit component and is also qualified to claim the 25 brownfield tangible property credit component under section twenty-one 26 of the tax law may claim either the excelsior investment tax credit 27 component or such tangible property credit component, but not both with 28 regard to a particular piece of property. A credit may not be claimed 29 until a business enterprise has received a certificate of tax credit, 30 provided that qualified investments made on or after the issuance of the 31 certificate of eligibility but before the issuance of the certificate of 32 tax credit to the business enterprise, may be claimed in the first taxa- 33 ble year for which the business enterprise is allowed to claim the cred- 34 it. Expenses incurred prior to the date the certificate of eligibility 35 is issued are not eligible to be included in the calculation of the 36 credit. 37 2-a. Excelsior child care services tax credit component. A participant 38 shall be eligible to claim a credit on its net new child care services 39 expenditures for its operation, sponsorship or direct financial support 40 of a child care services program. The credit shall be equal to six 41 percent of the net new child care services expenditures as defined in 42 this chapter. 43 6. Claim of tax credit. The business enterprise shall be allowed to 44 claim the credit as prescribed in section thirty-one of the tax law. No 45 costs used by an entertainment company as the basis for the allowance of 46 a tax credit described in this section shall be used by such enter- 47 tainment company to claim any other credit allowed pursuant to the tax 48 law. No costs or expenditures for child care services used by a partic- 49 ipant to claim the credit as prescribed in section forty-four of the tax 50 law shall be used for the allowance of a tax credit described in this 51 section. 52 § 4. Subdivision (a) of section 31 of the tax law is amended by adding 53 a new paragraph 2-a to read as follows: 54 (2-a) the excelsior child care services tax credit component;A. 3009--B 29 1 § 5. Subdivision (a) of section 44 of the tax law, as added by section 2 1 of part L of chapter 59 of the laws of 2019, is amended to read as 3 follows: 4 (a) General. A taxpayer subject to tax under article nine-A, twenty- 5 two, or thirty-three of this chapter shall be allowed a credit against 6 such tax in an amount equal to two hundred percent of the portion of the 7 credit that is allowed to the taxpayer under section 45F of the internal 8 revenue code that is attributable to (i) qualified child care expendi- 9 tures paid or incurred with respect to a qualified child care facility 10 with a situs in the state, and to (ii) qualified child care resource and 11 referral expenditures paid or incurred with respect to the taxpayer's 12 employees working in the state. The credit allowable under this subdivi- 13 sion for any taxable year shall not exceed [one hundred fifty] five 14 hundred thousand dollars. If the entity operating the qualified child 15 care facility is a partnership or a New York S corporation, then such 16 cap shall be applied at the entity level, so the aggregate credit 17 allowed to all the partners or shareholders of such entity in a taxable 18 year does not exceed [one hundred fifty] five hundred thousand dollars. 19 § 6. This act shall take effect immediately; provided, however, 20 section five of this act shall apply to taxable years beginning on or 21 after January 1, 2021. 22 PART E 23 Section 1. Paragraph (b) of subdivision 2 of section 184 of the tax 24 law, as added by chapter 485 of the laws of 1988, is amended to read as 25 follows: 26 (b) (1) A corporation classed as a "taxicab" or "omnibus", 27 (i) which is organized, incorporated or formed under the laws of any 28 other state, country or sovereignty, and 29 (ii) which neither owns nor leases property in this state in a corpo- 30 rate or organized capacity, nor 31 (iii) maintains an office in this state in a corporate or organized 32 capacity, but 33 (iv) which is doing business or employing capital in this state by 34 conducting at least one but fewer than twelve trips into this state 35 during the calendar year, shall [annually pay a tax equal to fifteen36dollars for each trip conducted into this state] not be taxed under the 37 provisions of this article. If the only property a corporation owns or 38 leases in this state is a vehicle or vehicles used to conduct trips, it 39 shall not be considered, for purposes of clause (ii) of this subpara- 40 graph, to be owning or leasing property in this state. 41 (2) [The commissioner of taxation and finance may prescribe such forms42as he may deem necessary to report such tax in a simplified manner.43(3)] For purposes of this subdivision, a corporation classed as a 44 "taxicab" or "omnibus" shall be considered to be conducting a trip into 45 New York state when one of its vehicles enters New York state and trans- 46 ports passengers to, from, or to and from a location in New York state. 47 A corporation shall not be considered to be conducting a trip into New 48 York state if its vehicle only makes incidental stops at locations in 49 the state while in transit from a location outside New York state to 50 another location outside New York state. The number of trips a corpo- 51 ration conducts into New York state shall be calculated by determining 52 the number of trips each vehicle owned, leased or operated by the corpo- 53 ration conducts into New York state and adding those numbers together.A. 3009--B 30 1 [(4) Provided, however, that the provisions of this paragraph shall2not apply to any corporation which does not file its franchise tax3report in a timely manner (determined with regard to any extension of4time for filing).] 5 § 2. Subdivision 1-A of section 208 of the tax law, as amended by 6 section 4 of part A of chapter 59 of the laws of 2014, is amended to 7 read as follows: 8 1-A. The term "New York S corporation" means, with respect to any 9 taxable year, a corporation subject to tax under this article [for which10an election is in effect pursuant to] and described in paragraph (i) or 11 (ii) of subsection (a) of section six hundred sixty of this chapter [for12such year], and any such year shall be denominated a "New York S year"[,13and such election shall be denominated a "New York S election"]. The 14 term "New York C corporation" means, with respect to any taxable year, a 15 corporation subject to tax under this article which is not a New York S 16 corporation, and any such year shall be denominated a "New York C year". 17 The term "termination year" means any taxable year of a corporation 18 during which the corporation's status as a New York S [election] corpo- 19 ration terminates on a day other than the first day of such year. The 20 portion of the taxable year ending before the first day for which such 21 termination is effective shall be denominated the "S short year", and 22 the portion of such year beginning on such first day shall be denomi- 23 nated the "C short year". The term "New York S termination year" means 24 any termination year which is [not] also an S termination year for 25 federal purposes. 26 § 3. Subdivision 1-B and subparagraph (ii) of the opening paragraph 27 and paragraph (k) of subdivision 9 of section 208 of the tax law are 28 REPEALED. 29 § 4. Subparagraph (A) and the opening paragraph of subparagraph (B) of 30 paragraph 5 of subdivision (a) of section 292 of the tax law, as added 31 by section 48 of part A of chapter 389 of the laws of 1997, are amended 32 to read as follows: 33 (A) In the case of a shareholder of an S corporation, 34 (i) [where the election provided for in] subject to subsection (a) of 35 section six hundred sixty of this chapter [is in effect with respect to36such corporation], there shall be added to federal unrelated business 37 taxable income an amount equal to the shareholder's pro rata share of 38 the corporation's reductions for taxes described in paragraphs two and 39 three of subsection (f) of section thirteen hundred sixty-six of the 40 internal revenue code, and 41 (ii) [where such election has not been made with respect to such42corporation, there shall be subtracted from federal unrelated business43taxable income any items of income of the corporation included therein,44and there shall be added to federal unrelated business taxable income45any items of loss or deduction included therein, and46(iii)] in the case of a New York S termination year, the amount of any 47 such items of S corporation income, loss, deduction and reductions for 48 taxes shall be adjusted in the manner provided in paragraph two or three 49 of subsection (s) of section six hundred twelve of this chapter. 50 In the case of a shareholder of a corporation which was, for any of 51 its taxable years beginning after nineteen hundred ninety-seven and 52 before two thousand twenty-two, a federal S corporation but a New York C 53 corporation: 54 § 5. Paragraph 18 of subsection (b) of section 612 of the tax law, as 55 amended by chapter 606 of the laws of 1984, subparagraph (A) as amendedA. 3009--B 31 1 by chapter 28 of the laws of 1987 and subparagraph (B) as amended by 2 chapter 190 of the laws of 1990, is amended to read as follows: 3 (18) In the case of a shareholder of an S corporation as described in 4 subsection (a) of section six hundred sixty 5 (A) [where the election provided for in subsection (a) of section six6hundred sixty is in effect with respect to such corporation,] an amount 7 equal to his or her pro rata share of the corporation's reductions for 8 taxes described in paragraphs two and three of subsection (f) of section 9 thirteen hundred sixty-six of the internal revenue code, and 10 (B) in the case of a New York S termination year, subparagraph (A) of 11 this paragraph shall apply to the amount of reductions for taxes deter- 12 mined under subsection (s) of this section. 13 § 6. Paragraph 19 of subsection (b) of section 612 of the tax law is 14 REPEALED. 15 § 7. Paragraphs 20 and 21 of subsection (b) of section 612 of the tax 16 law, paragraph 20 as amended by chapter 606 of the laws of 1984 and 17 paragraph 21 as amended by section 70 of part A of chapter 59 of the 18 laws of 2014, are amended to read as follows: 19 (20) S corporation distributions to the extent not included in federal 20 gross income for the taxable year because of the application of section 21 thirteen hundred sixty-eight, subsection (e) of section thirteen hundred 22 seventy-one or subsection (c) of section thirteen hundred seventy-nine 23 of the internal revenue code which represent income not previously 24 subject to tax under this article because the election provided for in 25 subsection (a) of section six hundred sixty in effect for taxable years 26 beginning before January first, two thousand twenty-two had not been 27 made. Any such distribution treated in the manner described in paragraph 28 two of subsection (b) of section thirteen hundred sixty-eight of the 29 internal revenue code for federal income tax purposes shall be treated 30 as ordinary income for purposes of this article. 31 (21) In relation to the disposition of stock or indebtedness of a 32 corporation which elected under subchapter s of chapter one of the 33 internal revenue code for any taxable year of such corporation begin- 34 ning, in the case of a corporation taxable under article nine-A of this 35 chapter, after December thirty-first, nineteen hundred eighty and before 36 January first, two thousand twenty-two, the amount required to be added 37 to federal adjusted gross income pursuant to subsection (n) of this 38 section. 39 § 8. Paragraph 21 of subsection (c) of section 612 of the tax law, as 40 amended by section 70 of part A of chapter 59 of the laws of 2014, is 41 amended to read as follows: 42 (21) In relation to the disposition of stock or indebtedness of a 43 corporation which elected under subchapter s of chapter one of the 44 internal revenue code for any taxable year of such corporation begin- 45 ning, in the case of a corporation taxable under article nine-A of this 46 chapter, after December thirty-first, nineteen hundred eighty and before 47 January first, two thousand twenty-two, the amounts required to be 48 subtracted from federal adjusted gross income pursuant to subsection (n) 49 of this section. 50 § 9. Paragraph 22 of subsection (c) of section 612 of the tax law is 51 REPEALED. 52 § 10. Subsection (e) of section 612 of the tax law, as amended by 53 chapter 166 of the laws of 1991, paragraph 3 as added by chapter 760 of 54 the laws of 1992, is amended to read as follows: 55 (e) Modifications of partners and shareholders of S corporations. (1) 56 Partners and shareholders of S corporations [which are not New York CA. 3009--B 32 1corporations]. The amounts of modifications required to be made under 2 this section by a partner or by a shareholder of an S corporation 3 [(other than an S corporation which is a New York C corporation)], which 4 relate to partnership or S corporation items of income, gain, loss or 5 deduction shall be determined under section six hundred seventeen and, 6 in the case of a partner of a partnership doing an insurance business as 7 a member of the New York insurance exchange described in section six 8 thousand two hundred one of the insurance law, under section six hundred 9 seventeen-a of this article. 10 (2) [Shareholders of S corporations which are New York C corporations.11In the case of a shareholder of an S corporation which is a New York C12corporation, the modifications under this section which relate to the13corporation's items of income, loss and deduction shall not apply,14except for the modifications provided under paragraph nineteen of15subsection (b) and paragraph twenty-two of subsection (c) of this16section.17(3)] New York S termination year. In the case of a New York S termi- 18 nation year, the amounts of the modifications required under this 19 section which relate to the S corporation's items of income, loss, 20 deduction and reductions for taxes (as described in paragraphs two and 21 three of subsection (f) of section thirteen hundred sixty-six of the 22 internal revenue code) shall be adjusted in the same manner that the S 23 corporation's items are adjusted under subsection (s) of section six 24 hundred twelve. 25 § 11. Subsection (n) of section 612 of the tax law, as amended by 26 section 61 of part A of chapter 389 of the laws of 1997, is amended to 27 read as follows: 28 (n) Where gain or loss is recognized for federal income tax purposes 29 upon the disposition of stock or indebtedness of a corporation electing 30 under subchapter s of chapter one of the internal revenue code 31 (1) There shall be added to federal adjusted gross income the amount 32 of increase in basis with respect to such stock or indebtedness pursuant 33 to subsection (a) of section thirteen hundred seventy-six of the inter- 34 nal revenue code as such section was in effect for taxable years begin- 35 ning before January first, nineteen hundred eighty-three and subpara- 36 graphs (A) and (B) of paragraph one of subsection (a) of section 37 thirteen hundred sixty-seven of such code, for each taxable year of the 38 corporation beginning, in the case of a corporation taxable under arti- 39 cle nine-A of this chapter, after December thirty-first, nineteen 40 hundred eighty and before January first, two thousand twenty-two, and in 41 the case of a corporation taxable under former article thirty-two of 42 this chapter, after December thirty-first, nineteen hundred ninety-six 43 and before January first, two thousand fifteen, for which the election 44 provided for in subsection (a) of section six hundred sixty of this 45 article was not in effect, and 46 (2) There shall be subtracted from federal adjusted gross income 47 (A) the amount of reduction in basis with respect to such stock or 48 indebtedness pursuant to subsection (b) of section thirteen hundred 49 seventy-six of the internal revenue code as such section was in effect 50 for taxable years beginning before January first, nineteen hundred 51 eighty-three and subparagraphs (B) and (C) of paragraph two of 52 subsection (a) of section thirteen hundred sixty-seven of such code, for 53 each taxable year of the corporation beginning, in the case of a corpo- 54 ration taxable under article nine-A of this chapter, after December 55 thirty-first, nineteen hundred eighty and before January first, two 56 thousand twenty-two, and in the case of a corporation taxable underA. 3009--B 33 1 former article thirty-two of this chapter, after December thirty-first, 2 nineteen hundred ninety-six and before January first, two thousand 3 fifteen, for which the election provided for in subsection (a) of 4 section six hundred sixty of this article was not in effect and 5 (B) the amount of any modifications to federal gross income with 6 respect to such stock pursuant to paragraph twenty of subsection (b) of 7 this section. 8 § 12. Paragraph 6 of subsection (c) of section 615 of the tax law is 9 REPEALED. 10 § 13. Subsection (e) of section 615 of the tax law, as amended by 11 chapter 760 of the laws of 1992, is amended to read as follows: 12 (e) Modifications of partners and shareholders of S corporations. (1) 13 Partners and shareholders of S corporations [which are not New York C14corporations]. The amounts of modifications under subsection (c) or 15 under paragraph (2) or (3) of subsection (d) required to be made by a 16 partner or by a shareholder of an S corporation [(other than an S corpo-17ration which is a New York C corporation)], with respect to items of 18 deduction of a partnership or S corporation shall be determined under 19 section six hundred seventeen. 20 (2) [Shareholders of S corporations which are New York C corporations.21In the case of a shareholder of an S corporation which is a New York C22corporation, the modifications under this section which relate to the23corporation's items of deduction shall not apply, except for the modifi-24cation provided under paragraph six of subsection (c).25(3)] New York S termination year. In the case of a New York S termi- 26 nation year, the amounts of the modifications required under this 27 section which relate to the S corporation's items of deduction shall be 28 adjusted in the same manner that the S corporation's items are adjusted 29 under subsection (s) of section six hundred twelve. 30 § 14. Subsection (a) of section 617 of the tax law, as amended by 31 chapter 190 of the laws of 1990, is amended to read as follows: 32 (a) Partner's and shareholder's modifications. In determining New York 33 adjusted gross income and New York taxable income of a resident partner 34 or a resident shareholder of an S corporation [(other than an S corpo-35ration which is a New York C corporation)], any modification described 36 in subsections (b), (c) or (d) of section six hundred twelve, subsection 37 (c) of section six hundred fifteen or paragraphs (2) or (3) of 38 subsection (d) of such section, which relates to an item of partnership 39 or S corporation income, gain, loss or deduction shall be made in 40 accordance with the partner's distributive share or the shareholder's 41 pro rata share, for federal income tax purposes, of the item to which 42 the modification relates. Where a partner's distributive share or a 43 shareholder's pro rata share of any such item is not required to be 44 taken into account separately for federal income tax purposes, the part- 45 ner's or shareholder's share of such item shall be determined in accord- 46 ance with his or her share, for federal income tax purposes, of partner- 47 ship or S corporation taxable income or loss generally. In the case of a 48 New York S termination year, his or her pro rata share of any such item 49 shall be determined under subsection (s) of section six hundred twelve. 50 § 15. Subparagraph (E-1) of paragraph 1 of subsection (b) of section 51 631 of the tax law, as added by section 3 of part C of chapter 57 of the 52 laws of 2010, is amended to read as follows: 53 (E-1) in the case of an S corporation [for which an election is in54effect pursuant] subject to subsection (a) of section six hundred sixty 55 of this article that terminates its taxable status in New York, any 56 income or gain recognized on the receipt of payments from an installmentA. 3009--B 34 1 sale contract entered into when the S corporation was subject to tax in 2 New York, allocated in a manner consistent with the applicable methods 3 and rules for allocation under article nine-A or former article thirty- 4 two of this chapter, in the year that the S corporation sold its assets. 5 § 16. The section heading and paragraph 2 of subsection (a) of section 6 632 of the tax law, the section heading as amended by chapter 606 of the 7 laws of 1984, and paragraph 2 of subsection (a) as amended by section 71 8 of part A of chapter 59 of the laws of 2014, are amended to read as 9 follows: 10 Nonresident partners and [electing] shareholders of S corporations. 11 (2) In determining New York source income of a nonresident shareholder 12 of an S corporation [where the election provided for in] subject to 13 subsection (a) of section six hundred sixty of this article [is in14effect], there shall be included only the portion derived from or 15 connected with New York sources of such shareholder's pro rata share of 16 items of S corporation income, loss and deduction entering into his or 17 her federal adjusted gross income, increased by reductions for taxes 18 described in paragraphs two and three of subsection (f) of section thir- 19 teen hundred sixty-six of the internal revenue code, as such portion 20 shall be determined under regulations of the commissioner consistent 21 with the applicable methods and rules for allocation under article 22 nine-A of this chapter[, regardless of whether or not such item or23reduction is included in entire net income under article nine-A for the24tax year]. If a nonresident is a shareholder in an S corporation [where25the election provided for in] subject to subsection (a) of section six 26 hundred sixty of this article [is in effect], and the S corporation has 27 distributed an installment obligation under section 453(h)(1)(A) of the 28 Internal Revenue Code, then any gain recognized on the receipt of 29 payments from the installment obligation for federal income tax purposes 30 will be treated as New York source income allocated in a manner consist- 31 ent with the applicable methods and rules for allocation under article 32 nine-A of this chapter in the year that the assets were sold. In addi- 33 tion, if the shareholders of the S corporation have made an election 34 under section 338(h)(10) of the Internal Revenue Code, then any gain 35 recognized on the deemed asset sale for federal income tax purposes will 36 be treated as New York source income allocated in a manner consistent 37 with the applicable methods and rules for allocation under article 38 nine-A of this chapter in the year that the shareholder made the section 39 338(h)(10) election. For purposes of a section 338(h)(10) election, when 40 a nonresident shareholder exchanges his or her S corporation stock as 41 part of the deemed liquidation, any gain or loss recognized shall be 42 treated as the disposition of an intangible asset and will not increase 43 or offset any gain recognized on the deemed assets sale as a result of 44 the section 338(h)(10) election. 45 § 17. Subsection (a) of section 632-a of the tax law, as added by 46 section 1 of part K of chapter 60 of the laws of 2007, is amended to 47 read as follows: 48 (a) General. If (1) substantially all of the services of a personal 49 service corporation or S corporation are performed for or on behalf of 50 another corporation, partnership, or other entity and (2) the effect of 51 forming or availing of such personal service corporation or S corpo- 52 ration is the avoidance or evasion of New York income tax by reducing 53 the income of, or in the case of a nonresident, reducing the New York 54 source income of, or securing the benefit of any expense, deduction, 55 credit, exclusion, or other allowance for, any employee-owner which 56 would not otherwise be available, then the commissioner may allocate allA. 3009--B 35 1 income, deductions, credits, exclusions, and other allowances between 2 such personal service corporation or S corporation (even if such 3 personal service corporation or S corporation [is taxed under article4nine-A of this chapter or] is not subject to tax in this state) and its 5 employee-owners, provided such allocation is necessary to prevent avoid- 6 ance or evasion of New York state income tax or to clearly reflect the 7 source and the amount of the income of the personal service corporation 8 or S corporation or any of its employee-owners. 9 § 18. Paragraph 2 and subparagraph (A) of paragraph 4 of subsection 10 (c) of section 658 of the tax law, paragraph 2 as amended by chapter 190 11 of the laws of 1990, and subparagraph (A) of paragraph 4 as amended by 12 section 72 of part A of chapter 59 of the laws of 2014, are amended to 13 read as follows: 14 (2) S corporations. Every S corporation [for which the election15provided for in] subject to subsection (a) of section six hundred sixty 16 [is in effect] shall make a return for the taxable year setting forth 17 all items of income, loss and deduction and such other pertinent infor- 18 mation as the commissioner of taxation and finance may by regulations 19 and instructions prescribe. Such return shall be filed on or before the 20 fifteenth day of the third month following the close of each taxable 21 year. 22 (A) General. Every entity which is a partnership, other than a public- 23 ly traded partnership as defined in section 7704 of the federal Internal 24 Revenue Code, subchapter K limited liability company or an S corporation 25 [for which the election provided for in subsection (a) of section six26hundred sixty of this part is in effect], which has partners, members or 27 shareholders who are nonresident individuals, as defined under 28 subsection (b) of section six hundred five of this article, or C corpo- 29 rations, and which has any income derived from New York sources, deter- 30 mined in accordance with the applicable rules of section six hundred 31 thirty-one of this article as in the case of a nonresident individual, 32 shall pay estimated tax on such income on behalf of such partners, 33 members or shareholders in the manner and at the times prescribed by 34 subsection (c) of section six hundred eighty-five of this article. For 35 purposes of this paragraph, the term "estimated tax" shall mean a part- 36 ner's, member's or shareholder's distributive share or pro rata share of 37 the entity income derived from New York sources, multiplied by the high- 38 est rate of tax prescribed by section six hundred one of this article 39 for the taxable year of any partner, member or shareholder who is an 40 individual taxpayer, or paragraph (a) of subdivision one of section two 41 hundred ten of this chapter for the taxable year of any partner, member 42 or shareholder which is a C corporation, whether or not such C corpo- 43 ration is subject to tax under article nine, nine-A or thirty-three of 44 this chapter, and reduced by the distributive share or pro rata share of 45 any credits determined under section one hundred eighty-seven, one 46 hundred eighty-seven-a, six hundred six or fifteen hundred eleven of 47 this chapter, whichever is applicable, derived from the entity. 48 § 19. Section 660 of the tax law, as amended by chapter 606 of the 49 laws of 1984, subsections (a) and (h) as amended by section 73 of part A 50 of chapter 59 of the laws of 2014, paragraph 3 of subsection (b) as 51 amended by section 51, paragraphs 4 and 5 of subsection (b) as added and 52 paragraph 6 of subsection (b) as renumbered by section 52 and 53 subsections (e) and (f) as added and subsection (g) as relettered by 54 section 53 of part A of chapter 389 of the laws of 1997, subsection (d) 55 as added by chapter 760 of the laws of 1992, subsection (i) as added by 56 section 1 of part L of chapter 60 of the laws of 2007 and paragraph 1 ofA. 3009--B 36 1 subsection (i) as amended by section 39 of part T of chapter 59 of the 2 laws of 2015, is amended to read as follows: 3 § 660. [Election by shareholders of S corporations] Tax treatment of 4 federal S corporations. (a) [Election.] If a corporation is an eligible 5 S corporation, the shareholders of the corporation [may elect in the6manner set forth in subsection (b) of this section to] shall take into 7 account, to the extent provided for in this article (or in article thir- 8 teen of this chapter, in the case of a shareholder which is a taxpayer 9 under such article), the S corporation items of income, loss, deduction 10 and reductions for taxes described in paragraphs two and three of 11 subsection (f) of section thirteen hundred sixty-six of the internal 12 revenue code which are taken into account for federal income tax 13 purposes for the taxable year. [No election under this subsection shall14be effective unless all shareholders of the corporation have so15elected.] An eligible S corporation is (i) [an S] a corporation that has 16 elected to be an S corporation for federal income tax purposes pursuant 17 to section thirteen hundred sixty-two of the internal revenue code which 18 is subject to tax under article nine-A of this chapter, or (ii) [an S] a 19 corporation that has elected to be an S corporation for federal income 20 tax purposes pursuant to section thirteen hundred sixty-two of the 21 internal revenue code which is the parent of a qualified subchapter S 22 subsidiary as defined in subparagraph (B) of paragraph three of 23 subsection (b) of section thirteen hundred sixty-one of the internal 24 revenue code subject to tax under article nine-A[, where the sharehold-25ers of such parent corporation are entitled to make the election under26this subsection by reason of subparagraph three of paragraph (k) of27subdivision nine of section two hundred eight] of this chapter. 28 (b) [Requirements of election. An election under subsection (a) of29this section shall be made on such form and in such manner as the tax30commission may prescribe by regulation or instruction.31(1) When made. An election under subsection (a) of this section may be32made at any time during the preceding taxable year of the corporation or33at any time during the taxable year of the corporation and on or before34the fifteenth day of the third month of such taxable year.35(2) Certain elections made during first two and one-half months. If an36election made under subsection (a) of this section is made for any taxa-37ble year of the corporation during such year and on or before the38fifteenth day of the third month of such year, such election shall be39treated as made for the following taxable year if40(A) on one or more days in such taxable year before the day on which41the election was made the corporation did not meet the requirements of42subsection (b) of section thirteen hundred sixty-one of the internal43revenue code or44(B) one or more of the shareholders who held stock in the corporation45during such taxable year and before the election was made did not46consent to the election.47(3) Elections made after first two and one-half months. If an election48under subsection (a) of this section is made for any taxable year of the49corporation and such election is made after the fifteenth day of the50third month of such taxable year and on or before the fifteenth day of51the third month of the following taxable year, such election shall be52treated as made for the following taxable year.53(4) Taxable years of two and one-half months or less. For purposes of54this subsection, an election for a taxable year made not later than two55months and fifteen days after the first day of the taxable year shall be56treated as timely made during such year.A. 3009--B 37 1(5) Authority to treat late elections, etc., as timely. If (A) an2election under subsection (a) of this section is made for any taxable3year (determined without regard to paragraph three of this subsection)4after the date prescribed by this subsection for making such election5for such taxable year, or if no such election is made for any taxable6year, and7(B) the commissioner determines that there was reasonable cause for8failure to timely make such election, then9(C) the commissioner may treat such an election as timely made for10such taxable year (and paragraph three of this subsection shall not11apply).12(6) Years for which effective. An election under subsection (a) of13this section shall be effective for the taxable year of the corporation14for which it is made and for all succeeding taxable years of the corpo-15ration until such election is terminated under subsection (c) of this16section.17(c)] Termination. An [election under] eligible S corporation shall 18 cease to be subject to subsection (a) of this section [shall cease to be19effective20(1)] on the day an election to be an S corporation ceases to be effec- 21 tive for federal income tax purposes pursuant to subsection (d) of 22 section thirteen hundred sixty-two of the internal revenue code[, or23(2) if shareholders holding more than one-half of the shares of stock24of the corporation on the day on which the revocation is made revoke25such election in the manner the tax commission may prescribe by regu-26lation,27(A) on the first day of the taxable year of the corporation, if the28revocation is made during such taxable year and on or before the29fifteenth day of the third month thereof, or30(B) on the first day of the following taxable year of the corporation,31if the revocation is made during the taxable year but after the32fifteenth day of the third month thereof, or33(C) on and after the date so specified, if the revocation specifies a34date for revocation which is on or after the day on which the revocation35is made, or36(3) if any person who was not a shareholder of the corporation on the37day on which the election is made becomes a shareholder in the corpo-38ration and affirmatively refuses to consent to such election in the39manner the tax commission may prescribe by regulation, on the day such40person becomes a shareholder]. 41 [(d)] (c) New York S termination year. In the case of a New York S 42 termination year, the amount of any item of S corporation income, loss 43 and deduction and reductions for taxes (as described in paragraphs two 44 and three of subsection (f) of section thirteen hundred sixty-six of the 45 internal revenue code) required to be taken account of under this arti- 46 cle shall be adjusted in the same manner that the S corporation's items 47 which are included in the shareholder's federal adjusted gross income 48 are adjusted under subsection (s) of section six hundred twelve. 49 [(e) Inadvertent invalid elections. If (1) an election under50subsection (a) of this section was not effective for the taxable year51for which made (determined without regard to paragraph two of subsection52(b) of this section) by reason of a failure to obtain shareholder53consents,54(2) the commissioner determines that the circumstances resulting in55such ineffectiveness were inadvertent,A. 3009--B 38 1(3) no later than a reasonable period of time after discovery of the2circumstances resulting in such ineffectiveness, steps were taken to3acquire the required shareholder consents, and4(4) the corporation, and each person who was a shareholder in the5corporation at any time during the period specified pursuant to this6subsection, agrees to make such adjustments (consistent with the treat-7ment of the corporation as a New York S corporation) as may be required8by the commissioner with respect to such period,9(5) then, notwithstanding the circumstances resulting in such ineffec-10tiveness, such corporation shall be treated as a New York S corporation11during the period specified by the commissioner.12(f)] (d) Qualified subchapter S subsidiaries. If an S corporation has 13 elected to treat its wholly owned subsidiary as a qualified subchapter S 14 subsidiary for federal income tax purposes under paragraph three of 15 subsection (b) of section thirteen hundred sixty-one of the internal 16 revenue code, such election shall be applicable for New York state tax 17 purposes and 18 (1) the assets, liabilities, income, deductions, property, payroll, 19 receipts, capital, credits, and all other tax attributes and elements of 20 economic activity of the subsidiary shall be deemed to be those of the 21 parent corporation, 22 (2) transactions between the parent corporation and the subsidiary, 23 including the payment of interest and dividends, shall not be taken into 24 account, and 25 (3) general executive officers of the subsidiary shall be deemed to be 26 general executive officers of the parent corporation. 27 (e) Validated federal elections. If [(1) an election under subsection28(a) of this section was made for a taxable year or years of a corpo-29ration, which years occur with or within the period for which] the 30 federal S election of [such] an eligible S corporation has been vali- 31 dated pursuant to the provisions of subsection (f) of section thirteen 32 hundred sixty-two of the internal revenue code, [and33(2) the corporation, and each person who was a shareholder in the34corporation at any time during such taxable year or years agrees to make35such adjustments (consistent with the treatment of the corporation as a36New York S corporation) as may be required by the commissioner with37respect to such year or years,38(3) then] such corporation shall be treated as [a New York] an eligi- 39 ble S corporation subject to subsection (a) of this section during 40 [such] the year or years for which such election has been validated. 41 [(g) Transitional rule. Any election made under this section (as in42effect for taxable years beginning before January first, nineteen43hundred eighty-three) shall be treated as an election made under44subsection (a) of this section.45(h) Cross reference. For definitions relating to S corporations, see46subdivision one-A of section two hundred eight of this chapter.47(i) Mandated New York S corporation election. (1) Notwithstanding the48provisions in subsection (a) of this section, in the case of an eligible49S corporation for which the election under subsection (a) of this50section is not in effect for the current taxable year, the shareholders51of an eligible S corporation are deemed to have made that election52effective for the eligible S corporation's entire current taxable year,53if the eligible S corporation's investment income for the current taxa-54ble year is more than fifty percent of its federal gross income for such55year. In determining whether an eligible S corporation is deemed to have56made that election, the income of a qualified subchapter S subsidiaryA. 3009--B 39 1owned directly or indirectly by the eligible S corporation shall be2included with the income of the eligible S corporation.3(2) For the purposes of this subsection, the term "eligible S corpo-4ration" has the same definition as in subsection (a) of this section.5(3) For the purposes of this subsection, the term "investment income"6means the sum of an eligible S corporation's gross income from interest,7dividends, royalties, annuities, rents and gains derived from dealings8in property, including the corporation's share of such items from a9partnership, estate or trust, to the extent such items would be includa-10ble in federal gross income for the taxable year.11(4) Estimated tax payments. When making estimated tax payments12required to be made under this chapter in the current tax year, the13eligible S corporation and its shareholders may rely on the eligible S14corporation's filing status for the prior year. If the eligible S corpo-15ration's filing status changes from the prior tax year the corporation16or the shareholders, as the case may be, which made the payments shall17be entitled to a refund of such estimated tax payments. No additions to18tax with respect to any required declarations or payments of estimated19tax imposed under this chapter shall be imposed on the corporation or20shareholders, whichever is the taxpayer for the current taxable year, if21the corporation or the shareholders file such declarations and make such22estimated tax payments by January fifteenth of the following calendar23year, regardless of whether the taxpayer's tax year is a calendar or a24fiscal year.] 25 § 20. Transition rules. Any prior net operating loss conversion 26 subtraction and net operating loss carryforward that otherwise would 27 have been allowed under subparagraphs (viii) and (ix), respectively, of 28 paragraph (a) of subdivision 1 of section 210 of the tax law for the 29 taxable years beginning on or after January 1, 2022 to any taxpayer that 30 was a New York C corporation for a taxable year beginning on or after 31 January 1, 2021 and before January 1, 2022, and that becomes a New York 32 S corporation for a taxable year beginning on or after January 1, 2022 33 as a result of the amendments made by this act, shall be held in abey- 34 ance and be available to such taxpayer if its election to be a federal S 35 corporation is terminated. Further, any credit carryforwards allowed to 36 such a taxpayer under section 210-B of the tax law shall be held in 37 abeyance and be available to such taxpayer if its election to be a 38 federal S corporation is terminated. However, the taxpayer's years as a 39 New York S corporation shall be counted for purposes of computing any 40 time period applicable to the allowance of the prior net operating loss 41 conversion subtraction or carryforward, the net operating loss 42 deduction, or any credit carryforward. 43 § 21. This act shall take effect immediately, provided, however, that 44 section one shall apply to taxable years beginning on or after January 45 1, 2021 and sections two through twenty shall apply to taxable years 46 beginning on or after January 1, 2022. 47 PART F 48 Section 1. Paragraph 5 of subdivision (a) of section 24 of the tax 49 law, as amended by section 5-a of part M of chapter 59 of the laws of 50 2020, is amended to read as follows: 51 (5) For the period two thousand fifteen through two thousand [twenty-52five] twenty-six, in addition to the amount of credit established in 53 paragraph two of this subdivision, a taxpayer shall be allowed a credit 54 equal to the product (or pro rata share of the product, in the case of aA. 3009--B 40 1 member of a partnership) of ten percent and the amount of wages or sala- 2 ries paid to individuals directly employed (excluding those employed as 3 writers, directors, music directors, producers and performers, including 4 background actors with no scripted lines) by a qualified film production 5 company or a qualified independent film production company for services 6 performed by those individuals in one of the counties specified in this 7 paragraph in connection with a qualified film with a minimum budget of 8 five hundred thousand dollars. For purposes of this additional credit, 9 the services must be performed in one or more of the following counties: 10 Albany, Allegany, Broome, Cattaraugus, Cayuga, Chautauqua, Chemung, 11 Chenango, Clinton, Columbia, Cortland, Delaware, Dutchess, Erie, Essex, 12 Franklin, Fulton, Genesee, Greene, Hamilton, Herkimer, Jefferson, Lewis, 13 Livingston, Madison, Monroe, Montgomery, Niagara, Oneida, Onondaga, 14 Ontario, Orange, Orleans, Oswego, Otsego, Putnam, Rensselaer, Saratoga, 15 Schenectady, Schoharie, Schuyler, Seneca, St. Lawrence, Steuben, Sulli- 16 van, Tioga, Tompkins, Ulster, Warren, Washington, Wayne, Wyoming, or 17 Yates. The aggregate amount of tax credits allowed pursuant to the 18 authority of this paragraph shall be five million dollars each year 19 during the period two thousand fifteen through two thousand [twenty-20five] twenty-six of the annual allocation made available to the program 21 pursuant to paragraph four of subdivision (e) of this section. Such 22 aggregate amount of credits shall be allocated by the governor's office 23 for motion picture and television development among taxpayers in order 24 of priority based upon the date of filing an application for allocation 25 of film production credit with such office. If the total amount of 26 allocated credits applied for under this paragraph in any year exceeds 27 the aggregate amount of tax credits allowed for such year under this 28 paragraph, such excess shall be treated as having been applied for on 29 the first day of the next year. If the total amount of allocated tax 30 credits applied for under this paragraph at the conclusion of any year 31 is less than five million dollars, the remainder shall be treated as 32 part of the annual allocation made available to the program pursuant to 33 paragraph four of subdivision (e) of this section. However, in no event 34 may the total of the credits allocated under this paragraph and the 35 credits allocated under paragraph five of subdivision (a) of section 36 thirty-one of this article exceed five million dollars in any year 37 during the period two thousand fifteen through two thousand [twenty-38five] twenty-six. 39 § 2. Paragraph 4 of subdivision (e) of section 24 of the tax law, as 40 amended by section 5-b of part M of chapter 59 of the laws of 2020, is 41 amended to read as follows: 42 (4) Additional pool 2 - The aggregate amount of tax credits allowed in 43 subdivision (a) of this section shall be increased by an additional four 44 hundred twenty million dollars in each year starting in two thousand ten 45 through two thousand [twenty-five] twenty-six provided however, seven 46 million dollars of the annual allocation shall be available for the 47 empire state film post production credit pursuant to section thirty-one 48 of this article in two thousand thirteen and two thousand fourteen, 49 twenty-five million dollars of the annual allocation shall be available 50 for the empire state film post production credit pursuant to section 51 thirty-one of this article in each year starting in two thousand fifteen 52 through two thousand [twenty-five] twenty-six and five million dollars 53 of the annual allocation shall be made available for the television 54 writers' and directors' fees and salaries credit pursuant to section 55 twenty-four-b of this article in each year starting in two thousand 56 twenty through two thousand [twenty-five] twenty-six. This amount shallA. 3009--B 41 1 be allocated by the governor's office for motion picture and television 2 development among taxpayers in accordance with subdivision (a) of this 3 section. If the commissioner of economic development determines that the 4 aggregate amount of tax credits available from additional pool 2 for the 5 empire state film production tax credit have been previously allocated, 6 and determines that the pending applications from eligible applicants 7 for the empire state film post production tax credit pursuant to section 8 thirty-one of this article is insufficient to utilize the balance of 9 unallocated empire state film post production tax credits from such 10 pool, the remainder, after such pending applications are considered, 11 shall be made available for allocation in the empire state film tax 12 credit pursuant to this section, subdivision twenty of section two 13 hundred ten-B and subsection (gg) of section six hundred six of this 14 chapter. Also, if the commissioner of economic development determines 15 that the aggregate amount of tax credits available from additional pool 16 2 for the empire state film post production tax credit have been previ- 17 ously allocated, and determines that the pending applications from 18 eligible applicants for the empire state film production tax credit 19 pursuant to this section is insufficient to utilize the balance of unal- 20 located film production tax credits from such pool, then all or part of 21 the remainder, after such pending applications are considered, shall be 22 made available for allocation for the empire state film post production 23 credit pursuant to this section, subdivision thirty-two of section two 24 hundred ten-B and subsection (qq) of section six hundred six of this 25 chapter. The governor's office for motion picture and television devel- 26 opment must notify taxpayers of their allocation year and include the 27 allocation year on the certificate of tax credit. Taxpayers eligible to 28 claim a credit must report the allocation year directly on their empire 29 state film production credit tax form for each year a credit is claimed 30 and include a copy of the certificate with their tax return. In the case 31 of a qualified film that receives funds from additional pool 2, no 32 empire state film production credit shall be claimed before the later of 33 the taxable year the production of the qualified film is complete, or 34 the taxable year immediately following the allocation year for which the 35 film has been allocated credit by the governor's office for motion 36 picture and television development. 37 § 3. Paragraph 4 of subdivision (e) of section 24 of the tax law, as 38 amended by section 2 of part SSS of chapter 59 of the laws of 2019, is 39 amended to read as follows: 40 (4) Additional pool 2 - The aggregate amount of tax credits allowed in 41 subdivision (a) of this section shall be increased by an additional four 42 hundred twenty million dollars in each year starting in two thousand ten 43 through two thousand [twenty-four] twenty-six provided however, seven 44 million dollars of the annual allocation shall be available for the 45 empire state film post production credit pursuant to section thirty-one 46 of this article in two thousand thirteen and two thousand fourteen and 47 twenty-five million dollars of the annual allocation shall be available 48 for the empire state film post production credit pursuant to section 49 thirty-one of this article in each year starting in two thousand fifteen 50 through two thousand [twenty-four] twenty-six. This amount shall be 51 allocated by the governor's office for motion picture and television 52 development among taxpayers in accordance with subdivision (a) of this 53 section. If the commissioner of economic development determines that the 54 aggregate amount of tax credits available from additional pool 2 for the 55 empire state film production tax credit have been previously allocated, 56 and determines that the pending applications from eligible applicantsA. 3009--B 42 1 for the empire state film post production tax credit pursuant to section 2 thirty-one of this article is insufficient to utilize the balance of 3 unallocated empire state film post production tax credits from such 4 pool, the remainder, after such pending applications are considered, 5 shall be made available for allocation in the empire state film tax 6 credit pursuant to this section, subdivision twenty of section two 7 hundred ten-B and subsection (gg) of section six hundred six of this 8 chapter. Also, if the commissioner of economic development determines 9 that the aggregate amount of tax credits available from additional pool 10 2 for the empire state film post production tax credit have been previ- 11 ously allocated, and determines that the pending applications from 12 eligible applicants for the empire state film production tax credit 13 pursuant to this section is insufficient to utilize the balance of unal- 14 located film production tax credits from such pool, then all or part of 15 the remainder, after such pending applications are considered, shall be 16 made available for allocation for the empire state film post production 17 credit pursuant to this section, subdivision thirty-two of section two 18 hundred ten-B and subsection (qq) of section six hundred six of this 19 chapter. The governor's office for motion picture and television devel- 20 opment must notify taxpayers of their allocation year and include the 21 allocation year on the certificate of tax credit. Taxpayers eligible to 22 claim a credit must report the allocation year directly on their empire 23 state film production credit tax form for each year a credit is claimed 24 and include a copy of the certificate with their tax return. In the case 25 of a qualified film that receives funds from additional pool 2, no 26 empire state film production credit shall be claimed before the later of 27 the taxable year the production of the qualified film is complete, or 28 the taxable year immediately following the allocation year for which the 29 film has been allocated credit by the governor's office for motion 30 picture and television development. 31 § 4. Paragraph 6 of subdivision (a) of section 31 of the tax law, as 32 amended by section 5-c of part M of chapter 59 of the laws of 2020, is 33 amended to read as follows: 34 (6) For the period two thousand fifteen through two thousand [twenty-35five] twenty-six, in addition to the amount of credit established in 36 paragraph two of this subdivision, a taxpayer shall be allowed a credit 37 equal to the product (or pro rata share of the product, in the case of a 38 member of a partnership) of ten percent and the amount of wages or sala- 39 ries paid to individuals directly employed (excluding those employed as 40 writers, directors, music directors, producers and performers, including 41 background actors with no scripted lines) for services performed by 42 those individuals in one of the counties specified in this paragraph in 43 connection with the post production work on a qualified film with a 44 minimum budget of five hundred thousand dollars at a qualified post 45 production facility in one of the counties listed in this paragraph. For 46 purposes of this additional credit, the services must be performed in 47 one or more of the following counties: Albany, Allegany, Broome, Catta- 48 raugus, Cayuga, Chautauqua, Chemung, Chenango, Clinton, Columbia, Cort- 49 land, Delaware, Dutchess, Erie, Essex, Franklin, Fulton, Genesee, 50 Greene, Hamilton, Herkimer, Jefferson, Lewis, Livingston, Madison, 51 Monroe, Montgomery, Niagara, Oneida, Onondaga, Ontario, Orange, Orleans, 52 Oswego, Otsego, Putnam, Rensselaer, Saratoga, Schenectady, Schoharie, 53 Schuyler, Seneca, St. Lawrence, Steuben, Sullivan, Tioga, Tompkins, 54 Ulster, Warren, Washington, Wayne, Wyoming, or Yates. The aggregate 55 amount of tax credits allowed pursuant to the authority of this para- 56 graph shall be five million dollars each year during the period twoA. 3009--B 43 1 thousand fifteen through two thousand [twenty-five] twenty-six of the 2 annual allocation made available to the empire state film post 3 production credit pursuant to paragraph four of subdivision (e) of 4 section twenty-four of this article. Such aggregate amount of credits 5 shall be allocated by the governor's office for motion picture and tele- 6 vision development among taxpayers in order of priority based upon the 7 date of filing an application for allocation of post production credit 8 with such office. If the total amount of allocated credits applied for 9 under this paragraph in any year exceeds the aggregate amount of tax 10 credits allowed for such year under this paragraph, such excess shall be 11 treated as having been applied for on the first day of the next year. If 12 the total amount of allocated tax credits applied for under this para- 13 graph at the conclusion of any year is less than five million dollars, 14 the remainder shall be treated as part of the annual allocation for two 15 thousand seventeen made available to the empire state film post 16 production credit pursuant to paragraph four of subdivision (e) of 17 section twenty-four of this article. However, in no event may the total 18 of the credits allocated under this paragraph and the credits allocated 19 under paragraph five of subdivision (a) of section twenty-four of this 20 article exceed five million dollars in any year during the period two 21 thousand fifteen through two thousand [twenty-five] twenty-six. 22 § 5. Paragraph 3 of subdivision (b) of section 24 of the tax law, as 23 separately amended by sections 3 and 4 of part M of chapter 59 of the 24 laws of 2020, is amended to read as follow: 25 (3) "Qualified film" means a feature-length film, television film, 26 relocated television production, television pilot or television series, 27 regardless of the medium by means of which the film, pilot or series is 28 created or conveyed. For the purposes of the credit provided by this 29 section only, a "qualified film" [with the exception of a television30pilot,] whose majority of principal photography shooting days in the 31 production of the qualified film are shot in Westchester, Rockland, 32 Nassau, or Suffolk county or any of the five New York City boroughs 33 shall have a minimum budget of one million dollars. A "qualified film", 34 [with the exception of a television pilot,] whose majority of principal 35 photography shooting days in the production of the qualified film are 36 shot in any other county of the state than those listed in the preceding 37 sentence shall have a minimum budget of two hundred fifty thousand 38 dollars. "Qualified film" shall not include: (i) a documentary film, 39 news or current affairs program, interview or talk program, "how-to" 40 (i.e., instructional) film or program, film or program consisting prima- 41 rily of stock footage, sporting event or sporting program, game show, 42 award ceremony, film or program intended primarily for industrial, 43 corporate or institutional end-users, fundraising film or program, 44 daytime drama (i.e., daytime "soap opera"), commercials, music videos or 45 "reality" program; (ii) a production for which records are required 46 under section 2257 of title 18, United States code, to be maintained 47 with respect to any performer in such production (reporting of books, 48 films, etc. with respect to sexually explicit conduct); or (iii) other 49 than a relocated television production, a television series commonly 50 known as variety entertainment, variety sketch and variety talk, i.e., a 51 program with components of improvisational or scripted content (mono- 52 logues, sketches, interviews), either exclusively or in combination with 53 other entertainment elements such as musical performances, dancing, 54 cooking, crafts, pranks, stunts, and games and which may be further 55 defined in regulations of the commissioner of economic development. 56 However, a qualified film shall include a television series as describedA. 3009--B 44 1 in subparagraph (iii) of this paragraph only if an application for such 2 series has been deemed conditionally eligible for the tax credit under 3 this section prior to April first, two thousand twenty, such series 4 remains in continuous production for each season, and an annual applica- 5 tion for each season of such series is continually submitted for such 6 series after April first, two thousand twenty. 7 § 6. This act shall take effect immediately; provided, however, that 8 the amendments made by section five of this act shall apply to applica- 9 tions that are filed with the governor's office for motion picture and 10 television development on or after April 1, 2021; provided, further, 11 however that the amendments to paragraph 4 of subdivision (e) of section 12 24 of the tax law made by section two of this act shall take effect on 13 the same date and in the same manner as section 5 of chapter 683 of the 14 laws of 2019, as amended, takes effect. 15 PART G 16 Section 1. Paragraph 3 of subsection (v) of section 685 of the tax 17 law, as amended by section 3 of part I of chapter 59 of the laws of 18 2018, is amended to read as follows: 19 (3) Failure to provide complete and correct employee withholding 20 reconciliation information. In the case of a failure by an employer to 21 provide complete and correct quarterly withholding information relating 22 to individual employees on a quarterly combined withholding, wage 23 reporting and unemployment insurance return covering each calendar quar- 24 ter of a year, such employer shall, unless it is shown that such failure 25 is due to reasonable cause and not due to willful neglect, pay a penalty 26 equal to the product of [fifty] one hundred dollars multiplied by the 27 number of employees for whom such information is incomplete or incor- 28 rect; provided, however, that if the number of such employees cannot be 29 determined from the quarterly combined withholding, wage reporting and 30 unemployment insurance return, the commissioner may utilize any informa- 31 tion in the commissioner's possession in making such determination. The 32 total amount of the penalty imposed pursuant to this paragraph on an 33 employer for any such failure for each calendar quarter of a year shall 34 not exceed [ten] twenty thousand dollars. 35 § 2. This act shall take effect immediately and apply to returns filed 36 on or after June 1, 2021. 37 PART H 38 Intentionally Omitted 39 PART I 40 Intentionally Omitted 41 PART J 42 Section 1. Sections 227, 306 and 406, subparagraph (ii) of paragraph b 43 of subdivision 4 of section 1008 and paragraph b of subdivision 5 of 44 section 1009 of the racing, pari-mutuel, wagering and breeding law are 45 REPEALED. 46 § 2. Paragraph 1 of subdivision (f) of section 1105 of the tax law, as 47 amended by chapter 32 of the laws of 2016, is amended to read as 48 follows:A. 3009--B 45 1 (1) Any admission charge where such admission charge is in excess of 2 ten cents to or for the use of any place of amusement in the state, 3 except charges for admission to [race tracks or] combative sports which 4 charges are taxed under any other law of this state, or dramatic or 5 musical arts performances, or live circus performances, or motion 6 picture theaters, and except charges to a patron for admission to, or 7 use of, facilities for sporting activities in which such patron is to be 8 a participant, such as bowling alleys and swimming pools. For any person 9 having the permanent use or possession of a box or seat or a lease or a 10 license, other than a season ticket, for the use of a box or seat at a 11 place of amusement, the tax shall be upon the amount for which a similar 12 box or seat is sold for each performance or exhibition at which the box 13 or seat is used or reserved by the holder, licensee or lessee, and shall 14 be paid by the holder, licensee or lessee. 15 § 3. Subdivision (a) of section 1109 of the tax law, as amended by 16 section 1 of part BB of chapter 61 of the laws of 2005, is amended to 17 read as follows: 18 (a) General. In addition to the taxes imposed by sections eleven 19 hundred five and eleven hundred ten of this article, there is hereby 20 imposed within the territorial limits of the metropolitan commuter 21 transportation district created and established pursuant to section 22 twelve hundred sixty-two of the public authorities law, and there shall 23 be paid, additional taxes, at the rate of three-eighths of one percent, 24 which shall be identical to the taxes imposed by sections eleven hundred 25 five and eleven hundred ten of this article. Such sections and the other 26 sections of this article, including the definition and exemption 27 provisions, shall apply for purposes of the taxes imposed by this 28 section in the same manner and with the same force and effect as if the 29 language of those sections had been incorporated in full into this 30 section and had expressly referred to the taxes imposed by this section. 31 Notwithstanding the foregoing, the tax imposed by this section shall not 32 apply to admissions to race tracks or simulcast facilities. 33 § 4. Intentionally omitted. 34 § 5. Paragraph 1 of subdivision (a) of section 1210 of the tax law, as 35 amended by section 2 of part WW, subparagraph (i) as separately amended 36 by section 5 of part Z of chapter 60 of the laws of 2016, is amended to 37 read as follows: 38 (1) Either, all of the taxes described in article twenty-eight of this 39 chapter, at the same uniform rate, as to which taxes all provisions of 40 the local laws, ordinances or resolutions imposing such taxes shall be 41 identical, except as to rate and except as otherwise provided, with the 42 corresponding provisions in such article twenty-eight, including the 43 definition and exemption provisions of such article, so far as the 44 provisions of such article twenty-eight can be made applicable to the 45 taxes imposed by such city or county and with such limitations and 46 special provisions as are set forth in this article. The taxes author- 47 ized under this subdivision may not be imposed by a city or county 48 unless the local law, ordinance or resolution imposes such taxes so as 49 to include all portions and all types of receipts, charges or rents, 50 subject to state tax under sections eleven hundred five and eleven 51 hundred ten of this chapter, except as otherwise provided. Notwith- 52 standing the foregoing, a tax imposed by a city or county authorized 53 under this subdivision shall not include the tax imposed on charges for 54 admission to race tracks and simulcast facilities under subdivision (f) 55 of section eleven hundred five of this chapter. (i) Any local law, ordi- 56 nance or resolution enacted by any city of less than one million or byA. 3009--B 46 1 any county or school district, imposing the taxes authorized by this 2 subdivision, shall, notwithstanding any provision of law to the contra- 3 ry, exclude from the operation of such local taxes all sales of tangible 4 personal property for use or consumption directly and predominantly in 5 the production of tangible personal property, gas, electricity, refrig- 6 eration or steam, for sale, by manufacturing, processing, generating, 7 assembly, refining, mining or extracting; and all sales of tangible 8 personal property for use or consumption predominantly either in the 9 production of tangible personal property, for sale, by farming or in a 10 commercial horse boarding operation, or in both; and all sales of fuel 11 sold for use in commercial aircraft and general aviation aircraft; and, 12 unless such city, county or school district elects otherwise, shall omit 13 the provision for credit or refund contained in clause six of subdivi- 14 sion (a) or subdivision (d) of section eleven hundred nineteen of this 15 chapter. (ii) Any local law, ordinance or resolution enacted by any 16 city, county or school district, imposing the taxes authorized by this 17 subdivision, shall omit the residential solar energy systems equipment 18 and electricity exemption provided for in subdivision (ee), the commer- 19 cial solar energy systems equipment and electricity exemption provided 20 for in subdivision (ii), the commercial fuel cell electricity generating 21 systems equipment and electricity generated by such equipment exemption 22 provided for in subdivision (kk) and the clothing and footwear exemption 23 provided for in paragraph thirty of subdivision (a) of section eleven 24 hundred fifteen of this chapter, unless such city, county or school 25 district elects otherwise as to such residential solar energy systems 26 equipment and electricity exemption, such commercial solar energy 27 systems equipment and electricity exemption, commercial fuel cell elec- 28 tricity generating systems equipment and electricity generated by such 29 equipment exemption or such clothing and footwear exemption. 30 § 6. Paragraph 1 of subdivision (b) of section 1210 of the tax law, 31 as amended by section 3 of part WW of chapter 60 of the laws of 2016, is 32 amended to read as follows: 33 (1) Or, one or more of the taxes described in subdivisions (b), (d), 34 (e) and (f) of section eleven hundred five of this chapter, at the same 35 uniform rate, including the transitional provisions in section eleven 36 hundred six of this chapter covering such taxes, but not the taxes 37 described in subdivisions (a) and (c) of section eleven hundred five of 38 this chapter. Provided, further, that where the tax described in subdi- 39 vision (b) of section eleven hundred five of this chapter is imposed, 40 the compensating use taxes described in clauses (E), (G) and (H) of 41 subdivision (a) of section eleven hundred ten of this chapter shall also 42 be imposed. Provided, further, that where the taxes described in subdi- 43 vision (b) of section eleven hundred five of this chapter are imposed, 44 such taxes shall omit: (A) the provision for refund or credit contained 45 in subdivision (d) of section eleven hundred nineteen of this chapter 46 with respect to such taxes described in such subdivision (b) of section 47 eleven hundred five unless such city or county elects to provide such 48 provision or, if so elected, to repeal such provision; (B) the exemption 49 provided in paragraph two of subdivision (ee) of section eleven hundred 50 fifteen of this chapter unless such county or city elects otherwise; (C) 51 the exemption provided in paragraph two of subdivision (ii) of section 52 eleven hundred fifteen of this chapter, unless such county or city 53 elects otherwise; and (D) the exemption provided in paragraph two of 54 subdivision (kk) of section eleven hundred fifteen of this chapter, 55 unless such county or city elects otherwise; and provided further that 56 where the tax described in subdivision (f) of such section elevenA. 3009--B 47 1 hundred five is imposed, such tax shall not apply to charges for admis- 2 sion to race tracks and simulcast facilities. 3 § 7. Notwithstanding any provisions of law to the contrary and 4 notwithstanding the repeal of sections 227, 306 and 406, subparagraph 5 (ii) of paragraph b of subdivision 4 of section 1008 and paragraph b of 6 subdivision 5 of section 1009 of the racing, pari-mutuel, wagering and 7 breeding law by section one of this act, all provisions of such sections 8 227, 306 and 406, subparagraph (ii) of paragraph b of subdivision 4 of 9 section 1008 and paragraph b of subdivision 5 of section 1009, in 10 respect to the imposition, exemption, assessment, payment, payment over, 11 determination, collection, and credit or refund of tax, interest and 12 penalty imposed thereunder, the filing of forms and returns, the preser- 13 vation of records for the purposes of such tax, the disposition of 14 revenues, and any civil and criminal penalties applicable to the 15 violation of the provisions of such sections 227, 306 and 406, subpara- 16 graph (ii) of paragraph b of subdivision 4 of section 1008 and paragraph 17 b of subdivision 5 of section 1009, shall continue in full force and 18 effect with respect to all such tax accrued for periods prior to the 19 effective date of this act in the same manner as they might if such 20 provisions were not repealed. 21 § 8. This act shall take effect November 1, 2021 and shall apply to 22 charges for admissions to race tracks and simulcast facilities on and 23 after such date. 24 PART K 25 Section 1. Subdivision (d) of section 1139 of the tax law, as amended 26 by section 10 of subpart D of part VI of chapter 57 of the laws of 2009, 27 is amended to read as follows: 28 (d) (1) Except in respect to an overpayment made on a return described 29 in paragraph two of subdivision (a) of section eleven hundred thirty-six 30 of this part [or on a return described in subdivision (c) of section31eleven hundred thirty-seven-A of this part], interest shall be allowed 32 and paid upon any refund made or credit allowed pursuant to this section 33 except as otherwise provided in paragraph two of this subdivision or 34 subdivision (e) of this section and except that no interest shall be 35 allowed or paid if the amount thereof would be less than one dollar. 36 Such interest shall be at the overpayment rate set by the commissioner 37 pursuant to section eleven hundred forty-two of this part, or if no rate 38 is set, at the rate of six percent per annum from the date when the tax, 39 penalty or interest refunded or credited was paid to a date preceding 40 the date of the refund check by not more than thirty days, provided, 41 however, that for the purposes of this subdivision any tax paid before 42 the last day prescribed for its payment shall be deemed to have been 43 paid on such last day. In the case of a refund or credit claimed on a 44 return of tax which is filed after the last date prescribed for filing 45 such return (determined with regard to extensions), or claimed on an 46 application for refund or credit, no interest shall be allowed or paid 47 for any day before the date on which the return or application is filed. 48 For purposes of this subdivision, a return or application for refund or 49 credit shall not be treated as filed until it is filed in processible 50 form. A return or application is in a processible form if it is filed on 51 a permitted form, and contains the taxpayer's name, address and identi- 52 fying number and the required signatures, and sufficient required infor- 53 mation (whether on the return or application or on required attachments)A. 3009--B 48 1 to permit the mathematical verification of tax liability shown on the 2 return or refund or credit claimed on the application. 3 (2) If a refund is made or a credit is allowed (i) within three months 4 after the last date prescribed or permitted by extension of time for 5 filing a return on which the refund or credit was claimed or within 6 three months after the return was filed, whichever is later, or (ii) 7 within three months after an application for refund or credit is filed 8 on which that refund or credit was claimed, or (iii) within three months 9 after the last date prescribed or permitted by extension of time for 10 filing an application for a refund or credit on which that refund or 11 credit was claimed, no interest will be allowed or paid on that refund 12 or credit. 13 § 2. This act shall take effect immediately and shall apply to refund 14 or credit claims submitted on or after March 1, 2022. 15 PART L 16 Intentionally Omitted 17 PART M 18 Section 1. Subdivision (jj) of section 1115 of the tax law, as amended 19 by section 1 of part V of chapter 59 of the laws of 2019, is amended to 20 read as follows: 21 (jj) Tangible personal property or services otherwise taxable under 22 this article sold to a related person shall not be subject to the taxes 23 imposed by section eleven hundred five of this article or the compensat- 24 ing use tax imposed under section eleven hundred ten of this article 25 where the purchaser can show that the following conditions have been met 26 to the extent they are applicable: (1)(i) the vendor and the purchaser 27 are referenced as either a "covered company" as described in section 28 243.2(f) or a "material entity" as described in section 243.2(l) of the 29 Code of Federal Regulations in a resolution plan that has been submitted 30 to an agency of the United States for the purpose of satisfying subpara- 31 graph 1 of paragraph (d) of section one hundred sixty-five of the Dodd- 32 Frank Wall Street Reform and Consumer Protection Act (the "Act") or any 33 successor law, or (ii) the vendor and the purchaser are separate legal 34 entities pursuant to a divestiture directed pursuant to subparagraph 5 35 of paragraph (d) of section one hundred sixty-five of such act or any 36 successor law; (2) the sale would not have occurred between such related 37 entities were it not for such resolution plan or divestiture; and (3) in 38 acquiring such property or services, the vendor did not claim an 39 exemption from the tax imposed by this state or another state based on 40 the vendor's intent to resell such services or property. A person is 41 related to another person for purposes of this subdivision if the person 42 bears a relationship to such person described in section two hundred 43 sixty-seven of the internal revenue code. The exemption provided by this 44 subdivision shall not apply to sales made, services rendered, or uses 45 occurring after June thirtieth, two thousand [twenty-one] twenty-four, 46 except with respect to sales made, services rendered, or uses occurring 47 pursuant to binding contracts entered into on or before such date; but 48 in no case shall such exemption apply after June thirtieth, two thousand 49 [twenty-four] twenty-seven. 50 § 2. This act shall take effect immediately. 51 PART NA. 3009--B 49 1 Section 1. Subparagraph (vi) of paragraph 1 of subdivision (a) of 2 section 1134 of the tax law, as amended by section 160 of part A of 3 chapter 389 of the laws of 1997, is amended to read as follows: 4 (vi) every person described in subparagraph (i), (ii), (iii), (iv) or 5 (v) of this paragraph or every person who is a vendor solely by reason 6 of clause (D), (E) or (F) of subparagraph (i) of paragraph eight of 7 subdivision (b) of section eleven hundred one of this article who or 8 which has had its certificate of authority revoked under paragraph four 9 of this subdivision, shall file with the commissioner a certificate of 10 registration, in a form prescribed by the commissioner, at least twenty 11 days prior to commencing business or opening a new place of business or 12 such purchasing, selling or taking of possession or payment, whichever 13 comes first. Every person who is a vendor solely by reason of clause (D) 14 of subparagraph (i) of paragraph eight of subdivision (b) of section 15 eleven hundred one of this article shall file with the commissioner a 16 certificate of registration, in a form prescribed by such commissioner, 17 within thirty days after the day on which the cumulative total number of 18 occasions that such person came into the state to deliver property or 19 services, for the immediately preceding four quarterly periods ending on 20 the last day of February, May, August and November, exceeds twelve. 21 Every person who is a vendor solely by reason of clause (E) of subpara- 22 graph (i) of paragraph eight of subdivision (b) of section eleven 23 hundred one of this article shall file with the commissioner a certif- 24 icate of registration, in a form prescribed by such commissioner, within 25 thirty days after the day on which the cumulative total, for the imme- 26 diately preceding four quarterly periods ending on the last day of 27 February, May, August and November, of such person's gross receipts from 28 sales of property delivered in this state exceeds [three] five hundred 29 thousand dollars and number of such sales exceeds one hundred. Every 30 person who is a vendor solely by reason of clause (F) of subparagraph 31 (i) of paragraph eight of subdivision (b) of section eleven hundred one 32 of this article shall file with the commissioner a certificate of regis- 33 tration, in a form prescribed by such commissioner, within thirty days 34 after the day on which tangible personal property in which such person 35 retains an ownership interest is brought into this state by the person 36 to whom such property is sold, where the person to whom such property is 37 sold becomes or is a resident or uses such property in any manner in 38 carrying on in this state any employment, trade, business or profession. 39 Information with respect to the notice requirements of a purchaser, 40 transferee or assignee and such person's liability pursuant to the 41 provisions of subdivision (c) of section eleven hundred forty-one of 42 this chapter shall be included in or accompany the certificate of regis- 43 tration form furnished the applicant. The commissioner shall also 44 include with such information furnished to each applicant general infor- 45 mation about the tax imposed under this article including information on 46 records to be kept, returns and payments, notification requirements and 47 forms. Such certificate of registration may be amended in accordance 48 with rules promulgated by the commissioner. 49 § 2. This act shall take effect immediately. 50 PART O 51 Section 1. Subdivision (a) of section 1401 of the tax law, as amended 52 by chapter 576 of the laws of 1994, is amended to read as follows: 53 (a) (1) "Person" means an individual, partnership, limited liability 54 company, society, association, joint stock company, corporation, estate,A. 3009--B 50 1 receiver, trustee, assignee, referee or any other person acting in a 2 fiduciary or representative capacity, whether appointed by a court or 3 otherwise, any combination of individuals, and any other form of unin- 4 corporated enterprise owned or conducted by two or more persons. 5 (2) "Person" shall include any individual, corporation, partnership or 6 limited liability company or an officer or employee of any corporation 7 (including a dissolved corporation), or a member or employee of any 8 partnership, or a member, manager or employee of a limited liability 9 company, who as such officer, employee, manager or member is under a 10 duty to act for such corporation, partnership, limited liability company 11 or individual proprietorship in complying with any requirement of this 12 article, or has so acted. 13 § 2. Subdivision (a) of section 1404 of the tax law, as amended by 14 chapter 61 of the laws of 1989, is amended to read as follows: 15 (a) The real estate transfer tax imposed pursuant to section fourteen 16 hundred two of this article shall be paid by the grantor and such tax 17 shall not be payable, directly or indirectly, by the grantee except as 18 provided in a contract between grantor and grantee or as otherwise 19 provided in this section. If the grantor has failed to pay the tax 20 imposed by this article at the time required by section fourteen hundred 21 ten of this article or if the grantor is exempt from such tax, the gran- 22 tee shall have the duty to pay the tax. Where the grantee has the duty 23 to pay the tax because the grantor has failed to pay, such tax shall be 24 the joint and several liability of the grantor and the grantee; provided 25 that in the event of such failure, the grantee shall have a cause of 26 action against the grantor for recovery of payment of such tax, interest 27 and penalties by the grantee. In the case of a conveyance of residen- 28 tial real property as defined in subdivision (a) of section fourteen 29 hundred two-a of this article, if the tax imposed by this article is 30 paid by the grantee pursuant to a contract between the grantor and the 31 grantee, the amount of such tax shall be excluded from the calculation 32 of consideration subject to tax under this article. 33 § 3. Subdivision (a) of section 1409 of the tax law, as amended 34 § 3. Subdivision (a) of section 1409 of the tax law, as amended by 35 chapter 297 of the laws of 2019, is amended to read as follows: 36 (a) (1) A joint return shall be filed by both the grantor and the 37 grantee for each conveyance whether or not a tax is due thereon other 38 than a conveyance of an easement or license to a public utility as 39 defined in subdivision two of section one hundred eighty-six-a of this 40 chapter or to a public utility which is a provider of telecommunication 41 services as defined in subdivision one of section one hundred eighty- 42 six-e of this chapter, where the consideration is two dollars or less 43 and is clearly stated as actual consideration in the instrument of 44 conveyance. 45 (2) When the grantor or grantee of a deed for a building used as resi- 46 dential real property containing [one- to four-] up to four family 47 dwelling units is a limited liability company, the joint return shall 48 not be accepted for filing unless it is accompanied by a document which 49 identifies the names and business addresses of all members, managers, 50 and any other authorized persons, if any, of such limited liability 51 company and the names and business addresses or, if none, the business 52 addresses of all shareholders, directors, officers, members, managers 53 and partners of any limited liability company or other business entity 54 that are to be the members, managers or authorized persons, if any, of 55 such limited liability company. The identification of such names and 56 addresses shall not be deemed an unwarranted invasion of personal priva-A. 3009--B 51 1 cy pursuant to article six of the public officers law. If any such 2 member, manager or authorized person of the limited liability company is 3 itself a limited liability company or other business entity other than a 4 publicly traded entity, a REIT, a UPREIT, or a mutual fund, the names 5 and addresses of the shareholders, directors, officers, members, manag- 6 ers and partners of the limited liability company or other business 7 entity shall also be disclosed until full disclosure of ultimate owner- 8 ship by natural persons is achieved. For purposes of this subdivision, 9 the terms "members", "managers", "authorized person", "limited liability 10 company" and "other business entity" shall have the same meaning as 11 those terms are defined in section one hundred two of the limited 12 liability company law. 13 (3) The return shall be filed with the recording officer before the 14 instrument effecting the conveyance may be recorded. However, if the tax 15 is paid to the commissioner pursuant to section fourteen hundred ten of 16 this article, the return shall be filed with such commissioner at the 17 time the tax is paid. In that instance, a receipt evidencing the filing 18 of the return and the payment of tax shall be filed with the recording 19 officer before the instrument effecting the conveyance may be recorded. 20 The recording officer shall handle such receipt in the same manner as a 21 return filed with the recording officer. 22 § 4. Subdivision (h) of section 1418 of the tax law, as added by 23 section 7 of part X of chapter 56 of the laws of 2010 and as further 24 amended by subdivision (c) of section 1 of part W of chapter 56 of the 25 laws of 2010, is amended to read as follows: 26 (h) Notwithstanding the provisions of subdivision (a) of this section, 27 the commissioner may furnish information relating to real property 28 transfers obtained or derived from returns filed pursuant to this arti- 29 cle in relation to the real estate transfer tax, to the extent that such 30 information is also required to be reported to the commissioner by 31 section three hundred thirty-three of the real property law and section 32 five hundred seventy-four of the real property tax law and the rules 33 adopted thereunder, provided such information was collected through a 34 combined process established pursuant to an agreement entered into with 35 the commissioner pursuant to paragraph viii of subdivision one-e of 36 section three hundred thirty-three of the real property law. The commis- 37 sioner may redisclose such information to the extent authorized by 38 section five hundred seventy-four of the real property tax law. The 39 commissioner may also disclose any information reported pursuant to 40 paragraph two of subdivision (a) of section fourteen hundred nine of 41 this article. 42 § 5. This act shall take effect immediately; provided however that 43 sections one and two of this act shall take effect July 1, 2021, and 44 shall apply to conveyances occurring on or after such date other than 45 conveyances that are made pursuant to binding written contracts entered 46 into on or before April 1, 2021, provided that the date of execution of 47 such contract is confirmed by independent evidence, such as the record- 48 ing of the contract, payment of a deposit or other facts and circum- 49 stances as determined by the commissioner of taxation and finance. 50 PART P 51 Section 1. Section 480-a of the tax law is amended by adding a new 52 subdivision 6 to read as follows: 53 6. (a) No retail dealer who has its retail dealer registration 54 cancelled, suspended or revoked pursuant to this section or has beenA. 3009--B 52 1 forbidden from selling cigarettes or tobacco products pursuant to para- 2 graph (j) of subdivision one of section four hundred eighty of this 3 article shall possess cigarettes or tobacco products in any place of 4 business, cart, stand, truck or other merchandising device in this state 5 beginning on the tenth day after such cancellation, suspension, revoca- 6 tion, or forbiddance and continuing for the duration of the same; 7 provided however, such retail dealer shall not be prohibited before the 8 tenth day after such cancellation, suspension, revocation, or forbid- 9 dance from selling or transferring its inventory of lawfully stamped 10 cigarettes or tobacco products on which the taxes imposed by this arti- 11 cle have been assumed or paid to a properly registered retail dealer 12 whose registration is not cancelled, suspended, or revoked or who has 13 not been forbidden from selling cigarettes or tobacco products. 14 (b) No retail dealer shall possess cigarettes or tobacco products in 15 any place of business, cart, stand, truck or other merchandising device 16 in this state unless it has obtained a valid retail dealer registration 17 from the commissioner. 18 § 2. Intentionally omitted. 19 § 3. Intentionally omitted. 20 § 4. Any retail dealer who, prior to the effective date of this act, 21 had its retail dealer registration cancelled, suspended, or revoked 22 pursuant to section four hundred eighty-a of the tax law or was forbid- 23 den from selling cigarettes or tobacco products pursuant to paragraph 24 (j) of subdivision one of section four hundred eighty of the tax law and 25 such cancellation, suspension, revocation, or forbiddance remains in 26 effect as of the effective date of this act, shall be prohibited from 27 possessing cigarettes and tobacco products beginning on the tenth day 28 after the effective date of this act and continuing for as long as such 29 cancellation, suspension, revocation, or forbiddance shall remain in 30 effect; provided however, such retail dealer shall not be prohibited 31 before the tenth day after the effective date of this act from selling 32 or transferring its inventory of lawfully stamped cigarettes or tobacco 33 products on which the taxes imposed by this article have been assumed or 34 paid to a properly registered retail dealer whose registration is not 35 cancelled, suspended, or revoked or who has not been forbidden from 36 selling cigarettes or tobacco products. 37 § 5. This act shall take effect immediately. 38 PART Q 39 Section 1. Subdivision 1 of section 429 of the tax law, as amended by 40 chapter 433 of the laws of 1978, is amended to read as follows: 41 1. Every distributor, noncommercial importer or other person shall, on 42 or before the twentieth day of each month, file with the department of 43 taxation and finance a return, on forms to be prescribed by the [tax44commission] commissioner and furnished by such department, stating sepa- 45 rately the number of gallons, or lesser quantity, of beers, and the 46 number of liters, or lesser quantity, of wines and liquors sold or used 47 by such distributor, noncommercial importer or other person in this 48 state during the preceding calendar month, except that the [tax commis-49sion] commissioner may, if [it] he or she deems it necessary [in order] 50 to [insure] facilitate the efficient reporting and payment of the tax 51 imposed by this article, require returns to be made at such times and 52 covering such periods as [it] he or she may deem necessary. Such return 53 shall contain such further information as the [tax commission] commis- 54 sioner shall require. The fact that the name of the distributor, noncom- 55 mercial importer or other person is signed to a filed return shall beA. 3009--B 53 1 prima facie evidence for all purposes that the return was actually 2 signed by such distributor, noncommercial importer or other person. 3 § 2. Section 505 of the tax law, as amended by section 2 of part E of 4 chapter 60 of the laws of 2007, is amended to read as follows: 5 § 505. Returns. Every carrier subject to this article and every carri- 6 er to whom a certificate of registration was issued shall file on or 7 before the last day of each month a return for the preceding calendar 8 month where a carrier's total tax liability under this article for the 9 preceding calendar year exceeded [four] twelve thousand dollars. Where a 10 carrier's total tax liability under this article for the preceding 11 calendar year did not exceed [four] twelve thousand dollars or where a 12 carrier was not subject to such tax in the preceding calendar year, 13 returns shall be filed quarterly, on or before the last day of the 14 calendar month following each of the calendar quarters: January through 15 March, April through June, July through September and October through 16 December. Provided, however, if the commissioner consents thereto in 17 writing, any carrier may file a return on or before the thirtieth day 18 after the close of any different period, if the carrier's books are 19 regularly kept on a periodic basis other than a calendar month or quar- 20 ter. The commissioner may permit the filing of returns on an annual 21 basis, provided the carrier was subject to the tax under this article 22 during the entire preceding calendar year and the carrier's total tax 23 liability under this article for such year did not exceed [two hundred24fifty] twelve hundred dollars. Such annual returns shall be filed on or 25 before January thirty-first of the succeeding calendar year. Returns 26 shall be filed with the commissioner on forms to be furnished by such 27 commissioner for such purpose and shall contain such data, information 28 or matter as the commissioner may require to be included therein. The 29 fact that a carrier's name is signed to a filed return shall be prima 30 facie evidence for all purposes that the return was actually signed by 31 such carrier. The commissioner may grant a reasonable extension of time 32 for filing returns whenever good cause exists and may waive the filing 33 of returns if a carrier is not subject to the tax imposed by this arti- 34 cle for the period covered by the return. Every return shall have 35 annexed thereto a certification to the effect that the statements 36 contained therein are true. 37 § 3. This act shall take effect immediately; provided, however, that 38 section two of this act shall apply to tax returns for taxable periods 39 beginning on or after January 1, 2022. 40 PART R 41 Section 1. Section 1280 of the tax law is amended by adding a new 42 subdivision (v) to read as follows: 43 (v) "Technology service provider" or "TSP" means a person that acts by 44 employment, contract or otherwise on behalf of one or more taxicab 45 owners or HAIL vehicle owners to collect the trip record for a taxicab 46 trip or HAIL vehicle trip. 47 § 2. Subdivision (b) of section 1283 of the tax law, as amended by 48 chapter 9 of the laws of 2012, is amended to read as follows: 49 (b) (1) If the taxicab owner has designated an agent, then the agent 50 shall be jointly liable with the taxicab owner for the tax on trips 51 occurring during the period that such designation is in effect. Even if 52 the TLC has specified that the taxicab owner's agent cannot operate as 53 an agent, that agent shall be jointly liable with the taxicab owner if 54 the agent has acted for the taxicab owner. During the period that aA. 3009--B 54 1 taxicab owner's designation of an agent is in effect, the agent shall 2 file the returns required by this article and pay any tax due with such 3 return, but the taxicab owner shall not be relieved of liability for 4 tax, penalty or interest due under this article, or for the filing of 5 returns required to be filed, unless the agent has timely filed accurate 6 returns and timely paid the tax required to be paid under this article. 7 If a taxicab owner has designated an agent, then the agent must perform 8 any act this article requires the taxicab owner to perform, but the 9 failure of such agent to perform any such act shall not relieve the 10 taxicab owner from the obligation to perform such act or from any 11 liability that may arise from failure to perform the act. 12 (2) (A) Notwithstanding the foregoing, a TSP that collects the trip 13 record and the trip fare on behalf of a taxicab owner or a HAIL vehicle 14 owner shall be jointly liable with the taxicab owner or HAIL vehicle 15 owner for the tax due on such trips. For any period that the TSP 16 collects trip records on behalf of a taxicab owner or HAIL vehicle 17 owner, the TSP shall file returns reporting all trip records and, after 18 retaining any fees to which it is entitled pursuant to a contract with 19 such taxicab owner or HAIL vehicle owner, shall remit the taxes due on 20 all fares collected by the TSP. 21 (B) The TSP, after retaining the fees described in subparagraph (A) of 22 this paragraph, shall also remit the taxes due on any taxicab trip or 23 HAIL vehicle trip for which it maintained the trip record but did not 24 collect the fare, from any fares it collected on behalf of any such 25 taxicab owner or HAIL vehicle owner, before it releases any proceeds to 26 the taxicab owner or HAIL vehicle owner. If the TSP fails to comply 27 with the requirements of this subparagraph, such TSP shall be liable for 28 the taxes due on such trips up to the amount it released to the taxicab 29 owner or HAIL vehicle owner, or any person on behalf of such taxicab 30 owner or HAIL vehicle owner. However, the taxicab owner, HAIL vehicle 31 owner or their agents shall not be relieved of any liability for the 32 tax, penalty or interest due under this article, or for filing of 33 returns required to be filed, unless the TSP has timely filed accurate 34 returns and timely paid the tax required to be paid under this article. 35 § 3. Subdivision (a) of section 1299-B of the tax law, as added by 36 section 2 of part NNN of chapter 59 of the laws of 2018, is amended to 37 read as follows: 38 (a) Notwithstanding any provision of law to the contrary, any person 39 that dispatches a motor vehicle by any means that provides transporta- 40 tion that is subject to a surcharge imposed by this article, including 41 transportation network companies as defined in article forty-four-B of 42 the vehicle and traffic law, shall be liable for the surcharge imposed 43 by this article, except that in the case of taxicab trips and HAIL vehi- 44 cle trips that are also subject to tax pursuant to article twenty-nine-A 45 of this chapter[, only the taxicab owner or HAIL base liable for that46tax shall be the person liable for the surcharge imposed by this arti-47cle]: (1) the TSP shall be liable for the surcharge imposed by this 48 article for all trips for which the TSP collected the trip record and 49 the surcharge, and shall be responsible for filing returns; and, after 50 retaining any fees to which it is entitled pursuant to a contract with 51 such taxicab owner or HAIL vehicle owner, shall remit the surcharges on 52 such trips to the department. 53 (2) the TSP, after retaining the fees described in paragraph one of 54 this subdivision, shall also remit the surcharges due on any taxicab 55 trip or HAIL vehicle trip for which it maintained the trip record but 56 did not collect the fare, from any fares it collected on behalf of anyA. 3009--B 55 1 such taxicab owner or HAIL vehicle owner, before it releases any 2 proceeds to the taxicab owner or HAIL vehicle owner. Whenever the TSP 3 fails to comply with the requirements of the preceding sentence, the TSP 4 shall be liable for the surcharges due on such trips up to the amount it 5 released to the taxicab owner or HAIL vehicle owner, or any person on 6 behalf of such taxicab owner or HAIL vehicle owner. However, the taxi- 7 cab owner or HAIL base shall be jointly and severally liable with the 8 TSP for such surcharges. For purposes of this section, the terms "taxi- 9 cab trips," "HAIL vehicle trips," "taxicab owner," [and] "HAIL base", 10 and "TSP" shall have the same meaning as they do in section twelve 11 hundred eighty of this chapter. 12 § 4. Section 1299-F of the tax law is amended by adding a new subdivi- 13 sion (e) to read as follows: 14 (e) Notwithstanding the provisions of subdivision (a) of this section, 15 the commissioner may, in his or her discretion, permit the proper offi- 16 cer of the taxi and limousine commission of the city of New York (TLC) 17 or the duly authorized representative of such officer, to inspect any 18 return filed under this article, or may furnish to such officer or such 19 officer's authorized representative an abstract of any such return or 20 supply such person with information concerning an item contained in any 21 such return, or disclosed by any investigation of tax liability under 22 this article; but such permission shall be granted or such information 23 furnished only if the TLC shall have furnished the commissioner with all 24 information requested by the commissioner pursuant to this article and 25 shall have permitted the commissioner or the commissioner's authorized 26 representative to make any inspection of any records or reports concern- 27 ing for-hire transportation trips subject to the surcharge imposed by 28 this article, and any persons required to collect such surcharge, filed 29 with or possessed by the TLC that the commissioner may have requested 30 from the TLC. Provided, further, that the commissioner may disclose to 31 the TLC whether or not a person liable for the surcharge imposed by this 32 article has paid all of the surcharges due under this article as of any 33 given date. 34 § 5. This act shall take effect immediately and shall apply to trips 35 occurring on or after July 1, 2021. 36 PART S 37 Section 1. Paragraph 1 of subdivision (g) of section 32 of the tax 38 law, as added by section 2 of part VV of chapter 59 of the laws of 2009, 39 is amended to read as follows: 40 (1) If a tax return preparer or facilitator is required to register or 41 re-register with the department pursuant to paragraph one or three of 42 subdivision (b) of this section, as applicable, and fails to do so in 43 accordance with the terms of this section, then the tax return preparer 44 [of] or facilitator must pay a penalty of [two] up to five hundred 45 [fifty] dollars. Provided, however, that if the tax return preparer or 46 facilitator complies with the registration requirements of this section 47 within [ninety] thirty calendar days after notification of assessment of 48 this penalty is sent by the department, then this penalty must be 49 abated. If the tax return preparer or facilitator continues to fail to 50 register or re-register after the [ninety] thirty calendar day period, 51 the tax return preparer or facilitator must pay an additional penalty of 52 five hundred dollars if the failure is for not more than one month, with 53 an additional five hundred dollars for each additional month or fraction 54 thereof during which the failure continues. Once the [ninety] thirtyA. 3009--B 56 1 calendar days specified in this paragraph have expired, the penalty can 2 be waived only for good cause shown by the tax return preparer or faci- 3 litator. 4 § 2. Paragraph 2 of subdivision (g) of section 32 of the tax law, as 5 added by section 2 of part VV of chapter 59 of the laws of 2009, is 6 amended to read as follows: 7 (2) If a commercial tax return preparer fails to pay the fee as 8 required in paragraph one of subdivision (c) of this section, for a 9 calendar year, then the commercial tax return preparer must pay a penal- 10 ty of fifty dollars for each return the commercial tax return preparer 11 has filed with the department in that calendar year. Provided however, 12 that if the commercial tax return preparer complies with the payment 13 requirements of paragraph one of subdivision (c) of this section, within 14 [ninety] thirty calendar days after notification of the assessment of 15 this penalty is sent by the department, then this penalty must be 16 abated. The maximum penalty that may be imposed under this paragraph on 17 any commercial tax return preparer during any calendar year must not 18 exceed [five] ten thousand dollars. Once the [ninety] thirty calendar 19 days specified in this paragraph have expired, the penalty can be waived 20 only for good cause shown by the commercial tax return preparer. 21 § 3. Section 32 of the tax law is amended by adding a new subdivision 22 (h) to read as follows: 23 (h) (1) Tax return preparers and facilitators must prominently and 24 conspicuously display a copy of their registration certificate issued 25 pursuant to this section, for the current registration period, at their 26 place of business and at any other location where they provide tax 27 return preparation and/or facilitation services, in an area where 28 taxpayers using their services are able to see and review such registra- 29 tion certificate. 30 (2) Tax return preparers and facilitators must prominently and 31 conspicuously display at their place of business and at any other 32 location where they provide tax return preparation and/or facilitation 33 services the following documents: 34 (A) a current price list, in at least fourteen-point type, that 35 includes, but is not limited to, a list of all services offered by the 36 tax return preparer and/or facilitator; the minimum fee charged for each 37 service, including the fee charged for each type of federal or New York 38 state tax return to be prepared and facilitation service to be provided; 39 and a list of each factor that may increase a stated fee and the specif- 40 ic additional fees or range of possible additional fees when each factor 41 applies; and 42 (B) a copy of the most recent Consumer Bill of Rights Regarding Tax 43 Preparers published by the department pursuant to section three hundred 44 seventy-two of the general business law. 45 (3) A tax return preparer or facilitator who fails to comply with any 46 of the requirements of this subdivision must pay a penalty of up to five 47 hundred dollars. The penalty can be waived only for good cause shown by 48 the tax return preparer or facilitator. 49 § 4. The second subdivision (g) of section 32 of the tax law is relet- 50 tered subdivision (i). 51 § 5. This act shall take effect immediately; provided, however, that 52 paragraph (3) of subdivision (h) of section 32 of the tax law, as added 53 by section three of this act, shall take effect January 1, 2022. 54 PART TA. 3009--B 57 1 Intentionally Omitted 2 PART U 3 Intentionally Omitted 4 PART V 5 Section 1. This Part enacts into law components of legislation relat- 6 ing to the administration of the STAR program authorized by section 425 7 of the real property tax law and subsection (eee) of section 606 of the 8 tax law. Each component is wholly contained within a Subpart identified 9 as Subparts A through E. The effective date for each particular 10 provision contained within such Subpart is set forth in the last section 11 of such Subpart. Any provision in any section contained within a 12 Subpart, including the effective date of the Subpart, which makes refer- 13 ence to a section "of this act", when used in connection with that 14 particular component, shall be deemed to mean and refer to the corre- 15 sponding section of the Subpart in which it is found. Section three of 16 this Part sets forth the general effective date of this Part. 17 SUBPART A 18 Intentionally Omitted. 19 SUBPART B 20 Intentionally Omitted. 21 SUBPART C 22 Intentionally Omitted. 23 SUBPART D 24 Intentionally Omitted. 25 SUBPART E 26 Section 1. Paragraph 2 of subdivision w of section 233 of the real 27 property law is REPEALED. 28 § 2. Paragraph 3 of subdivision w of section 233 of the real property 29 law, as amended by section 18 of part B of chapter 389 of the laws of 30 1997, is amended to read as follows: 31 3. A manufactured home park owner or operator providing a reduction in 32 rent as required by paragraph one [or two] of this subdivision may 33 retain, in consideration for record keeping expenses, two percent of the 34 amount of such reduction. 35 § 3. The opening paragraph of paragraph 3-a of subdivision w of 36 section 233 of the real property law, as added by chapter 405 of the 37 laws of 2001, is amended to read as follows: 38 Any reduction required to be provided pursuant to paragraph one [or39two] of this subdivision shall be provided as follows: 40 § 4. Paragraph (l) of subdivision 2 of section 425 of the real proper- 41 ty tax law is amended by adding a new subparagraph (iv) to read as 42 follows:A. 3009--B 58 1 (iv) Beginning with assessment rolls used to levy school district 2 taxes for the two thousand twenty-two--two thousand twenty-three school 3 year, no exemption shall be granted pursuant to this section to a mobile 4 home that is described in this paragraph. Owners of such property may 5 claim the credit authorized by subsection (eee) of section six hundred 6 six of the tax law in the manner prescribed therein. Owners of such 7 property who are STAR exemption recipients on assessment rolls used to 8 levy school district taxes for the two thousand twenty-one--two thousand 9 twenty-two school year shall be automatically enrolled in and switched 10 to the STAR credit, beginning with assessment rolls used to levy school 11 district taxes for the two thousand twenty-two--two thousand twenty- 12 three school year, if their incomes do not exceed the limit applicable 13 to such credit. Each affected individual shall be notified of the switch 14 as soon as practicable. Each such notice shall also advise the individ- 15 ual either that the commissioner has determined that the individual is 16 eligible for the credit, or that the individual must furnish additional 17 information to enable the commissioner to determine the individual's 18 eligibility, as the case may be. In either case, once the individual 19 receives a STAR credit check and deposits or endorses it, he or she 20 shall be deemed to have consented to the switch and shall not be permit- 21 ted to switch back to the exemption. The transfer of property owners 22 between the STAR exemption and the STAR credit shall be made consistent 23 with subdivision seventeen of section four hundred twenty-five of this 24 chapter. 25 § 5. Subparagraph (B) of paragraph 6 of subsection (eee) of section 26 606 of the tax law is amended by adding a new clause (iii) to read as 27 follows: 28 (iii) Beginning with the two thousand twenty-two taxable year, to 29 receive the credit authorized by this subsection, an owner of a mobile 30 home described by clause (i) of this subparagraph shall register for 31 such credit in the manner prescribed by the commissioner. 32 § 6. This act shall take effect immediately; provided, however, that 33 the amendments to subdivision w of section 233 of the real property law 34 made by sections one, two and three of this act shall be applicable 35 beginning with assessment rolls used to levy school district taxes for 36 the 2022--2023 school year. 37 § 2. Severability clause. If any clause, sentence, paragraph, subdivi- 38 sion, section, item, subpart or part of this act shall be adjudged by 39 any court of competent jurisdiction to be invalid, such judgment shall 40 not affect, impair, or invalidate the remainder thereof, but shall be 41 confined in its operation to the clause, sentence, paragraph, subdivi- 42 sion, section, item, subpart or part thereof directly involved in the 43 controversy in which such judgment shall have been rendered. It is here- 44 by declared to be the intent of the legislature that this act would have 45 been enacted even if such invalid provisions had not been included here- 46 in. 47 § 3. This act shall take effect immediately, provided, however, that 48 the applicable effective date of Subparts A through E of this act shall 49 be as specifically set forth in the last section of such Subparts. 50 PART W 51 Intentionally Omitted 52 PART XA. 3009--B 59 1 Intentionally Omitted 2 PART Y 3 Section 1. Section 1367 of the racing, pari-mutuel wagering and breed- 4 ing law, as added by chapter 174 of the laws of 2013, paragraphs (b) and 5 (d) of subdivision 3 as amended by section 1 of part X of chapter 59 of 6 the laws of 2020, is amended to read as follows: 7 § 1367. Sports wagering. 1. As used in this section: 8 (a) "Affiliate" means any off-track betting corporation, franchised 9 corporation, or race track licensed pursuant to this chapter, an opera- 10 tor of video lottery gaming at Aqueduct licensed pursuant to section 11 sixteen hundred seventeen-a of the tax law, which has an affiliate 12 agreement with a casino pursuant to section thirteen hundred sixty-sev- 13 en-a of this title. Any professional sports stadium or arena may serve 14 as an affiliate; 15 (b) "Agent" means an entity that is party to a contract with a casino 16 authorized to operate a sports pool and is approved by the commission to 17 operate a sports pool on behalf of such casino; 18 (c) "Authorized sports bettor" means an individual who is physically 19 present in this state when placing a sports wager, who is not a prohib- 20 ited sports bettor, that participates in sports wagering offered by a 21 casino. All sports wagers placed in accordance with this section are 22 considered placed or otherwise made when received by the operator at the 23 licensed gaming facility, regardless of the authorized sports bettor's 24 physical location at the time the sports wager is initiated. The inter- 25 mediate routing of electronic data in connection with mobile sports 26 wagering shall not determine the location or locations in which a wager 27 is initiated, received or otherwise made; 28 (d) "Brand" means the name and logo on the interface of a mobile 29 application or internet website accessed via a mobile device or computer 30 which authorized sports bettors use to access a sports betting platform; 31 (e) "Casino" means a licensed gaming facility at which gambling is 32 conducted pursuant to the provisions of this article; 33 [(b)] (f) "Commission" means the commission established pursuant to 34 section one hundred two of this chapter; 35 [(c)] (g) "Collegiate sport or athletic event" means a sport or 36 athletic event offered or sponsored by or played in connection with a 37 public or private institution that offers educational services beyond 38 the secondary level; 39 [(d)] (h) "Covered persons" includes: athletes; players; umpires; 40 referees; officials; personnel associated with players, clubs, teams, 41 leagues, and athletic associations; medical professionals, including 42 athletic trainers who provide services to athletes and players; and the 43 family members and associates of these persons where required to serve 44 the purposes of this title; 45 (i) "Exchange wagering" means a form of wagering in which an author- 46 ized sports bettor, on the one hand, and one or more authorized sports 47 bettors, a casino or an agent or an operator, on the other hand place 48 identically opposing sports wagers on an exchange operated by a casino 49 or an agent or an operator; 50 (j) "Global risk management" means the direction, management, consul- 51 tation and/or instruction for purposes of managing risks associated with 52 sports wagering conducted pursuant to this section and includes the 53 setting and adjustment of betting lines, point spreads, or odds and 54 whether to place layoff bets as permitted by this section;A. 3009--B 60 1 (k) "High school sport or athletic event" means a sport or athletic 2 event offered or sponsored by or played in connection with a public or 3 private institution that offers education services at the secondary 4 level; 5 (l) "Horse racing event" means any sport or athletic event conducted 6 in New York state subject to the provisions of articles two, three, 7 four, five, six, nine, ten and eleven of this chapter, or any sport or 8 athletic event conducted outside of New York state, which if conducted 9 in New York state would be subject to the provisions of this chapter; 10 (m) "In-play sports wager" means a sports wager placed on a sports 11 event after the sports event has begun and before it ends; 12 (n) "Layoff bet" means a sports wager placed by a casino sports pool 13 with another casino sports pool; 14 (o) "Minor" means any person under the age of twenty-one years; 15 (p) "Mobile sports wagering platform" or "platform" means the combina- 16 tion of hardware, software, and data networks used to manage, adminis- 17 ter, or control sports wagering and any associated wagers accessible by 18 any electronic means including mobile applications and internet websites 19 accessed via a mobile device or computer; 20 (q) "Official league data" means statistics, results, outcomes, and 21 other data relating to a sporting event that have been obtained from the 22 relevant sports governing body that is headquartered in the United 23 States or an entity expressly authorized by the sports governing body to 24 provide such information to casinos; 25 (r) "Operator" means a casino which has elected to operate a sports 26 pool (or agent of such casino) or an Indian Tribe (or an agent of such 27 Indian Tribe) that has entered into a tribal-state gaming compact in 28 accordance with the Indian Gaming Regulatory Act 25 U.S.C. 2710, that is 29 in effect and has been ratified by the state and has entered into a 30 sports wagering agreement pursuant to section thirteen hundred sixty- 31 seven-a of this title; 32 (s) "Persons who present sporting contests" includes sports governing 33 bodies and associations, their members and affiliates, and other persons 34 who present sporting contests to the public; 35 [(e)] (t) "Professional sport or athletic event" means an event at 36 which two or more persons participate in sports or athletic events and 37 receive compensation in excess of actual expenses for their partic- 38 ipation in such event; 39 (u) "Prohibited conduct" means any statement, action, and other commu- 40 nication intended to influence, manipulate, or control a betting outcome 41 of a sporting contest or of any individual occurrence or performance in 42 a sporting contest in exchange for financial gain or to avoid financial 43 or physical harm. "Prohibited conduct" includes statements, actions, and 44 communications made to a covered person by a third party, such as a 45 family member or through social media; 46 (v) "Professional sports stadium or arena" means a stadium, ballpark, 47 or arena that is the permanent home of a professional sports team play- 48 ing at the highest professional level in its sport and has a seating 49 capacity for such contests exceeding fifteen thousand seats; 50 (w) "Prohibited sports bettor" means: 51 (i) any officer or employee of the commission; 52 (ii) any principal or key employee of a casino or operator, except as 53 may be permitted by the commission for good cause shown; 54 (iii) any casino gaming or non-gaming employee at the casino that 55 employs such person and at any operator that has an agreement with that 56 casino;A. 3009--B 61 1 (iv) any contractor, subcontractor, or consultant, or officer or 2 employee of a contractor, subcontractor, or consultant, of a casino if 3 as part of such person's employment such person is directly involved in 4 the operation or observation of sports wagering, or the processing of 5 sports wagering claims or payments; 6 (v) Any person subject to a contract with the commission if such 7 contract contains a provision prohibiting such person from participating 8 in sports wagering; 9 (vi) Any spouse, child, brother, sister or parent residing as a member 10 of the same household in the principal place of abode of any of the 11 foregoing persons at the same casino where the foregoing person is 12 prohibited from participating in sports wagering; 13 (vii) any individual with access to non-public confidential informa- 14 tion about sports wagering; 15 (viii) any amateur or professional athlete if the sports wager is 16 based on any sport or athletic event overseen by the athlete's sports 17 governing body; 18 (ix) any sports agent, owner or employee of a team, player and umpire 19 union personnel, and employee referee, coach or official of a sports 20 governing body, if the sports wager is based on any sport or athletic 21 event overseen by the individual's sports governing body; 22 (x) any individual placing a wager as an agent or proxy for another 23 person known to be a prohibited sports bettor; or 24 (xi) any minor; 25 [(f)] (x) "Prohibited sports event" means any collegiate sport or 26 athletic event that takes place in New York or a sport or athletic event 27 in which any New York college team participates regardless of where the 28 event takes place, or high school sport or athletic event; 29 [(g)] (y) "Registered sports governing body" means a sports governing 30 body that is headquartered in the United States and who has registered 31 with the commission to receive royalty fee revenue in such form as the 32 commission may require; 33 (z) "Sports event" means any professional sport or athletic event and 34 any collegiate sport or athletic event, except a prohibited sports event 35 or a horse racing event; 36 [(h)] (aa) "Sports governing body" means the organization that 37 prescribes final rules and enforces codes of conduct with respect to a 38 sporting event and participants therein; 39 (bb) "Sports pool" means the business of accepting wagers on any 40 sports event by any system or method of wagering; [and41(i)] (cc) "Sports wager" means cash or cash equivalent that is paid by 42 an authorized sports bettor to a casino to participate in sports wager- 43 ing offered by such casino; 44 (dd) "Sports wagering" means wagering on sporting events or any 45 portion thereof, or on the individual performance statistics of athletes 46 participating in a sporting event, or combination of sporting events, by 47 any system or method of wagering, including, but not limited to, in-per- 48 son communication and electronic communication through internet websites 49 accessed via a mobile device or computer and mobile device applications. 50 Any wager through electronic communication shall be deemed to take place 51 at the physical location of the server or other equipment used by an 52 operator to accept mobile sports wagering, regardless of the authorized 53 sports bettor's physical location within the state at the time the wager 54 is initiated. The term "sports wagering" shall include, but is not 55 limited to, single-game bets, teaser bets, parlays, over-under bets,A. 3009--B 62 1 money line, pools, exchange wagering, in-game wagering, in-play bets, 2 proposition bets and straight bets; 3 (ee) "Sports wagering gross revenue" means: (i) the amount equal to 4 the total of all sports wagers not attributable to prohibited sports 5 events that an operator collects from all players, less the total of all 6 sums not attributable to prohibited sports events paid out as winnings 7 to all sports bettors, however, that the total of all sums paid out as 8 winnings to sports bettors shall not include the cash equivalent value 9 of any merchandise or thing of value awarded as a prize, or (ii) in the 10 case of exchange wagering pursuant to this section, the commission on 11 winning sports wagers by authorized sports bettors retained by the oper- 12 ator. The issuance to or wagering by authorized sports bettors at a 13 casino of any promotional gaming credit shall not be taxable for the 14 purposes of determining sports wagering gross revenue; 15 (ff) "Sports wagering lounge" means an area wherein a sports pool is 16 operated; 17 (gg) "Tier one sports wager" means a sports wager that is determined 18 solely by the final score or final outcome of the sports event; 19 (hh) "Tier two sports wager" means an in-play sports wager that is not 20 a tier one sports wager; 21 (ii) "Tier three sports wager" means a sports wager that is neither a 22 tier one nor a tier two sports wager; and 23 (jj) "Indian Tribe" means an Indian Tribe (or an agent of such tribe) 24 that has entered into a tribal-state gaming compact in accordance with 25 the Indian Gaming Regulatory Act of 1988 (18 U.S.C. Sec. 1166 to 1168, 26 inclusive, and 25 U.S.C. Sec. 2701 et seq.) which has been ratified by 27 the state; 28 (kk) "Unusual betting activity" means abnormal betting activity exhib- 29 ited by patrons and deemed by the casino or operation, pursuant to rules 30 and regulations promulgated by the commission, as a potential indicator 31 of suspicious activity. Abnormal betting activity may include, but is 32 not limited to, the size of a patron's wager or increased betting volume 33 on a particular event or wager type; 34 (ll) "Suspicious betting activity" means unusual betting activity that 35 cannot be explained and is indicative of match fixing, the manipulation 36 of an event, misuse of inside information, or other prohibited activity; 37 and 38 (mm) "Independent integrity monitor" means an independent individual 39 or entity approved by the commission to receive reports of unusual 40 betting activity from a casino or operator for the purpose of assisting 41 in identifying suspicious betting activity. 42 2. [No gaming facility may conduct sports wagering until such time as43there has been a change in federal law authorizing such or upon a ruling44of a court of competent jurisdiction that such activity is lawful.453.] (a) In addition to authorized gaming activities, a [licensed46gaming facility] casino may [when authorized by subdivision two of this47section] operate a sports pool upon the approval of the commission and 48 in accordance with the provisions of this section and applicable regu- 49 lations promulgated pursuant to this article. The commission shall hear 50 and decide promptly and in reasonable order all applications for a 51 license to operate a sports pool, shall have the general responsibility 52 for the implementation of this section and shall have all other duties 53 specified in this section with regard to the operation of a sports pool. 54 The license to operate a sports pool shall be in addition to any other 55 license required to be issued to operate a [gaming facility] casino. No 56 license to operate a sports pool shall be issued by the commission toA. 3009--B 63 1 any entity unless it has established its financial stability, integrity 2 and responsibility and its good character, honesty and integrity. 3 No later than five years after the date of the issuance of a license 4 and every five years thereafter or within such lesser periods as the 5 commission may direct, a licensee shall submit to the commission such 6 documentation or information as the commission may by regulation 7 require, to demonstrate to the satisfaction of the executive director of 8 the commission that the licensee continues to meet the requirements of 9 the law and regulations. 10 (b) As a condition of licensure the commission shall require that each 11 operator authorized to conduct mobile sports wagering pay a one-time fee 12 of twelve million dollars. Such fee shall be paid within thirty days of 13 gaming commission approval prior to license issuance and deposited into 14 the commercial gaming revenue fund established pursuant to section thir- 15 teen hundred fifty-two of this article. 16 (c) A sports pool shall be operated in a sports wagering lounge 17 located at a casino. The lounge shall conform to all requirements 18 concerning square footage, design, equipment, security measures and 19 related matters which the commission shall by regulation prescribe. 20 Provided, however, the commission may also approve additional locations 21 for a sports pool within the casino, in areas that have been approved by 22 the commission for the conduct of other gaming, to be operated in a 23 manner and methodology as regulation shall prescribe. 24 [(c)] (d) The operator of a sports pool shall establish or display the 25 odds at which wagers may be placed on sports events. 26 [(d)] (e) An operator shall accept wagers on sports events only from 27 persons physically present in the sports wagering lounge, through mobile 28 sports wagering offered pursuant to section thirteen hundred sixty-sev- 29 en-a of this title, or any additional locations for a sports pool within 30 the casino, approved by the gaming commission. A person placing a wager 31 shall be at least twenty-one years of age. 32 [(e)] (f) An operator may also accept layoff bets as long as the 33 authorized sports pool places such wagers with another authorized sports 34 pool or pools in accordance with regulations of the commission. A sports 35 pool that places a layoff bet shall inform the sports pool accepting the 36 wager that the wager is being placed by a sports pool and shall disclose 37 its identity. 38 (g) An operator may utilize global risk management pursuant to the 39 approval of the commission. 40 (h) An operator shall not admit into the sports wagering lounge, or 41 accept wagers from, any person whose name appears on the exclusion list. 42 [(f)] (i) The holder of a license to operate a sports pool may 43 contract with an [entity] agent to conduct any or all aspects of that 44 operation, or the operation of mobile sports wagering offered pursuant 45 to section thirteen hundred sixty-seven-a of this title, including but 46 not limited to brand, marketing and customer service, in accordance with 47 the regulations of the commission. [That entity] Each agent shall obtain 48 a license as a casino vendor enterprise prior to the execution of any 49 such contract, and such license shall be issued pursuant to the 50 provisions of section one thousand three hundred twenty-seven of this 51 article and in accordance with the regulations promulgated by the 52 commission. 53 [(g)] (j) If any provision of this article or its application to any 54 person or circumstance is held invalid, the invalidity shall not affect 55 other provisions or applications of this article which can be givenA. 3009--B 64 1 effect without the invalid provision or application, and to this end the 2 provisions of this article are severable. 3 [4.] 3. (a) All persons employed directly in wagering-related activ- 4 ities conducted within a sports wagering lounge shall be licensed as a 5 casino key employee or registered as a gaming employee, as determined by 6 the commission. All other employees who are working in the sports wager- 7 ing lounge may be required to be registered, if appropriate, in accord- 8 ance with regulations of the commission. 9 (b) Each operator of a sports pool shall designate one or more casino 10 key employees who shall be responsible for the operation of the sports 11 pool. At least one such casino key employee shall be on the premises 12 whenever sports wagering is conducted. 13 [5.] 4. Except as otherwise provided by this article, the commission 14 shall have the authority to regulate sports pools and the conduct of 15 sports wagering under this article to the same extent that the commis- 16 sion regulates other gaming. No casino shall be authorized to operate a 17 sports pool unless it has produced information, documentation, and 18 assurances concerning its financial background and resources, including 19 cash reserves, that are sufficient to demonstrate that it has the finan- 20 cial stability, integrity, and responsibility to operate a sports pool. 21 In developing rules and regulations applicable to sports wagering, the 22 commission shall examine the regulations implemented in other states 23 where sports wagering is conducted and shall, as far as practicable, 24 adopt a similar regulatory framework. The commission shall promulgate 25 regulations necessary to carry out the provisions of this section, 26 including, but not limited to, regulations governing the: 27 (a) amount of cash reserves to be maintained by operators to cover 28 winning wagers; 29 (b) acceptance of wagers on a series of sports events; 30 (c) maximum wagers which may be accepted by an operator from any one 31 patron on any one sports event; 32 (d) type of wagering tickets which may be used; 33 (e) method of issuing tickets; 34 (f) method of accounting to be used by operators; 35 (g) types of records which shall be kept; 36 (h) use of credit and checks by [patrons] authorized sports bettors; 37 (i) the process by which a casino may place a layoff bet; 38 (j) the use of global risk management; 39 (k) type of system for wagering; and 40 [(j)] (l) protections for a person placing a wager. 41 [6.] 5. Each operator shall adopt comprehensive house rules governing 42 sports wagering transactions with its [patrons] authorized sports 43 bettors. The rules shall specify the amounts to be paid on winning 44 wagers and the effect of schedule changes. The house rules, together 45 with any other information the commission deems appropriate, shall be 46 conspicuously displayed in the sports wagering lounge and included in 47 the terms and conditions of the account wagering system, and copies 48 shall be made readily available to [patrons] authorized sports bettors. 49 6. (a) Each casino that offers sports wagering shall annually submit a 50 report to the commission no later than the twenty-eighth of February of 51 each year, which shall include the following information: 52 (i) the total amount of sports wagers received from authorized sports 53 bettors; 54 (ii) the total amount of prizes awarded to authorized sports bettors; 55 (iii) the total amount of sports wagering gross revenue received by 56 the casino;A. 3009--B 65 1 (iv) the total amount contributed in sports betting royalty revenue 2 pursuant to subdivision eight of this section; 3 (v) the total amount of wagers received on each sports governing 4 body's sporting events; 5 (vi) the number of accounts held by authorized sports bettors; 6 (vii) the total number of new accounts established in the preceding 7 year, as well as the total number of accounts permanently closed in the 8 preceding year; 9 (viii) the total number of authorized sports bettors that requested to 10 exclude themselves from sports wagering; and 11 (ix) any additional information that the commission deems necessary to 12 carry out the provisions of this article. 13 (b) Upon the submission of such annual report, to such extent that the 14 commission deems it to be in the public interest, the commission shall 15 be authorized to conduct a financial audit of any casino, at any time, 16 to ensure compliance with this article. 17 (c) The commission shall annually publish a report based on the aggre- 18 gate information provided by all casinos pursuant to paragraph (a) of 19 this subdivision, which shall be published on the commission's website 20 no later than one hundred eighty days after the deadline for the 21 submission of individual reports as specified in such paragraph (a). 22 7. (a) Within thirty days of the end of each calendar quarter, a casi- 23 no offering sports wagering shall remit to the commission a sports 24 wagering royalty fee of one-fifth (.20) of one percent of the amount 25 wagered on sports events conducted by registered sports governing 26 bodies. The fee shall be remitted on a form as the commission may 27 require, on which the casino shall identify the percentage of wagering 28 during the reporting period attributable to each registered sport 29 governing body's sports events. 30 (b) No later than the thirtieth of April of each year, a registered 31 sports governing body may submit a claim for disbursement of the royalty 32 fee funds remitted by casinos in the previous calendar year on their 33 respective sports events. Within thirty days of submitting its claim for 34 disbursement, the registered sports governing body shall meet with the 35 commission to provide the commission with evidence of policies, proce- 36 dures and training programs it has implemented to protect the integrity 37 of its sports events. 38 (c) Within thirty days of its meeting with the registered sports 39 governing body, the commission shall approve a timely claim for 40 disbursement. 41 (d) (i) Persons who present sporting contests shall have authority to 42 remove spectators and others from any facility for violation any appli- 43 cable codes of conduct, and to deny persons access to all facilities 44 they control, to revoke season tickets or comparable licenses, and to 45 share information about such persons with others who present sporting 46 contests and with the appropriate jurisdictions' law enforcement author- 47 ities. 48 (ii) Persons who present sporting contests shall provide notice to the 49 general public and those who attend sporting contests or visit their 50 facilities of any applicable codes of conduct and the potential penal- 51 ties for violating such codes. 52 8. For the privilege of conducting sports wagering in the state, casi- 53 nos shall pay a tax equivalent to eight and one-half percent of their 54 sports wagering gross revenue, excluding sports wagering gross revenue 55 attributed to mobile sports wagering offered pursuant to section thir- 56 teen hundred sixty-seven-a of this title. Casinos shall pay a tax equiv-A. 3009--B 66 1 alent of twelve percent of their sports wagering gross revenue attri- 2 buted to mobile sports wagering offered pursuant to section thirteen 3 hundred sixty-seven-a of this title. 4 9. The commission shall pay into the commercial gaming revenue fund 5 established pursuant to section ninety-seven-nnnn of the state finance 6 law eighty-five percent of the state tax imposed by this section; any 7 interest and penalties imposed by the commission relating to those 8 taxes; all penalties levied and collected by the commission; and the 9 appropriate funds, cash or prizes forfeited from sports wagering. The 10 commission shall pay into the commercial gaming fund five percent of the 11 state tax imposed by this section to be distributed for problem gambling 12 education and treatment purposes pursuant to paragraph a of subdivision 13 four of section ninety-seven-nnnn of the state finance law. The commis- 14 sion shall pay five percent of the state tax imposed by this section to 15 the urban development corporation to establish and administer a youth 16 sports activities and education grant program for the purpose of provid- 17 ing sports programs to underserved youth. Applications for such funding 18 shall be made by eligible not-for-profit sports-based youth development 19 organizations in accordance with requirements established by the corpo- 20 ration. The commission shall pay into the commercial gaming fund five 21 percent of the state tax imposed by this section to be distributed in 22 the same formula as market origin credits pursuant to section one 23 hundred fifteen-b of this chapter. The commission shall require at least 24 monthly deposits by the casino of any payments pursuant to subdivision 25 eight of this section, at such times, under such conditions, and in such 26 depositories as shall be prescribed by the state comptroller. The depos- 27 its shall be deposited to the credit of the state commercial gaming 28 revenue fund. The commission shall require a monthly report and recon- 29 ciliation statement to be filed with it on or before the tenth day of 30 each month, with respect to gross revenues and deposits received and 31 made, respectively, during the preceding month. 32 10. The commission may perform audits of the books and records of a 33 casino, at such times and intervals as it deems appropriate, for the 34 purpose of determining the sufficiency of tax payments. If a return 35 required with regard to obligations imposed is not filed, or if a return 36 when filed or is determined by the commission to be incorrect or insuf- 37 ficient with or without an audit, the amount of tax due shall be deter- 38 mined by the commission. Notice of such determination shall be given to 39 the casino liable for the payment of the tax. Such determination shall 40 finally and irrevocably fix the tax unless the casino against whom it is 41 assessed, within thirty days after receiving notice of such determi- 42 nation, shall apply to the commission for a hearing in accordance with 43 the regulations of the commission. 44 11. Nothing in this section shall apply to interactive fantasy sports 45 offered pursuant to article fourteen of this chapter. Nothing in this 46 section authorizes any entity that conducts interactive fantasy sports 47 offered pursuant to article fourteen of this chapter to conduct sports 48 wagering unless it separately qualifies for, and obtains, authorization 49 pursuant to this section. 50 12. A casino that is also licensed under article three of this chap- 51 ter, and must maintain racing pursuant to paragraph (b) of subdivision 52 one of section thirteen hundred fifty-five of this article, shall be 53 allowed to offer pari-mutuel wagering on horse racing events in accord- 54 ance with their license under article three of this chapter. Notwith- 55 standing subparagraph (ii) of paragraph c of subdivision two of section 56 one thousand eight of this chapter, a casino located in the city ofA. 3009--B 67 1 Schenectady shall be allowed to offer pari-mutuel wagering on horse 2 racing events, provided such wagering is conducted by the regional off- 3 track betting corporation in such region as the casino is located. Any 4 other casino shall be allowed to offer pari-mutuel wagering on horse 5 racing events, provided such wagering is conducted by the regional off- 6 track betting corporation in such region as the casino is located. Any 7 physical location where pari-mutuel wagering on horse racing events is 8 offered by a casino and conducted by a regional off-track betting corpo- 9 ration in accordance with this subdivision shall be deemed to be a 10 branch location of the regional off-track betting corporation in accord- 11 ance with section one thousand eight of this chapter. Mobile sports 12 betting kiosks located on the premises of affiliates in accordance with 13 paragraph (d) of subdivision five of section thirteen hundred sixty-sev- 14 en-a of this title shall not be allowed to offer pari-mutuel wagering on 15 horse racing events. 16 13. A sports governing body may notify the commission that it desires 17 to restrict, limit, or exclude wagering on its sporting events by 18 providing notice in the form and manner as the commission may require. 19 Upon receiving such notice, the commission shall review the request in 20 good faith, seek input from the casinos on such a request, and if the 21 commission deems it appropriate, promulgate regulations to restrict such 22 sports wagering. If the commission denies a request, the sports govern- 23 ing body shall be afforded notice and the right to be heard and offer 24 proof in opposition to such determination in accordance with the regu- 25 lations of the commission. Offering or taking wagers contrary to 26 restrictions promulgated by the commission is a violation of this 27 section. In the event that the request is in relation to an emergency 28 situation, the executive director of the commission may temporarily 29 prohibit the specific wager in question until the commission has the 30 opportunity to issue temporary regulations addressing the issue. 31 14. (a) The commission shall designate the division of the state 32 police to have primary responsibility for assisting the commission in 33 conducting, investigations into abnormal betting activity, match fixing, 34 and other conduct that corrupts a betting outcome of a sporting event or 35 events for purposes of financial gain. 36 (b) Casinos shall maintain records of sports wagering operations in 37 accordance with regulations promulgated by the commission. These regu- 38 lations shall, at a minimum, require a casino to adopt procedures to 39 obtain personally identifiable information from any individual who plac- 40 es any single wager in an amount of ten thousand dollars or greater. 41 (c) The commission shall cooperate with a sports governing body and 42 casinos to ensure the timely, efficient, and accurate sharing of infor- 43 mation. 44 (d) The commission and casinos shall cooperate with investigations 45 conducted by sports governing bodies or law enforcement agencies, 46 including but not limited to providing or facilitating the provision of 47 account-level betting information and audio or video files relating to 48 persons placing wagers; provided, however, that the casino be required 49 to share any personally identifiable information of an authorized sports 50 bettor with a sports governing body only pursuant to an order to do so 51 by the commission or a law enforcement agency or court of competent 52 jurisdiction. 53 (e) Casinos and operators shall promptly report to the commission or 54 third party integrity monitoring provider approved by the commission, as 55 applicable and in accordance with rules and regulations established by 56 the commission, any information relating to:A. 3009--B 68 1 (i) criminal or disciplinary proceedings commenced against the casino 2 in connection with its operations; 3 (ii) abnormal betting activity or patterns that may indicate a concern 4 with the integrity of a sporting event or events; 5 (iii) any potential breach of the relevant sports governing body's 6 internal rules and codes of conduct pertaining to sports wagering, as 7 they have been provided by the sports governing body to the casino or 8 the operator; 9 (iv) any other conduct that corrupts a betting outcome of a sporting 10 event or events for purposes of financial gain, including match fixing; 11 and 12 (v) suspicious or illegal wagering activities, including use of funds 13 derived from illegal activity, wagers to conceal or launder funds 14 derived from illegal activity, using agents to place wagers, using 15 confidential non-public information, and using false identification. 16 The commission shall also promptly report information relating to 17 conduct described in subparagraphs (ii), (iii) and (iv) of this para- 18 graph to the relevant sports governing body. 19 (vi) The commission shall be authorized to share any information under 20 this section with any law enforcement entity, team, sports governing 21 body, or regulatory agency the division deems appropriate. Such sharing 22 of information may include, but is not limited to, account level betting 23 information and any audio or video files related to the investigation. 24 Provided, however, the casino or operators may only be required to share 25 any personally identifiable information of an authorized sports bettor 26 with a sports governing body only pursuant to an order to do so by the 27 commission, a law enforcement agency or a court of competent jurisdic- 28 tion. 29 (f) The confidentiality of information shared between a sports govern- 30 ing body and a casino or operator shall be maintained pursuant to all 31 applicable data privacy laws, unless disclosure is required by this 32 section, the commission, other law, or court order. Furthermore, the 33 information shared between a sports governing body, a casino, an opera- 34 tor or any other party pursuant to this act may not be used for business 35 or marketing purposes by the recipient without the express written 36 approval of the party that provides such information. 37 (g) The commission, by regulation, may authorize and promulgate any 38 rules necessary to implement agreements with other states, or authorized 39 agencies thereof to enable the sharing of information to facilitate 40 integrity monitoring and the conduct of investigations into abnormal 41 betting activity, match fixing, and other conduct that corrupts a 42 betting outcome of a sporting event or events for purposes of financial 43 gain. 44 (h) The commission shall study the potential for the creation of an 45 interstate database of all sports wagering information for the purpose 46 of integrity monitoring, and shall create a final report regarding all 47 findings and recommendations to be delivered upon completion of all 48 objectives described herein, but in no event later than March first, two 49 thousand twenty-two, to the governor, the speaker of the assembly and 50 the temporary president of the senate. 51 (i) The commission shall investigate all reasonable allegations of 52 prohibited conduct and refer any allegations it deems credible to the 53 appropriate law enforcement entity. 54 (j) Any person who is (i) an athlete, coach, referee, director of a 55 sports governing body or any of its member teams, a player or other 56 personnel member, in or on any sports event overseen by that person'sA. 3009--B 69 1 sports governing body, (ii) holding a position of authority over the 2 participants in a sporting contest, including but not limited to coach- 3 es, managers, handlers, athletic trainers, or (iii) a person with access 4 to certain types of non-public information on any sports event overseen 5 by that person's sports governing body, shall not be permitted to place 6 a wager on a sports event that is overseen by that person's sports 7 governing body so long as that person has been identified as a prohibit- 8 ed sports bettor in any lists provided by the sports governing body to 9 the commission, casinos, and operators. Any person who knowingly 10 violates this paragraph shall be liable for a civil penalty of not more 11 than one thousand dollars. 12 (k) Casinos and operators shall adopt procedures to prevent persons 13 from wagering on sports events who are prohibited from placing sports 14 wagers. A casino or operator shall not accept wagers from any person: 15 (i) whose name appears on the exclusion list maintained by the commis- 16 sion and provided to the casino or operator; 17 (ii) whose name appears on any self-exclusion list maintained by the 18 commission and provided to the casino or operator; 19 (iii) who is the operator, director, officer, owner, or employee of 20 the operator or casino or any relative thereof living in the same house- 21 hold as such individual; 22 (iv) who has been identified in a list provided by the sports govern- 23 ing body to the commission and casino or operator, that identifies the 24 individual by such personally identifiable information as specified by 25 rules and regulations promulgated by the commission; 26 (v) who is an agent or proxy for any other person; or 27 (vi) who has identified themselves to the operator as a prohibited 28 sports pool participant. 29 (l) The commission shall establish a hotline or other method of commu- 30 nication that allows any person to confidentially report information 31 about prohibited conduct to the commission. The identity of any person 32 reporting prohibited conduct to the commission shall remain confidential 33 unless that person authorizes disclosure of his or her identity or until 34 such time as the allegation of prohibited conduct is referred to law 35 enforcement. 36 15. (a) Casinos shall use whatever data source they deem appropriate 37 for determining the result of sports wagering involving tier one sports 38 wagers. 39 (b) Casinos shall only use official league data in all sports wagering 40 involving tier two sports wagers, if the relevant sports governing body 41 is headquartered in the United States, possesses a feed of official 42 league data, and makes such feed available for purchase by the casinos 43 on commercially reasonable terms as determined by the commission. 44 (c) A sports governing body may notify the commission that it desires 45 to require casinos to use official league data in sports wagering 46 involving specific tier three sports wagers by providing notice in the 47 form and manner as the commission may require. Upon receiving such 48 notice, the commission shall review the request, seek input from the 49 casinos on such a request, and if the commission deems it appropriate, 50 promulgate regulations to require casinos to use official league data on 51 sports wagering involving such tier three sports wagers if the relevant 52 sports governing body possesses a feed of official league data, and 53 makes such feed available for purchase by the casinos on commercially 54 reasonable terms as determined by the commission. 55 (d) When determining whether or not a supplier of official league data 56 is offering commercially reasonable terms, the commission shall considerA. 3009--B 70 1 the amount charged by the supplier of official league data to gaming 2 operators in other jurisdictions. This information shall be provided to 3 the commission by the supplier of official league data upon request of 4 the commission. Any entity providing data to a casino for the purpose of 5 tier two sports wagers shall obtain a license as a casino vendor enter- 6 prise and such license shall be issued pursuant to the provisions of 7 section thirteen hundred twenty-seven of this article and in accordance 8 with the regulations promulgated by the commission. 9 (e) No casino shall enter into an agreement with a sports governing 10 body or an entity expressly authorized to distribute official league 11 data to be the exclusive recipient of their official league data. 12 (f) The commission shall promulgate regulations to allow an authorized 13 sports bettor to file a complaint alleging an underpayment or non-pay- 14 ment of a winning sports wager. Any such regulations shall provide that 15 the commission utilize the statistics, results, outcomes, and other data 16 relating to a sporting event that have been obtained from the relevant 17 sports governing body in determining the validity of such claim. 18 16. A casino shall not permit sports wagering by anyone they know, or 19 should have known, to be a prohibited sports bettor. 20 17. Sports wagering conducted pursuant to the provisions of this 21 section is hereby authorized. 22 18. The commission shall promulgate rules that require an operator to 23 implement responsible gaming programs that include comprehensive employ- 24 ee trainings on responding to circumstances in which individuals present 25 signs of a gambling addiction and requirements for casinos and operators 26 under section thirteen hundred sixty-seven-a of this title to assess, 27 prevent, and address problem gaming by users under the age of thirty. 28 The commission shall establish a hotline or other method of communi- 29 cation that will allow any person to confidentially report information 30 about prohibited conduct to the commission. The commission shall promul- 31 gate rules governing the investigation and resolution of a charge of any 32 person purported to have engaged in prohibited conduct. 33 19. The conduct of sports wagering in violation of this section is 34 prohibited. 35 20. (a) In addition to any criminal penalties provided for under arti- 36 cle two hundred twenty-five of the penal law, any person, firm, corpo- 37 ration, association, agent, or employee, who is not authorized to offer 38 sports wagering under this section or section thirteen hundred sixty- 39 seven-a of this title, and who knowingly offers or attempts to offer 40 sports wagering or mobile sports wagering in New York shall be liable 41 for a civil penalty of not more than one hundred thousand dollars for 42 each violation, not to exceed five million dollars for violations aris- 43 ing out of the same transaction or occurrence, which shall accrue to the 44 state and may be recovered in a civil action brought by the commission. 45 (b) Any person, firm, corporation, association, agent, or employee who 46 knowingly violates any procedure implemented under this section, or 47 section thirteen hundred sixty-seven-a of this title, shall be liable 48 for a civil penalty of not more than five thousand dollars for each 49 violation, not to exceed fifty thousand dollars for violations arising 50 out of the same transaction or occurrence, which shall accrue to the 51 state and may be recovered in a civil action brought by the commission. 52 § 2. The racing, pari-mutuel wagering and breeding law is amended by 53 adding a new section 1367-a to read as follows: 54 § 1367-a. Mobile sports wagering. 1. (a) Except as provided in this 55 subdivision, the terms in this section shall have the same meanings asA. 3009--B 71 1 such terms are defined in subdivision one of section thirteen hundred 2 sixty-seven of this title. 3 (b) "Operator" for purposes of this section, means a casino which has 4 elected to offer a mobile sports wagering platform, an Indian Tribe (or 5 agent of such Indian Tribe) that has entered into a tribal-state gaming 6 compact in accordance with the Indian Gaming Regulatory Act, 25 U.S.C. 7 2710, that is in effect and has been ratified by the state and has 8 entered into a sports wagering agreement to operate with the commission 9 pursuant to this section, or the agent of such licensed gaming facility 10 or such Indian Tribe. 11 2. (a) No casino shall administer, manage, or otherwise make available 12 a mobile sports wagering platform to persons located in New York state 13 unless registered with the commission pursuant to this section. A casino 14 may use up to two mobile sports wagering platforms and brands provided 15 that such platforms and brands have been reviewed and approved by the 16 commission. A casino may contract with up to two independent operators 17 to provide its mobile sports wagering platforms. An independent operator 18 may display its brand on the platform in addition to the casino's brand. 19 (b) Registrations issued by the commission shall remain in effect for 20 five years. The commission shall establish a process for renewal. 21 (c) The commission shall publish a list of all operators and casinos 22 registered to offer mobile sports wagering in New York state pursuant to 23 this section on the commission's website for public use. 24 3. In the event that a casino contracts with an operator to provide 25 its mobile sports wagering platform and brand, such operator shall 26 obtain a license as a casino vendor enterprise prior to the execution of 27 any such contract, and such license shall be issued pursuant to the 28 provisions of section thirteen hundred twenty-seven of this article and 29 in accordance with the regulations promulgated by the commission. 30 3-a. (a) As a condition of registration and operation of mobile sports 31 wagering, each casino shall agree, upon a current or any future request 32 of an Indian Tribe that has not entered into an agreement for mobile 33 sports wagering with another casino, to provide a site for a mobile 34 sports wagering server and related equipment for the Indian Tribe as 35 directed by the commission, at no cost to the Indian Tribe except the 36 direct and actual cost of hosting the server or other equipment used by 37 the Indian Tribe as determined by the commission. 38 (b) As a condition of registration as an operator in New York state, 39 an Indian Tribe shall enter into an agreement with the commission with 40 respect to mobile sports wagering: 41 (i) To follow the requirements imposed on casinos and operators under 42 this section and section thirteen hundred sixty-seven of this title with 43 respect to the Indian Tribe's mobile sports wagering; to adhere to the 44 regulations promulgated by the commission pursuant to this section with 45 respect to mobile sports wagering, and to submit to the commission's 46 enforcement of this section and section thirteen hundred sixty-seven of 47 this title and regulations promulgated thereunder with respect to mobile 48 sports wagering, including by waiving tribal sovereign immunity for the 49 sole and limited purpose of such enforcement. Nothing herein shall be 50 construed as requiring an Indian Tribe's agreement to adhere to the 51 requirements of section thirteen hundred sixty-seven of this title for 52 gaming conducted on tribal lands as a condition of offering mobile 53 sports wagering under this section; 54 (ii) To waive the Indian Tribe's exclusive geographic right to offer 55 and conduct mobile sports wagering, but not otherwise;A. 3009--B 72 1 (iii) To remit payment to the state equal to tax on sports wagering 2 revenue imposed under section thirteen hundred sixty-seven of this title 3 with respect to mobile sports wagering; 4 (iv) Not to offer or to conduct mobile gaming other than mobile sports 5 wagering pursuant to this section unless such mobile gaming is otherwise 6 authorized by state or federal law; and 7 (v) To locate the server or other equipment used by the Indian Tribe 8 or its agent to accept mobile sports wagering at a casino as defined in 9 paragraph (e) of subdivision one of section thirteen hundred sixty-seven 10 of this title that has applied for and is eligible to register as an 11 operator of mobile sports wagering pursuant to this section and to pay 12 the actual cost of hosting the server or other equipment as determined 13 by the commission. 14 (c) All agreements entered into casinos and Indian Tribes with respect 15 to hosting mobile sports wagering platforms for an Indian Tribe: 16 (i) Must be approved by the commission prior to taking effect and 17 before registration of the casino or Indian Tribe as an operator under 18 this section; 19 (ii) Must provide that the Indian Tribe may, at its sole discretion, 20 terminate the agreement and all commitments, undertakings and waivers 21 made by the Indian Tribe thereunder, except that the Indian Tribe's 22 waiver of its exclusive geographic right to offer and conduct mobile 23 sports wagering shall survive the termination of the agreement; 24 (iii) Shall be limited in applicability solely to the Indian Tribe's 25 operation of mobile sports betting and shall not extend to any other 26 operation or activity of the Indian Tribe; and 27 (iv) Shall not create any rights or privileges to any third party who 28 is not a party to the agreement, except that the commission shall have 29 the power to enforce the agreement including by revoking or suspending 30 the registration of a party that fails to comply with its obligations 31 under the agreement. 32 (d) No mobile sports wagering may be conducted within an Indian 33 Tribe's exclusive geographic area unless the Indian Tribe with exclusive 34 geographic right to that area is registered as an operator under this 35 section. Operators shall use geo-location and geo-fencing technology to 36 ensure that mobile sports wagering is not available to persons who are 37 physically located in an Indian Tribe's exclusive geographic area, 38 unless the Indian Tribe with exclusive geographic right to that area is 39 registered as an operator under this section. 40 3-b. (a) The commission shall promulgate regulations to implement the 41 provisions of this section, including: 42 (i) the development of the initial form of the application for regis- 43 tration; 44 (ii) responsible protections with regard to compulsive play safeguards 45 for fair play; 46 (iii) requiring that operators adopt controls to prevent minors from 47 creating accounts and placing wagers; 48 (iv) requiring that operators adopt controls to maintain the efficien- 49 cy of self-exclusion limits; and 50 (v) requiring that operators utilize commercially reasonable techno- 51 logical means of verifying account holders' identities. 52 (b) The commission shall prescribe the initial form of the application 53 for registration, for operators, which shall require, but not be limited 54 to: 55 (i) the full name and principal address of the operator;A. 3009--B 73 1 (ii) if a corporation, the name of the state in which incorporated and 2 the full names and addresses of any partner, officer, director, share- 3 holder holding ten percent or more equity, and ultimate equitable 4 owners; 5 (iii) if a business entity other than a corporation, the full names 6 and addresses of the principals, partners, shareholders holding five 7 percent or more equity, and ultimate equitable owners; 8 (iv) whether such corporation or entity files information and reports 9 with the United States Securities and Exchange Commission as required by 10 section thirteen of the Securities Exchange Act of 1934, 15 U.S.C. §§ 11 78a-78kk; or whether the securities of the corporation or entity are 12 regularly traded on an established securities market in the United 13 States; 14 (v) the type and estimated number of contests to be conducted annual- 15 ly; and 16 (vi) a statement of the assets and liabilities of the operator. 17 (c) The commission may require the full names and addresses of the 18 officers and directors of any creditor of the operator, and of those 19 stockholders who hold more than ten percent of the stock of the credi- 20 tor. 21 (d) Upon receipt of an application for registration for each individ- 22 ual listed on such application as an officer or director, the commission 23 shall submit to the division of criminal justice services a set of fing- 24 erprints, and the division of criminal justice services processing fee 25 imposed pursuant to subdivision eight-a of section eight hundred thir- 26 ty-seven of the executive law and any fee imposed by the federal bureau 27 of investigation. Upon receipt of the fingerprints, the division of 28 criminal justice services shall promptly forward a set of the individ- 29 ual's fingerprints to the federal bureau of investigation for the 30 purpose of a nationwide criminal history record check to determine 31 whether such individual has been convicted of a criminal offense in any 32 state other than New York or in a federal jurisdiction. The division of 33 criminal justice services shall promptly provide the requested criminal 34 history information to the commission. For the purposes of this section, 35 the term "criminal history information" shall mean a record of all 36 convictions of crimes and any pending criminal charges maintained on an 37 individual by the division of criminal justice services and the federal 38 bureau of investigation. All such criminal history information sent to 39 the commission pursuant to this subdivision shall be confidential and 40 shall not be published or in any way disclosed to persons other than the 41 commission, unless otherwise authorized by law. 42 (e) Upon receipt of criminal history information pursuant to paragraph 43 (d) of this subdivision, the commission shall make a determination to 44 approve or deny an application for registration; provided, however, that 45 before making a determination on such application, the commission shall 46 provide the subject of the record with a copy of such criminal history 47 information and a copy of article twenty-three-A of the correction law 48 and inform such prospective applicant seeking to be credentialed of his 49 or her right to seek correction of any incorrect information contained 50 in such criminal history information pursuant to the regulations and 51 procedures established by the division of criminal justice services. 52 The commission may deny any application for registration, or suspend, 53 refuse to renew, or revoke any existing registration issued pursuant to 54 this article, upon the finding that the operator or registrant, or any 55 partner, officer, director, or shareholder:A. 3009--B 74 1 (i) has knowingly made a false statement of material fact or has 2 deliberately failed to disclose any material information required by the 3 commission; 4 (ii) has had a gaming registration or license denied, suspended, or 5 revoked in any other state or country for just cause; 6 (iii) has legally defaulted in the payment of any substantial finan- 7 cial obligation or debt due to any state or political subdivision; or 8 (iv) has at any time knowingly failed in an important respect to 9 comply with any requirement outlined in this section, any other 10 provision of this article, any regulations promulgated by the commission 11 or any additional requirements of the commission. 12 (f) All determinations to approve or deny an application pursuant to 13 this article shall be performed in a manner consistent with subdivision 14 sixteen of section two hundred ninety-six of the executive law and arti- 15 cle twenty-three-A of the correction law. When the commission denies an 16 application, the operator shall be afforded notice and the right to be 17 heard and offer proof in opposition to such determination in accordance 18 with the regulations of the commission. 19 4. (a) As a condition of registration in New York state, each operator 20 shall implement the following measures: 21 (i) limit each authorized sports bettor to one active and continuously 22 used account on their platform, and prevent anyone they know, or should 23 have known to be a prohibited sports bettor from maintaining accounts or 24 participating in any sports wagering offered by such operator; 25 (ii) adopt appropriate safeguards to ensure, to a reasonable degree of 26 certainty, that authorized sports bettors are physically located within 27 the state when engaging in mobile sports betting; 28 (iii) prohibit minors from participating in any sports wagering, which 29 includes: 30 (1) if an operator becomes or is made aware that a minor has created 31 an account, or accessed the account of another, such operator shall 32 promptly, within no more than two business days, refund any deposit 33 received from the minor, whether or not the minor has engaged in or 34 attempted to engage in sports wagering; provided, however, that any 35 refund may be offset by any prizes already awarded; 36 (2) each operator shall provide parental control procedures to allow 37 parents or guardians to exclude minors from access to any sports wager- 38 ing or platform. Such procedures shall include a toll-free number to 39 call for help in establishing such parental controls; and 40 (3) each operator shall take appropriate steps to confirm that an 41 individual opening an account is not a minor; 42 (iv) when referencing the chances or likelihood of winning in adver- 43 tisements or upon placement of a sports wager, make clear and conspicu- 44 ous statements that are not inaccurate or misleading concerning the 45 chances of winning and the number of winners; 46 (v) enable authorized sports bettors to exclude themselves from sports 47 wagering and take reasonable steps to prevent such bettors from engaging 48 in sports wagering from which they have excluded themselves; 49 (vi) permit any authorized sports bettor to permanently close an 50 account registered to such bettor, on any and all platforms supported by 51 such operator, at any time and for any reason; 52 (vii) offer introductory procedures for authorized sports bettors, 53 that shall be prominently displayed on the main page of such operator 54 platform, that explain sports wagering; 55 (viii) implement measures to protect the privacy and online security 56 of authorized sports bettors and their accounts;A. 3009--B 75 1 (ix) offer all authorized sports bettors access to his or her account 2 history and account details; 3 (x) ensure authorized sports bettors' funds are protected upon deposit 4 and segregated from the operating funds of such operator and otherwise 5 protected from corporate insolvency, financial risk, or criminal or 6 civil actions against such operator; 7 (xi) list on each website, in a prominent place, information concern- 8 ing assistance for compulsive play in New York state, including a toll- 9 free number directing callers to reputable resources containing further 10 information, which shall be free of charge; 11 (xii) ensure no sports wagering shall be based on a prohibited sports 12 event; 13 (xiii) permit account holders to establish self-exclusion gaming 14 limits on a daily, weekly, and monthly basis that enable the account 15 holder to identify the maximum amount of money an account holder may 16 deposit during such period of time; 17 (xiv) when an account holder's lifetime deposits exceed two thousand 18 five hundred dollars, the operator shall prevent any wagering until the 19 patron immediately acknowledges, and acknowledges each year thereafter, 20 that the account holder has met the deposit threshold and may elect to 21 establish responsible gaming limits or close the account, and the 22 account holder has received disclosures from the operator concerning 23 problem gambling resources; 24 (xv) maintain a publicly accessible internet page dedicated to respon- 25 sible play, a link to which must appear on the operator's website and in 26 any mobile application or electronic platform on which a bettor may 27 place wagers. The responsible play page shall include: a statement of 28 the operator's policy and commitment to responsible gaming; information 29 regarding, or links to information regarding, the risks associated with 30 gambling and the potential signs of problem gaming; the availability of 31 self-imposed responsible gaining limits; a link to a problem gaming 32 webpage maintained by the office of addiction services and supports; and 33 such other information or statements as the commission may require by 34 rule; and 35 (xvi) submit annually a problem gaming plan to the commission that 36 includes: the objectives of and timetables for implementing the plan; 37 identification of the persons responsible for implementing and maintain- 38 ing the plan; procedures for identifying users with suspected or known 39 problem gaming behavior; procedures for providing information to users 40 concerning problem gaming identification and resources; procedures to 41 prevent gaming by minors and self-excluded persons; and such other prob- 42 lem gaming information as the commission may require by rule. 43 (b) Operators shall not directly or indirectly operate, promote, or 44 advertise any platform or sports wagering to persons located in New York 45 state unless registered pursuant to this article. 46 (c) Operators shall not offer any sports wagering based on any prohib- 47 ited sports event. 48 (d) Operators shall not permit sports wagering by anyone they know, or 49 should have known, to be a prohibited sports bettor. 50 (e) Advertisements for contests and prizes offered by an operator 51 shall not target prohibited sports bettors, minors, or self-excluded 52 persons. 53 (f) Operators shall prohibit the use of third-party scripts or script- 54 ing programs for any exchange wagering contest and ensure that measures 55 are in place to deter, detect and, to the extent reasonably possible, 56 prevent cheating, including collusion, and the use of cheating devices,A. 3009--B 76 1 including use of software programs that submit exchange wagering sports 2 wagers unless otherwise approved by the commission. 3 (g) Operators shall develop and prominently display procedures on the 4 main page of such operator's platform for the filing of a complaint by 5 an authorized sports bettor against such operator. An initial response 6 shall be given by such operator to such bettor filing the complaint 7 within forty-eight hours. A complete response shall be given by such 8 operator to such bettor filing the complaint within ten business days. 9 An authorized sports bettor may file a complaint alleging a violation of 10 the provisions of this article with the commission. 11 (h) Operators shall maintain records of all accounts belonging to 12 authorized sports bettors and retain such records of all transactions in 13 such accounts for the preceding five years. 14 (i) The server or other equipment which is used by an operator to 15 accept mobile sports wagering shall be located in the licensed gaming 16 facility in accordance with regulations promulgated by the commission. 17 (j) All mobile sports wagering initiated in this state shall be deemed 18 to take place at the licensed gaming facility where the server or other 19 equipment used by an operator to accept mobile sports wagering is 20 located, regardless of the authorized sports bettor's physical location 21 within this state. 22 (k) All mobile sports wagering shall be conducted in compliance with 23 this section and section thirteen hundred sixty-seven of this title. 24 (l) Permit an Indian Tribe pursuant to paragraph (a) of subdivision 25 three-a of this section to place at the licensed gaming facility the 26 server or other equipment by which the Indian Tribe may accept mobile 27 sports wagering, and to make commercially reasonable accommodations as 28 may be necessary to place and operate the Indian Tribe's server or other 29 equipment. 30 5. (a) Subject to regulations promulgated by the commission, casinos 31 may enter into agreements with operators or affiliates to allow for 32 authorized bettors to sign up to create and fund accounts on mobile 33 sports wagering platforms offered by the casino. 34 (b) Authorized sports bettors may sign up to create their account on a 35 mobile sports wagering platform in person at a casino, or an affiliate, 36 or through an operators internet website accessed via a mobile device or 37 computer, or mobile device applications. 38 (c) Authorized sports bettors may deposit and withdraw funds in their 39 account on a mobile sports wagering platform in person at a casino, or 40 an affiliate, electronically recognized payment methods, or via any 41 other means approved by the commission. 42 (d) In accordance with regulations promulgated by the commission, 43 casinos may enter into agreements with affiliates to locate self-service 44 mobile sports betting kiosks, which are owned, operated and maintained 45 by the casino, and connected via the internet to the casino, upon the 46 premises of the affiliate. Authorized sports bettors may place account 47 wagers, and place and redeem non-account cash wagers, at such kiosks. 48 (e) All agreements entered into between casinos and affiliates in 49 relation to the provisions of this section shall be approved by the 50 commission prior to taking effect and shall include a plan for the time- 51 ly payment of liabilities due to the affiliate under the agreement; 52 provided, however, that the commission shall not approve any such agree- 53 ment between a casino and a racetrack licensed pursuant to this chapter 54 or an operator of video lottery gaming at Aqueduct licensed pursuant to 55 section one thousand six hundred seventeen-a of the tax law, until 56 twelve months after the effective date of this paragraph; and provided,A. 3009--B 77 1 further, that the commission shall not approve any such agreement 2 between a casino and a professional sports stadium or arena, until twen- 3 ty months after the effective date of this paragraph. 4 6. The commission shall annually cause a report to be prepared and 5 distributed to the governor and the legislature on the impact of mobile 6 sports wagering on problem gamblers in New York. The report shall 7 include an assessment of problem gaming among persons under the age of 8 thirty. The report shall be prepared by a non-governmental organization 9 or entity with expertise in serving the needs of persons with gambling 10 addictions. The report shall be prepared and distributed under the 11 supervision of and in coordination with the commission. The costs asso- 12 ciated with the preparation and distribution of the report shall be 13 borne by operators and the commission shall be authorized to assess a 14 fee against operators for these purposes. The commission shall also 15 report periodically to the governor and the legislature on the effec- 16 tiveness of the statutory and regulatory controls in place to ensure the 17 integrity of mobile sports wagering operations. 18 § 3. Section 104 of the racing, pari-mutuel wagering and breeding law 19 is amended by adding a new subdivision 24 to read as follows: 20 24. To regulate sports wagering in New York state. 21 § 4. Severability clause. If any provision of this act or application 22 thereof shall for any reason be adjudged by any court of competent 23 jurisdiction to be invalid, such judgment shall not affect, impair, or 24 invalidate the remainder of the act, but shall be confined in its opera- 25 tion to the provision thereof directly involved in the controversy in 26 which the judgment shall have been rendered. 27 § 5. This act shall take effect immediately. 28 PART Z 29 Intentionally Omitted 30 PART AA 31 Intentionally Omitted 32 PART BB 33 Section 1. Paragraphs 4 and 5 of subdivision a of section 1612 of the 34 tax law, as amended by chapter 174 of the laws of 2013, are amended and 35 a new paragraph 6 is added to read as follows: 36 (4) fifty percent of the total amount for which tickets have been sold 37 for games known as: (A) the "Daily Numbers Game" or "Win 4", discrete 38 games in which the participants select no more than three or four of 39 their own numbers to match with three or four numbers drawn by the 40 [division] commission for purposes of determining winners of such games, 41 (B) "Pick 10", offered no more than [once] twice daily, in which partic- 42 ipants select from a specified field of numbers a subset of ten numbers 43 to match against a subset of numbers to be drawn by the [division] 44 commission from such field of numbers for the purpose of determining 45 winners of such game, (C) "Take 5", offered no more than [once] twice 46 daily, in which participants select from a specified field of numbers a 47 subset of five numbers to match against a subset of five numbers to be 48 drawn by the [division] commission from such field of numbers for 49 purposes of determining winners of such game; orA. 3009--B 78 1 (5) forty percent of the total amount for which tickets have been sold 2 for: (A) "Lotto", offered no more than [once] twice daily, a discrete 3 game in which all participants select a specific subset of numbers to 4 match a specific subset of numbers, as prescribed by rules and regu- 5 lations promulgated and adopted by the [division] commission, from a 6 larger specific field of numbers, as also prescribed by such rules and 7 regulations and (B) with the exception of the game described in para- 8 graph one of this subdivision, such other state-operated lottery games 9 [which] that the [division] commission may introduce, offered no more 10 than [once] twice daily, commencing on or after forty-five days follow- 11 ing the official publication of the rules and regulations for such game. 12 (6) The commission shall make a report on the revenues derived from 13 the additional lottery drawings pursuant to paragraphs four and five of 14 subdivision a of this section and shall submit such report to the gover- 15 nor, the speaker of the assembly, and the temporary president of the 16 senate by the first day of March two thousand twenty-two. 17 § 2. This act shall take effect immediately and shall be deemed 18 repealed one year after such date. 19 PART CC 20 Section 1. Sections 1368, 1369, 1370 and 1371 of the racing, pari-mu- 21 tuel wagering and breeding law are renumbered sections 130, 131, 132 and 22 133. 23 § 2. Title 9 of article 13 of the racing, pari-mutuel wagering and 24 breeding law is REPEALED. 25 § 3. Section 130 of the racing, pari-mutuel wagering and breeding law, 26 as added by chapter 174 of the laws of 2013 and as renumbered by section 27 one of this act, is amended to read as follows: 28 § 130. [Establishment of the] The office of gaming inspector general. 29 [There is hereby created within the commission the office of gaming30inspector general. The head of the office shall be the gaming inspector31general who shall be appointed by the governor by and with the advice32and consent of the senate. The inspector general shall serve at the33pleasure of the governor. The inspector general shall report directly to34the governor. The person appointed as inspector general shall, upon his35or her appointment, have not less than ten years professional experience36in law, investigation, or auditing. The inspector general shall be37compensated within the limits of funds available therefor, provided,38however, such salary shall be no less than the salaries of certain state39officers holding the positions indicated in paragraph (a) of subdivision40one of section one hundred sixty-nine of the executive law.] The duties 41 and responsibilities of the former office of the gaming inspector gener- 42 al are transferred to and encompassed by the office of the state inspec- 43 tor general as expressly referenced in article four-A of the executive 44 law. 45 § 4. Section 131 of the racing, pari-mutuel wagering and breeding law, 46 as added by chapter 174 of the laws of 2013 and as renumbered by section 47 one of this act, is amended to read as follows: 48 § 131. [State gaming] Gaming inspector general; functions and duties. 49 The [state] gaming inspector general shall have the following duties and 50 responsibilities: 51 1. receive and investigate complaints from any source, or upon his or 52 her own initiative, concerning allegations of corruption, fraud, crimi- 53 nal activity, conflicts of interest or abuse in the commission;A. 3009--B 79 1 2. [inform the commission members of such allegations and the progress2of investigations related thereto, unless special circumstances require3confidentiality;43.] determine with respect to such allegations whether disciplinary 5 action, civil or criminal prosecution, or further investigation by an 6 appropriate federal, state or local agency is warranted, and to assist 7 in such investigations; 8 [4.] 3. prepare and release to the public written reports of such 9 investigations, as appropriate and to the extent permitted by law, 10 subject to redaction to protect the confidentiality of witnesses. The 11 release of all or portions of such reports may be deferred to protect 12 the confidentiality of ongoing investigations; 13 [5.] 4. review and examine periodically the policies and procedures of 14 the commission with regard to the prevention and detection of 15 corruption, fraud, criminal activity, conflicts of interest or abuse; 16 [6.] 5. recommend remedial action to prevent or eliminate corruption, 17 fraud, criminal activity, conflicts of interest or abuse in the commis- 18 sion; [and197.] 6. establish programs for training commission officers and employ- 20 ees [regarding] in regard to the prevention and elimination of 21 corruption, fraud, criminal activity, conflicts of interest or abuse in 22 the commission; and 23 7. make an annual report to the governor, the comptroller and the 24 legislature concerning its work during the preceding year. Such report 25 shall include but not be limited to the number of cases investigated, 26 and the number of complaints received. Such initial report shall be due 27 no later than the first day of April two thousand twenty-two, and then 28 by the first day of April each year thereafter. Such report shall be 29 made public and published on the website of the office of the state 30 inspector general and on the website of the commission. 31 § 5. Section 132 of the racing, pari-mutuel wagering and breeding law, 32 as added by chapter 174 of the laws of 2013 and as renumbered by section 33 one of this act, is amended to read as follows: 34 § 132. Powers. The [state] gaming inspector general shall have the 35 power to: 36 1. subpoena and enforce the attendance of witnesses; 37 2. administer oaths or affirmations and examine witnesses under oath; 38 3. require the production of any books and papers deemed relevant or 39 material to any investigation, examination or review; 40 4. notwithstanding any law to the contrary, examine and copy or remove 41 documents or records of any kind prepared, maintained or held by the 42 commission; 43 5. require any commission officer or employee to answer questions 44 concerning any matter related to the performance of his or her official 45 duties. The refusal of any officer or employee to answer questions 46 shall be cause for removal from office or employment or other appropri- 47 ate penalty; 48 6. monitor the implementation by the commission of any recommendations 49 made by the state inspector general; and 50 7. perform any other functions that are necessary or appropriate to 51 fulfill the duties and responsibilities of the office. 52 § 6. Section 133 of the racing, pari-mutuel wagering and breeding law, 53 as added by chapter 174 of the laws of 2013 and as renumbered by section 54 one of this act, is amended to read as follows: 55 § 133. Responsibilities of the commission and its officers and employ- 56 ees. 1. Every commission officer or employee shall report promptly toA. 3009--B 80 1 the [state] gaming inspector general any information concerning 2 corruption, fraud, criminal activity, conflicts of interest or abuse by 3 another state officer or employee relating to his or her office or 4 employment, or by a person having business dealings with the commission 5 relating to those dealings. The knowing failure of any officer or 6 employee to so report shall be cause for removal from office or employ- 7 ment or other appropriate penalty under this article. Any officer or 8 employee who acts pursuant to this subdivision by reporting to the 9 [state] gaming inspector general or other appropriate law enforcement 10 official improper governmental action as defined in section seventy- 11 five-b of the civil service law shall not be subject to dismissal, 12 discipline or other adverse personnel action. 13 2. The commission chair shall advise the governor within ninety days 14 of the issuance of a report by the [state] gaming inspector general as 15 to the remedial action that the commission has taken in response to any 16 recommendation for such action contained in such report. 17 § 7. The racing, pari-mutuel wagering and breeding law is amended by 18 adding a new section 134 to read as follows: 19 § 134. Transfer of employees. Upon the transfer of functions, powers, 20 duties and obligations to the office of the state inspector general 21 pursuant to this article, provision shall be made for the transfer of 22 all gaming inspector general employees from within the gaming commission 23 into the office of the state inspector general. Any employees trans- 24 ferred shall be transferred in accordance with the provisions of section 25 seventy of the civil service law. Employees so transferred shall be 26 transferred without further examination or qualification to the same or 27 similar titles, shall remain in the same collective bargaining units and 28 shall retain their respective civil service classifications, status and 29 rights pursuant to their collective bargaining units and collective 30 bargaining agreements. 31 § 8. The racing, pari-mutuel wagering and breeding law is amended by 32 adding a new section 135 to read as follows: 33 § 135. Transfer of records. All books, papers, records and property of 34 the gaming inspector general within the gaming commission with respect 35 to the functions, powers, duties and obligations transferred by 36 section one hundred thirty of this article, are to be delivered to the 37 appropriate successor offices within the office of the state inspector 38 general, at such place and time, and in such manner as the office of 39 the state inspector general may require. 40 § 9. This act shall take effect on the sixtieth day after it shall 41 have become a law. 42 PART DD 43 Section 1. Paragraph (a) of subdivision 1 of section 1003 of the 44 racing, pari-mutuel wagering and breeding law, as amended by section 1 45 of part Z of chapter 59 of the laws of 2020, is amended to read as 46 follows: 47 (a) Any racing association or corporation or regional off-track 48 betting corporation, authorized to conduct pari-mutuel wagering under 49 this chapter, desiring to display the simulcast of horse races on which 50 pari-mutuel betting shall be permitted in the manner and subject to the 51 conditions provided for in this article may apply to the commission for 52 a license so to do. Applications for licenses shall be in such form as 53 may be prescribed by the commission and shall contain such information 54 or other material or evidence as the commission may require. No licenseA. 3009--B 81 1 shall be issued by the commission authorizing the simulcast transmission 2 of thoroughbred races from a track located in Suffolk county. The fee 3 for such licenses shall be five hundred dollars per simulcast facility 4 and for account wagering licensees that do not operate either a simul- 5 cast facility that is open to the public within the state of New York or 6 a licensed racetrack within the state, twenty thousand dollars per year 7 payable by the licensee to the commission for deposit into the general 8 fund. Except as provided in this section, the commission shall not 9 approve any application to conduct simulcasting into individual or group 10 residences, homes or other areas for the purposes of or in connection 11 with pari-mutuel wagering. The commission may approve simulcasting into 12 residences, homes or other areas to be conducted jointly by one or more 13 regional off-track betting corporations and one or more of the follow- 14 ing: a franchised corporation, thoroughbred racing corporation or a 15 harness racing corporation or association; provided (i) the simulcasting 16 consists only of those races on which pari-mutuel betting is authorized 17 by this chapter at one or more simulcast facilities for each of the 18 contracting off-track betting corporations which shall include wagers 19 made in accordance with section one thousand fifteen, one thousand 20 sixteen and one thousand seventeen of this article; provided further 21 that the contract provisions or other simulcast arrangements for such 22 simulcast facility shall be no less favorable than those in effect on 23 January first, two thousand five; (ii) that each off-track betting 24 corporation having within its geographic boundaries such residences, 25 homes or other areas technically capable of receiving the simulcast 26 signal shall be a contracting party; (iii) the distribution of revenues 27 shall be subject to contractual agreement of the parties except that 28 statutory payments to non-contracting parties, if any, may not be 29 reduced; provided, however, that nothing herein to the contrary shall 30 prevent a track from televising its races on an irregular basis primari- 31 ly for promotional or marketing purposes as found by the commission. For 32 purposes of this paragraph, the provisions of section one thousand thir- 33 teen of this article shall not apply. Any agreement authorizing an 34 in-home simulcasting experiment commencing prior to May fifteenth, nine- 35 teen hundred ninety-five, may, and all its terms, be extended until June 36 thirtieth, two thousand [twenty-one] twenty-two; provided, however, that 37 any party to such agreement may elect to terminate such agreement upon 38 conveying written notice to all other parties of such agreement at least 39 forty-five days prior to the effective date of the termination, via 40 registered mail. Any party to an agreement receiving such notice of an 41 intent to terminate, may request the commission to mediate between the 42 parties new terms and conditions in a replacement agreement between the 43 parties as will permit continuation of an in-home experiment until June 44 thirtieth, two thousand [twenty-one] twenty-two; and (iv) no in-home 45 simulcasting in the thoroughbred special betting district shall occur 46 without the approval of the regional thoroughbred track. 47 § 2. Subparagraph (iii) of paragraph d of subdivision 3 of section 48 1007 of the racing, pari-mutuel wagering and breeding law, as separately 49 amended by chapter 243 and section 2 of part Z of chapter 59 of the laws 50 of 2020, is amended to read as follows: 51 (iii) Of the sums retained by a receiving track located in Westchester 52 county on races received from a franchised corporation, for the period 53 commencing January first, two thousand eight and continuing through June 54 thirtieth, two thousand [twenty-one] twenty-two, the amount used exclu- 55 sively for purses to be awarded at races conducted by such receiving 56 track shall be computed as follows: of the sums so retained, two andA. 3009--B 82 1 one-half percent of the total pools. Such amount shall be increased or 2 decreased in the amount of fifty percent of the difference in total 3 commissions determined by comparing the total commissions available 4 after July twenty-first, nineteen hundred ninety-five to the total 5 commissions that would have been available to such track prior to July 6 twenty-first, nineteen hundred ninety-five. 7 § 3. The opening paragraph of subdivision 1 of section 1014 of the 8 racing, pari-mutuel wagering and breeding law, as separately amended by 9 section 3 of part Z of chapter 59 and chapter 243 of the laws of 2020, 10 is amended to read as follows: 11 The provisions of this section shall govern the simulcasting of races 12 conducted at thoroughbred tracks located in another state or country on 13 any day during which a franchised corporation is conducting a race meet- 14 ing in Saratoga county at Saratoga thoroughbred racetrack until June 15 thirtieth, two thousand [twenty-one] twenty-two and on any day regard- 16 less of whether or not a franchised corporation is conducting a race 17 meeting in Saratoga county at Saratoga thoroughbred racetrack after June 18 thirtieth, two thousand [twenty-one] twenty-two. On any day on which a 19 franchised corporation has not scheduled a racing program but a 20 thoroughbred racing corporation located within the state is conducting 21 racing, each off-track betting corporation branch office and each simul- 22 casting facility licensed in accordance with section one thousand seven 23 (that has entered into a written agreement with such facility's repre- 24 sentative horsemen's organization, as approved by the commission), one 25 thousand eight, or one thousand nine of this article shall be authorized 26 to accept wagers and display the live simulcast signal from thoroughbred 27 tracks located in another state or foreign country subject to the 28 following provisions: 29 § 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering 30 and breeding law, as amended by section 4 of part Z of chapter 59 of the 31 laws of 2020, is amended to read as follows: 32 1. The provisions of this section shall govern the simulcasting of 33 races conducted at harness tracks located in another state or country 34 during the period July first, nineteen hundred ninety-four through June 35 thirtieth, two thousand [twenty-one] twenty-two. This section shall 36 supersede all inconsistent provisions of this chapter. 37 § 5. The opening paragraph of subdivision 1 of section 1016 of the 38 racing, pari-mutuel wagering and breeding law, as amended by section 5 39 of part Z of chapter 59 of the laws of 2020, is amended to read as 40 follows: 41 The provisions of this section shall govern the simulcasting of races 42 conducted at thoroughbred tracks located in another state or country on 43 any day during which a franchised corporation is not conducting a race 44 meeting in Saratoga county at Saratoga thoroughbred racetrack until June 45 thirtieth, two thousand [twenty-one] twenty-two. Every off-track 46 betting corporation branch office and every simulcasting facility 47 licensed in accordance with section one thousand seven that have entered 48 into a written agreement with such facility's representative horsemen's 49 organization as approved by the commission, one thousand eight or one 50 thousand nine of this article shall be authorized to accept wagers and 51 display the live full-card simulcast signal of thoroughbred tracks 52 (which may include quarter horse or mixed meetings provided that all 53 such wagering on such races shall be construed to be thoroughbred races) 54 located in another state or foreign country, subject to the following 55 provisions; provided, however, no such written agreement shall beA. 3009--B 83 1 required of a franchised corporation licensed in accordance with section 2 one thousand seven of this article: 3 § 6. The opening paragraph of section 1018 of the racing, pari-mutuel 4 wagering and breeding law, as amended by section 6 of part Z of chapter 5 59 of the laws of 2020, is amended to read as follows: 6 Notwithstanding any other provision of this chapter, for the period 7 July twenty-fifth, two thousand one through September eighth, two thou- 8 sand [twenty] twenty-one, when a franchised corporation is conducting a 9 race meeting within the state at Saratoga Race Course, every off-track 10 betting corporation branch office and every simulcasting facility 11 licensed in accordance with section one thousand seven (that has entered 12 into a written agreement with such facility's representative horsemen's 13 organization as approved by the commission), one thousand eight or one 14 thousand nine of this article shall be authorized to accept wagers and 15 display the live simulcast signal from thoroughbred tracks located in 16 another state, provided that such facility shall accept wagers on races 17 run at all in-state thoroughbred tracks which are conducting racing 18 programs subject to the following provisions; provided, however, no such 19 written agreement shall be required of a franchised corporation licensed 20 in accordance with section one thousand seven of this article. 21 § 7. Section 32 of chapter 281 of the laws of 1994, amending the 22 racing, pari-mutuel wagering and breeding law and other laws relating to 23 simulcasting, as amended by section 7 of part Z of chapter 59 of the 24 laws of 2020, is amended to read as follows: 25 § 32. This act shall take effect immediately and the pari-mutuel tax 26 reductions in section six of this act shall expire and be deemed 27 repealed on July 1, [2021] 2022; provided, however, that nothing 28 contained herein shall be deemed to affect the application, qualifica- 29 tion, expiration, or repeal of any provision of law amended by any 30 section of this act, and such provisions shall be applied or qualified 31 or shall expire or be deemed repealed in the same manner, to the same 32 extent and on the same date as the case may be as otherwise provided by 33 law; provided further, however, that sections twenty-three and twenty- 34 five of this act shall remain in full force and effect only until May 1, 35 1997 and at such time shall be deemed to be repealed. 36 § 8. Section 54 of chapter 346 of the laws of 1990, amending the 37 racing, pari-mutuel wagering and breeding law and other laws relating to 38 simulcasting and the imposition of certain taxes, as amended by section 39 8 of part Z of chapter 59 of the laws of 2020, is amended to read as 40 follows: 41 § 54. This act shall take effect immediately; provided, however, 42 sections three through twelve of this act shall take effect on January 43 1, 1991, and section 1013 of the racing, pari-mutuel wagering and breed- 44 ing law, as added by section thirty-eight of this act, shall expire and 45 be deemed repealed on July 1, [2021] 2022; and section eighteen of this 46 act shall take effect on July 1, 2008 and sections fifty-one and fifty- 47 two of this act shall take effect as of the same date as chapter 772 of 48 the laws of 1989 took effect. 49 § 9. Paragraph (a) of subdivision 1 of section 238 of the racing, 50 pari-mutuel wagering and breeding law, as separately amended by section 51 9 of part Z of chapter 59 and chapter 243 of the laws of 2020, is 52 amended to read as follows: 53 (a) The franchised corporation authorized under this chapter to 54 conduct pari-mutuel betting at a race meeting or races run thereat shall 55 distribute all sums deposited in any pari-mutuel pool to the holders of 56 winning tickets therein, provided such tickets are presented for paymentA. 3009--B 84 1 before April first of the year following the year of their purchase, 2 less an amount that shall be established and retained by such franchised 3 corporation of between twelve to seventeen percent of the total deposits 4 in pools resulting from on-track regular bets, and fourteen to twenty- 5 one percent of the total deposits in pools resulting from on-track 6 multiple bets and fifteen to twenty-five percent of the total deposits 7 in pools resulting from on-track exotic bets and fifteen to thirty-six 8 percent of the total deposits in pools resulting from on-track super 9 exotic bets, plus the breaks. The retention rate to be established is 10 subject to the prior approval of the commission. 11 Such rate may not be changed more than once per calendar quarter to be 12 effective on the first day of the calendar quarter. "Exotic bets" and 13 "multiple bets" shall have the meanings set forth in section five 14 hundred nineteen of this chapter. "Super exotic bets" shall have the 15 meaning set forth in section three hundred one of this chapter. For 16 purposes of this section, a "pick six bet" shall mean a single bet or 17 wager on the outcomes of six races. The breaks are hereby defined as the 18 odd cents over any multiple of five for payoffs greater than one dollar 19 five cents but less than five dollars, over any multiple of ten for 20 payoffs greater than five dollars but less than twenty-five dollars, 21 over any multiple of twenty-five for payoffs greater than twenty-five 22 dollars but less than two hundred fifty dollars, or over any multiple of 23 fifty for payoffs over two hundred fifty dollars. Out of the amount so 24 retained there shall be paid by such franchised corporation to the 25 commissioner of taxation and finance, as a reasonable tax by the state 26 for the privilege of conducting pari-mutuel betting on the races run at 27 the race meetings held by such franchised corporation, the following 28 percentages of the total pool for regular and multiple bets five percent 29 of regular bets and four percent of multiple bets plus twenty percent of 30 the breaks; for exotic wagers seven and one-half percent plus twenty 31 percent of the breaks, and for super exotic bets seven and one-half 32 percent plus fifty percent of the breaks. 33 For the period April first, two thousand one through December thirty- 34 first, two thousand [twenty-one] twenty-two, such tax on all wagers 35 shall be one and six-tenths percent, plus, in each such period, twenty 36 percent of the breaks. Payment to the New York state thoroughbred breed- 37 ing and development fund by such franchised corporation shall be one- 38 half of one percent of total daily on-track pari-mutuel pools resulting 39 from regular, multiple and exotic bets and three percent of super exotic 40 bets and for the period April first, two thousand one through December 41 thirty-first, two thousand [twenty-one] twenty-two, such payment shall 42 be seven-tenths of one percent of regular, multiple and exotic pools. 43 § 10. This act shall take effect immediately. 44 PART EE 45 Section 1. Section 19 of part W-1 of chapter 109 of the laws of 2006 46 amending the tax law and other laws relating to providing exemptions, 47 reimbursements and credits from various taxes for certain alternative 48 fuels, as amended by section 1 of part U of chapter 60 of the laws of 49 2016, is amended to read as follows: 50 § 19. This act shall take effect immediately; provided, however, that 51 sections one through thirteen of this act shall take effect September 1, 52 2006 and shall be deemed repealed on September 1, [2021] 2026 and such 53 repeal shall apply in accordance with the applicable transitional 54 provisions of sections 1106 and 1217 of the tax law, and shall apply toA. 3009--B 85 1 sales made, fuel compounded or manufactured, and uses occurring on or 2 after such date, and with respect to sections seven through eleven of 3 this act, in accordance with applicable transitional provisions of 4 sections 1106 and 1217 of the tax law; provided, however, that the 5 commissioner of taxation and finance shall be authorized on and after 6 the date this act shall have become a law to adopt and amend any rules 7 or regulations and to take any steps necessary to implement the 8 provisions of this act; provided further that sections fourteen through 9 sixteen of this act shall take effect immediately and shall apply to 10 taxable years beginning on or after January 1, 2006. 11 § 2. This act shall take effect immediately. 12 PART FF 13 Section 1. Subsection (e) of section 42 of the tax law, as added by 14 section 1 of part RR of chapter 60 of the laws of 2016, is amended to 15 read as follows: 16 (e) For taxable years beginning on or after January first, two thou- 17 sand seventeen and before January first, two thousand eighteen, the 18 amount of the credit allowed under this section shall be equal to the 19 product of the total number of eligible farm employees and two hundred 20 fifty dollars. For taxable years beginning on or after January first, 21 two thousand eighteen and before January first, two thousand nineteen, 22 the amount of the credit allowed under this section shall be equal to 23 the product of the total number of eligible farm employees and three 24 hundred dollars. For taxable years beginning on or after January first, 25 two thousand nineteen and before January first, two thousand twenty, the 26 amount of the credit allowed under this section shall be equal to the 27 product of the total number of eligible farm employees and five hundred 28 dollars. For taxable years beginning on or after January first, two 29 thousand twenty and before January first, two thousand twenty-one, the 30 amount of the credit allowed under this section shall be equal to the 31 product of the total number of eligible farm employees and four hundred 32 dollars. For taxable years beginning on or after January first, two 33 thousand twenty-one and before January first, two thousand [twenty-two] 34 twenty-five, the amount of the credit allowed under this section shall 35 be equal to the product of the total number of eligible farm employees 36 and six hundred dollars. 37 § 2. Section 5 of part RR of chapter 60 of the laws of 2016 amending 38 the tax law relating to creating a farm workforce retention credit is 39 amended to read as follows: 40 § 5. This act shall take effect immediately and shall apply only to 41 taxable years beginning on or after January 1, 2017 and before January 42 1, [2022] 2025. 43 § 3. This act shall take effect immediately. 44 PART GG 45 Section 1. Subdivision 4 of section 22 of the public housing law, as 46 amended by section 5 of part H of chapter 60 of the laws of 2016, is 47 amended to read as follows: 48 4. Statewide limitation. The aggregate dollar amount of credit which 49 the commissioner may allocate to eligible low-income buildings under 50 this article shall be one hundred [four] nineteen million dollars. The 51 limitation provided by this subdivision applies only to allocation of 52 the aggregate dollar amount of credit by the commissioner, and does notA. 3009--B 86 1 apply to allowance to a taxpayer of the credit with respect to an eligi- 2 ble low-income building for each year of the credit period. 3 § 2. Subdivision 4 of section 22 of the public housing law, as amended 4 by section one of this act, is amended to read as follows: 5 4. Statewide limitation. The aggregate dollar amount of credit which 6 the commissioner may allocate to eligible low-income buildings under 7 this article shall be one hundred [nineteen] thirty-four million 8 dollars. The limitation provided by this subdivision applies only to 9 allocation of the aggregate dollar amount of credit by the commissioner, 10 and does not apply to allowance to a taxpayer of the credit with respect 11 to an eligible low-income building for each year of the credit period. 12 § 3. Subdivision 4 of section 22 of the public housing law, as amended 13 by section two of this act, is amended to read as follows: 14 4. Statewide limitation. The aggregate dollar amount of credit which 15 the commissioner may allocate to eligible low-income buildings under 16 this article shall be one hundred [thirty-four] forty-nine million 17 dollars. The limitation provided by this subdivision applies only to 18 allocation of the aggregate dollar amount of credit by the commissioner, 19 and does not apply to allowance to a taxpayer of the credit with respect 20 to an eligible low-income building for each year of the credit period. 21 § 4. Subdivision 4 of section 22 of the public housing law, as amended 22 by section three of this act, is amended to read as follows: 23 4. Statewide limitation. The aggregate dollar amount of credit which 24 the commissioner may allocate to eligible low-income buildings under 25 this article shall be one hundred [forty-nine] sixty-four million 26 dollars. The limitation provided by this subdivision applies only to 27 allocation of the aggregate dollar amount of credit by the commissioner, 28 and does not apply to allowance to a taxpayer of the credit with respect 29 to an eligible low-income building for each year of the credit period. 30 § 5. Subdivision 4 of section 22 of the public housing law, as amended 31 by section four of this act, is amended to read as follows: 32 4. Statewide limitation. The aggregate dollar amount of credit which 33 the commissioner may allocate to eligible low-income buildings under 34 this article shall be one hundred [sixty-four] seventy-nine million 35 dollars. The limitation provided by this subdivision applies only to 36 allocation of the aggregate dollar amount of credit by the commissioner, 37 and does not apply to allowance to a taxpayer of the credit with respect 38 to an eligible low-income building for each year of the credit period. 39 § 6. This act shall take effect immediately; provided, however, 40 section two of this act shall take effect April 1, 2022; section three 41 of this act shall take effect April 1, 2023; section four of this act 42 shall take effect April 1, 2024; and section five of this act shall take 43 effect April 1, 2025. 44 PART HH 45 Section 1. Section 5 of part HH of chapter 59 of the laws of 2014, 46 amending the tax law relating to a musical and theatrical production 47 credit, as amended by section 1 of part III of chapter 59 of the laws of 48 2018, is amended to read as follows: 49 § 5. This act shall take effect immediately, provided that section two 50 of this act shall take effect on January 1, 2015, and shall apply to 51 taxable years beginning on or after January 1, 2015, with respect to 52 "qualified production expenditures" and "transportation expenditures" 53 paid or incurred on or after such effective date, regardless of whether 54 the production of the qualified musical or theatrical productionA. 3009--B 87 1 commenced before such date, provided further that this act shall expire 2 and be deemed repealed [8 years after such date] January 1, 2026. 3 § 2. Paragraph 1 of subdivision (e) of section 24-a of the tax law, as 4 added by section 1 of part HH of chapter 59 of the laws of 2014, is 5 amended to read as follows: 6 (1) The aggregate amount of tax credits allowed under this section, 7 subdivision forty-seven of section two hundred ten-B and subsection (u) 8 of section six hundred six of this chapter in any calendar year shall be 9 [four] eight million dollars. Such aggregate amount of credits shall be 10 allocated by the department of economic development among taxpayers in 11 order of priority based upon the date of filing an application for allo- 12 cation of musical and theatrical production credit with such department. 13 If the total amount of allocated credits applied for in any particular 14 year exceeds the aggregate amount of tax credits allowed for such year 15 under this section, such excess shall be treated as having been applied 16 for on the first day of the subsequent year. 17 § 3. This act shall take effect immediately, provided, however, that 18 the amendments to section 24-a of the tax law made by section two of 19 this act shall not affect the expiration and repeal of such section and 20 shall be deemed to expire and repeal therewith. 21 PART II 22 Section 1. Paragraph (a) and subparagraph 2 of paragraph (b) of subdi- 23 vision 29 of section 210-B of the tax law, as amended by section 1 of 24 part B of chapter 59 of the laws of 2020, are amended to read as 25 follows: 26 (a) Allowance of credit. For taxable years beginning on or after Janu- 27 ary first, two thousand fifteen and before January first, two thousand 28 [twenty-two] twenty-four, a taxpayer shall be allowed a credit, to be 29 computed as provided in this subdivision, against the tax imposed by 30 this article, for hiring and employing, for not less than one year and 31 for not less than thirty-five hours each week, a qualified veteran with- 32 in the state. The taxpayer may claim the credit in the year in which 33 the qualified veteran completes one year of employment by the taxpayer. 34 If the taxpayer claims the credit allowed under this subdivision, the 35 taxpayer may not use the hiring of a qualified veteran that is the basis 36 for this credit in the basis of any other credit allowed under this 37 article. 38 (2) who commences employment by the qualified taxpayer on or after 39 January first, two thousand fourteen, and before January first, two 40 thousand [twenty-one] twenty-three; and 41 § 2. Paragraph 1 and subparagraph (B) of paragraph 2 of subsection 42 (a-2) of section 606 of the tax law, as amended by section 2 of part B 43 of chapter 59 of the laws of 2020, are amended to read as follows: 44 (1) Allowance of credit. For taxable years beginning on or after Janu- 45 ary first, two thousand fifteen and before January first, two thousand 46 [twenty-two] twenty-four, a taxpayer shall be allowed a credit, to be 47 computed as provided in this subsection, against the tax imposed by this 48 article, for hiring and employing, for not less than one year and for 49 not less than thirty-five hours each week, a qualified veteran within 50 the state. The taxpayer may claim the credit in the year in which the 51 qualified veteran completes one year of employment by the taxpayer. If 52 the taxpayer claims the credit allowed under this subsection, the 53 taxpayer may not use the hiring of a qualified veteran that is the basisA. 3009--B 88 1 for this credit in the basis of any other credit allowed under this 2 article. 3 (B) who commences employment by the qualified taxpayer on or after 4 January first, two thousand fourteen, and before January first, two 5 thousand [twenty-one] twenty-three; and 6 § 3. Paragraph 1 and subparagraph (B) of paragraph 2 of subdivision 7 (g-1) of section 1511 of the tax law, as amended by section 3 of part B 8 of chapter 59 of the laws of 2020, are amended to read as follows: 9 (1) Allowance of credit. For taxable years beginning on or after Janu- 10 ary first, two thousand fifteen and before January first, two thousand 11 [twenty-two] twenty-four, a taxpayer shall be allowed a credit, to be 12 computed as provided in this subdivision, against the tax imposed by 13 this article, for hiring and employing, for not less than one year and 14 for not less than thirty-five hours each week, a qualified veteran with- 15 in the state. The taxpayer may claim the credit in the year in which 16 the qualified veteran completes one year of employment by the taxpayer. 17 If the taxpayer claims the credit allowed under this subdivision, the 18 taxpayer may not use the hiring of a qualified veteran that is the basis 19 for this credit in the basis of any other credit allowed under this 20 article. 21 (B) who commences employment by the qualified taxpayer on or after 22 January first, two thousand fourteen, and before January first, two 23 thousand [twenty-one] twenty-three; and 24 § 4. This act shall take effect immediately. 25 PART JJ 26 Section 1. Section 12 of part V of chapter 61 of the laws of 2011, 27 amending the economic development law, the tax law and the real property 28 tax law, relating to establishing the economic transformation and facil- 29 ity redevelopment program and providing tax benefits under that program, 30 is amended to read as follows: 31 § 12. This act shall take effect immediately and shall expire and be 32 deemed repealed December 31, [2021] 2022. 33 § 2. Paragraph (a) of subdivision 11 of section 400 of the economic 34 development law, as amended by section 1 of part GG of chapter 58 of the 35 laws of 2020, is amended to read as follows: 36 (a) a correctional facility, as defined in paragraph (a) of subdivi- 37 sion four of section two of the correction law, that has been selected 38 by the governor of the state of New York for closure after April first, 39 two thousand eleven but no later than March thirty-first, two thousand 40 [twenty-one] twenty-two; or 41 § 3. This act shall take effect immediately; provided, however, that 42 the amendments to section 400 of the economic development law made by 43 section two of this act shall not affect the repeal of such section and 44 shall be deemed repealed therewith. 45 PART KK 46 Intentionally Omitted 47 PART LL 48 Intentionally Omitted 49 PART MMA. 3009--B 89 1 Section 1. Paragraph 1 of subsection (d) of section 606 of the tax 2 law, as amended by section 1 of part Q of chapter 63 of the laws of 3 2000, is amended to read as follows: 4 (1) General. A taxpayer shall be allowed a credit as provided herein 5 equal to (i) the applicable percentage of the earned income credit 6 allowed under section thirty-two of the internal revenue code for the 7 same taxable year, (ii) reduced by the credit permitted under subsection 8 (b) of this section. 9 The applicable percentage shall be (i) seven and one-half percent for 10 taxable years beginning in nineteen hundred ninety-four, (ii) ten 11 percent for taxable years beginning in nineteen hundred ninety-five, 12 (iii) twenty percent for taxable years beginning after nineteen hundred 13 ninety-five and before two thousand, (iv) twenty-two and one-half 14 percent for taxable years beginning in two thousand, (v) twenty-five 15 percent for taxable years beginning in two thousand one, (vi) twenty- 16 seven and one-half percent for taxable years beginning in two thousand 17 two, [and] (vii) thirty percent for taxable years beginning in two thou- 18 sand three, and (viii) forty percent for taxable years beginning in two 19 thousand twenty-one and thereafter. [Provided, however, that if the20reversion event, as defined in this paragraph, occurs, the applicable21percentage shall be twenty percent for taxable years ending on or after22the date on which the reversion event occurred. The reversion event23shall be deemed to have occurred on the date on which federal action,24including but not limited to, administrative, statutory or regulatory25changes, materially reduces or eliminates New York state's allocation of26the federal temporary assistance for needy families block grant, or27materially reduces the ability of the state to spend federal temporary28assistance for needy families block grant funds for the earned income29credit or to apply state general fund spending on the earned income30credit toward the temporary assistance for needy families block grant31maintenance of effort requirement, and the commissioner of the office of32temporary and disability assistance shall certify the date of such event33to the commissioner of taxation and finance, the director of the divi-34sion of the budget, the speaker of the assembly and the temporary presi-35dent of the senate.] 36 § 2. This act shall take effect immediately and shall apply to taxable 37 years beginning on or after January 1, 2021. 38 PART NN 39 Section 1. The tax law is amended by adding a new section 601-b to 40 read as follows: 41 § 601-b. Additional tax on capital gains. (a) There is hereby 42 imposed, in addition to the tax imposed under section six hundred one of 43 this article, an additional tax on capital gains. 44 (b) Capital gains shall mean the amount of an individual's New York 45 taxable income attributable to adjusted net capital gain, as defined in 46 subparagraph (3) of section 1(h) of the internal revenue code. 47 (c) The additional tax imposed under this section shall be equal to 48 one percent. 49 (d) This section shall not apply to the taxpayers subject to 50 subsections (a), (b), and (c) of section six hundred one of this part 51 with a New York taxable income less than one million dollars. 52 (e) The department may adopt rules and regulations as necessary to 53 implement the provisions of this section.A. 3009--B 90 1 § 2. This act shall take effect immediately, and shall apply to taxa- 2 ble years beginning on or after January 1, 2021. 3 PART OO 4 Section 1. The tax law is amended by adding a new section 183-b to 5 read as follows: 6 § 183-b. Business tax surcharge on transportation and transmission 7 corporations. 1. In addition to the tax imposed by sections one hundred 8 eighty-three and one hundred eighty-three-a of this article, every 9 corporation, joint-stock company or association that is subject to 10 section one hundred eighty-three of this article, shall pay for the 11 privilege of exercising its corporate franchise, or doing business, or 12 of employing capital, or of owning or leasing property in such corporate 13 or organized capacity, or of maintaining an office in such district, a 14 tax surcharge shall be computed at the rate of eighteen percent of the 15 tax imposed under section one hundred eighty-three of this article; 16 provided, however, that such surcharge shall be applied only if the 17 highest taxable base calculated under section one hundred eighty-three 18 of this article is more than seventy-five thousand dollars. 19 2. Notwithstanding any contrary provisions of state or local law, the 20 tax surcharge imposed under this section shall not be allowed as a 21 deduction in the computation of any state or local tax imposed under 22 this chapter or any chapter or local law. Furthermore, the credits 23 otherwise allowable under this article shall not be allowed against the 24 tax surcharge imposed by this section. 25 § 2. The tax law is amended by adding a new section 184-b to read as 26 follows: 27 § 184-b. Business tax surcharge on transportation and transmission 28 corporations. 1. In addition to the tax imposed by sections one hundred 29 eighty-four and one hundred eighty-four-a of this article, every corpo- 30 ration, joint-stock company or association, shall pay for the privilege 31 of exercising its corporate franchise, or of doing business, or of 32 employing capital, or of owning or leasing property in the state in such 33 corporate or organized capacity, or of maintaining an office in such 34 district, a tax surcharge, which tax surcharge, shall be computed at the 35 rate of eighteen percent of the tax imposed under section one hundred 36 eighty-four of this article for taxable years; provided, however, that 37 such surcharge shall be applied only if the gross earnings calculated 38 under section one hundred eighty-four of this article is more than twen- 39 ty million dollars. 40 2. Notwithstanding any contrary provisions of state or local law, the 41 tax surcharge imposed under this section shall not be allowed as a 42 deduction in the computation of any state or local tax imposed under 43 this chapter or any chapter or local law. Furthermore, the credits 44 otherwise allowable under this article shall not be allowed against the 45 tax surcharge imposed by this section. 46 § 3. The tax law is amended by adding a new section 186-h to read as 47 follows: 48 § 186-h. Business tax surcharge on utility and telecommunication 49 services. 1. (a) Every provider of telecommunication services doing 50 business in the state shall pay a tax surcharge, in addition to the tax 51 imposed by paragraph (a) of subdivision one of sections one hundred 52 eighty-six-a and one hundred eighty-six-c of this article, to be 53 computed at the rate of eighteen percent of the tax imposed under such 54 sections. Provided however, such tax surcharge shall only be applied ifA. 3009--B 91 1 the gross income calculated under paragraph (a) of subdivision one of 2 section one hundred eighty-six-a of this article is more than one 3 million five hundred thousand dollars. 4 (b) Every utility and every other utility doing business in the state 5 shall pay a tax surcharge in addition to tax imposed by paragraph (b) or 6 (c) of subdivision one of section one hundred eighty-six-a and section 7 one hundred eighty-six-c of this article, to be computed at the rate of 8 eighteen percent of the tax imposed under paragraph (b) or (c) of subdi- 9 vision one of section one hundred eighty-six-a of this article. 10 Provided, however, that such surcharge shall only be applied if the 11 gross income calculated under such paragraph of section one hundred 12 eighty-six-a is more than three hundred million dollars. 13 (c) Notwithstanding any other provision of state or local law, the tax 14 surcharge imposed by this section shall not be allowed as a deduction 15 and shall, to the extent deductible in determining federal adjusted 16 gross income, be added to federal adjusted gross income, in the computa- 17 tion of any tax imposed under this chapter or any other chapter of state 18 or local law. Furthermore, the credits otherwise allowable under this 19 article shall not be allowed against the tax surcharge imposed by this 20 section. 21 2. (a) There is hereby imposed a surcharge on the gross receipts from 22 telecommunication services, in addition to the excise tax imposed by 23 subparagraph one of paragraph (a) of subdivision two of section one 24 hundred eighty-six-e of this article, at the rate of eighteen percent of 25 the tax imposed by subparagraph one of paragraph (a) of subdivision two 26 of section one hundred eighty-six-e of this article and such surcharge 27 shall only be applied if the gross receipts calculated under such 28 section is more than fifty million dollars. 29 (b) There is hereby imposed a surcharge on the gross receipts from 30 mobile telecommunication services, in addition to the excise tax imposed 31 by subparagraph two of paragraph (a) of subdivision two of section one 32 hundred eighty-six-e of this article, at the rate of eighteen percent of 33 the tax imposed by subparagraph two of paragraph (a) of subdivision two 34 of section one hundred eighty-six-e of this article and such tax 35 surcharge shall only be applied if the gross receipts calculated under 36 such section is more than fifty million dollars. 37 (c) All the definitions and other provisions of section one hundred 38 eighty-six-e of this article shall apply to the tax imposed by this 39 subdivision with such modification and limitation as may be necessary in 40 order to adapt the language of such section one hundred eighty-six-e of 41 this article to the surcharge imposed by this subdivision within the 42 state so as to include any mobile telecommunications service provided by 43 a home service provider where the mobile telecommunications customer's 44 place of primary use is within the state. 45 3. Notwithstanding any other provision of state or local law, the tax 46 surcharge imposed by this section shall not be allowed as a deduction 47 and shall, to the extent deductible in determining federal adjusted 48 gross income, be added to federal adjusted gross income, in the computa- 49 tion of any tax imposed under this chapter or any other chapter of state 50 or local law. Furthermore, the credits otherwise allowable under this 51 article shall not be allowed against the tax surcharge imposed by this 52 section. 53 § 4. The tax law is amended by adding a new section 209-N to read as 54 follows: 55 § 209-N. Business tax surcharge on franchise corporations. 1. (a) For 56 the privilege of exercising its corporate franchise, or of doing busi-A. 3009--B 92 1 ness, or of employing capital, or of owning or leasing property in a 2 corporate or organized capacity, or of maintaining an office, or of 3 deriving receipts from activity in the state, for all or any part of its 4 taxable year, there is hereby imposed on every corporation, other than a 5 New York S corporation, subject to tax under section two hundred nine of 6 this article, or any receiver, referee, trustee, assignee or other fidu- 7 ciary, or any officer or agent appointed by any court, who conducts the 8 business of any such corporation, a tax surcharge, in addition to the 9 tax imposed under sections two hundred nine and two hundred nine-b of 10 this article, to be computed at the rate of eighteen percent of the tax 11 imposed under section two hundred nine of this article. Provided, howev- 12 er, this surcharge shall only be applied if the entire net income of the 13 taxpayer calculated under such section is more than one million dollars. 14 (b) All the definitions and other provisions of section two hundred 15 nine of this article shall apply to the tax imposed by this section with 16 such modification and limitation as may be necessary in order to adapt 17 the language of such section two hundred nine of this article to the 18 surcharge imposed by this section. 19 2. Notwithstanding any contrary provisions of state or local law, the 20 tax surcharge imposed under this section shall not be allowed as a 21 deduction in the computation of any tax imposed under this chapter. 22 Furthermore, the credits otherwise allowable under this article shall 23 not be allowed against the tax surcharge imposed by this section. 24 § 5. The tax law is amended by adding a new section 1506 to read as 25 follows: 26 § 1506. Business tax surcharge on insurance corporations. (a) Every 27 domestic insurance corporation and every foreign or alien insurance 28 corporation, and every life insurance corporation described in subdivi- 29 sion (b) of section fifteen hundred one of this article, for the privi- 30 lege of exercising its corporate franchise, or of doing business, or of 31 employing capital, or of owning or leasing property within the state in 32 a corporate or organized capacity, or of maintaining an office in the 33 state, except corporations specified in subdivision (c) of section 34 fifteen hundred twelve of this article, shall pay, in addition to the 35 taxes otherwise imposed by this article, a tax surcharge on the taxes 36 imposed under this article after the deduction of any credits otherwise 37 allowable under this article as allocated to such district. 38 (b) Such tax surcharge shall be computed at the rate of eighteen 39 percent of the taxes imposed under sections fifteen hundred one, fifteen 40 hundred two-a, and fifteen hundred ten of this article, as limited or 41 otherwise determined by subdivision (a) or (b) of section fifteen 42 hundred five of this article, after the deduction of any credits other- 43 wise allowable under this article. Provided, however, such surcharge 44 shall only be applied, in case of life insurance corporations, if the 45 entire net income calculated under section fifteen hundred three is more 46 than two million dollars; and in case of non-life insurance corpo- 47 rations, the surcharge shall only be applied if the gross direct premi- 48 ums less return premiums written on risks located or resident in this 49 state that are subject to the tax under section fifteen hundred two-a 50 and fifteen hundred ten of this article is more than fifty million 51 dollars. 52 (c) Notwithstanding any contrary provisions of state or local law, the 53 tax surcharge imposed under this section shall not be allowed as a 54 deduction in the computation of any state or local tax imposed under 55 this chapter or any chapter or local law. The credits set forth inA. 3009--B 93 1 section fifteen hundred eleven of this article shall not be allowed 2 against the tax surcharge imposed by this section. 3 (d) (1) If, by the laws of any state other than this state, or by the 4 action of any public official of such other state, any insurer organized 5 or domiciled in this state, or the duly authorized agents thereof, 6 subject to the business tax surcharge imposed by this section shall be 7 required to pay taxes for the privilege of doing business in such other 8 state which taxes are imposed or assessed because of the taxes imposed 9 or assessed under this section, in computing the tax imposed by this 10 section a credit shall be allowed for taxes paid to other states, which 11 credit shall be determined pursuant to the provisions of this section; 12 provided, however, the credit allowed any insurer under this subdivision 13 shall in no event be greater than the tax surcharge payable by such 14 insurer pursuant to this section for the taxable year with respect to 15 which such amount has been imposed or assessed by such other states. 16 (2) In addition to any other requirements of this article, an insurer 17 claiming a credit under this subdivision shall attach to the returns 18 required pursuant to this section and section fifteen hundred fifteen of 19 this article a computation identifying the credit attributable to taxes 20 paid to other states because of the tax surcharge imposed by this 21 section, which credit shall be further broken down to reflect amounts 22 and taxable years to which the retaliatory taxes giving rise to the 23 credit relate. The credit attributable to taxes paid to other states 24 because of the tax surcharge imposed by this section shall be the 25 difference between:(i) the credit which would be claimed by the insurer 26 pursuant to subdivision (c) of section fifteen hundred eleven of this 27 article if the tax surcharge imposed by this section were permitted in 28 the computation of such credit, and (ii) the credit which is claimed by 29 such insurer pursuant to such subdivision (c). 30 (3) To the extent not inconsistent with the provisions of this subdi- 31 vision, the provisions of paragraphs four and five of subdivision (c) of 32 section fifteen hundred eleven of this article shall apply with respect 33 to the credit allowed under this subdivision. 34 (4) No credit against taxes paid to other jurisdictions under subdivi- 35 sion (c) of section fifteen hundred eleven of this article shall be 36 allowed for any taxes paid under this section by any domestic insurance 37 corporation, including life insurance corporations subject to tax under 38 this section. 39 § 6. Subdivision 1 of section 197-a of the tax law, as amended by 40 section 8 of part Y of chapter 63 of the laws of 2000, is amended to 41 read as follows: 42 1. Every taxpayer subject to the taxes imposed under sections one 43 hundred eighty-two, one hundred eighty-two-a, former section one hundred 44 eighty-two-b, one hundred eighty-four, one hundred eighty-six-a or one 45 hundred eighty-six-e of this article shall make a declaration of its 46 estimated tax for the current taxable year, containing such information 47 as the commissioner may prescribe by regulations or instructions, if 48 such estimated tax can reasonably be expected to exceed one thousand 49 dollars. If a taxpayer is subject to the tax surcharge imposed under 50 section one hundred eighty-four-a or one hundred eighty-six-c of this 51 article [and], such taxpayer's estimated tax under section one hundred 52 eighty-four or one hundred eighty-six-a of this article and such taxpay- 53 er's estimated tax under section one hundred eighty-three-b, one hundred 54 eighty-four-b or one hundred eighty-six-h of this article, respectively, 55 can reasonably be expected to exceed one thousand dollars, such taxpayerA. 3009--B 94 1 shall also make a declaration of its estimated tax surcharge for the 2 current taxable year. 3 § 7. Paragraph (a) of subdivision 1 of section 197-b of the tax law, 4 as amended by section 7 of part Q of chapter 60 of the laws of 2016, is 5 amended to read as follows: 6 (a) For taxable years beginning on or after January first, nineteen 7 hundred seventy-seven, every taxpayer subject to tax under section one 8 hundred eighty-four, one hundred eighty-six-a or one hundred 9 eighty-six-e of this article, must pay in each year an amount equal to 10 (i) twenty-five percent of the tax imposed under each of such sections 11 for the second preceding taxable year if the second preceding year's tax 12 exceeded one thousand dollars but was equal to or less than one hundred 13 thousand dollars, or (ii) forty percent of the tax imposed under any of 14 these sections for the second preceding taxable year if the second 15 preceding year's tax exceeded one hundred thousand dollars. If the 16 second preceding year's tax under section one hundred eighty-four, one 17 hundred eighty-six-a or one hundred eighty-six-e of this article 18 exceeded one thousand dollars and the taxpayer is subject to the tax 19 surcharge imposed by section one hundred eighty-four-a [or], one hundred 20 eighty-six-c, one hundred eighty-three-b, one hundred eight-four-b, or 21 one hundred eighty-six-h of this article, respectively, the taxpayer 22 must also pay in each such year an amount equal to (i) twenty-five 23 percent of the tax surcharge imposed under such section for the second 24 preceding taxable year if the second preceding year's tax exceeded one 25 thousand dollars but was equal to or less than one hundred thousand 26 dollars, or (ii) forty percent of the tax surcharge imposed under that 27 section for the second preceding taxable year if the second preceding 28 year's tax exceeded one hundred thousand dollars. The amount or amounts 29 must be paid with the return or report required to be filed with respect 30 to the tax or tax surcharge for the preceding taxable year or with an 31 application for extension of the time for filing the return or report, 32 for taxable years beginning before January first, two thousand sixteen. 33 The amount or amounts that must be paid with respect to the tax or tax 34 surcharge for the second preceding year must be paid on or before the 35 fifteenth day of the third month following the close of the taxable 36 year, for taxable years beginning on or after January first, two thou- 37 sand sixteen. 38 § 8. Subdivision (a) of section 213-a of the tax law, as amended by 39 chapter 166 of the laws of 1991, is amended to read as follows: 40 (a) Requirement of declaration.--Every taxpayer subject to the tax 41 imposed by section two hundred nine of this [chapter] article shall make 42 a declaration of its estimated tax for the current privilege period, 43 containing such information as the commissioner of taxation and finance 44 may prescribe by regulations or instructions, if such estimated tax can 45 reasonably be expected to exceed one thousand dollars. If a taxpayer is 46 subject to the tax surcharge imposed under section two hundred nine-B of 47 this article or such taxpayer's estimated tax surcharge under section 48 two hundred nine-N of this article and such taxpayer's estimated tax 49 under section two hundred nine of this article can reasonably be 50 expected to exceed one thousand dollars, such taxpayer shall also make a 51 declaration of its estimated tax surcharge for the current privilege 52 period. 53 § 9. Subdivision (a) of section 213-b of the tax law, as amended by 54 section 4 of part Z of chapter 59 of the laws of 2019, is amended to 55 read as follows:A. 3009--B 95 1 (a) First installments for certain taxpayers.--In privilege periods of 2 twelve months ending at any time during the calendar year nineteen 3 hundred seventy and thereafter, every taxpayer subject to the tax 4 imposed by section two hundred nine of this [chapter] article must pay 5 with the report required to be filed for the preceding privilege period, 6 or with an application for extension of the time for filing the report, 7 for taxable years beginning before January first, two thousand sixteen, 8 and must pay on or before the fifteenth day of the third month of such 9 privilege periods, for taxable years beginning on or after January 10 first, two thousand sixteen, an amount equal to (i) twenty-five percent 11 of the second preceding year's tax if the second preceding year's tax 12 exceeded one thousand dollars but was equal to or less than one hundred 13 thousand dollars, or (ii) forty percent of the second preceding year's 14 tax if the second preceding year's tax exceeded one hundred thousand 15 dollars. If the second preceding year's tax under section two hundred 16 nine of this [chapter] article exceeded one thousand dollars and the 17 taxpayer is subject to the tax surcharge imposed by section two hundred 18 nine-B or two hundred nine-N of this [chapter] article, the taxpayer 19 must also pay with the tax surcharge report required to be filed for the 20 second preceding privilege period, or with an application for extension 21 of the time for filing the report, for taxable years beginning before 22 January first, two thousand sixteen, and must pay on or before the 23 fifteenth day of the third month of such privilege periods, for taxable 24 years beginning on or after January first, two thousand sixteen, an 25 amount equal to (i) twenty-five percent of the tax surcharge imposed for 26 the second preceding year if the second preceding year's tax was equal 27 to or less than one hundred thousand dollars, or (ii) forty percent of 28 the tax surcharge imposed for the second preceding year if the second 29 preceding year's tax exceeded one hundred thousand dollars. Provided, 30 however, that every taxpayer that is a New York S corporation must pay 31 with the report required to be filed for the preceding privilege period, 32 or with an application for extension of the time for filing the report, 33 an amount equal to (i) twenty-five percent of the preceding year's tax 34 if the preceding year's tax exceeded one thousand dollars but was equal 35 to or less than one hundred thousand dollars, or (ii) forty percent of 36 the preceding year's tax if the preceding year's tax exceeded one 37 hundred thousand dollars. 38 § 10. Subdivisions (a) and (b) of section 1513 of the tax law, subdi- 39 vision (a) as amended by chapter 166 of the laws of 1991 and subdivision 40 (b) as amended by section 25 of part H3 of chapter 62 of the laws of 41 2003, are amended to read as follows: 42 (a) Requirements of declaration.--Every taxpayer subject to the taxes 43 imposed under this article shall make a declaration of its estimated tax 44 for the current taxable year, containing such information as the commis- 45 sioner of taxation and finance may prescribe by regulations or 46 instructions, if such estimated tax can reasonably be expected to exceed 47 one thousand dollars. If a taxpayer is subject to the tax surcharge 48 imposed by section fifteen hundred five-a of this article and such 49 taxpayer's estimated tax under this article can (without regard to 50 section fifteen hundred five-a or fifteen hundred six of this article) 51 and such taxpayer's estimated tax under this article can (without regard 52 to section fifteen hundred five-a thereof) reasonably be expected to 53 exceed one thousand dollars, such taxpayer shall also make a declaration 54 of its estimated tax surcharge for the current taxable year. 55 (b) Definition of estimated tax and estimated tax surcharge. The terms 56 "estimated tax" and "estimated tax surcharge" mean the amounts which theA. 3009--B 96 1 taxpayer estimates to be the taxes imposed by sections fifteen hundred 2 one, fifteen hundred two-a and fifteen hundred ten of this article or 3 the tax surcharge imposed by section fifteen hundred five-a or fifteen 4 hundred six of this article, respectively, for the current taxable year, 5 less the sum of any credits which it estimates to be allowable against 6 such taxes or tax surcharge, respectively. 7 § 11. Paragraphs 1 and 2 of subdivision (a) of section 1514 of the tax 8 law, paragraph 1 as amended by section 15 and paragraph 2 as amended by 9 section 15-a of part Q of chapter 60 of the laws of 2016, are amended to 10 read as follows: 11 (1) Except as otherwise provided in paragraph two of this subdivision, 12 for taxable years beginning on or after January first, nineteen hundred 13 seventy-six, every taxpayer subject to tax under this article must pay 14 in each year an amount equal to (i) twenty-five percent of the tax 15 imposed under this article for the second preceding taxable year if the 16 second preceding year's tax exceeded one thousand dollars but was equal 17 to or less than one hundred thousand dollars, or (ii) forty percent of 18 the tax imposed under this article for the second preceding taxable year 19 if the second preceding year's tax exceeded one hundred thousand 20 dollars. If the second preceding year's tax exceeded one thousand 21 dollars and the taxpayer is subject to the tax surcharge imposed by 22 section fifteen hundred five-a or fifteen hundred six of this article, 23 the taxpayer must also pay an amount equal to (i) twenty-five percent of 24 the tax surcharge imposed under section fifteen hundred five-a or 25 fifteen hundred six of this article for the second preceding taxable 26 year if the second preceding year's tax was equal to or less than one 27 hundred thousand dollars, or (ii) forty percent of the tax surcharge 28 imposed for the second preceding taxable year if the second preceding 29 year's tax exceeded one hundred thousand dollars. 30 (2) For taxable years beginning on or after January first, nineteen 31 hundred ninety-nine, every taxpayer subject to tax under paragraph one 32 of subdivision (b) of section fifteen hundred ten of this article shall 33 pay in each such year an amount equal to forty percent of the tax 34 imposed under such article for the second preceding taxable year, if 35 such second preceding year's tax exceeded one thousand dollars. If such 36 second preceding year's tax exceeded one thousand dollars and such 37 taxpayer is subject to the tax surcharge imposed by section fifteen 38 hundred five-a or fifteen hundred six of this article, such taxpayer 39 shall also pay an amount equal to forty percent of the tax surcharge 40 imposed under section fifteen hundred five-a or fifteen hundred six of 41 this article for the second preceding taxable year. 42 § 12. Notwithstanding any provision of law to the contrary, in deter- 43 mination of the amount of the estimated surcharge payment imposed by 44 this act shall be prescribed by regulations of the commissioner of taxa- 45 tion and finance. The commissioner of taxation and finance shall adjust 46 the methods of such estimated surcharge payment in regard to the first 47 taxable year beginning on or after January 1, 2021 in a manner as to 48 result in an amount substantially equal to the tax reasonably estimated 49 to be due for such taxable year. In addition, such commissioner shall 50 adjust the due date on the installment payment so that the taxpayers may 51 have reasonable time to report such payment to be made quarterly or as 52 soon as practicable for such taxable year. Any regulations to implement 53 the surcharge shall be adopted and become effective as soon as practica- 54 ble and the commissioner of taxation and finance may adopt such regu- 55 lations on an emergency basis notwithstanding anything to the contrary 56 in the state administrative procedure act. Further, no addition to taxA. 3009--B 97 1 under subsection (c) of section 1085 of the tax law shall be imposed 2 with respect to required declarations or payments of estimated tax 3 surcharge under this act provided that the taxpayers file such declara- 4 tions otherwise required to be filed and payments otherwise made no 5 later than the date determined by the commissioner on which an install- 6 ment of estimated tax surcharge is required to be paid. 7 § 13. This act shall take effect immediately and shall apply to taxa- 8 ble years on or after January 1, 2021 and shall expire and be deemed 9 repealed December 31, 2025. 10 PART PP 11 Section 1. Subparagraph (iv) of paragraph (a) of subdivision 1 of 12 section 210 of the tax law, as amended by section 12 of part A of chap- 13 ter 59 of the laws of 2014, is amended to read as follows: 14 (iv) for taxable years beginning before January first, two thousand 15 sixteen, if the business income base is not more than two hundred ninety 16 thousand dollars the amount shall be six and one-half percent of the 17 business income base; if the business income base is more than two 18 hundred ninety thousand dollars but not over three hundred ninety thou- 19 sand dollars the amount shall be the sum of (1) eighteen thousand eight 20 hundred fifty dollars, (2) seven and one-tenth percent of the excess of 21 the business income base over two hundred ninety thousand dollars but 22 not over three hundred ninety thousand dollars and (3) four and thirty- 23 five hundredths percent of the excess of the business income base over 24 three hundred fifty thousand dollars but not over three hundred ninety 25 thousand dollars. For taxable years beginning on or after January first, 26 two thousand twenty-one the amount shall be four percent of the taxpay- 27 er's business income base; 28 § 2. Paragraph (d) of subdivision 1 of section 210-B of the tax law, 29 as amended by section 31 of part T of chapter 59 of the laws of 2015, is 30 amended to read as follows: 31 (d) Except as otherwise provided in this paragraph, the credit allowed 32 under this subdivision for any taxable year shall not reduce the tax due 33 for such year to less than the fixed dollar minimum amount prescribed in 34 paragraph (d) of subdivision one of section two hundred ten of this 35 article. However, if the amount of credit allowable under this subdivi- 36 sion for any taxable year reduces the tax to such amount or if the 37 taxpayer otherwise pays tax based on the fixed dollar minimum amount, 38 any amount of credit allowed for a taxable year commencing prior to 39 January first, nineteen hundred eighty-seven and not deductible in such 40 taxable year may be carried over to the following year or years and may 41 be deducted from the taxpayer's tax for such year or years but in no 42 event shall such credit be carried over to taxable years commencing on 43 or after January first, two thousand two, and any amount of credit 44 allowed for a taxable year commencing on or after January first, nine- 45 teen hundred eighty-seven and not deductible in such year may be carried 46 over to the fifteen taxable years next following such taxable year and 47 may be deducted from the taxpayer's tax for such year or years. In lieu 48 of such carryover, any such taxpayer which qualifies as a new business 49 under paragraph (f) of this subdivision or a taxpayer that qualifies as 50 an eligible farmer for purposes of paragraph (b) of subdivision eleven 51 of this section may elect to treat the amount of such carryover as an 52 overpayment of tax to be credited or refunded in accordance with the 53 provisions of section ten hundred eighty-six of this chapter, provided, 54 however, the provisions of subsection (c) of section ten hundred eight-A. 3009--B 98 1 y-eight of this chapter notwithstanding, no interest shall be paid ther- 2 eon. 3 § 3. Paragraph 5 of subsection (a) of section 606 of the tax law, as 4 amended by chapter 170 of the laws of 1994, is amended to read as 5 follows: 6 (5) If the amount of credit allowable under this subsection for any 7 taxable year shall exceed the taxpayer's tax for such year, the excess 8 allowed for a taxable year commencing prior to January first, nineteen 9 hundred eighty-seven may be carried over to the following year or years 10 and may be deducted from the taxpayer's tax for such year or years, but 11 in no event shall such credit be carried over to taxable years commenc- 12 ing on or after January first, nineteen hundred ninety-seven, and any 13 amount of credit allowed for a taxable year commencing on or after Janu- 14 ary first, nineteen hundred eighty-seven and not deductible in such year 15 may be carried over to the ten taxable years next following such taxable 16 year and may be deducted from the taxpayer's tax for such year or years. 17 In lieu of carrying over any such excess, a taxpayer who qualifies as an 18 owner of a new business for purposes of paragraph ten of this subsection 19 or a taxpayer who qualifies as an eligible farmer for purposes of para- 20 graph two of subsection (n) of this section may, at his option, receive 21 such excess as a refund. Any refund paid pursuant to this paragraph 22 shall be deemed to be a refund of an overpayment of tax as provided in 23 section six hundred eighty-six of this article, provided, however, that 24 no interest shall be paid thereon. 25 § 4. Paragraph 39 of subsection (c) of section 612 of the tax law, as 26 added by section 1 of part Y of chapter 59 of the laws of 2013, is 27 amended to read as follows: 28 (39) In the case of a taxpayer who is a small business who has busi- 29 ness income and/or farm income as defined in the laws of the United 30 States, an amount equal to three percent of the net items of income, 31 gain, loss and deduction attributable to such business or farm entering 32 into federal adjusted gross income, but not less than zero, for taxable 33 years beginning after two thousand thirteen, an amount equal to three 34 and three-quarters percent of the net items of income, gain, loss and 35 deduction attributable to such business or farm entering into federal 36 adjusted gross income, but not less than zero, for taxable years begin- 37 ning after two thousand fourteen, [and] an amount equal to five percent 38 of the net items of income, gain, loss and deduction attributable to 39 such business or farm entering into federal adjusted gross income, but 40 not less than zero, for taxable years beginning after two thousand 41 fifteen, and an amount equal to fifteen percent of the net items of 42 income, gain, loss and deduction attributable to such business or farm 43 entering into federal adjusted gross income, but not less than zero, for 44 taxable years beginning after two thousand twenty. For the purposes of 45 this paragraph, the term small business shall mean a sole proprietor or 46 a farm business who employs one or more persons during the taxable year 47 and who has net business income or net farm income of less than two 48 hundred fifty thousand dollars. 49 § 5. Paragraph 1 of subsection (c) of section 1085 of the tax law, as 50 amended by section 4 of part KK of chapter 59 of the laws of 2018, is 51 amended to read as follows: 52 (1) If any taxpayer, except a New York S corporation as defined in 53 subdivision one-A of section two hundred eight of this chapter, fails to 54 file a declaration of estimated tax under article nine-A of this chap- 55 ter, or fails to pay all or any part of an amount which is applied as an 56 installment against such estimated tax, it shall be deemed to have madeA. 3009--B 99 1 an underpayment of estimated tax. There shall be added to the tax for 2 the taxable year an amount at the underpayment rate set by the commis- 3 sioner pursuant to section one thousand ninety-six of this article, or 4 if no rate is set, at the rate of seven and one-half percent per annum 5 upon the amount of the underpayment for the period of the underpayment 6 but not beyond the fifteenth day of the fourth month following the close 7 of the taxable year. Provided, however, that, for taxable years begin- 8 ning on or after January first, two thousand seventeen and before Janu- 9 ary first, two thousand eighteen, no amount shall be added to the tax 10 with respect to the portion of such tax related to the amount of any 11 interest deductions directly or indirectly attributable to the amount 12 included in exempt CFC income pursuant to subparagraph (ii) of paragraph 13 (b) of subdivision six-a of section two hundred eight of this chapter or 14 the forty percent reduction of such exempt CFC income in lieu of inter- 15 est attribution if the election described in paragraph (b) of subdivi- 16 sion six-a of such section is made. The amount of the underpayment shall 17 be, with respect to any installment of estimated tax computed on the 18 basis of either the preceding year's tax or the second preceding year's 19 tax, the excess of the amount required to be paid over the amount, if 20 any, paid on or before the last day prescribed for such payment or, with 21 respect to any other installment of estimated tax, the excess of the 22 amount of the installment which would be required to be paid if the 23 estimated tax were equal to ninety-one percent of the tax shown on the 24 return for the taxable year (or if no return was filed, ninety-one 25 percent of the tax for such year) over the amount, if any, of the 26 installment paid on or before the last day prescribed for such payment. 27 In any case in which there would be no underpayment if "eighty percent" 28 were substituted for "ninety-one percent" each place it appears in this 29 subsection, the addition to the tax shall be equal to seventy-five 30 percent of the amount otherwise determined. No underpayment shall be 31 deemed to exist with respect to a declaration or installment otherwise 32 due on or after the termination of existence of the taxpayer. 33 § 6. This act shall take effect immediately; provided however that 34 sections two and three of this act shall apply to property acquired by 35 purchase on or after January 1, 2021, and section five of this act shall 36 apply to taxable years beginning on or after January 1, 2021. 37 PART QQ 38 Section 1. Subparagraph (A) of paragraph 1 of subsection (oo) of 39 section 606 of the tax law, as amended by section 1 of part RR of chap- 40 ter 59 of the laws of 2018, is amended and a new paragraph 6 is added to 41 read as follows: 42 (A) For taxable years beginning on or after January first, two thou- 43 sand ten and before January first, two thousand twenty-five, a taxpayer 44 shall be allowed a credit as hereinafter provided, against the tax 45 imposed by this article, in an amount equal to one hundred percent of 46 the amount of credit allowed the taxpayer with respect to a certified 47 historic structure, and one hundred fifty percent of the amount of cred- 48 it allowed the taxpayer with respect to a certified historic structure 49 that is a small project, under internal revenue code section 47(c)(3), 50 determined without regard to ratably allocating the credit over a five 51 year period as required by subsection (a) of such section 47, with 52 respect to a certified historic structure located within the state. 53 Provided, however, the credit shall not exceed five million dollars. For 54 taxable years beginning on or after January first, two thousand twenty-A. 3009--B 100 1 five, a taxpayer shall be allowed a credit as hereinafter provided, 2 against the tax imposed by this article, in an amount equal to thirty 3 percent of the amount of credit allowed the taxpayer with respect to a 4 certified historic structure under internal revenue code section 5 47(c)(3), determined without regard to ratably allocating the credit 6 over a five year period as required by subsection (a) of such section 7 47, with respect to a certified historic structure located within the 8 state; provided, however, the credit shall not exceed one hundred thou- 9 sand dollars. 10 (6) For purposes of this subsection the term "small project" means 11 qualified rehabilitation expenditures totaling two million five hundred 12 thousand dollars or less. 13 § 2. Subparagraph (i) of paragraph (a) of subdivision 26 of section 14 210-B of the tax law, as amended by section 2 of part RR of chapter 59 15 of the laws of 2018, is amended and a new paragraph (f) is added to read 16 as follows: 17 (i) For taxable years beginning on or after January first, two thou- 18 sand ten, and before January first, two thousand twenty-five, a taxpayer 19 shall be allowed a credit as hereinafter provided, against the tax 20 imposed by this article, in an amount equal to one hundred percent of 21 the amount of credit allowed the taxpayer for the same taxable year with 22 respect to a certified historic structure, and one hundred fifty percent 23 of the amount of credit allowed the taxpayer with respect to a certified 24 historic structure that is a small project, under internal revenue code 25 section 47(c)(3), determined without regard to ratably allocating the 26 credit over a five year period as required by subsection (a) of such 27 section 47, with respect to a certified historic structure located with- 28 in the state. Provided, however, the credit shall not exceed five 29 million dollars. 30 (f) For purposes of this subdivision "small project" means qualified 31 rehabilitation expenditures totaling two million five hundred thousand 32 dollars or less. 33 § 3. Subparagraph (A) of paragraph 1 of subdivision (y) of section 34 1511 of the tax law, as amended by section 3 of part RR of chapter 59 of 35 the laws of 2018, is amended and a new paragraph 6 is added to read as 36 follows: 37 (A) For taxable years beginning on or after January first, two thou- 38 sand ten and before January first, two thousand twenty-five, a taxpayer 39 shall be allowed a credit as hereinafter provided, against the tax 40 imposed by this article, in an amount equal to one hundred percent of 41 the amount of credit allowed the taxpayer with respect to a certified 42 historic structure, and one hundred fifty percent of the amount of cred- 43 it allowed the taxpayer with respect to a certified historic structure 44 that is a small project, under internal revenue code section 47(c)(3), 45 determined without regard to ratably allocating the credit over a five 46 year period as required by subsection (a) of such section 47, with 47 respect to a certified historic structure located within the state. 48 Provided, however, the credit shall not exceed five million dollars. For 49 taxable years beginning on or after January first, two thousand twenty- 50 five, a taxpayer shall be allowed a credit as hereinafter provided, 51 against the tax imposed by this article, in an amount equal to thirty 52 percent of the amount of credit allowed the taxpayer with respect to a 53 certified historic structure under internal revenue code section 54 47(c)(3), determined without regard to ratably allocating the credit 55 over a five year period as required by subsection (a) of such section 47 56 with respect to a certified historic structure located within the state.A. 3009--B 101 1 Provided, however, the credit shall not exceed one hundred thousand 2 dollars. 3 (6) For purposes of this subdivision "small project" means qualified 4 rehabilitation expenditures totaling two million five hundred thousand 5 dollars or less. 6 § 4. This act shall take effect immediately and shall apply to taxable 7 years beginning on and after January 1, 2022. 8 PART RR 9 Section 1. Subdivisions 17 and 20-a of section 352 of the economic 10 development law, subdivision 17 as amended by section 1 of part K and 11 subdivision 20-a as added by section 1 of part ZZ of chapter 59 of the 12 laws of 2017, are amended and a new subdivision 18-a is added to read as 13 follows: 14 17. "Qualified investment" means an investment in tangible property 15 (including a building or a structural component of a building) owned by 16 a business enterprise which: 17 (a) is depreciable pursuant to section one hundred sixty-seven of the 18 internal revenue code; 19 (b) has a useful life of four years or more; 20 (c) is acquired by purchase as defined in section one hundred seven- 21 ty-nine (d) of the internal revenue code; 22 (d) has a situs in this state; [and] 23 (e) is placed in service in the state on or after the date the certif- 24 icate of eligibility is issued to the business enterprise; and 25 (f) demolition and remediation of costs incurred and paid in the 26 leased building by the business enterprise in a public housing develop- 27 ment in the state, as determined by the commissioner. 28 18-a. "Community significant project" means (a) a business creating or 29 retaining current jobs as determined by the commissioner, with partic- 30 ular emphasis on employment and/or training of current public housing 31 residents; (b) currently located or to be located in existing leased 32 space of a building in a public housing development in the state that is 33 owned and operated by a public housing authority created under article 34 thirteen of the public housing law; (c) which makes significant quali- 35 fied capital investments to start a business, or improve services and 36 working conditions for an existing business, when located in such public 37 housing space; and (d) creates at least five new net jobs or retaining 38 current jobs or makes qualified capital investments to such space of a 39 building. The commissioner shall promulgate regulations pursuant to 40 section three hundred fifty-six of this article to determine what addi- 41 tional criteria a business must meet to be eligible as a community 42 significant project, including, but not limited to, incentivizing child 43 care providers and other businesses that support the needs of the work- 44 force residing in such public housing and the social and health needs of 45 residents in such public housing, ensuring that residents are not 46 displaced and ensuring that services or programs being offered to public 47 housing residents by either a public housing authority or an entity 48 already onsite, are not displaced in order to locate or expand a busi- 49 ness in a public housing development. 50 20-a. "Significant capital investment" means a project which will be 51 either a newly constructed facility or a newly constructed addition to, 52 expansion of or improvement of a facility, consisting of tangible 53 personal property and other tangible property, including buildings and 54 structural components of buildings, that are depreciable pursuant toA. 3009--B 102 1 section one hundred sixty-seven of the internal revenue code, have a 2 useful life of four years or more, are acquired by purchase as defined 3 in section one hundred seventy-nine (d) of the internal revenue code, 4 and that is equal to or exceeds (a) one million dollars for a manufac- 5 turer; (b) two hundred fifty thousand dollars for an agriculture busi- 6 ness; (c) three million dollars for a financial services firm or back 7 office operation; (d) fifteen million dollars for a distribution center; 8 (e) three million dollars for a scientific research and development 9 firm; [or] (f) three million dollars for other businesses; or (g) one 10 million dollars for a community significant project. 11 § 2. Subdivisions 1, 3 and 4 of section 353 of the economic develop- 12 ment law, subdivision 1 as amended by section 2 of part L of chapter 59 13 of the laws of 2020, subdivision 3 as separately amended by section 2 of 14 part K and section 2 of part ZZ and subdivision 4 as separately amended 15 by section 3 of part K and section 2 of part ZZ of chapter 59 of the 16 laws of 2017, are amended to read as follows: 17 1. To be a participant in the excelsior jobs program, a business enti- 18 ty shall operate in New York state predominantly: 19 (a) as a financial services data center or a financial services back 20 office operation; 21 (b) in manufacturing; 22 (c) in software development and new media; 23 (d) in scientific research and development; 24 (e) in agriculture; 25 (f) in the creation or expansion of back office operations in the 26 state; 27 (g) in a distribution center; 28 (h) in an industry with significant potential for private-sector 29 economic growth and development in this state as established by the 30 commissioner in regulations promulgated pursuant to this article. In 31 promulgating such regulations the commissioner shall include job and 32 investment criteria; 33 (i) as an entertainment company; 34 (j) in music production; 35 (k) as a life sciences company; [or] 36 (l) as a company operating in one of the industries listed in para- 37 graphs (b) through (e) of this subdivision and engaging in a green 38 project as defined in section three hundred fifty-two of this article; 39 or 40 (m) as a community significant project. 41 3. For the purposes of this article, in order to participate in the 42 excelsior jobs program, a business entity operating predominantly in 43 manufacturing must create at least five net new jobs; a business entity 44 operating predominately in agriculture must create at least five net new 45 jobs; a business entity operating predominantly as a financial service 46 data center or financial services customer back office operation must 47 create at least twenty-five net new jobs; a business entity operating 48 predominantly in scientific research and development must create at 49 least five net new jobs; a business entity operating predominantly in 50 software development must create at least five net new jobs; a business 51 entity creating or expanding back office operations must create at least 52 twenty-five net new jobs; a business entity operating predominately in 53 music production must create at least five net new jobs; a business 54 entity operating predominantly as an entertainment company must create 55 or obtain at least one hundred net new jobs; [or] a business entity 56 operating predominantly as a distribution center in the state mustA. 3009--B 103 1 create at least fifty net new jobs, notwithstanding subdivision five of 2 this section; [or] a business entity operating predominately as a life 3 sciences company must create at least five net new jobs; [or] a business 4 entity must be a regionally significant project as defined in this arti- 5 cle; or a community significant project as defined in this article; or 6 4. A business entity operating predominantly in one of the industries 7 referenced in paragraphs (a) through (h) or in paragraph (k) or (m) of 8 subdivision one of this section but which does not meet the job require- 9 ments of subdivision three of this section must have at least twenty- 10 five full-time job equivalents unless such business is a business entity 11 operating predominantly in manufacturing then it must have at least five 12 full-time job equivalents and must demonstrate that its benefit-cost 13 ratio is at least ten to one. 14 § 3. Paragraph (a) of subdivision 4 of section 355 of the economic 15 development law, as amended by section 4 of part G of chapter 61 of the 16 laws of 2011, is amended to read as follows: 17 (a) A participant in the excelsior jobs program who either qualified 18 as a regionally significant project, a community significant project or 19 is located in an investment zone shall be eligible to claim a credit for 20 a period of ten years. For the purposes of this subdivision, the lease 21 payment paid by the business enterprise pursuant to a public housing 22 development in this state shall be eligible real property tax for 23 purposes of this subdivision. 24 § 4. This act shall take effect immediately and shall apply to taxable 25 years beginning on and after January 1, 2022. 26 PART SS 27 Section 1. Notwithstanding any inconsistent provision of law, for 28 taxable years beginning in two thousand twenty and before two thousand 29 twenty-two, the Commissioner of Taxation and Finance is authorized to 30 waive employment location requirements for any business receiving a 31 credit authorized under the tax law, if the recipient can demonstrate 32 that the employment location requirement of such credit would have 33 otherwise been met if not for the restrictions related to the state of 34 emergency declared pursuant to executive order 202 of 2020 or any exten- 35 sion or subsequent executive order issued in response to the novel coro- 36 navirus (COVID-19) pandemic, and the related employee remained employed 37 by such business and is or was authorized or required to perform 38 assigned work duties and requirements from a remote location. 39 § 2. This act shall take effect immediately and shall be deemed to 40 have been in full force and effect on and after March 7, 2020. 41 PART TT 42 Section 1. Clause (i) of subparagraph 1 of paragraph (b) of subdivi- 43 sion 1 of section 210 of the tax law, as amended by section 18 of part T 44 of chapter 59 of the laws of 2015, is amended to read as follows: 45 (i) The amount prescribed by this paragraph shall be computed at .15 46 percent for each dollar of the taxpayer's total business capital, or the 47 portion thereof apportioned within the state as hereinafter provided for 48 taxable years beginning before January first, two thousand sixteen. 49 However, in the case of a cooperative housing corporation as defined in 50 the internal revenue code, the applicable rate shall be .04 percent 51 until taxable years beginning on or after January first, two thousand 52 twenty. The rate of tax for subsequent tax years shall be as follows:A. 3009--B 104 1 .125 percent for taxable years beginning on or after January first, two 2 thousand sixteen and before January first, two thousand seventeen; .100 3 percent for taxable years beginning on or after January first, two thou- 4 sand seventeen and before January first, two thousand eighteen; .075 5 percent for taxable years beginning on or after January first, two thou- 6 sand eighteen and before January first, two thousand nineteen; .050 7 percent for taxable years beginning on or after January first, two thou- 8 sand nineteen and before January first, two thousand twenty; .025 9 percent for taxable years beginning on or after January first, two thou- 10 sand twenty and before January first, two thousand twenty-one; and zero 11 percent for years beginning on or after January first, two thousand 12 twenty-one. The rate of tax for a qualified New York manufacturer shall 13 be .132 percent for taxable years beginning on or after January first, 14 two thousand fifteen and before January first, two thousand sixteen, 15 .106 percent for taxable years beginning on or after January first, two 16 thousand sixteen and before January first, two thousand seventeen, .085 17 percent for taxable years beginning on or after January first, two thou- 18 sand seventeen and before January first, two thousand eighteen; .056 19 percent for taxable years beginning on or after January first, two thou- 20 sand eighteen and before January first, two thousand nineteen; .038 21 percent for taxable years beginning on or after January first, two thou- 22 sand nineteen and before January first, thousand twenty; .019 percent 23 for taxable years beginning on or after January first, two thousand 24 twenty and before January first, two thousand twenty-one; and [zero] .15 25 percent for years beginning on or after January first, two thousand 26 twenty-one. 27 § 2. This shall take effect immediately. 28 PART UU 29 Section 1. Paragraph 7 of subdivision (c) of section 1261 of the tax 30 law is REPEALED. 31 § 2. Subparagraph (ii) of paragraph 5 of subdivision (c) of section 32 1261 of the tax law, as amended by section 2 of part ZZ of chapter 56 of 33 the laws of 2020, is amended to read as follows: 34 (ii) After withholding the taxes, penalties and interest imposed by 35 the city of New York on and after August first, two thousand eight as 36 provided in subparagraph (i) of this paragraph, the comptroller shall 37 withhold a portion of such taxes, penalties and interest sufficient to 38 deposit annually into the central business district tolling capital 39 lockbox established pursuant to section five hundred fifty-three-j of 40 the public authorities law: (A) in state fiscal year two thousand nine- 41 teen - two thousand twenty, one hundred twenty-seven million five 42 hundred thousand dollars; (B) in state fiscal year two thousand twenty - 43 two thousand twenty-one, one hundred seventy million dollars; (C) in 44 state fiscal year two thousand twenty-one - two thousand twenty-two and 45 every succeeding state fiscal year, an amount equal to one hundred one 46 percent of the amount deposited in the immediately preceding state 47 fiscal year. The funds shall be deposited monthly in equal installments. 48 During the period that the comptroller is required to withhold amounts 49 and make payments described in this paragraph, the city of New York has 50 no right, title or interest in or to those taxes, penalties and interest 51 required to be paid into the above referenced central business district 52 tolling capital lockbox. [In addition, the comptroller shall withhold a53portion of such taxes, penalties and interest in the amount of two54hundred million dollars, to be withheld in four quarterly installmentsA. 3009--B 105 1on January fifteenth, April fifteenth, July fifteenth and October2fifteenth of each year, and shall deposit such amounts into the New York3State Agency Trust Fund, Distressed Provider Assistance Account.] 4 § 3. This act shall take effect April 1, 2021; provided however that 5 the amendments to subparagraph (ii) of paragraph 5 of subdivision (c) of 6 section 1261 of the tax law made by section two of this act shall not 7 affect the expiration of such subparagraph and shall be deemed to expire 8 therewith. 9 PART VV 10 Section 1. The real property law is amended by adding a new section 11 291-k to read as follows: 12 § 291-k. Recording of mezzanine debt and preferred equity investments. 13 1. Whenever a mortgage instrument is recorded in the office of the 14 recording officer of any county, any mezzanine debt or preferred equity 15 investment related to the real property upon which the mortgage instru- 16 ment is filed shall also be recorded with such mortgage instrument. For 17 the purposes of this section, "mezzanine debt" and "preferred equity 18 investments" shall mean debt carried by a borrower that may be subordi- 19 nate to the primary lien and is senior to the common shares of an entity 20 or the borrower's equity and reported as assets for the purposes of 21 financing such primary lien. This shall include non-traditional financ- 22 ing techniques such as a direct or indirect investment by a financing 23 source in an entity that owns the equity interests of the underlying 24 mortgage where the financing source has special rights or preferred 25 rights such as: (i) the right to receive a special or preferred rate of 26 return on its capital investment; and (ii) the right to an accelerated 27 repayment of the investors' capital contribution. 28 2. This section shall apply to both mezzanine debt and preferred equi- 29 ty investments if both used by the borrower or mortgagor, or either 30 mezzanine debt or preferred debt, if either is used by the borrower or 31 mortgagor. 32 3. For purposes of this section, "mezzanine debt" and "preferred equi- 33 ty investments" shall not include debt on cooperative or common shares 34 of a residential dwelling where the unit owner of a cooperative apart- 35 ment is a shareholder of the ownership entity, has exclusive occupancy 36 of such dwelling unit, and has established and delimited rights under a 37 proprietary lease. 38 4. No remedy otherwise available to a secured party under the uniform 39 commercial code shall be available to enforce a security agreement 40 pertaining to mezzanine debt financing and/or preferred equity invest- 41 ments in relation to real property upon which a mortgage instrument is 42 filed that is evidenced by a financing statement, unless that financing 43 statement is filed and the tax imposed pursuant to the authority of 44 subdivision four of section two hundred fifty-three of the tax law, has 45 been paid. 46 § 2. Section 9-601 of the uniform commercial code is amended by adding 47 a new subsection (h) to read as follows: 48 (h) Security interest perfected by financing statement. 1. Notwith- 49 standing any provision of law to the contrary, a security interest in 50 mezzanine debt and/or preferred equity investments related to the real 51 property upon which a mortgage instrument is filed, may only be 52 perfected by the filing of a financing statement under subpart 1 of part 53 5 of this article and only after the payment of any taxes due pursuant 54 to section two hundred fifty-three of the tax law.A. 3009--B 106 1 2. For purposes of this section, the terms "mezzanine debt" and 2 "preferred equity investments" shall have the same meaning as provided 3 in section two hundred ninety-one-k of the real property law. 4 3. This section shall not be applicable to any debt on cooperative or 5 common shares of a residential dwelling where the unit owner of a coop- 6 erative apartment is a shareholder of the ownership entity, has exclu- 7 sive occupancy of such dwelling unit, and has established and delimited 8 rights under a proprietary lease. 9 § 3. Paragraph (a) of subdivision 2 of section 250 of the tax law, as 10 amended by section 1 of part Q of chapter 60 of the laws of 2004, is 11 amended to read as follows: 12 (a) (1) The term "mortgage" as used in this article includes every 13 mortgage or deed of trust which imposes a lien on or affects the title 14 to real property, notwithstanding that such property may form a part of 15 the security for the debt or debts secured thereby. An assignment of 16 rents to accrue from tenancies, subtenancies, leases or subleases of 17 real property, within any city in the state having a population of one 18 million or more, given as security for an indebtedness, shall be deemed 19 a mortgage of real property for purposes of this article. Executory 20 contracts for the sale of real property under which the vendee has or is 21 entitled to possession shall be deemed to be mortgages for the purposes 22 of this article and shall be taxable at the amount unpaid on such 23 contracts. A contract or agreement by which the indebtedness secured by 24 any mortgage is increased or added to, shall be deemed a mortgage of 25 real property for the purpose of this article, and shall be taxable as 26 such upon the amount of such increase or addition. 27 (2) Notwithstanding anything in this section or section two hundred 28 fifty-five of this article to the contrary, a contract or agreement 29 whereby the proceeds of any indebtedness secured by a mortgage of real 30 property in any city in the state having a population of one million or 31 more are used to reduce all or any part of a mortgagee's equity interest 32 in a wraparound or similar mortgage of such real property shall be 33 deemed a mortgage of real property for the purposes of this article and 34 shall be taxable as such to the extent of the amount of such proceeds so 35 used, without regard to whether the aggregate amount of indebtedness 36 secured by mortgages of such real property is increased or added to. 37 (3) Notwithstanding any provision to the contrary in this section or 38 section two hundred fifty-five of this article, "mezzanine debt" and 39 "preferred equity investments" as such terms are defined in subdivision 40 four of this section, shall be taxable and shall apply to taxes in 41 subdivisions one, one-a and two of section two hundred fifty-three of 42 this article, but shall not apply to any other taxes in this article on 43 or after the effective date of this subparagraph. 44 § 4. Section 250 of the tax law is amended by adding a new subdivi- 45 sion 4 to read as follows: 46 4. The term "mezzanine debt" and "preferred equity investment" shall 47 have the same meaning as provided in section two hundred ninety-one-k of 48 the real property law. 49 § 5. Section 253 of the tax law as amended by adding a new subdivi- 50 sion 4 to read as follows: 51 4. (a) A tax, measured by the amount of principal debtor obligation 52 which is under any contingency may be secured at the date of the 53 execution thereof, or at any time thereafter, by a security agreement 54 pertaining to mezzanine debt financing and/or preferred equity invest- 55 ments in relation to real property upon which a mortgage instrument isA. 3009--B 107 1 filed, as evidenced by a financing statement, is imposed on the filing 2 of the financing statement. 3 (b) The rate and incidence of the tax shall be determined pursuant to 4 subdivisions one, one-a, and two of this section. 5 (c) Except as otherwise provided in this subdivision, all the 6 provisions of this article relating to or applicable to the adminis- 7 tration, collection, determination and distribution of the tax imposed 8 by this section shall apply to the tax imposed under the authority of 9 this subdivision with such modification as may be necessary to adapt 10 such language to the tax so authorized. Any reference to a mortgage will 11 be deemed to be a reference to a financing statement that evidences a 12 security agreement. Such provisions shall apply with the same force and 13 effect as if those provisions had been set forth in this subdivision 14 except to the extent that any provision is either inconsistent with a 15 provision of this subdivision or not relevant to the tax authorized by 16 this subdivision. 17 (d) No remedy otherwise available to a secured party under the uniform 18 commercial code shall be available to enforce a security agreement 19 pertaining to mezzanine debt financing and/or preferred equity invest- 20 ments in relation to real property upon which a mortgage instrument is 21 filed that is evidenced by a financing statement, unless that financing 22 statement is filed and the tax imposed pursuant to the authority of this 23 subdivision has been paid. 24 (e) For the purposes of this subdivision: 25 (1) "mezzanine debt" and "preferred equity investments" shall have the 26 same meaning as provided in section two hundred ninety-one-k of the real 27 property law. 28 (2) "financing statement" means a record or records composed of an 29 initial financing statement and any filed record relating to the initial 30 financing statement. 31 (3) "security agreement" means an agreement that creates or provides 32 for a security interest. 33 (f) Counties or cities authorized under this article to impose a tax 34 are authorized and empowered to adopt and amend local laws to impose in 35 such county or city a tax on the filing of financing statements pertain- 36 ing to mezzanine debt financing and/or preferred equity investments in 37 relation to real property upon which a mortgage instrument is filed. Any 38 tax that has been imposed by a county or city under the authority of 39 this article shall be deemed to include the authority to impose and 40 collect the tax on the recording of a financing statement pertaining to 41 mezzanine debt financing and/or preferred equity investments in relation 42 to real property upon which a mortgage instrument is filed in the same 43 manner as the local mortgage recording tax. 44 § 6. Subdivision 1 and paragraph (a) of subdivision 2 of section 253-a 45 of the tax law, as amended by chapter 343 of the laws of 1990, are 46 amended to read as follows: 47 1. Any city in this state having a population of one million or more, 48 acting through its local legislative body, is hereby authorized and 49 empowered to adopt and amend local laws imposing in any such city (A) 50 prior to February first, nineteen hundred eighty-two a tax of fifty 51 cents, (B) on or after February first, nineteen hundred eighty-two and 52 before July first, nineteen hundred eighty-two with respect to (i) one, 53 two or three-family houses, individual cooperative apartments and indi- 54 vidual residential condominium units, and (ii) real property securing a 55 principal debt or obligation of less than five hundred thousand dollars, 56 a tax of fifty cents, and with respect to all other real property a taxA. 3009--B 108 1 of one dollar and twelve and one-half cents, (C) on and after July 2 first, nineteen hundred eighty-two and before August first, nineteen 3 hundred ninety with respect to real property securing a principal debt 4 or obligation of less than five hundred thousand dollars, a tax of fifty 5 cents, with respect to one, two or three-family houses, individual coop- 6 erative apartments and individual residential condominium units securing 7 a principal debt or obligation of five hundred thousand dollars or more, 8 a tax of sixty-two and one-half cents, and with respect to all other 9 real property a tax of one dollar and twenty-five cents, and (D) on and 10 after August first, nineteen hundred ninety with respect to real proper- 11 ty securing a principal debt or obligation of less than five hundred 12 thousand dollars, a tax of one dollar, with respect to one, two or 13 three-family houses and individual residential condominium units secur- 14 ing a principal debt or obligation of five hundred thousand dollars or 15 more, a tax of one dollar and twelve and one-half cents, and with 16 respect to all other real property a tax of one dollar and seventy-five 17 cents, for each one hundred dollars and each remaining major fraction 18 thereof of principal debt or obligation which is or under any contingen- 19 cy may be secured at the date of execution thereof, or at any time ther- 20 eafter, by a mortgage on such real property situated within such city 21 and recorded on or after the date upon which such tax takes effect and a 22 tax of one dollar on such mortgage if the principal debt or obligation 23 which is or by any contingency may be secured by such mortgage is less 24 than one hundred dollars. In each instance where the tax imposed pursu- 25 ant to this subdivision is one dollar and twenty-five cents for each one 26 hundred dollars and each remaining major fraction thereof of such prin- 27 cipal debt or obligation, fifty percent of the total amount of such tax, 28 including fifty percent of any interest or penalties thereon, shall be 29 set aside in a special account by the commissioner of finance of such 30 city. In each instance where the tax imposed pursuant to this subdivi- 31 sion is one dollar and seventy-five cents for each one hundred dollars 32 and each remaining major fraction thereof of such principal debt or 33 obligation, thirty-five and seven-tenths percent of the total amount of 34 such tax, including thirty-five and seven-tenths percent of any interest 35 or penalties thereon, shall also be set aside in such special account. 36 Moneys in such account shall be used for payment by such commissioner to 37 the state comptroller for deposit in the urban mass transit operating 38 assistance account of the mass transportation operating assistance fund 39 of any amount of insufficiency certified by the state comptroller pursu- 40 ant to the provisions of subdivision six of section eighty-eight-a of 41 the state finance law, and, on the fifteenth day of each month, such 42 commissioner shall transmit all funds in such account on the last day of 43 the preceding month, except the amount required for the payment of any 44 amount of insufficiency certified by the state comptroller and such 45 amount as he deems necessary for refunds and such other amounts neces- 46 sary to finance the New York city transportation disabled committee and 47 the New York city paratransit system as established by section fifteen-b 48 of the transportation law, provided, however, that such amounts shall 49 not exceed six percent of the total funds in the account but in no event 50 be less than two hundred twenty-five thousand dollars beginning April 51 first, nineteen hundred eighty-six, and further that beginning November 52 fifteenth, nineteen hundred eighty-four and during the entire period 53 prior to operation of such system, the total of such amounts shall not 54 exceed three hundred seventy-five thousand dollars for the administra- 55 tive expenses of such committee and fifty thousand dollars for the 56 expenses of the agency designated pursuant to paragraph b of subdivisionA. 3009--B 109 1 five of such section, and other amounts necessary to finance the operat- 2 ing needs of the private bus companies franchised by the city of New 3 York and eligible to receive state operating assistance under section 4 eighteen-b of the transportation law, provided, however, that such 5 amounts shall not exceed four percent of the total funds in the account, 6 to the New York city transit authority for mass transit within the city. 7 The tax imposed under the authority of paragraph (D) of this subdivision 8 is deemed to include a tax imposed on the filing of financing statements 9 evidencing a security agreement pertaining to mezzanine debt financing 10 and/or preferred equity investments in relation to real property upon 11 which a mortgage instrument is filed. 12 (a) For the purpose of determining whether a mortgage is subject to 13 the tax authorized to be imposed by paragraph (B) or (C) of subdivision 14 one of this section at a rate in excess of fifty cents, or by paragraph 15 (D) of subdivision one of this section at a rate in excess of one 16 dollar, for each one hundred dollars and each remaining major fraction 17 thereof of principal debt or obligation, the principal debt or obli- 18 gation which is or under any contingency may be secured at the date of 19 execution thereof, or at any time thereafter, by such mortgage shall be 20 aggregated with the principal debt or obligation which is or under any 21 contingency may be secured at the date of execution thereof, or at any 22 time thereafter, by any other mortgage, where such mortgages form part 23 of the same or related transactions and have the same or related mortga- 24 gors or related debtors in the case of a financing statement evidencing 25 a security agreement pertaining to mezzanine debt financing and/or 26 preferred equity investments in relation to real property upon which a 27 mortgage instrument is filed. If the commissioner of taxation and 28 finance finds that a mortgage transaction or mortgage transactions have 29 been formulated for the purpose of avoiding or evading a rate of tax 30 authorized to be imposed under subdivision one of this section in excess 31 of the lowest such authorized rate, rather than solely for an independ- 32 ent business or financial purpose, such commissioner shall treat all of 33 the mortgages forming part of such transaction or transactions as a 34 single mortgage for the purpose of determining the applicable rate of 35 tax. For purposes of this subdivision, there shall be a presumption that 36 all mortgages offered for recording within a period of twelve consec- 37 utive months having the same or related mortgagors or related debtors 38 are part of a related transaction, and such presumption may be rebutted 39 only with clear and convincing evidence to the contrary. The commission- 40 er of taxation and finance may require such affidavits and forms, and 41 may prescribe such rules and regulations, as he determines to be neces- 42 sary to enforce the provisions of this subdivision. Any reference to a 43 mortgage in this subdivision includes a financing statement evidencing a 44 security agreement pertaining to mezzanine debt financing and/or 45 preferred equity investments in relation to real property upon which a 46 mortgage instrument is filed. 47 § 7. Paragraph (a) of subdivision 1 of section 255 of the tax law is 48 amended by adding a new subparagraph (iii) to read as follows: 49 (iii) Notwithstanding the provisions of subparagraph (i) of this para- 50 graph, the taxes imposed by the authority under subparagraph three of 51 paragraph (a) of subdivision two of section two hundred fifty of this 52 article shall apply to mezzanine debt and/or preferred equity invest- 53 ments as such terms are defined by subdivision four of such section. 54 § 8. Section 257 of the tax law is amended to read as follows: 55 § 257. Payment of taxes. The taxes imposed by this article shall be 56 payable on the recording of each mortgage of real property subject toA. 3009--B 110 1 taxes [thereunder] under this article and to taxes imposed by subpara- 2 graph three of paragraph (a) of subdivision two of section two hundred 3 fifty of this article on and after the effective date of such subpara- 4 graph. Such taxes shall be paid to the recording officer of any county 5 in which the real property or any part thereof is situated. It shall be 6 the duty of such recording officer to indorse upon each mortgage and any 7 mezzanine debt and/or preferred equity investment included with such 8 mortgage a receipt for the amount of the tax so paid. Any mortgage so 9 indorsed may thereupon or thereafter be recorded by any recording offi- 10 cer and the receipt for such tax indorsed upon each mortgage shall be 11 recorded therewith. The record of such receipt shall be conclusive proof 12 that the amount of tax stated therein has been paid upon such mortgage, 13 including any mezzanine debt and/or preferred equity investment. 14 § 9. Subdivision 1 of section 258 of the tax law, as amended by chap- 15 ter 241 of the laws of 1989, is amended to read as follows: 16 1. No mortgage of real property shall be recorded by any county clerk 17 or register, unless there shall be paid the taxes imposed by and as in 18 this article provided. No mortgage of real property which is subject to 19 the taxes imposed by this article shall be released, discharged of 20 record or received in evidence in any action or proceeding, nor shall 21 any assignment of or agreement extending any such mortgage be recorded 22 unless the taxes imposed thereon by this article shall have been paid as 23 provided in this article. For purposes of the taxes imposed and author- 24 ized by subparagraph three of paragraph (a) of subdivision two of 25 section two hundred fifty of this article, unless such taxes shall have 26 been paid, no mortgage of real property shall be recorded by any county 27 clerk or register, nor shall such mortgage be released, discharged, 28 recorded or received in evidence in any action or proceeding, nor shall 29 any assignment of agreement extending such mortgage be recorded. 30 Provided, however, except as otherwise provided in subdivision two of 31 this section, in order to obtain a release or discharge of record where 32 the mortgagor is not liable for the special additional tax imposed under 33 subdivision one-a of section two hundred fifty-three of this chapter, 34 such mortgagor or any subsequent owner of the mortgaged property or a 35 part thereof may pay the tax imposed under such subdivision one-a and 36 penalty, and may either apply for the credit allowable under this chap- 37 ter for payment of such additional tax or may maintain an action to 38 recover the amounts so paid against any person liable for payment of the 39 tax or any subsequent assignees or owners of such mortgage or consol- 40 idated mortgage of which such mortgage is a part, as if such amounts of 41 tax and penalty were a debt personally owed by such persons to the mort- 42 gagor or subsequent owner. No judgment or final order in any action or 43 proceeding shall be made for the foreclosure or the enforcement of any 44 mortgage which is subject to any tax imposed by this article or of any 45 debt or obligation secured by any such mortgage, unless the taxes, 46 including taxes authorized by subparagraph three of paragraph (a) of 47 subdivision two of section two hundred fifty of this article imposed by 48 this article shall have been paid as provided in this article; and, 49 except as otherwise provided in subdivision two of this section, whenev- 50 er it shall appear that any mortgage has been recorded without payment 51 of a tax imposed by this article there shall be added to the tax a sum 52 equal to one-half of one per centum thereof for each month or fraction 53 of a month for the period that the tax remains unpaid except where it 54 could not be determined from the face of the instrument that a tax was 55 due, or where an advance has been made on a prior advance mortgage or a 56 corporate trust mortgage without payment of the tax, in which case thereA. 3009--B 111 1 shall be added to the tax a sum equal to one per centum thereof for each 2 month or fraction of a month for the period that the tax remains unpaid. 3 In any case where a mortgage of real property subject to a tax imposed 4 by this article has heretofore been recorded or is hereafter recorded in 5 good faith, and the county clerk or register has held such mortgage 6 nontaxable or taxable at one amount, and it shall later appear that it 7 was taxable or taxable at a greater amount, the commissioner of taxation 8 and finance may remit the penalties in excess of one-half of one per 9 centum per month. 10 § 10. Section 261 of the tax law is amended by adding a new subdivi- 11 sion 4 to read as follows: 12 4. Notwithstanding any other provision of law to the contrary in this 13 section, commencing on or after April first, two thousand twenty-one, 14 the balance of all moneys paid to the recording officer of each county 15 during each month upon account of the taxes imposed pursuant to subdivi- 16 sion four of section two hundred fifty-three of this article, to the 17 extent such distributions are not accounted in subdivisions one, two and 18 three of this section, after deducting necessary expenses and apportion- 19 ment under section two hundred sixty of this article, shall be deposited 20 and disposed of pursuant to the provisions of section one hundred seven- 21 ty-one-a of this chapter. 22 § 11. Subdivision 1 of section 171-a of the tax law, as amended by 23 section 3 of part XX of chapter 59 of the laws of 2019, is amended to 24 read as follows: 25 1. All taxes, interest, penalties and fees collected or received by 26 the commissioner or the commissioner's duly authorized agent under arti- 27 cles nine (except section one hundred eighty-two-a thereof and except as 28 otherwise provided in section two hundred five thereof), nine-A, eleven 29 (except as otherwise provided in section two hundred fifty-three, 30 section two hundred sixty-one, or any other section thereof), twelve-A 31 (except as otherwise provided in section two hundred eighty-four-d ther- 32 eof), thirteen, thirteen-A (except as otherwise provided in section 33 three hundred twelve thereof), eighteen, nineteen, twenty (except as 34 otherwise provided in section four hundred eighty-two thereof), twen- 35 ty-B, twenty-D, twenty-one, twenty-two, twenty-four, twenty-six, twen- 36 ty-eight (except as otherwise provided in section eleven hundred two or 37 eleven hundred three thereof), twenty-eight-A, twenty-nine-B, thirty-one 38 (except as otherwise provided in section fourteen hundred twenty-one 39 thereof), thirty-three and thirty-three-A of this chapter shall be 40 deposited daily in one account with such responsible banks, banking 41 houses or trust companies as may be designated by the comptroller, to 42 the credit of the comptroller. Such an account may be established in one 43 or more of such depositories. Such deposits shall be kept separate and 44 apart from all other money in the possession of the comptroller. The 45 comptroller shall require adequate security from all such depositories. 46 Of the total revenue collected or received under such articles of this 47 chapter, the comptroller shall retain in the comptroller's hands such 48 amount as the commissioner may determine to be necessary for refunds or 49 reimbursements under such articles of this chapter out of which amount 50 the comptroller shall pay any refunds or reimbursements to which taxpay- 51 ers shall be entitled under the provisions of such articles of this 52 chapter. The commissioner and the comptroller shall maintain a system of 53 accounts showing the amount of revenue collected or received from each 54 of the taxes imposed by such articles. The comptroller, after reserving 55 the amount to pay such refunds or reimbursements, shall, on or before 56 the tenth day of each month, pay into the state treasury to the creditA. 3009--B 112 1 of 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 that amount of 5 overpayments of tax imposed by article twenty-two of this chapter and 6 the interest on such amount which is certified to the comptroller by the 7 commissioner as the amount to be credited against past-due support 8 pursuant to subdivision six of section one hundred seventy-one-c of this 9 article, (ii) and except that the comptroller shall pay to the New York 10 state higher education services corporation and the state university of 11 New York or the city university of New York respectively that amount of 12 overpayments of tax imposed by article twenty-two of this chapter and 13 the interest on such amount which is certified to the comptroller by the 14 commissioner as the amount to be credited against the amount of defaults 15 in repayment of guaranteed student loans and state university loans or 16 city university loans pursuant to subdivision five of section one 17 hundred seventy-one-d and subdivision six of section one hundred seven- 18 ty-one-e of this article, (iii) and except further that, notwithstanding 19 any law, the comptroller shall credit to the revenue arrearage account, 20 pursuant to section ninety-one-a of the state finance law, that amount 21 of overpayment of tax imposed by article nine, nine-A, twenty-two, thir- 22 ty, thirty-A, thirty-B or thirty-three of this chapter, and any interest 23 thereon, which is certified to the comptroller by the commissioner as 24 the amount to be credited against a past-due legally enforceable debt 25 owed to a state agency pursuant to paragraph (a) of subdivision six of 26 section one hundred seventy-one-f of this article, provided, however, he 27 shall credit to the special offset fiduciary account, pursuant to 28 section ninety-one-c of the state finance law, any such amount credita- 29 ble as a liability as set forth in paragraph (b) of subdivision six of 30 section one hundred seventy-one-f of this article, (iv) and except 31 further that the comptroller shall pay to the city of New York that 32 amount of overpayment of tax imposed by article nine, nine-A, twenty- 33 two, thirty, thirty-A, thirty-B or thirty-three of this chapter and any 34 interest thereon that is certified to the comptroller by the commission- 35 er as the amount to be credited against city of New York tax warrant 36 judgment debt pursuant to section one hundred seventy-one-l of this 37 article, (v) and except further that the comptroller shall pay to a 38 non-obligated spouse that amount of overpayment of tax imposed by arti- 39 cle twenty-two of this chapter and the interest on such amount which has 40 been credited pursuant to section one hundred seventy-one-c, one hundred 41 seventy-one-d, one hundred seventy-one-e, one hundred seventy-one-f or 42 one hundred seventy-one-l of this article and which is certified to the 43 comptroller by the commissioner as the amount due such non-obligated 44 spouse pursuant to paragraph six of subsection (b) of section six 45 hundred fifty-one of this chapter; and (vi) the comptroller shall deduct 46 a like amount which the comptroller shall pay into the treasury to the 47 credit of the general fund from amounts subsequently payable to the 48 department of social services, the state university of New York, the 49 city university of New York, or the higher education services corpo- 50 ration, or the revenue arrearage account or special offset fiduciary 51 account pursuant to section ninety-one-a or ninety-one-c of the state 52 finance law, as the case may be, whichever had been credited the amount 53 originally withheld from such overpayment, and (vii) with respect to 54 amounts originally withheld from such overpayment pursuant to section 55 one hundred seventy-one-l of this article and paid to the city of NewA. 3009--B 113 1 York, the comptroller shall collect a like amount from the city of New 2 York. 3 § 12. Subdivision 1 of section 171-a of the tax law, as amended by 4 section 4 of part XX of chapter 59 of the laws of 2019, 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, eleven 10 (except as otherwise provided in section two hundred fifty-three, 11 section two hundred sixty-one, or any other section thereof), twelve-A 12 (except as otherwise provided in section two hundred eighty-four-d ther- 13 eof), thirteen, thirteen-A (except as otherwise provided in section 14 three hundred twelve thereof), eighteen, nineteen, twenty (except as 15 otherwise provided in section four hundred eighty-two thereof), twen- 16 ty-D, twenty-one, twenty-two, twenty-four, twenty-six, twenty-eight 17 (except as otherwise provided in section eleven hundred two or eleven 18 hundred three thereof), twenty-eight-A, twenty-nine-B, thirty-one 19 (except as otherwise provided in section fourteen hundred twenty-one 20 thereof), thirty-three and thirty-three-A of this chapter shall be 21 deposited daily in one account with such responsible banks, banking 22 houses or trust companies as may be designated by the comptroller, to 23 the credit of the comptroller. Such an account may be established in one 24 or more of such depositories. Such deposits shall be kept separate and 25 apart from all other money in the possession of the comptroller. The 26 comptroller shall require adequate security from all such depositories. 27 Of the total revenue collected or received under such articles of this 28 chapter, the comptroller shall retain in the comptroller's hands such 29 amount as the commissioner may determine to be necessary for refunds or 30 reimbursements under such articles of this chapter out of which amount 31 the comptroller shall pay any refunds or reimbursements to which taxpay- 32 ers shall be entitled under the provisions of such articles of this 33 chapter. The commissioner and the comptroller shall maintain a system of 34 accounts showing the amount of revenue collected or received from each 35 of the taxes imposed by such articles. The comptroller, after reserving 36 the amount to pay such refunds or reimbursements, shall, on or before 37 the tenth day of each month, pay into the state treasury to the credit 38 of the general fund all revenue deposited under this section during the 39 preceding calendar month and remaining to the comptroller's credit on 40 the last day of such preceding month, (i) except that the comptroller 41 shall pay to the state department of social services that amount of 42 overpayments of tax imposed by article twenty-two of this chapter and 43 the interest on such amount which is certified to the comptroller by the 44 commissioner as the amount to be credited against past-due support 45 pursuant to subdivision six of section one hundred seventy-one-c of this 46 article, (ii) and except that the comptroller shall pay to the New York 47 state higher education services corporation and the state university of 48 New York or the city university of New York respectively that amount of 49 overpayments of tax imposed by article twenty-two of this chapter and 50 the interest on such amount which is certified to the comptroller by the 51 commissioner as the amount to be credited against the amount of defaults 52 in repayment of guaranteed student loans and state university loans or 53 city university loans pursuant to subdivision five of section one 54 hundred seventy-one-d and subdivision six of section one hundred seven- 55 ty-one-e of this article, (iii) and except further that, notwithstanding 56 any law, the comptroller shall credit to the revenue arrearage account,A. 3009--B 114 1 pursuant to section ninety-one-a of the state finance law, that amount 2 of overpayment of tax imposed by article nine, nine-A, twenty-two, thir- 3 ty, thirty-A, thirty-B or thirty-three of this chapter, and any interest 4 thereon, which is certified to the comptroller by the commissioner as 5 the amount to be credited against a past-due legally enforceable debt 6 owed to a state agency pursuant to paragraph (a) of subdivision six of 7 section one hundred seventy-one-f of this article, provided, however, he 8 shall credit to the special offset fiduciary account, pursuant to 9 section ninety-one-c of the state finance law, any such amount credita- 10 ble as a liability as set forth in paragraph (b) of subdivision six of 11 section one hundred seventy-one-f of this article, (iv) and except 12 further that the comptroller shall pay to the city of New York that 13 amount of overpayment of tax imposed by article nine, nine-A, twenty- 14 two, thirty, thirty-A, thirty-B or thirty-three of this chapter and any 15 interest thereon that is certified to the comptroller by the commission- 16 er as the amount to be credited against city of New York tax warrant 17 judgment debt pursuant to section one hundred seventy-one-l of this 18 article, (v) and except further that the comptroller shall pay to a 19 non-obligated spouse that amount of overpayment of tax imposed by arti- 20 cle twenty-two of this chapter and the interest on such amount which has 21 been credited pursuant to section one hundred seventy-one-c, one hundred 22 seventy-one-d, one hundred seventy-one-e, one hundred seventy-one-f or 23 one hundred seventy-one-l of this article and which is certified to the 24 comptroller by the commissioner as the amount due such non-obligated 25 spouse pursuant to paragraph six of subsection (b) of section six 26 hundred fifty-one of this chapter; and (vi) the comptroller shall deduct 27 a like amount which the comptroller shall pay into the treasury to the 28 credit of the general fund from amounts subsequently payable to the 29 department of social services, the state university of New York, the 30 city university of New York, or the higher education services corpo- 31 ration, or the revenue arrearage account or special offset fiduciary 32 account pursuant to section ninety-one-a or ninety-one-c of the state 33 finance law, as the case may be, whichever had been credited the amount 34 originally withheld from such overpayment, and (vii) with respect to 35 amounts originally withheld from such overpayment pursuant to section 36 one hundred seventy-one-l of this article and paid to the city of New 37 York, the comptroller shall collect a like amount from the city of New 38 York. 39 § 13. This act shall take effect immediately and shall apply to all 40 moneys collected on or after April 1, 2021, provided, however, that 41 section ten of this act shall take effect on the tenth day of the month 42 following the date on which this act shall have become a law. Provided, 43 further, that the amendments to subdivision 1 of section 171-a of the 44 tax law made by section eleven of this act shall be subject to the expi- 45 ration and reversion of such subdivision pursuant to section 12 of chap- 46 ter 90 of the laws of 2014, as amended, when upon such date the 47 provisions of section twelve of this act shall take effect. 48 PART WW 49 Section 1. The tax law is amended by adding a new article 30-C to read 50 as follows: 51 ARTICLE 30-C 52 SUPPLEMENTAL SURCHARGE ON OWNERS OF CERTAIN NON-PRIMARY 53 RESIDENTIAL PROPERTIESA. 3009--B 115 1 Section 1355. Supplemental surcharge on owners of certain non-primary 2 residence properties in a city with a population of one 3 million or more. 4 1356. Definitions. 5 1357. Imposition of supplemental surcharge. 6 1358. Owners subject to supplemental surcharge. 7 1359. Primary residence and/or relationship to owner or owners. 8 1360. Collection, levy and liens. 9 1361. Rules. 10 1362. Taxpayer's right. 11 1363. Deposit and disposition of revenue. 12 § 1355. Supplemental surcharge on owners of certain non-primary resi- 13 dence properties in a city with a population of one million or more. 14 Generally. Notwithstanding any provision of any general, specific or 15 local law to the contrary, the commissioner is hereby authorized and 16 empowered to adopt any rules and regulations promulgated in accordance 17 with this article imposing a supplemental surcharge on owners of certain 18 residential properties and dwelling units. 19 § 1356. Definitions. As used in this article: 1. "Commissioner" means 20 the commissioner of taxation and finance, or his or her designee. 21 2. "Department" means the department of taxation and finance. 22 3. "Five-year average market value" shall mean the average monetary 23 value of the real property for the previous five years, using a compara- 24 ble sale-based valuation method, as determined by the commissioner. 25 4. "Assessed value" shall mean the determination made of the value of 26 the real property, using an income and expense approach, as determined 27 by the commissioner. 28 5. "Assessed value attributable to a tenant-stockholder" shall mean 29 the proportion of the assessed value of real property owned by a cooper- 30 ative apartment corporation, represented by a tenant-stockholder's share 31 or shares of stock in such corporation as determined by its or their 32 proportional relationship to the total outstanding stock of the corpo- 33 ration, including that owned by the corporation. 34 § 1357. Imposition of supplemental surcharge. Rules and regulations 35 promulgated, as determined by the commissioner pursuant to this section 36 may provide for a supplemental surcharge in a city with a population of 37 one million or more, for fiscal years beginning on or after July first, 38 two thousand twenty-one, in accordance with the following provisions: 39 1. For one, two or three family residences with a five-year average 40 market value of five million dollars or higher, a supplemental surcharge 41 of at least one-half percent and no more than four percent on the excess 42 market value above five million dollars. 43 2. Provided, however, for residential real property held in the condo- 44 minium form of ownership with an assessed value of three hundred thou- 45 sand dollars or higher, a supplemental surcharge of at least ten percent 46 and no more than thirteen and one-half percent of the excess assessed 47 value above three hundred thousand dollars, as determined by the commis- 48 sioner. 49 3. Provided, further, for dwelling units in real property held in the 50 cooperative form of ownership with an assessed value attributable to a 51 tenant-stockholder of three hundred thousand dollars or higher, a 52 supplemental surcharge of at least ten percent and no more than thirteen 53 and one-half percent of the excess assessed value above three hundred 54 thousand dollars, as determined by the commissioner. The additional 55 supplemental surcharges attributable to each tenant-stockholder shall be 56 added by the cooperative apartment corporation to the amount of suchA. 3009--B 116 1 charges or taxes otherwise payable by or chargeable to such tenant- 2 stockholder. 3 § 1358. Owners subject to supplemental surcharge. Such supplemental 4 surcharge shall be imposed on owners of class one property, as that term 5 is defined in section eighteen hundred two of the real property tax law, 6 excluding vacant land, that has a five-year average market value of over 7 five million dollars and is not the primary residence of the owner or 8 owners of such property, or the primary residence of the parent or child 9 of such owner or owners, and all other residential real property held in 10 condominium or cooperative form of ownership in a city with a population 11 of one million or more, that has an assessed value of over three hundred 12 thousand dollars and is not the primary residence of the owner or owners 13 of such property, or the primary residence of the parent or child of 14 such owner or owners. 15 § 1359. Primary residence and/or relationship to owner or owners. 1. 16 Proof of primary residence and the resident's or residents' relationship 17 to the owner or owners shall be in the form of a certification as 18 required by the rules and regulations of the commissioner. Notwith- 19 standing the former, property owners who receive the STAR exemption or 20 credit, or other exemption from real property tax administered by the 21 department on the subject property for which primary residency is a 22 requirement, shall not be required to file an additional certification 23 of proof of primary residence. 24 2. The commissioner is hereby authorized to make a request and receive 25 from a city with a population of one million or more records, not other- 26 wise confidential, relevant to the commissioner's determination of 27 primary residence status pursuant to this section, or any other informa- 28 tion necessary to effectuate the purpose of this section. 29 § 1360. Collection, levy and liens. 1. Collection procedures. The 30 surcharges imposed by this article shall be collected by the commission- 31 er, and the commissioner may establish the mode or time for the 32 collection of any amount due under this article pursuant to section six 33 hundred ninety-two of this chapter, if not otherwise specified. The 34 commissioner shall, upon request, give a receipt for any sum collected 35 under this article. The commissioner may authorize banks or trust compa- 36 nies which are depositories or financial agents of the state to receive 37 and give a receipt for any surcharge imposed under this article in such 38 manner, at such times, and under such conditions as the commissioner may 39 prescribe; and shall prescribe the manner, times and conditions under 40 which the receipt of such surcharge by such banks and trust companies is 41 to be treated as payment of such surcharge to the commissioner. 42 2. Notice and demand for surcharge. The commissioner shall as soon as 43 practicable give notice to each person liable for any amount of 44 surcharge which has been assessed but remains unpaid, stating the amount 45 and demanding payment thereof. Such notice shall be left at the usual 46 place of business of such person or shall be sent by mail to such 47 person's last known address. Four such notices shall be required before 48 any warrant described in subdivision three of this section may be 49 issued. All four notices shall be sent by mail at least thirty days 50 apart from the previous notice. Except where the commissioner deter- 51 mines that collection would be jeopardized by delay, if any surcharge is 52 assessed prior to the last date (including any date fixed by extension) 53 prescribed for payment of such surcharge, payment of such surcharge 54 shall not be demanded until after such date. 55 3. Issuance of warrant after notice and demand. If any person liable 56 under this article for the payment of any surcharge neglects or refusesA. 3009--B 117 1 to pay the same within the thirty days after the fourth and final notice 2 and demand therefor is given to such person under subdivision two of 3 this section, the commissioner may within six years after the date of 4 such assessment issue a warrant directed to the sheriff of any county of 5 the state, or to any officer or employee of the department, commanding 6 such person to levy upon and sell such person's real and personal prop- 7 erty for the payment of the amount assessed, with the cost of executing 8 the warrant, and to return such warrant to the commissioner and pay to 9 the commissioner the money collected by virtue thereof within sixty days 10 after the receipt of the warrant. If the commissioner finds that the 11 collection of the surcharge or other amount is in jeopardy, notice and 12 demand for immediate payment of such surcharge may be made by the 13 commissioner and upon failure or refusal to pay such surcharge or other 14 amount the commissioner may issue a warrant without regard to the thir- 15 ty-day period provided in this subdivision. 16 4. Copy of warrant to be filed and lien to be created. Any sheriff or 17 officer or employee who receives a warrant under subdivision three of 18 this section shall within five days thereafter file a copy with the 19 clerk of the appropriate county. The clerk shall thereupon enter in the 20 judgment docket, in the column for judgment debtors, the name of the 21 taxpayer mentioned in the warrant, and in appropriate columns the 22 surcharge or other amounts for which the warrant is issued and the date 23 when such copy is filed; and such amount shall thereupon be a binding 24 lien upon the real, personal and other property of the taxpayer. 25 5. Judgment. When a warrant has been filed with the county clerk the 26 commissioner shall, on behalf of the state, be deemed to have obtained 27 judgment against the taxpayer for the surcharge or other amounts. 28 6. Execution. The sheriff or officer or employee shall thereupon 29 proceed upon the judgment in all respects, with like effect, and in the 30 same manner prescribed by law in respect to executions issued against 31 property upon judgments of a court of record, and a sheriff shall be 32 entitled to the same fees for the sheriff's services in executing the 33 warrant, to be collected in the same manner. An officer or employee of 34 the department may proceed in any county or counties of this state and 35 shall have all the powers of execution conferred by law upon sheriffs 36 but shall be entitled to no fee or compensation in excess of actual 37 expenses paid in connection with the execution of the warrant. 38 7. Taxpayer not a resident of this state. Where a notice and demand 39 under subdivision two of this section shall have been given to a taxpay- 40 er who is not then a resident of this state, and it appears to the 41 commissioner that it is not practicable to find in this state property 42 of the taxpayer sufficient to pay the entire balance of the surcharge or 43 other amount owing by such taxpayer who is not then a resident of this 44 state, the commissioner may, in accordance with subdivision three of 45 this section, issue a warrant directed to an officer or employee of the 46 department, a copy of which warrant shall be mailed by certified or 47 registered mail to the taxpayer at the taxpayer's last known address, 48 either within or out of the state. Such warrant shall command the offi- 49 cer or employee to proceed in Albany county, and such officer or employ- 50 ee shall, within five days after receipt of the warrant, file the 51 warrant and obtain a judgment in accordance with this section. Thereup- 52 on, the commissioner may authorize the institution of any action or 53 proceeding to collect or enforce the judgment in any place and by any 54 procedure that a civil judgment of the supreme court of the state of New 55 York could be collected or enforced. The commissioner may also, in the 56 commissioner's discretion, designate agents or retain counsel for theA. 3009--B 118 1 purpose of collecting, outside the state of New York, any unpaid 2 surcharges which have been assessed under this article against taxpayers 3 who are not residents of this state, may fix the compensation of such 4 agents and counsel to be paid out of money appropriated or otherwise 5 lawfully available for payment thereof, and may require of them bonds or 6 other security for the faithful performance of their duties, in such 7 form and in such amount as the commissioner shall deem proper and suffi- 8 cient. 9 8. Action by state for recovery of taxes. Action may be brought by the 10 attorney general of the state at the instance of the commissioner as 11 agent and trustee for the state to recover the amount of any unpaid 12 surcharges which have been assessed under this article within six years 13 prior to the date the action is commenced. 14 9. Release of lien. The commissioner, if he or she finds that the 15 interests of the state will not thereby be jeopardized, and upon such 16 conditions as the commissioner may require, may release any property 17 from the lien of any warrant for unpaid surcharges filed pursuant to 18 subdivision four or seven of this section, and such release may be 19 recorded in the office of any recording officer in which such warrant 20 has been filed. 21 § 1361. Rules. The commissioner shall have, in addition to any other 22 functions, powers and duties which have been or may be conferred on it 23 by law, the power to make and promulgate rules to carry out the purposes 24 of this section including, but not limited to, rules relating to the 25 timing, form and manner of any certification required to be submitted 26 under this section. The commissioner also may require by rule, the form, 27 timing and manner of all filing and payment requirements including 28 requiring any such filing requirements and payment of such surcharge 29 amount due in electronic form. 30 § 1362. Taxpayer's right. The taxpayer shall have the same right to 31 commence a court action or proceeding or any other legal recourse 32 against the commissioner that is granted to the taxpayer pursuant to 33 article twenty-two of this chapter, except to the extent such provision 34 is inconsistent with any provisions of this article. 35 § 1363. Deposit and disposition of revenue. Any surcharge imposed by 36 this article and collected and received by the commissioner shall be 37 deposited and disposed of pursuant to the provisions of section one 38 hundred seventy-one-a of this chapter. 39 § 2. Subdivision 1 of section 171-a of the tax law, as amended by 40 section 3 of part XX of chapter 59 of the laws of 2019, is amended to 41 read as follows: 42 1. All taxes, interest, penalties and fees collected or received by 43 the commissioner or the commissioner's duly authorized agent under arti- 44 cles nine (except section one hundred eighty-two-a thereof and except as 45 otherwise provided in section two hundred five thereof), nine-A, 46 twelve-A (except as otherwise provided in section two hundred eighty- 47 four-d thereof), thirteen, thirteen-A (except as otherwise provided in 48 section three hundred twelve thereof), eighteen, nineteen, twenty 49 (except as otherwise provided in section four hundred eighty-two there- 50 of), twenty-B, twenty-D, twenty-one, twenty-two, twenty-four, twenty- 51 six, twenty-eight (except as otherwise provided in section eleven 52 hundred two or eleven hundred three thereof), twenty-eight-A, twenty- 53 nine-B, thirty-C, thirty-one (except as otherwise provided in section 54 fourteen hundred twenty-one thereof), thirty-three and thirty-three-A of 55 this chapter shall be deposited daily in one account with such responsi- 56 ble banks, banking houses or trust companies as may be designated by theA. 3009--B 119 1 comptroller, to the credit of the comptroller. Such an account may be 2 established in one or more of such depositories. Such deposits shall be 3 kept separate and apart from all other money in the possession of the 4 comptroller. The comptroller shall require adequate security from all 5 such depositories. Of the total revenue collected or received under such 6 articles of this chapter, the comptroller shall retain in the comp- 7 troller's hands such amount as the commissioner may determine to be 8 necessary for refunds or reimbursements under such articles of this 9 chapter out of which amount the comptroller shall pay any refunds or 10 reimbursements to which taxpayers shall be entitled under the provisions 11 of such articles of this chapter. The commissioner and the comptroller 12 shall maintain a system of accounts showing the amount of revenue 13 collected or received from each of the taxes imposed by such articles. 14 The comptroller, after reserving the amount to pay such refunds or 15 reimbursements, shall, on or before the tenth day of each month, pay 16 into the state treasury to the credit of the general fund all revenue 17 deposited under this section during the preceding calendar month and 18 remaining to the comptroller's credit on the last day of such preceding 19 month, (i) except that the comptroller shall pay to the state department 20 of social services that amount of overpayments of tax imposed by article 21 twenty-two of this chapter and the interest on such amount which is 22 certified to the comptroller by the commissioner as the amount to be 23 credited against past-due support pursuant to subdivision six of section 24 one hundred seventy-one-c of this article, (ii) and except that the 25 comptroller shall pay to the New York state higher education services 26 corporation and the state university of New York or the city university 27 of New York respectively that amount of overpayments of tax imposed by 28 article twenty-two of this chapter and the interest on such amount which 29 is certified to the comptroller by the commissioner as the amount to be 30 credited against the amount of defaults in repayment of guaranteed 31 student loans and state university loans or city university loans pursu- 32 ant to subdivision five of section one hundred seventy-one-d and subdi- 33 vision six of section one hundred seventy-one-e of this article, (iii) 34 and except further that, notwithstanding any law, the comptroller shall 35 credit to the revenue arrearage account, pursuant to section 36 ninety-one-a of the state finance law, that amount of overpayment of tax 37 imposed by article nine, nine-A, twenty-two, thirty, thirty-A, thirty-B 38 or thirty-three of this chapter, and any interest thereon, which is 39 certified to the comptroller by the commissioner as the amount to be 40 credited against a past-due legally enforceable debt owed to a state 41 agency pursuant to paragraph (a) of subdivision six of section one 42 hundred seventy-one-f of this article, provided, however, he shall cred- 43 it to the special offset fiduciary account, pursuant to section ninety- 44 one-c of the state finance law, any such amount creditable as a liabil- 45 ity as set forth in paragraph (b) of subdivision six of section one 46 hundred seventy-one-f of this article, (iv) and except further that the 47 comptroller shall pay to the city of New York that amount of overpayment 48 of tax imposed by article nine, nine-A, twenty-two, thirty, thirty-A, 49 thirty-B or thirty-three of this chapter and any interest thereon that 50 is certified to the comptroller by the commissioner as the amount to be 51 credited against city of New York tax warrant judgment debt pursuant to 52 section one hundred seventy-one-l of this article, (v) and except 53 further that the comptroller shall pay to a non-obligated spouse that 54 amount of overpayment of tax imposed by article twenty-two of this chap- 55 ter and the interest on such amount which has been credited pursuant to 56 section one hundred seventy-one-c, one hundred seventy-one-d, oneA. 3009--B 120 1 hundred seventy-one-e, one hundred seventy-one-f or one hundred seven- 2 ty-one-l of this article and which is certified to the comptroller by 3 the commissioner as the amount due such non-obligated spouse pursuant to 4 paragraph six of subsection (b) of section six hundred fifty-one of this 5 chapter; and (vi) the comptroller shall deduct a like amount which the 6 comptroller shall pay into the treasury to the credit of the general 7 fund from amounts subsequently payable to the department of social 8 services, the state university of New York, the city university of New 9 York, or the higher education services corporation, or the revenue 10 arrearage account or special offset fiduciary account pursuant to 11 section ninety-one-a or ninety-one-c of the state finance law, as the 12 case may be, whichever had been credited the amount originally withheld 13 from such overpayment, and (vii) with respect to amounts originally 14 withheld from such overpayment pursuant to section one hundred seventy- 15 one-l of this article and paid to the city of New York, the comptroller 16 shall collect a like amount from the city of New York. 17 § 3. Subdivision 1 of section 171-a of the tax law, as amended by 18 section 4 of part XX of chapter 59 of the laws of 2019, is amended to 19 read as follows: 20 1. All taxes, interest, penalties and fees collected or received by 21 the commissioner or the commissioner's duly authorized agent under arti- 22 cles nine (except section one hundred eighty-two-a thereof and except as 23 otherwise provided in section two hundred five thereof), nine-A, 24 twelve-A (except as otherwise provided in section two hundred eighty- 25 four-d thereof), thirteen, thirteen-A (except as otherwise provided in 26 section three hundred twelve thereof), eighteen, nineteen, twenty 27 (except as otherwise provided in section four hundred eighty-two there- 28 of), twenty-D, twenty-one, twenty-two, twenty-four, twenty-six, twenty- 29 eight (except as otherwise provided in section eleven hundred two or 30 eleven hundred three thereof), twenty-eight-A, twenty-nine-B, thirty-C, 31 thirty-one (except as otherwise provided in section fourteen hundred 32 twenty-one thereof), thirty-three and thirty-three-A of this chapter 33 shall be deposited daily in one account with such responsible banks, 34 banking houses or trust companies as may be designated by the comp- 35 troller, to the credit of the comptroller. Such an account may be estab- 36 lished in one or more of such depositories. Such deposits shall be kept 37 separate and apart from all other money in the possession of the comp- 38 troller. The comptroller shall require adequate security from all such 39 depositories. Of the total revenue collected or received under such 40 articles of this chapter, the comptroller shall retain in the comp- 41 troller's hands such amount as the commissioner may determine to be 42 necessary for refunds or reimbursements under such articles of this 43 chapter out of which amount the comptroller shall pay any refunds or 44 reimbursements to which taxpayers shall be entitled under the provisions 45 of such articles of this chapter. The commissioner and the comptroller 46 shall maintain a system of accounts showing the amount of revenue 47 collected or received from each of the taxes imposed by such articles. 48 The comptroller, after reserving the amount to pay such refunds or 49 reimbursements, shall, on or before the tenth day of each month, pay 50 into the state treasury to the credit of the general fund all revenue 51 deposited under this section during the preceding calendar month and 52 remaining to the comptroller's credit on the last day of such preceding 53 month, (i) except that the comptroller shall pay to the state department 54 of social services that amount of overpayments of tax imposed by article 55 twenty-two of this chapter and the interest on such amount which is 56 certified to the comptroller by the commissioner as the amount to beA. 3009--B 121 1 credited against past-due support pursuant to subdivision six of section 2 one hundred seventy-one-c of this article, (ii) and except that the 3 comptroller shall pay to the New York state higher education services 4 corporation and the state university of New York or the city university 5 of New York respectively that amount of overpayments of tax imposed by 6 article twenty-two of this chapter and the interest on such amount which 7 is certified to the comptroller by the commissioner as the amount to be 8 credited against the amount of defaults in repayment of guaranteed 9 student loans and state university loans or city university loans pursu- 10 ant to subdivision five of section one hundred seventy-one-d and subdi- 11 vision six of section one hundred seventy-one-e of this article, (iii) 12 and except further that, notwithstanding any law, the comptroller shall 13 credit to the revenue arrearage account, pursuant to section 14 ninety-one-a of the state finance law, that amount of overpayment of tax 15 imposed by article nine, nine-A, twenty-two, thirty, thirty-A, thirty-B 16 or thirty-three of this chapter, and any interest thereon, which is 17 certified to the comptroller by the commissioner as the amount to be 18 credited against a past-due legally enforceable debt owed to a state 19 agency pursuant to paragraph (a) of subdivision six of section one 20 hundred seventy-one-f of this article, provided, however, he shall cred- 21 it to the special offset fiduciary account, pursuant to section ninety- 22 one-c of the state finance law, any such amount creditable as a liabil- 23 ity as set forth in paragraph (b) of subdivision six of section one 24 hundred seventy-one-f of this article, (iv) and except further that the 25 comptroller shall pay to the city of New York that amount of overpayment 26 of tax imposed by article nine, nine-A, twenty-two, thirty, thirty-A, 27 thirty-B or thirty-three of this chapter and any interest thereon that 28 is certified to the comptroller by the commissioner as the amount to be 29 credited against city of New York tax warrant judgment debt pursuant to 30 section one hundred seventy-one-l of this article, (v) and except 31 further that the comptroller shall pay to a non-obligated spouse that 32 amount of overpayment of tax imposed by article twenty-two of this chap- 33 ter and the interest on such amount which has been credited pursuant to 34 section one hundred seventy-one-c, one hundred seventy-one-d, one 35 hundred seventy-one-e, one hundred seventy-one-f or one hundred seven- 36 ty-one-l of this article and which is certified to the comptroller by 37 the commissioner as the amount due such non-obligated spouse pursuant to 38 paragraph six of subsection (b) of section six hundred fifty-one of this 39 chapter; and (vi) the comptroller shall deduct a like amount which the 40 comptroller shall pay into the treasury to the credit of the general 41 fund from amounts subsequently payable to the department of social 42 services, the state university of New York, the city university of New 43 York, or the higher education services corporation, or the revenue 44 arrearage account or special offset fiduciary account pursuant to 45 section ninety-one-a or ninety-one-c of the state finance law, as the 46 case may be, whichever had been credited the amount originally withheld 47 from such overpayment, and (vii) with respect to amounts originally 48 withheld from such overpayment pursuant to section one hundred seventy- 49 one-l of this article and paid to the city of New York, the comptroller 50 shall collect a like amount from the city of New York. 51 § 4. This act shall take effect immediately; provided, however, that 52 the amendments to subdivision 1 of section 171-a of the tax law made by 53 section two of this act shall be subject to the expiration and reversion 54 of such subdivision pursuant to section 12 of chapter 90 of the laws of 55 2014, as amended, when upon such date the provisions of section three of 56 this act shall take effect.A. 3009--B 122 1 PART XX 2 Section 1. Section 952 of the tax law, as amended by section 2 of part 3 X of chapter 59 of the laws of 2014 and subsection (b) as amended by 4 section 1 of part BB of chapter 59 of the laws of 2015, is amended to 5 read as follows: 6 § 952. Tax imposed. (a) A tax is hereby imposed on the transfer of the 7 New York estate by every deceased individual who at his or her death was 8 a resident of New York state. 9 (b) Computation of tax. The tax imposed by this section shall be 10 computed on the deceased resident's New York taxable estate as follows: 11 If the New York taxable estate is: The tax is: 12 Not over $500,000 3.06% of taxable estate 13 Over $500,000 but not over $1,000,000 $15,300 plus 5.0% of excess over 14 $500,000 15 Over $1,000,000 but not over $1,500,000 $40,300 plus 5.5% of excess over 16 $1,000,000 17 Over $1,500,000 but not over $2,100,000 $67,800 plus 6.5% of excess over 18 $1,500,000 19 Over $2,100,000 but not over $2,600,000 $106,800 plus 8.0% of excess 20 over $2,100,000 21 Over $2,600,000 but not over $3,100,000 $146,800 plus 8.8% of excess over 22 $2,600,000 23 Over $3,100,000 but not over $3,600,000 $190,800 plus 9.6% of excess over 24 $3,100,000 25 Over $3,600,000 but not over $4,100,000 $238,800 plus 10.4% of excess 26 over $3,600,000 27 Over $4,100,000 but not over $5,100,000 $290,800 plus 11.2% of excess 28 over $4,100,000 29 Over $5,100,000 but not over $6,100,000 $402,800 plus 12.0% of excess 30 over $5,100,000 31 Over $6,100,000 but not over $7,100,000 $522,800 plus 12.8% of excess 32 over $6,100,000 33 Over $7,100,000 but not over $8,100,000 $650,800 plus 13.6% of excess 34 over $7,100,000 35 Over $8,100,000 but not over $9,100,000 $786,800 plus 14.4% of excess 36 over $8,100,000 37 Over $9,100,000 but not over $930,800 plus 15.2% of excess over 38 $10,100,000 $9,100,000 39 Over $10,100,000 $1,082,800 plus [16.0%] 20.0% of excess 40 over $10,100,000 41 (c) Applicable credit amount. (1) A credit of the applicable credit 42 amount shall be allowed against the tax imposed by this section as 43 provided in this subsection. In the case of a decedent whose New York 44 taxable estate is less than or equal to the basic exclusion amount, the 45 applicable credit amount shall be the amount of tax that would be due 46 under subsection (b) of this section on such decedent's New York taxable 47 estate. In the case of a decedent whose New York taxable estate exceeds 48 the basic exclusion amount by an amount that is less than or equal to 49 five percent of such amount, the applicable credit amount shall be the 50 amount of tax that would be due under subsection (b) of this section if 51 the amount on which the tax is to be computed were equal to the basic 52 exclusion amount multiplied by one minus a fraction, the numerator of 53 which is the decedent's New York taxable estate minus the basic exclu- 54 sion amount, and the denominator of which is five percent of the basic 55 exclusion amount. Provided, however, that the credit allowed by thisA. 3009--B 123 1 subsection shall not exceed the tax imposed by this section, and no 2 credit shall be allowed to the estate of any decedent whose New York 3 taxable estate exceeds one hundred five percent of the basic exclusion 4 amount. 5 (2) (A) For purposes of this section, the basic exclusion amount shall 6 be as follows: 7 In the case of decedents dying on or after: The basic exclusion amount 8 is: April 1, 2014 and before April 1, 2015 $ 2,062,500 April 1, 2015 and 9 before April 1, 2016 3,125,000 April 1, 2016 and before April 1, 2017 10 4,187,500 April 1, 2017 and before January 1, 2019 5,250,000 11 (B) In the case of any decedent dying in a calendar year beginning on 12 or after January first, two thousand nineteen, the basic exclusion 13 amount shall be equal to: 14 (i) five million dollars, multiplied by 15 (ii) one plus the cost-of-living adjustment, which shall be the 16 percentage by which the consumer price index for the preceding calendar 17 year exceeds the consumer price index for calendar year two thousand 18 ten. 19 (C) (i) For purposes of this paragraph, "consumer price index" means 20 the most recent consumer price index for all-urban consumers published 21 by the United States department of labor. 22 (ii) For purposes of clause (ii) of subparagraph (B) of this para- 23 graph, the consumer price index for any calendar year shall be the aver- 24 age of the consumer price index as of the close of the twelve-month 25 period ending on August thirty-first of such calendar year. 26 (iii) If any amount adjusted under this paragraph is not a multiple of 27 ten thousand dollars, such amount shall be rounded to the nearest multi- 28 ple of ten thousand dollars. 29 § 2. This act shall take effect immediately. 30 PART YY 31 Section 1. Section 11-503 of the administrative code of the city of 32 New York is amended by adding a new subdivision (q) to read as follows: 33 (q) Small business recovery tax credit. (1) Definitions. For purposes 34 of this subdivision, the following terms have the following meanings: 35 (A) "Accommodation sector" means the portion of the economy consisting 36 of establishments that provide lodging or short-term accommodations for 37 travelers, vacationers, and others. 38 (B) "Arts, entertainment, and recreation sector" means the portion of 39 the economy consisting of establishments that operate facilities or 40 provide services to meet cultural, entertainment, and recreational 41 interests of their patrons. This sector consists of: (i) establishments 42 that are involved in producing, promoting, or participating in live 43 performances, events, or exhibits intended for public viewing; (ii) 44 establishments that preserve and exhibit objects and sites of histor- 45 ical, cultural, or educational interest; and (iii) establishments that 46 operate facilities or provide services that enable patrons to partic- 47 ipate in recreational activities or pursue amusement, hobby, and 48 leisure-time interests. 49 (C) "Average starting full-time employment" means the average number 50 of full-time equivalent positions employed by a qualifying small busi- 51 ness between January first, two thousand twenty-one, and March thirty- 52 first, two thousand twenty-one. 53 (D) "Average ending full-time employment" means the average number of 54 full-time equivalent positions employed by a qualifying small businessA. 3009--B 124 1 between April first, two thousand twenty-one, and December thirty-first, 2 two thousand twenty-one. 3 (E) "Certificate of tax credit" means the document issued to a quali- 4 fying small business by the department of finance specifying the amount 5 of the small business recovery tax credit that such qualifying small 6 business may claim pursuant to this subdivision. 7 (F) "Chain" means a set of establishments that share a common brand or 8 that are characterized by standardized options for decor, marketing, 9 packaging, products and services. 10 (G) "Food services sector" means the portion of the economy consisting 11 of establishments that are primarily organized and operated to prepare 12 and provide food or beverages to customers for consumption. 13 (H) "Landlord" means a person who grants the right to use or occupy 14 premises to any lessee, sublessee, licensee or concessionaire, whether 15 or not such person is the owner of the premises. 16 (I) "Rent expense" means the consideration paid by a qualifying small 17 business for the use or occupancy of business premises located within 18 the city, valued in money, whether received in money or otherwise, 19 including all credits and property or services of any kind and including 20 any payment required to be made by the qualifying small business on 21 behalf of the owner or landlord of the business premises for real estate 22 taxes, water rents or charges, sewer rents or any other expenses, 23 including insurance, normally payable by an owner or landlord, other 24 than expenses for the improvement, repair or maintenance of the business 25 premises, less the amounts received by such qualifying small business 26 for the same period from any person for the use or occupancy of any part 27 of such business premises. 28 (J) "Qualifying small business" means a natural person, or a business 29 entity that is independently owned and operated and not part of a chain, 30 that: 31 (i) operates predominantly in the accommodation sector, arts, enter- 32 tainment, and recreation sector, or food services sector, provided that 33 any such natural person or business entity operating in the food 34 services sector both: (1) offered, prior to March two thousand twenty, 35 the opportunity for consumption of food or beverages on the business 36 premises operated by such person or entity; and (2) was required to 37 close indoor dining in March two thousand twenty as a result of a ban on 38 indoor dining arising from the COVID-19 pandemic; 39 (ii) pays rent as a lessee, sublessee, licensee or concessionaire to 40 use or occupy business premises located within the city; and 41 (iii) has a total income of less than one million two hundred thousand 42 dollars. 43 (K) "Small business recovery tax credit" means the small business 44 recovery tax credit authorized by this subdivision. 45 (L) "Total income" means gross receipts minus the costs of goods sold 46 as reported for federal income tax purposes on the federal income tax 47 return of the taxpayer for the tax year immediately preceding the period 48 for which the taxpayer is applying for the small business recovery tax 49 credit. 50 (2) Eligibility criteria. To be eligible for the small business recov- 51 ery tax credit, a taxpayer must: 52 (A) be a qualifying small business; 53 (B) file a return pursuant to subdivision (a) of section 11-514 of 54 this chapter, even if, pursuant to paragraph four of such subdivision 55 (a), such taxpayer is not required to file such a return because theA. 3009--B 125 1 unincorporated business gross income of such taxpayer is less than nine- 2 ty-five thousand dollars; 3 (C) operate a business premises at a location within the city that 4 charges for admission or accepts payment for goods or services from 5 retail customers who pay for such goods or receive such services on such 6 premises; and 7 (D) demonstrate that its average ending full-time employment was not 8 less than its average starting full-time employment. 9 (3) Application and approval process. (A) To apply for the small 10 business recovery tax credit, a taxpayer must submit an application in 11 the form and manner as prescribed by the commissioner of finance. 12 (B) The commissioner of finance shall establish procedures, including 13 any application deadlines, for the submission of applications by taxpay- 14 ers. As part of the application, each taxpayer must: 15 (i) demonstrate in a form and manner prescribed by the commissioner of 16 finance that such taxpayer is eligible for the small business recovery 17 tax credit pursuant to paragraph two of this subdivision; 18 (ii) notwithstanding section 11-538 of this chapter, agree to allow 19 the department of finance to share information related to such taxpayer 20 with any other state or city agency as necessary for the implementation 21 and administration of the small business recovery tax credit, provided, 22 however, that any information shared pursuant to this clause shall not 23 be available for disclosure or inspection pursuant to article six of the 24 public officers law; and 25 (iii) agree to provide any additional information deemed necessary by 26 the department of finance for the implementation and administration of 27 the small business recovery tax credit. 28 (C) After reviewing a completed application of a taxpayer and deter- 29 mining that such taxpayer meets the eligibility criteria for the small 30 business recovery tax credit as set forth in this subdivision, the 31 department of finance shall issue to such taxpayer a certificate of tax 32 credit. A taxpayer may claim the amount identified on the certificate 33 of tax credit only on its tax return for the taxable year that includes 34 December thirty-first, two thousand twenty-one. Issuance or denial of a 35 certificate of tax credit shall constitute a final determination of the 36 department of finance unless, within thirty days, the taxpayer seeks 37 administrative review by the commissioner of finance of such determi- 38 nation. 39 (4) Amount of the small business recovery tax credit. (A) Except as 40 otherwise provided in subparagraphs (B), (C), and (D) of this paragraph, 41 a taxpayer that meets the eligibility requirements set forth in para- 42 graph two of this subdivision shall be allowed a credit against the tax 43 imposed by this chapter in an amount equal to six percent of the rent 44 expense of such taxpayer for calendar year two thousand twenty-one, 45 provided that such amount shall not exceed ten thousand dollars. 46 (B) Notwithstanding subparagraph (A) of this paragraph, a taxpayer 47 that meets the eligibility requirements set forth in paragraph two of 48 this subdivision and has a total income that is greater than one million 49 dollars but less than one million two hundred thousand dollars shall be 50 allowed a credit in an amount that is the product of: (i) the amount 51 that would otherwise be allowed under subparagraph (A) of this para- 52 graph; and (ii) a fraction, the numerator of which is one million two 53 hundred thousand dollars less the total income of the taxpayer, and the 54 denominator of which is two hundred thousand dollars. 55 (C) To the extent the amount of the credit allowed by this subdivision 56 exceeds the amount of tax due pursuant to this chapter, as calculatedA. 3009--B 126 1 without such credit, such excess amount shall be treated as an overpay- 2 ment of tax to be credited or refunded in accordance with the provisions 3 of section 11-526 of this chapter, provided, however, that notwithstand- 4 ing the requirements of section 11-528 of this chapter to the contrary, 5 no interest shall be paid thereon. 6 (D) Notwithstanding subparagraph (A) of this paragraph, the aggregate 7 amount of credits allowed pursuant to this subdivision, subdivision 8 twenty-three of section 11-604 , and subdivision twenty-three of section 9 11-654 of this title, shall not exceed fifty million dollars. If, after 10 aggregating the amount of the credits allowed pursuant to each of such 11 subdivisions, the department of finance determines that the value of 12 such credits is greater than fifty million dollars, the department of 13 finance shall allocate the amount of such credits among eligible taxpay- 14 ers on a pro rata basis. The amount of the credit allocated to each 15 taxpayer shall be the product of: (i) the amount of the credit 16 prescribed by subparagraph (A) of this paragraph; and (ii) a fraction, 17 the numerator of which is fifty million dollars, and the denominator of 18 which is the aggregate amount of the credits allowed by the department 19 of finance pursuant to this subdivision, subdivision twenty-three of 20 section 11-604, and subdivision twenty-three of section 11-654 of this 21 title. 22 (E) The commissioner of finance shall revoke a certificate of tax 23 credit issued by the department of finance pursuant to this subdivision 24 if it appears that the taxpayer is not a qualified small business or 25 does not satisfy one or more of the other eligibility criteria set forth 26 in paragraph two of this subdivision, or that any other requirement of 27 the small business recovery tax credit has not been satisfied. Upon 28 determining that a certificate of tax credit issued by the department of 29 finance pursuant to this subdivision should be revoked, the amount of 30 the credit claimed by such taxpayer prior to such revocation shall be 31 added to the tax due pursuant to this chapter for the taxable year in 32 which any such revocation becomes final. The commissioner of finance 33 shall modify a certificate of tax credit issued by the department of 34 finance pursuant to this subdivision if it appears that the rent expense 35 provided by such taxpayer is not accurate and shall adjust the tax due 36 pursuant to this subchapter for the taxable year in which any such 37 modification becomes final in an amount consistent with such modifica- 38 tion. 39 (5) Powers and duties of the commissioner. (A) The commissioner of 40 finance may promulgate rules necessary to implement the provisions of 41 this subdivision. Such rules shall establish an application process and 42 eligibility criteria for the small business recovery tax credit, 43 consistent with this subdivision, so as not to exceed the annual limita- 44 tion on the aggregate amount of the tax credit authorized by this subdi- 45 vision, the small business recovery tax credit authorized by subdivision 46 twenty-three of section 11-604, and the small business recovery tax 47 credit authorized by subdivision twenty-three of section 11-654 of this 48 title set forth in subparagraph (D) of paragraph four of this subdivi- 49 sion. 50 (B) The commissioner of finance shall develop a certificate of tax 51 credit that shall be issued to taxpayers that apply and are determined 52 to be eligible for the small business recovery tax credit pursuant to 53 this subdivision. Such certificate shall contain such information as 54 required by the department of finance. 55 § 2. Section 11-604 of the administrative code of the city of New York 56 is amended by adding a new subdivision 23 to read as follows:A. 3009--B 127 1 23. Small business recovery tax credit. (a) Definitions. For purposes 2 of this subdivision, the following terms have the following meanings: 3 (1) "Accommodation sector" means the portion of the economy consisting 4 of establishments that provide lodging or short-term accommodations for 5 travelers, vacationers, and others. 6 (2) "Arts, entertainment, and recreation sector" means the portion of 7 the economy consisting of establishments that operate facilities or 8 provide services to meet cultural, entertainment, and recreational 9 interests of their patrons. This sector consists of: (i) establishments 10 that are involved in producing, promoting, or participating in live 11 performances, events, or exhibits intended for public viewing; (ii) 12 establishments that preserve and exhibit objects and sites of histor- 13 ical, cultural, or educational interest; and (iii) establishments that 14 operate facilities or provide services that enable patrons to partic- 15 ipate in recreational activities or pursue amusement, hobby, and 16 leisure-time interests. 17 (3) "Average starting full-time employment" means the average number 18 of full-time equivalent positions employed by a qualifying small busi- 19 ness between January first, two thousand twenty-one, and March thirty- 20 first, two thousand twenty-one. 21 (4)"Average ending full-time employment" mean the average number of 22 full-time equivalent positions employed by a qualifying small business 23 between April first, two thousand twenty-one, and December thirty-first, 24 two thousand twenty-one. 25 (5) "Certificate of tax credit" means the document issued to a quali- 26 fying small business by the department of finance specifying the amount 27 of the small business recovery tax credit that such qualifying small 28 business may claim pursuant to this subdivision. 29 (6) "Chain" means a set of establishments that share a common brand or 30 that are characterized by standardized options for decor, marketing, 31 packaging, products and services. 32 (7) "Food services sector" means the portion of the economy consisting 33 of establishments that are primarily organized and operated to prepare 34 and provide food or beverages to customers for consumption. 35 (8) "Landlord" means a person who grants the right to use or occupy 36 premises to any lessee, sublessee, licensee or concessionaire, whether 37 or not such person is the owner of the premises. 38 (9) "Qualifying small business" means a natural person, or a business 39 entity that is independently owned and operated and not part of a chain, 40 that: 41 (i) operates predominantly in the accommodation sector, arts, enter- 42 tainment, and recreation sector, or food services sector, provided that 43 any such natural person or business entity operating in the food 44 services sector both: (A) offered, prior to March two thousand twenty, 45 the opportunity for consumption of food or beverages on the business 46 premises operated by such person or entity; and 47 (B) was required to close indoor dining in March two thousand twenty 48 as a result of a ban on indoor dining arising from the COVID-19 pandem- 49 ic; 50 (ii) pays rent as a lessee, sublessee, licensee or concessionaire to 51 use or occupy business premises located within the city; and 52 (iii) has a total income of less than one million two hundred thousand 53 dollars. 54 (10) "Rent expense" means the consideration paid by a qualifying small 55 business for the use or occupancy of business premises located within 56 the city, valued in money, whether received in money or otherwise,A. 3009--B 128 1 including all credits and property or services of any kind and including 2 any payment required to be made by a qualifying small business on behalf 3 of the owner or landlord of the business premises for real estate taxes, 4 water rents or charges, sewer rents or any other expenses, including 5 insurance, normally payable by an owner or landlord, other than expenses 6 for the improvement, repair or maintenance of the business premises, 7 less the amounts received by such qualifying small business for the same 8 period from any person for the use or occupancy of any part of such 9 business premises. 10 (11) "Small business recovery tax credit" means the small business 11 recovery tax credit authorized by this subdivision. 12 (12) "Total income" means gross receipts minus the cost of goods sold, 13 as would have been reported by the taxpayer for federal income tax 14 purposes on the federal income tax return of the taxpayer for the tax 15 year immediately preceding the period for which the taxpayer is applying 16 for the small business recovery tax credit if such taxpayer had not made 17 an election under subchapter s of chapter one of the internal revenue 18 code. 19 (b) Eligibility criteria. To be eligible for the small business recov- 20 ery tax credit, a taxpayer must: 21 (1) be a qualifying small business; 22 (2) file a report pursuant to section 11-605 of this chapter, provided 23 that such taxpayer may not file a combined report pursuant to subdivi- 24 sion four of such section; 25 (3) operate a business premises at a location within the city that 26 charges for admission or accepts payment for goods or services from 27 retail customers who pay for such goods or receive such services on such 28 premises; and 29 (4) demonstrate that its average ending full-time employment was not 30 less than its average starting full-time employment. 31 (c) Application and approval process. (1) To apply for the small 32 business recovery tax credit, a taxpayer must submit an application in 33 the form and manner as prescribed by the commissioner of finance. 34 (2) The commissioner of finance shall establish procedures, including 35 any application deadlines, for the submission of applications by taxpay- 36 ers. As part of the application each taxpayer must: 37 (i) demonstrate in a form and manner prescribed by the commissioner of 38 finance that such taxpayer is eligible for the small business recovery 39 tax credit pursuant to paragraph (b) of this subdivision; 40 (ii) notwithstanding section 11-688 of this chapter, agree to allow 41 the department of finance to share information related to such taxpayer 42 with any other state or local agency as necessary for the implementation 43 and administration of the small business recovery tax credit, provided, 44 however, that any information shared pursuant to this clause shall not 45 be available for disclosure or inspection pursuant to article six of the 46 public officers law; and 47 (iii) agree to provide any additional information deemed necessary by 48 the department of finance for the implementation and administration of 49 the small business recovery tax credit. 50 (3) After reviewing a completed application of a taxpayer and deter- 51 mining that such taxpayer meets the eligibility criteria for the small 52 business recovery tax credit as set forth in this subdivision, the 53 department of finance shall issue to such taxpayer a certificate of tax 54 credit. A taxpayer may claim the amount identified on the certificate of 55 tax credit only on its tax return for the taxable year that includes 56 December thirty-first, two thousand twenty-one. Issuance or denial of aA. 3009--B 129 1 certificate of tax credit shall constitute a final determination of the 2 department of finance unless, within thirty days, the taxpayer seeks 3 administrative review by the commissioner of finance of such determi- 4 nation. 5 (d) Amount of the small business recovery tax credit. 6 (1) Except as otherwise provided in subparagraphs two, three and four 7 of this paragraph, a taxpayer that meets the eligibility requirements 8 set forth in paragraph (b) of this subdivision shall be allowed a credit 9 against the tax imposed by this subchapter in an amount equal to six 10 percent of the rent expense of such taxpayer for calendar year two thou- 11 sand twenty-one, provided that such amount shall not exceed ten thousand 12 dollars. 13 (2) Notwithstanding subparagraph one of this paragraph, a taxpayer 14 that meets the eligibility requirements set forth in paragraph (b) of 15 this subdivision and has a total income that is greater than one million 16 dollars but less than one million two hundred thousand dollars shall be 17 allowed a credit in an amount that is the product of: (i) the amount 18 that would otherwise be allowed under subparagraph one of this para- 19 graph; and (ii) a fraction, the numerator of which is one million two 20 hundred thousand dollars less the total income of the taxpayer, and the 21 denominator of which is two hundred thousand dollars. 22 (3) To the extent the amount of the credit allowed by this subdivision 23 exceeds the amount of tax due pursuant to this subchapter, as calculated 24 without such credit, such excess amount shall be treated as an overpay- 25 ment of tax to be credited or refunded in accordance with the provisions 26 of section 11-677 of this chapter, provided, however, that notwithstand- 27 ing the requirements of section 11-679 of this chapter to the contrary, 28 no interest shall be paid thereon. 29 (4) Notwithstanding subparagraph one of this paragraph, the aggregate 30 amount of credits allowed pursuant to this subdivision, subdivision (q) 31 of section 11-503 of this title and subdivision twenty-three of section 32 11-654 of this chapter shall not exceed fifty million dollars. If, after 33 aggregating the amount of the credits allowed pursuant to each of such 34 subdivisions, the department of finance determines that the value of 35 such credits is greater than fifty million dollars, the department of 36 finance shall allocate the amount of such credits among eligible taxpay- 37 ers on a pro rata basis. The amount of the credit allocated to each 38 taxpayer shall be the product of: (i) the amount of the credit 39 prescribed by subparagraph one of this paragraph; and (ii) a fraction, 40 the numerator of which is fifty million dollars, and the denominator of 41 which is the aggregate amount of the credits allowed by the department 42 of finance pursuant to this subdivision, subdivision (q) of section 43 11-503 of this title and subdivision twenty-three of section 11-654 of 44 this chapter. 45 (5) The commissioner of finance shall revoke a certificate of tax 46 credit issued by the department of finance pursuant to this subdivision 47 if it appears that the taxpayer is not a qualified small business or 48 does not satisfy one or more of the other eligibility criteria set forth 49 in paragraph (b) of this subdivision, or that any other requirement of 50 the small business recovery tax credit has not been satisfied. Upon 51 determining that a certificate of tax credit issued by the department of 52 finance pursuant to this subdivision should be revoked, the amount of 53 credit claimed by the taxpayer prior to such revocation shall be added 54 to the tax due pursuant to this subchapter for the taxable year in which 55 any such revocation becomes final. The commissioner of finance shall 56 modify a certificate of tax credit issued by the department of financeA. 3009--B 130 1 pursuant to this subdivision if it appears that the rent expense 2 provided by such taxpayer is not accurate and shall adjust the tax due 3 pursuant to this subchapter for the taxable year in which any such 4 modification becomes final in an amount consistent with such modifica- 5 tion. 6 (e) Powers and duties of the commissioner. (1) The commissioner of 7 finance may promulgate rules necessary to implement the provisions of 8 this subdivision. Such rules shall establish an application process and 9 eligibility criteria for the small business recovery tax credit, 10 consistent with this subdivision, so as not to exceed the annual limita- 11 tion on the aggregate amount of the small business recovery tax credit 12 authorized by this subdivision, the small business recovery tax credit 13 authorized by subdivision (q) of section 11-503 of this title, and the 14 small business recovery tax credit authorized by subdivision twenty- 15 three of section 11-654 of this chapter set forth in subparagraph four 16 of paragraph (d) of this subdivision. 17 (2) The commissioner of finance shall develop a certificate of tax 18 credit that shall be issued to taxpayers that apply and are determined 19 to be eligible for the small business recovery tax credit pursuant to 20 this subdivision. Such certificate shall contain such information as 21 required by the department of finance. 22 § 3. Section 11-654 of the administrative code of the city of New York 23 is amended by adding a new subdivision 23 to read as follows: 24 23. Small business recovery tax credit. (a) Definitions. For purposes 25 of this subdivision, the following terms have the following meanings: 26 (1) "Accommodation sector" means the portion of the economy consisting 27 of establishments that provide lodging or short-term accommodations for 28 travelers, vacationers, and others. 29 (2) "Arts, entertainment, and recreation sector" means the portion of 30 the economy consisting of establishments that operate facilities or 31 provide services to meet cultural, entertainment, and recreational 32 interests of their patrons. This sector consists of: (i) establishments 33 that are involved in producing, promoting, or participating in live 34 performances, events, or exhibits intended for public viewing; (ii) 35 establishments that preserve and exhibit objects and sites of histor- 36 ical, cultural, or educational interest; and (iii) establishments that 37 operate facilities or provide services that enable patrons to partic- 38 ipate in recreational activities or pursue amusement, hobby, and 39 leisure-time interests. 40 (3) "Average starting full-time employment" means the average number 41 of full-time equivalent positions employed by a qualifying small busi- 42 ness between January first, two thousand twenty-one, and March thirty- 43 first, two thousand twenty-one. 44 (4) "Average ending full-time employment" means the average number of 45 full-time equivalent positions employed by a qualifying small business 46 between April first, two thousand twenty-one, and December thirty-first, 47 two thousand twenty-one. 48 (5) "Certificate of tax credit" means the document issued to a quali- 49 fying small business by the department of finance specifying the amount 50 of the small business recovery tax credit that such qualifying small 51 business may claim pursuant to this subdivision. 52 (6) "Chain" means a set of establishments that share a common brand or 53 that are characterized by standardized options for decor, marketing, 54 packaging, products and services.A. 3009--B 131 1 (7) "Food services sector" means the portion of the economy consisting 2 of establishments that are primarily organized and operated to prepare 3 and provide food or beverages to customers for consumption. 4 (8) "Landlord" means a person who grants the right to use or occupy 5 premises to any lessee, sublessee, licensee or concessionaire, whether 6 or not such person is the owner of the premises. 7 (9) "Qualifying small business" means a natural person, or a business 8 entity that is independently owned and operated and not part of a chain, 9 that: 10 (i) operates predominantly in the accommodation sector, arts, enter- 11 tainment, and recreation sector, or food services sector, provided that 12 any such natural person or business entity operating in the food 13 services sector both: (A) offered, prior to March two thousand twenty, 14 the opportunity for consumption of food or beverages on the business 15 premises operated by such person or entity; and 16 (B) was required to close indoor dining in March two thousand twenty 17 as a result of a ban on indoor dining arising from the COVID-19 pandem- 18 ic; 19 (ii) pays rent as a lessee, sublessee, licensee or concessionaire to 20 use or occupy business premises located within the city; and 21 (iii) has a total income of less than one million two hundred thousand 22 dollars. 23 (10) "Rent expense" means the consideration paid by a qualifying small 24 business for the use or occupancy of business premises located within 25 the city, valued in money, whether received in money or otherwise, 26 including all credits and property or services of any kind and including 27 any payment required to be made by the qualifying small business on 28 behalf of the owner or landlord of the business premises for real estate 29 taxes, water rents or charges, sewer rents or any other expenses, 30 including insurance, normally payable by an owner or landlord, other 31 than expenses for the improvement, repair or maintenance of the business 32 premises, less the amounts received by such qualifying small business 33 for the same period from any person for the use or occupancy of any part 34 of such business premises. 35 (11) "Small business recovery tax credit" means the small business 36 recovery tax credit authorized by this subdivision. 37 (12) "Total income" means gross receipts minus the cost of goods sold 38 as reported for federal income tax purposes on the federal income tax 39 return of the taxpayer for the tax year immediately preceding the period 40 for which the taxpayer is applying for the small business recovery tax 41 credit. 42 (b) Eligibility criteria. To be eligible for the small business recov- 43 ery tax credit, a taxpayer must: 44 (1) be a qualifying small business; 45 (2) file a report pursuant to section 11-655 of this subchapter, and 46 not file a combined report pursuant to section 11-654.3 of this subchap- 47 ter; 48 (3) operate a business premises at a location within the city that 49 charges for admission or accepts payment for goods or services from 50 retail customers who pay for such goods or receive such service on such 51 premises; and 52 (4) demonstrate that its average ending full-time employment was not 53 less than its average starting full-time employment. 54 (c) Application and approval process.A. 3009--B 132 1 (1) To apply for the small business recovery tax credit, a taxpayer 2 must submit an application in the form and manner as prescribed by the 3 commissioner of finance. 4 (2) The commissioner of finance shall establish procedures, including 5 any application deadlines, for the submission of applications by taxpay- 6 ers. As part of the application, each taxpayer must: 7 (i) demonstrate in a form and manner prescribed by the commissioner of 8 finance that such taxpayer is eligible for the small business recovery 9 tax credit pursuant to paragraph (b) of this subdivision; 10 (ii) notwithstanding section 11-688 of this chapter, agree to allow 11 the department of finance to share information related to such taxpayer 12 with any other state or local agency as necessary for the implementation 13 and administration of the small business recovery tax credit, provided, 14 however, that any information shared pursuant to this clause shall not 15 be available for disclosure or inspection pursuant to article six of the 16 public officers law; and 17 (iii) agree to provide any additional information deemed necessary by 18 the department of finance for the implementation and administration of 19 the small business recovery tax credit. 20 (3) After reviewing a completed application of a taxpayer and deter- 21 mining that such taxpayer meets the eligibility criteria for the small 22 business recovery tax credit as set forth in this subdivision, the 23 department of finance shall issue to such taxpayer a certificate of tax 24 credit. A taxpayer may claim the amount identified on the certificate of 25 tax credit only on its tax return for the taxable year that includes 26 December thirty-first, two thousand twenty-one. Issuance or denial of a 27 certificate of tax credit shall constitute a final determination of the 28 department of finance unless, within thirty days, the taxpayer seeks 29 administrative review by the commissioner of finance of such determi- 30 nation. 31 (d) Amount of the small business recovery tax credit. (1) Except as 32 otherwise provided in subparagraphs two, three and four of this para- 33 graph, a taxpayer that meets the eligibility requirements set forth in 34 paragraph (b) of this subdivision shall be allowed a credit against the 35 tax imposed by this subchapter in an amount equal to six percent of the 36 rent expense of such taxpayer for calendar year two thousand twenty-one, 37 provided that such amount shall not exceed ten thousand dollars. 38 (2) Notwithstanding subparagraph one of this paragraph, a taxpayer 39 that meets the eligibility requirements set forth in paragraph (b) of 40 this subdivision and has a total income that is greater than one million 41 dollars but less than one million two hundred thousand dollars shall be 42 allowed a credit in an amount that is the product of: (i) the amount 43 that would otherwise be allowed under subparagraph one of this para- 44 graph; and (ii) a fraction, the numerator of which is one million two 45 hundred thousand dollars less the total income of the taxpayer, and the 46 denominator of which is two hundred thousand dollars. 47 (3) To the extent the amount of the credit allowed by this subdivision 48 exceeds the amount of tax due pursuant to this subchapter, as calculated 49 without such credit, such excess amount shall be treated as an overpay- 50 ment of tax to be credited or refunded in accordance with the provisions 51 of section 11-677 of this chapter, provided, however, that notwithstand- 52 ing the requirements of section 11-679 of this chapter to the contrary, 53 no interest shall be paid thereon. 54 (4) Notwithstanding subparagraph one of this paragraph, the aggregate 55 amount of credits allowed pursuant to this subdivision, subdivision (q) 56 of section 11-503 of this title, and subdivision twenty-three of sectionA. 3009--B 133 1 11-604 of this chapter shall not exceed fifty million dollars. If, after 2 aggregating the amount of the credits allowed pursuant to each of such 3 subdivisions, the department of finance determines that the value of 4 such credits is greater than fifty million dollars, the department of 5 finance shall allocate the amount of such credits among eligible taxpay- 6 ers on a pro rata basis. The amount of the credit allocated to each 7 taxpayer shall be the product of: (i) the amount of the credit 8 prescribed by subparagraph one of this paragraph; and (ii) a fraction, 9 the numerator of which is fifty million dollars, and the denominator of 10 which is the aggregate amount of the credits allowed by the department 11 of finance pursuant to this subdivision, subdivision (q) of section 12 11-503 of this title and subdivision twenty-three of section 11-604 of 13 this chapter. 14 (5) The commissioner of finance shall revoke a certificate of tax 15 credit issued by the department of finance pursuant to this subdivision 16 if it appears that the taxpayer is not a qualified small business or 17 does not satisfy one or more of the other eligibility criteria set forth 18 in paragraph (b) of this subdivision, or that any other requirement of 19 the small business recovery tax credit has not been satisfied. Upon 20 determining that a certificate of tax credit issued by the department of 21 finance pursuant to this subdivision should be revoked, the amount of 22 the credit claimed by such taxpayer prior to such revocation shall be 23 added to the tax due pursuant to this subchapter for the taxable year in 24 which any such revocation becomes final. The commissioner shall modify a 25 certificate of tax credit issued by the department of finance pursuant 26 to this subdivision if it appears that the rent expense provided by such 27 taxpayer is not accurate and shall adjust the tax due pursuant to this 28 subchapter for the taxable year in which any such modification becomes 29 final in an amount consistent with such modification. 30 (e) Powers and duties of the commissioner. (1) The commissioner of 31 finance may promulgate rules necessary to implement the provisions of 32 this subdivision. Such rules shall establish an application process and 33 eligibility criteria for the small business recovery tax credit consist- 34 ent with this subdivision, so as not to exceed the annual limitation on 35 the aggregate amount of the tax credit authorized by this subdivision, 36 the small business recovery tax credit authorized by subdivision (q) of 37 section 11-503 of this title, and the small business recovery tax credit 38 authorized by subdivision twenty-three of section 11-604 of this chap- 39 ter, set forth in subparagraph four of paragraph (d) of this subdivi- 40 sion. 41 (2) The commissioner of finance shall develop a certificate of tax 42 credit that shall be issued to taxpayers that apply and are determined 43 to be eligible for the small business recovery tax credit pursuant to 44 this subdivision. Such certificate shall contain such information as 45 required by the department of finance. 46 § 4. This act shall take effect immediately. 47 PART ZZ 48 Section 1. Subdivision (a) of section 1115 of the tax law is amended 49 by adding a new paragraph 46 to read as follows: 50 (46) Breast pump replacement parts and breast pump collection and 51 storage supplies to an individual purchaser for home use. For purposes 52 of this subdivision: 53 (A) "Breast pump replacement parts" shall mean items used in conjunc- 54 tion with a breast pump to collect milk expressed from a human breastA. 3009--B 134 1 and shall include, but not be limited to: breast shields and breast 2 shield connectors; breast pump tubes and tubing adapters; breast pump 3 valves and membranes; backflow protectors and backflow protector adapt- 4 ers; and bottles and bottle caps specific to the operation of the breast 5 pump. 6 (B) "Breast pump collection and storage supplies" shall mean breast 7 milk storage bags used to collect breast milk and to store collected 8 breast milk until it is ready for consumption. 9 § 2. This act shall take effect on the first day of a sales tax quar- 10 terly period, as described in subdivision (b) of section 1136 of the tax 11 law, beginning at least ninety days after the date this act shall have 12 become a law and shall apply to sales made on or after such date. 13 PART AAA 14 Section 1. The section heading of section 421-f of the real property 15 tax law, as amended by chapter 590 of the laws of 1994, is amended to 16 read as follows: 17 Exemption of capital improvements to residential buildings and certain 18 new construction. 19 § 2. Section 421-f of the real property tax law is amended by adding a 20 new subdivision 1-a to read as follows: 21 1-a. Buildings classified as class one property in section eighteen 22 hundred two of this chapter reconstructed, altered, improved, or newly 23 constructed in a special assessing unit that is not a city shall be 24 exempt from taxation and special ad valorem levies to the extent 25 provided hereinafter in the same manner and to the same extent to coun- 26 ty, town, special district and school district taxes levied on the 27 assessment roll prepared by such special assessing unit. Additional 28 buildings and yard improvements shall be excluded from receiving this 29 exemption. An application shall not be required to receive the 30 exemption. 31 § 3. Subdivisions 2 and 3 of section 421-f of the real property tax 32 law, as amended by chapter 590 of the laws of 1994, subparagraph (ii) of 33 paragraph (a) of subdivision 2 and subdivision 3 as further amended by 34 subdivision (b) of section 1 of part W of chapter 56 of the laws of 35 2010, are amended to read as follows: 36 2. (a) Such buildings shall be exempt for a period of one year to the 37 extent of one hundred per centum of the increase in assessed value ther- 38 eof attributable to such reconstruction, alteration or improvement, and 39 new construction pursuant to subdivision one-a of this section, and for 40 an additional period of seven years subject to the following: 41 (i) The extent of such exemption shall be decreased by twelve and 42 one-half per centum of the "exemption base" each year during such addi- 43 tional period. The "exemption base" shall be the increase in assessed 44 value as determined in the initial year of the term of the exemption, 45 except as provided in subparagraph (ii) of this paragraph. 46 (ii) In any year in which a change in level of assessment of fifteen 47 percent or more is certified for a final assessment roll pursuant to the 48 rules of the commissioner, the exemption base shall be multiplied by a 49 fraction, the numerator of which shall be the total assessed value of 50 the parcel on such final assessment roll (after accounting for any phys- 51 ical or quantity changes to the parcel since the immediately preceding 52 assessment roll), and the denominator of which shall be the total 53 assessed value of the parcel on the immediately preceding final assess- 54 ment roll. The result shall be the new exemption base. The exemptionA. 3009--B 135 1 shall thereupon be recomputed to take into account the new exemption 2 base, notwithstanding the fact that the assessor receives certification 3 of the change in level of assessment after the completion, verification 4 and filing of the final assessment roll. In the event the assessor does 5 not have custody of the roll when such certification is received, the 6 assessor shall certify the recomputed exemption to the local officers 7 having custody and control of the roll, and such local officers are 8 hereby directed and authorized to enter the recomputed exemption certi- 9 fied by the assessor on the roll. The assessor shall give written notice 10 of such recomputed exemption to the property owner, who may, if he or 11 she believes that the exemption was recomputed incorrectly, apply for a 12 correction in the manner provided by title three of article five of this 13 chapter for the correction of clerical errors. 14 (iii) [Such] Except in a special assessing unit that is not a city, 15 such exemption shall be limited to eighty thousand dollars in increased 16 market value, or such other sum less than eighty thousand dollars, but 17 not less than five thousand dollars as may be provided by the local law 18 or resolution, of the property attributable to such reconstruction, 19 alteration or improvement and any increase in market value greater than 20 such amount shall not be eligible for the exemption pursuant to this 21 section. In a special assessing unit that is not a city, the exemption 22 shall be limited to seven hundred fifty thousand dollars in increased 23 market value. For the purposes of this section, the market value of the 24 reconstruction, alteration or improvement, or new construction as 25 authorized by subdivision one-a of this section, shall be equal to the 26 increased assessed value attributable to such reconstruction, alteration 27 [or], improvement or new construction divided by the class [I] one ratio 28 in a special assessing unit or the most recently established state 29 equalization rate or special equalization rate in the remainder of the 30 state, except where the state equalization rate or special equalization 31 rate equals or exceeds ninety-five percent, in which case the increase 32 in assessed value attributable to such reconstruction, alteration [or], 33 improvement or new construction shall be deemed to equal the market 34 value of such reconstruction, alteration or improvement. 35 (b) [No] Except in a special assessing unit that is not a city, no 36 such exemption shall be granted for reconstruction, alterations or 37 improvements unless: 38 (i) such reconstruction, alteration or improvement was commenced 39 subsequent to the effective date of the local law or resolution adopted 40 pursuant to subdivision one of this section; and 41 (ii) the value of such reconstruction, alteration or improvement 42 exceeds three thousand dollars; and 43 (iii) the greater portion, as so determined by square footage, of the 44 building reconstructed, altered or improved is at least five years old. 45 (c) For purposes of this section the terms reconstruction, alteration 46 and improvement shall not include ordinary maintenance and repairs. 47 3. [Such] Except in a special assessing unit that is not a city, such 48 exemption shall be granted only upon application by the owner of such 49 building on a form prescribed by the commissioner. The application shall 50 be filed with the assessor of the city, town, village or county having 51 the power to assess property for taxation on or before the appropriate 52 taxable status date of such city, town, village or county. In a special 53 assessing unit that is not a city, the exemption shall be applied based 54 upon that completion of reconstruction, alteration, improvement or new 55 construction on or before the applicable taxable status date of the 56 special assessing unit; provided, however that the exemption for suchA. 3009--B 136 1 reconstruction, alteration, improvement or new construction that 2 occurred after the taxable status date of such special assessing unit 3 for the two thousand nineteen -- two thousand twenty assessment roll 4 and on or before the taxable status date of such special assessing unit 5 for the two thousand twenty -- two thousand twenty-one assessment roll 6 shall be applied beginning with the two thousand twenty-one -- two thou- 7 sand twenty-two assessment roll. 8 § 4. Subdivisions 5, 6 and 7 of section 421-f of the real property tax 9 law, as amended by chapter 590 of the laws of 1994, are amended to read 10 as follows: 11 5. For the purposes of this section, except in a special assessing 12 unit that is not a city, a residential building shall mean any building 13 or structure designed and occupied exclusively for residential purposes 14 by not more than two families. 15 6. In the event that a building granted an exemption pursuant to this 16 section ceases to be used primarily for residential purposes [or], is no 17 longer classified as class one property in a special assessing unit that 18 is not a city, or title thereto is transferred to other than the heirs 19 or distributees of the owner in other than a special assessing unit that 20 is not a city, the exemption granted pursuant to this section shall 21 cease. 22 7. (a) [A] Except for a special assessing unit that is not a city, a 23 county, city, town or village may, by its local law, or school district, 24 by its resolution: 25 (i) reduce the per centum of exemption otherwise allowed pursuant to 26 this section; 27 (ii) limit eligibility for the exemption to those forms of recon- 28 struction, alterations or improvements as are prescribed in such local 29 law or resolution; 30 (iii) provide that the exemption shall be applicable only to those 31 improvements which would otherwise result in an increase in the assessed 32 valuation of the real property but which consist of an addition, remod- 33 eling or modernization to an existing residential structure to prevent 34 physical deterioration of the structure or to comply with applicable 35 building, sanitary, health and/or fire codes. 36 (b) No such local law or resolution shall reduce or repeal an 37 exemption granted pursuant to this section until the expiration of the 38 period for which such exemption was granted. 39 § 5. Applicability. This act shall be applicable beginning with the 40 two thousand twenty -- two thousand twenty-one assessment roll through 41 and including the two thousand twenty-two -- two thousand twenty-three 42 assessment roll. 43 § 6. Severability. If any clause, sentence, paragraph, section or part 44 of this act shall be adjudged by any court of competent jurisdiction to 45 be invalid and after exhaustion of all further judicial review, the 46 judgment shall not affect, impair or invalidate the remainder thereof, 47 but shall be confined in its operation to the clause, sentence, para- 48 graph, section or part of this act directly involved in the controversy 49 in which the judgment shall have been rendered. 50 § 7. This act shall take effect immediately. 51 PART BBB 52 Section 1. The agriculture and markets law is amended by adding a new 53 article 27 to read as follows:A. 3009--B 137 1 ARTICLE 27 2 NOURISH NEW YORK 3 Section 450. Declaration of legislative findings and intent. 4 451. Definitions. 5 452. Nourish New York program. 6 § 450. Declaration of legislative findings and intent. While the Nour- 7 ish New York program was developed in response to disrupted food supply 8 chains due to the COVID-19 pandemic, it has emerged as an important 9 innovation, significantly supporting the state's farms while providing 10 nourishing fresh foods to people experiencing food insecurity. The 11 COVID-19 crisis unveiled the weaknesses in our state's food supply 12 system and has caused serious economic hardships for the state's farms 13 and agribusinesses. But, in the ten months since its inception, Nourish 14 New York has already strengthened the state's food supply network and 15 expanded markets for New York farm products. The local food movement has 16 also gained significant momentum during the pandemic, with increasing 17 numbers of New Yorkers wanting to know where their food is sourced. 18 This presents the state with a major opportunity to support our local 19 economies and create greater equity in our food system by providing 20 greater access to local, healthy options in food insecure areas through 21 making the Nourish New York program permanent. 22 § 451. Definitions. 1. "Food relief organization" means a religious 23 organization or other not-for-profit that provides food for free to 24 persons experiencing food insecurity, including but not limited to a 25 food pantry, food bank, or soup kitchen or community-based organization 26 that provides food for free to persons experiencing food insecurity. 27 2. "Surplus agricultural products" means consumable or edible agricul- 28 tural products, including processed products, grown, produced or 29 harvested in New York but shall not include beverages containing alco- 30 hol. 31 § 452. Nourish New York program. 1. The commissioner, in cooperation 32 with the commissioner of health, shall, to the extent permitted by state 33 or federal appropriations for such purpose, facilitate and promote the 34 purchase, processing and distribution of surplus agricultural products 35 that are provided to food-insecure New Yorkers through food relief 36 organizations at competitive wholesale prices. The goal of such program 37 is to benefit as many food-insecure households and farmers as possible, 38 but also, whenever possible, to: 39 (a) promote such agricultural products and processed food products 40 sourced from small family-owned farms and businesses, including minori- 41 ty- or women-owned farms, food processing and food-service businesses; 42 (b) promote the preparation and packaging and delivery of such food 43 for food-insecure households in a manner that: is practical for pickup 44 or delivery; is practical for food preparation and storage; reduces food 45 waste; promotes food safety; and is culturally and religiously appropri- 46 ate as necessary; and 47 (c) distribute such food or provide access to New York farm products 48 for food-insecure households in a cost-effective manner that is accessi- 49 ble for such households through local, community-based sites including, 50 but not limited to, food pantries, other not-for-profit food programs, 51 farmers' markets, and small food businesses in underserved communities. 52 The commissioner shall, in coordination with the commissioner of 53 health, solicit the input of representatives of farmers, food relief 54 organizations, food businesses, institutions of higher education with 55 expertise in agriculture, food preparation, distribution and food inse- 56 curity and any other representatives the commissioners deem necessary toA. 3009--B 138 1 produce a report to provide advice, guidance, and recommendations on how 2 best to achieve the goals of the program. The commissioners shall 3 provide such written report of the findings identifying any proposed 4 recommendations to the governor, the speaker of the assembly, and the 5 temporary president of the senate on or before February first, two 6 thousand twenty-two, and shall publish such report on the department's 7 website. 8 2. The commissioner shall provide technical assistance and information 9 about the program to food relief organizations, producers of surplus 10 agricultural products and the public, including, but not limited to, 11 information posted on the department's website. 12 3. The commissioner shall provide means, which may include posting on 13 the department's website, for producers to make available surplus agri- 14 cultural products and for food relief organizations to access surplus 15 agricultural products. 16 4. The commissioner of health, in consultation with the commissioner, 17 shall review the current funding structure, funding adequacy and current 18 service levels of the hunger prevention nutrition assistance program in 19 all regions of the state. Review of current service levels shall take 20 into account the size of the service area, the population in need of 21 such hunger prevention nutrition assistance program and the need for 22 additional facilities within a region in order to address increasing 23 food insecurity and hunger. Following such review, the commissioner of 24 health shall make and report any recommendations, including but not 25 limited to, increasing the maximum amount of money each food pantry may 26 be allocated by such program, whether such program funding should be 27 indexed for inflation annually, and any structural and funding adequacy 28 changes deemed necessary. Such report shall be completed and submitted 29 to the governor and the legislature no later than February first, two 30 thousand twenty-two. 31 5. The commissioner of health, in consultation with the commissioner, 32 shall review and report on the need to establish a grant program to fund 33 the purchase of cold storage equipment and vehicles for regional food 34 banks, food pantries and other emergency food organizations. Such grant 35 program shall prioritize regions of the state that have the highest 36 demand for emergency food and regions of the state where regional food 37 banks and pantries have determined the need for more capacity to safely 38 store and transport perishable food before such food is distributed. 39 Such report shall be completed and submitted to the governor and the 40 legislature no later than February first, two thousand twenty-two. 41 § 2. This act shall take effect immediately. 42 § 2. Severability clause. If any clause, sentence, paragraph, subdivi- 43 sion, section or part of this act shall be adjudged by any court of 44 competent jurisdiction to be invalid, such judgment shall not affect, 45 impair, or invalidate the remainder thereof, but shall be confined in 46 its operation to the clause, sentence, paragraph, subdivision, section 47 or part thereof directly involved in the controversy in which such judg- 48 ment shall have been rendered. It is hereby declared to be the intent of 49 the legislature that this act would have been enacted even if such 50 invalid provisions had not been included herein. 51 § 3. This act shall take effect immediately provided, however, that 52 the applicable effective date of Parts A through BBB of this act shall 53 be as specifically set forth in the last section of such Parts.
