Bill Text: NY A04011 | 2011-2012 | General Assembly | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relates to the dormancy period of miscellaneous unclaimed property, payment of abandoned property, publication of notices of abandoned property, and written reports pertaining to payment of abandoned property; relates to reports by the commissioner regarding abandoned property; relates to payments from the abandoned property fund; relates to extending the disclosure and penalty provisions for transactions that present the potential for tax avoidance; directs the crediting of lottery prizes of more than six hundred dollars against liability for any tax administered by the commissioner of taxation and finance; extends certain provisions relating to extending dates of application of investment tax credit; provides a credit against income tax for persons or entities investing in low-income housing; relates to the excelsior jobs program; conforms laws to the federal Dodd-Frank Wall Street Reform and Consumer Protection Act; extends certain provisions of laws relating to franchise tax; updates the tax classification of diesel motor fuel to be consistent with federal laws and makes the diesel tax structure consistent with this new tax treatment; makes a technical correction to the E85 definition; extends effectiveness related to alternative fuels tax exemptions; relates to the distribution of motor vehicle fees; relates to video lottery free play allowance program; relates to prize payout of certain instant lottery games; relates to prize payout for certain multi-jurisdictional lottery games; relates to multi-jurisdictional video lottery gaming; relates to licenses for simulcast facilities, sums relating to track simulcast, simulcast out-of-state thoroughbred races, simulcasting of races run by out-of-state harness tracks and distributions of wagers; extends related provisions; relates to application fees owed by retail dealers of businesses that sell tobacco products and owners of cigarette vending machines; establishes standards for electronic real property tax administration, allows the department of taxation and finance to use electronic communication means to furnish tax notices and other documents, mandatory electronic filing of tax documents, debit cards issued for tax refunds, and improves sales tax compliance; establishes the economic transformation and facility redevelopment program and providing tax benefits under that program.
Spectrum: Committee Bill
Status: (Introduced - Dead) 2011-03-30 - substituted by s2811c [A04011 Detail]
Download: New_York-2011-A04011-Amended.html
Bill Title: Relates to the dormancy period of miscellaneous unclaimed property, payment of abandoned property, publication of notices of abandoned property, and written reports pertaining to payment of abandoned property; relates to reports by the commissioner regarding abandoned property; relates to payments from the abandoned property fund; relates to extending the disclosure and penalty provisions for transactions that present the potential for tax avoidance; directs the crediting of lottery prizes of more than six hundred dollars against liability for any tax administered by the commissioner of taxation and finance; extends certain provisions relating to extending dates of application of investment tax credit; provides a credit against income tax for persons or entities investing in low-income housing; relates to the excelsior jobs program; conforms laws to the federal Dodd-Frank Wall Street Reform and Consumer Protection Act; extends certain provisions of laws relating to franchise tax; updates the tax classification of diesel motor fuel to be consistent with federal laws and makes the diesel tax structure consistent with this new tax treatment; makes a technical correction to the E85 definition; extends effectiveness related to alternative fuels tax exemptions; relates to the distribution of motor vehicle fees; relates to video lottery free play allowance program; relates to prize payout of certain instant lottery games; relates to prize payout for certain multi-jurisdictional lottery games; relates to multi-jurisdictional video lottery gaming; relates to licenses for simulcast facilities, sums relating to track simulcast, simulcast out-of-state thoroughbred races, simulcasting of races run by out-of-state harness tracks and distributions of wagers; extends related provisions; relates to application fees owed by retail dealers of businesses that sell tobacco products and owners of cigarette vending machines; establishes standards for electronic real property tax administration, allows the department of taxation and finance to use electronic communication means to furnish tax notices and other documents, mandatory electronic filing of tax documents, debit cards issued for tax refunds, and improves sales tax compliance; establishes the economic transformation and facility redevelopment program and providing tax benefits under that program.
Spectrum: Committee Bill
Status: (Introduced - Dead) 2011-03-30 - substituted by s2811c [A04011 Detail]
Download: New_York-2011-A04011-Amended.html
S T A T E O F N E W Y O R K
________________________________________________________________________
S. 2811--A A. 4011--A
S E N A T E - A S S E M B L Y
February 1, 2011
___________
IN SENATE -- A BUDGET BILL, submitted by the Governor pursuant to arti-
cle seven of the Constitution -- read twice and ordered printed, and
when printed to be committed to the Committee on Finance -- committee
discharged, bill amended, ordered reprinted as amended and recommitted
to said committee
IN ASSEMBLY -- A BUDGET BILL, submitted by the Governor pursuant to
article seven of the Constitution -- read once and referred to the
Committee on Ways and Means -- committee discharged, bill amended,
ordered reprinted as amended and recommitted to said committee
AN ACT to amend the abandoned property law, in relation to the dormancy
period of miscellaneous unclaimed property, payment of abandoned prop-
erty, publication of notices of abandoned property, and written
reports pertaining to payment of abandoned property; to amend the tax
law, in relation to reports by the commissioner regarding abandoned
property; and to repeal certain provisions of the abandoned property
law and the tax law relating thereto (Part A); to amend part N of
chapter 61 of the laws of 2005 amending the tax law relating to
certain transactions and related information and relating to the
voluntary compliance initiative; in relation to making permanent the
disclosure and penalty provisions for transactions that present the
potential for tax avoidance (Part B); to amend the tax law, in
relation to the empire zones program (Part C); to amend the tax law,
in relation to directing the crediting of lottery prizes of more than
six hundred dollars against liability for any tax administered by the
commissioner of taxation and finance (Part D); to amend chapter 56 of
the laws of 1998, amending the tax law and other laws relating to
extending the dates of application of the investment tax credit under
articles 9-A, 22 and 32 of the tax law and to amend chapter 63 of the
laws of 2000, amending the tax law and other laws relating to extend-
ing the dates of application of the investment tax credit under arti-
cle 33 of the tax law, in relation to extending the effectiveness
thereof (Part E); to amend the public housing law, in relation to
providing a credit against income tax for persons or entities invest-
ing in low-income housing (Part F); to amend the economic development
law, the tax law and the public service law, in relation to the
excelsior jobs program (Part G); to amend the tax law, in relation to
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD12574-02-1
S. 2811--A 2 A. 4011--A
the exemption from the franchise tax on insurance corporations under
article thirty-three of such law for town or county cooperative insur-
ance corporations (Part H); to amend the insurance law, the general
municipal law and the tax law, in relation to conforming to the feder-
al Dodd-Frank Wall Street Reform and Consumer Protection Act; and to
repeal paragraphs 8 and 9 of subsection (b) of section 2118 of the
insurance law, relating thereto (Part I); to amend chapter 298 of the
laws of 1985, amending the tax law relating to the franchise tax on
banking corporations imposed by the tax law, authorized to be imposed
by any city having a population of one million or more by chapter 772
of the laws of 1966 and imposed by the administrative code of the city
of New York and relating to other provisions of the tax law, chapter
883 of the laws of 1975 and the administrative code of the city of New
York which relates to such franchise tax, to amend chapter 817 of the
laws of 1987, amending the tax law and the environmental conservation
law, constituting the business tax reform and rate reduction act of
1987, and to amend chapter 525 of the laws of 1988, amending the tax
law and the administrative code of the city of New York relating to
the imposition of taxes in the city of New York, in relation to the
effectiveness of certain provisions of such chapters; and to amend the
tax law and the administrative code of the city of New York, in
relation to extending transitional provisions relating to the federal
Gramm-Leach-Bliley act (Part J); to amend the tax law and the criminal
procedure law, in relation to updating the tax classification of
diesel motor fuel to be consistent with federal laws and make the
diesel tax structure consistent with this new tax treatment; and to
repeal certain provisions of the tax law and the administrative code
of the city of New York relating thereto (Part K); to amend the tax
law, in relation to making a technical correction to the E85 defi-
nition; and to amend chapter 109 of the laws of 2006, amending the tax
law relating to providing exemptions, reimbursements and credits from
various taxes for certain alternative fuels, in relation to extending
the alternative fuels tax exemptions for one year (Part L); to amend
section 11 of part EE of chapter 63 of the laws of 2000, amending the
tax law and other laws relating to modifying the distribution of funds
from the motor vehicle fuel excise tax, in relation to the distrib-
ution of motor vehicle fees (Part M); to amend the tax law, in
relation to restrictions on certain keno style lottery games (Part N);
to amend the tax law, in relation to video lottery free play allowance
program (Part O); to amend the tax law, in relation to prize payout of
certain instant lottery games (Part P); to amend the tax law, in
relation to prize payout in certain multi-jurisdictional lottery games
(Part Q); to amend the tax law, in relation to multi-jurisdictional
video lottery gaming (Part R); and 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 breed-
ing law and other laws relating to simulcasting and 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 S)
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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 2011-2012
3 state fiscal year. Each component is wholly contained within a Part
4 identified as Parts A through S. The effective date for each particular
5 provision contained within such Part is set forth in the last section of
6 such Part. Any provision in any section contained within a Part, includ-
7 ing the effective date of the Part, which makes a reference to a section
8 "of this act", when used in connection with that particular component,
9 shall be deemed to mean and refer to the corresponding section of the
10 Part in which it is found. Section three of this act sets forth the
11 general effective date of this act.
12 PART A
13 Section 1. Paragraphs (a), (b) and (k) of subdivision 1 of section 300
14 of the abandoned property law, paragraph (a) as amended and paragraph
15 (k) as relettered by chapter 15 of the laws of 1983, subparagraph (iv)
16 of paragraph (a) as amended and subparagraph (v) of paragraph (a) as
17 added by chapter 409 of the laws of 1994, paragraphs (b) and (k) as
18 amended by chapter 78 of the laws of 1976, are amended to read as
19 follows:
20 (a) Any amounts due on deposits or any amounts to which a shareholder
21 of a savings and loan association or a credit union is entitled, held or
22 owing by a banking organization, which shall have remained unclaimed for
23 [five] THREE years by the person or persons appearing to be entitled
24 thereto, including any interest or dividends credited thereon, excepting
25 (i) any such amount which has been reduced or increased, exclusive of
26 dividend or interest payment, within [five] THREE years, or
27 (ii) any such amount which is represented by a passbook not in the
28 possession of the banking organization, which has been presented for
29 entry of dividend or interest credit within [five] THREE years, or
30 (iii) any such amount with respect to which the banking organization
31 has on file written evidence received within [five] THREE years that the
32 person or persons appearing to be entitled to such amounts had knowledge
33 thereof, or
34 (iv) any such amount payable only at or by a branch office located in
35 a foreign country, or payable in currency other than United States
36 currency, or
37 (v) any such amount that is separately identifiable and has been set
38 aside to meet the burial and related expenses of an individual, provided
39 however that said amount shall be deemed abandoned property where it
40 remains unclaimed for [five] THREE years subsequent to the death of the
41 individual for whom the amount was deposited.
42 (b) Any amounts, together with all accumulations of interest or other
43 increment thereon, held or owing by a banking organization for the
44 payment of an interest in a bond and mortgage apportioned or transferred
45 by it pursuant to subdivision seven of former section one hundred eight-
46 y-eight of the banking law as it existed prior to July first, nineteen
47 hundred thirty-seven, which shall have remained unclaimed by the person
48 or persons appearing to be entitled thereto for [five] THREE years after
49 the full and final liquidation of such mortgage, excepting
50 (i) any such amount which has been reduced by payment to the person or
51 persons appearing to be entitled thereto within [five] THREE years, or
S. 2811--A 4 A. 4011--A
1 (ii) any such amount which is represented by a certificate of share
2 ownership not in the possession of the banking organization, which
3 certificate has been presented for transfer within [five] THREE years,
4 or
5 (iii) any such amount with respect to which the banking organization
6 has on file written evidence received within [five] THREE years that the
7 person or persons appearing to be entitled to such amount had knowledge
8 thereof.
9 (k) Lost property or instruments as defined in section two hundred
10 fifty-one of the personal property law which shall have been held by a
11 safe deposit company or bank for [five] THREE years pursuant to the
12 provisions of section two hundred fifty-six of the personal property
13 law.
14 S 2. Paragraphs (a) and (c) of subdivision 1 of section 600 of the
15 abandoned property law, paragraph (a) as amended by chapter 655 of the
16 laws of 1978 and paragraph (c) as amended by chapter 281 of the laws of
17 1980, are amended to read as follows:
18 (a) Any moneys including the monetary proceeds from the sale of tangi-
19 ble personal property and securities or other intangible property paid
20 into court, which, except as provided in section ten hundred OF THIS
21 CHAPTER, shall have remained in the hands of any county treasurer, or
22 the commissioner of finance of the city of New York, for [five] THREE
23 years, together with all accumulations of interest or other increment
24 thereon, less such legal fees as he may be entitled to.
25 (c) Any moneys paid to a support bureau of a family court, for the
26 support of a spouse or child, which shall have remained in the custody
27 of a county treasurer, or the commissioner of finance of the city of New
28 York, for [five] THREE years, together with any interest due thereon,
29 less such legal fees as he may be entitled to. For purposes of this
30 section, "family court" includes the domestic relations court of the
31 city of New York prior to the first day of September, nineteen hundred
32 sixty-two.
33 S 3. Subdivision 1 of section 1000 of the abandoned property law, as
34 amended by chapter 670 of the laws of 1989, is amended to read as
35 follows:
36 1. (a) Any moneys held or owing for the payment of an award made by a
37 court in any condemnation proceeding and payable by a public corporation
38 or other corporation possessing powers of condemnation, which shall have
39 remained unclaimed by the person or persons appearing to be entitled
40 thereto for [five] THREE years after confirmation by the court, together
41 with any interest due thereon, less, when an award is payable by a
42 public corporation, any amount due such public corporation at the time
43 of title vesting for tax, water or any other liens on the same parcel
44 the award was for, with any interest due thereon, and any amount due
45 such public corporation at the time of title vesting or at the time of
46 confirmation, whichever is later, for an assessment on the same parcel
47 the award was for, with any interest due thereon, shall be deemed aban-
48 doned property. In any condemnation proceedings in which the court shall
49 have not made an award, any moneys paid into court, including interest
50 thereon, shall be subject to the provisions of article six of this chap-
51 ter and this section shall have no application thereto.
52 (b) The issuance of a warrant for such an award shall not prevent an
53 award from being deemed abandoned property if such warrant is unclaimed
54 [five] THREE years after confirmation of such award by the court.
55 S 4. Subdivision 1 of section 1300 of the abandoned property law is
56 amended to read as follows:
S. 2811--A 5 A. 4011--A
1 1. Any unclaimed moneys arising from the sale of any personal property
2 which shall have been pledged or mortgaged as security for the loan of
3 money with a corporation, except a banking organization or a licensed
4 lender, heretofore or hereafter organized by or pursuant to a special
5 statute for the purpose of, and principally engaged in, giving aid to
6 individuals by loans of money at interest upon the pledge or mortgage of
7 personal property, and which has subjected itself to special provisions
8 of the banking law, after deducting the amount of the loan, the interest
9 then due on the same and any other lawful charges, which shall have
10 remained in its possession for [six] THREE years from the date of such
11 sale, shall be deemed abandoned property.
12 S 5. Subdivision 2 of section 1315 of the abandoned property law, as
13 amended by section 2 of part II of chapter 57 of the laws of 2010, is
14 amended to read as follows:
15 2. Except as otherwise provided by law, any amount representing
16 unclaimed money or securities and held in escrow or otherwise by any
17 corporation (other than a public corporation), joint stock company,
18 individual, association of two or more individuals, committee or busi-
19 ness trust, to ensure the performance of any duty or obligation, shall
20 be deemed abandoned property when:
21 a. such amount is held or owing in this state, and
22 b. such amount has remained unclaimed by the person or persons enti-
23 tled thereto for [five] THREE years, except
24 c. where the duty or obligation for which such amount was deposited
25 has not been performed and such performance is still required, such
26 amounts shall not be deemed abandoned property.
27 S 6. Paragraph (a) of subdivision 1 of section 1002 of the abandoned
28 property law is amended to read as follows:
29 (a) That a report of all awards in condemnation proceedings unclaimed
30 for more than [five] THREE years has been made to the state comptroller
31 and that a copy thereof is on file and open to public inspection, if a
32 public corporation at the office of the chief fiscal officer thereof; or
33 if not a public corporation at the principal office or place of business
34 of such corporation;
35 S 7. Sections 301, 401, 701 and 1001 of the abandoned property law are
36 REPEALED.
37 S 8. Subdivision 1 of section 302 of the abandoned property law is
38 amended to read as follows:
39 1. [Within thirty days after making a report of abandoned property
40 pursuant to the provisions of section three hundred one, such banking]
41 EVERY BANKING organization shall cause to be published, ON OR BEFORE THE
42 FIRST DAY OF SEPTEMBER IN EACH YEAR, a notice entitled: "NOTICE OF NAMES
43 OF PERSONS APPEARING AS OWNERS OF CERTAIN UNCLAIMED PROPERTY HELD BY
44 (name of banking organization)."
45 S 9. The opening paragraph of subdivision 3 of section 302 of the
46 abandoned property law, as amended by chapter 315 of the laws of 1954,
47 is amended to read as follows:
48 Such notice shall[, in accordance with the classification prescribed
49 by the state comptroller for the report pursuant to the provisions of
50 section three hundred one,] set forth:
51 S 10. Section 303 of the abandoned property law is amended to read as
52 follows:
53 S 303. Payment of abandoned property. 1. In such succeeding month of
54 November, and on or before the tenth day thereof, every banking organ-
55 ization shall pay or deliver to the state comptroller all [abandoned]
56 property [specified in such report, excepting such abandoned property as
S. 2811--A 6 A. 4011--A
1 since the date of such report shall have ceased to be abandoned] WHICH,
2 AS OF THE THIRTIETH DAY OF JUNE NEXT PRECEDING, WAS DEEMED ABANDONED
3 PURSUANT TO SECTION THREE HUNDRED OF THIS ARTICLE, HELD OR OWING BY SUCH
4 BANKING ORGANIZATION.
5 2. Such payment shall be accompanied by a [statement] TRUE AND ACCU-
6 RATE REPORT setting forth such information as the state comptroller may
7 require relative to such abandoned property [as shall have ceased to be
8 abandoned]. SUCH REPORT SHALL INCLUDE:
9 (A) WITH RESPECT TO AMOUNTS SPECIFIED IN PARAGRAPH (A) OF SUBDIVISION
10 ONE OF SECTION THREE HUNDRED WHICH ARE ABANDONED PROPERTY:
11 (I) THE NAME AND LAST KNOWN ADDRESS OF THE PERSON OR PERSONS APPEARING
12 FROM THE RECORDS OF SUCH BANKING ORGANIZATION TO BE THE OWNER OF ANY
13 SUCH ABANDONED PROPERTY;
14 (II) THE AMOUNT APPEARING FROM SUCH RECORDS TO BE DUE SUCH PERSON OR
15 PERSONS;
16 (III) THE DATE OF THE LAST TRANSACTION WITH RESPECT TO SUCH ABANDONED
17 PROPERTY;
18 (IV) THE NATURE AND IDENTIFYING NUMBER, IF ANY, OF SUCH ABANDONED
19 PROPERTY; AND
20 (V) SUCH OTHER IDENTIFYING INFORMATION AS THE STATE COMPTROLLER MAY
21 REQUIRE.
22 (B) WITH RESPECT TO AMOUNTS SPECIFIED IN PARAGRAPH (B) OF SUBDIVISION
23 ONE OF SECTION THREE HUNDRED OF THIS ARTICLE WHICH ARE ABANDONED PROPER-
24 TY:
25 (I) THE NAME AND LAST KNOWN ADDRESS, IF ANY, OF THE PERSON OR PERSONS
26 APPEARING FROM THE RECORDS OF SUCH BANKING ORGANIZATION TO BE ENTITLED
27 TO RECEIVE SUCH ABANDONED PROPERTY;
28 (II) THE AMOUNT APPEARING FROM SUCH RECORDS TO BE DUE SUCH PERSON OR
29 PERSONS;
30 (III) THE AMOUNT OF ANY INTEREST OR OTHER INCREMENT DUE THEREON;
31 (IV) THE DATE OF THE LAST TRANSACTION WITH RESPECT TO SUCH ABANDONED
32 PROPERTY; AND
33 (V) SUCH OTHER IDENTIFYING INFORMATION AS THE STATE COMPTROLLER MAY
34 REQUIRE.
35 (C) WITH RESPECT TO AMOUNTS SPECIFIED IN PARAGRAPH (C) OF SUBDIVISION
36 ONE OF SECTION THREE HUNDRED OF THIS ARTICLE WHICH ARE ABANDONED PROPER-
37 TY:
38 (I) THE NAME AND LAST KNOWN ADDRESS, IF ANY, OF THE PERSON OR PERSONS
39 APPEARING FROM THE RECORDS OF SUCH BANKING ORGANIZATION TO BE ENTITLED
40 TO RECEIVE SUCH ABANDONED PROPERTY;
41 (II) A DESCRIPTION OF SUCH ABANDONED PROPERTY INCLUDING IDENTIFYING
42 NUMBERS, IF ANY, AND THE AMOUNT APPEARING FROM SUCH RECORDS TO BE DUE OR
43 PAYABLE;
44 (III) THE AMOUNT OF ANY INTEREST OR OTHER INCREMENT DUE THEREON;
45 (IV) THE DATE SUCH ABANDONED PROPERTY WAS PAYABLE OR DEMANDABLE;
46 (V) THE AMOUNT AND IDENTIFYING NUMBER OF ANY SUCH INSTRUMENT WHERE THE
47 PAYEE THEREOF IS UNKNOWN TO THE BANKING ORGANIZATION; AND
48 (VI) SUCH OTHER IDENTIFYING INFORMATION AS THE STATE COMPTROLLER MAY
49 REQUIRE.
50 (D) WITH RESPECT TO AMOUNTS SPECIFIED IN PARAGRAPH (D) OF SUBDIVISION
51 ONE OF SECTION THREE HUNDRED OF THIS ARTICLE WHICH ARE ABANDONED PROPER-
52 TY:
53 (I) THE NAME AND LAST KNOWN ADDRESS, IF ANY, OF THE PERSON OR PERSONS
54 APPEARING FROM THE RECORDS OF SUCH BANKING ORGANIZATION TO BE THE OWNER
55 OF ANY SUCH ABANDONED PROPERTY; AND
S. 2811--A 7 A. 4011--A
1 (II) SUCH OTHER INFORMATION AS THE STATE COMPTROLLER MAY REASONABLY
2 REQUIRE.
3 3. SUCH REPORT SHALL BE IN SUCH FORM AS THE STATE COMPTROLLER MAY
4 PRESCRIBE. ALL NAMES OF PERSONS APPEARING IN THE SECTION OF SUCH REPORT
5 RELATING TO DEPOSITS, APPEARING TO BE THE OWNERS THEREOF, SHALL BE LIST-
6 ED IN ALPHABETICAL ORDER. ABANDONED PROPERTY OTHER THAN DEPOSITS LISTED
7 IN SUCH REPORT SHALL BE CLASSIFIED IN SUCH MANNER AS THE STATE COMP-
8 TROLLER MAY PRESCRIBE, AND NAMES OF PERSONS APPEARING TO BE ENTITLED TO
9 SUCH ABANDONED PROPERTY APPEARING IN SUCH REPORT SHALL BE LISTED ALPHA-
10 BETICALLY WITHIN EACH SUCH CLASSIFICATION.
11 4. NO BANKING ORGANIZATION IN THIS STATE, ORGANIZED UNDER OR SUBJECT
12 TO THE PROVISIONS OF SECTION SIX HUNDRED ELEVEN OF TITLE TWELVE OF THE
13 UNITED STATES CODE, SHALL BE REQUIRED TO FILE REPORTS OF ABANDONED PROP-
14 ERTY RELATING TO ANY AMOUNTS RECEIVED ON OR BEFORE THE THIRTIETH DAY OF
15 JUNE, NINETEEN HUNDRED SEVENTY-SEVEN, UNLESS, AS OF THE EFFECTIVE DATE
16 OF THIS SUBDIVISION, SUCH AMOUNTS REMAIN RECORDED AND SHOWN IN THE BOOKS
17 AND RECORDS OF SUCH BANKING ORGANIZATION AS AN OUTSTANDING OBLIGATION
18 THEREOF.
19 S 11. Subdivision 1 of section 402 of the abandoned property law is
20 amended to read as follows:
21 1. [Within thirty days after making a report of abandoned property
22 pursuant to the provisions of section four hundred one,] EVERY such
23 corporation shall cause to be published, ON OR BEFORE THE FIRST DAY OF
24 SEPTEMBER IN EACH YEAR, a notice entitled: "NOTICE OF CERTAIN UNCLAIMED
25 PROPERTY HELD BY (name of corporation)."
26 S 12. Section 403 of the abandoned property law is amended to read as
27 follows:
28 S 403. Payment of abandoned property. 1. In such succeeding month of
29 October, and on or before the tenth day thereof, every such corporation
30 shall pay to the state comptroller all [abandoned] property [specified
31 in the last preceding report made to the state comptroller pursuant to
32 section four hundred one, excepting such abandoned property as since the
33 date of such report shall have ceased to be abandoned] WHICH, AS OF THE
34 FIRST DAY OF JULY NEXT PRECEDING, WAS DEEMED ABANDONED PURSUANT TO
35 SECTION FOUR HUNDRED OF THIS ARTICLE, HELD OR OWING BY SUCH CORPORATION.
36 2. Such payment shall be accompanied by a [statement] TRUE AND ACCU-
37 RATE REPORT setting forth such information as the state comptroller may
38 require relating to such abandoned property [as shall have ceased to be
39 abandoned] INCLUDING:
40 (A) AS TO ABANDONED PROPERTY SPECIFIED IN PARAGRAPHS (A) AND (B) OF
41 SUBDIVISION ONE OF SECTION FOUR HUNDRED OF THIS ARTICLE:
42 (I) THE NAME AND LAST KNOWN ADDRESS OF EACH DEPOSITOR OR SUBSCRIBER
43 APPEARING FROM THE RECORDS OF SUCH CORPORATION TO BE ENTITLED TO RECEIVE
44 ANY SUCH ABANDONED PROPERTY;
45 (II) THE DATE WHEN THE DEPOSIT WAS MADE OR AMOUNT PAID;
46 (III) THE AMOUNT OF SUCH DEPOSIT OR PAYMENT;
47 (IV) THE DATE WHEN UTILITY SERVICES FURNISHED TO SUCH CONSUMER OR
48 SUBSCRIBER CEASED;
49 (V) ANY SUMS DUE AND UNPAID TO THE CORPORATION BY SUCH CONSUMER OR
50 SUBSCRIBER, WITH INTEREST THEREON FROM THE DATE OF TERMINATION OF
51 SERVICE;
52 (VI) THE AMOUNT OF INTEREST DUE UPON SUCH DEPOSIT OR PAYMENT ON ANY
53 BALANCE THEREOF THAT HAS REMAINED WITH SUCH CORPORATION AND NOT BEEN
54 CREDITED TO SUCH CONSUMER'S OR SUBSCRIBER'S ACCOUNT;
55 (VII) THE AMOUNT OF SUCH ABANDONED PROPERTY; AND
S. 2811--A 8 A. 4011--A
1 (VIII) SUCH OTHER IDENTIFYING INFORMATION AS THE STATE COMPTROLLER MAY
2 REQUIRE.
3 (B) AS TO ABANDONED PROPERTY SPECIFIED IN PARAGRAPH (C) OF SUBDIVISION
4 ONE OF SECTION FOUR HUNDRED OF THIS ARTICLE:
5 (I) THE NAME AND LAST KNOWN ADDRESS OF EACH PERSON APPEARING FROM THE
6 RECORDS OF SUCH CORPORATION TO BE ENTITLED TO RECEIVE THE SAME;
7 (II) THE AMOUNT APPEARING FROM SUCH RECORDS TO BE DUE EACH SUCH
8 PERSON;
9 (III) THE DATE PAYMENT BECAME DUE; AND
10 (IV) SUCH OTHER IDENTIFYING INFORMATION AS THE STATE COMPTROLLER MAY
11 REQUIRE.
12 3. SUCH REPORT SHALL BE IN SUCH FORM AND THE ABANDONED PROPERTY LISTED
13 SHALL BE CLASSIFIED IN SUCH MANNER AS THE STATE COMPTROLLER MAY
14 PRESCRIBE. NAMES OF PERSONS ENTITLED TO SUCH ABANDONED PROPERTY APPEAR-
15 ING IN SUCH REPORT SHALL BE LISTED IN ALPHABETICAL ORDER WITHIN EACH
16 SUCH CLASSIFICATION.
17 S 13. Paragraph (b) of subdivision 1 of section 700 of the abandoned
18 property law, as amended by chapter 78 of the laws of 1976, is amended
19 to read as follows:
20 (b) Any moneys held or owing by any life insurance corporation which
21 are payable under other kinds of life insurance policies to any person
22 whose last-known address, according to the records of the corporation,
23 is within this state, where the insured, if living, would[, prior to the
24 thirty-first day of December next preceding the report required by
25 section seven hundred one,] have attained the limiting age under the
26 mortality table on which the reserves are based, exclusive of
27 (i) any policy which has within three years been assigned, readjusted,
28 kept in force by payment of premium, reinstated or subjected to loan, or
29 (ii) any policy with respect to which such corporation has on file
30 written evidence received within three years that the person or persons
31 apparently entitled to claim thereunder have knowledge thereof.
32 S 14. Subdivision 1 of section 702 of the abandoned property law, as
33 amended by chapter 497 of the laws of 1944, is amended to read as
34 follows:
35 1. [Within thirty days after making a report of abandoned property
36 pursuant to the provisions of section seven hundred one,] EVERY such
37 life insurance corporation shall cause to be published, ON OR BEFORE THE
38 FIRST DAY OF MAY IN EACH YEAR, a notice entitled: "NOTICE OF NAMES OF
39 PERSONS APPEARING AS OWNERS OF CERTAIN UNCLAIMED PROPERTY HELD BY (name
40 of life insurance corporation)."
41 S 15. The opening paragraph of subdivision 3 of section 702 of the
42 abandoned property law, as amended by chapter 315 of the laws of 1954,
43 is amended to read as follows:
44 Such notice shall[, in accordance with the classification prescribed
45 by the state comptroller for the report pursuant to the provisions of
46 section seven hundred one,] set forth:
47 S 16. Section 703 of the abandoned property law, subdivision 1 as
48 amended by chapter 497 of the laws of 1944, is amended to read as
49 follows:
50 S 703. Payment of abandoned property. 1. In such succeeding month of
51 September, and on or before the succeeding tenth day thereof, every such
52 life insurance corporation shall pay to the state comptroller all [aban-
53 doned] property [specified in such report, excepting such abandoned
54 property as since the date of such report shall have ceased to be aban-
55 doned] WHICH, AS OF THE FIRST DAY OF JANUARY NEXT PRECEDING, WAS DEEMED
S. 2811--A 9 A. 4011--A
1 ABANDONED PURSUANT TO SECTION SEVEN HUNDRED OF THIS ARTICLE, HELD OR
2 OWING BY SUCH LIFE INSURANCE CORPORATION.
3 2. Such payment shall be accompanied by a [statement] TRUE AND ACCU-
4 RATE REPORT setting forth such information as the state comptroller may
5 require relative to such abandoned property [as shall have ceased to be
6 abandoned] INCLUDING:
7 (A) THE NAME AND LAST KNOWN ADDRESS OF ANY PERSON OR PERSONS APPEARING
8 FROM THE RECORDS OF SUCH LIFE INSURANCE CORPORATION TO BE ENTITLED TO
9 RECEIVE ANY SUCH ABANDONED PROPERTY;
10 (B) THE AMOUNT APPEARING FROM THE RECORDS OF SUCH CORPORATION TO BE
11 DUE;
12 (C) THE POLICY NUMBER AND POLICY AGE OF THE INSURED;
13 (D) THE DATE SUCH ABANDONED PROPERTY WAS PAYABLE;
14 (E) THE NAMES AND LAST KNOWN ADDRESSES OF EACH BENEFICIARY APPEARING
15 IN THE RECORDS OF THE INSURER; AND
16 (F) SUCH OTHER IDENTIFYING INFORMATION AS THE STATE COMPTROLLER MAY
17 REQUIRE.
18 3. SUCH REPORT SHALL BE IN SUCH FORM AND THE ABANDONED PROPERTY LISTED
19 SHALL BE CLASSIFIED IN SUCH MANNER AS THE STATE COMPTROLLER MAY
20 PRESCRIBE. NAMES OF PERSONS APPEARING TO BE ENTITLED TO SUCH PROPERTY OR
21 OF BENEFICIARIES APPEARING IN SUCH REPORT SHALL BE LISTED IN ALPHABET-
22 ICAL ORDER WITHIN EACH SUCH CLASSIFICATION.
23 S 17. Section 1003 of the abandoned property law is amended to read as
24 follows:
25 S 1003. Payment of abandoned property. 1. In such succeeding month of
26 February, and on or before the tenth day thereof, every such public and
27 other corporation shall pay to the state comptroller all [abandoned]
28 property [specified in such report, excepting such abandoned property as
29 since the date of such report shall have ceased to be abandoned] WHICH,
30 AS OF THE FIRST DAY OF JULY NEXT PRECEDING, WAS DEEMED ABANDONED PURSU-
31 ANT TO SECTION ONE THOUSAND OF THIS ARTICLE, HELD OR OWING BY SUCH
32 CORPORATION.
33 2. Such payment shall be accompanied by a [statement] TRUE AND ACCU-
34 RATE REPORT setting forth such information as the state comptroller may
35 require in relation to such abandoned property [as shall have ceased to
36 be abandoned] INCLUDING THE TITLE OF THE PROCEEDING, THE NAME AND LAST
37 KNOWN ADDRESS OF THE AWARDEE IF SUCH AWARD IS MADE TO A KNOWN OWNER, THE
38 DATE OF CONFIRMATION, THE DAMAGE PARCEL NUMBER, THE AMOUNT OF THE AWARD,
39 AND THE AMOUNT OF ANY INTEREST DUE THEREON AND, IF A DEDUCTION IS
40 CLAIMED FOR LIENS BY A PUBLIC CORPORATION, THE NATURE AND AMOUNT OF SUCH
41 LIENS AND ANY INTEREST CLAIMED THEREON.
42 S 18. The opening paragraph of subdivision 1 of section 1002 of the
43 abandoned property law is amended to read as follows:
44 [Within thirty days after making a report of abandoned property pursu-
45 ant to the provisions of section ten hundred one,] EVERY such corpo-
46 ration shall cause to be published, ON OR BEFORE THE FIRST DAY OF NOVEM-
47 BER IN EACH YEAR, once in a newspaper of general circulation in each
48 county where a damaged parcel included in such report is located a
49 notice, approved as to form by the state comptroller, stating:
50 S 19. Paragraph (b) of subdivision 6 of section 1406 of the abandoned
51 property law, as amended by chapter 643 of the laws of 1989, is amended
52 to read as follows:
53 (b) Notwithstanding any other provision of law, payment for any aban-
54 doned condemnation award heretofore or hereafter paid to the state comp-
55 troller pursuant to sections ten hundred and ten hundred three of this
56 chapter for the benefit of known persons may be made by the state comp-
S. 2811--A 10 A. 4011--A
1 troller on sworn application, where the name and last known address of
2 the person or persons entitled to payment and any other identifying
3 information as appearing on the records of the court into which payment
4 was made is included in the report required to be filed pursuant to
5 section ten hundred [one] THREE of this chapter and when the identity of
6 the claimant as the person entitled to payment is established to the
7 satisfaction of the state comptroller. When, in the determination of the
8 state comptroller, the identifying information included in the report is
9 insufficient to enable the state comptroller to make a determination of
10 entitlement, such claim must be established only on order of the court
11 as set forth in paragraph (a) of this subdivision.
12 S 20. Subdivision 3 of section 1311 of the abandoned property law is
13 REPEALED.
14 S 21. Subdivision 4 of section 1311 of the abandoned property law, as
15 added by chapter 778 of the laws of 1956, is renumbered subdivision 3
16 and amended to read as follows:
17 3. On or before the tenth day of October in each year, every such
18 corporation shall pay to the state comptroller all [abandoned] property
19 [specified in the last preceding report made to the state comptroller
20 pursuant to this section, excepting such abandoned property as since the
21 date of the report shall have ceased to be abandoned] WHICH, AS OF THE
22 FIRST DAY OF JULY NEXT PRECEDING, WAS DEEMED ABANDONED PURSUANT TO THIS
23 SECTION, HELD OR OWING BY SUCH CORPORATION. SUCH PAYMENT SHALL BE ACCOM-
24 PANIED BY A TRUE AND ACCURATE REPORT CONTAINING SUCH IDENTIFYING INFOR-
25 MATION AS THE STATE COMPTROLLER MAY REQUIRE.
26 S 22. Subdivision 2 of section 1316 of the abandoned property law is
27 REPEALED.
28 S 23. Subdivisions 3 and 4 of section 1316 of the abandoned property
29 law, as amended by chapter 166 of the laws of 1991, are renumbered
30 subdivisions 2 and 3 and amended to read as follows:
31 2. [Within thirty days following the filing of the report of abandoned
32 property with the comptroller pursuant to subdivision two of this
33 section, the] EVERY insurer shall cause to be published, ON OR BEFORE
34 THE FIRST DAY OF MAY IN EACH YEAR, a list of such abandoned property in
35 the same manner as that prescribed for life insurance companies by
36 section seven hundred two of this chapter.
37 3. Such [abandoned] property WHICH WAS DEEMED ABANDONED PURSUANT TO
38 SUBDIVISION ONE OF THIS SECTION shall be paid or delivered to the comp-
39 troller within the first ten days of September of each year. SUCH
40 PAYMENT SHALL BE ACCOMPANIED BY A TRUE AND ACCURATE REPORT THAT SHALL BE
41 IN SUCH FORM AND MANNER AS THE STATE COMPTROLLER MAY PRESCRIBE.
42 S 24. Section 1408 of the abandoned property law is REPEALED.
43 S 25. The opening paragraph of section 503 of the abandoned property
44 law, as amended by chapter 815 of the laws of 1963, is amended to read
45 as follows:
46 Each payment or delivery of abandoned property pursuant to section
47 five hundred two shall be accompanied by a [verified] written report, in
48 such form as the state comptroller shall prescribe, setting forth:
49 S 26. The opening paragraph of section 513 of the abandoned property
50 law, as amended by chapter 815 of the laws of 1963, is amended to read
51 as follows:
52 A payment or delivery pursuant to section five hundred twelve shall be
53 accompanied by a [verified] written report, in such form as the state
54 comptroller may prescribe, setting forth:
55 S 27. Subdivision 4 of section 513 of the abandoned property law is
56 REPEALED.
S. 2811--A 11 A. 4011--A
1 S 28. Subdivision 5 of section 513 of the abandoned property law, as
2 added by chapter 617 of the laws of 1973, is renumbered subdivision 4
3 and amended to read as follows:
4 4. In case any broker or dealer determines the property which shall be
5 deemed abandoned property pursuant to subdivisions one and three of
6 section five hundred eleven by the method provided in subdivision six of
7 that section, the payment of such abandoned property shall be accompa-
8 nied by a [verified] written report, in such form as the state comp-
9 troller may prescribe, which, among other things, shall set forth the
10 computation of the average factor of such broker or dealer pursuant to
11 subdivision six of section five hundred eleven. Each [verified] written
12 report accompanying the payment of abandoned property determined pursu-
13 ant to subdivision six of section five hundred eleven shall contain an
14 undertaking by the broker or dealer making such payment to honor all
15 claims to the extent herein provided whenever made against such broker
16 or dealer by any person determined by him or proved to be entitled to
17 receive from him a stock or cash dividend received in this state during
18 the calendar year covered by such report as the holder of record of a
19 security or an interest payment on a security received in this state
20 during such year. Such undertaking shall obligate the broker or dealer
21 to honor any such claim provided that the payment of abandoned property
22 relating to the year in question determined pursuant to subdivision six
23 of section five hundred eleven made by such broker or dealer to the
24 state comptroller has been exhausted as a result of reimbursements by
25 the state comptroller to the broker or dealer or to other persons claim-
26 ing such abandoned property as provided in subdivision two of section
27 five hundred fourteen. To the extent related to any stock dividend, any
28 such claim shall not exceed the fair market value of such stock dividend
29 on the thirty-first day of December of the year in which such stock
30 dividend was deemed abandoned property.
31 S 29. The opening paragraph of section 603 of the abandoned property
32 law is amended to read as follows:
33 Each such payment of abandoned property pursuant to section six
34 hundred two shall be accompanied by a [verified] written report, classi-
35 fied as the state comptroller shall prescribe, setting forth:
36 S 30. Subdivision 2 of section 1304 of the abandoned property law, as
37 added by chapter 698 of the laws of 1943, is amended to read as follows:
38 2. Any such abandoned property shall be paid or delivered forthwith to
39 the state comptroller. Such payment shall be accompanied by a [verified]
40 written report setting forth such identifying information as the state
41 comptroller may require.
42 S 31. Section 1305 of the abandoned property law, as amended by chap-
43 ter 149 of the laws of 1977, is amended to read as follows:
44 S 1305. Unclaimed surplus moneys after recovery of cost of public
45 assistance and care.
46 Any amount comprising a balance credited to an estate or person pursu-
47 ant to sections one hundred fifty-two-b or three hundred sixty of the
48 social services law which, on June thirtieth in any year, has for four
49 years from the date of such credit remained unclaimed by the estate or
50 person entitled thereto shall be deemed abandoned property.
51 On or before the tenth day of September in each year every public
52 welfare official shall pay such abandoned property to the state comp-
53 troller. Such payment shall be accompanied by a [verified] written
54 report in such form as the state comptroller may prescribe.
55 S 32. Subdivision 3 of section 1307 of the abandoned property law, as
56 added by chapter 700 of the laws of 1943, is amended to read as follows:
S. 2811--A 12 A. 4011--A
1 3. Any sheriff or county treasurer holding any such abandoned proper-
2 ty, shall pay the same to the state comptroller immediately after such
3 property shall have been deemed abandoned. Each such payment shall be
4 accompanied by a [verified] written report which shall set forth such
5 information as the state comptroller may require.
6 S 33. Subdivision 5 of section 1313 of the abandoned property law is
7 REPEALED.
8 S 34. Subdivision 2 of section 1314 of the abandoned property law, as
9 added by chapter 228 of the laws of 1977, is amended to read as follows:
10 2. Such transfer of moneys shall be accompanied by a [verified] writ-
11 ten report, in such form as the state comptroller may prescribe.
12 S 35. Section 1402 of the abandoned property law is REPEALED and a new
13 section 1402 is added to read as follows:
14 S 1402. PUBLICATION OF ABANDONED PROPERTY BY STATE COMPTROLLER. 1. (A)
15 THE COMPTROLLER SHALL MAINTAIN ON HIS OR HER WEBSITE IN A READILY
16 SEARCHABLE FORMAT OR IN ANY OTHER MEDIUM AT LEAST EQUALLY ACCESSIBLE TO
17 THE PUBLIC, A LIST OF SUCH ABANDONED PROPERTY AS HAS BEEN PAID OR DELIV-
18 ERED TO THE COMPTROLLER IN THE PREVIOUS TWELVE MONTHS THAT HAS A VALUE
19 EXCEEDING TWENTY DOLLARS.
20 (B) THE PROVISIONS OF THIS SUBDIVISION SHALL NOT APPLY TO ABANDONED
21 PROPERTY PAID PURSUANT TO SECTION ONE THOUSAND THREE HUNDRED OF THIS
22 CHAPTER OR SECTION FOUR HUNDRED TWENTY-FOUR OF THE VEHICLE AND TRAFFIC
23 LAW.
24 2. SUCH LIST SHALL BE IN SUCH FORM AND CLASSIFIED IN SUCH MANNER AS
25 THE STATE COMPTROLLER SHALL DETERMINE AND SHALL INCLUDE:
26 (A) THE NAMES AND LAST KNOWN ADDRESSES OF ALL PERSONS APPEARING FROM
27 THE RECORDS IN THE COMPTROLLER'S OFFICE, AS SET FORTH IN THE REPORT
28 FILED BY THE HOLDER, TO BE ENTITLED TO RECEIVE SUCH ABANDONED PROPERTY
29 EXCEEDING TWENTY DOLLARS IN VALUE; AND
30 (B) SUCH OTHER INFORMATION AS THE STATE COMPTROLLER MAY DETERMINE.
31 3. SUCH LISTING SHALL INCLUDE A STATEMENT THAT: (A) INFORMATION ABOUT
32 THE PROPERTY AND ITS RETURN TO THE OWNER MAY BE AVAILABLE TO A PERSON
33 HAVING A LEGAL OR BENEFICIAL INTEREST IN THE PROPERTY, UPON REQUEST TO
34 THE COMPTROLLER; AND
35 (B) A PUBLIC RECORD IS MAINTAINED IN THE OFFICE OF THE STATE COMP-
36 TROLLER OF ALL ABANDONED PROPERTY IN ACCORDANCE WITH SECTION FOURTEEN
37 HUNDRED ONE OF THIS ARTICLE; AND THAT A CLAIM FOR ANY SUCH ABANDONED
38 PROPERTY SHOULD BE FILED WITH THE STATE COMPTROLLER AT HIS OR HER OFFICE
39 IN THE CITY OF ALBANY.
40 4. NOTWITHSTANDING THE FOREGOING PROVISIONS OF THIS SECTION, THE STATE
41 COMPTROLLER MAY OMIT FROM SUCH LIST THE NAME AND LAST KNOWN ADDRESS OF
42 ANY PERSON WHERE SPECIAL CIRCUMSTANCES MAKE IT DESIRABLE THAT SUCH
43 INFORMATION BE WITHHELD.
44 S 36. Subdivision 12 of section 211 of the tax law is REPEALED and a
45 new subdivision 12 is added to read as follows:
46 12. (A) NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION EIGHT OF THIS
47 SECTION, THE COMMISSIONER AND THE COMPTROLLER SHALL ENTER INTO AN AGREE-
48 MENT PURSUANT TO WHICH THE COMMISSIONER SHALL, UPON REQUEST, PROVIDE THE
49 COMPTROLLER WITH A REPORT, NOT MORE FREQUENTLY THAN ANNUALLY, WITH
50 RESPECT TO CORPORATIONS OR OTHER ENTITIES WHICH HAVE FILED A BUSINESS
51 CORPORATION FRANCHISE TAX REPORT UNDER THIS ARTICLE FOR ANY TAXABLE YEAR
52 WITHIN TEN CALENDAR YEARS PRIOR TO THE REPORT TO THE COMPTROLLER MADE
53 PURSUANT TO THIS SUBDIVISION, PROVIDING THE FOLLOWING INFORMATION, TO
54 THE EXTENT THAT SUCH INFORMATION IS READILY AVAILABLE FROM THE DEPART-
55 MENT'S SYSTEM FOR IDENTIFYING TAXPAYER INDICATIVE DATA:
56 (1) BUSINESS NAME AND LEGAL NAME, IF DIFFERENT;
S. 2811--A 13 A. 4011--A
1 (2) BUSINESS ADDRESS AND MAILING ADDRESS;
2 (3) FEDERAL EMPLOYER IDENTIFICATION NUMBER;
3 (4) DATE ENTERED INTO BUSINESS.
4 (B) EACH REPORT TO THE COMPTROLLER MADE PURSUANT TO THIS SUBDIVISION
5 SHALL LIST EACH CORPORATION OR OTHER ENTITY WITH RESPECT TO WHICH SUCH
6 REPORT IS MADE ACCORDING TO THE TOTAL ASSETS REPORTED FOR THE END OF THE
7 YEAR ON ITS MOST RECENT AVAILABLE BUSINESS CORPORATION FRANCHISE TAX
8 REPORT, IN DESCENDING ORDER. SUCH REPORTS TO THE COMPTROLLER SHALL NOT
9 DISCLOSE THE ACTUAL AMOUNT OF TOTAL ASSETS REPORTED ON SUCH BUSINESS
10 CORPORATION FRANCHISE TAX REPORTS.
11 (C) THE INFORMATION PROVIDED TO THE COMPTROLLER PURSUANT TO THIS
12 SUBDIVISION SHALL BE USED ONLY FOR ADMINISTRATION AND ENFORCEMENT OF THE
13 ABANDONED PROPERTY LAW. THE COMPTROLLER MAY REDISCLOSE THE INFORMATION
14 PROVIDED UNDER THIS SUBDIVISION ONLY TO THE EXTENT NECESSARY FOR
15 ENFORCEMENT OR ADMINISTRATION OF THE ABANDONED PROPERTY LAW.
16 (D) THE REPORTS TO THE COMPTROLLER REQUIRED UNDER THIS SUBDIVISION
17 SHALL BE SUBMITTED BY ELECTRONIC MEANS OR IN SOME OTHER FORMAT WHICH IS
18 MUTUALLY ACCEPTABLE TO THE COMPTROLLER AND THE COMMISSIONER. THE WRITTEN
19 AGREEMENT WITH THE COMPTROLLER SHALL SET FORTH THE PROCEDURES FOR
20 PROVIDING THE INFORMATION THE COMMISSIONER IS ALLOWED TO DISCLOSE PURSU-
21 ANT TO THIS SUBDIVISION.
22 (E) NOTWITHSTANDING ARTICLE SIX OF THE PUBLIC OFFICERS LAW OR ANY
23 OTHER PROVISION OF LAW, THE REPORTS TO BE FURNISHED TO THE COMPTROLLER
24 PURSUANT TO THIS SUBDIVISION SHALL NOT BE OPEN TO THE PUBLIC FOR
25 INSPECTION.
26 S 37. Subdivision 2 of section 95 of the state finance law, as amended
27 by section 10-a of part RR of chapter 57 of the laws of 2008, is amended
28 to read as follows:
29 2. Annually, the comptroller shall file with the director of the budg-
30 et an itemized estimate of the expenses for the administration of the
31 abandoned property fund for the ensuing year. The director of the budget
32 may revise and amend such estimate. After such revision and amendment,
33 if any, such director shall approve the same for inclusion in the execu-
34 tive budget. No moneys shall be paid out of the abandoned property fund
35 for [such] expenses unless expenditures therefor shall have been author-
36 ized by law; provided, however, that the expenses [of any audits
37 conducted by the state comptroller to assure compliance by holders of
38 unclaimed property with the provisions of the abandoned property law]
39 FOR THE ADMINISTRATION OF THE PROVISIONS OF THE ABANDONED PROPERTY LAW
40 paid by the state comptroller pursuant to an appropriation, shall be
41 reimbursed by a transfer of funds no more frequently than monthly, from
42 any balance remaining in the abandoned property fund prior to any
43 payment made pursuant to the provisions of subdivision three of this
44 section.
45 S 38. This act shall take effect immediately.
46 PART B
47 Section 1. Section 12 of part N of chapter 61 of the laws of 2005,
48 amending the tax law relating to certain transactions and related infor-
49 mation and relating to the voluntary compliance initiative, subdivision
50 (iii) as amended by section 16 of subpart J of part V-1 of chapter 57 of
51 the laws of 2009, is amended to read as follows:
52 S 12. This act shall take effect immediately; provided, however, that
53 (i) section one of this act shall apply to all disclosure statements
54 described in paragraph 1 of subdivision (a) of section 25 of the tax
S. 2811--A 14 A. 4011--A
1 law, as added by section one of this act, that were required to be filed
2 with the internal revenue service at any time with respect to "listed
3 transactions" as described in such paragraph 1, and shall apply to all
4 disclosure statements described in paragraph 1 of subdivision (a) of
5 section 25 of the tax law, as added by section one of this act, that
6 were required to be filed with the internal revenue service with respect
7 to "reportable transactions" as described in such paragraph 1, other
8 than "listed transactions", in which a taxpayer participated during any
9 taxable year for which the statute of limitations for assessment has not
10 expired as of the date this act shall take effect, and shall apply to
11 returns or statements described in such paragraph 1 required to be filed
12 by taxpayers (or persons as described in such paragraph) with the
13 commissioner of taxation and finance on or after the sixtieth day after
14 this act shall have become a law; AND
15 (ii) sections two through four and seven through nine of this act
16 shall apply to any tax liability for which the statute of limitations on
17 assessment has not expired as of the date this act shall take effect[;
18 and
19 (iii) provided, further, that the provisions of this act, except
20 section five of this act, shall expire and be deemed repealed July 1,
21 2011. The commissioner of taxation and finance shall cause to be
22 prepared a written report on the tax shelter law. Notwithstanding any
23 other provision of law to the contrary, such report shall include, but
24 not be limited to, statistical information regarding the listed and
25 reportable transactions and avoidance transactions under this act. A
26 copy of such report shall be delivered to the governor, the temporary
27 president of the senate, and the speaker of the assembly no later than
28 April 1, 2007; provided, that, such expiration and repeal shall not
29 affect any requirement imposed pursuant to this act].
30 S 2. This act shall take effect immediately.
31 PART C
32 Section 1. Paragraphs (g) and (h) of subdivision 12-B of section 210
33 of the tax law, as added by section 8 of part R of chapter 57 of the
34 laws of 2010, are amended to read as follows:
35 (g) Notwithstanding the expiration of the empire zones program under
36 article eighteen-B of the general municipal law, a taxpayer that is
37 certified as a qualified investment project pursuant to such article
38 eighteen-B on the day immediately preceding the day the empire zones
39 program expired, AND HAS NOT SUBSEQUENTLY BEEN DECERTIFIED BY THE
40 COMMISSIONER OF ECONOMIC DEVELOPMENT PURSUANT TO SECTION NINE HUNDRED
41 FIFTY-NINE OF THE GENERAL MUNICIPAL LAW AND REGULATIONS PROMULGATED
42 THEREUNDER, shall continue to be deemed certified under such article
43 eighteen-B for purposes of this subdivision for the remainder of the
44 taxable year in which the expiration occurred and for the next succeed-
45 ing nine taxable years. In addition, the areas designated as empire
46 zones in which the taxpayer is certified as a qualified investment
47 project on the day immediately preceding the day the empire zones
48 program expired shall continue to be deemed empire zones for purposes of
49 this subdivision for the remainder of the taxable year in which the
50 expiration occurred and for the next succeeding nine taxable years.
51 (h) Notwithstanding the expiration of the empire zones program under
52 article eighteen-B of the general municipal law and except as provided
53 in paragraph (g) of this subdivision, a taxpayer that is certified as an
54 empire zone business pursuant to such article eighteen-B on the day
S. 2811--A 15 A. 4011--A
1 immediately preceding the day the empire zones program expired, AND HAS
2 NOT SUBSEQUENTLY BEEN DECERTIFIED BY THE COMMISSIONER OF ECONOMIC DEVEL-
3 OPMENT PURSUANT TO SECTION NINE HUNDRED FIFTY-NINE OF THE GENERAL MUNIC-
4 IPAL LAW AND REGULATIONS PROMULGATED THEREUNDER, shall continue to be
5 deemed certified under such article eighteen-B for purposes of this
6 subdivision until April first, two thousand fourteen. In addition, the
7 areas designated as empire zones in which the taxpayer is certified as
8 an empire zone business on the day immediately preceding the day the
9 empire zones program expired shall continue to be deemed empire zones
10 for purposes of this subdivision until April first, two thousand four-
11 teen.
12 S 2. Paragraph 7 of subsection (j) of section 606 of the tax law, as
13 added by section 9 of part R of chapter 57 of the laws of 2010, is
14 amended to read as follows:
15 (7) Notwithstanding the expiration of the empire zones program under
16 article eighteen-B of the general municipal law, a taxpayer that is
17 certified as an empire zone business pursuant to such article eighteen-B
18 on the day immediately preceding the day the empire zones program
19 expired, AND HAS NOT SUBSEQUENTLY BEEN DECERTIFIED BY THE COMMISSIONER
20 OF ECONOMIC DEVELOPMENT PURSUANT TO SECTION NINE HUNDRED FIFTY-NINE OF
21 THE GENERAL MUNICIPAL LAW AND REGULATIONS PROMULGATED THEREUNDER, shall
22 continue to be deemed certified under such article eighteen-B for
23 purposes of this subdivision until April first, two thousand fourteen.
24 In addition, the areas designated as empire zones in which the taxpayer
25 is certified as an empire zone business on the day immediately preceding
26 the day the empire zones program expired shall continue to be deemed
27 empire zones for purposes of this subdivision until April first, two
28 thousand fourteen.
29 S 3. Paragraphs (d) and (e) of subdivision 12-C of section 210 of the
30 tax law, as added by section 10 of part R of chapter 57 of the laws of
31 2010, are amended to read as follows:
32 (d) Notwithstanding the expiration of the empire zones program under
33 article eighteen-B of the general municipal law, a taxpayer that is
34 certified as a qualified investment project pursuant to such article
35 eighteen-B on the day immediately preceding the day the empire zones
36 program expired, AND HAS NOT SUBSEQUENTLY BEEN DECERTIFIED BY THE
37 COMMISSIONER OF ECONOMIC DEVELOPMENT PURSUANT TO SECTION NINE HUNDRED
38 FIFTY-NINE OF THE GENERAL MUNICIPAL LAW AND REGULATIONS PROMULGATED
39 THEREUNDER, shall continue to be deemed certified under such article
40 eighteen-B for purposes of this subdivision for the remainder of the
41 taxable year in which the expiration occurred and for the next succeed-
42 ing nine taxable years. In addition, the areas designated as empire
43 zones in which the taxpayer is certified as a qualified investment
44 project on the day immediately preceding the day the empire zones
45 program expired shall continue to be deemed empire zones for purposes of
46 this subdivision for the remainder of the taxable year in which the
47 expiration occurred and for the next succeeding nine taxable years.
48 (e) Notwithstanding the expiration of the empire zones program under
49 article eighteen-B of the general municipal law and except as provided
50 in paragraph (d) of this subdivision, a taxpayer that is certified as an
51 empire zone business pursuant to such article eighteen-B on the day
52 immediately preceding the day the empire zones program expired, AND HAS
53 NOT SUBSEQUENTLY BEEN DECERTIFIED BY THE COMMISSIONER OF ECONOMIC DEVEL-
54 OPMENT PURSUANT TO SECTION NINE HUNDRED FIFTY-NINE OF THE GENERAL MUNIC-
55 IPAL LAW AND REGULATIONS PROMULGATED THEREUNDER, shall continue to be
56 deemed in the empire zone in which the taxpayer was certified as an
S. 2811--A 16 A. 4011--A
1 empire zone business on the day immediately preceding the day the empire
2 zones program expired for each of the three years next succeeding the
3 taxable year for which the credit under subdivision twelve-B OF THIS
4 SECTION is allowed.
5 S 4. Paragraph 4 of subsection (j-1) of section 606 of the tax law, as
6 added by section 11 of part R of chapter 57 of the laws of 2010, is
7 amended to read as follows:
8 (4) Notwithstanding the expiration of the empire zones program under
9 article eighteen-B of the general municipal law, a taxpayer that is
10 certified as an empire zone business pursuant to such article eighteen-B
11 on the day immediately preceding the day the empire zones program
12 expired, AND HAS NOT SUBSEQUENTLY BEEN DECERTIFIED BY THE COMMISSIONER
13 OF ECONOMIC DEVELOPMENT PURSUANT TO SECTION NINE HUNDRED FIFTY-NINE OF
14 THE GENERAL MUNICIPAL LAW AND REGULATIONS PROMULGATED THEREUNDER, shall
15 continue to be deemed in the empire zone in which the taxpayer was
16 certified as an empire zone business on the day immediately preceding
17 the day the empire zones program expired for each of the three years
18 next succeeding the taxable year for which the credit under [subdivi-
19 sion] SUBSECTION (j) OF THIS SECTION is allowed.
20 S 5. Subdivision (k) of section 14 of the tax law, as amended by
21 section 5 of part A of chapter 63 of the laws of 2005, is amended to
22 read as follows:
23 (k) If the designation of an area as an empire zone is no longer in
24 effect because section nine hundred sixty-nine of the general municipal
25 law was not amended to extend the effective date of such designation so
26 that the designations of all empire zones pursuant to article eighteen-B
27 of the general municipal law have expired, a business enterprise that
28 was certified pursuant to article eighteen-B of the general municipal
29 law on the day immediately preceding the day on which such designation
30 expired, AND HAS NOT SUBSEQUENTLY BEEN DECERTIFIED BY THE COMMISSIONER
31 OF ECONOMIC DEVELOPMENT PURSUANT TO SECTION NINE HUNDRED FIFTY-NINE OF
32 THE GENERAL MUNICIPAL LAW AND REGULATIONS PROMULGATED THEREUNDER, shall
33 be deemed to continue to be certified under such article eighteen-B for
34 purposes of this section, and sections fifteen, sixteen, section one
35 hundred eighty-seven-j, subdivisions twenty-seven and twenty-eight of
36 section two hundred ten, subsections (bb) and (cc) of section six
37 hundred six, [subdivision (z) of section eleven hundred fifteen,] SUBDI-
38 VISION (D) OF SECTION ELEVEN HUNDRED NINETEEN, subsections (o) and (p)
39 of section fourteen hundred fifty-six, and subdivisions (r) and (s) of
40 section fifteen hundred eleven of this chapter. In addition, if the
41 designation of an area as an empire zone is no longer in effect because
42 section nine hundred sixty-nine of the general municipal law was not
43 amended to extend the effective date of such designation so that the
44 designations of all empire zones pursuant to article eighteen-B of the
45 general municipal law have expired, all references to empire zones in
46 the provisions of this chapter listed in the previous sentence shall be
47 read as meaning areas designated as empire zones on the day immediately
48 preceding the day on which such designation expired.
49 S 6. Paragraph (f) of subdivision 20 of section 210 of the tax law, as
50 added by section 14 of part R of chapter 57 of the laws of 2010, is
51 amended to read as follows:
52 (f) If the designation of an area as an empire zone is no longer in
53 effect because the designations of all empire zones pursuant to article
54 eighteen-B of the general municipal law have expired, a taxpayer that
55 has made a contribution of money on or before the day immediately
56 preceding the day the empire zones expired to a community development
S. 2811--A 17 A. 4011--A
1 project approved by the commissioner of economic development shall be
2 deemed eligible to claim the empire zone capital credit under subpara-
3 graph three of paragraph (a) of this subdivision for additional contrib-
4 utions made prior to April first, two thousand fourteen and certified by
5 the commissioner of economic development to that community development
6 project as payment of a commitment made by the taxpayer to that communi-
7 ty development project before the empire zones expired, PROVIDED THAT
8 THE TAXPAYER HAS NOT SUBSEQUENTLY BEEN DECERTIFIED BY THE COMMISSIONER
9 OF ECONOMIC DEVELOPMENT PURSUANT TO SECTION NINE HUNDRED FIFTY-NINE OF
10 THE GENERAL MUNICIPAL LAW AND REGULATIONS PROMULGATED THEREUNDER.
11 S 7. Paragraph 5 of subsection (l) of section 606 of the tax law, as
12 added by section 15 of part R of chapter 57 of the laws of 2010, is
13 amended to read as follows:
14 (5) If the designation of an area as an empire zone is no longer in
15 effect because the designations of all empire zones pursuant to article
16 eighteen-B of the general municipal law have expired, a taxpayer that
17 has made a contribution of money on or before the day immediately
18 preceding the day the empire zones expired to a community development
19 project approved by the commissioner of economic development shall be
20 deemed eligible to claim the empire zone capital credit under subpara-
21 graph (C) of paragraph one of this subsection for additional contrib-
22 utions made prior to April first, two thousand fourteen and certified by
23 the commissioner of economic development to that community development
24 project as payment of a commitment made by the taxpayer to that communi-
25 ty development project before the empire zones expired, PROVIDED THAT
26 THE TAXPAYER HAS NOT SUBSEQUENTLY BEEN DECERTIFIED BY THE COMMISSIONER
27 OF ECONOMIC DEVELOPMENT PURSUANT TO SECTION NINE HUNDRED FIFTY-NINE OF
28 THE GENERAL MUNICIPAL LAW AND REGULATIONS PROMULGATED THEREUNDER.
29 S 8. Paragraph 5 of subsection (d) of section 1456 of the tax law, as
30 added by section 16 of part R of chapter 57 of the laws of 2010, is
31 amended to read as follows:
32 (5) If the designation of an area as an empire zone is no longer in
33 effect because the designations of all empire zones pursuant to article
34 eighteen-B of the general municipal law have expired, a taxpayer that
35 has made a contribution of money on or before the day immediately
36 preceding the day the empire zones expired to a community development
37 project approved by the commissioner of economic development shall be
38 deemed eligible to claim the empire zone capital credit under subpara-
39 graph (C) of paragraph one of this subsection for additional contrib-
40 utions made prior to April first, two thousand fourteen and certified by
41 the commissioner of economic development to that community development
42 project as payment of a commitment made by the taxpayer to that communi-
43 ty development project before the empire zones expired, PROVIDED THAT
44 THE TAXPAYER HAS NOT SUBSEQUENTLY BEEN DECERTIFIED BY THE COMMISSIONER
45 OF ECONOMIC DEVELOPMENT PURSUANT TO SECTION NINE HUNDRED FIFTY-NINE OF
46 THE GENERAL MUNICIPAL LAW AND REGULATIONS PROMULGATED THEREUNDER.
47 S 9. Paragraph 5 of subdivision (h) of section 1511 of the tax law, as
48 added by section 17 of part R of chapter 57 of the laws of 2010, is
49 amended to read as follows:
50 (5) If the designation of an area as an empire zone is no longer in
51 effect because the designations of all empire zones pursuant to article
52 eighteen-B of the general municipal law have expired, a taxpayer that
53 has made a contribution of money on or before the day immediately
54 preceding the day the empire zones expired to a community development
55 project approved by the commissioner of economic development shall be
56 deemed eligible to claim the empire zone capital credit under subpara-
S. 2811--A 18 A. 4011--A
1 graph (C) of paragraph one of this subdivision for additional contrib-
2 utions made prior to April first, two thousand fourteen and certified by
3 the commissioner of economic development to that community development
4 project as payment of a commitment made by the taxpayer to that communi-
5 ty development project before the empire zones expired, PROVIDED THAT
6 THE TAXPAYER HAS NOT SUBSEQUENTLY BEEN DECERTIFIED BY THE COMMISSIONER
7 OF ECONOMIC DEVELOPMENT PURSUANT TO SECTION NINE HUNDRED FIFTY-NINE OF
8 THE GENERAL MUNICIPAL LAW AND REGULATIONS PROMULGATED THEREUNDER.
9 S 10. This act shall take effect immediately and shall be deemed to be
10 in full force and effect on and after August 11, 2010.
11 PART D
12 Section 1. The tax law is amended by adding a new section 1613-c to
13 read as follows:
14 S 1613-C. CREDITING OF LOTTERY PRIZES AGAINST LIABILITIES FOR TAXES
15 ADMINISTERED BY THE COMMISSIONER. (1) THE DIRECTOR, ON BEHALF OF THE
16 DIVISION, SHALL ENTER INTO A WRITTEN AGREEMENT WITH THE COMMISSIONER, ON
17 BEHALF OF THE DEPARTMENT, WITHIN SIXTY DAYS OF THE EFFECTIVE DATE OF
18 THIS SECTION, WHICH WILL SET FORTH PROCEDURES FOR CREDITING LOTTERY
19 PRIZES OF MORE THAN SIX HUNDRED DOLLARS AWARDED TO HOLDERS OF WINNING
20 LOTTERY TICKETS, WHETHER INDIVIDUALS, CORPORATIONS, ASSOCIATIONS, COMPA-
21 NIES, PARTNERSHIPS, LIMITED LIABILITY PARTNERSHIPS OR COMPANIES, PART-
22 NERS, MEMBERS, MANAGERS, ESTATES, TRUST FIDUCIARIES OR ENTITIES, AGAINST
23 PAST DUE TAX LIABILITIES OWED BY SUCH HOLDERS FOR ANY TAX ADMINISTERED
24 BY THE COMMISSIONER, ABOUT WHICH THE DIRECTOR HAS BEEN NOTIFIED BY THE
25 COMMISSIONER PURSUANT TO THE PROVISIONS OF SUCH AGREEMENT.
26 (2) SUCH AGREEMENT SHALL APPLY TO ANY PAST DUE TAX LIABILITY WHICH
27 ARISES FROM (I) AN ENFORCEABLE WARRANT OR JUDGMENT, (II) AN ENFORCEABLE
28 DETERMINATION OF AN ADMINISTRATIVE BODY WHICH IS NO LONGER SUBJECT TO
29 ADMINISTRATIVE OR JUDICIAL REVIEW, OR (III) AN ASSESSMENT OR DETERMI-
30 NATION (INCLUDING SELF-ASSESSMENT OR SELF-ASSESSED DETERMINATION) WHICH
31 HAS BECOME FINAL OR FINALLY AND IRREVOCABLY FIXED AND NO LONGER SUBJECT
32 TO ADMINISTRATIVE OR JUDICIAL REVIEW.
33 (3) SUCH AGREEMENT SHALL INCLUDE:
34 (A) THE PROCEDURE UNDER WHICH THE DEPARTMENT WILL NOTIFY THE DIVISION
35 OF TAX LIABILITIES, INCLUDING WHEN THE DIVISION WILL BE NOTIFIED AND THE
36 CONTENT OF THAT NOTIFICATION;
37 (B) THE PROCEDURE FOR REIMBURSEMENT OF THE DIVISION BY THE DEPARTMENT
38 FOR THE COST OF CARRYING OUT THE PROCEDURES AUTHORIZED BY THIS SECTION;
39 AND
40 (C) ANY OTHER MATTERS THE PARTIES TO THE AGREEMENT DEEM NECESSARY TO
41 CARRY OUT THE PROVISIONS OF THIS SECTION.
42 (4) PRIOR TO AWARDING LOTTERY PRIZES OF MORE THAN SIX HUNDRED DOLLARS,
43 THE DIVISION SHALL REVIEW THE MOST RECENT NOTICE OF TAX LIABILITIES
44 PROVIDED BY THE COMMISSIONER. FOR HOLDERS OF WINNING LOTTERY TICKETS
45 IDENTIFIED ON THAT NOTICE, THE DIVISION SHALL CREDIT TO THE DEPARTMENT
46 THE AMOUNT OF EACH HOLDER'S PRIZE NECESSARY TO SATISFY THAT HOLDER'S TAX
47 LIABILITY, AND THE REMAINDER OF THE PRIZE SHALL BE AWARDED TO THE HOLDER
48 OF THE WINNING TICKET.
49 (5) IF THE DIVISION HAS ALSO RECEIVED A NOTICE OF LIABILITY OF A PRIZE
50 WINNER FOR PAST-DUE SUPPORT OR PUBLIC ASSISTANCE BENEFITS PURSUANT TO
51 SECTION SIXTEEN HUNDRED THIRTEEN-A OR SIXTEEN HUNDRED THIRTEEN-B OF THIS
52 ARTICLE, THEN THE AMOUNT OF ANY PRIZE SHALL BE FIRST CREDITED OR APPLIED
53 TO THE INCOME TAX REQUIRED TO BE WITHHELD BY LAW, THEN AS REQUIRED BY
54 SECTION SIXTEEN HUNDRED THIRTEEN-A OR SIXTEEN HUNDRED THIRTEEN-B OF THIS
S. 2811--A 19 A. 4011--A
1 ARTICLE, THEN TO THE PAST DUE TAX LIABILITY AS REQUIRED BY THIS SECTION.
2 THE BALANCE WILL THEN BE PAID TO THE HOLDER OF THE WINNING LOTTERY TICK-
3 ET.
4 (6) THE DIVISION SHALL CERTIFY TO THE COMPTROLLER THE TOTAL AMOUNT OF
5 THE LOTTERY PRIZE TO BE CREDITED AGAINST PAST DUE TAX LIABILITIES AND
6 THE REMAINDER OF THE PRIZE TO BE AWARDED TO THE HOLDER OF THE WINNING
7 LOTTERY TICKET.
8 (7) THE DIVISION SHALL NOTIFY THE HOLDER OF THE WINNING LOTTERY TICK-
9 ET, IN WRITING, OF THE TOTAL AMOUNT OF THE LOTTERY PRIZE CREDITED
10 AGAINST PAST DUE TAX LIABILITIES AND THE REMAINDER OF THE PRIZE TO BE
11 AWARDED TO THE HOLDER. THAT NOTICE MUST ALSO ADVISE THE HOLDER THAT THE
12 DEPARTMENT WILL PROVIDE SEPARATE NOTICE, IN WRITING, OF THE PROCEDURE
13 FOR AND TIME FRAME BY WHICH THE HOLDER MAY CONTEST SUCH CREDITING.
14 (8) THE DEPARTMENT SHALL NOTIFY THE HOLDER OF THE WINNING LOTTERY
15 TICKET, IN WRITING, OF THE AMOUNT OF A PRIZE TO BE CREDITED AGAINST PAST
16 DUE TAX LIABILITIES AND THE PROCEDURE FOR AND TIME FRAME BY WHICH THE
17 HOLDER MAY CONTEST THE CREDITING OF THE PRIZE.
18 (9) FROM THE TIME THE DIVISION IS NOTIFIED BY THE DEPARTMENT OF A PAST
19 DUE TAX LIABILITY OF A HOLDER OF A WINNING LOTTERY TICKET, THE DIVISION
20 SHALL BE RELIEVED FROM ALL LIABILITY TO THE HOLDER, AND THE HOLDER'S
21 HEIRS, REPRESENTATIVES, ESTATE, SUCCESSORS OR ASSIGNS FOR THE AMOUNT OF
22 A PRIZE CERTIFIED TO THE COMPTROLLER TO BE CREDITED AGAINST PAST DUE TAX
23 LIABILITIES AND THE HOLDER AND THE HOLDER'S HEIRS, REPRESENTATIVES,
24 ESTATE, SUCCESSOR OR ASSIGNS SHALL HAVE NO RIGHT TO COMMENCE A COURT
25 ACTION OR PROCEEDING OR TO ANY OTHER LEGAL RECOURSE AGAINST THE DIVISION
26 TO RECOVER ANY AMOUNT CERTIFIED TO THE COMPTROLLER TO BE CREDITED
27 AGAINST PAST DUE TAX LIABILITIES. PROVIDED HOWEVER, NOTHING HEREIN SHALL
28 BE CONSTRUED TO PROHIBIT A HOLDER OF A WINNING LOTTERY TICKET AND THE
29 HOLDER'S HEIRS, REPRESENTATIVES, ESTATE, SUCCESSORS OR ASSIGNS FROM
30 PROCEEDING AGAINST THE DEPARTMENT TO RECOVER THE PART OF THE PRIZE
31 CERTIFIED TO THE COMPTROLLER AND CREDITED TO PAST DUE TAX LIABILITIES
32 WHICH IS GREATER THAN THE AMOUNT OF PAST DUE TAX LIABILITIES OWED BY
33 THAT HOLDER ON THE DATE OF CERTIFICATION.
34 (10) NOTWITHSTANDING ANY LAW TO THE CONTRARY, THE DEPARTMENT AND ITS
35 OFFICERS AND EMPLOYEES MAY FURNISH TO THE DIVISION ANY ABSTRACT OF ANY
36 TAX RETURN OR REPORT, OR ANY INFORMATION CONCERNING AN ITEM CONTAINED IN
37 ANY SUCH RETURN OR REPORT OR DISCLOSED BY ANY INVESTIGATION OF TAX
38 LIABILITY UNDER THIS CHAPTER, BUT ONLY FOR THE PURPOSE OF CREDITING
39 LOTTERY PRIZES AGAINST PAST DUE TAX LIABILITIES DESCRIBED IN SUBDIVISION
40 TWO OF THIS SECTION.
41 S 2. This act shall take effect on the first of August next succeeding
42 the date on which it shall have become a law, provided that the depart-
43 ment of taxation and finance and the division of the lottery may take
44 steps to effectuate the written agreement between the director of the
45 division of the lottery and the commissioner of taxation and finance
46 prior to such effective date.
47 PART E
48 Section 1. Paragraph c of subdivision 2 of section 124 of part A of
49 chapter 56 of the laws of 1998, amending the tax law and other laws
50 relating to extending the dates of application of the investment tax
51 credit under articles 9-A, 22 and 32 of the tax law, as amended by
52 section 1 of part YY-1 of chapter 57 of the laws of 2008, is amended to
53 read as follows:
S. 2811--A 20 A. 4011--A
1 c. Sections fifteen through twenty-seven of this act shall apply to
2 property placed in service on or after October 1, 1998 and before Octo-
3 ber 1, [2011] 2015.
4 S 2. Section 2 of part L of chapter 63 of the laws of 2000, amending
5 the tax law and other laws relating to extending the dates of applica-
6 tion of the investment tax credit under article 33 of the tax law, as
7 amended by section 2 of part YY-1 of chapter 57 of the laws of 2008, is
8 amended to read as follows:
9 S 2. This act shall take effect immediately and shall apply to proper-
10 ty placed in service on or after January 1, 2002 and before October 1,
11 [2011] 2015.
12 S 3. This act shall take effect immediately.
13 PART F
14 Section 1. Subdivision 4 of section 22 of the public housing law, as
15 amended by section 1 of part P of chapter 57 of the laws of 2010, is
16 amended to read as follows:
17 4. Statewide limitation. The aggregate dollar amount of credit which
18 the commissioner may allocate to eligible low-income buildings under
19 this article shall be [twenty-eight] THIRTY-TWO million dollars. The
20 limitation provided by this subdivision applies only to allocation of
21 the aggregate dollar amount of credit by the commissioner, and does not
22 apply to allowance to a taxpayer of the credit with respect to an eligi-
23 ble low-income building for each year of the credit period.
24 S 2. This act shall take effect immediately.
25 PART G
26 Section 1. Subdivision 12 of section 352 of the economic development
27 law, as added by section 1 of part MM of chapter 59 of the laws of 2010,
28 is amended to read as follows:
29 12. "Preliminary schedule of benefits" means the maximum aggregate
30 amount of each component of the tax credit that a participant in the
31 excelsior jobs program is eligible to receive pursuant to this article.
32 The schedule shall indicate the annual amount of each component of the
33 credit a participant may claim in each of its [five] TEN years of eligi-
34 bility. The preliminary schedule of benefits shall be issued by the
35 department when the department approves the application for admission
36 into the program. The commissioner may amend that schedule, provided
37 that the commissioner complies with the credit caps in section three
38 hundred fifty-nine of this article.
39 S 2. Section 353 of the economic development law, as added by section
40 1 of part MM of chapter 59 of the laws of 2010, is amended to read as
41 follows:
42 S 353. Eligibility criteria. 1. To be a participant in the excelsior
43 jobs program, a business entity shall operate in New York state predomi-
44 nantly:
45 (a) as a financial services data center or a financial services back
46 office operation;
47 (b) in manufacturing;
48 (c) in software development and new media;
49 (d) in scientific research and development;
50 (e) in agriculture;
51 (f) in the creation or expansion of back office operations in the
52 state;
S. 2811--A 21 A. 4011--A
1 (g) in a distribution center; or
2 (h) in an industry with significant potential for private-sector
3 economic growth and development in this state as established by the
4 commissioner in regulations promulgated pursuant to this article. In
5 promulgating such regulations the commissioner shall include job and
6 investment criteria.
7 2. WHEN DETERMINING WHETHER AN APPLICANT IS OPERATING PREDOMINATELY IN
8 ONE OF THE INDUSTRIES LISTED IN SUBDIVISION ONE OF THIS SECTION, THE
9 COMMISSIONER WILL EXAMINE THE NATURE OF THE BUSINESS ACTIVITY AT THE
10 LOCATION FOR THE PROPOSED PROJECT AND WILL MAKE ELIGIBILITY DETERMI-
11 NATIONS BASED ON SUCH ACTIVITY.
12 3. For the purposes of this article, in order to participate in the
13 excelsior jobs program, a business entity operating predominantly in
14 manufacturing must create at least twenty-five net new jobs; a business
15 entity operating predominately in agriculture must create at least ten
16 net new jobs; a business entity operating predominantly as a financial
17 service data center or financial services customer back office operation
18 must create at least one hundred net new jobs; a business entity operat-
19 ing predominantly in scientific research and development must create at
20 least ten net new jobs; a business entity operating predominantly in
21 software development must create at least ten net new jobs; a business
22 entity creating or expanding back office operations or a distribution
23 center in the state must create at least one hundred fifty net new jobs,
24 notwithstanding subdivision [four] FIVE of this section; or a business
25 entity must be a regionally significant project as defined in this arti-
26 cle; or
27 [3.] 4. A business entity operating predominantly in one of the indus-
28 tries referenced in paragraphs (a) through (h) of subdivision one of
29 this section but which does not meet the job requirements of subdivision
30 [two] THREE of this section must have at least fifty full-time job
31 equivalents and must demonstrate that its benefit-cost ratio is at least
32 ten to one.
33 [4.] 5. A not-for-profit business entity, a business entity whose
34 primary function is the provision of services including personal
35 services, business services, or the provision of utilities, and a busi-
36 ness entity engaged predominantly in the retail or entertainment indus-
37 try, and a company engaged in the generation or distribution of elec-
38 tricity, the distribution of natural gas, or the production of steam
39 associated with the generation of electricity are not eligible to
40 receive the tax credit described in this article.
41 [5.] 6. A business entity must be in compliance with all worker
42 protection and environmental laws and regulations. In addition, a busi-
43 ness entity may not owe past due state taxes or local property taxes.
44 S 3. Section 354 of the economic development law, as added by section
45 1 of part MM of chapter 59 of the laws of 2010, is amended to read as
46 follows:
47 S 354. Application and approval process. 1. A business enterprise must
48 submit a completed application as prescribed by the commissioner. An
49 application may be recommended by entities, including but not limited
50 to, those created pursuant to subdivision (e) of section nine hundred
51 fifty-seven of the general municipal law.
52 2. As part of such application, each business enterprise must:
53 (a) Agree to allow the department of taxation and finance to share its
54 tax information with the department. However, any information shared as
55 a result of this agreement shall not be available for disclosure or
56 inspection under the state freedom of information law.
S. 2811--A 22 A. 4011--A
1 (b) Agree to allow the department of labor to share its tax and
2 employer information with the department. However, any information
3 shared as a result of this agreement shall not be available for disclo-
4 sure or inspection under the state freedom of information law.
5 (c) Allow the department and its agents access to any and all books
6 and records the department may require to monitor compliance.
7 (d) Agree to be permanently [decertified from the empire zones program
8 if admitted into the excelsior jobs program, effective for the first
9 taxable year that the business enterprise may claim the excelsior jobs
10 program credit and for all subsequent taxable years] DISQUALIFIED FOR
11 EMPIRE ZONE BENEFITS AT ANY LOCATION OR LOCATIONS THAT QUALIFY FOR
12 EXCELSIOR JOBS PROGRAM BENEFITS IF ADMITTED INTO THE EXCELSIOR JOBS
13 PROGRAM.
14 (e) Provide the following information to the department upon request:
15 (i) a plan outlining the schedule for meeting the job and investment
16 requirements as set forth in subdivisions [two] THREE and [three] FOUR
17 of section three hundred fifty-three of this article. Such plan must
18 include details on job titles and expected salaries;
19 (ii) the prior three years of federal and state income or franchise
20 tax returns, unemployment insurance quarterly returns, real property tax
21 bills and audited financial statements;
22 (iii) the amount and description of projected qualified investments
23 for which it plans to claim the excelsior investment tax credit;
24 (iv) an estimate of the portion of any federal research and develop-
25 ment tax credits, attributable to research and development activities
26 conducted in New York state, that it anticipates claiming for the years
27 it expects to claim the excelsior research and development credit; and
28 (v) the employer identification or social security numbers for all
29 related persons to the applicant, including those of any members of a
30 limited liability company or partners in a partnership.
31 (f) Provide a clear and detailed presentation of all related persons
32 to the applicant to assure the department that jobs are not being shift-
33 ed within the state.
34 (g) Certify, under penalty of perjury, that it is in substantial
35 compliance with all environmental, worker protection, and local, state,
36 and federal tax laws.
37 3. After reviewing a business enterprise's completed application and
38 determining that the business enterprise will meet the conditions set
39 forth in subdivisions [two] THREE and [three] FOUR of section three
40 hundred fifty-three of this article, the department may admit the appli-
41 cant into the program and provide the applicant with a certificate of
42 eligibility and a preliminary schedule of benefits by year based on the
43 applicant's projections as set forth in its application. This prelimi-
44 nary schedule of benefits delineates the maximum possible benefits an
45 applicant may receive.
46 4. In order to become a participant in the program, an applicant must
47 submit evidence [of achieving job and investment requirements] THAT IT
48 SATISFIES THE ELIGIBILITY CRITERIA SPECIFIED IN SECTION THREE HUNDRED
49 FIFTY-THREE OF THIS ARTICLE AND SUBDIVISION TWO OF THIS SECTION in such
50 form as the commissioner may prescribe. After reviewing such evidence
51 and finding it sufficient, the department shall certify the applicant as
52 a participant and issue to that participant a certificate of tax credit
53 for one taxable year. To receive a certificate of tax credit for subse-
54 quent taxable years, the participant must submit to the department a
55 performance report DEMONSTRATING THAT THE PARTICIPANT CONTINUES TO
56 SATISFY THE ELIGIBILITY CRITERIA SPECIFIED IN SECTION THREE HUNDRED
S. 2811--A 23 A. 4011--A
1 FIFTY-THREE OF THIS ARTICLE AND SUBDIVISION TWO OF THIS SECTION. IF SUCH
2 ELIGIBILITY CRITERIA IS MET, A PARTICIPANT CAN RECEIVE TAX CREDITS BASED
3 ON INTERIM JOB, INVESTMENT OR RESEARCH AND DEVELOPMENT MILESTONES. A
4 participant's increase in employment, qualified investment, or federal
5 research and development tax credit attributable to research and devel-
6 opment activities in New York state above its projections listed in its
7 application shall not result in an increase in tax benefits under this
8 article. However, if the participant's expenditures are less than the
9 estimated amounts, the credit shall be less than the estimate.
10 5. A participant may claim tax benefits commencing in the first taxa-
11 ble year that the business enterprise receives a certificate of tax
12 credit or the first taxable year listed on its preliminary schedule of
13 benefits, whichever is later. A participant may claim such benefits for
14 the next [four] NINE consecutive taxable years, provided that the
15 participant demonstrates to the department that it continues to satisfy
16 the eligibility criteria specified in section three hundred fifty-three
17 of this article and subdivision two of this section in each of those
18 taxable years.
19 S 4. Section 355 of the economic development law, as added by section
20 1 of part MM of chapter 59 of the laws of 2010, is amended to read as
21 follows:
22 S 355. Excelsior jobs program credit. 1. Excelsior jobs tax credit
23 component. A participant in the excelsior jobs program shall be eligible
24 to claim a credit for each net new job it creates in New York state. The
25 amount of such credit per job shall be equal to the [sum of the follow-
26 ing: five percent of the amount of remuneration equal to or less than
27 fifty thousand dollars; four percent of the amount of remuneration in
28 excess of fifty thousand dollars and equal to or less than seventy-five
29 thousand dollars; and 1.33 percent of the amount of remuneration in
30 excess of seventy-five thousand dollars. However, the amount of the
31 credit for each net new job shall not exceed five thousand dollars]
32 PRODUCT OF THE GROSS WAGES PAID AND 6.85 PERCENT.
33 2. Excelsior investment tax credit component. A participant in the
34 excelsior jobs program shall be eligible to claim a credit on qualified
35 investments. The credit shall be equal to two percent of the cost or
36 other basis for federal income tax purposes of the qualified investment.
37 A participant may not claim both the excelsior investment tax credit
38 component and the investment tax credit set forth in subdivision twelve
39 of section two hundred ten, subsection (a) of section six hundred six,
40 [or] subsection (i) of section fourteen hundred fifty-six, OR SUBDIVI-
41 SION (Q) OF SECTION FIFTEEN HUNDRED ELEVEN of the tax law for the same
42 property in any taxable year, EXCEPT THAT A PARTICIPANT MAY CLAIM BOTH
43 THE EXCELSIOR INVESTMENT TAX CREDIT COMPONENT AND THE INVESTMENT TAX
44 CREDIT FOR RESEARCH AND DEVELOPMENT PROPERTY. In addition, a taxpayer
45 who or which is qualified to claim the excelsior investment tax credit
46 component and is also qualified to claim the brownfield tangible proper-
47 ty credit component under section twenty-one of the tax law may claim
48 either the excelsior investment tax credit component or such tangible
49 property credit component, but not both with regard to a particular
50 piece of property. A credit may not be claimed until a business enter-
51 prise has received a certificate of tax credit, provided that qualified
52 investments made on or after the issuance of the certificate of eligi-
53 bility but before the issuance of the certificate of tax credit to the
54 business enterprise, may be claimed in the first taxable year for which
55 the business enterprise is allowed to claim the credit. Expenses
S. 2811--A 24 A. 4011--A
1 incurred prior to the date the certificate of eligibility is issued are
2 not eligible to be included in the calculation of the credit.
3 3. Excelsior research and development tax credit component. A partic-
4 ipant in the excelsior jobs program shall be eligible to claim a credit
5 equal to [ten] FIFTY percent of the portion of the participant's federal
6 research and development tax credit that relates to the participant's
7 research and development expenditures in New York state during the taxa-
8 ble year; PROVIDED HOWEVER, THE EXCELSIOR RESEARCH AND DEVELOPMENT TAX
9 CREDIT SHALL NOT EXCEED THREE PERCENT OF THE QUALIFIED RESEARCH AND
10 DEVELOPMENT EXPENDITURES ATTRIBUTABLE TO ACTIVITIES CONDUCTED IN NEW
11 YORK STATE. If the federal research and development credit has expired,
12 then the research and development expenditures relating to the federal
13 research and development credit shall be calculated as if the federal
14 research and development credit structure and definition in effect in
15 two thousand nine were still in effect. NOTWITHSTANDING ANY OTHER
16 PROVISION OF THIS CHAPTER TO THE CONTRARY, RESEARCH AND DEVELOPMENT
17 EXPENDITURES IN THIS STATE, INCLUDING SALARY OR WAGE EXPENSES FOR JOBS
18 RELATED TO RESEARCH AND DEVELOPMENT ACTIVITIES IN THIS STATE, MAY BE
19 USED AS THE BASIS FOR THE EXCELSIOR RESEARCH AND DEVELOPMENT TAX CREDIT
20 COMPONENT AND THE QUALIFIED EMERGING TECHNOLOGY COMPANY FACILITIES,
21 OPERATIONS AND TRAINING CREDIT UNDER THE TAX LAW.
22 4. Excelsior real property tax credit COMPONENT. (A) A participant in
23 the excelsior jobs program who either qualified as a regionally signif-
24 icant project or is located in an investment zone shall be eligible to
25 claim a credit for a period of [five] TEN years.
26 (B) The credit IN YEAR ONE shall be equal to fifty percent of the
27 eligible real property taxes on the real property comprising the
28 regionally significant project or located in the investment zone [that
29 were assessed and paid in the year immediately prior to application]. In
30 the remaining years the credit shall be computed according to the
31 following schedule:
32 Year two: [forty] FORTY-FIVE percent of eligible real property taxes
33 on the real property comprising the regionally significant project or
34 located in the investment zone [that were assessed and paid in the year
35 immediately prior to application];
36 Year three: [thirty] FORTY percent of eligible real property taxes on
37 the real property comprising the regionally significant project or
38 located in the investment zone [that were assessed and paid in the year
39 immediately prior to application];
40 Year four: [twenty] THIRTY-FIVE percent of eligible real property
41 taxes on real property comprising the regionally significant project or
42 located in the investment zone [that were assessed and paid in the year
43 immediately prior to application]; [and]
44 Year five: [ten] THIRTY percent of eligible real property taxes on the
45 real property comprising the regionally significant project or located
46 in the investment zone [that were assessed and paid in the year imme-
47 diately prior to application];
48 YEAR SIX: TWENTY-FIVE PERCENT OF ELIGIBLE REAL PROPERTY TAXES ON THE
49 REAL PROPERTY COMPRISING THE REGIONALLY SIGNIFICANT PROJECT OR LOCATED
50 IN THE INVESTMENT ZONE;
51 YEAR SEVEN: TWENTY PERCENT OF ELIGIBLE REAL PROPERTY TAXES ON THE REAL
52 PROPERTY COMPRISING THE REGIONALLY SIGNIFICANT PROJECT OR LOCATED IN THE
53 INVESTMENT ZONE;
54 YEAR EIGHT: FIFTEEN PERCENT OF ELIGIBLE REAL PROPERTY TAXES ON THE
55 REAL PROPERTY COMPRISING THE REGIONALLY SIGNIFICANT PROJECT OR LOCATED
56 IN THE INVESTMENT ZONE;
S. 2811--A 25 A. 4011--A
1 YEAR NINE: TEN PERCENT OF ELIGIBLE REAL PROPERTY TAXES ON THE REAL
2 PROPERTY COMPRISING THE REGIONALLY SIGNIFICANT PROJECT OR LOCATED IN THE
3 INVESTMENT ZONE; AND
4 YEAR TEN: FIVE PERCENT OF ELIGIBLE REAL PROPERTY TAXES ON THE REAL
5 PROPERTY COMPRISING THE REGIONALLY SIGNIFICANT PROJECT OR LOCATED IN THE
6 INVESTMENT ZONE.
7 (C) For purposes of this credit, the term "eligible real property
8 taxes" shall have the same meaning as in subdivision (e) of section
9 fifteen of the tax law, provided that such subdivision (e) shall be read
10 as if it specifically referenced the excelsior jobs program and partic-
11 ipants in that program.
12 (D) IN CALCULATING THE EXCELSIOR REAL PROPERTY TAX CREDIT AND DETER-
13 MINING THE MAXIMUM AGGREGATE AMOUNT OF SUCH CREDIT COMPONENT IN THE
14 PRELIMINARY SCHEDULE OF BENEFITS, THE COMMISSIONER SHALL INCLUDE ANY
15 IMPROVEMENTS PROJECTED TO BE MADE BY THE TAXPAYER TO THE PROPERTY
16 COMPRISING THE REGIONALLY SIGNIFICANT PROJECT OR LOCATED IN THE INVEST-
17 MENT ZONE AS LISTED IN ITS APPLICATION FOR PARTICIPATION IN THE EXCELS-
18 IOR JOBS PROGRAM.
19 5. Refundability of credits. The tax credit components established in
20 this section shall be refundable as provided in the tax law. If a
21 participant fails to satisfy the eligibility criteria in any one year,
22 it will lose the ability to claim credit for that year. The event of
23 such failure shall not extend the original [five-year] TEN-YEAR eligi-
24 bility period.
25 6. Claim of tax credit. The business enterprise shall be allowed to
26 claim the credit as prescribed in section thirty-one of the tax law.
27 7. FOR AVAILABILITY OF SPECIAL EXCELSIOR JOBS PROGRAM RATES GOVERNING
28 THE PROVISION OF GAS OR ELECTRIC SERVICE, SEE SUBDIVISION TWELVE-D OF
29 SECTION SIXTY-SIX OF THE PUBLIC SERVICE LAW. SUCH SPECIAL EXCELSIOR JOBS
30 PROGRAM RATES MAY REMAIN AVAILABLE TO PARTICIPANTS AS DEFINED IN THIS
31 ARTICLE FOR A PERIOD OF UP TO TEN YEARS COMMENCING IN THE FIRST TAXABLE
32 YEAR THAT THE PARTICIPANT RECEIVES A CERTIFICATE OF TAX CREDIT, OR THE
33 FIRST TAXABLE YEAR LISTED ON ITS PRELIMINARY SCHEDULE OF BENEFITS,
34 WHICHEVER IS LATER. PROVIDED HOWEVER, IF A PARTICIPANT IS REMOVED FROM
35 THE EXCELSIOR JOBS PROGRAM PURSUANT TO THIS ARTICLE, THE EXCELSIOR JOBS
36 PROGRAM RATES MAY BE DENIED.
37 S 5. Subdivision 3 of section 356 of the economic development law, as
38 added by section 1 of part MM of chapter 59 of the laws of 2010, is
39 amended to read as follows:
40 3. The commissioner shall solely determine the eligibility of any
41 applicant applying for entry into the program and shall remove any
42 participant from the program for failing to meet any of the requirements
43 set forth in subdivision two of section three hundred fifty-four of this
44 article, or for failing to meet the minimum job or investment require-
45 ments set forth in subdivisions [two] THREE and [three] FOUR of section
46 three hundred fifty-three of this article.
47 S 6. Section 359 of the economic development law, as added by section
48 1 of part MM of chapter 59 of the laws of 2010, is amended to read as
49 follows:
50 S 359. Cap on tax credit. The total amount of tax credits listed on
51 certificates of tax credit issued by the commissioner for any taxable
52 year may not exceed the limitations set forth in this section. Any
53 amount of tax credits not awarded for a particular taxable year may not
54 be used by the commissioner to award tax credits in another taxable
55 year.
S. 2811--A 26 A. 4011--A
1 Credit components in the aggregate With respect to
2 shall not exceed: taxable years
3 beginning in:
4 $ 50 million 2011
5 $ 100 million 2012
6 $ 150 million 2013
7 $ 200 million 2014
8 $ 250 million 2015
9 $ 200 million 2016
10 $ [150] 200 million 2017
11 $ [100] 200 million 2018
12 $ [50] 200 million 2019
13 $ 200 MILLION 2020
14 $ 200 MILLION 2021
15 $ 150 MILLION 2022
16 $ 100 MILLION 2023
17 $ 50 MILLION 2024
18 Twenty-five percent of tax credits shall be allocated to businesses
19 accepted into the program under subdivision [three] FOUR of section
20 three hundred fifty-three of this article and seventy-five percent of
21 tax credits shall be allocated to businesses accepted into the program
22 under subdivision [two] THREE of section three hundred fifty-three of
23 this article.
24 Provided, however, if by September thirtieth of a calendar year, the
25 department has not allocated the full amount of credits available in
26 that year to either: (i) businesses accepted into the program under
27 subdivision [three] FOUR of section three hundred fifty-three of this
28 article or (ii) businesses accepted into the program under subdivision
29 [two] THREE of section three hundred fifty-three of this article, the
30 commissioner may allocate any remaining tax credits to businesses refer-
31 enced in paragraphs (i) and (ii) of this section as needed; provided,
32 however, that under no circumstances may the statutory cap be exceeded.
33 S 7. Subdivisions (a), (b) and (f) of section 31 of the tax law, as
34 added by section 2 of part MM of chapter 59 of the laws of 2010, are
35 amended to read as follows:
36 (a) General. A taxpayer subject to tax under article nine-A, twenty-
37 two, thirty-two or thirty-three of this chapter shall be allowed a cred-
38 it against such tax, pursuant to the provisions referenced in subdivi-
39 sion (g) of this section. The amount of the credit, allowable for up to
40 [five] TEN consecutive taxable years, is the sum of the following four
41 credit components:
42 (1) the excelsior jobs tax credit COMPONENT;
43 (2) the excelsior investment tax credit COMPONENT;
44 (3) the excelsior research and development tax credit COMPONENT; and
45 (4) the excelsior real property tax credit COMPONENT.
46 (b) To be eligible for the excelsior jobs program credit, the taxpayer
47 shall have been issued a "certificate of tax credit" by the department
48 of economic development pursuant to subdivision four of section three
49 hundred fifty-four of the economic development law, which certificate
50 shall set forth the amount of each credit component that may be claimed
51 for the taxable year. A taxpayer may claim such credit for [five] TEN
52 consecutive taxable years commencing in the first taxable year that the
53 taxpayer receives a certificate of tax credit or the first taxable year
54 listed on its preliminary schedule of benefits, whichever is later. The
55 taxpayer shall be allowed to claim only the amount listed on the certif-
S. 2811--A 27 A. 4011--A
1 icate of tax credit for that taxable year. Such certificate [should]
2 MUST be attached to the taxpayer's return. No cost or expense paid or
3 incurred by the taxpayer shall be the basis for more than one component
4 of this credit or any other tax credit, EXCEPT AS PROVIDED IN SECTION
5 THREE HUNDRED FIFTY-FIVE OF THE ECONOMIC DEVELOPMENT LAW.
6 (f) Credit recapture. If a certificate of eligibility or a certificate
7 of tax credit issued by the department of economic development under
8 article seventeen of the economic development law is revoked by such
9 department BECAUSE THE TAXPAYER DOES NOT MEET THE ELIGIBILITY REQUIRE-
10 MENT SET FORTH IN SUBDIVISION SIX OF SECTION THREE HUNDRED FIFTY-THREE
11 OF THE ECONOMIC DEVELOPMENT LAW, the amount of credit described in this
12 section and claimed by the taxpayer prior to that revocation shall be
13 added back to [income] TAX in the taxable year in which any such revoca-
14 tion becomes final.
15 S 8. Section 66 of the public service law is amended by adding a new
16 subdivision 12-d to read as follows:
17 12-D. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, UPON APPLICATION OF
18 A GAS OR ELECTRIC CORPORATION, THE COMMISSION SHALL AUTHORIZE SUCH
19 CORPORATION TO CHARGE A SPECIAL EXCELSIOR JOBS PROGRAM RATE EQUAL TO THE
20 INCREMENTAL COST OF PROVIDING SERVICE TO PARTICIPANTS IN THE EXCELSIOR
21 JOBS PROGRAM AS DEFINED IN ARTICLE SEVENTEEN OF THE ECONOMIC DEVELOPMENT
22 LAW.
23 S 9. This act shall take effect immediately.
24 PART H
25 Section 1. Paragraph 7 of subdivision (a) of section 1512 of the tax
26 law, as amended by chapter 817 of the laws of 1987, is amended to read
27 as follows:
28 (7) a town or county cooperative insurance corporation as heretofore
29 contemplated by section one hundred eighty-seven of this chapter in
30 effect immediately prior to January first, nineteen hundred
31 seventy-four, THAT ACCURATELY AND IN ACCORDANCE WITH LAW REPORTED TO THE
32 SUPERINTENDENT OF INSURANCE TOTAL DIRECT PREMIUMS WRITTEN FOR THE TAXA-
33 BLE YEAR OF TWENTY-FIVE MILLION DOLLARS OR LESS.
34 S 2. This act shall take effect immediately and apply to taxable years
35 beginning on or after January 1, 2011.
36 PART I
37 Section 1. The opening paragraph of paragraph 1 of subsection (b) of
38 section 1101 of the insurance law, as amended by chapter 614 of the laws
39 of 1997, is amended to read as follows:
40 Except as provided in paragraph two, three [or], three-a, OR SEVEN of
41 this subsection, any of the following acts in this state, effected by
42 mail from outside this state or otherwise, by any person, firm, associ-
43 ation, corporation or joint-stock company shall constitute doing an
44 insurance business in this state and shall constitute doing business in
45 the state within the meaning of section three hundred two of the civil
46 practice law and rules:
47 S 2. Subparagraph (H) of paragraph 2 of subsection (b) of section 1101
48 of the insurance law is amended to read as follows:
49 (H) transactions with respect to insurance contracts negotiated or
50 placed pursuant to subsection (b) [or], (c), OR (J) of section two thou-
51 sand one hundred seventeen of this chapter;
S. 2811--A 28 A. 4011--A
1 S 3. Subsection (b) of section 1101 of the insurance law is amended by
2 adding a new paragraph 7 to read as follows:
3 (7)(A) NOTWITHSTANDING THE FOREGOING, THE MAKING OF A SWAP SHALL NOT
4 CONSTITUTE DOING AN INSURANCE BUSINESS IN THIS STATE.
5 (B) FOR THE PURPOSES OF THIS PARAGRAPH, "SWAP" SHALL HAVE THE MEANING
6 SET FORTH IN 7 U.S.C. S 1A.
7 S 4. Section 2101 of the insurance law is amended by adding two new
8 subsections (w) and (x) to read as follows:
9 (W) IN THIS ARTICLE, "STATE" MEANS THE DISTRICT OF COLUMBIA OR ANY
10 STATE OR TERRITORY OF THE UNITED STATES.
11 (X) IN THIS ARTICLE, WITH RESPECT TO EXCESS LINE INSURANCE AND EXCESS
12 LINE BROKERS:
13 (1) WITH RESPECT TO AN INSURED'S HOME STATE, "AFFILIATED GROUP" MEANS
14 ANY GROUP OF ENTITIES THAT ARE ALL AFFILIATED. FOR THE PURPOSES OF THIS
15 PARAGRAPH:
16 (A) "AFFILIATE" MEANS, WITH RESPECT TO AN INSURED, ANY ENTITY THAT
17 CONTROLS, IS CONTROLLED BY, OR IS UNDER COMMON CONTROL WITH THE INSURED;
18 AND
19 (B) AN ENTITY HAS CONTROL OVER ANOTHER ENTITY IF THE ENTITY:
20 (I) DIRECTLY OR INDIRECTLY OR ACTING THROUGH ONE OR MORE OTHER PERSONS
21 OWNS, CONTROLS, OR HAS THE POWER TO VOTE TWENTY-FIVE PERCENT OR MORE OF
22 ANY CLASS OF VOTING SECURITIES OF THE OTHER ENTITY; OR
23 (II) CONTROLS IN ANY MANNER THE ELECTION OF A MAJORITY OF THE DIREC-
24 TORS OR TRUSTEES OF THE OTHER ENTITY;
25 (2) "EXEMPT COMMERCIAL PURCHASER" MEANS ANY PERSON PURCHASING COMMER-
26 CIAL INSURANCE THAT, AT THE TIME OF PLACEMENT, MEETS THE FOLLOWING
27 REQUIREMENTS:
28 (A) THE PERSON EMPLOYS OR RETAINS A QUALIFIED RISK MANAGER TO NEGOTI-
29 ATE INSURANCE COVERAGE;
30 (B) THE PERSON HAS PAID AGGREGATE NATIONWIDE COMMERCIAL
31 PROPERTY/CASUALTY INSURANCE PREMIUMS IN EXCESS OF ONE HUNDRED THOUSAND
32 DOLLARS IN THE IMMEDIATELY PRECEDING TWELVE MONTHS; AND
33 (C) (I) THE PERSON MEETS AT LEAST ONE OF THE FOLLOWING CRITERIA:
34 (I) THE PERSON POSSESSES A NET WORTH IN EXCESS OF TWENTY MILLION
35 DOLLARS, AS SUCH AMOUNT IS ADJUSTED PURSUANT TO ITEM (II) OF THIS
36 SUBPARAGRAPH;
37 (II) THE PERSON GENERATES ANNUAL REVENUES IN EXCESS OF FIFTY MILLION
38 DOLLARS, AS SUCH AMOUNT IS ADJUSTED PURSUANT TO ITEM (II) OF THIS
39 SUBPARAGRAPH;
40 (III) THE PERSON EMPLOYS MORE THAN FIVE HUNDRED FULL-TIME OR FULL-TIME
41 EQUIVALENT EMPLOYEES PER INDIVIDUAL INSURED OR IS A MEMBER OF AN AFFIL-
42 IATED GROUP EMPLOYING MORE THAN ONE THOUSAND EMPLOYEES IN THE AGGREGATE;
43 (IV) THE PERSON IS A NOT-FOR-PROFIT ORGANIZATION OR PUBLIC ENTITY
44 GENERATING ANNUAL BUDGETED EXPENDITURES OF AT LEAST THIRTY MILLION
45 DOLLARS, AS SUCH AMOUNT IS ADJUSTED PURSUANT TO ITEM (II) OF THIS
46 SUBPARAGRAPH; OR
47 (V) THE PERSON IS A MUNICIPALITY WITH A POPULATION IN EXCESS OF FIFTY
48 THOUSAND PERSONS;
49 (II) EFFECTIVE ON THE FIFTH JANUARY FIRST OCCURRING AFTER JULY TWEN-
50 TY-FIRST, TWO THOUSAND TEN AND EACH FIFTH JANUARY FIRST OCCURRING THERE-
51 AFTER, THE AMOUNTS IN CLAUSES (I), (II), AND (IV) OF ITEM (I) OF THIS
52 SUBPARAGRAPH SHALL BE ADJUSTED TO REFLECT THE PERCENTAGE CHANGE FOR SUCH
53 FIVE-YEAR PERIOD IN THE CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS
54 PUBLISHED BY THE BUREAU OF LABOR STATISTICS OF THE UNITES STATES DEPART-
55 MENT OF LABOR;
56 (3) "INSURED'S HOME STATE" MEANS:
S. 2811--A 29 A. 4011--A
1 (A) THE STATE IN WHICH AN INSURED MAINTAINS ITS PRINCIPAL PLACE OF
2 BUSINESS OR, IN THE CASE OF AN INDIVIDUAL, THE INDIVIDUAL'S PRINCIPAL
3 RESIDENCE;
4 (B) IF ONE HUNDRED PERCENT OF THE INSURED RISK IS LOCATED OUTSIDE OF
5 THE STATE REFERRED TO IN SUBPARAGRAPH (A) OF THIS PARAGRAPH, THEN THE
6 STATE TO WHICH THE GREATEST PERCENTAGE OF THE INSURED'S TAXABLE PREMIUM
7 FOR THAT INSURANCE CONTRACT IS ALLOCATED;
8 (C) IF MORE THAN ONE INSURED FROM AN AFFILIATED GROUP ARE NAMED
9 INSUREDS ON A SINGLE INSURANCE CONTRACT, THEN THE INSURED'S HOME STATE,
10 AS DETERMINED PURSUANT TO SUBPARAGRAPH (A) OF THIS PARAGRAPH, OF THE
11 MEMBER OF THE AFFILIATED GROUP THAT HAS THE LARGEST PERCENTAGE OF PREMI-
12 UM ATTRIBUTED TO IT UNDER SUCH INSURANCE CONTRACT; OR
13 (D) IN THE CASE OF A GROUP POLICY:
14 (I) WHEN THE GROUP POLICYHOLDER PAYS ONE HUNDRED PERCENT OF THE PREMI-
15 UM FROM ITS OWN FUNDS, THEN THE INSURED'S HOME STATE, AS DETERMINED
16 PURSUANT TO SUBPARAGRAPH (A) OF THIS PARAGRAPH, OF THE GROUP POLICYHOLD-
17 ER; OR
18 (II) WHEN THE GROUP POLICYHOLDER DOES NOT PAY ONE HUNDRED PERCENT OF
19 THE PREMIUM FROM ITS OWN FUNDS, THEN THE HOME STATE, AS DETERMINED
20 PURSUANT TO SUBPARAGRAPH (A) OF THIS PARAGRAPH, OF THE GROUP MEMBER;
21 (4) WITH RESPECT TO DETERMINING AN INSURED'S HOME STATE, "PRINCIPAL
22 PLACE OF BUSINESS" MEANS THE STATE WHERE:
23 (A) THE INSURED MAINTAINS ITS HEADQUARTERS AND WHERE THE INSURED'S
24 HIGH-LEVEL OFFICERS DIRECT, CONTROL, AND COORDINATE THE BUSINESS ACTIV-
25 ITIES; OR
26 (B) IF THE INSURED'S HIGH-LEVEL OFFICERS DIRECT, CONTROL, AND COORDI-
27 NATE THE BUSINESS ACTIVITIES IN MORE THAN ONE STATE, OR IF THE INSURED'S
28 PRINCIPAL PLACE OF BUSINESS IS LOCATED OUTSIDE ANY STATE, THEN THE STATE
29 TO WHICH THE GREATEST PERCENTAGE OF THE INSURED'S TAXABLE PREMIUM FOR
30 THAT INSURANCE CONTRACT IS ALLOCATED;
31 (5) WITH RESPECT TO DETERMINING AN INSURED'S HOME STATE, "PRINCIPAL
32 RESIDENCE" MEANS THE STATE:
33 (A) WHERE THE INDIVIDUAL RESIDES FOR THE GREATEST NUMBER OF DAYS
34 DURING A CALENDAR YEAR; OR
35 (B) IF THE INSURED'S PRINCIPAL RESIDENCE IS LOCATED OUTSIDE ANY STATE,
36 THE STATE TO WHICH THE GREATEST PERCENTAGE OF THE INSURED'S TAXABLE
37 PREMIUM FOR THAT INSURANCE CONTRACT IS ALLOCATED;
38 (6) "PROPERTY/CASUALTY INSURANCE" MEANS ANY KIND OF INSURANCE AS SPEC-
39 IFIED IN SUBSECTION (A) OF SECTION ONE THOUSAND ONE HUNDRED THIRTEEN OF
40 THIS CHAPTER, EXCEPT INSURANCE ISSUED PURSUANT TO PARAGRAPH ONE, TWO,
41 THREE, FIFTEEN, EIGHTEEN OR THIRTY-ONE OF SUBSECTION (A) OF SECTION ONE
42 THOUSAND ONE HUNDRED THIRTEEN OF THIS CHAPTER OR INSURANCE SUBSTANTIALLY
43 SIMILAR THERETO; AND
44 (7) WITH RESPECT TO AN EXEMPT COMMERCIAL PURCHASER, "QUALIFIED RISK
45 MANAGER" MEANS, WITH RESPECT TO A POLICYHOLDER OF COMMERCIAL INSURANCE,
46 A PERSON WHO MEETS ALL OF THE FOLLOWING REQUIREMENTS:
47 (A) THE PERSON IS AN EMPLOYEE OF, OR THIRD-PARTY CONSULTANT RETAINED
48 BY, THE COMMERCIAL POLICYHOLDER;
49 (B) THE PERSON PROVIDES SKILLED SERVICES IN LOSS PREVENTION, LOSS
50 REDUCTION, OR RISK AND INSURANCE COVERAGE ANALYSIS, AND PURCHASE OF
51 INSURANCE;
52 (C) THE PERSON:
53 (I)(I) HAS A BACHELOR'S DEGREE OR HIGHER FROM AN ACCREDITED COLLEGE OR
54 UNIVERSITY IN RISK MANAGEMENT, BUSINESS ADMINISTRATION, FINANCE, ECONOM-
55 ICS, OR ANY OTHER FIELD DETERMINED BY THE SUPERINTENDENT TO DEMONSTRATE
56 MINIMUM COMPETENCE IN RISK MANAGEMENT; AND
S. 2811--A 30 A. 4011--A
1 (II)(AA) HAS THREE YEARS OF EXPERIENCE IN RISK FINANCING, CLAIMS
2 ADMINISTRATION, LOSS PREVENTION, RISK AND INSURANCE ANALYSIS, OR
3 PURCHASING COMMERCIAL LINES OF INSURANCE; OR
4 (BB) HAS:
5 (AAA) A DESIGNATION AS A CHARTERED PROPERTY AND CASUALTY UNDERWRITER
6 (IN THIS CLAUSE REFERRED TO AS A "CPCU") ISSUED BY THE AMERICAN INSTI-
7 TUTE FOR CPCU/INSURANCE INSTITUTE OF AMERICA;
8 (BBB) A DESIGNATION AS AN ASSOCIATE IN RISK MANAGEMENT (ARM) ISSUED BY
9 THE AMERICAN INSTITUTE FOR CPCU/INSURANCE INSTITUTE OF AMERICA;
10 (CCC) A DESIGNATION AS CERTIFIED RISK MANAGER (CRM) ISSUED BY THE
11 NATIONAL ALLIANCE FOR INSURANCE EDUCATION & RESEARCH;
12 (DDD) A DESIGNATION AS A RISK AND INSURANCE MANAGEMENT SOCIETY (RIMS)
13 FELLOW (RF) ISSUED BY THE GLOBAL RISK MANAGEMENT INSTITUTE; OR
14 (EEE) ANY OTHER DESIGNATION, CERTIFICATION, OR LICENSE DETERMINED BY
15 THE SUPERINTENDENT TO DEMONSTRATE MINIMUM COMPETENCY IN RISK MANAGEMENT;
16 (II) (I) HAS AT LEAST SEVEN YEARS OF EXPERIENCE IN RISK FINANCING,
17 CLAIMS ADMINISTRATION, LOSS PREVENTION, RISK AND INSURANCE COVERAGE
18 ANALYSIS, OR PURCHASING COMMERCIAL LINES OF INSURANCE; AND
19 (II) HAS ANY ONE OF THE DESIGNATIONS SPECIFIED IN SUBCLAUSES (AAA)
20 THROUGH (EEE) OF SUBITEM (BB) OF CLAUSE (II) OF ITEM (I) OF THIS SUBPAR-
21 AGRAPH;
22 (III) HAS AT LEAST TEN YEARS OF EXPERIENCE IN RISK FINANCING, CLAIMS
23 ADMINISTRATION, LOSS PREVENTION, RISK AND INSURANCE COVERAGE ANALYSIS,
24 OR PURCHASING COMMERCIAL LINES OF INSURANCE; OR
25 (IV) HAS A GRADUATE DEGREE FROM AN ACCREDITED COLLEGE OR UNIVERSITY IN
26 RISK MANAGEMENT, BUSINESS ADMINISTRATION, FINANCE, ECONOMICS, OR ANY
27 OTHER FIELD DETERMINED BY THE SUPERINTENDENT TO DEMONSTRATE MINIMUM
28 COMPETENCE IN RISK MANAGEMENT.
29 S 5. Paragraphs 7 and 8 of subsection (c) of section 2101 of the
30 insurance law, as added by chapter 687 of the laws of 2003, are amended
31 and a new paragraph 9 is added to read as follows:
32 (7) a person whose activities in this state are limited to advertising
33 without the intent to solicit insurance in this state through communi-
34 cations in printed publications or other forms of electronic mass media
35 whose distribution is not limited to residents of the state, provided
36 that the person does not sell, solicit or negotiate insurance that would
37 insure risks residing, located or to be performed in this state; [or]
38 (8) a person who is not a resident of this state who sells, solicits
39 or negotiates a contract for commercial property/casualty risks to an
40 insured with risks located in more than one state insured under that
41 contract, provided that such person is otherwise licensed as an insur-
42 ance producer to sell, solicit or negotiate that insurance in the state
43 where the insured maintains its principal place of business and the
44 contract of insurance insures risks located in that state[.]; OR
45 (9) A PERSON WHO IS NOT A RESIDENT OF THIS STATE WHO SELLS, SOLICITS
46 OR NEGOTIATES A CONTRACT OF PROPERTY/CASUALTY INSURANCE, AS DEFINED IN
47 PARAGRAPH SIX OF SUBSECTION (X) OF THIS SECTION, TO OR FOR AN INSURED,
48 WITH REGARD TO AN UNAUTHORIZED INSURER, PROVIDED THAT: (A) THE INSURED'S
49 HOME STATE IS A STATE OTHER THAN THIS STATE; (B) SUCH PERSON IS OTHER-
50 WISE LICENSED TO SELL, SOLICIT OR NEGOTIATE EXCESS LINE INSURANCE IN THE
51 INSURED'S HOME STATE; AND (C) THE PERSON DOES NOT PERFORM THE DILIGENT
52 SEARCH REQUIRED BY SECTION TWO THOUSAND ONE HUNDRED EIGHTEEN OF THIS
53 ARTICLE.
54 S 6. Paragraphs 9 and 10 of subsection (k) of section 2101 of the
55 insurance law, as added by chapter 687 of the laws of 2003, are amended
56 and a new paragraph 11 is added to read as follows:
S. 2811--A 31 A. 4011--A
1 (9) a person who is not a resident of this state who sells, solicits
2 or negotiates a contract of insurance for commercial property/casualty
3 risks to an insured with risks located in more than one state insured
4 under that contract, provided that such person is otherwise licensed as
5 an insurance producer to sell, solicit or negotiate that insurance in
6 the state where the insured maintains its principal place of business
7 and the contract of insurance insures risks located in that state; [or]
8 (10) any salaried full-time employee who counsels or advises his or
9 her employer relative to the insurance interests of the employer or of
10 the subsidiaries or business affiliates of the employer, provided that
11 the employee does not sell or solicit insurance or receive a commis-
12 sion[.]; OR
13 (11) A PERSON WHO IS NOT A RESIDENT OF THIS STATE WHO SELLS, SOLICITS
14 OR NEGOTIATES A CONTRACT OF PROPERTY/CASUALTY INSURANCE, AS DEFINED IN
15 PARAGRAPH SIX OF SUBSECTION (X) OF THIS SECTION, TO OR FOR AN INSURED,
16 WITH REGARD TO AN UNAUTHORIZED INSURER, PROVIDED THAT: (A) THE INSURED'S
17 HOME STATE IS A STATE OTHER THAN THIS STATE; (B) SUCH PERSON IS OTHER-
18 WISE LICENSED TO SELL, SOLICIT OR NEGOTIATE EXCESS LINE INSURANCE IN THE
19 INSURED'S HOME STATE; AND (C) THE PERSON DOES NOT PERFORM THE DILIGENT
20 SEARCH REQUIRED BY SECTION TWO THOUSAND ONE HUNDRED EIGHTEEN OF THIS
21 ARTICLE.
22 S 7. Paragraph 1 of subsection (a) of section 2102 of the insurance
23 law, as amended by chapter 499 of the laws of 2009, is amended to read
24 as follows:
25 (1) (A) No person, firm, association or corporation shall act as an
26 insurance producer, insurance adjuster or life settlement broker in this
27 state without having authority to do so by virtue of a license issued
28 and in force pursuant to the provisions of this chapter.
29 (B) NO PERSON, FIRM, ASSOCIATION OR CORPORATION SHALL ACT AS AN EXCESS
30 LINE BROKER IN THIS STATE WITHOUT HAVING AUTHORITY TO DO SO BY VIRTUE OF
31 A LICENSE ISSUED AND IN FORCE PURSUANT TO SECTION TWO THOUSAND ONE
32 HUNDRED FIVE OF THIS ARTICLE, PROVIDED, HOWEVER, THAT SUCH PERSON, FIRM,
33 ASSOCIATION OR CORPORATION SHALL NOT BE REQUIRED TO BE LICENSED TO ACT
34 AS AN EXCESS LINE BROKER WHERE THE INSURED'S HOME STATE IS A STATE OTHER
35 THAN THIS STATE AND SUCH PERSON, FIRM, ASSOCIATION OR CORPORATION IS
36 OTHERWISE LICENSED TO SELL, SOLICIT OR NEGOTIATE EXCESS LINE INSURANCE
37 IN THE INSURED'S HOME STATE.
38 S 8. Subsection (a) of section 2105 of the insurance law, as amended
39 by chapter 626 of the laws of 2006, is amended to read as follows:
40 (a) The superintendent may issue an excess line broker's license to
41 any person, firm, association or corporation who or which [is domiciled
42 or maintains an office in this state and] is licensed as an insurance
43 broker under section two thousand one hundred four of this article, or
44 who or which is licensed as an excess line broker in the licensee's home
45 state, provided, however, that the applicant's home state grants non-re-
46 sident licenses to residents of this state on the same basis, except
47 that reciprocity is not required in regard to the placement of liability
48 insurance on behalf of a purchasing group or any of its members; author-
49 izing such person, firm, association or corporation to procure, subject
50 to the restrictions herein provided, policies of insurance from insurers
51 which are not authorized to transact business in this state of the kind
52 or kinds of insurance specified in paragraphs four through fourteen,
53 sixteen, seventeen, nineteen, twenty, twenty-two, twenty-seven, twenty-
54 eight and thirty-one of subsection (a) of section one thousand one
55 hundred thirteen of this chapter and in subsection (h) of this section,
56 provided, however, that the provisions of this section and section two
S. 2811--A 32 A. 4011--A
1 thousand one hundred eighteen of this article shall not apply to ocean
2 marine insurance and other contracts of insurance enumerated in
3 subsections (b) and (c) of section two thousand one hundred seventeen of
4 this article. Such license may be suspended or revoked by the super-
5 intendent whenever in his OR HER judgment such suspension or revocation
6 will best promote the interests of the people of this state.
7 S 9. Section 2117 of the insurance law is amended by adding a new
8 subsection (j) to read as follows:
9 (J) NOTWITHSTANDING SUBSECTION (A) OF THIS SECTION, A PERSON WHO IS
10 NOT A RESIDENT OF THIS STATE MAY SELL, SOLICIT OR NEGOTIATE A CONTRACT
11 OF PROPERTY/CASUALTY INSURANCE TO OR FOR AN INSURED, WITH REGARD TO AN
12 UNAUTHORIZED INSURER, PROVIDED THAT: (1) THE INSURED'S HOME STATE IS A
13 STATE OTHER THAN THIS STATE; (2) THE PERSON IS LICENSED TO SELL, SOLICIT
14 OR NEGOTIATE EXCESS LINE INSURANCE IN THE INSURED'S HOME STATE; AND (3)
15 EITHER THE PERSON IS LICENSED AS AN INSURANCE BROKER IN THIS STATE OR
16 THE PERSON DOES NOT PERFORM THE DILIGENT SEARCH REQUIRED BY SECTION TWO
17 THOUSAND ONE HUNDRED EIGHTEEN OF THIS ARTICLE.
18 S 10. Paragraph 1 of subsection (b) of section 2118 of the insurance
19 law, as amended by chapter 630 of the laws of 1988, is amended to read
20 as follows:
21 (1) Within [forty-five] THIRTY days after a policy is procured, a
22 licensee shall submit the declarations page or cover note of every poli-
23 cy procured under his or her license to the excess line association
24 established pursuant to section two thousand one hundred thirty of this
25 article for recording and stamping. In the event that no declarations
26 page or cover note is available to the licensee, within [forty-five]
27 THIRTY days after the policy is procured, the licensee shall submit a
28 binder to the excess line association in lieu of such declarations page
29 or cover note. In the event that a binder is submitted to the excess
30 line association, the licensee shall submit the declarations page or
31 cover note to the excess line association promptly upon receipt. Every
32 insurance document submitted to the excess line association pursuant to
33 this subsection shall set forth:
34 (A) the name and address of the insured;
35 (B) the gross premium charged;
36 (C) the name of the unauthorized insurer; and
37 (D) the kind of insurance procured.
38 S 10-a. Paragraphs 8 and 9 of subsection (b) of section 2118 of the
39 insurance law are REPEALED.
40 S 11. Subparagraph (A) of paragraph 3 of subsection (b) of section
41 2118 of the insurance law, as amended by chapter 498 of the laws of
42 1996, is amended and a new subparagraph (F) is added to read as follows:
43 (A) [The] EXCEPT AS PROVIDED IN SUBPARAGRAPH (F) OF THIS PARAGRAPH,
44 submission of insurance documents to the excess line association shall
45 be accompanied by a statement subscribed to, and affirmed by, the licen-
46 see or sublicensee as true under the penalties of perjury that, after
47 diligent effort, the full amount of insurance required could not be
48 procured, from authorized insurers, each of which is authorized to write
49 insurance of the kind requested and which the licensee has reason to
50 believe might consider writing the type of coverage or class of insur-
51 ance involved, and further showing that the amount of insurance procured
52 from an unauthorized insurer is only the excess over the amount procura-
53 ble from an authorized insurer. The licensee, however, shall be excused
54 from affirming that a diligent effort, as defined above, was made to
55 procure the coverage from authorized insurers if the licensee's affida-
56 vit is accompanied by the affidavit of another broker involved in the
S. 2811--A 33 A. 4011--A
1 placement affirming as true under the penalties of perjury that, after
2 diligent effort by the affirming broker, the required insurance could
3 not be procured from an authorized insurer which the affirming broker
4 had reason to believe might consider writing the type of coverage or
5 class of insurance involved. The licensee and the affirming broker shall
6 be excused from affirming that a diligent effort was made if the super-
7 intendent determines, pursuant to paragraph four of this subsection,
8 that no declinations are required.
9 (F) A LICENSEE SEEKING TO PROCURE OR PLACE INSURANCE IN THIS STATE FOR
10 AN EXEMPT COMMERCIAL PURCHASER SHALL NOT BE REQUIRED TO SATISFY ANY
11 REQUIREMENT OF THIS STATE TO MAKE A DUE DILIGENCE SEARCH TO DETERMINE
12 WHETHER THE FULL AMOUNT OR TYPE OF INSURANCE SOUGHT BY THE EXEMPT
13 COMMERCIAL PURCHASER CAN BE OBTAINED FROM AUTHORIZED INSURERS IF:
14 (I) THE LICENSEE PROCURING OR PLACING THE EXCESS LINE INSURANCE HAS
15 DISCLOSED TO THE EXEMPT COMMERCIAL PURCHASER THAT THE INSURANCE MAY OR
16 MAY NOT BE AVAILABLE FROM THE AUTHORIZED MARKET THAT MAY PROVIDE GREATER
17 PROTECTION WITH MORE REGULATORY OVERSIGHT; AND
18 (II) THE EXEMPT COMMERCIAL PURCHASER HAS SUBSEQUENTLY REQUESTED IN
19 WRITING THAT THE LICENSEE PROCURE OR PLACE THE INSURANCE FROM AN UNAU-
20 THORIZED INSURER.
21 S 12. Subsection (d) of section 2118 of the insurance law, as amended
22 by chapter 220 of the laws of 1986, paragraph 1 as amended by chapter
23 190 of the laws of 1990, is amended to read as follows:
24 (d) (1) [Every] (A) WHERE THIS STATE IS THE INSURED'S HOME STATE, A
25 person, firm, association or corporation licensed pursuant to the
26 provisions of section two thousand one hundred five of this article
27 shall pay to the superintendent a sum equal to three and six-tenths
28 percent of the gross premiums charged the insureds by the insurers for
29 insurance procured by such licensee pursuant to such license, less the
30 amount of such premiums returned to such insureds. [Where the insurance
31 covers property or risks located or resident both in and out of this
32 state, the sum payable shall be computed on that portion of the gross
33 premiums allocated to this state pursuant to subsection (b) of section
34 nine thousand one hundred two of this chapter less the amount of gross
35 premiums allocated to this state and returned to the insured.]
36 (B) NOTWITHSTANDING SUBPARAGRAPH (A) OF THIS PARAGRAPH, IF THE SUPER-
37 INTENDENT ENTERS INTO A NONADMITTED INSURANCE MULTI-STATE AGREEMENT ON
38 BEHALF OF THIS STATE PURSUANT TO SECTION TWO THOUSAND ONE HUNDRED THIR-
39 TY-EIGHT OF THIS ARTICLE, THEN, WHERE THIS STATE IS THE INSURED'S HOME
40 STATE, A PERSON, FIRM, ASSOCIATION OR CORPORATION LICENSED PURSUANT TO
41 THE PROVISIONS OF SECTION TWO THOUSAND ONE HUNDRED FIVE OF THIS ARTICLE
42 SHALL PAY TO THE SUPERINTENDENT, OR A CLEARINGHOUSE DESIGNATED BY THE
43 SUPERINTENDENT, A SUM EQUAL TO:
44 (I) THREE AND SIX-TENTHS PERCENT OF THE GROSS PREMIUMS ALLOCATED TO
45 THIS STATE BASED ON THE ALLOCATION SCHEDULE SET FORTH IN THE NONADMITTED
46 INSURANCE MULTI-STATE AGREEMENT AND ADOPTED BY THE SUPERINTENDENT PURSU-
47 ANT TO A REGULATION;
48 (II) THE PERCENTAGE SPECIFIED BY EACH OTHER STATE, WHICH HAS EXECUTED
49 THE NONADMITTED INSURANCE MULTI-STATE AGREEMENT AND HAS NOT WITHDRAWN OR
50 DEFAULTED, ON THE PORTION OF THE PREMIUM ALLOCATED TO THAT OTHER STATE
51 BASED ON THE ALLOCATION SCHEDULE SET FORTH IN THE NONADMITTED INSURANCE
52 MULTI-STATE AGREEMENT AND ADOPTED BY THE SUPERINTENDENT PURSUANT TO A
53 REGULATION; AND
54 (III) THREE AND SIX-TENTHS PERCENT OF THE GROSS PREMIUMS ON ANY
55 PORTION OF THE PREMIUM NOT ALLOCATED UNDER ITEMS (I) AND (II) OF THIS
56 SUBPARAGRAPH.
S. 2811--A 34 A. 4011--A
1 (2) The amount of such payments which represents a sum equal to three
2 percent of fire insurance premiums shall be distributed by the super-
3 intendent as prescribed in section nine thousand one hundred five of
4 this chapter, and the balance thereof shall be paid over by the super-
5 intendent to the state treasurer.
6 (3) Such licensee shall be required to make such payments to the
7 superintendent QUARTERLY on the fifteenth day of [March of each year]:
8 (A) FEBRUARY FOR THE QUARTER ENDING THE PRECEDING THIRTY-FIRST DAY OF
9 DECEMBER; (B) MAY FOR THE QUARTER ENDING THE PRECEDING THIRTY-FIRST DAY
10 OF MARCH; (C) AUGUST FOR THE QUARTER ENDING THE PRECEDING THIRTIETH DAY
11 OF JUNE; AND (D) NOVEMBER FOR THE QUARTER ENDING THE PRECEDING THIRTIETH
12 DAY OF SEPTEMBER, for the taxes on all policies procured by such licen-
13 see, pursuant to such license, during the next preceding [calendar year]
14 QUARTER, and on EACH such PAYMENT date such licensee shall also file
15 with the superintendent a return in the form prescribed by the super-
16 intendent, showing such information as may be necessary for the proper
17 distribution of such payments.
18 S 13. Paragraph 5 of subsection (a) of section 2130 of the insurance
19 law, as added by chapter 630 of the laws of 1988, is amended to read as
20 follows:
21 (5) prepare and deliver to each licensee and to the superintendent
22 [annually] the reports of excess line business ON THE SEVENTH DAY OF:
23 (A) FEBRUARY FOR THE QUARTER ENDING THE PRECEDING THIRTY-FIRST DAY OF
24 DECEMBER; (B) MAY FOR THE QUARTER ENDING THE PRECEDING THIRTY-FIRST DAY
25 OF MARCH; (C) AUGUST FOR THE QUARTER ENDING THE PRECEDING THIRTIETH DAY
26 OF JUNE; AND (D) NOVEMBER FOR THE QUARTER ENDING THE PRECEDING THIRTIETH
27 DAY OF SEPTEMBER, which reports shall include a delineation of the
28 classes and kinds of business procured during the preceding calendar
29 year in such form as the superintendent may prescribe;
30 S 14. The insurance law is amended by adding a new section 2138 to
31 read as follows:
32 S 2138. NONADMITTED INSURANCE MULTI-STATE AGREEMENT. (A) FOR THE
33 PURPOSES OF IMPLEMENTING THE FEDERAL NONADMITTED AND REINSURANCE REFORM
34 ACT OF 2010, THE SUPERINTENDENT, IN CONSULTATION WITH THE COMMISSIONER
35 OF TAXATION AND FINANCE, MAY ENTER INTO A NONADMITTED INSURANCE
36 MULTI-STATE AGREEMENT ON BEHALF OF THIS STATE IN ORDER TO:
37 (1) FACILITATE THE PAYMENT AND ALLOCATION AMONGST STATES OF EXCESS
38 LINE PREMIUM TAXES AND TAXES ON INDEPENDENTLY PROCURED INSURANCE ATTRIB-
39 UTABLE TO THE PLACEMENT OF INSURANCE WITH UNAUTHORIZED INSURERS IN
40 ACCORDANCE WITH THE PREMIUM TAX ALLOCATION SCHEDULE AND ALLOCATION
41 FORMULA SET FORTH IN A NONADMITTED INSURANCE MULTI-STATE AGREEMENT AND
42 BASED ON RATES ESTABLISHED BY EACH STATE;
43 (2) ADOPT NATIONWIDE UNIFORM REQUIREMENTS, FORMS, AND PROCEDURES THAT
44 FACILITATE THE REPORTING, PAYMENT, COLLECTION, AND ALLOCATION OF EXCESS
45 LINE PREMIUM TAXES AND TAXES ON INDEPENDENTLY PROCURED INSURANCE WITH
46 REGARD TO INSURANCE PLACED WITH AN UNAUTHORIZED INSURER; AND
47 (3) COORDINATE REPORTING OF EXCESS LINE PREMIUM TAXES AND TAXES ON
48 INDEPENDENTLY PROCURED INSURANCE AND TRANSACTION DATA AMONG STATES.
49 (B) THE SUPERINTENDENT MAY PARTICIPATE IN THE CLEARINGHOUSE DESIGNATED
50 PURSUANT TO A NONADMITTED INSURANCE MULTI-STATE AGREEMENT THAT THE
51 SUPERINTENDENT HAS ENTERED INTO ON BEHALF OF THIS STATE FOR THE PURPOSE
52 OF COLLECTING AND ALLOCATING TO STATES EXCESS LINE PREMIUM TAXES AND
53 TAXES ON INDEPENDENTLY PROCURED INSURANCE WITH REGARD TO INSURANCE
54 PLACED WITH AN UNAUTHORIZED INSURER.
55 (C) IF THE SUPERINTENDENT ENTERS INTO A NONADMITTED INSURANCE
56 MULTI-STATE AGREEMENT ON BEHALF OF THIS STATE, THEN THE SUPERINTENDENT
S. 2811--A 35 A. 4011--A
1 SHALL ADOPT BY REGULATION THE PREMIUM TAX ALLOCATION SCHEDULE SET FORTH
2 IN THE NONADMITTED INSURANCE MULTI-STATE AGREEMENT AND ANY AMENDMENTS
3 THERETO.
4 (D) THE SUPERINTENDENT MAY WITHDRAW THIS STATE FROM PARTICIPATION IN A
5 NONADMITTED INSURANCE MULTI-STATE AGREEMENT BY PROVIDING SIXTY DAYS
6 WRITTEN NOTICE TO THE CLEARINGHOUSE DESIGNATED BY THE NONADMITTED INSUR-
7 ANCE MULTI-STATE AGREEMENT IF THE SUPERINTENDENT, IN CONSULTATION WITH
8 THE COMMISSIONER OF TAXATION AND FINANCE, DETERMINES THAT THIS STATE'S
9 PARTICIPATION IN THE NONADMITTED INSURANCE MULTI-STATE AGREEMENT IS NO
10 LONGER IN THE BEST INTERESTS OF THE PEOPLE OF THIS STATE.
11 S 15. Section 9102 of the insurance law, as amended by chapter 190 of
12 the laws of 1990, subsection (c) as amended by chapter 73 of the laws of
13 1991, is amended to read as follows:
14 S 9102. Allocation of premiums. [(a)] In determining the amount of
15 direct premiums taxable in this state, all such premiums written,
16 procured, or received in this state shall be deemed written on property
17 or risks located or resident in this state except such premiums properly
18 allocated and reported as taxable premiums of any other state or states.
19 [(b) (1) In determining the amount of gross premiums taxable in this
20 state pursuant to paragraph one of subsection (d) of section two thou-
21 sand one hundred eighteen of this chapter, where a placement of excess
22 line insurance covers property or risks located or resident both in and
23 out of this state, the sum paid to the superintendent shall be computed
24 on that portion of the policy premium that is attributable to property
25 or risks located or resident in this state, as determined by reference
26 to an allocation schedule prescribed by the superintendent in a regu-
27 lation.
28 (2) If the allocation schedule does not identify a classification
29 appropriate to the property or risk being insured, an alternative method
30 of equitable allocation shall be used for such coverage. In that circum-
31 stance, documented evidence of the underwriting bases and other criteria
32 used by the insurer shall be given significant weight by the superinten-
33 dent.
34 (3) The licensee shall report the method of allocation utilized in a
35 form and in a manner prescribed by the superintendent in a regulation.
36 Where the licensee bases the allocation on an alternative method of
37 equitable allocation, such licensee shall provide additional information
38 in support of the allocation as the superintendent may require.
39 (4) If the superintendent reasonably determines that the information
40 provided is insufficient to substantiate the method of allocation or
41 that the method used is incorrect, the superintendent shall determine
42 the sum to be paid in accordance with the method prescribed by the
43 superintendent in the regulation. The superintendent's determination of
44 the sum to be paid shall finally and irrevocably fix the tax unless,
45 within thirty days of notification of the superintendent's determi-
46 nation, the licensee requests a hearing to dispute such determination.
47 (c) (1) Any licensee who allocated the premium tax for any of the six
48 years prior to the effective date of this subsection shall not be liable
49 for the payment of any additional premium tax that would have been due
50 had the licensee not allocated, unless the superintendent determines
51 that the method of allocation was inequitable.
52 (2) The superintendent's determination under this subsection shall be
53 in accordance with the procedures in paragraph four of subsection (b) of
54 this section. Documented evidence of the underwriting bases and other
55 criteria used by the insurer shall be given significant weight by the
56 superintendent.
S. 2811--A 36 A. 4011--A
1 (3) Nothing in this subsection shall entitle a licensee to a refund of
2 taxes previously paid.]
3 S 16. The general municipal law is amended by adding a new section 25
4 to read as follows:
5 S 25. PROCUREMENT OF EXCESS LINE INSURANCE. NOTWITHSTANDING SUBPARA-
6 GRAPH (F) OF PARAGRAPH THREE OF SUBSECTION (B) OF SECTION TWO THOUSAND
7 ONE HUNDRED EIGHTEEN OF THE INSURANCE LAW, A MUNICIPALITY WITH A POPU-
8 LATION OF LESS THAN ONE HUNDRED THOUSAND PERSONS MAY NOT REQUEST THAT AN
9 EXCESS LINE BROKER PROCURE OR PLACE INSURANCE FROM AN UNAUTHORIZED
10 INSURER UNLESS THE EXCESS LINE BROKER OBTAINS THE DECLINATIONS REQUIRED
11 BY SUBSECTION (B) OF SECTION TWO THOUSAND ONE HUNDRED EIGHTEEN OF THE
12 INSURANCE LAW.
13 S 17. Subdivision 1 of section 171-a of the tax law, as amended by
14 section 1 of part R of chapter 60 of the laws of 2004, is amended to
15 read as follows:
16 1. All taxes, interest, penalties and fees collected or received by
17 the commissioner or the commissioner's duly authorized agent under arti-
18 cles nine (except section one hundred eighty-two-a thereof and except as
19 otherwise provided in section two hundred five thereof), nine-A,
20 twelve-A (except as otherwise provided in section two hundred eighty-
21 four-d thereof), thirteen, thirteen-A (except as otherwise provided in
22 section three hundred twelve thereof), eighteen, nineteen, twenty
23 (except as otherwise provided in section four hundred eighty-two there-
24 of), twenty-one, twenty-two, twenty-six, twenty-six-B, twenty-eight
25 (except as otherwise provided in section eleven hundred two or eleven
26 hundred three thereof), twenty-eight-A, thirty-one (except as otherwise
27 provided in section fourteen hundred twenty-one thereof), thirty-two,
28 thirty-three and thirty-three-A (EXCEPT AS OTHERWISE PROVIDED IN SECTION
29 FIFTEEN HUNDRED FIFTY-SEVEN THEREOF) of this chapter shall be deposited
30 daily in one account with such responsible banks, banking houses or
31 trust companies as may be designated by the comptroller, to the credit
32 of the comptroller. Such an account may be established in one or more of
33 such depositories. Such deposits shall be kept separate and apart from
34 all other money in the possession of the comptroller. The comptroller
35 shall require adequate security from all such depositories. Of the total
36 revenue collected or received under such articles of this chapter, the
37 comptroller shall retain in the comptroller's hands such amount as the
38 commissioner may determine to be necessary for refunds or reimbursements
39 under such articles of this chapter [and article ten thereof] out of
40 which amount the comptroller shall pay any refunds or reimbursements to
41 which taxpayers shall be entitled under the provisions of such articles
42 of this chapter [and article ten thereof]. The commissioner and the
43 comptroller shall maintain a system of accounts showing the amount of
44 revenue collected or received from each of the taxes imposed by such
45 articles. The comptroller, after reserving the amount to pay such
46 refunds or reimbursements, shall, on or before the tenth day of each
47 month, pay into the state treasury to the credit of the general fund all
48 revenue deposited under this section during the preceding calendar month
49 and remaining to the comptroller's credit on the last day of such
50 preceding month, (i) except that the comptroller shall pay to the state
51 department of social services that amount of overpayments of tax imposed
52 by article twenty-two of this chapter and the interest on such amount
53 which is certified to the comptroller by the commissioner as the amount
54 to be credited against past-due support pursuant to subdivision six of
55 section one hundred seventy-one-c of this [chapter] ARTICLE, (ii) and
56 except that the comptroller shall pay to the New York state higher
S. 2811--A 37 A. 4011--A
1 education services corporation and the state university of New York or
2 the city university of New York respectively that amount of overpayments
3 of tax imposed by article twenty-two of this chapter and the interest on
4 such amount which is certified to the comptroller by the commissioner as
5 the amount to be credited against the amount of defaults in repayment of
6 guaranteed student loans and state university loans or city university
7 loans pursuant to subdivision five of section one hundred seventy-one-d
8 and subdivision six of section one hundred seventy-one-e of this [chap-
9 ter] ARTICLE, (iii) and except further that, notwithstanding any law,
10 the comptroller shall credit to the revenue arrearage account, pursuant
11 to section ninety-one-a of the state finance law, that amount of over-
12 payment of tax imposed by article nine, nine-A, twenty-two, thirty,
13 thirty-A, thirty-B, thirty-two or thirty-three of this chapter, and any
14 interest thereon, which is certified to the comptroller by the commis-
15 sioner as the amount to be credited against a past-due legally enforcea-
16 ble debt owed to a state agency pursuant to paragraph (a) of subdivision
17 six of section one hundred seventy-one-f of this article, provided,
18 however, he shall credit to the special offset fiduciary account, pursu-
19 ant to section ninety-one-c of the state finance law, any such amount
20 creditable as a liability as set forth in paragraph (b) of subdivision
21 six of section one hundred seventy-one-f of this article, (iv) and
22 except further that the comptroller shall pay to the city of New York
23 that amount of overpayment of tax imposed by article nine, nine-A, twen-
24 ty-two, thirty, thirty-A, thirty-B, thirty-two, or thirty-three of this
25 chapter and any interest thereon that is certified to the comptroller by
26 the commissioner as the amount to be credited against city of New York
27 tax warrant judgment debt pursuant to section one hundred seventy-one-l
28 of this article, (v) and except further that the comptroller shall pay
29 to a non-obligated spouse that amount of overpayment of tax imposed by
30 article twenty-two of this chapter and the interest on such amount which
31 has been credited pursuant to section one hundred seventy-one-c, one
32 hundred seventy-one-d, one hundred seventy-one-e, one hundred seventy-
33 one-f or one hundred seventy-one-l of this article and which is certi-
34 fied to the comptroller by the commissioner as the amount due such non-
35 obligated spouse pursuant to paragraph six of subsection (b) of section
36 six hundred fifty-one of this chapter; and (vi) the comptroller shall
37 deduct a like amount which the comptroller shall pay into the treasury
38 to the credit of the general fund from amounts subsequently payable to
39 the department of social services, the state university of New York, the
40 city university of New York, or the higher education services corpo-
41 ration, or the revenue arrearage account or special offset fiduciary
42 account pursuant to section ninety-one-a or ninety-one-c of the state
43 finance law, as the case may be, whichever had been credited the amount
44 originally withheld from such overpayment, and (vii) with respect to
45 amounts originally withheld from such overpayment pursuant to section
46 one hundred seventy-one-l of this article and paid to the city of New
47 York, the comptroller shall collect a like amount from the city of New
48 York.
49 S 18. Subdivision (c) of section 1550 of the tax law, as added by
50 chapter 190 of the laws of 1990, is amended to read as follows:
51 (c) The term "taxable insurance contract" means a contract of insur-
52 ance of the [type] KIND described in [paragraphs four through fourteen,
53 sixteen, seventeen, nineteen, twenty and twenty-two of] subsection (a)
54 of section [one thousand one hundred thirteen] TWO THOUSAND ONE HUNDRED
55 FIVE of the insurance law [that covers risks located or resident within
56 this state].
S. 2811--A 38 A. 4011--A
1 S 19. Section 1550 of the tax law is amended by adding a new subdivi-
2 sion (d) to read as follows:
3 (D) THE TERM "HOME STATE" MEANS:
4 (1) IN GENERAL. EXCEPT AS PROVIDED IN PARAGRAPHS TWO AND THREE OF THIS
5 SUBDIVISION, THE TERM "HOME STATE" MEANS, WITH RESPECT TO AN INSURED:
6 (A) THE STATE IN WHICH AN INSURED MAINTAINS ITS PRINCIPAL PLACE OF
7 BUSINESS OR, IN THE CASE OF AN INDIVIDUAL, THE INDIVIDUAL'S PRINCIPAL
8 RESIDENCE;
9 (B) IF ONE HUNDRED PERCENT OF THE INSURED RISK IS LOCATED OUT OF THE
10 STATE REFERRED TO IN SUBPARAGRAPH (A) OF THIS PARAGRAPH, THE STATE TO
11 WHICH THE GREATEST PERCENTAGE OF THE INSURED'S TAXABLE PREMIUM FOR THAT
12 INSURANCE CONTRACT IS ALLOCATED;
13 (C) IF MORE THAN ONE INSURED FROM AN AFFILIATED GROUP, AS DEFINED IN
14 SECTION TWO THOUSAND ONE HUNDRED ONE OF THE INSURANCE LAW, ARE NAMED
15 INSUREDS ON A SINGLE INSURANCE CONTRACT, THE HOME STATE OF THE MEMBER OF
16 THE AFFILIATED GROUP THAT HAS THE LARGEST PERCENTAGE OF PREMIUM ATTRI-
17 BUTED TO IT UNDER SUCH INSURANCE CONTRACT; OR
18 (D) IN THE CASE OF A GROUP POLICY:
19 (I) IF THE GROUP POLICYHOLDER PAYS ONE HUNDRED PERCENT OF THE PREMIUM
20 FROM ITS OWN FUNDS, THE HOME STATE, AS DETERMINED PURSUANT TO SUBPARA-
21 GRAPH (A) OF THIS PARAGRAPH, OF THE GROUP POLICYHOLDER; OR
22 (II) IF THE GROUP POLICYHOLDER DOES NOT PAY ONE HUNDRED PERCENT OF THE
23 PREMIUM FROM ITS OWN FUNDS, THE HOME STATE, AS DETERMINED PURSUANT TO
24 SUBPARAGRAPH (A) OF THIS PARAGRAPH, OF THE GROUP MEMBER;
25 (2) "PRINCIPAL PLACE OF BUSINESS" MEANS, WITH RESPECT TO DETERMINING
26 THE HOME STATE OF THE INSURED, THE STATE WHERE:
27 (A) THE INSURED MAINTAINS ITS HEADQUARTERS AND WHERE THE INSURED'S
28 HIGH-LEVEL OFFICERS DIRECT, CONTROL AND COORDINATE THE BUSINESS ACTIV-
29 ITIES; OR
30 (B) IF THE INSURED'S HIGH-LEVEL OFFICERS DIRECT, CONTROL AND COORDI-
31 NATE THE BUSINESS ACTIVITIES IN MORE THAN ONE STATE, OR IF THE INSURED'S
32 PRINCIPAL PLACE OF BUSINESS IS LOCATED OUTSIDE ANY STATE, THE STATE TO
33 WHICH THE GREATEST PERCENTAGE OF THE INSURED'S TAXABLE PREMIUM FOR THAT
34 INSURANCE CONTRACT IS ALLOCATED.
35 (3) "PRINCIPAL RESIDENCE" MEANS, WITH RESPECT TO DETERMINING THE HOME
36 STATE OF THE INSURED, THE STATE WHERE:
37 (A) THE INSURED RESIDES FOR THE GREATEST NUMBER OF DAYS DURING A
38 CALENDAR YEAR; OR
39 (B) IF THE INSURED'S PRINCIPAL RESIDENCE IS LOCATED OUTSIDE ANY STATE,
40 THE STATE TO WHICH THE GREATEST PERCENTAGE OF THE INSURED'S TAXABLE
41 PREMIUM FOR THAT INSURANCE CONTRACT IS ALLOCATED.
42 S 20. Section 1551 of the tax law, as amended by chapter 73 of the
43 laws of 1991, is amended to read as follows:
44 S 1551. Imposition of tax. (A) There is hereby imposed on any person
45 WHOSE HOME STATE IS NEW YORK AND who purchases or renews a taxable
46 insurance contract from an insurer not authorized to transact business
47 in this state under a certificate of authority from the superintendent
48 of insurance a tax at the rate of three and six-tenths percent of the
49 premiums paid or to be paid, less returns thereon, for such insurance.
50 Nothing in this article modifies or abrogates any provision of the
51 insurance law.
52 (B) NOTWITHSTANDING SUBDIVISION (A) OF THIS SECTION, IF THE SUPER-
53 INTENDENT OF INSURANCE ENTERS INTO A NONADMITTED INSURANCE MULTI-STATE
54 AGREEMENT PURSUANT TO SECTION TWO THOUSAND ONE HUNDRED THIRTY-EIGHT OF
55 THE INSURANCE LAW, THERE IS HEREBY IMPOSED ON ANY PERSON WHOSE HOME
56 STATE IS NEW YORK AND WHO PURCHASES OR RENEWS A TAXABLE INSURANCE
S. 2811--A 39 A. 4011--A
1 CONTRACT FROM AN INSURER NOT AUTHORIZED TO TRANSACT BUSINESS IN THIS
2 STATE UNDER A CERTIFICATE OF AUTHORITY FROM THE SUPERINTENDENT OF INSUR-
3 ANCE A TAX AT A RATE EQUAL TO:
4 (1) THREE AND SIX-TENTHS PERCENT OF THE GROSS PREMIUMS ALLOCATED TO
5 THIS STATE BASED ON THE ALLOCATION SCHEDULE SET FORTH IN THE NONADMITTED
6 INSURANCE MULTI-STATE AGREEMENT AND ADOPTED BY THE SUPERINTENDENT OF
7 INSURANCE PURSUANT TO A REGULATION;
8 (2) THE PERCENTAGE SPECIFIED BY EACH OTHER STATE THAT HAS EXECUTED THE
9 NONADMITTED INSURANCE MULTI-STATE AGREEMENT AND HAS NOT WITHDRAWN OR
10 DEFAULTED, ON THE PORTION OF THE PREMIUM ALLOCATED TO THAT OTHER STATE
11 BASED ON THE ALLOCATION SCHEDULE SET FORTH IN THE NONADMITTED INSURANCE
12 MULTI-STATE AGREEMENT AND ADOPTED BY THE SUPERINTENDENT OF INSURANCE
13 PURSUANT TO A REGULATION;
14 (3) THREE AND SIX-TENTHS PERCENT OF THE GROSS PREMIUMS ON ANY PORTION
15 OF THE PREMIUM NOT ALLOCATED UNDER PARAGRAPHS ONE AND TWO OF THIS SUBDI-
16 VISION.
17 S 21. Section 1552 of the tax law, as added by chapter 190 of the laws
18 of 1990, is amended to read as follows:
19 S 1552. Allocation. (A) Where the taxable insurance contract covers
20 risks located or resident both within and without this state[, the
21 amount of premiums allocable to risks resident or located within this
22 state shall be determined pursuant to rules and regulations of the
23 commissioner of taxation and finance. In promulgating such rules and
24 regulations, the commissioner of taxation and finance shall give due
25 consideration to the rules and regulations promulgated by the super-
26 intendent of insurance pursuant to subsection (b) of section nine thou-
27 sand one hundred two of the insurance law] AND THE TAXPAYER'S HOME STATE
28 IS NEW YORK, ONE HUNDRED PERCENT OF PREMIUMS SHALL BE ALLOCABLE TO THIS
29 STATE.
30 (B) NOTWITHSTANDING SUBDIVISION (A) OF THIS SECTION, IF THE SUPER-
31 INTENDENT OF INSURANCE ENTERS INTO A NONADMITTED INSURANCE MULTI-STATE
32 AGREEMENT PURSUANT TO SECTION TWO THOUSAND ONE HUNDRED THIRTY-EIGHT OF
33 THE INSURANCE LAW, THE COMMISSIONER IS AUTHORIZED TO ADOPT THE ALLO-
34 CATION SCHEDULE INCLUDED IN SUCH AGREEMENT FOR THE PURPOSE OF ALLOCATING
35 RISK AND COMPUTING THE TAX DUE ON THE PORTION OF PREMIUM ATTRIBUTABLE TO
36 EACH RISK CLASSIFICATION AND TO EACH STATE WHERE PROPERTIES, RISKS OR
37 EXPOSURES ARE LOCATED.
38 (C) IF THE SUPERINTENDENT OF INSURANCE HAS ENTERED INTO THE NONADMIT-
39 TED INSURANCE MULTI-STATE AGREEMENT, TO THE EXTENT THAT OTHER STATES
40 WHERE PORTIONS OF THE PROPERTIES, RISKS OR EXPOSURES RESIDE HAVE NOT
41 ENTERED INTO SUCH A MULTI-STATE AGREEMENT WITH THIS STATE, THE NET
42 PREMIUM TAX IMPOSED SHALL BE RETAINED BY THIS STATE IF THIS STATE IS THE
43 HOME STATE OF THE INSURED.
44 S 22. Section 1554 of the tax law is amended by adding a new subdivi-
45 sion (e) to read as follows:
46 (E) NOTWITHSTANDING ANY PROVISIONS OF THIS SECTION, THE COMMISSIONER,
47 IN CONSULTATION WITH THE SUPERINTENDENT OF INSURANCE, MAY PERMIT ANY OR
48 ALL PERSONS LIABLE FOR ANY TAX IMPOSED BY THIS ARTICLE TO FILE A RETURN
49 WITH A CLEARINGHOUSE OR OTHER ENTITY DESIGNATED BY A NONADMITTED INSUR-
50 ANCE MULTI-STATE AGREEMENT IN ACCORDANCE WITH ADMINISTRATIVE PROVISIONS
51 CONTAINED WITHIN SUCH AN AGREEMENT.
52 S 23. Section 1555 of the tax law is amended by adding a new subdivi-
53 sion (f) to read as follows:
54 (F) NOTWITHSTANDING ANY PROVISIONS OF THIS SECTION, THE COMMISSIONER
55 MAY PERMIT OTHER PERSONS OR ENTITIES TO INSPECT THE RETURNS FILED UNDER
56 THIS ARTICLE, OR MAY FURNISH TO SUCH PERSONS OR ENTITIES AN ABSTRACT OF
S. 2811--A 40 A. 4011--A
1 ANY RETURN OR SUPPLY INFORMATION CONCERNING AN ITEM CONTAINED IN ANY
2 SUCH RETURN, OR DISCLOSED BY AN INVESTIGATION OF TAX LIABILITY UNDER
3 THIS ARTICLE, IF THE PERSONS OR ENTITIES ARE ENTITLED TO HAVE SUCH
4 INFORMATION UNDER THE TERMS OF A NONADMITTED INSURANCE MULTI-STATE
5 AGREEMENT ENTERED INTO BY THE SUPERINTENDENT OF INSURANCE.
6 THE COMMISSIONER MAY, PURSUANT TO THE TERMS OF SUCH AN AGREEMENT,
7 FORWARD TO THE PROPER OFFICERS OF ANOTHER MEMBER JURISDICTION ANY INFOR-
8 MATION IN THE COMMISSIONER'S POSSESSION RELATING TO NONADMITTED INSUR-
9 ANCE PREMIUM TAXES AND MAY SHARE ANY INFORMATION RELATING TO THE ADMIN-
10 ISTRATION OF TAXES PURSUANT TO THE AGREEMENT WITH SUCH OFFICERS. THE
11 AGREEMENT MAY PROVIDE FOR EACH MEMBER JURISDICTION TO AUDIT THE RECORDS
12 OF PERSONS BASED IN THE MEMBER JURISDICTION AND DETERMINE TAXES DUE EACH
13 MEMBER JURISDICTION.
14 S 24. Section 1556 of the tax law, as added by chapter 190 of the laws
15 of 1990, is amended to read as follows:
16 S 1556. Procedural provisions. (A) The provisions of article twenty-
17 seven of this chapter shall apply to the provisions of this article in
18 the same manner and with the same force and effect as if the language of
19 such article twenty-seven had been incorporated in full into this arti-
20 cle and had expressly referred to the tax under this article, except to
21 the extent that any such provision is either inconsistent with a
22 provision of this article or is not relevant to this article.
23 (B) NONADMITTED INSURANCE MULTI-STATE AGREEMENT. IF THE SUPERINTEN-
24 DENT OF INSURANCE HAS ENTERED INTO A NONADMITTED INSURANCE MULTI-STATE
25 AGREEMENT, THE COMMISSIONER MAY PARTICIPATE IN THE CLEARINGHOUSE DESIG-
26 NATED PURSUANT TO SUCH AGREEMENT FOR THE PURPOSE OF COLLECTING AND ALLO-
27 CATING TO STATES EXCESS LINE PREMIUM TAXES AND TAXES ON INDEPENDENTLY
28 PROCURED INSURANCE, WITH REGARD TO INSURANCE PLACED WITH AN UNAUTHORIZED
29 INSURER.
30 S 25. Section 1557 of the tax law, as added by chapter 190 of the laws
31 of 1990, is amended to read as follows:
32 S 1557. Deposit and disposition of revenue. All taxes, interest and
33 penalties collected or received by the commissioner of taxation and
34 finance under this article shall be deposited and disposed of pursuant
35 to the provisions of section one hundred seventy-one-a of this chapter,
36 EXCEPT AS PROVIDED FOR BY SUBDIVISION (B) OF SECTION FIFTEEN HUNDRED
37 FIFTY-SIX OF THIS ARTICLE.
38 S 26. This act shall take effect July 21, 2011; provided, however,
39 that:
40 (1) sections one, two and three of this act shall take effect July 16,
41 2011;
42 (2) sections fourteen and twenty-four of this act shall take effect
43 immediately;
44 (3) the amendments to subsection (b) of section 2118 of the insurance
45 law made by sections ten and eleven of this act shall not affect the
46 expiration and reversion of such subsection and shall be deemed to
47 expire therewith;
48 (4) the amendments to paragraph 5 of subsection (a) of section 2130 of
49 the insurance law made by section thirteen of this act shall not affect
50 the expiration of such section and shall be deemed to expire therewith;
51 (5) a person, firm, association or corporation licensed pursuant to
52 the provisions of section 2105 of the insurance law shall make the
53 payments required by subsection (d) of section 2118 of the insurance law
54 to the superintendent of insurance on or before September 19, 2011 for
55 the taxes on the policies procured by such licensee, pursuant to such
56 license, between January 1, 2011 and July 20, 2011; and
S. 2811--A 41 A. 4011--A
1 (6) effective immediately, the addition, amendment, or repeal of any
2 rules and regulations necessary for the implementation of this act on
3 its effective date are authorized and directed to be made and completed
4 on or before such effective date.
5 PART J
6 Section 1. Section 51 of chapter 298 of the laws of 1985, amending the
7 tax law relating to the franchise tax on banking corporations imposed by
8 the tax law, authorized to be imposed by any city having a population of
9 one million or more by chapter 772 of the laws of 1966 and imposed by
10 the administrative code of the city of New York and relating to other
11 provisions of the tax law, chapter 883 of the laws of 1975 and the
12 administrative code of the city of New York which relates to such fran-
13 chise tax, as amended by chapter 67 of the laws of 2010, is amended to
14 read as follows:
15 S 51. This act shall take effect immediately and shall apply to taxa-
16 ble years beginning on or after January 1, 1985[, except that:
17 (a) sections one through eight shall not apply to taxable years begin-
18 ning on or after January 1, 2011;
19 (b) sections nine, twelve, the amendment made to paragraph 9 of
20 subsection (a) of section 1452 of the tax law by section thirteen,
21 sections fifteen, sixteen, eighteen, nineteen, twenty, twenty-three,
22 twenty-seven, thirty and thirty-two, the amendment made to paragraph 9
23 of subdivision (a) of section 11-640 of the administrative code of the
24 city of New York by section thirty-three, sections thirty-five, thirty-
25 six, thirty-eight, thirty-nine, forty, and forty-five shall not apply to
26 corporations other than savings banks and savings and loan associations
27 for taxable years beginning on or after January 1, 2011.
28 (c) sections twenty-one, twenty-two, twenty-four, forty-one and
29 forty-two shall not apply to corporations other than savings banks and
30 savings and loan associations for taxable years beginning on or after
31 January 1, 2011, provided, however, that the provisions of such sections
32 which relate to the alternative minimum tax measured by taxable assets
33 shall continue to apply to all taxpayers for taxable years beginning on
34 or after January 1, 2011;
35 (d) the amendment to the section heading and the opening paragraph of
36 section 11-643.3 of the administrative code of the city of New York made
37 by section forty-three shall not apply to corporations other than
38 savings banks and savings and loan associations for taxable years begin-
39 ning on or after January 1, 2011 with respect to those provisions of
40 such section 11-643.3 which relate to the basic tax measured by entire
41 net income; and
42 (e) section twenty-eight, and the addition of new section 11-643.5 of
43 the administrative code of the city of New York made by section forty-
44 four shall not apply to corporations other than savings banks and
45 savings and loan associations for taxable years beginning on or after
46 January 1, 2011, provided, however, that the provisions of such sections
47 which relate to the alternative minimum taxes measured by assets, issued
48 capital stock and one hundred twenty-five dollars shall continue to
49 apply to all taxpayers for taxable years beginning on or after January
50 1, 2011].
51 S 2. Subdivisions (d) and (f) of section 110 of chapter 817 of the
52 laws of 1987, amending the tax law and the environmental conservation
53 law, constituting the business tax reform and rate reduction act of
S. 2811--A 42 A. 4011--A
1 1987, as amended by chapter 67 of the laws of 2010, are amended to read
2 as follows:
3 (d) The provisions of section sixty-seven of this act except insofar
4 as it amends paragraph 10 of subsection (b) of section 1453 of the tax
5 law, seventy-one and seventy-four shall apply to taxable years beginning
6 after December 31, 1986[, provided, however, that new paragraphs 11 and
7 12 of subsection (b) of section 1453 of the tax law as added by section
8 sixty-seven of this act, the amendments made by section seventy-one of
9 this act, and new subsection (i) of section 1453 of the tax law as added
10 by section seventy-four of this act shall not apply to taxable years
11 beginning on or after January 1, 2011];
12 (f) The provisions of section one hundred four of this act shall apply
13 to taxable years beginning after December 31, 1986[, and shall not apply
14 to corporations other than savings banks and savings and loan associ-
15 ations for taxable years beginning on or after January 1, 2011,
16 provided, however, that the provisions of such section which relate to
17 the alternative minimum tax measured by taxable assets shall continue to
18 apply to all taxpayers for taxable years beginning on or after January
19 1, 2011].
20 S 3. Subdivisions (c) and (d) of section 68 of chapter 525 of the
21 laws of 1988, amending the tax law and the administrative code of the
22 city of New York relating to the imposition of taxes in the city of New
23 York, as amended by chapter 67 of the laws of 2010, are amended to read
24 as follows:
25 (c) The provisions of sections one, thirty-one, thirty-two, thirty-
26 three, thirty-six, thirty-seven, forty through forty-five, forty-seven
27 and forty-eight of this act shall apply to taxable years beginning after
28 December 31, 1986[, provided, however, that the amendments made by
29 sections thirty-six and forty-one of this act, and new subdivision (i)
30 of section 11-641 of the administrative code of the city of New York as
31 added by section forty-four of this act shall not apply to taxable years
32 beginning on or after January 1, 2011];
33 (d) The provisions of section forty-six of this act shall apply to
34 taxable years beginning after December 31, 1986[, and shall not apply to
35 corporations other than savings banks and savings and loan associations
36 for taxable years beginning on or after January 1, 2011, provided,
37 however, that the provisions of such section which relate to the alter-
38 native minimum tax measured by taxable assets shall continue to apply to
39 all taxpayers for taxable years beginning on or after January 1, 2011];
40 S 4. Paragraphs 1 and 2 of subsection (m) of section 1452 of the tax
41 law, as amended by chapter 24 of the laws of 2010, are amended to read
42 as follows:
43 (1) Notwithstanding anything to the contrary contained in this section
44 other than subsection (n) of this section, a corporation that was in
45 existence before January first, two thousand [ten] ELEVEN and was
46 subject to tax under article nine-A of this chapter for its last taxable
47 year beginning before January first, two thousand [ten] ELEVEN, shall
48 continue to be taxable under such article for all taxable years begin-
49 ning on or after January first, two thousand [ten] ELEVEN and before
50 January first, two thousand [eleven] THIRTEEN. The preceding sentence
51 shall not apply to any taxable year during which such corporation is a
52 banking corporation described in paragraphs one through eight of
53 subsection (a) of this section. Notwithstanding anything to the contrary
54 contained in this section other than subsection (n) of this section, a
55 banking corporation or corporation that was in existence before January
56 first, two thousand [ten] ELEVEN and was subject to tax under this arti-
S. 2811--A 43 A. 4011--A
1 cle for its last taxable year beginning before January first, two thou-
2 sand [ten] ELEVEN, shall continue to be taxable under this article for
3 all taxable years beginning on or after January first, two thousand
4 [ten] ELEVEN and before January first, two thousand [eleven] THIRTEEN or
5 in which the corporation satisfies the requirements for a corporation to
6 elect to be taxable under this article. Provided further, that nothing
7 in this subsection shall prohibit a corporation that elected pursuant to
8 subsection (d) of this section to be taxable under article nine-A of
9 this chapter from revoking that election in accordance with such
10 subsection (d).
11 For purposes of this paragraph, a corporation shall be considered to
12 be subject to tax under article nine-A of this chapter for a taxable
13 year if such corporation was not a taxpayer but was properly included in
14 a combined report filed pursuant to section two hundred eleven of this
15 chapter for such taxable year and a corporation shall be considered to
16 be subject to tax under this article for a taxable year if such corpo-
17 ration was not a taxpayer but was properly included in a combined return
18 filed pursuant to subsection (f) or (g) of section fourteen hundred
19 sixty-two of this article for such taxable year. A corporation that was
20 in existence before January first, two thousand [ten] ELEVEN but first
21 becomes a taxpayer in a taxable year beginning on or after January
22 first, two thousand [ten] ELEVEN and before January first, two thousand
23 [eleven] THIRTEEN, shall be considered for purposes of this paragraph to
24 have been subject to tax under article nine-A of this chapter for its
25 last taxable year beginning before January first, two thousand [ten]
26 ELEVEN if such corporation would have been subject to tax under such
27 article for such taxable year if it had been a taxpayer during such
28 taxable year. A corporation that was in existence before January first,
29 two thousand [ten] ELEVEN but first becomes a taxpayer in a taxable year
30 beginning on or after January first, two thousand [ten] ELEVEN and
31 before January first, two thousand [eleven] THIRTEEN, shall be consid-
32 ered for purposes of this paragraph to have been subject to tax under
33 this article for its last taxable year beginning before January first,
34 two thousand [ten] ELEVEN if such corporation would have been subject to
35 tax under this article for such taxable year if it had been a taxpayer
36 during such taxable year.
37 (2) Notwithstanding anything to the contrary contained in this section
38 other than subsection (n) of this section, a corporation formed on or
39 after January first, two thousand [ten] ELEVEN and before January first,
40 two thousand [eleven] THIRTEEN may elect to be subject to tax under this
41 article or under article nine-A of this chapter for its first taxable
42 year beginning on or after January first, two thousand [ten] ELEVEN and
43 before January first, two thousand [eleven] THIRTEEN in which either (i)
44 sixty-five percent or more of its voting stock is owned or controlled,
45 directly or indirectly by a financial holding company, provided the
46 corporation whose voting stock is so owned or controlled is principally
47 engaged in activities that are described in section 4(k)(4) or 4(k)(5)
48 of the federal bank holding company act of nineteen hundred fifty-six,
49 as amended and the regulations promulgated pursuant to the authority of
50 such section, or (ii) it is a financial subsidiary. An election under
51 this paragraph may not be made by a corporation described in paragraphs
52 one through eight of subsection (a) of this section or in subsection (e)
53 of this section. In addition, an election under this paragraph may not
54 be made by a corporation that is a party to a reorganization, as defined
55 in subsection (a) of section 368 of the internal revenue code of 1986,
56 as amended, of a corporation described in paragraph one of this
S. 2811--A 44 A. 4011--A
1 subsection if both corporations were sixty-five percent or more owned or
2 controlled, directly or indirectly, by the same interests at the time of
3 the reorganization.
4 An election under this paragraph must be made by the taxpayer on or
5 before the due date for filing its return (determined with regard to
6 extensions of time for filing) for the applicable taxable year. The
7 election to be taxed under article nine-A of this chapter shall be made
8 by the taxpayer by filing the report required pursuant to section two
9 hundred eleven of this chapter and the election to be taxed under this
10 article shall be made by the taxpayer by filing the return required
11 pursuant to section fourteen hundred sixty-two of this article. Any
12 election made pursuant to this paragraph shall be irrevocable and shall
13 apply to each subsequent taxable year beginning on or after January
14 first, two thousand [ten] ELEVEN and before January first, two thousand
15 [eleven] THIRTEEN, provided that the stock ownership and activities
16 requirements described in subparagraph (i) of this paragraph are met or
17 such corporation described in subparagraph (ii) of this paragraph
18 continues as a financial subsidiary.
19 S 5. Paragraphs 1 and 2 of subdivision (l) of section 11-640 of the
20 administrative code of the city of New York, as amended by chapter 24 of
21 the laws of 2010, are amended to read as follows:
22 (1) Notwithstanding anything to the contrary contained in this section
23 other than subdivision (m) of this section, a corporation that was in
24 existence before January first, two thousand [ten] ELEVEN and was
25 subject to tax under subchapter two of this chapter for its last taxable
26 year beginning before January first, two thousand [ten] ELEVEN, shall
27 continue to be taxable under such subchapter for all taxable years
28 beginning on or after January first, two thousand [ten] ELEVEN and
29 before January first, two thousand [eleven] THIRTEEN. The preceding
30 sentence shall not apply to any taxable year during which such corpo-
31 ration is a banking corporation described in paragraphs one through
32 eight of subdivision (a) of this section. Notwithstanding anything to
33 the contrary contained in this section other than subdivision (m) of
34 this section, a banking corporation or corporation that was in existence
35 before January first, two thousand [ten] ELEVEN and was subject to tax
36 under this subchapter for its last taxable year beginning before January
37 first, two thousand [ten] ELEVEN, shall continue to be taxable under
38 this subchapter for all taxable years beginning on or after January
39 first, two thousand [ten] ELEVEN and before January first, two thousand
40 [eleven] THIRTEEN or in which the corporation satisfies the requirements
41 for a corporation to elect to be taxable under this subchapter. Provided
42 further, that nothing in this subdivision shall prohibit a corporation
43 that elected pursuant to subdivision (d) of this section to be taxable
44 under subchapter two of this chapter from revoking that election in
45 accordance with subdivision (d) of this section. For purposes of this
46 paragraph, a corporation shall be considered to be subject to tax under
47 subchapter two of this chapter for a taxable year if such corporation
48 was not a taxpayer but was properly included in a combined report filed
49 pursuant to subdivision four of section 11-605 of this chapter for such
50 taxable year and a corporation shall be considered to be subject to tax
51 under this subchapter for a taxable year if such corporation was not a
52 taxpayer but was properly included in a combined report filed pursuant
53 to subdivision (f) or (g) of section 11-646 of this part for such taxa-
54 ble year. A corporation that was in existence before January first, two
55 thousand [ten] ELEVEN but first becomes a taxpayer in a taxable year
56 beginning on or after January first, two thousand [ten] ELEVEN and
S. 2811--A 45 A. 4011--A
1 before January first, two thousand [eleven] THIRTEEN, shall be consid-
2 ered for purposes of this paragraph to have been subject to tax under
3 subchapter two of this chapter for its last taxable year beginning
4 before January first, two thousand [ten] ELEVEN if such corporation
5 would have been subject to tax under such subchapter for such taxable
6 year if it had been a taxpayer during such taxable year. A corporation
7 that was in existence before January first, two thousand [ten] ELEVEN
8 but first becomes a taxpayer in a taxable year beginning on or after
9 January first, two thousand [ten] ELEVEN and before January first, two
10 thousand [eleven] THIRTEEN, shall be considered for purposes of this
11 paragraph to have been subject to tax under this subchapter for its last
12 taxable year beginning before January first, two thousand [ten] ELEVEN
13 if such corporation would have been subject to tax under this subchapter
14 for such taxable year if it had been a taxpayer during such taxable
15 year.
16 (2) Notwithstanding anything to the contrary contained in this section
17 other than subdivision (m) of this section, a corporation formed on or
18 after January first, two thousand [ten] ELEVEN and before January first,
19 two thousand [eleven] THIRTEEN may elect to be subject to tax under this
20 subchapter or under subchapter two of this chapter for its first taxable
21 year beginning on or after January first, two thousand [ten] ELEVEN and
22 before January first, two thousand [eleven] THIRTEEN in which either (i)
23 sixty-five percent or more of its voting stock is owned or controlled,
24 directly or indirectly by a financial holding company, provided the
25 corporation whose voting stock is so owned or controlled is principally
26 engaged in activities that are described in section 4(k)(4) or 4(k)(5)
27 of the federal bank holding company act of nineteen hundred fifty-six,
28 as amended and the regulations promulgated pursuant to the authority of
29 such section or (ii) it is a financial subsidiary. An election under
30 this paragraph may not be made by a corporation described in paragraphs
31 one through eight of subdivision (a) of this section or in subdivision
32 (e) of this section. In addition, an election under this paragraph may
33 not be made by a corporation that is a party to a reorganization, as
34 defined in subsection (a) of section 368 of the internal revenue code of
35 1986, as amended, of a corporation described in paragraph one of this
36 subdivision if both corporations were sixty-five percent or more owned
37 or controlled, directly or indirectly by the same interests at the time
38 of the reorganization.
39 An election under this paragraph must be made by the taxpayer on or
40 before the due date for filing its return (determined with regard to
41 extensions of time for filing) for the applicable taxable year. The
42 election to be taxed under subchapter two of this chapter shall be made
43 by the taxpayer by filing the return required pursuant to subdivision
44 one of section 11-605 of this chapter and the election to be taxed under
45 this subchapter shall be made by the taxpayer by filing the return
46 required pursuant to subdivision (a) of section 11-646 of this part. Any
47 election made pursuant to this paragraph shall be irrevocable and shall
48 apply to each subsequent taxable year beginning on or after January
49 first, two thousand [ten] ELEVEN and before January first, two thousand
50 [eleven] THIRTEEN, provided that the stock ownership and activities
51 requirements described in subparagraph (i) of this paragraph are met or
52 such corporation described in subparagraph (ii) of this paragraph
53 continues as a financial subsidiary.
54 S 6. Subparagraph (iv) of paragraph 2 of subdivision (f) of section
55 1462 of the tax law, as amended by chapter 24 of the laws of 2010, is
56 amended to read as follows:
S. 2811--A 46 A. 4011--A
1 (iv) (A) Notwithstanding any provision of this paragraph, any bank
2 holding company exercising its corporate franchise or doing business in
3 the state may make a return on a combined basis without seeking the
4 permission of the commissioner with any banking corporation exercising
5 its corporate franchise or doing business in the state in a corporate or
6 organized capacity sixty-five percent or more of whose voting stock is
7 owned or controlled, directly or indirectly, by such bank holding compa-
8 ny, for the first taxable year beginning on or after January first, two
9 thousand and before January first, two thousand [eleven] THIRTEEN during
10 which such bank holding company registers for the first time under the
11 federal bank holding company act, as amended, and also elects to be a
12 financial holding company. In addition, for each subsequent taxable year
13 beginning after January first, two thousand and before January first,
14 two thousand [eleven] THIRTEEN, any such bank holding company may file
15 on a combined basis without seeking the permission of the commissioner
16 with any banking corporation that is exercising its corporate franchise
17 or doing business in the state and sixty-five percent or more of whose
18 voting stock is owned or controlled, directly or indirectly, by such
19 bank holding company if either such banking corporation is exercising
20 its corporate franchise or doing business in the state in a corporate or
21 organized capacity for the first time during such subsequent taxable
22 year, or sixty-five percent or more of the voting stock of such banking
23 corporation is owned or controlled, directly or indirectly, by such bank
24 holding company for the first time during such subsequent taxable year.
25 Provided however, for each subsequent taxable year beginning after Janu-
26 ary first, two thousand and before January first, two thousand [eleven]
27 THIRTEEN, a banking corporation described in either of the two preceding
28 sentences which filed on a combined basis with any such bank holding
29 company in a previous taxable year, must continue to file on a combined
30 basis with such bank holding company if such banking corporation, during
31 such subsequent taxable year, continues to exercise its corporate fran-
32 chise or do business in the state in a corporate or organized capacity
33 and sixty-five percent or more of such banking corporation's voting
34 stock continues to be owned or controlled, directly or indirectly, by
35 such bank holding company, unless the permission of the commissioner has
36 been obtained to file on a separate basis for such subsequent taxable
37 year. Provided further, however, for each subsequent taxable year begin-
38 ning after January first, two thousand and before January first, two
39 thousand [eleven] THIRTEEN, a banking corporation described in either of
40 the first two sentences of this clause which did not file on a combined
41 basis with any such bank holding company in a previous taxable year, may
42 not file on a combined basis with such bank holding company during any
43 such subsequent taxable year unless the permission of the commissioner
44 has been obtained to file on a combined basis for such subsequent taxa-
45 ble year.
46 (B) Notwithstanding any provision of this paragraph other than clause
47 (A) of this subparagraph, the commissioner may not require a bank hold-
48 ing company which, during a taxable year beginning on or after January
49 first, two thousand and before January first, two thousand [eleven]
50 THIRTEEN, registers for the first time during such taxable year under
51 the federal bank holding company act, as amended, and also elects to be
52 a financial holding company, to make a return on a combined basis for
53 any taxable year beginning on or after January first, two thousand and
54 before January first, two thousand [eleven] THIRTEEN with a banking
55 corporation sixty-five percent or more of whose voting stock is owned or
56 controlled, directly or indirectly, by such bank holding company.
S. 2811--A 47 A. 4011--A
1 S 7. Subparagraph (iv) of paragraph 2 of subdivision (f) of section
2 11-646 of the administrative code of the city of New York, as amended by
3 chapter 24 of the laws of 2010, is amended to read as follows:
4 (iv) (A) Notwithstanding any provision of this paragraph, any bank
5 holding company exercising its corporate franchise or doing business in
6 the city may make a return on a combined basis without seeking the
7 permission of the commissioner with any banking corporation exercising
8 its corporate franchise or doing business in the city in a corporate or
9 organized capacity sixty-five percent or more of whose voting stock is
10 owned or controlled, directly or indirectly, by such bank holding compa-
11 ny, for the first taxable year beginning on or after January first, two
12 thousand and before January first, two thousand [eleven] THIRTEEN during
13 which such bank holding company registers for the first time under the
14 federal bank holding company act, as amended, and also elects to be a
15 financial holding company. In addition, for each subsequent taxable year
16 beginning after January first, two thousand and before January first,
17 two thousand [eleven] THIRTEEN, any such bank holding company may file
18 on a combined basis without seeking the permission of the commissioner
19 with any banking corporation that is exercising its corporate franchise
20 or doing business in the city and sixty-five percent or more of whose
21 voting stock is owned or controlled, directly or indirectly, by such
22 bank holding company if either such banking corporation is exercising
23 its corporate franchise or doing business in the city in a corporate or
24 organized capacity for the first time during such subsequent taxable
25 year, or sixty-five percent or more of the voting stock of such banking
26 corporation is owned or controlled, directly or indirectly, by such bank
27 holding company for the first time during such subsequent taxable year.
28 Provided however, for each subsequent taxable year beginning after Janu-
29 ary first, two thousand and before January first, two thousand [eleven]
30 THIRTEEN, a banking corporation described in either of the two preceding
31 sentences which filed on a combined basis with any such bank holding
32 company in a previous taxable year, must continue to file on a combined
33 basis with such bank holding company if such banking corporation, during
34 such subsequent taxable year, continues to exercise its corporate fran-
35 chise or do business in the city in a corporate or organized capacity
36 and sixty-five percent or more of such banking corporation's voting
37 stock continues to be owned or controlled, directly or indirectly, by
38 such bank holding company, unless the permission of the commissioner has
39 been obtained to file on a separate basis for such subsequent taxable
40 year. Provided further, however, for each subsequent taxable year begin-
41 ning after January first, two thousand and before January first, two
42 thousand [eleven] THIRTEEN, a banking corporation described in either of
43 the first two sentences of this clause which did not file on a combined
44 basis with any such bank holding company in a previous taxable year, may
45 not file on a combined basis with such bank holding company during any
46 such subsequent taxable year unless the permission of the commissioner
47 has been obtained to file on a combined basis for such subsequent taxa-
48 ble year.
49 (B) Notwithstanding any provision of this paragraph other than clause
50 (A) of this subparagraph, the commissioner may not require a bank hold-
51 ing company which, during a taxable year beginning on or after January
52 first, two thousand and before January first, two thousand [eleven]
53 THIRTEEN, registers for the first time during such taxable year under
54 the federal bank holding company act, as amended, and also elects to be
55 a financial holding company, to make a return on a combined basis for
56 any taxable year beginning on or after January first, two thousand and
S. 2811--A 48 A. 4011--A
1 before January first, two thousand [eleven] THIRTEEN with a banking
2 corporation sixty-five percent or more of whose voting stock is owned or
3 controlled, directly or indirectly, by such bank holding company.
4 S 8. This act shall take effect immediately.
5 PART K
6 Section 1. Paragraph b of subdivision 1, subdivisions 2, 6, 14, 22 and
7 23 of section 282 of the tax law, paragraph b of subdivision 1 and
8 subdivision 14 as amended by chapter 245 of the laws of 1989, subdivi-
9 sion 2 as amended by chapter 509 of the laws of 1937, subdivision 6 as
10 amended by chapter 261 of the laws of 1988 and subdivisions 22 and 23 as
11 added by section 1 of part W-1 of chapter 109 of the laws of 2006, are
12 amended to read as follows:
13 b. With respect to Diesel motor fuel, "distributor" means any person,
14 firm, association or corporation (i) who or which imports or causes to
15 be imported into the state, for use, distribution, storage or sale with-
16 in the state, any Diesel motor fuel; (ii) who or which produces,
17 refines, manufactures or compounds Diesel motor fuel within the state;
18 (iii) [who or which engages in the enhancement of Diesel motor fuel in
19 this state; (iv)] who or which makes a sale or use of Diesel motor fuel
20 in this state other than: (A) a retail sale not in bulk or (B) the self-
21 use of Diesel motor fuel which has been the subject of a retail sale to
22 such person; [(v)] (IV) who or which is registered by the department [of
23 taxation and finance] as a distributor of kero-jet fuel pursuant to the
24 provisions of subdivision two of section two hundred eighty-two-a of
25 this article. For the purposes of this article when used with respect to
26 Diesel motor fuel, a "retail sale not in bulk" means the making or
27 offering to make any sale of Diesel motor fuel to a consumer of such
28 fuel which is delivered directly into a motor vehicle for use in the
29 operation of such vehicle. A "retail sale in bulk" means the making or
30 offering to make any sale of Diesel motor fuel to a consumer which is
31 other than a "retail sale not in bulk". Motor fuel or Diesel motor fuel
32 brought into the state in the ordinary fuel tank connecting with the
33 engine of a motor vehicle, aeroplane, motor boat or other conveyance
34 propelled by the use of such motor fuel or Diesel motor fuel, and to be
35 used only in the operation thereof, shall not be deemed imported within
36 the meaning of this article, if not removed from such tank except as
37 used in the propulsion of such engine.
38 2. "Motor fuel" means gasoline, benzol, REFORMULATED BLEND STOCK FOR
39 OXYGENATE BLENDING, CONVENTIONAL BLEND STOCK FOR OXYGENATE BLENDING,
40 E85, FUEL GRADE ETHANOL THAT MEETS THE ASTM INTERNATIONAL ACTIVE STAND-
41 ARDS SPECIFICATIONS D4806 OR D4814 or other product[, except kerosene
42 and crude oil,] which is suitable for use in operation of a motor vehi-
43 cle engine[, but if kerosene or crude oil is compounded or mixed with
44 any other product or products, and the resulting compound or mixture is
45 suitable for use in the operation of any such motor vehicle engine, such
46 resulting compound or mixture in its entirety shall be a "motor fuel."].
47 6. "Filling station" shall include any place, location or station
48 where motor fuel [or], HIGHWAY Diesel motor fuel OR WATER-WHITE KEROSENE
49 (EXCLUSIVELY FOR HEATING PURPOSES IN CONTAINERS OF NO MORE THAN TWENTY
50 GALLONS), is offered for sale at retail.
51 14. "Diesel motor fuel" shall mean NO. 1 DIESEL FUEL, NO. 2 DIESEL
52 FUEL, BIODIESEL, kerosene, crude oil, fuel oil or other middle distil-
53 late and also motor fuel suitable for use in the operation of an engine
54 of the diesel type, excluding, however, any product specifically desig-
S. 2811--A 49 A. 4011--A
1 nated "No. 4 Diesel fuel" and not suitable as a fuel used in the opera-
2 tion of a motor vehicle engine.
3 22. "E85" means a [mixture consisting by volume of eighty-five
4 percent] FUEL BLEND CONSISTING OF ethanol and [the remainder of which
5 is] motor fuel, WHICH MEETS THE ASTM INTERNATIONAL ACTIVE STANDARD D5798
6 FOR FUEL ETHANOL.
7 23. "B20" means a mixture consisting by volume of twenty percent biod-
8 iesel and the remainder of which is diesel motor fuel. [For purposes of
9 this subdivision "biodiesel"] "BIODIESEL" shall mean EITHER "QUALIFIED
10 BIODIESEL" OR "UNQUALIFIED BIODIESEL." "QUALIFIED BIODIESEL" MEANS a
11 diesel motor fuel substitute produced from nonpetroleum renewable
12 resources that meets the registration requirements for fuels and fuel
13 additives established by the Environmental Protection Agency under
14 section 211 of the Clean Air Act (42 U.S.C. 7545) and that meets the
15 [American Society for Testing and Materials D6751-02a Standard Specifi-
16 cation for Biodiesel Fuel (B100) Blend Stock for Distillate Fuels] ASTM
17 INTERNATIONAL ACTIVE STANDARD D6751 FOR BIODIESEL FUEL. "UNQUALIFIED
18 BIODIESEL" MEANS A DIESEL MOTOR FUEL SUBSTITUTE PRODUCED FROM NONPETRO-
19 LEUM RENEWABLE RESOURCES THAT DOES NOT MEET THE ASTM INTERNATIONAL
20 ACTIVE STANDARD D6751 FOR BIODIESEL FUEL.
21 S 1-a. Subdivision 15 of section 282 of the tax law is REPEALED.
22 S 2. Subdivision 16 of section 282 of the tax law is REPEALED and two
23 new subdivisions 16 and 16-a are added to read as follows:
24 16. "NON-HIGHWAY DIESEL MOTOR FUEL" MEANS ANY DIESEL MOTOR FUEL THAT
25 IS DESIGNATED FOR USE OTHER THAN ON A PUBLIC HIGHWAY (EXCEPT FOR THE USE
26 OF THE PUBLIC HIGHWAY BY FARMERS TO REACH ADJACENT LANDS), AND IS DYED
27 DIESEL MOTOR FUEL AS DEFINED IN SUBDIVISION EIGHTEEN-A OF THIS SECTION.
28 16-A. "HIGHWAY DIESEL MOTOR FUEL" MEANS ANY DIESEL MOTOR FUEL WHICH IS
29 NOT NON-HIGHWAY DIESEL MOTOR FUEL.
30 S 3. Subdivision 18 of section 282 of the tax law, as added by chapter
31 302 of the laws of 2006, is renumbered subdivision 18-a and is amended
32 to read as follows:
33 18-a. "Dyed Diesel motor fuel" means Diesel motor fuel which [is
34 enhanced Diesel motor fuel and which] has been dyed in accordance with
35 and for the purpose of complying with the provisions of 26 USC S4082(a)
36 and the regulations thereunder, as may be amended from time to time.
37 S 4. Section 282 of the tax law is amended by adding a new subdivision
38 26 to read as follows:
39 26. "PUBLIC HIGHWAY" MEANS PUBLIC HIGHWAY AS DEFINED IN SUBDIVISION
40 SIX OF SECTION FIVE HUNDRED ONE OF THIS CHAPTER.
41 S 5. Subdivisions 2, 3, 4 and 5 of section 282-a of the tax law,
42 subdivision 2 and paragraph (b) of subdivision 3 as amended by chapter
43 245 of the laws of 1989, subdivisions 3, 4 and 5 as added by chapter 261
44 of the laws of 1988 and paragraph (c) of subdivision 3 as added by chap-
45 ter 302 of the laws of 2006, are amended to read as follows:
46 2. No person shall [engage] SELL OR USE DIESEL MOTOR FUEL within this
47 state [in the enhancement of Diesel motor fuel, make a sale or use of
48 Diesel motor fuel] (other than a retail sale not in bulk or self-use of
49 Diesel motor fuel which has been the subject of a retail sale), import
50 or cause the importation of Diesel motor fuel into the state or produce,
51 refine, manufacture or compound Diesel motor fuel within the state
52 unless such person shall be registered by the department [of taxation
53 and finance] as a distributor of Diesel motor fuel. Provided, the
54 commissioner [of taxation and finance] shall not register as a distribu-
55 tor of Diesel motor fuel any person who is engaged solely in one or both
56 of the following: (i) any person who makes or offers to make a retail
S. 2811--A 50 A. 4011--A
1 sale not in bulk of such fuel or (ii) any person who purchases Diesel
2 motor fuel in bulk in this state for the sole purpose of self-use. The
3 commissioner may, however, register as a distributor of kero-jet fuel
4 only a fixed base operator who makes no sales of kero-jet fuel other
5 than retail sales not in bulk delivered directly into the fuel tank of
6 an airplane for use in the operation of such airplane and who makes no
7 other sales of diesel motor fuel. Such registration shall apply only to
8 the wholesale purchase of kero-jet fuel and the retail sale of such fuel
9 not in bulk for delivery directly into the fuel tank of an airplane for
10 use in the operation thereof. Provided, further, that if the commission-
11 er is satisfied that full registration is not necessary in order to
12 protect tax revenues, the commissioner may limit or modify the require-
13 ment of registration as a distributor with respect to any person other-
14 wise required to register solely because such person engages in the sale
15 of NON-HIGHWAY Diesel motor fuel where such person makes sales of
16 NON-HIGHWAY Diesel motor fuel to the consumer solely for the purposes
17 described in subparagraph (i) of paragraph (b) of subdivision three of
18 this section, provided that if the commissioner so limits or modifies
19 such registration requirement with respect to such person, then such
20 registration shall apply only to the importation, sale and distribution
21 of SUCH NON-HIGHWAY Diesel motor fuel [for the purposes described in
22 such subparagraph (i)]. The commissioner [of taxation and finance] may
23 also waive any other requirement imposed by this article on such a
24 distributor. All the provisions of section two hundred eighty-three of
25 this article shall apply to applicants for registration and registrants
26 with respect to Diesel motor fuel, and, in addition, distributors with
27 respect to Diesel motor fuel shall be subject to all other provisions of
28 this article relating to distributors of motor fuel, including but not
29 limited to, the keeping of records, the fixing, determination and
30 payment of tax and filing of returns. PROVIDED, FURTHER, THE COMMISSION-
31 ER MAY LIMIT OR MODIFY THE REQUIREMENT OF REGISTRATION AS A DISTRIBUTOR
32 WITH RESPECT TO ANY PERSON WHO PRODUCES FOR SELF USE "UNQUALIFIED BIOD-
33 IESEL."
34 3. (a) The tax imposed by this section shall not apply to the sale of
35 untaxed Diesel motor fuel to or the use of such fuel by an organization
36 described in paragraph one or two of subdivision (a) of section eleven
37 hundred sixteen of this chapter where such Diesel motor fuel is used by
38 such organization for its own use or consumption.
39 (b) The tax on the [incident] INCIDENCE of sale or use imposed by
40 subdivision one of this section shall not apply to: (i) the sale [to] or
41 use [by the consumer of previously untaxed Diesel motor fuel which is
42 not enhanced Diesel motor fuel and which is used exclusively for heating
43 purposes or for the purpose of use or consumption directly and exclu-
44 sively in the production of tangible personal property, gas, electric-
45 ity, refrigeration or steam, for sale,] OF NON-HIGHWAY DIESEL MOTOR
46 FUEL, but only if all of such fuel is consumed other than on the PUBLIC
47 highways of this state (EXCEPT FOR THE USE OF THE PUBLIC HIGHWAY BY
48 FARMERS TO REACH ADJACENT FARMLANDS); provided, however, this exemption
49 shall in no event apply to a sale of NON-HIGHWAY Diesel motor fuel which
50 involves a delivery at a filling station or into a repository which is
51 equipped with a hose or other apparatus by which such fuel can be
52 dispensed into the fuel tank of a motor vehicle (EXCEPT FOR DELIVERY AT
53 A FARM SITE WHICH QUALIFIES FOR THE EXEMPTION UNDER SUBDIVISION (G) OF
54 SECTION THREE HUNDRED ONE-B OF THIS CHAPTER); or (ii) [the sale of
55 previously untaxed Diesel motor fuel which is not enhanced Diesel motor
56 fuel to a person registered under this article as a distributor of
S. 2811--A 51 A. 4011--A
1 Diesel motor fuel other than (A) a retail sale to such person or (B) a
2 sale to such person which involves a delivery at a filling station or
3 into a repository which is equipped with a hose or other apparatus by
4 which such fuel can be dispensed into the fuel tank of a motor vehicle;
5 or (iii) a sale or use of enhanced Diesel motor fuel to or by a consumer
6 exclusively for the purposes of heating specified in subparagraph (i) of
7 this paragraph but only if such enhanced Diesel motor fuel is delivered
8 into a storage tank which is not equipped with a hose or other apparatus
9 by which such fuel can be dispensed into the fuel tank of a motor vehi-
10 cle and such storage tank is attached to the heating unit burning such
11 fuel, provided that each delivery of such fuel of over four thousand
12 five hundred gallons shall be evidenced by a certificate signed by the
13 purchaser stating that the product will be used exclusively for heating
14 purposes; or (iv) a sale or use consisting of no more than four thousand
15 five hundred gallons of Diesel motor fuel in a thirty-day period to or
16 by a consumer who purchases or uses such fuel for use or consumption
17 directly and exclusively in the production for sale of tangible personal
18 property by farming but only if all of such fuel is delivered on the
19 farm site and is consumed other than on the highways of this state
20 (except for the use of the highway to reach adjacent farmlands)
21 provided, however, a farmer may purchase more than four thousand five
22 hundred gallons of Diesel motor fuel in a thirty-day period for such use
23 or consumption exempt from the tax in accordance with prior clearance
24 given by the commissioner of taxation and finance; or (v)] a sale to the
25 consumer consisting of not more than twenty gallons of water-white kero-
26 sene to be used and consumed exclusively for heating purposes; or [(vi)]
27 (III) the sale to or delivery at a filling station or other retail
28 vendor of water-white kerosene provided such filling station or other
29 retail vendor only sells such water-white kerosene exclusively for heat-
30 ing purposes in containers of no more than twenty gallons; or [(vii)]
31 (IV) a sale of kero-jet fuel to an airline for use in its airplanes or a
32 use of kero-jet fuel by an airline in its airplanes; or [(viii)] (V) a
33 sale of kero-jet fuel by a registered distributor of Diesel motor fuel
34 to a fixed base operator registered under this article as a distributor
35 of kero-jet fuel only where such fixed base operator is engaged solely
36 in making or offering to make retail sales not in bulk of kero-jet fuel
37 directly into the fuel tank of an airplane for the purpose of operating
38 such airplane; or [(ix)] (VI) a retail sale not in bulk of kero-jet fuel
39 by a fixed base operator registered under this article as a distributor
40 of kero-jet fuel only where such fuel is delivered directly into the
41 fuel tank of an airplane for use in the operation of such airplane.
42 (c) [Limited exemptions for dyed Diesel motor fuel. (i) The tax
43 imposed by this section shall not apply to: (A) the sale of dyed Diesel
44 motor fuel by the importer to a purchaser under the circumstances and
45 subject to the terms and conditions as follows: (1) the importer and
46 purchaser are each registered under this article as a full Diesel motor
47 fuel distributor; (2) such importer has imported the enhanced Diesel
48 motor fuel, which is the subject of the sale, into the state and has
49 dyed such fuel to comply with the provisions of 26 USC S 4082(a) and the
50 regulations thereunder, as may be amended from time to time; (3) the
51 purchaser is a holder of a currently valid direct payment permit issued
52 pursuant to section two hundred eighty-three-d of this article; and (4)
53 such purchaser is primarily engaged in the retail heating oil business
54 and such dyed Diesel motor fuel will be sold by such purchaser in a
55 retail sale to a consumer for use solely as residential or commercial
56 heating oil; (B) a first sale of the dyed Diesel motor fuel, which as
S. 2811--A 52 A. 4011--A
1 the subject of an exempt sale described in clause (A) of this subpara-
2 graph, by the purchaser described therein to a purchaser likewise hold-
3 ing a currently valid direct pay permit under the circumstances and
4 subject to the terms and conditions as follows: (1) the sale of such
5 second purchaser by such first purchaser is the first and only sale of
6 such dyed Diesel motor fuel by such first purchaser; (2) such second
7 purchaser is primarily engaged in the retail heating oil business and
8 such dyed Diesel motor fuel will be sold by such second purchaser in a
9 retail sale to a consumer for use solely as residential or commercial
10 heating oil; (3) on the sale to the second purchaser, such first
11 purchaser described in such clause (A) attaches to the invoice a copy of
12 the invoice given by the importer on the exempt sale described in such
13 clause (A), so as to identify the origin of the dyed Diesel fuel which
14 is the subject of the sale to such second purchaser; and (4) such second
15 purchaser certifies that such dyed Diesel motor fuel is to be sold by it
16 only to a consumer for use solely as residential or commercial heating
17 oil. (ii) Prior to, or at the time of, such sale of such dyed Diesel
18 motor fuel described in clause (A) or (B) of subparagraph (i) of this
19 paragraph, the purchaser shall give a certificate to the seller setting
20 forth the intended use of the dyed Diesel motor fuel which is sought to
21 be qualified for exemption under this paragraph, that the purchaser has
22 been issued a direct payment permit which is currently valid, that such
23 permit has not been suspended or revoked and that the purchaser other-
24 wise meets the qualifications of this paragraph. (iii) The limited
25 exemptions allowed under this paragraph shall in no event apply to any
26 dyed Diesel motor fuel which is delivered into a repository equipped
27 with hose or other apparatus capable of being used to dispense fuel into
28 the fuel tank of a motor vehicle, or where the purchaser's direct
29 payment permit has been suspended or revoked and the commissioner has
30 made generally available the identity of those persons whose direct
31 payment permits have been suspended or revoked.] NOTHING IN THIS ARTICLE
32 SHALL EXEMPT NON-HIGHWAY DIESEL MOTOR FUEL FROM THE IMPOSITION OF THE
33 TAX UNDER THIS SECTION, IF SUCH NON-HIGHWAY DIESEL MOTOR FUEL IS
34 INTENDED FOR USE ON THE WATERWAYS OF THE STATE INCLUDING ANY OTHER
35 WATERWAYS BORDERING ON THE STATE, FOR OPERATING PLEASURE OR RECREATIONAL
36 MOTOR BOATS THEREON.
37 4. The tax imposed by this section on Diesel motor fuel shall be
38 passed through by the seller and included as part of the selling price
39 to each purchaser of such fuel. Provided, however, the amount of the tax
40 imposed by this section may be excluded from the selling price of Diesel
41 motor fuel where (i) a sale of Diesel motor fuel is made to an organiza-
42 tion described in paragraph (a) of subdivision three of this section
43 solely for the purpose stated therein; (ii) a sale of [enhanced]
44 NON-HIGHWAY Diesel motor fuel is made to a consumer [exclusively for the
45 purposes of heating specified in subparagraph (i) of paragraph (b) of
46 subdivision three of this section] but only if such [enhanced] NON-HIGH-
47 WAY Diesel motor fuel is NOT DELIVERED TO A FILLING STATION, NOR deliv-
48 ered into a storage tank which is [not] equipped with a hose or other
49 apparatus by which such fuel can be dispensed into the fuel tank of a
50 motor vehicle [and such storage tank is attached to the heating unit
51 burning such fuel, provided that each delivery of such fuel of over four
52 thousand five hundred gallons shall be evidenced by a certificate signed
53 by the purchaser stating that the product will be used exclusively for
54 heating purposes; (iii) a sale is made consisting of no more than four
55 thousand five hundred gallons (or a greater amount which has been given
56 prior clearance by the commissioner of taxation and finance) of Diesel
S. 2811--A 53 A. 4011--A
1 motor fuel in a thirty-day period to a consumer who purchases such fuel
2 for use or consumption directly and exclusively in the production for
3 sale of tangible personal property by farming but only if all of such
4 fuel is consumed other than on the highways or waterways of this state];
5 or [(iv)] (III) the sale to or delivery at a filling station or other
6 retail vendor of water-white kerosene provided such filling station or
7 other retail vendor only sells such water-white kerosene exclusively for
8 heating purposes in containers of no more than twenty gallons; or [(v)]
9 (IV) a sale of kero-jet fuel is made to an airline for use in its
10 airplanes.
11 5. All the provisions of this article relating to the administration
12 and collection of the taxes on motor fuel, except sections two hundred
13 eighty-three-a and two hundred eighty-three-b of this article, shall be
14 applicable to the tax imposed by this section with such limitation as
15 specifically provided for in this article with respect to Diesel motor
16 fuel and with such modification as may be necessary to adapt the
17 language of such provisions to the tax imposed by this section. With
18 respect to the bond or other security required by subdivision three of
19 section two hundred eighty-three of this article, the commissioner [of
20 taxation and finance], in determining the amount of bond or other secu-
21 rity required for the purpose of securing tax payments, shall take into
22 account the volume of [heating fuel] NON-HIGHWAY DIESEL MOTOR FUEL and
23 other Diesel motor fuel sold for exempt purposes by a distributor of
24 Diesel motor fuel during prior periods as a factor reducing potential
25 tax liability along with any other relevant factors in determining the
26 amount of security required. With respect to the bond required to be
27 filed prior to registration as a Diesel motor fuel distributor, no bond
28 shall be required of an applicant upon a finding of the applicant's
29 fiscal responsibility, as reflected by such factors as net worth,
30 current assets and liabilities, and tax reporting and payment history,
31 and the department shall not provide for a minimum bond of every appli-
32 cant.
33 S 6. Subdivision 7 of section 283 of the tax law, as amended by chap-
34 ter 261 of the laws of 1988, is amended to read as follows:
35 7. Temporary restraining order and permanent [injuction] INJUNCTION
36 against unlawful importation and forfeiture of unlawfully imported or
37 produced [automotive] MOTOR FUEL OR DIESEL MOTOR fuel. (a) Whenever
38 evidence is furnished by the commissioner [of taxation and finance] to
39 any justice of the supreme court, in court or at chambers, showing that
40 any person not registered as a distributor as required by this article
41 has imported [automotive fuel] MOTOR FUEL OR DIESEL MOTOR FUEL into this
42 state or caused [automotive] MOTOR FUEL OR DIESEL MOTOR fuel to be
43 imported into this state or has produced, refined, manufactured or
44 compounded [automotive fuel or has subjected diesel motor fuel to the
45 process of enhancement within this state] MOTOR FUEL OR DIESEL MOTOR
46 FUEL, such justice may make a temporary order without notice prohibiting
47 such person and his agents from selling, transferring or otherwise
48 disposing of any such fuel or any fuel and also prohibiting all other
49 persons in possession of or having control over the same from selling,
50 releasing, transferring or otherwise disposing of any [automotive fuel]
51 MOTOR FUEL OR DIESEL MOTOR FUEL imported, produced, refined, manufac-
52 tured, compounded, [enhanced,] sold or transferred by such person not so
53 registered pending a hearing for a preliminary injunction.
54 (b) Upon granting a temporary order, the court shall direct that a
55 hearing be held at the earliest possible time upon such notice and
56 service as the court shall direct and at the same time, if such action
S. 2811--A 54 A. 4011--A
1 has not yet been commenced, the commissioner [of taxation and finance]
2 shall commence an action in supreme court for a permanent injunction and
3 forfeiture of [automotive fuel] MOTOR FUEL OR DIESEL MOTOR FUEL pursuant
4 to paragraph (c) of this subdivision. Where, after such opportunity for
5 a hearing, the court determines that there is a substantial probability
6 that the commissioner will prevail in such action, the court shall grant
7 a preliminary injunction restraining the sale, release, transfer or
8 other disposition of fuel subject to the temporary order.
9 (c) (1) If it is established by clear and convincing evidence that
10 [automotive fuel] MOTOR FUEL OR DIESEL MOTOR FUEL was imported, caused
11 to be imported, produced, refined, manufactured or compounded [or diesel
12 motor fuel was subjected to the process of enhancement] by any person
13 not registered as a distributor as required by this article, the court
14 shall grant a judgment (i) permanently enjoining such person and his
15 agents from selling, transferring or otherwise disposing of any such
16 fuel or any fuel within this state and (ii) declaring the forfeiture of
17 any fuel that was so imported, caused to be imported, produced, refined,
18 manufactured, OR compounded [or enhanced] by such person.
19 (2) With respect to [automotive fuel] MOTOR FUEL OR DIESEL MOTOR FUEL
20 that was imported, caused to be imported, produced, refined, manufac-
21 tured or compounded, [or diesel motor fuel that was subjected to the
22 process of enhancement] by a person not registered as a distributor as
23 required by this article or that was unlawfully sold or transferred by
24 such person, if it is established by clear and convincing evidence that
25 any other person in possession of or having control over such fuel was
26 not a purchaser or transferee in good faith of such fuel with respect to
27 the fact that such fuel was so imported, caused to be imported,
28 produced, refined, manufactured, OR compounded [or enhanced] by a person
29 not registered as a distributor as required by this article or that such
30 fuel was so unlawfully sold or transferred by such person, the court
31 shall grant a judgment (i) permanently enjoining such other person and
32 his OR HER agents from selling, releasing, transferring or otherwise
33 disposing of any such fuel and (ii) declaring the forfeiture of such
34 fuel in the possession or under the control of such other person.
35 (d) The commissioner may, at any time subsequent to the granting of
36 the temporary order pursuant to paragraph (a) of this subdivision, in
37 his OR HER sole discretion consent to a sale of [automotive fuel] MOTOR
38 FUEL OR DIESEL MOTOR FUEL subject to such temporary order which is in
39 the possession or under the control of a person other than the person or
40 the agent of the person who imported, caused to be imported, produced,
41 refined, manufactured, compounded [or enhanced] or unlawfully sold or
42 transferred such fuel. As a condition of granting permission to a sale
43 of [automotive fuel] MOTOR FUEL OR DIESEL MOTOR FUEL pursuant to this
44 subdivision, the commissioner shall require the payment of all taxes,
45 penalties and interest imposed by and pursuant to the authority of this
46 chapter with respect to such fuel.
47 (e) (1) At any time during the pendency of an action under this
48 section, the [automotive fuel] MOTOR FUEL OR DIESEL MOTOR FUEL subject
49 to a temporary, preliminary or permanent order hereunder may be released
50 from the scope of such order if there is given an undertaking, in an
51 amount equal to the market value of such fuel plus state excise and
52 sales taxes and federal excise taxes, to the effect that there will be
53 paid to the commissioner the amount of the market value of such fuel and
54 such taxes in the event that such fuel is adjudged forfeited.
S. 2811--A 55 A. 4011--A
1 (2) Any person enjoined by a temporary order or a preliminary injunc-
2 tion issued pursuant to this subdivision may move at any time, on
3 notice, to vacate or modify it.
4 (f) The procedures of the civil practice law and rules applicable to
5 temporary restraining orders, preliminary injunctions and permanent
6 injunctions not inconsistent with this subdivision shall apply to tempo-
7 rary orders, preliminary injunctions and permanent injunctions issued
8 under this subdivision and any provision of this subdivision which is
9 not in accord with the constitutional mandate of such procedures of the
10 civil practice law and rules shall be deemed to be modified as necessary
11 to accord with such a mandate. The procedural provisions set forth in
12 paragraph three of subdivision (d) and in subdivision (j) of section
13 eighteen hundred forty-eight of this chapter shall apply to the forfei-
14 ture proceedings under this subdivision and, in respect to a declaration
15 of forfeiture under this subdivision, the court shall direct the commis-
16 sioner to sell or otherwise dispose of such forfeited [automotive fuel]
17 MOTOR FUEL OR DIESEL MOTOR FUEL on such conditions the commissioner
18 deems most advantageous and just under the circumstances. The commis-
19 sioner shall not be required to file any undertaking in connection with
20 an action pursuant to this subdivision.
21 S 7. Sections 283-d and 284-b of the tax law are REPEALED.
22 S 8. Subdivision 3 of section 285-b of the tax law, as amended by
23 chapter 245 of the laws of 1989, is amended to read as follows:
24 3. (a) The claim for or exemption from tax provided for in subpara-
25 graphs (i), (II), (iii), (iv), [(v),] AND (vi)[, (vii) and (ix)] of
26 paragraph (b) of subdivision three of section two hundred eighty-two-a
27 of this article shall be established by means of an exempt transaction
28 certificate. If any such exemption is applicable, such certificate shall
29 be provided by the purchaser to the seller at the time of or prior to
30 delivery of the Diesel motor fuel. Such exempt transaction certificate
31 shall set forth the name and address of the purchaser and the basis of
32 the exemption and shall be signed by such purchaser and by the seller.
33 Such certificate shall be in such form and contain such other informa-
34 tion as the commissioner [of taxation and finance] shall require. Where
35 a proper and complete exempt transaction certificate has been furnished
36 and accepted by the seller in good faith, such certificate under such
37 circumstance shall relieve the seller of the burden of proving that the
38 Diesel motor fuel covered by such certificate is exempt from tax by
39 reason of subparagraph (i), (II), (iii), (iv), [(v),] OR (vi)[, (vii) or
40 (ix)] of paragraph (b) of subdivision three of such section two hundred
41 eighty-two-a. Any purchaser who furnishes to his seller a false or frau-
42 dulent exempt transaction certificate for the purpose of establishing an
43 exemption from the tax imposed by section two hundred eighty-two-a of
44 this article shall be jointly and severally liable for the tax imposed
45 by such section. In lieu of an exempt transaction certificate, the
46 commissioner [of taxation and finance] may provide for the establishment
47 of such exemption by means of a procedure or other document which he OR
48 SHE deems appropriate so as to secure the revenues from the excise tax
49 on Diesel motor fuel. Provided, further, in the case of the exemption
50 provided by subparagraph (i) of paragraph (b) of subdivision three of
51 section two hundred eighty-two-a of this article, the commissioner shall
52 provide for an alternative procedure or other document signed only by
53 the seller, such as a metered delivery ticket, for the establishment of
54 such exemption in those cases where such commissioner is satisfied that
55 the use of such alternative procedure or other document will not jeop-
56 ardize the revenues from the excise tax on Diesel motor fuel.
S. 2811--A 56 A. 4011--A
1 (b) A claim for the exemption from tax provided for in subparagraph
2 [(ii) or (viii)] (V) of paragraph (b) of subdivision three of section
3 two hundred eighty-two-a of this article shall be established by means
4 of an interdistributor sale certificate. If such exemption is applica-
5 ble, such certificate shall be provided by the purchaser to the seller
6 at the time of or prior to delivery of the Diesel motor fuel. Such
7 certificate shall set forth the name and address of the purchaser, the
8 purchaser's registration number, an affirmation by such purchaser that
9 the purchaser is registered as a distributor and that such registration
10 has not been suspended or cancelled and shall be signed by such purchas-
11 er and by the seller. Such certificate shall be in such form and contain
12 such other information as the commissioner [of taxation and finance]
13 shall require. Where a proper and complete interdistributor sale certif-
14 icate has been furnished and accepted by the seller in good faith, such
15 certificate under such circumstance shall relieve the seller of the
16 burden of proving that the Diesel motor fuel covered by such certificate
17 is exempt from tax by reason of subparagraph [(ii) or (viii)] (V) of
18 paragraph (b) of subdivision three of such section two hundred eighty-
19 two-a. For purposes of this paragraph, a seller shall not have accepted
20 such certificate in good faith if the purchaser's registration is inval-
21 id because it has been suspended or cancelled, or if the purchaser is
22 not registered, and the commissioner [of taxation and finance] has
23 furnished registered distributors with information identifying all those
24 persons then validly registered as distributors of Diesel motor fuel and
25 those persons whose registrations have been suspended or cancelled. Any
26 purchaser who furnishes to his seller a false or fraudulent interdis-
27 tributor sale certificate for the purpose of establishing an exemption
28 from the tax imposed by section two hundred eighty-two-a of this article
29 shall be jointly and severally liable for the tax imposed by such
30 section.
31 S 9. Subdivision 1 of section 286 of the tax law, as amended by chap-
32 ter 302 of the laws of 2006, is amended to read as follows:
33 1. Every person who imports or causes to be imported into this state,
34 or who produces, refines, manufactures or compounds within this state,
35 or who purchases or sells in this state motor fuel or diesel motor fuel
36 or ingredients which may be manufactured or compounded into motor fuel
37 or diesel motor fuel, [or engages in the enhancement of diesel motor
38 fuel,] shall keep a complete and accurate record of all purchases and
39 sales, uses or other dispositions thereof and a complete and accurate
40 record of the number of gallons of motor fuel or diesel motor fuel or
41 such ingredients so imported, produced, refined, manufactured[,] OR
42 compounded [or enhanced]. Every person who stores motor fuel or diesel
43 motor fuel shall keep a complete and accurate record of the identity of
44 the person for whom such fuel is stored, the quantity and type of fuel
45 so stored, the identity of the person to whom such fuel is released from
46 storage and the quantity and type of fuel so released. Such records
47 shall be in such form and contain such other information as the commis-
48 sioner shall prescribe. Said commissioner, by rule or regulation, also
49 may require the delivery of statements to purchasers with consignments
50 of motor fuel or diesel motor fuel or such ingredients, and prescribe
51 the matters to be contained therein. Such records and statements, unless
52 required by the commissioner to be preserved for a longer period, shall
53 be preserved for a period of three years and shall be offered for
54 inspection at any time upon oral or written demand by such commissioner
55 or the commissioner's duly authorized agents. The commissioner is hereby
56 further authorized to examine the equipment of any such person pertain-
S. 2811--A 57 A. 4011--A
1 ing to the storage, sale or delivery of such fuels, as well as the stock
2 of such fuels in the possession or control of such person. To verify the
3 amount of tax due under this article, each such person is hereby
4 directed and required to give to the commissioner or the commissioner's
5 duly authorized representatives, the means, facilities and opportunity
6 for such examinations as are herein provided for and required. Nothing
7 CONTAINED in this section [contained] shall be construed to require the
8 keeping for purposes of this article of a record of purchases or sales
9 of motor fuel or diesel motor fuel or such ingredients at retail in
10 small quantities (less than thirty gallons) or of motor fuel or diesel
11 motor fuel imported into this state in the tank of a motor vehicle which
12 supplies the fuel for its operation.
13 S 10. Section 286-a of the tax law, as amended by chapter 261 of the
14 laws of 1988, is amended to read as follows:
15 S 286-a. Records and reports of transportation of [automotive] MOTOR
16 FUEL AND DIESEL MOTOR fuel. Every person transporting [automotive] MOTOR
17 FUEL OR DIESEL MOTOR fuel within this state, whether such transportation
18 originates within or without this state, when required by the [tax
19 commission] COMMISSIONER, shall keep a true and accurate record of all
20 [automotive] MOTOR FUEL AND DIESEL MOTOR fuel so transported, including
21 ingredients which may be manufactured or compounded into [automotive]
22 MOTOR FUEL OR DIESEL MOTOR fuel, showing such facts with relation to
23 such [automotive] fuel and ingredients and their transportation as the
24 [tax commission] COMMISSIONER may require. Such record shall be open to
25 inspection by the representatives of the department [of taxation and
26 finance] at any time and the [tax commission] COMMISSIONER may require
27 from any such person sworn returns of all or any part of the information
28 shown by such records.
29 S 11. Section 286-b of the tax law, as amended by chapter 261 of the
30 laws of 1988, is amended to read as follows:
31 S 286-b. Transportation of [automotive] MOTOR FUEL OR DIESEL MOTOR
32 fuel; manifest required. 1. The master or other person in charge of any
33 barge, tanker or other vessel in which [automotive] MOTOR FUEL OR DIESEL
34 MOTOR fuel is being transported over any of the navigable waters of this
35 state, the operator of a motor vehicle in which [automotive] MOTOR FUEL
36 OR DIESEL MOTOR fuel is being transported in this state, or the operator
37 of a pipeline through which [automotive] MOTOR FUEL OR DIESEL MOTOR fuel
38 is being transported in this state, other than [automotive] MOTOR FUEL
39 OR DIESEL MOTOR fuel being transported for use in operating the engine
40 which propels such vessel or motor vehicle, as the case may be, must
41 have in his OR HER possession a manifest which shows the name and
42 address of the person from whom such [automotive] fuel was received by
43 him OR HER and the place of receipt of such fuel and the name and
44 address of every person to whom he OR SHE is to make delivery of the
45 same and the place of delivery, together with the number of gallons to
46 be delivered to each such person, and, if such [automotive] fuel is
47 being imported into the state in such vessel, motor vehicle or pipeline
48 for use, storage, distribution or sale in the state, the name of the
49 distributor importing or causing such fuel to be imported into the state
50 and such other information as the [tax commission] COMMISSIONER may
51 require pursuant to rule or regulation, and shall at the request of a
52 peace officer, acting pursuant to his OR HER special duties, a police
53 officer, any representative of the department [of taxation and finance]
54 or any other person authorized by law to inquire into or investigate the
55 transportation of such [automotive] fuel, produce such manifest for
56 inspection. The person causing the operation of such vessel, motor vehi-
S. 2811--A 58 A. 4011--A
1 cle or pipeline shall be responsible to cause the operator of such
2 vessel, motor vehicle or pipeline to keep in his OR HER possession on
3 such vessel, in such motor vehicle or in the main control building of
4 such pipeline in this state the manifest required by this section. The
5 absence of the manifest required by this section shall give rise to a
6 presumption that the [automotive] MOTOR FUEL OR DIESEL MOTOR fuel being
7 transported is intended for sale, use, distribution or storage in this
8 state and is being imported or caused to be imported by other than a
9 registered distributor. Moreover, the absence of (1) the place of deliv-
10 ery of motor fuel OR DIESEL MOTOR FUEL on the manifest with respect to
11 [automotive] MOTOR FUEL OR DIESEL MOTOR fuel being imported into the
12 state shall give rise to a presumption that such fuel is being imported
13 into the state for use, distribution, storage or sale in the state and
14 (2) the name of a registered distributor on the manifest with respect to
15 [automotive] MOTOR FUEL OR DIESEL MOTOR fuel being imported into the
16 state for use, distribution, storage or sale in the state shall give
17 rise to a presumption that such fuel is being so imported or caused to
18 be imported by other than a registered distributor. Every barge, tanker
19 or other vessel so used for the transportation of motor fuel must be
20 plainly and visibly marked on both sides thereof and above the water
21 line with the word "Gasoline," or other name of the motor fuel being
22 transported, in letters at least eight inches high and of corresponding
23 appropriate width, or must be identified as prescribed by the [tax
24 commission] COMMISSIONER pursuant to rule or regulation. The master or
25 person in charge of such barge, tanker or other vessel, as well as the
26 owners thereof, shall be guilty of a violation of this section if such
27 barge, tanker or other vessel is not so marked.
28 2. The commissioner may, by regulation provide for the form and
29 content of the manifest required for [automotive] MOTOR AND DIESEL MOTOR
30 fuel and for the filing of monthly information returns by every person
31 required to maintain records, described in subdivision one of this
32 section, which shall in all material respects reflect the information
33 required to be contained in such records. Such returns shall be in such
34 form and contain such other information as the commissioner shall
35 require.
36 S 12. Subdivision 1 of section 287 of the tax law, as amended by chap-
37 ter 261 of the laws of 1988, is amended to read as follows:
38 1. Every distributor shall, on or before the twentieth day of each
39 month, file with the department [of taxation and finance] a return, on
40 forms to be prescribed by the commissioner and furnished by such depart-
41 ment, stating the number of gallons of motor fuel imported, manufactured
42 or sold by such distributor in the state during the preceding calendar
43 month and in the case of Diesel motor fuel, the number of gallons of
44 [enhanced] Diesel motor fuel imported[, the number of gallons enhanced]
45 and the number of gallons which have been sold or used. Provided, howev-
46 er, the commissioner may, if he OR SHE deems it necessary in order to
47 [insure] ENSURE the payment of the taxes imposed by this article,
48 require returns to be made at such times and covering such periods as he
49 OR SHE may deem necessary, and, by regulation, may permit the filing of
50 returns by distributors of Diesel motor fuel on a quarterly, semi-annual
51 or annual basis, or may waive the filing of returns by a distributor of
52 Diesel motor fuel for such time and upon such terms as he OR SHE may
53 deem proper if satisfied that no tax imposed by this article with
54 respect to Diesel motor fuel is or will be payable by him OR HER during
55 the time for which returns are waived. Such returns shall contain such
56 further information as the commissioner shall require. The fact that a
S. 2811--A 59 A. 4011--A
1 distributor's name is signed to a filed return shall be prima facie
2 evidence for all purposes that the return was actually signed by such
3 distributor. Each such distributor shall, with respect to motor fuel,
4 pay to the department with the filing of such return, the taxes imposed
5 by this article on each gallon of motor fuel imported, manufactured or
6 sold by such distributor in the state, and so reported, during the peri-
7 od covered by such return. Each distributor shall, with respect to
8 Diesel motor fuel, pay to the department with the filing of the return
9 the taxes imposed by this article on the number of gallons of Diesel
10 motor fuel sold or used or delivered to a filling station or delivered
11 into the fuel tank of a motor vehicle during the period covered by the
12 return. Provided, however, that where a distributor has purchased [auto-
13 motive] MOTOR FUEL OR DIESEL MOTOR fuel upon which the taxes imposed by
14 this article have been paid or paid over and in each instance the tax is
15 included in the price, a credit shall be allowed for the amount of such
16 taxes upon the subsequent sale of such fuel to the extent that such
17 taxes are so paid and included in the price.
18 S 13. Paragraphs (a) and (c) of subdivision 3 of section 289-c of the
19 tax law, paragraph (a) as amended by chapter 558 of the laws of 1965 and
20 paragraph (c) as amended by chapter 302 of the laws of 2006, are amended
21 to read as follows:
22 (a) Except as otherwise provided in paragraph (b) of this section, any
23 person who shall buy any motor fuel or diesel motor fuel, on which the
24 tax imposed by this article shall have been paid, and shall consume the
25 same in any manner except in the operation of a motor vehicle upon or
26 over the PUBLIC highways of this state, or in the operation of a pleas-
27 ure or recreational motor boat upon or over the waterways of the state
28 including waterways bordering on the state, shall be reimbursed the
29 amount of such tax in the manner and subject to the conditions herein
30 provided except that there shall be no reimbursement of tax paid on
31 motor fuel or diesel motor fuel taken out of this state in a fuel tank
32 connected with the engine of a motor vehicle and consumed outside of
33 this state.
34 (c) All claims for reimbursement shall be in such form and contain
35 such information as the commissioner shall prescribe and shall be filed
36 within three years from (i) the date of the purchase, in the case of the
37 purchaser; or (ii) the date of the sale, in the case of the seller, of
38 the motor fuel so subject to reimbursement. Every such claim shall
39 include a certificate by or on behalf of the party presenting the same
40 to the effect that it is just, true and correct, that no part thereof
41 has been paid, except as stated therein, and that the balance therein
42 stated is actually due and owing. The claimant shall satisfy the depart-
43 ment that the claimant has borne the tax and that the motor fuel has
44 been consumed by the claimant in a manner other than the operation of a
45 motor vehicle upon or over the PUBLIC highways of this state, the opera-
46 tion of a pleasure or recreational motorboat upon or over the waterways
47 of the state including waterways bordering on the state or, in the case
48 of an omnibus carrier, taxicab licensee, nonpublic school operator or
49 volunteer ambulance service, that the claimant has borne the tax and
50 that the amount claimed is the amount of such tax reimbursable under
51 paragraph (b), (d), (e) or (f) of THIS subdivision [three of this
52 section]. The department may require such further information or proof
53 as it shall deem necessary for the administration of such claim. Claims
54 for reimbursement approved by the department shall be paid from revenues
55 collected under this article and deposited to the credit of the comp-
56 troller as hereinafter provided; but no such claims shall be paid unless
S. 2811--A 60 A. 4011--A
1 the department is satisfied that the amount of the tax for which the
2 reimbursement is claimed has actually been collected by the state. The
3 amount of any erroneous or excessive payment to a claimant for
4 reimbursement may be determined by the department and may be recovered
5 from such claimant in the same manner as a tax imposed by this article,
6 provided, however, that any such determination shall be made within
7 three years after the date of such erroneous or excessive payment.
8 S 14. Subdivision 4 of sections 289-c of the tax law is REPEALED.
9 S 15. Subdivision 1 of section 289-e of the tax law, as amended by
10 section 5 of part EE of chapter 63 of the laws of 2000, is amended to
11 read as follows:
12 1. All taxes, interest, penalties and fees collected or received by
13 the commissioner under the taxes imposed by this article, except as
14 provided otherwise in subdivision two and subdivision three of this
15 section and sections two hundred eighty-two-b, two hundred eighty-two-c,
16 two hundred eighty-four-a and two hundred eighty-four-c, other than
17 [those imposed by section two hundred eighty-four-b and] the fee imposed
18 by section two hundred eighty-four-d and penalties and interest on such
19 fee, shall be deposited and disposed of pursuant to the provisions of
20 section one hundred seventy-one-a of this chapter; provided that an
21 amount equal to thirty-seven and one-half per centum of the moneys
22 collected under section two hundred eighty-four of this chapter shall be
23 appropriated and used for the acquisition of property necessary for the
24 construction and reconstruction of highways and bridges or culverts on
25 the state highway system, and for the construction, maintenance and
26 repair of such highways and bridges or culverts, all under the direction
27 of the commissioner of transportation.
28 S 16. Section 289-f of the tax law, as added by chapter 44 of the laws
29 of 1985, is amended to read as follows:
30 S 289-f. Joint administration of taxes. In addition to the powers
31 granted to the [tax commission] COMMISSIONER in this chapter, the
32 [commission] COMMISSIONER is hereby authorized to make provisions pursu-
33 ant to rules and regulations for the joint administration, in whole or
34 in part, of the state and local taxes imposed by article twenty-eight
35 and authorized to be imposed by article twenty-nine of this chapter upon
36 the sale of [automotive] MOTOR FUEL OR DIESEL MOTOR fuel and the taxes
37 imposed and authorized to be imposed by this article, including the
38 joint reporting, assessment, collection, determination and refund of
39 such taxes, and for that purpose to prescribe that any of the [commis-
40 sion's] COMMISSIONER'S functions under such articles, and any returns,
41 forms, statements, documents or information to be submitted to the
42 [commission] COMMISSIONER under such articles, any books and records to
43 be kept for purposes of the taxes imposed or authorized to be imposed by
44 such articles, any schedules of amounts to be collected under such arti-
45 cles, any registration required under such articles, and the payment of
46 taxes under such articles shall be on a joint basis with respect to the
47 taxes imposed by such articles.
48 S 17. Paragraph 2 of subdivision (b) and subdivisions (c), (k), (l)
49 and (m) of section 300 of the tax law, paragraph 2 of subdivision (b) as
50 amended by chapter 170 of the laws of 1994, subdivision (c) as added by
51 chapter 190 of the laws of 1990, subdivision (k) as amended by section 1
52 of part H of chapter 407 of the laws of 1999 and subdivisions (l) and
53 (m) as added by chapter 309 of the laws of 1996, are amended to read as
54 follows:
55 (2) With respect to diesel motor fuel, every corporation and unincor-
56 porated business (i) importing diesel motor fuel or causing diesel motor
S. 2811--A 61 A. 4011--A
1 fuel to be imported into the state for use, distribution, storage or
2 sale in the state, (ii) producing, refining, manufacturing or compound-
3 ing diesel motor fuel within the state, (iii) [engaging in the enhance-
4 ment of diesel motor fuel within the state, (iv)] making a sale or use
5 of diesel motor fuel in the state, other than a retail sale not in bulk
6 or self-use of diesel motor fuel which has been the subject of a retail
7 sale to such corporation or unincorporated business, or [(v)] (IV)
8 registered by the department [of taxation and finance] as a "distributor
9 of kero-jet fuel only" pursuant to the provisions of subdivision two of
10 section two hundred eighty-two-a of this chapter. Diesel motor fuel
11 brought into this state in the ordinary fuel tank connecting with the
12 engine of a motor vehicle, airplane or other conveyance, but not a
13 vessel (other than a recreational motor boat or a commercial fishing
14 vessel as defined in subdivision (j) of this section if the diesel motor
15 fuel imported into and consumed in this state is used to operate such
16 vessel while it is engaged in the harvesting of fish for sale),
17 propelled by the use of such diesel motor fuel and to be used only in
18 the operation thereof, shall not be deemed imported within the meaning
19 of this article, if not removed from such tank except as used in the
20 propulsion of such engine.
21 (c) [(1)] The [term (A)] TERMS (1) "diesel motor fuel" means such term
22 as defined in subdivision fourteen of section two hundred eighty-two of
23 this chapter [and regulations thereunder including any regulations
24 relating to product specifically designated "No. 4 diesel fuel" and not
25 suitable as a fuel used in the operation of a motor vehicle engine], and
26 [(B) "enhanced] (2) "HIGHWAY diesel motor fuel" means such term as
27 defined in subdivision [sixteen] SIXTEEN-A of section two hundred eight-
28 y-two of this chapter, and
29 [(C)(i) "nonautomotive type diesel motor fuel" as used in relation to
30 the rates of the tax imposed by section three hundred one-a of this
31 article means any diesel motor fuel, as described in subparagraph (A) of
32 this paragraph, which would be excluded from the diesel motor fuel
33 excise tax imposed by section two hundred eighty-two-a of this chapter
34 solely by reason of the enumerated exclusions based on ultimate use of
35 the product set forth in paragraph (b) of subdivision three of such
36 section, and (ii) "automotive-type diesel motor fuel" as used in
37 relation to the rates of tax imposed by such section three hundred one-a
38 means diesel motor fuel which is not nonautomotive-type diesel motor
39 fuel.]
40 (3) "NON-HIGHWAY DIESEL MOTOR FUEL" MEANS SUCH TERM AS DEFINED IN
41 SUBDIVISION SIXTEEN OF SECTION TWO HUNDRED EIGHTY-TWO OF THIS CHAPTER.
42 [(2)] (4) As used in this article, references to persons or petroleum
43 businesses registered under article twelve-A of this chapter as distrib-
44 utors of diesel motor fuel shall include all such persons or petroleum
45 businesses registered under such article as distributors of diesel motor
46 fuel and persons or petroleum businesses operating under valid limited
47 registrations relating to persons or petroleum businesses making retail
48 sales of diesel motor fuel to consumers solely for the purposes
49 described in subparagraph (i) of paragraph (b) of subdivision three of
50 section two hundred eighty-two-a of this chapter, but such references
51 shall not include persons and petroleum businesses registered as
52 "distributors of kero-jet fuel only" pursuant to the provisions of
53 subdivision two of section two hundred eighty-two-a of this chapter.
54 (k) "Commercial gallonage" means gallonage (1) which is [nonautomo-
55 tive-type] NON-HIGHWAY diesel motor fuel [(which is not enhanced diesel
56 motor fuel)] or residual petroleum product, (2) which is included in the
S. 2811--A 62 A. 4011--A
1 full measure of the [nonautomotive-type] NON-HIGHWAY diesel motor fuel
2 component or the residual petroleum product component of the tax imposed
3 under section three hundred one-a of this article, [and] (3) which does
4 not (and will not) qualify (A) for the utility credit or reimbursement
5 provided for in section three hundred one-d of this article, (B) as
6 "manufacturing gallonage", as such term is defined in subdivision (m) of
7 this section, (C) for the not-for-profit organization exemption provided
8 for in subdivision (h) of section three hundred one-b of this article,
9 or (D) for the heating exemption provided for in paragraph two of subdi-
10 vision (d) of section three hundred one-b of this article or the heating
11 reimbursement provided for in paragraph two of subdivision (a) of
12 section three hundred one-c of this article, AND (4) WHICH WILL NOT BE
13 USED NOR HAS BEEN USED IN THE FUEL TANK CONNECTING WITH THE ENGINE OF A
14 VESSEL. No gallonage shall qualify as "commercial gallonage" where such
15 gallonage is eligible for the (i) utility credit or reimbursement under
16 such section three hundred one-d of this article, (ii) [if before Janu-
17 ary first, nineteen hundred ninety-eight, the manufacturing exemption or
18 reimbursement under paragraph one of subdivision (b) of section three
19 hundred one-j of this article and, if on or after January first, nine-
20 teen hundred ninety-eight, the] "manufacturing exemption" under para-
21 graph [four] THREE of subdivision (f) of section three hundred one-a of
22 this article, (iii) [the] not-for-profit organization exemption under
23 subdivision (h) of section three hundred one-b of this article, or (iv)
24 heating exemption provided for in paragraph two of subdivision (d) of
25 section three hundred one-b of this article or the heating reimbursement
26 provided for in paragraph two of subdivision (a) of section three
27 hundred one-c of this article. The commissioner shall require such docu-
28 mentary proof to substantiate the classification of product as "commer-
29 cial gallonage" as the commissioner deems appropriate.
30 (l) "Railroad diesel" means NON-HIGHWAY diesel motor fuel for use and
31 consumption directly and exclusively in the operation of a locomotive or
32 a self-propelled vehicle run only on rails or tracks, but only if either
33 (1) all such fuel is delivered into a storage facility which is not
34 equipped with a hose or other apparatus by which such fuel can be
35 dispensed into the fuel tank of a motor vehicle and such facility is
36 used only to fuel such locomotives or such self-propelled vehicles, or
37 (2) in accordance with the terms of sale, all such fuel is delivered
38 directly into the tank of a locomotive or self-propelled vehicle.
39 Provided, however, that a sale to a purchaser who will use such
40 NON-HIGHWAY diesel motor fuel as "railroad diesel" shall be evidenced by
41 a certificate signed by the purchaser stating that such diesel motor
42 fuel will be used and consumed as prescribed in this subdivision and the
43 commissioner may require such other information as the commissioner
44 deems appropriate.
45 (m) "Manufacturing gallonage" means residual petroleum product or
46 NON-HIGHWAY diesel motor fuel [(which is not enhanced diesel motor
47 fuel)] used and consumed directly and exclusively in the production of
48 tangible personal property for sale by manufacturing, processing or
49 assembly, but only if (I) all of such fuel or product is delivered on
50 the manufacturing site [and is consumed other than on the highways of
51 this state], OR (II) THE PURCHASER CAUSES SUCH FUEL OR PRODUCT TO BE
52 DELIVERED TO ITS MANUFACTURING SITE. "Manufacturing gallonage" shall in
53 no event [include diesel motor fuel] BE CONSUMED ON THE PUBLIC HIGHWAYS
54 OF THIS STATE OR delivered at a filling station or into a repository
55 which is equipped with a hose or other apparatus by which such fuel can
56 be dispensed into the fuel tank of a motor vehicle. The commissioner
S. 2811--A 63 A. 4011--A
1 shall require such documentary proof to substantiate the classification
2 of product as "manufacturing gallonage" as the commissioner deems appro-
3 priate.
4 S 18. Section 301 of the tax law is REPEALED.
5 S 19. Subdivision (a), paragraph 1 of subdivision (b) and subdivisions
6 (c), (e), (f) and (h) of section 301-a of the tax law, subdivision (a)
7 as amended by section 1 of part U of chapter 63 of the laws of 2000,
8 paragraph 1 of subdivision (b) and paragraph 1 of subdivision (c) as
9 amended by section 154 of part A of chapter 389 of the laws of 1997,
10 subdivisions (c), (e), (f) and (h) as added by chapter 190 of the laws
11 of 1990, paragraph 3 of subdivision (e) and paragraph 3 of subdivision
12 (f) as amended by chapter 170 of the laws of 1994 and paragraph 4 of
13 subdivision (e) and paragraph 4 of subdivision (f) as added by chapter
14 309 of the laws of 1996, are amended to read as follows:
15 (a) General. Notwithstanding any other provision of this chapter, or
16 of any other law, [for taxable months commencing on or after the first
17 day of September, nineteen hundred ninety,] there is hereby imposed upon
18 every petroleum business for the privilege of engaging in business,
19 doing business, employing capital, owning or leasing property, or main-
20 taining an office in this state, a monthly tax for each or any part of a
21 taxable month equal to the sum of the motor fuel component determined
22 pursuant to subdivision (b) of this section, the [automotive-type] HIGH-
23 WAY diesel motor fuel component determined pursuant to paragraph one of
24 subdivision (c) of this section, the [nonautomotive-type] NON-HIGHWAY
25 diesel motor fuel component determined pursuant to paragraph two of
26 subdivision (c) of this section and the residual petroleum product
27 component determined pursuant to subdivision (d) of this section.
28 (1) The motor fuel component shall be determined by multiplying the
29 motor fuel and [automotive-type] HIGHWAY diesel motor fuel rate times
30 the number of gallons of (1) motor fuel imported or caused to be
31 imported into this state by the petroleum business for use, distrib-
32 ution, storage or sale in the state or (2) produced, refined, manufac-
33 tured or compounded in the state by the petroleum business during the
34 month covered by the return under this article. Provided, however, that
35 no motor fuel shall be included in the measure of the tax unless it
36 shall have previously come to rest within the meaning of federal deci-
37 sional law interpreting the United States constitution, nor shall any
38 motor fuel be included in the measure of the tax imposed by this article
39 more than once.
40 (c) (1) [Automotive-type] HIGHWAY Diesel motor fuel component. (A) The
41 [automotive-type] HIGHWAY diesel motor fuel component shall be deter-
42 mined by multiplying the motor fuel and [automotive-type] HIGHWAY diesel
43 motor fuel rate times (1) the number of gallons of [automotive-type]
44 HIGHWAY diesel motor fuel sold or used by a petroleum business in this
45 state during the month covered by the return under this article and (2)
46 with respect to any gallonage which prior thereto has not been included
47 in the measure of the tax imposed by this article, times the number of
48 gallons of HIGHWAY diesel motor fuel delivered (i) to a filling station
49 or (ii) into the fuel tank connecting with the engine of a motor vehicle
50 for use in the operation thereof, whichever of the latter two events
51 shall be the first to occur. Provided, however, that no HIGHWAY diesel
52 motor fuel shall be included in the measure of the tax unless it shall
53 have previously come to rest within the meaning of federal decisional
54 law interpreting the United States constitution, nor decisional law, nor
55 shall any HIGHWAY diesel motor fuel be included in the measure of the
56 tax imposed by this article more than once.
S. 2811--A 64 A. 4011--A
1 (B) [Diesel] HIGHWAY DIESEL motor fuel brought into this state in the
2 fuel tank connecting with the engine of a vessel propelled by the use of
3 such diesel motor fuel shall be deemed to constitute a taxable use of
4 diesel motor fuel for the purpose of this paragraph to the extent of the
5 fuel that is consumed in the operation of the vessel in this state.
6 Provided, however, this paragraph shall not apply to (i) a recreational
7 motor boat or (ii) [subsequent to August thirty-first, nineteen hundred
8 ninety-four,] a commercial fishing vessel (as defined in subdivision (j)
9 of section three hundred of this article) if the HIGHWAY diesel motor
10 fuel imported into and consumed in this state is used to operate such
11 commercial fishing vessel while it is engaged in the harvesting of fish
12 for sale. Provided, further, that tax liability for gallonage that a
13 vessel consumes in this state shall be the tax liability with respect to
14 the positive difference between the gallonage consumed in this state
15 during the reporting period and the gallonage purchased in this state
16 (upon which the tax imposed by this section has been paid) during such
17 period. A credit or refund shall be available for any excess of tax
18 liability for gallonage purchased in this state during the period over
19 tax liability on gallonage so consumed in this state during such period,
20 which excess shall be presumed to have been used outside this state.
21 (2) [Nonautomotive-type] NON-HIGHWAY diesel motor fuel component. The
22 [nonautomotive-type] NON-HIGHWAY diesel fuel component shall be deter-
23 mined by multiplying the [nonautomotive-type] NON-HIGHWAY diesel motor
24 fuel rate times the number of gallons of [nonautomotive-type] NON-HIGH-
25 WAY diesel motor fuel sold or used by a petroleum business in this state
26 during the month covered by the return under this section. Provided,
27 however, that no NON-HIGHWAY diesel motor fuel shall be included in the
28 measure of the tax unless it shall have previously come to rest within
29 the meaning of federal decisional law interpreting the United States
30 constitution, nor shall any [nonautomotive-type] NON-HIGHWAY diesel
31 motor fuel be included in the measure of the tax imposed by this article
32 more than once.
33 (e) Motor fuel and [automotive-type] HIGHWAY diesel motor fuel rate.
34 (1) The basic motor fuel and HIGHWAY diesel [automotive-type] motor fuel
35 rate shall be [five and one-half] TEN AND TWO-TENTHS cents per gallon.
36 (2) [Commencing April first, nineteen hundred ninety-one, the motor
37 fuel and automotive-type diesel motor fuel rate shall be the product of
38 the basic rate set forth in paragraph one of this subdivision multiplied
39 by a fraction, the numerator of which is the sum of the monthly producer
40 price index (unadjusted) published by the bureau of labor statistics of
41 the United States department of labor for the category of commodities
42 designated "refined petroleum products" for the twelve consecutive
43 months ending with the month of November, nineteen hundred ninety, and
44 the denominator of which is the sum of the monthly producer price index
45 (unadjusted) published by the bureau of labor statistics of the United
46 States department of labor for the category of commodities designated
47 "refined petroleum products" for the twelve consecutive months ending
48 with the month of November, nineteen hundred eighty-nine.
49 (3) Commencing on the first day of January, nineteen hundred ninety-
50 two, the motor fuel and automotive-type diesel motor fuel rate then in
51 effect on the immediately preceding December thirty-first shall be
52 adjusted as follows: such rate shall be multiplied by a fraction the
53 numerator of which is the sum of the monthly producer price index (unad-
54 justed) published by the bureau of labor statistics of the United States
55 department of labor for the category of commodities designated "refined
56 petroleum products" for the twelve consecutive months ending with the
S. 2811--A 65 A. 4011--A
1 month of August, nineteen hundred ninety-one and the denominator of
2 which is the sum of the monthly producer price index (unadjusted)
3 published by the bureau of labor statistics of the United States depart-
4 ment of labor for the category of commodities designated "refined petro-
5 leum products" for the twelve consecutive months ending with the month
6 of August, nineteen hundred ninety. Commencing on the first day of Janu-
7 ary of nineteen hundred ninety-six and every] EVERY year [thereafter] AS
8 OF JANUARY FIRST, the motor fuel and [automotive-type] HIGHWAY diesel
9 motor fuel rate then in effect on the immediately preceding December
10 thirty-first shall be adjusted as follows: such rate shall be multiplied
11 by a fraction the numerator of which is the sum of the monthly producer
12 price index (unadjusted) published by the bureau of labor statistics of
13 the United States department of labor for the category of commodities
14 designated "refined petroleum products" for the twelve consecutive
15 months ending with the month of August of the immediately preceding year
16 and the denominator of which is the sum of the monthly producer price
17 index (unadjusted) published by the bureau of labor statistics of the
18 United States department of labor for the category of commodities desig-
19 nated "refined petroleum products" for the twelve consecutive months
20 ending with the month of August in the year prior to such immediately
21 preceding year, provided, however, that the adjusted rate [to take
22 effect on January first, nineteen hundred ninety-six and each January
23 first thereafter] shall not increase above or decrease below the rate in
24 effect on the immediately preceding December thirty-first by more than
25 five percent.
26 [(4)] (3) Notwithstanding any other provision of this article,
27 [commencing January first, nineteen hundred ninety-seven,] the per
28 gallon rate with respect to "railroad diesel" shall be the adjusted
29 motor fuel and [automotive-type] HIGHWAY diesel motor fuel rate under
30 paragraphs one [through three] AND TWO of this subdivision [for the
31 period commencing such January first, nineteen hundred ninety-seven,]
32 minus one and three tenths cents per gallon. [Commencing on the first
33 day of January each year thereafter, the per gallon rate with respect to
34 "railroad diesel" shall be determined by taking the then motor fuel and
35 automotive-type diesel motor fuel rate under paragraphs one through
36 three of this subdivision which commences on such first day of January
37 and subtracting one and three tenths cents per gallon.]
38 (f) [Nonautomotive-type] NON-HIGHWAY diesel motor fuel rate.
39 (1) The basic [nonautomotive-type] NON-HIGHWAY diesel motor fuel rate
40 shall be [five] NINE AND THREE-TENTHS cents per gallon.
41 (2) [Commencing April first, nineteen hundred ninety-one, the nonauto-
42 motive-type diesel motor fuel rate shall be the product of the basic
43 rate set forth in paragraph one of this subdivision multiplied by a
44 fraction the numerator of which is the sum of the monthly producer price
45 index (unadjusted) published by the bureau of labor statistics of the
46 United States department of labor for the category of commodities desig-
47 nated "refined petroleum products" for the twelve consecutive months
48 ending with the month of November, nineteen hundred ninety, and the
49 denominator of which is the sum of the monthly producer price index
50 (unadjusted) published by the bureau of the labor statistics of the
51 United States department of labor for the category of commodities desig-
52 nated "refined petroleum products" for the twelve consecutive months
53 ending with the month of November, nineteen hundred eighty-nine.
54 (3) Commencing on the first day of January, nineteen hundred ninety-
55 two, the nonautomotive-type diesel motor fuel rate then in effect on the
56 immediately preceding December thirty-first shall be adjusted as
S. 2811--A 66 A. 4011--A
1 follows: Such rate shall be multiplied by a fraction the numerator of
2 which is the sum of the monthly producer price index (unadjusted)
3 published by the bureau of labor statistics of the United States depart-
4 ment of labor for the category of commodities designated "refined petro-
5 leum products" for the twelve consecutive months ending with the month
6 of August, nineteen hundred ninety-one and the denominator of which is
7 the sum of the monthly producer price index (unadjusted) published by
8 the bureau of labor statistics of the United States department of labor
9 for the category of commodities designated "refined petroleum products"
10 for the twelve consecutive months ending with the month of August, nine-
11 teen hundred ninety. Commencing on the first day of January of nineteen
12 hundred ninety-six and every] EVERY year [thereafter,] AS OF JANUARY
13 FIRST the [nonautomotive-type] NON-HIGHWAY diesel motor fuel rate then
14 in effect on the immediately preceding December thirty-first shall be
15 adjusted as follows: Such rate shall be multiplied by a fraction the
16 numerator of which is the sum of the monthly producer price index (unad-
17 justed) published by the bureau of labor statistics of the United States
18 department of labor for the category of commodities designated "refined
19 petroleum products" for the twelve consecutive months ending with the
20 month of August of the immediately preceding year and the denominator of
21 which is the sum of the monthly producer price index (unadjusted)
22 published by the bureau of labor statistics of the United States depart-
23 ment of labor for the category of commodities designated "refined petro-
24 leum products" for the twelve consecutive months ending with the month
25 of August in the year prior to such immediately preceding year,
26 provided, however, that the adjusted rate [to take effect on January
27 first, nineteen hundred ninety-six and each January first thereafter]
28 shall not increase above or decrease below the rate in effect on the
29 immediately preceding December thirty-first by more than five percent.
30 [(4)] (3) Notwithstanding any other provision of this article,
31 [commencing January first, nineteen hundred ninety-eight, nonautomo-
32 tive-type] NON-HIGHWAY diesel motor fuel which is "manufacturing gallo-
33 nage," as such term is defined in subdivision (m) of section three
34 hundred of this article, shall be exempt from the measure of the [nonau-
35 tomotive-type] NON-HIGHWAY diesel motor fuel component of the tax
36 imposed under this section.
37 (h) Publication and rounding of rate. (1) The commissioner [of taxa-
38 tion and finance] shall cause to be published in the section for miscel-
39 laneous notices in the state register, and give other appropriate gener-
40 al notice of, the rate adjustment calculation and the resulting motor
41 fuel and [automotive-type] HIGHWAY diesel motor fuel rate, [nonautomo-
42 tive-type] NON-HIGHWAY diesel motor fuel rate and residual petroleum
43 product rate fixed by this section for the period commencing on [April
44 first, nineteen hundred ninety-one, no later than the immediately
45 preceding first day of March] JANUARY FIRST, TWO THOUSAND TWELVE, and
46 for each calendar year thereafter, no later than the immediately preced-
47 ing first day of December. The calculation and publication of the rates
48 of tax so fixed by provisions of this section shall not be included
49 within paragraph (a) of subdivision two of section one hundred two of
50 the state administrative procedure act relating to the definition of a
51 rule.
52 (2) The rates determined pursuant to this section shall be rounded to
53 the nearest one-tenth of one cent.
54 S 19-a. Subdivision (k) of section 301-a of the tax law is REPEALED.
55 S 20. Section 301-a of the tax law is amended by adding a new subdivi-
56 sion (m) to read as follows:
S. 2811--A 67 A. 4011--A
1 (M) SPECIAL RATE ADJUSTMENT FOR CERTAIN VESSELS. NOTWITHSTANDING ANY
2 PROVISION OF THIS SECTION TO THE CONTRARY, THE USE OF NON-HIGHWAY DIESEL
3 MOTOR FUEL IN THE ENGINE OF A VESSEL TO PROPEL SUCH VESSEL SHALL BE
4 SUBJECT TO TAX AT THE MOTOR FUEL AND HIGHWAY DIESEL MOTOR FUEL RATE
5 PROVIDED FOR IN THIS SECTION, AND SHALL BE SUBJECT TO THE PROVISIONS OF
6 SECTION THREE HUNDRED ONE-J OF THIS ARTICLE, INCLUDING THE ADJUSTMENT
7 SET FORTH IN PARAGRAPH FOUR OF SUBDIVISION (A) OF SUCH SECTION THREE
8 HUNDRED ONE-J. A CREDIT OR REFUND SHALL BE AVAILABLE TO THE EXTENT TAX
9 PAID ON GALLONAGE USED TO PROPEL ANY SUCH VESSEL EXCEEDS THE AMOUNT OF
10 TAX DUE BASED ON THE TAX RATE SET FORTH HEREIN. PROVIDED, HOWEVER, THAT
11 THE COMMISSIONER SHALL REQUIRE SUCH DOCUMENTARY PROOF TO QUALIFY FOR ANY
12 CREDIT OR REIMBURSEMENT PROVIDED HEREUNDER AS THE COMMISSIONER DEEMS
13 APPROPRIATE.
14 S 21. Paragraph 2 of subdivision (b), paragraphs 2 and 3 of subdivi-
15 sion (c), subdivisions (d) and (e), paragraph 1 of subdivision (f) and
16 subdivisions (g), (h) and (i) of section 301-b of the tax law, paragraph
17 2 of subdivision (b) and paragraphs 2 and 3 of subdivision (c) and
18 subdivision (e) as added by chapter 190 of the laws of 1990, the opening
19 paragraph of paragraph 2 of subdivision (b) as amended by section 155 of
20 part A of chapter 389 of the laws of 1997, subdivision (d) as amended by
21 section 2 of part H of chapter 407 of the laws of 1999 and subparagraph
22 (C) of paragraph 2 of subdivision (d) as amended by section 1 of part X
23 of chapter 63 of the laws of 2000, paragraph 1 of subdivision (f) as
24 added by chapter 166 of the laws of 1991, subdivision (g) as added by
25 chapter 170 of the laws of 1994, subdivision (h) as amended by chapter
26 302 of the laws of 2006 and subdivision (i) as added by chapter 468 of
27 the laws of 2000, are amended to read as follows:
28 (2) [Enhanced] HIGHWAY diesel motor fuel imported or caused to be
29 imported into this state or produced, refined, manufactured or
30 compounded in this state by a petroleum business registered under arti-
31 cle twelve-A of this chapter, as a distributor of diesel motor fuel,
32 which is sold by such petroleum business to a purchaser who then exports
33 such HIGHWAY diesel motor fuel from this state for sale or use outside
34 the state where
35 (A) such purchaser exporting such fuel is duly registered with or
36 licensed by the taxing authorities of the state to which such fuel is
37 exported as a distributor or a dealer in the product being so exported,
38 (B) in connection with the exportation, such fuel was immediately
39 shipped to an identified facility in the state to which such fuel is
40 exported, and
41 (C) the rules and regulations of the commissioner [of taxation and
42 finance] relating to evidentiary requirements are complied with.
43 (2) [Enhanced] HIGHWAY diesel motor fuel imported or caused to be
44 imported into this state or produced, refined, manufactured or
45 compounded by a petroleum business registered under article twelve-A of
46 this chapter, as a distributor of diesel motor fuel, and then sold by
47 such petroleum business to an organization described in paragraph one or
48 two of subdivision (a) of section eleven hundred sixteen of this chapter
49 where such HIGHWAY DIESEL motor fuel is used by such organization for
50 its own use or consumption.
51 (3) NON-HIGHWAY Diesel motor fuel[, which is not enhanced diesel motor
52 fuel,] sold by a petroleum business registered under article twelve-A of
53 this chapter as a distributor of diesel motor fuel to an organization
54 described in paragraph one or two of subdivision (a) of section eleven
55 hundred sixteen of this chapter where such NON-HIGHWAY diesel motor fuel
56 is used by such organization for its own use or consumption.
S. 2811--A 68 A. 4011--A
1 (d) Sales to consumers for heating purposes. (1) Total residential
2 heating exemption. [(A) Unenhanced] NON-HIGHWAY diesel motor fuel sold
3 by a petroleum business registered under article twelve-A of this chap-
4 ter as a distributor of diesel motor fuel or residual petroleum product
5 sold by a petroleum business registered under this article as a residual
6 petroleum product business to the consumer exclusively for residential
7 heating purposes[.
8 (B) Enhanced diesel motor fuel sold by a petroleum business registered
9 under article twelve-A of this chapter as a distributor of diesel motor
10 fuel to the consumer exclusively for residential heating purposes but]
11 only if such [enhanced] NON-HIGHWAY diesel motor fuel is delivered into
12 a storage tank which is not equipped with a hose or other apparatus by
13 which such fuel can be dispensed into the fuel tank of a motor vehicle
14 and such storage tank is attached to the heating unit burning such
15 fuel[, provided, that with respect to each delivery of such fuel over
16 four thousand five hundred gallons, to obtain this exemption there shall
17 be required a certificate signed by the purchaser stating that the prod-
18 uct will be used exclusively for residential heating purposes].
19 (2) Partial non-residential heating exemption. (A) [Unenhanced]
20 NON-HIGHWAY diesel motor fuel sold by a petroleum business registered
21 under article twelve-A of this chapter as a distributor of diesel motor
22 fuel or residual petroleum product sold by a petroleum business regis-
23 tered under this article as a residual petroleum product business to the
24 consumer exclusively for heating, other than residential heating
25 purposes[.
26 (B) Enhanced diesel motor fuel sold by a petroleum business registered
27 under article twelve-A of this chapter as a distributor of diesel motor
28 fuel to the consumer exclusively for heating, other than residential
29 heating purposes, but] only if such [enhanced] NON-HIGHWAY diesel motor
30 fuel is delivered into a storage tank which is not equipped with a hose
31 or other apparatus by which such fuel can be dispensed into the fuel
32 tank of a motor vehicle and such storage tank is attached to the heating
33 unit burning such fuel[, provided, that with respect to each delivery of
34 such fuel over four thousand five hundred gallons, to obtain this
35 exemption there shall be required a certificate signed by the purchaser
36 stating that the product will be used exclusively for heating, other
37 than residential heating purposes.
38 (C)] (B) Calculation of partial exemption. [Notwithstanding any other
39 provision of this article, commencing April first, two thousand one and
40 ending August thirty-first, two thousand two, the amount of the partial
41 exemption under this paragraph shall be determined by multiplying the
42 quantity of diesel motor fuel and residual petroleum product eligible
43 for the exemption times the sum of the then current rate of the supple-
44 mental tax imposed by section three hundred one-j of this article and
45 twenty percent of the then current rate of the tax imposed by section
46 three hundred one-a of this article, with respect to the specific diesel
47 motor fuel or residual petroleum product rate, as the case may be, and
48 commencing September first, two thousand two, the amount of the] THE
49 partial exemption under this paragraph shall be determined by multiply-
50 ing the quantity of NON-HIGHWAY diesel motor fuel and residual petroleum
51 product eligible for the exemption times the sum of the then current
52 rate of the supplemental tax imposed by section three hundred one-j of
53 this article and forty-six percent of the then current rate of the tax
54 imposed by section three hundred one-a of this article, with respect to
55 the specific NON-HIGHWAY diesel motor fuel or residual petroleum product
56 rate, as the case may be.
S. 2811--A 69 A. 4011--A
1 (e) Sales of NON-HIGHWAY diesel motor fuel and residual petroleum
2 product to registered distributors of diesel motor fuel and registered
3 residual petroleum product businesses.
4 (1) NON-HIGHWAY Diesel motor fuel[, which is not enhanced diesel motor
5 fuel,] sold by a person registered under article twelve-A of this chap-
6 ter as a distributor of diesel motor fuel to a person registered under
7 such article twelve-A as a distributor of diesel motor fuel where such
8 sale is not a retail sale or a sale that involves a delivery at a fill-
9 ing station or into a repository equipped with a hose or other apparatus
10 by which such NON-HIGHWAY DIESEL MOTOR fuel can be dispensed into the
11 fuel tank of a motor vehicle.
12 (2) Residual petroleum product sold by a person registered under this
13 article as a residual petroleum product business to a person registered
14 under this article as a residual petroleum product business where such
15 sale is not a retail sale. Provided, however, that the commissioner [of
16 taxation and finance] may require such documentary proof to qualify for
17 any exemption provided in this section as the commissioner deems appro-
18 priate, including the expansion of any certifications required pursuant
19 to section two hundred eighty-five-a or two hundred eighty-five-b of
20 this chapter to cover the taxes imposed by this article.
21 (1) Residual petroleum product and NON-HIGHWAY diesel motor fuel
22 [(which is not enhanced diesel motor fuel)] sold to an electric corpo-
23 ration, as described in subdivision (a) of section three hundred one-d
24 of this article, which is registered with the department [of taxation
25 and finance] as a petroleum business tax direct pay permittee, and used
26 by such electric corporation to fuel generators for the purpose of manu-
27 facturing or producing electricity where such electric corporation
28 provides a copy of a direct pay permit authorized and issued by the
29 commissioner [of taxation and finance], to the petroleum business making
30 such sale. If so registered, such corporation shall be a taxpayer under
31 this article and (i) such electric corporation shall file a return
32 monthly and pay the applicable tax under this article, after the appli-
33 cation of allowable credits, on all such purchases directly to the
34 commissioner, (ii) such electric corporation shall be subject to all of
35 the provisions of this article relating to the responsibilities and
36 liabilities of taxpayers under this article with respect to such resi-
37 dual petroleum product and NON-HIGHWAY diesel motor fuel.
38 (g) Sales or uses of NON-HIGHWAY diesel motor fuel and residual petro-
39 leum product for farm production. NON-HIGHWAY Diesel motor fuel or resi-
40 dual petroleum product sold to or used by a consumer who purchases or
41 uses such NON-HIGHWAY DIESEL MOTOR fuel or product for use or consump-
42 tion directly and exclusively in the production for sale of tangible
43 personal property by farming, but only if all such NON-HIGHWAY DIESEL
44 MOTOR fuel or product is delivered on the farm site and is consumed
45 other than on the PUBLIC highways of this state (except for the use of
46 the PUBLIC highway to reach adjacent farmlands)[; provided, however,
47 that a farmer may purchase no more than four thousand five hundred
48 gallons of diesel motor fuel in a thirty-day period for such use or
49 consumption exempt from the measure of the tax imposed by section three
50 hundred one-a of this article, except in accordance with prior clearance
51 given by the commissioner].
52 (h) Exemption for certain not-for-profit organizations. There shall be
53 exempt from the measure of the petroleum business tax imposed by section
54 three hundred one-a of this article a sale or use of residual petroleum
55 product, OR NON-HIGHWAY diesel motor fuel [(which is not enhanced diesel
56 motor fuel) or dyed diesel motor fuel,] to or by an organization which
S. 2811--A 70 A. 4011--A
1 has qualified under paragraph four or five of subdivision (a) of section
2 eleven hundred sixteen of this chapter where such NON-HIGHWAY diesel
3 motor fuel or residual petroleum product is exclusively for use and
4 consumption by such organization, but only if all of such NON-HIGHWAY
5 diesel motor fuel or product is consumed other than on the PUBLIC high-
6 ways of this state. Provided, however, this exemption shall in no event
7 apply to a sale of NON-HIGHWAY diesel motor fuel which involves a deliv-
8 ery at a filling station or into a repository which is equipped with a
9 hose or other apparatus by which such NON-HIGHWAY DIESEL MOTOR fuel can
10 be dispensed into the fuel tank of a motor vehicle and all deliveries
11 hereunder shall be made to the premises occupied by the qualifying
12 organization and used by such organization in furtherance of the exempt
13 purposes of such organization. Provided, however, that the commissioner
14 shall require such documentary proof to qualify for any exemption
15 provided herein as the commissioner deems appropriate. Provided,
16 further, the distributor selling such NON-HIGHWAY DIESEL MOTOR fuel and
17 product shall separately report on its return the gallonage sold during
18 the reporting period exempt from tax under the provisions of this subdi-
19 vision and provide such other information with respect to such sales as
20 the commissioner deems appropriate to prevent evasion. [The term "dyed
21 diesel motor fuel" as used in this subdivision shall have the same mean-
22 ing it has in subdivision eighteen of section two hundred eighty-two of
23 this chapter.]
24 (i) Exemption for passenger commuter ferries. A use by a passenger
25 commuter ferry of NON-HIGHWAY diesel motor fuel or residual petroleum
26 product where such NON-HIGHWAY diesel motor fuel or residual petroleum
27 product was used and consumed by a passenger commuter ferry exclusively
28 in providing mass transportation service. Provided, that the commission-
29 er shall require such documentary proof to qualify for any exemption
30 provided hereunder as the commissioner deems appropriate.
31 S 22. Subdivision (j) of section 301-b of the tax law is REPEALED.
32 S 23. Subdivisions (a), (e), (f), (h), (i), (j), (k), (l) and (m) of
33 section 301-c of the tax law, subdivision (a) as amended by section 4
34 and subdivision (l) as added by section 5 of part H of chapter 407 of
35 the laws of 1999, subparagraph (B) of paragraph 2 of subdivision (a) as
36 amended by section 2 of part X of chapter 63 of the laws of 2000, subdi-
37 visions (e) and (f) as added by chapter 170 of the laws of 1994, subdi-
38 vision (h) as amended by chapter 302 of the laws of 2006, subdivisions
39 (i), (j) and (k) as added by chapter 309 of the laws of 1996, and subdi-
40 vision (m) as added by chapter 468 of the laws of 2000, are amended to
41 read as follows:
42 (a) NON-HIGHWAY Diesel motor fuel used for heating purposes. (1) Total
43 residential heating reimbursement. NON-HIGHWAY Diesel motor fuel
44 purchased in this state and sold by such purchaser to a consumer for use
45 exclusively for residential heating purposes but only where (i) such
46 NON-HIGHWAY diesel motor fuel is delivered into a storage tank which is
47 not equipped with a hose or other apparatus by which such NON-HIGHWAY
48 DIESEL MOTOR fuel can be dispensed into the fuel tank of a motor vehicle
49 and such storage tank is attached to the heating unit burning such NON-
50 HIGHWAY DIESEL MOTOR fuel, (ii) the tax imposed pursuant to this article
51 has been paid with respect to such NON-HIGHWAY diesel motor fuel and the
52 entire amount of such tax has been absorbed by such purchaser, and (iii)
53 such purchaser possesses documentary proof satisfactory to the commis-
54 sioner evidencing the absorption by it of the entire amount of the tax
55 imposed pursuant to this article. Provided, however, that the commis-
56 sioner is authorized, in the event that the commissioner determines that
S. 2811--A 71 A. 4011--A
1 it would not threaten the integrity of the administration and enforce-
2 ment of the tax imposed by this article, to provide a reimbursement with
3 respect to a retail sale to a consumer for residential heating purposes
4 of less than ten gallons of NON-HIGHWAY diesel motor fuel provided such
5 fuel is not dispensed into the tank of a motor vehicle. [Provided,
6 further, that with respect to each delivery of enhanced diesel motor
7 fuel of over four thousand five hundred gallons, to obtain this
8 reimbursement there shall be required a certificate signed by the
9 consumer stating that the product will be used exclusively for residen-
10 tial heating purposes.]
11 (2) Partial non-residential heating reimbursement. (A) NON-HIGHWAY
12 Diesel motor fuel purchased in this state and sold by such purchaser to
13 a consumer for use exclusively for heating, other than for residential
14 heating purposes, but only where (i) such NON-HIGHWAY diesel motor fuel
15 is delivered into a storage tank which is not equipped with a hose or
16 other apparatus by which such NON-HIGHWAY DIESEL MOTOR fuel can be
17 dispensed into the fuel tank of a motor vehicle and such storage tank is
18 attached to the heating unit burning such NON-HIGHWAY DIESEL MOTOR fuel,
19 (ii) the tax imposed pursuant to this article has been paid with respect
20 to such NON-HIGHWAY diesel motor fuel and the entire amount of such tax
21 has been absorbed by such purchaser, and (iii) such purchaser possesses
22 documentary proof satisfactory to the commissioner evidencing the
23 absorption by it of the entire amount of the tax imposed pursuant to
24 this article. [Provided, however, that with respect to each delivery of
25 enhanced diesel motor fuel of over four thousand five hundred gallons,
26 to obtain this reimbursement there shall be required a certificate
27 signed by the consumer stating that the product will be used exclusively
28 for heating, other than for residential heating purposes.]
29 (B) Calculation of partial reimbursement. Notwithstanding any other
30 provision of this article, [commencing April first, two thousand one and
31 ending August thirty-first, two thousand two, the amount of the
32 reimbursement under this paragraph shall be determined by multiplying
33 the quantity of diesel motor fuel eligible for the reimbursement times
34 the sum of the then current rate of the supplemental tax imposed by
35 section three hundred one-j of this article and twenty percent of the
36 then current rate of the tax imposed by section three hundred one-a of
37 this article, with respect to the specific diesel motor fuel rate, as
38 the case may be, and commencing September first, two thousand two,] the
39 amount of the reimbursement under this paragraph shall be determined by
40 multiplying the quantity of NON-HIGHWAY diesel motor fuel eligible for
41 the reimbursement times the sum of the then current rate of the supple-
42 mental tax imposed by section three hundred one-j of this article and
43 forty-six percent of the then current rate of the tax imposed by section
44 three hundred one-a of this article, with respect to the [specific]
45 NON-HIGHWAY diesel motor fuel rate, as the case may be.
46 (e) NON-HIGHWAY Diesel motor fuel and residual petroleum product used
47 for farm production. NON-HIGHWAY Diesel motor fuel or residual petroleum
48 product purchased in this state and sold by such purchaser to a consumer
49 for use or consumption directly and exclusively in the production for
50 sale of tangible personal property by farming, but only if all of such
51 NON-HIGHWAY DIESEL MOTOR fuel or product is delivered on the farm site
52 and is consumed other than on the PUBLIC highways of this state (except
53 for the use of the PUBLIC highway to reach adjacent farmlands)[;
54 provided, however, that a subsequent purchaser shall be eligible for
55 this reimbursement with respect to no more than four thousand five
56 hundred gallons of diesel motor fuel sold to a consumer in a thirty-day
S. 2811--A 72 A. 4011--A
1 period for such use or consumption, except in accordance with prior
2 clearance given by the commissioner]. This reimbursement may be claimed
3 only where (i) the tax imposed pursuant to this article has been paid
4 with respect to such NON-HIGHWAY diesel motor fuel or residual petroleum
5 product and the entire amount of such tax has been absorbed by such
6 purchaser, and (ii) such purchaser possesses documentary proof satisfac-
7 tory to the commissioner evidencing the absorption by it of the entire
8 amount of the tax imposed pursuant to this article. Provided, however,
9 that the commissioner shall require such documentary proof to qualify
10 for any reimbursement of tax provided by this section as the commission-
11 er deems appropriate[, including any certification required pursuant to
12 section two hundred eighty-five-b of this chapter and any such prior
13 clearance described in the first sentence of this subdivision].
14 (f) Motor fuel used for farm production. No more than one thousand
15 five hundred gallons of motor fuel purchased in this state in a thirty-
16 day period or a greater amount which has been given prior clearance by
17 the commissioner, by a consumer for use or consumption directly and
18 exclusively in the production for sale of tangible personal property by
19 farming, but only if all of such fuel is delivered on the farm site and
20 is consumed other than on the PUBLIC highways of this state (except for
21 the use of the PUBLIC highway to reach adjacent farmlands). This
22 reimbursement to such purchaser who used such motor fuel in the manner
23 specified in this subdivision may be claimed only where, (i) the tax
24 imposed pursuant to this article has been paid with respect to such
25 motor fuel and the entire amount of such tax has been absorbed by such
26 purchaser, and (ii) such purchaser possesses documentary proof satisfac-
27 tory to the commissioner evidencing the absorption by it of the entire
28 amount of the tax imposed pursuant to this article. Provided, however,
29 that the commissioner shall require such documentary proof to qualify
30 for any reimbursement of tax provided by this subdivision as the commis-
31 sioner deems appropriate. The commissioner is hereby empowered to make
32 such provisions as deemed necessary to define the procedures for grant-
33 ing prior clearance for purchases of more than one thousand five hundred
34 gallons in a thirty-day period.
35 (h) A subsequent purchaser which is registered as a distributor of
36 diesel motor fuel shall be eligible for reimbursement of the tax imposed
37 by section three hundred one-a of this article with respect to gallonage
38 of residual petroleum product[,] AND NON-HIGHWAY diesel motor fuel
39 [(which is not enhanced diesel motor fuel) and dyed diesel motor fuel,]
40 subsequently sold by such purchaser to an organization which has quali-
41 fied under paragraph four or five of subdivision (a) of section eleven
42 hundred sixteen of this chapter for the exclusive use and consumption by
43 such organization. Provided, however, this exemption shall in no event
44 apply to a sale of NON-HIGHWAY diesel motor fuel which involves a deliv-
45 ery at a filling station or into a repository which is equipped with a
46 hose or other apparatus by which such NON-HIGHWAY DIESEL MOTOR fuel can
47 be dispensed into the fuel tank of a motor vehicle and all deliveries
48 hereunder shall be made to the premises occupied by the qualifying
49 organization and used by such organization in furtherance of the exempt
50 purposes of such organization. This reimbursement may be claimed only
51 where (i) the tax imposed pursuant to this article has been paid with
52 respect to such NON-HIGHWAY diesel motor fuel or residual petroleum
53 product and the entire amount of such tax has been absorbed by such
54 purchaser, and (ii) such purchaser possesses documentary proof satisfac-
55 tory to the commissioner evidencing the absorption by it of the entire
56 amount of the tax imposed pursuant to this article. Provided, further,
S. 2811--A 73 A. 4011--A
1 that the commissioner shall require such other documentary proof to
2 qualify for any reimbursement of tax provided by this section as the
3 commissioner deems appropriate. [The term "dyed diesel motor fuel" as
4 used in this subdivision shall have the same meaning it has in subdivi-
5 sion eighteen of section two hundred eighty-two of this chapter.]
6 (i) Reimbursement for commercial gallonage. (1) [Commencing March
7 first, nineteen hundred ninety-seven, a] A reimbursement shall be
8 allowed to a consumer with respect to gallonage of [nonautomotive-type]
9 NON-HIGHWAY diesel motor fuel [(which is not enhanced diesel motor
10 fuel)] or residual petroleum product (i) which was purchased by such
11 consumer and where the supplemental tax imposed by section three hundred
12 one-j of this article with respect to such gallonage was paid by a
13 petroleum business and passed through to such consumer, (ii) such
14 consumer absorbed the entirety of such tax in the purchase price of such
15 gallonage, and (iii) such gallonage was used and consumed by such
16 consumer exclusively as "commercial gallonage". Provided, however, that
17 the commissioner shall require such documentary proof to qualify for any
18 reimbursement of tax provided by this subdivision as the commissioner
19 deems appropriate, including a certification by the consumer that the
20 product was used and consumed exclusively as "commercial gallonage" by
21 such consumer.
22 (2) Calculation. The amount of the reimbursement shall be determined
23 by multiplying the quantity of "commercial gallonage" eligible for
24 reimbursement times the then current rate of the supplemental tax
25 imposed by section three hundred one-j of this article with respect to
26 [nonautomotive-type] NON-HIGHWAY diesel motor fuel or residual petroleum
27 product, as the case may be. Any reimbursement of tax may be applied for
28 not more often than monthly.
29 (j) Reimbursement for manufacturing gallonage. [Commencing January
30 first, nineteen hundred ninety-eight, a] A subsequent purchaser shall be
31 eligible for reimbursement of any taxes imposed under this article with
32 respect to gallonage of residual petroleum product and NON-HIGHWAY
33 diesel motor fuel [(which is not enhanced diesel motor fuel),] subse-
34 quently sold by such purchaser to a consumer as "manufacturing gallo-
35 nage." This reimbursement may be claimed only where (1) any tax imposed
36 pursuant to this article has been paid with respect to such gallonage
37 and the entire amount of such tax has been absorbed by such purchaser,
38 and (2) such purchaser possesses documentary proof satisfactory to the
39 commissioner evidencing the absorption by it of the entire amount of
40 such tax. Provided, however, that the commissioner shall require such
41 documentary proof to qualify for any reimbursement of tax provided by
42 this subdivision as the commissioner deems appropriate including a
43 certificate by the consumer that such product is to be used and consumed
44 exclusively as "manufacturing gallonage".
45 (k) Reimbursement for railroad gallonage. (1) [Commencing January
46 first, nineteen hundred ninety-seven, a] A subsequent purchaser, which
47 is registered as a distributor of diesel motor fuel, shall be eligible
48 for a reimbursement in accordance with this subdivision with respect to
49 NON-HIGHWAY diesel motor fuel subsequently sold by such purchaser to a
50 consumer as "railroad diesel".
51 (2) The amount of the reimbursement with respect to such product shall
52 be equal to the difference between (i) the tax actually paid under this
53 article by a petroleum business with respect to such product and subse-
54 quently passed through to and absorbed by such purchaser, and (ii) the
55 tax under this article that would have been paid with respect to such
56 product had an importing distributor sold such product directly to a
S. 2811--A 74 A. 4011--A
1 purchaser as "railroad diesel". Provided that the commissioner shall
2 require such documentary proof as the commissioner deems necessary to
3 substantiate a reimbursement claim under this subdivision. Any
4 reimbursement of tax may be applied for not more often than monthly.
5 (l) Reimbursement for mining and extraction. A purchaser shall be
6 eligible for reimbursement of the tax imposed by section three hundred
7 one-a of this article with respect to gallonage of residual petroleum
8 product and NON-HIGHWAY diesel motor fuel, purchased for use and
9 consumption directly and exclusively in the production of tangible
10 personal property for sale by mining or extracting, but only if all of
11 such fuel or product is delivered at the mining or extracting site and
12 is consumed other than on the PUBLIC highways of this state; provided,
13 however, this reimbursement shall in no event apply to a sale of
14 NON-HIGHWAY diesel motor fuel which involves a delivery at a filling
15 station. This reimbursement may be claimed only where (i) the tax
16 imposed pursuant to this article has been paid with respect to such
17 NON-HIGHWAY diesel motor fuel or residual petroleum product and the
18 entire amount of such tax has been absorbed by such purchaser, and (ii)
19 such purchaser possesses documentary proof satisfactory to the commis-
20 sioner evidencing the absorption by it of the entire amount of the tax
21 imposed pursuant to this article. Provided, however, that the commis-
22 sioner shall require such documentary proof to qualify for any
23 reimbursement of tax provided by this section as the commissioner deems
24 appropriate.
25 (m) Reimbursement for passenger commuter ferries. A use by a passenger
26 commuter ferry of NON-HIGHWAY diesel motor fuel or residual petroleum
27 product where such NON-HIGHWAY diesel motor fuel or residual petroleum
28 product was used and consumed by a passenger commuter ferry exclusively
29 in providing mass transportation service. This reimbursement may be
30 claimed only where (1) any tax imposed pursuant to this article has been
31 paid with respect to such gallonage and the entire amount of such tax
32 has been absorbed by such purchaser, and (2) such ferry possesses docu-
33 mentary proof satisfactory to the commissioner evidencing the absorption
34 by it of the entire amount of such tax. Provided, that the commissioner
35 shall require such documentary proof to qualify for any reimbursement
36 provided hereunder as the commissioner deems appropriate.
37 S 24. Paragraphs 1 and 2 of subdivision (a) of section 301-d of the
38 tax law, as amended by chapter 410 of the laws of 1991, are amended to
39 read as follows:
40 (1) Credit. Residual petroleum product and NON-HIGHWAY diesel motor
41 fuel [(which is not enhanced diesel motor fuel)] (i) imported into this
42 state by such electric corporation which is a petroleum business where
43 the tax liability under section three hundred one-a of this article is
44 imposed on such electric corporation and where the residual petroleum or
45 NON-HIGHWAY diesel product so imported is used by such electric corpo-
46 ration to fuel generators for the purpose of manufacturing or producing
47 electricity or (ii) purchased in this state by such electric corporation
48 by the use of a valid direct payment permit whereby such electric corpo-
49 ration assumed full liability for tax with respect to such product where
50 such product so purchased is used by such electric corporation to fuel
51 generators for the purpose of manufacturing or producing electricity.
52 (2) Reimbursement. Residual petroleum product and NON-HIGHWAY diesel
53 motor fuel [(which is not enhanced diesel motor fuel)] purchased in this
54 state by such electric corporation where the tax imposed by section
55 three hundred one-a of this article with respect to such residual petro-
56 leum or diesel product was paid and the utility absorbed such tax in the
S. 2811--A 75 A. 4011--A
1 purchase price of such fuel and where such product is used by such elec-
2 tric corporation to fuel generators for the purpose of manufacturing or
3 producing electricity.
4 S 25. Subdivision (c) of section 301-e of the tax law, as amended by
5 chapter 2 of the laws of 1995, is amended to read as follows:
6 (c) Kero-jet fuel component. The kero-jet fuel component shall be
7 determined by multiplying the kero-jet fuel rate times the number of
8 gallons of (1) kero-jet fuel imported or caused to be imported into this
9 state by an aviation fuel business and consumed in this state by such
10 business in the operation of its aircraft; and (2) kero-jet fuel, which
11 has not been previously included in the measure of the tax imposed by
12 this section, (i) which is sold in this state by an aviation fuel busi-
13 ness to persons other than those registered under this article as
14 aviation fuel businesses or (ii) which is consumed in this state by an
15 aviation fuel business in the operation of its aircraft. Provided that
16 importation of kero-jet fuel in the fuel tanks of aircraft shall be
17 importation for the purposes of this section. The basic kero-jet fuel
18 rate shall be [one and nine-tenths] SIX AND EIGHT-TENTHS cents per
19 gallon. The rate shall be adjusted at the same time as the rates of the
20 components of the petroleum business tax imposed by section three
21 hundred one-a of this article, and the method of making adjustments to
22 the kero-jet fuel rate shall be the same as the method used for such
23 rates. [Provided, however, that commencing July first, nineteen hundred
24 ninety-one, the kero-jet fuel rate shall be equal to the motor fuel and
25 automotive-type diesel motor fuel rate set by subdivision (e) of section
26 three hundred one-a of this article as such rate may be adjusted as
27 provided in such subdivision. Provided, further, that commencing Septem-
28 ber first, nineteen hundred ninety-five, the kero-jet fuel rate shall be
29 five and two-tenths cents per gallon. The rate shall be adjusted at the
30 same time as the rates of the components of the petroleum business tax
31 imposed by section three hundred one-a of this article, and the method
32 of making adjustments to the kero-jet fuel rate shall be the same as the
33 method used for such rates.]
34 S 26. Sections 301-f and 301-g of the tax law are REPEALED.
35 S 27. Paragraph 2 of subdivision (a) of section 301-h of the tax law,
36 as amended by chapter 170 of the laws of 1994, is amended to read as
37 follows:
38 (2) The rate of the tax imposed by this section shall be equal to the
39 motor fuel and [automotive-type] HIGHWAY diesel motor fuel rate set by
40 subdivision (e) of section three hundred one-a plus the rate of the
41 supplemental tax imposed by section three hundred one-j of this article
42 as such rates are specified therein and as they may be adjusted as
43 provided in such provisions. [In addition, the tax surcharge imposed by
44 section three hundred-one-g of this article shall be imposed with
45 respect to the tax imposed by this section as if the tax imposed here-
46 under were imposed by section three hundred-one-a of this article.]
47 S 28. Section 301-i of the tax law is REPEALED.
48 S 29. Paragraphs 1, 2, 3 and 4 of subdivision (a) and subdivision (c)
49 of section 301-j of the tax law, paragraph 1 of subdivision (a) as
50 amended and paragraphs 2, 3 and 4 of subdivision (a) as added by chapter
51 309 of the laws of 1996 and subdivision (c) as amended by chapter 410 of
52 the laws of 1991, are amended to read as follows:
53 (1) In addition to the taxes imposed by sections three hundred one-a
54 and three hundred one-e of this article, [for taxable months commencing
55 on or after July first, nineteen hundred ninety-one] there is hereby
56 imposed upon every petroleum business subject to tax imposed under
S. 2811--A 76 A. 4011--A
1 section three hundred one-a of this article and every aviation fuel
2 business subject to the aviation gasoline component of the tax imposed
3 under section three hundred one-e of this article, a supplemental month-
4 ly tax for each or any part of a taxable month at a rate of [four and
5 one-half] SIX AND EIGHT-TENTHS cents per gallon with respect to the
6 products included in each component of the taxes imposed by such
7 [sections] SECTION three hundred one-a and the aviation gasoline compo-
8 nent of the tax imposed by such section three hundred one-e of this
9 article.
10 (2) Provided, however, [commencing March first, nineteen hundred nine-
11 ty-seven,] "commercial gallonage," as such term is defined in subdivi-
12 sion (k) of section three hundred of this article, shall be exempt from
13 the measure of the tax imposed under this section.
14 (3) Provided, further, [commencing January first, nineteen hundred
15 ninety-seven,] "railroad diesel," as such term is defined in subdivision
16 (l) of section three hundred of this article, shall be exempt from the
17 measure of the tax imposed under this section.
18 (4) Provided, further, [commencing January first, nineteen hundred
19 ninety-eight,] a separate per gallon rate shall apply with respect to
20 [automotive-type] HIGHWAY diesel motor fuel. Such rate shall be deter-
21 mined by taking the adjusted rate per gallon of tax imposed under para-
22 graph one of this subdivision as adjusted in accordance with paragraph
23 five of this subdivision [which commences on such date] and subtracting
24 therefrom [three-quarters of one cent. On January first, nineteen
25 hundred ninety-nine, the automotive-type diesel motor fuel rate shall be
26 determined by taking the adjusted rate per gallon of tax imposed under
27 paragraph one of this subdivision, as adjusted in accordance with para-
28 graph five of this subdivision which commences on such date and
29 subtracting therefrom three-quarters of one cent. On April first, nine-
30 teen hundred ninety-nine, there shall be a new rate applicable to such
31 fuel which shall be such adjusted rate of tax per gallon under such
32 paragraph one of this subdivision, as adjusted in accordance with para-
33 graph five of this subdivision then in effect, minus] one and three-
34 quarters cents. Commencing January first, two thousand TWELVE, and each
35 January thereafter, the per gallon rate applicable to [automotive-type]
36 HIGHWAY diesel motor fuel shall be the adjusted rate under paragraph one
37 of this subdivision as adjusted in accordance with paragraph five of
38 this subdivision which commences on such date minus one and three-quar-
39 ters cents. The resulting rate under this paragraph shall be expressed
40 in hundredths of a cent.
41 (c) Rate adjustment [and surcharge]. [Commencing January first, nine-
42 teen hundred ninety-two and on the first day of January every year ther-
43 eafter, the] THE rate of the supplemental tax shall be adjusted at the
44 same time as the rates of the components of the taxes imposed by
45 sections three hundred one-a and three hundred one-e of this article,
46 and the method of making adjustments to the rate of the supplemental tax
47 shall be the same as the method used for such rates.
48 S 30. The opening paragraph and subdivisions (a) and (c) of section
49 301-1 of the tax law, as added by chapter 170 of the laws of 1994, are
50 amended to read as follows:
51 There shall be allowed to a registered petroleum business or aviation
52 fuel business a refund under this section for the taxes [and tax
53 surcharge] imposed by sections three hundred one-a, three hundred one-e,
54 [three hundred one-g] and three hundred one-j of this article for the
55 tax paid under such sections with respect to gallonage which is repres-
56 ented by a worthless debt as follows:
S. 2811--A 77 A. 4011--A
1 (a) The refund shall be allowed to a registered petroleum business or
2 aviation fuel business for gallonage with respect to which tax liability
3 for the taxes under this article is imposed on such petroleum business
4 or aviation fuel business where (i) such gallonage has been included in
5 the reports filed by such petroleum business or aviation fuel business
6 and all the taxes under this article with respect to such gallonage have
7 been paid by such business, (ii) such gallonage was sold in-bulk by such
8 petroleum or aviation fuel business to a purchaser for such purchaser's
9 own use and consumption and (iii) such sale gave rise to a debt which
10 became worthless, as that term is used for federal income tax purposes,
11 and where such debt is deducted as a worthless debt for federal income
12 tax purposes for the taxable year covering the month in which such
13 refund claim relating to such debt is filed. Provided, however, for the
14 purposes of this section, a sale of motor fuel and [enhanced] HIGHWAY
15 diesel motor fuel to a filling station shall be deemed to be a sale
16 in-bulk for such filling station's own use and consumption and,
17 provided, further, in no event shall a worthless debt qualify with
18 respect to the refund hereunder where such debt arises from a retail
19 sale at a filling station or sale wherein product is delivered directly
20 into the fuel tank of a motor vehicle, airplane or other conveyance.
21 (c) Upon receipt of a claim for refund in processible form, interest
22 shall be allowed and paid at the overpayment rate set by the commission-
23 er pursuant to subdivision twenty-sixth of section one hundred seventy-
24 one of this chapter from the date of the receipt of the refund claim to
25 the date immediately preceding the date of the refund check except no
26 such interest shall be allowed or paid if the refund check is mailed
27 within ninety days of such receipt and except no interest shall be
28 allowed or paid if the amount thereof would be less than one dollar.
29 Provided, further, the refund shall be granted pro rata against sections
30 three hundred one-a, three hundred one-e, [three hundred one-g] and
31 three hundred one-j of this article, as the case may be, to the same
32 extent as represented by the remittance of the petroleum business or
33 aviation fuel business with respect to the gallonage represented by the
34 worthless debt.
35 S 31. Subdivision (b) of section 302 of the tax law, as added by chap-
36 ter 190 of the laws of 1990, is amended to read as follows:
37 (b) Residual petroleum product business. The department [of taxation
38 and finance], upon the application of a corporation or unincorporated
39 business, shall register such corporation or unincorporated business as
40 a residual petroleum product business except that the commissioner [of
41 taxation and finance] may refuse to register an applicant for any of the
42 grounds specified in subdivision two or five of section two hundred
43 eighty-three of this chapter or in subdivision (d) of this section. The
44 application shall be in such form and contain such information as the
45 commissioner shall prescribe. All of the provisions of subdivisions two,
46 four, five, six, seven, eight, nine and ten of section two hundred
47 eighty-three of this chapter relating to registration of distributors
48 shall be applicable to the registration of residual petroleum product
49 businesses under this section with the same force and effect as if the
50 language of those subdivisions had been incorporated in full in this
51 section and had expressly referred to the registration of residual
52 petroleum product businesses and the tax imposed by this article, with
53 such modification as may be necessary in order to adapt the language of
54 such provisions to the provisions of this article, provided, specif-
55 ically, that the term "distributor" shall be read as "residual petroleum
56 product business" and the [terms] TERM "motor fuel" [and "automotive
S. 2811--A 78 A. 4011--A
1 fuel"] shall be read as "residual petroleum product". Provided, however,
2 that if the commissioner is satisfied that the requirements of such
3 provisions for registration are not necessary in order to protect tax
4 revenues, the commissioner may limit or modify such requirements with
5 respect to corporations or unincorporated businesses not required to be
6 registered as distributors of motor fuel or diesel motor fuel.
7 S 32. Section 312 of the tax law, as amended by chapter 166 of the
8 laws of 1991 and subdivision (b) as amended by section 8 of part EE of
9 chapter 63 of the laws of 2000, is amended to read as follows:
10 S 312. Deposit and disposition of revenue.--[(a) Except as provided in
11 sections three hundred one-f and three hundred one-g of this chapter, of
12 all of the taxes, interest and penalties collected or received by the
13 commissioner of taxation and finance under section three hundred one of
14 this article with respect to any taxable year commencing on or after
15 April first, nineteen hundred eighty-four and to that portion of any
16 taxable year commencing prior thereto to the extent of that portion of
17 such year which includes the period which commences with April first,
18 nineteen hundred eighty-four, seventy-two and seven-tenths percent shall
19 be deposited and disposed of pursuant to the provisions of section one
20 hundred seventy-one-a of this chapter and the balance thereof shall be
21 deposited in the mass transportation operating assistance fund to the
22 credit of the metropolitan mass transportation operating assistance
23 account and the public transportation systems operating assistance
24 account thereof in the manner provided by subdivision eleven of section
25 one hundred eighty-two-a of this chapter. Provided, however, that the
26 actual amount of such taxes, interest and penalties which shall be
27 deposited in such mass transportation operating assistance fund pursuant
28 to this section during the twelve-month period from April first, nine-
29 teen hundred eighty-four to and including March thirty-first, nineteen
30 hundred eighty-five shall not be less than an amount which, when added
31 to the actual amount that is deposited in such fund during such twelve-
32 month period and that is attributable to the taxes, interest and penal-
33 ties collected and received under section one hundred eighty-two-a of
34 this chapter, yields the sum of seventy-nine million five hundred thou-
35 sand dollars and provided further that of such actual amounts deposited
36 in such fund pursuant to this section and to section one hundred eight-
37 y-two-a of this chapter during the twelve-month period from April first,
38 nineteen hundred eighty-five to March thirty-first, nineteen hundred
39 eighty-six and during the twelve-month period from April first, nineteen
40 hundred eighty-six to March thirty-first, nineteen hundred eighty-seven,
41 the amount which shall be deposited to the credit of the public trans-
42 portation systems operating assistance account thereof during each such
43 period shall be not less than thirty-six million dollars. Provided
44 further that if the total amount deposited in the mass transportation
45 operating assistance fund during the twelve month period commencing
46 April first, nineteen hundred eighty-five pursuant to this section and
47 to section one hundred eighty-two-a of this chapter is less than eighty
48 million dollars, the comptroller shall deposit to the credit of the
49 metropolitan mass transportation operating assistance account on or
50 after April first, nineteen hundred eighty-six and on or before June
51 thirtieth, nineteen hundred eighty-six from any taxes, interest, and
52 penalties collected or received by the commissioner of taxation and
53 finance under this article in addition to amounts which would otherwise
54 be deposited to the credit of the mass transportation operating assist-
55 ance fund, an amount equal to the difference between eighty million
56 dollars and the amounts actually deposited in the mass transportation
S. 2811--A 79 A. 4011--A
1 operating assistance fund during such twelve-month period pursuant to
2 this section and to section one hundred eighty-two-a of this chapter.
3 Provided further that if the total amount deposited in the mass trans-
4 portation operating assistance fund during the twelve month period
5 commencing April first, nineteen hundred eighty-six pursuant to this
6 section and to section one hundred eighty-two-a of this chapter, exclu-
7 sive of the amount deposited in such fund to the credit of the metropol-
8 itan mass transportation operating assistance account on or after April
9 first, nineteen hundred eighty-six and on or before June thirtieth,
10 nineteen hundred eighty-six pursuant to the preceding sentence, is less
11 than eighty million dollars, the comptroller shall deposit to the credit
12 of the metropolitan mass transportation operating assistance account on
13 or after April first, nineteen hundred eighty-seven and on or before
14 June thirtieth, nineteen hundred eighty-seven from any taxes, interest,
15 and penalties collected or received by the commissioner of taxation and
16 finance under this article in addition to amounts which would otherwise
17 be deposited to the credit of the mass transportation operating assist-
18 ance fund, an amount equal to the difference between eighty million
19 dollars and the amounts actually deposited in the mass transportation
20 operating assistance fund during such twelve-month period pursuant to
21 this section and to section one hundred eighty-two-a of this chapter,
22 exclusive of the amount deposited in such fund to the credit of the
23 metropolitan mass transportation operating assistance account on or
24 after April first, nineteen hundred eighty-six and on or before June
25 thirtieth, nineteen hundred eighty-six pursuant to the preceding
26 sentence. Provided, further, however, with respect to all taxes, and
27 interest and penalties relating thereto, collected or received by the
28 commissioner of taxation and finance under the tax imposed by section
29 three hundred one of this article with respect to any taxable year
30 commencing on and after June first, nineteen hundred ninety and to that
31 portion of any taxable year commencing prior thereto to the extent of
32 that portion of such year which includes the period which commences June
33 first, nineteen hundred ninety, eighty-nine and one-half percent of such
34 collections shall be deposited and disposed of pursuant to the
35 provisions of section one hundred seventy-one-a of this chapter and the
36 balance thereof shall be deposited in the mass transportation operating
37 assistance fund to the credit of the metropolitan mass transportation
38 operating assistance account and the public transportation systems oper-
39 ating assistance account thereof in the manner provided by subdivision
40 eleven of section one hundred eighty-two-a of this chapter.
41 (b) Of all of the taxes collected or received by the commissioner on
42 or before March thirty-first, nineteen hundred ninety-one under the
43 taxes imposed by sections three hundred one-a and three hundred one-e of
44 this article, and all interest and penalties relating thereto, eighty-
45 seven and five-hundredths percent of such collections shall be deposited
46 and disposed of pursuant to the provisions of section one hundred seven-
47 ty-one-a of this chapter and the balance thereof shall be deposited in
48 the mass transportation operating assistance fund to the credit of the
49 metropolitan mass transportation operating assistance account and the
50 public transportation systems operating assistance account thereof in
51 the manner provided by subdivision eleven of section one hundred eight-
52 y-two-a of this chapter. Of all taxes, interest and penalties collected
53 or received after March thirty-first, nineteen hundred ninety-one, and
54 before April first, nineteen hundred ninety-three, from the taxes
55 imposed by sections three hundred one-a and three hundred one-e of this
56 article, initially thirty-five percent shall be deposited and disposed
S. 2811--A 80 A. 4011--A
1 of pursuant to such section one hundred seventy-one-a. The balance ther-
2 eof shall then be disposed of as follows: seventy-two and seven-tenths
3 percent shall be deposited and disposed of pursuant to such section one
4 hundred seventy-one-a and twenty-seven and three-tenths percent shall be
5 deposited in such mass transportation operating assistance fund as
6 prescribed in the aforestated manner. Except as otherwise provided, of
7 all taxes, interest and penalties collected or received after March
8 thirty-first, nineteen hundred ninety-three, and before April first,
9 nineteen hundred ninety-four, from the taxes imposed by sections three
10 hundred one-a and three hundred one-e of this article, (i) initially
11 fifty-four percent shall be deposited, as prescribed by subdivision (d)
12 of section three hundred one-j of this chapter, (ii) twenty-eight and
13 three-tenths percent shall be deposited and disposed of pursuant to such
14 section one hundred seventy-one-a of this chapter in the general fund
15 and (iii) seventeen and seven-tenths percent shall be deposited in such
16 mass transportation operating assistance fund as prescribed in the
17 aforestated manner. Provided, however, that, prior to such deposit, from
18 the amounts so collected or received during the period commencing on
19 January first, nineteen hundred ninety-four and ending on March thirty-
20 first, nineteen hundred ninety-four, an amount equal to the portion of
21 the taxes, interest and penalties so received or collected resulting
22 from the amendments made by sections forty-two, forty-three and forty-
23 four of chapter fifty-seven of the laws of nineteen hundred ninety-three
24 shall be deposited and disposed of pursuant to the provisions of subdi-
25 vision one of section one hundred seventy-one-a of this chapter. Except
26 as otherwise provided, of all taxes, interest and penalties collected or
27 received on or after April first, nineteen hundred ninety-four, from the
28 taxes imposed by sections three hundred one-a and three hundred one-e of
29 this article, (i) initially fifty-four percent shall be deposited, as
30 prescribed by subdivision (d) of section three hundred one-j of this
31 article, (ii) twenty-eight and three-tenths percent shall be deposited
32 and disposed of pursuant to such section one hundred seventy-one-a of
33 this chapter in the general fund, (iii) seven and nine hundred sixty-
34 five thousandths percent shall be deposited in such mass transportation
35 operating assistance fund as prescribed in the aforestated manner and
36 (iv) nine and seven hundred thirty-five thousandths percent shall be
37 deposited in the revenue accumulation fund. Except as otherwise
38 provided, of all taxes, interest and penalties collected or received on
39 or after September first, nineteen hundred ninety-four and before
40 September first, nineteen hundred ninety-five, from the taxes imposed by
41 sections three hundred one-a and three hundred one-e of this article,
42 (i) initially fifty-nine percent shall be deposited, as prescribed by
43 subdivision (d) of section three hundred one-j of this article, (ii)
44 twenty-two and four-tenths percent shall be deposited and disposed of
45 pursuant to such section one hundred seventy-one-a of this chapter in
46 the general fund, (iii) eight and three hundred seventy thousandths
47 percent shall be deposited in such mass transportation operating assist-
48 ance fund as prescribed in the aforestated manner and (iv) ten and two
49 hundred thirty thousandths percent shall be deposited in the revenue
50 accumulation fund. Except as otherwise provided, of all taxes, interest
51 and penalties, collected or received on or after September first, nine-
52 teen hundred ninety-five and before April first, nineteen hundred nine-
53 ty-six from the taxes imposed by sections three hundred one-a and three
54 hundred one-e of this article, (i) initially sixty-two and eight-tenths
55 percent shall be deposited as prescribed by subdivision (d) of section
56 three hundred one-j of this article, (ii) eighteen percent shall be
S. 2811--A 81 A. 4011--A
1 deposited and disposed of pursuant to section one hundred seventy-one-a
2 of this chapter in the general fund, (iii) eight and six hundred forty
3 thousandths percent shall be deposited in such mass transportation oper-
4 ating assistance fund as prescribed in the aforestated manner and (iv)
5 ten and five hundred sixty thousandths percent shall be deposited in the
6 revenue accumulation fund. Except as otherwise provided, of all taxes,
7 interest and penalties collected or received on or after April first,
8 nineteen hundred ninety-six, and before January first, nineteen hundred
9 ninety-seven from the taxes imposed by sections three hundred one-a and
10 three hundred one-e of this article, (i) initially sixty-three and
11 three-tenths percent shall be deposited, as prescribed by subdivision
12 (d) of section three hundred one-j of this article, (ii) seventeen and
13 four-tenths percent shall be deposited and disposed of pursuant to such
14 section one hundred seventy-one-a of this chapter in the general fund
15 and (iii) nineteen and three-tenths percent shall be deposited in such
16 mass transportation operating assistance fund as prescribed in the
17 aforestated manner. Except as otherwise provided, of all taxes, inter-
18 est and penalties collected or received on or after January first, nine-
19 teen hundred ninety-seven and before January first, nineteen hundred
20 ninety-eight from the taxes imposed by sections three hundred one-a and
21 three hundred one-e of this article, (i) initially sixty-six and two-
22 tenths percent shall be deposited, as prescribed by subdivision (d) of
23 section three hundred one-j of this article, (ii) fourteen and one-half
24 percent shall be deposited and disposed of pursuant to such section one
25 hundred seventy-one-a of this chapter in the general fund and (iii)
26 nineteen and three-tenths percent shall be deposited in such mass trans-
27 portation operating assistance fund as prescribed in the aforestated
28 manner. Except as otherwise provided, of all taxes, interest and penal-
29 ties collected or received on or after January first, nineteen hundred
30 ninety-eight and before April first, nineteen hundred ninety-nine from
31 the taxes imposed by sections three hundred one-a and three hundred
32 one-e of this article, (i) initially sixty-eight and one-tenth percent
33 shall be deposited, as prescribed by subdivision (d) of section three
34 hundred one-j of this article, (ii) twelve and four-tenths percent shall
35 be deposited and disposed of pursuant to such section one hundred seven-
36 ty-one-a of this chapter in the general fund and (iii) nineteen and
37 one-half percent shall be deposited in such mass transportation operat-
38 ing assistance fund as prescribed in the aforestated manner. Except as
39 otherwise provided, of all taxes, interest and penalties collected or
40 received on or after April first, nineteen hundred ninety-nine, from the
41 taxes imposed by sections three hundred one-a and three hundred one-e of
42 this article, (i) initially sixty-nine and eight-tenths percent shall be
43 deposited, as prescribed by subdivision (d) of section three hundred
44 one-j of this article, (ii) ten and seven-tenths percent shall be depos-
45 ited and disposed of pursuant to such section one hundred seventy-one-a
46 of this chapter in the general fund and (iii) nineteen and one-half
47 percent shall be deposited in such mass transportation operating assist-
48 ance fund as prescribed in the aforestated manner.] Except as otherwise
49 provided, of all taxes, interest and penalties collected or received on
50 or after April first, two thousand one, from the taxes imposed by
51 sections three hundred one-a and three hundred one-e of this article,
52 (i) initially eighty and three-tenths percent shall be deposited, as
53 prescribed by subdivision (d) of section three hundred one-j of this
54 article and (ii) nineteen and seven-tenths percent shall be deposited in
55 such mass transportation operating assistance fund [as prescribed in the
56 aforestated manner] TO THE CREDIT OF THE METROPOLITAN MASS TRANSPORTA-
S. 2811--A 82 A. 4011--A
1 TION OPERATING ASSISTANCE ACCOUNT AND THE PUBLIC TRANSPORTATION SYSTEMS
2 OPERATING ASSISTANCE ACCOUNT THEREOF IN THE MANNER PROVIDED BY SUBDIVI-
3 SION ELEVEN OF SECTION ONE HUNDRED EIGHTY-TWO-A OF THIS CHAPTER.
4 [Provided, further, that on or before the twenty-fifth day of each month
5 commencing with October, nineteen hundred ninety and terminating with
6 the month of March, two thousand one, the comptroller shall deduct the
7 amount of six hundred twenty-five thousand dollars prior to any deposit
8 or disposition of the taxes, interest and penalties collected or
9 received pursuant to such sections three hundred one-a and three hundred
10 one-e and shall pay such amount to the state treasury to the credit of
11 the general fund.] Provided, further that on or before the twenty-fifth
12 day of each month commencing with April, two thousand one, the comp-
13 troller shall deduct the amount of six hundred twenty-five thousand
14 dollars prior to any deposit or disposition of the taxes, interest, and
15 penalties collected or received pursuant to such sections three hundred
16 one-a and three hundred one-e and shall deposit such amount in the dedi-
17 cated fund accounts pursuant to subdivision (d) of section three hundred
18 one-j of this article. Provided, further, that commencing January
19 fifteenth, nineteen hundred ninety-one, and on or before the tenth day
20 of March and the fifteenth day of June and September of such year, the
21 commissioner shall, based on information supplied by taxpayers and other
22 appropriate sources, estimate the amount of the utility credit author-
23 ized by section three hundred one-d of this article which has been
24 accrued to reduce tax liability under section one hundred eighty-six-a
25 of this chapter during the period covered by such estimate and certify
26 to the state comptroller such estimated amount. The comptroller shall
27 forthwith, after receiving such certificate, deduct the amount of such
28 credit so certified by the commissioner prior to any deposit or disposi-
29 tion of the taxes, interest and penalties collected or received pursuant
30 to such sections three hundred one-a and three hundred one-e and shall
31 pay such amount so certified and deducted into the state treasury to the
32 credit of the general fund. [As soon as practicable after April first,
33 nineteen hundred ninety-one, nineteen hundred ninety-two and nineteen
34 hundred ninety-three, but before June fifteenth of each such year, the
35 commissioner shall determine the amount of the utility tax credit which
36 has been actually used to reduce tax liability under such section one
37 hundred eighty-six-a and shall certify the difference between such actu-
38 al amount and the earlier estimated amount.] Also, subsequently, during
39 the fiscal year when the commissioner becomes aware of changes or
40 modifications with respect to actual credit usage, the commissioner
41 shall, as soon as practicable, issue a certification setting forth the
42 amount of any required adjustment to the amount of actual credit usage
43 previously certified. After receiving the certificate of the commission-
44 er with respect to actual credit usage or modification of the same, the
45 comptroller shall forthwith adjust general fund receipts and the reven-
46 ues to be deposited or disposed of under this article to reflect the
47 difference so certified by the commissioner. The commissioner shall not
48 be liable for any overestimate or underestimate of the amount of the
49 utility credit which has been accrued to reduce tax liability under such
50 section one hundred eighty-six-a. Nor shall the commissioner be liable
51 for any inaccuracy in any certificate with respect to the amount of such
52 credit actually used or any required adjustment with respect to actual
53 credit usage, but the commissioner shall as soon as practicable after
54 discovery of any error adjust the next certification under this section
55 to reflect any such error.
S. 2811--A 83 A. 4011--A
1 [On or before July thirty-first, nineteen hundred ninety-two and on or
2 before July thirty-first, nineteen hundred ninety-three, the commission-
3 er shall conduct the following reconciliation with respect to the
4 preceding fiscal year: he shall multiply the total of all taxes, penal-
5 ties and interest, after refunds and reimbursements, which are derived
6 from the motor fuel component, the automotive-type diesel motor fuel
7 component and the aviation gasoline component by twenty fifty-fifths;
8 the total of all taxes, penalties and interest, after refunds and
9 reimbursements, which are derived from the nonautomotive-type diesel
10 motor fuel component (excluding taxes, penalties and interest which are
11 derived from product with respect to which the credit or reimbursement
12 provided by section three hundred one-d is taken) by twenty-fiftieths;
13 and all taxes, penalties and interest, after refunds and reimbursements,
14 which are derived from the residual petroleum product component (exclud-
15 ing taxes, penalties and interest which are derived from product with
16 respect to which the credit or reimbursement provided by section three
17 hundred one-d is taken) by twenty-fortieths. The products of the forego-
18 ing multiplications shall be added together and the resulting sum of
19 such products shall be compared with the total of the amounts initially
20 distributed during such fiscal year with respect to such components
21 (excluding receipts derived from product with respect to which the cred-
22 it or reimbursement provided by section three hundred one-d is taken and
23 excluding any amount which represents a reconciliation adjustment pursu-
24 ant to this paragraph) pursuant to section one hundred seventy-one-a of
25 this chapter which represented thirty-five percent of the total, after
26 refunds and reimbursements, of all taxes, penalties and interest
27 collected or received during such fiscal year under sections three
28 hundred one-a and three hundred one-e during the months of such fiscal
29 year with respect to such components. The commissioner shall then certi-
30 fy the amount of such difference to the comptroller. If the amounts
31 initially distributed in such fiscal year are greater than the sum of
32 such products, the comptroller shall withhold an amount equal to twen-
33 ty-seven and three-tenths percent of such difference from the first
34 moneys otherwise payable to the general fund pursuant to this subdivi-
35 sion and shall pay such amount to the mass transportation operating
36 assistance fund to the credit of the metropolitan mass transportation
37 operating assistance account and the public transportation systems oper-
38 ating assistance account thereof in the aforestated manner. If the
39 amounts initially distributed in such fiscal year are less than the sum
40 of such products, the comptroller shall withhold an amount equal to
41 twenty-seven and three-tenths percent of such difference from the first
42 moneys otherwise payable to the mass transportation operating assistance
43 fund pursuant to this subdivision and shall pay such amount to the
44 general fund.
45 When the commissioner becomes aware of changes or modifications with
46 respect to the distribution of revenue under this article, the commis-
47 sioner shall, as soon as practicable, issue a certification setting
48 forth the amount of any required adjustment. After receiving the certif-
49 icate of the commissioner with respect to any adjustments, the comp-
50 troller shall forthwith adjust general fund receipts and the revenues to
51 be deposited or disposed of under this article to reflect the difference
52 so certified by the commissioner. The commissioner shall not be liable
53 for any overestimate or underestimate of the amount of the distribution.
54 Nor shall the commissioner be liable for any inaccuracy in any certif-
55 icate with respect to the amount of the distribution or any required
56 adjustment with respect to the distribution, but the commissioner shall
S. 2811--A 84 A. 4011--A
1 as soon as practicable after discovery of any error adjust the next
2 certification under this section to reflect any such error.] Prior to
3 making deposits as provided in this [subdivision] SECTION, the comp-
4 troller shall retain such amount as the commissioner may determine to be
5 necessary, subject to the approval of the director of the budget, for
6 reasonable costs of the department in administering and collecting the
7 taxes deposited pursuant to this [subdivision] SECTION and for refunds
8 and reimbursements with respect to such taxes, out of which the comp-
9 troller shall pay any refunds or reimbursements of such taxes to which
10 taxpayers shall be entitled.
11 S 33. Subdivision (b) of section 315 of the tax law, as amended by
12 section 156 of part A of chapter 389 of the laws of 1997, is amended to
13 read as follows:
14 (b) Joint administration of taxes. In addition to the powers granted
15 to the commissioner in this chapter, the commissioner is hereby author-
16 ized to make provisions for the joint administration, in whole or in
17 part, of the taxes imposed by articles twelve-A and twenty-eight and
18 pursuant to the authority of article twenty-nine of this chapter upon
19 [automotive fuel] MOTOR FUEL AND DIESEL MOTOR FUEL and the taxes imposed
20 by this article, including the joint reporting, assessment, collection,
21 determination and refund of such taxes, and for that purpose to
22 prescribe that any of the commissioner's functions under such articles,
23 and any returns, forms, statements, documents or information to be
24 submitted to the commissioner under such articles, any books and records
25 to be kept for purposes of the taxes imposed or authorized to be imposed
26 by such articles, any schedules of amounts to be collected under such
27 articles, any registration required under such articles, and the payment
28 of taxes under such articles, shall be on a joint basis with respect to
29 the taxes imposed by or pursuant to such articles. Provided, notwith-
30 standing any provision of this article to the contrary, in the further-
31 ance of joint administration, the provisions of subdivision one of
32 section two hundred eighty-five-a and subdivision one of section two
33 hundred eighty-nine-c of this chapter shall apply to the taxes imposed
34 under this article with the same force and effect as if those provisions
35 specifically referred to the taxes imposed hereunder and all the
36 products with respect to which the taxes are imposed under this article.
37 Provided, further, a reimbursement (or credit) of taxes imposed under
38 this article shall be available to subsequent purchasers of motor fuel,
39 diesel motor fuel or residual petroleum product under the circumstances
40 specified in subdivision eight of section two hundred eighty-nine-c of
41 this chapter with respect to the export of such products. In addition,
42 all the provisions of subdivision one of section two hundred eighty-six
43 of this chapter shall be applicable to all of the products included in
44 the measure of the tax imposed by this article and the powers of the
45 commissioner in administering the tax imposed by this article shall
46 include these set forth in such subdivision. Moreover, the commission-
47 er, in order to preserve the revenue from the tax imposed by this arti-
48 cle, shall, by regulation, require that the movement of residual petro-
49 leum product into or in this state be accompanied by a tracking
50 document. [Such manifest or other tracking document shall be prescribed
51 only after consultation with the state motor fuels taxation advisory
52 council (created by section forty-one of chapter forty-four of the laws
53 of nineteen hundred eighty-five) as to its form and content and as to
54 whether an existing industry document (or a modified version thereof)
55 may adequately serve the tracking purpose so that such existing industry
56 document may be prescribed as the tracking document.] Also, the commis-
S. 2811--A 85 A. 4011--A
1 sioner may require (i) that any returns, forms, statements or other
2 document with respect to motor fuel or diesel motor fuel required of
3 transporters or terminal operators under such article twelve-A of this
4 chapter apply with the same force and effect to persons transporting or
5 storing residual petroleum product, (ii) a certification that particular
6 gallonage of motor fuel, diesel motor fuel or residual petroleum product
7 has been included in the measure of the tax imposed by this article and
8 such tax has been paid, and (iii) that the certification required pursu-
9 ant to section two hundred eighty-five-a or two hundred eighty-five-b of
10 this chapter be expanded to include the tax imposed by this article.
11 S 34. Subdivision 10 of section 501 of the tax law, as amended by
12 chapter 407 of the laws of 1990, is amended to read as follows:
13 10. "Automotive fuel" shall mean, SOLELY FOR PURPOSES OF THIS ARTICLE,
14 diesel motor fuel as defined in subdivision fourteen of section two
15 hundred eighty-two of this chapter and motor fuel as defined in subdivi-
16 sion two of section two hundred eighty-two of this chapter.
17 S 35. Subdivision (b) of section 528 of the tax law, as added by chap-
18 ter 170 of the laws of 1994, is amended to read as follows:
19 (b) Cooperative agreements. Notwithstanding any inconsistent provision
20 of law, the commissioner is authorized to enter into a cooperative
21 agreement with other states, the District of Columbia or provinces or
22 territories of Canada for the administration of the tax imposed by this
23 article and similar taxes imposed by other member jurisdictions and for
24 the reporting and payment of tax to a single base state and a propor-
25 tional sharing of revenue of taxes relating to fuel use among the juris-
26 dictions where a qualified motor vehicle is operated. The agreement may
27 provide for determining the base state for carriers, carriers records
28 requirements, audit procedures, exchange of information, persons eligi-
29 ble for tax licensing, defining qualified motor vehicles, determining if
30 bonding is required and requiring bonds to secure the tax imposed by
31 this article and similar taxes imposed by other member jurisdictions,
32 specifying reporting requirements and periods including defining uniform
33 penalty and interest rates for late reporting, determining methods for
34 collecting and forwarding of taxes, interest and penalties to another
35 jurisdiction, notice and timing of hearings and other provisions as will
36 facilitate the administration of the agreement. The commissioner may,
37 pursuant to the terms of the agreement, forward to the proper officers
38 of another member jurisdiction any information in the commissioner's
39 possession relating to the manufacture, receipt, sale, use, transporta-
40 tion or shipment of [automotive fuel] MOTOR FUEL OR DIESEL MOTOR FUEL by
41 any person and may share any information relating to the administration
42 of taxes pursuant to the agreement with such officers. The commissioner
43 may disclose to the proper officers of another member jurisdiction the
44 location of offices, motor vehicles and other real and personal property
45 of carriers. The agreement may provide for each member jurisdiction to
46 audit the records of persons based in the member jurisdiction and deter-
47 mine taxes due each member jurisdiction. The commissioner may adopt
48 rules and regulations for the administration and enforcement of the
49 agreement. In connection with the administration of taxes under such a
50 cooperative agreement, the commissioner may enter into an agreement with
51 other member jurisdictions and any banks, banking houses, trust compa-
52 nies or other similar institutions with respect to the payment of any
53 tax, fees, penalty or interest to such banks, banking houses, trust
54 companies or similar institutions and the filing of returns and reports
55 with such banks, banking houses, trust companies or similar institutions
56 as agent of the commissioner and such other member jurisdictions. Pursu-
S. 2811--A 86 A. 4011--A
1 ant to a written agreement made with one or more of the appropriate
2 departments, agencies, officers or instrumentalities of other jurisdic-
3 tions, the commissioner may let contracts for provision of such services
4 to the department and to one or more of such entities of other jurisdic-
5 tions; provided, that provisions shall be made in all such agreements
6 with the participating governmental entities and in all such contracts
7 let by the commissioner for the assumption by each of the participating
8 governmental entities of sole responsibility for its proportionate share
9 of the costs under the terms of such contract. The commissioner may
10 contract for such services jointly with and pursuant to a contract let
11 by the appropriate department, agency, officer or instrumentality of
12 another jurisdiction; provided that (1) the commissioner shall approve
13 the proposed terms and conditions of all such joint governmental
14 contracts, (2) the letting of such joint governmental contract shall be
15 based on invitation of competitive bids or proposals, and (3) the
16 participation by the department in any such joint contract shall be
17 preceded by an evaluation and finding in writing by the commissioner
18 that a reasonable potential exists for the saving of costs by the state,
19 by means of such joint governmental contract.
20 S 36. The opening paragraph of subparagraph (ii) of paragraph 4 of
21 subdivision (b) of section 1101 of the tax law, as amended by chapter
22 261 of the laws of 1988, is amended to read as follows:
23 Notwithstanding the provisions of subparagraph (i) of this paragraph,
24 no motor fuel or diesel motor fuel shall be sold or used in this state
25 without payment, and inclusion in the sales price of such motor fuel, of
26 the tax on motor fuel required to be prepaid pursuant to the provisions
27 of section eleven hundred two of this article except where a provision
28 of this article relating to motor fuel or diesel motor fuel specifically
29 provides otherwise and except in the case of a sale or use subject to
30 tax under section eleven hundred five or eleven hundred ten, respective-
31 ly, of this article. Provided, however, except for such requirement of
32 prepayment of tax required by section eleven hundred two of this arti-
33 cle, the provisions of this subparagraph shall not otherwise modify the
34 meaning of the term "retail sale" as used in this article. For purposes
35 of this subparagraph and sections eleven hundred two, eleven hundred
36 eleven, eleven hundred twenty, eleven hundred thirty-two, eleven hundred
37 thirty-four, eleven hundred thirty-five, eleven hundred thirty-six,
38 ELEVEN HUNDRED FORTY-TWO, ELEVEN HUNDRED FORTY-FIVE and eighteen hundred
39 seventeen of this chapter, the following terms shall have the following
40 meanings:
41 S 37. Clause (A) of subparagraph (ii) of paragraph 4 of subdivision
42 (b) of section 1101 of the tax law, as amended by chapter 261 of the
43 laws of 1988, is amended to read as follows:
44 (A) "[Automotive fuel"] PETROLEUM PRODUCTS" means diesel motor fuel as
45 defined in subdivision fourteen of section two hundred eighty-two of
46 this chapter, other than kerosene or propane used for residential
47 purposes, or motor fuel as defined in subdivision two of section two
48 hundred eighty-two of this chapter. The phrase "used for residential
49 purposes" shall have the same meaning as it has for purposes of section
50 eleven hundred five-A of this article.
51 S 38. Clause (F) of subparagraph (ii) of paragraph 4 of subdivision
52 (b) of section 1101 of the tax law is REPEALED and a new clause (F) is
53 added to read as follows:
54 (F) THE TERMS "HIGHWAY DIESEL MOTOR FUEL" AND "NON-HIGHWAY DIESEL
55 MOTOR FUEL" SHALL HAVE THE SAME MEANING AS THEY HAVE FOR PURPOSES OF
56 ARTICLE TWELVE-A OF THIS CHAPTER.
S. 2811--A 87 A. 4011--A
1 S 39. Paragraph 2 of subdivision (a) of section 1102 of the tax law,
2 as separately amended by section 9 of part W-1 of chapter 109 and chap-
3 ter 302 of the laws of 2006, is amended to read as follows:
4 (2) Every distributor of diesel motor fuel shall pay, as a prepayment
5 on account of the taxes imposed by this article and pursuant to the
6 authority of article twenty-nine of this chapter, a tax upon the sale or
7 use of diesel motor fuel in this state. The tax shall be computed based
8 upon the number of gallons of diesel motor fuel sold or used. Provided,
9 however, if the tax has not been imposed prior thereto, it shall be
10 imposed on the delivery of diesel motor fuel to a retail service
11 station. The collection of such tax shall not be made applicable to the
12 sale or use of diesel motor fuel under circumstances which preclude the
13 collection of such tax by reason of the United States constitution and
14 of laws of the United States enacted pursuant thereto. The prepaid tax
15 on diesel motor fuel shall not apply to (i) the sale of previously
16 untaxed [diesel motor fuel which is not enhanced] NON-HIGHWAY Diesel
17 motor fuel to a person registered as a distributor of Diesel motor fuel
18 other than a sale to such person which involves a delivery at a filling
19 station or into a repository which is equipped with a hose or other
20 apparatus by which such fuel can be dispensed into the fuel tank of a
21 motor vehicle, OR (ii) the sale to or delivery at a filling station or
22 other retail vendor of water-white kerosene provided such filling
23 station or other retail vendor only sells such water-white kerosene
24 exclusively for heating purposes in containers of no more than twenty
25 gallons or to the sale of CNG or hydrogen [or (iii) the sale of dyed
26 diesel motor fuel as set forth in clause (A) or (B) of subparagraph (i)
27 of paragraph (c) of subdivision three of section two hundred
28 eighty-two-a of this chapter].
29 S 39-a. Paragraph 2 of subdivision (a) of section 1102 of the tax law,
30 as amended by chapter 302 of the laws of 2006, is amended to read as
31 follows:
32 (2) Every distributor of diesel motor fuel shall pay, as a prepayment
33 on account of the taxes imposed by this article and pursuant to the
34 authority of article twenty-nine of this chapter, a tax upon the sale or
35 use of diesel motor fuel in this state. The tax shall be computed based
36 upon the number of gallons of diesel motor fuel sold or used. Provided,
37 however, if the tax has not been imposed prior thereto, it shall be
38 imposed on the delivery of diesel motor fuel to a retail service
39 station. The collection of such tax shall not be made applicable to the
40 sale or use of diesel motor fuel under circumstances which preclude the
41 collection of such tax by reason of the United States constitution and
42 of laws of the United States enacted pursuant thereto. The prepaid tax
43 on diesel motor fuel shall not apply to (i) the sale of previously
44 untaxed [diesel motor fuel which is not enhanced] NON-HIGHWAY Diesel
45 motor fuel to a person registered as a distributor of Diesel motor fuel
46 other than a sale to such person which involves a delivery at a filling
47 station or into a repository which is equipped with a hose or other
48 apparatus by which such fuel can be dispensed into the fuel tank of a
49 motor vehicle, OR (ii) the sale to or delivery at a filling station or
50 other retail vendor of water-white kerosene provided such filling
51 station or other retail vendor only sells such water-white kerosene
52 exclusively for heating purposes in containers of no more than twenty
53 gallons [or (iii) the sale of dyed diesel motor fuel as set forth in
54 clause (A) or (B) of subparagraph (i) of paragraph (c) of subdivision
55 three of section two hundred eighty-two-a of this chapter].
S. 2811--A 88 A. 4011--A
1 S 40. Subsection (a) of section 1105-A of the tax law, as amended by
2 section 1 of part B of chapter 35 of the laws of 2006, is amended to
3 read as follows:
4 (a) Notwithstanding any other provisions of this article, but not for
5 purposes of the taxes imposed by section eleven hundred eight of this
6 part or authorized pursuant to the authority of article twenty-nine of
7 this chapter, the taxes imposed by subdivision (a) or (b) of section
8 eleven hundred five OF THIS PART on the receipts from the retail sale of
9 fuel oil and coal used for residential purposes; the receipts from the
10 retail sale of wood used for residential heating purposes; and the
11 receipts from every sale, other than for resale, of propane (except when
12 sold in containers of less than one hundred pounds), natural gas, elec-
13 tricity, steam and gas, electric and steam services used for residential
14 purposes shall be paid at the rate of three percent for the period
15 commencing January first, nineteen hundred seventy-nine and ending
16 December thirty-first, nineteen hundred seventy-nine; at the rate of two
17 and one-half percent for the period commencing January first, nineteen
18 hundred eighty and ending September thirtieth, nineteen hundred eighty,
19 and at the rate of zero percent on and after October first, nineteen
20 hundred eighty. The provisions of this subsection shall not apply to a
21 sale of [(i)] diesel motor fuel which involves a delivery at a filling
22 station or into a repository which is equipped with a hose or other
23 apparatus by which such fuel can be dispensed into the fuel tank of a
24 motor vehicle [and (ii) enhanced diesel motor fuel except in the case of
25 a sale of such enhanced diesel motor fuel used exclusively for residen-
26 tial purposes which is delivered into a storage tank which is not
27 equipped with a hose or other apparatus by which such fuel can be
28 dispensed into the fuel tank of a motor vehicle and such storage tank is
29 attached to the heating unit burning such fuel, provided that each
30 delivery of such fuel of over four thousand five hundred gallons shall
31 be evidenced by a certificate signed by the purchaser stating that the
32 product will be used exclusively for residential purposes].
33 S 41. Subdivision (j) of section 1115 of the tax law, as amended by
34 section 12 of part W-1 of chapter 109 of the laws of 2006, is amended to
35 read as follows:
36 (j) The exemptions provided in this section shall not apply to the tax
37 required to be prepaid pursuant to the provisions of section eleven
38 hundred two of this article nor to the taxes imposed by sections eleven
39 hundred five and eleven hundred ten of this article with respect to
40 receipts from sales and uses of motor fuel or diesel motor fuel, except
41 that the exemptions provided in paragraphs nine and forty-two of subdi-
42 vision (a) of this section shall apply to the tax required to be prepaid
43 pursuant to the provisions of section eleven hundred two of this article
44 and to the taxes imposed by sections eleven hundred five and eleven
45 hundred ten of this article with respect to sales and uses of kero-jet
46 fuel, CNG, hydrogen and E85, provided, however, the exemption allowed
47 for E85 shall be subject to the additional requirements provided in
48 section eleven hundred two of this article with respect to E85. The
49 exemption provided in subdivision (c) of this section shall apply to
50 sales and uses of NON-HIGHWAY diesel motor fuel [which is not enhanced
51 diesel motor fuel] but only if all of such fuel is consumed other than
52 on the PUBLIC highways of this state[, provided, however, this exemption
53 shall in no event apply to a sale of diesel motor fuel which involves a
54 delivery at a filling station or into a repository which is equipped
55 with a hose or other apparatus by which such fuel can be dispensed into
56 the fuel tank of a motor vehicle]. The exemption provided in subdivision
S. 2811--A 89 A. 4011--A
1 (c) of this section shall apply to sales and uses of [no more than four
2 thousand five hundred gallons of] NON-HIGHWAY diesel motor fuel [in a
3 thirty-day period] for use or consumption either in the production for
4 sale of tangible personal property by farming or in a commercial horse
5 boarding operation, or in both but only if all of such fuel is consumed
6 other than on the PUBLIC highways of this state (except for the use of
7 the PUBLIC highways to reach adjacent farmlands or adjacent lands used
8 in a commercial horse boarding operation, or both)[, provided, however,
9 such exemption shall be applicable to the sale or use of more than four
10 thousand five hundred gallons of diesel motor fuel in a thirty-day peri-
11 od for such use or consumption in accordance with a prior clearance
12 given by the commissioner].
13 S 41-a. Subdivision (j) of section 1115 of the tax law, as amended by
14 section 8 of part B of chapter 63 of the laws of 2000, is amended to
15 read as follows:
16 (j) The exemptions provided in this section shall not apply to the tax
17 required to be prepaid pursuant to the provisions of section eleven
18 hundred two of this article nor to the taxes imposed by sections eleven
19 hundred five and eleven hundred ten of this article with respect to
20 receipts from sales and uses of motor fuel or diesel motor fuel, except
21 that the exemption provided in paragraph nine of subdivision (a) of this
22 section shall apply to the tax required to be prepaid pursuant to the
23 provisions of section eleven hundred two of this article and to the
24 taxes imposed by sections eleven hundred five and eleven hundred ten of
25 this article with respect to sales and uses of kero-jet fuel. The
26 exemption provided in subdivision (c) of this section shall apply to
27 sales and uses of NON-HIGHWAY diesel motor fuel [which is not enhanced
28 diesel motor fuel] but only if all of such fuel is consumed other than
29 on the PUBLIC highways of this state[, provided, however, this exemption
30 shall in no event apply to a sale of diesel motor fuel which involves a
31 delivery at a filling station or into a repository which is equipped
32 with a hose or other apparatus by which such fuel can be dispensed into
33 the fuel tank of a motor vehicle]. The exemption provided in subdivision
34 (c) of this section shall apply to sales and uses of [no more than four
35 thousand five hundred gallons of] NON-HIGHWAY diesel motor fuel [in a
36 thirty-day period] for use or consumption either in the production for
37 sale of tangible personal property by farming or in a commercial horse
38 boarding operation, or in both but only if all of such fuel is consumed
39 other than on the PUBLIC highways of this state (except for the use of
40 the PUBLIC highways to reach adjacent farmlands or adjacent lands used
41 in a commercial horse boarding operation, or both)[, provided, however,
42 such exemption shall be applicable to the sale or use of more than four
43 thousand five hundred gallons of diesel motor fuel in a thirty-day peri-
44 od for such use or consumption in accordance with a prior clearance
45 given by the commissioner].
46 S 42. Subdivision (e) of section 1120 of the tax law, as amended by
47 chapter 2 of the laws of 1995, is amended to read as follows:
48 (e) Immediate export. With respect to (i) motor fuel imported, manu-
49 factured or sold or purchased in this state, and (ii) [enhanced] HIGHWAY
50 diesel motor fuel, a refund or credit shall be allowed a registered
51 distributor of this state or a purchaser of the tax required to be
52 prepaid pursuant to section eleven hundred two of this article in the
53 amount of such tax paid by or included in the price paid by a distribu-
54 tor or such purchaser if such fuel was exported from this state for sale
55 outside this state, such distributor or such purchaser, as the case may
56 be, exporting such fuel is duly registered with or licensed by the
S. 2811--A 90 A. 4011--A
1 taxing authorities of the state to which such fuel is exported as a
2 distributor or a dealer in the fuel being so exported, and in connection
3 with such exportation such fuel was immediately shipped to an identified
4 facility in the state to which such fuel is exported, and provided the
5 applicant complies with all requirements and rules and regulations of
6 the commissioner, including evidentiary requirements, relating thereto.
7 S 43. Subparagraph (i) of paragraph 3 of subdivision (h) of section
8 1132 of the tax law, as amended by chapter 261 of the laws of 1988, is
9 amended to read as follows:
10 (i) For the purpose of the proper administration of this article and
11 to prevent evasion of the tax hereby imposed, it shall be presumed that
12 all retail sales of motor fuel or diesel motor fuel are subject to the
13 tax required to be collected by subdivision (a) of section eleven
14 hundred five of this article or paid by the provisions of section eleven
15 hundred ten of this article until the contrary is established, and it
16 shall be presumed that all motor fuel or diesel motor fuel imported,
17 manufactured, [subjected to enhancement,] sold, received or possessed by
18 any person in this state, which such person cannot otherwise account for
19 as having been sold subject to the tax required to be collected by
20 subdivision (a) of section eleven hundred five or paid by the provisions
21 of section eleven hundred ten of this article, has been sold subject to
22 the tax required to be collected by subdivision (a) of section eleven
23 hundred five or paid by the provisions of section eleven hundred ten
24 except that no such presumption shall apply with respect to motor fuel
25 or diesel motor fuel in the fuel tank of a motor vehicle used to propel
26 such vehicle or to motor fuel in small drums or similar containers. The
27 burden of proving that any sale is not so subject shall be upon the
28 person required to collect such tax and the purchaser of such fuel.
29 S 44. Subparagraph (iii) of paragraph 1 of subdivision (a) of section
30 1134 of the tax law, as amended by section 160 of part A of chapter 389
31 of the laws of 1997, is amended to read as follows:
32 (iii) every person selling [automotive fuel] PETROLEUM PRODUCTS
33 including persons who or which are not distributors,
34 S 45. Subdivision (d) of section 1135 of the tax law, as amended by
35 chapter 44 of the laws of 1985 and as relettered by chapter 61 of the
36 laws of 1989, is amended to read as follows:
37 (d) Every person selling or holding large volumes of [automotive fuel]
38 PETROLEUM PRODUCTS shall keep records for such periods and in the manner
39 prescribed by the [tax commission] COMMISSIONER pursuant to rules and
40 regulations. Such records shall show (1) the number of gallons of [auto-
41 motive fuel] PETROLEUM PRODUCTS purchased, the price paid therefor, the
42 amount of tax paid pursuant to the provisions of section eleven hundred
43 two of this article [and the regional average retail sales price appli-
44 cable thereto] and (2) the number of gallons sold, and the price paid by
45 the purchaser to whom such person sells the [automotive fuel] PETROLEUM
46 PRODUCTS, and the amount of tax included in such price pursuant to the
47 provisions of section eleven hundred two of this article and the
48 [regional average retail sales price or the] amount of tax collected
49 pursuant to the provisions of subdivision (a) of section eleven hundred
50 five of this article applicable to such sale together with such addi-
51 tional information as the [tax commission] COMMISSIONER shall require.
52 The [regional average retail sales price, and the] amount of tax shall
53 be calculated in the manner set forth in section eleven hundred eleven
54 of this article.
55 S 46. Subdivision (a) of section 1136 of the tax law, as amended by
56 chapter 89 of the laws of 1976, paragraphs 1, 2, 3 and 5 as amended and
S. 2811--A 91 A. 4011--A
1 paragraph 6 as added by chapter 2 of the laws of 1995 and paragraphs 4
2 and 7 as amended by section 2-e of part M-1 of chapter 106 of the laws
3 of 2006, is amended to read as follows:
4 (a) (1) Every person required to register with the commissioner as
5 provided in section eleven hundred thirty-four OF THIS PART whose taxa-
6 ble receipts, amusement charges and rents total less than three hundred
7 thousand dollars, or in the case of any such person who is a distributor
8 whose sales of [automotive fuel] PETROLEUM PRODUCTS total less than one
9 hundred thousand gallons, in every quarter of the preceding four quar-
10 ters, shall only file a return quarterly with the commissioner.
11 (2) Every person required to register with the commissioner as
12 provided in section eleven hundred thirty-four OF THIS PART whose taxa-
13 ble receipts, amusement charges and rents total three hundred thousand
14 dollars or more, or in the case of any such person who is a distributor
15 whose sales of [automotive fuel] PETROLEUM PRODUCTS total one hundred
16 thousand gallons or more, in any quarter of the preceding four quarters,
17 shall, in addition to filing a quarterly return described in paragraph
18 one of this subdivision, and except as otherwise provided in section
19 eleven hundred two or eleven hundred three of this article, file either
20 a long-form or short-form part-quarterly return monthly with the commis-
21 sioner.
22 (3) However, a person required to register with the commissioner as
23 provided in section eleven hundred thirty-four OF THIS PART only because
24 such person is purchasing or selling tangible personal property for
25 resale, and who is not required to collect any tax or pay any tax
26 directly to the commissioner under this article, shall file an informa-
27 tion return annually in such form as the commissioner may prescribe.
28 Likewise, a person, who is required to register and who is selling
29 [automotive fuel] PETROLEUM PRODUCTS who is not a distributor of motor
30 fuel, shall file an information return quarterly or, if the commissioner
31 deems necessary, monthly, in such form as the commissioner shall
32 prescribe.
33 (4) The return of a vendor of tangible personal property or services
34 shall show such vendor's receipts from sales and the number of gallons
35 of any motor fuel or diesel motor fuel sold and also the aggregate value
36 of tangible personal property and services and number of gallons of such
37 fuels sold by the vendor, the use of which is subject to tax under this
38 article, and the amount of tax payable thereon pursuant to the
39 provisions of section eleven hundred thirty-seven of this part. The
40 return of a recipient of amusement charges shall show all such charges
41 and the amount of tax thereon, and the return of an operator required to
42 collect tax on rents shall show all rents received or charged and the
43 amount of tax thereon.
44 (5) The returns of any seller of [automotive fuel] PETROLEUM PRODUCTS
45 shall show the number of gallons of [automotive fuel] PETROLEUM PRODUCTS
46 sold, together with such additional information as the commissioner
47 shall require in order to certify the amount of taxes, penalties and
48 interest payable to local taxing jurisdictions imposed on the sale or
49 use of [automotive fuel] PETROLEUM PRODUCTS pursuant to the provisions
50 of section twelve hundred sixty-one of this chapter.
51 (6) The returns of any seller of cigarettes shall show the amount of
52 prepaid tax assumed or paid thereon and passed through, together with
53 such additional information as the commissioner shall require.
54 (7) Taxable receipts as used in this section shall include taxable
55 receipts from the sale of [automotive fuel] PETROLEUM PRODUCTS and ciga-
56 rettes and any receipts from the sale of motor fuel or diesel motor fuel
S. 2811--A 92 A. 4011--A
1 or cigarettes in this state whether or not such receipts are subject to
2 the taxes imposed by section eleven hundred two, eleven hundred three,
3 eleven hundred five or eleven hundred ten of this article and regardless
4 of whether the provisions of section eleven hundred twenty or eleven
5 hundred twenty-one of this article are applicable to the taxes imposed
6 in respect of such receipts or numbers of gallons of motor fuel or
7 diesel motor fuel sold.
8 [(i)] (8) For purposes of this article the term "long-form, part-quar-
9 terly return" shall mean a return in a form determined by the [tax
10 commission] COMMISSIONER providing for the calculation of the actual
11 sales and compensating use taxes for the preceding month in the manner
12 set forth in subdivisions (a) and (b) of section eleven hundred thirty-
13 seven OF THIS PART. A person filing a long-form, part-quarterly return
14 for each of the months contained in a quarter shall also be required to
15 file a quarterly return for such quarter.
16 [(ii)] (9) For purposes of this article the term "short-form, part-
17 quarterly return" shall mean a return which shall be available for use
18 in filing as a return for the first two months of any quarter and only
19 by a person required to file a return monthly who has had at least four
20 successive quarterly tax periods immediately preceding the month for
21 which the return is to be filed and who elects such use, and is in a
22 form determined by the [tax commission] COMMISSIONER and providing for
23 the calculation of one-third of the total state and local sales and
24 compensating use taxes paid by the person to the [tax commission]
25 COMMISSIONER in the comparable quarter of the immediately preceding year
26 under this article and as taxes imposed pursuant to the authority of
27 article twenty-nine with respect to all receipts, amusement charges and
28 rents.
29 S 47. Subdivision 11 of section 1142 of the tax law, as added by chap-
30 ter 930 of the laws of 1982, is amended to read as follows:
31 11. To make such provision pursuant to rules and regulations for the
32 joint administration, in whole or in part, of the state and local taxes
33 imposed by this article and authorized by article twenty-nine of this
34 chapter upon the sale of [automotive fuel] PETROLEUM PRODUCTS and the
35 taxes imposed by article twelve-A of this chapter and authorized to be
36 imposed by such article, including the joint reporting, assessment,
37 collection, determination and refund of such taxes, and for that purpose
38 to prescribe that any of the [commission's] COMMISSIONER'S functions
39 under said articles, and any returns, forms, statements, documents or
40 information to be submitted to the [commission] COMMISSIONER under said
41 articles, any books and records to be kept for purposes of the taxes
42 imposed or authorized by said articles, any schedules of amounts to be
43 collected under said articles, any registration required under said
44 articles, and the payment of taxes under said articles shall be on a
45 joint basis with respect to the taxes imposed by said articles.
46 S 48. Subparagraph (i) of paragraph 3 of subdivision (a) of section
47 1145 of the tax law, as amended by chapter 2 of the laws of 1995, is
48 amended to read as follows:
49 (i) Any person required to obtain a certificate of authority under
50 section eleven hundred thirty-four OF THIS PART who, without possessing
51 a valid certificate of authority, (A) sells tangible personal property
52 or services subject to tax, receives amusement charges or operates a
53 hotel, (B) purchases or sells tangible personal property for resale, (C)
54 sells [automotive fuel] PETROLEUM PRODUCTS, or (D) sells cigarettes
55 shall, in addition to any other penalty imposed by this chapter, be
56 subject to a penalty in an amount not exceeding five hundred dollars for
S. 2811--A 93 A. 4011--A
1 the first day on which such sales or purchases are made, plus an amount
2 not exceeding two hundred dollars for each subsequent day on which such
3 sales or purchases are made, not to exceed ten thousand dollars in the
4 aggregate.
5 S 49. Subparagraph (i) of paragraph 3 of subdivision (a) of section
6 1210 of the tax law, as amended by section 2 of part B of chapter 35 of
7 the laws of 2006, is amended to read as follows:
8 (i) Notwithstanding any other provision of law to the contrary but not
9 with respect to cities subject to the provisions of section eleven
10 hundred eight of this [article] CHAPTER, any city or county, except a
11 county wholly contained within a city, may provide that the taxes
12 imposed, pursuant to this subdivision, by such city or county on the
13 retail sale or use of fuel oil and coal used for residential purposes,
14 the retail sale or use of wood used for residential heating purposes,
15 the sale, other than for resale, of propane (except when sold in
16 containers of less than one hundred pounds), natural gas, electricity,
17 steam and gas, electric and steam services used for residential purposes
18 and the use of gas or electricity used for residential purposes may be
19 imposed at a lower rate than the uniform local rate imposed pursuant to
20 the opening paragraph of this section, as long as such rate is one of
21 the rates authorized by such paragraph or such sale or use may be
22 exempted from such taxes. Provided, however, such lower rate must apply
23 to all such energy sources and services and at the same rate and no such
24 exemption may be enacted unless such exemption applies to all such ener-
25 gy sources and services. The provisions of this subparagraph shall not
26 apply to a sale or use of [(i)] diesel motor fuel which involves a
27 delivery at a filling station or into a repository which is equipped
28 with a hose or other apparatus by which such fuel can be dispensed into
29 the fuel tank of a motor vehicle [and (ii) enhanced diesel motor fuel
30 except in the case of a sale or use of such enhanced diesel motor fuel
31 used exclusively for residential purposes which is delivered into a
32 storage tank which is not equipped with a hose or other apparatus by
33 which such fuel can be dispensed into the fuel tank of a motor vehicle
34 and such storage tank is attached to the heating unit burning such fuel,
35 provided that each delivery of such fuel of over four thousand five
36 hundred gallons shall be evidenced by a certificate signed by the
37 purchaser stating that the product will be used exclusively for residen-
38 tial purposes].
39 S 50. Subdivision (c) of section 1812 of the tax law, as amended by
40 section 25 of subpart I of part V-1 of chapter 57 of the laws of 2009,
41 is amended to read as follows:
42 (c) Any owner of a filling station who shall willfully and knowingly
43 have in his OR HER custody, possession or under his OR HER control any
44 motor fuel or Diesel motor fuel [on which] (1) ON WHICH the taxes
45 imposed by or pursuant to the authority of such article have not been
46 assumed or paid by a distributor registered as such under such article
47 [or], (2) ON WHICH the taxes imposed by or pursuant to the authority of
48 such article have not been included in the cost to him OR HER of such
49 fuel where such taxes were required to have been passed through to him
50 OR HER and included in the cost to him OR HER of such fuel, OR (3)
51 WHICH IS DYED DIESEL MOTOR FUEL AS DEFINED BY SUBDIVISION EIGHTEEN-A OF
52 SECTION TWO HUNDRED EIGHTY-TWO OF THIS CHAPTER (EXCEPT FOR WATER-WHITE
53 KEROSENE), shall [in either case,] be guilty of a class E felony. For
54 purposes of this subdivision, such owner shall willfully and knowingly
55 have in his OR HER custody, possession or under his OR HER control any
56 motor fuel or Diesel motor fuel on which such taxes have not been
S. 2811--A 94 A. 4011--A
1 assumed or paid by a distributor registered as such where such owner has
2 knowledge of the requirement that such taxes be paid and where, to his
3 OR HER knowledge, such taxes have not been assumed or paid by a regis-
4 tered distributor on such motor fuel or Diesel motor fuel. Such owner
5 shall willfully and knowingly have in his OR HER custody, possession or
6 under his OR HER control any motor fuel or Diesel motor fuel on which
7 such taxes are required to have been passed through to him OR HER and
8 have not been included in his OR HER cost where such owner has knowledge
9 of the requirement that such taxes be passed through and where to his
10 knowledge such taxes have not been so included. SUCH OWNER SHALL WILL-
11 FULLY AND KNOWINGLY HAVE IN HIS OR HER CUSTODY, POSSESSION OR UNDER HIS
12 OR HER CONTROL ANY DYED DIESEL MOTOR FUEL (EXCEPT WATER-WHITE KEROSENE)
13 WHERE SUCH OWNER HAS KNOWLEDGE OF THE REQUIREMENT THAT DYED DIESEL MOTOR
14 FUEL (EXCEPT WATER-WHITE KEROSENE) MAY NOT BE IN HIS OR HER CUSTODY,
15 POSSESSION OR UNDER HIS OR HER CONTROL.
16 S 51. Subdivision (e) of section 1812 of the tax law is REPEALED and
17 subdivision (f) is relettered subdivision (e).
18 S 52. Section 1812-a of the tax law, as added by chapter 261 of the
19 laws of 1988, is amended to read as follows:
20 S 1812-a. Person not registered as distributor of Diesel motor fuel.
21 (a) Any person who, while not registered as a distributor of Diesel
22 motor fuel pursuant to the provisions of article twelve-A of this chap-
23 ter, [engages in the enhancement,] makes a sale or use within the state
24 of Diesel motor fuel (other than a retail sale not in bulk or the self-
25 use of Diesel motor fuel which has been the subject of a retail sale),
26 imports or causes Diesel motor fuel to be imported into the state or
27 produces, refines, manufactures or compounds Diesel motor fuel within
28 the state shall be guilty of a misdemeanor. If, within any ninety day
29 period, two thousand nine hundred gallons or more of Diesel motor fuel
30 are subjected to [enhancement or] sale or use (other than a retail sale
31 not in bulk or the self-use of Diesel motor fuel which has been the
32 subject of a retail sale) within the state or are imported or caused to
33 be imported by any person while not so registered as a distributor of
34 Diesel motor fuel, such person shall be guilty of a class E felony.
35 (b) Any person whose registration under article twelve-A of this chap-
36 ter applies only to the importation, sale and distribution of Diesel
37 motor fuel for [the purposes] USE OTHER THAN ON A PUBLIC HIGHWAY AS
38 described in subparagraph (i) of paragraph (b) of subdivision three of
39 section two hundred eighty-two-a of this chapter who delivers NON-HIGH-
40 WAY Diesel motor fuel at a filling station [other than for the sole
41 purpose of heating such station] or into a repository equipped with a
42 hose or other apparatus by which NON-HIGHWAY Diesel motor fuel can be
43 dispensed into the fuel tank of a motor vehicle, other than such a
44 repository which is located on the premises of such registrant where the
45 Diesel motor fuel delivered therein is used exclusively for the purpose
46 of fueling motor vehicles operated by registrant for the purpose of
47 distributing Diesel motor fuel for the purposes described in such
48 subparagraph (i), shall be guilty of a misdemeanor. If, within any nine-
49 ty day period, any such person whose registration under article twelve-A
50 of this chapter applies only to the importation, sale and distribution
51 of NON-HIGHWAY Diesel motor fuel for the purposes described in subpara-
52 graph (i) of paragraph (b) of subdivision three of section two hundred
53 eighty-two-a of this chapter so unlawfully delivers a total of one thou-
54 sand gallons or more of Diesel motor fuel at such filling station or
55 stations or into such repository or repositories (or a combination of
S. 2811--A 95 A. 4011--A
1 both such filling stations and repositories), then, such person shall be
2 guilty of a class E felony.
3 (c) Any person who has twice been convicted under this section shall
4 be guilty of a class E felony for any subsequent violation of this
5 section, regardless of the amount of Diesel motor fuel involved in such
6 violation. For purposes of this section, the terms ["enhancement"]
7 "NON-HIGHWAY DIESEL MOTOR FUEL" and "retail sale not in bulk" shall have
8 the same meaning they have for purposes of article twelve-A of this
9 chapter.
10 S 53. Subdivisions (a) and (b) of section 1817 of the tax law, as
11 amended by section 30 of subpart I of part V-1 of chapter 57 of the laws
12 of 2009, is amended to read as follows:
13 (a) Any person required to obtain a certificate of authority under
14 section eleven hundred thirty-four of this chapter who, without possess-
15 ing a valid certificate of authority, willfully (1) sells tangible
16 personal property or services subject to tax, receives amusement charges
17 or operates a hotel, (2) purchases or sells tangible personal property
18 for resale, or (3) sells [automotive fuel] PETROLEUM PRODUCTS; and any
19 person who fails to surrender a certificate of authority as required by
20 such article shall be guilty of a misdemeanor.
21 (b) Any person required to obtain a certificate of authority under
22 section eleven hundred thirty-four of this chapter who within five years
23 after a determination by the [tax commission] COMMISSIONER, pursuant to
24 such section, to suspend, revoke or refuse to issue a certificate of
25 authority has become final, and without possession of a valid certif-
26 icate of authority (1) sells tangible personal property or services
27 subject to tax, receives amusement charges or operates a hotel, (2)
28 purchases or sells tangible personal property for resale, or (3) sells
29 [automotive fuel] PETROLEUM PRODUCTS, shall be guilty of a misdemeanor.
30 It shall be an affirmative defense that such person performed the acts
31 described in this subdivision without knowledge of such determination.
32 Any person who violates a provision of this subdivision, upon
33 conviction, shall be subject to a fine in any amount authorized by this
34 article, but not less than five hundred dollars, in addition to any
35 other penalty provided by law.
36 S 54. The section heading, subdivisions (a), (b) and (c), paragraph 3,
37 subparagraph (D) of paragraph 4 and paragraph 6 of subdivision (d) and
38 subdivisions (e) and (g) of section 1848 of the tax law, as added by
39 chapter 276 of the laws of 1986 and subparagraph (D) of paragraph 4 and
40 paragraph 6 of subdivision (d) as amended by chapter 190 of the laws of
41 1990, are amended to read as follows:
42 Forfeiture action with respect to motor fuel and DIESEL MOTOR FUEL AND
43 vehicle carrying such fuel. (a) Temporary seizure. Whenever a police
44 officer designated in section 1.20 of the criminal procedure law or a
45 peace officer designated in subdivision four of section 2.10 of such
46 law, acting pursuant to his special duties, shall discover any motor
47 fuel OR DIESEL MOTOR FUEL which is being imported for use, distribution,
48 storage or sale in the state where the person importing or causing such
49 motor fuel OR DIESEL MOTOR FUEL to be imported is not registered as a
50 distributor under section two hundred eighty-three OR SECTION TWO
51 HUNDRED EIGHTY-TWO-A, of this chapter, AS THE CASE MAY BE, such police
52 officer or peace officer is hereby authorized to seize and take
53 possession of such motor fuel OR DIESEL MOTOR FUEL, together with the
54 vehicle or other means of transportation used to transport such motor
55 fuel.
S. 2811--A 96 A. 4011--A
1 (b) Retention of property. The department [of taxation and finance]
2 shall hold and safely keep such motor fuel, DIESEL MOTOR FUEL, vehicle
3 or other means of transportation seized pursuant to subdivision (a) of
4 this section. Seized motor fuel OR DIESEL MOTOR FUEL may be deposited
5 to the credit of the department [of taxation and finance] at a terminal
6 or other storage facility within the state or may be sold by the depart-
7 ment on the open market.
8 (c) Confirmation of temporary seizure. Within five business days after
9 the temporary seizure of motor fuel, DIESEL MOTOR FUEL, vehicle or other
10 means of transportation pursuant to subdivision (a) of this section, the
11 department [of taxation and finance] shall move in supreme court in any
12 county, on such notice as the court shall direct to the owners of the
13 property, to confirm the temporary seizure. If the department [of taxa-
14 tion and finance] fails to make such motion within the required period,
15 such seized property shall be restored to the owners thereof as provided
16 in subdivision (e) of this section. On a motion for an order confirming
17 the seizure, the department [of taxation and finance] shall show, by
18 affidavit and such other written evidence as may be submitted, that
19 there is a cause of action for forfeiture under subdivision (d) of this
20 section and that there are grounds for confirmation of the seizure. The
21 department shall include, in its motion papers, an inventory of all
22 seized property. The court shall grant an application for an order
23 confirming the seizure when it determines that there is a substantial
24 probability that the department [of taxation and finance] will prevail
25 on the issue of forfeiture.
26 (3) Forfeiture of motor fuel OR DIESEL MOTOR FUEL together with the
27 vehicle or other means of transportation used to transport such motor
28 fuel OR DIESEL MOTOR FUEL shall be adjudged where the department [of
29 taxation and finance] proves, by clear and convincing evidence, that the
30 person importing or causing such motor fuel OR DIESEL MOTOR FUEL to be
31 imported was not registered as a distributor under section two hundred
32 eighty-three OR SECTION TWO HUNDRED EIGHTY-TWO-A of this chapter, AS THE
33 CASE MAY BE. All defendants in a forfeiture action brought pursuant to
34 this article shall have the right to trial by jury on any issue of fact.
35 (D) The court may grant the relief provided in subparagraph (A) [here-
36 of] OF THIS PARAGRAPH if it finds that such relief is warranted by the
37 existence of some compelling factor, consideration or circumstance
38 demonstrating that forfeiture of the property or any part thereof, would
39 not serve the ends of justice. Reporting and payment of the tax imposed
40 pursuant to article twelve-A or article twenty-eight of this chapter
41 with respect to such motor fuel OR DIESEL MOTOR FUEL subsequent to the
42 seizure of such fuel shall not constitute a compelling factor, consider-
43 ation or circumstance warranting the granting of the relief provided for
44 in subparagraph (A) [hereof] of this paragraph. In determining whether
45 such relief is warranted by the existence of some compelling factor,
46 consideration or circumstances pursuant to this paragraph, the court
47 may, however, take into account the fact that such taxes with respect to
48 the seized fuel have been reported and remitted to the state prior to
49 the temporary seizure of such fuel if the unregistered importation into
50 the state was effected in good faith and without knowledge of the
51 requirement of registration and without intent to evade tax. The court
52 must issue a written decision, stating the basis for an order issued
53 pursuant to this paragraph.
54 (6) The total that may be recovered shall not exceed the value of the
55 motor fuel OR DIESEL MOTOR FUEL seized and, in addition, either the
56 value of the vehicle or other means of transportation used to transport
S. 2811--A 97 A. 4011--A
1 such fuel or three times the amount of the tax and penalty under arti-
2 cles twelve-A, thirteen-A and twenty-eight and pursuant to the authority
3 of article twenty-nine of this chapter with respect to the motor fuel OR
4 DIESEL MOTOR FUEL, whichever is less.
5 (e) Return of property. If (1) the department [of taxation and
6 finance] fails to move for confirmation of the seizure pursuant to
7 subdivision (c) of this section or (2) a court denies an application for
8 an order confirming the seizure or (3) judgment is entered against the
9 department in the forfeiture action and that judgment is affirmed after
10 all appeals are exhausted, then the department shall restore such seized
11 motor fuel OR DIESEL MOTOR FUEL, or motor fuel OR DIESEL MOTOR FUEL of a
12 like quantity and type, or such seized vehicle or other means of trans-
13 portation to the owners thereof. Alternatively, if such seized motor
14 fuel OR DIESEL MOTOR FUEL has been sold as provided in subdivision (b)
15 of this section, the department shall pay to the owners of such motor
16 fuel OR DIESEL MOTOR FUEL the proceeds of such sale or, if greater, an
17 amount of money representing the fair market value of the motor fuel OR
18 DIESEL MOTOR FUEL at the time of the seizure.
19 (g) Disposal of property. The department [of taxation and finance],
20 after a judicial determination of forfeiture, shall, in its discretion,
21 either retain such seized property for its official use or sell such
22 forfeited property at public sale. The net proceeds of any such sale, or
23 of any sale of seized motor fuel OR DIESEL MOTOR FUEL as provided in
24 subdivision (b) of this section, after deduction of the lawful expenses
25 incurred, shall be deposited and disposed of pursuant to the provisions
26 of section one hundred seventy-one-a of this chapter with respect to
27 deposit and disposition of revenue.
28 S 55. Paragraph (q) of subdivision 34 of section 1.20 of the criminal
29 procedure law, as amended by chapter 318 of the laws of 2002, is amended
30 to read as follows:
31 (q) An employee of the department of taxation and finance (i) assigned
32 to enforcement of the taxes imposed under or pursuant to the authority
33 of article twelve-A of the tax law and administered by the commissioner
34 of taxation and finance, taxes imposed under or pursuant to the authori-
35 ty of article eighteen of the tax law and administered by the commis-
36 sioner, taxes imposed under article twenty of the tax law, or sales or
37 compensating use taxes relating to [automotive fuel] PETROLEUM PRODUCTS
38 or cigarettes imposed under article twenty-eight or pursuant to the
39 authority of article twenty-nine of the tax law and administered by the
40 commissioner or (ii) designated as a revenue crimes specialist and
41 assigned to the enforcement of the taxes described in paragraph (c) of
42 subdivision four of section 2.10 of this title, for the purpose of
43 applying for and executing search warrants under article six hundred
44 ninety of this chapter, for the purpose of acting as a claiming agent
45 under article thirteen-A of the civil practice law and rules in
46 connection with the enforcement of the taxes referred to above and for
47 the purpose of executing warrants of arrest relating to the respective
48 crimes specified in subdivision four of section 2.10 of this title.
49 S 56. Paragraph (a) of subdivision 4 of section 2.10 of the criminal
50 procedure law, as amended by chapter 2 of the laws of 1995, is amended
51 to read as follows:
52 (a) to the enforcement of any of the criminal or seizure and forfei-
53 ture provisions of the tax law relating to (i) taxes imposed under or
54 pursuant to the authority of article twelve-A of the tax law and admin-
55 istered by the commissioner, (ii) taxes imposed under or pursuant to the
56 authority of article eighteen of the tax law and administered by the
S. 2811--A 98 A. 4011--A
1 commissioner, (iii) taxes imposed under article twenty of the tax law,
2 or (iv) sales or compensating use taxes relating to [automotive fuel]
3 PETROLEUM PRODUCTS or cigarettes imposed under article twenty-eight or
4 pursuant to the authority of article twenty-nine of the tax law and
5 administered by the commissioner or
6 S 57. Sections 11-2033, 11-2034, 11-2035, 11-2036, 11-2037 and 11-2038
7 of the administrative code of the city of New York are REPEALED.
8 S 58. This act shall take effect September 1, 2011 and shall apply to
9 sales or uses occurring on or after such date in accordance with the
10 applicable transitional provisions in sections 1106 and 1217 of the tax
11 law; provided, however, that:
12 (a) the amendments to subdivisions 22 and 23 of section 282 of the tax
13 law, made by section one of this act shall not affect the repeal of such
14 subdivisions and shall be deemed repealed therewith;
15 (b) the amendments to paragraph 2 of subdivision (a) of section 1102
16 of the tax law made by section thirty-nine of this act shall be subject
17 to the expiration and reversion of such paragraph pursuant to section 19
18 of part W-1 of chapter 109 of the laws of 2006, as amended, when upon
19 such date the provisions of section thirty-nine-a of this act shall take
20 effect; and
21 (c) the amendments to subdivision (j) of section 1115 of the tax law
22 made by section forty-one of this act shall be subject to the expiration
23 and reversion of such subdivision pursuant to section 19 of part W-1 of
24 chapter 109 of the laws of 2006, as amended, when upon such date the
25 provisions of section forty-one-a of this act shall take effect.
26 PART L
27 Section 1. Subdivision 22 of section 282 of the tax law, as added by
28 section 1 of part W-1 of chapter 109 of the laws of 2006, is amended to
29 read as follows:
30 22. "E85" means a [mixture consisting by volume of eighty-five
31 percent] FUEL BLEND CONSISTING OF ethanol and [the remainder of which
32 is] motor fuel, WHICH MEETS THE ASTM INTERNATIONAL ACTIVE STANDARD D5798
33 FOR FUEL ETHANOL.
34 S 2. Section 19 of part W-1 of chapter 109 of the laws of 2006, amend-
35 ing the tax law relating to providing exemptions, reimbursements and
36 credits from various taxes for certain alternative fuels, is amended to
37 read as follows:
38 S 19. This act shall take effect immediately; provided, however, that
39 sections one through thirteen of this act shall take effect September 1,
40 2006 and shall be deemed repealed on September 1, [2011] 2012 and such
41 repeal shall apply in accordance with the applicable transitional
42 provisions of sections 1106 and 1217 of the tax law, and shall apply to
43 sales made, fuel compounded or manufactured, and uses occurring on or
44 after such date, and with respect to sections seven through eleven of
45 this act, in accordance with applicable transitional provisions of
46 sections 1106 and 1217 of the tax law; provided, however, that the
47 commissioner of taxation and finance shall be authorized on and after
48 the date this act shall have become a law to adopt and amend any rules
49 or regulations and to take any steps necessary to implement the
50 provisions of this act; provided further that sections fourteen through
51 sixteen of this act shall take effect immediately and shall apply to
52 taxable years beginning on or after January 1, 2006.
53 S 3. This act shall take effect immediately; provided, however, that
54 the amendments made to subdivision 22 of section 282 of the tax law made
S. 2811--A 99 A. 4011--A
1 by section one of this act shall not affect the repeal of such subdivi-
2 sion and shall be deemed repealed therewith.
3 PART M
4 Section 1. Section 11 of part EE of chapter 63 of the laws of 2000,
5 amending the tax law and other laws relating to modifying the distrib-
6 ution of funds from the motor vehicle fuel excise tax, as amended by
7 section 1-b of part A of chapter 63 of the laws of 2005, is amended to
8 read as follows:
9 S 11. Notwithstanding any other law, rule or regulation to the contra-
10 ry, the comptroller is hereby authorized and directed to deposit in
11 equal monthly installments and distribute pursuant to the provisions of
12 subdivision (d) of section 301-j of the tax law amounts listed below to
13 the credit of the dedicated highway and bridge trust fund and the dedi-
14 cated mass transportation trust fund from [taxes and fees] ALL MOTOR
15 VEHICLE RECEIPTS now deposited into the general fund pursuant to
16 provisions of the vehicle and traffic law: twenty-eight million four
17 hundred thousand dollars from April 1, 2002 through March 31, 2003,
18 sixty-seven million nine hundred thousand dollars from April 1, 2003
19 through March 31, 2004, one hundred seventy million one hundred thousand
20 dollars from April 1, 2004 through March 31, 2005, and one hundred
21 percent of all [taxes and fees] MOTOR VEHICLE RECEIPTS pursuant to
22 provisions of the vehicle and traffic law that are not otherwise
23 directed to be deposited in a fund other than the general fund from
24 April 1, 2005 through March 31, 2006, and the same amount each year
25 thereafter.
26 S 2. This act shall take effect April 1, 2011.
27 PART N
28 Section 1. Paragraph 1 of subdivision a of section 1612 of the tax
29 law, as amended by chapter 147 of the laws of 2010, is amended to read
30 as follows:
31 (1) sixty percent of the total amount for which tickets have been sold
32 for a lawful KENO OR SIMILAR STYLE lottery game [introduced on or after
33 the effective date of this paragraph, subject to the following
34 provisions:
35 (A) such game shall be available only on premises occupied by licensed
36 lottery sales agents, subject to the following provisions:
37 (i) if the licensee holds a license issued pursuant to the alcoholic
38 beverage control law to sell alcoholic beverages for consumption on the
39 premises, then not less than twenty-five percent of the gross sales must
40 result from sales of food;
41 (ii) if the licensee does not hold a license issued pursuant to the
42 alcoholic beverage control law to sell alcoholic beverages for consump-
43 tion on the premises, then the premises must have a minimum square
44 footage greater than two thousand five hundred square feet;
45 (iii) notwithstanding the foregoing provisions, television equipment
46 that automatically displays the results of such drawings may be
47 installed and used without regard to the percentage of food sales or the
48 square footage if such premises are used as:
49 (I) a commercial bowling establishment, or
50 (II) a facility authorized under the racing, pari-mutuel wagering and
51 breeding law to accept pari-mutuel wagers;
S. 2811--A 100 A. 4011--A
1 (B) the rules for the operation of such game shall be as prescribed by
2 regulations promulgated and adopted by the division, provided however,
3 that such rules shall provide that no person under the age of twenty-one
4 may participate in such games on the premises of a licensee who holds a
5 license issued pursuant to the alcoholic beverage control law to sell
6 alcoholic beverages for consumption on the premises; and, provided,
7 further, that such regulations may be revised on an emergency basis not
8 later than ninety days after the enactment of this paragraph in order to
9 conform such regulations to the requirements of this paragraph]; or
10 S 2. This act shall take effect immediately.
11 PART O
12 Section 1. Subparagraph (ii) of paragraph 1 of subdivision b of
13 section 1612 of the tax law is amended by adding a new clause (I) to
14 read as follows:
15 (I) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, FREE PLAY
16 ALLOWANCE CREDITS AUTHORIZED BY THE DIVISION PURSUANT TO SUBDIVISION F
17 OF SECTION SIXTEEN HUNDRED SEVENTEEN-A OF THIS ARTICLE SHALL NOT BE
18 INCLUDED IN THE CALCULATION OF THE TOTAL AMOUNT WAGERED ON VIDEO LOTTERY
19 GAMES, THE TOTAL AMOUNT WAGERED AFTER PAYOUT OF PRIZES, THE VENDOR FEES
20 PAYABLE TO THE OPERATORS OF VIDEO LOTTERY FACILITIES, VENDOR'S CAPITAL
21 AWARDS, FEES PAYABLE TO THE DIVISION'S VIDEO LOTTERY GAMING EQUIPMENT
22 CONTRACTORS, OR RACING SUPPORT PAYMENTS.
23 S 2. Section 1617-a of the tax law is amended by adding a new subdivi-
24 sion f to read as follows:
25 F. (1) THE DIVISION MAY ADMINISTER A FREE PLAY ALLOWANCE PROGRAM TO
26 OFFER PLAYERS OR PROSPECTIVE PLAYERS OF VIDEO LOTTERY GAMES FREE PLAY
27 CREDITS FOR THE PURPOSE OF INCREASING REVENUES EARNED BY THE VIDEO
28 LOTTERY PROGRAM FOR THE SUPPORT OF EDUCATION. FOR THE PURPOSES OF THIS
29 SUBDIVISION, "FREE PLAY ALLOWANCE CREDIT" MEANS A SPECIFIED DOLLAR
30 AMOUNT THAT (I) MAY BE USED BY A PLAYER TO PLAY A VIDEO LOTTERY GAME
31 WITHOUT PAYING ANY OTHER CONSIDERATION, AND (II) IS NOT USED IN THE
32 CALCULATION OF TOTAL REVENUE WAGERED AFTER PAYOUT OF PRIZES.
33 (2) FOR EACH VIDEO LOTTERY FACILITY, THE DIVISION SHALL AUTHORIZE THE
34 USE OF FREE PLAY ALLOWANCE CREDITS IF THE OPERATOR OF SUCH FACILITY
35 SUBMITS A WRITTEN PLAN FOR THE USE OF THE FREE PLAY ALLOWANCE THAT THE
36 DIVISION DETERMINES IS DESIGNED TO INCREASE THE AMOUNT OF REVENUE EARNED
37 BY VIDEO LOTTERY GAMING AT SUCH FACILITY FOR THE SUPPORT OF EDUCATION.
38 (3) FOR EACH VIDEO LOTTERY FACILITY, THE ANNUAL VALUE OF THE FREE PLAY
39 ALLOWANCE CREDITS AUTHORIZED FOR USE BY THE OPERATOR PURSUANT TO THIS
40 SUBDIVISION SHALL NOT EXCEED AN AMOUNT EQUAL TO TEN PERCENT OF THE TOTAL
41 AMOUNT WAGERED ON VIDEO LOTTERY GAMES AFTER PAYOUT OF PRIZES. THE DIVI-
42 SION SHALL ESTABLISH PROCEDURES TO ASSURE THAT FREE PLAY ALLOWANCE CRED-
43 ITS DO NOT EXCEED SUCH AMOUNT.
44 (4) THE DIVISION, IN CONJUNCTION WITH THE DIRECTOR OF THE BUDGET, MAY
45 SUSPEND THE USE OF FREE PLAY ALLOWANCE CREDITS AUTHORIZED PURSUANT TO
46 THIS SUBDIVISION WHENEVER THEY JOINTLY DETERMINE THAT THE USE OF FREE
47 PLAY ALLOWANCE CREDITS ARE NOT EFFECTIVE IN INCREASING THE AMOUNT OF
48 REVENUE EARNED FOR THE SUPPORT OF EDUCATION, AND SUCH USE MAY NOT BE
49 RESUMED UNLESS THE OPERATOR OF SUCH FACILITY SUBMITS A NEW OR REVISED
50 WRITTEN PLAN FOR THE USE OF THE FREE PLAY ALLOWANCE THAT THE DIVISION
51 DETERMINES IS DESIGNED MORE EFFECTIVELY TO PRODUCE AN INCREASE IN THE
52 AMOUNT OF REVENUE EARNED BY VIDEO LOTTERY GAMING AT SUCH FACILITY FOR
53 THE SUPPORT OF EDUCATION.
S. 2811--A 101 A. 4011--A
1 (5) NOTHING IN THIS SUBDIVISION SHALL BE DEEMED TO PROHIBIT THE OPERA-
2 TOR OF A VIDEO LOTTERY FACILITY FROM OFFERING FREE PLAY CREDITS TO PLAY-
3 ERS OR PROSPECTIVE PLAYERS OF VIDEO LOTTERY GAMES WHEN THE VALUE OF SUCH
4 FREE PLAY CREDITS IS INCLUDED IN THE CALCULATION OF THE TOTAL AMOUNT
5 WAGERED ON VIDEO LOTTERY GAMES AND THE TOTAL AMOUNT WAGERED AFTER PAYOUT
6 OF PRIZES, AND THE OPERATOR OF SUCH FACILITY PAYS THE DIVISION THE FULL
7 AMOUNT DUE AS THE RESULT OF SUCH CALCULATIONS.
8 (6) THE DIVISION MAY AMEND THE CONTRACT WITH THE PROVIDER OF THE
9 CENTRAL COMPUTER SYSTEM THAT CONTROLS THE VIDEO LOTTERY NETWORK DURING
10 THE TERM OF SUCH CONTRACT IN EFFECT ON THE EFFECTIVE DATE OF THIS SUBDI-
11 VISION TO PROVIDE ADDITIONAL CONSIDERATION TO SUCH PROVIDER IN AN AMOUNT
12 DETERMINED BY THE DIVISION TO BE NECESSARY TO COMPENSATE FOR (I) PROC-
13 ESSING FREE PLAY ALLOWANCE TRANSACTIONS AND (II) SYSTEM UPDATES AND
14 MODIFICATIONS OTHERWISE NEEDED AS OF SUCH EFFECTIVE DATE.
15 S 3. This act shall take effect immediately.
16 PART P
17 Section 1. Paragraph 2 of subdivision a of section 1612 of the tax
18 law, as amended by section 1 of part P of chapter 85 of the laws of
19 2002, is amended to read as follows:
20 (2) sixty-five percent of the total amount for which tickets have been
21 sold for the "Instant Cash" game in which the participant purchases a
22 preprinted ticket on which dollar amounts or symbols are concealed on
23 the face or the back of such ticket, provided however up to [three such]
24 FIVE NEW games may be offered during the fiscal year, seventy-five
25 percent of the total amount for which tickets have been sold for such
26 [three] FIVE games in which the participant purchases a preprinted tick-
27 et on which dollar amounts or symbols are concealed on the face or the
28 back of such ticket; or
29 S 2. This act shall take effect immediately.
30 PART Q
31 Section 1. Paragraph 3 of subdivision a of section 1612 of the tax
32 law, as amended by section 2 of part D of chapter 383 of the laws of
33 2001, is amended to read as follows:
34 (3) fifty percent of the total amount for which tickets have been sold
35 for games known as: (A) the "Daily Numbers Game" or "Win 4", discrete
36 games in which the participants select no more than three or four of
37 their own numbers to match with three or four numbers drawn by the divi-
38 sion for purposes of determining winners of such games, (B) "Pick 10",
39 offered no more than once daily, in which participants select from a
40 specified field of numbers a subset of ten numbers to match against a
41 subset of numbers to be drawn by the division from such field of numbers
42 for the purpose of determining winners of such game, (C) "Take 5",
43 offered no more than once daily, in which participants select from a
44 specified field of numbers a subset of five numbers to match against a
45 subset of five numbers to be drawn by the division from such field of
46 numbers for purposes of determining winners of such game, and (D) any
47 joint, multi-jurisdiction, and out-of-state lottery, EXCEPT SUCH PERCENT
48 MAY EXCEED FIFTY PERCENT OF THE TOTAL AMOUNT FOR WHICH TICKETS HAVE BEEN
49 SOLD FOR ANY JOINT, MULTI-JURISDICTION, AND OUT-OF-STATE LOTTERY IF AT
50 LEAST TWO-THIRDS OF THE LOTTERY JURISDICTIONS PARTICIPATING IN SUCH
51 LOTTERY AGREE TO A PERCENTAGE THAT EXCEEDS FIFTY PERCENT AND EXCEPT AS
S. 2811--A 102 A. 4011--A
1 OTHERWISE PROVIDED IN PARAGRAPH ONE OF SUBDIVISION B OF THIS SECTION FOR
2 ANY JOINT, MULTI-JURISDICTION, OUT-OF-STATE VIDEO LOTTERY GAMING; or
3 S 2. This act shall take effect immediately.
4 PART R
5 Section 1. The opening paragraph of paragraph 1 of subdivision b of
6 section 1612 of the tax law, as amended by section 1 of part O-1 of
7 chapter 57 of the laws of 2009, is amended to read as follows:
8 Notwithstanding section one hundred twenty-one of the state finance
9 law, on or before the twentieth day of each month, the division shall
10 pay into the state treasury, to the credit of the state lottery fund
11 created by section ninety-two-c of the state finance law, not less than
12 forty-five percent of the total amount for which tickets have been sold
13 for games defined in paragraph four of subdivision a of this section
14 during the preceding month, not less than thirty-five percent of the
15 total amount for which tickets have been sold for games defined in para-
16 graph three of subdivision a of this section during the preceding month,
17 not less than twenty percent of the total amount for which tickets have
18 been sold for games defined in paragraph two of subdivision a of this
19 section during the preceding month, provided however that for games with
20 a prize payout of seventy-five percent of the total amount for which
21 tickets have been sold, the division shall pay not less than ten percent
22 of sales into the state treasury and not less than twenty-five percent
23 of the total amount for which tickets have been sold for games defined
24 in paragraph one of subdivision a of this section during the preceding
25 month; and the balance of the total revenue after payout for prizes for
26 games known as "video lottery gaming," INCLUDING ANY JOINT, MULTI-JURIS-
27 DICTION, AND OUT-OF-STATE VIDEO LOTTERY GAMING,
28 S 2. Paragraph 1 of subdivision c of section 1612 of the tax law, as
29 amended by section 2 of part CC of chapter 61 of the laws of 2005, is
30 amended to read as follows:
31 1. The specifications for video lottery gaming, INCLUDING ANY JOINT,
32 MULTI-JURISDICTION, AND OUT-OF-STATE VIDEO LOTTERY GAMING, shall be
33 designed in such a manner as to pay prizes that average no less than
34 ninety percent of sales.
35 S 3. This act shall take effect immediately.
36 PART S
37 Section 1. Paragraph (a) of subdivision 1 of section 1003 of the
38 racing, pari-mutuel wagering and breeding law, as amended by section 1
39 of part C of chapter 134 of the laws of 2010, is amended to read as
40 follows:
41 (a) Any racing association or corporation or regional off-track
42 betting corporation, authorized to conduct pari-mutuel wagering under
43 this chapter, desiring to display the simulcast of horse races on which
44 pari-mutuel betting shall be permitted in the manner and subject to the
45 conditions provided for in this article may apply to the board for a
46 license so to do. Applications for licenses shall be in such form as may
47 be prescribed by the board and shall contain such information or other
48 material or evidence as the board may require. No license shall be
49 issued by the board authorizing the simulcast transmission of thorough-
50 bred races from a track located in Suffolk county. The fee for such
51 licenses shall be five hundred dollars per simulcast facility per year
52 payable by the licensee to the board for deposit into the general fund.
S. 2811--A 103 A. 4011--A
1 Except as provided herein, the board shall not approve any application
2 to conduct simulcasting into individual or group residences, homes or
3 other areas for the purposes of or in connection with pari-mutuel wager-
4 ing. The board may approve simulcasting into residences, homes or other
5 areas to be conducted jointly by one or more regional off-track betting
6 corporations and one or more of the following: a franchised corporation,
7 thoroughbred racing corporation or a harness racing corporation or asso-
8 ciation; provided (i) the simulcasting consists only of those races on
9 which pari-mutuel betting is authorized by this chapter at one or more
10 simulcast facilities for each of the contracting off-track betting
11 corporations which shall include wagers made in accordance with section
12 one thousand fifteen, one thousand sixteen and one thousand seventeen of
13 this article; provided further that the contract provisions or other
14 simulcast arrangements for such simulcast facility shall be no less
15 favorable than those in effect on January first, two thousand five; (ii)
16 that each off-track betting corporation having within its geographic
17 boundaries such residences, homes or other areas technically capable of
18 receiving the simulcast signal shall be a contracting party; (iii) the
19 distribution of revenues shall be subject to contractual agreement of
20 the parties except that statutory payments to non-contracting parties,
21 if any, may not be reduced; provided, however, that nothing herein to
22 the contrary shall prevent a track from televising its races on an
23 irregular basis primarily for promotional or marketing purposes as found
24 by the board. For purposes of this paragraph, the provisions of section
25 one thousand thirteen of this article shall not apply. Any agreement
26 authorizing an in-home simulcasting experiment commencing prior to May
27 fifteenth, nineteen hundred ninety-five, may, and all its terms, be
28 extended until June thirtieth, two thousand [eleven] TWELVE; provided,
29 however, that any party to such agreement may elect to terminate such
30 agreement upon conveying written notice to all other parties of such
31 agreement at least forty-five days prior to the effective date of the
32 termination, via registered mail. Any party to an agreement receiving
33 such notice of an intent to terminate, may request the board to mediate
34 between the parties new terms and conditions in a replacement agreement
35 between the parties as will permit continuation of an in-home experiment
36 until June thirtieth, two thousand [eleven] TWELVE; and (iv) no in-home
37 simulcasting in the thoroughbred special betting district shall occur
38 without the approval of the regional thoroughbred track.
39 S 2. Subparagraph (iii) of paragraph d of subdivision 3 of section
40 1007 of the racing, pari-mutuel wagering and breeding law, as amended by
41 section 2 of part C of chapter 134 of the laws of 2010, is amended to
42 read as follows:
43 (iii) Of the sums retained by a receiving track located in Westchester
44 county on races received from a franchised corporation, for the period
45 commencing January first, two thousand eight and continuing through June
46 thirtieth, two thousand [eleven] TWELVE, the amount used exclusively for
47 purses to be awarded at races conducted by such receiving track shall be
48 computed as follows: of the sums so retained, two and one-half percent
49 of the total pools. Such amount shall be increased or decreased in the
50 amount of fifty percent of the difference in total commissions deter-
51 mined by comparing the total commissions available after July twenty-
52 first, nineteen hundred ninety-five to the total commissions that would
53 have been available to such track prior to July twenty-first, nineteen
54 hundred ninety-five.
55 S 3. The opening paragraph of subdivision 1 of section 1014 of the
56 racing, pari-mutuel wagering and breeding law, as amended by section 3
S. 2811--A 104 A. 4011--A
1 of part C of chapter 134 of the laws of 2010, is amended to read as
2 follows:
3 The provisions of this section shall govern the simulcasting of races
4 conducted at thoroughbred tracks located in another state or country on
5 any day during which a franchised corporation is conducting a race meet-
6 ing in Saratoga county at Saratoga thoroughbred racetrack until June
7 thirtieth, two thousand [eleven] TWELVE and on any day regardless of
8 whether or not a franchised corporation is conducting a race meeting in
9 Saratoga county at Saratoga thoroughbred racetrack after June thirtieth,
10 two thousand [eleven] TWELVE. On any day on which a franchised corpo-
11 ration has not scheduled a racing program but a thoroughbred racing
12 corporation located within the state is conducting racing, every off-
13 track betting corporation branch office and every simulcasting facility
14 licensed in accordance with section one thousand seven (that have
15 entered into a written agreement with such facility's representative
16 horsemen's organization, as approved by the board), one thousand eight,
17 or one thousand nine of this article shall be authorized to accept
18 wagers and display the live simulcast signal from thoroughbred tracks
19 located in another state or foreign country subject to the following
20 provisions:
21 S 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering
22 and breeding law, as amended by section 4 of part C of chapter 134 of
23 the laws of 2010, is amended to read as follows:
24 1. The provisions of this section shall govern the simulcasting of
25 races conducted at harness tracks located in another state or country
26 during the period July first, nineteen hundred ninety-four through June
27 thirtieth, two thousand [eleven] TWELVE. This section shall supersede
28 all inconsistent provisions of this chapter.
29 S 5. The opening paragraph of subdivision 1 of section 1016 of the
30 racing, pari-mutuel wagering and breeding law, as amended by section 5
31 of part C of chapter 134 of the laws of 2010, is amended to read as
32 follows:
33 The provisions of this section shall govern the simulcasting of races
34 conducted at thoroughbred tracks located in another state or country on
35 any day during which a franchised corporation is not conducting a race
36 meeting in Saratoga county at Saratoga thoroughbred racetrack until June
37 thirtieth, two thousand [eleven] TWELVE. Every off-track betting corpo-
38 ration branch office and every simulcasting facility licensed in accord-
39 ance with section one thousand seven that have entered into a written
40 agreement with such facility's representative horsemen's organization as
41 approved by the board, one thousand eight or one thousand nine of this
42 article shall be authorized to accept wagers and display the live full-
43 card simulcast signal of thoroughbred tracks (which may include quarter
44 horse or mixed meetings provided that all such wagering on such races
45 shall be construed to be thoroughbred races) located in another state or
46 foreign country, subject to the following provisions; provided, however,
47 no such written agreement shall be required of a franchised corporation
48 licensed in accordance with section one thousand seven of this article:
49 S 6. The opening paragraph of section 1018 of the racing, pari-mutuel
50 wagering and breeding law, as amended by section 6 of part C of chapter
51 134 of the laws of 2010, is amended to read as follows:
52 Notwithstanding any other provision of this chapter, for the period
53 July twenty-fifth, two thousand one through September eighth, two thou-
54 sand [ten] ELEVEN, when a franchised corporation is conducting a race
55 meeting within the state at Saratoga Race Course, every off-track
56 betting corporation branch office and every simulcasting facility
S. 2811--A 105 A. 4011--A
1 licensed in accordance with section one thousand seven (that has entered
2 into a written agreement with such facility's representative horsemen's
3 organization as approved by the board), one thousand eight or one thou-
4 sand nine of this article shall be authorized to accept wagers and
5 display the live simulcast signal from thoroughbred tracks located in
6 another state, provided that such facility shall accept wagers on races
7 run at all in-state thoroughbred tracks which are conducting racing
8 programs subject to the following provisions; provided, however, no such
9 written agreement shall be required of a franchised corporation licensed
10 in accordance with section one thousand seven of this article.
11 S 7. Section 32 of chapter 281 of the laws of 1994, amending the
12 racing, pari-mutuel wagering and breeding law and other laws relating to
13 simulcasting, as amended by section 7 of part C of chapter 134 of the
14 laws of 2010, is amended to read as follows:
15 S 32. This act shall take effect immediately and the pari-mutuel tax
16 reductions in section six of this act shall expire and be deemed
17 repealed on July 1, [2011] 2012; provided, however, that nothing
18 contained herein shall be deemed to affect the application, qualifica-
19 tion, expiration, or repeal of any provision of law amended by any
20 section of this act, and such provisions shall be applied or qualified
21 or shall expire or be deemed repealed in the same manner, to the same
22 extent and on the same date as the case may be as otherwise provided by
23 law; provided further, however, that sections twenty-three and twenty-
24 five of this act shall remain in full force and effect only until May 1,
25 1997 and at such time shall be deemed to be repealed.
26 S 8. Section 54 of chapter 346 of the laws of 1990, amending the
27 racing, pari-mutuel wagering and breeding law and other laws relating to
28 simulcasting and the imposition of certain taxes, as amended by section
29 8 of part C of chapter 134 of the laws of 2010, is amended to read as
30 follows:
31 S 54. This act shall take effect immediately; provided, however,
32 sections three through twelve of this act shall take effect on January
33 1, 1991, and section 1013 of the racing, pari-mutuel wagering and breed-
34 ing law, as added by section thirty-eight of this act, shall expire and
35 be deemed repealed on July 1, [2011] 2012; and section eighteen of this
36 act shall take effect on July 1, 2008 and sections fifty-one and fifty-
37 two of this act shall take effect as of the same date as chapter 772 of
38 the laws of 1989 took effect.
39 S 9. Paragraph (a) of subdivision 1 of section 238 of the racing,
40 pari-mutuel wagering and breeding law, as amended by section 10 of part
41 C of chapter 134 of the laws of 2010, is amended to read as follows:
42 (a) The franchised corporation authorized under this chapter to
43 conduct pari-mutuel betting at a race meeting or races run thereat shall
44 distribute all sums deposited in any pari-mutuel pool to the holders of
45 winning tickets therein, provided such tickets be presented for payment
46 before April first of the year following the year of their purchase,
47 less an amount which shall be established and retained by such fran-
48 chised corporation of between twelve to seventeen per centum of the
49 total deposits in pools resulting from on-track regular bets, and four-
50 teen to twenty-one per centum of the total deposits in pools resulting
51 from on-track multiple bets and fifteen to twenty-five per centum of the
52 total deposits in pools resulting from on-track exotic bets and fifteen
53 to thirty-six per centum of the total deposits in pools resulting from
54 on-track super exotic bets, plus the breaks. The retention rate to be
55 established is subject to the prior approval of the racing and wagering
56 board. Such rate may not be changed more than once per calendar quarter
S. 2811--A 106 A. 4011--A
1 to be effective on the first day of the calendar quarter. "Exotic bets"
2 and "multiple bets" shall have the meanings set forth in section five
3 hundred nineteen of this chapter. "Super exotic bets" shall have the
4 meaning set forth in section three hundred one of this chapter. For
5 purposes of this section, a "pick six bet" shall mean a single bet or
6 wager on the outcomes of six races. The breaks are hereby defined as the
7 odd cents over any multiple of five for payoffs greater than one dollar
8 five cents but less than five dollars, over any multiple of ten for
9 payoffs greater than five dollars but less than twenty-five dollars,
10 over any multiple of twenty-five for payoffs greater than twenty-five
11 dollars but less than two hundred fifty dollars, or over any multiple of
12 fifty for payoffs over two hundred fifty dollars. Out of the amount so
13 retained there shall be paid by such franchised corporation to the
14 commissioner of taxation and finance, as a reasonable tax by the state
15 for the privilege of conducting pari-mutuel betting on the races run at
16 the race meetings held by such franchised corporation, the following
17 percentages of the total pool for regular and multiple bets five per
18 centum of regular bets and four per centum of multiple bets plus twenty
19 per centum of the breaks; for exotic wagers seven and one-half per
20 centum plus twenty per centum of the breaks, and for super exotic bets
21 seven and one-half per centum plus fifty per centum of the breaks. For
22 the period June first, nineteen hundred ninety-five through September
23 ninth, nineteen hundred ninety-nine, such tax on regular wagers shall be
24 three per centum and such tax on multiple wagers shall be two and one-
25 half per centum, plus twenty per centum of the breaks. For the period
26 September tenth, nineteen hundred ninety-nine through March thirty-
27 first, two thousand one, such tax on all wagers shall be two and six-
28 tenths per centum and for the period April first, two thousand one
29 through December thirty-first, two thousand [eleven] TWELVE, such tax on
30 all wagers shall be one and six-tenths per centum, plus, in each such
31 period, twenty per centum of the breaks. Payment to the New York state
32 thoroughbred breeding and development fund by such franchised corpo-
33 ration shall be one-half of one per centum of total daily on-track pari-
34 mutuel pools resulting from regular, multiple and exotic bets and three
35 per centum of super exotic bets provided, however, that for the period
36 September tenth, nineteen hundred ninety-nine through March thirty-
37 first, two thousand one, such payment shall be six-tenths of one per
38 centum of regular, multiple and exotic pools and for the period April
39 first, two thousand one through December thirty-first, two thousand
40 [eleven] TWELVE, such payment shall be seven-tenths of one per centum of
41 such pools.
42 S 10. Subdivision 5 of section 1012 of the racing, pari-mutuel wager-
43 ing and breeding law, as amended by section 11 of part C of chapter 134
44 of the laws of 2010, is amended to read as follows:
45 5. The provisions of this section shall expire and be of no further
46 force and effect after June thirtieth, two thousand [eleven] TWELVE.
47 S 11. This act shall take effect immediately.
48 S 2. Severability clause. If any clause, sentence, paragraph, subdivi-
49 sion, section or part of this act shall be adjudged by any court of
50 competent jurisdiction to be invalid, such judgment shall not affect,
51 impair, or invalidate the remainder thereof, but shall be confined in
52 its operation to the clause, sentence, paragraph, subdivision, section
53 or part thereof directly involved in the controversy in which such judg-
54 ment shall have been rendered. It is hereby declared to be the intent of
55 the legislature that this act would have been enacted even if such
56 invalid provisions had not been included herein.
S. 2811--A 107 A. 4011--A
1 S 3. This act shall take effect immediately provided, however, that
2 the applicable effective date of Parts A through S of this act shall be
3 as specifically set forth in the last section of such Parts.
