S T A T E O F N E W Y O R K ________________________________________________________________________ 7097 2009-2010 Regular Sessions I N A S S E M B L Y March 20, 2009 ___________ Introduced by M. of A. GALEF, CLARK, ORTIZ, KOON, MILLER, BACALLES -- Multi-Sponsored by -- M. of A. MAGEE -- read once and referred to the Committee on Education AN ACT in relation to enacting the school district property tax relief act; to amend the education law, in relation to adopting a school income tax surcharge (Part A); and to amend the real property tax law and the tax law, in relation to providing for the restriction of the school district real property tax on residential property and to authorize the imposition by school districts of a surcharge on the state income tax of district residents to finance public education (Part B) THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: 1 Section 1. This act shall be known and may be cited as "the school 2 district property tax relief act". 3 S 2. This act enacts into law major components of legislation which 4 are necessary to implement the school district property tax relief act. 5 Each component is wholly contained within a Part identified as Parts A 6 and B. The effective date for each particular provision contained with- 7 in such Part is set forth in the last section of such Part. Any 8 provision in any section contained within a Part, including the effec- 9 tive date of the Part, which makes reference to a section "of this act", 10 when used in connection with that particular component, shall be deemed 11 to mean and refer to the corresponding section of the Part in which it 12 is found. Section four of this act sets forth the general effective 13 date of this act. 14 PART A 15 Section 1. Legislative findings and declarations. The legislature 16 finds that the property tax has long been relied upon by school EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD01714-01-9 A. 7097 2 1 districts as a principal method to finance public education. The proper- 2 ty tax, however, is regressive and fails to account for a taxpayer's 3 ability to pay, and falls hardest on those with reduced or fixed 4 incomes. Therefore, to relieve the mounting burden on residential prop- 5 erty taxpayers and to provide local school districts with greater flexi- 6 bility to finance public education, while assuring the continued deliv- 7 ery of quality educational services, the legislature finds that school 8 districts shall be authorized, at local option, to impose a school 9 district income tax surcharge on the state personal income tax of 10 district residents to replace a portion of the school district property 11 tax. 12 S 2. The education law is amended by adding a new section 1501-d to 13 read as follows: 14 S 1501-D. ADOPTION OF SCHOOL DISTRICT INCOME TAX SURCHARGE. 1. THE 15 BOARD OF TRUSTEES OR BOARD OF EDUCATION OF ANY SCHOOL DISTRICT OTHER 16 THAN A SCHOOL DISTRICT OF A CITY SUBJECT TO THE PROVISIONS OF ARTICLE 17 FIFTY-TWO OF THIS CHAPTER MAY ADOPT, BY RESOLUTION, A SCHOOL DISTRICT 18 INCOME TAX SURCHARGE IMPOSED PURSUANT TO THE AUTHORITY OF ARTICLE THIR- 19 TY-C OF THE TAX LAW, TO FINANCE PUBLIC EDUCATION, IN ACCORDANCE WITH A 20 PROPOSITION SUBMITTED TO AND APPROVED BY ELECTORS OF THE SCHOOL DISTRICT 21 AS AUTHORIZED PURSUANT TO THIS SECTION. 22 2. UPON A MAJORITY VOTE OF THE BOARD OF TRUSTEES OR BOARD OF EDUCATION 23 OF A SCHOOL DISTRICT OR UPON THE FILING OF A PETITION WITH THE CHIEF 24 EXECUTIVE OFFICER OF THE SCHOOL DISTRICT, A STUDY COMMISSION SHALL BE 25 CREATED. A PETITION TO CREATE A STUDY COMMISSION WITHIN A SCHOOL 26 DISTRICT SHALL BE SUFFICIENT IF IT IS SIGNED AND ACKNOWLEDGED BY QUALI- 27 FIED ELECTORS OF THE SCHOOL DISTRICT, IN NUMBER EQUAL TO FIVE PER CENTUM 28 OF THE TOTAL NUMBER OF ELECTORS WITHIN THE SCHOOL DISTRICT QUALIFIED TO 29 VOTE IN THE GENERAL ELECTION IMMEDIATELY PRECEDING FILING OF THE PETI- 30 TION. 31 3.(A) THE STUDY COMMISSION FORMED PURSUANT TO THIS SECTION SHALL PRES- 32 ENT A WRITTEN REPORT TO THE BOARD OF TRUSTEES OR THE BOARD OF EDUCATION 33 SETTING FORTH EITHER A SCHOOL DISTRICT INCOME TAX SURCHARGE PLAN OR A 34 WRITTEN RECOMMENDATION THAT NO PLAN BE ADOPTED. SUCH RECOMMENDATION 35 SHALL INCLUDE THE REASONS FOR REJECTING A SURCHARGE PLAN. THE STUDY 36 COMMISSION SHALL FILE THE REPORT WITH THE BOARD OF TRUSTEES OR THE BOARD 37 OF EDUCATION ON OR BEFORE ONE YEAR FROM THE DATE OF PRESENTATION OF THE 38 PETITION TO THE CHIEF EXECUTIVE OFFICER OF THE SCHOOL DISTRICT OR VOTE 39 OF THE BOARD OF TRUSTEES OR THE BOARD OF EDUCATION DIRECTING THE FORMA- 40 TION OF THE STUDY COMMISSION. IF THE COMMISSION FAILS TO MAKE A RECOM- 41 MENDATION WITHIN THE ALLOTTED TIME, THE BOARD SHALL EXTEND THE COMMIS- 42 SION OR ASSUME ITS RESPONSIBILITIES. 43 (B) THE COMMISSION SHALL BE COMPOSED OF AT LEAST NINE MEMBERS 44 APPOINTED BY THE BOARD OF TRUSTEES OR THE BOARD OF EDUCATION. MEMBER- 45 SHIP SHALL BE COMPRISED OF REPRESENTATIVES OF PROPERTY OWNERS RESIDING 46 IN THE SCHOOL DISTRICT, COMMERCIAL PROPERTY OWNERS WHOSE PRINCIPAL PLACE 47 OF BUSINESS IS LOCATED WITHIN THE SCHOOL DISTRICT, AND THE BOARD OF 48 TRUSTEES OR BOARD OF EDUCATION, BUT SHALL NOT INCLUDE MORE THAN ONE 49 TRUSTEE OF A BOARD OF EDUCATION OR MEMBER OF A BOARD OF EDUCATION. 50 (C) MEMBERS OF A STUDY COMMISSION ESTABLISHED PURSUANT TO THIS SECTION 51 SHALL FILE OATHS OF OFFICE WITH THE APPOINTING AUTHORITY. THEIR TERMS 52 SHALL EXTEND TO AND EXPIRE UPON SUBMISSION OF THE REPORT TO THE BOARD OF 53 TRUSTEES OR THE BOARD OF EDUCATION AS PROVIDED IN THIS SECTION. MEMBERS 54 SHALL RECEIVE NO COMPENSATION FOR MEMBERSHIP ON THE STUDY COMMISSION. 55 COSTS AND EXPENSES OF THE STUDY COMMISSION IF APPROVED BY THE BOARD 56 SHALL BE PAID BY THE SCHOOL DISTRICT. SUCH COMMISSION SHALL ORGANIZE AND A. 7097 3 1 FORM SUCH SUBCOMMITTEES, MAY ESTABLISH MEETINGS AND HOLD INFORMATIONAL 2 HEARINGS AS IT DEEMS DESIRABLE AND SHALL CONSULT WITH THE DESIGNEES OF 3 THE DIRECTOR OF THE OFFICE OF REAL PROPERTY TAX SERVICES AND THE COMMIS- 4 SIONER OF TAXATION AND FINANCE. 5 (D) A STUDY COMMISSION SHALL HOLD AT LEAST ONE PUBLIC HEARING IN THE 6 SCHOOL DISTRICT AT LEAST SIXTY DAYS PRIOR TO SUBMISSION OF ITS REPORT TO 7 THE BOARD OF TRUSTEES OR THE BOARD OF EDUCATION, AT WHICH THE PUBLIC 8 SHALL HAVE AN OPPORTUNITY TO BE HEARD. THE STUDY COMMISSION SHALL 9 PUBLISH NOTICE OF THE PUBLIC HEARING ON ANY OFFICIAL WEBSITE AND IN AT 10 LEAST ONE NEWSPAPER OF GENERAL CIRCULATION WITHIN THE SCHOOL DISTRICT AT 11 LEAST SEVEN AND NO GREATER THAN TEN DAYS PRIOR TO THE DATE OF SUCH 12 PUBLIC HEARING. SUCH NOTICE SHALL SPECIFY THE DAY, HOUR AND PLACE SUCH 13 HEARING SHALL BE HELD. 14 4. A STUDY COMMISSION RECOMMENDING A SCHOOL DISTRICT INCOME TAX 15 SURCHARGE SHALL ADOPT A PLAN WHICH DESCRIBES THE RATE OF THE SURCHARGE 16 TO BE IMPOSED, THE MANNER IN WHICH REAL PROPERTY TAXES FOR SCHOOL 17 DISTRICT PURPOSES WILL BE RESTRICTED IN ACCORDANCE WITH SECTION THIRTEEN 18 HUNDRED SEVEN OF THE REAL PROPERTY TAX LAW, AND ANY SUCH OTHER MATTERS 19 AS MAY BE DESIRABLE OR NECESSARY TO DESCRIBE THE INCOME TAX SURCHARGE TO 20 BE IMPOSED OR ITS ADMINISTRATION. SUCH COMMISSION PLAN SHALL DESCRIBE 21 RESTRICTIONS, IF ANY, UPON THE AUTHORITY OF A SCHOOL DISTRICT, ACTING 22 THROUGH ITS BOARD OF TRUSTEES OR BOARD OF EDUCATION, TO MODIFY THE FIRST 23 YEAR RATE OF THE INCOME TAX SURCHARGE IN SUBSEQUENT YEARS. THE 24 RESTRICTIONS MAY INCLUDE, BUT ARE NOT LIMITED TO, THE FOLLOWING: 25 (A) REQUIRING VOTER APPROVAL FOR ANY CHANGE IN THE SURCHARGE RATE; 26 (B) LIMITING THE AMOUNT OF A RATE CHANGE IN ONE YEAR OR OVER A NUMBER 27 OF YEARS; 28 (C) REQUIRING THE COMMISSION TO BE RECONVENED TO STUDY AND ADOPT A 29 RATE CHANGE; 30 (D) REQUIRING A SUPERMAJORITY OF THE BOARD OF TRUSTEES OR THE BOARD OF 31 EDUCATION TO APPROVE A RATE CHANGE; OR 32 (E) SOME COMBINATION OF THE ABOVE. 33 5. (A) UPON THE STUDY COMMISSION'S PRESENTATION OF A PLAN, OR RECOM- 34 MENDATION NOT TO ADOPT A PLAN, THE BOARD OF TRUSTEES OR THE BOARD OF 35 EDUCATION SHALL DECIDE WHETHER TO ACCEPT OR REJECT THE PLAN OR RECOMMEN- 36 DATION OF THE STUDY COMMISSION. THE BOARD OF TRUSTEES OR THE BOARD OF 37 EDUCATION SHALL TAKE SUCH ACTION ON THE STUDY COMMISSION'S RECOMMENDA- 38 TION WITHIN ONE HUNDRED TWENTY DAYS OF ITS PRESENTMENT TO THE BOARD OF 39 TRUSTEES OR THE BOARD OF EDUCATION. THE BOARD OF TRUSTEES OR THE BOARD 40 OF EDUCATION SHALL HOLD AT LEAST ONE PUBLIC HEARING IN THE SCHOOL 41 DISTRICT AT LEAST THIRTY DAYS PRIOR TO TAKING ACTION ON THE STUDY 42 COMMISSION'S RECOMMENDATION, AT WHICH THE PUBLIC SHALL HAVE AN OPPORTU- 43 NITY TO BE HEARD. THE BOARD OF TRUSTEES OR THE BOARD OF EDUCATION SHALL 44 PUBLISH NOTICE OF THE PUBLIC HEARING IN AT LEAST ONE NEWSPAPER OF GENER- 45 AL CIRCULATION WITHIN THE SCHOOL DISTRICT, AT LEAST SEVEN AND NO GREATER 46 THAN TEN DAYS, PRIOR TO THE DATE OF SUCH PUBLIC HEARING. SUCH NOTICE 47 SHALL SPECIFY THE DAY, HOUR AND PLACE SUCH HEARING SHALL BE HELD. IF THE 48 PLAN IS ACCEPTED BY A MAJORITY OF THE BOARD OF TRUSTEES OR THE BOARD OF 49 EDUCATION, A PROPOSITION SHALL BE PREPARED BY THE BOARD OF TRUSTEES OR 50 THE BOARD OF EDUCATION AND SUBMITTED TO THE VOTERS AT THE NEXT REGULAR 51 SCHOOL ELECTION. 52 (B) UPON ACCEPTANCE OF THE PLAN AND FORMULATION OF THE PROPOSITION THE 53 BOARD OF TRUSTEES OR THE BOARD OF EDUCATION SHALL PUBLISH THE FULL TEXT 54 OF THE PROPOSITION AND THE SCHOOL DISTRICT TAX SURCHARGE PLAN IN AT 55 LEAST ONE NEWSPAPER OF GENERAL CIRCULATION WITHIN THE SCHOOL DISTRICT AT 56 LEAST THIRTY DAYS PRIOR TO THE DATE OF ELECTION AT WHICH THE SCHOOL A. 7097 4 1 DISTRICT VOTERS SHALL VOTE ON THE PLAN AND PROPOSITION. COPIES OF THE 2 PLAN AND PROPOSITION SHALL BE MADE AVAILABLE TO THE PUBLIC AT THE 3 OFFICES OF THE SCHOOL DISTRICT AT ANY TIME DURING REGULAR BUSINESS HOURS 4 AND ON ANY OFFICIAL WEBSITE MAINTAINED BY THE SCHOOL DISTRICT. 5 6. (A) A PROPOSITION FOR THE IMPOSITION OF A SCHOOL DISTRICT INCOME 6 TAX SURCHARGE SHALL STATE "SHALL THE (NAME OF SCHOOL DISTRICT) BE 7 EMPOWERED TO ADOPT A SCHOOL DISTRICT INCOME TAX SURCHARGE PURSUANT TO 8 THE SCHOOL DISTRICT INCOME TAX SURCHARGE PLAN?" THE PROPOSITION SHALL 9 ALSO CONTAIN AN ABSTRACT OF SUCH PLAN WHICH SHALL (I) IDENTIFY IN FULL 10 THE OPTION RESTRICTING THE SCHOOL DISTRICT LEVY OF REAL PROPERTY TAX 11 CHOSEN PURSUANT TO SECTION THIRTEEN HUNDRED SEVEN OF THE REAL PROPERTY 12 TAX LAW, AND (II) CONCISELY STATE IN PLAIN LANGUAGE THE PURPOSE AND 13 EFFECT OF ADOPTING SUCH PLAN INCLUDING THE GENERAL EFFECT ON RESIDENTIAL 14 REAL PROPERTY TAXPAYERS, THE INCOME TAX SURCHARGE RATE EXPECTED TO BE 15 IMPOSED, AND RESTRICTIONS, IF ANY, APPLICABLE TO CHANGES IN SUCH RATE. 16 (B) UPON APPROVAL OF A MAJORITY OF THE QUALIFIED ELECTORS WITHIN A 17 SCHOOL DISTRICT, THE PROPOSITION SHALL BE APPROVED. UPON SUCH APPROVAL A 18 CERTIFICATE OF SUCH ELECTION SHALL BE FILED WITH THE CLERK OF THE SCHOOL 19 DISTRICT NAMED IN THE PROPOSITION, THE COMMISSIONER AND THE COMMISSIONER 20 OF TAXATION AND FINANCE. 21 7. THE LEVY OF REAL PROPERTY TAXES BY ANY SCHOOL DISTRICT TO FINANCE 22 EDUCATION WHICH ADOPTS A SCHOOL DISTRICT INCOME TAX SURCHARGE SHALL BE 23 SUBJECT TO THE PROVISIONS OF SECTION THIRTEEN HUNDRED SEVEN OF THE REAL 24 PROPERTY TAX LAW. 25 8. IF ADOPTED BY THE BOARD OF TRUSTEES OR THE BOARD OF EDUCATION ON OR 26 BEFORE MARCH THIRTY-FIRST IN ANY YEAR, WITH NOTICE TO THE COMMISSIONER 27 OF TAXATION AND FINANCE, AS PROVIDED IN SECTION THIRTEEN HUNDRED SIXTY- 28 ONE OF THE TAX LAW ON OR BEFORE SUCH DATE, SUCH SCHOOL DISTRICT INCOME 29 TAX SURCHARGE PLAN SHALL BECOME EFFECTIVE FROM AND AFTER THE FIRST DAY 30 OF JANUARY NEXT SUCCEEDING ITS ADOPTION. IF ADOPTED AFTER MARCH THIRTY- 31 FIRST IN ANY YEAR, OR WITH NOTICE AFTER SUCH DATE, SUCH LOCAL INCOME TAX 32 SURCHARGE PLAN SHALL BECOME EFFECTIVE FROM AND AFTER ONE YEAR FROM THE 33 DAY OF JANUARY NEXT SUCCEEDING ITS ADOPTION. 34 S 3. This act shall take effect immediately. 35 PART B 36 Section 1. Section 1306 of the real property tax law is amended by 37 adding a new subdivision 6 to read as follows: 38 6. THE LEVY OF TAXES BY ANY SCHOOL DISTRICT WHICH IMPOSES A PERSONAL 39 INCOME TAX PURSUANT TO ARTICLE THIRTY-C OF THE TAX LAW SHALL BE SUBJECT 40 TO THE RESTRICTIONS OF SECTION THIRTEEN HUNDRED SEVEN OF THIS ARTICLE. 41 S 2. The real property tax law is amended by adding a new section 1307 42 to read as follows: 43 S 1307. REDUCTION IN THE LEVY OF REAL PROPERTY TAXES. 1. WHERE A 44 SCHOOL DISTRICT ELECTS TO IMPOSE A SCHOOL DISTRICT INCOME TAX SURCHARGE 45 IN ACCORDANCE WITH ARTICLE THIRTY-C OF THE TAX LAW, THE AMOUNT TO BE 46 RAISED BY LEVY AGAINST RESIDENTIAL REAL PROPERTY IN THE SCHOOL DISTRICT 47 SHALL BE REDUCED BY THE DOLLAR AMOUNT RAISED PURSUANT TO SUCH SURCHARGE 48 FOR THE CALENDAR YEAR IMMEDIATELY PRECEDING THE YEAR OF COMMENCEMENT OF 49 THE SCHOOL FISCAL YEAR. FOR THE PURPOSES OF THIS SECTION THE TERM "RESI- 50 DENTIAL REAL PROPERTY" SHALL BE LIMITED TO PRIMARY RESIDENCES AS DEFINED 51 IN SUBDIVISION THREE OF SECTION FOUR HUNDRED TWENTY-FIVE OF THIS CHAP- 52 TER. 53 2. THE AMOUNT OF REDUCTION FOR EACH PARCEL OF RESIDENTIAL REAL PROPER- 54 TY SHALL BE STATED ON THE SCHOOL TAX BILL. THE SCHOOL TAX BILL ALSO A. 7097 5 1 SHALL SHOW THE AMOUNT OF THE TOTAL LEVY, THE AMOUNT TO BE RAISED BY THE 2 RESIDENTIAL PROPERTY IN THE SCHOOL DISTRICT, THE AMOUNT OF SURCHARGE 3 RAISED REDUCING SUCH PORTION OF THE LEVY AND THE AMOUNT TO BE RAISED BY 4 THE NON-RESIDENTIAL PROPERTY IN THE DISTRICT. COMPARISON TO THE PRECED- 5 ING YEAR SHALL ALSO BE SHOWN IN ADDITION TO SUCH OTHER INFORMATION AS 6 THE COMMISSIONER OF EDUCATION SHALL SPECIFY. PROPERTY OWNERS NOT 7 SUBJECT TO THE INCOME TAX SURCHARGE IMPOSED BY ARTICLE THIRTY-C OF THE 8 TAX LAW SHALL NOT RECEIVE A REDUCTION IN THE REAL PROPERTY TAXES PURSU- 9 ANT TO THIS SECTION. 10 S 3. Subdivision 1 of section 202 of the real property tax law is 11 amended by adding a new paragraph (r) to read as follows: 12 (R) DIRECT THE EXECUTIVE DIRECTOR OF THE OFFICE OF REAL PROPERTY 13 SERVICES TO DEVELOP GUIDELINES AND PROVIDE TECHNICAL ASSISTANCE TO A 14 STUDY COMMISSION OF A SCHOOL DISTRICT FORMED PURSUANT TO SECTION FIFTEEN 15 HUNDRED ONE-D OF THE EDUCATION LAW IN ORDER TO IMPLEMENT THE PROVISIONS 16 OF ARTICLE THIRTY-C OF THE TAX LAW AND SECTION THIRTEEN HUNDRED SEVEN OF 17 THIS CHAPTER. 18 S 4. Paragraph 1 of subdivision (b) of section 9 of the tax law, as 19 amended by chapter 166 of the laws of 1991, is amended to read as 20 follows: 21 (1) Subject to the requirements contained in subdivisions (c) and (d) 22 of this section, the commissioner shall require by regulation that any 23 payment of tax made by a taxpayer who is required, for either of the 24 semi-annual periods ending June thirtieth or December thirty-first, to 25 deduct and withhold an aggregate of thirty-five thousand dollars or more 26 of withholding taxes pursuant to part V of article twenty-two of this 27 chapter, or pursuant to an equivalent provision enacted under the 28 authority of article thirty, thirty-A [or], thirty-B OR THIRTY-C of this 29 chapter[, or article two-E of the general city law,] shall be made, on 30 or before the date prescribed by law, by electronic funds transfer to a 31 bank, banking house or trust company designated by the commissioner. The 32 commissioner shall designate only such banks, banking houses or trust 33 companies as are or shall be designated by the comptroller as deposito- 34 ries pursuant to section one hundred seventy-one-a of this chapter, as 35 added by chapter sixty-nine of the laws of nineteen hundred seventy- 36 eight. Notwithstanding any provision of law to the contrary, any such 37 payment shall be deemed to be made on the date the payment is received 38 by the designated depository of the department; provided, however, that 39 at the election of a taxpayer subject to the provisions of this subdivi- 40 sion, mailing by the taxpayer of the applicable withholding tax return 41 and a certified check for the amount of the tax liability on or before 42 the second business day prior to the applicable due date otherwise 43 prescribed by law shall fulfill the requirements of this section and 44 shall be deemed to be timely payment of such tax liability and timely 45 filing of such return. 46 S 5. Subdivisions eighteenth-b and eighteenth-c of section 171 of the 47 tax law, as added by chapter 770 of the laws of 1992, are amended to 48 read as follows: 49 Eighteenth-b. Where the filing requirement arises under article twen- 50 ty-two of this chapter or under a law enacted pursuant to the authority 51 of article thirty [or], thirty-A OR THIRTY-C of this chapter, have 52 authority to require a husband and wife whose federal income tax liabil- 53 ities are determined on a joint federal return and who have not filed a 54 joint New York income tax return to file separate income tax returns, in 55 which case their income tax liabilities shall be separate. Such authori- 56 ty shall be exercised only where one of such persons demonstrates, to A. 7097 6 1 the satisfaction of the commissioner, that (a) the address or where- 2 abouts of his or her spouse is unknown to him or her, (b) reasonable 3 efforts have been made by him or her to locate such spouse, and (c) good 4 cause existed for the failure to file a joint New York income tax 5 return. 6 Eighteenth-c. Where the filing requirement arises under article twen- 7 ty-two of this chapter or under a law enacted pursuant to the authority 8 of article thirty [or], thirty-A OR THIRTY-C of this chapter, have 9 authority to require a husband and wife whose federal income tax liabil- 10 ities are determined on a joint federal return and who have not filed a 11 joint New York income tax return to file separate income tax returns, in 12 which case their income tax liabilities shall be separate. Such authori- 13 ty shall be exercised only where one of such persons demonstrates, to 14 the satisfaction of the commissioner, that (a) his or her spouse has 15 refused to sign a joint New York income tax return, (b) reasonable 16 efforts have been made by him or her to have such spouse sign a joint 17 New York income tax return, (c) there exists objective evidence of 18 alienation of such person from his or her spouse such as a judicial 19 order of protection, legal separation under a decree of divorce or sepa- 20 rate maintenance, separation under a written separation agreement or 21 judicial decree of separation, living apart at all times during the 22 twelve months immediately preceding the application for exercise of 23 authority under this provision, the commencement of an action for 24 divorce, or the commencement of proceedings in family court which 25 evidence such alienation, and (d) good cause existed for the failure to 26 file a joint New York income tax return. 27 S 6. Subdivision 1 of section 171-a of the tax law, as amended by 28 section 1 of part R of chapter 60 of the laws of 2004, is amended to 29 read as follows: 30 1. All taxes, interest, penalties and fees collected or received by 31 the commissioner or the commissioner's duly authorized agent under arti- 32 cles nine (except section one hundred eighty-two-a thereof and except as 33 otherwise provided in section two hundred five thereof), nine-A, 34 twelve-A (except as otherwise provided in section two hundred eighty- 35 four-d thereof), thirteen, thirteen-A (except as otherwise provided in 36 section three hundred twelve thereof), eighteen, nineteen, twenty 37 (except as otherwise provided in section four hundred eighty-two there- 38 of), twenty-one, twenty-two, twenty-six, twenty-six-B, twenty-eight 39 (except as otherwise provided in section eleven hundred two or eleven 40 hundred three thereof), twenty-eight-A, thirty-one (except as otherwise 41 provided in section fourteen hundred twenty-one thereof), thirty-two, 42 thirty-three and thirty-three-A of this chapter shall be deposited daily 43 in one account with such responsible banks, banking houses or trust 44 companies as may be designated by the comptroller, to the credit of the 45 comptroller. Such an account may be established in one or more of such 46 depositories. Such deposits shall be kept separate and apart from all 47 other money in the possession of the comptroller. The comptroller shall 48 require adequate security from all such depositories. Of the total 49 revenue collected or received under such articles of this chapter, the 50 comptroller shall retain in the comptroller's hands such amount as the 51 commissioner may determine to be necessary for refunds or reimbursements 52 under such articles of this chapter [and article ten thereof] out of 53 which amount the comptroller shall pay any refunds or reimbursements to 54 which taxpayers shall be entitled under the provisions of such articles 55 of this chapter [and article ten thereof]. The commissioner and the 56 comptroller shall maintain a system of accounts showing the amount of A. 7097 7 1 revenue collected or received from each of the taxes imposed by such 2 articles. The comptroller, after reserving the amount to pay such 3 refunds or reimbursements, shall, on or before the tenth day of each 4 month, pay into the state treasury to the credit of the general fund all 5 revenue deposited under this section during the preceding calendar month 6 and remaining to the comptroller's credit on the last day of such 7 preceding month, (i) except that the comptroller shall pay to the state 8 department of [social services] FAMILY ASSISTANCE that amount of over- 9 payments of tax imposed by article twenty-two of this chapter and the 10 interest on such amount which is certified to the comptroller by the 11 commissioner as the amount to be credited against past-due support 12 pursuant to subdivision six of section one hundred seventy-one-c of this 13 chapter, (ii) and except that the comptroller shall pay to the New York 14 state higher education services corporation and the state university of 15 New York or the city university of New York respectively that amount of 16 overpayments of tax imposed by article twenty-two of this chapter and 17 the interest on such amount which is certified to the comptroller by the 18 commissioner as the amount to be credited against the amount of defaults 19 in repayment of guaranteed student loans and state university loans or 20 city university loans pursuant to subdivision five of section one 21 hundred seventy-one-d and subdivision six of section one hundred seven- 22 ty-one-e of this chapter, (iii) and except further that, notwithstanding 23 any law, the comptroller shall credit to the revenue arrearage account, 24 pursuant to section ninety-one-a of the state finance law, that amount 25 of overpayment of tax imposed by article nine, nine-A, twenty-two, thir- 26 ty, thirty-A, thirty-B, THIRTY-C, thirty-two or thirty-three of this 27 chapter, and any interest thereon, which is certified to the comptroller 28 by the commissioner as the amount to be credited against a past-due 29 legally enforceable debt owed to a state agency pursuant to paragraph 30 (a) of subdivision six of section one hundred seventy-one-f of this 31 article, provided, however, [he] THE COMMISSIONER shall credit to the 32 special offset fiduciary account, pursuant to section ninety-one-c of 33 the state finance law, any such amount creditable as a liability as set 34 forth in paragraph (b) of subdivision six of section one hundred seven- 35 ty-one-f of this article, (iv) and except further that the comptroller 36 shall pay to the city of New York that amount of overpayment of tax 37 imposed by article nine, nine-A, twenty-two, thirty, thirty-A, thirty-B, 38 THIRTY-C, thirty-two, or thirty-three of this chapter and any interest 39 thereon that is certified to the comptroller by the commissioner as the 40 amount to be credited against city of New York tax warrant judgment debt 41 pursuant to section one hundred seventy-one-l of this article, (v) and 42 except further that the comptroller shall pay to a non-obligated spouse 43 that amount of overpayment of tax imposed by article twenty-two of this 44 chapter and the interest on such amount which has been credited pursuant 45 to section one hundred seventy-one-c, one hundred seventy-one-d, one 46 hundred seventy-one-e, one hundred seventy-one-f or one hundred seven- 47 ty-one-l of this article and which is certified to the comptroller by 48 the commissioner as the amount due such non-obligated spouse pursuant to 49 paragraph six of subsection (b) of section six hundred fifty-one of this 50 chapter; and (vi) the comptroller shall deduct a like amount which the 51 comptroller shall pay into the treasury to the credit of the general 52 fund from amounts subsequently payable to the department of social 53 services, the state university of New York, the city university of New 54 York, or the higher education services corporation, or the revenue 55 arrearage account or special offset fiduciary account pursuant to 56 section ninety-one-a or ninety-one-c of the state finance law, as the A. 7097 8 1 case may be, whichever had been credited the amount originally withheld 2 from such overpayment, and (vii) with respect to amounts originally 3 withheld from such overpayment pursuant to section one hundred seventy- 4 one-l of this article and paid to the city of New York, the comptroller 5 shall collect a like amount from the city of New York. 6 S 7. Subdivision 1 of section 171-c of the tax law, as amended by 7 chapter 601 of the laws of 2007, is amended to read as follows: 8 (1) The commissioner, on behalf of the department, shall enter into a 9 written agreement with the commissioner of the office of temporary and 10 disability assistance, on behalf of the state office of temporary and 11 disability assistance, which shall set forth the procedures for credit- 12 ing any overpayment by an individual, estate or trust of income tax 13 imposed by article twenty-two of this chapter, city personal income tax 14 on residents imposed pursuant to the authority of article thirty of this 15 chapter, city income tax surcharge on residents imposed pursuant to the 16 authority of article thirty-A of this chapter and city earnings tax on 17 nonresidents imposed pursuant to the authority of article thirty-B of 18 this chapter AND SCHOOL DISTRICT INCOME TAX SURCHARGE IMPOSED PURSUANT 19 TO THE AUTHORITY OF ARTICLE THIRTY-C OF THIS CHAPTER and the interest on 20 such overpayments against past-due support owed by such individual, 21 estate or trust of which the commissioner has been notified by the 22 commissioner of the office of temporary and disability assistance pursu- 23 ant to the provisions of such agreement. 24 S 8. Subdivision 1 of section 171-d of the tax law, as amended by 25 section 2 of part M of chapter 57 of the laws of 2008, is amended to 26 read as follows: 27 (1) The commissioner, on behalf of the [tax commission] DEPARTMENT, 28 shall enter into a written agreement with the president of the New York 29 state higher education services corporation, on behalf of such corpo- 30 ration, which shall set forth the procedures for crediting any overpay- 31 ment by an individual, estate or trust of income tax imposed by article 32 twenty-two of this chapter, city personal income tax on residents 33 imposed pursuant to the authority of article thirty of this chapter, 34 city income tax surcharge on residents imposed pursuant to the authority 35 of article thirty-A of this chapter, [city earnings tax on nonresidents 36 imposed pursuant to the authority of former article two-E of the general 37 city law and] city earnings tax on nonresidents imposed pursuant to the 38 authority of article thirty-B of this chapter, SCHOOL DISTRICT INCOME 39 TAX SURCHARGE IMPOSED PURSUANT TO THE AUTHORITY OF ARTICLE THIRTY-C OF 40 THIS CHAPTER and the interest on such overpayments against the amount of 41 any default in repayment of any governmental education loan owed by such 42 individual, estate or trust of which the commissioner has been notified 43 by the president of the New York state higher education services corpo- 44 ration pursuant to the provisions of such agreement. For purposes of 45 this section, "governmental education loan" shall mean any education 46 loan debt, including judgments, owed to the federal or New York state 47 government that is being collected by the New York state higher educa- 48 tion services corporation. 49 S 9. Subdivision 2 of section 171-e of the tax law, as separately 50 amended by chapters 222 and 638 of the laws of 1985, is amended to read 51 as follows: 52 (2) The commissioner [of taxation and finance], on behalf of the [tax 53 commission] DEPARTMENT, shall enter into a written agreement with the 54 state university of New York or the city university of New York respec- 55 tively which shall set forth the procedures for crediting any overpay- 56 ment by an individual, estate or trust of income tax imposed by article A. 7097 9 1 twenty-two of this chapter, city personal income tax on residents 2 imposed pursuant to the authority of article thirty of this chapter, 3 city income tax surcharge on residents imposed pursuant to the authority 4 of article thirty-A of this chapter, [city earnings tax on nonresidents 5 imposed pursuant to the authority of article two-E of the general city 6 law and] city earnings tax on nonresidents imposed pursuant to the 7 authority of article thirty-B of this chapter AND SCHOOL DISTRICT INCOME 8 TAX SURCHARGE IMPOSED PURSUANT TO THE AUTHORITY OF ARTICLE THIRTY-C OF 9 THIS CHAPTER and the interest on such overpayments against the amount of 10 any default in repayment of a state university loan or city university 11 loan owed by such individual, estate or trust of which the commissioner 12 [of taxation and finance] has been notified by the state university of 13 New York or the city university of New York respectively pursuant to the 14 provisions of such agreement. 15 S 10. Subdivisions 1 and 2 of section 171-f of the tax law, subdivi- 16 sion 1 as amended by chapter 81 of the laws of 1995 and subdivision 2 as 17 added by chapter 55 of the laws of 1992, are amended to read as follows: 18 (1) For the purposes of this section, (a) "state agency" shall mean 19 any state department, board, bureau, division, commission, committee, 20 public authority, public benefit corporation, council, office, or other 21 governmental entity performing a governmental or proprietary function 22 for the state, or, solely for purposes of this section, a local social 23 services district; (b) "taxpayer" shall mean a corporation, association, 24 company, partnership, estate, trust, liquidator, fiduciary or other 25 entity or individual who or which is liable for any tax or other imposi- 26 tion imposed by or pursuant to article nine, nine-A, twenty-two, thirty, 27 thirty-A, thirty-B, THIRTY-C, thirty-two, or thirty-three of this chap- 28 ter [or article two-E of the general city law], which tax or other impo- 29 sition is administered by the commissioner of taxation and finance, or 30 who or which is under a duty to perform an act under or pursuant to such 31 tax or imposition, excluding a state agency, a municipal corporation or 32 a district corporation; and (c) "overpayment" shall mean an overpayment 33 which has been requested or determined to be refunded, a refund or a 34 reimbursement, of a tax or other imposition imposed by or pursuant to 35 article nine, nine-A, twenty-two, thirty, thirty-A, thirty-B, THIRTY-C, 36 thirty-two, or thirty-three of this chapter or FORMER article two-E of 37 the general city law, which is administered by the commissioner [of 38 taxation and finance]. 39 (2) The commissioner [of taxation and finance], upon agreement with 40 the state comptroller and acting as an agent for the state comptroller, 41 shall set forth the procedures for crediting any overpayment by a 42 taxpayer of any tax or other imposition imposed by or authorized to be 43 imposed pursuant to article nine, nine-A, twenty-two, thirty, thirty-A, 44 thirty-B, THIRTY-C, thirty-two, or thirty-three of this chapter [or 45 article two-E of the general city law], which is administered by the 46 commissioner [of taxation and finance], and the interest on any such 47 overpayments, against the amount of a past-due legally enforceable debt 48 owed by such taxpayer to a state agency. An implementation plan shall be 49 developed by the division of the budget and the department of taxation 50 and finance which shall provide, but not be limited to, guidance with 51 respect to coordination of debt collection pursuant to this section and 52 subdivision twenty-seventh of section one hundred seventy-one of this 53 article. This section shall not be deemed to abrogate or limit in any 54 way the powers and authority of the state comptroller to set off debts 55 owed the state against payments from the state, under the constitution 56 of the state or any other law. A. 7097 10 1 S 11. Paragraph 1 of subsection (c) of section 615 of the tax law, as 2 amended by chapter 497 of the laws of 1997, is amended to read as 3 follows: 4 (1) income taxes imposed by this state or any other taxing jurisdic- 5 tion, except (A) city earnings taxes on nonresidents that are imposed 6 upon and paid by taxpayers for taxable years beginning after December 7 thirty-first, nineteen hundred seventy and before January first, two 8 thousand, pursuant to the authority of FORMER section twenty-five-m of 9 the general city law, to the extent that the amount of such tax exceeds 10 the tax computed as if the rates were one-fourth of one percent of wages 11 subject to tax and three-eighths of one percent of net earnings from 12 self-employment subject to tax, AND (B) ANY SCHOOL DISTRICT INCOME TAX 13 SURCHARGE IMPOSED PURSUANT TO THE AUTHORITY OF ARTICLE THIRTY-ONE-C OF 14 THIS CHAPTER; 15 S 12. The tax law is amended by adding a new article 30-C to read as 16 follows: 17 ARTICLE 30-C 18 SCHOOL DISTRICT INCOME TAX SURCHARGE 19 SECTION 1360. SHORT TITLE. 20 1361. AUTHORITY TO IMPOSE SCHOOL DISTRICT INCOME TAX SURCHARGE. 21 1362. MODEL RESOLUTION. 22 1363. ADOPTION OF THE MODEL SCHOOL DISTRICT INCOME TAX 23 SURCHARGE. 24 1364. DEPOSIT AND DISPOSITION OF REVENUES. 25 S 1360. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED AS 26 THE "SCHOOL DISTRICT INCOME TAX SURCHARGE". 27 S 1361. AUTHORITY TO IMPOSE SCHOOL DISTRICT INCOME TAX SURCHARGE. (A) 28 GENERAL. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, BUT 29 SUBJECT TO THE LIMITATIONS AND CONDITIONS SET FORTH IN THIS ARTICLE, ANY 30 SCHOOL DISTRICT IN THIS STATE (OTHER THAN A SCHOOL DISTRICT OF A CITY 31 SUBJECT TO THE PROVISIONS OF ARTICLE FIFTY-TWO OF THE EDUCATION LAW), 32 ACTING THROUGH ITS BOARD OF TRUSTEES OR BOARD OF EDUCATION IN ACCORDANCE 33 WITH SECTION FIFTEEN HUNDRED ONE-D OF THE EDUCATION LAW, IS HEREBY 34 AUTHORIZED AND EMPOWERED TO ADOPT AND AMEND RESOLUTIONS IMPOSING IN ANY 35 SUCH SCHOOL DISTRICT, FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND 36 TEN, A SCHOOL DISTRICT INCOME TAX SURCHARGE ON THE NET STATE TAX (AS 37 DEFINED IN SECTION THREE OF THE MODEL SCHOOL DISTRICT INCOME TAX 38 SURCHARGE SET FORTH IN SECTION THIRTEEN HUNDRED SIXTY-THREE OF THIS 39 ARTICLE) OF RESIDENTS OF THE SCHOOL DISTRICT, AT A RATE PERMISSIBLE 40 UNDER SUBSECTION (C) OF THIS SECTION. SUCH SCHOOL DISTRICT INCOME TAX 41 SURCHARGE SHALL BE ADMINISTERED, COLLECTED AND DISTRIBUTED BY THE 42 COMMISSIONER AS PROVIDED FOR IN THIS ARTICLE. 43 (B) FORM OF ADOPTION OF RESOLUTION. ADOPTION OF AN INCOME TAX 44 SURCHARGE PURSUANT TO THE AUTHORITY OF THIS SECTION SHALL BE BY ADOPTION 45 OF A RESOLUTION, SUBSTANTIALLY SIMILAR IN TERMS TO THE MODEL RESOLUTION 46 SET FORTH IN SECTION THIRTEEN HUNDRED SIXTY-TWO OF THIS ARTICLE, SETTING 47 FORTH ONE OF THE RATES OF INCOME TAX SURCHARGE PROVIDED IN SUBSECTION 48 (C) OF THIS SECTION AND SPECIFYING THE TAXABLE YEARS FOR WHICH THE RATE 49 IS TO BE EFFECTIVE. SUCH RESOLUTION SHALL BE DEEMED TO INCORPORATE THER- 50 EIN ALL OF THE PROVISIONS OF THE MODEL SCHOOL DISTRICT INCOME TAX 51 SURCHARGE SET FORTH IN SECTION THIRTEEN HUNDRED SIXTY-THREE OF THIS 52 ARTICLE, AS AMENDED FROM TIME TO TIME. 53 (C) RATE OF SURCHARGE. THE PERMISSIBLE RATES OF INCOME TAX SURCHARGE 54 AUTHORIZED BY THIS SECTION SHALL BE WHOLE NUMBER MULTIPLES OF ONE 55 PERCENT AND SHALL NOT EXCEED TWENTY-FIVE PERCENT. DIFFERENT PERMISSIBLE 56 RATES MAY BE IMPOSED WITH RESPECT TO DIFFERENT CALENDAR YEARS, BUT ONLY A. 7097 11 1 ONE SUCH RATE MAY BE IMPOSED WITH RESPECT TO A SINGLE CALENDAR YEAR, AND 2 ANY SUCH RATE SHALL REMAIN IN EFFECT FOR THE ENTIRE YEAR AND SHALL APPLY 3 TO ALL TAXABLE YEARS BEGINNING IN SUCH CALENDAR YEAR. 4 (D) EFFECTIVENESS OF RESOLUTION AND FILING WITH COMMISSIONER. (1) 5 INITIAL ADOPTION. A RESOLUTION IMPOSING AN INCOME TAX SURCHARGE PURSUANT 6 TO THE AUTHORITY OF THIS SECTION WHICH IS ADOPTED ON OR BEFORE MARCH 7 THIRTY-FIRST OF ANY CALENDAR YEAR WITH NOTICE TO THE COMMISSIONER ON OR 8 BEFORE SUCH DATE SHALL GO INTO EFFECT ON THE FIRST DAY OF JANUARY OF THE 9 FIRST SUCCEEDING CALENDAR YEAR, AND ANY SUCH LOCAL LAW ENACTED AFTER, OR 10 WITH NOTICE AFTER, SUCH MARCH THIRTY-FIRST SHALL GO INTO EFFECT ON THE 11 FIRST DAY OF JANUARY OF THE SECOND SUCCEEDING CALENDAR YEAR, AND IN 12 EITHER CASE SHALL APPLY TO TAXABLE YEARS BEGINNING ON AND AFTER SUCH 13 FIRST DAY OF JANUARY. 14 (2) AMENDMENT. A RESOLUTION AMENDING SUCH AN INCOME TAX SURCHARGE, 15 WHICH RESOLUTION IS ADOPTED ON OR BEFORE JUNE THIRTIETH OF ANY CALENDAR 16 YEAR WITH NOTICE TO THE COMMISSIONER ON OR BEFORE SUCH DATE SHALL GO 17 INTO EFFECT ON THE FIRST DAY OF JANUARY OF THE FIRST SUCCEEDING CALENDAR 18 YEAR, AND ANY SUCH RESOLUTION ADOPTED AFTER, OR WITH NOTICE AFTER, SUCH 19 JUNE THIRTIETH SHALL GO INTO EFFECT ON THE FIRST DAY OF JANUARY OF THE 20 SECOND SUCCEEDING CALENDAR YEAR, AND IN EITHER CASE SHALL APPLY TO TAXA- 21 BLE YEARS BEGINNING ON AND AFTER SUCH FIRST DAY OF JANUARY. 22 (3) NOTICE. NOTICE TO THE COMMISSIONER OF ADOPTION OF ANY RESOLUTION 23 PURSUANT TO THE AUTHORITY OF THIS SECTION SHALL BE BY MAILING BY REGIS- 24 TERED MAIL A CERTIFIED COPY OF SUCH RESOLUTION TO THE COMMISSIONER AT 25 THE COMMISSIONER'S OFFICE IN ALBANY. 26 (E) FILING OF RESOLUTION WITH OTHERS. CERTIFIED COPIES OF ANY SUCH 27 RESOLUTION SHALL ALSO BE FILED, WITHIN THIRTY DAYS OF THE DATE OF ENACT- 28 MENT, WITH THE CLERK OF THE SCHOOL DISTRICT WHEREIN THE SURCHARGE IS 29 IMPOSED. 30 (F) COOPERATION. (1) EVERY SCHOOL DISTRICT IMPOSING A SCHOOL DISTRICT 31 INCOME TAX SURCHARGE UNDER THE AUTHORITY OF THIS SECTION SHALL FURNISH 32 THE COMMISSIONER SUCH INFORMATION AS HE OR SHE MAY REQUIRE IN THE ADMIN- 33 ISTRATION OF SUCH SURCHARGE, ANY OTHER LAW TO THE CONTRARY NOTWITHSTAND- 34 ING. 35 (2) THE COMMISSIONER SHALL ADVISE AND COOPERATE WITH SCHOOL DISTRICT 36 OFFICIALS FOR THE PURPOSE OF UNIFORM ADMINISTRATION, COLLECTION AND 37 DISTRIBUTION OF THE TAX AUTHORIZED BY THIS SECTION. 38 (3) ANY AMENDMENT TO THE PROVISIONS OF ARTICLE TWENTY-TWO OF THIS 39 CHAPTER, TO THE EXTENT THAT SUCH AMENDMENT IS APPLICABLE TO THE MODEL 40 SCHOOL DISTRICT INCOME TAX SURCHARGE, SHALL BE DEEMED TO HAVE BEEN 41 INCORPORATED IN THE ANALOGOUS PROVISION OR PROVISIONS OF SUCH MODEL 42 SURCHARGE. 43 S 1362. MODEL RESOLUTION. THE RESOLUTION DESCRIBED IN SUBSECTION (B) 44 OF SECTION THIRTEEN HUNDRED SIXTY-ONE OF THIS ARTICLE SHALL BE IN 45 SUBSTANTIALLY THE FOLLOWING FORM: 46 IMPOSITION OF SCHOOL DISTRICT INCOME TAX SURCHARGE. 47 THE SCHOOL DISTRICT HEREBY ADOPTS THE MODEL SCHOOL 48 DISTRICT INCOME TAX SURCHARGE, FOR TAXABLE YEARS BEGINNING ON AND AFTER 49 JANUARY 1, 20 , AT THE RATE OF PERCENT. 50 S 1363. ADOPTION OF THE MODEL SCHOOL DISTRICT INCOME TAX SURCHARGE. 51 ADOPTION BY A SCHOOL DISTRICT OF THE RESOLUTION SET FORTH IN SECTION 52 THIRTEEN HUNDRED SIXTY-TWO OF THIS ARTICLE SHALL BE DEEMED TO BE 53 ADOPTION OF THE MODEL SCHOOL DISTRICT INCOME TAX SURCHARGE SET FORTH 54 BELOW. 55 MODEL SCHOOL DISTRICT INCOME TAX SURCHARGE 56 SECTION 1. PERSONS SUBJECT TO THE SCHOOL DISTRICT INCOME TAX SURCHARGE. A. 7097 12 1 2. RENTER'S CREDIT. 2 3. NET STATE TAX. 3 4. SCHOOL DISTRICT RESIDENT DEFINED. 4 5. RETURNS AND LIABILITIES. 5 6. REQUIREMENT OF WITHHOLDING TAX FROM WAGES. 6 7. CREDIT FOR TAX WITHHELD. 7 8. ENFORCEMENT WITH OTHER TAXES. 8 9. ADMINISTRATION, COLLECTION AND REVIEW. 9 SECTION 1. PERSONS SUBJECT TO THE SCHOOL DISTRICT INCOME TAX 10 SURCHARGE. (A) GENERAL. THE SCHOOL DISTRICT INCOME TAX SURCHARGE AT THE 11 RATE ADOPTED SHALL BE IMPOSED FOR EACH TAXABLE YEAR ON EVERY SCHOOL 12 DISTRICT RESIDENT INDIVIDUAL, ESTATE AND TRUST. A TAXPAYER'S TAXABLE 13 YEAR FOR PURPOSES OF THE SCHOOL DISTRICT INCOME TAX SURCHARGE SHALL BE 14 THE SAME AS THE TAXPAYER'S TAXABLE YEAR UNDER ARTICLE TWENTY-TWO OF THIS 15 CHAPTER. 16 (B) PARTNERS AND PARTNERSHIPS. A PARTNERSHIP AS SUCH SHALL NOT BE 17 SUBJECT TO THE SCHOOL DISTRICT INCOME TAX SURCHARGE. PERSONS CARRYING ON 18 BUSINESS AS PARTNERS SHALL BE LIABLE FOR SUCH SCHOOL DISTRICT INCOME TAX 19 SURCHARGE ONLY IN THEIR SEPARATE OR INDIVIDUAL CAPACITIES. 20 (C) ASSOCIATIONS TAXABLE AS CORPORATIONS. AN ASSOCIATION, TRUST OR 21 OTHER UNINCORPORATED ORGANIZATION WHICH IS TAXABLE AS A CORPORATION FOR 22 FEDERAL INCOME TAX PURPOSES SHALL NOT BE SUBJECT TO THE SCHOOL DISTRICT 23 INCOME TAX SURCHARGE. 24 (D) EXEMPT TRUSTS AND ORGANIZATIONS. A TRUST OR OTHER UNINCORPORATED 25 ORGANIZATION WHICH BY REASON OF ITS PURPOSES OR ACTIVITIES IS EXEMPT 26 FROM FEDERAL INCOME TAX SHALL BE EXEMPT FROM THE SCHOOL DISTRICT INCOME 27 TAX SURCHARGE (REGARDLESS OF WHETHER SUBJECT TO FEDERAL INCOME TAX ON 28 UNRELATED BUSINESS TAXABLE INCOME). 29 S 2. RENTER'S CREDIT. (A) GENERAL. A TAXPAYER WHO IS A QUALIFIED 30 LESSEE SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS MODEL 31 SURCHARGE EQUAL TO ONE AND ONE-QUARTER PERCENT OF HIS OR HER ADJUSTED 32 RENT. 33 (B) QUALIFIED LESSEE. A QUALIFIED LESSEE IS AN INDIVIDUAL WHOSE RESI- 34 DENCE WITHIN THE SCHOOL DISTRICT IS LEASED REAL PROPERTY WHICH IS NOT 35 RESIDENTIAL REAL PROPERTY. 36 (C) ADJUSTED RENT. THE TERM ADJUSTED RENT SHALL HAVE THE SAME MEANING 37 AS IN SUBPARAGRAPH (G) OF PARAGRAPH ONE OF SUBSECTION (E) OF SECTION SIX 38 HUNDRED SIX OF THIS CHAPTER, WITH RESPECT TO THE RENTAL PAID BY THE 39 QUALIFIED LESSEE DURING THE TAXABLE YEAR FOR THE RESIDENCE REFERRED TO 40 IN SUBSECTION (B) OF THIS SECTION. 41 S 3. NET STATE TAX. (A) GENERAL. THE NET STATE TAX OF A SCHOOL 42 DISTRICT RESIDENT INDIVIDUAL, ESTATE OR TRUST SHALL MEAN THE SUM OF ALL 43 OF THE TAXES IMPOSED ON SUCH INDIVIDUAL, ESTATE OR TRUST UNDER ARTICLE 44 TWENTY-TWO OF THIS CHAPTER FOR THE TAXABLE YEAR LESS THE APPLICABLE 45 CREDITS (OTHER THAN THE CREDIT FOR TAX WITHHELD) ALLOWED TO SUCH INDI- 46 VIDUAL, ESTATE OR TRUST UNDER SUCH ARTICLE FOR THE TAXABLE YEAR. 47 (B) CHANGE OF RESIDENCE. WHEN AN INDIVIDUAL OR TRUST CHANGES SCHOOL 48 DISTRICT RESIDENT STATUS DURING THE TAXABLE YEAR, THE NET STATE TAX 49 SHALL BE THE NET STATE TAX DETERMINED UNDER SUBSECTION (A) OF THIS 50 SECTION MULTIPLIED BY A FRACTION, THE NUMERATOR OF WHICH IS THE NUMBER 51 OF MONTHS OF RESIDENCE IN THE SCHOOL DISTRICT IN THE TAXABLE YEAR AND 52 THE DENOMINATOR OF WHICH IS THE NUMBER OF MONTHS IN THE TAXABLE YEAR. 53 FOR PURPOSES OF THIS SUBSECTION, A MONTH SHALL CONSTITUTE A MONTH OF 54 RESIDENCE IF THE INDIVIDUAL OR TRUST IS A RESIDENT FOR MORE THAN FIFTEEN 55 DAYS OF THAT MONTH. A. 7097 13 1 S 4. SCHOOL DISTRICT RESIDENT DEFINED. (A) SCHOOL DISTRICT RESIDENT 2 INDIVIDUAL. A SCHOOL DISTRICT RESIDENT INDIVIDUAL MEANS AN INDIVIDUAL 3 WHO IS DOMICILED IN THE SCHOOL DISTRICT WHEREIN THE SCHOOL DISTRICT 4 INCOME TAX SURCHARGE IS IMPOSED, UNLESS 5 (1) SUCH INDIVIDUAL MAINTAINS NO PERMANENT PLACE OF ABODE IN SUCH 6 SCHOOL DISTRICT, MAINTAINS A PERMANENT PLACE OF ABODE ELSEWHERE, AND 7 SPENDS IN THE AGGREGATE NOT MORE THAN THIRTY DAYS OF THE TAXABLE YEAR IN 8 SUCH SCHOOL DISTRICT, OR 9 (2)(A) WITHIN ANY PERIOD OF FIVE HUNDRED FORTY-EIGHT CONSECUTIVE DAYS 10 SUCH INDIVIDUAL IS PRESENT IN A FOREIGN COUNTRY OR COUNTRIES FOR AT 11 LEAST FOUR HUNDRED FIFTY DAYS, AND (B) DURING SUCH PERIOD OF FIVE 12 HUNDRED FORTY-EIGHT CONSECUTIVE DAYS HE OR SHE IS NOT PRESENT IN SUCH 13 SCHOOL DISTRICT FOR MORE THAN NINETY DAYS AND DOES NOT MAINTAIN A PERMA- 14 NENT PLACE OF ABODE IN SUCH SCHOOL DISTRICT AT WHICH HIS OR HER SPOUSE 15 (UNLESS SUCH SPOUSE IS LEGALLY SEPARATED) OR MINOR CHILDREN ARE PRESENT 16 FOR MORE THAN NINETY DAYS, AND (C) DURING THE NONRESIDENT PORTION OF THE 17 TAXABLE YEAR WITH OR WITHIN WHICH SUCH PERIOD OF FIVE HUNDRED 18 FORTY-EIGHT CONSECUTIVE DAYS BEGINS AND THE NONRESIDENT PORTION OF THE 19 TAXABLE YEAR WITH OR WITHIN WHICH SUCH PERIOD ENDS, HE OR SHE IS PRESENT 20 IN SUCH SCHOOL DISTRICT FOR A NUMBER OF DAYS WHICH DOES NOT EXCEED AN 21 AMOUNT WHICH BEARS THE SAME RATIO TO NINETY AS THE NUMBER OF DAYS 22 CONTAINED IN SUCH PORTION OF THE TAXABLE YEAR BEARS TO FIVE HUNDRED 23 FORTY-EIGHT. 24 (B) SCHOOL DISTRICT RESIDENT ESTATE OR TRUST. A SCHOOL DISTRICT RESI- 25 DENT ESTATE OR TRUST MEANS: (1) THE ESTATE OF A DECEDENT WHO AT HIS OR 26 HER DEATH WAS DOMICILED IN SUCH SCHOOL DISTRICT, 27 (2) A TRUST, OR A PORTION OF A TRUST, CONSISTING OF PROPERTY TRANS- 28 FERRED BY WILL OF A DECEDENT WHO AT HIS OR HER DEATH WAS DOMICILED IN 29 SUCH SCHOOL DISTRICT, OR 30 (3) A TRUST, OR A PORTION OF A TRUST, CONSISTING OF THE PROPERTY OF: 31 (A) A PERSON DOMICILED IN SUCH SCHOOL DISTRICT AT THE TIME SUCH PROP- 32 ERTY WAS TRANSFERRED TO THE TRUST, IF SUCH TRUST OR PORTION OF A TRUST 33 WAS THEN IRREVOCABLE, OR IF IT WAS THEN REVOCABLE AND HAS NOT SUBSE- 34 QUENTLY BECOME IRREVOCABLE; OR 35 (B) A PERSON DOMICILED IN SUCH SCHOOL DISTRICT AT THE TIME SUCH TRUST 36 OR PORTION OF A TRUST BECAME IRREVOCABLE, IF IT WAS REVOCABLE WHEN SUCH 37 PROPERTY WAS TRANSFERRED TO THE TRUST BUT HAS SUBSEQUENTLY BECOME IRREV- 38 OCABLE. 39 FOR THE PURPOSES OF THE FOREGOING, A TRUST OR A PORTION OF A TRUST IS 40 REVOCABLE IF IT IS SUBJECT TO A POWER, EXERCISABLE IMMEDIATELY OR AT ANY 41 FUTURE TIME, TO REVEST TITLE IN THE PERSON WHOSE PROPERTY CONSTITUTES 42 SUCH TRUST OR PORTION OF A TRUST AND A TRUST OR PORTION OF A TRUST 43 BECOMES IRREVOCABLE WHEN THE POSSIBILITY THAT SUCH POWER MAY BE EXER- 44 CISED HAS BEEN TERMINATED. 45 S 5. RETURNS AND LIABILITIES. (A) GENERAL. ON OR BEFORE THE FIFTEENTH 46 DAY OF THE FOURTH MONTH FOLLOWING THE CLOSE OF A TAXABLE YEAR, A SCHOOL 47 DISTRICT INCOME TAX SURCHARGE RETURN SHALL BE MADE AND FILED BY OR FOR 48 EVERY SCHOOL DISTRICT RESIDENT INDIVIDUAL, ESTATE OR TRUST REQUIRED TO 49 FILE A NEW YORK STATE PERSONAL INCOME TAX RETURN FOR THE TAXABLE YEAR. 50 (B) HUSBAND AND WIFE. (1) IF THE NEW YORK STATE PERSONAL INCOME TAX 51 LIABILITIES OF HUSBAND AND WIFE ARE DETERMINED ON SEPARATE RETURNS, 52 THEIR SCHOOL DISTRICT INCOME TAX SURCHARGE LIABILITIES AND RETURNS SHALL 53 BE SEPARATE. 54 (2) IF THE NEW YORK STATE PERSONAL INCOME TAX LIABILITIES OF HUSBAND 55 AND WIFE (OTHER THAN A HUSBAND AND WIFE DESCRIBED IN PARAGRAPH THREE OF 56 THIS SUBSECTION) ARE DETERMINED ON A JOINT RETURN, THEY SHALL FILE A A. 7097 14 1 JOINT SCHOOL DISTRICT INCOME TAX SURCHARGE RETURN, AND THEIR SCHOOL 2 DISTRICT INCOME TAX SURCHARGE LIABILITIES SHALL BE JOINT AND SEVERAL 3 EXCEPT AS PROVIDED IN PARAGRAPHS FOUR AND FIVE OF THIS SUBSECTION AND IN 4 SUBSECTION (E) OF SECTION SIX HUNDRED EIGHTY-FIVE OF THIS CHAPTER. 5 (3) IF EITHER HUSBAND OR WIFE IS A SCHOOL DISTRICT RESIDENT AND THE 6 OTHER IS A SCHOOL DISTRICT NONRESIDENT, AND THEIR NEW YORK STATE 7 PERSONAL INCOME TAX LIABILITIES ARE DETERMINED ON A JOINT RETURN: 8 (A) THE RESIDENT SPOUSE MAY ELECT TO FILE A SEPARATE SCHOOL DISTRICT 9 INCOME TAX SURCHARGE RETURN, IN WHICH CASE THE SURCHARGE SHALL BE 10 APPLIED TO A SEPARATE NET STATE TAX, SUCH SEPARATE NET STATE TAX TO BE 11 THAT PORTION OF THE TOTAL NET STATE TAX DETERMINED FROM THE JOINT STATE 12 RETURN WHICH BEARS THE SAME RELATION TO SUCH TOTAL NET STATE TAX AS THE 13 NEW YORK ADJUSTED GROSS INCOME (AS DEFINED IN SECTION SIX HUNDRED TWELVE 14 OF THIS CHAPTER) OF THE RESIDENT SPOUSE BEARS TO THE JOINT NEW YORK 15 ADJUSTED GROSS INCOME, OR 16 (B) THEY MAY ELECT TO FILE A JOINT SCHOOL DISTRICT INCOME TAX 17 SURCHARGE RETURN, IN WHICH CASE THEIR SCHOOL DISTRICT INCOME TAX 18 SURCHARGE LIABILITIES SHALL BE JOINT AND SEVERAL EXCEPT AS PROVIDED IN 19 PARAGRAPHS FOUR AND FIVE OF THIS SUBSECTION AND IN SUBSECTION (E) OF 20 SECTION SIX HUNDRED EIGHTY-FIVE OF THIS CHAPTER, PROVIDED THAT (I) IF 21 THE SCHOOL DISTRICT OF RESIDENCE OF EACH SPOUSE IMPOSES A SURCHARGE, BUT 22 AT DIFFERENT RATES, THEY SHALL FILE THE JOINT SCHOOL DISTRICT INCOME TAX 23 SURCHARGE RETURN WITH THE SCHOOL DISTRICT IMPOSING THE HIGHER RATE OF 24 SURCHARGE, AND THERE SHALL BE NO SURCHARGE LIABILITY TO THE OTHER SCHOOL 25 DISTRICT, OR 26 (II) IF THE SCHOOL DISTRICT OF RESIDENCE OF EACH SPOUSE IMPOSES A 27 SURCHARGE AND THE RATES ARE THE SAME, THEY SHALL FILE A JOINT SCHOOL 28 DISTRICT INCOME TAX SURCHARGE RETURN WITH EACH SCHOOL DISTRICT, BUT THE 29 SURCHARGE ON EACH SUCH RETURN SHALL BE APPLIED TO ONE-HALF OF THE NET 30 STATE TAX. 31 (4) UNDER REGULATIONS PRESCRIBED BY THE COMMISSIONER, IF 32 (A) A JOINT NEW YORK STATE PERSONAL INCOME TAX RETURN HAS BEEN MADE 33 UNDER SUBSECTION (B) OF SECTION SIX HUNDRED FIFTY-ONE OF THIS CHAPTER 34 FOR A TAXABLE YEAR, (B) ON SUCH RETURN THERE IS A SUBSTANTIAL UNDER- 35 STATEMENT OF TAX ATTRIBUTABLE TO GROSSLY ERRONEOUS ITEMS OF ONE SPOUSE, 36 (C) THE OTHER SPOUSE IS RELIEVED OF LIABILITY FOR NEW YORK STATE 37 PERSONAL INCOME TAX (INCLUDING INTEREST, PENALTIES AND OTHER AMOUNTS) 38 FOR SUCH TAXABLE YEAR TO THE EXTENT THAT SUCH LIABILITY IS ATTRIBUTABLE 39 TO SUCH SUBSTANTIAL UNDERSTATEMENT PURSUANT TO THE PROVISIONS OF PARA- 40 GRAPH FIVE OF SUBSECTION (B) OF SECTION SIX HUNDRED FIFTY-ONE OF THIS 41 CHAPTER, AND (D) A JOINT SCHOOL DISTRICT PERSONAL INCOME TAX SURCHARGE 42 RETURN HAS BEEN MADE PURSUANT TO THIS SUBSECTION FOR THE TAXABLE YEAR, 43 THEN SUCH OTHER SPOUSE SHALL BE RELIEVED OF LIABILITY FOR SCHOOL 44 DISTRICT INCOME TAX SURCHARGE (INCLUDING INTEREST, PENALTIES AND OTHER 45 AMOUNTS) FOR SUCH TAXABLE YEAR UNDER THE SCHOOL DISTRICT INCOME TAX 46 SURCHARGE, TO THE EXTENT THAT SUCH LIABILITY IS ATTRIBUTABLE TO SUCH 47 SUBSTANTIAL UNDERSTATEMENT. 48 (5) IF A JOINT RETURN HAS BEEN MADE PURSUANT TO THIS SUBSECTION FOR A 49 TAXABLE YEAR AND ONLY ONE SPOUSE IS LIABLE FOR PAST-DUE SUPPORT, OR A 50 PAST-DUE LEGALLY ENFORCEABLE DEBT, OR AN AMOUNT OF A DEFAULT IN REPAY- 51 MENT OF A GUARANTEED STUDENT, STATE UNIVERSITY OR CITY UNIVERSITY LOAN 52 OF WHICH THE COMMISSIONER HAS BEEN NOTIFIED PURSUANT TO SECTION ONE 53 HUNDRED SEVENTY-ONE-C, ONE HUNDRED SEVENTY-ONE-D, ONE HUNDRED 54 SEVENTY-ONE-E OR ONE HUNDRED SEVENTY-ONE-F OF THIS CHAPTER, AS THE CASE 55 MAY BE, THEN AN OVERPAYMENT AND INTEREST THEREON SHALL BE CREDITED 56 AGAINST SUCH PAST-DUE SUPPORT, OR A PAST-DUE LEGALLY ENFORCEABLE DEBT, A. 7097 15 1 OR SUCH AMOUNT OF A DEFAULT IN REPAYMENT OF A GUARANTEED STUDENT, STATE 2 UNIVERSITY OR CITY UNIVERSITY LOAN, UNLESS THE SPOUSE NOT LIABLE FOR 3 SUCH PAST-DUE SUPPORT, OR A PAST-DUE LEGALLY ENFORCEABLE DEBT, OR SUCH 4 AMOUNT OF A DEFAULT IN REPAYMENT OF A GUARANTEED STUDENT, STATE UNIVER- 5 SITY OR CITY UNIVERSITY LOAN DEMANDS, ON A DECLARATION MADE IN ACCORD- 6 ANCE WITH REGULATIONS OR INSTRUCTIONS PRESCRIBED BY THE COMMISSIONER, 7 THAT THE PORTION OF THE OVERPAYMENT AND INTEREST ATTRIBUTABLE TO SUCH 8 SPOUSE NOT BE CREDITED AGAINST THE PAST-DUE SUPPORT, OR A PAST-DUE 9 LEGALLY ENFORCEABLE DEBT, OR AMOUNT OF A DEFAULT IN REPAYMENT OF A GUAR- 10 ANTEED STUDENT, STATE UNIVERSITY OR CITY UNIVERSITY LOAN OWED BY THE 11 OTHER SPOUSE. UPON SUCH DEMAND THE COMMISSIONER SHALL DETERMINE THE 12 AMOUNT OF THE OVERPAYMENT ATTRIBUTABLE TO EACH SPOUSE IN ACCORDANCE WITH 13 REGULATIONS PRESCRIBED BY THE COMMISSIONER AND CREDIT ONLY THAT PORTION 14 OF THE OVERPAYMENT AND INTEREST THEREON ATTRIBUTABLE TO THE SPOUSE 15 LIABLE FOR PAST-DUE SUPPORT, OR A PAST-DUE LEGALLY ENFORCEABLE DEBT, OR 16 AMOUNT OF A DEFAULT IN REPAYMENT OF A GUARANTEED STUDENT, STATE UNIVER- 17 SITY OR CITY UNIVERSITY LOAN AGAINST SUCH PAST-DUE SUPPORT, OR A 18 PAST-DUE LEGALLY ENFORCEABLE DEBT, OR SUCH AMOUNT OF A DEFAULT IN REPAY- 19 MENT OF A GUARANTEED STUDENT, STATE UNIVERSITY OR CITY UNIVERSITY LOAN. 20 (C) DECEDENTS. THE RETURN FOR ANY DECEASED INDIVIDUAL SHALL BE MADE 21 AND FILED BY HIS EXECUTOR, ADMINISTRATOR, OR OTHER PERSON CHARGED WITH 22 HIS PROPERTY. IF A FINAL RETURN OF A DECEDENT IS FOR A FRACTIONAL PART 23 OF A YEAR, THE DUE DATE OF SUCH RETURN SHALL BE THE FIFTEENTH DAY OF THE 24 FOURTH MONTH FOLLOWING THE CLOSE OF THE TWELVE-MONTH PERIOD WHICH BEGAN 25 WITH THE FIRST DAY OF SUCH FRACTIONAL PART OF THE YEAR. 26 (D) INDIVIDUALS UNDER A DISABILITY. THE RETURN FOR AN INDIVIDUAL WHO 27 IS UNABLE TO MAKE A RETURN BY REASON OF MINORITY OR OTHER DISABILITY 28 SHALL BE MADE AND FILED BY HIS GUARDIAN, COMMITTEE, FIDUCIARY OR OTHER 29 PERSON CHARGED WITH THE CARE OF HIS PERSON OR PROPERTY (OTHER THAN A 30 RECEIVER IN POSSESSION OF ONLY A PART OF HIS PROPERTY), OR BY HIS DULY 31 AUTHORIZED AGENT. 32 (E) ESTATES AND TRUSTS. THE RETURN FOR AN ESTATE OR TRUST SHALL BE 33 MADE AND FILED BY THE FIDUCIARY. 34 (F) JOINT FIDUCIARIES. IF TWO OR MORE FIDUCIARIES ARE ACTING JOINTLY, 35 THE RETURN MAY BE MADE BY ANY ONE OF THEM. 36 S 6. REQUIREMENT OF WITHHOLDING TAX FROM WAGES. THE SCHOOL DISTRICT 37 INCOME TAX SURCHARGE SHALL BE WITHHELD FROM THE WAGES OF SCHOOL DISTRICT 38 RESIDENTS IN THE SAME MANNER AND SUBJECT TO THE SAME REQUIREMENTS, TO 39 THE GREATEST EXTENT POSSIBLE, AS PROVIDED IN SECTIONS SIX HUNDRED SEVEN- 40 TY-ONE THROUGH SIX HUNDRED SEVENTY-EIGHT OF THIS CHAPTER EXCEPT THAT THE 41 TERM "AGGREGATE AMOUNT" CONTAINED IN PARAGRAPHS ONE, TWO AND THREE OF 42 SUBSECTION (A) OF SECTION SIX HUNDRED SEVENTY-FOUR OF THIS CHAPTER SHALL 43 MEAN THE AGGREGATE OF THE AMOUNTS REQUIRED TO BE DEDUCTED AND WITHHELD 44 OF THE NEW YORK STATE PERSONAL INCOME TAX, THE CITY INCOME AND EARNINGS 45 TAXES AUTHORIZED PURSUANT TO ARTICLES THIRTY, THIRTY-A AND THIRTY-B OF 46 THIS CHAPTER, AND THE SCHOOL DISTRICT INCOME TAX SURCHARGE. 47 S 7. CREDIT FOR TAX WITHHELD. THE SCHOOL DISTRICT INCOME TAX SURCHARGE 48 WITHHELD SHALL NOT REDUCE NET STATE TAX FOR PURPOSES OF COMPUTING THE 49 SCHOOL DISTRICT INCOME TAX SURCHARGE, BUT ANY AMOUNT OF TAX ACTUALLY 50 DEDUCTED AND WITHHELD UNDER THIS MODEL SURCHARGE IN ANY CALENDAR YEAR 51 SHALL BE DEEMED TO HAVE BEEN PAID TO THE DEPARTMENT OF TAXATION AND 52 FINANCE ON BEHALF OF THE PERSON FROM WHOM WITHHELD, AND SUCH PERSON 53 SHALL BE CREDITED WITH HAVING PAID THE AMOUNT OF TAX FOR THE TAXABLE 54 YEAR BEGINNING IN SUCH CALENDAR YEAR. FOR A TAXABLE YEAR OF LESS THAN 55 TWELVE MONTHS, THE CREDIT SHALL BE MADE UNDER REGULATIONS OF THE COMMIS- 56 SIONER. A. 7097 16 1 S 8. ENFORCEMENT WITH OTHER TAXES. (A) JOINT ASSESSMENT. IF THERE IS 2 ASSESSED A TAX UNDER THE SCHOOL DISTRICT INCOME TAX SURCHARGE AND THERE 3 IS ALSO ASSESSED A TAX AGAINST THE SAME TAXPAYER PURSUANT TO ARTICLE 4 TWENTY-TWO OF THIS CHAPTER OR UNDER A LOCAL LAW ENACTED PURSUANT TO THE 5 AUTHORITY OF ARTICLE THIRTY, THIRTY-A OR THIRTY-B OF THIS CHAPTER AND 6 PAYMENT OF A SINGLE AMOUNT IS REQUIRED UNDER THE PROVISIONS OF THIS 7 MODEL SURCHARGE, PAYMENT SHALL BE DEEMED TO HAVE BEEN MADE WITH RESPECT 8 TO THE TAXES SO ASSESSED IN PROPORTION TO THE AMOUNTS OF SUCH TAXES DUE, 9 INCLUDING TAX, PENALTIES, INTEREST AND ADDITIONS TO TAX. 10 (B) JOINT ACTION. IF THE COMMISSIONER TAKES ACTION UNDER SUCH ARTICLE 11 TWENTY-TWO OR UNDER A LOCAL LAW ENACTED PURSUANT TO THE AUTHORITY OF 12 ARTICLE THIRTY, THIRTY-A OR THIRTY-B OF THIS CHAPTER WITH RESPECT TO THE 13 ENFORCEMENT AND COLLECTION OF THE TAX OR TAXES ASSESSED UNDER SUCH ARTI- 14 CLES THE COMMISSIONER SHALL, WHEREVER POSSIBLE, ACCOMPANY SUCH ACTION 15 WITH A SIMILAR ACTION UNDER SIMILAR ENFORCEMENT AND COLLECTION 16 PROVISIONS OF THE SCHOOL DISTRICT INCOME TAX SURCHARGE. 17 (C) APPORTIONMENT OF MONEYS COLLECTED BY JOINT ACTION. ANY MONEYS 18 COLLECTED AS A RESULT OF SUCH JOINT ACTION SHALL BE DEEMED TO HAVE BEEN 19 COLLECTED IN PROPORTION TO THE AMOUNTS DUE, INCLUDING TAX, PENALTIES, 20 INTEREST AND ADDITIONS TO TAX, UNDER ARTICLE TWENTY-TWO OF THIS CHAPTER 21 OR UNDER A LOCAL LAW ENACTED PURSUANT TO THE AUTHORITY OF ARTICLE THIR- 22 TY, THIRTY-A, OR THIRTY-B OF THIS CHAPTER AND THE SCHOOL DISTRICT INCOME 23 TAX SURCHARGE. 24 (D) JOINT DEFICIENCY ACTION. WHENEVER THE COMMISSIONER TAKES ANY 25 ACTION WITH RESPECT TO A DEFICIENCY OF INCOME TAX UNDER ARTICLE TWENTY- 26 TWO OF THIS CHAPTER OR UNDER A LOCAL LAW ENACTED PURSUANT TO THE AUTHOR- 27 ITY OF ARTICLE THIRTY, THIRTY-A OR THIRTY-B OF THIS CHAPTER, OTHER THAN 28 THE ACTION SET FORTH IN SUBSECTION (A) OF THIS SECTION, THE COMMISSIONER 29 MAY IN HIS OR HER DISCRETION ACCOMPANY SUCH ACTION WITH A SIMILAR ACTION 30 UNDER THE SCHOOL DISTRICT INCOME TAX SURCHARGE. 31 S 9. ADMINISTRATION, COLLECTION AND REVIEW. (A) GENERAL. EXCEPT AS 32 OTHERWISE PROVIDED IN THIS ARTICLE, THE SCHOOL DISTRICT INCOME TAX 33 SURCHARGE SHALL BE ADMINISTERED AND COLLECTED BY THE COMMISSIONER IN THE 34 SAME MANNER AS THE TAX IMPOSED BY ARTICLE TWENTY-TWO OF THIS CHAPTER IS 35 ADMINISTERED AND COLLECTED BY THE COMMISSIONER. ALL OF THE PROVISIONS OF 36 ARTICLE TWENTY-TWO OF THIS CHAPTER RELATING TO OR APPLICABLE TO PAYMENT 37 OF ESTIMATED TAX, RETURNS, PAYMENT OF TAX, WITHHOLDING OF TAX FROM 38 WAGES, EMPLOYER'S STATEMENTS AND RETURNS, EMPLOYER'S LIABILITY FOR TAXES 39 REQUIRED TO BE WITHHELD AND ALL OTHER PROVISIONS OF ARTICLE TWENTY-TWO 40 RELATING TO OR APPLICABLE TO THE ADMINISTRATION, COLLECTION, LIABILITY 41 FOR AND REVIEW OF THE TAX IMPOSED BY ARTICLE TWENTY-TWO, INCLUDING 42 SECTIONS SIX HUNDRED FIFTY-TWO AND SIX HUNDRED FIFTY-THREE, SECTIONS SIX 43 HUNDRED FIFTY-SEVEN THROUGH SIX HUNDRED FIFTY-NINE, SECTION SIX HUNDRED 44 SIXTY-ONE, SECTIONS SIX HUNDRED SEVENTY-ONE AND SIX HUNDRED SEVENTY-TWO, 45 SECTIONS SIX HUNDRED SEVENTY-FOUR THROUGH SIX HUNDRED SEVENTY-EIGHT AND 46 SECTIONS SIX HUNDRED EIGHTY-ONE THROUGH SIX HUNDRED NINETY-SEVEN OF THIS 47 CHAPTER, INCLUSIVE, SHALL APPLY TO THE SCHOOL DISTRICT INCOME TAX 48 SURCHARGE WITH THE SAME FORCE AND EFFECT AS IF THOSE PROVISIONS HAD BEEN 49 INCORPORATED IN FULL INTO THIS MODEL SURCHARGE, AND HAD EXPRESSLY 50 REFERRED TO THE SCHOOL DISTRICT INCOME TAX SURCHARGE, EXCEPT WHERE ANY 51 SUCH PROVISION IS EITHER INCONSISTENT WITH A PROVISION OF THIS MODEL 52 SURCHARGE OR IS NOT RELEVANT TO THIS MODEL SURCHARGE. WHENEVER THERE IS 53 JOINT COLLECTION OF STATE PERSONAL INCOME TAX, CITY PERSONAL INCOME OR 54 EARNINGS TAXES OR SCHOOL DISTRICT INCOME TAX SURCHARGE, IT SHALL BE 55 DEEMED THAT SUCH COLLECTION SHALL REPRESENT PROPORTIONATELY THE APPLICA- 56 BLE STATE PERSONAL INCOME TAX, CITY PERSONAL INCOME OR EARNINGS TAX OR A. 7097 17 1 SCHOOL DISTRICT INCOME TAX SURCHARGE IN DETERMINING THE AMOUNT TO BE 2 REMITTED TO THE SCHOOL DISTRICT. 3 (B) PAYMENT TO DESIGNATED DEPOSITORIES. THE COMMISSIONER, IN HIS OR 4 HER DISCRETION, MAY REQUIRE OR PERMIT ANY OR ALL PERSONS LIABLE FOR ANY 5 SCHOOL DISTRICT INCOME TAX SURCHARGE IMPOSED UNDER THIS MODEL SURCHARGE 6 TO MAKE PAYMENTS ON ACCOUNT OF ESTIMATED SCHOOL DISTRICT INCOME TAX 7 SURCHARGE AND PAYMENT OF ANY SCHOOL DISTRICT INCOME TAX SURCHARGE, 8 PENALTY OR INTEREST TO SUCH BANKS, BANKING HOUSES OR TRUST COMPANIES 9 DESIGNATED BY THE COMMISSIONER AND TO FILE RETURNS WITH SUCH BANKS, 10 BANKING HOUSES OR TRUST COMPANIES, AS AGENT OF THE COMMISSIONER, IN LIEU 11 OF PAYING A SCHOOL DISTRICT INCOME TAX SURCHARGE IMPOSED UNDER THIS 12 MODEL SURCHARGE DIRECTLY TO THE COMMISSION. HOWEVER, THE COMMISSIONER 13 SHALL DESIGNATE ONLY SUCH BANKS, BANKING HOUSES OR TRUST COMPANIES WHICH 14 ARE DESIGNATED BY THE COMPTROLLER AS DEPOSITORIES OF THE STATE. 15 (C) COMBINED FILINGS. NOTWITHSTANDING ANY OTHER PROVISIONS OF THIS 16 ARTICLE, THE COMMISSIONER MAY REQUIRE: 17 (1) THE FILING OF ANY OR ALL OF THE FOLLOWING: 18 (A) A COMBINED RETURN WHICH, IN ADDITION TO THE RETURN PROVIDED FOR IN 19 SECTION FIVE HEREOF, MAY ALSO INCLUDE ANY OF THE RETURNS REQUIRED PURSU- 20 ANT TO THE PROVISIONS OF SECTION SIX HUNDRED FIFTY-ONE OF THIS CHAPTER 21 TO BE FILED BY AN INDIVIDUAL, ESTATE OR TRUST WHO OR WHICH IS A RESIDENT 22 OF NEW YORK STATE, AND WHICH MAY BE REQUIRED TO BE FILED BY SUCH INDI- 23 VIDUAL, ESTATE OR TRUST PURSUANT TO ANY LOCAL LAW ENACTED PURSUANT TO 24 THE AUTHORITY OF ARTICLE THIRTY, THIRTY-A OR THIRTY-B OF THIS CHAPTER, 25 AND 26 (B) A COMBINED EMPLOYER'S RETURN WHICH, IN ADDITION TO THE EMPLOYER'S 27 RETURN PROVIDED FOR BY THIS MODEL SURCHARGE, MAY ALSO INCLUDE ANY OF THE 28 EMPLOYER'S RETURNS REQUIRED TO BE FILED BY THE SAME EMPLOYER PURSUANT TO 29 THE PROVISIONS OF SECTION SIX HUNDRED SEVENTY-FOUR OF THIS CHAPTER AND 30 REQUIRED TO BE FILED BY SUCH EMPLOYER PURSUANT TO ANY LOCAL LAW ENACTED 31 UNDER THE AUTHORITY OF ARTICLE THIRTY, THIRTY-A OR THIRTY-B OF THIS 32 CHAPTER. 33 (2) WHERE A COMBINED RETURN OR EMPLOYER'S RETURN IS REQUIRED, AND WITH 34 RESPECT TO THE PAYMENT OF ESTIMATED TAX, THE COMMISSIONER MAY ALSO 35 REQUIRE THE PAYMENT OF A SINGLE AMOUNT WHICH SHALL EQUAL THE TOTAL OF 36 THE AMOUNTS (TOTAL TAXES LESS ANY CREDITS OR REFUNDS) WHICH WOULD HAVE 37 BEEN REQUIRED TO BE PAID WITH THE RETURNS OR EMPLOYER'S RETURNS OR IN 38 PAYMENT OF ESTIMATED TAX PURSUANT TO THE PROVISIONS OF ARTICLE 39 TWENTY-TWO OF THIS CHAPTER AND THIS MODEL SURCHARGE AND THE PROVISIONS 40 OF LOCAL LAWS ENACTED UNDER THE AUTHORITY OF ARTICLE THIRTY, THIRTY-A OR 41 THIRTY-B OF THIS CHAPTER. 42 S 1364. DEPOSIT AND DISPOSITION OF REVENUES. (A) DEPOSIT OF REVENUES. 43 ALL REVENUE COLLECTED BY THE COMMISSIONER FROM THE TAX IMPOSED BY ANY 44 SCHOOL DISTRICT PURSUANT TO THE AUTHORITY OF THIS ARTICLE SHALL BE 45 DEPOSITED DAILY WITH SUCH RESPONSIBLE BANKS, BANKING HOUSES OR TRUST 46 COMPANIES, AS MAY BE DESIGNATED BY THE STATE COMPTROLLER, TO THE CREDIT 47 OF THE COMPTROLLER, IN TRUST FOR SUCH SCHOOL DISTRICT. SUCH DEPOSITS 48 SHALL BE KEPT IN TRUST AND SEPARATE AND APART FROM ALL OTHER MONEYS IN 49 THE POSSESSION OF THE COMPTROLLER. THE COMPTROLLER SHALL REQUIRE 50 ADEQUATE SECURITY FROM ALL SUCH DEPOSITORIES OF SUCH REVENUE COLLECTED 51 BY THE COMMISSIONER. 52 (B) RESERVES. THE COMPTROLLER SHALL RETAIN A RESERVE FOR REFUNDS IN 53 SUCH AMOUNT AS THE COMMISSIONER MAY DETERMINE TO BE NECESSARY FOR 54 REFUNDS IN RESPECT TO SUCH TAX AND A RESERVE FOR REASONABLE COSTS OF THE 55 COMMISSIONER IN ADMINISTERING, COLLECTING AND DISTRIBUTING SUCH TAX. A. 7097 18 1 (1) FROM THE RESERVE FOR REFUNDS THE COMPTROLLER SHALL PAY ANY REFUNDS 2 OF SUCH TAX TO WHICH A TAXPAYER SHALL BE ENTITLED UNDER ANY SURCHARGE 3 ENACTED BY A SCHOOL DISTRICT PURSUANT TO THE AUTHORITY OF THIS ARTICLE, 4 EXCEPT THAT 5 (A) THE COMPTROLLER SHALL PAY TO THE STATE DEPARTMENT OF SOCIAL 6 SERVICES THAT AMOUNT OF OVERPAYMENT OF SUCH TAX AND THE INTEREST ON SUCH 7 AMOUNT WHICH IS CERTIFIED TO HIM OR HER BY THE COMMISSIONER AS THE 8 AMOUNT TO BE CREDITED AGAINST PAST-DUE SUPPORT PURSUANT TO SUBDIVISION 9 SIX OF SECTION ONE HUNDRED SEVENTY-ONE-C OF THIS CHAPTER, 10 (B) THE COMPTROLLER SHALL PAY TO THE NEW YORK STATE HIGHER EDUCATION 11 SERVICES CORPORATION THAT AMOUNT OF OVERPAYMENT OF SUCH TAX AND THE 12 INTEREST ON SUCH AMOUNT WHICH IS CERTIFIED TO HIM OR HER BY THE COMMIS- 13 SIONER AS THE AMOUNT TO BE CREDITED AGAINST THE AMOUNT OF DEFAULTS IN 14 REPAYMENT OF GUARANTEED STUDENT LOANS PURSUANT TO SUBDIVISION FIVE OF 15 SECTION ONE HUNDRED SEVENTY-ONE-D OF THIS CHAPTER, 16 (C) THE COMPTROLLER SHALL PAY TO THE STATE UNIVERSITY OF NEW YORK OR 17 THE CITY UNIVERSITY OF NEW YORK RESPECTIVELY THAT AMOUNT OF OVERPAYMENT 18 OF SUCH TAX AND THE INTEREST ON SUCH AMOUNT WHICH IS CERTIFIED TO HIM OR 19 HER BY THE COMMISSIONER AS THE AMOUNT TO BE CREDITED AGAINST THE AMOUNT 20 OF DEFAULTS IN REPAYMENT OF STATE OR CITY UNIVERSITY LOANS PURSUANT TO 21 SUBDIVISION SIX OF SECTION ONE HUNDRED SEVENTY-ONE-E OF THIS CHAPTER, 22 (D) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, THE COMPTROLLER SHALL 23 CREDIT TO THE REVENUE ARREARAGE ACCOUNT, PURSUANT TO SECTION 24 NINETY-ONE-A OF THE STATE FINANCE LAW, THAT AMOUNT OF OVERPAYMENT OF 25 SUCH TAX AND THE INTEREST ON SUCH AMOUNT WHICH IS CERTIFIED TO HIM OR 26 HER BY THE COMMISSIONER AS THE AMOUNT TO BE CREDITED AGAINST A PAST-DUE 27 LEGALLY ENFORCEABLE DEBT OWED TO A STATE AGENCY PURSUANT TO SUBDIVISION 28 SIX OF SECTION ONE HUNDRED SEVENTY-ONE-F OF THIS CHAPTER, AND 29 (E) THE COMPTROLLER SHALL PAY TO A NON-OBLIGATED SPOUSE THAT AMOUNT OF 30 OVERPAYMENT OF SUCH TAX AND THE INTEREST ON SUCH AMOUNT WHICH HAS BEEN 31 CREDITED PURSUANT TO SECTION ONE HUNDRED SEVENTY-ONE-C, ONE HUNDRED 32 SEVENTY-ONE-D, ONE HUNDRED SEVENTY-ONE-E OR ONE HUNDRED SEVENTY-ONE-F OF 33 THIS CHAPTER AND WHICH IS CERTIFIED TO HIM OR HER BY THE COMMISSIONER AS 34 THE AMOUNT DUE SUCH NON-OBLIGATED SPOUSE PURSUANT TO PARAGRAPH SIX OF 35 SUBSECTION (B) OF SECTION SIX HUNDRED FIFTY-ONE OF THIS CHAPTER, AND THE 36 COMPTROLLER SHALL DEDUCT A LIKE AMOUNT WHICH HE OR SHE SHALL PAY INTO 37 THE TREASURY TO THE CREDIT OF THE GENERAL FUND FROM AMOUNTS SUBSEQUENTLY 38 PAYABLE TO THE DEPARTMENT OF FAMILY ASSISTANCE, THE STATE UNIVERSITY OF 39 NEW YORK, THE CITY UNIVERSITY OF NEW YORK, THE HIGHER EDUCATION SERVICES 40 CORPORATION OR TO THE REVENUE ARREARAGE ACCOUNT PURSUANT TO SECTION 41 NINETY-ONE-A OF THE STATE FINANCE LAW, AS THE CASE MAY BE, WHICHEVER HAD 42 BEEN CREDITED THE AMOUNT ORIGINALLY WITHHELD FROM SUCH OVERPAYMENT. 43 (2) THE AMOUNT RESERVED FOR ADMINISTERING, COLLECTING AND DISTRIBUTING 44 SUCH TAX SHALL BE PAID BY THE COMPTROLLER ON OR BEFORE THE FIFTEENTH DAY 45 OF EACH MONTH INTO THE GENERAL FUND OF THE STATE TREASURY TO THE CREDIT 46 OF THE STATE PURPOSES ACCOUNT THEREIN. 47 S 13. Subdivision (e) of section 1800 of the tax law, as added by 48 chapter 65 of the laws of 1985, is amended to read as follows: 49 (e) As used in this article, the term "related income or earnings tax 50 statute" means any law, ordinance or resolution imposed pursuant to the 51 authority of article thirty, [thirty-a or thirty-b] THIRTY-A, THIRTY-B 52 OR THIRTY-C of this chapter or article two-E of the general city law, 53 while such article two-E shall remain in full force and effect. 54 S 14. Subdivision (c) of section 3008 of the tax law, as added by 55 chapter 770 of the laws of 1992, is amended to read as follows: A. 7097 19 1 (c) Assessments attributable to certain mathematical errors by the 2 department. In the case of an assessment of any tax imposed by or pursu- 3 ant to the authority of article twenty-two, thirty, thirty-A [or], thir- 4 ty-B OR THIRTY-C of this chapter [or article two-E of the general city 5 law] attributable in whole or in part to a mathematical error described 6 in subparagraph (A) of paragraph two of subsection (g) of section 7 sixty-two hundred thirteen of the federal internal revenue code, if the 8 return was prepared by an officer or employee of the department acting 9 in his or her official capacity to provide assistance to taxpayers in 10 the preparation of income tax returns, the commissioner is authorized to 11 abate the assessment of all or any part of any interest on such defi- 12 ciency for any period ending on or before the tenth day following the 13 date of notice and demand by the commissioner for payment of the defi- 14 ciency. 15 S 15. Section 171 of the tax law is amended by adding a new subdivi- 16 sion twenty-ninth to read as follows: 17 TWENTY-NINTH. DEVELOP GUIDELINES AND PROVIDE TECHNICAL ASSISTANCE TO A 18 STUDY COMMISSION OF A SCHOOL DISTRICT FORMED PURSUANT TO SECTION FIFTEEN 19 HUNDRED ONE-D OF THE EDUCATION LAW IN ORDER TO IMPLEMENT THE PROVISIONS 20 OF ARTICLE THIRTY-C OF THIS CHAPTER AND SECTION THIRTEEN HUNDRED SEVEN 21 OF THE REAL PROPERTY TAX LAW. 22 S 16. The state education department, the department of taxation and 23 finance and the office of real property services are hereby directed to 24 conduct a joint study on whether this act has provided school districts 25 with greater flexibility to finance public education and afforded relief 26 to residential property taxpayers, and report jointly to the governor 27 and the legislature together with any recommendations for change to meet 28 these purposes. Said study shall not commence until this act has been in 29 effect for five years upon which the aforementioned agencies shall file 30 a joint written report to the governor and the legislature by no later 31 than the sixth year after this act takes effect. 32 S 17. This act shall take effect immediately. 33 S 3. Severability clause. If any clause, sentence, paragraph, subdivi- 34 sion, section or part of this act shall be adjudged by any court of 35 competent jurisdiction to be invalid, such judgment shall not affect, 36 impair, or invalidate the remainder thereof, but shall be confined in 37 its operation to the clause, sentence, paragraph, subdivision, section 38 or part thereof directly involved in the controversy in which such judg- 39 ment shall have been rendered. It is hereby declared to be the intent of 40 the legislature that this act would have been enacted even if such 41 invalid provisions had not been included herein. 42 S 4. This act shall take effect immediately provided, however, that 43 the applicable effective dates of Parts A and B of this act shall be as 44 specifically set forth in the last section of such Parts.