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
________________________________________________________________________
4011--B
I N A S S E M B L Y
February 1, 2011
___________
A BUDGET BILL, submitted by the Governor pursuant to article seven of
the Constitution -- read once and referred to the Committee on Ways
and Means -- committee discharged, bill amended, ordered reprinted as
amended and recommitted to said committee -- again reported from said
committee with amendments, ordered reprinted as amended and recommit-
ted to said committee
AN ACT to amend the 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); Intentionally omitted (Part H); to
amend the insurance law, the general municipal law and the tax law, in
relation to conforming to the federal 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
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD12574-03-1
A. 4011--B 2
(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 busi-
ness 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 adminis-
trative code of the city of New York, in relation to extending transi-
tional 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 consist-
ent 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 tech-
nical correction to the E85 definition; 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 distribution of motor vehicle fees
(Part M); Intentionally omitted (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); Intentionally omitted (Part Q); Intentionally
omitted (Part R); to amend the racing, pari-mutuel wagering and breed-
ing law, in relation to licenses for simulcast facilities, sums relat-
ing to track simulcast, simulcast of out-of-state thoroughbred races,
simulcasting of races run by out-of-state harness tracks and distrib-
utions of wagers; to amend chapter 281 of the laws of 1994 amending
the racing, pari-mutuel wagering and breeding law and other laws
relating to simulcasting and 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 extend-
ing certain provisions thereof (Part S); and to amend the tax law, in
relation to the imposition of tax (Part T)
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 T. The effective date for each particular
A. 4011--B 3
1 provision contained within such Part is set forth in the last section of
2 such Part. Any provision in any section contained within a Part, includ-
3 ing the effective date of the Part, which makes a reference to a section
4 "of this act", when used in connection with that particular component,
5 shall be deemed to mean and refer to the corresponding section of the
6 Part in which it is found. Section three of this act sets forth the
7 general effective date of this act.
8 PART A
9 Section 1. Paragraphs (a), (b) and (k) of subdivision 1 of section 300
10 of the abandoned property law, paragraph (a) as amended and paragraph
11 (k) as relettered by chapter 15 of the laws of 1983, subparagraph (iv)
12 of paragraph (a) as amended and subparagraph (v) of paragraph (a) as
13 added by chapter 409 of the laws of 1994, paragraphs (b) and (k) as
14 amended by chapter 78 of the laws of 1976, are amended to read as
15 follows:
16 (a) Any amounts due on deposits or any amounts to which a shareholder
17 of a savings and loan association or a credit union is entitled, held or
18 owing by a banking organization, which shall have remained unclaimed for
19 [five] THREE years by the person or persons appearing to be entitled
20 thereto, including any interest or dividends credited thereon, excepting
21 (i) any such amount which has been reduced or increased, exclusive of
22 dividend or interest payment, within [five] THREE years, or
23 (ii) any such amount which is represented by a passbook not in the
24 possession of the banking organization, which has been presented for
25 entry of dividend or interest credit within [five] THREE years, or
26 (iii) any such amount with respect to which the banking organization
27 has on file written evidence received within [five] THREE years that the
28 person or persons appearing to be entitled to such amounts had knowledge
29 thereof, or
30 (iv) any such amount payable only at or by a branch office located in
31 a foreign country, or payable in currency other than United States
32 currency, or
33 (v) any such amount that is separately identifiable and has been set
34 aside to meet the burial and related expenses of an individual, provided
35 however that said amount shall be deemed abandoned property where it
36 remains unclaimed for [five] THREE years subsequent to the death of the
37 individual for whom the amount was deposited.
38 (b) Any amounts, together with all accumulations of interest or other
39 increment thereon, held or owing by a banking organization for the
40 payment of an interest in a bond and mortgage apportioned or transferred
41 by it pursuant to subdivision seven of former section one hundred eight-
42 y-eight of the banking law as it existed prior to July first, nineteen
43 hundred thirty-seven, which shall have remained unclaimed by the person
44 or persons appearing to be entitled thereto for [five] THREE years after
45 the full and final liquidation of such mortgage, excepting
46 (i) any such amount which has been reduced by payment to the person or
47 persons appearing to be entitled thereto within [five] THREE years, or
48 (ii) any such amount which is represented by a certificate of share
49 ownership not in the possession of the banking organization, which
50 certificate has been presented for transfer within [five] THREE years,
51 or
52 (iii) any such amount with respect to which the banking organization
53 has on file written evidence received within [five] THREE years that the
A. 4011--B 4
1 person or persons appearing to be entitled to such amount had knowledge
2 thereof.
3 (k) Lost property or instruments as defined in section two hundred
4 fifty-one of the personal property law which shall have been held by a
5 safe deposit company or bank for [five] THREE years pursuant to the
6 provisions of section two hundred fifty-six of the personal property
7 law.
8 S 2. Paragraphs (a) and (c) of subdivision 1 of section 600 of the
9 abandoned property law, paragraph (a) as amended by chapter 655 of the
10 laws of 1978 and paragraph (c) as amended by chapter 281 of the laws of
11 1980, are amended to read as follows:
12 (a) Any moneys including the monetary proceeds from the sale of tangi-
13 ble personal property and securities or other intangible property paid
14 into court, which, except as provided in section ten hundred OF THIS
15 CHAPTER, shall have remained in the hands of any county treasurer, or
16 the commissioner of finance of the city of New York, for [five] THREE
17 years, together with all accumulations of interest or other increment
18 thereon, less such legal fees as he may be entitled to.
19 (c) Any moneys paid to a support bureau of a family court, for the
20 support of a spouse or child, which shall have remained in the custody
21 of a county treasurer, or the commissioner of finance of the city of New
22 York, for [five] THREE years, together with any interest due thereon,
23 less such legal fees as he may be entitled to. For purposes of this
24 section, "family court" includes the domestic relations court of the
25 city of New York prior to the first day of September, nineteen hundred
26 sixty-two.
27 S 3. Subdivision 1 of section 1000 of the abandoned property law, as
28 amended by chapter 670 of the laws of 1989, is amended to read as
29 follows:
30 1. (a) Any moneys held or owing for the payment of an award made by a
31 court in any condemnation proceeding and payable by a public corporation
32 or other corporation possessing powers of condemnation, which shall have
33 remained unclaimed by the person or persons appearing to be entitled
34 thereto for [five] THREE years after confirmation by the court, together
35 with any interest due thereon, less, when an award is payable by a
36 public corporation, any amount due such public corporation at the time
37 of title vesting for tax, water or any other liens on the same parcel
38 the award was for, with any interest due thereon, and any amount due
39 such public corporation at the time of title vesting or at the time of
40 confirmation, whichever is later, for an assessment on the same parcel
41 the award was for, with any interest due thereon, shall be deemed aban-
42 doned property. In any condemnation proceedings in which the court shall
43 have not made an award, any moneys paid into court, including interest
44 thereon, shall be subject to the provisions of article six of this chap-
45 ter and this section shall have no application thereto.
46 (b) The issuance of a warrant for such an award shall not prevent an
47 award from being deemed abandoned property if such warrant is unclaimed
48 [five] THREE years after confirmation of such award by the court.
49 S 4. Subdivision 1 of section 1300 of the abandoned property law is
50 amended to read as follows:
51 1. Any unclaimed moneys arising from the sale of any personal property
52 which shall have been pledged or mortgaged as security for the loan of
53 money with a corporation, except a banking organization or a licensed
54 lender, heretofore or hereafter organized by or pursuant to a special
55 statute for the purpose of, and principally engaged in, giving aid to
56 individuals by loans of money at interest upon the pledge or mortgage of
A. 4011--B 5
1 personal property, and which has subjected itself to special provisions
2 of the banking law, after deducting the amount of the loan, the interest
3 then due on the same and any other lawful charges, which shall have
4 remained in its possession for [six] THREE years from the date of such
5 sale, shall be deemed abandoned property.
6 S 5. Subdivision 2 of section 1315 of the abandoned property law, as
7 amended by section 2 of part II of chapter 57 of the laws of 2010, is
8 amended to read as follows:
9 2. Except as otherwise provided by law, any amount representing
10 unclaimed money or securities and held in escrow or otherwise by any
11 corporation (other than a public corporation), joint stock company,
12 individual, association of two or more individuals, committee or busi-
13 ness trust, to ensure the performance of any duty or obligation, shall
14 be deemed abandoned property when:
15 a. such amount is held or owing in this state, and
16 b. such amount has remained unclaimed by the person or persons enti-
17 tled thereto for [five] THREE years, except
18 c. where the duty or obligation for which such amount was deposited
19 has not been performed and such performance is still required, such
20 amounts shall not be deemed abandoned property.
21 S 6. Paragraph (a) of subdivision 1 of section 1002 of the abandoned
22 property law is amended to read as follows:
23 (a) That a report of all awards in condemnation proceedings unclaimed
24 for more than [five] THREE years has been made to the state comptroller
25 and that a copy thereof is on file and open to public inspection, if a
26 public corporation at the office of the chief fiscal officer thereof; or
27 if not a public corporation at the principal office or place of business
28 of such corporation;
29 S 7. Sections 301, 401, 701 and 1001 of the abandoned property law are
30 REPEALED.
31 S 8. Subdivision 1 of section 302 of the abandoned property law is
32 amended to read as follows:
33 1. [Within thirty days after making a report of abandoned property
34 pursuant to the provisions of section three hundred one, such banking]
35 EVERY BANKING organization shall cause to be published, ON OR BEFORE THE
36 FIRST DAY OF SEPTEMBER IN EACH YEAR, a notice entitled: "NOTICE OF NAMES
37 OF PERSONS APPEARING AS OWNERS OF CERTAIN UNCLAIMED PROPERTY HELD BY
38 (name of banking organization)."
39 S 9. The opening paragraph of subdivision 3 of section 302 of the
40 abandoned property law, as amended by chapter 315 of the laws of 1954,
41 is amended to read as follows:
42 Such notice shall[, in accordance with the classification prescribed
43 by the state comptroller for the report pursuant to the provisions of
44 section three hundred one,] set forth:
45 S 10. Section 303 of the abandoned property law is amended to read as
46 follows:
47 S 303. Payment of abandoned property. 1. In such succeeding month of
48 November, and on or before the tenth day thereof, every banking organ-
49 ization shall pay or deliver to the state comptroller all [abandoned]
50 property [specified in such report, excepting such abandoned property as
51 since the date of such report shall have ceased to be abandoned] WHICH,
52 AS OF THE THIRTIETH DAY OF JUNE NEXT PRECEDING, WAS DEEMED ABANDONED
53 PURSUANT TO SECTION THREE HUNDRED OF THIS ARTICLE, HELD OR OWING BY SUCH
54 BANKING ORGANIZATION.
55 2. Such payment shall be accompanied by a [statement] TRUE AND ACCU-
56 RATE REPORT setting forth such information as the state comptroller may
A. 4011--B 6
1 require relative to such abandoned property [as shall have ceased to be
2 abandoned]. SUCH REPORT SHALL INCLUDE:
3 (A) WITH RESPECT TO AMOUNTS SPECIFIED IN PARAGRAPH (A) OF SUBDIVISION
4 ONE OF SECTION THREE HUNDRED WHICH ARE ABANDONED PROPERTY:
5 (I) THE NAME AND LAST KNOWN ADDRESS OF THE PERSON OR PERSONS APPEARING
6 FROM THE RECORDS OF SUCH BANKING ORGANIZATION TO BE THE OWNER OF ANY
7 SUCH ABANDONED PROPERTY;
8 (II) THE AMOUNT APPEARING FROM SUCH RECORDS TO BE DUE SUCH PERSON OR
9 PERSONS;
10 (III) THE DATE OF THE LAST TRANSACTION WITH RESPECT TO SUCH ABANDONED
11 PROPERTY;
12 (IV) THE NATURE AND IDENTIFYING NUMBER, IF ANY, OF SUCH ABANDONED
13 PROPERTY; AND
14 (V) SUCH OTHER IDENTIFYING INFORMATION AS THE STATE COMPTROLLER MAY
15 REQUIRE.
16 (B) WITH RESPECT TO AMOUNTS SPECIFIED IN PARAGRAPH (B) OF SUBDIVISION
17 ONE OF SECTION THREE HUNDRED OF THIS ARTICLE WHICH ARE ABANDONED PROPER-
18 TY:
19 (I) THE NAME AND LAST KNOWN ADDRESS, IF ANY, OF THE PERSON OR PERSONS
20 APPEARING FROM THE RECORDS OF SUCH BANKING ORGANIZATION TO BE ENTITLED
21 TO RECEIVE SUCH ABANDONED PROPERTY;
22 (II) THE AMOUNT APPEARING FROM SUCH RECORDS TO BE DUE SUCH PERSON OR
23 PERSONS;
24 (III) THE AMOUNT OF ANY INTEREST OR OTHER INCREMENT DUE THEREON;
25 (IV) THE DATE OF THE LAST TRANSACTION WITH RESPECT TO SUCH ABANDONED
26 PROPERTY; AND
27 (V) SUCH OTHER IDENTIFYING INFORMATION AS THE STATE COMPTROLLER MAY
28 REQUIRE.
29 (C) WITH RESPECT TO AMOUNTS SPECIFIED IN PARAGRAPH (C) OF SUBDIVISION
30 ONE OF SECTION THREE HUNDRED OF THIS ARTICLE WHICH ARE ABANDONED PROPER-
31 TY:
32 (I) THE NAME AND LAST KNOWN ADDRESS, IF ANY, OF THE PERSON OR PERSONS
33 APPEARING FROM THE RECORDS OF SUCH BANKING ORGANIZATION TO BE ENTITLED
34 TO RECEIVE SUCH ABANDONED PROPERTY;
35 (II) A DESCRIPTION OF SUCH ABANDONED PROPERTY INCLUDING IDENTIFYING
36 NUMBERS, IF ANY, AND THE AMOUNT APPEARING FROM SUCH RECORDS TO BE DUE OR
37 PAYABLE;
38 (III) THE AMOUNT OF ANY INTEREST OR OTHER INCREMENT DUE THEREON;
39 (IV) THE DATE SUCH ABANDONED PROPERTY WAS PAYABLE OR DEMANDABLE;
40 (V) THE AMOUNT AND IDENTIFYING NUMBER OF ANY SUCH INSTRUMENT WHERE THE
41 PAYEE THEREOF IS UNKNOWN TO THE BANKING ORGANIZATION; AND
42 (VI) SUCH OTHER IDENTIFYING INFORMATION AS THE STATE COMPTROLLER MAY
43 REQUIRE.
44 (D) WITH RESPECT TO AMOUNTS SPECIFIED IN PARAGRAPH (D) OF SUBDIVISION
45 ONE OF SECTION THREE HUNDRED OF THIS ARTICLE WHICH ARE ABANDONED PROPER-
46 TY:
47 (I) THE NAME AND LAST KNOWN ADDRESS, IF ANY, OF THE PERSON OR PERSONS
48 APPEARING FROM THE RECORDS OF SUCH BANKING ORGANIZATION TO BE THE OWNER
49 OF ANY SUCH ABANDONED PROPERTY; AND
50 (II) SUCH OTHER INFORMATION AS THE STATE COMPTROLLER MAY REASONABLY
51 REQUIRE.
52 3. SUCH REPORT SHALL BE IN SUCH FORM AS THE STATE COMPTROLLER MAY
53 PRESCRIBE. ALL NAMES OF PERSONS APPEARING IN THE SECTION OF SUCH REPORT
54 RELATING TO DEPOSITS, APPEARING TO BE THE OWNERS THEREOF, SHALL BE LIST-
55 ED IN ALPHABETICAL ORDER. ABANDONED PROPERTY OTHER THAN DEPOSITS LISTED
56 IN SUCH REPORT SHALL BE CLASSIFIED IN SUCH MANNER AS THE STATE COMP-
A. 4011--B 7
1 TROLLER MAY PRESCRIBE, AND NAMES OF PERSONS APPEARING TO BE ENTITLED TO
2 SUCH ABANDONED PROPERTY APPEARING IN SUCH REPORT SHALL BE LISTED ALPHA-
3 BETICALLY WITHIN EACH SUCH CLASSIFICATION.
4 4. NO BANKING ORGANIZATION IN THIS STATE, ORGANIZED UNDER OR SUBJECT
5 TO THE PROVISIONS OF SECTION SIX HUNDRED ELEVEN OF TITLE TWELVE OF THE
6 UNITED STATES CODE, SHALL BE REQUIRED TO FILE REPORTS OF ABANDONED PROP-
7 ERTY RELATING TO ANY AMOUNTS RECEIVED ON OR BEFORE THE THIRTIETH DAY OF
8 JUNE, NINETEEN HUNDRED SEVENTY-SEVEN, UNLESS, AS OF THE EFFECTIVE DATE
9 OF THIS SUBDIVISION, SUCH AMOUNTS REMAIN RECORDED AND SHOWN IN THE BOOKS
10 AND RECORDS OF SUCH BANKING ORGANIZATION AS AN OUTSTANDING OBLIGATION
11 THEREOF.
12 S 11. Subdivision 1 of section 402 of the abandoned property law is
13 amended to read as follows:
14 1. [Within thirty days after making a report of abandoned property
15 pursuant to the provisions of section four hundred one,] EVERY such
16 corporation shall cause to be published, ON OR BEFORE THE FIRST DAY OF
17 SEPTEMBER IN EACH YEAR, a notice entitled: "NOTICE OF CERTAIN UNCLAIMED
18 PROPERTY HELD BY (name of corporation)."
19 S 12. Section 403 of the abandoned property law is amended to read as
20 follows:
21 S 403. Payment of abandoned property. 1. In such succeeding month of
22 October, and on or before the tenth day thereof, every such corporation
23 shall pay to the state comptroller all [abandoned] property [specified
24 in the last preceding report made to the state comptroller pursuant to
25 section four hundred one, excepting such abandoned property as since the
26 date of such report shall have ceased to be abandoned] WHICH, AS OF THE
27 FIRST DAY OF JULY NEXT PRECEDING, WAS DEEMED ABANDONED PURSUANT TO
28 SECTION FOUR HUNDRED OF THIS ARTICLE, HELD OR OWING BY SUCH CORPORATION.
29 2. Such payment shall be accompanied by a [statement] TRUE AND ACCU-
30 RATE REPORT setting forth such information as the state comptroller may
31 require relating to such abandoned property [as shall have ceased to be
32 abandoned] INCLUDING:
33 (A) AS TO ABANDONED PROPERTY SPECIFIED IN PARAGRAPHS (A) AND (B) OF
34 SUBDIVISION ONE OF SECTION FOUR HUNDRED OF THIS ARTICLE:
35 (I) THE NAME AND LAST KNOWN ADDRESS OF EACH DEPOSITOR OR SUBSCRIBER
36 APPEARING FROM THE RECORDS OF SUCH CORPORATION TO BE ENTITLED TO RECEIVE
37 ANY SUCH ABANDONED PROPERTY;
38 (II) THE DATE WHEN THE DEPOSIT WAS MADE OR AMOUNT PAID;
39 (III) THE AMOUNT OF SUCH DEPOSIT OR PAYMENT;
40 (IV) THE DATE WHEN UTILITY SERVICES FURNISHED TO SUCH CONSUMER OR
41 SUBSCRIBER CEASED;
42 (V) ANY SUMS DUE AND UNPAID TO THE CORPORATION BY SUCH CONSUMER OR
43 SUBSCRIBER, WITH INTEREST THEREON FROM THE DATE OF TERMINATION OF
44 SERVICE;
45 (VI) THE AMOUNT OF INTEREST DUE UPON SUCH DEPOSIT OR PAYMENT ON ANY
46 BALANCE THEREOF THAT HAS REMAINED WITH SUCH CORPORATION AND NOT BEEN
47 CREDITED TO SUCH CONSUMER'S OR SUBSCRIBER'S ACCOUNT;
48 (VII) THE AMOUNT OF SUCH ABANDONED PROPERTY; AND
49 (VIII) SUCH OTHER IDENTIFYING INFORMATION AS THE STATE COMPTROLLER MAY
50 REQUIRE.
51 (B) AS TO ABANDONED PROPERTY SPECIFIED IN PARAGRAPH (C) OF SUBDIVISION
52 ONE OF SECTION FOUR HUNDRED OF THIS ARTICLE:
53 (I) THE NAME AND LAST KNOWN ADDRESS OF EACH PERSON APPEARING FROM THE
54 RECORDS OF SUCH CORPORATION TO BE ENTITLED TO RECEIVE THE SAME;
55 (II) THE AMOUNT APPEARING FROM SUCH RECORDS TO BE DUE EACH SUCH
56 PERSON;
A. 4011--B 8
1 (III) THE DATE PAYMENT BECAME DUE; AND
2 (IV) SUCH OTHER IDENTIFYING INFORMATION AS THE STATE COMPTROLLER MAY
3 REQUIRE.
4 3. SUCH REPORT SHALL BE IN SUCH FORM AND THE ABANDONED PROPERTY LISTED
5 SHALL BE CLASSIFIED IN SUCH MANNER AS THE STATE COMPTROLLER MAY
6 PRESCRIBE. NAMES OF PERSONS ENTITLED TO SUCH ABANDONED PROPERTY APPEAR-
7 ING IN SUCH REPORT SHALL BE LISTED IN ALPHABETICAL ORDER WITHIN EACH
8 SUCH CLASSIFICATION.
9 S 13. Paragraph (b) of subdivision 1 of section 700 of the abandoned
10 property law, as amended by chapter 78 of the laws of 1976, is amended
11 to read as follows:
12 (b) Any moneys held or owing by any life insurance corporation which
13 are payable under other kinds of life insurance policies to any person
14 whose last-known address, according to the records of the corporation,
15 is within this state, where the insured, if living, would[, prior to the
16 thirty-first day of December next preceding the report required by
17 section seven hundred one,] have attained the limiting age under the
18 mortality table on which the reserves are based, exclusive of
19 (i) any policy which has within three years been assigned, readjusted,
20 kept in force by payment of premium, reinstated or subjected to loan, or
21 (ii) any policy with respect to which such corporation has on file
22 written evidence received within three years that the person or persons
23 apparently entitled to claim thereunder have knowledge thereof.
24 S 14. Subdivision 1 of section 702 of the abandoned property law, as
25 amended by chapter 497 of the laws of 1944, is amended to read as
26 follows:
27 1. [Within thirty days after making a report of abandoned property
28 pursuant to the provisions of section seven hundred one,] EVERY such
29 life insurance corporation shall cause to be published, ON OR BEFORE THE
30 FIRST DAY OF MAY IN EACH YEAR, a notice entitled: "NOTICE OF NAMES OF
31 PERSONS APPEARING AS OWNERS OF CERTAIN UNCLAIMED PROPERTY HELD BY (name
32 of life insurance corporation)."
33 S 15. The opening paragraph of subdivision 3 of section 702 of the
34 abandoned property law, as amended by chapter 315 of the laws of 1954,
35 is amended to read as follows:
36 Such notice shall[, in accordance with the classification prescribed
37 by the state comptroller for the report pursuant to the provisions of
38 section seven hundred one,] set forth:
39 S 16. Section 703 of the abandoned property law, subdivision 1 as
40 amended by chapter 497 of the laws of 1944, is amended to read as
41 follows:
42 S 703. Payment of abandoned property. 1. In such succeeding month of
43 September, and on or before the succeeding tenth day thereof, every such
44 life insurance corporation shall pay to the state comptroller all [aban-
45 doned] property [specified in such report, excepting such abandoned
46 property as since the date of such report shall have ceased to be aban-
47 doned] WHICH, AS OF THE FIRST DAY OF JANUARY NEXT PRECEDING, WAS DEEMED
48 ABANDONED PURSUANT TO SECTION SEVEN HUNDRED OF THIS ARTICLE, HELD OR
49 OWING BY SUCH LIFE INSURANCE CORPORATION.
50 2. Such payment shall be accompanied by a [statement] TRUE AND ACCU-
51 RATE REPORT setting forth such information as the state comptroller may
52 require relative to such abandoned property [as shall have ceased to be
53 abandoned] INCLUDING:
54 (A) THE NAME AND LAST KNOWN ADDRESS OF ANY PERSON OR PERSONS APPEARING
55 FROM THE RECORDS OF SUCH LIFE INSURANCE CORPORATION TO BE ENTITLED TO
56 RECEIVE ANY SUCH ABANDONED PROPERTY;
A. 4011--B 9
1 (B) THE AMOUNT APPEARING FROM THE RECORDS OF SUCH CORPORATION TO BE
2 DUE;
3 (C) THE POLICY NUMBER AND POLICY AGE OF THE INSURED;
4 (D) THE DATE SUCH ABANDONED PROPERTY WAS PAYABLE;
5 (E) THE NAMES AND LAST KNOWN ADDRESSES OF EACH BENEFICIARY APPEARING
6 IN THE RECORDS OF THE INSURER; AND
7 (F) SUCH OTHER IDENTIFYING INFORMATION AS THE STATE COMPTROLLER MAY
8 REQUIRE.
9 3. SUCH REPORT SHALL BE IN SUCH FORM AND THE ABANDONED PROPERTY LISTED
10 SHALL BE CLASSIFIED IN SUCH MANNER AS THE STATE COMPTROLLER MAY
11 PRESCRIBE. NAMES OF PERSONS APPEARING TO BE ENTITLED TO SUCH PROPERTY OR
12 OF BENEFICIARIES APPEARING IN SUCH REPORT SHALL BE LISTED IN ALPHABET-
13 ICAL ORDER WITHIN EACH SUCH CLASSIFICATION.
14 S 17. Section 1003 of the abandoned property law is amended to read as
15 follows:
16 S 1003. Payment of abandoned property. 1. In such succeeding month of
17 February, and on or before the tenth day thereof, every such public and
18 other corporation shall pay to the state comptroller all [abandoned]
19 property [specified in such report, excepting such abandoned property as
20 since the date of such report shall have ceased to be abandoned] WHICH,
21 AS OF THE FIRST DAY OF JULY NEXT PRECEDING, WAS DEEMED ABANDONED PURSU-
22 ANT TO SECTION ONE THOUSAND OF THIS ARTICLE, HELD OR OWING BY SUCH
23 CORPORATION.
24 2. Such payment shall be accompanied by a [statement] TRUE AND ACCU-
25 RATE REPORT setting forth such information as the state comptroller may
26 require in relation to such abandoned property [as shall have ceased to
27 be abandoned] INCLUDING THE TITLE OF THE PROCEEDING, THE NAME AND LAST
28 KNOWN ADDRESS OF THE AWARDEE IF SUCH AWARD IS MADE TO A KNOWN OWNER, THE
29 DATE OF CONFIRMATION, THE DAMAGE PARCEL NUMBER, THE AMOUNT OF THE AWARD,
30 AND THE AMOUNT OF ANY INTEREST DUE THEREON AND, IF A DEDUCTION IS
31 CLAIMED FOR LIENS BY A PUBLIC CORPORATION, THE NATURE AND AMOUNT OF SUCH
32 LIENS AND ANY INTEREST CLAIMED THEREON.
33 S 18. The opening paragraph of subdivision 1 of section 1002 of the
34 abandoned property law is amended to read as follows:
35 [Within thirty days after making a report of abandoned property pursu-
36 ant to the provisions of section ten hundred one,] EVERY such corpo-
37 ration shall cause to be published, ON OR BEFORE THE FIRST DAY OF NOVEM-
38 BER IN EACH YEAR, once in a newspaper of general circulation in each
39 county where a damaged parcel included in such report is located a
40 notice, approved as to form by the state comptroller, stating:
41 S 19. Paragraph (b) of subdivision 6 of section 1406 of the abandoned
42 property law, as amended by chapter 643 of the laws of 1989, is amended
43 to read as follows:
44 (b) Notwithstanding any other provision of law, payment for any aban-
45 doned condemnation award heretofore or hereafter paid to the state comp-
46 troller pursuant to sections ten hundred and ten hundred three of this
47 chapter for the benefit of known persons may be made by the state comp-
48 troller on sworn application, where the name and last known address of
49 the person or persons entitled to payment and any other identifying
50 information as appearing on the records of the court into which payment
51 was made is included in the report required to be filed pursuant to
52 section ten hundred [one] THREE of this chapter and when the identity of
53 the claimant as the person entitled to payment is established to the
54 satisfaction of the state comptroller. When, in the determination of the
55 state comptroller, the identifying information included in the report is
56 insufficient to enable the state comptroller to make a determination of
A. 4011--B 10
1 entitlement, such claim must be established only on order of the court
2 as set forth in paragraph (a) of this subdivision.
3 S 20. Subdivision 3 of section 1311 of the abandoned property law is
4 REPEALED.
5 S 21. Subdivision 4 of section 1311 of the abandoned property law, as
6 added by chapter 778 of the laws of 1956, is renumbered subdivision 3
7 and amended to read as follows:
8 3. On or before the tenth day of October in each year, every such
9 corporation shall pay to the state comptroller all [abandoned] property
10 [specified in the last preceding report made to the state comptroller
11 pursuant to this section, excepting such abandoned property as since the
12 date of the report shall have ceased to be abandoned] WHICH, AS OF THE
13 FIRST DAY OF JULY NEXT PRECEDING, WAS DEEMED ABANDONED PURSUANT TO THIS
14 SECTION, HELD OR OWING BY SUCH CORPORATION. SUCH PAYMENT SHALL BE ACCOM-
15 PANIED BY A TRUE AND ACCURATE REPORT CONTAINING SUCH IDENTIFYING INFOR-
16 MATION AS THE STATE COMPTROLLER MAY REQUIRE.
17 S 22. Subdivision 2 of section 1316 of the abandoned property law is
18 REPEALED.
19 S 23. Subdivisions 3 and 4 of section 1316 of the abandoned property
20 law, as amended by chapter 166 of the laws of 1991, are renumbered
21 subdivisions 2 and 3 and amended to read as follows:
22 2. [Within thirty days following the filing of the report of abandoned
23 property with the comptroller pursuant to subdivision two of this
24 section, the] EVERY insurer shall cause to be published, ON OR BEFORE
25 THE FIRST DAY OF MAY IN EACH YEAR, a list of such abandoned property in
26 the same manner as that prescribed for life insurance companies by
27 section seven hundred two of this chapter.
28 3. Such [abandoned] property WHICH WAS DEEMED ABANDONED PURSUANT TO
29 SUBDIVISION ONE OF THIS SECTION shall be paid or delivered to the comp-
30 troller within the first ten days of September of each year. SUCH
31 PAYMENT SHALL BE ACCOMPANIED BY A TRUE AND ACCURATE REPORT THAT SHALL BE
32 IN SUCH FORM AND MANNER AS THE STATE COMPTROLLER MAY PRESCRIBE.
33 S 24. Section 1408 of the abandoned property law is REPEALED.
34 S 25. The opening paragraph of section 503 of the abandoned property
35 law, as amended by chapter 815 of the laws of 1963, is amended to read
36 as follows:
37 Each payment or delivery of abandoned property pursuant to section
38 five hundred two shall be accompanied by a [verified] written report, in
39 such form as the state comptroller shall prescribe, setting forth:
40 S 26. The opening paragraph of section 513 of the abandoned property
41 law, as amended by chapter 815 of the laws of 1963, is amended to read
42 as follows:
43 A payment or delivery pursuant to section five hundred twelve shall be
44 accompanied by a [verified] written report, in such form as the state
45 comptroller may prescribe, setting forth:
46 S 27. Subdivision 4 of section 513 of the abandoned property law is
47 REPEALED.
48 S 28. Subdivision 5 of section 513 of the abandoned property law, as
49 added by chapter 617 of the laws of 1973, is renumbered subdivision 4
50 and amended to read as follows:
51 4. In case any broker or dealer determines the property which shall be
52 deemed abandoned property pursuant to subdivisions one and three of
53 section five hundred eleven by the method provided in subdivision six of
54 that section, the payment of such abandoned property shall be accompa-
55 nied by a [verified] written report, in such form as the state comp-
56 troller may prescribe, which, among other things, shall set forth the
A. 4011--B 11
1 computation of the average factor of such broker or dealer pursuant to
2 subdivision six of section five hundred eleven. Each [verified] written
3 report accompanying the payment of abandoned property determined pursu-
4 ant to subdivision six of section five hundred eleven shall contain an
5 undertaking by the broker or dealer making such payment to honor all
6 claims to the extent herein provided whenever made against such broker
7 or dealer by any person determined by him or proved to be entitled to
8 receive from him a stock or cash dividend received in this state during
9 the calendar year covered by such report as the holder of record of a
10 security or an interest payment on a security received in this state
11 during such year. Such undertaking shall obligate the broker or dealer
12 to honor any such claim provided that the payment of abandoned property
13 relating to the year in question determined pursuant to subdivision six
14 of section five hundred eleven made by such broker or dealer to the
15 state comptroller has been exhausted as a result of reimbursements by
16 the state comptroller to the broker or dealer or to other persons claim-
17 ing such abandoned property as provided in subdivision two of section
18 five hundred fourteen. To the extent related to any stock dividend, any
19 such claim shall not exceed the fair market value of such stock dividend
20 on the thirty-first day of December of the year in which such stock
21 dividend was deemed abandoned property.
22 S 29. The opening paragraph of section 603 of the abandoned property
23 law is amended to read as follows:
24 Each such payment of abandoned property pursuant to section six
25 hundred two shall be accompanied by a [verified] written report, classi-
26 fied as the state comptroller shall prescribe, setting forth:
27 S 30. Subdivision 2 of section 1304 of the abandoned property law, as
28 added by chapter 698 of the laws of 1943, is amended to read as follows:
29 2. Any such abandoned property shall be paid or delivered forthwith to
30 the state comptroller. Such payment shall be accompanied by a [verified]
31 written report setting forth such identifying information as the state
32 comptroller may require.
33 S 31. Section 1305 of the abandoned property law, as amended by chap-
34 ter 149 of the laws of 1977, is amended to read as follows:
35 S 1305. Unclaimed surplus moneys after recovery of cost of public
36 assistance and care.
37 Any amount comprising a balance credited to an estate or person pursu-
38 ant to sections one hundred fifty-two-b or three hundred sixty of the
39 social services law which, on June thirtieth in any year, has for four
40 years from the date of such credit remained unclaimed by the estate or
41 person entitled thereto shall be deemed abandoned property.
42 On or before the tenth day of September in each year every public
43 welfare official shall pay such abandoned property to the state comp-
44 troller. Such payment shall be accompanied by a [verified] written
45 report in such form as the state comptroller may prescribe.
46 S 32. Subdivision 3 of section 1307 of the abandoned property law, as
47 added by chapter 700 of the laws of 1943, is amended to read as follows:
48 3. Any sheriff or county treasurer holding any such abandoned proper-
49 ty, shall pay the same to the state comptroller immediately after such
50 property shall have been deemed abandoned. Each such payment shall be
51 accompanied by a [verified] written report which shall set forth such
52 information as the state comptroller may require.
53 S 33. Subdivision 5 of section 1313 of the abandoned property law is
54 REPEALED.
55 S 34. Subdivision 2 of section 1314 of the abandoned property law, as
56 added by chapter 228 of the laws of 1977, is amended to read as follows:
A. 4011--B 12
1 2. Such transfer of moneys shall be accompanied by a [verified] writ-
2 ten report, in such form as the state comptroller may prescribe.
3 S 35. Section 1402 of the abandoned property law is REPEALED and a new
4 section 1402 is added to read as follows:
5 S 1402. PUBLICATION OF ABANDONED PROPERTY BY STATE COMPTROLLER. 1. (A)
6 THE COMPTROLLER SHALL MAINTAIN ON HIS OR HER WEBSITE IN A READILY
7 SEARCHABLE FORMAT OR IN ANY OTHER MEDIUM AT LEAST EQUALLY ACCESSIBLE TO
8 THE PUBLIC, A LIST OF SUCH ABANDONED PROPERTY HELD BY THE COMPTROLLER OR
9 HAS BEEN PAID OR DELIVERED TO THE COMPTROLLER IN THE PREVIOUS TWELVE
10 MONTHS THAT HAS A VALUE EXCEEDING TWENTY DOLLARS.
11 (B) THE PROVISIONS OF THIS SUBDIVISION SHALL NOT APPLY TO ABANDONED
12 PROPERTY PAID PURSUANT TO SECTION ONE THOUSAND THREE HUNDRED OF THIS
13 CHAPTER OR SECTION FOUR HUNDRED TWENTY-FOUR OF THE VEHICLE AND TRAFFIC
14 LAW.
15 2. SUCH LIST SHALL BE IN SUCH FORM AND CLASSIFIED IN SUCH MANNER AS
16 THE STATE COMPTROLLER SHALL DETERMINE AND SHALL INCLUDE:
17 (A) THE NAMES AND LAST KNOWN ADDRESSES OF ALL PERSONS APPEARING FROM
18 THE RECORDS IN THE COMPTROLLER'S OFFICE, AS SET FORTH IN THE REPORT
19 FILED BY THE HOLDER, TO BE ENTITLED TO RECEIVE SUCH ABANDONED PROPERTY
20 EXCEEDING TWENTY DOLLARS IN VALUE; AND
21 (B) SUCH OTHER INFORMATION AS THE STATE COMPTROLLER MAY DETERMINE.
22 3. SUCH LISTING SHALL INCLUDE A STATEMENT THAT: (A) INFORMATION ABOUT
23 THE PROPERTY AND ITS RETURN TO THE OWNER MAY BE AVAILABLE TO A PERSON
24 HAVING A LEGAL OR BENEFICIAL INTEREST IN THE PROPERTY, UPON REQUEST TO
25 THE COMPTROLLER; AND
26 (B) A PUBLIC RECORD IS MAINTAINED IN THE OFFICE OF THE STATE COMP-
27 TROLLER OF ALL ABANDONED PROPERTY IN ACCORDANCE WITH SECTION FOURTEEN
28 HUNDRED ONE OF THIS ARTICLE; AND THAT A CLAIM FOR ANY SUCH ABANDONED
29 PROPERTY SHOULD BE FILED WITH THE STATE COMPTROLLER AT HIS OR HER OFFICE
30 IN THE CITY OF ALBANY.
31 4. NOTWITHSTANDING THE FOREGOING PROVISIONS OF THIS SECTION, THE STATE
32 COMPTROLLER MAY OMIT FROM SUCH LIST THE NAME AND LAST KNOWN ADDRESS OF
33 ANY PERSON WHERE SPECIAL CIRCUMSTANCES MAKE IT DESIRABLE THAT SUCH
34 INFORMATION BE WITHHELD.
35 S 36. Subdivision 12 of section 211 of the tax law is REPEALED and a
36 new subdivision 12 is added to read as follows:
37 12. (A) NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION EIGHT OF THIS
38 SECTION, THE COMMISSIONER AND THE COMPTROLLER SHALL ENTER INTO AN AGREE-
39 MENT PURSUANT TO WHICH THE COMMISSIONER SHALL, UPON REQUEST, PROVIDE THE
40 COMPTROLLER WITH A REPORT, NOT MORE FREQUENTLY THAN ANNUALLY, WITH
41 RESPECT TO CORPORATIONS OR OTHER ENTITIES WHICH HAVE FILED A BUSINESS
42 CORPORATION FRANCHISE TAX REPORT UNDER THIS ARTICLE FOR ANY TAXABLE YEAR
43 WITHIN TEN CALENDAR YEARS PRIOR TO THE REPORT TO THE COMPTROLLER MADE
44 PURSUANT TO THIS SUBDIVISION, PROVIDING THE FOLLOWING INFORMATION, TO
45 THE EXTENT THAT SUCH INFORMATION IS READILY AVAILABLE FROM THE DEPART-
46 MENT'S SYSTEM FOR IDENTIFYING TAXPAYER INDICATIVE DATA:
47 (1) BUSINESS NAME AND LEGAL NAME, IF DIFFERENT;
48 (2) BUSINESS ADDRESS AND MAILING ADDRESS;
49 (3) FEDERAL EMPLOYER IDENTIFICATION NUMBER;
50 (4) DATE ENTERED INTO BUSINESS.
51 (B) EACH REPORT TO THE COMPTROLLER MADE PURSUANT TO THIS SUBDIVISION
52 SHALL LIST EACH CORPORATION OR OTHER ENTITY WITH RESPECT TO WHICH SUCH
53 REPORT IS MADE ACCORDING TO THE TOTAL ASSETS REPORTED FOR THE END OF THE
54 YEAR ON ITS MOST RECENT AVAILABLE BUSINESS CORPORATION FRANCHISE TAX
55 REPORT, IN DESCENDING ORDER. SUCH REPORTS TO THE COMPTROLLER SHALL NOT
A. 4011--B 13
1 DISCLOSE THE ACTUAL AMOUNT OF TOTAL ASSETS REPORTED ON SUCH BUSINESS
2 CORPORATION FRANCHISE TAX REPORTS.
3 (C) THE INFORMATION PROVIDED TO THE COMPTROLLER PURSUANT TO THIS
4 SUBDIVISION SHALL BE USED ONLY FOR ADMINISTRATION AND ENFORCEMENT OF THE
5 ABANDONED PROPERTY LAW. THE COMPTROLLER MAY REDISCLOSE THE INFORMATION
6 PROVIDED UNDER THIS SUBDIVISION ONLY TO THE EXTENT NECESSARY FOR
7 ENFORCEMENT OR ADMINISTRATION OF THE ABANDONED PROPERTY LAW.
8 (D) THE REPORTS TO THE COMPTROLLER REQUIRED UNDER THIS SUBDIVISION
9 SHALL BE SUBMITTED BY ELECTRONIC MEANS OR IN SOME OTHER FORMAT WHICH IS
10 MUTUALLY ACCEPTABLE TO THE COMPTROLLER AND THE COMMISSIONER. THE WRITTEN
11 AGREEMENT WITH THE COMPTROLLER SHALL SET FORTH THE PROCEDURES FOR
12 PROVIDING THE INFORMATION THE COMMISSIONER IS ALLOWED TO DISCLOSE PURSU-
13 ANT TO THIS SUBDIVISION.
14 (E) NOTWITHSTANDING ARTICLE SIX OF THE PUBLIC OFFICERS LAW OR ANY
15 OTHER PROVISION OF LAW, THE REPORTS TO BE FURNISHED TO THE COMPTROLLER
16 PURSUANT TO THIS SUBDIVISION SHALL NOT BE OPEN TO THE PUBLIC FOR
17 INSPECTION.
18 S 37. Subdivision 2 of section 95 of the state finance law, as amended
19 by section 10-a of part RR of chapter 57 of the laws of 2008, is amended
20 to read as follows:
21 2. Annually, the comptroller shall file with the director of the budg-
22 et an itemized estimate of the expenses for the administration of the
23 abandoned property fund for the ensuing year. The director of the budget
24 may revise and amend such estimate. After such revision and amendment,
25 if any, such director shall approve the same for inclusion in the execu-
26 tive budget. No moneys shall be paid out of the abandoned property fund
27 for [such] expenses unless expenditures therefor shall have been author-
28 ized by law; provided, however, that the expenses [of any audits
29 conducted by the state comptroller to assure compliance by holders of
30 unclaimed property with the provisions of the abandoned property law]
31 FOR THE ADMINISTRATION OF THE PROVISIONS OF THE ABANDONED PROPERTY LAW
32 paid by the state comptroller pursuant to an appropriation, shall be
33 reimbursed by a transfer of funds no more frequently than monthly, from
34 any balance remaining in the abandoned property fund prior to any
35 payment made pursuant to the provisions of subdivision three of this
36 section.
37 S 38. This act shall take effect immediately.
38 PART B
39 Section 1. Section 12 of part N of chapter 61 of the laws of 2005,
40 amending the tax law relating to certain transactions and related infor-
41 mation and relating to the voluntary compliance initiative, subdivision
42 (iii) as amended by section 16 of subpart J of part V-1 of chapter 57 of
43 the laws of 2009, is amended to read as follows:
44 S 12. This act shall take effect immediately; provided, however, that
45 (i) section one of this act shall apply to all disclosure statements
46 described in paragraph 1 of subdivision (a) of section 25 of the tax
47 law, as added by section one of this act, that were required to be filed
48 with the internal revenue service at any time with respect to "listed
49 transactions" as described in such paragraph 1, and shall apply to all
50 disclosure statements described in paragraph 1 of subdivision (a) of
51 section 25 of the tax law, as added by section one of this act, that
52 were required to be filed with the internal revenue service with respect
53 to "reportable transactions" as described in such paragraph 1, other
54 than "listed transactions", in which a taxpayer participated during any
A. 4011--B 14
1 taxable year for which the statute of limitations for assessment has not
2 expired as of the date this act shall take effect, and shall apply to
3 returns or statements described in such paragraph 1 required to be filed
4 by taxpayers (or persons as described in such paragraph) with the
5 commissioner of taxation and finance on or after the sixtieth day after
6 this act shall have become a law; AND
7 (ii) sections two through four and seven through nine of this act
8 shall apply to any tax liability for which the statute of limitations on
9 assessment has not expired as of the date this act shall take effect[;
10 and
11 (iii) provided, further, that the provisions of this act, except
12 section five of this act, shall expire and be deemed repealed July 1,
13 2011. The commissioner of taxation and finance shall cause to be
14 prepared a written report on the tax shelter law. Notwithstanding any
15 other provision of law to the contrary, such report shall include, but
16 not be limited to, statistical information regarding the listed and
17 reportable transactions and avoidance transactions under this act. A
18 copy of such report shall be delivered to the governor, the temporary
19 president of the senate, and the speaker of the assembly no later than
20 April 1, 2007; provided, that, such expiration and repeal shall not
21 affect any requirement imposed pursuant to this act].
22 S 2. This act shall take effect immediately.
23 PART C
24 Section 1. Paragraphs (g) and (h) of subdivision 12-B of section 210
25 of the tax law, as added by section 8 of part R of chapter 57 of the
26 laws of 2010, are amended to read as follows:
27 (g) Notwithstanding the expiration of the empire zones program under
28 article eighteen-B of the general municipal law, a taxpayer that is
29 certified as a qualified investment project pursuant to such article
30 eighteen-B on the day immediately preceding the day the empire zones
31 program expired, AND HAS NOT SUBSEQUENTLY BEEN DECERTIFIED BY THE
32 COMMISSIONER OF ECONOMIC DEVELOPMENT PURSUANT TO SECTION NINE HUNDRED
33 FIFTY-NINE OF THE GENERAL MUNICIPAL LAW AND REGULATIONS PROMULGATED
34 THEREUNDER, shall continue to be deemed certified under such article
35 eighteen-B for purposes of this subdivision for the remainder of the
36 taxable year in which the expiration occurred and for the next succeed-
37 ing nine taxable years. In addition, the areas designated as empire
38 zones in which the taxpayer is certified as a qualified investment
39 project on the day immediately preceding the day the empire zones
40 program expired shall continue to be deemed empire zones for purposes of
41 this subdivision for the remainder of the taxable year in which the
42 expiration occurred and for the next succeeding nine taxable years.
43 (h) Notwithstanding the expiration of the empire zones program under
44 article eighteen-B of the general municipal law and except as provided
45 in paragraph (g) of this subdivision, a taxpayer that is certified as an
46 empire zone business pursuant to such article eighteen-B on the day
47 immediately preceding the day the empire zones program expired, AND HAS
48 NOT SUBSEQUENTLY BEEN DECERTIFIED BY THE COMMISSIONER OF ECONOMIC DEVEL-
49 OPMENT PURSUANT TO SECTION NINE HUNDRED FIFTY-NINE OF THE GENERAL MUNIC-
50 IPAL LAW AND REGULATIONS PROMULGATED THEREUNDER, shall continue to be
51 deemed certified under such article eighteen-B for purposes of this
52 subdivision until April first, two thousand fourteen. In addition, the
53 areas designated as empire zones in which the taxpayer is certified as
54 an empire zone business on the day immediately preceding the day the
A. 4011--B 15
1 empire zones program expired shall continue to be deemed empire zones
2 for purposes of this subdivision until April first, two thousand four-
3 teen.
4 S 2. Paragraph 7 of subsection (j) of section 606 of the tax law, as
5 added by section 9 of part R of chapter 57 of the laws of 2010, is
6 amended to read as follows:
7 (7) Notwithstanding the expiration of the empire zones program under
8 article eighteen-B of the general municipal law, a taxpayer that is
9 certified as an empire zone business pursuant to such article eighteen-B
10 on the day immediately preceding the day the empire zones program
11 expired, AND HAS NOT SUBSEQUENTLY BEEN DECERTIFIED BY THE COMMISSIONER
12 OF ECONOMIC DEVELOPMENT PURSUANT TO SECTION NINE HUNDRED FIFTY-NINE OF
13 THE GENERAL MUNICIPAL LAW AND REGULATIONS PROMULGATED THEREUNDER, shall
14 continue to be deemed certified under such article eighteen-B for
15 purposes of this subdivision until April first, two thousand fourteen.
16 In addition, the areas designated as empire zones in which the taxpayer
17 is certified as an empire zone business on the day immediately preceding
18 the day the empire zones program expired shall continue to be deemed
19 empire zones for purposes of this subdivision until April first, two
20 thousand fourteen.
21 S 3. Paragraphs (d) and (e) of subdivision 12-C of section 210 of the
22 tax law, as added by section 10 of part R of chapter 57 of the laws of
23 2010, are amended to read as follows:
24 (d) Notwithstanding the expiration of the empire zones program under
25 article eighteen-B of the general municipal law, a taxpayer that is
26 certified as a qualified investment project pursuant to such article
27 eighteen-B on the day immediately preceding the day the empire zones
28 program expired, AND HAS NOT SUBSEQUENTLY BEEN DECERTIFIED BY THE
29 COMMISSIONER OF ECONOMIC DEVELOPMENT PURSUANT TO SECTION NINE HUNDRED
30 FIFTY-NINE OF THE GENERAL MUNICIPAL LAW AND REGULATIONS PROMULGATED
31 THEREUNDER, shall continue to be deemed certified under such article
32 eighteen-B for purposes of this subdivision for the remainder of the
33 taxable year in which the expiration occurred and for the next succeed-
34 ing nine taxable years. In addition, the areas designated as empire
35 zones in which the taxpayer is certified as a qualified investment
36 project on the day immediately preceding the day the empire zones
37 program expired shall continue to be deemed empire zones for purposes of
38 this subdivision for the remainder of the taxable year in which the
39 expiration occurred and for the next succeeding nine taxable years.
40 (e) Notwithstanding the expiration of the empire zones program under
41 article eighteen-B of the general municipal law and except as provided
42 in paragraph (d) of this subdivision, a taxpayer that is certified as an
43 empire zone business pursuant to such article eighteen-B on the day
44 immediately preceding the day the empire zones program expired, AND HAS
45 NOT SUBSEQUENTLY BEEN DECERTIFIED BY THE COMMISSIONER OF ECONOMIC DEVEL-
46 OPMENT PURSUANT TO SECTION NINE HUNDRED FIFTY-NINE OF THE GENERAL MUNIC-
47 IPAL LAW AND REGULATIONS PROMULGATED THEREUNDER, shall continue to be
48 deemed in the empire zone in which the taxpayer was certified as an
49 empire zone business on the day immediately preceding the day the empire
50 zones program expired for each of the three years next succeeding the
51 taxable year for which the credit under subdivision twelve-B OF THIS
52 SECTION is allowed.
53 S 4. Paragraph 4 of subsection (j-1) of section 606 of the tax law, as
54 added by section 11 of part R of chapter 57 of the laws of 2010, is
55 amended to read as follows:
A. 4011--B 16
1 (4) Notwithstanding the expiration of the empire zones program under
2 article eighteen-B of the general municipal law, a taxpayer that is
3 certified as an empire zone business pursuant to such article eighteen-B
4 on the day immediately preceding the day the empire zones program
5 expired, AND HAS NOT SUBSEQUENTLY BEEN DECERTIFIED BY THE COMMISSIONER
6 OF ECONOMIC DEVELOPMENT PURSUANT TO SECTION NINE HUNDRED FIFTY-NINE OF
7 THE GENERAL MUNICIPAL LAW AND REGULATIONS PROMULGATED THEREUNDER, shall
8 continue to be deemed in the empire zone in which the taxpayer was
9 certified as an empire zone business on the day immediately preceding
10 the day the empire zones program expired for each of the three years
11 next succeeding the taxable year for which the credit under [subdivi-
12 sion] SUBSECTION (j) OF THIS SECTION is allowed.
13 S 5. Subdivision (k) of section 14 of the tax law, as amended by
14 section 5 of part A of chapter 63 of the laws of 2005, is amended to
15 read as follows:
16 (k) If the designation of an area as an empire zone is no longer in
17 effect because section nine hundred sixty-nine of the general municipal
18 law was not amended to extend the effective date of such designation so
19 that the designations of all empire zones pursuant to article eighteen-B
20 of the general municipal law have expired, a business enterprise that
21 was certified pursuant to article eighteen-B of the general municipal
22 law on the day immediately preceding the day on which such designation
23 expired, AND HAS NOT SUBSEQUENTLY BEEN DECERTIFIED BY THE COMMISSIONER
24 OF ECONOMIC DEVELOPMENT PURSUANT TO SECTION NINE HUNDRED FIFTY-NINE OF
25 THE GENERAL MUNICIPAL LAW AND REGULATIONS PROMULGATED THEREUNDER, shall
26 be deemed to continue to be certified under such article eighteen-B for
27 purposes of this section, and sections fifteen, sixteen, section one
28 hundred eighty-seven-j, subdivisions twenty-seven and twenty-eight of
29 section two hundred ten, subsections (bb) and (cc) of section six
30 hundred six, [subdivision (z) of section eleven hundred fifteen,] SUBDI-
31 VISION (D) OF SECTION ELEVEN HUNDRED NINETEEN, subsections (o) and (p)
32 of section fourteen hundred fifty-six, and subdivisions (r) and (s) of
33 section fifteen hundred eleven of this chapter. In addition, if the
34 designation of an area as an empire zone is no longer in effect because
35 section nine hundred sixty-nine of the general municipal law was not
36 amended to extend the effective date of such designation so that the
37 designations of all empire zones pursuant to article eighteen-B of the
38 general municipal law have expired, all references to empire zones in
39 the provisions of this chapter listed in the previous sentence shall be
40 read as meaning areas designated as empire zones on the day immediately
41 preceding the day on which such designation expired.
42 S 6. Paragraph (f) of subdivision 20 of section 210 of the tax law, as
43 added by section 14 of part R of chapter 57 of the laws of 2010, is
44 amended to read as follows:
45 (f) If the designation of an area as an empire zone is no longer in
46 effect because the designations of all empire zones pursuant to article
47 eighteen-B of the general municipal law have expired, a taxpayer that
48 has made a contribution of money on or before the day immediately
49 preceding the day the empire zones expired to a community development
50 project approved by the commissioner of economic development shall be
51 deemed eligible to claim the empire zone capital credit under subpara-
52 graph three of paragraph (a) of this subdivision for additional contrib-
53 utions made prior to April first, two thousand fourteen and certified by
54 the commissioner of economic development to that community development
55 project as payment of a commitment made by the taxpayer to that communi-
56 ty development project before the empire zones expired, PROVIDED THAT
A. 4011--B 17
1 THE TAXPAYER HAS NOT SUBSEQUENTLY BEEN DECERTIFIED BY THE COMMISSIONER
2 OF ECONOMIC DEVELOPMENT PURSUANT TO SECTION NINE HUNDRED FIFTY-NINE OF
3 THE GENERAL MUNICIPAL LAW AND REGULATIONS PROMULGATED THEREUNDER.
4 S 7. Paragraph 5 of subsection (l) of section 606 of the tax law, as
5 added by section 15 of part R of chapter 57 of the laws of 2010, is
6 amended to read as follows:
7 (5) If the designation of an area as an empire zone is no longer in
8 effect because the designations of all empire zones pursuant to article
9 eighteen-B of the general municipal law have expired, a taxpayer that
10 has made a contribution of money on or before the day immediately
11 preceding the day the empire zones expired to a community development
12 project approved by the commissioner of economic development shall be
13 deemed eligible to claim the empire zone capital credit under subpara-
14 graph (C) of paragraph one of this subsection for additional contrib-
15 utions made prior to April first, two thousand fourteen and certified by
16 the commissioner of economic development to that community development
17 project as payment of a commitment made by the taxpayer to that communi-
18 ty development project before the empire zones expired, PROVIDED THAT
19 THE TAXPAYER 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.
22 S 8. Paragraph 5 of subsection (d) of section 1456 of the tax law, as
23 added by section 16 of part R of chapter 57 of the laws of 2010, is
24 amended to read as follows:
25 (5) If the designation of an area as an empire zone is no longer in
26 effect because the designations of all empire zones pursuant to article
27 eighteen-B of the general municipal law have expired, a taxpayer that
28 has made a contribution of money on or before the day immediately
29 preceding the day the empire zones expired to a community development
30 project approved by the commissioner of economic development shall be
31 deemed eligible to claim the empire zone capital credit under subpara-
32 graph (C) of paragraph one of this subsection for additional contrib-
33 utions made prior to April first, two thousand fourteen and certified by
34 the commissioner of economic development to that community development
35 project as payment of a commitment made by the taxpayer to that communi-
36 ty development project before the empire zones expired, PROVIDED THAT
37 THE TAXPAYER HAS NOT SUBSEQUENTLY BEEN DECERTIFIED BY THE COMMISSIONER
38 OF ECONOMIC DEVELOPMENT PURSUANT TO SECTION NINE HUNDRED FIFTY-NINE OF
39 THE GENERAL MUNICIPAL LAW AND REGULATIONS PROMULGATED THEREUNDER.
40 S 9. Paragraph 5 of subdivision (h) of section 1511 of the tax law, as
41 added by section 17 of part R of chapter 57 of the laws of 2010, is
42 amended to read as follows:
43 (5) If the designation of an area as an empire zone is no longer in
44 effect because the designations of all empire zones pursuant to article
45 eighteen-B of the general municipal law have expired, a taxpayer that
46 has made a contribution of money on or before the day immediately
47 preceding the day the empire zones expired to a community development
48 project approved by the commissioner of economic development shall be
49 deemed eligible to claim the empire zone capital credit under subpara-
50 graph (C) of paragraph one of this subdivision for additional contrib-
51 utions made prior to April first, two thousand fourteen and certified by
52 the commissioner of economic development to that community development
53 project as payment of a commitment made by the taxpayer to that communi-
54 ty development project before the empire zones expired, PROVIDED THAT
55 THE TAXPAYER HAS NOT SUBSEQUENTLY BEEN DECERTIFIED BY THE COMMISSIONER
A. 4011--B 18
1 OF ECONOMIC DEVELOPMENT PURSUANT TO SECTION NINE HUNDRED FIFTY-NINE OF
2 THE GENERAL MUNICIPAL LAW AND REGULATIONS PROMULGATED THEREUNDER.
3 S 10. This act shall take effect immediately and shall be deemed to be
4 in full force and effect on and after August 11, 2010.
5 PART D
6 Section 1. The tax law is amended by adding a new section 1613-c to
7 read as follows:
8 S 1613-C. CREDITING OF LOTTERY PRIZES AGAINST LIABILITIES FOR TAXES
9 ADMINISTERED BY THE COMMISSIONER. (1) THE DIRECTOR, ON BEHALF OF THE
10 DIVISION, SHALL ENTER INTO A WRITTEN AGREEMENT WITH THE COMMISSIONER, ON
11 BEHALF OF THE DEPARTMENT, WITHIN SIXTY DAYS OF THE EFFECTIVE DATE OF
12 THIS SECTION, WHICH WILL SET FORTH PROCEDURES FOR CREDITING LOTTERY
13 PRIZES OF MORE THAN SIX HUNDRED DOLLARS AWARDED TO HOLDERS OF WINNING
14 LOTTERY TICKETS, WHETHER INDIVIDUALS, CORPORATIONS, ASSOCIATIONS, COMPA-
15 NIES, PARTNERSHIPS, LIMITED LIABILITY PARTNERSHIPS OR COMPANIES, PART-
16 NERS, MEMBERS, MANAGERS, ESTATES, TRUST FIDUCIARIES OR ENTITIES, AGAINST
17 PAST DUE TAX LIABILITIES OWED BY SUCH HOLDERS FOR ANY TAX ADMINISTERED
18 BY THE COMMISSIONER, ABOUT WHICH THE DIRECTOR HAS BEEN NOTIFIED BY THE
19 COMMISSIONER PURSUANT TO THE PROVISIONS OF SUCH AGREEMENT.
20 (2) SUCH AGREEMENT SHALL APPLY TO ANY PAST DUE TAX LIABILITY WHICH
21 ARISES FROM (I) AN ENFORCEABLE WARRANT OR JUDGMENT, (II) AN ENFORCEABLE
22 DETERMINATION OF AN ADMINISTRATIVE BODY WHICH IS NO LONGER SUBJECT TO
23 ADMINISTRATIVE OR JUDICIAL REVIEW, OR (III) AN ASSESSMENT OR DETERMI-
24 NATION (INCLUDING SELF-ASSESSMENT OR SELF-ASSESSED DETERMINATION) WHICH
25 HAS BECOME FINAL OR FINALLY AND IRREVOCABLY FIXED AND NO LONGER SUBJECT
26 TO ADMINISTRATIVE OR JUDICIAL REVIEW.
27 (3) SUCH AGREEMENT SHALL INCLUDE:
28 (A) THE PROCEDURE UNDER WHICH THE DEPARTMENT WILL NOTIFY THE DIVISION
29 OF TAX LIABILITIES, INCLUDING WHEN THE DIVISION WILL BE NOTIFIED AND THE
30 CONTENT OF THAT NOTIFICATION;
31 (B) THE PROCEDURE FOR REIMBURSEMENT OF THE DIVISION BY THE DEPARTMENT
32 FOR THE COST OF CARRYING OUT THE PROCEDURES AUTHORIZED BY THIS SECTION;
33 AND
34 (C) ANY OTHER MATTERS THE PARTIES TO THE AGREEMENT DEEM NECESSARY TO
35 CARRY OUT THE PROVISIONS OF THIS SECTION.
36 (4) PRIOR TO AWARDING LOTTERY PRIZES OF MORE THAN SIX HUNDRED DOLLARS,
37 THE DIVISION SHALL REVIEW THE MOST RECENT NOTICE OF TAX LIABILITIES
38 PROVIDED BY THE COMMISSIONER. FOR HOLDERS OF WINNING LOTTERY TICKETS
39 IDENTIFIED ON THAT NOTICE, THE DIVISION SHALL CREDIT TO THE DEPARTMENT
40 THE AMOUNT OF EACH HOLDER'S PRIZE NECESSARY TO SATISFY THAT HOLDER'S TAX
41 LIABILITY, AND THE REMAINDER OF THE PRIZE SHALL BE AWARDED TO THE HOLDER
42 OF THE WINNING TICKET.
43 (5) IF THE DIVISION HAS ALSO RECEIVED A NOTICE OF LIABILITY OF A PRIZE
44 WINNER FOR PAST-DUE SUPPORT OR PUBLIC ASSISTANCE BENEFITS PURSUANT TO
45 SECTION SIXTEEN HUNDRED THIRTEEN-A OR SIXTEEN HUNDRED THIRTEEN-B OF THIS
46 ARTICLE, THEN THE AMOUNT OF ANY PRIZE SHALL BE FIRST CREDITED OR APPLIED
47 TO THE INCOME TAX REQUIRED TO BE WITHHELD BY LAW, THEN AS REQUIRED BY
48 SECTION SIXTEEN HUNDRED THIRTEEN-A OR SIXTEEN HUNDRED THIRTEEN-B OF THIS
49 ARTICLE, THEN TO THE PAST DUE TAX LIABILITY AS REQUIRED BY THIS SECTION.
50 THE BALANCE WILL THEN BE PAID TO THE HOLDER OF THE WINNING LOTTERY TICK-
51 ET.
52 (6) THE DIVISION SHALL CERTIFY TO THE COMPTROLLER THE TOTAL AMOUNT OF
53 THE LOTTERY PRIZE TO BE CREDITED AGAINST PAST DUE TAX LIABILITIES AND
A. 4011--B 19
1 THE REMAINDER OF THE PRIZE TO BE AWARDED TO THE HOLDER OF THE WINNING
2 LOTTERY TICKET.
3 (7) THE DIVISION SHALL NOTIFY THE HOLDER OF THE WINNING LOTTERY TICK-
4 ET, IN WRITING, OF THE TOTAL AMOUNT OF THE LOTTERY PRIZE CREDITED
5 AGAINST PAST DUE TAX LIABILITIES AND THE REMAINDER OF THE PRIZE TO BE
6 AWARDED TO THE HOLDER. THAT NOTICE MUST ALSO ADVISE THE HOLDER THAT THE
7 DEPARTMENT WILL PROVIDE SEPARATE NOTICE, IN WRITING, OF THE PROCEDURE
8 FOR AND TIME FRAME BY WHICH THE HOLDER MAY CONTEST SUCH CREDITING.
9 (8) THE DEPARTMENT SHALL NOTIFY THE HOLDER OF THE WINNING LOTTERY
10 TICKET, IN WRITING, OF THE AMOUNT OF A PRIZE TO BE CREDITED AGAINST PAST
11 DUE TAX LIABILITIES AND THE PROCEDURE FOR AND TIME FRAME BY WHICH THE
12 HOLDER MAY CONTEST THE CREDITING OF THE PRIZE.
13 (9) FROM THE TIME THE DIVISION IS NOTIFIED BY THE DEPARTMENT OF A PAST
14 DUE TAX LIABILITY OF A HOLDER OF A WINNING LOTTERY TICKET, THE DIVISION
15 SHALL BE RELIEVED FROM ALL LIABILITY TO THE HOLDER, AND THE HOLDER'S
16 HEIRS, REPRESENTATIVES, ESTATE, SUCCESSORS OR ASSIGNS FOR THE AMOUNT OF
17 A PRIZE CERTIFIED TO THE COMPTROLLER TO BE CREDITED AGAINST PAST DUE TAX
18 LIABILITIES AND THE HOLDER AND THE HOLDER'S HEIRS, REPRESENTATIVES,
19 ESTATE, SUCCESSOR OR ASSIGNS SHALL HAVE NO RIGHT TO COMMENCE A COURT
20 ACTION OR PROCEEDING OR TO ANY OTHER LEGAL RECOURSE AGAINST THE DIVISION
21 TO RECOVER ANY AMOUNT CERTIFIED TO THE COMPTROLLER TO BE CREDITED
22 AGAINST PAST DUE TAX LIABILITIES. PROVIDED HOWEVER, NOTHING HEREIN SHALL
23 BE CONSTRUED TO PROHIBIT A HOLDER OF A WINNING LOTTERY TICKET AND THE
24 HOLDER'S HEIRS, REPRESENTATIVES, ESTATE, SUCCESSORS OR ASSIGNS FROM
25 PROCEEDING AGAINST THE DEPARTMENT TO RECOVER THE PART OF THE PRIZE
26 CERTIFIED TO THE COMPTROLLER AND CREDITED TO PAST DUE TAX LIABILITIES
27 WHICH IS GREATER THAN THE AMOUNT OF PAST DUE TAX LIABILITIES OWED BY
28 THAT HOLDER ON THE DATE OF CERTIFICATION.
29 (10) NOTWITHSTANDING ANY LAW TO THE CONTRARY, THE DEPARTMENT AND ITS
30 OFFICERS AND EMPLOYEES MAY FURNISH TO THE DIVISION ANY ABSTRACT OF ANY
31 TAX RETURN OR REPORT, OR ANY INFORMATION CONCERNING AN ITEM CONTAINED IN
32 ANY SUCH RETURN OR REPORT OR DISCLOSED BY ANY INVESTIGATION OF TAX
33 LIABILITY UNDER THIS CHAPTER, BUT ONLY FOR THE PURPOSE OF CREDITING
34 LOTTERY PRIZES AGAINST PAST DUE TAX LIABILITIES DESCRIBED IN SUBDIVISION
35 TWO OF THIS SECTION.
36 S 2. This act shall take effect on the first of August next succeeding
37 the date on which it shall have become a law, provided that the depart-
38 ment of taxation and finance and the division of the lottery may take
39 steps to effectuate the written agreement between the director of the
40 division of the lottery and the commissioner of taxation and finance
41 prior to such effective date.
42 PART E
43 Section 1. Paragraph c of subdivision 2 of section 124 of part A of
44 chapter 56 of the laws of 1998, amending the tax law and other laws
45 relating to extending the dates of application of the investment tax
46 credit under articles 9-A, 22 and 32 of the tax law, as amended by
47 section 1 of part YY-1 of chapter 57 of the laws of 2008, is amended to
48 read as follows:
49 c. Sections fifteen through twenty-seven of this act shall apply to
50 property placed in service on or after October 1, 1998 and before Octo-
51 ber 1, [2011] 2015.
52 S 2. Section 2 of part L of chapter 63 of the laws of 2000, amending
53 the tax law and other laws relating to extending the dates of applica-
54 tion of the investment tax credit under article 33 of the tax law, as
A. 4011--B 20
1 amended by section 2 of part YY-1 of chapter 57 of the laws of 2008, is
2 amended to read as follows:
3 S 2. This act shall take effect immediately and shall apply to proper-
4 ty placed in service on or after January 1, 2002 and before October 1,
5 [2011] 2015.
6 S 3. This act shall take effect immediately.
7 PART F
8 Section 1. Subdivision 4 of section 22 of the public housing law, as
9 amended by section 1 of part P of chapter 57 of the laws of 2010, is
10 amended to read as follows:
11 4. Statewide limitation. The aggregate dollar amount of credit which
12 the commissioner may allocate to eligible low-income buildings under
13 this article shall be [twenty-eight] THIRTY-TWO million dollars. The
14 limitation provided by this subdivision applies only to allocation of
15 the aggregate dollar amount of credit by the commissioner, and does not
16 apply to allowance to a taxpayer of the credit with respect to an eligi-
17 ble low-income building for each year of the credit period.
18 S 2. This act shall take effect immediately.
19 PART G
20 Section 1. Subdivision 12 of section 352 of the economic development
21 law, as added by section 1 of part MM of chapter 59 of the laws of 2010,
22 is amended to read as follows:
23 12. "Preliminary schedule of benefits" means the maximum aggregate
24 amount of each component of the tax credit that a participant in the
25 excelsior jobs program is eligible to receive pursuant to this article.
26 The schedule shall indicate the annual amount of each component of the
27 credit a participant may claim in each of its [five] TEN years of eligi-
28 bility. The preliminary schedule of benefits shall be issued by the
29 department when the department approves the application for admission
30 into the program. The commissioner may amend that schedule, provided
31 that the commissioner complies with the credit caps in section three
32 hundred fifty-nine of this article.
33 S 2. Section 353 of the economic development law, as added by section
34 1 of part MM of chapter 59 of the laws of 2010, is amended to read as
35 follows:
36 S 353. Eligibility criteria. 1. To be a participant in the excelsior
37 jobs program, a business entity shall operate in New York state predomi-
38 nantly:
39 (a) as a financial services data center or a financial services back
40 office operation;
41 (b) in manufacturing;
42 (c) in software development and new media;
43 (d) in scientific research and development;
44 (e) in agriculture;
45 (f) in the creation or expansion of back office operations in the
46 state;
47 (g) in a distribution center; or
48 (h) in an industry with significant potential for private-sector
49 economic growth and development in this state as established by the
50 commissioner in regulations promulgated pursuant to this article. In
51 promulgating such regulations the commissioner shall include job and
52 investment criteria.
A. 4011--B 21
1 2. WHEN DETERMINING WHETHER AN APPLICANT IS OPERATING PREDOMINATELY IN
2 ONE OF THE INDUSTRIES LISTED IN SUBDIVISION ONE OF THIS SECTION, THE
3 COMMISSIONER WILL EXAMINE THE NATURE OF THE BUSINESS ACTIVITY AT THE
4 LOCATION FOR THE PROPOSED PROJECT AND WILL MAKE ELIGIBILITY DETERMI-
5 NATIONS BASED ON SUCH ACTIVITY.
6 3. For the purposes of this article, in order to participate in the
7 excelsior jobs program, a business entity operating predominantly in
8 manufacturing must create at least twenty-five net new jobs; a business
9 entity operating predominately in agriculture must create at least ten
10 net new jobs; a business entity operating predominantly as a financial
11 service data center or financial services customer back office operation
12 must create at least one hundred net new jobs; a business entity operat-
13 ing predominantly in scientific research and development must create at
14 least ten net new jobs; a business entity operating predominantly in
15 software development must create at least ten net new jobs; a business
16 entity creating or expanding back office operations or a distribution
17 center in the state must create at least one hundred fifty net new jobs,
18 notwithstanding subdivision [four] FIVE of this section; or a business
19 entity must be a regionally significant project as defined in this arti-
20 cle; or
21 [3.] 4. A business entity operating predominantly in one of the indus-
22 tries referenced in paragraphs (a) through (h) of subdivision one of
23 this section but which does not meet the job requirements of subdivision
24 [two] THREE of this section must have at least fifty full-time job
25 equivalents and must demonstrate that its benefit-cost ratio is at least
26 ten to one.
27 [4.] 5. A not-for-profit business entity, a business entity whose
28 primary function is the provision of services including personal
29 services, business services, or the provision of utilities, and a busi-
30 ness entity engaged predominantly in the retail or entertainment indus-
31 try, and a company engaged in the generation or distribution of elec-
32 tricity, the distribution of natural gas, or the production of steam
33 associated with the generation of electricity are not eligible to
34 receive the tax credit described in this article.
35 [5.] 6. A business entity must be in compliance with all worker
36 protection and environmental laws and regulations. In addition, a busi-
37 ness entity may not owe past due state taxes or local property taxes.
38 S 3. Section 354 of the economic development law, as added by section
39 1 of part MM of chapter 59 of the laws of 2010, is amended to read as
40 follows:
41 S 354. Application and approval process. 1. A business enterprise must
42 submit a completed application as prescribed by the commissioner. An
43 application may be recommended by entities, including but not limited
44 to, those created pursuant to subdivision (e) of section nine hundred
45 fifty-seven of the general municipal law.
46 2. As part of such application, each business enterprise must:
47 (a) Agree to allow the department of taxation and finance to share its
48 tax information with the department. However, any information shared as
49 a result of this agreement shall not be available for disclosure or
50 inspection under the state freedom of information law.
51 (b) Agree to allow the department of labor to share its tax and
52 employer information with the department. However, any information
53 shared as a result of this agreement shall not be available for disclo-
54 sure or inspection under the state freedom of information law.
55 (c) Allow the department and its agents access to any and all books
56 and records the department may require to monitor compliance.
A. 4011--B 22
1 (d) Agree to be permanently [decertified from the empire zones program
2 if admitted into the excelsior jobs program, effective for the first
3 taxable year that the business enterprise may claim the excelsior jobs
4 program credit and for all subsequent taxable years] DISQUALIFIED FOR
5 EMPIRE ZONE BENEFITS AT ANY LOCATION OR LOCATIONS THAT QUALIFY FOR
6 EXCELSIOR JOBS PROGRAM BENEFITS IF ADMITTED INTO THE EXCELSIOR JOBS
7 PROGRAM.
8 (e) Provide the following information to the department upon request:
9 (i) a plan outlining the schedule for meeting the job and investment
10 requirements as set forth in subdivisions [two] THREE and [three] FOUR
11 of section three hundred fifty-three of this article. Such plan must
12 include details on job titles and expected salaries;
13 (ii) the prior three years of federal and state income or franchise
14 tax returns, unemployment insurance quarterly returns, real property tax
15 bills and audited financial statements;
16 (iii) the amount and description of projected qualified investments
17 for which it plans to claim the excelsior investment tax credit;
18 (iv) an estimate of the portion of any federal research and develop-
19 ment tax credits, attributable to research and development activities
20 conducted in New York state, that it anticipates claiming for the years
21 it expects to claim the excelsior research and development credit; and
22 (v) the employer identification or social security numbers for all
23 related persons to the applicant, including those of any members of a
24 limited liability company or partners in a partnership.
25 (f) Provide a clear and detailed presentation of all related persons
26 to the applicant to assure the department that jobs are not being shift-
27 ed within the state.
28 (g) Certify, under penalty of perjury, that it is in substantial
29 compliance with all environmental, worker protection, and local, state,
30 and federal tax laws.
31 3. After reviewing a business enterprise's completed application and
32 determining that the business enterprise will meet the conditions set
33 forth in subdivisions [two] THREE and [three] FOUR of section three
34 hundred fifty-three of this article, the department may admit the appli-
35 cant into the program and provide the applicant with a certificate of
36 eligibility and a preliminary schedule of benefits by year based on the
37 applicant's projections as set forth in its application. This prelimi-
38 nary schedule of benefits delineates the maximum possible benefits an
39 applicant may receive.
40 4. In order to become a participant in the program, an applicant must
41 submit evidence [of achieving job and investment requirements] THAT IT
42 SATISFIES THE ELIGIBILITY CRITERIA SPECIFIED IN SECTION THREE HUNDRED
43 FIFTY-THREE OF THIS ARTICLE AND SUBDIVISION TWO OF THIS SECTION in such
44 form as the commissioner may prescribe. After reviewing such evidence
45 and finding it sufficient, the department shall certify the applicant as
46 a participant and issue to that participant a certificate of tax credit
47 for one taxable year. To receive a certificate of tax credit for subse-
48 quent taxable years, the participant must submit to the department a
49 performance report DEMONSTRATING THAT THE PARTICIPANT CONTINUES TO
50 SATISFY THE ELIGIBILITY CRITERIA SPECIFIED IN SECTION THREE HUNDRED
51 FIFTY-THREE OF THIS ARTICLE AND SUBDIVISION TWO OF THIS SECTION. IF SUCH
52 ELIGIBILITY CRITERIA IS MET, A PARTICIPANT CAN RECEIVE TAX CREDITS BASED
53 ON INTERIM JOB, INVESTMENT OR RESEARCH AND DEVELOPMENT MILESTONES. A
54 participant's increase in employment, qualified investment, or federal
55 research and development tax credit attributable to research and devel-
56 opment activities in New York state above its projections listed in its
A. 4011--B 23
1 application shall not result in an increase in tax benefits under this
2 article. However, if the participant's expenditures are less than the
3 estimated amounts, the credit shall be less than the estimate.
4 5. A participant may claim tax benefits commencing in the first taxa-
5 ble year that the business enterprise receives a certificate of tax
6 credit or the first taxable year listed on its preliminary schedule of
7 benefits, whichever is later. A participant may claim such benefits for
8 the next [four] NINE consecutive taxable years, provided that the
9 participant demonstrates to the department that it continues to satisfy
10 the eligibility criteria specified in section three hundred fifty-three
11 of this article and subdivision two of this section in each of those
12 taxable years.
13 S 4. Section 355 of the economic development law, as added by section
14 1 of part MM of chapter 59 of the laws of 2010, is amended to read as
15 follows:
16 S 355. Excelsior jobs program credit. 1. Excelsior jobs tax credit
17 component. A participant in the excelsior jobs program shall be eligible
18 to claim a credit for each net new job it creates in New York state. The
19 amount of such credit per job shall be equal to the [sum of the follow-
20 ing: five percent of the amount of remuneration equal to or less than
21 fifty thousand dollars; four percent of the amount of remuneration in
22 excess of fifty thousand dollars and equal to or less than seventy-five
23 thousand dollars; and 1.33 percent of the amount of remuneration in
24 excess of seventy-five thousand dollars. However, the amount of the
25 credit for each net new job shall not exceed five thousand dollars]
26 PRODUCT OF THE GROSS WAGES PAID AND 6.85 PERCENT.
27 2. Excelsior investment tax credit component. A participant in the
28 excelsior jobs program shall be eligible to claim a credit on qualified
29 investments. The credit shall be equal to two percent of the cost or
30 other basis for federal income tax purposes of the qualified investment.
31 A participant may not claim both the excelsior investment tax credit
32 component and the investment tax credit set forth in subdivision twelve
33 of section two hundred ten, subsection (a) of section six hundred six,
34 [or] subsection (i) of section fourteen hundred fifty-six, OR SUBDIVI-
35 SION (Q) OF SECTION FIFTEEN HUNDRED ELEVEN of the tax law for the same
36 property in any taxable year, EXCEPT THAT A PARTICIPANT MAY CLAIM BOTH
37 THE EXCELSIOR INVESTMENT TAX CREDIT COMPONENT AND THE INVESTMENT TAX
38 CREDIT FOR RESEARCH AND DEVELOPMENT PROPERTY. In addition, a taxpayer
39 who or which is qualified to claim the excelsior investment tax credit
40 component and is also qualified to claim the brownfield tangible proper-
41 ty credit component under section twenty-one of the tax law may claim
42 either the excelsior investment tax credit component or such tangible
43 property credit component, but not both with regard to a particular
44 piece of property. A credit may not be claimed until a business enter-
45 prise has received a certificate of tax credit, provided that qualified
46 investments made on or after the issuance of the certificate of eligi-
47 bility but before the issuance of the certificate of tax credit to the
48 business enterprise, may be claimed in the first taxable year for which
49 the business enterprise is allowed to claim the credit. Expenses
50 incurred prior to the date the certificate of eligibility is issued are
51 not eligible to be included in the calculation of the credit.
52 3. Excelsior research and development tax credit component. A partic-
53 ipant in the excelsior jobs program shall be eligible to claim a credit
54 equal to [ten] FIFTY percent of the portion of the participant's federal
55 research and development tax credit that relates to the participant's
56 research and development expenditures in New York state during the taxa-
A. 4011--B 24
1 ble year; PROVIDED HOWEVER, THE EXCELSIOR RESEARCH AND DEVELOPMENT TAX
2 CREDIT SHALL NOT EXCEED THREE PERCENT OF THE QUALIFIED RESEARCH AND
3 DEVELOPMENT EXPENDITURES ATTRIBUTABLE TO ACTIVITIES CONDUCTED IN NEW
4 YORK STATE. If the federal research and development credit has expired,
5 then the research and development expenditures relating to the federal
6 research and development credit shall be calculated as if the federal
7 research and development credit structure and definition in effect in
8 two thousand nine were still in effect. NOTWITHSTANDING ANY OTHER
9 PROVISION OF THIS CHAPTER TO THE CONTRARY, RESEARCH AND DEVELOPMENT
10 EXPENDITURES IN THIS STATE, INCLUDING SALARY OR WAGE EXPENSES FOR JOBS
11 RELATED TO RESEARCH AND DEVELOPMENT ACTIVITIES IN THIS STATE, MAY BE
12 USED AS THE BASIS FOR THE EXCELSIOR RESEARCH AND DEVELOPMENT TAX CREDIT
13 COMPONENT AND THE QUALIFIED EMERGING TECHNOLOGY COMPANY FACILITIES,
14 OPERATIONS AND TRAINING CREDIT UNDER THE TAX LAW.
15 4. Excelsior real property tax credit COMPONENT. (A) A participant in
16 the excelsior jobs program who either qualified as a regionally signif-
17 icant project or is located in an investment zone shall be eligible to
18 claim a credit for a period of [five] TEN years.
19 (B) The credit IN YEAR ONE shall be equal to fifty percent of the
20 eligible real property taxes on the real property comprising the
21 regionally significant project or located in the investment zone [that
22 were assessed and paid in the year immediately prior to application]. In
23 the remaining years the credit shall be computed according to the
24 following schedule:
25 Year two: [forty] FORTY-FIVE percent of eligible real property taxes
26 on the real property comprising the regionally significant project or
27 located in the investment zone [that were assessed and paid in the year
28 immediately prior to application];
29 Year three: [thirty] FORTY percent of eligible real property taxes on
30 the real property comprising the regionally significant project or
31 located in the investment zone [that were assessed and paid in the year
32 immediately prior to application];
33 Year four: [twenty] THIRTY-FIVE percent of eligible real property
34 taxes on real property comprising the regionally significant project or
35 located in the investment zone [that were assessed and paid in the year
36 immediately prior to application]; [and]
37 Year five: [ten] THIRTY percent of eligible real property taxes on the
38 real property comprising the regionally significant project or located
39 in the investment zone [that were assessed and paid in the year imme-
40 diately prior to application];
41 YEAR SIX: TWENTY-FIVE PERCENT OF ELIGIBLE REAL PROPERTY TAXES ON THE
42 REAL PROPERTY COMPRISING THE REGIONALLY SIGNIFICANT PROJECT OR LOCATED
43 IN THE INVESTMENT ZONE;
44 YEAR SEVEN: TWENTY PERCENT OF ELIGIBLE REAL PROPERTY TAXES ON THE REAL
45 PROPERTY COMPRISING THE REGIONALLY SIGNIFICANT PROJECT OR LOCATED IN THE
46 INVESTMENT ZONE;
47 YEAR EIGHT: FIFTEEN PERCENT OF ELIGIBLE REAL PROPERTY TAXES ON THE
48 REAL PROPERTY COMPRISING THE REGIONALLY SIGNIFICANT PROJECT OR LOCATED
49 IN THE INVESTMENT ZONE;
50 YEAR NINE: TEN PERCENT OF ELIGIBLE REAL PROPERTY TAXES ON THE REAL
51 PROPERTY COMPRISING THE REGIONALLY SIGNIFICANT PROJECT OR LOCATED IN THE
52 INVESTMENT ZONE; AND
53 YEAR TEN: FIVE PERCENT OF ELIGIBLE REAL PROPERTY TAXES ON THE REAL
54 PROPERTY COMPRISING THE REGIONALLY SIGNIFICANT PROJECT OR LOCATED IN THE
55 INVESTMENT ZONE.
A. 4011--B 25
1 (C) For purposes of this credit, the term "eligible real property
2 taxes" shall have the same meaning as in subdivision (e) of section
3 fifteen of the tax law, provided that such subdivision (e) shall be read
4 as if it specifically referenced the excelsior jobs program and partic-
5 ipants in that program.
6 (D) IN CALCULATING THE EXCELSIOR REAL PROPERTY TAX CREDIT AND DETER-
7 MINING THE MAXIMUM AGGREGATE AMOUNT OF SUCH CREDIT COMPONENT IN THE
8 PRELIMINARY SCHEDULE OF BENEFITS, THE COMMISSIONER SHALL INCLUDE ANY
9 IMPROVEMENTS PROJECTED TO BE MADE BY THE TAXPAYER TO THE PROPERTY
10 COMPRISING THE REGIONALLY SIGNIFICANT PROJECT OR LOCATED IN THE INVEST-
11 MENT ZONE AS LISTED IN ITS APPLICATION FOR PARTICIPATION IN THE EXCELS-
12 IOR JOBS PROGRAM.
13 5. Refundability of credits. The tax credit components established in
14 this section shall be refundable as provided in the tax law. If a
15 participant fails to satisfy the eligibility criteria in any one year,
16 it will lose the ability to claim credit for that year. The event of
17 such failure shall not extend the original [five-year] TEN-YEAR eligi-
18 bility period.
19 6. Claim of tax credit. The business enterprise shall be allowed to
20 claim the credit as prescribed in section thirty-one of the tax law.
21 7. FOR AVAILABILITY OF SPECIAL EXCELSIOR JOBS PROGRAM RATES GOVERNING
22 THE PROVISION OF GAS OR ELECTRIC SERVICE, SEE SUBDIVISION TWELVE-D OF
23 SECTION SIXTY-SIX OF THE PUBLIC SERVICE LAW. SUCH SPECIAL EXCELSIOR JOBS
24 PROGRAM RATES MAY REMAIN AVAILABLE TO PARTICIPANTS AS DEFINED IN THIS
25 ARTICLE FOR A PERIOD OF UP TO TEN YEARS COMMENCING IN THE FIRST TAXABLE
26 YEAR THAT THE PARTICIPANT RECEIVES A CERTIFICATE OF TAX CREDIT, OR THE
27 FIRST TAXABLE YEAR LISTED ON ITS PRELIMINARY SCHEDULE OF BENEFITS,
28 WHICHEVER IS LATER. PROVIDED HOWEVER, IF A PARTICIPANT IS REMOVED FROM
29 THE EXCELSIOR JOBS PROGRAM PURSUANT TO THIS ARTICLE, THE EXCELSIOR JOBS
30 PROGRAM RATES MAY BE DENIED.
31 S 5. Subdivision 3 of section 356 of the economic development law, as
32 added by section 1 of part MM of chapter 59 of the laws of 2010, is
33 amended to read as follows:
34 3. The commissioner shall solely determine the eligibility of any
35 applicant applying for entry into the program and shall remove any
36 participant from the program for failing to meet any of the requirements
37 set forth in subdivision two of section three hundred fifty-four of this
38 article, or for failing to meet the minimum job or investment require-
39 ments set forth in subdivisions [two] THREE and [three] FOUR of section
40 three hundred fifty-three of this article.
41 S 6. Section 359 of the economic development law, as added by section
42 1 of part MM of chapter 59 of the laws of 2010, is amended to read as
43 follows:
44 S 359. Cap on tax credit. The total amount of tax credits listed on
45 certificates of tax credit issued by the commissioner for any taxable
46 year may not exceed the limitations set forth in this section. Any
47 amount of tax credits not awarded for a particular taxable year may not
48 be used by the commissioner to award tax credits in another taxable
49 year.
50 Credit components in the aggregate With respect to
51 shall not exceed: taxable years
52 beginning in:
53 $ 50 million 2011
54 $ 100 million 2012
A. 4011--B 26
1 $ 150 million 2013
2 $ 200 million 2014
3 $ 250 million 2015
4 $ 200 million 2016
5 $ [150] 200 million 2017
6 $ [100] 200 million 2018
7 $ [50] 200 million 2019
8 $ 200 MILLION 2020
9 $ 200 MILLION 2021
10 $ 150 MILLION 2022
11 $ 100 MILLION 2023
12 $ 50 MILLION 2024
13 Twenty-five percent of tax credits shall be allocated to businesses
14 accepted into the program under subdivision [three] FOUR of section
15 three hundred fifty-three of this article and seventy-five percent of
16 tax credits shall be allocated to businesses accepted into the program
17 under subdivision [two] THREE of section three hundred fifty-three of
18 this article.
19 Provided, however, if by September thirtieth of a calendar year, the
20 department has not allocated the full amount of credits available in
21 that year to either: (i) businesses accepted into the program under
22 subdivision [three] FOUR of section three hundred fifty-three of this
23 article or (ii) businesses accepted into the program under subdivision
24 [two] THREE of section three hundred fifty-three of this article, the
25 commissioner may allocate any remaining tax credits to businesses refer-
26 enced in paragraphs (i) and (ii) of this section as needed; provided,
27 however, that under no circumstances may the statutory cap be exceeded.
28 S 7. Subdivisions (a), (b) and (f) of section 31 of the tax law, as
29 added by section 2 of part MM of chapter 59 of the laws of 2010, are
30 amended to read as follows:
31 (a) General. A taxpayer subject to tax under article nine-A, twenty-
32 two, thirty-two or thirty-three of this chapter shall be allowed a cred-
33 it against such tax, pursuant to the provisions referenced in subdivi-
34 sion (g) of this section. The amount of the credit, allowable for up to
35 [five] TEN consecutive taxable years, is the sum of the following four
36 credit components:
37 (1) the excelsior jobs tax credit COMPONENT;
38 (2) the excelsior investment tax credit COMPONENT;
39 (3) the excelsior research and development tax credit COMPONENT; and
40 (4) the excelsior real property tax credit COMPONENT.
41 (b) To be eligible for the excelsior jobs program credit, the taxpayer
42 shall have been issued a "certificate of tax credit" by the department
43 of economic development pursuant to subdivision four of section three
44 hundred fifty-four of the economic development law, which certificate
45 shall set forth the amount of each credit component that may be claimed
46 for the taxable year. A taxpayer may claim such credit for [five] TEN
47 consecutive taxable years commencing in the first taxable year that the
48 taxpayer receives a certificate of tax credit or the first taxable year
49 listed on its preliminary schedule of benefits, whichever is later. The
50 taxpayer shall be allowed to claim only the amount listed on the certif-
51 icate of tax credit for that taxable year. Such certificate [should]
52 MUST be attached to the taxpayer's return. No cost or expense paid or
53 incurred by the taxpayer shall be the basis for more than one component
54 of this credit or any other tax credit, EXCEPT AS PROVIDED IN SECTION
55 THREE HUNDRED FIFTY-FIVE OF THE ECONOMIC DEVELOPMENT LAW.
A. 4011--B 27
1 (f) Credit recapture. If a certificate of eligibility or a certificate
2 of tax credit issued by the department of economic development under
3 article seventeen of the economic development law is revoked by such
4 department BECAUSE THE TAXPAYER DOES NOT MEET THE ELIGIBILITY REQUIRE-
5 MENT SET FORTH IN SUBDIVISION SIX OF SECTION THREE HUNDRED FIFTY-THREE
6 OF THE ECONOMIC DEVELOPMENT LAW, the amount of credit described in this
7 section and claimed by the taxpayer prior to that revocation shall be
8 added back to [income] TAX in the taxable year in which any such revoca-
9 tion becomes final.
10 S 8. Section 66 of the public service law is amended by adding a new
11 subdivision 12-d to read as follows:
12 12-D. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, UPON APPLICATION OF
13 A GAS OR ELECTRIC CORPORATION, THE COMMISSION SHALL AUTHORIZE SUCH
14 CORPORATION TO CHARGE A SPECIAL EXCELSIOR JOBS PROGRAM RATE EQUAL TO THE
15 INCREMENTAL COST OF PROVIDING SERVICE TO PARTICIPANTS IN THE EXCELSIOR
16 JOBS PROGRAM AS DEFINED IN ARTICLE SEVENTEEN OF THE ECONOMIC DEVELOPMENT
17 LAW.
18 S 9. This act shall take effect immediately.
19 PART H
20 Intentionally omitted.
21 PART I
22 Section 1. The opening paragraph of paragraph 1 of subsection (b) of
23 section 1101 of the insurance law, as amended by chapter 614 of the laws
24 of 1997, is amended to read as follows:
25 Except as provided in paragraph two, three [or], three-a, OR SEVEN of
26 this subsection, any of the following acts in this state, effected by
27 mail from outside this state or otherwise, by any person, firm, associ-
28 ation, corporation or joint-stock company shall constitute doing an
29 insurance business in this state and shall constitute doing business in
30 the state within the meaning of section three hundred two of the civil
31 practice law and rules:
32 S 2. Subparagraph (H) of paragraph 2 of subsection (b) of section 1101
33 of the insurance law is amended to read as follows:
34 (H) transactions with respect to insurance contracts negotiated or
35 placed pursuant to subsection (b) [or], (c), OR (J) of section two thou-
36 sand one hundred seventeen of this chapter;
37 S 3. Subsection (b) of section 1101 of the insurance law is amended by
38 adding a new paragraph 7 to read as follows:
39 (7)(A) NOTWITHSTANDING THE FOREGOING, THE MAKING OF A SWAP SHALL NOT
40 CONSTITUTE DOING AN INSURANCE BUSINESS IN THIS STATE.
41 (B) FOR THE PURPOSES OF THIS PARAGRAPH, "SWAP" SHALL HAVE THE MEANING
42 SET FORTH IN 7 U.S.C. S 1A.
43 S 4. Section 2101 of the insurance law is amended by adding two new
44 subsections (w) and (x) to read as follows:
45 (W) IN THIS ARTICLE, "STATE" MEANS THE DISTRICT OF COLUMBIA OR ANY
46 STATE OR TERRITORY OF THE UNITED STATES.
47 (X) IN THIS ARTICLE, WITH RESPECT TO EXCESS LINE INSURANCE AND EXCESS
48 LINE BROKERS:
49 (1) WITH RESPECT TO AN INSURED'S HOME STATE, "AFFILIATED GROUP" MEANS
50 ANY GROUP OF ENTITIES THAT ARE ALL AFFILIATED. FOR THE PURPOSES OF THIS
51 PARAGRAPH:
A. 4011--B 28
1 (A) "AFFILIATE" MEANS, WITH RESPECT TO AN INSURED, ANY ENTITY THAT
2 CONTROLS, IS CONTROLLED BY, OR IS UNDER COMMON CONTROL WITH THE INSURED;
3 AND
4 (B) AN ENTITY HAS CONTROL OVER ANOTHER ENTITY IF THE ENTITY:
5 (I) DIRECTLY OR INDIRECTLY OR ACTING THROUGH ONE OR MORE OTHER PERSONS
6 OWNS, CONTROLS, OR HAS THE POWER TO VOTE TWENTY-FIVE PERCENT OR MORE OF
7 ANY CLASS OF VOTING SECURITIES OF THE OTHER ENTITY; OR
8 (II) CONTROLS IN ANY MANNER THE ELECTION OF A MAJORITY OF THE DIREC-
9 TORS OR TRUSTEES OF THE OTHER ENTITY;
10 (2) "EXEMPT COMMERCIAL PURCHASER" MEANS ANY PERSON PURCHASING COMMER-
11 CIAL INSURANCE THAT, AT THE TIME OF PLACEMENT, MEETS THE FOLLOWING
12 REQUIREMENTS:
13 (A) THE PERSON EMPLOYS OR RETAINS A QUALIFIED RISK MANAGER TO NEGOTI-
14 ATE INSURANCE COVERAGE;
15 (B) THE PERSON HAS PAID AGGREGATE NATIONWIDE COMMERCIAL
16 PROPERTY/CASUALTY INSURANCE PREMIUMS IN EXCESS OF ONE HUNDRED THOUSAND
17 DOLLARS IN THE IMMEDIATELY PRECEDING TWELVE MONTHS; AND
18 (C) (I) THE PERSON MEETS AT LEAST ONE OF THE FOLLOWING CRITERIA:
19 (I) THE PERSON POSSESSES A NET WORTH IN EXCESS OF TWENTY MILLION
20 DOLLARS, AS SUCH AMOUNT IS ADJUSTED PURSUANT TO ITEM (II) OF THIS
21 SUBPARAGRAPH;
22 (II) THE PERSON GENERATES ANNUAL REVENUES IN EXCESS OF FIFTY MILLION
23 DOLLARS, AS SUCH AMOUNT IS ADJUSTED PURSUANT TO ITEM (II) OF THIS
24 SUBPARAGRAPH;
25 (III) THE PERSON EMPLOYS MORE THAN FIVE HUNDRED FULL-TIME OR FULL-TIME
26 EQUIVALENT EMPLOYEES PER INDIVIDUAL INSURED OR IS A MEMBER OF AN AFFIL-
27 IATED GROUP EMPLOYING MORE THAN ONE THOUSAND EMPLOYEES IN THE AGGREGATE;
28 (IV) THE PERSON IS A NOT-FOR-PROFIT ORGANIZATION OR PUBLIC ENTITY
29 GENERATING ANNUAL BUDGETED EXPENDITURES OF AT LEAST THIRTY MILLION
30 DOLLARS, AS SUCH AMOUNT IS ADJUSTED PURSUANT TO ITEM (II) OF THIS
31 SUBPARAGRAPH; OR
32 (V) THE PERSON IS A MUNICIPALITY WITH A POPULATION IN EXCESS OF FIFTY
33 THOUSAND PERSONS;
34 (II) EFFECTIVE ON THE FIFTH JANUARY FIRST OCCURRING AFTER JULY TWEN-
35 TY-FIRST, TWO THOUSAND TEN AND EACH FIFTH JANUARY FIRST OCCURRING THERE-
36 AFTER, THE AMOUNTS IN CLAUSES (I), (II), AND (IV) OF ITEM (I) OF THIS
37 SUBPARAGRAPH SHALL BE ADJUSTED TO REFLECT THE PERCENTAGE CHANGE FOR SUCH
38 FIVE-YEAR PERIOD IN THE CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS
39 PUBLISHED BY THE BUREAU OF LABOR STATISTICS OF THE UNITES STATES DEPART-
40 MENT OF LABOR;
41 (3) "INSURED'S HOME STATE" MEANS:
42 (A) THE STATE IN WHICH AN INSURED MAINTAINS ITS PRINCIPAL PLACE OF
43 BUSINESS OR, IN THE CASE OF AN INDIVIDUAL, THE INDIVIDUAL'S PRINCIPAL
44 RESIDENCE;
45 (B) IF ONE HUNDRED PERCENT OF THE INSURED RISK IS LOCATED OUTSIDE OF
46 THE STATE REFERRED TO IN SUBPARAGRAPH (A) OF THIS PARAGRAPH, THEN THE
47 STATE TO WHICH THE GREATEST PERCENTAGE OF THE INSURED'S TAXABLE PREMIUM
48 FOR THAT INSURANCE CONTRACT IS ALLOCATED;
49 (C) IF MORE THAN ONE INSURED FROM AN AFFILIATED GROUP ARE NAMED
50 INSUREDS ON A SINGLE INSURANCE CONTRACT, THEN THE INSURED'S HOME STATE,
51 AS DETERMINED PURSUANT TO SUBPARAGRAPH (A) OF THIS PARAGRAPH, OF THE
52 MEMBER OF THE AFFILIATED GROUP THAT HAS THE LARGEST PERCENTAGE OF PREMI-
53 UM ATTRIBUTED TO IT UNDER SUCH INSURANCE CONTRACT; OR
54 (D) IN THE CASE OF A GROUP POLICY:
55 (I) WHEN THE GROUP POLICYHOLDER PAYS ONE HUNDRED PERCENT OF THE PREMI-
56 UM FROM ITS OWN FUNDS, THEN THE INSURED'S HOME STATE, AS DETERMINED
A. 4011--B 29
1 PURSUANT TO SUBPARAGRAPH (A) OF THIS PARAGRAPH, OF THE GROUP POLICYHOLD-
2 ER; OR
3 (II) WHEN THE GROUP POLICYHOLDER DOES NOT PAY ONE HUNDRED PERCENT OF
4 THE PREMIUM FROM ITS OWN FUNDS, THEN THE HOME STATE, AS DETERMINED
5 PURSUANT TO SUBPARAGRAPH (A) OF THIS PARAGRAPH, OF THE GROUP MEMBER;
6 (4) WITH RESPECT TO DETERMINING AN INSURED'S HOME STATE, "PRINCIPAL
7 PLACE OF BUSINESS" MEANS THE STATE WHERE:
8 (A) THE INSURED MAINTAINS ITS HEADQUARTERS AND WHERE THE INSURED'S
9 HIGH-LEVEL OFFICERS DIRECT, CONTROL, AND COORDINATE THE BUSINESS ACTIV-
10 ITIES; OR
11 (B) IF THE INSURED'S HIGH-LEVEL OFFICERS DIRECT, CONTROL, AND COORDI-
12 NATE THE BUSINESS ACTIVITIES IN MORE THAN ONE STATE, OR IF THE INSURED'S
13 PRINCIPAL PLACE OF BUSINESS IS LOCATED OUTSIDE ANY STATE, THEN THE STATE
14 TO WHICH THE GREATEST PERCENTAGE OF THE INSURED'S TAXABLE PREMIUM FOR
15 THAT INSURANCE CONTRACT IS ALLOCATED;
16 (5) WITH RESPECT TO DETERMINING AN INSURED'S HOME STATE, "PRINCIPAL
17 RESIDENCE" MEANS THE STATE:
18 (A) WHERE THE INDIVIDUAL RESIDES FOR THE GREATEST NUMBER OF DAYS
19 DURING A CALENDAR YEAR; OR
20 (B) IF THE INSURED'S PRINCIPAL RESIDENCE IS LOCATED OUTSIDE ANY STATE,
21 THE STATE TO WHICH THE GREATEST PERCENTAGE OF THE INSURED'S TAXABLE
22 PREMIUM FOR THAT INSURANCE CONTRACT IS ALLOCATED;
23 (6) "PROPERTY/CASUALTY INSURANCE" MEANS ANY KIND OF INSURANCE AS SPEC-
24 IFIED IN SUBSECTION (A) OF SECTION ONE THOUSAND ONE HUNDRED THIRTEEN OF
25 THIS CHAPTER, EXCEPT INSURANCE ISSUED PURSUANT TO PARAGRAPH ONE, TWO,
26 THREE, FIFTEEN, EIGHTEEN OR THIRTY-ONE OF SUBSECTION (A) OF SECTION ONE
27 THOUSAND ONE HUNDRED THIRTEEN OF THIS CHAPTER OR INSURANCE SUBSTANTIALLY
28 SIMILAR THERETO; AND
29 (7) WITH RESPECT TO AN EXEMPT COMMERCIAL PURCHASER, "QUALIFIED RISK
30 MANAGER" MEANS, WITH RESPECT TO A POLICYHOLDER OF COMMERCIAL INSURANCE,
31 A PERSON WHO MEETS ALL OF THE FOLLOWING REQUIREMENTS:
32 (A) THE PERSON IS AN EMPLOYEE OF, OR THIRD-PARTY CONSULTANT RETAINED
33 BY, THE COMMERCIAL POLICYHOLDER;
34 (B) THE PERSON PROVIDES SKILLED SERVICES IN LOSS PREVENTION, LOSS
35 REDUCTION, OR RISK AND INSURANCE COVERAGE ANALYSIS, AND PURCHASE OF
36 INSURANCE;
37 (C) THE PERSON:
38 (I)(I) HAS A BACHELOR'S DEGREE OR HIGHER FROM AN ACCREDITED COLLEGE OR
39 UNIVERSITY IN RISK MANAGEMENT, BUSINESS ADMINISTRATION, FINANCE, ECONOM-
40 ICS, OR ANY OTHER FIELD DETERMINED BY THE SUPERINTENDENT TO DEMONSTRATE
41 MINIMUM COMPETENCE IN RISK MANAGEMENT; AND
42 (II)(AA) HAS THREE YEARS OF EXPERIENCE IN RISK FINANCING, CLAIMS
43 ADMINISTRATION, LOSS PREVENTION, RISK AND INSURANCE ANALYSIS, OR
44 PURCHASING COMMERCIAL LINES OF INSURANCE; OR
45 (BB) HAS:
46 (AAA) A DESIGNATION AS A CHARTERED PROPERTY AND CASUALTY UNDERWRITER
47 (IN THIS CLAUSE REFERRED TO AS A "CPCU") ISSUED BY THE AMERICAN INSTI-
48 TUTE FOR CPCU/INSURANCE INSTITUTE OF AMERICA;
49 (BBB) A DESIGNATION AS AN ASSOCIATE IN RISK MANAGEMENT (ARM) ISSUED BY
50 THE AMERICAN INSTITUTE FOR CPCU/INSURANCE INSTITUTE OF AMERICA;
51 (CCC) A DESIGNATION AS CERTIFIED RISK MANAGER (CRM) ISSUED BY THE
52 NATIONAL ALLIANCE FOR INSURANCE EDUCATION & RESEARCH;
53 (DDD) A DESIGNATION AS A RISK AND INSURANCE MANAGEMENT SOCIETY (RIMS)
54 FELLOW (RF) ISSUED BY THE GLOBAL RISK MANAGEMENT INSTITUTE; OR
55 (EEE) ANY OTHER DESIGNATION, CERTIFICATION, OR LICENSE DETERMINED BY
56 THE SUPERINTENDENT TO DEMONSTRATE MINIMUM COMPETENCY IN RISK MANAGEMENT;
A. 4011--B 30
1 (II) (I) HAS AT LEAST SEVEN YEARS OF EXPERIENCE IN RISK FINANCING,
2 CLAIMS ADMINISTRATION, LOSS PREVENTION, RISK AND INSURANCE COVERAGE
3 ANALYSIS, OR PURCHASING COMMERCIAL LINES OF INSURANCE; AND
4 (II) HAS ANY ONE OF THE DESIGNATIONS SPECIFIED IN SUBCLAUSES (AAA)
5 THROUGH (EEE) OF SUBITEM (BB) OF CLAUSE (II) OF ITEM (I) OF THIS SUBPAR-
6 AGRAPH;
7 (III) HAS AT LEAST TEN YEARS OF EXPERIENCE IN RISK FINANCING, CLAIMS
8 ADMINISTRATION, LOSS PREVENTION, RISK AND INSURANCE COVERAGE ANALYSIS,
9 OR PURCHASING COMMERCIAL LINES OF INSURANCE; OR
10 (IV) HAS A GRADUATE DEGREE FROM AN ACCREDITED COLLEGE OR UNIVERSITY IN
11 RISK MANAGEMENT, BUSINESS ADMINISTRATION, FINANCE, ECONOMICS, OR ANY
12 OTHER FIELD DETERMINED BY THE SUPERINTENDENT TO DEMONSTRATE MINIMUM
13 COMPETENCE IN RISK MANAGEMENT.
14 S 5. Paragraphs 7 and 8 of subsection (c) of section 2101 of the
15 insurance law, as added by chapter 687 of the laws of 2003, are amended
16 and a new paragraph 9 is added to read as follows:
17 (7) a person whose activities in this state are limited to advertising
18 without the intent to solicit insurance in this state through communi-
19 cations in printed publications or other forms of electronic mass media
20 whose distribution is not limited to residents of the state, provided
21 that the person does not sell, solicit or negotiate insurance that would
22 insure risks residing, located or to be performed in this state; [or]
23 (8) a person who is not a resident of this state who sells, solicits
24 or negotiates a contract for commercial property/casualty risks to an
25 insured with risks located in more than one state insured under that
26 contract, provided that such person is otherwise licensed as an insur-
27 ance producer to sell, solicit or negotiate that insurance in the state
28 where the insured maintains its principal place of business and the
29 contract of insurance insures risks located in that state[.]; OR
30 (9) A PERSON WHO IS NOT A RESIDENT OF THIS STATE WHO SELLS, SOLICITS
31 OR NEGOTIATES A CONTRACT OF PROPERTY/CASUALTY INSURANCE, AS DEFINED IN
32 PARAGRAPH SIX OF SUBSECTION (X) OF THIS SECTION, TO OR FOR AN INSURED,
33 WITH REGARD TO AN UNAUTHORIZED INSURER, PROVIDED THAT: (A) THE INSURED'S
34 HOME STATE IS A STATE OTHER THAN THIS STATE; (B) SUCH PERSON IS OTHER-
35 WISE LICENSED TO SELL, SOLICIT OR NEGOTIATE EXCESS LINE INSURANCE IN THE
36 INSURED'S HOME STATE; AND (C) THE PERSON DOES NOT PERFORM THE DILIGENT
37 SEARCH REQUIRED BY SECTION TWO THOUSAND ONE HUNDRED EIGHTEEN OF THIS
38 ARTICLE.
39 S 6. Paragraphs 9 and 10 of subsection (k) of section 2101 of the
40 insurance law, as added by chapter 687 of the laws of 2003, are amended
41 and a new paragraph 11 is added to read as follows:
42 (9) a person who is not a resident of this state who sells, solicits
43 or negotiates a contract of insurance for commercial property/casualty
44 risks to an insured with risks located in more than one state insured
45 under that contract, provided that such person is otherwise licensed as
46 an insurance producer to sell, solicit or negotiate that insurance in
47 the state where the insured maintains its principal place of business
48 and the contract of insurance insures risks located in that state; [or]
49 (10) any salaried full-time employee who counsels or advises his or
50 her employer relative to the insurance interests of the employer or of
51 the subsidiaries or business affiliates of the employer, provided that
52 the employee does not sell or solicit insurance or receive a commis-
53 sion[.]; OR
54 (11) A PERSON WHO IS NOT A RESIDENT OF THIS STATE WHO SELLS, SOLICITS
55 OR NEGOTIATES A CONTRACT OF PROPERTY/CASUALTY INSURANCE, AS DEFINED IN
56 PARAGRAPH SIX OF SUBSECTION (X) OF THIS SECTION, TO OR FOR AN INSURED,
A. 4011--B 31
1 WITH REGARD TO AN UNAUTHORIZED INSURER, PROVIDED THAT: (A) THE INSURED'S
2 HOME STATE IS A STATE OTHER THAN THIS STATE; (B) SUCH PERSON IS OTHER-
3 WISE LICENSED TO SELL, SOLICIT OR NEGOTIATE EXCESS LINE INSURANCE IN THE
4 INSURED'S HOME STATE; AND (C) THE PERSON DOES NOT PERFORM THE DILIGENT
5 SEARCH REQUIRED BY SECTION TWO THOUSAND ONE HUNDRED EIGHTEEN OF THIS
6 ARTICLE.
7 S 7. Paragraph 1 of subsection (a) of section 2102 of the insurance
8 law, as amended by chapter 499 of the laws of 2009, is amended to read
9 as follows:
10 (1) (A) No person, firm, association or corporation shall act as an
11 insurance producer, insurance adjuster or life settlement broker in this
12 state without having authority to do so by virtue of a license issued
13 and in force pursuant to the provisions of this chapter.
14 (B) NO PERSON, FIRM, ASSOCIATION OR CORPORATION SHALL ACT AS AN EXCESS
15 LINE BROKER IN THIS STATE WITHOUT HAVING AUTHORITY TO DO SO BY VIRTUE OF
16 A LICENSE ISSUED AND IN FORCE PURSUANT TO SECTION TWO THOUSAND ONE
17 HUNDRED FIVE OF THIS ARTICLE, PROVIDED, HOWEVER, THAT SUCH PERSON, FIRM,
18 ASSOCIATION OR CORPORATION SHALL NOT BE REQUIRED TO BE LICENSED TO ACT
19 AS AN EXCESS LINE BROKER WHERE THE INSURED'S HOME STATE IS A STATE OTHER
20 THAN THIS STATE AND SUCH PERSON, FIRM, ASSOCIATION OR CORPORATION IS
21 OTHERWISE LICENSED TO SELL, SOLICIT OR NEGOTIATE EXCESS LINE INSURANCE
22 IN THE INSURED'S HOME STATE.
23 S 8. Subsection (a) of section 2105 of the insurance law, as amended
24 by chapter 626 of the laws of 2006, is amended to read as follows:
25 (a) The superintendent may issue an excess line broker's license to
26 any person, firm, association or corporation who or which [is domiciled
27 or maintains an office in this state and] is licensed as an insurance
28 broker under section two thousand one hundred four of this article, or
29 who or which is licensed as an excess line broker in the licensee's home
30 state, provided, however, that the applicant's home state grants non-re-
31 sident licenses to residents of this state on the same basis, except
32 that reciprocity is not required in regard to the placement of liability
33 insurance on behalf of a purchasing group or any of its members; author-
34 izing such person, firm, association or corporation to procure, subject
35 to the restrictions herein provided, policies of insurance from insurers
36 which are not authorized to transact business in this state of the kind
37 or kinds of insurance specified in paragraphs four through fourteen,
38 sixteen, seventeen, nineteen, twenty, twenty-two, twenty-seven, twenty-
39 eight and thirty-one of subsection (a) of section one thousand one
40 hundred thirteen of this chapter and in subsection (h) of this section,
41 provided, however, that the provisions of this section and section two
42 thousand one hundred eighteen of this article shall not apply to ocean
43 marine insurance and other contracts of insurance enumerated in
44 subsections (b) and (c) of section two thousand one hundred seventeen of
45 this article. Such license may be suspended or revoked by the super-
46 intendent whenever in his OR HER judgment such suspension or revocation
47 will best promote the interests of the people of this state.
48 S 9. Section 2117 of the insurance law is amended by adding a new
49 subsection (j) to read as follows:
50 (J) NOTWITHSTANDING SUBSECTION (A) OF THIS SECTION, A PERSON WHO IS
51 NOT A RESIDENT OF THIS STATE MAY SELL, SOLICIT OR NEGOTIATE A CONTRACT
52 OF PROPERTY/CASUALTY INSURANCE TO OR FOR AN INSURED, WITH REGARD TO AN
53 UNAUTHORIZED INSURER, PROVIDED THAT: (1) THE INSURED'S HOME STATE IS A
54 STATE OTHER THAN THIS STATE; (2) THE PERSON IS LICENSED TO SELL, SOLICIT
55 OR NEGOTIATE EXCESS LINE INSURANCE IN THE INSURED'S HOME STATE; AND (3)
56 EITHER THE PERSON IS LICENSED AS AN INSURANCE BROKER IN THIS STATE OR
A. 4011--B 32
1 THE PERSON DOES NOT PERFORM THE DILIGENT SEARCH REQUIRED BY SECTION TWO
2 THOUSAND ONE HUNDRED EIGHTEEN OF THIS ARTICLE.
3 S 10. Paragraph 1 of subsection (b) of section 2118 of the insurance
4 law, as amended by chapter 630 of the laws of 1988, is amended to read
5 as follows:
6 (1) Within [forty-five] THIRTY days after a policy is procured, a
7 licensee shall submit the declarations page or cover note of every poli-
8 cy procured under his or her license to the excess line association
9 established pursuant to section two thousand one hundred thirty of this
10 article for recording and stamping. In the event that no declarations
11 page or cover note is available to the licensee, within [forty-five]
12 THIRTY days after the policy is procured, the licensee shall submit a
13 binder to the excess line association in lieu of such declarations page
14 or cover note. In the event that a binder is submitted to the excess
15 line association, the licensee shall submit the declarations page or
16 cover note to the excess line association promptly upon receipt. Every
17 insurance document submitted to the excess line association pursuant to
18 this subsection shall set forth:
19 (A) the name and address of the insured;
20 (B) the gross premium charged;
21 (C) the name of the unauthorized insurer; and
22 (D) the kind of insurance procured.
23 S 10-a. Paragraphs 8 and 9 of subsection (b) of section 2118 of the
24 insurance law are REPEALED.
25 S 11. Subparagraph (A) of paragraph 3 of subsection (b) of section
26 2118 of the insurance law, as amended by chapter 498 of the laws of
27 1996, is amended and a new subparagraph (F) is added to read as follows:
28 (A) [The] EXCEPT AS PROVIDED IN SUBPARAGRAPH (F) OF THIS PARAGRAPH,
29 submission of insurance documents to the excess line association shall
30 be accompanied by a statement subscribed to, and affirmed by, the licen-
31 see or sublicensee as true under the penalties of perjury that, after
32 diligent effort, the full amount of insurance required could not be
33 procured, from authorized insurers, each of which is authorized to write
34 insurance of the kind requested and which the licensee has reason to
35 believe might consider writing the type of coverage or class of insur-
36 ance involved, and further showing that the amount of insurance procured
37 from an unauthorized insurer is only the excess over the amount procura-
38 ble from an authorized insurer. The licensee, however, shall be excused
39 from affirming that a diligent effort, as defined above, was made to
40 procure the coverage from authorized insurers if the licensee's affida-
41 vit is accompanied by the affidavit of another broker involved in the
42 placement affirming as true under the penalties of perjury that, after
43 diligent effort by the affirming broker, the required insurance could
44 not be procured from an authorized insurer which the affirming broker
45 had reason to believe might consider writing the type of coverage or
46 class of insurance involved. The licensee and the affirming broker shall
47 be excused from affirming that a diligent effort was made if the super-
48 intendent determines, pursuant to paragraph four of this subsection,
49 that no declinations are required.
50 (F) A LICENSEE SEEKING TO PROCURE OR PLACE INSURANCE IN THIS STATE FOR
51 AN EXEMPT COMMERCIAL PURCHASER SHALL NOT BE REQUIRED TO SATISFY ANY
52 REQUIREMENT OF THIS STATE TO MAKE A DUE DILIGENCE SEARCH TO DETERMINE
53 WHETHER THE FULL AMOUNT OR TYPE OF INSURANCE SOUGHT BY THE EXEMPT
54 COMMERCIAL PURCHASER CAN BE OBTAINED FROM AUTHORIZED INSURERS IF:
55 (I) THE LICENSEE PROCURING OR PLACING THE EXCESS LINE INSURANCE HAS
56 DISCLOSED TO THE EXEMPT COMMERCIAL PURCHASER THAT THE INSURANCE MAY OR
A. 4011--B 33
1 MAY NOT BE AVAILABLE FROM THE AUTHORIZED MARKET THAT MAY PROVIDE GREATER
2 PROTECTION WITH MORE REGULATORY OVERSIGHT; AND
3 (II) THE EXEMPT COMMERCIAL PURCHASER HAS SUBSEQUENTLY REQUESTED IN
4 WRITING THAT THE LICENSEE PROCURE OR PLACE THE INSURANCE FROM AN UNAU-
5 THORIZED INSURER.
6 S 12. Subsection (d) of section 2118 of the insurance law, as amended
7 by chapter 220 of the laws of 1986, paragraph 1 as amended by chapter
8 190 of the laws of 1990, is amended to read as follows:
9 (d) (1) [Every] WHERE THIS STATE IS THE INSURED'S HOME STATE, A
10 person, firm, association or corporation licensed pursuant to the
11 provisions of section two thousand one hundred five of this article
12 shall pay to the superintendent a sum equal to three and six-tenths
13 percent of the gross premiums charged the insureds by the insurers for
14 insurance procured by such licensee pursuant to such license, less the
15 amount of such premiums returned to such insureds. [Where the insurance
16 covers property or risks located or resident both in and out of this
17 state, the sum payable shall be computed on that portion of the gross
18 premiums allocated to this state pursuant to subsection (b) of section
19 nine thousand one hundred two of this chapter less the amount of gross
20 premiums allocated to this state and returned to the insured.]
21 (2) The amount of such payments which represents a sum equal to three
22 percent of fire insurance premiums shall be distributed by the super-
23 intendent as prescribed in section nine thousand one hundred five of
24 this chapter, and the balance thereof shall be paid over by the super-
25 intendent to the state treasurer.
26 (3) Such licensee shall be required to make such payments to the
27 superintendent QUARTERLY on the fifteenth day of [March of each year]:
28 (A) FEBRUARY FOR THE QUARTER ENDING THE PRECEDING THIRTY-FIRST DAY OF
29 DECEMBER; (B) MAY FOR THE QUARTER ENDING THE PRECEDING THIRTY-FIRST DAY
30 OF MARCH; (C) AUGUST FOR THE QUARTER ENDING THE PRECEDING THIRTIETH DAY
31 OF JUNE; AND (D) NOVEMBER FOR THE QUARTER ENDING THE PRECEDING THIRTIETH
32 DAY OF SEPTEMBER, for the taxes on all policies procured by such licen-
33 see, pursuant to such license, during the next preceding [calendar year]
34 QUARTER, and on EACH such PAYMENT date such licensee shall also file
35 with the superintendent a return in the form prescribed by the super-
36 intendent, showing such information as may be necessary for the proper
37 distribution of such payments.
38 S 13. Paragraph 5 of subsection (a) of section 2130 of the insurance
39 law, as added by chapter 630 of the laws of 1988, is amended to read as
40 follows:
41 (5) prepare and deliver to each licensee and to the superintendent
42 [annually] the reports of excess line business ON THE SEVENTH DAY OF:
43 (A) FEBRUARY FOR THE QUARTER ENDING THE PRECEDING THIRTY-FIRST DAY OF
44 DECEMBER; (B) MAY FOR THE QUARTER ENDING THE PRECEDING THIRTY-FIRST DAY
45 OF MARCH; (C) AUGUST FOR THE QUARTER ENDING THE PRECEDING THIRTIETH DAY
46 OF JUNE; AND (D) NOVEMBER FOR THE QUARTER ENDING THE PRECEDING THIRTIETH
47 DAY OF SEPTEMBER, which reports shall include a delineation of the
48 classes and kinds of business procured during the preceding calendar
49 year in such form as the superintendent may prescribe;
50 S 14. Section 9102 of the insurance law, as amended by chapter 190 of
51 the laws of 1990, subsection (c) as amended by chapter 73 of the laws of
52 1991, is amended to read as follows:
53 S 9102. Allocation of premiums. [(a)] In determining the amount of
54 direct premiums taxable in this state, all such premiums written,
55 procured, or received in this state shall be deemed written on property
A. 4011--B 34
1 or risks located or resident in this state except such premiums properly
2 allocated and reported as taxable premiums of any other state or states.
3 [(b) (1) In determining the amount of gross premiums taxable in this
4 state pursuant to paragraph one of subsection (d) of section two thou-
5 sand one hundred eighteen of this chapter, where a placement of excess
6 line insurance covers property or risks located or resident both in and
7 out of this state, the sum paid to the superintendent shall be computed
8 on that portion of the policy premium that is attributable to property
9 or risks located or resident in this state, as determined by reference
10 to an allocation schedule prescribed by the superintendent in a regu-
11 lation.
12 (2) If the allocation schedule does not identify a classification
13 appropriate to the property or risk being insured, an alternative method
14 of equitable allocation shall be used for such coverage. In that circum-
15 stance, documented evidence of the underwriting bases and other criteria
16 used by the insurer shall be given significant weight by the superinten-
17 dent.
18 (3) The licensee shall report the method of allocation utilized in a
19 form and in a manner prescribed by the superintendent in a regulation.
20 Where the licensee bases the allocation on an alternative method of
21 equitable allocation, such licensee shall provide additional information
22 in support of the allocation as the superintendent may require.
23 (4) If the superintendent reasonably determines that the information
24 provided is insufficient to substantiate the method of allocation or
25 that the method used is incorrect, the superintendent shall determine
26 the sum to be paid in accordance with the method prescribed by the
27 superintendent in the regulation. The superintendent's determination of
28 the sum to be paid shall finally and irrevocably fix the tax unless,
29 within thirty days of notification of the superintendent's determi-
30 nation, the licensee requests a hearing to dispute such determination.
31 (c) (1) Any licensee who allocated the premium tax for any of the six
32 years prior to the effective date of this subsection shall not be liable
33 for the payment of any additional premium tax that would have been due
34 had the licensee not allocated, unless the superintendent determines
35 that the method of allocation was inequitable.
36 (2) The superintendent's determination under this subsection shall be
37 in accordance with the procedures in paragraph four of subsection (b) of
38 this section. Documented evidence of the underwriting bases and other
39 criteria used by the insurer shall be given significant weight by the
40 superintendent.
41 (3) Nothing in this subsection shall entitle a licensee to a refund of
42 taxes previously paid.]
43 S 15. The general municipal law is amended by adding a new section 25
44 to read as follows:
45 S 25. PROCUREMENT OF EXCESS LINE INSURANCE. NOTWITHSTANDING SUBPARA-
46 GRAPH (F) OF PARAGRAPH THREE OF SUBSECTION (B) OF SECTION TWO THOUSAND
47 ONE HUNDRED EIGHTEEN OF THE INSURANCE LAW, A MUNICIPALITY WITH A POPU-
48 LATION OF LESS THAN ONE HUNDRED THOUSAND PERSONS MAY NOT REQUEST THAT AN
49 EXCESS LINE BROKER PROCURE OR PLACE INSURANCE FROM AN UNAUTHORIZED
50 INSURER UNLESS THE EXCESS LINE BROKER OBTAINS THE DECLINATIONS REQUIRED
51 BY SUBSECTION (B) OF SECTION TWO THOUSAND ONE HUNDRED EIGHTEEN OF THE
52 INSURANCE LAW.
53 S 16. Subdivision 1 of section 171-a of the tax law, as amended by
54 section 1 of part R of chapter 60 of the laws of 2004, is amended to
55 read as follows:
A. 4011--B 35
1 1. All taxes, interest, penalties and fees collected or received by
2 the commissioner or the commissioner's duly authorized agent under arti-
3 cles nine (except section one hundred eighty-two-a thereof and except as
4 otherwise provided in section two hundred five thereof), nine-A,
5 twelve-A (except as otherwise provided in section two hundred eighty-
6 four-d thereof), thirteen, thirteen-A (except as otherwise provided in
7 section three hundred twelve thereof), eighteen, nineteen, twenty
8 (except as otherwise provided in section four hundred eighty-two there-
9 of), twenty-one, twenty-two, twenty-six, twenty-six-B, twenty-eight
10 (except as otherwise provided in section eleven hundred two or eleven
11 hundred three thereof), twenty-eight-A, thirty-one (except as otherwise
12 provided in section fourteen hundred twenty-one thereof), thirty-two,
13 thirty-three and thirty-three-A of this chapter shall be deposited daily
14 in one account with such responsible banks, banking houses or trust
15 companies as may be designated by the comptroller, to the credit of the
16 comptroller. Such an account may be established in one or more of such
17 depositories. Such deposits shall be kept separate and apart from all
18 other money in the possession of the comptroller. The comptroller shall
19 require adequate security from all such depositories. Of the total
20 revenue collected or received under such articles of this chapter, the
21 comptroller shall retain in the comptroller's hands such amount as the
22 commissioner may determine to be necessary for refunds or reimbursements
23 under such articles of this chapter [and article ten thereof] out of
24 which amount the comptroller shall pay any refunds or reimbursements to
25 which taxpayers shall be entitled under the provisions of such articles
26 of this chapter [and article ten thereof]. The commissioner and the
27 comptroller shall maintain a system of accounts showing the amount of
28 revenue collected or received from each of the taxes imposed by such
29 articles. The comptroller, after reserving the amount to pay such
30 refunds or reimbursements, shall, on or before the tenth day of each
31 month, pay into the state treasury to the credit of the general fund all
32 revenue deposited under this section during the preceding calendar month
33 and remaining to the comptroller's credit on the last day of such
34 preceding month, (i) except that the comptroller shall pay to the state
35 department of social services that amount of overpayments of tax imposed
36 by article twenty-two of this chapter and the interest on such amount
37 which is certified to the comptroller by the commissioner as the amount
38 to be credited against past-due support pursuant to subdivision six of
39 section one hundred seventy-one-c of this [chapter] ARTICLE, (ii) and
40 except that the comptroller shall pay to the New York state higher
41 education services corporation and the state university of New York or
42 the city university of New York respectively that amount of overpayments
43 of tax imposed by article twenty-two of this chapter and the interest on
44 such amount which is certified to the comptroller by the commissioner as
45 the amount to be credited against the amount of defaults in repayment of
46 guaranteed student loans and state university loans or city university
47 loans pursuant to subdivision five of section one hundred seventy-one-d
48 and subdivision six of section one hundred seventy-one-e of this [chap-
49 ter] ARTICLE, (iii) and except further that, notwithstanding any law,
50 the comptroller shall credit to the revenue arrearage account, pursuant
51 to section ninety-one-a of the state finance law, that amount of over-
52 payment of tax imposed by article nine, nine-A, twenty-two, thirty,
53 thirty-A, thirty-B, thirty-two or thirty-three of this chapter, and any
54 interest thereon, which is certified to the comptroller by the commis-
55 sioner as the amount to be credited against a past-due legally enforcea-
56 ble debt owed to a state agency pursuant to paragraph (a) of subdivision
A. 4011--B 36
1 six of section one hundred seventy-one-f of this article, provided,
2 however, he shall credit to the special offset fiduciary account, pursu-
3 ant to section ninety-one-c of the state finance law, any such amount
4 creditable as a liability as set forth in paragraph (b) of subdivision
5 six of section one hundred seventy-one-f of this article, (iv) and
6 except further that the comptroller shall pay to the city of New York
7 that amount of overpayment of tax imposed by article nine, nine-A, twen-
8 ty-two, thirty, thirty-A, thirty-B, thirty-two, or thirty-three of this
9 chapter and any interest thereon that is certified to the comptroller by
10 the commissioner as the amount to be credited against city of New York
11 tax warrant judgment debt pursuant to section one hundred seventy-one-l
12 of this article, (v) and except further that the comptroller shall pay
13 to a non-obligated spouse that amount of overpayment of tax imposed by
14 article twenty-two of this chapter and the interest on such amount which
15 has been credited pursuant to section one hundred seventy-one-c, one
16 hundred seventy-one-d, one hundred seventy-one-e, one hundred seventy-
17 one-f or one hundred seventy-one-l of this article and which is certi-
18 fied to the comptroller by the commissioner as the amount due such non-
19 obligated spouse pursuant to paragraph six of subsection (b) of section
20 six hundred fifty-one of this chapter; and (vi) the comptroller shall
21 deduct a like amount which the comptroller shall pay into the treasury
22 to the credit of the general fund from amounts subsequently payable to
23 the department of social services, the state university of New York, the
24 city university of New York, or the higher education services corpo-
25 ration, or the revenue arrearage account or special offset fiduciary
26 account pursuant to section ninety-one-a or ninety-one-c of the state
27 finance law, as the case may be, whichever had been credited the amount
28 originally withheld from such overpayment, and (vii) with respect to
29 amounts originally withheld from such overpayment pursuant to section
30 one hundred seventy-one-l of this article and paid to the city of New
31 York, the comptroller shall collect a like amount from the city of New
32 York.
33 S 17. Subdivision (c) of section 1550 of the tax law, as added by
34 chapter 190 of the laws of 1990, is amended to read as follows:
35 (c) The term "taxable insurance contract" means a contract of insur-
36 ance of the [type] KIND described in [paragraphs four through fourteen,
37 sixteen, seventeen, nineteen, twenty and twenty-two of] subsection (a)
38 of section [one thousand one hundred thirteen] TWO THOUSAND ONE HUNDRED
39 FIVE of the insurance law [that covers risks located or resident within
40 this state].
41 S 18. Section 1550 of the tax law is amended by adding a new subdivi-
42 sion (d) to read as follows:
43 (D) THE TERM "HOME STATE" MEANS:
44 (1) IN GENERAL. EXCEPT AS PROVIDED IN PARAGRAPHS TWO AND THREE OF THIS
45 SUBDIVISION, THE TERM "HOME STATE" MEANS, WITH RESPECT TO AN INSURED:
46 (A) THE STATE IN WHICH AN INSURED MAINTAINS ITS PRINCIPAL PLACE OF
47 BUSINESS OR, IN THE CASE OF AN INDIVIDUAL, THE INDIVIDUAL'S PRINCIPAL
48 RESIDENCE;
49 (B) IF ONE HUNDRED PERCENT OF THE INSURED RISK IS LOCATED OUT OF THE
50 STATE REFERRED TO IN SUBPARAGRAPH (A) OF THIS PARAGRAPH, THE STATE TO
51 WHICH THE GREATEST PERCENTAGE OF THE INSURED'S TAXABLE PREMIUM FOR THAT
52 INSURANCE CONTRACT IS ALLOCATED;
53 (C) IF MORE THAN ONE INSURED FROM AN AFFILIATED GROUP, AS DEFINED IN
54 SECTION TWO THOUSAND ONE HUNDRED ONE OF THE INSURANCE LAW, ARE NAMED
55 INSUREDS ON A SINGLE INSURANCE CONTRACT, THE HOME STATE OF THE MEMBER OF
A. 4011--B 37
1 THE AFFILIATED GROUP THAT HAS THE LARGEST PERCENTAGE OF PREMIUM ATTRI-
2 BUTED TO IT UNDER SUCH INSURANCE CONTRACT; OR
3 (D) IN THE CASE OF A GROUP POLICY:
4 (I) IF THE GROUP POLICYHOLDER PAYS ONE HUNDRED PERCENT OF THE PREMIUM
5 FROM ITS OWN FUNDS, THE HOME STATE, AS DETERMINED PURSUANT TO SUBPARA-
6 GRAPH (A) OF THIS PARAGRAPH, OF THE GROUP POLICYHOLDER; OR
7 (II) IF THE GROUP POLICYHOLDER DOES NOT PAY ONE HUNDRED PERCENT OF THE
8 PREMIUM FROM ITS OWN FUNDS, THE HOME STATE, AS DETERMINED PURSUANT TO
9 SUBPARAGRAPH (A) OF THIS PARAGRAPH, OF THE GROUP MEMBER;
10 (2) "PRINCIPAL PLACE OF BUSINESS" MEANS, WITH RESPECT TO DETERMINING
11 THE HOME STATE OF THE INSURED, THE STATE WHERE:
12 (A) THE INSURED MAINTAINS ITS HEADQUARTERS AND WHERE THE INSURED'S
13 HIGH-LEVEL OFFICERS DIRECT, CONTROL AND COORDINATE THE BUSINESS ACTIV-
14 ITIES; OR
15 (B) IF THE INSURED'S HIGH-LEVEL OFFICERS DIRECT, CONTROL AND COORDI-
16 NATE THE BUSINESS ACTIVITIES IN MORE THAN ONE STATE, OR IF THE INSURED'S
17 PRINCIPAL PLACE OF BUSINESS IS LOCATED OUTSIDE ANY STATE, THE STATE TO
18 WHICH THE GREATEST PERCENTAGE OF THE INSURED'S TAXABLE PREMIUM FOR THAT
19 INSURANCE CONTRACT IS ALLOCATED.
20 (3) "PRINCIPAL RESIDENCE" MEANS, WITH RESPECT TO DETERMINING THE HOME
21 STATE OF THE INSURED, THE STATE WHERE:
22 (A) THE INSURED RESIDES FOR THE GREATEST NUMBER OF DAYS DURING A
23 CALENDAR YEAR; OR
24 (B) IF THE INSURED'S PRINCIPAL RESIDENCE IS LOCATED OUTSIDE ANY STATE,
25 THE STATE TO WHICH THE GREATEST PERCENTAGE OF THE INSURED'S TAXABLE
26 PREMIUM FOR THAT INSURANCE CONTRACT IS ALLOCATED.
27 S 19. Section 1551 of the tax law, as amended by chapter 73 of the
28 laws of 1991, is amended to read as follows:
29 S 1551. Imposition of tax. There is hereby imposed on any person
30 WHOSE HOME STATE IS NEW YORK AND who purchases or renews a taxable
31 insurance contract from an insurer not authorized to transact business
32 in this state under a certificate of authority from the superintendent
33 of insurance a tax at the rate of three and six-tenths percent of the
34 premiums paid or to be paid, less returns thereon, for such insurance.
35 Nothing in this article modifies or abrogates any provision of the
36 insurance law.
37 S 20. Section 1552 of the tax law, as added by chapter 190 of the laws
38 of 1990, is amended to read as follows:
39 S 1552. Allocation. Where the taxable insurance contract covers risks
40 located or resident both within and without this state[, the amount of
41 premiums allocable to risks resident or located within this state shall
42 be determined pursuant to rules and regulations of the commissioner of
43 taxation and finance. In promulgating such rules and regulations, the
44 commissioner of taxation and finance shall give due consideration to the
45 rules and regulations promulgated by the superintendent of insurance
46 pursuant to subsection (b) of section nine thousand one hundred two of
47 the insurance law] AND THE TAXPAYER'S HOME STATE IS NEW YORK, ONE
48 HUNDRED PERCENT OF PREMIUMS SHALL BE ALLOCABLE TO THIS STATE.
49 S 21. This act shall take effect July 21, 2011; provided, however,
50 that:
51 (1) sections one, two and three of this act shall take effect July 16,
52 2011;
53 (2) the amendments to subsection (b) of section 2118 of the insurance
54 law made by sections ten and eleven of this act shall not affect the
55 expiration and reversion of such subsection and shall be deemed to
56 expire therewith;
A. 4011--B 38
1 (3) the amendments to paragraph 5 of subsection (a) of section 2130 of
2 the insurance law made by section thirteen of this act shall not affect
3 the expiration of such section and shall be deemed to expire therewith;
4 (4) a person, firm, association or corporation licensed pursuant to
5 the provisions of section 2105 of the insurance law shall make the
6 payments required by subsection (d) of section 2118 of the insurance law
7 to the superintendent of insurance on or before September 19, 2011 for
8 the taxes on the policies procured by such licensee, pursuant to such
9 license, between January 1, 2011 and July 20, 2011; and
10 (5) effective immediately, the addition, amendment, or repeal of any
11 rules and regulations necessary for the implementation of this act on
12 its effective date are authorized and directed to be made and completed
13 on or before such effective date.
14 PART J
15 Section 1. Section 51 of chapter 298 of the laws of 1985, amending the
16 tax law relating to the franchise tax on banking corporations imposed by
17 the tax law, authorized to be imposed by any city having a population of
18 one million or more by chapter 772 of the laws of 1966 and imposed by
19 the administrative code of the city of New York and relating to other
20 provisions of the tax law, chapter 883 of the laws of 1975 and the
21 administrative code of the city of New York which relates to such fran-
22 chise tax, as amended by chapter 67 of the laws of 2010, is amended to
23 read as follows:
24 S 51. This act shall take effect immediately and shall apply to taxa-
25 ble years beginning on or after January 1, 1985[, except that:
26 (a) sections one through eight shall not apply to taxable years begin-
27 ning on or after January 1, 2011;
28 (b) sections nine, twelve, the amendment made to paragraph 9 of
29 subsection (a) of section 1452 of the tax law by section thirteen,
30 sections fifteen, sixteen, eighteen, nineteen, twenty, twenty-three,
31 twenty-seven, thirty and thirty-two, the amendment made to paragraph 9
32 of subdivision (a) of section 11-640 of the administrative code of the
33 city of New York by section thirty-three, sections thirty-five, thirty-
34 six, thirty-eight, thirty-nine, forty, and forty-five 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.
37 (c) sections twenty-one, twenty-two, twenty-four, forty-one and
38 forty-two shall not apply to corporations other than savings banks and
39 savings and loan associations for taxable years beginning on or after
40 January 1, 2011, provided, however, that the provisions of such sections
41 which relate to the alternative minimum tax measured by taxable assets
42 shall continue to apply to all taxpayers for taxable years beginning on
43 or after January 1, 2011;
44 (d) the amendment to the section heading and the opening paragraph of
45 section 11-643.3 of the administrative code of the city of New York made
46 by section forty-three shall not apply to corporations other than
47 savings banks and savings and loan associations for taxable years begin-
48 ning on or after January 1, 2011 with respect to those provisions of
49 such section 11-643.3 which relate to the basic tax measured by entire
50 net income; and
51 (e) section twenty-eight, and the addition of new section 11-643.5 of
52 the administrative code of the city of New York made by section forty-
53 four shall not apply to corporations other than savings banks and
54 savings and loan associations for taxable years beginning on or after
A. 4011--B 39
1 January 1, 2011, provided, however, that the provisions of such sections
2 which relate to the alternative minimum taxes measured by assets, issued
3 capital stock and one hundred twenty-five dollars shall continue to
4 apply to all taxpayers for taxable years beginning on or after January
5 1, 2011].
6 S 2. Subdivisions (d) and (f) of section 110 of chapter 817 of the
7 laws of 1987, amending the tax law and the environmental conservation
8 law, constituting the business tax reform and rate reduction act of
9 1987, as amended by chapter 67 of the laws of 2010, are amended to read
10 as follows:
11 (d) The provisions of section sixty-seven of this act except insofar
12 as it amends paragraph 10 of subsection (b) of section 1453 of the tax
13 law, seventy-one and seventy-four shall apply to taxable years beginning
14 after December 31, 1986[, provided, however, that new paragraphs 11 and
15 12 of subsection (b) of section 1453 of the tax law as added by section
16 sixty-seven of this act, the amendments made by section seventy-one of
17 this act, and new subsection (i) of section 1453 of the tax law as added
18 by section seventy-four of this act shall not apply to taxable years
19 beginning on or after January 1, 2011];
20 (f) The provisions of section one hundred four of this act shall apply
21 to taxable years beginning after December 31, 1986[, and shall not apply
22 to corporations other than savings banks and savings and loan associ-
23 ations for taxable years beginning on or after January 1, 2011,
24 provided, however, that the provisions of such section which relate to
25 the alternative minimum tax measured by taxable assets shall continue to
26 apply to all taxpayers for taxable years beginning on or after January
27 1, 2011].
28 S 3. Subdivisions (c) and (d) of section 68 of chapter 525 of the
29 laws of 1988, amending the tax law and the administrative code of the
30 city of New York relating to the imposition of taxes in the city of New
31 York, as amended by chapter 67 of the laws of 2010, are amended to read
32 as follows:
33 (c) The provisions of sections one, thirty-one, thirty-two, thirty-
34 three, thirty-six, thirty-seven, forty through forty-five, forty-seven
35 and forty-eight of this act shall apply to taxable years beginning after
36 December 31, 1986[, provided, however, that the amendments made by
37 sections thirty-six and forty-one of this act, and new subdivision (i)
38 of section 11-641 of the administrative code of the city of New York as
39 added by section forty-four of this act shall not apply to taxable years
40 beginning on or after January 1, 2011];
41 (d) The provisions of section forty-six of this act shall apply to
42 taxable years beginning after December 31, 1986[, and shall not apply to
43 corporations other than savings banks and savings and loan associations
44 for taxable years beginning on or after January 1, 2011, provided,
45 however, that the provisions of such section which relate to the alter-
46 native minimum tax measured by taxable assets shall continue to apply to
47 all taxpayers for taxable years beginning on or after January 1, 2011];
48 S 4. Paragraphs 1 and 2 of subsection (m) of section 1452 of the tax
49 law, as amended by chapter 24 of the laws of 2010, are amended to read
50 as follows:
51 (1) Notwithstanding anything to the contrary contained in this section
52 other than subsection (n) of this section, a corporation that was in
53 existence before January first, two thousand [ten] ELEVEN and was
54 subject to tax under article nine-A of this chapter for its last taxable
55 year beginning before January first, two thousand [ten] ELEVEN, shall
56 continue to be taxable under such article for all taxable years begin-
A. 4011--B 40
1 ning on or after January first, two thousand [ten] ELEVEN and before
2 January first, two thousand [eleven] THIRTEEN. The preceding sentence
3 shall not apply to any taxable year during which such corporation is a
4 banking corporation described in paragraphs one through eight of
5 subsection (a) of this section. Notwithstanding anything to the contrary
6 contained in this section other than subsection (n) of this section, a
7 banking corporation or corporation that was in existence before January
8 first, two thousand [ten] ELEVEN and was subject to tax under this arti-
9 cle for its last taxable year beginning before January first, two thou-
10 sand [ten] ELEVEN, shall continue to be taxable under this article for
11 all taxable years beginning on or after January first, two thousand
12 [ten] ELEVEN and before January first, two thousand [eleven] THIRTEEN or
13 in which the corporation satisfies the requirements for a corporation to
14 elect to be taxable under this article. Provided further, that nothing
15 in this subsection shall prohibit a corporation that elected pursuant to
16 subsection (d) of this section to be taxable under article nine-A of
17 this chapter from revoking that election in accordance with such
18 subsection (d).
19 For purposes of this paragraph, a corporation shall be considered to
20 be subject to tax under article nine-A of this chapter for a taxable
21 year if such corporation was not a taxpayer but was properly included in
22 a combined report filed pursuant to section two hundred eleven of this
23 chapter for such taxable year and a corporation shall be considered to
24 be subject to tax under this article for a taxable year if such corpo-
25 ration was not a taxpayer but was properly included in a combined return
26 filed pursuant to subsection (f) or (g) of section fourteen hundred
27 sixty-two of this article for such taxable year. A corporation that was
28 in existence before January first, two thousand [ten] ELEVEN but first
29 becomes a taxpayer in a taxable year beginning on or after January
30 first, two thousand [ten] ELEVEN and before January first, two thousand
31 [eleven] THIRTEEN, shall be considered for purposes of this paragraph to
32 have been subject to tax under article nine-A of this chapter for its
33 last taxable year beginning before January first, two thousand [ten]
34 ELEVEN if such corporation would have been subject to tax under such
35 article for such taxable year if it had been a taxpayer during such
36 taxable year. A corporation that was in existence before January first,
37 two thousand [ten] ELEVEN but first becomes a taxpayer in a taxable year
38 beginning on or after January first, two thousand [ten] ELEVEN and
39 before January first, two thousand [eleven] THIRTEEN, shall be consid-
40 ered for purposes of this paragraph to have been subject to tax under
41 this article for its last taxable year beginning before January first,
42 two thousand [ten] ELEVEN if such corporation would have been subject to
43 tax under this article for such taxable year if it had been a taxpayer
44 during such taxable year.
45 (2) Notwithstanding anything to the contrary contained in this section
46 other than subsection (n) of this section, a corporation formed on or
47 after January first, two thousand [ten] ELEVEN and before January first,
48 two thousand [eleven] THIRTEEN may elect to be subject to tax under this
49 article or under article nine-A of this chapter for its first taxable
50 year beginning on or after January first, two thousand [ten] ELEVEN and
51 before January first, two thousand [eleven] THIRTEEN in which either (i)
52 sixty-five percent or more of its voting stock is owned or controlled,
53 directly or indirectly by a financial holding company, provided the
54 corporation whose voting stock is so owned or controlled is principally
55 engaged in activities that are described in section 4(k)(4) or 4(k)(5)
56 of the federal bank holding company act of nineteen hundred fifty-six,
A. 4011--B 41
1 as amended and the regulations promulgated pursuant to the authority of
2 such section, or (ii) it is a financial subsidiary. An election under
3 this paragraph may not be made by a corporation described in paragraphs
4 one through eight of subsection (a) of this section or in subsection (e)
5 of this section. In addition, an election under this paragraph may not
6 be made by a corporation that is a party to a reorganization, as defined
7 in subsection (a) of section 368 of the internal revenue code of 1986,
8 as amended, of a corporation described in paragraph one of this
9 subsection if both corporations were sixty-five percent or more owned or
10 controlled, directly or indirectly, by the same interests at the time of
11 the reorganization.
12 An election under this paragraph must be made by the taxpayer on or
13 before the due date for filing its return (determined with regard to
14 extensions of time for filing) for the applicable taxable year. The
15 election to be taxed under article nine-A of this chapter shall be made
16 by the taxpayer by filing the report required pursuant to section two
17 hundred eleven of this chapter and the election to be taxed under this
18 article shall be made by the taxpayer by filing the return required
19 pursuant to section fourteen hundred sixty-two of this article. Any
20 election made pursuant to this paragraph shall be irrevocable and shall
21 apply to each subsequent taxable year beginning on or after January
22 first, two thousand [ten] ELEVEN and before January first, two thousand
23 [eleven] THIRTEEN, provided that the stock ownership and activities
24 requirements described in subparagraph (i) of this paragraph are met or
25 such corporation described in subparagraph (ii) of this paragraph
26 continues as a financial subsidiary.
27 S 5. Paragraphs 1 and 2 of subdivision (l) of section 11-640 of the
28 administrative code of the city of New York, as amended by chapter 24 of
29 the laws of 2010, are amended to read as follows:
30 (1) Notwithstanding anything to the contrary contained in this section
31 other than subdivision (m) of this section, a corporation that was in
32 existence before January first, two thousand [ten] ELEVEN and was
33 subject to tax under subchapter two of this chapter for its last taxable
34 year beginning before January first, two thousand [ten] ELEVEN, shall
35 continue to be taxable under such subchapter for all taxable years
36 beginning on or after January first, two thousand [ten] ELEVEN and
37 before January first, two thousand [eleven] THIRTEEN. The preceding
38 sentence shall not apply to any taxable year during which such corpo-
39 ration is a banking corporation described in paragraphs one through
40 eight of subdivision (a) of this section. Notwithstanding anything to
41 the contrary contained in this section other than subdivision (m) of
42 this section, a banking corporation or corporation that was in existence
43 before January first, two thousand [ten] ELEVEN and was subject to tax
44 under this subchapter for its last taxable year beginning before January
45 first, two thousand [ten] ELEVEN, shall continue to be taxable under
46 this subchapter for all taxable years beginning on or after January
47 first, two thousand [ten] ELEVEN and before January first, two thousand
48 [eleven] THIRTEEN or in which the corporation satisfies the requirements
49 for a corporation to elect to be taxable under this subchapter. Provided
50 further, that nothing in this subdivision shall prohibit a corporation
51 that elected pursuant to subdivision (d) of this section to be taxable
52 under subchapter two of this chapter from revoking that election in
53 accordance with subdivision (d) of this section. For purposes of this
54 paragraph, a corporation shall be considered to be subject to tax under
55 subchapter two of this chapter for a taxable year if such corporation
56 was not a taxpayer but was properly included in a combined report filed
A. 4011--B 42
1 pursuant to subdivision four of section 11-605 of this chapter for such
2 taxable year and a corporation shall be considered to be subject to tax
3 under this subchapter for a taxable year if such corporation was not a
4 taxpayer but was properly included in a combined report filed pursuant
5 to subdivision (f) or (g) of section 11-646 of this part for such taxa-
6 ble year. A corporation that was in existence before January first, two
7 thousand [ten] ELEVEN but first becomes a taxpayer in a taxable year
8 beginning on or after January first, two thousand [ten] ELEVEN and
9 before January first, two thousand [eleven] THIRTEEN, shall be consid-
10 ered for purposes of this paragraph to have been subject to tax under
11 subchapter two of this chapter for its last taxable year beginning
12 before January first, two thousand [ten] ELEVEN if such corporation
13 would have been subject to tax under such subchapter for such taxable
14 year if it had been a taxpayer during such taxable year. A corporation
15 that was in existence before January first, two thousand [ten] ELEVEN
16 but first becomes a taxpayer in a taxable year beginning on or after
17 January first, two thousand [ten] ELEVEN and before January first, two
18 thousand [eleven] THIRTEEN, shall be considered for purposes of this
19 paragraph to have been subject to tax under this subchapter for its last
20 taxable year beginning before January first, two thousand [ten] ELEVEN
21 if such corporation would have been subject to tax under this subchapter
22 for such taxable year if it had been a taxpayer during such taxable
23 year.
24 (2) Notwithstanding anything to the contrary contained in this section
25 other than subdivision (m) of this section, a corporation formed on or
26 after January first, two thousand [ten] ELEVEN and before January first,
27 two thousand [eleven] THIRTEEN may elect to be subject to tax under this
28 subchapter or under subchapter two of this chapter for its first taxable
29 year beginning on or after January first, two thousand [ten] ELEVEN and
30 before January first, two thousand [eleven] THIRTEEN in which either (i)
31 sixty-five percent or more of its voting stock is owned or controlled,
32 directly or indirectly by a financial holding company, provided the
33 corporation whose voting stock is so owned or controlled is principally
34 engaged in activities that are described in section 4(k)(4) or 4(k)(5)
35 of the federal bank holding company act of nineteen hundred fifty-six,
36 as amended and the regulations promulgated pursuant to the authority of
37 such section or (ii) it is a financial subsidiary. An election under
38 this paragraph may not be made by a corporation described in paragraphs
39 one through eight of subdivision (a) of this section or in subdivision
40 (e) of this section. In addition, an election under this paragraph may
41 not be made by a corporation that is a party to a reorganization, as
42 defined in subsection (a) of section 368 of the internal revenue code of
43 1986, as amended, of a corporation described in paragraph one of this
44 subdivision if both corporations were sixty-five percent or more owned
45 or controlled, directly or indirectly by the same interests at the time
46 of the reorganization.
47 An election under this paragraph must be made by the taxpayer on or
48 before the due date for filing its return (determined with regard to
49 extensions of time for filing) for the applicable taxable year. The
50 election to be taxed under subchapter two of this chapter shall be made
51 by the taxpayer by filing the return required pursuant to subdivision
52 one of section 11-605 of this chapter and the election to be taxed under
53 this subchapter shall be made by the taxpayer by filing the return
54 required pursuant to subdivision (a) of section 11-646 of this part. Any
55 election made pursuant to this paragraph shall be irrevocable and shall
56 apply to each subsequent taxable year beginning on or after January
A. 4011--B 43
1 first, two thousand [ten] ELEVEN and before January first, two thousand
2 [eleven] THIRTEEN, provided that the stock ownership and activities
3 requirements described in subparagraph (i) of this paragraph are met or
4 such corporation described in subparagraph (ii) of this paragraph
5 continues as a financial subsidiary.
6 S 6. Subparagraph (iv) of paragraph 2 of subdivision (f) of section
7 1462 of the tax law, as amended by chapter 24 of the laws of 2010, is
8 amended to read as follows:
9 (iv) (A) Notwithstanding any provision of this paragraph, any bank
10 holding company exercising its corporate franchise or doing business in
11 the state may make a return on a combined basis without seeking the
12 permission of the commissioner with any banking corporation exercising
13 its corporate franchise or doing business in the state in a corporate or
14 organized capacity sixty-five percent or more of whose voting stock is
15 owned or controlled, directly or indirectly, by such bank holding compa-
16 ny, for the first taxable year beginning on or after January first, two
17 thousand and before January first, two thousand [eleven] THIRTEEN during
18 which such bank holding company registers for the first time under the
19 federal bank holding company act, as amended, and also elects to be a
20 financial holding company. In addition, for each subsequent taxable year
21 beginning after January first, two thousand and before January first,
22 two thousand [eleven] THIRTEEN, any such bank holding company may file
23 on a combined basis without seeking the permission of the commissioner
24 with any banking corporation that is exercising its corporate franchise
25 or doing business in the state and sixty-five percent or more of whose
26 voting stock is owned or controlled, directly or indirectly, by such
27 bank holding company if either such banking corporation is exercising
28 its corporate franchise or doing business in the state in a corporate or
29 organized capacity for the first time during such subsequent taxable
30 year, or sixty-five percent or more of the voting stock of such banking
31 corporation is owned or controlled, directly or indirectly, by such bank
32 holding company for the first time during such subsequent taxable year.
33 Provided however, for each subsequent taxable year beginning after Janu-
34 ary first, two thousand and before January first, two thousand [eleven]
35 THIRTEEN, a banking corporation described in either of the two preceding
36 sentences which filed on a combined basis with any such bank holding
37 company in a previous taxable year, must continue to file on a combined
38 basis with such bank holding company if such banking corporation, during
39 such subsequent taxable year, continues to exercise its corporate fran-
40 chise or do business in the state in a corporate or organized capacity
41 and sixty-five percent or more of such banking corporation's voting
42 stock continues to be owned or controlled, directly or indirectly, by
43 such bank holding company, unless the permission of the commissioner has
44 been obtained to file on a separate basis for such subsequent taxable
45 year. Provided further, however, for each subsequent taxable year begin-
46 ning after January first, two thousand and before January first, two
47 thousand [eleven] THIRTEEN, a banking corporation described in either of
48 the first two sentences of this clause which did not file on a combined
49 basis with any such bank holding company in a previous taxable year, may
50 not file on a combined basis with such bank holding company during any
51 such subsequent taxable year unless the permission of the commissioner
52 has been obtained to file on a combined basis for such subsequent taxa-
53 ble year.
54 (B) Notwithstanding any provision of this paragraph other than clause
55 (A) of this subparagraph, the commissioner may not require a bank hold-
56 ing company which, during a taxable year beginning on or after January
A. 4011--B 44
1 first, two thousand and before January first, two thousand [eleven]
2 THIRTEEN, registers for the first time during such taxable year under
3 the federal bank holding company act, as amended, and also elects to be
4 a financial holding company, to make a return on a combined basis for
5 any taxable year beginning on or after January first, two thousand and
6 before January first, two thousand [eleven] THIRTEEN with a banking
7 corporation sixty-five percent or more of whose voting stock is owned or
8 controlled, directly or indirectly, by such bank holding company.
9 S 7. Subparagraph (iv) of paragraph 2 of subdivision (f) of section
10 11-646 of the administrative code of the city of New York, as amended by
11 chapter 24 of the laws of 2010, is amended to read as follows:
12 (iv) (A) Notwithstanding any provision of this paragraph, any bank
13 holding company exercising its corporate franchise or doing business in
14 the city may make a return on a combined basis without seeking the
15 permission of the commissioner with any banking corporation exercising
16 its corporate franchise or doing business in the city in a corporate or
17 organized capacity sixty-five percent or more of whose voting stock is
18 owned or controlled, directly or indirectly, by such bank holding compa-
19 ny, for the first taxable year beginning on or after January first, two
20 thousand and before January first, two thousand [eleven] THIRTEEN during
21 which such bank holding company registers for the first time under the
22 federal bank holding company act, as amended, and also elects to be a
23 financial holding company. In addition, for each subsequent taxable year
24 beginning after January first, two thousand and before January first,
25 two thousand [eleven] THIRTEEN, any such bank holding company may file
26 on a combined basis without seeking the permission of the commissioner
27 with any banking corporation that is exercising its corporate franchise
28 or doing business in the city and sixty-five percent or more of whose
29 voting stock is owned or controlled, directly or indirectly, by such
30 bank holding company if either such banking corporation is exercising
31 its corporate franchise or doing business in the city in a corporate or
32 organized capacity for the first time during such subsequent taxable
33 year, or sixty-five percent or more of the voting stock of such banking
34 corporation is owned or controlled, directly or indirectly, by such bank
35 holding company for the first time during such subsequent taxable year.
36 Provided however, for each subsequent taxable year beginning after Janu-
37 ary first, two thousand and before January first, two thousand [eleven]
38 THIRTEEN, a banking corporation described in either of the two preceding
39 sentences which filed on a combined basis with any such bank holding
40 company in a previous taxable year, must continue to file on a combined
41 basis with such bank holding company if such banking corporation, during
42 such subsequent taxable year, continues to exercise its corporate fran-
43 chise or do business in the city in a corporate or organized capacity
44 and sixty-five percent or more of such banking corporation's voting
45 stock continues to be owned or controlled, directly or indirectly, by
46 such bank holding company, unless the permission of the commissioner has
47 been obtained to file on a separate basis for such subsequent taxable
48 year. Provided further, however, for each subsequent taxable year begin-
49 ning after January first, two thousand and before January first, two
50 thousand [eleven] THIRTEEN, a banking corporation described in either of
51 the first two sentences of this clause which did not file on a combined
52 basis with any such bank holding company in a previous taxable year, may
53 not file on a combined basis with such bank holding company during any
54 such subsequent taxable year unless the permission of the commissioner
55 has been obtained to file on a combined basis for such subsequent taxa-
56 ble year.
A. 4011--B 45
1 (B) Notwithstanding any provision of this paragraph other than clause
2 (A) of this subparagraph, the commissioner may not require a bank hold-
3 ing company which, during a taxable year beginning on or after January
4 first, two thousand and before January first, two thousand [eleven]
5 THIRTEEN, registers for the first time during such taxable year under
6 the federal bank holding company act, as amended, and also elects to be
7 a financial holding company, to make a return on a combined basis for
8 any taxable year beginning on or after January first, two thousand and
9 before January first, two thousand [eleven] THIRTEEN with a banking
10 corporation sixty-five percent or more of whose voting stock is owned or
11 controlled, directly or indirectly, by such bank holding company.
12 S 8. This act shall take effect immediately.
13 PART K
14 Section 1. Paragraph b of subdivision 1, subdivisions 2, 6, 14, 22 and
15 23 of section 282 of the tax law, paragraph b of subdivision 1 and
16 subdivision 14 as amended by chapter 245 of the laws of 1989, subdivi-
17 sion 2 as amended by chapter 509 of the laws of 1937, subdivision 6 as
18 amended by chapter 261 of the laws of 1988 and subdivisions 22 and 23 as
19 added by section 1 of part W-1 of chapter 109 of the laws of 2006, are
20 amended to read as follows:
21 b. With respect to Diesel motor fuel, "distributor" means any person,
22 firm, association or corporation (i) who or which imports or causes to
23 be imported into the state, for use, distribution, storage or sale with-
24 in the state, any Diesel motor fuel; (ii) who or which produces,
25 refines, manufactures or compounds Diesel motor fuel within the state;
26 (iii) [who or which engages in the enhancement of Diesel motor fuel in
27 this state; (iv)] who or which makes a sale or use of Diesel motor fuel
28 in this state other than: (A) a retail sale not in bulk or (B) the self-
29 use of Diesel motor fuel which has been the subject of a retail sale to
30 such person; [(v)] (IV) who or which is registered by the department [of
31 taxation and finance] as a distributor of kero-jet fuel pursuant to the
32 provisions of subdivision two of section two hundred eighty-two-a of
33 this article. For the purposes of this article when used with respect to
34 Diesel motor fuel, a "retail sale not in bulk" means the making or
35 offering to make any sale of Diesel motor fuel to a consumer of such
36 fuel which is delivered directly into a motor vehicle for use in the
37 operation of such vehicle. A "retail sale in bulk" means the making or
38 offering to make any sale of Diesel motor fuel to a consumer which is
39 other than a "retail sale not in bulk". Motor fuel or Diesel motor fuel
40 brought into the state in the ordinary fuel tank connecting with the
41 engine of a motor vehicle, aeroplane, motor boat or other conveyance
42 propelled by the use of such motor fuel or Diesel motor fuel, and to be
43 used only in the operation thereof, shall not be deemed imported within
44 the meaning of this article, if not removed from such tank except as
45 used in the propulsion of such engine.
46 2. "Motor fuel" means gasoline, benzol, REFORMULATED BLEND STOCK FOR
47 OXYGENATE BLENDING, CONVENTIONAL BLEND STOCK FOR OXYGENATE BLENDING,
48 E85, FUEL GRADE ETHANOL THAT MEETS THE ASTM INTERNATIONAL ACTIVE STAND-
49 ARDS SPECIFICATIONS D4806 OR D4814 or other product[, except kerosene
50 and crude oil,] which is suitable for use in operation of a motor vehi-
51 cle engine[, but if kerosene or crude oil is compounded or mixed with
52 any other product or products, and the resulting compound or mixture is
53 suitable for use in the operation of any such motor vehicle engine, such
54 resulting compound or mixture in its entirety shall be a "motor fuel."].
A. 4011--B 46
1 6. "Filling station" shall include any place, location or station
2 where motor fuel [or], HIGHWAY Diesel motor fuel OR WATER-WHITE KEROSENE
3 (EXCLUSIVELY FOR HEATING PURPOSES IN CONTAINERS OF NO MORE THAN TWENTY
4 GALLONS), is offered for sale at retail.
5 14. "Diesel motor fuel" shall mean NO. 1 DIESEL FUEL, NO. 2 DIESEL
6 FUEL, BIODIESEL, kerosene, crude oil, fuel oil or other middle distil-
7 late and also motor fuel suitable for use in the operation of an engine
8 of the diesel type, excluding, however, any product specifically desig-
9 nated "No. 4 Diesel fuel" and not suitable as a fuel used in the opera-
10 tion of a motor vehicle engine.
11 22. "E85" means a [mixture consisting by volume of eighty-five
12 percent] FUEL BLEND CONSISTING OF ethanol and [the remainder of which
13 is] motor fuel, WHICH MEETS THE ASTM INTERNATIONAL ACTIVE STANDARD D5798
14 FOR FUEL ETHANOL.
15 23. "B20" means a mixture consisting by volume of twenty percent biod-
16 iesel and the remainder of which is diesel motor fuel. [For purposes of
17 this subdivision "biodiesel"] "BIODIESEL" shall mean EITHER "QUALIFIED
18 BIODIESEL" OR "UNQUALIFIED BIODIESEL." "QUALIFIED BIODIESEL" MEANS a
19 diesel motor fuel substitute produced from nonpetroleum renewable
20 resources that meets the registration requirements for fuels and fuel
21 additives established by the Environmental Protection Agency under
22 section 211 of the Clean Air Act (42 U.S.C. 7545) and that meets the
23 [American Society for Testing and Materials D6751-02a Standard Specifi-
24 cation for Biodiesel Fuel (B100) Blend Stock for Distillate Fuels] ASTM
25 INTERNATIONAL ACTIVE STANDARD D6751 FOR BIODIESEL FUEL. "UNQUALIFIED
26 BIODIESEL" MEANS A DIESEL MOTOR FUEL SUBSTITUTE PRODUCED FROM NONPETRO-
27 LEUM RENEWABLE RESOURCES THAT DOES NOT MEET THE ASTM INTERNATIONAL
28 ACTIVE STANDARD D6751 FOR BIODIESEL FUEL.
29 S 1-a. Subdivision 15 of section 282 of the tax law is REPEALED.
30 S 2. Subdivision 16 of section 282 of the tax law is REPEALED and two
31 new subdivisions 16 and 16-a are added to read as follows:
32 16. "NON-HIGHWAY DIESEL MOTOR FUEL" MEANS ANY DIESEL MOTOR FUEL THAT
33 IS DESIGNATED FOR USE OTHER THAN ON A PUBLIC HIGHWAY (EXCEPT FOR THE USE
34 OF THE PUBLIC HIGHWAY BY FARMERS TO REACH ADJACENT LANDS), AND IS DYED
35 DIESEL MOTOR FUEL AS DEFINED IN SUBDIVISION EIGHTEEN-A OF THIS SECTION.
36 16-A. "HIGHWAY DIESEL MOTOR FUEL" MEANS ANY DIESEL MOTOR FUEL WHICH IS
37 NOT NON-HIGHWAY DIESEL MOTOR FUEL.
38 S 3. Subdivision 18 of section 282 of the tax law, as added by chapter
39 302 of the laws of 2006, is renumbered subdivision 18-a and is amended
40 to read as follows:
41 18-a. "Dyed Diesel motor fuel" means Diesel motor fuel which [is
42 enhanced Diesel motor fuel and which] has been dyed in accordance with
43 and for the purpose of complying with the provisions of 26 USC S4082(a)
44 and the regulations thereunder, as may be amended from time to time.
45 S 4. Section 282 of the tax law is amended by adding a new subdivision
46 26 to read as follows:
47 26. "PUBLIC HIGHWAY" MEANS PUBLIC HIGHWAY AS DEFINED IN SUBDIVISION
48 SIX OF SECTION FIVE HUNDRED ONE OF THIS CHAPTER.
49 S 5. Subdivisions 2, 3, 4 and 5 of section 282-a of the tax law,
50 subdivision 2 and paragraph (b) of subdivision 3 as amended by chapter
51 245 of the laws of 1989, subdivisions 3, 4 and 5 as added by chapter 261
52 of the laws of 1988 and paragraph (c) of subdivision 3 as added by chap-
53 ter 302 of the laws of 2006, are amended to read as follows:
54 2. No person shall [engage] SELL OR USE DIESEL MOTOR FUEL within this
55 state [in the enhancement of Diesel motor fuel, make a sale or use of
56 Diesel motor fuel] (other than a retail sale not in bulk or self-use of
A. 4011--B 47
1 Diesel motor fuel which has been the subject of a retail sale), import
2 or cause the importation of Diesel motor fuel into the state or produce,
3 refine, manufacture or compound Diesel motor fuel within the state
4 unless such person shall be registered by the department [of taxation
5 and finance] as a distributor of Diesel motor fuel. Provided, the
6 commissioner [of taxation and finance] shall not register as a distribu-
7 tor of Diesel motor fuel any person who is engaged solely in one or both
8 of the following: (i) any person who makes or offers to make a retail
9 sale not in bulk of such fuel or (ii) any person who purchases Diesel
10 motor fuel in bulk in this state for the sole purpose of self-use. The
11 commissioner may, however, register as a distributor of kero-jet fuel
12 only a fixed base operator who makes no sales of kero-jet fuel other
13 than retail sales not in bulk delivered directly into the fuel tank of
14 an airplane for use in the operation of such airplane and who makes no
15 other sales of diesel motor fuel. Such registration shall apply only to
16 the wholesale purchase of kero-jet fuel and the retail sale of such fuel
17 not in bulk for delivery directly into the fuel tank of an airplane for
18 use in the operation thereof. Provided, further, that if the commission-
19 er is satisfied that full registration is not necessary in order to
20 protect tax revenues, the commissioner may limit or modify the require-
21 ment of registration as a distributor with respect to any person other-
22 wise required to register solely because such person engages in the sale
23 of NON-HIGHWAY Diesel motor fuel where such person makes sales of
24 NON-HIGHWAY Diesel motor fuel to the consumer solely for the purposes
25 described in subparagraph (i) of paragraph (b) of subdivision three of
26 this section, provided that if the commissioner so limits or modifies
27 such registration requirement with respect to such person, then such
28 registration shall apply only to the importation, sale and distribution
29 of SUCH NON-HIGHWAY Diesel motor fuel [for the purposes described in
30 such subparagraph (i)]. The commissioner [of taxation and finance] may
31 also waive any other requirement imposed by this article on such a
32 distributor. All the provisions of section two hundred eighty-three of
33 this article shall apply to applicants for registration and registrants
34 with respect to Diesel motor fuel, and, in addition, distributors with
35 respect to Diesel motor fuel shall be subject to all other provisions of
36 this article relating to distributors of motor fuel, including but not
37 limited to, the keeping of records, the fixing, determination and
38 payment of tax and filing of returns. PROVIDED, FURTHER, THE COMMISSION-
39 ER MAY LIMIT OR MODIFY THE REQUIREMENT OF REGISTRATION AS A DISTRIBUTOR
40 WITH RESPECT TO ANY PERSON WHO PRODUCES FOR SELF USE "UNQUALIFIED BIOD-
41 IESEL."
42 3. (a) The tax imposed by this section shall not apply to the sale of
43 untaxed Diesel motor fuel to or the use of such fuel by an organization
44 described in paragraph one or two of subdivision (a) of section eleven
45 hundred sixteen of this chapter where such Diesel motor fuel is used by
46 such organization for its own use or consumption.
47 (b) The tax on the [incident] INCIDENCE of sale or use imposed by
48 subdivision one of this section shall not apply to: (i) the sale [to] or
49 use [by the consumer of previously untaxed Diesel motor fuel which is
50 not enhanced Diesel motor fuel and which is used exclusively for heating
51 purposes or for the purpose of use or consumption directly and exclu-
52 sively in the production of tangible personal property, gas, electric-
53 ity, refrigeration or steam, for sale,] OF NON-HIGHWAY DIESEL MOTOR
54 FUEL, but only if all of such fuel is consumed other than on the PUBLIC
55 highways of this state (EXCEPT FOR THE USE OF THE PUBLIC HIGHWAY BY
56 FARMERS TO REACH ADJACENT FARMLANDS); provided, however, this exemption
A. 4011--B 48
1 shall in no event apply to a sale of NON-HIGHWAY Diesel motor fuel which
2 involves a delivery at a filling station or into a repository which is
3 equipped with a hose or other apparatus by which such fuel can be
4 dispensed into the fuel tank of a motor vehicle (EXCEPT FOR DELIVERY AT
5 A FARM SITE WHICH QUALIFIES FOR THE EXEMPTION UNDER SUBDIVISION (G) OF
6 SECTION THREE HUNDRED ONE-B OF THIS CHAPTER); or (ii) [the sale of
7 previously untaxed Diesel motor fuel which is not enhanced Diesel motor
8 fuel to a person registered under this article as a distributor of
9 Diesel motor fuel other than (A) a retail sale to such person or (B) a
10 sale to such person which involves a delivery at a filling station or
11 into a repository which is equipped with a hose or other apparatus by
12 which such fuel can be dispensed into the fuel tank of a motor vehicle;
13 or (iii) a sale or use of enhanced Diesel motor fuel to or by a consumer
14 exclusively for the purposes of heating specified in subparagraph (i) of
15 this paragraph but only if such enhanced Diesel motor fuel is delivered
16 into a storage tank which is not equipped with a hose or other apparatus
17 by which such fuel can be dispensed into the fuel tank of a motor vehi-
18 cle and such storage tank is attached to the heating unit burning such
19 fuel, provided that each delivery of such fuel of over four thousand
20 five hundred gallons shall be evidenced by a certificate signed by the
21 purchaser stating that the product will be used exclusively for heating
22 purposes; or (iv) a sale or use consisting of no more than four thousand
23 five hundred gallons of Diesel motor fuel in a thirty-day period to or
24 by a consumer who purchases or uses such fuel for use or consumption
25 directly and exclusively in the production for sale of tangible personal
26 property by farming but only if all of such fuel is delivered on the
27 farm site and is consumed other than on the highways of this state
28 (except for the use of the highway to reach adjacent farmlands)
29 provided, however, a farmer may purchase more than four thousand five
30 hundred gallons of Diesel motor fuel in a thirty-day period for such use
31 or consumption exempt from the tax in accordance with prior clearance
32 given by the commissioner of taxation and finance; or (v)] a sale to the
33 consumer consisting of not more than twenty gallons of water-white kero-
34 sene to be used and consumed exclusively for heating purposes; or [(vi)]
35 (III) the sale to or delivery at a filling station or other retail
36 vendor of water-white kerosene provided such filling station or other
37 retail vendor only sells such water-white kerosene exclusively for heat-
38 ing purposes in containers of no more than twenty gallons; or [(vii)]
39 (IV) a sale of kero-jet fuel to an airline for use in its airplanes or a
40 use of kero-jet fuel by an airline in its airplanes; or [(viii)] (V) a
41 sale of kero-jet fuel by a registered distributor of Diesel motor fuel
42 to a fixed base operator registered under this article as a distributor
43 of kero-jet fuel only where such fixed base operator is engaged solely
44 in making or offering to make retail sales not in bulk of kero-jet fuel
45 directly into the fuel tank of an airplane for the purpose of operating
46 such airplane; or [(ix)] (VI) a retail sale not in bulk of kero-jet fuel
47 by a fixed base operator registered under this article as a distributor
48 of kero-jet fuel only where such fuel is delivered directly into the
49 fuel tank of an airplane for use in the operation of such airplane.
50 (c) [Limited exemptions for dyed Diesel motor fuel. (i) The tax
51 imposed by this section shall not apply to: (A) the sale of dyed Diesel
52 motor fuel by the importer to a purchaser under the circumstances and
53 subject to the terms and conditions as follows: (1) the importer and
54 purchaser are each registered under this article as a full Diesel motor
55 fuel distributor; (2) such importer has imported the enhanced Diesel
56 motor fuel, which is the subject of the sale, into the state and has
A. 4011--B 49
1 dyed such fuel to comply with the provisions of 26 USC S 4082(a) and the
2 regulations thereunder, as may be amended from time to time; (3) the
3 purchaser is a holder of a currently valid direct payment permit issued
4 pursuant to section two hundred eighty-three-d of this article; and (4)
5 such purchaser is primarily engaged in the retail heating oil business
6 and such dyed Diesel motor fuel will be sold by such purchaser in a
7 retail sale to a consumer for use solely as residential or commercial
8 heating oil; (B) a first sale of the dyed Diesel motor fuel, which as
9 the subject of an exempt sale described in clause (A) of this subpara-
10 graph, by the purchaser described therein to a purchaser likewise hold-
11 ing a currently valid direct pay permit under the circumstances and
12 subject to the terms and conditions as follows: (1) the sale of such
13 second purchaser by such first purchaser is the first and only sale of
14 such dyed Diesel motor fuel by such first purchaser; (2) such second
15 purchaser is primarily engaged in the retail heating oil business and
16 such dyed Diesel motor fuel will be sold by such second purchaser in a
17 retail sale to a consumer for use solely as residential or commercial
18 heating oil; (3) on the sale to the second purchaser, such first
19 purchaser described in such clause (A) attaches to the invoice a copy of
20 the invoice given by the importer on the exempt sale described in such
21 clause (A), so as to identify the origin of the dyed Diesel fuel which
22 is the subject of the sale to such second purchaser; and (4) such second
23 purchaser certifies that such dyed Diesel motor fuel is to be sold by it
24 only to a consumer for use solely as residential or commercial heating
25 oil. (ii) Prior to, or at the time of, such sale of such dyed Diesel
26 motor fuel described in clause (A) or (B) of subparagraph (i) of this
27 paragraph, the purchaser shall give a certificate to the seller setting
28 forth the intended use of the dyed Diesel motor fuel which is sought to
29 be qualified for exemption under this paragraph, that the purchaser has
30 been issued a direct payment permit which is currently valid, that such
31 permit has not been suspended or revoked and that the purchaser other-
32 wise meets the qualifications of this paragraph. (iii) The limited
33 exemptions allowed under this paragraph shall in no event apply to any
34 dyed Diesel motor fuel which is delivered into a repository equipped
35 with hose or other apparatus capable of being used to dispense fuel into
36 the fuel tank of a motor vehicle, or where the purchaser's direct
37 payment permit has been suspended or revoked and the commissioner has
38 made generally available the identity of those persons whose direct
39 payment permits have been suspended or revoked.] NOTHING IN THIS ARTICLE
40 SHALL EXEMPT NON-HIGHWAY DIESEL MOTOR FUEL FROM THE IMPOSITION OF THE
41 TAX UNDER THIS SECTION, IF SUCH NON-HIGHWAY DIESEL MOTOR FUEL IS
42 INTENDED FOR USE ON THE WATERWAYS OF THE STATE INCLUDING ANY OTHER
43 WATERWAYS BORDERING ON THE STATE, FOR OPERATING PLEASURE OR RECREATIONAL
44 MOTOR BOATS THEREON.
45 4. The tax imposed by this section on Diesel motor fuel shall be
46 passed through by the seller and included as part of the selling price
47 to each purchaser of such fuel. Provided, however, the amount of the tax
48 imposed by this section may be excluded from the selling price of Diesel
49 motor fuel where (i) a sale of Diesel motor fuel is made to an organiza-
50 tion described in paragraph (a) of subdivision three of this section
51 solely for the purpose stated therein; (ii) a sale of [enhanced]
52 NON-HIGHWAY Diesel motor fuel is made to a consumer [exclusively for the
53 purposes of heating specified in subparagraph (i) of paragraph (b) of
54 subdivision three of this section] but only if such [enhanced] NON-HIGH-
55 WAY Diesel motor fuel is NOT DELIVERED TO A FILLING STATION, NOR deliv-
56 ered into a storage tank which is [not] equipped with a hose or other
A. 4011--B 50
1 apparatus by which such fuel can be dispensed into the fuel tank of a
2 motor vehicle [and such storage tank is attached to the heating unit
3 burning such fuel, provided that each delivery of such fuel of over four
4 thousand five hundred gallons shall be evidenced by a certificate signed
5 by the purchaser stating that the product will be used exclusively for
6 heating purposes; (iii) a sale is made consisting of no more than four
7 thousand five hundred gallons (or a greater amount which has been given
8 prior clearance by the commissioner of taxation and finance) of Diesel
9 motor fuel in a thirty-day period to a consumer who purchases such fuel
10 for use or consumption directly and exclusively in the production for
11 sale of tangible personal property by farming but only if all of such
12 fuel is consumed other than on the highways or waterways of this state];
13 or [(iv)] (III) the sale to or delivery at a filling station or other
14 retail vendor of water-white kerosene provided such filling station or
15 other retail vendor only sells such water-white kerosene exclusively for
16 heating purposes in containers of no more than twenty gallons; or [(v)]
17 (IV) a sale of kero-jet fuel is made to an airline for use in its
18 airplanes.
19 5. All the provisions of this article relating to the administration
20 and collection of the taxes on motor fuel, except sections two hundred
21 eighty-three-a and two hundred eighty-three-b of this article, shall be
22 applicable to the tax imposed by this section with such limitation as
23 specifically provided for in this article with respect to Diesel motor
24 fuel and with such modification as may be necessary to adapt the
25 language of such provisions to the tax imposed by this section. With
26 respect to the bond or other security required by subdivision three of
27 section two hundred eighty-three of this article, the commissioner [of
28 taxation and finance], in determining the amount of bond or other secu-
29 rity required for the purpose of securing tax payments, shall take into
30 account the volume of [heating fuel] NON-HIGHWAY DIESEL MOTOR FUEL and
31 other Diesel motor fuel sold for exempt purposes by a distributor of
32 Diesel motor fuel during prior periods as a factor reducing potential
33 tax liability along with any other relevant factors in determining the
34 amount of security required. With respect to the bond required to be
35 filed prior to registration as a Diesel motor fuel distributor, no bond
36 shall be required of an applicant upon a finding of the applicant's
37 fiscal responsibility, as reflected by such factors as net worth,
38 current assets and liabilities, and tax reporting and payment history,
39 and the department shall not provide for a minimum bond of every appli-
40 cant.
41 S 6. Subdivision 7 of section 283 of the tax law, as amended by chap-
42 ter 261 of the laws of 1988, is amended to read as follows:
43 7. Temporary restraining order and permanent [injuction] INJUNCTION
44 against unlawful importation and forfeiture of unlawfully imported or
45 produced [automotive] MOTOR FUEL OR DIESEL MOTOR fuel. (a) Whenever
46 evidence is furnished by the commissioner [of taxation and finance] to
47 any justice of the supreme court, in court or at chambers, showing that
48 any person not registered as a distributor as required by this article
49 has imported [automotive fuel] MOTOR FUEL OR DIESEL MOTOR FUEL into this
50 state or caused [automotive] MOTOR FUEL OR DIESEL MOTOR fuel to be
51 imported into this state or has produced, refined, manufactured or
52 compounded [automotive fuel or has subjected diesel motor fuel to the
53 process of enhancement within this state] MOTOR FUEL OR DIESEL MOTOR
54 FUEL, such justice may make a temporary order without notice prohibiting
55 such person and his agents from selling, transferring or otherwise
56 disposing of any such fuel or any fuel and also prohibiting all other
A. 4011--B 51
1 persons in possession of or having control over the same from selling,
2 releasing, transferring or otherwise disposing of any [automotive fuel]
3 MOTOR FUEL OR DIESEL MOTOR FUEL imported, produced, refined, manufac-
4 tured, compounded, [enhanced,] sold or transferred by such person not so
5 registered pending a hearing for a preliminary injunction.
6 (b) Upon granting a temporary order, the court shall direct that a
7 hearing be held at the earliest possible time upon such notice and
8 service as the court shall direct and at the same time, if such action
9 has not yet been commenced, the commissioner [of taxation and finance]
10 shall commence an action in supreme court for a permanent injunction and
11 forfeiture of [automotive fuel] MOTOR FUEL OR DIESEL MOTOR FUEL pursuant
12 to paragraph (c) of this subdivision. Where, after such opportunity for
13 a hearing, the court determines that there is a substantial probability
14 that the commissioner will prevail in such action, the court shall grant
15 a preliminary injunction restraining the sale, release, transfer or
16 other disposition of fuel subject to the temporary order.
17 (c) (1) If it is established by clear and convincing evidence that
18 [automotive fuel] MOTOR FUEL OR DIESEL MOTOR FUEL was imported, caused
19 to be imported, produced, refined, manufactured or compounded [or diesel
20 motor fuel was subjected to the process of enhancement] by any person
21 not registered as a distributor as required by this article, the court
22 shall grant a judgment (i) permanently enjoining such person and his
23 agents from selling, transferring or otherwise disposing of any such
24 fuel or any fuel within this state and (ii) declaring the forfeiture of
25 any fuel that was so imported, caused to be imported, produced, refined,
26 manufactured, OR compounded [or enhanced] by such person.
27 (2) With respect to [automotive fuel] MOTOR FUEL OR DIESEL MOTOR FUEL
28 that was imported, caused to be imported, produced, refined, manufac-
29 tured or compounded, [or diesel motor fuel that was subjected to the
30 process of enhancement] by a person not registered as a distributor as
31 required by this article or that was unlawfully sold or transferred by
32 such person, if it is established by clear and convincing evidence that
33 any other person in possession of or having control over such fuel was
34 not a purchaser or transferee in good faith of such fuel with respect to
35 the fact that such fuel was so imported, caused to be imported,
36 produced, refined, manufactured, OR compounded [or enhanced] by a person
37 not registered as a distributor as required by this article or that such
38 fuel was so unlawfully sold or transferred by such person, the court
39 shall grant a judgment (i) permanently enjoining such other person and
40 his OR HER agents from selling, releasing, transferring or otherwise
41 disposing of any such fuel and (ii) declaring the forfeiture of such
42 fuel in the possession or under the control of such other person.
43 (d) The commissioner may, at any time subsequent to the granting of
44 the temporary order pursuant to paragraph (a) of this subdivision, in
45 his OR HER sole discretion consent to a sale of [automotive fuel] MOTOR
46 FUEL OR DIESEL MOTOR FUEL subject to such temporary order which is in
47 the possession or under the control of a person other than the person or
48 the agent of the person who imported, caused to be imported, produced,
49 refined, manufactured, compounded [or enhanced] or unlawfully sold or
50 transferred such fuel. As a condition of granting permission to a sale
51 of [automotive fuel] MOTOR FUEL OR DIESEL MOTOR FUEL pursuant to this
52 subdivision, the commissioner shall require the payment of all taxes,
53 penalties and interest imposed by and pursuant to the authority of this
54 chapter with respect to such fuel.
55 (e) (1) At any time during the pendency of an action under this
56 section, the [automotive fuel] MOTOR FUEL OR DIESEL MOTOR FUEL subject
A. 4011--B 52
1 to a temporary, preliminary or permanent order hereunder may be released
2 from the scope of such order if there is given an undertaking, in an
3 amount equal to the market value of such fuel plus state excise and
4 sales taxes and federal excise taxes, to the effect that there will be
5 paid to the commissioner the amount of the market value of such fuel and
6 such taxes in the event that such fuel is adjudged forfeited.
7 (2) Any person enjoined by a temporary order or a preliminary injunc-
8 tion issued pursuant to this subdivision may move at any time, on
9 notice, to vacate or modify it.
10 (f) The procedures of the civil practice law and rules applicable to
11 temporary restraining orders, preliminary injunctions and permanent
12 injunctions not inconsistent with this subdivision shall apply to tempo-
13 rary orders, preliminary injunctions and permanent injunctions issued
14 under this subdivision and any provision of this subdivision which is
15 not in accord with the constitutional mandate of such procedures of the
16 civil practice law and rules shall be deemed to be modified as necessary
17 to accord with such a mandate. The procedural provisions set forth in
18 paragraph three of subdivision (d) and in subdivision (j) of section
19 eighteen hundred forty-eight of this chapter shall apply to the forfei-
20 ture proceedings under this subdivision and, in respect to a declaration
21 of forfeiture under this subdivision, the court shall direct the commis-
22 sioner to sell or otherwise dispose of such forfeited [automotive fuel]
23 MOTOR FUEL OR DIESEL MOTOR FUEL on such conditions the commissioner
24 deems most advantageous and just under the circumstances. The commis-
25 sioner shall not be required to file any undertaking in connection with
26 an action pursuant to this subdivision.
27 S 7. Sections 283-d and 284-b of the tax law are REPEALED.
28 S 8. Subdivision 3 of section 285-b of the tax law, as amended by
29 chapter 245 of the laws of 1989, is amended to read as follows:
30 3. (a) The claim for or exemption from tax provided for in subpara-
31 graphs (i), (II), (iii), (iv), [(v),] AND (vi)[, (vii) and (ix)] of
32 paragraph (b) of subdivision three of section two hundred eighty-two-a
33 of this article shall be established by means of an exempt transaction
34 certificate. If any such exemption is applicable, such certificate shall
35 be provided by the purchaser to the seller at the time of or prior to
36 delivery of the Diesel motor fuel. Such exempt transaction certificate
37 shall set forth the name and address of the purchaser and the basis of
38 the exemption and shall be signed by such purchaser and by the seller.
39 Such certificate shall be in such form and contain such other informa-
40 tion as the commissioner [of taxation and finance] shall require. Where
41 a proper and complete exempt transaction certificate has been furnished
42 and accepted by the seller in good faith, such certificate under such
43 circumstance shall relieve the seller of the burden of proving that the
44 Diesel motor fuel covered by such certificate is exempt from tax by
45 reason of subparagraph (i), (II), (iii), (iv), [(v),] OR (vi)[, (vii) or
46 (ix)] of paragraph (b) of subdivision three of such section two hundred
47 eighty-two-a. Any purchaser who furnishes to his seller a false or frau-
48 dulent exempt transaction certificate for the purpose of establishing an
49 exemption from the tax imposed by section two hundred eighty-two-a of
50 this article shall be jointly and severally liable for the tax imposed
51 by such section. In lieu of an exempt transaction certificate, the
52 commissioner [of taxation and finance] may provide for the establishment
53 of such exemption by means of a procedure or other document which he OR
54 SHE deems appropriate so as to secure the revenues from the excise tax
55 on Diesel motor fuel. Provided, further, in the case of the exemption
56 provided by subparagraph (i) of paragraph (b) of subdivision three of
A. 4011--B 53
1 section two hundred eighty-two-a of this article, the commissioner shall
2 provide for an alternative procedure or other document signed only by
3 the seller, such as a metered delivery ticket, for the establishment of
4 such exemption in those cases where such commissioner is satisfied that
5 the use of such alternative procedure or other document will not jeop-
6 ardize the revenues from the excise tax on Diesel motor fuel.
7 (b) A claim for the exemption from tax provided for in subparagraph
8 [(ii) or (viii)] (V) of paragraph (b) of subdivision three of section
9 two hundred eighty-two-a of this article shall be established by means
10 of an interdistributor sale certificate. If such exemption is applica-
11 ble, such certificate shall be provided by the purchaser to the seller
12 at the time of or prior to delivery of the Diesel motor fuel. Such
13 certificate shall set forth the name and address of the purchaser, the
14 purchaser's registration number, an affirmation by such purchaser that
15 the purchaser is registered as a distributor and that such registration
16 has not been suspended or cancelled and shall be signed by such purchas-
17 er and by the seller. Such certificate shall be in such form and contain
18 such other information as the commissioner [of taxation and finance]
19 shall require. Where a proper and complete interdistributor sale certif-
20 icate has been furnished and accepted by the seller in good faith, such
21 certificate under such circumstance shall relieve the seller of the
22 burden of proving that the Diesel motor fuel covered by such certificate
23 is exempt from tax by reason of subparagraph [(ii) or (viii)] (V) of
24 paragraph (b) of subdivision three of such section two hundred eighty-
25 two-a. For purposes of this paragraph, a seller shall not have accepted
26 such certificate in good faith if the purchaser's registration is inval-
27 id because it has been suspended or cancelled, or if the purchaser is
28 not registered, and the commissioner [of taxation and finance] has
29 furnished registered distributors with information identifying all those
30 persons then validly registered as distributors of Diesel motor fuel and
31 those persons whose registrations have been suspended or cancelled. Any
32 purchaser who furnishes to his seller a false or fraudulent interdis-
33 tributor sale certificate for the purpose of establishing an exemption
34 from the tax imposed by section two hundred eighty-two-a of this article
35 shall be jointly and severally liable for the tax imposed by such
36 section.
37 S 9. Subdivision 1 of section 286 of the tax law, as amended by chap-
38 ter 302 of the laws of 2006, is amended to read as follows:
39 1. Every person who imports or causes to be imported into this state,
40 or who produces, refines, manufactures or compounds within this state,
41 or who purchases or sells in this state motor fuel or diesel motor fuel
42 or ingredients which may be manufactured or compounded into motor fuel
43 or diesel motor fuel, [or engages in the enhancement of diesel motor
44 fuel,] shall keep a complete and accurate record of all purchases and
45 sales, uses or other dispositions thereof and a complete and accurate
46 record of the number of gallons of motor fuel or diesel motor fuel or
47 such ingredients so imported, produced, refined, manufactured[,] OR
48 compounded [or enhanced]. Every person who stores motor fuel or diesel
49 motor fuel shall keep a complete and accurate record of the identity of
50 the person for whom such fuel is stored, the quantity and type of fuel
51 so stored, the identity of the person to whom such fuel is released from
52 storage and the quantity and type of fuel so released. Such records
53 shall be in such form and contain such other information as the commis-
54 sioner shall prescribe. Said commissioner, by rule or regulation, also
55 may require the delivery of statements to purchasers with consignments
56 of motor fuel or diesel motor fuel or such ingredients, and prescribe
A. 4011--B 54
1 the matters to be contained therein. Such records and statements, unless
2 required by the commissioner to be preserved for a longer period, shall
3 be preserved for a period of three years and shall be offered for
4 inspection at any time upon oral or written demand by such commissioner
5 or the commissioner's duly authorized agents. The commissioner is hereby
6 further authorized to examine the equipment of any such person pertain-
7 ing to the storage, sale or delivery of such fuels, as well as the stock
8 of such fuels in the possession or control of such person. To verify the
9 amount of tax due under this article, each such person is hereby
10 directed and required to give to the commissioner or the commissioner's
11 duly authorized representatives, the means, facilities and opportunity
12 for such examinations as are herein provided for and required. Nothing
13 CONTAINED in this section [contained] shall be construed to require the
14 keeping for purposes of this article of a record of purchases or sales
15 of motor fuel or diesel motor fuel or such ingredients at retail in
16 small quantities (less than thirty gallons) or of motor fuel or diesel
17 motor fuel imported into this state in the tank of a motor vehicle which
18 supplies the fuel for its operation.
19 S 10. Section 286-a of the tax law, as amended by chapter 261 of the
20 laws of 1988, is amended to read as follows:
21 S 286-a. Records and reports of transportation of [automotive] MOTOR
22 FUEL AND DIESEL MOTOR fuel. Every person transporting [automotive] MOTOR
23 FUEL OR DIESEL MOTOR fuel within this state, whether such transportation
24 originates within or without this state, when required by the [tax
25 commission] COMMISSIONER, shall keep a true and accurate record of all
26 [automotive] MOTOR FUEL AND DIESEL MOTOR fuel so transported, including
27 ingredients which may be manufactured or compounded into [automotive]
28 MOTOR FUEL OR DIESEL MOTOR fuel, showing such facts with relation to
29 such [automotive] fuel and ingredients and their transportation as the
30 [tax commission] COMMISSIONER may require. Such record shall be open to
31 inspection by the representatives of the department [of taxation and
32 finance] at any time and the [tax commission] COMMISSIONER may require
33 from any such person sworn returns of all or any part of the information
34 shown by such records.
35 S 11. Section 286-b of the tax law, as amended by chapter 261 of the
36 laws of 1988, is amended to read as follows:
37 S 286-b. Transportation of [automotive] MOTOR FUEL OR DIESEL MOTOR
38 fuel; manifest required. 1. The master or other person in charge of any
39 barge, tanker or other vessel in which [automotive] MOTOR FUEL OR DIESEL
40 MOTOR fuel is being transported over any of the navigable waters of this
41 state, the operator of a motor vehicle in which [automotive] MOTOR FUEL
42 OR DIESEL MOTOR fuel is being transported in this state, or the operator
43 of a pipeline through which [automotive] MOTOR FUEL OR DIESEL MOTOR fuel
44 is being transported in this state, other than [automotive] MOTOR FUEL
45 OR DIESEL MOTOR fuel being transported for use in operating the engine
46 which propels such vessel or motor vehicle, as the case may be, must
47 have in his OR HER possession a manifest which shows the name and
48 address of the person from whom such [automotive] fuel was received by
49 him OR HER and the place of receipt of such fuel and the name and
50 address of every person to whom he OR SHE is to make delivery of the
51 same and the place of delivery, together with the number of gallons to
52 be delivered to each such person, and, if such [automotive] fuel is
53 being imported into the state in such vessel, motor vehicle or pipeline
54 for use, storage, distribution or sale in the state, the name of the
55 distributor importing or causing such fuel to be imported into the state
56 and such other information as the [tax commission] COMMISSIONER may
A. 4011--B 55
1 require pursuant to rule or regulation, and shall at the request of a
2 peace officer, acting pursuant to his OR HER special duties, a police
3 officer, any representative of the department [of taxation and finance]
4 or any other person authorized by law to inquire into or investigate the
5 transportation of such [automotive] fuel, produce such manifest for
6 inspection. The person causing the operation of such vessel, motor vehi-
7 cle or pipeline shall be responsible to cause the operator of such
8 vessel, motor vehicle or pipeline to keep in his OR HER possession on
9 such vessel, in such motor vehicle or in the main control building of
10 such pipeline in this state the manifest required by this section. The
11 absence of the manifest required by this section shall give rise to a
12 presumption that the [automotive] MOTOR FUEL OR DIESEL MOTOR fuel being
13 transported is intended for sale, use, distribution or storage in this
14 state and is being imported or caused to be imported by other than a
15 registered distributor. Moreover, the absence of (1) the place of deliv-
16 ery of motor fuel OR DIESEL MOTOR FUEL on the manifest with respect to
17 [automotive] MOTOR FUEL OR DIESEL MOTOR fuel being imported into the
18 state shall give rise to a presumption that such fuel is being imported
19 into the state for use, distribution, storage or sale in the state and
20 (2) the name of a registered distributor on the manifest with respect to
21 [automotive] MOTOR FUEL OR DIESEL MOTOR fuel being imported into the
22 state for use, distribution, storage or sale in the state shall give
23 rise to a presumption that such fuel is being so imported or caused to
24 be imported by other than a registered distributor. Every barge, tanker
25 or other vessel so used for the transportation of motor fuel must be
26 plainly and visibly marked on both sides thereof and above the water
27 line with the word "Gasoline," or other name of the motor fuel being
28 transported, in letters at least eight inches high and of corresponding
29 appropriate width, or must be identified as prescribed by the [tax
30 commission] COMMISSIONER pursuant to rule or regulation. The master or
31 person in charge of such barge, tanker or other vessel, as well as the
32 owners thereof, shall be guilty of a violation of this section if such
33 barge, tanker or other vessel is not so marked.
34 2. The commissioner may, by regulation provide for the form and
35 content of the manifest required for [automotive] MOTOR AND DIESEL MOTOR
36 fuel and for the filing of monthly information returns by every person
37 required to maintain records, described in subdivision one of this
38 section, which shall in all material respects reflect the information
39 required to be contained in such records. Such returns shall be in such
40 form and contain such other information as the commissioner shall
41 require.
42 S 12. Subdivision 1 of section 287 of the tax law, as amended by chap-
43 ter 261 of the laws of 1988, is amended to read as follows:
44 1. Every distributor shall, on or before the twentieth day of each
45 month, file with the department [of taxation and finance] a return, on
46 forms to be prescribed by the commissioner and furnished by such depart-
47 ment, stating the number of gallons of motor fuel imported, manufactured
48 or sold by such distributor in the state during the preceding calendar
49 month and in the case of Diesel motor fuel, the number of gallons of
50 [enhanced] Diesel motor fuel imported[, the number of gallons enhanced]
51 and the number of gallons which have been sold or used. Provided, howev-
52 er, the commissioner may, if he OR SHE deems it necessary in order to
53 [insure] ENSURE the payment of the taxes imposed by this article,
54 require returns to be made at such times and covering such periods as he
55 OR SHE may deem necessary, and, by regulation, may permit the filing of
56 returns by distributors of Diesel motor fuel on a quarterly, semi-annual
A. 4011--B 56
1 or annual basis, or may waive the filing of returns by a distributor of
2 Diesel motor fuel for such time and upon such terms as he OR SHE may
3 deem proper if satisfied that no tax imposed by this article with
4 respect to Diesel motor fuel is or will be payable by him OR HER during
5 the time for which returns are waived. Such returns shall contain such
6 further information as the commissioner shall require. The fact that a
7 distributor's name is signed to a filed return shall be prima facie
8 evidence for all purposes that the return was actually signed by such
9 distributor. Each such distributor shall, with respect to motor fuel,
10 pay to the department with the filing of such return, the taxes imposed
11 by this article on each gallon of motor fuel imported, manufactured or
12 sold by such distributor in the state, and so reported, during the peri-
13 od covered by such return. Each distributor shall, with respect to
14 Diesel motor fuel, pay to the department with the filing of the return
15 the taxes imposed by this article on the number of gallons of Diesel
16 motor fuel sold or used or delivered to a filling station or delivered
17 into the fuel tank of a motor vehicle during the period covered by the
18 return. Provided, however, that where a distributor has purchased [auto-
19 motive] MOTOR FUEL OR DIESEL MOTOR fuel upon which the taxes imposed by
20 this article have been paid or paid over and in each instance the tax is
21 included in the price, a credit shall be allowed for the amount of such
22 taxes upon the subsequent sale of such fuel to the extent that such
23 taxes are so paid and included in the price.
24 S 13. Paragraphs (a) and (c) of subdivision 3 of section 289-c of the
25 tax law, paragraph (a) as amended by chapter 558 of the laws of 1965 and
26 paragraph (c) as amended by chapter 302 of the laws of 2006, are amended
27 to read as follows:
28 (a) Except as otherwise provided in paragraph (b) of this section, any
29 person who shall buy any motor fuel or diesel motor fuel, on which the
30 tax imposed by this article shall have been paid, and shall consume the
31 same in any manner except in the operation of a motor vehicle upon or
32 over the PUBLIC highways of this state, or in the operation of a pleas-
33 ure or recreational motor boat upon or over the waterways of the state
34 including waterways bordering on the state, shall be reimbursed the
35 amount of such tax in the manner and subject to the conditions herein
36 provided except that there shall be no reimbursement of tax paid on
37 motor fuel or diesel motor fuel taken out of this state in a fuel tank
38 connected with the engine of a motor vehicle and consumed outside of
39 this state.
40 (c) All claims for reimbursement shall be in such form and contain
41 such information as the commissioner shall prescribe and shall be filed
42 within three years from (i) the date of the purchase, in the case of the
43 purchaser; or (ii) the date of the sale, in the case of the seller, of
44 the motor fuel so subject to reimbursement. Every such claim shall
45 include a certificate by or on behalf of the party presenting the same
46 to the effect that it is just, true and correct, that no part thereof
47 has been paid, except as stated therein, and that the balance therein
48 stated is actually due and owing. The claimant shall satisfy the depart-
49 ment that the claimant has borne the tax and that the motor fuel has
50 been consumed by the claimant in a manner other than the operation of a
51 motor vehicle upon or over the PUBLIC highways of this state, the opera-
52 tion of a pleasure or recreational motorboat upon or over the waterways
53 of the state including waterways bordering on the state or, in the case
54 of an omnibus carrier, taxicab licensee, nonpublic school operator or
55 volunteer ambulance service, that the claimant has borne the tax and
56 that the amount claimed is the amount of such tax reimbursable under
A. 4011--B 57
1 paragraph (b), (d), (e) or (f) of THIS subdivision [three of this
2 section]. The department may require such further information or proof
3 as it shall deem necessary for the administration of such claim. Claims
4 for reimbursement approved by the department shall be paid from revenues
5 collected under this article and deposited to the credit of the comp-
6 troller as hereinafter provided; but no such claims shall be paid unless
7 the department is satisfied that the amount of the tax for which the
8 reimbursement is claimed has actually been collected by the state. The
9 amount of any erroneous or excessive payment to a claimant for
10 reimbursement may be determined by the department and may be recovered
11 from such claimant in the same manner as a tax imposed by this article,
12 provided, however, that any such determination shall be made within
13 three years after the date of such erroneous or excessive payment.
14 S 14. Subdivision 4 of sections 289-c of the tax law is REPEALED.
15 S 15. Subdivision 1 of section 289-e of the tax law, as amended by
16 section 5 of part EE of chapter 63 of the laws of 2000, is amended to
17 read as follows:
18 1. All taxes, interest, penalties and fees collected or received by
19 the commissioner under the taxes imposed by this article, except as
20 provided otherwise in subdivision two and subdivision three of this
21 section and sections two hundred eighty-two-b, two hundred eighty-two-c,
22 two hundred eighty-four-a and two hundred eighty-four-c, other than
23 [those imposed by section two hundred eighty-four-b and] the fee imposed
24 by section two hundred eighty-four-d and penalties and interest on such
25 fee, shall be deposited and disposed of pursuant to the provisions of
26 section one hundred seventy-one-a of this chapter; provided that an
27 amount equal to thirty-seven and one-half per centum of the moneys
28 collected under section two hundred eighty-four of this chapter shall be
29 appropriated and used for the acquisition of property necessary for the
30 construction and reconstruction of highways and bridges or culverts on
31 the state highway system, and for the construction, maintenance and
32 repair of such highways and bridges or culverts, all under the direction
33 of the commissioner of transportation.
34 S 16. Section 289-f of the tax law, as added by chapter 44 of the laws
35 of 1985, is amended to read as follows:
36 S 289-f. Joint administration of taxes. In addition to the powers
37 granted to the [tax commission] COMMISSIONER in this chapter, the
38 [commission] COMMISSIONER is hereby authorized to make provisions pursu-
39 ant to rules and regulations for the joint administration, in whole or
40 in part, of the state and local taxes imposed by article twenty-eight
41 and authorized to be imposed by article twenty-nine of this chapter upon
42 the sale of [automotive] MOTOR FUEL OR DIESEL MOTOR fuel and the taxes
43 imposed and authorized to be imposed by this article, including the
44 joint reporting, assessment, collection, determination and refund of
45 such taxes, and for that purpose to prescribe that any of the [commis-
46 sion's] COMMISSIONER'S functions under such articles, and any returns,
47 forms, statements, documents or information to be submitted to the
48 [commission] COMMISSIONER under such articles, any books and records to
49 be kept for purposes of the taxes imposed or authorized to be imposed by
50 such articles, any schedules of amounts to be collected under such arti-
51 cles, any registration required under such articles, and the payment of
52 taxes under such articles shall be on a joint basis with respect to the
53 taxes imposed by such articles.
54 S 17. Paragraph 2 of subdivision (b) and subdivisions (c), (k), (l)
55 and (m) of section 300 of the tax law, paragraph 2 of subdivision (b) as
56 amended by chapter 170 of the laws of 1994, subdivision (c) as added by
A. 4011--B 58
1 chapter 190 of the laws of 1990, subdivision (k) as amended by section 1
2 of part H of chapter 407 of the laws of 1999 and subdivisions (l) and
3 (m) as added by chapter 309 of the laws of 1996, are amended to read as
4 follows:
5 (2) With respect to diesel motor fuel, every corporation and unincor-
6 porated business (i) importing diesel motor fuel or causing diesel motor
7 fuel to be imported into the state for use, distribution, storage or
8 sale in the state, (ii) producing, refining, manufacturing or compound-
9 ing diesel motor fuel within the state, (iii) [engaging in the enhance-
10 ment of diesel motor fuel within the state, (iv)] making a sale or use
11 of diesel motor fuel in the state, other than a retail sale not in bulk
12 or self-use of diesel motor fuel which has been the subject of a retail
13 sale to such corporation or unincorporated business, or [(v)] (IV)
14 registered by the department [of taxation and finance] as a "distributor
15 of kero-jet fuel only" pursuant to the provisions of subdivision two of
16 section two hundred eighty-two-a of this chapter. Diesel motor fuel
17 brought into this state in the ordinary fuel tank connecting with the
18 engine of a motor vehicle, airplane or other conveyance, but not a
19 vessel (other than a recreational motor boat or a commercial fishing
20 vessel as defined in subdivision (j) of this section if the diesel motor
21 fuel imported into and consumed in this state is used to operate such
22 vessel while it is engaged in the harvesting of fish for sale),
23 propelled by the use of such diesel motor fuel and to be used only in
24 the operation thereof, shall not be deemed imported within the meaning
25 of this article, if not removed from such tank except as used in the
26 propulsion of such engine.
27 (c) [(1)] The [term (A)] TERMS (1) "diesel motor fuel" means such term
28 as defined in subdivision fourteen of section two hundred eighty-two of
29 this chapter [and regulations thereunder including any regulations
30 relating to product specifically designated "No. 4 diesel fuel" and not
31 suitable as a fuel used in the operation of a motor vehicle engine], and
32 [(B) "enhanced] (2) "HIGHWAY diesel motor fuel" means such term as
33 defined in subdivision [sixteen] SIXTEEN-A of section two hundred eight-
34 y-two of this chapter, and
35 [(C)(i) "nonautomotive type diesel motor fuel" as used in relation to
36 the rates of the tax imposed by section three hundred one-a of this
37 article means any diesel motor fuel, as described in subparagraph (A) of
38 this paragraph, which would be excluded from the diesel motor fuel
39 excise tax imposed by section two hundred eighty-two-a of this chapter
40 solely by reason of the enumerated exclusions based on ultimate use of
41 the product set forth in paragraph (b) of subdivision three of such
42 section, and (ii) "automotive-type diesel motor fuel" as used in
43 relation to the rates of tax imposed by such section three hundred one-a
44 means diesel motor fuel which is not nonautomotive-type diesel motor
45 fuel.]
46 (3) "NON-HIGHWAY DIESEL MOTOR FUEL" MEANS SUCH TERM AS DEFINED IN
47 SUBDIVISION SIXTEEN OF SECTION TWO HUNDRED EIGHTY-TWO OF THIS CHAPTER.
48 [(2)] (4) As used in this article, references to persons or petroleum
49 businesses registered under article twelve-A of this chapter as distrib-
50 utors of diesel motor fuel shall include all such persons or petroleum
51 businesses registered under such article as distributors of diesel motor
52 fuel and persons or petroleum businesses operating under valid limited
53 registrations relating to persons or petroleum businesses making retail
54 sales of diesel motor fuel to consumers solely for the purposes
55 described in subparagraph (i) of paragraph (b) of subdivision three of
56 section two hundred eighty-two-a of this chapter, but such references
A. 4011--B 59
1 shall not include persons and petroleum businesses registered as
2 "distributors of kero-jet fuel only" pursuant to the provisions of
3 subdivision two of section two hundred eighty-two-a of this chapter.
4 (k) "Commercial gallonage" means gallonage (1) which is [nonautomo-
5 tive-type] NON-HIGHWAY diesel motor fuel [(which is not enhanced diesel
6 motor fuel)] or residual petroleum product, (2) which is included in the
7 full measure of the [nonautomotive-type] NON-HIGHWAY diesel motor fuel
8 component or the residual petroleum product component of the tax imposed
9 under section three hundred one-a of this article, [and] (3) which does
10 not (and will not) qualify (A) for the utility credit or reimbursement
11 provided for in section three hundred one-d of this article, (B) as
12 "manufacturing gallonage", as such term is defined in subdivision (m) of
13 this section, (C) for the not-for-profit organization exemption provided
14 for in subdivision (h) of section three hundred one-b of this article,
15 or (D) for the heating exemption provided for in paragraph two of subdi-
16 vision (d) of section three hundred one-b of this article or the heating
17 reimbursement provided for in paragraph two of subdivision (a) of
18 section three hundred one-c of this article, AND (4) WHICH WILL NOT BE
19 USED NOR HAS BEEN USED IN THE FUEL TANK CONNECTING WITH THE ENGINE OF A
20 VESSEL. No gallonage shall qualify as "commercial gallonage" where such
21 gallonage is eligible for the (i) utility credit or reimbursement under
22 such section three hundred one-d of this article, (ii) [if before Janu-
23 ary first, nineteen hundred ninety-eight, the manufacturing exemption or
24 reimbursement under paragraph one of subdivision (b) of section three
25 hundred one-j of this article and, if on or after January first, nine-
26 teen hundred ninety-eight, the] "manufacturing exemption" under para-
27 graph [four] THREE of subdivision (f) of section three hundred one-a of
28 this article, (iii) [the] not-for-profit organization exemption under
29 subdivision (h) of section three hundred one-b of this article, or (iv)
30 heating exemption provided for in paragraph two of subdivision (d) of
31 section three hundred one-b of this article or the heating reimbursement
32 provided for in paragraph two of subdivision (a) of section three
33 hundred one-c of this article. The commissioner shall require such docu-
34 mentary proof to substantiate the classification of product as "commer-
35 cial gallonage" as the commissioner deems appropriate.
36 (l) "Railroad diesel" means NON-HIGHWAY diesel motor fuel for use and
37 consumption directly and exclusively in the operation of a locomotive or
38 a self-propelled vehicle run only on rails or tracks, but only if either
39 (1) all such fuel is delivered into a storage facility which is not
40 equipped with a hose or other apparatus by which such fuel can be
41 dispensed into the fuel tank of a motor vehicle and such facility is
42 used only to fuel such locomotives or such self-propelled vehicles, or
43 (2) in accordance with the terms of sale, all such fuel is delivered
44 directly into the tank of a locomotive or self-propelled vehicle.
45 Provided, however, that a sale to a purchaser who will use such
46 NON-HIGHWAY diesel motor fuel as "railroad diesel" shall be evidenced by
47 a certificate signed by the purchaser stating that such diesel motor
48 fuel will be used and consumed as prescribed in this subdivision and the
49 commissioner may require such other information as the commissioner
50 deems appropriate.
51 (m) "Manufacturing gallonage" means residual petroleum product or
52 NON-HIGHWAY diesel motor fuel [(which is not enhanced diesel motor
53 fuel)] used and consumed directly and exclusively in the production of
54 tangible personal property for sale by manufacturing, processing or
55 assembly, but only if (I) all of such fuel or product is delivered on
56 the manufacturing site [and is consumed other than on the highways of
A. 4011--B 60
1 this state], OR (II) THE PURCHASER CAUSES SUCH FUEL OR PRODUCT TO BE
2 DELIVERED TO ITS MANUFACTURING SITE. "Manufacturing gallonage" shall in
3 no event [include diesel motor fuel] BE CONSUMED ON THE PUBLIC HIGHWAYS
4 OF THIS STATE OR delivered at a filling station or into a repository
5 which is equipped with a hose or other apparatus by which such fuel can
6 be dispensed into the fuel tank of a motor vehicle. The commissioner
7 shall require such documentary proof to substantiate the classification
8 of product as "manufacturing gallonage" as the commissioner deems appro-
9 priate.
10 S 18. Section 301 of the tax law is REPEALED.
11 S 19. Subdivision (a), paragraph 1 of subdivision (b) and subdivisions
12 (c), (e), (f) and (h) of section 301-a of the tax law, subdivision (a)
13 as amended by section 1 of part U of chapter 63 of the laws of 2000,
14 paragraph 1 of subdivision (b) and paragraph 1 of subdivision (c) as
15 amended by section 154 of part A of chapter 389 of the laws of 1997,
16 subdivisions (c), (e), (f) and (h) as added by chapter 190 of the laws
17 of 1990, paragraph 3 of subdivision (e) and paragraph 3 of subdivision
18 (f) as amended by chapter 170 of the laws of 1994 and paragraph 4 of
19 subdivision (e) and paragraph 4 of subdivision (f) as added by chapter
20 309 of the laws of 1996, are amended to read as follows:
21 (a) General. Notwithstanding any other provision of this chapter, or
22 of any other law, [for taxable months commencing on or after the first
23 day of September, nineteen hundred ninety,] there is hereby imposed upon
24 every petroleum business for the privilege of engaging in business,
25 doing business, employing capital, owning or leasing property, or main-
26 taining an office in this state, a monthly tax for each or any part of a
27 taxable month equal to the sum of the motor fuel component determined
28 pursuant to subdivision (b) of this section, the [automotive-type] HIGH-
29 WAY diesel motor fuel component determined pursuant to paragraph one of
30 subdivision (c) of this section, the [nonautomotive-type] NON-HIGHWAY
31 diesel motor fuel component determined pursuant to paragraph two of
32 subdivision (c) of this section and the residual petroleum product
33 component determined pursuant to subdivision (d) of this section.
34 (1) The motor fuel component shall be determined by multiplying the
35 motor fuel and [automotive-type] HIGHWAY diesel motor fuel rate times
36 the number of gallons of (1) motor fuel imported or caused to be
37 imported into this state by the petroleum business for use, distrib-
38 ution, storage or sale in the state or (2) produced, refined, manufac-
39 tured or compounded in the state by the petroleum business during the
40 month covered by the return under this article. Provided, however, that
41 no motor fuel shall be included in the measure of the tax unless it
42 shall have previously come to rest within the meaning of federal deci-
43 sional law interpreting the United States constitution, nor shall any
44 motor fuel be included in the measure of the tax imposed by this article
45 more than once.
46 (c) (1) [Automotive-type] HIGHWAY Diesel motor fuel component. (A) The
47 [automotive-type] HIGHWAY diesel motor fuel component shall be deter-
48 mined by multiplying the motor fuel and [automotive-type] HIGHWAY diesel
49 motor fuel rate times (1) the number of gallons of [automotive-type]
50 HIGHWAY diesel motor fuel sold or used by a petroleum business in this
51 state during the month covered by the return under this article and (2)
52 with respect to any gallonage which prior thereto has not been included
53 in the measure of the tax imposed by this article, times the number of
54 gallons of HIGHWAY diesel motor fuel delivered (i) to a filling station
55 or (ii) into the fuel tank connecting with the engine of a motor vehicle
56 for use in the operation thereof, whichever of the latter two events
A. 4011--B 61
1 shall be the first to occur. Provided, however, that no HIGHWAY diesel
2 motor fuel shall be included in the measure of the tax unless it shall
3 have previously come to rest within the meaning of federal decisional
4 law interpreting the United States constitution, nor decisional law, nor
5 shall any HIGHWAY diesel motor fuel be included in the measure of the
6 tax imposed by this article more than once.
7 (B) [Diesel] HIGHWAY DIESEL motor fuel brought into this state in the
8 fuel tank connecting with the engine of a vessel propelled by the use of
9 such diesel motor fuel shall be deemed to constitute a taxable use of
10 diesel motor fuel for the purpose of this paragraph to the extent of the
11 fuel that is consumed in the operation of the vessel in this state.
12 Provided, however, this paragraph shall not apply to (i) a recreational
13 motor boat or (ii) [subsequent to August thirty-first, nineteen hundred
14 ninety-four,] a commercial fishing vessel (as defined in subdivision (j)
15 of section three hundred of this article) if the HIGHWAY diesel motor
16 fuel imported into and consumed in this state is used to operate such
17 commercial fishing vessel while it is engaged in the harvesting of fish
18 for sale. Provided, further, that tax liability for gallonage that a
19 vessel consumes in this state shall be the tax liability with respect to
20 the positive difference between the gallonage consumed in this state
21 during the reporting period and the gallonage purchased in this state
22 (upon which the tax imposed by this section has been paid) during such
23 period. A credit or refund shall be available for any excess of tax
24 liability for gallonage purchased in this state during the period over
25 tax liability on gallonage so consumed in this state during such period,
26 which excess shall be presumed to have been used outside this state.
27 (2) [Nonautomotive-type] NON-HIGHWAY diesel motor fuel component. The
28 [nonautomotive-type] NON-HIGHWAY diesel fuel component shall be deter-
29 mined by multiplying the [nonautomotive-type] NON-HIGHWAY diesel motor
30 fuel rate times the number of gallons of [nonautomotive-type] NON-HIGH-
31 WAY diesel motor fuel sold or used by a petroleum business in this state
32 during the month covered by the return under this section. Provided,
33 however, that no NON-HIGHWAY diesel motor fuel shall be included in the
34 measure of the tax unless it shall have previously come to rest within
35 the meaning of federal decisional law interpreting the United States
36 constitution, nor shall any [nonautomotive-type] NON-HIGHWAY diesel
37 motor fuel be included in the measure of the tax imposed by this article
38 more than once.
39 (e) Motor fuel and [automotive-type] HIGHWAY diesel motor fuel rate.
40 (1) The basic motor fuel and HIGHWAY diesel [automotive-type] motor fuel
41 rate shall be [five and one-half] TEN AND TWO-TENTHS cents per gallon.
42 (2) [Commencing April first, nineteen hundred ninety-one, the motor
43 fuel and automotive-type diesel motor fuel rate shall be the product of
44 the basic rate set forth in paragraph one of this subdivision multiplied
45 by a fraction, the numerator of which is the sum of the monthly producer
46 price index (unadjusted) published by the bureau of labor statistics of
47 the United States department of labor for the category of commodities
48 designated "refined petroleum products" for the twelve consecutive
49 months ending with the month of November, nineteen hundred ninety, and
50 the denominator of which is the sum of the monthly producer price index
51 (unadjusted) published by the bureau of labor statistics of the United
52 States department of labor for the category of commodities designated
53 "refined petroleum products" for the twelve consecutive months ending
54 with the month of November, nineteen hundred eighty-nine.
55 (3) Commencing on the first day of January, nineteen hundred ninety-
56 two, the motor fuel and automotive-type diesel motor fuel rate then in
A. 4011--B 62
1 effect on the immediately preceding December thirty-first shall be
2 adjusted as follows: such rate shall be multiplied by a fraction the
3 numerator of which is the sum of the monthly producer price index (unad-
4 justed) published by the bureau of labor statistics of the United States
5 department of labor for the category of commodities designated "refined
6 petroleum products" for the twelve consecutive months ending with the
7 month of August, nineteen hundred ninety-one and the denominator of
8 which is the sum of the monthly producer price index (unadjusted)
9 published by the bureau of labor statistics of the United States depart-
10 ment of labor for the category of commodities designated "refined petro-
11 leum products" for the twelve consecutive months ending with the month
12 of August, nineteen hundred ninety. Commencing on the first day of Janu-
13 ary of nineteen hundred ninety-six and every] EVERY year [thereafter] AS
14 OF JANUARY FIRST, the motor fuel and [automotive-type] HIGHWAY diesel
15 motor fuel rate then in effect on the immediately preceding December
16 thirty-first shall be adjusted as follows: such rate shall be multiplied
17 by a fraction the numerator of which is the sum of the monthly producer
18 price index (unadjusted) published by the bureau of labor statistics of
19 the United States department of labor for the category of commodities
20 designated "refined petroleum products" for the twelve consecutive
21 months ending with the month of August of the immediately preceding year
22 and the denominator of which is the sum of the monthly producer price
23 index (unadjusted) published by the bureau of labor statistics of the
24 United States department of labor for the category of commodities desig-
25 nated "refined petroleum products" for the twelve consecutive months
26 ending with the month of August in the year prior to such immediately
27 preceding year, provided, however, that the adjusted rate [to take
28 effect on January first, nineteen hundred ninety-six and each January
29 first thereafter] shall not increase above or decrease below the rate in
30 effect on the immediately preceding December thirty-first by more than
31 five percent.
32 [(4)] (3) Notwithstanding any other provision of this article,
33 [commencing January first, nineteen hundred ninety-seven,] the per
34 gallon rate with respect to "railroad diesel" shall be the adjusted
35 motor fuel and [automotive-type] HIGHWAY diesel motor fuel rate under
36 paragraphs one [through three] AND TWO of this subdivision [for the
37 period commencing such January first, nineteen hundred ninety-seven,]
38 minus one and three tenths cents per gallon. [Commencing on the first
39 day of January each year thereafter, the per gallon rate with respect to
40 "railroad diesel" shall be determined by taking the then motor fuel and
41 automotive-type diesel motor fuel rate under paragraphs one through
42 three of this subdivision which commences on such first day of January
43 and subtracting one and three tenths cents per gallon.]
44 (f) [Nonautomotive-type] NON-HIGHWAY diesel motor fuel rate.
45 (1) The basic [nonautomotive-type] NON-HIGHWAY diesel motor fuel rate
46 shall be [five] NINE AND THREE-TENTHS cents per gallon.
47 (2) [Commencing April first, nineteen hundred ninety-one, the nonauto-
48 motive-type diesel motor fuel rate shall be the product of the basic
49 rate set forth in paragraph one of this subdivision multiplied by a
50 fraction the numerator of which is the sum of the monthly producer price
51 index (unadjusted) published by the bureau of labor statistics of the
52 United States department of labor for the category of commodities desig-
53 nated "refined petroleum products" for the twelve consecutive months
54 ending with the month of November, nineteen hundred ninety, and the
55 denominator of which is the sum of the monthly producer price index
56 (unadjusted) published by the bureau of the labor statistics of the
A. 4011--B 63
1 United States department of labor for the category of commodities desig-
2 nated "refined petroleum products" for the twelve consecutive months
3 ending with the month of November, nineteen hundred eighty-nine.
4 (3) Commencing on the first day of January, nineteen hundred ninety-
5 two, the nonautomotive-type diesel motor fuel rate then in effect on the
6 immediately preceding December thirty-first shall be adjusted as
7 follows: Such rate shall be multiplied by a fraction the numerator of
8 which is the sum of the monthly producer price index (unadjusted)
9 published by the bureau of labor statistics of the United States depart-
10 ment of labor for the category of commodities designated "refined petro-
11 leum products" for the twelve consecutive months ending with the month
12 of August, nineteen hundred ninety-one and the denominator of which is
13 the sum of the monthly producer price index (unadjusted) published by
14 the bureau of labor statistics of the United States department of labor
15 for the category of commodities designated "refined petroleum products"
16 for the twelve consecutive months ending with the month of August, nine-
17 teen hundred ninety. Commencing on the first day of January of nineteen
18 hundred ninety-six and every] EVERY year [thereafter,] AS OF JANUARY
19 FIRST the [nonautomotive-type] NON-HIGHWAY diesel motor fuel rate then
20 in effect on the immediately preceding December thirty-first shall be
21 adjusted as follows: Such rate shall be multiplied by a fraction the
22 numerator of which is the sum of the monthly producer price index (unad-
23 justed) published by the bureau of labor statistics of the United States
24 department of labor for the category of commodities designated "refined
25 petroleum products" for the twelve consecutive months ending with the
26 month of August of the immediately preceding year and the denominator of
27 which is the sum of the monthly producer price index (unadjusted)
28 published by the bureau of labor statistics of the United States depart-
29 ment of labor for the category of commodities designated "refined petro-
30 leum products" for the twelve consecutive months ending with the month
31 of August in the year prior to such immediately preceding year,
32 provided, however, that the adjusted rate [to take effect on January
33 first, nineteen hundred ninety-six and each January first thereafter]
34 shall not increase above or decrease below the rate in effect on the
35 immediately preceding December thirty-first by more than five percent.
36 [(4)] (3) Notwithstanding any other provision of this article,
37 [commencing January first, nineteen hundred ninety-eight, nonautomo-
38 tive-type] NON-HIGHWAY diesel motor fuel which is "manufacturing gallo-
39 nage," as such term is defined in subdivision (m) of section three
40 hundred of this article, shall be exempt from the measure of the [nonau-
41 tomotive-type] NON-HIGHWAY diesel motor fuel component of the tax
42 imposed under this section.
43 (h) Publication and rounding of rate. (1) The commissioner [of taxa-
44 tion and finance] shall cause to be published in the section for miscel-
45 laneous notices in the state register, and give other appropriate gener-
46 al notice of, the rate adjustment calculation and the resulting motor
47 fuel and [automotive-type] HIGHWAY diesel motor fuel rate, [nonautomo-
48 tive-type] NON-HIGHWAY diesel motor fuel rate and residual petroleum
49 product rate fixed by this section for the period commencing on [April
50 first, nineteen hundred ninety-one, no later than the immediately
51 preceding first day of March] JANUARY FIRST, TWO THOUSAND TWELVE, and
52 for each calendar year thereafter, no later than the immediately preced-
53 ing first day of December. The calculation and publication of the rates
54 of tax so fixed by provisions of this section shall not be included
55 within paragraph (a) of subdivision two of section one hundred two of
A. 4011--B 64
1 the state administrative procedure act relating to the definition of a
2 rule.
3 (2) The rates determined pursuant to this section shall be rounded to
4 the nearest one-tenth of one cent.
5 S 19-a. Subdivision (k) of section 301-a of the tax law is REPEALED.
6 S 20. Section 301-a of the tax law is amended by adding a new subdivi-
7 sion (m) to read as follows:
8 (M) SPECIAL RATE ADJUSTMENT FOR CERTAIN VESSELS. NOTWITHSTANDING ANY
9 PROVISION OF THIS SECTION TO THE CONTRARY, THE USE OF NON-HIGHWAY DIESEL
10 MOTOR FUEL IN THE ENGINE OF A VESSEL TO PROPEL SUCH VESSEL SHALL BE
11 SUBJECT TO TAX AT THE MOTOR FUEL AND HIGHWAY DIESEL MOTOR FUEL RATE
12 PROVIDED FOR IN THIS SECTION, AND SHALL BE SUBJECT TO THE PROVISIONS OF
13 SECTION THREE HUNDRED ONE-J OF THIS ARTICLE, INCLUDING THE ADJUSTMENT
14 SET FORTH IN PARAGRAPH FOUR OF SUBDIVISION (A) OF SUCH SECTION THREE
15 HUNDRED ONE-J. A CREDIT OR REFUND SHALL BE AVAILABLE TO THE EXTENT TAX
16 PAID ON GALLONAGE USED TO PROPEL ANY SUCH VESSEL EXCEEDS THE AMOUNT OF
17 TAX DUE BASED ON THE TAX RATE SET FORTH HEREIN. PROVIDED, HOWEVER, THAT
18 THE COMMISSIONER SHALL REQUIRE SUCH DOCUMENTARY PROOF TO QUALIFY FOR ANY
19 CREDIT OR REIMBURSEMENT PROVIDED HEREUNDER AS THE COMMISSIONER DEEMS
20 APPROPRIATE.
21 S 21. Paragraph 2 of subdivision (b), paragraphs 2 and 3 of subdivi-
22 sion (c), subdivisions (d) and (e), paragraph 1 of subdivision (f) and
23 subdivisions (g), (h) and (i) of section 301-b of the tax law, paragraph
24 2 of subdivision (b) and paragraphs 2 and 3 of subdivision (c) and
25 subdivision (e) as added by chapter 190 of the laws of 1990, the opening
26 paragraph of paragraph 2 of subdivision (b) as amended by section 155 of
27 part A of chapter 389 of the laws of 1997, subdivision (d) as amended by
28 section 2 of part H of chapter 407 of the laws of 1999 and subparagraph
29 (C) of paragraph 2 of subdivision (d) as amended by section 1 of part X
30 of chapter 63 of the laws of 2000, paragraph 1 of subdivision (f) as
31 added by chapter 166 of the laws of 1991, subdivision (g) as added by
32 chapter 170 of the laws of 1994, subdivision (h) as amended by chapter
33 302 of the laws of 2006 and subdivision (i) as added by chapter 468 of
34 the laws of 2000, are amended to read as follows:
35 (2) [Enhanced] HIGHWAY diesel motor fuel imported or caused to be
36 imported into this state or produced, refined, manufactured or
37 compounded in this state by a petroleum business registered under arti-
38 cle twelve-A of this chapter, as a distributor of diesel motor fuel,
39 which is sold by such petroleum business to a purchaser who then exports
40 such HIGHWAY diesel motor fuel from this state for sale or use outside
41 the state where
42 (A) such purchaser exporting such fuel is duly registered with or
43 licensed by the taxing authorities of the state to which such fuel is
44 exported as a distributor or a dealer in the product being so exported,
45 (B) in connection with the exportation, such fuel was immediately
46 shipped to an identified facility in the state to which such fuel is
47 exported, and
48 (C) the rules and regulations of the commissioner [of taxation and
49 finance] relating to evidentiary requirements are complied with.
50 (2) [Enhanced] HIGHWAY diesel motor fuel imported or caused to be
51 imported into this state or produced, refined, manufactured or
52 compounded by a petroleum business registered under article twelve-A of
53 this chapter, as a distributor of diesel motor fuel, and then sold by
54 such petroleum business to an organization described in paragraph one or
55 two of subdivision (a) of section eleven hundred sixteen of this chapter
A. 4011--B 65
1 where such HIGHWAY DIESEL motor fuel is used by such organization for
2 its own use or consumption.
3 (3) NON-HIGHWAY Diesel motor fuel[, which is not enhanced diesel motor
4 fuel,] sold by a petroleum business registered under article twelve-A of
5 this chapter as a distributor of diesel motor fuel to an organization
6 described in paragraph one or two of subdivision (a) of section eleven
7 hundred sixteen of this chapter where such NON-HIGHWAY diesel motor fuel
8 is used by such organization for its own use or consumption.
9 (d) Sales to consumers for heating purposes. (1) Total residential
10 heating exemption. [(A) Unenhanced] NON-HIGHWAY diesel motor fuel sold
11 by a petroleum business registered under article twelve-A of this chap-
12 ter as a distributor of diesel motor fuel or residual petroleum product
13 sold by a petroleum business registered under this article as a residual
14 petroleum product business to the consumer exclusively for residential
15 heating purposes[.
16 (B) Enhanced diesel motor fuel sold by a petroleum business registered
17 under article twelve-A of this chapter as a distributor of diesel motor
18 fuel to the consumer exclusively for residential heating purposes but]
19 only if such [enhanced] NON-HIGHWAY diesel motor fuel is delivered into
20 a storage tank which is not equipped with a hose or other apparatus by
21 which such fuel can be dispensed into the fuel tank of a motor vehicle
22 and such storage tank is attached to the heating unit burning such
23 fuel[, provided, that with respect to each delivery of such fuel over
24 four thousand five hundred gallons, to obtain this exemption there shall
25 be required a certificate signed by the purchaser stating that the prod-
26 uct will be used exclusively for residential heating purposes].
27 (2) Partial non-residential heating exemption. (A) [Unenhanced]
28 NON-HIGHWAY diesel motor fuel sold by a petroleum business registered
29 under article twelve-A of this chapter as a distributor of diesel motor
30 fuel or residual petroleum product sold by a petroleum business regis-
31 tered under this article as a residual petroleum product business to the
32 consumer exclusively for heating, other than residential heating
33 purposes[.
34 (B) Enhanced diesel motor fuel sold by a petroleum business registered
35 under article twelve-A of this chapter as a distributor of diesel motor
36 fuel to the consumer exclusively for heating, other than residential
37 heating purposes, but] only if such [enhanced] NON-HIGHWAY diesel motor
38 fuel is delivered into a storage tank which is not equipped with a hose
39 or other apparatus by which such fuel can be dispensed into the fuel
40 tank of a motor vehicle and such storage tank is attached to the heating
41 unit burning such fuel[, provided, that with respect to each delivery of
42 such fuel over four thousand five hundred gallons, to obtain this
43 exemption there shall be required a certificate signed by the purchaser
44 stating that the product will be used exclusively for heating, other
45 than residential heating purposes.
46 (C)] (B) Calculation of partial exemption. [Notwithstanding any other
47 provision of this article, commencing April first, two thousand one and
48 ending August thirty-first, two thousand two, the amount of the partial
49 exemption under this paragraph shall be determined by multiplying the
50 quantity of diesel motor fuel and residual petroleum product eligible
51 for the exemption times the sum of the then current rate of the supple-
52 mental tax imposed by section three hundred one-j of this article and
53 twenty percent of the then current rate of the tax imposed by section
54 three hundred one-a of this article, with respect to the specific diesel
55 motor fuel or residual petroleum product rate, as the case may be, and
56 commencing September first, two thousand two, the amount of the] THE
A. 4011--B 66
1 partial exemption under this paragraph shall be determined by multiply-
2 ing the quantity of NON-HIGHWAY diesel motor fuel and residual petroleum
3 product eligible for the exemption times the sum of the then current
4 rate of the supplemental tax imposed by section three hundred one-j of
5 this article and forty-six percent of the then current rate of the tax
6 imposed by section three hundred one-a of this article, with respect to
7 the specific NON-HIGHWAY diesel motor fuel or residual petroleum product
8 rate, as the case may be.
9 (e) Sales of NON-HIGHWAY diesel motor fuel and residual petroleum
10 product to registered distributors of diesel motor fuel and registered
11 residual petroleum product businesses.
12 (1) NON-HIGHWAY Diesel motor fuel[, which is not enhanced diesel motor
13 fuel,] sold by a person registered under article twelve-A of this chap-
14 ter as a distributor of diesel motor fuel to a person registered under
15 such article twelve-A as a distributor of diesel motor fuel where such
16 sale is not a retail sale or a sale that involves a delivery at a fill-
17 ing station or into a repository equipped with a hose or other apparatus
18 by which such NON-HIGHWAY DIESEL MOTOR fuel can be dispensed into the
19 fuel tank of a motor vehicle.
20 (2) Residual petroleum product sold by a person registered under this
21 article as a residual petroleum product business to a person registered
22 under this article as a residual petroleum product business where such
23 sale is not a retail sale. Provided, however, that the commissioner [of
24 taxation and finance] may require such documentary proof to qualify for
25 any exemption provided in this section as the commissioner deems appro-
26 priate, including the expansion of any certifications required pursuant
27 to section two hundred eighty-five-a or two hundred eighty-five-b of
28 this chapter to cover the taxes imposed by this article.
29 (1) Residual petroleum product and NON-HIGHWAY diesel motor fuel
30 [(which is not enhanced diesel motor fuel)] sold to an electric corpo-
31 ration, as described in subdivision (a) of section three hundred one-d
32 of this article, which is registered with the department [of taxation
33 and finance] as a petroleum business tax direct pay permittee, and used
34 by such electric corporation to fuel generators for the purpose of manu-
35 facturing or producing electricity where such electric corporation
36 provides a copy of a direct pay permit authorized and issued by the
37 commissioner [of taxation and finance], to the petroleum business making
38 such sale. If so registered, such corporation shall be a taxpayer under
39 this article and (i) such electric corporation shall file a return
40 monthly and pay the applicable tax under this article, after the appli-
41 cation of allowable credits, on all such purchases directly to the
42 commissioner, (ii) such electric corporation shall be subject to all of
43 the provisions of this article relating to the responsibilities and
44 liabilities of taxpayers under this article with respect to such resi-
45 dual petroleum product and NON-HIGHWAY diesel motor fuel.
46 (g) Sales or uses of NON-HIGHWAY diesel motor fuel and residual petro-
47 leum product for farm production. NON-HIGHWAY Diesel motor fuel or resi-
48 dual petroleum product sold to or used by a consumer who purchases or
49 uses such NON-HIGHWAY DIESEL MOTOR fuel or product for use or consump-
50 tion directly and exclusively in the production for sale of tangible
51 personal property by farming, but only if all such NON-HIGHWAY DIESEL
52 MOTOR fuel or product is delivered on the farm site and is consumed
53 other than on the PUBLIC highways of this state (except for the use of
54 the PUBLIC highway to reach adjacent farmlands)[; provided, however,
55 that a farmer may purchase no more than four thousand five hundred
56 gallons of diesel motor fuel in a thirty-day period for such use or
A. 4011--B 67
1 consumption exempt from the measure of the tax imposed by section three
2 hundred one-a of this article, except in accordance with prior clearance
3 given by the commissioner].
4 (h) Exemption for certain not-for-profit organizations. There shall be
5 exempt from the measure of the petroleum business tax imposed by section
6 three hundred one-a of this article a sale or use of residual petroleum
7 product, OR NON-HIGHWAY diesel motor fuel [(which is not enhanced diesel
8 motor fuel) or dyed diesel motor fuel,] to or by an organization which
9 has qualified under paragraph four or five of subdivision (a) of section
10 eleven hundred sixteen of this chapter where such NON-HIGHWAY diesel
11 motor fuel or residual petroleum product is exclusively for use and
12 consumption by such organization, but only if all of such NON-HIGHWAY
13 diesel motor fuel or product is consumed other than on the PUBLIC high-
14 ways of this state. Provided, however, this exemption shall in no event
15 apply to a sale of NON-HIGHWAY diesel motor fuel which involves a deliv-
16 ery at a filling station or into a repository which is equipped with a
17 hose or other apparatus by which such NON-HIGHWAY DIESEL MOTOR fuel can
18 be dispensed into the fuel tank of a motor vehicle and all deliveries
19 hereunder shall be made to the premises occupied by the qualifying
20 organization and used by such organization in furtherance of the exempt
21 purposes of such organization. Provided, however, that the commissioner
22 shall require such documentary proof to qualify for any exemption
23 provided herein as the commissioner deems appropriate. Provided,
24 further, the distributor selling such NON-HIGHWAY DIESEL MOTOR fuel and
25 product shall separately report on its return the gallonage sold during
26 the reporting period exempt from tax under the provisions of this subdi-
27 vision and provide such other information with respect to such sales as
28 the commissioner deems appropriate to prevent evasion. [The term "dyed
29 diesel motor fuel" as used in this subdivision shall have the same mean-
30 ing it has in subdivision eighteen of section two hundred eighty-two of
31 this chapter.]
32 (i) Exemption for passenger commuter ferries. A use by a passenger
33 commuter ferry of NON-HIGHWAY diesel motor fuel or residual petroleum
34 product where such NON-HIGHWAY diesel motor fuel or residual petroleum
35 product was used and consumed by a passenger commuter ferry exclusively
36 in providing mass transportation service. Provided, that the commission-
37 er shall require such documentary proof to qualify for any exemption
38 provided hereunder as the commissioner deems appropriate.
39 S 22. Subdivision (j) of section 301-b of the tax law is REPEALED.
40 S 23. Subdivisions (a), (e), (f), (h), (i), (j), (k), (l) and (m) of
41 section 301-c of the tax law, subdivision (a) as amended by section 4
42 and subdivision (l) as added by section 5 of part H of chapter 407 of
43 the laws of 1999, subparagraph (B) of paragraph 2 of subdivision (a) as
44 amended by section 2 of part X of chapter 63 of the laws of 2000, subdi-
45 visions (e) and (f) as added by chapter 170 of the laws of 1994, subdi-
46 vision (h) as amended by chapter 302 of the laws of 2006, subdivisions
47 (i), (j) and (k) as added by chapter 309 of the laws of 1996, and subdi-
48 vision (m) as added by chapter 468 of the laws of 2000, are amended to
49 read as follows:
50 (a) NON-HIGHWAY Diesel motor fuel used for heating purposes. (1) Total
51 residential heating reimbursement. NON-HIGHWAY Diesel motor fuel
52 purchased in this state and sold by such purchaser to a consumer for use
53 exclusively for residential heating purposes but only where (i) such
54 NON-HIGHWAY diesel motor fuel is delivered into a storage tank which is
55 not equipped with a hose or other apparatus by which such NON-HIGHWAY
56 DIESEL MOTOR fuel can be dispensed into the fuel tank of a motor vehicle
A. 4011--B 68
1 and such storage tank is attached to the heating unit burning such NON-
2 HIGHWAY DIESEL MOTOR fuel, (ii) the tax imposed pursuant to this article
3 has been paid with respect to such NON-HIGHWAY diesel motor fuel and the
4 entire amount of such tax has been absorbed by such purchaser, and (iii)
5 such purchaser possesses documentary proof satisfactory to the commis-
6 sioner evidencing the absorption by it of the entire amount of the tax
7 imposed pursuant to this article. Provided, however, that the commis-
8 sioner is authorized, in the event that the commissioner determines that
9 it would not threaten the integrity of the administration and enforce-
10 ment of the tax imposed by this article, to provide a reimbursement with
11 respect to a retail sale to a consumer for residential heating purposes
12 of less than ten gallons of NON-HIGHWAY diesel motor fuel provided such
13 fuel is not dispensed into the tank of a motor vehicle. [Provided,
14 further, that with respect to each delivery of enhanced diesel motor
15 fuel of over four thousand five hundred gallons, to obtain this
16 reimbursement there shall be required a certificate signed by the
17 consumer stating that the product will be used exclusively for residen-
18 tial heating purposes.]
19 (2) Partial non-residential heating reimbursement. (A) NON-HIGHWAY
20 Diesel motor fuel purchased in this state and sold by such purchaser to
21 a consumer for use exclusively for heating, other than for residential
22 heating purposes, but only where (i) such NON-HIGHWAY diesel motor fuel
23 is delivered into a storage tank which is not equipped with a hose or
24 other apparatus by which such NON-HIGHWAY DIESEL MOTOR fuel can be
25 dispensed into the fuel tank of a motor vehicle and such storage tank is
26 attached to the heating unit burning such NON-HIGHWAY DIESEL MOTOR fuel,
27 (ii) the tax imposed pursuant to this article has been paid with respect
28 to such NON-HIGHWAY diesel motor fuel and the entire amount of such tax
29 has been absorbed by such purchaser, and (iii) such purchaser possesses
30 documentary proof satisfactory to the commissioner evidencing the
31 absorption by it of the entire amount of the tax imposed pursuant to
32 this article. [Provided, however, that with respect to each delivery of
33 enhanced diesel motor fuel of over four thousand five hundred gallons,
34 to obtain this reimbursement there shall be required a certificate
35 signed by the consumer stating that the product will be used exclusively
36 for heating, other than for residential heating purposes.]
37 (B) Calculation of partial reimbursement. Notwithstanding any other
38 provision of this article, [commencing April first, two thousand one and
39 ending August thirty-first, two thousand two, the amount of the
40 reimbursement under this paragraph shall be determined by multiplying
41 the quantity of diesel motor fuel eligible for the reimbursement times
42 the sum of the then current rate of the supplemental tax imposed by
43 section three hundred one-j of this article and twenty percent of the
44 then current rate of the tax imposed by section three hundred one-a of
45 this article, with respect to the specific diesel motor fuel rate, as
46 the case may be, and commencing September first, two thousand two,] the
47 amount of the reimbursement under this paragraph shall be determined by
48 multiplying the quantity of NON-HIGHWAY diesel motor fuel eligible for
49 the reimbursement times the sum of the then current rate of the supple-
50 mental tax imposed by section three hundred one-j of this article and
51 forty-six percent of the then current rate of the tax imposed by section
52 three hundred one-a of this article, with respect to the [specific]
53 NON-HIGHWAY diesel motor fuel rate, as the case may be.
54 (e) NON-HIGHWAY Diesel motor fuel and residual petroleum product used
55 for farm production. NON-HIGHWAY Diesel motor fuel or residual petroleum
56 product purchased in this state and sold by such purchaser to a consumer
A. 4011--B 69
1 for use or consumption directly and exclusively in the production for
2 sale of tangible personal property by farming, but only if all of such
3 NON-HIGHWAY DIESEL MOTOR fuel or product is delivered on the farm site
4 and is consumed other than on the PUBLIC highways of this state (except
5 for the use of the PUBLIC highway to reach adjacent farmlands)[;
6 provided, however, that a subsequent purchaser shall be eligible for
7 this reimbursement with respect to no more than four thousand five
8 hundred gallons of diesel motor fuel sold to a consumer in a thirty-day
9 period for such use or consumption, except in accordance with prior
10 clearance given by the commissioner]. This reimbursement may be claimed
11 only where (i) the tax imposed pursuant to this article has been paid
12 with respect to such NON-HIGHWAY diesel motor fuel or residual petroleum
13 product and the entire amount of such tax has been absorbed by such
14 purchaser, and (ii) such purchaser possesses documentary proof satisfac-
15 tory to the commissioner evidencing the absorption by it of the entire
16 amount of the tax imposed pursuant to this article. Provided, however,
17 that the commissioner shall require such documentary proof to qualify
18 for any reimbursement of tax provided by this section as the commission-
19 er deems appropriate[, including any certification required pursuant to
20 section two hundred eighty-five-b of this chapter and any such prior
21 clearance described in the first sentence of this subdivision].
22 (f) Motor fuel used for farm production. No more than one thousand
23 five hundred gallons of motor fuel purchased in this state in a thirty-
24 day period or a greater amount which has been given prior clearance by
25 the commissioner, by a consumer for use or consumption directly and
26 exclusively in the production for sale of tangible personal property by
27 farming, but only if all of such fuel is delivered on the farm site and
28 is consumed other than on the PUBLIC highways of this state (except for
29 the use of the PUBLIC highway to reach adjacent farmlands). This
30 reimbursement to such purchaser who used such motor fuel in the manner
31 specified in this subdivision may be claimed only where, (i) the tax
32 imposed pursuant to this article has been paid with respect to such
33 motor fuel and the entire amount of such tax has been absorbed by such
34 purchaser, and (ii) such purchaser possesses documentary proof satisfac-
35 tory to the commissioner evidencing the absorption by it of the entire
36 amount of the tax imposed pursuant to this article. Provided, however,
37 that the commissioner shall require such documentary proof to qualify
38 for any reimbursement of tax provided by this subdivision as the commis-
39 sioner deems appropriate. The commissioner is hereby empowered to make
40 such provisions as deemed necessary to define the procedures for grant-
41 ing prior clearance for purchases of more than one thousand five hundred
42 gallons in a thirty-day period.
43 (h) A subsequent purchaser which is registered as a distributor of
44 diesel motor fuel shall be eligible for reimbursement of the tax imposed
45 by section three hundred one-a of this article with respect to gallonage
46 of residual petroleum product[,] AND NON-HIGHWAY diesel motor fuel
47 [(which is not enhanced diesel motor fuel) and dyed diesel motor fuel,]
48 subsequently sold by such purchaser to an organization which has quali-
49 fied under paragraph four or five of subdivision (a) of section eleven
50 hundred sixteen of this chapter for the exclusive use and consumption by
51 such organization. Provided, however, this exemption shall in no event
52 apply to a sale of NON-HIGHWAY diesel motor fuel which involves a deliv-
53 ery at a filling station or into a repository which is equipped with a
54 hose or other apparatus by which such NON-HIGHWAY DIESEL MOTOR fuel can
55 be dispensed into the fuel tank of a motor vehicle and all deliveries
56 hereunder shall be made to the premises occupied by the qualifying
A. 4011--B 70
1 organization and used by such organization in furtherance of the exempt
2 purposes of such organization. This reimbursement may be claimed only
3 where (i) the tax imposed pursuant to this article has been paid with
4 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, further,
9 that the commissioner shall require such other documentary proof to
10 qualify for any reimbursement of tax provided by this section as the
11 commissioner deems appropriate. [The term "dyed diesel motor fuel" as
12 used in this subdivision shall have the same meaning it has in subdivi-
13 sion eighteen of section two hundred eighty-two of this chapter.]
14 (i) Reimbursement for commercial gallonage. (1) [Commencing March
15 first, nineteen hundred ninety-seven, a] A reimbursement shall be
16 allowed to a consumer with respect to gallonage of [nonautomotive-type]
17 NON-HIGHWAY diesel motor fuel [(which is not enhanced diesel motor
18 fuel)] or residual petroleum product (i) which was purchased by such
19 consumer and where the supplemental tax imposed by section three hundred
20 one-j of this article with respect to such gallonage was paid by a
21 petroleum business and passed through to such consumer, (ii) such
22 consumer absorbed the entirety of such tax in the purchase price of such
23 gallonage, and (iii) such gallonage was used and consumed by such
24 consumer exclusively as "commercial gallonage". Provided, however, that
25 the commissioner shall require such documentary proof to qualify for any
26 reimbursement of tax provided by this subdivision as the commissioner
27 deems appropriate, including a certification by the consumer that the
28 product was used and consumed exclusively as "commercial gallonage" by
29 such consumer.
30 (2) Calculation. The amount of the reimbursement shall be determined
31 by multiplying the quantity of "commercial gallonage" eligible for
32 reimbursement times the then current rate of the supplemental tax
33 imposed by section three hundred one-j of this article with respect to
34 [nonautomotive-type] NON-HIGHWAY diesel motor fuel or residual petroleum
35 product, as the case may be. Any reimbursement of tax may be applied for
36 not more often than monthly.
37 (j) Reimbursement for manufacturing gallonage. [Commencing January
38 first, nineteen hundred ninety-eight, a] A subsequent purchaser shall be
39 eligible for reimbursement of any taxes imposed under this article with
40 respect to gallonage of residual petroleum product and NON-HIGHWAY
41 diesel motor fuel [(which is not enhanced diesel motor fuel),] subse-
42 quently sold by such purchaser to a consumer as "manufacturing gallo-
43 nage." This reimbursement may be claimed only where (1) any tax imposed
44 pursuant to this article has been paid with respect to such gallonage
45 and the entire amount of such tax has been absorbed by such purchaser,
46 and (2) such purchaser possesses documentary proof satisfactory to the
47 commissioner evidencing the absorption by it of the entire amount of
48 such tax. Provided, however, that the commissioner shall require such
49 documentary proof to qualify for any reimbursement of tax provided by
50 this subdivision as the commissioner deems appropriate including a
51 certificate by the consumer that such product is to be used and consumed
52 exclusively as "manufacturing gallonage".
53 (k) Reimbursement for railroad gallonage. (1) [Commencing January
54 first, nineteen hundred ninety-seven, a] A subsequent purchaser, which
55 is registered as a distributor of diesel motor fuel, shall be eligible
56 for a reimbursement in accordance with this subdivision with respect to
A. 4011--B 71
1 NON-HIGHWAY diesel motor fuel subsequently sold by such purchaser to a
2 consumer as "railroad diesel".
3 (2) The amount of the reimbursement with respect to such product shall
4 be equal to the difference between (i) the tax actually paid under this
5 article by a petroleum business with respect to such product and subse-
6 quently passed through to and absorbed by such purchaser, and (ii) the
7 tax under this article that would have been paid with respect to such
8 product had an importing distributor sold such product directly to a
9 purchaser as "railroad diesel". Provided that the commissioner shall
10 require such documentary proof as the commissioner deems necessary to
11 substantiate a reimbursement claim under this subdivision. Any
12 reimbursement of tax may be applied for not more often than monthly.
13 (l) Reimbursement for mining and extraction. A purchaser shall be
14 eligible for reimbursement of the tax imposed by section three hundred
15 one-a of this article with respect to gallonage of residual petroleum
16 product and NON-HIGHWAY diesel motor fuel, purchased for use and
17 consumption directly and exclusively in the production of tangible
18 personal property for sale by mining or extracting, but only if all of
19 such fuel or product is delivered at the mining or extracting site and
20 is consumed other than on the PUBLIC highways of this state; provided,
21 however, this reimbursement shall in no event apply to a sale of
22 NON-HIGHWAY diesel motor fuel which involves a delivery at a filling
23 station. This reimbursement may be claimed only where (i) the tax
24 imposed pursuant to this article has been paid with respect to such
25 NON-HIGHWAY diesel motor fuel or residual petroleum product and the
26 entire amount of such tax has been absorbed by such purchaser, and (ii)
27 such purchaser possesses documentary proof satisfactory to the commis-
28 sioner evidencing the absorption by it of the entire amount of the tax
29 imposed pursuant to this article. Provided, however, that the commis-
30 sioner shall require such documentary proof to qualify for any
31 reimbursement of tax provided by this section as the commissioner deems
32 appropriate.
33 (m) Reimbursement for passenger commuter ferries. A use by a passenger
34 commuter ferry of NON-HIGHWAY diesel motor fuel or residual petroleum
35 product where such NON-HIGHWAY diesel motor fuel or residual petroleum
36 product was used and consumed by a passenger commuter ferry exclusively
37 in providing mass transportation service. This reimbursement may be
38 claimed only where (1) any tax imposed pursuant to this article has been
39 paid with respect to such gallonage and the entire amount of such tax
40 has been absorbed by such purchaser, and (2) such ferry possesses docu-
41 mentary proof satisfactory to the commissioner evidencing the absorption
42 by it of the entire amount of such tax. Provided, that the commissioner
43 shall require such documentary proof to qualify for any reimbursement
44 provided hereunder as the commissioner deems appropriate.
45 S 24. Paragraphs 1 and 2 of subdivision (a) of section 301-d of the
46 tax law, as amended by chapter 410 of the laws of 1991, are amended to
47 read as follows:
48 (1) Credit. Residual petroleum product and NON-HIGHWAY diesel motor
49 fuel [(which is not enhanced diesel motor fuel)] (i) imported into this
50 state by such electric corporation which is a petroleum business where
51 the tax liability under section three hundred one-a of this article is
52 imposed on such electric corporation and where the residual petroleum or
53 NON-HIGHWAY diesel product so imported is used by such electric corpo-
54 ration to fuel generators for the purpose of manufacturing or producing
55 electricity or (ii) purchased in this state by such electric corporation
56 by the use of a valid direct payment permit whereby such electric corpo-
A. 4011--B 72
1 ration assumed full liability for tax with respect to such product where
2 such product so purchased is used by such electric corporation to fuel
3 generators for the purpose of manufacturing or producing electricity.
4 (2) Reimbursement. Residual petroleum product and NON-HIGHWAY diesel
5 motor fuel [(which is not enhanced diesel motor fuel)] purchased in this
6 state by such electric corporation where the tax imposed by section
7 three hundred one-a of this article with respect to such residual petro-
8 leum or diesel product was paid and the utility absorbed such tax in the
9 purchase price of such fuel and where such product is used by such elec-
10 tric corporation to fuel generators for the purpose of manufacturing or
11 producing electricity.
12 S 25. Subdivision (c) of section 301-e of the tax law, as amended by
13 chapter 2 of the laws of 1995, is amended to read as follows:
14 (c) Kero-jet fuel component. The kero-jet fuel component shall be
15 determined by multiplying the kero-jet fuel rate times the number of
16 gallons of (1) kero-jet fuel imported or caused to be imported into this
17 state by an aviation fuel business and consumed in this state by such
18 business in the operation of its aircraft; and (2) kero-jet fuel, which
19 has not been previously included in the measure of the tax imposed by
20 this section, (i) which is sold in this state by an aviation fuel busi-
21 ness to persons other than those registered under this article as
22 aviation fuel businesses or (ii) which is consumed in this state by an
23 aviation fuel business in the operation of its aircraft. Provided that
24 importation of kero-jet fuel in the fuel tanks of aircraft shall be
25 importation for the purposes of this section. The basic kero-jet fuel
26 rate shall be [one and nine-tenths] SIX AND EIGHT-TENTHS cents per
27 gallon. The rate shall be adjusted at the same time as the rates of the
28 components of the petroleum business tax imposed by section three
29 hundred one-a of this article, and the method of making adjustments to
30 the kero-jet fuel rate shall be the same as the method used for such
31 rates. [Provided, however, that commencing July first, nineteen hundred
32 ninety-one, the kero-jet fuel rate shall be equal to the motor fuel and
33 automotive-type diesel motor fuel rate set by subdivision (e) of section
34 three hundred one-a of this article as such rate may be adjusted as
35 provided in such subdivision. Provided, further, that commencing Septem-
36 ber first, nineteen hundred ninety-five, the kero-jet fuel rate shall be
37 five and two-tenths cents per gallon. The rate shall be adjusted at the
38 same time as the rates of the components of the petroleum business tax
39 imposed by section three hundred one-a of this article, and the method
40 of making adjustments to the kero-jet fuel rate shall be the same as the
41 method used for such rates.]
42 S 26. Sections 301-f and 301-g of the tax law are REPEALED.
43 S 27. Paragraph 2 of subdivision (a) of section 301-h of the tax law,
44 as amended by chapter 170 of the laws of 1994, is amended to read as
45 follows:
46 (2) The rate of the tax imposed by this section shall be equal to the
47 motor fuel and [automotive-type] HIGHWAY diesel motor fuel rate set by
48 subdivision (e) of section three hundred one-a plus the rate of the
49 supplemental tax imposed by section three hundred one-j of this article
50 as such rates are specified therein and as they may be adjusted as
51 provided in such provisions. [In addition, the tax surcharge imposed by
52 section three hundred-one-g of this article shall be imposed with
53 respect to the tax imposed by this section as if the tax imposed here-
54 under were imposed by section three hundred-one-a of this article.]
55 S 28. Section 301-i of the tax law is REPEALED.
A. 4011--B 73
1 S 29. Paragraphs 1, 2, 3 and 4 of subdivision (a) and subdivision (c)
2 of section 301-j of the tax law, paragraph 1 of subdivision (a) as
3 amended and paragraphs 2, 3 and 4 of subdivision (a) as added by chapter
4 309 of the laws of 1996 and subdivision (c) as amended by chapter 410 of
5 the laws of 1991, are amended to read as follows:
6 (1) In addition to the taxes imposed by sections three hundred one-a
7 and three hundred one-e of this article, [for taxable months commencing
8 on or after July first, nineteen hundred ninety-one] there is hereby
9 imposed upon every petroleum business subject to tax imposed under
10 section three hundred one-a of this article and every aviation fuel
11 business subject to the aviation gasoline component of the tax imposed
12 under section three hundred one-e of this article, a supplemental month-
13 ly tax for each or any part of a taxable month at a rate of [four and
14 one-half] SIX AND EIGHT-TENTHS cents per gallon with respect to the
15 products included in each component of the taxes imposed by such
16 [sections] SECTION three hundred one-a and the aviation gasoline compo-
17 nent of the tax imposed by such section three hundred one-e of this
18 article.
19 (2) Provided, however, [commencing March first, nineteen hundred nine-
20 ty-seven,] "commercial gallonage," as such term is defined in subdivi-
21 sion (k) of section three hundred of this article, shall be exempt from
22 the measure of the tax imposed under this section.
23 (3) Provided, further, [commencing January first, nineteen hundred
24 ninety-seven,] "railroad diesel," as such term is defined in subdivision
25 (l) of section three hundred of this article, shall be exempt from the
26 measure of the tax imposed under this section.
27 (4) Provided, further, [commencing January first, nineteen hundred
28 ninety-eight,] a separate per gallon rate shall apply with respect to
29 [automotive-type] HIGHWAY diesel motor fuel. Such rate shall be deter-
30 mined by taking the adjusted rate per gallon of tax imposed under para-
31 graph one of this subdivision as adjusted in accordance with paragraph
32 five of this subdivision [which commences on such date] and subtracting
33 therefrom [three-quarters of one cent. On January first, nineteen
34 hundred ninety-nine, the automotive-type diesel motor fuel rate shall be
35 determined by taking the adjusted rate per gallon of tax imposed under
36 paragraph one of this subdivision, as adjusted in accordance with para-
37 graph five of this subdivision which commences on such date and
38 subtracting therefrom three-quarters of one cent. On April first, nine-
39 teen hundred ninety-nine, there shall be a new rate applicable to such
40 fuel which shall be such adjusted rate of tax per gallon under such
41 paragraph one of this subdivision, as adjusted in accordance with para-
42 graph five of this subdivision then in effect, minus] one and three-
43 quarters cents. Commencing January first, two thousand TWELVE, and each
44 January thereafter, the per gallon rate applicable to [automotive-type]
45 HIGHWAY diesel motor fuel shall be the adjusted rate under paragraph one
46 of this subdivision as adjusted in accordance with paragraph five of
47 this subdivision which commences on such date minus one and three-quar-
48 ters cents. The resulting rate under this paragraph shall be expressed
49 in hundredths of a cent.
50 (c) Rate adjustment [and surcharge]. [Commencing January first, nine-
51 teen hundred ninety-two and on the first day of January every year ther-
52 eafter, the] THE rate of the supplemental tax shall be adjusted at the
53 same time as the rates of the components of the taxes imposed by
54 sections three hundred one-a and three hundred one-e of this article,
55 and the method of making adjustments to the rate of the supplemental tax
56 shall be the same as the method used for such rates.
A. 4011--B 74
1 S 30. The opening paragraph and subdivisions (a) and (c) of section
2 301-1 of the tax law, as added by chapter 170 of the laws of 1994, are
3 amended to read as follows:
4 There shall be allowed to a registered petroleum business or aviation
5 fuel business a refund under this section for the taxes [and tax
6 surcharge] imposed by sections three hundred one-a, three hundred one-e,
7 [three hundred one-g] and three hundred one-j of this article for the
8 tax paid under such sections with respect to gallonage which is repres-
9 ented by a worthless debt as follows:
10 (a) The refund shall be allowed to a registered petroleum business or
11 aviation fuel business for gallonage with respect to which tax liability
12 for the taxes under this article is imposed on such petroleum business
13 or aviation fuel business where (i) such gallonage has been included in
14 the reports filed by such petroleum business or aviation fuel business
15 and all the taxes under this article with respect to such gallonage have
16 been paid by such business, (ii) such gallonage was sold in-bulk by such
17 petroleum or aviation fuel business to a purchaser for such purchaser's
18 own use and consumption and (iii) such sale gave rise to a debt which
19 became worthless, as that term is used for federal income tax purposes,
20 and where such debt is deducted as a worthless debt for federal income
21 tax purposes for the taxable year covering the month in which such
22 refund claim relating to such debt is filed. Provided, however, for the
23 purposes of this section, a sale of motor fuel and [enhanced] HIGHWAY
24 diesel motor fuel to a filling station shall be deemed to be a sale
25 in-bulk for such filling station's own use and consumption and,
26 provided, further, in no event shall a worthless debt qualify with
27 respect to the refund hereunder where such debt arises from a retail
28 sale at a filling station or sale wherein product is delivered directly
29 into the fuel tank of a motor vehicle, airplane or other conveyance.
30 (c) Upon receipt of a claim for refund in processible form, interest
31 shall be allowed and paid at the overpayment rate set by the commission-
32 er pursuant to subdivision twenty-sixth of section one hundred seventy-
33 one of this chapter from the date of the receipt of the refund claim to
34 the date immediately preceding the date of the refund check except no
35 such interest shall be allowed or paid if the refund check is mailed
36 within ninety days of such receipt and except no interest shall be
37 allowed or paid if the amount thereof would be less than one dollar.
38 Provided, further, the refund shall be granted pro rata against sections
39 three hundred one-a, three hundred one-e, [three hundred one-g] and
40 three hundred one-j of this article, as the case may be, to the same
41 extent as represented by the remittance of the petroleum business or
42 aviation fuel business with respect to the gallonage represented by the
43 worthless debt.
44 S 31. Subdivision (b) of section 302 of the tax law, as added by chap-
45 ter 190 of the laws of 1990, is amended to read as follows:
46 (b) Residual petroleum product business. The department [of taxation
47 and finance], upon the application of a corporation or unincorporated
48 business, shall register such corporation or unincorporated business as
49 a residual petroleum product business except that the commissioner [of
50 taxation and finance] may refuse to register an applicant for any of the
51 grounds specified in subdivision two or five of section two hundred
52 eighty-three of this chapter or in subdivision (d) of this section. The
53 application shall be in such form and contain such information as the
54 commissioner shall prescribe. All of the provisions of subdivisions two,
55 four, five, six, seven, eight, nine and ten of section two hundred
56 eighty-three of this chapter relating to registration of distributors
A. 4011--B 75
1 shall be applicable to the registration of residual petroleum product
2 businesses under this section with the same force and effect as if the
3 language of those subdivisions had been incorporated in full in this
4 section and had expressly referred to the registration of residual
5 petroleum product businesses and the tax imposed by this article, with
6 such modification as may be necessary in order to adapt the language of
7 such provisions to the provisions of this article, provided, specif-
8 ically, that the term "distributor" shall be read as "residual petroleum
9 product business" and the [terms] TERM "motor fuel" [and "automotive
10 fuel"] shall be read as "residual petroleum product". Provided, however,
11 that if the commissioner is satisfied that the requirements of such
12 provisions for registration are not necessary in order to protect tax
13 revenues, the commissioner may limit or modify such requirements with
14 respect to corporations or unincorporated businesses not required to be
15 registered as distributors of motor fuel or diesel motor fuel.
16 S 32. Section 312 of the tax law, as amended by chapter 166 of the
17 laws of 1991 and subdivision (b) as amended by section 8 of part EE of
18 chapter 63 of the laws of 2000, is amended to read as follows:
19 S 312. Deposit and disposition of revenue.--[(a) Except as provided in
20 sections three hundred one-f and three hundred one-g of this chapter, of
21 all of the taxes, interest and penalties collected or received by the
22 commissioner of taxation and finance under section three hundred one of
23 this article with respect to any taxable year commencing on or after
24 April first, nineteen hundred eighty-four and to that portion of any
25 taxable year commencing prior thereto to the extent of that portion of
26 such year which includes the period which commences with April first,
27 nineteen hundred eighty-four, seventy-two and seven-tenths percent shall
28 be deposited and disposed of pursuant to the provisions of section one
29 hundred seventy-one-a of this chapter and the balance thereof shall be
30 deposited in the mass transportation operating assistance fund to the
31 credit of the metropolitan mass transportation operating assistance
32 account and the public transportation systems operating assistance
33 account thereof in the manner provided by subdivision eleven of section
34 one hundred eighty-two-a of this chapter. Provided, however, that the
35 actual amount of such taxes, interest and penalties which shall be
36 deposited in such mass transportation operating assistance fund pursuant
37 to this section during the twelve-month period from April first, nine-
38 teen hundred eighty-four to and including March thirty-first, nineteen
39 hundred eighty-five shall not be less than an amount which, when added
40 to the actual amount that is deposited in such fund during such twelve-
41 month period and that is attributable to the taxes, interest and penal-
42 ties collected and received under section one hundred eighty-two-a of
43 this chapter, yields the sum of seventy-nine million five hundred thou-
44 sand dollars and provided further that of such actual amounts deposited
45 in such fund pursuant to this section and to section one hundred eight-
46 y-two-a of this chapter during the twelve-month period from April first,
47 nineteen hundred eighty-five to March thirty-first, nineteen hundred
48 eighty-six and during the twelve-month period from April first, nineteen
49 hundred eighty-six to March thirty-first, nineteen hundred eighty-seven,
50 the amount which shall be deposited to the credit of the public trans-
51 portation systems operating assistance account thereof during each such
52 period shall be not less than thirty-six million dollars. Provided
53 further that if the total amount deposited in the mass transportation
54 operating assistance fund during the twelve month period commencing
55 April first, nineteen hundred eighty-five pursuant to this section and
56 to section one hundred eighty-two-a of this chapter is less than eighty
A. 4011--B 76
1 million dollars, the comptroller shall deposit to the credit of the
2 metropolitan mass transportation operating assistance account on or
3 after April first, nineteen hundred eighty-six and on or before June
4 thirtieth, nineteen hundred eighty-six from any taxes, interest, and
5 penalties collected or received by the commissioner of taxation and
6 finance under this article in addition to amounts which would otherwise
7 be deposited to the credit of the mass transportation operating assist-
8 ance fund, an amount equal to the difference between eighty million
9 dollars and the amounts actually deposited in the mass transportation
10 operating assistance fund during such twelve-month period pursuant to
11 this section and to section one hundred eighty-two-a of this chapter.
12 Provided further that if the total amount deposited in the mass trans-
13 portation operating assistance fund during the twelve month period
14 commencing April first, nineteen hundred eighty-six pursuant to this
15 section and to section one hundred eighty-two-a of this chapter, exclu-
16 sive of the amount deposited in such fund to the credit of the metropol-
17 itan mass transportation operating assistance account on or after April
18 first, nineteen hundred eighty-six and on or before June thirtieth,
19 nineteen hundred eighty-six pursuant to the preceding sentence, is less
20 than eighty million dollars, the comptroller shall deposit to the credit
21 of the metropolitan mass transportation operating assistance account on
22 or after April first, nineteen hundred eighty-seven and on or before
23 June thirtieth, nineteen hundred eighty-seven from any taxes, interest,
24 and penalties collected or received by the commissioner of taxation and
25 finance under this article in addition to amounts which would otherwise
26 be deposited to the credit of the mass transportation operating assist-
27 ance fund, an amount equal to the difference between eighty million
28 dollars and the amounts actually deposited in the mass transportation
29 operating assistance fund during such twelve-month period pursuant to
30 this section and to section one hundred eighty-two-a of this chapter,
31 exclusive of the amount deposited in such fund to the credit of the
32 metropolitan mass transportation operating assistance account on or
33 after April first, nineteen hundred eighty-six and on or before June
34 thirtieth, nineteen hundred eighty-six pursuant to the preceding
35 sentence. Provided, further, however, with respect to all taxes, and
36 interest and penalties relating thereto, collected or received by the
37 commissioner of taxation and finance under the tax imposed by section
38 three hundred one of this article with respect to any taxable year
39 commencing on and after June first, nineteen hundred ninety and to that
40 portion of any taxable year commencing prior thereto to the extent of
41 that portion of such year which includes the period which commences June
42 first, nineteen hundred ninety, eighty-nine and one-half percent of such
43 collections shall be deposited and disposed of pursuant to the
44 provisions of section one hundred seventy-one-a of this chapter and the
45 balance thereof shall be deposited in the mass transportation operating
46 assistance fund to the credit of the metropolitan mass transportation
47 operating assistance account and the public transportation systems oper-
48 ating assistance account thereof in the manner provided by subdivision
49 eleven of section one hundred eighty-two-a of this chapter.
50 (b) Of all of the taxes collected or received by the commissioner on
51 or before March thirty-first, nineteen hundred ninety-one under the
52 taxes imposed by sections three hundred one-a and three hundred one-e of
53 this article, and all interest and penalties relating thereto, eighty-
54 seven and five-hundredths percent of such collections shall be deposited
55 and disposed of pursuant to the provisions of section one hundred seven-
56 ty-one-a of this chapter and the balance thereof shall be deposited in
A. 4011--B 77
1 the mass transportation operating assistance fund to the credit of the
2 metropolitan mass transportation operating assistance account and the
3 public transportation systems operating assistance account thereof in
4 the manner provided by subdivision eleven of section one hundred eight-
5 y-two-a of this chapter. Of all taxes, interest and penalties collected
6 or received after March thirty-first, nineteen hundred ninety-one, and
7 before April first, nineteen hundred ninety-three, from the taxes
8 imposed by sections three hundred one-a and three hundred one-e of this
9 article, initially thirty-five percent shall be deposited and disposed
10 of pursuant to such section one hundred seventy-one-a. The balance ther-
11 eof shall then be disposed of as follows: seventy-two and seven-tenths
12 percent shall be deposited and disposed of pursuant to such section one
13 hundred seventy-one-a and twenty-seven and three-tenths percent shall be
14 deposited in such mass transportation operating assistance fund as
15 prescribed in the aforestated manner. Except as otherwise provided, of
16 all taxes, interest and penalties collected or received after March
17 thirty-first, nineteen hundred ninety-three, and before April first,
18 nineteen hundred ninety-four, from the taxes imposed by sections three
19 hundred one-a and three hundred one-e of this article, (i) initially
20 fifty-four percent shall be deposited, as prescribed by subdivision (d)
21 of section three hundred one-j of this chapter, (ii) twenty-eight and
22 three-tenths percent shall be deposited and disposed of pursuant to such
23 section one hundred seventy-one-a of this chapter in the general fund
24 and (iii) seventeen and seven-tenths percent shall be deposited in such
25 mass transportation operating assistance fund as prescribed in the
26 aforestated manner. Provided, however, that, prior to such deposit, from
27 the amounts so collected or received during the period commencing on
28 January first, nineteen hundred ninety-four and ending on March thirty-
29 first, nineteen hundred ninety-four, an amount equal to the portion of
30 the taxes, interest and penalties so received or collected resulting
31 from the amendments made by sections forty-two, forty-three and forty-
32 four of chapter fifty-seven of the laws of nineteen hundred ninety-three
33 shall be deposited and disposed of pursuant to the provisions of subdi-
34 vision one of section one hundred seventy-one-a of this chapter. Except
35 as otherwise provided, of all taxes, interest and penalties collected or
36 received on or after April first, nineteen hundred ninety-four, from the
37 taxes imposed by sections three hundred one-a and three hundred one-e of
38 this article, (i) initially fifty-four percent shall be deposited, as
39 prescribed by subdivision (d) of section three hundred one-j of this
40 article, (ii) twenty-eight and three-tenths percent shall be deposited
41 and disposed of pursuant to such section one hundred seventy-one-a of
42 this chapter in the general fund, (iii) seven and nine hundred sixty-
43 five thousandths percent shall be deposited in such mass transportation
44 operating assistance fund as prescribed in the aforestated manner and
45 (iv) nine and seven hundred thirty-five thousandths percent shall be
46 deposited in the revenue accumulation fund. Except as otherwise
47 provided, of all taxes, interest and penalties collected or received on
48 or after September first, nineteen hundred ninety-four and before
49 September first, nineteen hundred ninety-five, from the taxes imposed by
50 sections three hundred one-a and three hundred one-e of this article,
51 (i) initially fifty-nine percent shall be deposited, as prescribed by
52 subdivision (d) of section three hundred one-j of this article, (ii)
53 twenty-two and four-tenths percent shall be deposited and disposed of
54 pursuant to such section one hundred seventy-one-a of this chapter in
55 the general fund, (iii) eight and three hundred seventy thousandths
56 percent shall be deposited in such mass transportation operating assist-
A. 4011--B 78
1 ance fund as prescribed in the aforestated manner and (iv) ten and two
2 hundred thirty thousandths percent shall be deposited in the revenue
3 accumulation fund. Except as otherwise provided, of all taxes, interest
4 and penalties, collected or received on or after September first, nine-
5 teen hundred ninety-five and before April first, nineteen hundred nine-
6 ty-six from the taxes imposed by sections three hundred one-a and three
7 hundred one-e of this article, (i) initially sixty-two and eight-tenths
8 percent shall be deposited as prescribed by subdivision (d) of section
9 three hundred one-j of this article, (ii) eighteen percent shall be
10 deposited and disposed of pursuant to section one hundred seventy-one-a
11 of this chapter in the general fund, (iii) eight and six hundred forty
12 thousandths percent shall be deposited in such mass transportation oper-
13 ating assistance fund as prescribed in the aforestated manner and (iv)
14 ten and five hundred sixty thousandths percent shall be deposited in the
15 revenue accumulation fund. Except as otherwise provided, of all taxes,
16 interest and penalties collected or received on or after April first,
17 nineteen hundred ninety-six, and before January first, nineteen hundred
18 ninety-seven from the taxes imposed by sections three hundred one-a and
19 three hundred one-e of this article, (i) initially sixty-three and
20 three-tenths percent shall be deposited, as prescribed by subdivision
21 (d) of section three hundred one-j of this article, (ii) seventeen and
22 four-tenths percent shall be deposited and disposed of pursuant to such
23 section one hundred seventy-one-a of this chapter in the general fund
24 and (iii) nineteen and three-tenths percent shall be deposited in such
25 mass transportation operating assistance fund as prescribed in the
26 aforestated manner. Except as otherwise provided, of all taxes, inter-
27 est and penalties collected or received on or after January first, nine-
28 teen hundred ninety-seven and before January first, nineteen hundred
29 ninety-eight from the taxes imposed by sections three hundred one-a and
30 three hundred one-e of this article, (i) initially sixty-six and two-
31 tenths percent shall be deposited, as prescribed by subdivision (d) of
32 section three hundred one-j of this article, (ii) fourteen and one-half
33 percent shall be deposited and disposed of pursuant to such section one
34 hundred seventy-one-a of this chapter in the general fund and (iii)
35 nineteen and three-tenths percent shall be deposited in such mass trans-
36 portation operating assistance fund as prescribed in the aforestated
37 manner. Except as otherwise provided, of all taxes, interest and penal-
38 ties collected or received on or after January first, nineteen hundred
39 ninety-eight and before April first, nineteen hundred ninety-nine from
40 the taxes imposed by sections three hundred one-a and three hundred
41 one-e of this article, (i) initially sixty-eight and one-tenth percent
42 shall be deposited, as prescribed by subdivision (d) of section three
43 hundred one-j of this article, (ii) twelve and four-tenths percent shall
44 be deposited and disposed of pursuant to such section one hundred seven-
45 ty-one-a of this chapter in the general fund and (iii) nineteen and
46 one-half percent shall be deposited in such mass transportation operat-
47 ing assistance fund as prescribed in the aforestated manner. Except as
48 otherwise provided, of all taxes, interest and penalties collected or
49 received on or after April first, nineteen hundred ninety-nine, from the
50 taxes imposed by sections three hundred one-a and three hundred one-e of
51 this article, (i) initially sixty-nine and eight-tenths percent shall be
52 deposited, as prescribed by subdivision (d) of section three hundred
53 one-j of this article, (ii) ten and seven-tenths percent shall be depos-
54 ited and disposed of pursuant to such section one hundred seventy-one-a
55 of this chapter in the general fund and (iii) nineteen and one-half
56 percent shall be deposited in such mass transportation operating assist-
A. 4011--B 79
1 ance fund as prescribed in the aforestated manner.] Except as otherwise
2 provided, of all taxes, interest and penalties collected or received on
3 or after April first, two thousand one, from the taxes imposed by
4 sections three hundred one-a and three hundred one-e of this article,
5 (i) initially eighty and three-tenths percent shall be deposited, as
6 prescribed by subdivision (d) of section three hundred one-j of this
7 article and (ii) nineteen and seven-tenths percent shall be deposited in
8 such mass transportation operating assistance fund [as prescribed in the
9 aforestated manner] TO THE CREDIT OF THE METROPOLITAN MASS TRANSPORTA-
10 TION OPERATING ASSISTANCE ACCOUNT AND THE PUBLIC TRANSPORTATION SYSTEMS
11 OPERATING ASSISTANCE ACCOUNT THEREOF IN THE MANNER PROVIDED BY SUBDIVI-
12 SION ELEVEN OF SECTION ONE HUNDRED EIGHTY-TWO-A OF THIS CHAPTER.
13 [Provided, further, that on or before the twenty-fifth day of each month
14 commencing with October, nineteen hundred ninety and terminating with
15 the month of March, two thousand one, the comptroller shall deduct the
16 amount of six hundred twenty-five thousand dollars prior to any deposit
17 or disposition of the taxes, interest and penalties collected or
18 received pursuant to such sections three hundred one-a and three hundred
19 one-e and shall pay such amount to the state treasury to the credit of
20 the general fund.] Provided, further that on or before the twenty-fifth
21 day of each month commencing with April, two thousand one, the comp-
22 troller shall deduct the amount of six hundred twenty-five thousand
23 dollars prior to any deposit or disposition of the taxes, interest, and
24 penalties collected or received pursuant to such sections three hundred
25 one-a and three hundred one-e and shall deposit such amount in the dedi-
26 cated fund accounts pursuant to subdivision (d) of section three hundred
27 one-j of this article. Provided, further, that commencing January
28 fifteenth, nineteen hundred ninety-one, and on or before the tenth day
29 of March and the fifteenth day of June and September of such year, the
30 commissioner shall, based on information supplied by taxpayers and other
31 appropriate sources, estimate the amount of the utility credit author-
32 ized by section three hundred one-d of this article which has been
33 accrued to reduce tax liability under section one hundred eighty-six-a
34 of this chapter during the period covered by such estimate and certify
35 to the state comptroller such estimated amount. The comptroller shall
36 forthwith, after receiving such certificate, deduct the amount of such
37 credit so certified by the commissioner prior to any deposit or disposi-
38 tion of the taxes, interest and penalties collected or received pursuant
39 to such sections three hundred one-a and three hundred one-e and shall
40 pay such amount so certified and deducted into the state treasury to the
41 credit of the general fund. [As soon as practicable after April first,
42 nineteen hundred ninety-one, nineteen hundred ninety-two and nineteen
43 hundred ninety-three, but before June fifteenth of each such year, the
44 commissioner shall determine the amount of the utility tax credit which
45 has been actually used to reduce tax liability under such section one
46 hundred eighty-six-a and shall certify the difference between such actu-
47 al amount and the earlier estimated amount.] Also, subsequently, during
48 the fiscal year when the commissioner becomes aware of changes or
49 modifications with respect to actual credit usage, the commissioner
50 shall, as soon as practicable, issue a certification setting forth the
51 amount of any required adjustment to the amount of actual credit usage
52 previously certified. After receiving the certificate of the commission-
53 er with respect to actual credit usage or modification of the same, the
54 comptroller shall forthwith adjust general fund receipts and the reven-
55 ues to be deposited or disposed of under this article to reflect the
56 difference so certified by the commissioner. The commissioner shall not
A. 4011--B 80
1 be liable for any overestimate or underestimate of the amount of the
2 utility credit which has been accrued to reduce tax liability under such
3 section one hundred eighty-six-a. Nor shall the commissioner be liable
4 for any inaccuracy in any certificate with respect to the amount of such
5 credit actually used or any required adjustment with respect to actual
6 credit usage, but the commissioner shall as soon as practicable after
7 discovery of any error adjust the next certification under this section
8 to reflect any such error.
9 [On or before July thirty-first, nineteen hundred ninety-two and on or
10 before July thirty-first, nineteen hundred ninety-three, the commission-
11 er shall conduct the following reconciliation with respect to the
12 preceding fiscal year: he shall multiply the total of all taxes, penal-
13 ties and interest, after refunds and reimbursements, which are derived
14 from the motor fuel component, the automotive-type diesel motor fuel
15 component and the aviation gasoline component by twenty fifty-fifths;
16 the total of all taxes, penalties and interest, after refunds and
17 reimbursements, which are derived from the nonautomotive-type diesel
18 motor fuel component (excluding taxes, penalties and interest which are
19 derived from product with respect to which the credit or reimbursement
20 provided by section three hundred one-d is taken) by twenty-fiftieths;
21 and all taxes, penalties and interest, after refunds and reimbursements,
22 which are derived from the residual petroleum product component (exclud-
23 ing taxes, penalties and interest which are derived from product with
24 respect to which the credit or reimbursement provided by section three
25 hundred one-d is taken) by twenty-fortieths. The products of the forego-
26 ing multiplications shall be added together and the resulting sum of
27 such products shall be compared with the total of the amounts initially
28 distributed during such fiscal year with respect to such components
29 (excluding receipts derived from product with respect to which the cred-
30 it or reimbursement provided by section three hundred one-d is taken and
31 excluding any amount which represents a reconciliation adjustment pursu-
32 ant to this paragraph) pursuant to section one hundred seventy-one-a of
33 this chapter which represented thirty-five percent of the total, after
34 refunds and reimbursements, of all taxes, penalties and interest
35 collected or received during such fiscal year under sections three
36 hundred one-a and three hundred one-e during the months of such fiscal
37 year with respect to such components. The commissioner shall then certi-
38 fy the amount of such difference to the comptroller. If the amounts
39 initially distributed in such fiscal year are greater than the sum of
40 such products, the comptroller shall withhold an amount equal to twen-
41 ty-seven and three-tenths percent of such difference from the first
42 moneys otherwise payable to the general fund pursuant to this subdivi-
43 sion and shall pay such amount to the mass transportation operating
44 assistance fund to the credit of the metropolitan mass transportation
45 operating assistance account and the public transportation systems oper-
46 ating assistance account thereof in the aforestated manner. If the
47 amounts initially distributed in such fiscal year are less than the sum
48 of such products, the comptroller shall withhold an amount equal to
49 twenty-seven and three-tenths percent of such difference from the first
50 moneys otherwise payable to the mass transportation operating assistance
51 fund pursuant to this subdivision and shall pay such amount to the
52 general fund.
53 When the commissioner becomes aware of changes or modifications with
54 respect to the distribution of revenue under this article, the commis-
55 sioner shall, as soon as practicable, issue a certification setting
56 forth the amount of any required adjustment. After receiving the certif-
A. 4011--B 81
1 icate of the commissioner with respect to any adjustments, the comp-
2 troller shall forthwith adjust general fund receipts and the revenues to
3 be deposited or disposed of under this article to reflect the difference
4 so certified by the commissioner. The commissioner shall not be liable
5 for any overestimate or underestimate of the amount of the distribution.
6 Nor shall the commissioner be liable for any inaccuracy in any certif-
7 icate with respect to the amount of the distribution or any required
8 adjustment with respect to the distribution, but the commissioner shall
9 as soon as practicable after discovery of any error adjust the next
10 certification under this section to reflect any such error.] Prior to
11 making deposits as provided in this [subdivision] SECTION, the comp-
12 troller shall retain such amount as the commissioner may determine to be
13 necessary, subject to the approval of the director of the budget, for
14 reasonable costs of the department in administering and collecting the
15 taxes deposited pursuant to this [subdivision] SECTION and for refunds
16 and reimbursements with respect to such taxes, out of which the comp-
17 troller shall pay any refunds or reimbursements of such taxes to which
18 taxpayers shall be entitled.
19 S 33. Subdivision (b) of section 315 of the tax law, as amended by
20 section 156 of part A of chapter 389 of the laws of 1997, is amended to
21 read as follows:
22 (b) Joint administration of taxes. In addition to the powers granted
23 to the commissioner in this chapter, the commissioner is hereby author-
24 ized to make provisions for the joint administration, in whole or in
25 part, of the taxes imposed by articles twelve-A and twenty-eight and
26 pursuant to the authority of article twenty-nine of this chapter upon
27 [automotive fuel] MOTOR FUEL AND DIESEL MOTOR FUEL and the taxes imposed
28 by this article, including the joint reporting, assessment, collection,
29 determination and refund of such taxes, and for that purpose to
30 prescribe that any of the commissioner's functions under such articles,
31 and any returns, forms, statements, documents or information to be
32 submitted to the commissioner under such articles, any books and records
33 to be kept for purposes of the taxes imposed or authorized to be imposed
34 by such articles, any schedules of amounts to be collected under such
35 articles, any registration required under such articles, and the payment
36 of taxes under such articles, shall be on a joint basis with respect to
37 the taxes imposed by or pursuant to such articles. Provided, notwith-
38 standing any provision of this article to the contrary, in the further-
39 ance of joint administration, the provisions of subdivision one of
40 section two hundred eighty-five-a and subdivision one of section two
41 hundred eighty-nine-c of this chapter shall apply to the taxes imposed
42 under this article with the same force and effect as if those provisions
43 specifically referred to the taxes imposed hereunder and all the
44 products with respect to which the taxes are imposed under this article.
45 Provided, further, a reimbursement (or credit) of taxes imposed under
46 this article shall be available to subsequent purchasers of motor fuel,
47 diesel motor fuel or residual petroleum product under the circumstances
48 specified in subdivision eight of section two hundred eighty-nine-c of
49 this chapter with respect to the export of such products. In addition,
50 all the provisions of subdivision one of section two hundred eighty-six
51 of this chapter shall be applicable to all of the products included in
52 the measure of the tax imposed by this article and the powers of the
53 commissioner in administering the tax imposed by this article shall
54 include these set forth in such subdivision. Moreover, the commission-
55 er, in order to preserve the revenue from the tax imposed by this arti-
56 cle, shall, by regulation, require that the movement of residual petro-
A. 4011--B 82
1 leum product into or in this state be accompanied by a tracking
2 document. [Such manifest or other tracking document shall be prescribed
3 only after consultation with the state motor fuels taxation advisory
4 council (created by section forty-one of chapter forty-four of the laws
5 of nineteen hundred eighty-five) as to its form and content and as to
6 whether an existing industry document (or a modified version thereof)
7 may adequately serve the tracking purpose so that such existing industry
8 document may be prescribed as the tracking document.] Also, the commis-
9 sioner may require (i) that any returns, forms, statements or other
10 document with respect to motor fuel or diesel motor fuel required of
11 transporters or terminal operators under such article twelve-A of this
12 chapter apply with the same force and effect to persons transporting or
13 storing residual petroleum product, (ii) a certification that particular
14 gallonage of motor fuel, diesel motor fuel or residual petroleum product
15 has been included in the measure of the tax imposed by this article and
16 such tax has been paid, and (iii) that the certification required pursu-
17 ant to section two hundred eighty-five-a or two hundred eighty-five-b of
18 this chapter be expanded to include the tax imposed by this article.
19 S 34. Subdivision 10 of section 501 of the tax law, as amended by
20 chapter 407 of the laws of 1990, is amended to read as follows:
21 10. "Automotive fuel" shall mean, SOLELY FOR PURPOSES OF THIS ARTICLE,
22 diesel motor fuel as defined in subdivision fourteen of section two
23 hundred eighty-two of this chapter and motor fuel as defined in subdivi-
24 sion two of section two hundred eighty-two of this chapter.
25 S 35. Subdivision (b) of section 528 of the tax law, as added by chap-
26 ter 170 of the laws of 1994, is amended to read as follows:
27 (b) Cooperative agreements. Notwithstanding any inconsistent provision
28 of law, the commissioner is authorized to enter into a cooperative
29 agreement with other states, the District of Columbia or provinces or
30 territories of Canada for the administration of the tax imposed by this
31 article and similar taxes imposed by other member jurisdictions and for
32 the reporting and payment of tax to a single base state and a propor-
33 tional sharing of revenue of taxes relating to fuel use among the juris-
34 dictions where a qualified motor vehicle is operated. The agreement may
35 provide for determining the base state for carriers, carriers records
36 requirements, audit procedures, exchange of information, persons eligi-
37 ble for tax licensing, defining qualified motor vehicles, determining if
38 bonding is required and requiring bonds to secure the tax imposed by
39 this article and similar taxes imposed by other member jurisdictions,
40 specifying reporting requirements and periods including defining uniform
41 penalty and interest rates for late reporting, determining methods for
42 collecting and forwarding of taxes, interest and penalties to another
43 jurisdiction, notice and timing of hearings and other provisions as will
44 facilitate the administration of the agreement. The commissioner may,
45 pursuant to the terms of the agreement, forward to the proper officers
46 of another member jurisdiction any information in the commissioner's
47 possession relating to the manufacture, receipt, sale, use, transporta-
48 tion or shipment of [automotive fuel] MOTOR FUEL OR DIESEL MOTOR FUEL by
49 any person and may share any information relating to the administration
50 of taxes pursuant to the agreement with such officers. The commissioner
51 may disclose to the proper officers of another member jurisdiction the
52 location of offices, motor vehicles and other real and personal property
53 of carriers. The agreement may provide for each member jurisdiction to
54 audit the records of persons based in the member jurisdiction and deter-
55 mine taxes due each member jurisdiction. The commissioner may adopt
56 rules and regulations for the administration and enforcement of the
A. 4011--B 83
1 agreement. In connection with the administration of taxes under such a
2 cooperative agreement, the commissioner may enter into an agreement with
3 other member jurisdictions and any banks, banking houses, trust compa-
4 nies or other similar institutions with respect to the payment of any
5 tax, fees, penalty or interest to such banks, banking houses, trust
6 companies or similar institutions and the filing of returns and reports
7 with such banks, banking houses, trust companies or similar institutions
8 as agent of the commissioner and such other member jurisdictions. Pursu-
9 ant to a written agreement made with one or more of the appropriate
10 departments, agencies, officers or instrumentalities of other jurisdic-
11 tions, the commissioner may let contracts for provision of such services
12 to the department and to one or more of such entities of other jurisdic-
13 tions; provided, that provisions shall be made in all such agreements
14 with the participating governmental entities and in all such contracts
15 let by the commissioner for the assumption by each of the participating
16 governmental entities of sole responsibility for its proportionate share
17 of the costs under the terms of such contract. The commissioner may
18 contract for such services jointly with and pursuant to a contract let
19 by the appropriate department, agency, officer or instrumentality of
20 another jurisdiction; provided that (1) the commissioner shall approve
21 the proposed terms and conditions of all such joint governmental
22 contracts, (2) the letting of such joint governmental contract shall be
23 based on invitation of competitive bids or proposals, and (3) the
24 participation by the department in any such joint contract shall be
25 preceded by an evaluation and finding in writing by the commissioner
26 that a reasonable potential exists for the saving of costs by the state,
27 by means of such joint governmental contract.
28 S 36. The opening paragraph of subparagraph (ii) of paragraph 4 of
29 subdivision (b) of section 1101 of the tax law, as amended by chapter
30 261 of the laws of 1988, is amended to read as follows:
31 Notwithstanding the provisions of subparagraph (i) of this paragraph,
32 no motor fuel or diesel motor fuel shall be sold or used in this state
33 without payment, and inclusion in the sales price of such motor fuel, of
34 the tax on motor fuel required to be prepaid pursuant to the provisions
35 of section eleven hundred two of this article except where a provision
36 of this article relating to motor fuel or diesel motor fuel specifically
37 provides otherwise and except in the case of a sale or use subject to
38 tax under section eleven hundred five or eleven hundred ten, respective-
39 ly, of this article. Provided, however, except for such requirement of
40 prepayment of tax required by section eleven hundred two of this arti-
41 cle, the provisions of this subparagraph shall not otherwise modify the
42 meaning of the term "retail sale" as used in this article. For purposes
43 of this subparagraph and sections eleven hundred two, eleven hundred
44 eleven, eleven hundred twenty, eleven hundred thirty-two, eleven hundred
45 thirty-four, eleven hundred thirty-five, eleven hundred thirty-six,
46 ELEVEN HUNDRED FORTY-TWO, ELEVEN HUNDRED FORTY-FIVE and eighteen hundred
47 seventeen of this chapter, the following terms shall have the following
48 meanings:
49 S 37. Clause (A) of subparagraph (ii) of paragraph 4 of subdivision
50 (b) of section 1101 of the tax law, as amended by chapter 261 of the
51 laws of 1988, is amended to read as follows:
52 (A) "[Automotive fuel"] PETROLEUM PRODUCTS" means diesel motor fuel as
53 defined in subdivision fourteen of section two hundred eighty-two of
54 this chapter, other than kerosene or propane used for residential
55 purposes, or motor fuel as defined in subdivision two of section two
56 hundred eighty-two of this chapter. The phrase "used for residential
A. 4011--B 84
1 purposes" shall have the same meaning as it has for purposes of section
2 eleven hundred five-A of this article.
3 S 38. Clause (F) of subparagraph (ii) of paragraph 4 of subdivision
4 (b) of section 1101 of the tax law is REPEALED and a new clause (F) is
5 added to read as follows:
6 (F) THE TERMS "HIGHWAY DIESEL MOTOR FUEL" AND "NON-HIGHWAY DIESEL
7 MOTOR FUEL" SHALL HAVE THE SAME MEANING AS THEY HAVE FOR PURPOSES OF
8 ARTICLE TWELVE-A OF THIS CHAPTER.
9 S 39. Paragraph 2 of subdivision (a) of section 1102 of the tax law,
10 as separately amended by section 9 of part W-1 of chapter 109 and chap-
11 ter 302 of the laws of 2006, is amended to read as follows:
12 (2) Every distributor of diesel motor fuel shall pay, as a prepayment
13 on account of the taxes imposed by this article and pursuant to the
14 authority of article twenty-nine of this chapter, a tax upon the sale or
15 use of diesel motor fuel in this state. The tax shall be computed based
16 upon the number of gallons of diesel motor fuel sold or used. Provided,
17 however, if the tax has not been imposed prior thereto, it shall be
18 imposed on the delivery of diesel motor fuel to a retail service
19 station. The collection of such tax shall not be made applicable to the
20 sale or use of diesel motor fuel under circumstances which preclude the
21 collection of such tax by reason of the United States constitution and
22 of laws of the United States enacted pursuant thereto. The prepaid tax
23 on diesel motor fuel shall not apply to (i) the sale of previously
24 untaxed [diesel motor fuel which is not enhanced] NON-HIGHWAY Diesel
25 motor fuel to a person registered as a distributor of Diesel motor fuel
26 other than a sale to such person which involves a delivery at a filling
27 station or into a repository which is equipped with a hose or other
28 apparatus by which such fuel can be dispensed into the fuel tank of a
29 motor vehicle, OR (ii) the sale to or delivery at a filling station or
30 other retail vendor of water-white kerosene provided such filling
31 station or other retail vendor only sells such water-white kerosene
32 exclusively for heating purposes in containers of no more than twenty
33 gallons or to the sale of CNG or hydrogen [or (iii) the sale of dyed
34 diesel motor fuel as set forth in clause (A) or (B) of subparagraph (i)
35 of paragraph (c) of subdivision three of section two hundred
36 eighty-two-a of this chapter].
37 S 39-a. Paragraph 2 of subdivision (a) of section 1102 of the tax law,
38 as amended by chapter 302 of the laws of 2006, is amended to read as
39 follows:
40 (2) Every distributor of diesel motor fuel shall pay, as a prepayment
41 on account of the taxes imposed by this article and pursuant to the
42 authority of article twenty-nine of this chapter, a tax upon the sale or
43 use of diesel motor fuel in this state. The tax shall be computed based
44 upon the number of gallons of diesel motor fuel sold or used. Provided,
45 however, if the tax has not been imposed prior thereto, it shall be
46 imposed on the delivery of diesel motor fuel to a retail service
47 station. The collection of such tax shall not be made applicable to the
48 sale or use of diesel motor fuel under circumstances which preclude the
49 collection of such tax by reason of the United States constitution and
50 of laws of the United States enacted pursuant thereto. The prepaid tax
51 on diesel motor fuel shall not apply to (i) the sale of previously
52 untaxed [diesel motor fuel which is not enhanced] NON-HIGHWAY Diesel
53 motor fuel to a person registered as a distributor of Diesel motor fuel
54 other than a sale to such person which involves a delivery at a filling
55 station or into a repository which is equipped with a hose or other
56 apparatus by which such fuel can be dispensed into the fuel tank of a
A. 4011--B 85
1 motor vehicle, OR (ii) the sale to or delivery at a filling station or
2 other retail vendor of water-white kerosene provided such filling
3 station or other retail vendor only sells such water-white kerosene
4 exclusively for heating purposes in containers of no more than twenty
5 gallons [or (iii) the sale of dyed diesel motor fuel as set forth in
6 clause (A) or (B) of subparagraph (i) of paragraph (c) of subdivision
7 three of section two hundred eighty-two-a of this chapter].
8 S 40. Subsection (a) of section 1105-A of the tax law, as amended by
9 section 1 of part B of chapter 35 of the laws of 2006, is amended to
10 read as follows:
11 (a) Notwithstanding any other provisions of this article, but not for
12 purposes of the taxes imposed by section eleven hundred eight of this
13 part or authorized pursuant to the authority of article twenty-nine of
14 this chapter, the taxes imposed by subdivision (a) or (b) of section
15 eleven hundred five OF THIS PART on the receipts from the retail sale of
16 fuel oil and coal used for residential purposes; the receipts from the
17 retail sale of wood used for residential heating purposes; and the
18 receipts from every sale, other than for resale, of propane (except when
19 sold in containers of less than one hundred pounds), natural gas, elec-
20 tricity, steam and gas, electric and steam services used for residential
21 purposes shall be paid at the rate of three percent for the period
22 commencing January first, nineteen hundred seventy-nine and ending
23 December thirty-first, nineteen hundred seventy-nine; at the rate of two
24 and one-half percent for the period commencing January first, nineteen
25 hundred eighty and ending September thirtieth, nineteen hundred eighty,
26 and at the rate of zero percent on and after October first, nineteen
27 hundred eighty. The provisions of this subsection shall not apply to a
28 sale of [(i)] diesel motor fuel which involves a delivery at a filling
29 station or into a repository which is equipped with a hose or other
30 apparatus by which such fuel can be dispensed into the fuel tank of a
31 motor vehicle [and (ii) enhanced diesel motor fuel except in the case of
32 a sale of such enhanced diesel motor fuel used exclusively for residen-
33 tial purposes which is delivered into a storage tank 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 storage tank is
36 attached to the heating unit burning such fuel, provided that each
37 delivery of such fuel of over four thousand five hundred gallons shall
38 be evidenced by a certificate signed by the purchaser stating that the
39 product will be used exclusively for residential purposes].
40 S 41. Subdivision (j) of section 1115 of the tax law, as amended by
41 section 12 of part W-1 of chapter 109 of the laws of 2006, is amended to
42 read as follows:
43 (j) The exemptions provided in this section shall not apply to the tax
44 required to be prepaid pursuant to the provisions of section eleven
45 hundred two of this article nor to the taxes imposed by sections eleven
46 hundred five and eleven hundred ten of this article with respect to
47 receipts from sales and uses of motor fuel or diesel motor fuel, except
48 that the exemptions provided in paragraphs nine and forty-two of subdi-
49 vision (a) of this section shall apply to the tax required to be prepaid
50 pursuant to the provisions of section eleven hundred two of this article
51 and to the taxes imposed by sections eleven hundred five and eleven
52 hundred ten of this article with respect to sales and uses of kero-jet
53 fuel, CNG, hydrogen and E85, provided, however, the exemption allowed
54 for E85 shall be subject to the additional requirements provided in
55 section eleven hundred two of this article with respect to E85. The
56 exemption provided in subdivision (c) of this section shall apply to
A. 4011--B 86
1 sales and uses of NON-HIGHWAY diesel motor fuel [which is not enhanced
2 diesel motor fuel] but only if all of such fuel is consumed other than
3 on the PUBLIC highways of this state[, provided, however, this exemption
4 shall in no event apply to a sale of diesel motor fuel which involves a
5 delivery at a filling station or into a repository which is equipped
6 with a hose or other apparatus by which such fuel can be dispensed into
7 the fuel tank of a motor vehicle]. The exemption provided in subdivision
8 (c) of this section shall apply to sales and uses of [no more than four
9 thousand five hundred gallons of] NON-HIGHWAY diesel motor fuel [in a
10 thirty-day period] for use or consumption either in the production for
11 sale of tangible personal property by farming or in a commercial horse
12 boarding operation, or in both but only if all of such fuel is consumed
13 other than on the PUBLIC highways of this state (except for the use of
14 the PUBLIC highways to reach adjacent farmlands or adjacent lands used
15 in a commercial horse boarding operation, or both)[, provided, however,
16 such exemption shall be applicable to the sale or use of more than four
17 thousand five hundred gallons of diesel motor fuel in a thirty-day peri-
18 od for such use or consumption in accordance with a prior clearance
19 given by the commissioner].
20 S 41-a. Subdivision (j) of section 1115 of the tax law, as amended by
21 section 8 of part B of chapter 63 of the laws of 2000, is amended to
22 read as follows:
23 (j) The exemptions provided in this section shall not apply to the tax
24 required to be prepaid pursuant to the provisions of section eleven
25 hundred two of this article nor to the taxes imposed by sections eleven
26 hundred five and eleven hundred ten of this article with respect to
27 receipts from sales and uses of motor fuel or diesel motor fuel, except
28 that the exemption provided in paragraph nine of subdivision (a) of this
29 section shall apply to the tax required to be prepaid pursuant to the
30 provisions of section eleven hundred two of this article and to the
31 taxes imposed by sections eleven hundred five and eleven hundred ten of
32 this article with respect to sales and uses of kero-jet fuel. The
33 exemption provided in subdivision (c) of this section shall apply to
34 sales and uses of NON-HIGHWAY diesel motor fuel [which is not enhanced
35 diesel motor fuel] but only if all of such fuel is consumed other than
36 on the PUBLIC highways of this state[, provided, however, this exemption
37 shall in no event apply to a sale of diesel motor fuel which involves a
38 delivery at a filling station or into a repository which is equipped
39 with a hose or other apparatus by which such fuel can be dispensed into
40 the fuel tank of a motor vehicle]. The exemption provided in subdivision
41 (c) of this section shall apply to sales and uses of [no more than four
42 thousand five hundred gallons of] NON-HIGHWAY diesel motor fuel [in a
43 thirty-day period] for use or consumption either in the production for
44 sale of tangible personal property by farming or in a commercial horse
45 boarding operation, or in both but only if all of such fuel is consumed
46 other than on the PUBLIC highways of this state (except for the use of
47 the PUBLIC highways to reach adjacent farmlands or adjacent lands used
48 in a commercial horse boarding operation, or both)[, provided, however,
49 such exemption shall be applicable to the sale or use of more than four
50 thousand five hundred gallons of diesel motor fuel in a thirty-day peri-
51 od for such use or consumption in accordance with a prior clearance
52 given by the commissioner].
53 S 42. Subdivision (e) of section 1120 of the tax law, as amended by
54 chapter 2 of the laws of 1995, is amended to read as follows:
55 (e) Immediate export. With respect to (i) motor fuel imported, manu-
56 factured or sold or purchased in this state, and (ii) [enhanced] HIGHWAY
A. 4011--B 87
1 diesel motor fuel, a refund or credit shall be allowed a registered
2 distributor of this state or a purchaser of the tax required to be
3 prepaid pursuant to section eleven hundred two of this article in the
4 amount of such tax paid by or included in the price paid by a distribu-
5 tor or such purchaser if such fuel was exported from this state for sale
6 outside this state, such distributor or such purchaser, as the case may
7 be, exporting such fuel is duly registered with or licensed by the
8 taxing authorities of the state to which such fuel is exported as a
9 distributor or a dealer in the fuel being so exported, and in connection
10 with such exportation such fuel was immediately shipped to an identified
11 facility in the state to which such fuel is exported, and provided the
12 applicant complies with all requirements and rules and regulations of
13 the commissioner, including evidentiary requirements, relating thereto.
14 S 43. Subparagraph (i) of paragraph 3 of subdivision (h) of section
15 1132 of the tax law, as amended by chapter 261 of the laws of 1988, is
16 amended to read as follows:
17 (i) For the purpose of the proper administration of this article and
18 to prevent evasion of the tax hereby imposed, it shall be presumed that
19 all retail sales of motor fuel or diesel motor fuel are subject to the
20 tax required to be collected by subdivision (a) of section eleven
21 hundred five of this article or paid by the provisions of section eleven
22 hundred ten of this article until the contrary is established, and it
23 shall be presumed that all motor fuel or diesel motor fuel imported,
24 manufactured, [subjected to enhancement,] sold, received or possessed by
25 any person in this state, which such person cannot otherwise account for
26 as having been sold subject to the tax required to be collected by
27 subdivision (a) of section eleven hundred five or paid by the provisions
28 of section eleven hundred ten of this article, has been sold subject to
29 the tax required to be collected by subdivision (a) of section eleven
30 hundred five or paid by the provisions of section eleven hundred ten
31 except that no such presumption shall apply with respect to motor fuel
32 or diesel motor fuel in the fuel tank of a motor vehicle used to propel
33 such vehicle or to motor fuel in small drums or similar containers. The
34 burden of proving that any sale is not so subject shall be upon the
35 person required to collect such tax and the purchaser of such fuel.
36 S 44. Subparagraph (iii) of paragraph 1 of subdivision (a) of section
37 1134 of the tax law, as amended by section 160 of part A of chapter 389
38 of the laws of 1997, is amended to read as follows:
39 (iii) every person selling [automotive fuel] PETROLEUM PRODUCTS
40 including persons who or which are not distributors,
41 S 45. Subdivision (d) of section 1135 of the tax law, as amended by
42 chapter 44 of the laws of 1985 and as relettered by chapter 61 of the
43 laws of 1989, is amended to read as follows:
44 (d) Every person selling or holding large volumes of [automotive fuel]
45 PETROLEUM PRODUCTS shall keep records for such periods and in the manner
46 prescribed by the [tax commission] COMMISSIONER pursuant to rules and
47 regulations. Such records shall show (1) the number of gallons of [auto-
48 motive fuel] PETROLEUM PRODUCTS purchased, the price paid therefor, the
49 amount of tax paid pursuant to the provisions of section eleven hundred
50 two of this article [and the regional average retail sales price appli-
51 cable thereto] and (2) the number of gallons sold, and the price paid by
52 the purchaser to whom such person sells the [automotive fuel] PETROLEUM
53 PRODUCTS, and the amount of tax included in such price pursuant to the
54 provisions of section eleven hundred two of this article and the
55 [regional average retail sales price or the] amount of tax collected
56 pursuant to the provisions of subdivision (a) of section eleven hundred
A. 4011--B 88
1 five of this article applicable to such sale together with such addi-
2 tional information as the [tax commission] COMMISSIONER shall require.
3 The [regional average retail sales price, and the] amount of tax shall
4 be calculated in the manner set forth in section eleven hundred eleven
5 of this article.
6 S 46. Subdivision (a) of section 1136 of the tax law, as amended by
7 chapter 89 of the laws of 1976, paragraphs 1, 2, 3 and 5 as amended and
8 paragraph 6 as added by chapter 2 of the laws of 1995 and paragraphs 4
9 and 7 as amended by section 2-e of part M-1 of chapter 106 of the laws
10 of 2006, is amended to read as follows:
11 (a) (1) 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 less than three hundred
14 thousand dollars, or in the case of any such person who is a distributor
15 whose sales of [automotive fuel] PETROLEUM PRODUCTS total less than one
16 hundred thousand gallons, in every quarter of the preceding four quar-
17 ters, shall only file a return quarterly with the commissioner.
18 (2) Every person required to register with the commissioner as
19 provided in section eleven hundred thirty-four OF THIS PART whose taxa-
20 ble receipts, amusement charges and rents total three hundred thousand
21 dollars or more, or in the case of any such person who is a distributor
22 whose sales of [automotive fuel] PETROLEUM PRODUCTS total one hundred
23 thousand gallons or more, in any quarter of the preceding four quarters,
24 shall, in addition to filing a quarterly return described in paragraph
25 one of this subdivision, and except as otherwise provided in section
26 eleven hundred two or eleven hundred three of this article, file either
27 a long-form or short-form part-quarterly return monthly with the commis-
28 sioner.
29 (3) However, a person required to register with the commissioner as
30 provided in section eleven hundred thirty-four OF THIS PART only because
31 such person is purchasing or selling tangible personal property for
32 resale, and who is not required to collect any tax or pay any tax
33 directly to the commissioner under this article, shall file an informa-
34 tion return annually in such form as the commissioner may prescribe.
35 Likewise, a person, who is required to register and who is selling
36 [automotive fuel] PETROLEUM PRODUCTS who is not a distributor of motor
37 fuel, shall file an information return quarterly or, if the commissioner
38 deems necessary, monthly, in such form as the commissioner shall
39 prescribe.
40 (4) The return of a vendor of tangible personal property or services
41 shall show such vendor's receipts from sales and the number of gallons
42 of any motor fuel or diesel motor fuel sold and also the aggregate value
43 of tangible personal property and services and number of gallons of such
44 fuels sold by the vendor, the use of which is subject to tax under this
45 article, and the amount of tax payable thereon pursuant to the
46 provisions of section eleven hundred thirty-seven of this part. The
47 return of a recipient of amusement charges shall show all such charges
48 and the amount of tax thereon, and the return of an operator required to
49 collect tax on rents shall show all rents received or charged and the
50 amount of tax thereon.
51 (5) The returns of any seller of [automotive fuel] PETROLEUM PRODUCTS
52 shall show the number of gallons of [automotive fuel] PETROLEUM PRODUCTS
53 sold, together with such additional information as the commissioner
54 shall require in order to certify the amount of taxes, penalties and
55 interest payable to local taxing jurisdictions imposed on the sale or
A. 4011--B 89
1 use of [automotive fuel] PETROLEUM PRODUCTS pursuant to the provisions
2 of section twelve hundred sixty-one of this chapter.
3 (6) The returns of any seller of cigarettes shall show the amount of
4 prepaid tax assumed or paid thereon and passed through, together with
5 such additional information as the commissioner shall require.
6 (7) Taxable receipts as used in this section shall include taxable
7 receipts from the sale of [automotive fuel] PETROLEUM PRODUCTS and ciga-
8 rettes and any receipts from the sale of motor fuel or diesel motor fuel
9 or cigarettes in this state whether or not such receipts are subject to
10 the taxes imposed by section eleven hundred two, eleven hundred three,
11 eleven hundred five or eleven hundred ten of this article and regardless
12 of whether the provisions of section eleven hundred twenty or eleven
13 hundred twenty-one of this article are applicable to the taxes imposed
14 in respect of such receipts or numbers of gallons of motor fuel or
15 diesel motor fuel sold.
16 [(i)] (8) For purposes of this article the term "long-form, part-quar-
17 terly return" shall mean a return in a form determined by the [tax
18 commission] COMMISSIONER providing for the calculation of the actual
19 sales and compensating use taxes for the preceding month in the manner
20 set forth in subdivisions (a) and (b) of section eleven hundred thirty-
21 seven OF THIS PART. A person filing a long-form, part-quarterly return
22 for each of the months contained in a quarter shall also be required to
23 file a quarterly return for such quarter.
24 [(ii)] (9) For purposes of this article the term "short-form, part-
25 quarterly return" shall mean a return which shall be available for use
26 in filing as a return for the first two months of any quarter and only
27 by a person required to file a return monthly who has had at least four
28 successive quarterly tax periods immediately preceding the month for
29 which the return is to be filed and who elects such use, and is in a
30 form determined by the [tax commission] COMMISSIONER and providing for
31 the calculation of one-third of the total state and local sales and
32 compensating use taxes paid by the person to the [tax commission]
33 COMMISSIONER in the comparable quarter of the immediately preceding year
34 under this article and as taxes imposed pursuant to the authority of
35 article twenty-nine with respect to all receipts, amusement charges and
36 rents.
37 S 47. Subdivision 11 of section 1142 of the tax law, as added by chap-
38 ter 930 of the laws of 1982, is amended to read as follows:
39 11. To make such provision pursuant to rules and regulations for the
40 joint administration, in whole or in part, of the state and local taxes
41 imposed by this article and authorized by article twenty-nine of this
42 chapter upon the sale of [automotive fuel] PETROLEUM PRODUCTS and the
43 taxes imposed by article twelve-A of this chapter and authorized to be
44 imposed by such article, including the joint reporting, assessment,
45 collection, determination and refund of such taxes, and for that purpose
46 to prescribe that any of the [commission's] COMMISSIONER'S functions
47 under said articles, and any returns, forms, statements, documents or
48 information to be submitted to the [commission] COMMISSIONER under said
49 articles, any books and records to be kept for purposes of the taxes
50 imposed or authorized by said articles, any schedules of amounts to be
51 collected under said articles, any registration required under said
52 articles, and the payment of taxes under said articles shall be on a
53 joint basis with respect to the taxes imposed by said articles.
54 S 48. Subparagraph (i) of paragraph 3 of subdivision (a) of section
55 1145 of the tax law, as amended by chapter 2 of the laws of 1995, is
56 amended to read as follows:
A. 4011--B 90
1 (i) Any person required to obtain a certificate of authority under
2 section eleven hundred thirty-four OF THIS PART who, without possessing
3 a valid certificate of authority, (A) sells tangible personal property
4 or services subject to tax, receives amusement charges or operates a
5 hotel, (B) purchases or sells tangible personal property for resale, (C)
6 sells [automotive fuel] PETROLEUM PRODUCTS, or (D) sells cigarettes
7 shall, in addition to any other penalty imposed by this chapter, be
8 subject to a penalty in an amount not exceeding five hundred dollars for
9 the first day on which such sales or purchases are made, plus an amount
10 not exceeding two hundred dollars for each subsequent day on which such
11 sales or purchases are made, not to exceed ten thousand dollars in the
12 aggregate.
13 S 49. Subparagraph (i) of paragraph 3 of subdivision (a) of section
14 1210 of the tax law, as amended by section 2 of part B of chapter 35 of
15 the laws of 2006, is amended to read as follows:
16 (i) Notwithstanding any other provision of law to the contrary but not
17 with respect to cities subject to the provisions of section eleven
18 hundred eight of this [article] CHAPTER, any city or county, except a
19 county wholly contained within a city, may provide that the taxes
20 imposed, pursuant to this subdivision, by such city or county on the
21 retail sale or use of fuel oil and coal used for residential purposes,
22 the retail sale or use of wood used for residential heating purposes,
23 the sale, other than for resale, of propane (except when sold in
24 containers of less than one hundred pounds), natural gas, electricity,
25 steam and gas, electric and steam services used for residential purposes
26 and the use of gas or electricity used for residential purposes may be
27 imposed at a lower rate than the uniform local rate imposed pursuant to
28 the opening paragraph of this section, as long as such rate is one of
29 the rates authorized by such paragraph or such sale or use may be
30 exempted from such taxes. Provided, however, such lower rate must apply
31 to all such energy sources and services and at the same rate and no such
32 exemption may be enacted unless such exemption applies to all such ener-
33 gy sources and services. The provisions of this subparagraph shall not
34 apply to a sale or use of [(i)] diesel motor fuel which involves a
35 delivery at a filling station or into a repository which is equipped
36 with a hose or other apparatus by which such fuel can be dispensed into
37 the fuel tank of a motor vehicle [and (ii) enhanced diesel motor fuel
38 except in the case of a sale or use of such enhanced diesel motor fuel
39 used exclusively for residential purposes which is delivered into a
40 storage tank which is not equipped with a hose or other apparatus by
41 which such fuel can be dispensed into the fuel tank of a motor vehicle
42 and such storage tank is attached to the heating unit burning such fuel,
43 provided that each delivery of such fuel of over four thousand five
44 hundred gallons shall be evidenced by a certificate signed by the
45 purchaser stating that the product will be used exclusively for residen-
46 tial purposes].
47 S 50. Subdivision (c) of section 1812 of the tax law, as amended by
48 section 25 of subpart I of part V-1 of chapter 57 of the laws of 2009,
49 is amended to read as follows:
50 (c) Any owner of a filling station who shall willfully and knowingly
51 have in his OR HER custody, possession or under his OR HER control any
52 motor fuel or Diesel motor fuel [on which] (1) ON WHICH the taxes
53 imposed by or pursuant to the authority of such article have not been
54 assumed or paid by a distributor registered as such under such article
55 [or], (2) ON WHICH the taxes imposed by or pursuant to the authority of
56 such article have not been included in the cost to him OR HER of such
A. 4011--B 91
1 fuel where such taxes were required to have been passed through to him
2 OR HER and included in the cost to him OR HER of such fuel, OR (3)
3 WHICH IS DYED DIESEL MOTOR FUEL AS DEFINED BY SUBDIVISION EIGHTEEN-A OF
4 SECTION TWO HUNDRED EIGHTY-TWO OF THIS CHAPTER (EXCEPT FOR WATER-WHITE
5 KEROSENE), shall [in either case,] be guilty of a class E felony. For
6 purposes of this subdivision, such owner shall willfully and knowingly
7 have in his OR HER custody, possession or under his OR HER control any
8 motor fuel or Diesel motor fuel on which such taxes have not been
9 assumed or paid by a distributor registered as such where such owner has
10 knowledge of the requirement that such taxes be paid and where, to his
11 OR HER knowledge, such taxes have not been assumed or paid by a regis-
12 tered distributor on such motor fuel or Diesel motor fuel. Such owner
13 shall willfully and knowingly have in his OR HER custody, possession or
14 under his OR HER control any motor fuel or Diesel motor fuel on which
15 such taxes are required to have been passed through to him OR HER and
16 have not been included in his OR HER cost where such owner has knowledge
17 of the requirement that such taxes be passed through and where to his
18 knowledge such taxes have not been so included. SUCH OWNER SHALL WILL-
19 FULLY AND KNOWINGLY HAVE IN HIS OR HER CUSTODY, POSSESSION OR UNDER HIS
20 OR HER CONTROL ANY DYED DIESEL MOTOR FUEL (EXCEPT WATER-WHITE KEROSENE)
21 WHERE SUCH OWNER HAS KNOWLEDGE OF THE REQUIREMENT THAT DYED DIESEL MOTOR
22 FUEL (EXCEPT WATER-WHITE KEROSENE) MAY NOT BE IN HIS OR HER CUSTODY,
23 POSSESSION OR UNDER HIS OR HER CONTROL.
24 S 51. Subdivision (e) of section 1812 of the tax law is REPEALED and
25 subdivision (f) is relettered subdivision (e).
26 S 52. Section 1812-a of the tax law, as added by chapter 261 of the
27 laws of 1988, is amended to read as follows:
28 S 1812-a. Person not registered as distributor of Diesel motor fuel.
29 (a) Any person who, while not registered as a distributor of Diesel
30 motor fuel pursuant to the provisions of article twelve-A of this chap-
31 ter, [engages in the enhancement,] makes a sale or use within the state
32 of Diesel motor fuel (other than a retail sale not in bulk or the self-
33 use of Diesel motor fuel which has been the subject of a retail sale),
34 imports or causes Diesel motor fuel to be imported into the state or
35 produces, refines, manufactures or compounds Diesel motor fuel within
36 the state shall be guilty of a misdemeanor. If, within any ninety day
37 period, two thousand nine hundred gallons or more of Diesel motor fuel
38 are subjected to [enhancement or] sale or use (other than a retail sale
39 not in bulk or the self-use of Diesel motor fuel which has been the
40 subject of a retail sale) within the state or are imported or caused to
41 be imported by any person while not so registered as a distributor of
42 Diesel motor fuel, such person shall be guilty of a class E felony.
43 (b) Any person whose registration under article twelve-A of this chap-
44 ter applies only to the importation, sale and distribution of Diesel
45 motor fuel for [the purposes] USE OTHER THAN ON A PUBLIC HIGHWAY AS
46 described in subparagraph (i) of paragraph (b) of subdivision three of
47 section two hundred eighty-two-a of this chapter who delivers NON-HIGH-
48 WAY Diesel motor fuel at a filling station [other than for the sole
49 purpose of heating such station] or into a repository equipped with a
50 hose or other apparatus by which NON-HIGHWAY Diesel motor fuel can be
51 dispensed into the fuel tank of a motor vehicle, other than such a
52 repository which is located on the premises of such registrant where the
53 Diesel motor fuel delivered therein is used exclusively for the purpose
54 of fueling motor vehicles operated by registrant for the purpose of
55 distributing Diesel motor fuel for the purposes described in such
56 subparagraph (i), shall be guilty of a misdemeanor. If, within any nine-
A. 4011--B 92
1 ty day period, any such person whose registration under article twelve-A
2 of this chapter applies only to the importation, sale and distribution
3 of NON-HIGHWAY Diesel motor fuel for the purposes described in subpara-
4 graph (i) of paragraph (b) of subdivision three of section two hundred
5 eighty-two-a of this chapter so unlawfully delivers a total of one thou-
6 sand gallons or more of Diesel motor fuel at such filling station or
7 stations or into such repository or repositories (or a combination of
8 both such filling stations and repositories), then, such person shall be
9 guilty of a class E felony.
10 (c) Any person who has twice been convicted under this section shall
11 be guilty of a class E felony for any subsequent violation of this
12 section, regardless of the amount of Diesel motor fuel involved in such
13 violation. For purposes of this section, the terms ["enhancement"]
14 "NON-HIGHWAY DIESEL MOTOR FUEL" and "retail sale not in bulk" shall have
15 the same meaning they have for purposes of article twelve-A of this
16 chapter.
17 S 53. Subdivisions (a) and (b) of section 1817 of the tax law, as
18 amended by section 30 of subpart I of part V-1 of chapter 57 of the laws
19 of 2009, is amended to read as follows:
20 (a) Any person required to obtain a certificate of authority under
21 section eleven hundred thirty-four of this chapter who, without possess-
22 ing a valid certificate of authority, willfully (1) sells tangible
23 personal property or services subject to tax, receives amusement charges
24 or operates a hotel, (2) purchases or sells tangible personal property
25 for resale, or (3) sells [automotive fuel] PETROLEUM PRODUCTS; and any
26 person who fails to surrender a certificate of authority as required by
27 such article shall be guilty of a misdemeanor.
28 (b) Any person required to obtain a certificate of authority under
29 section eleven hundred thirty-four of this chapter who within five years
30 after a determination by the [tax commission] COMMISSIONER, pursuant to
31 such section, to suspend, revoke or refuse to issue a certificate of
32 authority has become final, and without possession of a valid certif-
33 icate of authority (1) sells tangible personal property or services
34 subject to tax, receives amusement charges or operates a hotel, (2)
35 purchases or sells tangible personal property for resale, or (3) sells
36 [automotive fuel] PETROLEUM PRODUCTS, shall be guilty of a misdemeanor.
37 It shall be an affirmative defense that such person performed the acts
38 described in this subdivision without knowledge of such determination.
39 Any person who violates a provision of this subdivision, upon
40 conviction, shall be subject to a fine in any amount authorized by this
41 article, but not less than five hundred dollars, in addition to any
42 other penalty provided by law.
43 S 54. The section heading, subdivisions (a), (b) and (c), paragraph 3,
44 subparagraph (D) of paragraph 4 and paragraph 6 of subdivision (d) and
45 subdivisions (e) and (g) of section 1848 of the tax law, as added by
46 chapter 276 of the laws of 1986 and subparagraph (D) of paragraph 4 and
47 paragraph 6 of subdivision (d) as amended by chapter 190 of the laws of
48 1990, are amended to read as follows:
49 Forfeiture action with respect to motor fuel and DIESEL MOTOR FUEL AND
50 vehicle carrying such fuel. (a) Temporary seizure. Whenever a police
51 officer designated in section 1.20 of the criminal procedure law or a
52 peace officer designated in subdivision four of section 2.10 of such
53 law, acting pursuant to his special duties, shall discover any motor
54 fuel OR DIESEL MOTOR FUEL which is being imported for use, distribution,
55 storage or sale in the state where the person importing or causing such
56 motor fuel OR DIESEL MOTOR FUEL to be imported is not registered as a
A. 4011--B 93
1 distributor under section two hundred eighty-three OR SECTION TWO
2 HUNDRED EIGHTY-TWO-A, of this chapter, AS THE CASE MAY BE, such police
3 officer or peace officer is hereby authorized to seize and take
4 possession of such motor fuel OR DIESEL MOTOR FUEL, together with the
5 vehicle or other means of transportation used to transport such motor
6 fuel.
7 (b) Retention of property. The department [of taxation and finance]
8 shall hold and safely keep such motor fuel, DIESEL MOTOR FUEL, vehicle
9 or other means of transportation seized pursuant to subdivision (a) of
10 this section. Seized motor fuel OR DIESEL MOTOR FUEL may be deposited
11 to the credit of the department [of taxation and finance] at a terminal
12 or other storage facility within the state or may be sold by the depart-
13 ment on the open market.
14 (c) Confirmation of temporary seizure. Within five business days after
15 the temporary seizure of motor fuel, DIESEL MOTOR FUEL, vehicle or other
16 means of transportation pursuant to subdivision (a) of this section, the
17 department [of taxation and finance] shall move in supreme court in any
18 county, on such notice as the court shall direct to the owners of the
19 property, to confirm the temporary seizure. If the department [of taxa-
20 tion and finance] fails to make such motion within the required period,
21 such seized property shall be restored to the owners thereof as provided
22 in subdivision (e) of this section. On a motion for an order confirming
23 the seizure, the department [of taxation and finance] shall show, by
24 affidavit and such other written evidence as may be submitted, that
25 there is a cause of action for forfeiture under subdivision (d) of this
26 section and that there are grounds for confirmation of the seizure. The
27 department shall include, in its motion papers, an inventory of all
28 seized property. The court shall grant an application for an order
29 confirming the seizure when it determines that there is a substantial
30 probability that the department [of taxation and finance] will prevail
31 on the issue of forfeiture.
32 (3) Forfeiture of motor fuel OR DIESEL MOTOR FUEL together with the
33 vehicle or other means of transportation used to transport such motor
34 fuel OR DIESEL MOTOR FUEL shall be adjudged where the department [of
35 taxation and finance] proves, by clear and convincing evidence, that the
36 person importing or causing such motor fuel OR DIESEL MOTOR FUEL to be
37 imported was not registered as a distributor under section two hundred
38 eighty-three OR SECTION TWO HUNDRED EIGHTY-TWO-A of this chapter, AS THE
39 CASE MAY BE. All defendants in a forfeiture action brought pursuant to
40 this article shall have the right to trial by jury on any issue of fact.
41 (D) The court may grant the relief provided in subparagraph (A) [here-
42 of] OF THIS PARAGRAPH if it finds that such relief is warranted by the
43 existence of some compelling factor, consideration or circumstance
44 demonstrating that forfeiture of the property or any part thereof, would
45 not serve the ends of justice. Reporting and payment of the tax imposed
46 pursuant to article twelve-A or article twenty-eight of this chapter
47 with respect to such motor fuel OR DIESEL MOTOR FUEL subsequent to the
48 seizure of such fuel shall not constitute a compelling factor, consider-
49 ation or circumstance warranting the granting of the relief provided for
50 in subparagraph (A) [hereof] of this paragraph. In determining whether
51 such relief is warranted by the existence of some compelling factor,
52 consideration or circumstances pursuant to this paragraph, the court
53 may, however, take into account the fact that such taxes with respect to
54 the seized fuel have been reported and remitted to the state prior to
55 the temporary seizure of such fuel if the unregistered importation into
56 the state was effected in good faith and without knowledge of the
A. 4011--B 94
1 requirement of registration and without intent to evade tax. The court
2 must issue a written decision, stating the basis for an order issued
3 pursuant to this paragraph.
4 (6) The total that may be recovered shall not exceed the value of the
5 motor fuel OR DIESEL MOTOR FUEL seized and, in addition, either the
6 value of the vehicle or other means of transportation used to transport
7 such fuel or three times the amount of the tax and penalty under arti-
8 cles twelve-A, thirteen-A and twenty-eight and pursuant to the authority
9 of article twenty-nine of this chapter with respect to the motor fuel OR
10 DIESEL MOTOR FUEL, whichever is less.
11 (e) Return of property. If (1) the department [of taxation and
12 finance] fails to move for confirmation of the seizure pursuant to
13 subdivision (c) of this section or (2) a court denies an application for
14 an order confirming the seizure or (3) judgment is entered against the
15 department in the forfeiture action and that judgment is affirmed after
16 all appeals are exhausted, then the department shall restore such seized
17 motor fuel OR DIESEL MOTOR FUEL, or motor fuel OR DIESEL MOTOR FUEL of a
18 like quantity and type, or such seized vehicle or other means of trans-
19 portation to the owners thereof. Alternatively, if such seized motor
20 fuel OR DIESEL MOTOR FUEL has been sold as provided in subdivision (b)
21 of this section, the department shall pay to the owners of such motor
22 fuel OR DIESEL MOTOR FUEL the proceeds of such sale or, if greater, an
23 amount of money representing the fair market value of the motor fuel OR
24 DIESEL MOTOR FUEL at the time of the seizure.
25 (g) Disposal of property. The department [of taxation and finance],
26 after a judicial determination of forfeiture, shall, in its discretion,
27 either retain such seized property for its official use or sell such
28 forfeited property at public sale. The net proceeds of any such sale, or
29 of any sale of seized motor fuel OR DIESEL MOTOR FUEL as provided in
30 subdivision (b) of this section, after deduction of the lawful expenses
31 incurred, shall be deposited and disposed of pursuant to the provisions
32 of section one hundred seventy-one-a of this chapter with respect to
33 deposit and disposition of revenue.
34 S 55. Paragraph (q) of subdivision 34 of section 1.20 of the criminal
35 procedure law, as amended by chapter 318 of the laws of 2002, is amended
36 to read as follows:
37 (q) An employee of the department of taxation and finance (i) assigned
38 to enforcement of the taxes imposed under or pursuant to the authority
39 of article twelve-A of the tax law and administered by the commissioner
40 of taxation and finance, taxes imposed under or pursuant to the authori-
41 ty of article eighteen of the tax law and administered by the commis-
42 sioner, taxes imposed under article twenty of the tax law, or sales or
43 compensating use taxes relating to [automotive fuel] PETROLEUM PRODUCTS
44 or cigarettes imposed under article twenty-eight or pursuant to the
45 authority of article twenty-nine of the tax law and administered by the
46 commissioner or (ii) designated as a revenue crimes specialist and
47 assigned to the enforcement of the taxes described in paragraph (c) of
48 subdivision four of section 2.10 of this title, for the purpose of
49 applying for and executing search warrants under article six hundred
50 ninety of this chapter, for the purpose of acting as a claiming agent
51 under article thirteen-A of the civil practice law and rules in
52 connection with the enforcement of the taxes referred to above and for
53 the purpose of executing warrants of arrest relating to the respective
54 crimes specified in subdivision four of section 2.10 of this title.
A. 4011--B 95
1 S 56. Paragraph (a) of subdivision 4 of section 2.10 of the criminal
2 procedure law, as amended by chapter 2 of the laws of 1995, is amended
3 to read as follows:
4 (a) to the enforcement of any of the criminal or seizure and forfei-
5 ture provisions of the tax law relating to (i) taxes imposed under or
6 pursuant to the authority of article twelve-A of the tax law and admin-
7 istered by the commissioner, (ii) taxes imposed under or pursuant to the
8 authority of article eighteen of the tax law and administered by the
9 commissioner, (iii) taxes imposed under article twenty of the tax law,
10 or (iv) sales or compensating use taxes relating to [automotive fuel]
11 PETROLEUM PRODUCTS or cigarettes imposed under article twenty-eight or
12 pursuant to the authority of article twenty-nine of the tax law and
13 administered by the commissioner or
14 S 57. Sections 11-2033, 11-2034, 11-2035, 11-2036, 11-2037 and 11-2038
15 of the administrative code of the city of New York are REPEALED.
16 S 58. This act shall take effect September 1, 2011 and shall apply to
17 sales or uses occurring on or after such date in accordance with the
18 applicable transitional provisions in sections 1106 and 1217 of the tax
19 law; provided, however, that:
20 (a) the amendments to subdivisions 22 and 23 of section 282 of the tax
21 law, made by section one of this act shall not affect the repeal of such
22 subdivisions and shall be deemed repealed therewith;
23 (b) the amendments to paragraph 2 of subdivision (a) of section 1102
24 of the tax law made by section thirty-nine of this act shall be subject
25 to the expiration and reversion of such paragraph pursuant to section 19
26 of part W-1 of chapter 109 of the laws of 2006, as amended, when upon
27 such date the provisions of section thirty-nine-a of this act shall take
28 effect; and
29 (c) the amendments to subdivision (j) of section 1115 of the tax law
30 made by section forty-one of this act shall be subject to the expiration
31 and reversion of such subdivision pursuant to section 19 of part W-1 of
32 chapter 109 of the laws of 2006, as amended, when upon such date the
33 provisions of section forty-one-a of this act shall take effect.
34 PART L
35 Section 1. Subdivision 22 of section 282 of the tax law, as added by
36 section 1 of part W-1 of chapter 109 of the laws of 2006, is amended to
37 read as follows:
38 22. "E85" means a [mixture consisting by volume of eighty-five
39 percent] FUEL BLEND CONSISTING OF ethanol and [the remainder of which
40 is] motor fuel, WHICH MEETS THE ASTM INTERNATIONAL ACTIVE STANDARD D5798
41 FOR FUEL ETHANOL.
42 S 2. Section 19 of part W-1 of chapter 109 of the laws of 2006, amend-
43 ing the tax law relating to providing exemptions, reimbursements and
44 credits from various taxes for certain alternative fuels, is amended to
45 read as follows:
46 S 19. This act shall take effect immediately; provided, however, that
47 sections one through thirteen of this act shall take effect September 1,
48 2006 and shall be deemed repealed on September 1, [2011] 2012 and such
49 repeal shall apply in accordance with the applicable transitional
50 provisions of sections 1106 and 1217 of the tax law, and shall apply to
51 sales made, fuel compounded or manufactured, and uses occurring on or
52 after such date, and with respect to sections seven through eleven of
53 this act, in accordance with applicable transitional provisions of
54 sections 1106 and 1217 of the tax law; provided, however, that the
A. 4011--B 96
1 commissioner of taxation and finance shall be authorized on and after
2 the date this act shall have become a law to adopt and amend any rules
3 or regulations and to take any steps necessary to implement the
4 provisions of this act; provided further that sections fourteen through
5 sixteen of this act shall take effect immediately and shall apply to
6 taxable years beginning on or after January 1, 2006.
7 S 3. This act shall take effect immediately; provided, however, that
8 the amendments made to subdivision 22 of section 282 of the tax law made
9 by section one of this act shall not affect the repeal of such subdivi-
10 sion and shall be deemed repealed therewith.
11 PART M
12 Section 1. Section 11 of part EE of chapter 63 of the laws of 2000,
13 amending the tax law and other laws relating to modifying the distrib-
14 ution of funds from the motor vehicle fuel excise tax, as amended by
15 section 1-b of part A of chapter 63 of the laws of 2005, is amended to
16 read as follows:
17 S 11. Notwithstanding any other law, rule or regulation to the contra-
18 ry, the comptroller is hereby authorized and directed to deposit in
19 equal monthly installments and distribute pursuant to the provisions of
20 subdivision (d) of section 301-j of the tax law amounts listed below to
21 the credit of the dedicated highway and bridge trust fund and the dedi-
22 cated mass transportation trust fund from [taxes and fees] ALL MOTOR
23 VEHICLE RECEIPTS now deposited into the general fund pursuant to
24 provisions of the vehicle and traffic law: twenty-eight million four
25 hundred thousand dollars from April 1, 2002 through March 31, 2003,
26 sixty-seven million nine hundred thousand dollars from April 1, 2003
27 through March 31, 2004, one hundred seventy million one hundred thousand
28 dollars from April 1, 2004 through March 31, 2005, and one hundred
29 percent of all [taxes and fees] MOTOR VEHICLE RECEIPTS pursuant to
30 provisions of the vehicle and traffic law that are not otherwise
31 directed to be deposited in a fund other than the general fund from
32 April 1, 2005 through March 31, 2006, and the same amount each year
33 thereafter.
34 S 2. This act shall take effect April 1, 2011.
35 PART N
36 Intentionally omitted.
37 PART O
38 Section 1. Subparagraph (ii) of paragraph 1 of subdivision b of
39 section 1612 of the tax law is amended by adding a new clause (I) to
40 read as follows:
41 (I) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, FREE PLAY
42 ALLOWANCE CREDITS AUTHORIZED BY THE DIVISION PURSUANT TO SUBDIVISION F
43 OF SECTION SIXTEEN HUNDRED SEVENTEEN-A OF THIS ARTICLE SHALL NOT BE
44 INCLUDED IN THE CALCULATION OF THE TOTAL AMOUNT WAGERED ON VIDEO LOTTERY
45 GAMES, THE TOTAL AMOUNT WAGERED AFTER PAYOUT OF PRIZES, THE VENDOR FEES
46 PAYABLE TO THE OPERATORS OF VIDEO LOTTERY FACILITIES, VENDOR'S CAPITAL
47 AWARDS, FEES PAYABLE TO THE DIVISION'S VIDEO LOTTERY GAMING EQUIPMENT
48 CONTRACTORS, OR RACING SUPPORT PAYMENTS.
49 S 2. Section 1617-a of the tax law is amended by adding a new subdivi-
50 sion f to read as follows:
A. 4011--B 97
1 F. (1) THE DIVISION MAY ADMINISTER A FREE PLAY ALLOWANCE PROGRAM TO
2 OFFER PLAYERS OR PROSPECTIVE PLAYERS OF VIDEO LOTTERY GAMES FREE PLAY
3 CREDITS FOR THE PURPOSE OF INCREASING REVENUES EARNED BY THE VIDEO
4 LOTTERY PROGRAM FOR THE SUPPORT OF EDUCATION. FOR THE PURPOSES OF THIS
5 SUBDIVISION, "FREE PLAY ALLOWANCE CREDIT" MEANS A SPECIFIED DOLLAR
6 AMOUNT THAT (I) MAY BE USED BY A PLAYER TO PLAY A VIDEO LOTTERY GAME
7 WITHOUT PAYING ANY OTHER CONSIDERATION, AND (II) IS NOT USED IN THE
8 CALCULATION OF TOTAL REVENUE WAGERED AFTER PAYOUT OF PRIZES.
9 (2) FOR EACH VIDEO LOTTERY FACILITY, THE DIVISION SHALL AUTHORIZE THE
10 USE OF FREE PLAY ALLOWANCE CREDITS IF THE OPERATOR OF SUCH FACILITY
11 SUBMITS A WRITTEN PLAN FOR THE USE OF THE FREE PLAY ALLOWANCE THAT THE
12 DIVISION DETERMINES IS DESIGNED TO INCREASE THE AMOUNT OF REVENUE EARNED
13 BY VIDEO LOTTERY GAMING AT SUCH FACILITY FOR THE SUPPORT OF EDUCATION.
14 (3) FOR EACH VIDEO LOTTERY FACILITY, THE ANNUAL VALUE OF THE FREE PLAY
15 ALLOWANCE CREDITS AUTHORIZED FOR USE BY THE OPERATOR PURSUANT TO THIS
16 SUBDIVISION SHALL NOT EXCEED AN AMOUNT EQUAL TO TEN PERCENT OF THE TOTAL
17 AMOUNT WAGERED ON VIDEO LOTTERY GAMES AFTER PAYOUT OF PRIZES. THE DIVI-
18 SION SHALL ESTABLISH PROCEDURES TO ASSURE THAT FREE PLAY ALLOWANCE CRED-
19 ITS DO NOT EXCEED SUCH AMOUNT.
20 (4) THE DIVISION, IN CONJUNCTION WITH THE DIRECTOR OF THE BUDGET, MAY
21 SUSPEND THE USE OF FREE PLAY ALLOWANCE CREDITS AUTHORIZED PURSUANT TO
22 THIS SUBDIVISION WHENEVER THEY JOINTLY DETERMINE THAT THE USE OF FREE
23 PLAY ALLOWANCE CREDITS ARE NOT EFFECTIVE IN INCREASING THE AMOUNT OF
24 REVENUE EARNED FOR THE SUPPORT OF EDUCATION, AND SUCH USE MAY NOT BE
25 RESUMED UNLESS THE OPERATOR OF SUCH FACILITY SUBMITS A NEW OR REVISED
26 WRITTEN PLAN FOR THE USE OF THE FREE PLAY ALLOWANCE THAT THE DIVISION
27 DETERMINES IS DESIGNED MORE EFFECTIVELY TO PRODUCE AN INCREASE IN THE
28 AMOUNT OF REVENUE EARNED BY VIDEO LOTTERY GAMING AT SUCH FACILITY FOR
29 THE SUPPORT OF EDUCATION.
30 (5) NOTHING IN THIS SUBDIVISION SHALL BE DEEMED TO PROHIBIT THE OPERA-
31 TOR OF A VIDEO LOTTERY FACILITY FROM OFFERING FREE PLAY CREDITS TO PLAY-
32 ERS OR PROSPECTIVE PLAYERS OF VIDEO LOTTERY GAMES WHEN THE VALUE OF SUCH
33 FREE PLAY CREDITS IS INCLUDED IN THE CALCULATION OF THE TOTAL AMOUNT
34 WAGERED ON VIDEO LOTTERY GAMES AND THE TOTAL AMOUNT WAGERED AFTER PAYOUT
35 OF PRIZES, AND THE OPERATOR OF SUCH FACILITY PAYS THE DIVISION THE FULL
36 AMOUNT DUE AS THE RESULT OF SUCH CALCULATIONS.
37 (6) THE DIVISION MAY AMEND THE CONTRACT WITH THE PROVIDER OF THE
38 CENTRAL COMPUTER SYSTEM THAT CONTROLS THE VIDEO LOTTERY NETWORK DURING
39 THE TERM OF SUCH CONTRACT IN EFFECT ON THE EFFECTIVE DATE OF THIS SUBDI-
40 VISION TO PROVIDE ADDITIONAL CONSIDERATION TO SUCH PROVIDER IN AN AMOUNT
41 DETERMINED BY THE DIVISION TO BE NECESSARY TO COMPENSATE FOR (I) PROC-
42 ESSING FREE PLAY ALLOWANCE TRANSACTIONS AND (II) SYSTEM UPDATES AND
43 MODIFICATIONS OTHERWISE NEEDED AS OF SUCH EFFECTIVE DATE.
44 S 3. This act shall take effect immediately.
45 PART P
46 Section 1. Paragraph 2 of subdivision a of section 1612 of the tax
47 law, as amended by section 1 of part P of chapter 85 of the laws of
48 2002, is amended to read as follows:
49 (2) sixty-five percent of the total amount for which tickets have been
50 sold for the "Instant Cash" game in which the participant purchases a
51 preprinted ticket on which dollar amounts or symbols are concealed on
52 the face or the back of such ticket, provided however up to [three such]
53 FIVE NEW games may be offered during the fiscal year, seventy-five
54 percent of the total amount for which tickets have been sold for such
A. 4011--B 98
1 [three] FIVE games in which the participant purchases a preprinted tick-
2 et on which dollar amounts or symbols are concealed on the face or the
3 back of such ticket; or
4 S 2. This act shall take effect immediately.
5 PART Q
6 Intentionally omitted.
7 PART R
8 Intentionally omitted.
9 PART S
10 Section 1. Paragraph (a) of subdivision 1 of section 1003 of the
11 racing, pari-mutuel wagering and breeding law, as amended by section 1
12 of part C of chapter 134 of the laws of 2010, is amended to read as
13 follows:
14 (a) Any racing association or corporation or regional off-track
15 betting corporation, authorized to conduct pari-mutuel wagering under
16 this chapter, desiring to display the simulcast of horse races on which
17 pari-mutuel betting shall be permitted in the manner and subject to the
18 conditions provided for in this article may apply to the board for a
19 license so to do. Applications for licenses shall be in such form as may
20 be prescribed by the board and shall contain such information or other
21 material or evidence as the board may require. No license shall be
22 issued by the board authorizing the simulcast transmission of thorough-
23 bred races from a track located in Suffolk county. The fee for such
24 licenses shall be five hundred dollars per simulcast facility per year
25 payable by the licensee to the board for deposit into the general fund.
26 Except as provided herein, the board shall not approve any application
27 to conduct simulcasting into individual or group residences, homes or
28 other areas for the purposes of or in connection with pari-mutuel wager-
29 ing. The board may approve simulcasting into residences, homes or other
30 areas to be conducted jointly by one or more regional off-track betting
31 corporations and one or more of the following: a franchised corporation,
32 thoroughbred racing corporation or a harness racing corporation or asso-
33 ciation; provided (i) the simulcasting consists only of those races on
34 which pari-mutuel betting is authorized by this chapter at one or more
35 simulcast facilities for each of the contracting off-track betting
36 corporations which shall include wagers made in accordance with section
37 one thousand fifteen, one thousand sixteen and one thousand seventeen of
38 this article; provided further that the contract provisions or other
39 simulcast arrangements for such simulcast facility shall be no less
40 favorable than those in effect on January first, two thousand five; (ii)
41 that each off-track betting corporation having within its geographic
42 boundaries such residences, homes or other areas technically capable of
43 receiving the simulcast signal shall be a contracting party; (iii) the
44 distribution of revenues shall be subject to contractual agreement of
45 the parties except that statutory payments to non-contracting parties,
46 if any, may not be reduced; provided, however, that nothing herein to
47 the contrary shall prevent a track from televising its races on an
48 irregular basis primarily for promotional or marketing purposes as found
49 by the board. For purposes of this paragraph, the provisions of section
50 one thousand thirteen of this article shall not apply. Any agreement
A. 4011--B 99
1 authorizing an in-home simulcasting experiment commencing prior to May
2 fifteenth, nineteen hundred ninety-five, may, and all its terms, be
3 extended until June thirtieth, two thousand [eleven] TWELVE; provided,
4 however, that any party to such agreement may elect to terminate such
5 agreement upon conveying written notice to all other parties of such
6 agreement at least forty-five days prior to the effective date of the
7 termination, via registered mail. Any party to an agreement receiving
8 such notice of an intent to terminate, may request the board to mediate
9 between the parties new terms and conditions in a replacement agreement
10 between the parties as will permit continuation of an in-home experiment
11 until June thirtieth, two thousand [eleven] TWELVE; and (iv) no in-home
12 simulcasting in the thoroughbred special betting district shall occur
13 without the approval of the regional thoroughbred track.
14 S 2. Subparagraph (iii) of paragraph d of subdivision 3 of section
15 1007 of the racing, pari-mutuel wagering and breeding law, as amended by
16 section 2 of part C of chapter 134 of the laws of 2010, is amended to
17 read as follows:
18 (iii) Of the sums retained by a receiving track located in Westchester
19 county on races received from a franchised corporation, for the period
20 commencing January first, two thousand eight and continuing through June
21 thirtieth, two thousand [eleven] TWELVE, the amount used exclusively for
22 purses to be awarded at races conducted by such receiving track shall be
23 computed as follows: of the sums so retained, two and one-half percent
24 of the total pools. Such amount shall be increased or decreased in the
25 amount of fifty percent of the difference in total commissions deter-
26 mined by comparing the total commissions available after July twenty-
27 first, nineteen hundred ninety-five to the total commissions that would
28 have been available to such track prior to July twenty-first, nineteen
29 hundred ninety-five.
30 S 3. The opening paragraph of subdivision 1 of section 1014 of the
31 racing, pari-mutuel wagering and breeding law, as amended by section 3
32 of part C of chapter 134 of the laws of 2010, is amended to read as
33 follows:
34 The provisions of this section shall govern the simulcasting of races
35 conducted at thoroughbred tracks located in another state or country on
36 any day during which a franchised corporation is conducting a race meet-
37 ing in Saratoga county at Saratoga thoroughbred racetrack until June
38 thirtieth, two thousand [eleven] TWELVE and on any day regardless of
39 whether or not a franchised corporation is conducting a race meeting in
40 Saratoga county at Saratoga thoroughbred racetrack after June thirtieth,
41 two thousand [eleven] TWELVE. On any day on which a franchised corpo-
42 ration has not scheduled a racing program but a thoroughbred racing
43 corporation located within the state is conducting racing, every off-
44 track betting corporation branch office and every simulcasting facility
45 licensed in accordance with section one thousand seven (that have
46 entered into a written agreement with such facility's representative
47 horsemen's organization, as approved by the board), one thousand eight,
48 or one thousand nine of this article shall be authorized to accept
49 wagers and display the live simulcast signal from thoroughbred tracks
50 located in another state or foreign country subject to the following
51 provisions:
52 S 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering
53 and breeding law, as amended by section 4 of part C of chapter 134 of
54 the laws of 2010, is amended to read as follows:
55 1. The provisions of this section shall govern the simulcasting of
56 races conducted at harness tracks located in another state or country
A. 4011--B 100
1 during the period July first, nineteen hundred ninety-four through June
2 thirtieth, two thousand [eleven] TWELVE. This section shall supersede
3 all inconsistent provisions of this chapter.
4 S 5. The opening paragraph of subdivision 1 of section 1016 of the
5 racing, pari-mutuel wagering and breeding law, as amended by section 5
6 of part C of chapter 134 of the laws of 2010, is amended to read as
7 follows:
8 The provisions of this section shall govern the simulcasting of races
9 conducted at thoroughbred tracks located in another state or country on
10 any day during which a franchised corporation is not conducting a race
11 meeting in Saratoga county at Saratoga thoroughbred racetrack until June
12 thirtieth, two thousand [eleven] TWELVE. Every off-track betting corpo-
13 ration branch office and every simulcasting facility licensed in accord-
14 ance with section one thousand seven that have entered into a written
15 agreement with such facility's representative horsemen's organization as
16 approved by the board, one thousand eight or one thousand nine of this
17 article shall be authorized to accept wagers and display the live full-
18 card simulcast signal of thoroughbred tracks (which may include quarter
19 horse or mixed meetings provided that all such wagering on such races
20 shall be construed to be thoroughbred races) located in another state or
21 foreign country, subject to the following provisions; provided, however,
22 no such written agreement shall be required of a franchised corporation
23 licensed in accordance with section one thousand seven of this article:
24 S 6. The opening paragraph of section 1018 of the racing, pari-mutuel
25 wagering and breeding law, as amended by section 6 of part C of chapter
26 134 of the laws of 2010, is amended to read as follows:
27 Notwithstanding any other provision of this chapter, for the period
28 July twenty-fifth, two thousand one through September eighth, two thou-
29 sand [ten] ELEVEN, when a franchised corporation is conducting a race
30 meeting within the state at Saratoga Race Course, every off-track
31 betting corporation branch office and every simulcasting facility
32 licensed in accordance with section one thousand seven (that has entered
33 into a written agreement with such facility's representative horsemen's
34 organization as approved by the board), one thousand eight or one thou-
35 sand nine of this article shall be authorized to accept wagers and
36 display the live simulcast signal from thoroughbred tracks located in
37 another state, provided that such facility shall accept wagers on races
38 run at all in-state thoroughbred tracks which are conducting racing
39 programs subject to the following provisions; provided, however, no such
40 written agreement shall be required of a franchised corporation licensed
41 in accordance with section one thousand seven of this article.
42 S 7. Section 32 of chapter 281 of the laws of 1994, amending the
43 racing, pari-mutuel wagering and breeding law and other laws relating to
44 simulcasting, as amended by section 7 of part C of chapter 134 of the
45 laws of 2010, is amended to read as follows:
46 S 32. This act shall take effect immediately and the pari-mutuel tax
47 reductions in section six of this act shall expire and be deemed
48 repealed on July 1, [2011] 2012; provided, however, that nothing
49 contained herein shall be deemed to affect the application, qualifica-
50 tion, expiration, or repeal of any provision of law amended by any
51 section of this act, and such provisions shall be applied or qualified
52 or shall expire or be deemed repealed in the same manner, to the same
53 extent and on the same date as the case may be as otherwise provided by
54 law; provided further, however, that sections twenty-three and twenty-
55 five of this act shall remain in full force and effect only until May 1,
56 1997 and at such time shall be deemed to be repealed.
A. 4011--B 101
1 S 8. Section 54 of chapter 346 of the laws of 1990, amending the
2 racing, pari-mutuel wagering and breeding law and other laws relating to
3 simulcasting and the imposition of certain taxes, as amended by section
4 8 of part C of chapter 134 of the laws of 2010, is amended to read as
5 follows:
6 S 54. This act shall take effect immediately; provided, however,
7 sections three through twelve of this act shall take effect on January
8 1, 1991, and section 1013 of the racing, pari-mutuel wagering and breed-
9 ing law, as added by section thirty-eight of this act, shall expire and
10 be deemed repealed on July 1, [2011] 2012; and section eighteen of this
11 act shall take effect on July 1, 2008 and sections fifty-one and fifty-
12 two of this act shall take effect as of the same date as chapter 772 of
13 the laws of 1989 took effect.
14 S 9. Paragraph (a) of subdivision 1 of section 238 of the racing,
15 pari-mutuel wagering and breeding law, as amended by section 10 of part
16 C of chapter 134 of the laws of 2010, is amended to read as follows:
17 (a) The franchised corporation authorized under this chapter to
18 conduct pari-mutuel betting at a race meeting or races run thereat shall
19 distribute all sums deposited in any pari-mutuel pool to the holders of
20 winning tickets therein, provided such tickets be presented for payment
21 before April first of the year following the year of their purchase,
22 less an amount which shall be established and retained by such fran-
23 chised corporation of between twelve to seventeen per centum of the
24 total deposits in pools resulting from on-track regular bets, and four-
25 teen to twenty-one per centum of the total deposits in pools resulting
26 from on-track multiple bets and fifteen to twenty-five per centum of the
27 total deposits in pools resulting from on-track exotic bets and fifteen
28 to thirty-six per centum of the total deposits in pools resulting from
29 on-track super exotic bets, plus the breaks. The retention rate to be
30 established is subject to the prior approval of the racing and wagering
31 board. Such rate may not be changed more than once per calendar quarter
32 to be effective on the first day of the calendar quarter. "Exotic bets"
33 and "multiple bets" shall have the meanings set forth in section five
34 hundred nineteen of this chapter. "Super exotic bets" shall have the
35 meaning set forth in section three hundred one of this chapter. For
36 purposes of this section, a "pick six bet" shall mean a single bet or
37 wager on the outcomes of six races. The breaks are hereby defined as the
38 odd cents over any multiple of five for payoffs greater than one dollar
39 five cents but less than five dollars, over any multiple of ten for
40 payoffs greater than five dollars but less than twenty-five dollars,
41 over any multiple of twenty-five for payoffs greater than twenty-five
42 dollars but less than two hundred fifty dollars, or over any multiple of
43 fifty for payoffs over two hundred fifty dollars. Out of the amount so
44 retained there shall be paid by such franchised corporation to the
45 commissioner of taxation and finance, as a reasonable tax by the state
46 for the privilege of conducting pari-mutuel betting on the races run at
47 the race meetings held by such franchised corporation, the following
48 percentages of the total pool for regular and multiple bets five per
49 centum of regular bets and four per centum of multiple bets plus twenty
50 per centum of the breaks; for exotic wagers seven and one-half per
51 centum plus twenty per centum of the breaks, and for super exotic bets
52 seven and one-half per centum plus fifty per centum of the breaks. For
53 the period June first, nineteen hundred ninety-five through September
54 ninth, nineteen hundred ninety-nine, such tax on regular wagers shall be
55 three per centum and such tax on multiple wagers shall be two and one-
56 half per centum, plus twenty per centum of the breaks. For the period
A. 4011--B 102
1 September tenth, nineteen hundred ninety-nine through March thirty-
2 first, two thousand one, such tax on all wagers shall be two and six-
3 tenths per centum and for the period April first, two thousand one
4 through December thirty-first, two thousand [eleven] TWELVE, such tax on
5 all wagers shall be one and six-tenths per centum, plus, in each such
6 period, twenty per centum of the breaks. Payment to the New York state
7 thoroughbred breeding and development fund by such franchised corpo-
8 ration shall be one-half of one per centum of total daily on-track pari-
9 mutuel pools resulting from regular, multiple and exotic bets and three
10 per centum of super exotic bets provided, however, that for the period
11 September tenth, nineteen hundred ninety-nine through March thirty-
12 first, two thousand one, such payment shall be six-tenths of one per
13 centum of regular, multiple and exotic pools and for the period April
14 first, two thousand one through December thirty-first, two thousand
15 [eleven] TWELVE, such payment shall be seven-tenths of one per centum of
16 such pools.
17 S 10. Subdivision 5 of section 1012 of the racing, pari-mutuel wager-
18 ing and breeding law, as amended by section 11 of part C of chapter 134
19 of the laws of 2010, is amended to read as follows:
20 5. The provisions of this section shall expire and be of no further
21 force and effect after June thirtieth, two thousand [eleven] TWELVE.
22 S 11. This act shall take effect immediately.
23 PART T
24 Section 1. Subsections (a), (b), and (c) of section 601 of the tax
25 law, as amended by section 1 of part Z-1 of chapter 57 of the laws of
26 2009, are amended to read as follows:
27 (a) Resident married individuals filing joint returns and resident
28 surviving spouses. There is hereby imposed for each taxable year on the
29 New York taxable income of every resident married individual who makes a
30 single return jointly with his spouse under subsection (b) of section
31 six hundred fifty-one and on the New York taxable income of every resi-
32 dent surviving spouse a tax determined in accordance with the following
33 tables:
34 (1) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND ELEVEN AND BEFORE
35 TWO THOUSAND THIRTEEN:
36 IF THE NEW YORK TAXABLE INCOME IS: THE TAX IS:
37 NOT OVER $16,000 4% OF THE NEW YORK TAXABLE INCOME
38 OVER $16,000 BUT NOT OVER $22,000 $640 PLUS 4.5% OF EXCESS OVER
39 $16,000
40 OVER $22,000 BUT NOT OVER $26,000 $910 PLUS 5.25% OF EXCESS OVER
41 $22,000
42 OVER $26,000 BUT NOT OVER $40,000 $1,120 PLUS 5.9% OF EXCESS OVER
43 $26,000
44 OVER $40,000 BUT NOT OVER $1,000,000 $1,946 PLUS 6.85% OF EXCESS OVER
45 OVER $40,000
46 OVER $1,000,000 $67,706 PLUS 8.97% OF EXCESS
47 OVER $1,000,000
48 (2) For taxable years beginning after two thousand eight and before
49 two thousand twelve:
50 If the New York taxable income is: The tax is:
51 Not over $16,000 4% of the New York taxable
A. 4011--B 103
1 income
2 Over $16,000 but not over $22,000 $640 plus 4.5% of excess over
3 $16,000
4 Over $22,000 but not over $26,000 $910 plus 5.25% of excess over
5 $22,000
6 Over $26,000 but not over $40,000 $1,120 plus 5.9% of excess over
7 $26,000
8 Over $40,000 but not over $300,000 $1,946 plus 6.85% of excess over
9 $40,000
10 Over $300,000 but not over $500,000 $19,756 plus 7.85% of excess over
11 $300,000
12 Over $500,000 $35,456 plus 8.97% of excess over
13 $500,000
14 [(2)] (3) For taxable years beginning after two thousand five and
15 before two thousand nine and after two thousand [eleven] TWELVE:
16 If the New York taxable income is: The tax is:
17 Not over $16,000 4% of the New York taxable
18 income
19 Over $16,000 but not over $22,000 $640 plus 4.5% of excess over
20 $16,000
21 Over $22,000 but not over $26,000 $910 plus 5.25% of excess over
22 $22,000
23 Over $26,000 but not over $40,000 $1,120 plus 5.9% of excess over
24 $26,000
25 Over $40,000 $1,946 plus 6.85% of excess over
26 $40,000
27 [(3)] (4) For taxable years beginning in two thousand five:
28 If the New York taxable income is: The tax is:
29 Not over $16,000 4% of the New York taxable
30 income
31 Over $16,000 but not over $22,000 $640 plus 4.5% of excess over
32 $16,000
33 Over $22,000 but not over $26,000 $910 plus 5.25% of excess over
34 $22,000
35 Over $26,000 but not over $40,000 $1,120 plus 5.9% of excess over
36 $26,000
37 Over $40,000 but not over $150,000 $1,946 plus 6.85% of excess over
38 $40,000
39 Over $150,000 but not over $500,000 $9,481 plus 7.25% of excess over
40 $150,000
41 Over $500,000 $34,856 plus 7.7% of excess over
42 $500,000
43 [(4)] (5) For taxable years beginning in two thousand four:
44 If the New York taxable income is: The tax is:
45 Not over $16,000 4% of the New York taxable
46 income
47 Over $16,000 but not over $22,000 $640 plus 4.5% of excess over
48 $16,000
49 Over $22,000 but not over $26,000 $910 plus 5.25% of excess over
A. 4011--B 104
1 $22,000
2 Over $26,000 but not over $40,000 $1,120 plus 5.9% of excess over
3 $26,000
4 Over $40,000 but not over $150,000 $1,946 plus 6.85% of excess over
5 $40,000
6 Over $150,000 but not over $500,000 $9,481 plus 7.375% of excess over
7 $150,000
8 Over $500,000 $35,294 plus 7.7% of excess over
9 $500,000
10 [(5)] (6) For taxable years beginning in two thousand three:
11 If the New York taxable income is: The tax is:
12 Not over $16,000 4% of the New York taxable
13 income
14 Over $16,000 but not over $22,000 $640 plus 4.5% of excess over
15 $16,000
16 Over $22,000 but not over $26,000 $910 plus 5.25% of excess over
17 $22,000
18 Over $26,000 but not over $40,000 $1,120 plus 5.9% of excess over
19 $26,000
20 Over $40,000 but not over $150,000 $1,946 plus 6.85% of excess over
21 $40,000
22 Over $150,000 but not over $500,000 $9,481 plus 7.5% of excess over
23 $150,000
24 Over $500,000 $35,731 plus 7.7% of excess over
25 $500,000
26 [(6)] (7) For taxable years beginning after nineteen hundred ninety-
27 six and before two thousand three:
28 If the New York taxable income is: The tax is:
29 Not over $16,000 4% of the New York taxable
30 income
31 Over $16,000 but not over $22,000 $640 plus 4.5% of excess over
32 $16,000
33 Over $22,000 but not over $26,000 $910 plus 5.25% of excess over
34 $22,000
35 Over $26,000 but not over $40,000 $1,120 plus 5.9% of excess over
36 $26,000
37 Over $40,000 $1,946 plus 6.85% of excess over
38 $40,000
39 [(7)] (8) For taxable years beginning in nineteen hundred ninety-six:
40 If the New York taxable income is: The tax is:
41 Not over $11,000 4% of the New York taxable
42 income
43 Over $11,000 but not over $16,000 $440 plus 5% of excess over
44 $11,000
45 Over $16,000 but not over $22,000 $690 plus 6% of excess over
46 $16,000
47 Over $22,000 $1,050 plus 7% of excess over
48 $22,000
49 [(8)] (9) For taxable years beginning in nineteen hundred ninety-five:
A. 4011--B 105
1 If the New York taxable income is: The tax is:
2 Not over $13,000 4.55% of the New York taxable
3 income
4 Over $13,000 but not over $19,000 $592 plus 5.55% of excess over
5 $13,000
6 Over $19,000 but not over $25,000 $925 plus 6.55% of excess over
7 $19,000
8 Over $25,000 $1,318 plus 7.5% of excess over
9 $25,000
10 [(9)] (10) For taxable years beginning after nineteen hundred eighty-
11 nine and before nineteen hundred ninety-five:
12 If the New York taxable income is: The tax is:
13 Not over $11,000 4% of the New York taxable
14 income
15 Over $11,000 but not over $16,000 $440 plus 5% of excess over
16 $11,000
17 Over $16,000 but not over $22,000 $690 plus 6% of excess over
18 $16,000
19 Over $22,000 but not over $26,000 $1,050 plus 7% of excess over
20 $22,000
21 Over $26,000 $1,330 plus 7.875% of excess over
22 $26,000
23 (b) Resident heads of households. There is hereby imposed for each
24 taxable year on the New York taxable income of every resident head of a
25 household a tax determined in accordance with the following tables:
26 (1) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND ELEVEN AND BEFORE
27 TWO THOUSAND THIRTEEN:
28 IF THE NEW YORK TAXABLE INCOME IS: THE TAX IS:
29 NOT OVER $11,000 4% OF THE NEW YORK TAXABLE
30 INCOME
31 OVER $11,000 BUT NOT OVER $15,000 $440 PLUS 4.5% OF EXCESS OVER
32 $11,000
33 OVER $15,000 BUT NOT OVER $17,000 $620 PLUS 5.25% OF EXCESS OVER
34 $15,000
35 OVER $17,000 BUT NOT OVER $30,000 $725 PLUS 5.9% OF EXCESS OVER
36 $17,000
37 OVER $30,000 BUT NOT OVER $1,000,000 $1,492 PLUS 6.85% OF EXCESS OVER
38 $30,000
39 OVER $1,000,000 $67,937 PLUS 8.97% OF EXCESS OVER
40 $1,000,000
41 (2) For taxable years beginning after two thousand eight and before
42 two thousand twelve:
43 If the New York taxable income is: The tax is:
44 Not over $11,000 4% of the New York taxable
45 income
46 Over $11,000 but not over $15,000 $440 plus 4.5% of excess over
47 $11,000
48 Over $15,000 but not over $17,000 $620 plus 5.25% of excess over
49 $15,000
50 Over $17,000 but not over $30,000 $725 plus 5.9% of excess over
A. 4011--B 106
1 $17,000
2 Over $30,000 but not over $250,000 $1,492 plus 6.85% of excess over
3 $30,000
4 Over $250,000 but not over $500,000 $16,562 plus 7.85% of excess over
5 $250,000
6 Over $500,000 $36,187 plus 8.97% of excess over
7 $500,000
8 [(2)] (3) For taxable years beginning after two thousand five and
9 before two thousand nine and after two thousand [eleven] TWELVE:
10 If the New York taxable income is: The tax is:
11 Not over $11,000 4% of the New York taxable
12 income
13 Over $11,000 but not over $15,000 $440 plus 4.5% of excess over
14 $11,000
15 Over $15,000 but not over $17,000 $620 plus 5.25% of excess over
16 $15,000
17 Over $17,000 but not over $30,000 $725 plus 5.9% of excess over
18 $17,000
19 Over $30,000 $1,492 plus 6.85% of excess over
20 $30,000
21 [(3)] (4) For taxable years beginning in two thousand five:
22 If the New York taxable income is: The tax is:
23 Not over $11,000 4% of the New York taxable
24 income
25 Over $11,000 but not over $15,000 $440 plus 4.5% of excess over
26 $11,000
27 Over $15,000 but not over $17,000 $620 plus 5.25% of excess over
28 $15,000
29 Over $17,000 but not over $30,000 $725 plus 5.9% of excess over
30 $17,000
31 Over $30,000 but not over $125,000 $1,492 plus 6.85% of excess over
32 $30,000
33 Over $125,000 but not over $500,000 $8,000 plus 7.25% of excess over
34 $125,000
35 Over $500,000 $35,187 plus 7.7% of excess over
36 $500,000
37 [(4)] (5) For taxable years beginning in two thousand four:
38 If the New York taxable income is: The tax is:
39 Not over $11,000 4% of the New York taxable
40 income
41 Over $11,000 but not over $15,000 $440 plus 4.5% of excess over
42 $11,000
43 Over $15,000 but not over $17,000 $620 plus 5.25% of excess over
44 $15,000
45 Over $17,000 but not over $30,000 $725 plus 5.9% of excess over
46 $17,000
47 Over $30,000 but not over $125,000 $1,492 plus 6.85% of excess over
48 $30,000
49 Over $125,000 but not over $500,000 $8,000 plus 7.375% of excess over
A. 4011--B 107
1 $125,000
2 Over $500,000 $35,656 plus 7.7% of excess over
3 $500,000
4 [(5)] (6) For taxable years beginning in two thousand three:
5 If the New York taxable income is: The tax is:
6 Not over $11,000 4% of the New York taxable
7 income
8 Over $11,000 but not over $15,000 $440 plus 4.5% of excess over
9 $11,000
10 Over $15,000 but not over $17,000 $620 plus 5.25% of excess over
11 $15,000
12 Over $17,000 but not over $30,000 $725 plus 5.9% of excess over
13 $17,000
14 Over $30,000 but not over $125,000 $1,492 plus 6.85% of excess over
15 $30,000
16 Over $125,000 but not over $500,000 $8,000 plus 7.5% of excess over
17 $125,000
18 Over $500,000 $36,125 plus 7.7% of excess over
19 $500,000
20 [(6)] (7) For taxable years beginning after nineteen hundred ninety-
21 six and before two thousand three:
22 If the New York taxable income is: The tax is:
23 Not over $11,000 4% of the New York taxable
24 income
25 Over $11,000 but not over $15,000 $440 plus 4.5% of excess over
26 $11,000
27 Over $15,000 but not over $17,000 $620 plus 5.25% of excess over
28 $15,000
29 Over $17,000 but not over $30,000 $725 plus 5.9% of excess over
30 $17,000
31 Over $30,000 $1,492 plus 6.85% of excess over
32 $30,000
33 [(7)] (8) For taxable years beginning in nineteen hundred ninety-six:
34 If the New York taxable income is: The tax is:
35 Not over $7,500 4% of the New York taxable
36 income
37 Over $7,500 but not over $11,000 $300 plus 5% of excess over
38 $7,500
39 Over $11,000 but not over $15,000 $475 plus 6% of excess over
40 $11,000
41 Over $15,000 $ 715 plus 7% of excess over
42 $15,000
43 [(8)] (9) For taxable years beginning in nineteen hundred ninety-five:
44 If the New York taxable income is: The tax is:
45 Not over $9,000 4.55% of the New York taxable
46 income
47 Over $9,000 but not over $14,000 $410 plus 5.55% of excess over
A. 4011--B 108
1 $9,000
2 Over $14,000 but not over $19,000 $687 plus 6.55% of excess over
3 $14,000
4 Over $19,000 $1,015 plus 7.5% of excess over
5 $19,000
6 [(9)] (10) For taxable years beginning after nineteen hundred eighty-
7 nine and before nineteen hundred ninety-five:
8 If the New York taxable income is: The tax is:
9 Not over $7,500 4% of the New York taxable
10 income
11 Over $7,500 but not over $11,000 $300 plus 5% of excess over
12 $7,500
13 Over $11,000 but not over $15,000 $475 plus 6% of excess over
14 $11,000
15 Over $15,000 but not over $17,000 $715 plus 7% of excess over
16 $15,000
17 Over $17,000 $855 plus 7.875% of excess over
18 $17,000
19 (c) Resident unmarried individuals, resident married individuals
20 filing separate returns and resident estates and trusts. There is hereby
21 imposed for each taxable year on the New York taxable income of every
22 resident individual who is not a married individual who makes a single
23 return jointly with his spouse under subsection (b) of section six
24 hundred fifty-one or a resident head of a household or a resident
25 surviving spouse, and on the New York taxable income of every resident
26 estate and trust a tax determined in accordance with the following
27 tables:
28 (1) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND ELEVEN AND BEFORE
29 TWO THOUSAND THIRTEEN:
30 IF THE NEW YORK TAXABLE INCOME IS: THE TAX IS:
31 NOT OVER $8,000 4% OF THE NEW YORK TAXABLE
32 INCOME
33 OVER $8,000 BUT NOT OVER $11,000 $320 PLUS 4.5% OF EXCESS OVER
34 $8,000
35 OVER $11,000 BUT NOT OVER $13,000 $455 PLUS 5.25% OF EXCESS OVER
36 $11,000
37 OVER $13,000 BUT NOT OVER $20,000 $560 PLUS 5.9% OF EXCESS OVER
38 $13,000
39 OVER $20,000 BUT NOT OVER $1,000,000 $973 PLUS 6.85% OF EXCESS OVER
40 $20,000
41 OVER $1,000,000 $68,103 PLUS 8.97% OF EXCESS OVER
42 $1,000,000
43 (2) For taxable years beginning after two thousand eight and before
44 two thousand twelve:
45 If the New York taxable income is: The tax is:
46 Not over $8,000 4% of the New York taxable
47 income
48 Over $8,000 but not over $11,000 $320 plus 4.5% of excess over
49 $8,000
50 Over $11,000 but not over $13,000 $455 plus 5.25% of excess over
A. 4011--B 109
1 $11,000
2 Over $13,000 but not over $20,000 $560 plus 5.9% of excess over
3 $13,000
4 Over $20,000 but not over $200,000 $973 plus 6.85% of excess over
5 $20,000
6 Over $200,000 but not over $500,000 $13,303 plus 7.85% of excess over
7 $200,000
8 Over $500,000 $36,853 plus 8.97% of excess over
9 $500,000
10 [(2)] (3) For taxable years beginning after two thousand five and
11 before two thousand nine and after two thousand [eleven] TWELVE:
12 If the New York taxable income is: The tax is:
13 Not over $8,000 4% of the New York taxable
14 income
15 Over $8,000 but not over $11,000 $320 plus 4.5% of excess over
16 $8,000
17 Over $11,000 but not over $13,000 $455 plus 5.25% of excess over
18 $11,000
19 Over $13,000 but not over $20,000 $560 plus 5.9% of excess over
20 $13,000
21 Over $20,000 $973 plus 6.85% of excess over
22 $20,000
23 [(3)] (4) For taxable years beginning in two thousand five:
24 If the New York taxable income is: The tax is:
25 Not over $8,000 4% of the New York taxable
26 income
27 Over $8,000 but not over $11,000 $320 plus 4.5% of excess over
28 $8,000
29 Over $11,000 but not over $13,000 $455 plus 5.25% of excess over
30 $11,000
31 Over $13,000 but not over $20,000 $560 plus 5.9% of excess over
32 $13,000
33 Over $20,000 but not over $100,000 $973 plus 6.85% of excess over
34 $20,000
35 Over $100,000 but not over $500,000 $6,453 plus 7.25% of excess over
36 $100,000
37 Over $500,000 $35,453 plus 7.7% of excess over
38 $500,000
39 [(4)] (5) For taxable years beginning in two thousand four:
40 If the New York taxable income is: The tax is:
41 Not over $8,000 4% of the New York taxable
42 income
43 Over $8,000 but not over $11,000 $320 plus 4.5% of excess over
44 $8,000
45 Over $11,000 but not over $13,000 $455 plus 5.25% of excess over
46 $11,000
47 Over $13,000 but not over $20,000 $560 plus 5.9% of excess over
48 $13,000
49 Over $20,000 but not over $100,000 $973 plus 6.85% of excess over
A. 4011--B 110
1 $20,000
2 Over $100,000 but not over $500,000 $6,453 plus 7.375% of excess over
3 $100,000
4 Over $500,000 $35,953 plus 7.7% of excess over
5 $500,000
6 [(5)] (6) For taxable years beginning in two thousand three:
7 If the New York taxable income is: The tax is:
8 Not over $8,000 4% of the New York taxable
9 income
10 Over $8,000 but not over $11,000 $320 plus 4.5% of excess over
11 $8,000
12 Over $11,000 but not over $13,000 $455 plus 5.25% of excess over
13 $11,000
14 Over $13,000 but not over $20,000 $560 plus 5.9% of excess over
15 $13,000
16 Over $20,000 but not over $100,000 $973 plus 6.85% of excess over
17 $20,000
18 Over $100,000 but not over $500,000 $6,453 plus 7.5% of excess over
19 $100,000
20 Over $500,000 $36,453 plus 7.7% of excess over
21 $500,000
22 [(6)] (7) For taxable years beginning after nineteen hundred ninety-
23 six and before two thousand three:
24 If the New York taxable income is: The tax is:
25 Not over $8,000 4% of the New York taxable
26 income
27 Over $8,000 but not over $11,000 $320 plus 4.5% of excess over
28 $8,000
29 Over $11,000 but not over $13,000 $455 plus 5.25% of excess over
30 $11,000
31 Over $13,000 but not over $20,000 $560 plus 5.9% of excess over
32 $13,000
33 Over $20,000 $973 plus 6.85% of excess over
34 $20,000
35 [(7)] (8) For taxable years beginning in nineteen hundred ninety-six:
36 If the New York taxable income is: The tax is:
37 Not over $5,500 4% of the New York taxable
38 income
39 Over $5,500 but not over $8,000 $220 plus 5% of excess over
40 $5,500
41 Over $8,000 but not over $11,000 $345 plus 6% of excess over
42 $8,000
43 Over $11,000 $525 plus 7% of excess over
44 $11,000
45 [(8)] (9) For taxable years beginning in nineteen hundred ninety-five:
46 If the New York taxable income is: The tax is:
47 Not over $6,500 4.55% of the New York taxable
A. 4011--B 111
1 income
2 Over $6,500 but not over $9,500 $296 plus 5.55% of excess over
3 $6,500
4 Over $9,500 but not over $12,500 $462 plus 6.55% of excess over
5 $9,500
6 Over $12,500 $659 plus 7.5% of excess over
7 $12,500
8 [(9)] (10) For taxable years beginning after nineteen hundred eighty-
9 nine and before nineteen hundred ninety-five:
10 If the New York taxable
11 income is: The tax is:
12 Not over $5,500 4% of the New York taxable
13 income
14 Over $5,500 but not over $8,000 $220 plus 5% of excess over
15 $5,500
16 Over $8,000 but not over $11,000 $345 plus 6% of excess over
17 $8,000
18 Over $11,000 but not over $13,000 $525 plus 7% of excess over
19 $11,000
20 Over $13,000 $665 plus 7.875% of excess over
21 $13,000
22 S 2. Subparagraph (B) of paragraph 3 of subsection (d) of section 601
23 of the tax law, as amended by section 3 of part Z-1 of chapter 57 of the
24 laws of 2009, is amended to read as follows:
25 (B) For such taxpayers with adjusted gross income over five hundred
26 thousand dollars, for taxable years beginning after two thousand eight
27 and before two thousand twelve, the fraction is computed as follows: the
28 numerator is the lesser of fifty thousand dollars or the excess of New
29 York adjusted gross income for the taxable year over five hundred thou-
30 sand dollars and the denominator is fifty thousand dollars. FOR TAXABLE
31 YEARS BEGINNING AFTER TWO THOUSAND ELEVEN AND BEFORE TWO THOUSAND THIR-
32 TEEN, THE FRACTION IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE LESSER
33 OF FIFTY THOUSAND DOLLARS OR THE EXCESS OF NEW YORK ADJUSTED GROSS
34 INCOME FOR THE TAXABLE YEAR OVER ONE MILLION DOLLARS AND THE DENOMINATOR
35 IS FIFTY THOUSAND DOLLARS. Provided, however, that the total tax prior
36 to the application of any tax credits shall not exceed the highest rate
37 of tax set forth in the tax table in subsection (a) of this section
38 multiplied by the taxpayer's taxable income.
39 S 3. Clause (ii) of subparagraph (B) of paragraph 3 of subsection (c)
40 of section 685 of the tax law is amended by adding a new undesignated
41 paragraph to read as follows:
42 FURTHER PROVIDED THAT THE TAX SHOWN ON SUCH RETURN FOR TAXABLE YEAR
43 BEGINNING IN TWO THOUSAND ELEVEN SHALL BE CALCULATED AS IF SUCH YEAR
44 BEGAN IN TWO THOUSAND TWELVE.
45 S 4. Notwithstanding any provision of law to the contrary, the method
46 of determining the amount to be deducted and withheld from wages on
47 account of taxes imposed by or pursuant to the authority of article 22
48 of the tax law in connection with the implementation of the provisions
49 of this act shall be prescribed by regulations of the commissioner of
50 taxation and finance with due consideration to the effect such withhold-
51 ing tables and methods would have on the receipt and amount of revenue.
52 The commissioner of taxation and finance shall adjust such withholding
53 tables and methods in regard to taxable years beginning in 2012 and
A. 4011--B 112
1 after in such manner as to result, so far as practicable, in withholding
2 from an employee's wages an amount substantially equivalent to the tax
3 reasonably estimated to be due for such taxable years as a result of the
4 provisions of this act. Provided, however, for tax year 2012 the with-
5 holding tables shall reflect as accurately as practicable the full
6 amount of tax year 2012 liability so that such amount is withheld by
7 December 31, 2012. Any such regulations to implement a change in with-
8 holding tables and methods for tax year 2012 shall be adopted and effec-
9 tive as soon as practicable and the commissioner of taxation and finance
10 may adopt such regulations on an emergency basis notwithstanding
11 anything to the contrary in section 202 of the state administrative
12 procedure act. In carrying out his or her duties and responsibilities
13 under this section, the commissioner of taxation and finance may accom-
14 pany such a rule making procedure with a similar procedure with respect
15 to the taxes required to be deducted and withheld by local laws imposing
16 taxes pursuant to the authority of articles 30, 30-A and 30-B of the tax
17 law, the provisions of any other law in relation to such a procedure to
18 the contrary notwithstanding.
19 S 5. The commissioner of taxation and finance shall take steps to
20 publicize the necessary adjustments to estimated tax and, to the extent
21 reasonably possible, to inform the taxpayer of the tax liability changes
22 made by this act.
23 S 6. This act shall take effect immediately and shall apply to taxable
24 years beginning on or after January 1, 2012.
25 S 2. Severability clause. If any clause, sentence, paragraph, subdivi-
26 sion, section or part of this act shall be adjudged by any court of
27 competent jurisdiction to be invalid, such judgment shall not affect,
28 impair, or invalidate the remainder thereof, but shall be confined in
29 its operation to the clause, sentence, paragraph, subdivision, section
30 or part thereof directly involved in the controversy in which such judg-
31 ment shall have been rendered. It is hereby declared to be the intent of
32 the legislature that this act would have been enacted even if such
33 invalid provisions had not been included herein.
34 S 3. This act shall take effect immediately provided, however, that
35 the applicable effective date of Parts A through T of this act shall be
36 as specifically set forth in the last section of such Parts.
